Document:

Ex-10.1 Asset Purchase Agreement

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

by and between

DATASCOPE CORP.

and

MINDRAY MEDICAL INTERNATIONAL LIMITED

Dated as of March 10, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I Definitions and Interpretations
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Certain Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II Closing
	 	 	13	 
	 
	 	 	 	 
	Section 2.1 Closing
	 	 	13	 
	Section 2.2 Assets to be Sold
	 	 	14	 
	Section 2.3 Assumption of Liabilities
	 	 	15	 
	Section 2.4 Purchase Price
	 	 	15	 
	Section 2.5 Excluded Assets
	 	 	15	 
	Section 2.6 Allocation of Purchase Price
	 	 	15	 
	Section 2.7 Transfer Taxes and Value Added Tax; Bulk Sales
	 	 	16	 
	Section 2.8 Non-Assignability of Assets
	 	 	16	 
	Section 2.9 Delivery by Seller
	 	 	17	 
	Section 2.10 Delivery by Buyer
	 	 	17	 
	Section 2.11 Net Working Capital Adjustments; Accounts Receivable Adjustments
	 	 	17	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties of Seller
	 	 	20	 
	 
	 	 	 	 
	Section 3.1 Qualification, Organization, Selling Subsidiaries, etc
	 	 	20	 
	Section 3.2 Corporate Authority Relative to this Agreement; No Violation
	 	 	21	 
	Section 3.3 Title to Property
	 	 	22	 
	Section 3.4 Completeness of Assets
	 	 	22	 
	Section 3.5 Financial Statements
	 	 	23	 
	Section 3.6 Absence of Undisclosed Liabilities
	 	 	23	 
	Section 3.7 Absence of Certain Changes or Events
	 	 	23	 
	Section 3.8 Inventory
	 	 	24	 
	Section 3.9 Assumed Agreements and Material Contracts
	 	 	24	 
	Section 3.10 Intellectual Property Rights
	 	 	25	 
	Section 3.11 Compliance with Laws; Permits
	 	 	26	 
	Section 3.12 Investigations; Litigation
	 	 	28	 
	Section 3.13 Regulatory Compliance
	 	 	28	 
	Section 3.14 Taxes
	 	 	29	 
	Section 3.15 Labor Matters
	 	 	30	 
	Section 3.16 Employee Benefit Plans
	 	 	31	 
	Section 3.17 Environmental Laws and Regulations
	 	 	32	 
	Section 3.18 Insurance
	 	 	33	 
	Section 3.19 Brokerage Fees
	 	 	33	 
	Section 3.20 Relationships with Related Persons
	 	 	33	 
	 
	 	 	 	 
	ARTICLE IV Representations and Warranties of Buyer
	 	 	33	 
	 
	 	 	 	 
	Section 4.1 Qualification; Organization
	 	 	33	 
	Section 4.2 Corporate Authority Relative to this Agreement; No Violation
	 	 	34	 
	Section 4.3 Investigations; Litigation
	 	 	34	 
	Section 4.4 Sufficient Funding
	 	 	35	 

-i-

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	Section 4.5 No Other Information
	 	 	35	 
	Section 4.6 Access to Information; Disclaimer
	 	 	35	 
	Section 4.7 No Approval Required
	 	 	35	 
	Section 4.8 Brokerage Fees
	 	 	35	 
	 
	 	 	 	 
	ARTICLE V Conditions to Closing
	 	 	36	 
	 
	 	 	 	 
	Section 5.1 Conditions Precedent to Buyer’s Obligations
	 	 	36	 
	Section 5.2 Conditions Precedent to Seller’s Obligations
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VI Certain Covenants
	 	 	39	 
	 
	 	 	 	 
	Section 6.1 Conduct of Business
	 	 	39	 
	Section 6.2 Investigation
	 	 	41	 
	Section 6.3 Control of Operations
	 	 	42	 
	Section 6.4 Notification of Certain Matters
	 	 	42	 
	Section 6.5 Public Announcements
	 	 	42	 
	Section 6.6 Third Party Consents; Regulatory Approvals; Access
	 	 	43	 
	Section 6.7 Industrial Site Recovery Act
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VII Post-Closing Covenants
	 	 	45	 
	 
	 	 	 	 
	Section 7.1 Employee Matters
	 	 	45	 
	Section 7.2 Books and Records; Access
	 	 	48	 
	Section 7.3 Insurance
	 	 	49	 
	Section 7.4 Payments from Third Parties
	 	 	50	 
	Section 7.5 Further Assurances
	 	 	50	 
	Section 7.6 Tax Matters
	 	 	51	 
	Section 7.7 Covenant Not to Compete
	 	 	53	 
	Section 7.8 Non-Solicitation
	 	 	54	 
	 
	 	 	 	 
	ARTICLE VIII Termination
	 	 	55	 
	 
	 	 	 	 
	Section 8.1 Termination or Abandonment
	 	 	55	 
	Section 8.2 Effect of Termination
	 	 	56	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	56	 
	 
	 	 	 	 
	Section 9.1 No Survival of Representations and Warranties
	 	 	56	 
	Section 9.2 Schedule Updates
	 	 	56	 
	Section 9.3 Amendments; Waivers
	 	 	56	 
	Section 9.4 Assignment; Binding Effect
	 	 	57	 
	Section 9.5 Severability
	 	 	57	 
	Section 9.6 Notices
	 	 	57	 
	Section 9.7 Headings
	 	 	58	 
	Section 9.8 Interpretation
	 	 	58	 
	Section 9.9 Counterparts; Effectiveness
	 	 	59	 
	Section 9.10 Entire Agreement; No Third-Party Beneficiaries
	 	 	59	 

ii

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	Section 9.11 Payment of Expenses
	 	 	59	 
	Section 9.12 Governing Law
	 	 	59	 
	Section 9.13 Jurisdiction; Enforcement
	 	 	59	 
	Section 9.14 WAIVER OF JURY TRIAL
	 	 	60	 
	Section 9.15 No Recourse
	 	 	60	 
	Section 9.16 Determination by Seller
	 	 	60	 

iii

 

SCHEDULES

	 	 	 
	1.1(a)

	 	Acquired Assets
	1.1(b)

	 	Agreed List of Employees
	1.1(c)

	 	Assumed Agreements
	1.1(d)

	 	Excluded Agreements
	1.1(e)

	 	Excluded Assets
	1.1(f)

	 	Excluded IP Assets
	1.1(g)

	 	Individuals for Seller’s Knowledge
	1.1(h)

	 	Individuals for Buyer’s Knowledge
	1.1(i)

	 	Products
	1.1(j)

	 	Transferred Copyrights and Know-How
	1.1(k)

	 	Transferred Patents
	1.1(l)

	 	Transferred Trademarks
	2.6

	 	Purchase Price Allocation
	3.2(b)

	 	Seller Approvals
	3.2(c)

	 	Exceptions to No Violation
	3.3

	 	Exceptions to Title to Property
	3.4(a)

	 	Exceptions to Completeness of Assets
	3.8

	 	Inventory
	3.9

	 	Material Contracts
	3.10

	 	Intellectual Property Rights
	3.11(e)

	 	Product Recalls, Field Corrections and Corrective Actions
	3.11(f)

	 	FDA and Governmental Reporting and Investigations
	3.11(h)

	 	Notices and Correspondence from Governmental Entities
	3.12

	 	Legal Proceedings, etc.
	3.15

	 	Collective Agreements
	3.16(a)

	 	Seller Benefit Plans
	3.16(c)

	 	Seller Foreign Plans
	3.16(e)

	 	Title IV Plans
	3.20

	 	Relationships with Related Persons
	4.2(b)

	 	Buyer Approvals
	5.1(f)

	 	Required Consents
	6.1(a)

	 	Conduct of Patient Monitoring Business
	6.1(b)

	 	Certain Events or Changes
	7.1(b)

	 	Severance Plans and Policies
	7.1(e)

	 	Retirement Plans
	7.8

	 	Non-Solicitation

EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Trademark License Agreement
	Exhibit B

	 	Form of Transition Manufacturing Agreement
	Exhibit C

	 	Form of Transition Services Agreement

-iv-

 

	 	 	 
	Exhibit D

	 	Financial Statements

-v-

 

DEFINED TERMS

	 	 	 	 	 
	Agreement
	 	 	1	 
	Allocation Schedule
	 	 	15	 
	Artema 338 Election
	 	 	52	 
	Asset Transfer and Assumption Agreements
	 	 	14	 
	Bills of Sale
	 	 	14	 
	Buyer
	 	 	1	 
	Buyer Approvals
	 	 	34	 
	Buyer Change of Control
	 	 	54	 
	Buyer Competing Business
	 	 	54	 
	Buyer Material Adverse Effect
	 	 	34	 
	Buyer Savings Plan
	 	 	47	 
	Buyer’s Report
	 	 	18	 
	Closing
	 	 	13	 
	Closing Date
	 	 	13	 
	Closing Date Net Working Capital
	 	 	19	 
	Consent
	 	 	16	 
	Continuation Period
	 	 	46	 
	Contract Assignments
	 	 	14	 
	Copyright and Know-How Assignments
	 	 	14	 
	Current Assets
	 	 	19	 
	Current Liabilities
	 	 	19	 
	ERISA
	 	 	31	 
	Estimated Closing Date Net Working Capital
	 	 	17	 
	Estimated Net Working Capital Deficiency
	 	 	18	 
	Estimated Net Working Capital Excess
	 	 	18	 
	FDA
	 	 	26	 
	FFDCA
	 	 	26	 
	Final Closing Date Net Working Capital
	 	 	19	 
	Final Net Working Capital Deficiency
	 	 	19	 
	Final Net Working Capital Excess
	 	 	19	 
	FIRPTA Certificate
	 	 	37	 
	Foreign Corrupt Practices Act
	 	 	28	 
	HSR Act
	 	 	43	 
	Independent Accounting Firm
	 	 	18	 
	Interim Balance Sheet Date
	 	 	23	 
	Inventory Summary
	 	 	24	 
	ISRA
	 	 	44	 
	Leave Employees
	 	 	45	 
	Material Adverse Effect
	 	 	9	 
	Material Contracts
	 	 	24	 
	Multiemployer Plan
	 	 	31	 

-vi-

 

	 	 	 	 	 
	Net Working Capital Dispute Notice
	 	 	18	 
	New Plans
	 	 	46	 
	NIH
	 	 	27	 
	Non-Compete Expiration Date
	 	 	53	 
	OIG
	 	 	27	 
	Patent Assignments
	 	 	14	 
	Resolution Period
	 	 	18	 
	Savings Plan
	 	 	47	 
	Seller
	 	 	1	 
	Seller Approvals
	 	 	21	 
	Seller Benefit Plans
	 	 	31	 
	Seller Change of Control
	 	 	53	 
	Seller Competing Business
	 	 	53	 
	Seller Permits
	 	 	27	 
	Seller’s Additional Environmental Obligations
	 	 	45	 
	Seller’s ISRA Obligations
	 	 	44	 
	Target Closing Date Net Working Capital
	 	 	18	 
	Tax Incentive
	 	 	30	 
	Termination Date
	 	 	39	 
	Total Consideration
	 	 	15	 
	Trademark Assignments
	 	 	14	 
	Transfer Date
	 	 	47	 
	Transfer Period
	 	 	16	 
	Transferred Employees
	 	 	45	 

-vii-

 

ASSET PURCHASE AGREEMENT

     This Asset Purchase Agreement (this “Agreement”), dated as of March 10, 2008, is made
by and between Datascope Corp., a Delaware corporation (sometimes referred to herein as
“Seller”), and Mindray Medical International Limited, an exempted company with limited
liability under the Companies Law of the Cayman Islands (sometimes referred to herein as
“Buyer”).

WITNESSETH:

     WHEREAS, Seller, through direct and indirect Subsidiaries (as defined below), is currently
engaged in the Patient Monitoring Business (as defined below); and

     WHEREAS, Seller and the Selling Subsidiaries (as defined below) own, and Seller and the
Selling Subsidiaries desire to sell to Buyer, and Buyer desires to purchase from Seller and the
Selling Subsidiaries, the Purchased Assets (as defined below), and Buyer is willing to assume the
Assumed Liabilities (as defined below), upon the terms and subject to the conditions set forth
herein.

     NOW, THEREFORE, in view of the foregoing premises and in consideration of the mutual
covenants, agreements, representations and warranties herein contained, the parties hereto agree as
follows:

ARTICLE I

DEFINITIONS AND INTERPRETATIONS

Section 1.1 Certain Definitions

     For purposes of this Agreement, the following terms will have the following meanings when used
herein:

     “Accounts Receivable” shall mean the trade accounts receivable (including interest
thereon) of the Patient Monitoring Business accrued in the ordinary course of business, excluding
any intercompany accounts receivable and intercompany loan balances receivable other than any
intercompany accounts receivable arising from the intercompany sale of goods of the Patient
Monitoring Business, including parts and components, that are owing from Seller or any Affiliate of
Seller, as determined in accordance with the Accounting Standards. For the avoidance of doubt,
Accounts Receivable shall be $0 for purposes of the Estimated Closing Date Net Working Capital and
Final Closing Date Net Working Capital.

     “Accounting Standards” shall mean GAAP.

     “Acquired Assets” shall mean the tangible and intangible assets of the Patient
Monitoring Business that are described on the Schedule of Acquired Assets attached hereto as
Schedule 

 

 

1.1(a) that are owned by Seller and the Selling Subsidiaries, but specifically
excluding the Excluded Assets, with such changes therein between the date hereof and the Closing
Date as shall have occurred in the ordinary course of business in transactions not inconsistent
with any of Seller’s representations, warranties, covenants and agreements set forth herein.

     “Affiliate” shall mean, as to any Person, any other Person which, directly or
indirectly, controls, or is controlled by, or is under common control with, such Person. As used
in this definition, “control” (including, with its correlative meanings, “controlled
by” and “under common control with”) shall mean the possession, directly or indirectly
or as trustee or executor, of the power to direct or cause the direction of management or policies
of a Person, whether through the ownership of securities or partnership as trustee or executor by
Contract or otherwise.

     “Agreed List of Employees” shall mean the list of employees attached hereto as
Schedule 1.1(b), as agreed by Buyer and Seller, as such list may be amended thereby between
the date hereof and the Closing, and the employees that shall be Transferred Employees pursuant to
applicable laws; provided, however, that such list shall be deemed to omit any person whose
employment with Seller or the Selling Subsidiaries terminates prior to the Closing Date (for the
avoidance of doubt, not to include those persons terminated on the Closing Date in accordance with
this Agreement).

     “Agreement” shall mean this Agreement and all exhibits and schedules hereto.

     “Appropriate Remediation Standard” means the remediation standards, guidelines,
policies, regulations, ordinances or other requirements of Environmental Laws imposed by an
applicable Governmental Entity with jurisdiction consistent with the industrial use of the property
as of the Closing Date.

     “Artema” shall mean Artema Medical AB.

     “Artema Stock” shall mean all outstanding share capital of Artema owned by Datascope
International B.V. Netherlands Filial, a wholly-owned subsidiary of Seller.

     “Asset Transfer and Assumption Agreements” shall have the meaning set forth in Section
2.2(b).

     “Assumed Agreements” shall mean those supply agreements, license agreements,
consulting agreements and all other Contracts and Contract rights, whether written or oral, to
which Seller or one of the Selling Subsidiaries is a party to the extent relating to the operation
and conduct of the Patient Monitoring Business or any of the Purchased Assets and that are listed
or described on the Schedule of Assumed Agreements attached hereto as Schedule 1.1(c)
(including all rights, title, interests in, and claims of Seller or Seller Subsidiaries
thereunder), with such other agreements and changes therein between the date hereof and the Closing
Date as shall have been entered into or have occurred in accordance with this Agreement, but
specifically excluding the Excluded Agreements.

-2-

 

     “Assumed Liabilities” shall mean the following obligations and liabilities:

     (a) all liabilities and obligations of the Patient Monitoring Business and the Purchased
Assets that are expressly included, or expressly reserved for, in the calculation of Estimated
Closing Date Net Working Capital and, when agreed in accordance with this Agreement, Final Closing
Date Net Working Capital and all liabilities and obligations of the Patient Monitoring Business and
the Purchased Assets arising out of events or conditions occurring on or after the Closing Date
(including in each case, without limitation, all such obligations and liabilities with respect to
the Patient Monitoring Business and the Purchased Assets under all Assumed Agreements) (except to
the extent relating to receivables not included in the calculation of Estimated Closing Date Net
Working Capital and, when agreed in accordance with this Agreement, Final Closing Date Net Working
Capital), other than with respect to Taxes which are governed by (g) of this definition of “Assumed
Liabilities”;

     (b) all liabilities and obligations under the Assumed Agreements to the extent assigned to
Buyer in accordance with this Agreement other than liabilities and obligations arising under or
relating to breaches of such Assumed Agreements of which Seller had Knowledge prior to or on the
Closing Date, other than with respect to Taxes which are governed by (g) of this definition of
“Assumed Liabilities”;

     (c) to the extent not included in clause (a) above, all trade payables outstanding as of the
Closing Date to the extent relating to goods or services to be provided on or after the Closing
Date in connection with the Purchased Assets;

     (d) all liabilities arising out of the manufacture, marketing, distribution or sale of any
Product by Buyer or its Affiliates on or after the Closing Date (including, without limitation,
liability for product returns, warranty obligations and other product liabilities with respect to
such Products, regardless of the legal theory asserted) and all liabilities arising out of the sale
on or after the Closing Date by Buyer or its Affiliates of Products that were manufactured by
Seller prior to the Closing;

     (e) all liabilities resulting from any claim of intellectual property infringement to the
extent arising out of the manufacture, use or sale of the Products or the other Purchased Assets by
Buyer or its Affiliates on or after the Closing;

     (f) liability for all costs (including costs, charges and expenses of customers and associated
shipping expenses to such customers, and all customer claims or deductions and costs associated
with damaged products) associated with the return of any Products sold by the Patient Monitoring
Business prior to the Closing Date;

     (g) all liabilities and obligations for Taxes relating to the ownership or operation of the
Patient Monitoring Business or the Purchased Assets after the Closing Date;

     (h) all obligations of Buyer contained in this Agreement and the Transaction Documents;

-3-

 

     (i) all liabilities or obligations arising under Environmental Law and to the extent relating
to (i) violations of Environmental Laws prior to the Closing in connection with the Patient
Monitoring Business, (ii) the release (as such term is defined under CERCLA) of Hazardous
Substances on or prior to the Closing in connection with the Patient Monitoring Business at, on,
under or from any property owned, leased, or otherwise used by Seller or the Selling Subsidiaries
in connection with the Patient Monitoring Business (the “Real Property”) (except for
Seller’s ISRA Obligations and Seller’s Additional Environmental Obligations), or any off-site
location at which Hazardous Substances generated or originating from any Real Property and
transported off-site prior to the Closing came to be located, (iii) the exposure of any person to
Hazardous Substances used at or generated in connection with the Patient Monitoring Business, or
originating from any Real Property, prior to the Closing; and

     (j) all other liabilities based upon Buyer’s ownership, operation or use of the Patient
Monitoring Business or the Purchased Assets on or after the Closing Date that are not Excluded
Liabilities; other than with respect to Taxes which are governed by (g) of this definition of
“Assumed Liabilities”.

     “Base Purchase Price” means $240 million.

     “Bills of Sale” shall have the meaning set forth in Section 2.2(b).

     “Books and Records” shall mean all books, ledgers, files, reports, plans and other
documents and operating records of Seller and the Selling Subsidiaries primarily related to or
maintained primarily by the Patient Monitoring Business, whether or not in electronic form, other
than books and records which under applicable Law are required to be retained by the company in
possession of such books and records.

     “Business Day” shall mean any day on which the principal offices of the SEC in
Washington, DC are open to accept filings or, in the case of determining a date when any payment is
due, any day on which banks are not required or authorized by Law to close in New York, NY.

     “CFIUS” shall mean the Committee on Foreign Investment in the United States.

     “Closing” shall have the meaning set forth in Section 2.1.

     “Closing Date” shall have the meaning set forth in Section 2.1.

     “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended from time to
time.

     “Confidentiality Agreement” shall mean that certain confidentiality agreement dated
November 20, 2007 by and between Buyer and Seller.

     “Contract Assignments” shall have the meaning set forth in Section 2.2(b).

-4-

 

     “Contracts” shall mean any contracts, agreements, purchase orders, licenses, notes,
bonds, mortgages, indentures, commitments, leases or other instruments or obligations, whether
written or oral.

     “Conveyancing Documents” means the deeds (including special warranty deeds (or their
local equivalent) and assignment and assumption of lease agreements and such other documents
required to transfer the title of Seller or the applicable Selling Subsidiaries, as the case may
be, in the Transferred Real Property, to be entered into by Seller and Buyer as of the Closing Date
in such form and upon such terms and conditions as shall be mutually agreed upon by Seller and
Buyer.

     “Copyrights” shall mean all copyrights, applications and registrations and renewals
therefor.

     “Disclosure Schedules” shall mean the schedules referenced in the table of contents
and referred to throughout this Agreement and attached hereto.

     “DPA” shall mean Section 721 of the Defense Production Act of 1950 (50 U.S.C. App.
§2170).

     “Environmental Law” shall mean any applicable Law relating to pollution or protection
of the environment (including ambient air, soil, sediment, surface water or groundwater), in effect
as of the date of this Agreement.

     “Environmental Permit” shall mean any federal, state, local, provincial, or foreign
permits, licenses, approvals, consents or authorizations required or issued by any Governmental
Entity under or in connection with any Environmental Law, including without limitation, any and all
orders, consent orders or binding agreements issued by or entered into with a Governmental Entity
under any applicable Environmental Law.

     “ERISA Affiliate” shall mean any entity that is considered a single employer with
Seller or a Selling Subsidiary under Section 414 of the Code or a member of the same group as
Seller or a Selling Subsidiary pursuant to Section 4001(a)(14) or 4001(b)(1) of ERISA.

     “Excluded Agreements” shall mean the agreements relating to the Non-PM Business and
the agreements listed on the Schedule of Excluded Agreements attached hereto as Schedule
1.1(d), including but not limited to all inter-company agreements between Seller and its
Affiliates.

     “Excluded Assets” shall mean all Accounts Receivable as of the Closing Date, all cash
and cash equivalents of Seller and its Subsidiaries (other than Artema), all Tax assets (including,
but not limited to, net operating losses, Tax credits, Tax refunds, and the right to receive any of
the foregoing) of Seller and, with respect to any Pre-Closing Tax Period, all such Tax Assets of
Artema (in each case, except as otherwise provided in Section 7.6(c)), all assets relating to any
Seller Benefit Plan, Seller Foreign Plan or collective bargaining, labor or employment agreement

-5-

 

or other similar arrangement, the Non-PM Business and/or the property described on the
Schedule of Excluded Assets attached hereto as Schedule 1.1(e).

     “Excluded IP Assets” shall mean the Intellectual Property assets listed on
Schedule 1.1(f).

     “Excluded Liabilities” shall mean every liability and obligation of Seller and its
Affiliates, whether accrued, absolute, contingent or otherwise, other than Assumed Liabilities,
including:

     (a) all liabilities and obligations of the Patient Monitoring Business and the Purchased
Assets arising out of events or conditions occurring prior to the Closing Date (whether or not
claims are made before or after the Closing Date) but not expressly included or expressly reserved
for in the calculation of Estimated Closing Date Net Working Capital and, when agreed in accordance
with this Agreement, Final Closing Date Net Working Capital (including, without limitation, all
obligations and liabilities with respect to the Patient Monitoring Business and the Purchased
Assets under all Excluded Agreements) that are not Assumed Liabilities other than those liabilities
and obligations specifically referenced in subparts (c) and (e) hereto;

     (b) all liabilities resulting from any claim of intellectual property infringement arising out
of the manufacture, use or sale prior to the Closing of the Products or the other Purchased Assets
by Seller or its Affiliates (but, for the avoidance of doubt, not including liabilities arising out
of the sale on or after the Closing Date by Buyer or its Affiliates of Products that were
manufactured by Seller prior to the Closing);

     (c) all payables outstanding as of the Closing Date to the extent relating to goods or
services that have been provided prior to the Closing Date in connection with the Purchased Assets,
except to the extent (i) representing payments for good or services to be delivered or rendered in
connection with the Purchased Assets after the Closing Date or (ii) expressly included or expressly
reserved for in the calculation of Estimated Closing Date Net Working Capital and, when agreed in
accordance with this Agreement, Final Closing Date Net Working Capital;

     (d) other than to the extent taken into account in the calculation of Closing Date Net Working
Capital, all liabilities and obligations for Taxes relating to the ownership or operation of the
Patient Monitoring Business or the Purchased Assets (including, for the avoidance of doubt, Taxes
of Artema) attributable to any Pre-Closing Tax Period and any obligations or liabilities for Taxes
of Seller, its Affiliates (not including Artema for any period beginning after the Closing Date)
and any of the Selling Subsidiaries (including, for the avoidance of doubt, any Transfer Taxes
which are the responsibility of Seller as provided in Section 2.7 and any other Taxes resulting
from the transactions contemplated by this Agreement), other than any Transfer Tax to the extent
required to be paid by Buyer as provided in Section 2.7 (Sales and Transfer Taxes and Fees);

     (e) any liability or obligation associated with or related to any Excluded Assets;

-6-

 

     (f) any liabilities or obligations of Seller or any of its Affiliates incurred, arising from
or out of the negotiation, preparation and execution of this Agreement and the transactions
contemplated hereby;

     (g) except as otherwise expressly assumed in this Agreement, all liabilities arising out of or
relating to any employee grievance against Seller whether or not the affected employees are hired
by Buyer, to the extent a claim with respect to a liability relates to the period prior to the
Closing, including any liabilities or obligations of Seller in connection with any Seller Benefit
Plan, Seller Foreign Plan, or collective bargaining, labor or employment agreement or other similar
arrangement or obligations in respect of retiree health benefits, including any liability for any
payments of any kind whatsoever under ERISA, or any comparable Laws;

     (h) any liabilities or obligations to stockholders or former stockholders of Seller;

     (i) any liabilities or obligations arising out of or resulting from Seller’s compliance or
non-compliance with any Law or order;

     (j) any liabilities or obligations under the Worker Adjustment and Retraining Notification
Act, 29 U.S.C. §§ 2101-2109 (the “WARN Act”) (or similar state statutory scheme);

     (k) Seller’s ISRA Obligations and Seller’s Additional Environmental Obligations;

     (l) all liabilities and obligations arising out of, relating to, or resulting from the facts,
circumstances or events in respect of, (x) the matter styled as Patricia Leone v. Datascope Corp.
(N.J. Super. Ct., Essex Co. Docket # ESX-L-9251-07) and (y) the matter styled as The General
Hospital Corporation d/b/a Massachusetts General Hospital, and Welch Allyn Protocol, Inc. v.
Datascope Corp. (D. Mass, Civil Action No. 07-12256); and

     (m) any liabilities of Seller with respect to vacation accruals.

     “Financial Statements” means the (a) unaudited Divisional Balance Sheets of the
Patient Monitoring Business as of December 31, 2007 and June 30, 2007 and (b) unaudited Operating
Results of the Patient Monitoring Business as of December 31, 2007, June 30, 2007 and June 30,
2006.

     “FIRPTA Certificate” shall have the meaning set forth in Section 5.1(i).

     “Fixtures and Equipment” shall mean all furniture, fixtures, furnishings, machinery,
tooling, vehicles, equipment (including telephone lines and telecommunication equipment) and other
tangible personal property owned by Seller or a Selling Subsidiary and primarily used or held for
use in the operation of the Patient Monitoring Business at the manufacturing, research and
development and warehousing facility located in Mahwah, New Jersey, the central warehouse facility
in Hoevelaken, The Netherlands, and the sales offices in Créteil, France, Huntingdon, United
Kingdom and Bensheim, Germany; provided, however, that the term

-7-

 

     “Fixtures and Equipment” shall not include any Inventory, supplies or property which
is real property, or property which reverts to any landlord under any lease.

     “GAAP” shall mean generally accepted accounting principles in the United States,
consistently applied.

     “Governmental Entity” shall mean any United States or foreign governmental or
regulatory agency, commission, court, body, entity or authority.

     “Hazardous Substances” shall mean any hazardous, acutely hazardous or toxic substance
or waste, pollutant or contaminant defined and regulated as such under Environmental Law, including
the federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) or the
Resource Conservation and Recovery Act, as amended.

     “Income Tax” shall mean all Taxes based upon, or measured by, or calculated with
respect to, (x) net income or net receipts, proceeds or profits, or (y) multiple bases (including,
but not limited to, corporate franchise and occupation Taxes) if such Tax is primarily based upon,
measured by, or calculated with respect to one or more bases described in clause (x) above.

     “Income Tax Return” shall mean a Tax Return in respect of an Income Tax.

     “Intellectual Property Rights” shall mean any and all intellectual property rights and
other similar proprietary rights in any jurisdiction, whether registered or unregistered, whether
owned or held for use under license, including all rights and interests pertaining to or deriving
from any patents or patent applications, trademarks, trade names, service marks, logos, or works of
authorship, copyrights, know-how and trade secrets, including in each case any registrations of,
applications to register, and renewals and extensions of, any of the foregoing.

     “Inventory” shall mean the inventory of all Products held for sale by the Base PM
Business, including all raw materials, components, work in progress, spare parts, finished goods
and all other materials and supplies to be used or consumed in the production of finished goods,
all inventory in respect of business and operations relating to the servicing, warranty and repair
of Seller’s and its Subsidiaries’ products and accessories to the extent relating to the Base PM
Business.

     “Knowledge” shall mean (a) with respect to Seller, the actual knowledge of the
individuals listed on Schedule 1.1(g) and (b) with respect to Buyer, the actual knowledge
of the individuals listed on Schedule 1.1(h); in each case, after due inquiry.

     “Law” shall mean any applicable law (including common law), statute, rule, regulation,
judgment, code, ordinance, order, policies, guidances, guidelines or decree administered or issued
by any Governmental Entity, including the Food and Drug Administration.

     “Lien” shall mean any lien, claim, mortgage, encumbrance, pledge, security interest,
easement, covenant, restriction, equity or charge of any kind.

-8-

 

     “Material Adverse Change” shall mean any fact, circumstance, event, change, effect or
development occurring after the date hereof that has a Material Adverse Effect.

