Document:

exv10w15

 

EXHIBIT 10.15

INDEMNIFICATION AGREEMENT

     This Agreement is made as of                     , 2006, between Artes Medical, Inc., a Delaware
corporation (the “Company”), and                      (the “Indemnitee”).

RECITALS

     Both the Company and Indemnitee recognize that highly competent persons have become more
reluctant to serve publicly-held corporations as directors or in other capacities unless they are
provided with adequate protection through insurance or adequate indemnification against inordinate
risks of claims and actions against them arising out of their service to and activities on behalf
of the corporation.

     In recognition of Indemnitee’s need for substantial protection against personal liability in
order to enhance Indemnitee’s continued service to the Company in an effective manner and
Indemnitee’s reliance on the provisions of the Company’s Amended and Restated Certificate of
Incorporation, as may be amended from time to time (“Certificate of Incorporation”) and the
Company’s Bylaws (the “Bylaws”) requiring indemnification of the Indemnitee to the fullest extent
permitted by law, and in part to provide Indemnitee with specific contractual assurance that the
protection promised by such Certificate of Incorporation and Bylaws will be available to Indemnitee
(regardless of, among other things, any amendment to or revocation of such Certificate of
Incorporation or Bylaws or any change in the composition of the Company’s Board of Directors or
acquisition transaction relating to the Company), the Company wishes to provide in this Agreement
for the indemnification of, and the advancement of expenses to, Indemnitee to the fullest extent
(whether partial or complete) permitted by law and as set forth in this Agreement.

     The Certificate of Incorporation, the Bylaws and the General Corporation Law of the State of
Delaware (“DGCL”) expressly provide that the indemnification provisions set forth therein are not
exclusive and thereby contemplate that contracts may be entered into between the Company and
members of the board of directors, officers and other persons with respect to indemnification.

     It is reasonable, prudent and necessary for the Company contractually to obligate itself to
indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by
applicable law so that they will serve or continue to serve the Company free from undue concern
that they will not be so indemnified.

     This Agreement is a supplement to and in furtherance of the Certificate of Incorporation and
Bylaws and any resolutions adopted pursuant thereto and shall not be deemed a substitute therefor,
nor to diminish or abrogate any rights of Indemnitee thereunder.

AGREEMENT

     In consideration of the premises set forth above and of Indemnitee agreeing to serve or

 

 

continuing to serve the Company directly or, at its request, with another enterprise, and intending
to be legally bound hereby, the parties hereto agree as follows:

     1. Basic Indemnification Agreement.

          (a) In the event Indemnitee was, is or becomes a party to or witness or other participant in,
or is threatened to be made a party to or witness or other participant in, a Claim (as defined in
Section 9(b)) by reason of (or arising in part out of) an Indemnifiable Event (as defined in
Section 9(d)), the Company shall indemnify Indemnitee to the fullest extent permitted by law as
soon as practicable but in any event no later than 30 days after written demand is presented to the
Company, against any and all Expenses (as defined in Section 9(c)), judgments, fines, penalties and
amounts paid in settlement (including all interest, assessments and other charges paid or payable
in connection therewith) of such Claim actually and reasonably incurred by or on behalf of
Indemnitee in connection with such Claim and any federal, state, local or foreign taxes imposed on
Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement. If
requested by Indemnitee in writing, the Company shall advance (within ten business days of such
written request) any and all Expenses to Indemnitee (an “Expense Advance”). Notwithstanding
anything in this Agreement to the contrary, prior to a Change in Control (as defined in Section
9(a)) and except as set forth in Sections 1(b), 3 and 7, Indemnitee shall not be entitled to
indemnification pursuant to this Agreement in connection with any Claim (i) initiated by Indemnitee
against the Company or any director or officer of the Company unless the Company has joined in or
consented to the initiation of such Claim; (ii) made on account of Indemnitee’s conduct which
constitutes a breach of Indemnitee’s duty of loyalty to the Company or its stockholders or is an
act or omission not in good faith or which involves intentional misconduct or a knowing violation
of the law; or (iii) arising from the purchase and sale by Indemnitee of securities in violation of
Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

          (b) Notwithstanding the foregoing, (i) the indemnification obligations of the Company under
Section 1(a) shall not be applicable if the Reviewing Party (as defined in Section 9(f)) has
determined (in a written opinion, in any case in which the special independent counsel referred to
in Section 2 is involved) that Indemnitee would not be permitted to be indemnified under applicable
law, and (ii) the obligation of the Company to make an Expense Advance pursuant to Section 1(a)
shall be subject to the condition that the Company receives an undertaking that, if, when and to
the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who
hereby agrees to reimburse the Company) for all such amounts theretofore paid; provided, however,
that if Indemnitee has commenced legal proceedings in the Court of Chancery of the State of
Delaware (the “Delaware Court”) to secure a determination that Indemnitee should be indemnified
under applicable law, any determination made by the Reviewing Party that Indemnitee would not be
permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be
required to reimburse the Company for any Expense Advance until a final judicial determination is
made with respect
thereto (as to which all rights of appeal therefrom have been exhausted or lapsed).
Indemnitee’s obligation to reimburse the Company for Expense Advances shall be unsecured and no
interest shall be charged thereon. If there has not been a Change in Control, the Reviewing Party
shall be

-2-

 

selected by the Board of Directors, and if there has been such a Change in Control, the
Reviewing Party shall be the special independent counsel referred to in Section 2. If there has
been no determination by the Reviewing Party or if the Reviewing Party determines that Indemnitee
substantively would not be permitted to be indemnified in whole or in part under applicable law,
Indemnitee shall have the right to commence litigation in the Delaware Court seeking an initial
determination by the court or challenging any such determination by the Reviewing Party or any
aspect thereof, and the Company hereby consents to service of process and to appear in any such
proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on
the Company and Indemnitee. The Company shall indemnify Indemnitee for Expenses incurred by
Indemnitee in connection with the successful establishment or enforcement, in whole or in part, by
Indemnitee of Indemnitee’s right to indemnification or advances.

     2. Change in Control. The Company agrees that if there is a Change in Control of the
Company (other than a Change in Control which has been approved by two-thirds (66 2/3%) or more of
the Company’s Board of Directors who were directors immediately prior to such Change in Control)
then with respect to all matters thereafter arising concerning the rights of Indemnitee to
indemnity payments and Expense Advances under this Agreement or any other agreement, the Bylaws or
Certificate of Incorporation now or hereafter in effect relating to Claims for Indemnifiable
Events, the Company shall seek legal advice only from special independent counsel selected by
Indemnitee and approved by the Company (which approval shall not be unreasonably withheld or
delayed) and who has not otherwise performed services for the Company within the last five years
(other than in connection with such matters) or for Indemnitee. In the event that Indemnitee and
the Company are unable to agree on the selection of the special independent counsel, such special
independent counsel shall be selected by lot from among at least five law firms with offices in the
State of Delaware having more than fifty attorneys, having a rating of “av” or better in the then
current Martindale Hubbell Law Directory and having attorneys which specialize in corporate law.
Such selection shall be made in the presence of Indemnitee (and his or her legal counsel or either
of them, as Indemnitee may elect). Such counsel, among other things, shall, within 90 days of its
retention, render its written opinion to the Company and Indemnitee as to whether and to what
extent Indemnitee would be permitted to be indemnified under applicable law. The Company agrees to
pay the reasonable fees of the special independent counsel referred to above and to fully indemnify
such counsel against any and all expenses (including attorneys’ fees), claims, liabilities, and
damages arising out of or relating to this Agreement or its engagement pursuant hereto.

     3. Indemnification for Additional Expenses. The Company shall indemnify Indemnitee
against any and all expenses (including attorneys’ fees) and, if requested by Indemnitee in
writing, shall (within ten business days of such written request) advance such expenses to
Indemnitee, which are incurred by Indemnitee in connection with any Claim asserted against or
action brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Company
under this Agreement or any other agreement, the Bylaws or Certificate of Incorporation now or
hereafter in effect relating to Claims for Indemnifiable Events and/or (ii)
recovery under any directors’ and officers’ liability insurance policies maintained by the
Company, regardless of whether the Company believes that Indemnitee is entitled to such
indemnification, advance expense payment or insurance recovery, as the case may be. The

-3-

 

Indemnitee
shall qualify for advances solely upon the execution and delivery to the Company of an undertaking
providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately
determined that the Indemnitee is not entitled to be indemnified by the Company.

     4. Partial Indemnity. If Indemnitee is entitled under any provisions of this
Agreement to indemnification by the Company of some but not all of the Expenses, liabilities,
judgments, fines, penalties and amounts paid in settlement of a Claim, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.
Moreover, notwithstanding any other provision of this Agreement, to the extent that Indemnitee has
been successful on the merits or otherwise in defense of any or all Claims relating in whole or in
part to an Indemnifiable Event or in defense of any issue or matter therein, including dismissal
without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection
therewith. In connection with any determination by the Reviewing Party or otherwise as to whether
Indemnitee is entitled to be indemnified hereunder the burden of proof shall be on the Company to
establish that Indemnitee is not so entitled.

     5. No Presumption. For purposes of this Agreement, the termination of any action,
suit or proceeding by judgment, order, settlement (whether with or without court approval) or
conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption
that Indemnitee did not meet any particular standard of conduct or have any particular belief.

     6. Notification and Defense of Claim. Within 30 days after receipt by Indemnitee of
notice of the commencement of a Claim which may involve an Indemnifiable Event, Indemnitee will, if
a claim in respect thereof is to be made against the Company under this Agreement, submit to the
Company a written notice identifying the proceeding, but the omission so to notify the Company will
not relieve it from any liability which it may have to Indemnitee under this Agreement unless the
Company is materially prejudiced by such lack of notice. With respect to any such Claim as to
which Indemnitee notifies the Company of the commencement thereof:

          (a) the Company will be entitled to participate therein at its own expense;

          (b) except as otherwise provided below, to the extent that it may wish, the Company jointly
with any other indemnifying party similarly notified will be entitled to assume the defense
thereof, with counsel selected by the Board of Directors and satisfactory to Indemnitee. After
notice from the Company to Indemnitee of its election to assume the defense thereof, the Company
will not be liable to Indemnitee under this Agreement for any legal or other expenses subsequently
incurred by Indemnitee in connection with the defense thereof other than reasonable costs of
investigation or as otherwise provided below. Indemnitee shall have the right to employ its own
counsel in such action, suit or proceeding, but the fees and expenses of such counsel incurred
after notice from the Company of its assumption of the defense thereof shall be at the expense of
Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Company,
(ii) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and the Indemnitee in the conduct of the defense of
such action, or (iii) the Company shall not in fact have employed counsel to assume the defense of
such action, in each of which cases the fees and expenses of counsel shall be at the expense of

-4-

 

the
Company. The Company shall not be entitled to assume the defense of any claim brought by or on
behalf of the Company or as to which Indemnitee shall have made the conclusion provided for in
clause (ii) above; and

          (c) the Company shall not be liable to indemnify Indemnitee under this Agreement for any
amounts paid in settlement of any action or claim effected without its written consent. The
Company shall not settle any action or claim in any manner which would impose any penalty or
limitation on Indemnitee without Indemnitee’s written consent. Neither the Company nor Indemnitee
will unreasonably withhold or delay their consent to any proposed settlement.