     “Material Adverse Effect” shall mean any fact, circumstance, event, change, effect or
occurrence that (i) has or would be reasonably likely to have, individually or in the aggregate, a
material adverse effect on the assets, liabilities, business, results of operations or condition
(financial or otherwise) of the Patient Monitoring Business or (ii) that would be reasonably likely
to prevent or materially delay or materially impair the ability of Seller or any of the Selling
Subsidiaries to consummate the transactions contemplated hereby; provided, however,
that none of the following shall be deemed either alone or in combination with any of the following
to constitute a Material Adverse Effect:

     (m) any changes in, or conditions, events or occurrences that result in a change to, the
industry in which the Patient Monitoring Business operates (excluding any such change, condition,
event or occurrence that has a materially disproportionate effect on the Patient Monitoring
Business compared with other companies operating in the same industry);

     (n) any changes in, or conditions, events or occurrences that result in a change to, the
United States economy or capital, financial or securities markets generally (including effects on
such economy or markets resulting from any regulatory or political conditions or developments, any
natural disaster or any acts of terrorism, sabotage, military action or war (whether or not
declared) or any escalation or worsening thereof but excluding any such change, condition, event or
occurrence that has a materially disproportionate effect on the Patient Monitoring Business
compared with other companies operating in the same industry);

     (o) any changes in the price or trading volume of Seller’s stock on NASDAQ Global Select
Market (but excluding any fact, change, effect, event or occurrence that caused or contributed to
such change in market price or trading volume);

     (p) any adverse effect resulting from any change in GAAP or any applicable United States or
foreign, federal, state or local laws, statutes, ordinances, rules, regulations or agency
requirements of any Governmental Entity, or regulatory requirements, in each case, proposed,
adopted or enacted after the date hereof, or the interpretation or enforcement thereof (but
excluding any such change that has a materially disproportionate effect on the Patient Monitoring
Business compared with other companies operating in the same industry);

     (q) any changes, developments, events, effects, conditions, occurrences, actions or omissions
(including the loss or departure of employees or any termination, reduction, loss, or similar
negative development in the relationship of Seller or any of the Selling Subsidiaries with its
customers, suppliers, vendors or other business partners or employees or any cancellation of or
delay in customer orders), in each case resulting from the announcement or pendency of this
Agreement, the transactions contemplated hereby or the proposal thereof;

     (r) the failure of Seller to meet internal or analysts’ expectations or projections with
respect to the Patient Monitoring Business;

-9-

 

     (s) the failure of Seller or any of the Selling Subsidiaries to receive any necessary
approvals from a Governmental Entity for any Product or invention or the failure of the Seller or
any of the Selling Subsidiaries to launch or release, or announce the launch or release, of any
Product or invention; and

     (t) any legal proceedings made or brought by any of the current or former stockholders of
Seller (on their own behalf or on behalf of Seller), or otherwise under the General Corporation Law
of the State of Delaware, arising out of or related to this Agreement and any of the transactions
contemplated hereby.

     “Non-PM Business” shall mean the business of Seller and its Affiliates prior to the
Closing other than the Patient Monitoring Business.

     “orders” shall mean any orders, judgments, injunctions, awards, decrees or writs
handed down, adopted or imposed by, including any consent decree, settlement agreement or similar
written agreement with, any Governmental Entity.

     “Patent Assignments” shall have the meaning set forth in Section 2.2(b).

     “Patents” shall mean, in any and all countries, patents and patent applications,
invention disclosures, utility models and industrial designs, together with all continuations,
continuations-in-part, divisionals, renewals, reissues, extensions, and reexaminations, and any
application that claims priority to any of the foregoing.

     “Patient Monitoring Business” shall mean the business and operations of Seller and the
Selling Subsidiaries that are primarily related to its patient monitoring business (including,
without limitation, the manufacturing, design, installation, configuration, distribution, and sale
of physiological monitors and monitoring systems) (the “Base PM Business”) and certain of
the business and operations relating to the servicing, warranty and repair of the Seller’s and its
Subsidiaries’ products and accessories contemplated under the Transition Services Agreement;
provided, however, that the Patient Monitoring Business shall not include that
portion of the business and operations relating to the servicing, warranty and repair of Cardiac
Assist and InterVascular products and accessories that will not be subject to the Transition
Services Agreement.

     “Permitted Liens” shall mean (a) statutory liens for Taxes not yet due or delinquent
(or which may be paid without interest or penalties) or the validity or amount of which is being
contested in good faith by appropriate proceedings and for which adequate reserves have been
established in accordance with GAAP, (b) mechanics’, carriers’, workers’, repairers’ and other
similar liens arising or incurred in the ordinary course of business relating to obligations as to
which there is no default on the part of Seller or the validity or amount of which is being
contested in good faith by appropriate proceedings, or pledges, deposits or other liens securing
the performance of bids, trade Contracts, leases or statutory obligations (including workers’
compensation, unemployment insurance or other social security legislation) and (c) all covenants,
conditions, restrictions, easements, charges, rights-of-way and similar matters set

-10-

 

forth in any state, local or municipal franchise of Seller which do not materially interfere
with the continued use of the property for the purposes for which the property is currently being
used and do not materially affect the validity of title of such property

     “Person” shall mean an individual, corporation, partnership, limited liability
company, association, trust, unincorporated organization or any other entity or group (as such term
is used in Section 13 of the Securities Exchange Act of 1934, as amended).

     “Pre-Closing Tax Period” shall mean any taxable period ending on or before the Closing
Date and the portion of any Straddle Period ending on and including the Closing Date.

     “Products” shall mean products manufactured, marketed, distributed or sold in
connection with the Base PM Business that are described on the Schedule of Products attached hereto
as Schedule 1.1(i).

     “Property Taxes” means real, personal and intangible ad valorem property Taxes.

     “Purchase Price” shall mean the Base Purchase Price less the Estimated Net Working
Capital Deficiency or plus the Estimated Net Working Capital Excess, as the case may be, and as may
be further adjusted pursuant to Section 2.11.

     “Purchased Assets” shall mean, collectively, the Acquired Assets, the Assumed
Agreements, the Products, the Transferred Real Property, the Transferred IP Assets and the Artema
Stock. For the avoidance of doubt, the Purchased Assets exclude the Excluded Assets.

     “Regulatory Law” shall mean any and all state, federal and foreign statutes, rules,
regulations, orders, decrees, administrative and judicial doctrines and other Laws requiring notice
to, filings with, or the consent, clearance or approval of, any Governmental Entity, or that
otherwise may cause any restriction, in connection with the transactions contemplated hereby.

     “SEC” shall mean the Securities and Exchange Commission.

     “Seller Foreign Plan” means each material plan, program or contract that is subject to
or governed by the laws of any jurisdiction other than the United States, and which would have been
treated as a Seller Benefit Plan had it been a United States plan, program or contract.

     “Seller SEC Documents” shall mean all forms, documents, certifications, statements and
reports, including any amendments thereto, that Seller has filed with, or otherwise transmitted to,
the SEC as it is required to file with, or otherwise transmit to, the SEC prior to the date hereof.

     “Selling Subsidiaries” shall mean Datascope International B.V. Netherlands Filial,
Datascope BV, Datascope GmbH, Datascope Medical Co., Ltd., Datascope SARL and Datascope Belgium
SPRL, Datascope Investment Corp. and Datascope Trademark Corp.

-11-

 

     “Straddle Period” shall mean any taxable period beginning before and ending after the
Closing Date.

     “Subsidiary” or “Subsidiaries” of any party shall mean any corporation,
partnership, association, trust or other form of legal entity of which (i) more than 50% of the
outstanding voting securities are on the date hereof directly or indirectly owned by such party or
(ii) such party or any Subsidiary of such party is a general partner (excluding partnerships in
which such party or any Subsidiary of such party does not have a majority of the voting interests
in such partnership).

     “Tax” and Taxes” shall mean (i) any and all federal, state, local or foreign
or provincial taxes, imposts, levies or other assessments, including all net income, gross
receipts, capital, sales, use, ad valorem, value added, transfer, franchise, profits, inventory,
capital stock, license, withholding, payroll, employment, social security, unemployment, excise,
severance, stamp, occupation, property and estimated taxes, customs duties, fees, assessments and
charges of any kind whatsoever, including any and all interest, penalties, fines, additions to tax
or additional amounts imposed by any Governmental Entity in connection with respect thereto and
(ii) any transferee liability or obligations with respect to any items in clause (i) above, whether
by contract, as a successor or otherwise.

     “Tax Returns” shall mean any return, report or similar filing (including any attached
schedules, supplements and additional or supporting material) filed or required to be filed with
respect to Taxes, including any information return, claim for refund, amended return or declaration
of estimated Taxes (and including any amendments with respect thereto).

     “Taxing Authority” shall mean the United States Internal Revenue Service or any other
taxing authority, whether domestic or foreign, including any state, county, local or foreign
government or any subdivision or taxing agency thereof.

     “Trademark Assignments” shall have the meaning set forth in Section 2.2(b).

     “Trademark License Agreement” shall mean the Trademark License Agreement by and among
Seller and certain of its Subsidiaries, on the one hand, and Buyer, on the other hand, dated as of
the Closing Date, substantially in the form of Exhibit A attached hereto.

     “Trademarks” shall mean all trademarks, service marks, trade dress, logos, slogans,
trade names, service names, domain names, corporate and business names, and all applications,
registrations, and renewals therefor.

     “Transaction Documents” shall mean the Asset Transfer and Assumption Agreements, the
Transition Manufacturing Agreement, the Trademark License Agreement and the Transition Services
Agreement.

-12-

 

     “Transfer Taxes” shall mean any transfer, documentary, sales, use, real property
gains, stamp, registration, and other such similar Taxes and fees. For the avoidance of doubt,
Transfer Taxes shall not include value added Tax.

     “Transferred Copyrights and Know-How” shall mean the intellectual property listed on
Schedule 1.1(j).

     “Transferred IP Assets” shall mean the Transferred Patents, the Transferred Trademarks
and the Transferred Copyrights and Know-How.

     “Transferred Patents” shall mean the Patents listed on Schedule 1.1(k).

     “Transferred Real Property” shall mean real property interests in the manufacturing,
research and development and warehousing facility located in Mahwah, New Jersey and the central
warehouse facility in Hoevelaken, The Netherlands (including, in each case, all improvements,
structures, fixtures and appurtenant thereto).

     “Transferred Trademarks” shall mean the Trademarks listed on Schedule 1.1(l)
hereto.

     “Transition Manufacturing Agreement” shall mean the Transition Manufacturing Agreement
to be executed by and between Seller and Buyer as of the Closing Date, substantially in the form of
Exhibit B attached hereto.

     “Transition Services Agreement” shall mean the Transition Services Agreement be
executed by and between Seller and Buyer as of the Closing Date, substantially in the form of
Exhibit C attached hereto.

ARTICLE II

CLOSING

Section 2.1 Closing

     The closing of the purchase and sale of the Purchased Assets and the assumption of the Assumed
Liabilities (the “Closing”) shall take place at the offices of Dechert LLP, 30 Rockefeller
Plaza, New York, New York, 10112, on or before the second Business Day the satisfaction of all of
the conditions to Closing set forth in Article V (or at such other place and time as the parties
may mutually agree) (sometimes referred to herein as the “Closing Date”). The parties
hereto specifically acknowledge that time is of the essence with respect to the Closing. All
activities of the Patient Monitoring Business on the Closing Date shall be to the account of
Seller.

-13-

 

Section 2.2 Assets to be Sold

     (a) On the Closing Date, and subject to the terms and conditions of this Agreement, Seller
shall sell, assign and transfer, and will cause the Selling Subsidiaries to sell, assign and
transfer, to Buyer all of Seller’s and the Selling Subsidiaries’ right, title and interest in and
to the Purchased Assets, free and clear of all Liens other than Permitted Liens, as provided
herein.

     (b) Such transfers will be effected by Seller or one or more Selling Subsidiaries, as the case
may be, transferring to Buyer, in each case, as shall be mutually agreed upon by Seller and Buyer,
pursuant to (i) one or more bills of sale as shall be necessary to transfer to Buyer good and valid
title to all the Acquired Assets other than Transferred Real Property, free and clear of all Liens
other than Permitted Liens (the “Bills of Sale”), (ii) one or more assignment and
assumption agreements as shall be necessary to assign and transfer to Buyer all the Assumed
Agreements (or portions thereof relating to the Patient Monitoring Business or the Purchased
Assets) to be assigned and transferred to Buyer at the Closing (the “Contract
Assignments”), (iii) the Conveyancing Documents, (iv) one or more general assignments as shall
be necessary to assign to Buyer all of the rights to the Transferred Trademarks (the “Trademark
Assignments”); provided, however, that it shall be Buyer’s responsibility to
prepare any applicable country trademark assignments and to record them, at its own expense,
following execution by Seller (or the applicable Selling Subsidiaries), (v) one or more general
assignments as shall be necessary to assign to Buyer all of the rights to the Copyrights comprised
in the Transferred Copyrights and Know-How (the “Copyright and Know-How Assignments”);
provided, however, that it shall be Buyer’s responsibility to prepare any
applicable country copyright assignments and to record them, at its own expense, following
execution by Seller (or the applicable Selling Subsidiaries), and (vi) one or more general
assignments as shall be necessary to assign to Buyer all of the rights to the Transferred Patents
(the “Patent Assignments” and, together with the Bills of Sale, the Contract Assignments,
the Conveyancing Documents, the Trademark Assignments and the Copyright and Know-How Assignments,
the “Asset Transfer and Assumption Agreements”); provided, however, that it
shall be Buyer’s responsibility to prepare any applicable country-specific intellectual property
assignments and to record them, at its own expense, following execution by Seller (or the
applicable Selling Subsidiaries).

     (c) If any separate agreements are necessary for the sale, assignment and transfer of any
Purchased Assets outside of the United States, such agreements shall be on terms wholly consistent
with and as close as reasonably possible to the terms of this Agreement. Without limiting the
foregoing, the parties shall arrange for such separate agreements providing for the sale,
assignment and purchase of the Purchased Assets located in Belgium, France, Germany, the United
Kingdom and the Netherlands to be prepared and entered into by the respective local Selling
Subsidiaries and Buyer or its Affiliates prior to the Closing Date. Each party shall be
responsible for its own legal costs in connection with this Section 2.2.

     (d) All risk of loss with respect to the Purchased Assets (whether or not covered by
insurance) shall be on Seller up to and including the Closing Date, whereupon such risk of loss
shall pass to Buyer.

-14-

 

Section 2.3 Assumption of Liabilities

     (a) At the Closing, Buyer shall assume the Assumed Liabilities and shall agree to pay, perform
and discharge the Assumed Liabilities, and shall promptly reimburse Seller for the performance by
Seller (or its Affiliates) of any such obligation the performance of which by Buyer is not accepted
by the obligee in the exercise of such obligee’s lawful rights. Buyer is not assuming any debt,
liability or obligation of Seller or any Affiliate of Seller, other than the Assumed Liabilities,
and Seller and its Affiliates shall retain all other liabilities and obligations of Seller and its
Affiliates, whether accrued, absolute, contingent or otherwise, including, without limitation, the
Excluded Liabilities.

     (b) Buyer’s assumption of the obligations with respect to Assumed Agreements, subject to the
ongoing obligations of the parties post-Closing pursuant to Section 2.8, shall be evidenced by
Buyer’s execution and delivery of the Contract Assignments.

Section 2.4 Purchase Price.

     Subject to the terms and conditions of this Agreement, the consideration to be paid by Buyer
for the Purchased Assets shall be an amount equal to the Purchase Price plus the assumption of the
Assumed Liabilities by Buyer. The Purchase Price shall be paid in the manner and at the time set
forth in Sections 2.10 and 2.11.

Section 2.5 Excluded Assets

     Notwithstanding anything in this Agreement to the contrary, Seller shall not and does not
agree to sell, assign or deliver to Buyer, and Buyer shall not purchase, acquire or obtain under
this Agreement or the transactions contemplated hereby any right, title or interest in or to any of
the Excluded Assets.

Section 2.6 Allocation of Purchase Price

     Prior to Closing, the parties shall agree to an allocation of the consideration (the
“Total Consideration,” which shall include the Purchase Price and the assumption of the
relevant Assumed Liabilities which are treated under the Tax Laws of the relevant jurisdiction as
part of the total consideration received in exchange for the sale of the Purchased Assets) among
the Seller and the Selling Subsidiaries and the portion of the Total Consideration allocated to
each such entity among the Purchased Assets transferred by such entity to Buyer or its Affiliates,
in each case, in accordance with applicable Tax Law and substantially in the form set forth in
Schedule 2.6; provided, however, that the parties may agree to modify the form provided in
Schedule 2.6 (including to the extent that an agreed upon allocation is required with
respect to a specific Purchased Asset) (the agreed upon allocation, the “Allocation
Schedule”). Except as otherwise required by Law, (i) the Allocation Schedule will apply for
U.S. and foreign Tax purposes, and (ii) Buyer and Seller and their respective subsidiaries will (A)
act in accordance with the Allocation Schedule in the preparation of financial statements and the
filing of all Tax Returns and (B) take no position inconsistent with the Allocation Schedule for
all Tax purposes.

-15-

 

Section 2.7 Transfer Taxes and Value Added Tax; Bulk Sales

     (a) Subject to any obligation imposed by Law or Governmental Entity, Seller and Buyer agree to
fully and reasonably cooperate to minimize the impact of all Transfer Taxes and value added Tax
levied on the sale, assignment or transfer of the Purchased Assets to be sold and transferred as
provided herein. All Transfer Taxes resulting from the transactions contemplated by this Agreement
shall be borne equally by Buyer and Seller.

     (b) Buyer hereby waives compliance by Seller and its Affiliates with the provisions of the
bulk transfer and bulk sales Laws of any applicable jurisdictions; provided, that,
that Seller shall indemnify and hold harmless Buyer, its Affiliates and each of their respective
successors and assigns from and against any and all losses of any such Persons, directly or
indirectly, as a result of, or based upon or arising from the failure to comply with any such Laws;
and provided, however that nothing in this Agreement will prevent either party from
asserting as a bar or defense in any action or proceeding brought under any bulk sales or bulk
transfer Law that such Law does not apply to the transactions contemplated by this Agreement.

Section 2.8 Non-Assignability of Assets

     To the extent that the sale, assignment, transfer, conveyance or delivery or attempted sale,
assignment, transfer, conveyance or delivery to Buyer of any Purchased Asset or Assumed Agreement
is prohibited by any Law or would require any governmental or third party authorizations,
approvals, consents or waivers (“Consent”) and such Consent shall not have been obtained
prior to the Closing, this Agreement shall not constitute a sale, assignment, transfer, conveyance
or delivery, or any attempted sale, assignment, transfer, conveyance or delivery, thereof. For a
period (the “Transfer Period”) beginning on the Closing Date (or, if earlier, the
Non-Compete Expiration Date) and ending on the earlier of (a) one year from such date or (b) Seller
consummates a Seller Change of Control (provided, however, that the Transfer Period shall not, in
any case, be less than six months), Seller agrees to use its commercially reasonable efforts to
obtain or satisfy, at the earliest practicable date, all Consents to facilitate the full and
expeditious transfer of legal title, or Seller’s or its Selling Subsidiaries’ rights, as the case
may be, to the Purchased Assets as of the Closing Date; provided, however, that
neither Seller nor Buyer shall be required to pay any consideration therefor, nor shall Seller have
any obligation to extend or renew any such Assumed Agreement that may expire during such period.
If the necessary Consent is obtained, Seller shall assign and transfer any such Purchased Asset or
Assumed Agreement to Buyer at no additional cost, and Buyer shall thereupon assume all obligations
and liabilities of Seller under any such Assumed Agreement in accordance with the terms of this
Agreement. If the necessary Consent is not obtained within such period, Seller’s obligations to
Buyer with respect to such Purchased Asset or Assumed Agreement shall expire, Seller shall be free
to terminate any such Assumed Agreement in accordance with its terms, and under no circumstances
shall the Purchase Price be reduced on account of the failure to obtain any such Consent. If any
such Consents are not obtained and/or satisfied by the time of the Closing and Buyer in its sole
discretion waives such requirement, then, at Seller’s expense: (a)

-16-

 

Seller shall continue to use such commercially reasonable efforts to obtain same, (b) Seller
shall at the Closing enter into such arrangements as Buyer may reasonably request in order to
provide to Buyer the benefit of any the non-transferred items, until such items have been
transferred to Buyer (or its Affiliate, as applicable), if ever, whether by assignment, novation or
otherwise and (c) Buyer shall perform such non-transferred items as subcontractor to Seller (to the
extent subcontracting is permissible under the relevant item) or, where subcontracting is not
permissible, as agent for Seller, until such items have been transferred to Buyer (or its
Affiliate, as applicable), if ever, whether by assignment, novation or otherwise. Nothing herein
shall be construed as an attempt to transfer any Contract, Permit, Approval or other Purchased
Asset which by its terms requires Consent to do so unless such Consent has been obtained. Buyer
shall grant Seller a license to any and all Purchased Assets to the extent the same are necessary
for Seller to continue to perform its obligations under any such Assumed Agreement.

Section 2.9 Delivery by Seller

     At the Closing, Seller will deliver, or cause to be delivered, to Buyer the following (unless
delivered previously):

     (a) stock certificates and stock powers with respect to the Artema Stock duly executed to
Buyer, free and clear of any Liens;

     (b) the Secretary’s Certificate referred to in Section 5.1(c) hereof; and

     (c) duly executed counterparts of the Transaction Documents.

Section 2.10 Delivery by Buyer

     At the Closing, Buyer will deliver, or cause to be delivered, to Seller (or one or more of
Seller’s Affiliates, as designated by Seller) the following (unless previously delivered):

     (a) the Base Purchase Price less the Estimated Net Working Capital Deficiency or plus the
Estimated Net Working Capital Excess, as the case may be, by transfer of immediately available
funds (to such account as Seller may direct by written notice delivered to Buyer at least three (3)
Business Days prior to the Closing Date);

     (b) the Secretary’s Certificate referred to in Section 5.2(c) hereof; and

     (c) duly executed counterparts of the Transaction Documents.

Section 2.11 Net Working Capital Adjustments; Accounts Receivable Adjustments

     (a) Estimated Closing Date Net Working Capital Adjustment. At least three (3)
Business Days prior to the Closing Date, Seller shall provide Buyer with a good faith estimate of
the Closing Date Net Working Capital (the “Estimated Closing Date Net Working Capital”).
The amount, if any, by which the Estimated Closing Date Net Working Capital is less than

-17-

 

$49,132,000 (the “Target Closing Date Net Working Capital”) is the “Estimated Net
Working Capital Deficiency” and the amount, if any, by which the Estimated Closing Date Net
Working Capital exceeds the Target Closing Date Net Working Capital is the “Estimated Net
Working Capital Excess.” Seller shall make available to Buyer all work papers and other books
and records utilized in calculating the Estimated Closing Date Net Working Capital.

     (b) Post-Closing Closing Date Net Working Capital Adjustment. As promptly as
practicable, but in no event later than ninety (90) days after the Closing Date, Buyer shall notify
Seller in writing of its final determination of the Patient Monitoring Business’ actual (rather
than estimated) Closing Date Net Working Capital (sometimes referred to herein as the “Buyer’s
Report”), which determination shall set forth in reasonable detail Buyer’s calculation of the
Closing Date Net Working Capital. The Buyer’s Report shall also set forth, and explain in
reasonable detail, any differences between Buyer’s calculation of the Closing Date Net Working
Capital and Seller’s Calculation of the Estimated Closing Date Net Working Capital. The Closing
Date Net Working Capital shall be calculated in accordance with the Accounting Standards. A copy
of all work papers and other books and records utilized in the preparation of the Buyer’s Report
shall be made available to Seller at such time. Seller will notify Buyer in writing (the “Net
Working Capital Dispute Notice”) within thirty (30) days after receiving the Buyer’s Report if
Seller disagrees with the Buyer’s calculation of the Closing Date Net Working Capital as set forth
in the Buyer’s Report, which notice shall set forth in reasonable detail the basis for such
disagreement, the amounts involved and Seller’s calculation of the Closing Date Net Working
Capital. If no Net Working Capital Dispute Notice is received by Buyer within such thirty (30) day
period, the Buyer’s calculation of the Closing Date Net Working Capital as set forth in the Buyer’s
Report shall be final and binding upon the parties hereto. Seller and Buyer will give each other
and their respective representatives reasonable access during normal business hours and upon
reasonable notice to the personnel, books and records of the Seller and its Affiliates, on the one
hand, and the Buyer and its Affiliates, on the other hand, relating to the Closing Date Net Working
Capital to assist Buyer in the preparation of the Buyer’s Report and to assist Seller in the
preparation of any Net Working Capital Dispute Notice.

     (c) Upon receipt by Buyer of a Net Working Capital Dispute Notice, Seller and Buyer shall
negotiate in good faith to resolve any disagreement with respect to the Closing Date Net Working
Capital set forth in the Net Working Capital Dispute Notice. To the extent Buyer and Seller are
unable to agree with respect to the Closing Date Net Working Capital within thirty (30) days after
receipt by Buyer of the Net Working Capital Dispute Notice (the “Resolution Period”), Buyer
and Seller shall promptly but not later than five (5) Business Days after the expiration of the
Resolution Period submit the issues as to the proper amount of the Closing Date Net Working Capital
for a binding determination to any internationally recognized accounting firm that is not an
affiliate of, or engaged as the accounting firm for, any of Seller, Buyer and their respective
Affiliates (an “Independent Accounting Firm”) that is mutually acceptable to Seller and
Buyer, or, if no such agreement is reached within five (5) Business Days after the expiration of
the Resolution Period, each of Seller and Buyer shall select an Independent Accounting Firm,
whereupon such Independent Accounting Firms shall jointly select a third Independent Accounting
Firm. Such accounting firm selected by Seller and Buyer, or by the two

-18-

 

Independent Accounting Firms, as the case may be, may consider only items disputed by the Net
Working Capital Dispute Notice and matters affected thereby, and its determination of the Final
Closing Date Net Working Capital (as defined below) shall not be less than the Closing Date Net
Working Capital set forth in the Buyer’s Report or more than the Closing Date Net Working Capital
set forth in the Net Working Capital Dispute Notice. Such accounting firm’s determination shall be
made within thirty (30) days after their selection, shall be set forth in a written statement as to
the dispute and the resulting computation of the Closing Date Net Working Capital delivered to
Buyer and Seller, shall be final, binding and conclusive and shall constitute an arbitral award
upon which a judgment may be entered in any court having jurisdiction thereof. The amount of the
Closing Date Net Working Capital as agreed upon by Seller and Buyer, as deemed agreed upon pursuant
to the next-to-last sentence of Section 2.11(b) or as determined by such accounting firm in
accordance herewith, shall be the “Final Closing Date Net Working Capital.” The fees and
expenses of such accounting firm shall be paid by the party (either Seller or Buyer) whose latest
offer or position as to an acceptable amount for the Closing Date Net Working Capital at the time
the issue is submitted to such accounting firm is furthest away from the Final Closing Date Net
Working Capital as determined by such accounting firm.

     (d) If the Final Closing Date Net Working Capital is less than the Estimated Closing Date Net
Working Capital, the amount equal to the difference between the two (the “Final Net Working
Capital Deficiency”) shall be paid by Seller to Buyer within ten (10) Business Days after the
amount of the Final Net Working Capital Deficiency has been determined. If the Final Closing Date
Net Working Capital is more than the Estimated Closing Date Net Working Capital, the amount equal
to the difference between the two (the “Final Net Working Capital Excess”) shall be paid by
Buyer to Seller within ten (10) Business Days after the amount of the Final Net Working Capital
Excess has been determined.

     (e) The amount of Final Net Working Capital Deficiency or Final Net Working Capital Excess, if
any, paid pursuant to Section 2.11(d), shall be treated as an adjustment to the Purchase
Price.

     (f) The following terms shall have meanings set forth below:

     (i) “Current Assets” shall mean, as of a specified date, all of the
current assets of the Patient Monitoring Business (including, for the avoidance of
doubt, Inventory), other than Excluded Assets (which Excluded Assets shall include,
for the avoidance of doubt, Accounts Receivable), as determined in accordance with
GAAP;

     (ii) “Current Liabilities” shall mean, as of a specified date, all of
the current liabilities of the Patient Monitoring Business, other than Excluded
Liabilities, as determined in accordance with GAAP; and

     (iii) “Closing Date Net Working Capital” shall mean, as of the closing
of business on the Closing Date, (a) the Current Assets minus (b) the Current

-19-

 

Liabilities, all as determined for the Patient Monitoring Business as of the
closing of business on the Closing Date and in accordance with GAAP.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER

     Buyer acknowledges and agrees that the Purchased Assets are sold “as is, where is” and Buyer
agrees to accept the Purchased Assets in the condition they are in at the place they are located on
the Closing Date based on its own inspection, examination and determination with respect to all
matters, and without reliance upon any express or implied representations or warranties of any
nature made by, on behalf of or imputed to Seller, except for such representations and warranties
as are expressly set forth in this Agreement. Without limiting the generality of the foregoing,
Buyer acknowledges that Seller makes no representation or warranty with respect to (i) any
forecasts, projections, estimates or budgets delivered or made available to Buyer of future
revenues, future results of operations (or any component thereof), future cash flows or future
financial condition (or any component thereof) or (ii) any other information or documents made
available to Buyer or its counsel, accountants or advisors, except as expressly set forth in this
Agreement or the Schedules or Exhibits hereto. BUYER AGREES THAT THE REPRESENTATIONS AND
WARRANTIES GIVEN HEREIN BY SELLER ARE IN LIEU OF, AND BUYER HEREBY EXPRESSLY WAIVES ALL RIGHTS TO,
ANY IMPLIED WARRANTIES WHICH MAY OTHERWISE BE APPLICABLE BECAUSE OF THE PROVISIONS OF THE UNIFORM
COMMERCIAL CODE OR ANY OTHER STATUTE, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     Except (1) as disclosed in the Seller SEC Documents filed prior to the date of this Agreement
(other than any forward looking disclosures set forth in any risk factor section, any disclosures
in any section relating to forward looking statements and any other disclosures included therein to
the extent they are primarily predictive or forward-looking in nature) or (2) as explicitly set
forth in the Disclosure Schedules attached hereto (it being agreed that disclosure of any item in
any Disclosure Schedule shall also be deemed disclosure with respect to any other Disclosure
Schedule to which such disclosure is reasonably apparent), Seller represents and warrants to Buyer
as follows:

Section 3.1 Qualification, Organization, Selling Subsidiaries, etc.

     (a) Each of Seller and the Selling Subsidiaries is duly organized, validly existing and in
good standing under the Laws of the jurisdiction in which it is organized. Each of Seller and the
Selling Subsidiaries has the corporate, partnership or similar power and authority, as applicable,
to own, lease and operate its properties and to carry on its business as presently conducted,
except where the failure to have such power or authority would not have a Material Adverse Effect.

-20-

 

     (b) Each of Seller and the Selling Subsidiaries is qualified to do business or licensed and,
where applicable as a legal concept, is in good standing as a foreign corporation in each
jurisdiction where the ownership, leasing or operation of its assets or properties or conduct of
its business requires such qualification, except where the failure to be so qualified or in good
standing would not have a Material Adverse Effect.

     (c) The authorized capital stock or other equity interests of Artema consists of SEK 1,000,000
share capital, par value SEK 0.04 per share. As of the date hereof, (i) SEK 632,135 of Artema
Stock were issued and outstanding, and (ii) no shares of Artema Stock were held in treasury. The
shares of Artema Stock are duly authorized, validly issued, fully paid and nonassessable and are
not subject to any pre-emptive or subscription rights (and were not issued in violation of any
preemptive or subscription rights). Seller, directly or indirectly through one or more wholly
owned Subsidiaries of Seller, beneficially owns and has good and valid title to all the Artema
Stock, free and clear of all Liens. There are (i) no options, warrants, or similar rights to
purchase any of the shares or other equity interests of Artema, and no obligations binding upon any
of Seller or its Affiliates (including Artema) to issue, sell, redeem, purchase or exchange any of
its capital stock or any other equity interest or any right relating thereto, and (ii) no
shareholders’ agreements, voting agreements, voting trusts or other agreements or rights of third
parties with respect to or affecting Artema or any of its shares of capital stock or other equity
interests. Seller has delivered or made available to Buyer prior to the date hereof true and
complete copies of the certificate of incorporation, bylaws, and each other organizational document
of Artema, each as in effect as of the date hereof.

Section 3.2 Corporate Authority Relative to this Agreement; No Violation

     (a) Seller has the requisite corporate power and authority to execute and deliver this
Agreement, to perform its obligations under this Agreement and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby have been duly and validly authorized by the
Board of Directors of Seller, and no other corporate proceedings on the part of Seller (including,
for the avoidance of doubt, the vote or approval of the stockholders of Seller) are necessary to
authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has
been duly and validly executed and delivered by Seller and, assuming this Agreement constitutes the
valid and binding agreement of Buyer, constitutes the valid and binding agreement of Seller,
enforceable against Seller in accordance with its terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws relating to or
affecting creditors’ rights generally, general equitable principles (whether considered in a
proceeding in equity or at Law) and any implied covenant of good faith and fair dealing.