     7. Non-exclusivity. The rights of Indemnitee hereunder shall be in addition to any
other rights Indemnitee may have under the Certificate of Incorporation, the Bylaws, the DGCL, any
agreement, a vote of the stockholders, a resolution of directors or otherwise. No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right
of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee
acting on behalf of the Company and at the request of the Company prior to such amendment,
alteration or repeal. To the extent that a change in the DGCL (whether by statute or judicial
decision), the Certificate of Incorporation or the Bylaws permits greater indemnification by
agreement than would be afforded currently under the Certificate of Incorporation, the Bylaws and
this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this
Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is
intended to be exclusive of any other right or remedy, and every other right and remedy shall be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
right or remedy.

     8. Liability Insurance. To the extent the Company maintains an insurance policy or
policies providing directors’ and officers’ liability insurance, Indemnitee shall be covered by
such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any Company director or officer. If, at the time the Company receives notice from
any source of a Claim as to which Indemnitee is a party or a participant (as a witness or
otherwise), the Company has director and officer liability insurance in effect, the Company shall
give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth
in the respective policies. The Company shall thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such
Claim in accordance with the terms of such policies. In the event of a Potential Change in Control
(as defined in Section 9), the Company shall maintain in force any and all insurance policies then
maintained by the Company providing directors’ and officers’ liability insurance, in respect of
Indemnitee, for a period of six years thereafter. The Company shall indemnify Indemnitee for
Expenses incurred by Indemnitee in connection with any successful action brought by Indemnitee for
recovery under any insurance policy referred to in this Section 8 and
shall advance to Indemnitee the Expenses of such action in the manner provided in Section 3
above.

-5-

 

     9. Certain Definitions.

          (a) A “Change in Control” shall be deemed to have occurred if:

     (1) any person, as that term is used in Section 13(d) and Section 14(d)(2) of
the Exchange Act, becomes, is discovered to be, or files a report on Schedule 13D or
14D-1 (or any successor schedule, form or report) disclosing that such person is a
beneficial owner (as defined in Rule 13d-3 under the Exchange Act or any successor
rule or regulation), directly or indirectly, of securities of the Company
representing 20% or more of the total voting power of the Company’s then outstanding
Voting Securities (unless such person becomes such a beneficial owner in connection
with the initial public offering of the Company’s Common Stock);

     (2) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board of Directors of the Company and any
new director whose election by the Board of Directors or nomination for election by
the Company’s stockholders was approved by a vote of at least two-thirds (66 2/3%)
of the directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute a majority thereof;

     (3) the Company, or any material subsidiary of the Company, is merged,
consolidated or reorganized into or with another corporation or other legal person
(an “Acquiring Person”) or securities of the Company are exchanged for securities of
an Acquiring Person, and immediately after such merger, consolidation,
reorganization or exchange less than a majority of the combined voting power of the
then outstanding securities of the Acquiring Person immediately after such
transaction are held, directly or indirectly, in the aggregate by the holders of
Voting Securities immediately prior to such transaction;

     (4) the Company, or any material subsidiary of the Company, in any transaction
or series of related transactions, sells or otherwise transfers all or substantially
all of its assets to an Acquiring Person, and less than a majority of the combined
voting power of the then outstanding securities of the Acquiring Person immediately
after such sale or transfer is held, directly or indirectly, in the aggregate by the
holders of Voting Securities immediately prior to such sale or transfer;

     (5) the Company and its subsidiaries, in any transaction or series of related
transactions, sells or otherwise transfers business operations that generated two
thirds or more of the consolidated revenues (determined on the basis of the
Company’s four most recently completed fiscal quarters) of the Company and its
subsidiaries immediately prior thereto;

     (6) the Company files a report or proxy statement with the Securities and
Exchange Commission pursuant to the Exchange Act disclosing that a change

-6-

 

in control
of the Company has or may have occurred or will or may occur in the future pursuant
to any then existing contract or transaction; or

     (7) any other transaction or series of related transactions occur that have
substantially the effect of the transactions specified in any of the preceding
clauses in this paragraph (a).

Notwithstanding the provisions of Section 9(a)(1) or 9(a)(4), unless otherwise determined in a
specific case by majority vote of the Board of Directors of the Company, a Change in Control shall
not be deemed to have occurred for purposes of this Agreement solely because (i) the Company, (ii)
an entity in which the Company directly or indirectly beneficially owns 50% or more of the voting
securities or (iii) any Company-sponsored employee stock ownership plan, or any other employee
benefit plan of the Company, either files or becomes obligated to file a report or a proxy
statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any
successor schedule, form or report or item therein) under the Exchange Act, disclosing beneficial
ownership by it of shares of stock of the Company, or because the Company reports that a Change in
Control of the Company has or may have occurred or will or may occur in the future by reason of
such beneficial ownership.

          (b) A “Claim” is any threatened, pending or completed action, suit, proceeding or alternative
dispute resolution mechanism, or any inquiry, hearing or investigation whether conducted by the
Company or any other party, whether civil, criminal, administrative, investigative or other.

          (c) “Expenses” include attorneys’ fees and all other costs, fees, expenses and obligations of
any nature whatsoever paid or incurred in connection with investigating, defending, being a witness
in or participating in (including appeal), or preparing to defend, be a witness in or participate
in any Claim relating to any Indemnifiable Event.

          (d) An “Indemnifiable Event” is any event or occurrence (whether before or after the date
hereof) related to the fact that Indemnitee is or was a director, officer, employee, consultant,
agent or fiduciary of or to the Company, or any subsidiary of the Company, or is or was serving at
the request of the Company as a director, officer, employee, trustee, agent or fiduciary of another
corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, or by
reason of anything done or not done by Indemnitee in any such capacity.

          (e) A “Potential Change in Control” shall be deemed to have occurred if (i) the Company enters
into an agreement, the consummation of which would result in the occurrence of a Change in Control;
(ii) any person (including the Company) publicly announces an intention to take or to consider
taking actions which, if consummated, would constitute a Change in Control; (iii) any person, other
than a trustee or other fiduciary holding securities under an employee benefit plan of the Company
or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company, who is or becomes the beneficial
owner, directly or indirectly, of securities of the Company representing 9.5% or more of the
combined voting power of the
Company’s then outstanding Voting Securities, increases such person’s beneficial ownership of
such securities by five percentage points or more over the initial percentage of such securities;
or

-7-

 

(iv) the Board of Directors of the Company adopts a resolution to the effect that, for purposes
of this Agreement, a Potential Change in Control has occurred.

          (f) A “Reviewing Party” is (i) the Company’s Board of Directors (provided that a majority of
directors are not parties to the particular Claim for which Indemnitee is seeking indemnification)
or (ii) any other person or body appointed by the Company’s Board of Directors, who is not a party
to the particular Claim for which Indemnitee is seeking indemnification, or (iii) if there has been
a Change in Control, the special independent counsel referred to in Section 2 hereof.

          (g) “Voting Securities” means any securities of the Company which vote generally in the
election of directors.

     10. Amendments, Termination and Waiver. No supplement, modification, amendment or
termination of this Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver.

     11. Contribution. If the indemnification provided in Sections 1 and 3 is unavailable,
then, in respect of any Claim in which the Company is jointly liable with Indemnitee (or would be
if joined in the Claim), the Company shall contribute to the amount of Expenses, judgments, fines,
penalties and amounts paid in settlement as appropriate to reflect: (i) the relative benefits
received by the Company, on the one hand, and Indemnitee, on the other hand, from the transaction
from which the Claim arose, and (ii) the relative fault of the Company, on the one hand, and of
Indemnitee, on the other, in connection with the events which resulted in such Expenses, judgments,
fines, penalties and amounts paid in settlement, as well as any other relevant equitable
considerations. The relative fault of the Company, on the one hand, and of Indemnitee, on the
other, shall be determined by reference to, among other things, the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent the circumstances resulting
in such Expenses and Liabilities. The parties agree that it would not be just and equitable if
contribution pursuant to this Section 11 were determined by pro rata allocation or any other method
of allocation which does not take account of the equitable considerations described in this Section
11.

     12. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and shall do everything that may be necessary to secure such rights,
including the execution of such documents necessary to enable the Company effectively to bring suit
to enforce such rights.

     13. No Duplication of Payments. The Company shall not be liable under this Agreement
to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee
has otherwise actually received payment (under an insurance policy, the Certificate of
Incorporation or otherwise) of the amounts otherwise indemnifiable hereunder.

-8-

 

     14. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors, assigns, including any
direct or indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company, spouse, heirs, and personal and
legal representatives. This Agreement shall continue in effect regardless of whether Indemnitee
continues to serve as a director or officer (or in one of the capacities enumerated in Section 9(d)
hereof) of the Company or of any other enterprise at the Board of Director’s request.

     15. Severability. The provisions of this Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the fullest extent
permitted by law.

     16. Applicable Law and Consent to Jurisdiction. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. The Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising
out of or in connection with this Agreement shall be brought only in the Delaware Court and not in
any other state or federal court in the United States of America or any court in any other country,
(ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any
action or proceeding arising out of or in connection with this Agreement, (iii) appoint,
irrevocably, to the extent such party is not a resident of the State of Delaware, as its agent in
the State of Delaware as such party’s agent for acceptance of legal process in connection with any
such action or proceeding against such party with the same legal force and validity as if served
upon such party personally within the State of Delaware, (iv) waive any objection to the laying of
venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead
or to make, any claim that any such action or proceeding brought in the Delaware Court has been
brought in an improper or inconvenient forum.

     17. Entire Agreement; Prior Agreements Superseded. This Agreement constitutes the
full and entire understanding and agreement between the parties with regard to the subjects hereof,
and no party shall be liable or bound to any other in any manner by any oral or written
representations, warranties, covenants and agreements except as specified herein or required under
applicable law. Each party agrees that upon the execution and delivery hereof, this Agreement
shall replace in its entirety any prior agreement, written or oral, between the parties (including
any prior Indemnification Agreement entered into by the Company and such party) with regard to the
subjects hereof, and that any such prior agreements shall terminate and be superseded in its
entirety by this Agreement.