     (b) Other than the approvals set forth in Schedule 3.2(b) (collectively, the
“Seller Approvals”), no authorization, consent or approval of, or filing with, any
Governmental Entity is necessary, under applicable Law, in connection with the execution, delivery
and performance of this Agreement by Seller or for the consummation by Seller of the transactions
contemplated

-21-

 

hereby, except for such authorizations, consents, approvals, permits, actions, notifications
or filings that, if not obtained or made, would not have a Material Adverse Effect.

     (c) Except as described in Schedule 3.2(c), the execution and delivery by Seller of
this Agreement does not, the performance by Seller of its obligations under this Agreement will
not, and the consummation of the transactions contemplated hereby and compliance with the
provisions hereof by Seller will not (with or without notice or lapse of time, or both), (i) result
in any violation of, or default under, require consent under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to the loss of any benefit under (A)
any Assumed Agreement, or result in the creation of any Lien upon any of the Purchased Assets, or
(B) to the extent not covered in (A), any loan, guarantee of indebtedness or credit agreement,
note, bond, mortgage, indenture, lease, agreement, Contract, instrument, permit, Seller Permit,
concession, franchise, right or license binding upon Seller or any of the Selling Subsidiaries or
result in the creation of any Lien upon any of the properties or assets of Seller or any of the
Selling Subsidiaries; (ii) conflict with or result in any violation of any provision of the
certificate or articles of incorporation or bylaws or other equivalent organizational document of
Seller or any of the Selling Subsidiaries; or (iii) assuming that the consents and approvals
referred to in Schedule 3.2(c) are duly obtained, conflict with or violate any applicable
Laws, other than, in the case of clauses (i) and (iii), as would not have a Material Adverse
Effect.

Section 3.3 Title to Property

     Except as set forth in Schedule 3.3, as otherwise provided in this Agreement or the
Transaction Documents, and except for such defects of title as do not materially interfere with the
use of such property in the ordinary course of business, Seller or a Selling Subsidiary owns,
leases or has the legal right to use all of the Purchased Assets (other than the Transferred IP
Assets, which is the subject of Section 3.10) and has good, valid and transferable title to (or in
the case of leased Purchased Assets, valid leasehold interest in or valid and enforceable lease
agreements regarding) all Purchased Assets (other than the Transferred IP Assets, which is the
subject of Section 3.10). All of the material Purchased Assets are free of all Liens other than
(i) Permitted Liens and (ii) Liens disclosed in any Seller SEC Document.

Section 3.4 Completeness of Assets

     (a) Except for the Excluded Assets, the information technology systems, infrastructure and
software retained by Seller pursuant to the Transition Services Agreement and as set forth in
Schedule 3.4(a), the Purchased Assets, together with the rights granted to Buyer pursuant
to this Agreement and the Transaction Documents, and any other agreements to be entered into
pursuant hereto or thereto, will constitute on the Closing Date all of the assets and rights (other
than employees) used by Seller and the Selling Subsidiaries to conduct the Patient Monitoring
Business in the same manner as such business is currently conducted by Seller and the Selling
Subsidiaries.

     (b) The tangible assets included in the Purchased Assets, taken as a whole, have been
maintained in accordance with normal industry practice, are in good operating condition and

-22-

 

repair (subject to normal wear and tear and other impairments of value which do not materially
interfere with the use of such assets in the ordinary course of business), and are suitable for the
purposes for which they are presently used.

Section 3.5 Financial Statements

     Attached hereto as Exhibit D are true, complete and correct copies of the Financial
Statements. The Financial Statements (including the notes thereto) fairly present in all material
respects (a) the assets and liabilities of the Patient Monitoring Business as of December 31, 2007
(the “Interim Balance Sheet Date”) and June 30, 2007 and (b) the revenues and expenses of
the Patient Monitoring Business for the six-month period ended December 31, 2007 and the fiscal
years ended June 30, 2007 and June 30, 2006. The Financial Statements (i) are prepared from, and
in accordance with, the books and records of Seller and the Seller Subsidiaries and (ii) reflect in
all material respects the costs and expenses of the Patient Monitoring Business as if the Patient
Monitoring Business was independent and not affiliated with any other corporation or business.
Notwithstanding the foregoing, Buyer acknowledges that the Financial Statements were prepared
solely for the purpose of this Agreement and for the internal management purposes of Seller and
that the Patient Monitoring Business was not conducted on a stand-alone basis as a separate entity
during the periods indicated in the Financial Statements and that the allocations and estimates
included in the Financial Statements are not necessarily indicative of the costs that would have
resulted if the Patient Monitoring Business had been operated and conducted on a stand-alone basis
as a separate entity during such periods. Other than as set forth in this Section 3.5, Seller
makes no representations with regard to the Financial Statements or the other financial information
of the Patient Monitoring Business (including any estimates, projections, plans or budgets).

Section 3.6 Absence of Undisclosed Liabilities

     Except (i) as reflected or reserved against in the Financial Statements; (ii) for transactions
contemplated by this Agreement or the financing of such transactions; (iii) for liabilities and
obligations incurred in the ordinary course of business since the Interim Balance Sheet Date; and
(iv) for liabilities not required by GAAP to be disclosed on Seller’s consolidated balance sheets,
the Patient Monitoring Business has no liabilities or obligations of any nature, whether or not
accrued, contingent or otherwise, whether known or unknown and whether due or to become due, that
would have a Material Adverse Effect.

Section 3.7 Absence of Certain Changes or Events

     Since December 31, 2007, except as otherwise required or contemplated by this Agreement, the
Patient Monitoring Business has been conducted, in all material respects, in the ordinary course of
business and there has not been a Material Adverse Effect.

-23-

 

Section 3.8 Inventory

     All of the Inventory is valued at the lower of cost or market, the cost thereof being
determined on a first-in, first-out basis, except as disclosed in the Financial Statements.
Attached hereto as Schedule 3.8 is a summary of the Inventory as of December 31, 2007 (the
“Inventory Summary”). Except as disclosed on Schedule 3.8, all of the Inventory
reflected in the Inventory Summary and all such Inventory acquired since the Interim Balance Sheet
Date consist of items of a quality and quantity useable and saleable in the ordinary course of
business within a reasonable period of time at normal profit margins. Except as set forth in
Schedule 3.8, (i) none of the Inventory (whether parts/raw materials, work-in-process or
finished goods) reflected in the Inventory Summary and (ii) none of the Inventory acquired after
the Interim Balance Sheet Date is obsolete or otherwise not saleable within a twelve-month period
(and to the extent obsolete or otherwise not saleable, has been written off or written down to net
realizable value in the Financial Statements or on the accounting records of Seller as of the
Closing Date, as the case may be). All of the Inventory (whether parts/raw materials,
work-in-process or finished goods) reflected in the Inventory Summary and all such Inventory
acquired after the Interim Balance Sheet Date are of such quality as to meet or exceed the Base PM
Business’ internal standards and any applicable governmental quality control standards. The
Inventory levels with respect to the Base PM Business are not excessive and have been maintained at
the levels required for the operation of the Base PM Business as conducted prior to and as of the
date of hereof and these levels will be adequate for the operation of the Base PM Business after
the Closing in the manner consistent with the operation of the Base PM Business immediately prior
to the Closing.

Section 3.9 Assumed Agreements and Material Contracts

     (a) Except for this Agreement, the Seller Benefit Plans, as disclosed in any Seller SEC
Documents, as disclosed in Schedule 3.9, neither Seller nor any of the Selling Subsidiaries
is a party to or bound by, as of the date hereof, any Contract (i) that is material to the
operation of the Patient Monitoring Business or (ii) any Contract that involves, or could
reasonably be expected to involve, payment by or to Seller and any of the Selling Subsidiaries in
respect of the Patient Monitoring Business in excess of $150,000, and (iii) that contains any
provision that prior to or following the Closing would by its terms materially restrict or alter
the conduct of the Patient Monitoring Business of, or purport to materially restrict or alter the
conduct of the Patient Monitoring Business, except for agreements the primary purpose of which is
to create a real property interest (all contracts of the type described in this Section 3.9(a)
being referred to herein as “Material Contracts”).

     (b) Seller has delivered or made available to Buyer a correct and complete copy of each
Material Contract.

     (c) (i)  Each Material Contract is valid and binding on Seller and any of the Selling
Subsidiaries to the extent Seller or such Selling Subsidiary is a party thereto, and, to the
Knowledge of Seller, each other party thereto, as applicable, and is in full force and effect,
except where the failure to be valid, binding and in full force and effect would not have a
Material Adverse Effect and (ii) neither Seller nor any of the Selling Subsidiaries has received

-24-

 

written notice of, or otherwise has Knowledge of, the existence of any event or condition
which constitutes, or, after notice or lapse of time or both, will constitute, a material default
on the part of Seller or any of the Selling Subsidiaries under any such Material Contract.

Section 3.10 Intellectual Property Rights

     Except as set forth on Schedule 3.10:

     (a) Except for such defects of title as do not materially interfere with the use of such
property in the ordinary course of business, Seller owns the exclusive right, title and interest to
the Transferred IP Assets, free and clear of all Liens, conditions, adverse claims or other
restrictions (other than Permitted Liens, any licenses granted by Seller or any of the Selling
Subsidiaries to third parties and implied or express licenses granted by the Seller or any of the
Selling Subsidiaries in connection with the commercial sale of products), and except for the
Excluded Assets, the information technology systems, infrastructure and software retained by Seller
pursuant to the Transition Services Agreement and the rights and restrictions subject of the
Transaction Documents, the Transferred IP Assets constitute all of the material Intellectual
Property Rights used by Seller and the Selling Subsidiaries in the Patient Monitoring Business as
currently conducted. To the Knowledge of the Seller, none of the Transferred IP Assets is or has
been involved in any opposition, cancellation, interference, reissue or reexamination proceeding.

     (b) Seller has not received in the past two (2) years any written notice alleging that any
Transferred IP Assets are invalid or unenforceable, or challenging Seller’s ownership of or right
to use any such rights. To the Knowledge of Seller, each of the registrations of Patent,
Trademarks and Copyrights included in the Transferred IP Assets is held and/or recorded in the name
of Seller, is valid and in full force and effect, except as would not, individually or in the
aggregate, have a Material Adverse Effect.

     (c) To the Knowledge of Seller, the products and services and the business of the Patient
Monitoring Business as currently conducted by Seller do not infringe, misappropriate or violate the
Intellectual Property Rights of any third party. Seller has not received any written notice in the
past two (2) years alleging that the Patient Monitoring Business is infringing, misappropriating or
violating the Intellectual Property Rights of any third party, and Seller or any of the Selling
Subsidiaries is not and has not in the past two (2) years been a party to any action or proceeding
in which it was asserted that Seller or any of the Selling Subsidiaries, in its Patient Monitoring
Business, infringed, misappropriated or violated the Intellectual Property Rights of any third
party, in each case except as would not, individually or in the aggregate, have a Material Adverse
Effect. Except as set forth on Schedule 3.10(c), neither Seller nor any of the Selling
Subsidiaries has taken any action or failed to take any action that could result in the
abandonment, cancellation, forfeiture, relinquishment, invalidation, waiver or unenforceability of
any material Transferred IP Assets, except as would not have a Material Adverse Effect.

     (d) Seller has taken commercially reasonable steps to protect and maintain all of the material
Transferred IP Assets.

-25-

 

     (e) To the Knowledge of Seller, except as would not, individually or in the aggregate, have a
Material Adverse Effect, no third party is infringing on, misappropriating or otherwise violating
any Transferred IP Assets. In the last two (2) years, Seller has not sent any notice to or
asserted or threatened in writing any action or claim against any Person involving or relating to
any Transferred IP Assets.

     (f) To the Knowledge of Seller, no funding, facilities, or personnel of any Governmental
Entity or educational institution, were used, directly or indirectly, to develop or create, in
whole or in part, any of the Transferred IP Assets.

     (g) To the Knowledge of Seller, neither Seller, the Selling Subsidiaries nor their respective
Affiliates are bound by, and no Transferred IP Assets is subject to, any agreement or arrangement
containing any covenant or other provision that in any way limits or restricts the ability of
Seller or the Seller Subsidiaries to use, exploit, assert, or enforce any Transferred IP Assets in
the manner currently used, exploited, asserted or enforced by Seller and the Selling Subsidiaries,
except as would not reasonably be expected to have a Material Adverse Effect. Except as set forth
on Schedule 3.10(g), Seller has not transferred ownership of (whether a whole or partial
interest), or granted any exclusive right to use, any Transferred IP Assets to any Person.

     (h) For purposes of this Section 3.10, Knowledge of Seller shall in no event be construed to
require the search of any patent, prior art, trademark or copyright databases, or performance of
any search, clearance, analysis or other investigation of any patents, copyrights, trademarks or
other Intellectual Property rights.

     (i) The representations contained in this Section 3.10 shall be the exclusive
representations and warranties with respect to intellectual property matters.

Section 3.11 Compliance with Laws; Permits

     (a) Except where such non-compliance, default or violation would not have a Material Adverse
Effect, Seller and each of the Selling Subsidiaries, since June 30, 2004, has been and is in
compliance with and has not been and is not in default under or in violation of any Law applicable
to the Seller or any of the Selling Subsidiaries, including: (i) the Federal Food, Drug and
Cosmetic Act, as amended, (“FFDCA”) and the regulations promulgated thereunder; (ii) any applicable
Food and Drug Administration (“FDA”) investigational device exemption, premarket approval
or 510(k) premarket notification; (iii) the applicable provisions of FDA’s good manufacturing
practice requirements, as set forth at 21 C.F.R. Parts 820; and (iv) any applicable state or
foreign Laws or regulations governing the distribution medical devices.

     (b) Seller and all of the Selling Subsidiaries are in material compliance with all applicable
requirements of the FDA and any state or foreign Governmental Entity with authority over the
development, investigation, manufacture, labeling, storage, testing, distribution, and marketing of
medical devices under the FFDCA, and all applicable similar state and foreign Laws, and each of
their applicable implementing regulations, except for such instances of

-26-

 

noncompliance which individually or in the aggregate have not had and would have a Material
Adverse Effect.

     (c) Except as would not have a Material Adverse Effect, Seller and the Selling Subsidiaries
have not received, and to the Knowledge of Seller, no licensor or distribution partner of a Product
has received, any notice from the FDA or any other Governmental Entity that it has commenced, or
threatened to initiate, any action to withdraw approval, place sales, marketing, or production
restrictions on, or request the recall of any Product currently marketed by Seller or the Selling
Subsidiaries.

     (d) There has been and there is no pending, threatened or anticipated, FDA, other federal,
state, local, or foreign government agency proceeding or investigation relating to Seller’s or the
Selling Subsidiaries’ development, investigation, manufacture, labeling, storage, testing,
distribution, and marketing of any Product, except for such proceedings or investigations which
individually or in the aggregate have not had and would have a Material Adverse Effect. 

     (e) Except as set forth in Schedule 3.11(e), in the three (3) years preceding the date
of this Agreement, none of the Products tested, manufactured, packaged, labeled, marketed, or
distributed or sold by or on behalf of Seller or any of the Selling Subsidiaries are or have been
subject to a recall or field correction, whether voluntary or otherwise, or are or have been
subject to device removal or correction reporting requirements, and neither Seller nor any of the
Seller Subsidiaries has received notice, either completed or pending, of any proceeding seeking a
recall, removal, or corrective action of any Products, except for such recalls, device removal or
correction reporting requirements which individually or in the aggregate have not had and would
have a Material Adverse Effect.

     (f) Except as set forth on Schedule 3.11(f), neither Seller, any of the Seller
Subsidiaries, nor any employee or agent of Seller or any of the Seller Subsidiaries have made an
untrue statement of material fact or fraudulent statement to FDA or any other governmental or
regulatory authority with respect to any Product tested, manufactured, distributed, or sold by
Seller or any of the Seller Subsidiaries, or failed to disclose a material fact required to be
disclosed to any governmental or regulatory authority with respect to any Product, or has ever been
investigated by the FDA, National Institutes of Health (“NIH”), Office of the Inspector General for
the Department of Health and Human Services (“OIG”), Department of Justice or other comparable
governmental authority for data or healthcare program fraud with respect to respect to any Product.

     (g) Seller and the Selling Subsidiaries are in possession of all authorizations, licenses,
permits, exceptions, consents, approvals, franchises, licenses, variances, exemptions,
certificates, product listings, registrations, orders, approvals, clearances and other
authorizations of any Governmental Entity necessary for Seller and the Selling Subsidiaries to
carry on the Patient Monitoring Business as it is now being conducted (including those which are
required for the conduct of its testing, manufacturing, marketing, sales, and distribution
activities) (the “Seller Permits”), except where the failure to have any of the Seller
Permits would not have a Material Adverse Effect. Except as would not have Material Adverse Effect,
all Seller Permits are in full

-27-

 

force and effect. As of the date of this Agreement, none of the Seller Permits have been
withdrawn, revoked, suspended or cancelled nor is any such withdrawal, revocation, suspension or
cancellation pending or, to the Knowledge of Seller, threatened in writing, and Seller has been and
is in compliance in all material respects with the terms of the Seller Permits and any conditions
placed thereon

     (h) Except as set forth on Schedule 3.11(h) or as would not have a Material Adverse
Effect, no Governmental Entity has issued any notice, warning letter, regulatory letter, untitled
letter, or other written communication or correspondence to Seller or any of the Selling
Subsidiaries, alleging that the Seller or any of the Selling Subsidiaries is or was in violation of
any Law, order or Seller Permit applicable to the research, development, testing, manufacturing,
packaging, labeling, marketing, distribution, sales, and/or commercialization of any Product by
Seller or any of the Selling Subsidiaries, or alleging that Seller or any of the Selling
Subsidiaries was or is the subject of any pending or threatened administrative agency or government
entity investigation, proceeding, review, or inquiry, or that there are circumstances currently
existing which might reasonably be expected to lead to any loss of or refusal to renew any of the
Seller Permits held by Seller or any of the Selling Subsidiaries.

Section 3.12 Investigations; Litigation

     Except as described in Schedule 3.12 or, if adversely determined, would result in a
material change in, or limitation on, the conduct or operations of Seller or the Selling
Subsidiaries in respect of the Patient Monitoring Business, there are no (a) investigations or
proceedings pending (or, to the Knowledge of Seller, threatened) by any Governmental Entity with
respect to Seller or any of the Selling Subsidiaries and primarily relating to the Patient
Monitoring Business or affecting the Purchased Assets or (b) actions, suits or proceedings pending
against Seller or any of the Selling Subsidiaries and primarily relating to the Patient Monitoring
Business or affecting the Purchased Assets, and in each case, to Seller’s Knowledge, there is no
basis for such investigations, proceedings, actions, or suits. There are no orders, judgments or
decrees of, any Governmental Entity against Seller or any of the Selling Subsidiaries. Except as
set forth on Schedule 3.12, there is no material unsatisfied judgment, penalty or award
against Seller or any of the Selling Subsidiaries, and neither Seller nor any of the Selling
Subsidiaries is subject to any orders that have had or would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

Section 3.13 Regulatory Compliance

     (a) Since February 1, 2003, there have been no adverse negative past performance evaluations
or ratings by the U.S. Government or any other Governmental Entity, or any voluntary disclosures
under the Foreign Corrupt Practices Act of 1977 (the “Foreign Corrupt Practices Act”) or
any other comparable foreign Law, any enforcement actions or threats of enforcement actions, or
facts that, in each case, could result in any adverse or negative performance evaluations related
to the Foreign Corrupt Practices Act or any other comparable foreign Law. Neither the U.S.
Government nor any other person has notified Seller or any of the Selling Subsidiaries in writing
of any actual or alleged violation or breach of the Foreign Corrupt

-28-

 

Practices Act or any other comparable foreign Law. Since February 1, 2003, none of Seller and
the Selling Subsidiaries has undergone or is undergoing any audit, review, inspection,
investigation, survey or examination of records relating to Seller’s or any of the Selling
Subsidiaries’ compliance with the Foreign Corrupt Practices Act or any other comparable foreign
Law. Except as would not result in a material change in, or limitation on, the conduct or
operations of Seller or the Selling Subsidiaries in respect of the Patient Monitoring Business,
Seller and the Selling Subsidiaries are not now, nor since February 1, 2003 has any employee of the
Patient Monitoring Business, violated or are in violation of the Foreign Corrupt Practices Act, or
are or have been under any administrative, civil or criminal investigation or indictment and are
not party to any litigation involving alleged false statements, false claims or other improprieties
relating to Seller’s or any of the Selling Subsidiaries’ compliance with the Foreign Corrupt
Practices Act or any other comparable foreign Law;

     (b) Except as would not result in a material change in, or limitation on, the conduct or
operations of Seller or the Selling Subsidiaries in respect of the Patient Monitoring Business,
none of Seller, any of the Selling Subsidiaries or any of their employees is, or since February 1,
2003, has been, in violation of any Law applicable to its business, properties or operations and
relating to: (1) the use of corporate funds relating to political activity or for the purpose of
obtaining or retaining business; (2) payments to government officials or employees from corporate
funds; or (3) bribes, rebates, payoffs, influence payments or kickbacks (including 42 U.S.C. 1320
a-7b(b), as amended or any applicable state anti-kickback or other similar foreign, federal or
state Law); and

     (c) Except as would not result in a material change in, or limitation on, the conduct or
operations of Seller or the Selling Subsidiaries in respect of the Patient Monitoring Business,
none of Seller, any of the Selling Subsidiaries or any of their officers, directors or employees
have violated or are in violation of, or have been convicted of, charged with or are being
investigated for a Medicare, Medicaid or other state health payment program related offense, or
been subject to any order or consent decree of, or material criminal or civil fine or penalty
imposed by, any Governmental Entity with respect to any such program.

Section 3.14 Taxes

     Except as would not, individually or in the aggregate, have a Material Adverse Effect, (i)
Seller and each of the Selling Subsidiaries have timely filed or caused to be filed (taking into
account any extension of time within which to file) all Tax Returns required to be filed by any of
them in connection with the Patient Monitoring Business or the Purchased Assets (including, for the
avoidance of doubt, Tax Returns of Artema) on or before the Closing Date and all such Tax Returns
are true, correct and complete; (ii) all Taxes with respect to the Patient Monitoring Business or
the Purchased Assets (including, for the avoidance of doubt, Taxes of Artema) have been duly and
timely paid, other than (A) any unpaid Taxes of Seller or any of the Selling Subsidiaries for the
Patient Monitoring Business or the Purchased Assets in respect of any Pre-Closing Tax Period that
did not, as of the date of the most recent financial statements contained in the Seller SEC
Documents filed prior to the date hereof, exceed the reserve for Taxes

-29-

 

(excluding any reserve for deferred Taxes established to reflect timing differences between
book and Tax income) for the Patient Monitoring Business or the Purchased Assets set forth in the
most recent balance sheet contained therein and (B) any such Taxes as are being contested in good
faith and for which adequate reserves have been provided on the Seller’s financial statements in
accordance with GAAP; (iii) there are no audits, examinations, investigations or other proceedings
pending or threatened in writing in respect of Taxes or Tax assessments of Seller or any of the
Selling Subsidiaries for the Patient Monitoring Business or the Purchased Assets, each in respect
of any Pre-Closing Tax Period; (iv) there are no Liens for Taxes on any of the assets of the
Patient Monitoring Business other than Permitted Liens; (v) none of the Purchased Assets to be
transferred to Buyer by any of the Selling Subsidiaries are “United States real property interests”
within the meaning of Section 897 of the Code; and (vii) Artema is resident for the purposes of Tax
only in the jurisdiction in which it is incorporated and does not have a permanent establishment or
permanent representative or other taxable presence in any other jurisdiction; is in full compliance
with all terms and conditions of any Tax exemption, Tax holiday or other Tax reduction agreement or
order (each, a “Tax Incentive”), and the consummation of the transactions contemplated by this
Agreement will not have any adverse effect on the continued validity and effectiveness of any such
Tax Incentive.

Section 3.15 Labor Matters

     Except for such matters which would not have a Material Adverse Effect, neither Seller nor any
of the Selling Subsidiaries has received written notice during the past two (2) years of the intent
of any Governmental Entity responsible for the enforcement of labor, employment, occupational
health and safety or workplace safety and insurance/workers compensation Laws to conduct an
investigation of Seller or any of the Selling Subsidiaries relating to the Patient Monitoring
Business and, to the Knowledge of Seller, no such investigation is in progress. Except for such
matters that would not have a Material Adverse Effect, (a) there are no (and have not been during
the two (2) year period preceding the date hereof) strikes or lockouts with respect to any
employees of Seller engaged in the Patient Monitoring Business or any of the Selling Subsidiaries;
(b) there is no unfair labor practice, labor dispute (other than routine individual grievances) or
labor arbitration proceeding pending or, to the Knowledge of Seller, threatened against Seller or
any of the Selling Subsidiaries with respect to any employees engaged in the Patient Monitoring
Business; and (c) there is no slowdown or work stoppage in effect or, to the Knowledge of Seller,
threatened with respect to any employees engaged in the Patient Monitoring Business. Except as set
forth on Schedule 3.15, neither Seller nor any Subsidiaries of Seller is party to any
collective bargaining agreement or any other type of collective agreement with any type of local,
national or supernational union or other workers’ representatives with respect to any employees
engaged in the Patient Monitoring Business. To the Knowledge of Seller, no union or other workers’
representative is currently engaged in any organizational activities or requests or elections for
representation with respect to employees of Seller or any of its Subsidiaries engaged in the
Patient Monitoring Business.

-30-

 

Section 3.16 Employee Benefit Plans

     (a) Schedule 3.16(a) lists all material Seller Benefit Plans. “Seller Benefit
Plans” means all compensation or employee benefit plans, programs, policies, agreements or
other arrangements, whether or not “employee benefit plans” (within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), whether or not
subject to ERISA), providing cash- or equity-based incentives, health, medical, dental, disability,
accident or life insurance benefits or vacation, severance, retirement, pension or savings
benefits, that are sponsored, maintained or contributed to by Seller or any of its Subsidiaries for
the benefit of employees on the Agreed List of Employees or any other employees, directors or
consultants employed or formerly employed by, or providing services to, the Patient Monitoring
Business or its predecessors in the United States and all employment agreements or arrangements
providing compensation, vacation, severance or other benefits to any employee on the Agreed List of
Employees or any other employee or consultant employed or formerly employed by, or providing
services to, the Patient Monitoring Business or its predecessors in the United States. True and
complete copies of each Seller Benefit Plan document have been made available to the Buyer.

     (b) At no time since December 31, 2001, has Seller or any ERISA Affiliate, been required to
contribute, or incurred any withdrawal liability, within the meaning of Section 4201 of ERISA, to
any Multiemployer Plan nor does Seller, any Selling Subsidiary or any ERISA Affiliate have any
potential withdrawal liability arising from a transaction described in Section 4204 of ERISA, which
resulted, or could reasonably be anticipated to result, in a Material Adverse Effect. No Acquired
Assets are subject to liens under Section 430(k) the Code or Section 303(k) of ERISA.

     (c) Schedule 3.16(c) lists all material Seller Foreign Plans other than plans,
programs or contracts which Seller contributes to that are sponsored or maintained by a
Governmental Entity. All Seller Foreign Plans maintained, contributed to or sponsored by (or
required to be maintained, contributed to or sponsored by) Artema have been operated, in all
material respects, in accordance with their terms and applicable Law, and all material required
contributions have been made with respect thereto.

     (d) Except for such claims which would not have a Material Adverse Effect, no material action,
dispute, suit, claim, arbitration, or legal, administrative or other proceeding (other than claims
for benefits in the ordinary course) is pending or, to the Knowledge of Seller, threatened, with
respect to any Seller Benefit Plan (other than a “multiemployer plan” (within the meaning of
Section 4001(a)(3) of ERISA) (a “Multiemployer Plan”)) by any current or former employee of
the Patient Monitoring Business.

     (e) Except as would not have a Material Adverse Effect, none of Seller, any Selling Subsidiary
or any ERISA Affiliate has incurred or is subject to any liability (contingent or otherwise) under
Section 4069 of ERISA, whether as a result of the transactions contemplated by this Agreement or
otherwise. Except as would not have a Material Adverse Effect, Seller, the Selling Subsidiaries
and the ERISA Affiliates have complied in all respects with Section 4980B

-31-

 

of the Code and Part 6 of Title I of ERISA. Schedule 3.16(e) lists all benefit plans
maintained or required to be contributed to by Seller or any ERISA Affiliate that have at any time
since December 31, 2001 been subject to Title IV of ERISA.

     (f) The Savings Plan has been established and administered in compliance with its terms and in
compliance with ERISA and the Code to the extent applicable thereto, except for such non-compliance
which would not have a Material Adverse Effect. The Seller Savings Plan has received a favorable
determination letter from the United States Internal Revenue Service that has not been revoked and
to the Knowledge of Seller, no fact or event has occurred since the date of such determination
letter from the United States Internal Revenue Service that would affect adversely its qualified
status.

     (g) All bonuses payable to Transferred Employees (as defined in Section 7.1(a)) for service
during the 2007 fiscal year or earlier fiscal years shall have been paid by Seller to such
Transferred Employees prior to the Closing Date.

Section 3.17 Environmental Laws and Regulations

     (a) Since February 1, 2003, (i) Seller and each of the Selling Subsidiaries have conducted and
are currently conducting their respective businesses in material compliance with all applicable
Environmental Laws, and possess and are in material compliance with all required Environmental
Permits; (ii) to Seller’s Knowledge, there has been no release (as such term is defined in CERCLA)
of any Hazardous Substance at, on, under, or from any Real Property in any manner that would give
rise to any reporting, investigative, or remedial obligation of Seller or any Selling Subsidiaries
under applicable Environmental Laws; (iii) neither Seller nor any of the Selling Subsidiaries has
received in writing any notices, demand letters or requests for information which remain pending or
unresolved from any federal, state, local or foreign or provincial Governmental Entity asserting
that Seller or any of the Selling Subsidiaries is in violation of, or liable under, any
Environmental Law with respect to the disposal or release at or transportation to any other
property of Hazardous Substance generated by Seller or any Selling Subsidiaries; and (iv) neither
Seller nor the Selling Subsidiaries are subject to, or, to the Knowledge of Seller, have been
threatened with any suit, proceeding, settlement, court order, administrative order, judgment or
written claim arising under any Environmental Law which remains pending or unresolved.

     (b) Seller has provided to, or made available for review by, Buyer all non-routine, material
environmental reports, assessments, studies, investigations or audits in its possession or control
relating to the Transferred Real Property.

     (c) The representations and warranties in this Section 3.17 are the exclusive representations
and warranties in this Agreement with respect to environmental matters, including without
limitation, Hazardous Substances and Environmental Laws.

-32-

 

Section 3.18 Insurance

     As of the date hereof, Seller and each of the Selling Subsidiaries are insured in respect of
the Patient Monitoring Business against such losses and risks and in such amounts as are customary
in the industry in which the Patient Monitoring Business operates. Neither Seller nor any of the
Selling Subsidiaries is in breach or default of any such insurance policies, and no written notice
of cancellation or termination has been received with respect to any such policy. No event or
condition relating to the Patient Monitoring Business or the Purchased Assets, other than an event
or condition included in subparts (a) through (h) of the definition of “Material Adverse Effect” in
Section 1.1, has occurred that, in and of itself, is reasonably likely, after the date of
this Agreement, to result in a material upward adjustment in premiums under any insurance policies
maintained by Seller and the Selling Subsidiaries.

Section 3.19 Brokerage Fees

     Except for Lehman Brothers Inc., there is no Person that might be entitled to any brokerage
commission, finder’s fee or similar compensation in connection with the transactions contemplated
by this Agreement based on any arrangement or agreement made by or on behalf of Seller or an
Affiliate thereof.