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

-9-

 

Executed on                                                             , 2006.

	 	 	 	 	 	 	 
	 	 	Artes Medical, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[Name]	 	 
	 

	 	 	 	[Title]	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	 

	 	[Indemnitee]EXHIBIT 10.20

 

EXHIBIT 10.20

NOTARIAL DEED

PURCHASE AGREEMENT FOR A PARTIAL ENTERPRISE

between

FormMed Biomedicals AG

and

ARTES Medical USA, Inc.

 

 

Before me, the undersigned Notary public (Urkundsperson) of the Canton of Zug, Helga Schlumpf, with
offices at Gubelstrasse 11, CH-6300 Zug, appeared today, July 22, 2004:

	1.	 	Mr. Ulrich Naumann, date of birth March 10, 1956, resident for business purposes at
Seestrasse 8, 6314 Unterägeri, Switzerland
	 
	 	 	acting not on his own behalf but as person with power to sign (Zeichnungsberechtigter) with
sole signature of FormMed Biomedicals AG, Seestrasse 8, 6314 Unterägeri, Switzerland,
entered on the Commercial Register of the Canton of Zug (Main Register) under number
CH-170.3.021.971-3, according to the confirmation from the Register of Commerce, dated July
21, 2004 and the Protocol of FormMed Biomedicals AG’s extraordinary shareholders meeting
dated July 2, 2004

– hereinafter: the Seller –

	2.	 	Dr. Stefan M. Lemperle, date of birth May 7, 1965, resident for business purposes at La Jolla
Center I, 4660 La Jolla Village Drive, Suite 825, San Diego, CA 92122, USA,
	 
	 	 	acting not on his own behalf, but as authorised Chief Executive Officer of ARTES Medical
USA, Inc., La Jolla Center I, 4660 La Jolla Village Drive, Suite 825, San Diego, CA 92122,
USA, according to the Secretary’s Certificate dated July 15, 2004, with apostille, and the
minutes of a special meeting of the board of directors of ARTES of July 15, 2004

– hereinafter: the Buyer –

The persons appearing identified themselves to the satisfaction of the notary.

The notary asked whether he or any one of his business associates or any person with whom the
notary shares business premises had already acted or was currently acting for the persons appearing
or their representatives in an unofficial capacity in the same matter.

The parties denied any prior involvement within the meaning of § 3 Para. 1 No. 7
Beurkundungsgesetz.1

The undersigned Notary Public issues this notarial deed on the following record on an agreement
upon request of the parties:

PURCHASE AGREEMENT FOR A PARTIAL ENTERPRISE

Preamble:

The Seller is an enterprise involved in the development, manufacture and distribution of components
for the use to manufacture medical devices, in particular biomaterial for plastic

 

			
	1	 	Beurkundungsgesetz: German Notarization Act

1

 

surgery and implantology. Part of the business activities of the Seller is the development,
manufacture and distribution under license of polymethylmethacrylate (“PMMA”) microspheres for
polymer and alloplastic implants (“PMMA Materials”). In addition to holding a license for the
manufacture of PMMA Materials, Seller also possesses the know-how for the manufacture of PMMA
Materials and the associated production equipment and certain trademarks for PMMA Materials. The
manufacturing know-how, all development activities and the production equipment are essentially
held by Mediplant GmbH Biomaterials & Medical Devices, registered at the Commercial Register of
Frankfurt am Main Local Court under HRB 53763 (hereinafter: Mediplant), a wholly owned subsidiary
of the Seller.

The Buyer, who already possesses in particular the US rights for the manufacture of PMMA Material,
wishes to acquire from the Seller, and the Seller wishes to sell and transfer to the Buyer, on the
terms and conditions set out in this Agreement, the whole of the Seller’s existing PMMA business
and all related assets, know-how, associated production processes and techniques, certain
trademarks owned by Seller, and all shares in Mediplant. The PMMA business and related assets,
rights, interests and properties being sold and transferred by Seller to Buyer pursuant to this
Agreement as set forth in Article B. Section 3 are referred to collectively as the “PMMA Business
and Assets.”

The parties are therefore entering into this Agreement.

Article A.

Purchase Price

	(1)	 	The purchase price for the PMMA Business and Assets is US $3,750,000.00 payable in
installments as set out below. All installments will be paid by wire transfer to the account
of Seller at      ***      . All due dates for the payment of the purchase price under this
Agreement are understood to be the dates when the money is credited to the Seller’s account.
The parties acknowledge and agree that Buyer made an advance payment of the purchase price to
Seller in the amount of US$ 160,437.50 on February 12, 2004, that this advance payment will be
credited against the first installment of the purchase price, and that the outstanding balance
remaining to be paid on the first installment is US$ 339,562.50.

	 	(a)	 	The outstanding balance payable on the first installment of the purchase price,
amounting to US $339,562.50 shall be due on the date of signature of this Agreement.
	 
	 	(b)	 	The second installment of the purchase price, amounting to US$ 500,000.00 shall
be due on July 31, 2004.
	 
	 	(c)	 	The third installment of the purchase price, amounting to US $500,000.00 shall
be due on September 30, 2004.
	 
	 	(d)	 	The fourth installment of the purchase price, amounting to US $500,000.00 shall
be due on December 31, 2004.

 

			
	***	 	Portions of this page have been omitted
pursuant to a request for Confidential Treatment filed separately with the
Commission.

2

 

	 	(e)	 	The fifth instalment of the purchase price, amounting to US $500,000.00 shall
be due on March 31, 2005.
	 
	 	(f)	 	The sixth instalment of the purchase price, amounting to US $500,000.00 shall
be due on June 30, 2005.
	 
	 	(g)	 	The seventh instalment of the purchase price, amounting to US $500,000.00 shall
be due on September 30, 2005.
	 
	 	(h)	 	The eighth instalment of the purchase price, amounting to US $250,000.00 shall
be due on December 31, 2005.

	(2)	 	Buyer shall have the right to prepay the entire amount of the purchase price at any time
without penalty.
	 
	(3)	 	Upon signature of this Agreement: (i) all profits attributable to the shares of Mediplant
from and after January 1, 2004 (the “Effective Date”) shall be for the account of the Buyer,
and any undistributed profits attributable to periods before the Effective Date shall be for
the account of the Seller; and (ii) all loan and other obligations of Mediplant to the Seller,
including but not limited to the loan agreement between Seller and Mediplant dated November 7,
2001 presently owed by Mediplant to the Seller together with all accrued interest payable on
such loan balance, shall be deemed discharged and satisfied in full, retroactively, to the
Effective Date.
	 
	(4)	 	Nothing contained in this Agreement shall prejudice Seller’s right to recover from Buyer the
full outstanding balance owed by Buyer to Seller pursuant to invoices on inter-company
account.
	 
	(5)	 	The parties have agreed that the purchase price shall be allocated to the respective assets
being purchased as follows:

	 	(a)	 	The Shares in Mediplant as defined in Article B. Section 1 below:
US$3,000,000.00;
	 
	 	(b)	 	The Trademarks as defined in Article B. Section 3 below:
US$500,000.00; and
	 
	 	(c)	 	The Know-How as defined in Article B. Section 3 below:
US$250,000.00

	(6)	 	In the event Buyer receives any license fees (lump sum and/or regular license fee and/or
royalty payments) and/or equity investments from licensees or distributors in any of
***, ***, *** , *** or *** , then in that event Buyer shall promptly pay to
Seller by wire transfer an amount equal to ***% of any such payments. All such payments by
Buyer will be credited against the outstanding installments of the purchase price in the
reverse order of their maturity.

 

			
	***	 	Portions of this page have been omitted
pursuant to a request for Confidential Treatment filed separately with the
Commission.

3

 

Article B.

Sale and Transfer of the shares in Mediplant and the PMMA Business and Assets

Section 1

Definition of Shares in Mediplant

				
	(1)	 	The Seller is sole shareholder of Mediplant.
	 	 	 	 
	(2)	 	The nominal capital of Mediplant is EURO 26,000.00 and is fully paid up. It consists of the
following shares (hereinafter: Shares):
	 	 	 	 
	 	 	1 share to the nominal sum of 	EURO 13,000.00
	 	 	 	 
	 	 	1 additional share to the nominal sum of 	EURO 13,000.00.

Section 2

Sale and assignment of Shares

	 	 	The Seller sells the Shares designated in Article B. Section 1 above to the Buyer and
assigning same to the Buyer. The sale and assignment shall take effect with signing of this
Agreement. The Buyer accepts the sale and assignment of the forementioned Shares.

Section 3

Definition of PMMA Business and Assets

	(1)	 	The PMMA Business and Assets being sold and transferred to Buyer pursuant to this Agreement
comprise the assets, rights, interests and properties of Seller, as at the date of this
Agreement, as are set out below (collectively, the “PMMA Business and Assets”):

	 	(a)	 	All business activities of Seller in connection with the development,
manufacture, sale and distribution of PMMA Materials.
	 
	 	(b)	 	The trademarks described in Exhibit A hereto (the “Trademarks”). Seller and
Buyer waived the requirement for the reading of Exhibit A.
	 
	 	(c)	 	All of the following tangible and intangible intellectual property rights,
collectively referred to in this Agreement as the “Know-How: (i) except for the patents
described in paragraph (d) below (the “Patents”), all industrial and intellectual
property rights required for the manufacture of PMMA Materials, associated production
processes, business documents and operating documents, and know-how in respect of the
methods and processes necessary for the manufacture and quality assurance of PMMA
Materials; (ii) all research data and documentation, tables, experiment reports,
technical and commercial information, customer and supplier lists, trade secrets and
formulae in the ownership or control of Seller and all rights and interests of Seller
which are associated with, necessary to used or employed in connection with the
development, manufacture, sale or distribution of PMMA Materials; and (iii) a detailed
written description of the manufacturing process for PMMA Materials (the “Instruction
Manual”) and a detailed written description of the products which are intended to
result from the

4

 

	 	 	 	manufacturing process (the “Product Description”) which will be provided to Buyer
not later than 90 days after the date of this Agreement.
	 