Section 3.20 Relationships with Related Persons

     Except as disclosed in Schedule 3.20, no (i) Affiliates of Seller or any of the
Selling Subsidiaries (other than wholly-owned Subsidiaries of Seller or any Selling Subsidiary) or
(ii) persons with whom such transaction, arrangement, understanding or Contract would be required
to be disclosed under Item 404 of Regulation S-K of the Securities Exchange Act of 1934, as
amended, has any interest in any Purchased Asset, except in his, her or its capacity as a
stockholder of Seller.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer represents and warrants to Seller as of the date hereof as follows:

Section 4.1 Qualification; Organization

     (a) Buyer is a company validly existing and in good standing under the Laws of its
jurisdiction of organization. Buyer has all requisite corporate power and authority to own, lease
and operate its properties and assets and to carry on its business as presently conducted, except
where the failure to have such power or authority would not, individually or in the aggregate, have
a Buyer Material Adverse Effect (as defined below). Buyer has furnished to Seller a complete and
correct copy of its amended and restated memorandum and articles of association and bylaws as
currently in effect.

 - 33 - 

 

     (b) Buyer is qualified to do business and is in good standing as a foreign corporation in each
jurisdiction where the ownership, leasing or operation of its assets or properties or conduct of
its business requires such qualification, except where the failure to be so qualified or in good
standing would not, individually or in the aggregate, prevent or materially delay or materially
impede the ability of Buyer to consummate the transactions contemplated hereby (a “Buyer
Material Adverse Effect”). The organizational or governing documents of Buyer, as previously
provided to Seller, are in full force and effect. Buyer is not in violation of its organizational
or governing documents.

Section 4.2 Corporate Authority Relative to this Agreement; No Violation

     (a) Buyer has all requisite corporate power and authority to execute and deliver this
Agreement, to perform its obligations under this Agreement and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby have been duly and validly authorized by the
Board of Directors of Buyer and no other corporate proceedings on the part of Buyer are necessary
to authorize the consummation of the transactions contemplated hereby. This Agreement has been
duly and validly executed and delivered by Buyer and, assuming this Agreement constitutes the valid
and binding agreement of Seller, this Agreement constitutes the valid and binding agreement of
Buyer, enforceable against Buyer in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws
relating to or affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at Law) and any implied covenant of good faith and fair
dealing.

     (b) Other than the approvals set forth in Schedule 4.2(b) (collectively, the
“Buyer Approvals”), no authorization, consent or approval of, or filing with, any
Governmental Entity is necessary in connection with the execution, delivery and
performance of this Agreement by Buyer and for the consummation by Buyer of the transactions
contemplated by this Agreement.

     (c) None of the execution, delivery or performance of this Agreement by Buyer, the
consummation by Buyer of the transactions contemplated hereby or compliance by Buyer with any of
the provisions of this Agreement will (i) violate or conflict with or result in any breach of any
provision of the organizational documents of Buyer, or (ii) violate any order, writ, injunction,
decree, statute, rule or regulation applicable to Buyer, any of its Subsidiaries, or any of their
properties or assets, except (other than in the case of clause (i)) where such violations, breaches
or defaults would not, individually or in the aggregate, have a Buyer Material Adverse Effect.

Section 4.3 Investigations; Litigation

     There are no suits, claims, actions, proceedings, arbitrations, mediations or investigations
pending or, to the Knowledge of Buyer, threatened against Buyer or any of its Subsidiaries, that
challenges the transactions contemplated by this Agreement, other than any such suit, claim,
action, proceeding or investigation that would have, individually or in the aggregate, a Buyer

 - 34 - 

 

Material Adverse Effect. As of the date hereof, neither Buyer nor any of its Subsidiaries nor any
of their respective properties is or are subject to any order, writ, judgment, injunction, decree
or award that would have, individually or in the aggregate, a Buyer Material Adverse Effect.

Section 4.4 Sufficient Funding

     Buyer has sufficient funds on hand and will have sufficient funds on hand at Closing, to
consummate the transactions contemplated by, and to perform its obligations under, this Agreement.

Section 4.5 No Other Information

     Buyer acknowledges that Seller makes no representations or warranties as to any matter
whatsoever except as expressly set forth in Article III. The representations and warranties set
forth in Article III are made solely by Seller, and no Representative of Seller shall have any
responsibility or liability related thereto.

Section 4.6 Access to Information; Disclaimer

     Buyer acknowledges and agrees that it (a) has had an opportunity to discuss the Patient
Monitoring Business with the management of Seller; (b) has had reasonable access to the books and
records of Seller and the Selling Subsidiaries; (c) has been afforded the opportunity to ask
questions of and receive answers from officers of Seller; and (d) has conducted its own independent
investigation of Seller and the Selling Subsidiaries, the Patient Monitoring Business and the
transactions contemplated hereby, and has not relied on any representation, warranty or other
statement by any Person on behalf of Seller or any of the Selling Subsidiaries, other than
the representations and warranties of Seller expressly contained in Article III of this
Agreement and that all other representations and warranties are specifically disclaimed.

Section 4.7 No Approval Required

     No consent of the holders of any class or series of capital stock of Buyer is necessary to
approve this Agreement and the transactions contemplated hereby.

Section 4.8 Brokerage Fees

     Except for UBS Securities, LLC, there is no Person that might be entitled to any brokerage
commission, finder’s fee or similar compensation in connection with the transactions contemplated
by this Agreement based on any arrangement or agreement made by or on behalf of Buyer or any
Affiliate thereof.

 - 35 - 

 

ARTICLE V

CONDITIONS TO CLOSING

Section 5.1 Conditions Precedent to Buyer’s Obligations

     All of the obligations of Buyer hereunder are subject to fulfillment, prior to or at the
Closing, of the following conditions (compliance with which or the occurrence of which may be
waived in whole or in part by Buyer in writing):

     (a) The representations and warranties of Seller contained herein (i) that are not qualified
as to materiality or Material Adverse Effect shall be accurate, true and correct in all material
respects on and as of the Closing Date, except for such representations and warranties made as of a
specified date, which shall be accurate, true and correct in all material respects as of the date
specified and (ii) that are qualified as to materiality or Material Adverse Effect shall be
accurate, true and correct in all respects on and as of the Closing Date, except for such
representations and warranties made as of a specified date, which shall be accurate, true and
correct in all respects as of the date specified; and Buyer shall have received a certificate of an
officer of Seller dated the Closing Date, certifying that this condition has been satisfied.

     (b) Seller shall have performed and complied in all material respects with all the terms,
provisions and conditions of this Agreement to be complied with and performed by Seller at or
before the Closing, and Buyer shall have received a certificate of an officer of Seller dated the
Closing Date, certifying that this condition has been satisfied.

     (c) Subject, in the case of matters related to the HSR Act, to Section 6.6. hereto, no
statute, rule or regulation shall have been enacted or promulgated by any Governmental Entity, nor
shall any suit, action or proceeding have been instituted and remain pending, or have been
threatened and remain so by any Governmental Entity at what would otherwise be the Closing Date,
which prohibits or restricts or would prohibit or restrict (if successful) the consummation
of the transactions contemplated hereby or which would not permit the Patient Monitoring
Business as presently conducted to continue materially unimpaired following the Closing Date, and
there shall be no order or injunction of a court of competent jurisdiction in effect preventing the
consummation of the transactions contemplated hereby. Notwithstanding the foregoing, however, any
matters related to the HSR Act shall be governed by Section 6.6 hereto.

     (d) Seller shall have received all of the Seller Approvals, including, for the avoidance of
doubt:

     (i) All applicable waiting periods (and any extensions thereof) under the HSR
Act shall have expired or otherwise been terminated;

     (ii) Either (A) the CFIUS shall have provided notice to the effect that review
or investigation of the transaction contemplated hereby has been concluded, and that
a determination has been made that there are no issues of

 - 36 - 

 

national security of the
United States sufficient to warrant further investigation under the DPA, or (B) the
President of the United States shall not have taken action to block or prevent the
consummation of the transaction contemplated hereby under the DPA and the applicable
period of time for the President to take such action shall have expired; and

     (iii) Seller shall have fully complied with ISRA to the extent required prior
to Closing and delivered to Buyer a “No Further Action” letter, “Negative
Declaration,” “De Minimis Quantity Exemption” or “Remediation Agreement,” as those
terms are defined under ISRA from the NJDEP with respect to the Transferred Real
Property in New Jersey.

     (e) To the extent not covered by (d) above, all other applicable waiting periods (and any
extensions thereof) under any other applicable Regulatory Laws will have expired or otherwise been
terminated, and the parties hereto will have received all other authorizations, consents and
approvals of all Governmental Entities (including under any applicable Regulatory Laws) in
connection with the execution, delivery and performance of this Agreement and the transactions
contemplated hereby.

     (f) (i) Seller shall have obtained the Consents, in form and substance reasonably satisfactory
to Buyer, listed on Schedule 5.1(f), and (ii) such other Consents, in form and substance
reasonably satisfactory to Buyer, the failure of which to obtain would, individually or in the
aggregate, have a Material Adverse Effect.

     (g) There shall have been no Material Adverse Change.

     (h) Seller shall have provided Buyer with a properly executed statement in form reasonably
acceptable to Buyer for purposes of satisfying Buyer’s obligations under Treasury Regulation
§1.1445-2(b)(2). To the extent any of the Selling Subsidiaries transfers a “United States real
property interest” (within the meaning of Section 897(c)(1) of the Code) to Buyer
pursuant to this Agreement, such Selling Subsidiary shall have provided Buyer with a properly
executed statement in form reasonably acceptable to Buyer for purposes of satisfying Buyer’s
obligations under Treasury Regulation §1.1445-2 (the statement in this and the preceding sentence,
each, a “FIRPTA Certificate”). If Seller or any of such Selling Subsidiaries fails or
refuses to furnish an applicable FIRPTA Certificate, Buyer shall be entitled to withhold from the
portion of consideration otherwise payable pursuant to this Agreement at Closing allocable solely
to the portion of the Purchased Assets transferred to Buyer directly by Seller or such Selling
Subsidiary, as applicable (in each case, as determined for U.S. federal income tax purposes), the
amount required to be so withheld from such portion of the consideration pursuant to Section
1445(a) of the Code.

     (i) Seller and the Selling Subsidiaries shall have duly executed and delivered counterparts of
the Transaction Documents.

 - 37 - 

 

Section 5.2 Conditions Precedent to Seller’s Obligations

     All of the obligations of Seller hereunder are subject to the fulfillment, prior to or at the
Closing, of the following conditions (compliance with which or the occurrence of which may be
waived in whole or in part by Seller in writing):

     (a) The representations and warranties of Buyer contained herein (i) that are not qualified as
to materiality or Material Adverse Effect shall be accurate, true and correct in all material
respects on and as of the Closing Date, except for such representations and warranties made as of a
specified date, which shall be accurate, true and correct in all material respects as of the date
specified and (ii) that are qualified as to materiality or Material Adverse Effect shall be
accurate, true and correct in all respects on and as of the Closing Date, except for such
representations and warranties made as of a specified date, which shall be accurate, true and
correct in all respects as of the date specified; and Seller shall have received a certificate of
an officer of Buyer dated the Closing Date, certifying that this condition has been satisfied.

     (b) Buyer shall have performed and complied in all material respects with all the terms,
provisions and conditions of this Agreement to be complied with and performed by Buyer at or before
the Closing; and Seller shall have received a certificate of an officer of Buyer dated the Closing
Date, certifying that this condition has been satisfied.

     (c) No statute, rule or regulation shall have been enacted or promulgated by any Governmental
Entity, nor shall any suit, action or proceeding have been instituted and remain pending, or have
been threatened and remain so by any Governmental Entity at what would otherwise be the Closing
Date, which prohibits or restricts or would prohibit or restrict (if successful) the consummation
of the transactions contemplated hereby, and there shall be no order or injunction of a court of
competent jurisdiction in effect preventing the consummation of the transactions contemplated
hereby.

     (d) Buyer shall have received all of the Buyer Approvals, including, for the avoidance of
doubt:

     (i) All applicable waiting periods (and any extensions thereof) under the HSR
Act shall have expired or otherwise been terminated; and

     (ii) Either (A) the CFIUS shall have provided notice to the effect that review
or investigation of the transaction contemplated hereby has been concluded, and that
a determination has been made that there are no issues of national security of the
United States sufficient to warrant further investigation under the DPA, or (B) the
President of the United States shall not have taken action to block or prevent the
consummation of the transaction contemplated hereby under the DPA and the applicable
period of time for the President to take such action shall have expired.

 - 38 - 

 

     (e) To the extent not covered by (d) above, all other applicable waiting periods (and any
extensions thereof) under any other applicable Regulatory Laws will have expired or otherwise been
terminated, and the parties hereto will have received all other authorizations, consents and
approvals of all Governmental Entities (including under any applicable Regulatory Laws) in
connection with the execution, delivery and performance of this Agreement and the transactions
contemplated hereby.

     (f) Buyer shall have duly executed and delivered counterparts of the Transaction Documents.

ARTICLE VI

CERTAIN COVENANTS

Section 6.1 Conduct of Business

     (a) From and after the date hereof and prior to the Closing Date or the date, if any, on which
this Agreement is earlier terminated pursuant to Article VIII (the “Termination Date”), and
except (i) as may be otherwise required by applicable Law; (ii) with the prior written consent of
Buyer; (iii) as expressly permitted by this Agreement; or (iv) as disclosed in Schedule
6.1(a), Seller shall, and shall cause each of the Selling Subsidiaries to, (A) conduct the
Patient Monitoring Business in all material respects in the ordinary course consistent with past
practice; (B) use commercially reasonable efforts to maintain and preserve intact its present
business organization, rights and franchises, goodwill and advantageous business relationships for
the Patient Monitoring Business (including relationships with key customers and suppliers) and to
retain the services of its key officers and key employees of the Patient Monitoring Business and
(C) take no action that is intended to or that would reasonably be expected to materially adversely
affect or materially delay the ability of any of the parties hereto from obtaining any necessary
approvals of any regulatory agency or other Governmental Entity required for the transactions
contemplated hereby, performing its covenants and agreements under this Agreement or consummating
the transactions contemplated hereby or otherwise materially delay or prohibit consummation of the
transactions contemplated hereby.

     (b) Without limiting Section 6.1(a), Seller agrees with Buyer that from the date of
this Agreement until the earlier of (x) the Termination Date and (y) the Closing Date, except as
set forth in Schedule 6.1(b) or as otherwise expressly permitted by this Agreement, Seller
shall not, and shall not permit any of the Selling Subsidiaries to, without the prior written
consent of Buyer:

     (i) make any new capital expenditures for the Patient Monitoring Business not
contemplated by the capital expenditure budget for the Patient Monitoring Business
having an aggregate value in excess of $1 million for any consecutive 12-month
period, except as set forth in Schedule 6.1(b);

 - 39 - 

 

     (ii) allow the levels of raw materials, supplies or other materials included in
the Inventory to vary materially from the levels customarily maintained;

     (iii) incur, assume, guarantee, or become obligated with respect to any debt,
excluding intercompany debt in an amount not to exceed $5 million, other than
pursuant to Seller’s existing credit facilities or under short-term debt or
overdraft facilities, in each case as in effect as of the date hereof;

     (iv) except in the ordinary course of business but provided that Seller first
consults with Buyer, enter into, renew, extend, materially amend or terminate any
Material Contract or Contract which if entered into prior to the date hereof would
be a Material Contract;

     (v) except to the extent required by Law (including Section 409A of the Code)
or by Contracts or by Seller Benefit Plans or by Seller Foreign Plans in existence
as of the date hereof or as disclosed in Schedule 6.1(b), (A) increase the
compensation or benefits of any of the employees of the Patient Monitoring Business
or on the Agreed List of Employees except in the ordinary course of business;
(B) pay any pension, severance or retirement benefits to any employees of the
Patient Monitoring Business or on the Agreed List of Employees not required by any
existing plan or agreement; or (C) enter into any material compensation or benefit
plan, program, policy, arrangement or agreement with any employees of the Patient
Monitoring Business or on the Agreed List of Employees;

     (vi) waive, release, assign, settle or compromise any material claim, action or
proceeding in respect of the Patient Monitoring Business or the Purchased Assets,
other than in the ordinary course of business but provided that Seller first
consults with Buyer prior to any such waiver, release, assignment, settlement or
compromise;

     (vii) take any action that is intended or would reasonably be expected to
result in any of the conditions to the Closing set forth in Article V not being
satisfied or materially delaying the satisfaction of such conditions;

     (viii) implement or adopt any material change in its Tax or financial
accounting principles, practices or methods for the Patient Monitoring Business
(including with respect to Artema), other than as required by GAAP, applicable Law
or regulatory guidelines;

     (ix) with respect to Artema, (A) make or change any Tax election, (B) adopt or
change any method of Tax accounting, (C) file any amended Tax Return or (C)
surrender any right to claim a Tax refund, or offset or other reduction in Tax
liability;

 - 40 - 

 

     (x) make any acquisition (by merger, consolidation, acquisition of stock or
assets or otherwise) of any Person, or make any loan, advance, capital contribution
to, or investment in, any other Person and that relates to, or following such
transaction, would constitute part of, the Patient Monitoring Business, except
purchases of inventory, components or, property, plant or equipment (including
engineering development equipment) in the ordinary course of business; provided,
that, the actions listed on Schedule 6.1(b) shall not be deemed to be prohibited by
this Section 6.1(b);

     (xi) dispose of, or create any Lien on any Purchased Assets (other than the
sale of Inventory in the ordinary course of business);

     (xii) fail to pay any premiums due and payable for material insurance policies
and/or fail to use commercially reasonable efforts to keep material insurance
policies in full force and effect; and

     (xiii) agree to take, make any commitment to take, or adopt any resolutions of
its Board of Directors in support of, any of the actions prohibited by this Section
6.1(b).

     (c) From and after the date hereof and prior to the Closing Date or the Termination Date, if
any, and except (i) as may be otherwise required by applicable Law or (ii) as expressly
contemplated or permitted by this Agreement, Buyer shall take no action that is intended to or that
would reasonably be expected to materially adversely affect or materially delay the ability of any
of the parties hereto from obtaining any necessary approvals of any regulatory agency or other
Governmental Entity required for the transactions contemplated hereby, performing its covenants and
agreements under this Agreement or consummating the transactions contemplated hereby or otherwise
materially delay or prohibit consummation of the transactions contemplated hereby.

Section 6.2 Investigation

     (a) From the date hereof until the Closing Date and subject to the requirements and
prohibitions of applicable Laws, Seller shall (i) provide to Buyer, its counsel, financial
advisors, auditors and other authorized representatives prompt reasonable access during normal
business hours to the offices, properties (including for the purpose of conducting a Phase I site
assessment), books and records of Seller and the Selling Subsidiaries for the Patient Monitoring
Business; (ii) furnish to Buyer, its counsel, financial advisors, auditors and other authorized
representatives such financial and operating data and other information regarding the Patient
Monitoring Business as such persons may reasonably request and (iii) instruct the employees,
counsel, financial advisors, auditors and other authorized representatives (other than directors
who are not employees) of Seller and the Selling Subsidiaries to cooperate reasonably during normal
business hours with Buyer in its investigation of the Patient Monitoring Business, except that
nothing herein shall require Seller or any of the Selling Subsidiaries to disclose any information
that would reasonably be expected to involve any sampling for Hazardous

 - 41 - 

 

Substances or cause a risk
of a loss of privilege to Seller or any of the Selling Subsidiaries and, in all cases, will be at
the expense of Parent. Any investigation pursuant to this Section 6.2(a) shall be conducted in
such manner as not to interfere unreasonably with the conduct of the Patient Monitoring Business.
No information or knowledge obtained by Buyer in any investigation pursuant to this Section 6.2(a)
shall affect or be deemed to modify any representation or warranty made by Seller in Article III.

     (b) Buyer hereby agrees that all information provided to it or its counsel, financial
advisors, auditors and other authorized representatives in connection with this Agreement and the
consummation of the transactions contemplated hereby shall be treated in accordance with, the
Confidentiality Agreement as if it had been provided prior to the date of this Agreement.

Section 6.3 Control of Operations

     Without in any way limiting any party’s rights or obligations under this Agreement, the
parties understand and agree that (a) nothing contained in this Agreement shall give Buyer,
directly or indirectly, the right to control or direct the Patient Monitoring Business prior to the
Closing and (b) prior to the Closing, Seller and the Selling Subsidiaries shall exercise,
consistent with the terms and conditions of this Agreement, complete control and supervision over
the operation of the Patient Monitoring Business.

Section 6.4 Notification of Certain Matters

     The parties hereto shall give prompt notice to each other of (a) any notice or other
communication received by such party from any Governmental Entity in connection with the
transactions contemplated hereby or from any person alleging that the consent of such person is or
may be required in connection with the transactions contemplated hereby; (b) any actions, suits,
claims, investigations or proceedings commenced or, to such party’s Knowledge, threatened against,
relating to or involving or otherwise affecting such party or any of its Subsidiaries which relate
to the transactions contemplated hereby; and (c) the discovery of any
fact or circumstance that, or the occurrence or non-occurrence of any event the occurrence or
non-occurrence of which, would cause or result in any of the conditions to the Closing set forth in
Article V not being satisfied or satisfaction of those conditions being materially delayed;
provided, however, that the delivery of any notice pursuant to this Section 6.4
shall not (x) cure any breach of, or non-compliance with, any other provision of this Agreement or
(y) limit the remedies available to the party receiving such notice.

Section 6.5 Public Announcements

     Seller and Buyer will consult with and provide each other the opportunity to review and
comment upon any press release or other public statement or comment prior to the issuance of such
press release or other public statement or comment relating to this Agreement or the transactions
contemplated hereby and shall not issue any such press release or other public statement or comment
prior to such consultation except as may be required by applicable Law or by obligations pursuant
to any listing agreement with any national securities exchange.

 - 42 - 

 

Section 6.6 Third Party Consents; Regulatory Approvals; Access

     (a) Subject to the provisions of this Agreement, each of the parties hereto shall use its
reasonable best efforts to take promptly, or to cause to be taken, all actions, and to do promptly,
or to cause to be done, and to assist and to cooperate with the other parties in doing, all things
necessary, proper or advisable under applicable Laws to consummate and make effective the
transactions contemplated hereby, including (i) the obtaining of all necessary actions or
nonactions, waivers, consents, clearances, approvals and expirations or terminations of waiting
periods from Governmental Entities and the making of all necessary registrations and filings and
the taking of all steps as may be necessary to obtain an approval, clearance, or waiver from, or to
avoid an action or proceeding by, any Governmental Entity, including the Seller Approvals and the
Buyer Approvals; (ii) the obtaining of all necessary consents, approvals or waivers from third
parties; (iii) the defending of any lawsuits or other legal proceedings, whether judicial or
administrative, challenging this Agreement or the consummation of the transactions contemplated
hereby; and (iv) the execution and delivery of any additional instruments reasonably necessary to
consummate the transactions contemplated hereby; provided, however, that in no event shall Seller
be required to pay prior to the Closing any material fee, penalties or other consideration to any
third party to obtain any consent or approval required for the consummation of the transactions
contemplated hereby under any Contract.

     (b) Subject to the provisions of this Agreement, Seller and Buyer shall (i) promptly, but in
no event later than ten (10) Business Days after the date hereof, and in any event, prior to the
expiration of any applicable legal deadline, file any and all Notification and Report Forms
required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR
Act”) and make any other filings under any other applicable Regulatory Law, with respect to the
transactions contemplated hereby, and use reasonable best efforts to cause the expiration or
termination of any applicable waiting periods under the HSR Act and any other applicable Regulatory
Law; (ii) use reasonable best efforts to cooperate with each other in (A) determining whether any
filings are required to be made with, or consents, permits,
authorizations, waivers, clearances, approvals, and expirations or terminations of waiting
periods are required to be obtained from, any third parties or other Governmental Entities in
connection with the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby and (B) timely making all such filings and timely obtaining all
such consents, permits, authorizations or approvals; (iii) supply to any Governmental Entity as
promptly as practicable any additional information or documents that may be requested pursuant to
any Regulatory Law or by such Governmental Entity; and (iv) use reasonable best efforts to take, or
cause to be taken, all other actions and do, or cause to be done, all other things necessary,
proper or advisable to consummate and make effective the transactions contemplated hereby within
one hundred eighty (180) days of the date hereof. Without limiting the foregoing, such reasonable
best efforts shall include, but are not limited to, taking all such further action as may be
necessary to resolve such objections, if any, including the divestiture of the assets of Buyer,
without limitation, as the United States Federal Trade Commission, the Antitrust Division of the
United States Department of Justice, state antitrust enforcement authorities or competition
authorities of any other nation or

 - 43 - 

 

other jurisdiction or any other person may assert under
Regulatory Law with respect to the transactions contemplated hereby.

     (c) Notwithstanding the timeframe in Section 6.6(b), Seller and Buyer shall cooperate to
enable the parties to jointly prepare and file, as soon as practicable after execution of this
Agreement by both parties, and in any event within twenty (20) Business Days following the date
hereof, with CFIUS, a notice of the transactions contemplated by this Agreement and the
transactions contemplated hereby, and shall furnish any supplemental information requested by CFIUS
in connection therewith pursuant to the DPA, and the applicable regulations thereto.

     (d) Subject to applicable legal limitations and the instructions of any Governmental Entity,
Seller and Buyer shall keep each other apprised of the status of matters relating to the completion
of the transactions contemplated hereby, including promptly furnishing the other with copies of
notices or other communications received by Seller or Buyer, as the case may be, or any of their
respective Affiliates, from any third party and/or any Governmental Entity with respect to such
transactions. Seller and Buyer shall permit counsel for the other party reasonable opportunity to
review in advance, and consider in good faith the views of the other party in connection with, any
proposed written communication to any Governmental Entity. Each of Seller and Buyer agrees not to
participate in any substantive meeting or discussion, either in person or by telephone, with any
Governmental Entity in connection with the transactions contemplated hereby unless it consults with
the other party in advance and, to the extent not prohibited by such Governmental Entity, gives the
other party and its counsel the opportunity to attend and participate.

     (e) Subject to and in furtherance and not in limitation of the covenants of the parties
contained in this Section 6.6, if any administrative or judicial action or proceeding, including
any proceeding by a private party, is instituted (or threatened to be instituted) challenging the
transactions contemplated by this Agreement as violative of any Regulatory Law, each of Seller and
Buyer shall cooperate in all respects with each other and shall use their respective reasonable
best efforts to contest and resist any such action or proceeding and to have vacated, lifted,
reversed or overturned any decree, judgment, injunction or other order, whether temporary,
preliminary or permanent, that is in effect and that prohibits, prevents or restricts consummation
of the transactions contemplated hereby.

Section 6.7 Industrial Site Recovery Act

     Seller shall comply in all respects at its sole expense with the New Jersey Industrial Site
Recovery Act (“ISRA”) with respect to all real properties owned, leased or operated in New
Jersey by Seller and/or any of its Selling Subsidiaries in connection with the transactions
contemplated by this Agreement prior to the Closing Date or the Termination Date, to the extent
applicable, including without limitation, preparing, filing and executing all required notices,
forms and agreements with the New Jersey Department of Environmental Protection (“Seller’s ISRA
Obligations”) and shall comply in all respects at its sole expense with any Environmental Laws
applicable to any release of Hazardous Substances identified in Buyer’s Phase I

 - 44 - 

 

Environmental Site
Assessment of the Transferred Real Property located in Mahwah, New Jersey (“Seller’s Additional
Environmental Obligations”); provided, however:

     (a) Seller’s ISRA Obligations and Seller’s Additional Environmental Obligations shall be
limited to meeting the Appropriate Remediation Standard. To the extent acceptable to Governmental
Entities, the parties agree to utilize institutional controls and engineering controls (including,
without limitation, capping, signs, fences and deed restrictions on the use of real property or
groundwater) to meet the Appropriate Remediation Standard and to cooperate in obtaining all
necessary approvals of the use of such controls.

     (b) Seller’s ISRA Obligations and Seller’s Additional Environmental Obligations shall not
include the investigation or remediation of any release of Hazardous Substances occurring on or
after the Closing Date or to the extent such investigation or remediation results or arises from
Buyer’s exacerbation of any release of Hazardous Substances which occurred prior to the Closing
Date.

     (c) After the Closing Date, Buyer shall provide Seller, and Seller’s consultants, contractors,
agents and representatives with reasonable access to the Transferred Real Property in Mahwah, New
Jersey, to allow Seller to complete Seller’s ISRA Obligations and Seller’s Additional Environmental
Obligations at reasonable times and upon reasonable advance notice.

     (d) After the Closing Date, Seller shall take reasonable precaution to minimize any
interference with or disruption of Buyer’s operations at the Transferred Real Property in Mahwah,
New Jersey caused by Seller’s ISRA Obligations and Seller’s Additional Environmental Obligations.

     (e) Seller shall keep Buyer reasonably informed of the progress of Seller’s ISRA Obligations
and Seller’s Additional Environmental Obligations, including providing Buyer with copies of
material correspondence and reports submitted to any Governmental Entity and any correspondence
received from any Governmental Entity.

ARTICLE VII

POST-CLOSING COVENANTS

Section 7.1 Employee Matters

     (a) Effective as of the Closing, the employees listed on the Agreed List of Employees shall
become employees of Buyer on terms of employment in accordance with Section 7.1(b) below. All such
employees who become employed by Buyer or one of its Subsidiaries effective as of the Closing or
thereafter are hereinafter referred to as the “Transferred Employees.” Employment with
Buyer of Transferred Employees shall commence immediately on the Closing Date, except that
employment of individuals on leave of absence or short-term disability leave, maternity leave,
salary continuation and extension type of leave, military leave or workers compensation (“Leave
Employees”), except as otherwise provided by Law, shall become

 - 45 - 

 

effective as of the date they
first present themselves for active work with the Buyer; provided, however, that Buyer, except to
the extent otherwise required by Law, shall have no obligation to hire Leave Employees unless such
individuals first present themselves for active work with Buyer within six (6) months following the
Closing Date. For purposes hereof, Leave Employees who accept an offer of employment from Buyer
shall be deemed to be Transferred Employees as of the date they accept employment with Buyer.

     (b) For the period ending on December 31st of the calendar year immediately following the
calendar year that includes the Closing Date (the “Continuation Period”), Buyer shall
provide, or shall cause to be provided, to each Transferred Employee, compensation and benefits
that are substantially comparable, in the aggregate, to the compensation and benefits provided to
Transferred Employees immediately before the Closing (excluding any retiree welfare benefits,
compensation or benefits provided pursuant to equity-based awards or any defined benefit plans and
any payments or benefits that would become payable upon a change of control of Seller).
Notwithstanding any other provision of this Agreement to the contrary, (A) Buyer shall or shall
cause its Subsidiaries to provide the Transferred Employees whose employment with Buyer terminates
during the Continuation Period with severance benefits that are at least equal to levels of base
salary provided as severance under Seller’s broad-based severance policy as such policy is in
effect immediately prior to the Closing (to the extent that the benefits under such policy as of
the Closing Date are not more generous than the benefits provided thereunder as of the date of this
Agreement), as set forth on Schedule 7.1(b) and (B) during such Continuation Period,
severance benefits offered by Buyer to the Transferred Employees shall be determined without taking
into account any reduction after the Closing in base salary paid to the Transferred Employees. The
Buyer Savings Plan described in Section 7.1(e) shall be a savings-type defined contribution plan
intended to be tax-qualified under Section 401(a) of the Code and shall accept rollover
contributions and provide a loan feature.