	 	(d)	 	All Seller’s rights and interests as licensee under the Exclusive License
Agreement (Vertrag über eine ausschließliche Lizenz) between the Seller as licensee and
the patent holder Dr. Martin Lemperle, Feldbergstr. 36, 60323 Frankfurt am Main as
licensor, an Exclusive License Agreement dated
March 28. / April 6, 1998 (hereafter: Exclusive License Agreement) in respect of the
following patents (hereafter: the Patents):

	 	 	 
	P18907235-9

	 	Brazil
	406 375

	 	European patent for Belgium, Switzerland, Spain, France,

Great Britain, Luxembourg, the Netherlands, Sweden
	E119012

	 	European patent for Austria
	589090720-08

	 	European patent for Germany
	HK1004519

	 	European patent for Hong Kong
	20087/BE/95

	 	European patent for Italy
	9790049-2

	 	European patent for Singapore

	 	 	The Buyer is aware of the full contents of the Exclusive License Agreement. The assignment
is subject to the condition precedent of approval by the patent holder and licensor, Dr.
Martin Lemperle.
	 
	 	 	The Buyer intends to acquire the Patents and all rights thereunder from Dr. Martin Lemperle
by means of a contract of sale so that, in a simultaneous transfer from the Seller to the
Buyer of the rights under the Exclusive Licence Agreement, the licensor and the licensee
would be one and the same person. On the effectiveness of the above assignment of the
Exclusive License Agreement and the effectiveness of the contract for the purchase of the
Patents between the Buyer and Dr. Martin Lemperle, the Exclusive License Agreement will
expire by way of confusion (Konfusion) of rights.

Section 4

Sale and Assignment of PMMA Business and Assets

	(1)	 	Upon payment by the Buyer of the first instalment of the purchase price, Seller sells and
will transfer immediately the PMMA Business and Assets to Buyer with retroactive effect to
January 1, 2004 (the “Effective Date”). Seller will cooperate with Buyer in the transfer of
the PMMA Business and Assets to Buyer and the registration thereof in the name of Buyer as
owner, effective as of the Effective Date. Seller will promptly execute and deliver all such
documents and instruments and do all such other lawful acts and things as may be necessary or
desirable to effect such transfer of ownership to and registration in the name of Buyer.
	 
	(2)	 	Buyer buys and accepts the transfer of the PMMA Business and Assets as described in this
Section 4.

5

 

Article C.

Representations of Seller

Except for (i) matters specifically disclosed in this Agreement, (ii) the matters set out in the
Statement of Exceptions contained in Article D. of this Agreement (the “Statement of Exceptions”),
and/or (iii) the matters disclosed in deed no 206, 2004 by the notary Dr. Manfred Rack, Frankfurt
am Main (the “Disclosure Documents”), Seller represents (Beschaffenheitsmerkmale) to Buyer that, as
at the Effective Date and the date of this Agreement:

	(1)	 	The information provided in this Agreement in relation to the Seller, Mediplant, the Shares
and the PMMA Business and Assets, including but not limited to the Trademarks, is correct and
complete. The Seller may freely dispose of the Shares. The Shares are not encumbered with
rights of third parties. There are no shareholders of Mediplant other than the Seller. Seller
will sell and transfer the Shares to Buyer free and clear of all liens, claims, charges and
encumbrances. The Shares and the PMMA Business and Assets constitute the whole of the business
and assets of Seller that are associated with, necessary to, or used or employed in connection
with the business of the Seller in developing, manufacturing, selling and distributing PMMA
Materials.
	 
	(2)	 	There are no defects in Seller’s ownership of and title to the PMMA Business and Assets, and
the Seller will sell and transfer the PMMA Business and Assets to Buyer free and clear of all
liens, claims, charges and encumbrances.
	 
	(3)	 	Mediplant is a limited liability company (Gesellschaft mit beschränkter Haftung) properly
constituted under the laws of the Federal Republic of Germany and existing effectively in
accordance with its articles of association. There exist neither shareholders’ resolutions
which amend the articles of association and which have not yet been entered on the Commercial
Register nor any ancillary agreements relating to the constitution and organization of
Mediplant.
	 
	(4)	 	Mediplant has no equity interest in other enterprises and is under no obligation to acquire
any such interests.
	 
	(5)	 	Mediplant has not entered into with the Seller or any third parties any contracts between
business enterprises within the meaning of §§ 291 ff. AktG2 or agreements on the
formation of a silent partnership (stille Gesellschaft).
	 
	(6)	 	No rules of procedure for the management of Mediplant exist.
	 
	(7)	 	Neither a supervisory board nor an advisory board, administrative board or similar
institution has been established for Mediplant, nor does a shareholders’ committee exist for
Mediplant.

 

			
	2	 	AktG: German Company Law

6

 

	(8)	 	The registered office and sole production site of Mediplant is at Ernst-Wiss-Strasse 18 in
65933 Frankfurt am Main.
	 
	(9)	 	There exist only the following tenancy agreements involving Mediplant:

	 	(a)	 	Tenancy agreement for the commercial use of premises between Mediplant as
tenant and Ms Marianne Kämpf as landlord regarding office and commercial space in the
property at Ernst-Wiss-Strasse 18 in 65933 Frankfurt am Main, dated September 27, 1999;
	 
	 	(b)	 	Subtenancy agreement between Mediplant as lessor and the firm Polyfea Polymer-
und Produktentwicklung Albrecht Dinkelaker, Ernst-Wiss-Str. 18, 65933 Frankfurt am
Main, as lessee regarding two rented rooms on the business premises of Mediplant at
Ernst-Wiss-Strasse 18 in 65933 Frankfurt am Main, dated October 30, 1999.