     (c) For all purposes (including purposes of vesting, eligibility to participate, benefit
accrual and level of benefits) under the employee benefit plans of Buyer and its Subsidiaries
providing benefits to any Transferred Employees established during the Continuation Period (the
“New Plans”), each Transferred Employee shall be credited with his or her years of service
with the Seller before the Closing, provided that the foregoing shall not apply with
respect to benefit accrual under any defined benefit pension plan or to the extent that its
application would result in a duplication of benefits with respect to the same period of service.
All such periods of employment have been provided to Buyer, specified by employee, prior to the
Closing Date. In addition, and without limiting the generality of the foregoing, (A) each
Transferred Employee shall be immediately eligible to participate, without any waiting time, in any
and all New Plans to the extent coverage under such New Plan is analogous to a Seller Benefit Plan
or Seller Foreign Plan in which such Transferred Employee participated immediately before the
consummation of the transactions contemplated hereby and (B) for purposes of each New Plan
providing medical, dental, pharmaceutical and/or vision benefits to any Transferred Employee, Buyer
shall cause all pre-existing condition exclusions and actively-at-work requirements of such New
Plan to be waived for such Transferred Employee and his or her covered dependents, unless such
conditions would not have been waived under the analogous plan of Seller or the

 - 46 - 

 

Selling
Subsidiaries in which such Transferred Employee participated immediately prior to the Closing and
Buyer shall cause any eligible expenses incurred by such Transferred Employee and his or her
covered dependents under the Seller Benefit Plan or Seller Foreign Plan to be taken into account
under the corresponding New Plan for purposes of satisfying all deductible, coinsurance and maximum
out-of-pocket requirements applicable to such Transferred Employee and his or her covered
dependents for the applicable plan year as if such amounts had been paid in accordance with such
New Plan.

     (d) Buyer and Seller agree to use the “alternate procedure” specified in Revenue Procedure
2004-53 for reporting the wages of the Transferred Employees and the payment of FICA taxes with
respect to the Transferred Employees. As soon as administratively feasible following the Closing
Date, Seller shall provide Buyer the information required for reporting wages on Form W-2 for each
Transferred Employee for the year in which the Closing Date occurs.

     (e) As soon as reasonably practical following the Closing Date, Buyer shall establish a
defined contribution plan (or cover Transferred Employees under an existing defined contribution
plan sponsored by Buyer) (the “Buyer Savings Plan”) for the benefit of Transferred
Employees who, as of the Closing Date, are participants in the Amended and Restated Datascope Corp.
401(k) Savings and Supplemental Retirement Plan of Seller (the “Savings Plan”). Seller
shall fully vest all Transferred Employees in their account balances under the Savings Plan and all
other retirement plans of Seller or the Selling Subsidiaries (as set forth on Schedule
7.1(e)) intended to qualify under Section 401(a) of the Code as of the Closing Date. As soon
as practical following the Closing Date (the “Transfer Date”), in accordance with Code
Section 414(1), Seller shall cause the trustee of the Savings Plan to transfer directly to the
Buyer Savings Plan to transfer the full account balances of each of the Transferred Employees who
is a participant
under the Savings Plan valued as of the valuation date under the Savings Plan coincident with
the Transfer Date or the Business Day immediately preceding the Transfer Date. The value of the
account balance of each Transferred Employee will be transferred in cash and marketable securities
(or such other form as may be agreed by Buyer and Seller) to the Buyer’s Savings Plan, except that
the value of any outstanding participant loans, which any such Transferred Employee has as of the
Transfer Date will be transferred in kind. Notwithstanding that the Closing will occur prior to
the Transfer Date, the Savings Plan will not default any outstanding loan of any Transferred
Employee, whose account balance under the Savings Plan will be transferred to the Buyer Savings
Plan pursuant to this Section 7.1(e). In no event, however, shall such transfer take place until
the furnishing to Buyer by Seller of a favorable determination letter from the Internal Revenue
Service with respect to the qualification of the Savings Plan under Section 401(a) of the Code on
which Seller is entitled to rely as of the Transfer Date.

     (f) Seller and Buyer shall reasonably cooperate, to the extent permitted by Law, with Buyer’s
attempts to obtain information relating to the Transferred Employees employment with the Patient
Monitoring Business, excluding making available to Buyer such employees’ personnel files and
performance evaluations (all of which files and evaluations shall be

 - 47 - 

 

transferred as of the
Closing). To the extent permitted by Law, Seller and Buyer shall provide each other with access to
information necessary in order to carry out the provisions of this Section 7.1, including, without
limitation, making available all information regarding base wages, compensation and bonus and
benefit entitlements of the individuals on the Agreed List of Employees during their employment
with Seller as of the date of this Agreement.

     (g) Seller shall retain liability for all earned but untaken vacation and/or paid time off
credited to each Transferred Employee by Seller or the Selling Subsidiaries as of the Closing Date.

     (h) Nothing in this Section 7.1 or any other provision of this Agreement (i) shall be
construed to modify, amend or, except as is otherwise provided in Section 7.1(b) with respect to
Buyer’s 401(k) plan, establish any benefit plan, program, or arrangement or in any way limit, and
Seller and Selling Subsidiaries shall take no action after the date hereof that would limit, the
ability of the parties hereto or any other Person to modify, amend, or terminate any of the Seller
Benefit Plans, Seller Foreign Plans or New Plans as may be allowed under the terms of such plans or
applicable Law or (ii) confers or is intended to confer upon any Transferred Employee (or any
beneficiary or dependent thereof) any rights, including any right to employment or continued
employment for any period of time by reason of this Agreement, or any right to a particular term or
condition of employment, compensation or benefits.

Section 7.2 Books and Records; Access

     (a) Seller agrees to deliver, or cause to be delivered, to Buyer as soon as practicable after
the Closing, copies of all material books, records and other documents of Seller or its Affiliates
to the extent related to the Patient Monitoring Business and the Purchased Assets as Buyer may
reasonably request; provided that any portions thereof that do not relate to the Patient
Monitoring Business or the Purchased Assets may be redacted from the copies delivered to
Buyer. From and after the Closing, Seller will permit Buyer and its duly authorized
representatives access, during normal business hours and upon reasonable notice, to all Contracts,
books, records and other data of Seller or its Affiliates to the extent relating to the Purchased
Assets and Assumed Liabilities conveyed and assumed at the Closing (to the extent that such
Contracts, books, records and data were not previously delivered to Buyer); provided that
any portions thereof that do not relate to the Patient Monitoring Business or the Purchased Assets
may be redacted from the copies to which such access is permitted. In addition, Seller agrees
that, from and after the Closing, Buyer or its authorized representatives may, at Buyer’s cost and
expense, make copies of Seller’s or its Affiliates’ books and records (or redacted portions
thereof) to the extent related to the Patient Monitoring Business, including the pricing
information of the Products, to the extent that such books and records were not delivered to Buyer.

     (b) From and after the Closing Date and for a period of seven (7) years, in connection with
the preparation of Tax Returns (including Tax Returns relating to the calendar year in which the
Closing occurs) or in connection with any Tax, regulatory or accounting investigation, inquiry or
review or any pending or threatened third party action or injury that is related to the

 - 48 - 

 

ownership
of the Purchased Assets or the operation of the Patient Monitoring Business prior to the Closing,
upon reasonable prior notice, and except as determined in good faith to be appropriate to ensure
compliance with any applicable Laws and subject to any applicable privileges (including the
attorney-client privilege) and contractual confidentiality obligations, the Buyer shall, and shall
cause Artema and its representatives to, (i) afford Seller and its Affiliates reasonable access,
during normal business hours, to the offices, properties, books and records of the Buyer and Artema
in respect of Artema, the Patient Monitoring Business, the Purchased Assets and the Assumed
Liabilities, (ii) furnish to Seller and its Affiliates such additional financial and other
information regarding Artema, the Patient Monitoring Business, the Purchased Assets and the Assumed
Liabilities as Seller may from time to time reasonably request and (iii) make available to Seller
and its Affiliates the employees of Buyer and Artema in respect of Artema, the Patient Monitoring
Business, the Purchased Assets and the Assumed Liabilities whose assistance, expertise, testimony,
notes and recollections or presence is necessary to assist Seller in connection with Seller’s
inquiries for any of the purposes referred to above, including, at Seller’s sole cost, the presence
of such persons as witnesses in hearings or trials for such purposes; provided,
however, that such investigation shall not unreasonably interfere with the business or
operations of Buyer or any of its Affiliates; and provided further, that the
external auditors and accountants of Buyer or its Affiliates shall not be obligated to make any
work papers and data available to any Person unless and until such Person has signed a customary
confidentiality agreement relating to such access to work papers in form and substance reasonably
acceptable to such auditors or accountants. Seller shall be obligated to pay for Buyer’s costs in
satisfying any of its obligations pursuant to this Section 7.2(b).

     (c) The rights under this Section 7.2 to receive, copy or have access to Contracts, books,
records, Tax Returns, work schedules and other documents and data shall survive until the later to
occur of the expiration of the statute of limitations for the imposition of Tax with respect to the
years to which such Contracts, books, records, documents and data pertain, or
seven (7) years from the year to which such Contracts, books, records, documents and data
pertain, provided that such access or copying shall not unduly interfere with the business
and affairs of the party or applicable Affiliate(s) permitting such access or copying. Neither
party shall be obligated hereunder to disclose to the other party any information the disclosure of
which would violate any Law.

Section 7.3 Insurance

     As of the Closing Date the coverage under all insurance policies related to the Patient
Monitoring Business shall continue in force only for the benefit of Seller and its Affiliates, and
not for the benefit of Buyer or its Affiliates. As of the Closing Date Buyer agrees to arrange for
its own insurance policies with respect to the Purchased Assets and the Assumed Liabilities
covering all periods and agrees not to seek, through any means, to benefit from any of Seller’s or
its Affiliates’ insurance policies which may provide coverage for claims relating in any way to the
Patient Monitoring Business.

 - 49 - 

 

Section 7.4 Payments from Third Parties

     In the event that, on or after the Closing Date, either party shall receive any payments or
other funds due to the other pursuant to the terms hereof or otherwise, then the party receiving
such funds shall promptly forward such funds to the proper party. The parties acknowledge and
agree there is no right of offset regarding such payments and a party may not withhold funds
received from third parties for the account of the other party in the event there is a dispute
regarding any other issue under this Agreement.

Section 7.5 Further Assurances

     (a) Each of Buyer and Seller shall use commercially reasonable efforts to cause all conditions
to its and the other parties’ obligations hereunder to be timely satisfied and to perform and
fulfill all obligations on its part to be performed and fulfilled under this Agreement and the
other Transaction Documents to which it is a party, to the end that the transactions contemplated
herein shall be effected substantially in accordance with its terms as soon as reasonably
practicable. Each of Buyer and Seller shall execute and deliver during the Transfer Period such
further certificates, agreements and other documents and take such other actions as the other party
may reasonably request to consummate or implement the transactions contemplated hereby or under the
other Transaction Documents or to evidence such events or matters, including (i) transferring to
Buyer any Purchased Assets which was not transferred to Buyer at the Closing Date and any asset,
right, benefit or other property which is not a Purchased Asset but that the parties mutually agree
to transfer to Buyer and (ii) transferring back to Seller any asset, right, benefit or other
property which is not a Purchased Asset but was transferred to Buyer at Closing.

     (b) Seller agrees to use reasonable efforts, and instruct its employees, auditors or other
authorized representatives to use reasonable efforts, to cooperate with requests to furnish to
Buyer, auditors or other authorized representatives of Buyer financial information regarding the
Patient Monitoring Business as such persons may reasonably request for the purposes of Buyer’s
preparation of standalone historical financial statements in respect of the Patient Monitoring
Business.

     (c) At any time from the Effective Date through the Transfer Period, upon the request of
Buyer, the parties shall meet to discuss in good faith any concerns over the completeness of the
lists of patent applications included in the schedule of Transferred Patent Rights. If the parties
determine that any unpublished patent application owned by Seller or the Selling Subsidiaries as of
the Effective Date exclusively relates to the Patient Monitoring Business (as determined based on
the independent claims of such application) and has been omitted from such schedule, the parties
shall amend such schedule to include such omitted unpublished patent applications. If the parties
determine that any unpublished patent application owned by Seller or the Selling Subsidiaries as of
the Effective Date primarily relates to the Patient Monitoring Business (as determined based on the
independent claims of such application) and has been omitted from such schedule, the parties shall
work together in good faith to put in place appropriate arrangements between the parties relating
to such unpublished patent applications, including licenses thereto.

 - 50 - 

 

     (d) All cash collected on or after the Closing Date with respect to Accounts Receivable which
constitute Excluded Assets shall belong to, and if received by Buyer and/or any of its Affiliates,
shall be received for the benefit and the account of, Seller, and Buyer shall (and shall cause each
of their respective Affiliates to), on a weekly basis, transfer and remit to Seller all such
amounts received by or paid to Buyer and/or any of their Affiliates. By way of clarification, to
the extent Buyer and/or any of its Affiliates receives cash from a distributor which has accounts
receivables owing to Buyer and/or any of its Affiliates and Accounts Receivable owing to Seller,
such cash (to the extent of the outstanding Accounts Receivable from such distributor) shall be
received for the benefit and the account of, Seller, and Buyer shall (and shall cause each of their
respective Affiliates to), on a weekly basis, transfer and remit to Seller all such amounts.

Section 7.6 Tax Matters

     (a) Seller shall timely file, or cause to be filed, all Tax Returns (other than Income Tax
Returns) related to the Purchased Assets (solely for purposes of this Section 7.6 and except as
otherwise provided in Section 7.6(b), the term “Purchased Assets” shall exclude the Artema Stock)
and all Tax Returns of Artema required to be filed by Seller, the Selling Subsidiaries, or Artema
on or before the Closing Date (after taking into account any extensions) and shall pay all Taxes
shown due on such Tax Returns. Buyer shall timely file, or cause to be filed, (i) all Tax Returns
related to the Purchased Assets (other than Income Tax Returns) and (ii) all Tax Returns of Artema
for the taxable periods, or portions thereof, ending on, before or including the Closing Date which
have not been filed prior to or on the Closing Date and Buyer shall remit to the proper taxing
authority all Taxes shown due thereon.

     (b) Buyer shall not have the right to file any amended Tax Return with regard to the Purchased
Assets or Artema for any Pre-Closing Tax Period (other than a Straddle Period) without Seller’s
consent. Seller shall have the right to file any amended Tax Returns with regard
to the Purchased Assets or Artema with respect to any Pre-Closing Tax Period (other than a
Straddle Period). Either party shall have the right to file an amended Tax Return with regard to
the Purchased Assets with respect to any Straddle Period, provided that in the event that any such
filing proposed by one party would affect the obligations of the other party under this Agreement,
then the party proposing to amend such Tax Return shall obtain the written consent of the other
party, which consent shall not be unreasonably withheld. Notwithstanding any other provision in
this Section 7.6, Seller shall not have the right to file any amended Tax Return with regard to the
Purchased Assets (including, for this purpose, Artema Stock) for any Pre-Closing Tax Period if such
amendment is reasonably likely to result in increased Taxes to Buyer, unless Buyer consents.

     (c) With respect to Tax refunds:

     (i) Seller shall be entitled to any refunds or credits (including interest paid
therewith) received in respect of any Tax liability (x) of Artema or (y) with regard
to the Purchased Assets, in each case in respect of any Pre-Closing Tax Period;
provided that Seller shall not be entitled to any such refund or credit

 - 51 - 

 

(including interest paid therewith) to the extent such refund or credit was taken
into account in determining the Estimated Closing Date Net Working Capital or any
adjustment thereto under Section 2.11 hereto or otherwise to the extent Buyer
actually pays the Tax for which such refund or credit is owed.

     (ii) Except as provided in Section 7.6(c)(i), Buyer shall be entitled to any
refunds (including interest paid therewith) in respect of any Tax liability of
Artema or with regard to the Purchased Assets.

     (iii) Notwithstanding anything to the contrary herein, if a Taxing Authority
subsequently disallows any item or refund with respect to which a party has received
payment from the other party pursuant to this Section 7.6(c), such recipient party
shall promptly pay (or cause to be paid) to the other party the full amount of such
item or refund (including any interest paid therewith).

     (d) For purposes of this Agreement, income, deductions, and other items in respect of a
Straddle Period shall be calculated by treating the Closing Date as the last day of a taxable
period, and the portion of any such Tax that is allocable to the taxable period that is so deemed
to end on and include the Closing Date shall be allocated based on an actual closing of the books
of the relevant entity as of the Closing Date; provided, however, that in closing
books, Taxes (such as Property Taxes) that are not imposed on income, receipts, or otherwise on a
transactional basis and exemptions, allowances or deductions that are calculated on an annual basis
(including but not limited to, depreciation and amortization deductions) shall be allocated on a
daily basis.

     (e) Nothing contained in this Agreement shall prohibit Seller, prior to the Closing Date, from
making, or causing to be made, an election under Treasury Regulation section 301.7701-3 with
respect to Artema.

     (f) Buyer shall not make, or cause to be made, an election under Treasury Regulation section
301.7701-3 with respect to Artema that goes into effect, and as to which the transactions described
in Treasury Regulation section 301.7701-3(g) occur, on or prior to the Closing Date without the
consent of Seller.

     (g) With the consent of Seller, which consent may be granted or withheld by Seller in its sole
discretion, Buyer shall not make, nor allow any Affiliate to make, the election permitted to be
made under Section 338(g) of the Code with respect to Artema (the “Artema 338 Election”).
However, if requested by Seller, Buyer shall, at Seller’s expense, make the Artema 338 Election.
If the Artema 338 Election is made, Buyer shall provide written notice to Seller of the filing of
such election, which notice shall contain the information required by Treasury Regulations section
1.338-2(e)(4), and shall be furnished in the time and manner set forth therein.

     (h) Buyer shall not, and shall not permit any Affiliate to, during the period from the Closing
until December 31, 2008, cause Artema to (i) enter into a transaction which would directly or
indirectly result, for United States federal income tax purposes, in a dividend

 - 52 - 

 

distribution to
Buyer or its Affiliates or an inclusion to income to Seller for U.S. tax purposes or (ii) engage in
any activity or transaction which could be considered out of the ordinary course of business for
Artema for the calendar year that includes the Closing Date. In addition, Buyer agrees that it
shall promptly provide Seller with any information reasonably requested by Seller related to the
foreign tax credits claimed by, or available to, Seller (or the affiliated group of which Seller is
the parent). If Buyer, in accordance with Section 7.6(g), makes the Artema 338 Election, then
Buyer’s obligations in the first sentence of this Section 7.6(h) shall be null and void.

Section 7.7 Covenant Not to Compete

     (a) Seller agrees that for a period (such period, the “Non-Compete Expiration Date”)
between the Closing Date and the earliest to occur of (i) the third anniversary of the Closing
Date; (ii) the first anniversary of the date of a Buyer Change of Control; and (iii) the first
anniversary of the date of a Seller Change of Control, Seller shall not, and shall cause its
Affiliates not to, directly or indirectly, manage, operate, control, engage or acquire any
ownership interest in any firm, corporation, partnership, proprietorship or other business entity
that engages in a business in competition with Buyer with respect to the Base PM Business, as the
Base PM Business has been conducted during the twelve (12) month period preceding the date of this
Agreement, on a worldwide basis (each a “Seller Competing Business”); provided,
however, that it shall not be a violation of this Section 7.7(a) for Seller or any of its
Affiliates (i) to own, directly or indirectly, solely as an investment, securities of any Person
that are traded on a national securities exchange (or a securities exchange outside the U.S.) if
Seller or any of its Affiliates (A) is not a controlling Person or a member of a group that
controls such Person and (B) does not, directly or indirectly, own more than 5% of the voting
securities of such Person, (ii) to directly or indirectly acquire any Person that includes a Seller
Competing Business that, at the time of such acquisition,
constituted less than 20% of the assets or revenue of such Person, provided that
Seller disposes of such Seller Competing Business within twelve (12) months after the closing date
of such acquisition (regardless of whether such twelve (12) month period extends beyond the
Non-Compete Expiration Date) or (iii) provide services pursuant to the Transition Services
Agreement. Also, in the event that from the period between the Closing Date until the Non-Compete
Expiration Date, Seller completes a business combination transaction with a Person that is engaged
in any Seller Competing Business, which transaction results in such Person beneficially owning more
than 50% of the voting power of the voting securities of Seller outstanding immediately prior to
the consummation of such transaction (a “Seller Change of Control”), such Person and its
Affiliates (other than Seller (or the surviving entity of Seller or successor in interest of Seller
or its assets) and its Subsidiaries) shall not be subject to the restrictions in this Section
7.7(a) and Buyer and its Affiliates shall not be subject to the restrictions in Section 7.7(b).
For avoidance of doubt, nothing in this Section 7.7(a) shall prevent Seller or any of its
Affiliates from operating, and it shall not be a violation of this Section 7.7(a) for Seller or any
of its Affiliates to operate, the Non-PM Business.

     (b) Buyer agrees that until the Non-Compete Expiration Date, Buyer shall not, and shall cause
its Affiliates not to, directly or indirectly, manage, operate, control, engage or acquire

 - 53 - 

 

any
ownership interest in any firm, corporation, partnership, proprietorship or other business entity
that engages in a business in competition with Seller with respect to the Non-PM Business, as the
Non-PM Business has been conducted during the twelve (12) month period preceding the date of this
Agreement, on a worldwide basis (each a “Buyer Competing Business”); provided,
however, that it shall not be a violation of this Section 7.7(b) for Buyer or any of its
Affiliates (i) to own, directly or indirectly, solely as an investment, securities of any Person
that are traded on a national securities exchange (or a securities exchange outside the U.S.) if
Buyer or any of its Affiliates (A) is not a controlling Person or a member of a group that controls
such Person and (B) does not, directly or indirectly, own more than 5% of the voting securities of
such Person, (ii) to directly or indirectly acquire any Person that includes a Buyer Competing
Business that, at the time of such acquisition, constituted less than 20% of the assets or revenue
of such Person, provided that Buyer disposes of such Buyer Competing Business within twelve
(12) months after the closing date of such acquisition (regardless of whether such twelve (12)
month period extends beyond the Non-Compete Expiration Date) or (iii) provide services pursuant to
the Transition Services Agreement, or use the marks subject of, and pursuant to, the Trademark
License Agreement. Also, in the event that from the period between the Closing Date until the
Non-Compete Expiration Date, Buyer completes a business combination transaction with a Person that
is engaged in any Buyer Competing Business, which transaction results in such Person beneficially
owning more than 50% of the voting power of the voting securities of Buyer outstanding immediately
prior to the consummation of such transaction (a “Buyer Change of Control”), such Person
and its Affiliates (other than Buyer (or the surviving entity of Buyer or successor in interest of
Buyer or its assets) and its Subsidiaries) shall not be subject to the restrictions in this Section
7.7(b) and Seller and its Affiliates shall not be subject to the restrictions in Section 7.7(a).
For avoidance of doubt, nothing in this Section 7.7(b) shall prevent
Buyer or any of its Affiliates from operating, and it shall not be a violation of this Section
7.7(b) for Buyer or any of its Affiliates to operate the Patient Monitoring Business.

Section 7.8 Non-Solicitation

     (a) For a period of two (2) years following the Closing Date, Buyer will not, and will cause
all of its Subsidiaries and its and such Subsidiaries’ respective officers and directors not to,
and shall not authorize or permit its Representatives to, directly or indirectly, hire, retain,
employ or solicit to employ or hire or retain any of the employees of Seller and its Affiliates as
of the Closing Date or any time during the twelve (12) month period ending on the Closing Date;
provided, however, that this provision shall not apply to (i) general solicitations
of employment not specifically directed towards employees of Seller and its Affiliates or (ii) any
such individual whose employment relationship is terminated by Seller or any of its Affiliates
following the Closing.

     (b) Except with respect to the individuals set forth on Schedule 7.8, for a period of
two (2) years following the Closing Date, Seller will not, and will cause all of its Subsidiaries
and its and such Subsidiaries’ respective officers and directors not to, and shall not authorize or
permit its Representatives to, directly or indirectly, hire, retain, employ or solicit to employ or
hire or retain any of the employees of Buyer and its Affiliates as of the Closing Date (including,

 - 54 - 

 

for this purpose, the persons on the Agreed List of Employees) or any time during the twelve (12)
month period ending on the Closing Date; provided, however, that this provision
shall not apply to (i) general solicitations of employment not specifically directed towards
employees of Buyer and its Affiliates or (ii) any such individual whose employment relationship is
terminated by Buyer or any of its Affiliates following the Closing.

ARTICLE VIII

TERMINATION

Section 8.1 Termination or Abandonment

     This Agreement may be terminated and the transactions contemplated hereby may be abandoned at
any time:

     (a) by either Seller (by action duly authorized by the Board of Directors of Seller, or an
authorized committee thereof) or Buyer (by action of the Board of Directors of Buyer, or an
authorized committee thereof) if there has been a breach or failure to perform by the other party
of any representation, warranty, covenant or agreement set forth in this Agreement, which breach or
failure to perform (1) in the case of a breach or failure to perform by Seller, would give rise to
the failure of a condition set forth in Section 5.1, and (2) in the case of a breach or failure to
perform by Buyer, would give rise to the failure of a condition set forth in Section 5.2 (and in
each case such breach is not reasonably capable of being cured or such condition is not reasonably
capable of being satisfied within seven (7) Business Days after the receipt of notice thereof by
the defaulting party from the non-defaulting party, it being understood and agreed that
this Agreement may not be terminated pursuant to this Section 8.1(a)(i) during, or following,
such period of seven (7) Business Days if such breach is cured during such period);
provided, however, that the right to terminate this Agreement is not available to
the non-breaching party if the other party is at that time in material breach of this Agreement;

     (b) by either Buyer or Seller, if a court of competent jurisdiction or other Governmental
Entity shall have issued a final, non-appealable order, decree or ruling in each case permanently
restraining, enjoining or otherwise prohibiting the transactions contemplated hereby;

     (c) by mutual written consent of Buyer and Seller duly authorized by the Board of Directors of
Seller and the Board of Directors of Buyer, or authorized committee thereof; or

     (d) by either Buyer or Seller if the Closing shall not have occurred on or before September
30, 2008, unless the failure to consummate such Closing is the result of a wilful and material
breach of any Transaction Agreement by the party seeking to terminate this Agreement; provided,
however, that the passage of such period shall be tolled for any part thereof during which any
party shall be subject to a non-final order, decree, ruling or action restraining, enjoining or
otherwise prohibiting the consummation of such Closing.

 - 55 - 

 

Section 8.2 Effect of Termination

     In the event of the termination of this Agreement as provided in Section 8.1, written notice
thereof shall forthwith be given to the other party specifying the provision hereof pursuant to
which such termination is made, and this Agreement shall forthwith become null and void, except
that the Confidentiality Agreement shall survive in accordance with its terms and Sections 8.2,
9.11, 9.12, 9.13 and 9.14 shall also survive such termination, provided, however, that nothing
herein shall relieve any party from liability for any breach of this Agreement prior to the date of
such termination. The parties hereto acknowledge and agree that any breach or threatened breach of
the terms of this Agreement would give rise to irreparable harm for which money damages would not
be an adequate remedy and accordingly the parties agree that, in addition to any other remedies,
each party shall be entitled to enforce the terms of this Agreement by a decree of specific
performance without the necessity of proving the inadequacy of money damages as a remedy.

ARTICLE IX

MISCELLANEOUS

Section 9.1 No Survival of Representations and Warranties

     None of the representations and warranties in this Agreement or in any instrument delivered
pursuant to this Agreement shall survive the Closing, other than the representations and warranties
in (a) Sections 3.2(a), 3.19, 4.2, and 4.8, which shall survive indefinitely.

Section 9.2 Schedule Updates

     Seller may, from time to time prior to or at the Closing, by notice in accordance with the
terms of this Agreement, supplement, amend or create any Schedule corresponding to the
representations and warranties contained in Article III in order to add information or correct
previously supplied information. No such supplemental, amended or additional Schedule shall be
deemed to cure any breaches of a representation or warranty on or prior to the Closing; however, if
the Closing occurs, such supplement, amendment or addition will be effective to cure and correct
for all purposes any breach of any representation, warranty or covenant which would have existed if
Seller had not made such supplement, amendment or addition, and all references to any Schedule
hereto which is supplemented or amended as provided in this Section 9.2 shall for all purposes
include such added information or corrected information. Buyer and Seller may, from time to time
prior to or at the Closing, agree in accordance with Section 9.3 to supplement or amend any
Schedule corresponding to the definitions contained in Article I or the covenants or agreements.

Section 9.3 Amendments; Waivers

     At any time prior to the Termination Date, any provision of this Agreement may be amended or
waived if, and only if, such amendment or waiver is in writing and signed, in the

 - 56 - 

 

case of an
amendment, by Buyer and Seller, or in the case of a waiver, by the party against whom the waiver is
to be effective. Notwithstanding the foregoing, no failure or delay by Buyer or Seller in
exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise of any other right hereunder.

Section 9.4 Assignment; Binding Effect

     Neither this Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any of the parties hereto without the prior written consent of the other parties,
except that Buyer may assign, in its sole discretion, in whole or in part, its rights, interest and
obligations under this Agreement to one or more direct or indirect wholly owned subsidiaries of
Buyer without the prior written consent of Seller, but no such assignment shall relieve Buyer of
its obligations hereunder to the extent any such subsidiary does not satisfy its obligations
hereunder.

Section 9.5 Severability

     Any term or provision of this Agreement that is invalid or unenforceable shall be ineffective
to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Agreement so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner adverse to any party. Upon any such
determination, the parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the fullest extent possible.

Section 9.6 Notices

     Any notice, request, instruction or other communication to be given hereunder by either party
to the other party shall be in writing and delivered personally, by nationally recognized overnight
courier service, sent by postpaid registered or certified mail, or by fax:

if to Seller, addressed to:

Datascope Corp.

14 Philips Parkway

Montvale, NJ 07645

Attention: Lawrence Saper

Fax: (210) 391-8100

With a copy to:

Dechert LLP

30 Rockefeller Plaza

New York, NY 10112

 - 57 - 

 

Attention: Martin Nussbaum, Esq.

Fax: (212) 698-3599

and if to Buyer, to:

Mindray Medical International Limited

Mindray Building, Keji 12th Road South, High-tech

Industrial Park, Nanshan Shenzhen 518057, P.R. China

Attention: Tim Fitzpatrick, General Counsel

Fax: +86(755)2658-2596

With a copy to:

O’Melveny & Myers

31/F AIG Tower, 1 Connaught Road Central

Hong Kong S.A.R.

Attention: Gregory D. Puff, Esq.

Fax: (852) 2522-1760

or to such other address for either party as such party shall hereafter designate by like notice.

Section 9.7 Headings

     Headings of the Articles and Sections of this Agreement are for convenience of the parties
only and shall be given no substantive or interpretive effect whatsoever.

Section 9.8 Interpretation

     (a) Unless otherwise provided herein all monetary values stated herein are expressed in United
States currency.

     (b) Each accounting term set forth herein and not otherwise defined shall have the meaning
accorded it under GAAP as applied on a consistent basis by Seller. For the avoidance of doubt, in
the event of any discrepancy between GAAP and the provisions of this Agreement, the provisions of
this Agreement shall control.

     (c) Whenever conversion of payments from any foreign currency for a particular date shall be
required, such conversion shall be made at the exchange rate as published in the Wall Street
Journal as of such date. Whenever conversion of payments from any foreign currency for a
particular period shall be required, such conversion shall be made at the average of the exchange
rates published in the Wall Street Journal for the beginning and the end of the relevant period.

     (d) The parties have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this

 - 58 - 

 

Agreement shall be
construed as if drafted jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement. Except where expressly indicated otherwise, references in this Agreement to any
Article, Section or Exhibit refer to Articles, Sections or Exhibits of this Agreement and any
sub-section thereof and any provision contained therein. The words “or” or “any” are not exclusive
and “such as,” “include” or “including” are not limiting. References to this “Agreement” include
all Exhibits and other attachments hereto, which are incorporated into this Agreement by reference.

Section 9.9 Counterparts; Effectiveness

     This Agreement may be executed and delivered in one or more counterparts (including by
facsimile), each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument, and shall become effective when one or more counterparts
have been signed by each of the parties and delivered (by fax or otherwise) to the other parties.

Section 9.10 Entire Agreement; No Third-Party Beneficiaries

     This Agreement (including the exhibits hereto) and the Confidentiality Agreement constitute
the entire agreement and supersede all other prior agreements and understandings between the
parties with respect to the subject matter hereof and thereof and is not intended to and shall not
confer upon any person other than the parties hereto any rights or remedies hereunder.

Section 9.11 Payment of Expenses

     All costs and expenses associated with this Agreement and the transactions contemplated
thereby, including the fees of counsel and accountants, shall be borne by the party incurring such
expenses. Buyer will pay one-half and Seller will pay one-half of all filing fees associated with
compliance with HSR.

Section 9.12 Governing Law

     This Agreement, and all claims or causes of action (whether at Law, in contract or in tort)
that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or
performance hereof, shall be governed by and construed in accordance with the Laws of the State of
Delaware without giving effect to conflicts of laws principles that would result in the application
of the law of any other state.

Section 9.13 Jurisdiction; Enforcement

     The parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that prior to the termination of this Agreement in

 - 59 - 

 

accordance
with Article VIII the parties shall be entitled to an injunction or injunctions to prevent breaches
of this Agreement and to enforce specifically the terms and provisions of this Agreement in the
state court of the State of New York located in New York City or, if under applicable Law exclusive
jurisdiction over such matter is vested in the federal courts, any court of the United States
located in the State of State of New York, this being in addition to any other remedy which they
are entitled at Law or in equity. In addition, 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 brought by the other party hereto or its
successors or assigns, shall be brought and determined exclusively in any federal or state court
located in the State of 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 or any of the transactions contemplated hereby in any
court other than the aforesaid courts. Each of the parties hereto hereby irrevocably waives, and
agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or
proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the
jurisdiction of the above named courts for any reason other than the failure to serve in accordance
with this Section 9.13; (b) 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 (c) to the fullest extent permitted by the applicable Law, any claim
that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the
venue of such suit, action or proceeding
is improper or (iii) this Agreement, or the subject mater hereof, may not be enforced in or by
such courts.

Section 9.14 WAIVER OF JURY TRIAL

     EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING BETWEEN THE PARTIES HERETO ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

Section 9.15 No Recourse

     This Agreement may only be enforced against, and any claims or causes of action that may be
based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance
of this Agreement may only be made against the corporate entities that are expressly identified as
parties hereto.

Section 9.16 Determination by Seller

     Whenever a determination, decision or approval by Seller is called for in this Agreement, such
determination, decision or approval must be authorized by Seller’s Board of Directors.

 - 60 - 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 - 61 - 

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first
above written.

	 	 	 	 	 	 	 
	 	 	MINDRAY MEDICAL INTERNATIONAL LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Xu Hang 	 	 
	 

	 	Name:
	 	 

Xu Hang
	 	 
	 

	 	Title:
	 	Chairman and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	DATASCOPE CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lawrence Saper 	 	 
	 

	 	Name:
	 	 

Lawrence Saper
	 	 
	 

	 	Title:
	 	Chairman of the Board and	 	 
	 

	 	 	 	Chief Executive Officer	 	 

 - 62 -EX-10.2 Loan Agreement

Exhibit 10.2

DATED APRIL 23, 2008

MR HOLDINGS (HK) LIMITED

MR INVESTMENTS (HK) LIMITED

as Borrowers

MINDRAY MEDICAL INTERNATIONAL LIMITED

as Corporate Guarantor

and

BANK OF CHINA (HONG KONG) LIMITED

as Lender

 

LOAN AGREEMENT

US$141,400,000

TERM LOAN FACILITY

 

Baker
& McKenzie

14th Floor, Hutchison House

Hong Kong

 

 

CONTENTS

	 	 	 	 	 	 	 
	Number	 	Clause Heading	 	Page
	1.	 	Interpretation
	 	 	1	 
	2.	 	The Facility
	 	 	8	 
	3.	 	Conditions Precedent
	 	 	8	 
	4.	 	Advances
	 	 	11	 
	5.	 	Interest
	 	 	12	 
	6.	 	Repayment, Prepayment and Cancellation
	 	 	13	 
	7.	 	Market Disruption
	 	 	15	 
	8.	 	Change of Law or Circumstances
	 	 	16	 
	9.	 	Taxes and Other Deductions
	 	 	17	 
	10.	 	Fees and Expenses
	 	 	17	 
	11.	 	Payments and Evidence of Debt
	 	 	18	 
	12.	 	Representations and Warranties
	 	 	19	 
	13.	 	Undertakings
	 	 	21	 
	14.	 	Events of Default
	 	 	30	 
	15.	 	Default Interest
	 	 	32	 
	16.	 	Indemnities and Set–Off
	 	 	33	 
	17.	 	Waiver and Severability
	 	 	34	 
	18.	 	Miscellaneous
	 	 	34	 
	19.	 	Assignment
	 	 	35	 
	20.	 	Notices
	 	 	36	 
	21.	 	Governing Law and Jurisdiction
	 	 	37	 
	 	 	 
	 	 	 	 
	Execution	 	 	 	 
	 	 	 
	 	 	 	 
	Appendix 1 Form of Notice of Drawing	 	 	 	 

 

 

THIS AGREEMENT is made on the 23rd day of April 2008

BETWEEN:

	(1)	 	MR HOLDINGS (HK) LIMITED (“MRH”) and MR INVESTMENTS (HK) LIMITED (“MRI”), each a company
incorporated under the laws of Hong Kong of Units 13-14, 28th Floor, Convention Plaza Office
Tower, 1 Harbour Road, Hong Kong as borrowers (the “Borrowers” and each a “Borrower”);
	 
	(2)	 	MINDRAY MEDICAL INTERNATIONAL LIMITED, a company incorporated under the laws of the Cayman
Islands having its registered office at Century Yard, Cricket Square, Hutchins Drive, P.O. Box
2681 GT, George Town, Grand Caymans, British West Indies as corporate guarantor (the
“Corporate Guarantor”); and
	 
	(3)	 	BANK OF CHINA (HONG KONG) LIMITED as lender (the “Lender”).

IT IS AGREED as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	Definitions. In this Agreement, unless the context requires otherwise:
	 
	 	 	“Acquisition” means the acquisition by the Corporate Guarantor of Datascope’s Patient
Monitoring Business from the Vendor;
	 
	 	 	“Acquisition Agreement” means the asset purchase agreement dated 10 March 2008 executed
between the Corporate Guarantor as purchaser and the Vendor as vendor for the sale and
purchase of Datascope’s Patient Monitoring Business by the Vendor to the Corporate
Guarantor;
	 
	 	 	“Acquisition Cost” means US$202,000,000 as stated in the Acquisition Agreement as the total
acquisition cost payable by the Corporate Guarantor to the Vendor in respect of the
Acquisition under the terms of the Acquisition Agreement;
	 
	 	 	“Advance” means the Advance under the Facility pursuant to Clause 4;
	 
	 	 	“Availability Period” means the period commencing on the date of this Agreement and ending
on the earlier of (a) the date falling one (1) month after the date of this Agreement and
(b) the date on which the Facility is fully drawn, cancelled or terminated under the
provisions of this Agreement;
	 
	 	 	“BOC (HK) Shenzhen” means Bank of China (Hong Kong) Limited, Shenzhen Branch;
	 
	 	 	“BOC Shenzhen” means Bank of China Holdings Limited, Shenzhen Branch;
	 
	 	 	“Business Day” means a day (excluding Saturday and Sunday) on which banks are open for
business in Hong Kong and, if on that day a payment is to be made under this Agreement, in
New York City;

 

 

“Charge over Account (MRH)” means the charge over the MRH Account and the MRH Deposits
executed or to be executed by MRH in form and substance satisfactory to the Lender;

“Charge over Account (MRI)” means the charge over the MRI Account and the MRI Deposits
executed or to be executed by MRI in form and substance satisfactory to the Lender;

“CHATS” means the Clearing House Automated Transfer System operated by Hong Kong Interbank
Clearing Limited;

“Corporate Guarantee” means the guarantee executed or to be executed by the Corporate
Guarantor in the form and substance satisfactory to the Lender;

“Corporate Guarantor” means Mindray Medical International Limited, an exempted company with
limited liability under the Companies Law of the Cayman Islands with its registered office
at Century Yard, Cricket Square, Hutchins Drive, P.O. Box 2681 GT, George Town, Grand
Cayman, British West Indies;

“Covered Amount” means such amount equivalent to the aggregate of the following:

	 	(a)	 	the US$ Equivalent Amount of the amount of the Shenzhen Mindray Deposit; and
	 
	 	(b)	 	the US$ Equivalent Amount of the total value of Financial Products deposited
with or held in the Shenzhen Mindray Securities Account;

“Datascope’s Patient Monitoring Business” means the Patient Monitoring Business (as defined
in the Acquisition Agreement);

“Dollars” and “US$” mean the lawful currency for the time being of the United States of
America;

“Encumbrance” means:

	 	(a)	 	any mortgage, charge, pledge, lien, encumbrance, hypothecation or other
security interest or security arrangement of any kind;
	 
	 	(b)	 	any arrangement whereby any rights are subordinated to any rights of any third
party;
	 
	 	(c)	 	any contractual right of set–off; and
	 
	 	(d)	 	the interest of a vendor or lessor under any conditional sale agreement, lease,
hire purchase agreement or other title retention arrangement other than an interest in
a lease or an operating lease or hire purchase agreement which arose in the ordinary
course of business;

provided that “Encumbrance” shall not include any licensing of intellectual property
rights or any agreement to sell;

2

 

“Event of Default” means any event or circumstance specified as such in Clause 14;

“Facility” means the loan facility to be made available under this Agreement;

“Finance Document” means this Agreement, any Security Document and any other document
designated as such by the Lender and the Borrowers;

“Financial Products” means all deposits or principal protection financial products of such
nature and quantities reasonably acceptable to the Lender deposited in the Shenzhen Mindray
Securities Account from time to time;

“Floating Charge (MRH)” means the floating charge executed or to be executed by MRH in form
and substance satisfactory to the Lender;

“Floating Charge (MRI)” means the floating charge executed or to be executed by MRI in form
and substance satisfactory to the Lender;

“Group” means the Borrowers, Shenzhen Mindray, the Corporate Guarantor and their respective
Subsidiaries;

“Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of
China;

“Individual Guarantee” means the guarantee executed or to be executed by the Individual
Guarantors in form and substance satisfactory to the Lender;

“Individual Guarantors” means Mr. Li and Mi. Xu; “Individual Guarantor” means either one of
them;

“Interest Payment Date” means the last day of an Interest Period;

“Interest Period” means an interest period ascertained in accordance with Clause 5;

“LIBOR” means, in relation to any relevant sum and any relevant period:

	 	(a)	 	the rate shown on the Telerate Monitor Screen as being the rate per annum at
which Dollar deposits are offered for a period equal or comparable to such period at or
about 11:00 a.m. (London time) on the second London Business Day before the first day
of such period; for this purpose “Telerate Monitor Screen” means the display designated
as page “3750” on the Telerate Monitor system or such other page as may replace page
“3750” on that system for the purpose of displaying offered rates for Dollar deposits;
or
	 
	 	(b)	 	if at or about such time on the relevant day no such rate appears on the
Telerate Monitor Screen, the rate determined by the Lender to be the arithmetic mean of
the rate determined by the Lender as being the rate per annum at which Dollar deposits
in an amount comparable to such sum are offered to the Lender for such period by prime
banks in the London interbank

3

 

	 	 	 	market at or about 11:00 a.m. (London time) on the second London Business Day before
the first day of such period;

“Loan” means the aggregate principal amount drawn and for the time being outstanding under
the Facility;

“London Business Day” means a day on which Dollar deposits may be dealt in on the London
interbank market;

“Margin” means:

	 	(a)	 	with respect to such part of the Loan in an amount equivalent to Covered
Amount, 1.0%; and
	 
	 	(b)	 	with respect to the remaining part of the Loan, 3%;

“Material Adverse Effect” means a material adverse effect on:

	 	(a)	 	the ability of the Borrowers or any Security Provider to perform its
obligations under any of the Finance Documents to which it is or is to be a party;
	 
	 	(b)	 	the business, operations, assets, financial or other condition or prospects of
the Borrowers or any Security Provider or their respective Holding Companies and
Subsidiaries; or
	 
	 	(c)	 	the validity or enforceability of any Finance Document or the rights or
remedies of the Lender under the Finance Documents;

“MOC” means the Ministry of Commerce of the PRC or its relevant delegate in Shenzhen;

“Monitoring Agreement (Cash)” means the monitoring agreement with respect to the Shenzhen
Mindray Deposit executed or to be executed by the Borrowers, Shenzhen Mindray and BOC (HK)
Shenzhen in form and substance satisfactory to the Lender;

“Monitoring Agreement (Financial Products)” means the monitoring agreement with respect to
the Shenzhen Mindray Securities Account executed or to be executed by the Borrowers,
Shenzhen Mindray and BOC Shenzhen in form and substance satisfactory to the Lender;

“MRH Account” means the account(s) of MRH opened or to be opened with the Lender, details of
which are specified in Charge over Account (MRH);

“MRI Account” means the account(s) of MRI opened or to be opened with the Lender, details of
which are specified in Charge over Account (MRI);

“MRH Deposits” means the fixed or time deposits of MRH deposited or to be deposited with the
Lender and referred to in the Charge over Account (MRH) as the “Charged Deposits”;

4

 

“MRI Deposits” means the fixed or time deposits of MRI deposited or to be deposited with the
Lender and referred to in the Charge over Account (MRI) as the “Charged Deposits”;

“Mr. Li”
means Mr. Li Xiting , holder of PRC passport number G10609378;

“Mr. Xu” means Mr. Xu Hang , holder of PRC passport number G18363785;

“Notice of Drawing” means a notice in the form set out in Appendix 1;

“Potential Event of Default” means any event or circumstance which would (with the expiry of
a grace period, the giving of notice, the making of any determination under the Finance
Documents or any combination of the foregoing) be an Event of Default;

“PRC” means the People’s Republic of China;

“Repayment Date” means a repayment date under Clause 6.1; and “Repayment Dates” means all
such repayment dates;

“RMB” means the lawful currency for the time being of the PRC;

“SAIC” means the State Administration of Industry and Commerce of the PRC or its relevant
delegate in Shenzhen;

“Security Documents” means the Corporate Guarantee, Individual Guarantee, the Undertaking
Letter, the Subordination Deed (MRH), the Subordination Deed (MRI), the Charge over Account
(MRH), the Charge over Account (MRI), the Floating Charge (MRH), the Floating Charge (MRI),
the Monitoring Agreement (Cash), the Monitoring Agreement (Financial Products) and any other
document executed from time to time by whatever person as a further guarantee of or security
for all or any part of the Borrowers’ obligations under this Agreement;

“Security Provider” means each of the Corporate Guarantor, the Individual Guarantors,
Shenzhen Mindray and, where the context permits, any person other than the Borrowers which
has provided or subsequently provides a guarantee of or security for all or any part of the
Borrowers’ obligations under this Agreement;

“Shenzhen Mindray” Shenzhen Mindray Bio-Medical Electronics Co., Ltd.
 , a company incorporated under the laws of the PRC with
its registered address at

;

“Shenzhen Mindray Deposit” means the deposit of Shenzhen Mindray deposited or to be
deposited by Shenzhen Mindray with BOC (HK) Shenzhen, details of which are specified in the
Monitoring Agreement (Cash);

5

 

	 	 	“Shenzhen Mindray Securities Account” means the securities account opened or to be opened by
Shenzhen Mindray with BOC Shenzhen, details of which are specified in the Monitoring
Agreement (Financial Products);
	 
	 	 	“Spot Rate” means in respect of any currency and on the relevant date, the rate quoted by
the Lender as the spot rate for the purchase by the Lender of such currency with any other
relevant currency through its principal foreign exchange trading office at approximately
11:00 a.m. (Hong Kong time) on that date; provided that the Lender may obtain such spot rate
from another financial institution designated if the Lender does not have as of the date of
determination a spot buying rate for any such currency;
	 
	 	 	“Subordination Deed (MRH)” means the deed of subordination and assignment with respect to
all loans granted by the Corporate Guarantor to MRH executed or to be executed by the
Corporate Guarantor and MRH in form and substance satisfactory to the Lender;
	 
	 	 	“Subordination Deed (MRI)” means the deed of subordination and assignment with respect to
all loans granted by the Corporate Guarantor to MRI executed or to be executed by the
Corporate Guarantor and MRI in form and substance satisfactory to the Lender;
	 
	 	 	“Subsidiary” in relation to any company means any other company or other entity directly or
indirectly under the control of the first–mentioned company; for this purpose “control”
means ownership of more than fifty per cent (50%) of the voting share capital or equivalent
right of ownership of such company or entity, or power to direct its policies and management
whether by contract or otherwise and “Holding Company” in relation to any company means the
company of which such last–mentioned company is a Subsidiary;
	 
	 	 	“Undertaking Letter” means the letter of undertaking executed or to be executed by Shenzhen
Mindray in form and substance satisfactory to the Lender;
	 
	 	 	“US$ Equivalent Amount” means the amount in Dollars equivalent to the relevant amount in
the relevant currency at the Spot Rate of Dollars as calculated by the Lender from time to
time;
	 
	 	 	“Vendor” means Datascope Corp., a company incorporated under the laws of Delaware with its
registered address at 14 Philips Parkway, Montvale, NJ, USA.
	 
	1.2	 	Construction. In this Agreement, unless the context requires otherwise, any
reference to:
	 
	 	 	an “authorisation” includes any approvals, consents, licences, permits, franchises,
permissions, registrations, resolutions, directions, declarations and exemptions;
	 
	 	 	an Event of Default or Potential Event of Default which is “continuing” means an Event of
Default or Potential Event of Default which has not been remedied or waived;

6

 

“including” or “includes” means including or includes without limitation;

“indebtedness” includes any obligation of any person for the payment or repayment of money,
whether present or future, actual or contingent, including but not limited to any such
obligation:

	 	(a)	 	under or in respect of any acceptance, bill, bond, debenture, note or similar
instrument;
	 
	 	(b)	 	under or in respect of any guarantee, indemnity, counter–security or other
assurance against financial loss;
	 
	 	(c)	 	in respect of the purchase, hire or lease of any asset or service; or
	 
	 	(d)	 	in respect of any indebtedness of any other person whether or not secured by or
benefitting from a Encumbrance on any property or asset of such person;

	 	 	“law” and/or “regulation” includes any constitutional provisions, treaties, conventions,
statutes, acts, laws, decrees, ordinances, subsidiary and subordinate legislation, orders,
rules and regulations having the force of law and rules of civil and common law and equity;
	 
	 	 	an “order” includes any judgment, injunction, decree, determination or award of any court,
arbitration or administrative tribunal;
	 
	 	 	a “person” includes any individual, company, body corporate or unincorporate or other
juridical person, partnership, firm, joint venture or trust or any federation, state or
subdivision thereof or any government or agency of any thereof;
	 
	 	 	“tax” includes any tax, levy, duty, charge, impost, fee, deduction or withholding of any
nature now or hereafter imposed, levied, collected, withheld or assessed by any taxing or
other authority and includes any interest, penalty or other charge payable or claimed in
respect thereof and “taxation” shall be construed accordingly.
	 
	1.3	 	Successors and Assigns. The expressions “Borrowers” and “Lender” shall where the
context permits include their respective successors and permitted assigns and any persons
deriving title under them.
	 
	1.4	 	Miscellaneous. In this Agreement, unless the context requires otherwise, references
to statutory provisions shall be construed as references to those provisions as replaced,
amended, modified or re–enacted from time to time; words importing the singular include the
plural and vice versa and words importing a gender include every gender; references to this
Agreement or any other Finance Document shall be construed as references to such document as
the same may be amended, supplemented or novated from time to time; unless otherwise stated,
references to Clauses, the Schedule and Appendices are to clauses of and the schedule and
appendices to this Agreement and references to this Agreement include its Schedules and
Appendices (if any). Clause headings are inserted for reference only and shall be ignored in
construing this Agreement.

7

 

	2.	 	THE FACILITY
	 
	2.1	 	Amount. Subject to the terms and conditions of this Agreement, the Lender agrees to
make the Facility available to the Borrowers at any time during the Availability Period, and
the aggregate principal amount of the Facility available to the Borrowers is the lower of
US$141,400,000 and 70% of the Acquisition Cost.
	 
	2.2	 	Purpose. The proceeds of the Facility shall be used exclusively for financing part
of the Acquisition Cost.
	 
	2.3	 	Borrowers’ Joint and Several Liability. Unless expressly provided to the contrary,
each reference to the “Borrowers” in this Agreement and in the other Finance Documents shall
be construed as a reference to each or any one of them respectively and any reference to a
“Borrower” shall be construed as a reference to any or all of them and each obligation of the
Borrowers imposed by this Agreement shall be construed as creating joint and several
obligations on each of the Borrowers, and the provisions of this Agreement shall be applied
accordingly. Each Borrower agrees and consents to be bound by this Agreement notwithstanding
that any of the other of them who was intended to be bound may not be effectively bound and
notwithstanding that this Agreement may be invalid or cease to be binding as a continuing
obligation or to be unenforceable against any other of them whether or not the deficiency is
known to the others or to the Lenders. The Lenders shall, subject to the terms of this
Agreement, be at liberty to release any Borrower from its obligations under this Agreement and
to compound with or otherwise vary or agree to vary the liability of or to grant time or
indulgence to or make other arrangements with any of them without prejudicing or affecting the
rights and remedies of the Lenders against the other Borrower.
	 
	3.	 	CONDITIONS PRECEDENT
	 
	3.1	 	Conditions. The Lender shall not be obliged to make the Advance to the Borrowers
unless it shall have received:

	 	 	 	Loan Agreement
	 
	 	(a)	 	this Agreement duly executed by the Borrowers and the Corporate Guarantor;
	 
	 	 	 	Corporate Documents
	 
	 	(b)	 	in relation to each Borrower, certified true copies of:

	 	(i)	 	its certificate of incorporation, memorandum and articles of
association;
	 
	 	(ii)	 	its current Hong Kong business registration certificate;
	 
	 	(iii)	 	a list of its directors with their specimen signatures;

8

 

	 	(iv)	 	a list of its shareholders and their respective shareholdings;
	 
	 	(v)	 	resolutions of its board of directors approving the borrowing
and the giving of security on the terms of this Agreement and the Security
Documents to which it is a party and authorising a person or persons to execute
this Agreement, the relevant Security Documents, all Notices of Drawing and any
other notices or documents required in connection herewith or therewith, and
the specimen signature(s) of such person(s);

	 	(c)	 	in relation to the Corporate Guarantor, certified true copies of:

	 	(i)	 	each of the documents mentioned in paragraph (b) (i) and (iii)
inclusive mutatis mutandis;
	 
	 	(ii)	 	resolutions of its board of directors approving the execution
of this Agreement and the relevant Security Documents to which it is a party
and authorising a person or persons to execute this Agreement, such Security
Documents and any other notices and documents required in connection therewith,
and the specimen signature(s) of such person(s);

	 	(d)	 	in relation to Shenzhen Mindray, certified true copies of :

	 	(i)	 	its articles of association;
	 
	 	(ii)	 	its current business licence issued by the SAIC;
	 
	 	(iii)	 	its certificate of approval and approval documents issued by
MOC with respect to its establishment and article of association;
	 
	 	(iv)	 	a list of its directors with their specimen signatures;
	 
	 	(v)	 	resolutions of its board of directors approving the execution
of the relevant Security Documents to which it is a party and the transactions
contemplated thereunder and authorising a person or persons to execute such
Security Documents and any other notices or documents required in connection
therewith;
	 
	 	(vi)	 	the verification report issued by a public accountant
acceptable to the Lender showing that all its registered capital in the amount
of RMB350,000,000 has fully been paid up by the Borrowers;

	 	(e)	 	in relation to each of the Individual Guarantors, certified true copies of his
PRC passport;
	 
	 	 	 	Security Documents
	 
	 	(f)	 	the Corporate Guarantee duly executed by the Corporate Guarantor;
	 
	 	(g)	 	the Individual Guarantee duly executed by each Individual Guarantor together
with the related warning notices;

9

 

	 	(h)	 	the Undertaking Letter duly executed by Shenzhen Mindray;
	 
	 	(i)	 	the Subordination Deed (MRH) duly executed by the Corporate Guarantor and MRH;
	 
	 	(j)	 	the Subordination Deed (MRI) duly executed by the Corporate Guarantor and MRI;
	 
	 	(k)	 	the Charge over Account (MRH) duly executed by MRH and all other documents
required pursuant thereto;
	 
	 	(l)	 	the Charge over Account (MRI) duly executed by MRI and all other documents
required pursuant thereto;
	 
	 	(m)	 	the Floating Charge (MRH) duly executed by MRH;
	 
	 	(n)	 	the Floating Charge (MRI) duly executed by MRI;
	 
	 	 	 	Miscellaneous
	 
	 	(o)	 	evidence satisfactory to the Lender that the Shenzhen Mindray Deposit, being a
deposit of not less than RMB300,000,000 have been deposited with BOC (HK) Shenzhen;
	 
	 	(p)	 	evidence satisfactory to the Lender that deposits or principal protection
financial products of such nature and quantities acceptable to the Lender in an
aggregate value (calculated at the time when such deposits or financial products are
deposited into the Shenzhen Mindray Securities Account) of not less than RMB600,000,000
(or its equivalent amount in any other currency(ies) acceptable to the Lender) have
been deposited with and standing to the credit of the Shenzhen Mindray Securities
Account;
	 
	 	(q)	 	certified copy of the Acquisition Agreement;
	 
	 	(r)	 	evidence satisfactory to the Lender that the Group has financial resources for
the payment of not less than $60,060,000 as the balance of the Acquisition Cost;
	 
	 	(s)	 	evidence that all authorisations have been obtained and all necessary filings,
registrations and other formalities have been or will be completed in order to ensure
that the Finance Documents are valid and enforceable and to preserve the Lender’s
priority under any Security Document (the Lender’s legal counsel shall file the Charge
over Account (MRH), the Charge over Account (MRI), the Floating Charge (MRH) and the
Floating Charge (MRI) with the Hong Kong Companies Registry, which are the only actions
required to be undertaken in Hong Kong with effect to this condition);
	 
	 	(t)	 	legal opinions from counsels to the Lender covering such matters of Hong Kong
and Cayman Islands in form and substance reasonably satisfactory
to the Lender;

10

 

	 	(u)	 	written confirmation of acceptance of appointment from each agent for service
of process named in each other Finance Document.

	3.2	 	Form of Documents and Evidence. All the documents and evidence referred to in Clause
3.1 shall be in form and substance reasonably satisfactory to the Lender. Copies required to
be certified shall be certified in a manner satisfactory to the Lender by a director or
responsible officer of the Borrowers or other party concerned.
	 
	4.	 	ADVANCES
	 
	4.1	 	Availability of Advances. Subject to Clause 4.2 and the other terms and conditions
of this Agreement, the Borrowers may request the making of the Advance up to the full amount
available under the Facility on any Business Day during the Availability Period.
	 
	4.2	 	Conditions to the Making of Advances. The making of the Advance is also subject to
the conditions that:

	 	(a)	 	the requirements of Clause 3 shall have been satisfied before the Notice of
Drawing is given or at such later time as the Lender may agree;
	 
	 	(b)	 	the Lender shall have received not later than 12:00 noon (Hong Kong time) on
the second (2nd) Business Day before the date on which the Advance is to be
made a duly completed and signed original Notice of Drawing;
	 
	 	(c)	 	the Lender shall have received evidence satisfactory to it that:

	 	(i)	 	the full amount of the Acquisition Cost has become due and
payable;
	 
	 	(ii)	 	the proceeds of the Facility has been or will be
contemporaneously with the making of the Advance deposited with an account of
the Vendor for the payment of the Acquisition Cost; and
	 
	 	(iii)	 	the balance of the Acquisition Cost has been or will be
contemporaneously with the making of the Advance fully paid by the Group to
the Vendor.

	 	(d)	 	the Lender shall be satisfied that the Advance will not result in the Loan
being in excess of 70% of the Acquisition Cost;
	 
	 	(e)	 	no Event of Default or Potential Event of Default shall have occurred (or will
occur as a result of the Advance being made) and all representations and warranties
made by the Borrowers in or in connection with this Agreement shall be true and correct
in all material respects as at the date such Advance is to be made with reference to
the facts and circumstances then subsisting; and
	 
	 	(f)	 	not later than 11:00 a.m. (Hong Kong time) on the date on which the Advance

11

 

	 	 	 	is to be made, the Lender shall have received and found satisfactory such additional
information, legal opinions and documents relating to the Borrowers or any Security
Provider or any Finance Document as the Lender may reasonably require as a result of
circumstances arising or becoming known to the Lender since the date of this
Agreement.

	4.3	 	Notice of Drawing Irrevocable. The Notice of Drawing once given shall be irrevocable
and the Borrowers shall be bound to draw the Advance in accordance therewith, except as
otherwise provided in this Agreement. If for any reason the Advance is not made in accordance
with the Notice of Drawing, the Borrowers shall on demand pay to the Lender such amount (if
any) as the Lender may certify to be necessary to compensate it for any loss or expense
incurred in liquidating or redeploying funds arranged for the purpose of the proposed Advance
or in terminating any such arrangement or any hedging arrangement in respect of this Agreement
or otherwise as a consequence of the proposed Advance not having been made in accordance with
the Notice of Drawing.
	 
	4.4	 	Cancellation. Any part of the Facility undrawn at the end of the Availability Period
shall be cancelled.
	 
	5.	 	INTEREST
	 
	5.1	 	Interest. The Borrowers shall pay interest on the Loan in accordance with the
provisions of this Clause.
	 
	5.2	 	Interest Periods. The Interest Periods applicable to the Loan shall be one (1), two
(2), three (3) or (subject to availability) six (6) months as selected by the Borrowers in
accordance with Clause 5.3, Provided that:

	 	(a)	 	the first Interest Period in relation to the Advance shall commence on the date
on which the Advance is made;
	 
	 	(b)	 	each subsequent Interest Period shall commence on the last day of the preceding
Interest Period;
	 
	 	(c)	 	any Interest Period which would otherwise end on a non–Business Day shall
instead end on the next following Business Day or, if that Business Day is in another
calendar month, on the immediately preceding Business Day;
	 
	 	(d)	 	if any Interest Period commences on the last Business Day of a calendar month
or on a day for which there is no numerically corresponding day in the calendar month
one (1), two (2), three (3) or six (6) months thereafter as the case may be, that
Interest Period shall, subject to paragraph (e), end on the last Business Day of such
later calendar month; and
	 
	 	(e)	 	any Interest Period which would otherwise extend beyond a Repayment Date shall
instead end on that Repayment Date, subject to adjustment in accordance with Clause
11.4.

12

 

	5.3	 	Selection. Subject to Clause 5.2, the Borrowers may select the length of an Interest
Period by written notice to be received by the Lender not later than 12:00 noon (Hong Kong
time) on the third (3rd) Business Day before the start of that Interest Period, and
if the Borrowers do not give such a notice it shall be deemed to have selected a three (3)
month Interest Period.
	 
	5.4	 	Unavailability of Deposits. If the Borrowers selects a six (6) month Interest Period
and the Lender determines (which determination shall be conclusive and binding) that six (6)
month deposits in the relevant amount and currency are not for the time being available in the
London interbank market, the Borrowers shall, subject as aforesaid, be deemed to have selected
a three (3) month Interest Period.
	 
	5.5	 	Rate and Calculation. The rate of interest applicable to the Loan or the relevant
part thereof for each Interest Period shall be the rate per annum determined by the Lender to
be the aggregate of LIBOR for that Interest Period and the Margin. Interest shall accrue from
day to day, shall be calculated on the basis of the actual number of days elapsed and a 360
day year, including the first day of the period during which it accrues but excluding the
last, and shall be paid in arrear on each Interest Payment Date.
	 
	6.	 	REPAYMENT, PREPAYMENT AND CANCELLATION
	 
	6.1	 	Repayment. The Borrowers shall repay the Loan by three (3) successive instalments on
the following dates and in the following amount:

	 	 	 	 	 
	Instalment	 	Date of Repayment	 	Repayment Amount
	1st

	 	the date falling 13 months
after the date of Advance
	 	US$47,100,000
	 
	 	 	 	 
	2nd

	 	the date falling 15 months
after the date of Advance
	 	US$47,100,000
	 
	 	 	 	 
	3rd

	 	the date falling 18 months
after the date of Advance
	 	US$47,200,000

	 	 	Any prepayment pursuant to Clause 6.2 or cancellation pursuant to Clause 4.4 or 6.5 shall
reduce the amount of the repayment instalments in forward order of maturity.
	 
	6.2	 	Voluntary Prepayment. The Borrowers may prepay all or part of the Loan on any
Business Day after the end of the Availability Period, Provided that:

	 	(a)	 	the Borrowers shall have given to the Lender not less than seven (7) Business
Days’ prior written notice specifying the amount and date of prepayment;
	 
	 	(b)	 	the amount of any partial prepayment shall be at least US$1,000,000 and an
integral multiple thereof (except for the prepayment of the remaining balance of the
Loan);

13

 

	 	(c)	 	all other sums then due and payable under this Agreement shall have been paid;
and
	 
	 	(d)	 	if the prepayment is made on a date falling within nine (9) months after the
date of the Advance, at the time of prepayment the Borrowers shall pay to the Lender a
prepayment fee equal to 0.1% of the amount prepaid;
	 
	 	(e)	 	if such prepayment is not made on the last day of an Interest Period applicable
to the amount to be prepaid, the Borrower shall also pay to the Lender the amount
required under Clause 6.4.

	6.3	 	Provisions applicable to Prepayments. Any notice of prepayment given by the
Borrowers under any provision of this Agreement shall be irrevocable and the Borrowers shall
be bound to make a prepayment in accordance therewith. The Borrowers may not prepay the Loan
or any part thereof except in accordance with the express terms of this Agreement. Amounts
prepaid may not be reborrowed under this Agreement.
	 
	6.4	 	Other Amounts. If the Loan or any part thereof is prepaid under any provision of
this Agreement on a date other than the last day of an Interest Period, the Borrowers shall
also pay to the Lender:

	 	(a)	 	at the time of prepayment, all interest and commitment fee (if any) accrued up
to the date of prepayment and all other sums payable by the Borrowers under this
Agreement; and
	 
	 	(b)	 	on demand, such amount as the Lender may calculate (with reasonable
computation) to be necessary to compensate it for any loss or expense incurred as a
consequence of such prepayment (including any loss incurred in liquidating or
redeploying funds acquired to fund or maintain the Loan or in terminating any such
arrangement or any hedging arrangement in respect of this Agreement).

	6.5	 	Voluntary Cancellation. The Borrowers may cancel all or any part of the undrawn
Facility before the end of the Availability Period by giving to the Lender not less than seven
(7) Business Days’ prior written notice, Provided that:

	 	(a)	 	the amount of any partial cancellation shall be at least US$1,000,000 and an
integral multiple thereof (except for the cancellation of the remaining balance of the
Facility); and
	 
	 	(b)	 	on the date on which the cancellation is to take effect the Borrowers shall pay
to the Lender a cancellation fee equal to 0.2% of the amount cancelled.

	 	 	Once given, any such notice of cancellation shall be irrevocable.
	 
	6.6	 	Final Repayment. The balance (if any) of the Loan together with all accrued interest
and other monies outstanding in connection with the Facility shall be repaid on the date of
the last repayment instalment ascertained pursuant to this Clause.

14

 

	7.	 	MARKET DISRUPTION
	 
	7.1	 	Market Disruption. If in relation to any Interest Period the Lender determines
(which determination shall be conclusive and binding) that:

	 	(a)	 	by reason of circumstances affecting the London interbank market generally,
adequate and fair means do not exist for ascertaining LIBOR for that Interest Period;
or
	 
	 	(b)	 	deposits in Dollars in the required amount for the relevant Interest Period are
not available to the Lender in the London interbank market or that LIBOR does not
adequately reflect the cost to the Lender of obtaining funds for that Interest Period,

	 	 	the Lender shall promptly notify the Borrowers accordingly, and no Advance shall be made
unless and until an alternative basis is agreed in accordance with Clause 7.2.
	 
	7.2	 	Alternative Basis by Agreement. Immediately following such notification, the parties
hereto shall negotiate in good faith with a view to agreeing upon an alternative basis for
funding the Loan and determining the applicable interest rate, periods and payment dates. If
an alternative basis is agreed in writing within a period of thirty (30) days after such
notification or such longer period for discussion as the parties may agree, the alternative
basis shall take effect in accordance with its terms.
	 
	7.3	 	Alternative Basis Determined by Lender for Outstanding Advances. If an alternative
basis is not so agreed and the Advance has been made, the Borrowers shall pay interest to the
Lender on the Loan for the relevant Interest Period at the rate per annum determined by the
Lender to be equal to the aggregate of (a) the Margin and (b) the cost (expressed as an annual
interest rate) to the Lender of funding or maintaining the Loan during the relevant Interest
Period.
	 
	7.4	 	Cancellation and Prepayment. If an alternative basis is not so agreed pursuant to
Clause 7.2:

	 	(a)	 	if no Advance has been made, the Facility shall be cancelled and all sums
outstanding under this Agreement shall be paid to the Lender at the end of the period
for negotiation ascertained in accordance with Clause 7.2; or
	 
	 	(b)	 	if the Advance has been made, the Borrowers may elect to prepay the Loan, by
giving written notice to the Lender specifying a prepayment date which is not less than
seven (7) Business Days after such notice is given. On the specified date the Facility
shall be cancelled and the Borrowers shall prepay the Loan in full together with
interest thereon from the beginning of the relevant Interest Period to the date of
prepayment. For this purpose, the interest rate from time to time applicable to the
Loan shall be the rate ascertained in accordance with Clause 7.3 in relation to the
relevant period.

15

 

	8.	 	CHANGE OF LAW OR CIRCUMSTANCES
	 
	8.1	 	Unlawfulness. If it becomes, or it becomes apparent that it is or will be, unlawful
or contrary to any requirement of any governmental, fiscal, monetary or other authority
(whether or not having the force of law) for the Lender to give effect to its obligations
hereunder, the Lender shall so notify the Borrowers, whereupon the Facility shall be
cancelled. The Borrowers shall forthwith after such notification, or such longer period as
the Lender may certify as being permitted by the relevant law, prepay the Loan in full
together with interest accrued thereon to the date of prepayment and any other monies owing
hereunder.
	 
	8.2	 	Increased Cost. If the Lender determines that the introduction of, or any change in,
any applicable law or regulation or in the interpretation or application thereof or compliance
by the Lender or any Holding Company of the Lender with any applicable direction, request or
requirement (whether or not having the force of law, and including any such direction, request
or requirement which affects the manner in which the Lender or any Holding Company of the
Lender is required to or does allocate or maintain capital in support of its assets or
liabilities) of any competent governmental, monetary, fiscal or other authority does or will:

	 	(a)	 	subject the Lender or any Holding Company of the Lender to any tax or other
payment with reference to sums advanced or to be advanced by the Lender or payable by
the Borrowers under this Agreement (except (i) tax on the Lender’s overall net income
in the jurisdiction of its principal office or (ii) as referred to in Clause 9); or
	 
	 	(b)	 	impose on the Lender or any Holding Company of the Lender any other condition
the effect of which is to (i) increase the cost to the Lender or its Holding Company of
the Lender making available the Facility or funding or maintaining the Loan or (ii)
reduce the amount of any payment receivable by, or the effective return to, the Lender
in respect of the Facility or (iii) impose a cost on the Lender or any Holding Company
of the Lender resulting from its making available the Facility or funding or
maintaining the Loan;

the Lender may so notify the Borrowers, and the Borrowers shall from time to time upon
demand (whether or not the Loan has been repaid) pay to the Lender such amounts as the
Lender may certify to be necessary to compensate it or its Holding Company for such tax,
payment, increased cost or reduction (each an “increased cost”). Where such increased cost
arises from circumstances contemplated above which affect the Lender’s business generally or
the manner in which or extent to which the Lender allocates capital resources, the Lender
shall be entitled to such increased cost as it determines and certifies is fairly allocable
to the Facility and/or the Loan. Nothing in this Clause 8.2 shall require the Lender to
disclose confidential information relating to the organisation of its business or the
business of any Holding Company. The Borrowers and the Lender shall discuss whether any
alternative arrangement may be made to avoid such increased cost. So long as the
circumstances giving rise to such increased cost continue, the Borrowers may, after giving
the Lender not less than thirty (30) days’ prior written notice, prepay the whole (but not
only part) of the Loan in accordance with Clauses 6.3 and 6.4 without payment of any further
fee or premium, and upon the giving of such notice the Facility shall be
cancelled.

16

 

	9.	 	TAXES AND OTHER DEDUCTIONS
	 
	9.1	 	No Deductions or Withholdings. All sums payable by the Borrowers under this
Agreement shall be paid in full without set–off or counterclaim or any restriction or
condition and free and clear of any tax or other deductions or withholdings of any nature. If
the Borrowers or any other person is required by any law or regulation to make any deduction
or withholding (on account of tax or otherwise) from any payment, the Borrowers shall,
together with such payment, pay such additional amount as will ensure that the Lender receives
(free and clear of any tax or other deductions or withholdings) the full amount which it would
have received if no such deduction or withholding had been required. The Borrowers shall
promptly forward to the Lender copies of official receipts or other evidence showing that the
full amount of any such deduction or withholding has been paid over to the relevant taxation
or other authority.
	 
	9.2	 	Advance Notification. If at any time the Borrowers become aware that any such
deduction, withholding or payment contemplated by Clause 9.1 is or will be required, it shall
immediately notify the Lender and supply all available details thereof.
	 
	10.	 	FEES AND EXPENSES
	 
	10.1	 	Arrangement Fee. The Borrowers shall pay to the Lender an arrangement fee of
US$890,820 within seven (7) Business Days after the date of this Agreement but in any event
before the date of the Advance. This fee is non-refundable under all circumstances.
	 
	10.2	 	Expenses. The Borrowers shall forthwith on demand and whether or not the Advance is
made pay to or reimburse the Lender for all reasonable costs, charges and expenses (including
legal and other fees on a full indemnity basis and printing, translation, communication,
advertisement, travel and all other out–of–pocket expenses) incurred by it in connection with:

	 	(a)	 	the negotiation, preparation, execution and (where relevant) registration of
the Finance Documents and any other documentation required thereunder;
	 
	 	(b)	 	the arrangement of the Facility;
	 
	 	(c)	 	any amendment to any Finance Document; and
	 
	 	(d)	 	any inspection, calculation, approval, consent or waiver to be conducted, made
or given by the Lender pursuant to any provision of any Finance Document.

	10.3	 	Enforcement Costs. The Borrowers shall from time to time forthwith on demand pay to
or reimburse the Lender for all costs, charges and expenses (including legal and other fees on
a full indemnity basis and all other out–of–pocket expenses) incurred by it in exercising any
of its rights or powers under any Finance Document or in suing

17

 

	 	 	for or seeking to recover any sums due under any Finance Document or otherwise preserving or
enforcing its rights under any Finance Document or in defending any claims brought against
it in respect of any Finance Document or in releasing or re–assigning any Security Document.
	 
	10.4	 	Taxes. The Borrowers shall pay all present and future stamp and other like duties
and taxes and all notarial, registration, recording and other like fees which may be payable
in respect of any Finance Document and shall indemnify the Lender against all liabilities,
costs and expenses which may result from any default in paying such duties, taxes or fees.
	 
	11.	 	PAYMENTS AND EVIDENCE OF DEBT
	 
	11.1	 	Advances. Amounts to be advanced by the Lender under this Agreement shall be made
available to the Borrowers by payment to such account of the Vendor for the payment of the
Acquisition Cost in New York City as the Borrowers shall have previously agreed with the
Lender.
	 
	11.2	 	Payments by Borrowers. All payments by the Borrowers under this Agreement shall be
made to the Lender by the Lender debiting (and the Borrowers hereby irrevocably authorise the
Lender to debit) the relevant amount from the MRH Account and/or the MRI Account in accordance
with relevant provisions under the Finance Documents or by remittance to the Lender via CHATS
(quoting the references as from time to time specified by the Lender).
	 
	11.3	 	Allocation of Receipts. If any amount received by the Lender is less than the full
amount due, the Lender shall have the right to allocate the amount received towards principal,
interest and/or other sums owing hereunder as it considers appropriate.
	 
	11.4	 	Business Days. If any sum would otherwise become due for payment on a non–Business
Day that sum shall become due on the next following Business Day and interest shall be
adjusted accordingly, except that if any repayment due under Clause 6.1 would then become due
in another calendar month such repayment shall become due on the immediately preceding
Business Day.
	 
	11.5	 	Evidence of Debt. The Lender shall maintain on its books in accordance with its
usual practice a set of accounts recording the amounts from time to time owing by the
Borrowers hereunder. In any legal proceeding and otherwise for the purposes of this Agreement
the entries made in such accounts shall, in the absence of manifest error, be conclusive and
binding on the Borrowers as to the existence and amounts of the obligations of the Borrowers
recorded therein.
	 
	11.6	 	Certificate Conclusive and Binding. Where any provision of this Agreement provides
that the Lender may certify or determine an amount or rate payable by the Borrowers, a
certificate by the Lender as to such amount or rate shall be conclusive and binding on the
Borrowers in the absence of manifest error.

18

 

	12.	 	REPRESENTATIONS AND WARRANTIES
	 
	12.1	 	Representations and Warranties. Each of the Borrowers and the Corporate Guarantor
represents and warrants to the Lender that:

	 	(a)	 	Status: in respect of each of the Borrowers, it is a company duly
incorporated with limited liability and validly existing under the laws of Hong Kong,
in respect of the Corporate Guarantor, it is an exempted company with limited liability
and validly existing under the laws of the Cayman Islands, and each has full power and
capacity, authority and legal right to own its property and assets and to carry on its
business;
	 
	 	(b)	 	Power and authority: it has full power and capacity, authority and
legal right to enter into and engage in the transactions contemplated by the Finance
Documents to which it is a party and has taken or obtained all necessary corporate and
other action and consents to authorise the execution and performance of the Finance
Documents to which it is a party;
	 
	 	(c)	 	Binding obligations: subject to the qualifications contained in the
legal opinions referred to in Clause 3.1(t), the Finance Documents to which it is a
party constitute, or when executed and delivered will constitute its legal, valid and
binding obligations enforceable in accordance with their terms;
	 
	 	(d)	 	No conflict with other obligations: neither the execution of the
Finance Documents to which it is a party nor the performance by it of any of its
obligations or the exercise of any of its rights thereunder will conflict with or
result in a breach of any law, regulation, judgment, order, authorisation, agreement or
obligation applicable to it or cause any limitation placed on it or the powers of its
directors to be exceeded or result in the creation of or oblige it to create an
Encumbrance in respect of any of its property or assets except in favour of the Lender
under or pursuant to the Security Documents to which it is a party or otherwise
permitted by Clause 13.2(g);
	 
	 	(e)	 	Authorisations: all authorisations required from any governmental or
other authority or from any of its shareholders or creditors for or in connection with
the execution, validity and performance of the Finance Documents to which it is a party
have been obtained and are in full force and effect or, by the date on which the Notice
of Drawing is given, will have been obtained and be in full force and effect and there
has been no default under the conditions of any of the same;
	 
	 	(f)	 	No filings or taxes: except for (i) the keeping of a register of
mortgages and charges in respect of the Subordination Deed (MRH) and the Subordination
Deed (MRI) at the registered office of the Corporate Guarantor, (ii) the registration
of the Charge over Account (MRH), the Charge over Account (MRI), the Floating Charge
(MRH) and the Floating Charge (MRI) with the Hong Kong Companies Registry, it is not
necessary in order to ensure the validity, enforceability, priority or admissibility in
evidence in proceedings of any of the Finance Documents in Hong Kong, Cayman Islands,
PRC, New York or any other relevant jurisdiction that any of them or any other document

19

 

	 	 	 	be filed or registered with any authority in Hong Kong, Cayman Islands, PRC, New
York or elsewhere or that any tax be paid in respect thereof;
	 
	 	(g)	 	No litigation: no litigation, arbitration or administrative proceeding
is currently taking place or pending or, to its knowledge, threatened against it or its
assets or revenues that would reasonably be likely to result in a Material Adverse
Effect;
	 
	 	(h)	 	No default: it is not in default under any law, regulation, judgment,
order, authorisation, agreement or obligation applicable to it or its assets or
revenues, the consequences of which default could have a Material Adverse Effect, and
no Event of Default or Potential Event of Default has occurred;
	 
	 	(i)	 	No Encumbrances: no Encumbrance exists over all or any part of its
property, assets or revenues except as created by the Security Documents or liens
arising by operation of law in the ordinary course of business or as previously
disclosed in writing to and agreed by the Lender or otherwise permitted by Clause
13.2(g);
	 
	 	(j)	 	No indebtedness: it has no indebtedness to any party except
indebtedness (including trade payables) arising in the ordinary course of its business
or as previously disclosed in writing to and agreed by the Lender or otherwise
permitted by Clause 13.2(h);
	 
	 	(k)	 	Financial statements: in respect of the Borrowers and the Corporate
Guarantor only, its most recent audited consolidated financial statements for the time
being (including the audited profit and loss account and balance sheet) were prepared
in accordance with applicable laws and regulations and generally accepted accounting
principles and policies consistently applied and present fairly in all material
respects its consolidated financial position as at the end of, and the consolidated
results of its operations for, the financial period to which they relate and, as at the
end of such period it did not have any significant liabilities (contingent or
otherwise) or any unrealised or anticipated losses which are not disclosed by or
reserved against in, such financial statements, and there has been no material adverse
change in its business or financial condition since the date of such financial
statements;
	 
	 	(l)	 	No misleading information: all information provided to the Lender by
or on its behalf in connection with the Facility is true and accurate in all material
respects and all forecasts and projections contained therein were prepared in good
faith based on assumptions believed by it to be reasonable as of the date of delivery
thereof; none of the financial statements or other information furnished by it to the
Lender in connection with the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading;
	 
	 	(m)	 	No immunity: it is generally subject to civil and commercial law and
to legal proceedings and neither it nor any of its assets or revenues is entitled to
any

20

 

	 	 	 	immunity or privilege (sovereign or otherwise) from any set–off, judgment,
execution, attachment or other legal process.

	12.2	 	Continuing Representation and Warranty. Each of the Borrowers and the Corporate
Guarantor also represents and warrants to and undertakes with the Lender that the foregoing
representations and warranties will be true and accurate in all material respects throughout
the continuance of this Agreement with reference to the facts and circumstances subsisting
from time to time.
	 
	12.3	 	Acknowledgment of Reliance. Each of the Borrowers and the Corporate Guarantor
acknowledges that the Lender has entered into this Agreement in reliance upon the
representations and warranties contained in this Clause.
	 
	13.	 	UNDERTAKINGS
	 
	13.1	 	Affirmative Undertakings. Each of the Borrowers and the Corporate Guarantor
undertakes and agrees with the Lender throughout the continuance of the Finance Documents and
so long as any sum remains owing thereunder that it will, unless the Lender otherwise agrees
in writing:

	 	(a)	 	Financial and other information: supply to the Lender:

	 	(i)	 	as soon as they are available, but in any event within one
hundred and eighty (180) days after the end of each financial year of the
Group, copies of consolidated financial statements in respect of such financial
year (including a consolidated profit and loss account and balance sheet)
audited and certified without qualification by Deloitte & Touche LLP or another
internationally recognised firm of independent accountants reasonably
acceptable to the Lender;
	 
	 	(ii)	 	as soon as they are available, but in any event within ninety
(90) days after the end of each quarter of each financial year of the Group,
copies of its unaudited consolidated financial statements (including a
consolidated profit and loss account and balance sheet) prepared on a basis
consistent with its audited financial statements (subject to normal year-end
audit adjustments and the absence of footnotes) together with a certificate
signed by its chief financial officer to the effect that such financial
statements present fairly in all material respects its financial position as at
the end of, and the results of its operations for, such period;
	 
	 	(iii)	 	as soon as they are available, but in any event within ninety
(90) days after the end of each half year of each of the financial year of
Shenzhen Mindray, copies of its management accounts (containing such details as
are customarily contained in management accounts of Shenzhen Mindray), together
with a certificate signed by its chief financial officer to the effect that the
information in such accounts is true and accurate in all material respects;

21

 

	 	(iv)	 	as soon as they are available, but in any event within one
hundred and eighty (180) days after the end of the financial year of Shenzhen
Mindray, copies of the financial statements of Shenzhen Mindray in respect of
such financial year (including a consolidated profit and loss account and
balance sheet) audited and certified without qualification by Deloitte & Touche
LLL or another internationally recognised firm of independent accountants
reasonably acceptable to the Lender;
	 
	 	(v)	 	in respect of the Borrowers only, within thirty (30) days of
each date for the provision of the accounts referred to in (i) and (ii) above,
a certificate signed by its chief financial officer certifying that there did
not exist any Event of Default or Potential Event of Default as at the end of
such period (or if an Event of Default or Potential Event of Default did exist
specifying the same);
	 
	 	(vi)	 	in respect of the Corporate Guarantor, at the time of issue,
copies of all statements and circulars to the shareholders generally or to any
class of creditors of the Guarantor;
	 
	 	(vii)	 	promptly inform the Lender if there is any adjustment in
respect of the Acquisition Cost in accordance with the provisions of the
Acquisition Agreement and provide the Lender with such relevant information to
the Lender as it may reasonably request;
	 
	 	(viii)	 	promptly on request, such additional financial or other information
(including, but not limited to, consolidated cashflows and profit and loss
projections) relating to it and any Security Provider (other than the
Individual Guarantors) and any member of the Group as the Lender may from time
to time reasonably request;

	 	(b)	 	Books and records: keep proper records and books of account in respect
of its business and permit the Lender and/or any professional consultants appointed by
the Lender at all reasonable times after an Event of Default or Potential Event of
Default to inspect and examine its records and books of account;
	 
	 	(c)	 	Notification of default: promptly inform the Lender of:

	 	(i)	 	the occurrence of any Event of Default or Potential Event of
Default;
	 
	 	(ii)	 	any litigation, arbitration or administrative proceeding as
referred to in Clause 12.1(g);

	 	(d)	 	Compliance with laws: maintain its corporate existence and conduct its
business in compliance with all laws, regulations, authorisations, agreements and
obligations applicable to it and pay all taxes imposed on it when due except for such
non-compliance which would not reasonably be expected to cause a Material Adverse
Effect;
	 
	 	(e)	 	Ownership: procure that:

22

 

	 	(i)	 	Mr. Li and Mr. Xu shall at all times in aggregate beneficially
own (whether directly or indirectly) not less than 51% of the voting rights in
the Corporate Guarantor;
	 
	 	(ii)	 	the Corporate Guarantor shall at all times beneficially own
(whether directly or indirectly) not less than 100% of the shareholding and
voting rights in each of the Borrowers;
	 
	 	(iii)	 	the Borrowers shall at all times in aggregate beneficially own
(whether directly or indirectly) not less than 99% of the ownership interests
or shareholding and voting rights in Shenzhen Mindray;

	 	(f)	 	Amendments to constitution: procure that no amendment or supplement is
made to its memorandum or articles of association without the prior written consent of
the Lender except those amendment or supplement which would not be reasonably expected
to cause a Material Adverse Effect;
	 
	 	(g)	 	Authorisations: maintain in full force and effect all such
authorisations as are referred to in Clause 12.1(e), and take immediate steps to obtain
and thereafter maintain in full force and effect any other authorisations which may
become necessary or advisable for the purposes stated therein and comply with all
conditions attached to all authorisations obtained;
	 
	 	(h)	 	Ranking of obligations: ensure that its obligations under this
Agreement and the Corporate Guarantee at all times rank at least pari passu with all of
its unsecured and unsubordinated obligations;
	 
	 	(i)	 	Use of proceeds: in respect of the Borrowers only, use the Facility
exclusively for the purposes specified in Clause 2.2;
	 
	 	(j)	 	Payment obligations: punctually pay all sums due from it to the Lender
and otherwise comply with its obligations under the Finance Documents to which it is a
party;
	 
	 	(k)	 	Dividend Payment: in respect of any financial year of the Borrowers,
procure that:

	 	(i)	 	Shenzhen Mindray shall hold board and shareholders meetings to
approve and resolve that the aggregate dividends to be paid by it to the
Borrowers in aggregate shall not be less than the total amount of dividends
required to be paid by Shenzhen Mindray to the Borrowers under the following
paragraph (ii); and
	 
	 	(ii)	 	the aggregate dividends actually paid by Shenzhen Mindray to
the Borrowers in aggregate shall not be less than the total amount of principal
and interest and all other sums scheduled to become due and payable by the
Borrowers to the Lender under the Finance Documents during such year and that
such dividends shall be paid to the Borrowers to enable the Borrowers to pay
the principal, interest and all other sums

23

 

	 	 	 	scheduled to become due and payable by the Borrowers to the Lender under the
Finance Documents in a timely manner, provided that:

	 	(A)	 	if in respect of any Repayment Date or Interest
Payment Date, (x) an amount equivalent to the repayment or payment of
interest required to be made on such Repayment Date or Interest Payment
Date has been deposited in the MRI Account and/or the MRH Account from
sources other than dividend payment or other payments or distributions
from Shenzhen Mindray to the Borrowers in their capacities as
shareholders of Shenzhen Mindray, the Shenzhen Mindray Deposit or the
Shenzhen Mindray Securities Account 30 days before such Repayment Date
or Interest Payment Date for making such repayment or payment of
interest (as the case may be), and (y) repayment or payment of interest
has actually been made by applying such amount; or
	 
	 	(B)	 	if in respect of any prepayment made pursuant
to any provision under the Finance Document, such prepayment is made
from sources other than dividend payment or other payments or
distributions from Shenzhen Mindray to the Borrowers in their
capacities as shareholders of Shenzhen Mindray, the Shenzhen Mindray
Deposit or the Shenzhen Mindray Securities Account,

	 	 	 	then, in each case, an amount equal to such repayment or payment of interest
or prepayment may be deducted from the amount of dividends required to be
paid by Shenzhen Mindray to the Borrowers under this paragraph (ii);
	 
	 	(iii)	 	any dividends and other income or cash distribution paid or to
be paid by Shenzhen Mindray to the Borrowers in their capacities as the
shareholders of Shenzhen Mindray shall be paid by Shenzhen Mindray directly to
either the MRH Account or the MRI Account to be held therein subject to the
provisions of the Charge over Account (MRH) and Charge over Account (MRI); no
amount can be withdrawn from such accounts, the MRH Deposits or MRI Deposits
except for making a principal repayment of the Loan or payment of interest or
any other sums owed to the Lender under the Finance documents;

	 	(l)	 	Principal and Interest Reserve: procure that, on the seventh
(7th) Business Day prior to a Repayment Date or any Interest Payment Date
and at all times thereafter up to the repayment required to be made on that Repayment
Date or the payment of interest required to be made on such Interest Payment Date (as
the case may be) has been fully made, the aggregate balance standing to the credit of
the MRH Account and the MRI Account and the MRH Deposits and the MRI Deposits shall in
aggregate exceed the aggregate amount of principal and/or interests scheduled to become
due and payable by the Borrowers under the Finance Documents on such Repayment Date or
Interest Payment Date (as the case may be);

24

 

	 	(m)	 	Shenzhen Mindray Deposit: procure that the amount of the Shenzhen
Mindray Deposit shall (i) at all times after the date of this Agreement exceed
RMB300,000,000, and (ii) at all times after 30 June 2008 exceed RMB400,000,000 provided
that in respect of each Repayment Date,

	 	(I)	 	a withdrawal may be made from such part of the Shenzhen Mindray
Deposit not later than the seventh Business Day prior to such Repayment Date if
the Lender is satisfied that the proceeds of such withdrawal will be directly
remitted to the MRH Account and/or MRI Account for making a repayment required
to be made by the Borrowers on such Repayment Date, and if all sums required to
be paid by the Borrowers on such Repayment Date has been paid, then the amount
of the Shenzhen Mindray Deposit required to be maintained under this paragraph
(m) shall be reduced in an amount equivalent to an amount applied for making a
principal repayment on such Repayment Date from the Shenzhen Mindray Deposit;
and
	 
	 	(II)	 	if an amount (from sources other than dividend payment or other
payments or distributions from Shenzhen Mindray to the Borrowers in their
capacities as shareholders of Shenzhen Mindray, the Shenzhen Mindray Deposit or
the Shenzhen Mindray Securities Account) equal to the principal, interest and
other sums required to be made on such Repayment Date has been deposited to the
MRI Account and/or the MRH Account 30 days before such Repayment Date for
making such payment, then if no Event of Default has occurred, Shenzhen Mindray
shall be entitled to withdraw such part of the Shenzhen Mindray Deposit in an
amount equivalent to the amount so deposited to the MRH Account and/or the MRI
Account for making a principal repayment on such Repayment Date and the amount
of the Shenzhen Mindray Deposit shall be reduced accordingly;
	 
	 	(III)	 	within seven (7) Business Days after such Repayment Date, if
(A) no Event of Default or Potential Event of Default has occurred and (B) all
sums required to be paid by the Borrowers on such Repayment Date have been
paid, then only with respect to the amount of principal repayment made on such
day which is not funded by the remittance made from the Shenzhen Mindray
Deposit or the Shenzhen Mindray Securities Account to the MRH Account and/or
the MRI Account for making a repayment required to be made on such Repayment
Date under (I) above and provided that a reduction with respect to the amount
of the Shenzhen Mindray Deposit required to be maintained has not been made in
accordance with paragraph (II) above, Shenzhen Mindray shall be entitled to
withdraw such part of the Shenzhen Mindray Deposit in an amount (such amount
shall be calculated at the prevailing Spot Rate) equivalent to the amount of
principal repayment made on such Repayment Date from sources other than the
Shenzhen Mindray Deposit and the amount of the Shenzhen Mindray Deposit
required to be maintained under this paragraph (m) shall be reduced
accordingly;

25

 

	 	(n)	 	Shenzhen Mindray Securities Account: procure that (i) the total value
of the Financial Products (calculated at the time when such Financial Products are
deposited into the Shenzhen Mindray Securities Account) deposited with the Shenzhen
Mindray Securities Account shall not be less than RMB600,000,000 and (ii) if the
Borrower shall thereafter withdraw, redeem, add, replace or otherwise transfer any
Financial Products to or from the Shenzhen Mindray Securities Account, the total value
of such Financial Products (calculated at the time of any such change) deposited in
such account shall not less than RMB600,000,000 (if any Financial Products are
denominated in a currency other than RMB, the value of such Financial Products shall be
calculated by the Lender by applying the prevailing Spot Rate of RMB on the applicable
date of deposit or change), provided that in respect of each Repayment Date,

	 	(I)	 	if the amount of the Shenzhen Mindray Deposit is or has been
reduced to zero, the Borrower may (through the Lender) instruct BOC Shenzhen to
sell or otherwise dispose of such part of the Financial Products deposited in
the Shenzhen Mindray Securities Account and remit the entire proceeds thereof
to the MRH Account and/or the MRI Account not later than the seventh Business
Day prior to such Repayment Date for making a repayment required to be made by
the Borrowers on such Repayment Date, and if all sums required to be paid by
the Borrowers on such Repayment Date has been paid, then the aggregate value of
the Financial Products required to be deposited in the Shenzhen Mindray
Securities Account under this paragraph (n) shall be reduced in an amount
equivalent to the value of Financial Products applied for making a principal
repayment on such Repayment Date; and
	 
	 	(II)	 	if an amount (from sources other than dividend payment or other
payments or distributions from Shenzhen Mindray to the Borrowers in their
capacities as shareholders of Shenzhen Mindray, the Shenzhen Mindray Deposit or
the Shenzhen Mindray Securities Account) equal to the principal, interest and
other sums required to be made on such Repayment Date has been deposited to the
MRI Account and/or the MRH Account 30 days before such Repayment Date for
making such payment, then if no Event of Default has occurred and if the amount
of the Shenzhen Mindray Deposit is or has been reduced to zero, Shenzhen
Mindray shall be entitled to withdraw Financial Products from the Shenzhen
Mindray Securities Account the aggregate value of which shall be equivalent to
the amount so deposited to the MRH Account and/or the MRI Account for making a
principal repayment on such Repayment Date, and the total value of the
Financial Products required to be deposited in the Shenzhen Mindray Securities
Account shall be reduced;
	 
	 	(III)	 	within seven (7) Business Days after such Repayment Date, if
(A) no Event of Default or Potential Event of Default has occurred, (B) all
sums required to be paid by the Borrowers on such Repayment Date have been paid
and (C) the amount of the Shenzhen Mindray Deposit has been reduced to zero,
then only with respect to the amount of

26

 

	 	 	 	principal repayment made on such day which is not funded by the Shenzhen
Mindray Deposit or the proceeds from any sale or disposal of Financial
Products that have been remitted to the MRH Account and/or the MRI Account
for making a repayment required to be made on such Repayment Date under (I)
above and provided that a reduction with respect to the value of the
Financial Products required to be maintained in the Shenzhen Mindray
Securities Account has not been made in accordance with paragraph (II)
above, Shenzhen Mindray shall be entitled to withdraw Financial Products
from the Shenzhen Mindray Securities Account the aggregate value of which
shall be equivalent to the amount of principal repayment made on such
Repayment Date from sources other than the Financial Products deposited in
the Shenzhen Mindray Securities Account less (if in respect of such
repayment made, a withdrawal has been made with respect to certain amount of
the Shenzhen Mindray Deposit in accordance with paragraph (m) above), an
amount equal to the amount withdrawn in respect of the Shenzhen Mindray
Deposit in accordance with paragraph (m) above (the “Actual Deducted
Amount”), and the total value of the Financial Products required to be
deposited in the Shenzhen Mindray Securities Account shall be reduced up to
the Actual Deducted Amount accordingly;

	 	(o)	 	Addition or Withdrawal from the Shenzhen Mindray Securities Account:
not withdraw, redeem, add, replace or otherwise transfer or deal with the Financial
Products deposited in the Shenzhen Mindray Securities Account unless five (5) Business
Days prior written notice has been given to the Lender for adjusting the interest
margin calculation;
	 
	 	(p)	 	Keyman Insurance: acknowledges that the Lender will take out a life
insurance policy (with the Lender being the policy owner) with respect to Mr. Xu with a
coverage of at least RMB200,000,000 with such insurer and on such terms as the Lender
may determine, each of the Borrowers undertakes that it will on demand pay all premium,
all fees and all other expenses which may be incurred by the Lender in respect thereof
from time to time;
	 
	 	(q)	 	Datascope’s Patient Monitoring Business: within six (6) months after
the date of the Advance, deliver a financial due diligence report (in form and
substance satisfactory to the Lender) dated a date not earlier than one (1) month of
its delivery on the Datascope’s Patient Monitoring Business issued by an independent
firm of international accountants acceptable to the Lender confirming, inter alia, that
the total liability (actual or contingent) of Datascope’s Patient Monitoring Business
does not exceed US$50,000,000.
	 
	 	(r)	 	Listing Status: ensure that all issued shares in the share capital of
the Guarantor will continue to be listed on the New York Stock Exchange and that the
trading of such shares will not be suspended for a period of more than seven (7)
consecutive trading days (excluding any day when trading is generally suspended on the
New York Stock Exchange) without the prior written consent of the Lender;

27

 

	 	(s)	 	Monitoring Agreements: within seven (7) Business Days after the date
of the Advance, deliver to the Lender (i) the Monitoring Agreement (Cash) duly executed
by the Borrowers, BOC (HK) Shenzhen and Shenzhen Mindray and (ii) the Monitoring
Agreement (Financial Products) duly executed by the Borrowers, BOC Shenzhen and
Shenzhen Mindray.

	13.2	 	Negative Undertakings. Each of the Borrowers and the Corporate Guarantor undertakes
and agrees with the Lender throughout the continuance of the Finance Documents and so long as
any sum remains owing thereunder that it will, unless the Lender otherwise agrees in writing:

	 	(a)	 	Merger: not merge or consolidate with any other entity or take any
step with a view to dissolution, liquidation or winding–up;
	 
	 	(b)	 	Reduction of capital: not purchase or redeem any of its issued shares
or reduce its share capital or make a distribution of assets or other capital
distribution to its shareholders or make a repayment in respect of any loans or other
indebtedness owing to any of its shareholders, except as permitted to make a dividend
payment under Clause 13.2(c) or (in respect of the Corporate Guarantor only) for the
buyback of employee equity upon the termination of employment;
	 
	 	(c)	 	Dividends: not declare or pay any dividend or make any other income
distribution to its shareholders, provided that if no Event of Default has occurred,
such declaration or payment of dividend may be made if, at the time of making such
declaration or payment, the aggregate amount of (i) the credit balance of the MRH
Account and the MRI Account, (ii) the MRI Deposits and the MRH Deposits, (iii) the
amount of the Shenzhen Mindray Deposit and (iv) the total value of the Financial
Products in the Shenzhen Mindray Securities Account are not, in each case, less than
the amounts required to be deposited in such relevant accounts;
	 
	 	(d)	 	Change of business: not materially change the nature of its business
from that carried on at the date of this Agreement (after giving effect to the
Acquisition) or reasonably similar or complementary thereto;
	 
	 	(e)	 	Disposals: procure that none of the Borrowers or Shenzhen Mindray or
the Corporate Guarantor shall sell, transfer or otherwise assign, deal with or dispose
of all or any part of its business or (except for good consideration or in the ordinary
course of its business) its assets or revenues, whether by a single transaction or by a
number of transactions whether related or not;
	 
	 	(f)	 	Lending; guarantees: procure that none of the Borrowers or Shenzhen
Mindray or the Corporate Guarantor shall make or grant any loan or advance or guarantee
or in any other manner be or become directly or indirectly or contingently liable for
any indebtedness or other obligation of any other person, except in each case
indebtedness (including trade payables), loans, advance or guarantee as may be
necessary in the ordinary course of its business or otherwise permitted by Clause 13.2
(h)(i) and (ii) and (iii);

28

 

	 	(g)	 	Negative pledge: procure that none of the Borrowers or Shenzhen
Mindray shall create or attempt or agree to create or permit to arise or exist any
Encumbrance over all or any part of its property, assets or revenues except (i) any
Encumbrance created under the Security Documents, (ii) any lien arising in the ordinary
course of its business and not in connection with the borrowing or raising of money or
credit and provided that the obligation which is thereby secured is paid when due or
contested in good faith by appropriate proceedings and properly provisioned and (iii)
in respect of any indebtedness referred to in Clause 13.2(h)(iii), to the extent that
the same represents ordinary trade, overdraft and other working capital facilities for
the purpose of financing the purchase of goods and materials, discounting of bills and
other similar purpose which is in the normal course of business of the Borrowers or
Shenzhen Mindray (as the case may be), Encumbrance may be created in respect of such
goods and materials, account receivables and such relevant overdraft accounts which are
the subject matter of such aforesaid trade, overdraft or other working capital
facilities;
	 
	 	(h)	 	Indebtedness: procure that no member of the Group (including the
Borrowers, the Corporate Guarantor and Shenzhen Mindray) shall borrow or raise money or
credit or permit to subsist any account or financial facilities with any bank or
financial institution or any person except the following:

	 	(i)	 	from the Lender under the Finance Documents;
	 
	 	(ii)	 	(1) intercompany indebtedness incurred in the ordinary course
of business in connection with the cash management and tax efficiency of the
Group and (2) intercompany indebtedness so long as such indebtedness is subject
to the provisions of the Subordination Deed (MRH) or the Subordination Deed
(MRI) and (3) intercompany indebtedness in the ordinary course of its business;
	 
	 	(iii)	 	indebtedness owing to banks or other financial institutions as
necessary in the ordinary course of its business, provided that the maximum
aggregate amount of all such indebtedness not at any time to exceed 15% of the
Consolidated Tangible Net Worth of the Corporate Guarantor (as defined in the
Corporate Guarantee);
	 
	 	(iv)	 	(1) any indebtedness of the Corporate Guarantor that is
convertible into equity or (2) any debt that is contractually (pursuant to a
subordination agreement reasonably satisfactory to the Lender) subordinated to
the Facility;
	 
	 	(v)	 	trade payables and other indebtedness arising in its ordinary
course of business;

	 	(i)	 	Other obligations: enter into any agreement or obligation which would
reasonably be expected to cause a Material Adverse Effect.

	13.3	 	Collateral Undertaking. Each of the Borrowers undertakes and agrees with the Lender
throughout the continuance of the Finance Documents and so long as any sum

29

 

	 	 	remains owing thereunder that, if at any time the amount of the Loan exceeds seventy percent
(70%) of the Acquisition Cost, the Lender may notify the Borrowers who shall not later than
the close of business in Hong Kong on the seventh (7th) Business Day after
notification prepay such amount of the Loan as may be determined by the Lender to be
appropriate together with all interest accrued in respect of such amount and all other sums,
if any, then due and payable under this Agreement so as to ensure that, immediately after
such prepayment, the amount of the Loan amounts not more than seventy per cent (70%) of the
Acquisition Cost.

14. EVENTS OF DEFAULT

	14.1	 	Events of Default. Each of the following events and circumstances shall be an Event
of Default:

	 	(a)	 	Non-payment: either Borrower fails to pay any sum payable under any
Finance Document to which it is a party when due or otherwise in accordance with the
provisions thereof provided that if the failure to pay is caused by administration or
technical error and payment is made within three (3) Business Days of its due date then
such failure shall not result in the Event of Default (for the avoidance of doubt,
default interest will start to incur on such due date);
	 
	 	(b)	 	Other obligations: either Borrower or any Security Provider fails duly
and punctually to perform or comply with any of its respective obligations or
undertakings under any Finance Document to which it is a party and, in respect of a
failure which is not a failure to pay money, does not remedy such failure to the
Lender’s satisfaction within seven (7) days (or such longer period as the Lender may
approve) after receipt of written notice from the Lender requiring it to do so;
	 
	 	(c)	 	Misrepresentation: any representation or warranty made or deemed to be
made by either Borrower or any Security Provider in or in connection with any Finance
Document proves to have been incorrect or misleading in any material respect;
	 
	 	(d)	 	Cross default: either Borrower defaults or receives notice of default
under any agreement or obligation relating to borrowing or any indebtedness of the
Borrower becomes payable or capable of being declared payable before its stated
maturity or is not paid when due or any Encumbrance, guarantee or other security now or
hereafter created by either Borrower becomes enforceable;
	 
	 	(e)	 	Authorisation: any of the authorisations referred to in Clause 12.1(e)
is not granted or ceases to be in full force and effect or is modified in a manner
which is reasonably expected to have a Material Adverse Effect, or if any law,
regulation, judgment or order (or the repeal or modification of any of the foregoing)
suspends, varies, terminates or excuses performance by either Borrower of any of its
obligations under any Finance Document to which it is a party or purports to do any of
the same;

30

 

	 	(f)	 	Creditor’s process: a creditor takes possession of all or any part of
the business or assets of either Borrower or any execution or other legal process is
enforced against the business or any asset of either Borrower and is not discharged
within fifteen (15) days;
	 
	 	(g)	 	Insolvency proceedings: a petition is presented or a proceeding is
commenced or an order is made or an effective resolution is passed or any other step is
taken by any person for the winding-up, insolvency, administration, reorganisation,
reconstruction, dissolution or bankruptcy of either Borrower or for the appointment of
a liquidator, receiver, administrator, trustee or similar officer of either Borrower or
of all or any part of its business or assets;
	 
	 	(h)	 	Suspension of payments: either Borrower stops or suspends payments to
its creditors generally or is unable or admits its inability to pay its debts as they
fall due or seeks to enter into any composition or other arrangement with its creditors
or is declared or becomes bankrupt or insolvent;
	 
	 	(i)	 	Analogous events: any event occurs which in the reasonable opinion of
the Lender appears to have an effect analogous to any of the matters set out in
paragraphs (f), (g) or (h) above in any jurisdiction in which either Borrower is
incorporated or carries on business;
	 
	 	(j)	 	Cessation of business; expropriation: either Borrower ceases or
threatens to cease to carry on its business or any substantial part thereof or changes
or threatens to change the nature or scope of its business or either Borrower disposes
of or threatens to dispose of or any governmental or other authority expropriates or
threatens to expropriate all or any substantial part of its business or assets;
	 
	 	(k)	 	Other parties: any event which has an effect equivalent or similar to
any of the events described in any of the above paragraphs occurs, mutatis mutandis, in
relation to any Security Provider or if any such person (being an individual) commits
an act of bankruptcy, dies or becomes of unsound mind, provided that the death or
becoming of unsound mind of either Individual Guarantor shall not be an Event of
Default if such death or becoming of unsound mind does not, in the reasonable
determination of the Lender, have a Material Adverse Effect and the Lender is satisfied
that all terms in the Finance Documents will be complied with;
	 
	 	(l)	 	Unlawfulness: any Finance Document or any provision thereof ceases for
any reason to be in full force and effect or is terminated or jeopardised or becomes
invalid or unenforceable or if there is any dispute regarding the validity or
enforceability of the same or if there is any purported termination or repudiation of
the same or it becomes impossible or unlawful for either Borrower or any other party
thereto to perform any of its obligations thereunder or for the Lender to exercise all
or any of its rights, powers and remedies thereunder;
	 
	 	(m)	 	Security Documents: any event or circumstance specified in any
Security
Document as an event of default;

31

 

	 	(n)	 	Material adverse change: any situation occurs which gives reasonable
grounds to believe that an event having a Material Adverse Effect has occurred.

	14.2	 	Declarations. If an Event of Default has occurred the Lender may, by written notice
to either Borrower:

	 	(a)	 	declare the Loan, accrued interest and all other sums payable hereunder to be,
whereupon they shall become, immediately due and payable without further demand, notice
or other legal formality of any kind; and/or
	 
	 	(b)	 	declare the Facility terminated whereupon the obligation of the Lender to make
further Advances hereunder shall immediately cease.

15. DEFAULT INTEREST

	15.1	 	Rate of Default Interest. If either Borrower fails to pay any sum payable under this
Agreement when due, the following provisions shall apply:

	 	(a)	 	Normal Default Interest. Subject as provided in Clause 15.1(b), the
Borrowers shall pay interest on such overdue sum from and including the due date to the
date of actual payment (after as well as before judgment) at the rate per annum
determined by the Lender to be the aggregate of:

	 	(i)	 	five per cent (5%);
	 
	 	(ii)	 	the Margin; and
	 
	 	(iii)	 	LIBOR (as determined by the Lender on such date or dates on or
after the due date for payment as the Lender may select) calculated with
reference to such periods and such amounts as the Lender considers appropriate
or, if any of the circumstances described in Clause 7.1 applies, the rate from
time to time certified by the Lender to be the rate representing the cost to it
of funding the unpaid sum by whatever means it considers to be appropriate.

	 	 	 	The Lender shall notify the Borrowers of the duration of each such funding period
and each interest rate determined under this Clause.
	 
	 	(b)	 	Modification for Advances. Where the unpaid sum is of principal which
became due and payable on a date during, but not the last day of, an Interest Period
relating thereto and none of the circumstances described in Clause 7.1 apply in
relation to such Interest Period, the first period selected by the Lender under Clause
15.1(a) in respect of such amount shall equal the unexpired portion of the Interest
Period and, for the duration of such period, there shall be substituted for the rate
specified in Clause 15.1(a) the rate of five per cent (5%) above the rate calculated in
accordance with Clause 5.5 (including the Margin) and applicable to the unpaid amount
immediately before it fell due.

32

 

	15.2	 	Calculation of Default Interest. Interest at the rate or rates determined from time
to time as aforesaid shall accrue from day to day, shall be calculated on the basis of the
actual number of days elapsed and a 360 day year, shall be compounded at the end of each
successive funding period considered appropriate by the Lender for the purposes of Clause 15.1
and shall be payable from time to time on demand.

16. INDEMNITIES AND SET-OFF

	16.1	 	General Indemnity. The Borrowers shall indemnify the Lender against all losses,
liabilities, damages, costs and expenses (including loss of profit) which the Lender may incur
as a consequence of the information produced or approved by the Borrowers being or being
alleged to be misleading or deceptive in any respect or any Event of Default or any other
breach by the Borrowers of any of its obligations under any Finance Document to which it is a
party or any failure to borrow in accordance with the Notice of Drawing or any prepayment
under this Agreement (except under Clause 6.2) or otherwise in connection with the Finance
Documents (including any loss or expense incurred in liquidating or redeploying funds acquired
or arranged for the purposes of a proposed Advance or to maintain the Loan or any unpaid sum
or in terminating any such arrangement or any hedging arrangement in respect of this Agreement
and any interest or fees incurred in funding any unpaid sum, but taking into account any
interest paid by the Borrowers in respect of such unpaid sum under Clause 15) provided that
the Borrowers shall not be required to indemnify the Lender in respect of any losses,
liabilities, damages, costs and expenses caused by the gross negligence or wilful default of
the Lender.

	16.2	 	Currency Indemnity. Dollars shall be the currency of account and of payment in
respect of sums payable under the Finance Documents. If an amount is received in another
currency, pursuant to a judgment or order or in the liquidation of the Borrowers or otherwise,
the Borrowers’ obligations under the Finance Documents to which it is a party shall be
discharged only to the extent that the Lender may purchase Dollars with such other currency in
accordance with normal banking procedures upon receipt of such amount. If the amount in
Dollars which may be so purchased, after deducting any costs of exchange and any other related
costs, is less than the relevant sum payable under the relevant Finance Document, the
Borrowers shall indemnify the Lender against the shortfall. This indemnity shall be an
obligation of the Borrowers independent of and in addition to its other obligations under the
Finance Documents and shall take effect notwithstanding any time or other concession granted
to the Borrowers or any judgment or order being obtained or the filing of any claim in the
liquidation, dissolution or bankruptcy (or analogous process) of the Borrowers.
	 
	16.3	 	Set-Off. If an Event of Default has occurred the Lender shall have the right,
without notice to either Borrower or any other person, to set off and apply any credit balance
on any account (whether subject to notice or not and whether matured or not and in whatever
currency) of either Borrower with the Lender and any other indebtedness owing by the Lender to
either Borrower, against the liabilities of either Borrower under the Finance Documents and
the Lender is authorised to purchase with the monies standing to the credit of any such
account such other currencies as may be necessary for this purpose. This Clause shall not
affect any general or banker’s lien,
right of set-off or other right to which the Lender may be entitled.

33

 

17. WAIVER AND SEVERABILITY

	 	 	Time is of the essence of this Agreement but no failure or delay by the Lender in exercising
any right, power or remedy hereunder shall impair such right, power or remedy or operate as
a waiver thereof, nor shall any single or partial exercise of the same preclude any further
exercise thereof or the exercise of any other right, power or remedy. The rights, powers
and remedies herein provided are cumulative and do not exclude any other rights, powers and
remedies provided by law. If at any time any provision of this Agreement is or becomes
illegal, invalid or unenforceable in any respect under the law of any jurisdiction, the
legality, validity and enforceability of such provision under the law of any other
jurisdiction, and of the remaining provisions of this Agreement, shall not be affected or
impaired thereby.

18. MISCELLANEOUS

	18.1	 	Execution. This Agreement shall become effective as of the date hereof.
	 
	18.2	 	Entire Agreement. The Finance Documents constitute the entire obligation of the
Lender and supersede any previous expressions of intent or understandings in respect of this
transaction.
	 
	18.3	 	Publicity. No announcement or other publicity in connection with this Agreement or
relating in any way to the Facility shall be made or arranged except by the Lender with the
Lender’s prior written consent (except when such announcement or publicity is made in
compliance with the Group’s public reporting obligations).
	 
	18.4	 	Amendments in Writing. Any amendment or waiver of any provision of this Agreement
and any waiver of any default under this Agreement shall only be effective if made in writing
and signed by the Lender.
	 
	18.5	 	Counterparts. This Agreement may be executed in counterparts and by different
parties on separate counterparts which when taken together shall be deemed to constitute one
agreement.
	 
	18.6	 	“Know your customer” checks. If:

	 	(a)	 	the introduction of or any change in (or in the interpretation, administration
or application of) any law or regulation made after the date of this Agreement;
	 
	 	(b)	 	any change in the status of either Borrower or the composition of the
shareholders of either Borrower after the date of this Agreement; or
	 
	 	(c)	 	a proposed assignment or transfer by the Lender of any of its rights and/or
obligations under this Agreement to another party,

34

 

	 	 	 	obliges the Lender (or, in the case of paragraph (c) above, any prospective new Lender) to
comply with “know your customer” or similar identification procedures in circumstances
where the necessary information is not already available to it, such Borrower shall
promptly upon the request of the Lender supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Lender (for itself
or, in the case of the event described in paragraph (c) above, on behalf of any
prospective new Lender) in order for such Lender or, in the case of the event described
in paragraph (c) above, any prospective new Lender to carry out and be satisfied with
the results of all necessary “know your customer” or other similar checks under all
applicable laws and regulations pursuant to the transactions contemplated in the
Finance Documents.

19. ASSIGNMENT

	19.1	 	The Borrowers. The Borrowers shall not assign any of its rights and benefits
hereunder.
	 
	19.2	 	The Lender. The Lender may at any time assign to any one or more persons (an
“assignee lender”) all or any part of its rights, benefits and obligations under or arising
out of the Finance Documents with the Borrowers’ consent except for assignment to the Lender’s
affiliate. The Borrowers shall execute and do all such transfers, assignments, assurances,
acts and things as the Lender may reasonably request for perfecting and completing the
assignment of such rights, benefits and obligations. Upon any such assignment taking effect
(i) the Lender shall be released from such obligations and the Borrowers shall look only to
the assignee lender in respect of such obligations to the extent so assigned and (ii)
references in the Finance Documents to the Lender shall be construed accordingly as references
to the assignee lender or the Lender, as relevant. All agreements, representations and
warranties made herein shall survive any assignments made pursuant to this Clause and shall
inure to the benefit of all assignee lenders as well as the Lender.
	 
	19.3	 	Participations. The Lender may at any time grant one or more participations in its
rights and/or obligations under the Finance Documents but the Borrowers shall not be concerned
in any way with any participation so granted.
	 
	19.4	 	Disclosure. The Lender may disclose to (i) any assignee lender or participant or
potential assignee lender or participant, (ii) any Holding Company of the Lender, (iii) any
Subsidiary of the Lender or of its Holding Company or (iv) any third party service provider
which provides services of any kind to the Lender in connection with the operation of its
business on a confidential basis such information about the Borrower as the Lender shall
consider appropriate. The Lender and any person to which disclosure has been made pursuant to
this Clause may also make such disclosures as may be required by any applicable law or
regulation of Hong Kong or elsewhere.
	 
	19.5	 	Lending Office. The Lender shall act initially through its lending office at the
address set out in this Agreement and may act subsequently through any of its other offices as
selected by it from time to time.

35

 

20. NOTICES

	20.1	 	Delivery. Each notice, demand or other communication to be given or made under this
Agreement shall be in writing and delivered or sent to the relevant party at its address or
fax number set out below (or such other address or fax number as the addressee has by five (5)
days’ prior written notice specified to the other party):

	 	 	 
	To the Borrowers:

	 	MR Holdings (HK) Limited
	 

	 	MR Investments (HK) Limited
	 

	 	Units 13-14, 28th Floor
	 

	 	Convention Plaza Office Tower
	 

	 	1 Harbour Road
	 

	 	Hong Kong
	 
	 	 
	 

	 	Fax Number      : (852) 2511 0705
	 

	 	Attention           : Mr. Tim Fitpatrick, General Counsel
	 
	 	 
	To Corporate:

	 	Mindray Medical International Limited
	Guarantor:

	 	c/o MR Holdings (HK) Limited
	 

	 	Units 13-14, 28th Floor
	 

	 	Convention Plaza Office Tower
	 

	 	1 Harbour Road
	 

	 	Hong Kong
	 
	 	 
	 

	 	Fax Number       : (852) 2511 0705
	 

	 	Attention            : Mr. Tim Fitpatrick, General Counsel
	 
	 	 
	To the Lender:

	 	Bank of China (Hong Kong) Limited
	 

	 	11/F., Bank of China Centre
	 

	 	Olympian City
	 

	 	11 Hoi Fai Road
	 

	 	West Kowloon
	 

	 	Hong Kong
	 
	 	 
	 

	 	Fax Number       : (852) 2530 4318
	 

	 	Attention            : Loans Division

	20.2	 	Deemed Delivery. Any notice, demand or other communication so addressed to the
relevant party shall be deemed to have been delivered (a) if given or made by letter, when
actually delivered to the relevant address and (b) if given or made by fax, when despatched
with electronic confirmation of complete and error-free transmission Provided that, if such
day is not a working day in the place to which it is sent, such notice, demand or other
communication shall be deemed delivered on the next following working day at such place.
	 
	20.3	 	Language. Each notice, demand or other communication hereunder and any other
documents required to be delivered hereunder shall be either in English or accompanied by a
certified translation thereof into the English language.

36

 

21. GOVERNING LAW AND JURISDICTION

	21.1	 	Law. This Agreement and the rights and obligations of the parties hereunder shall be
governed by and construed in accordance with the laws of Hong Kong.
	 
	21.2	 	Jurisdiction. The Borrowers irrevocably agree for the benefit of the Lender that any
legal action or proceeding arising out of or relating to this Agreement may be brought in the
courts of Hong Kong and irrevocably submits to the non-exclusive jurisdiction of such courts.
	 
	21.3	 	No Limitation on Right of Action. Nothing herein shall limit the right of the Lender
to commence any legal action against the Borrowers and/or their respective property in any
other jurisdiction or to serve process in any manner permitted by law, and the taking of
proceedings in any jurisdiction shall not preclude the taking of proceedings in any other
jurisdiction whether concurrently or not.
	 
	21.4	 	Waiver, Final Judgment Conclusive. Each of the Borrowers irrevocably and
unconditionally waives any objection which it may now or hereafter have to the choice of Hong
Kong as the venue of any legal action arising out of or relating to this Agreement and agrees
not to claim that any court thereof is not a convenient or appropriate forum. Each of the
Borrowers also agrees that a final judgment against it in any such legal action shall be final
and conclusive and may be enforced in any other jurisdiction, and that a certified or
otherwise duly authenticated copy of the judgment shall be conclusive evidence of the fact and
amount of its indebtedness.
	 
	21.5	 	Waiver of Immunity. Each of the Borrowers irrevocably and unconditionally waives any
immunity to which it or its property may at any time be or become entitled, whether
characterised as sovereign immunity or otherwise, from any set-off or legal action in Hong
Kong or elsewhere, including immunity from service of process, immunity from jurisdiction of
any court or tribunal, and immunity of any of its property from attachment prior to judgment
or from execution of a judgment.

IN WITNESS whereof this Agreement has been executed by the parties hereto on the date stated at the
beginning of this Agreement.

37

 

THE BORROWERS

	 	 	 
	SIGNED for and on behalf of

	 	) 
	MR HOLDINGS (HK) LIMITED

	 	) /s/ Li Xiting
	by Li Xiting

	 	) 
	 
	 	 
	SIGNED for and on behalf of

	 	) 
	MR INVESTMENTS (HK) LIMITED

	 	) /s/ Li Xiting
	by Li Xiting

	 	) 
	 
	 	 
	THE CORPORATE GUARANTOR
	 	 
	 
	 	 
	THE COMMON SEAL of

	 	) 
	MINDRAY MEDICAL

	 	) /s/ Xu Hang
	INTERNATIONAL LIMITED

	 	) 
	was affixed to this Deed

	 	) 
	in the presence of Li Xiting

	 	) /s/ Li Xiting
	 
	 	 
	THE LENDER
	 	 
	 
	 	 
	SIGNED for and on behalf of

	 	) 
	BANK OF CHINA (HONG KONG)

	 	) /s/ Chin Lai Ngan, Lian
	LIMITED

	 	) /s/ So Yin Ping, Yvonne
	by
Chin Lai Ngan, Lian

	 	) 
	So Yin Ping, Yvonne

	 	) 

38

 

Appendix 1

Form of Notice of Drawing

	 	 	 
	From:

	 	MR Holdings (HK) Limited
	 

	 	MR Investments (HK) Limited
	 
	 	 
	To:

	 	Bank of China (Hong Kong) Limited

                                              200                    

Dear Sirs,

	 	 	 	 	 
	US$141,400,000 loan facility:
	 	 	 	 
	Loan Agreement dated

	 	 	2008	 
	 

We refer to the above Loan Agreement, and hereby give notice that we wish to draw the Advance under
the Facility on                      200       in the amount of US$                     .

The proceeds of the Advance are to be used exclusively for the purposes specified in the Loan
Agreement.

The proceeds of the Advance should be disbursed to the following accounts of the Vendor or its
Subsidiaries for payment of the Acquisition Cost:

	1.	 	the account opened
in the name of
[name of Vendor
entity] with [name
of account bank]
with account number
[account number]
[quoting reference:
[                     ]];
	 
	2.	 	the account opened
in the name of
[name of Vendor
entity] with [name
of account bank]
with account number
[account number]
[quoting reference:
[                     ]];
	 
	3.	 	the account opened
in the name of
[name of Vendor
entity] with [name
of account bank]
with account number
[account number]
[quoting reference:
[                     ]];
	 
	4.	 	the account opened
in the name of
[name of Vendor
entity] with [name
of account bank]
with account number
[account number]
[quoting reference:
[                     ]];
	 
	5.	 	the account opened
in the name of
[name of Vendor
entity] with [name
of account bank]
with account number
[account number]
[quoting reference:
[                     ]].

The first Interest Period in relation to the Advance shall be [           (    )] month(s) (subject as
provided in clause 5.2 of the Loan Agreement).

We confirm that:

	(a)	 	the representations and warranties set out in clause 12.1 of the Loan Agreement, repeated
with reference to the facts and circumstances subsisting at the date of this
notice, remain true and correct in all material respects; and

 

 

	(b)	 	no Event of Default or Potential Event of Default has occurred which remains unwaived or
unremedied or would result from the making of the Advance.

Terms defined in the Loan Agreement have the same meanings when used in this notice.

	 	 	 	 	 
	For and on behalf of

	 	For and on behalf of	 	 
	MR Holdings (HK) Limited

	 	MR Investments (HK) Limited

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]