	(10)	 	Mediplant is not a party to any rental or leasing agreements for plant, machinery, fixtures
or fittings.
	 
	(11)	 	Mediplant has no contractual or other obligations for the acquisition of fixed assets which
involve in any one or series of transactions more than EUR 5,000.00 or the equivalent in any
other currency.
	 
	(12)	 	Registration of the trade of Mediplant, namely the development, manufacture and distribution
of biomaterial, has been filed with the City of Frankfurt am Main pursuant to § 15 Para. 1
Gewerbeordnung.3
	 
	(13)	 	Mediplant has no environmentally hazardous materials or underground or aboveground storage
facilities for environmentally hazardous materials.
	 
	(14)	 	The business operations of Mediplant have not caused any environmental pollution and no
reasonable grounds exist to believe that they will cause any environmental pollution.
	 
	(15)	 	Mediplant has not been the subject of any orders or complaints by governmental or regulatory
authorities or third parties under industrial or environmental laws or regulations over the
past five years.
	 
	(16)	 	The production facility of Mediplant is supplied with fresh water and waste water is
disposed of through the usual pipe systems and the usual sewage system respectively.
	 
	(17)	 	Mediplant is not a party to any collaboration agreements, development contracts or other
agreements in the field of industrial property rights.
	 
	(18)	 	There exists only one licence for MS Office concerning the use of software by Mediplant.

 

			
	3	 	Gewerbeordnung: German Industrial Code

7

 

	(19)	 	Mediplant is the owner of and loss payee under the following insurance policies:

	 	•	 	Liability insurance policy with Frankfurter Versicherungs-Aktiengesellschaft /
Allianz Versicherungs-Aktiengesellschaft under policy no.
  ***   ;
	 
	 	•	 	Fire and business interruption insurance policy with Frankfurter
Versicherungs-Aktiengesellschaft / Allianz Versicherungs-Aktiengesellschaft under
policy no.
  ***
   ;
	 
	 	•	 	Index-linked property insurance policy (dynamische Sachversicherung) with
Frankfurter Versicherungs-Aktiengesellschaft / Allianz Versicherungs-Aktiengesellschaft
under policy no.
  ***

	(20)	 	No claims covered by the insurance policies owned by Mediplant have made by or against
Mediplant in the past five years.
	 
	(21)	 	Mediplant is not a party to any agreements with commercial agents, independent dealers or
other distribution agreements.
	 
	(22)	 	Mediplant employs one manager and two part-time employees as further described in Exhibit B
hereto.
	 
	(23)	 	Mediplant has not been involved in any labor law disputes in the past five years. Mediplant
is not subject nor a party to any collective agreements, or any work agreements or business
practices agreements.
	 
	(24)	 	Seller has delivered to Buyer the financial statements of Mediplant (including balance
sheet, profit and loss account and notes thereto together with the annual report of
management) for the calendar years ended December 31, 1999, 2000, 2001, 2002 and 2003, audited
by the tax accountant of Mediplant, all such financial statements and accounts, notes and
annual reports being referred to collectively as the “Financial Statements.” The Financial
Statements (i) have been prepared in accordance with and accurately reflect the books and
records of Mediplant, (ii) have been prepared in accordance with generally accepted German
accounting principles consistently applied by Mediplant throughout the periods indicated, and
(iii) present the financial position of Mediplant as of the respective dates of the balance
sheets included and the results of its operations for the respective periods indicated.
	 
	(25)	 	The tax returns of Mediplant for the years 2000, 2001, 2002 and 2003 have been properly and
correctly submitted. The tax assessments arising on the basis of the tax returns for 2000,
2001 and 2002 have been settled in full.
	 
	(26)	 	No government tax audit has taken place or is threatened.
	 
	(27)	 	There are no shortfalls in monetary contributions to the share capital of Mediplant or in
the full value of contributions in kind to its share capital.

 

			
	***	 	Portions of this page have been omitted
pursuant to a request for Confidential Treatment filed separately with the
Commission.

8

 

	(28)	 	There are no obligations of the Seller to third parties arising from the granting of
guarantees, the furnishing of bonds or the cumulative assumption of debt for the obligations
of Mediplant. Mediplant has not granted any guarantees, furnished any bonds, or assumed the
debt of any third parties. Except as specifically disclosed and reserved against in the
Financial Statements, Mediplant has no debts.
	 
	(29)	 	The execution, delivery and performance of this Agreement by the Seller including the sale
of the Shares to Buyer have been duly authorized by all necessary corporate and shareholder
action on the part of both the Seller and Mediplant. A copy of the Shareholder Resolution of
FormMed’s shareholders authorizing the signature, delivery and performance of this Agreement
by FormMed is attached as Exhibit C to this Agreement.
	 
	(30)	 	The extraordinary meeting of shareholders of Mediplant held on July 21, 2004, gave its
consent to the sale and transfer of the Shares to the Buyer. The management of Mediplant has
declared to the Seller the consent of Mediplant to transfer of the Shares. A copy of the
consent of the shareholders of Mediplant is attached as Exhibit D to this Agreement, and a
certified true copy of the consent of the management of Mediplant is attached as Exhibit E to
this Agreement.
	 
	(31)	 	Seller further makes the additional representations (Beschaffenheitsmerkmale) contained in
the Schedule attached to this Agreement as Exhibit F (the “Schedule of Additional
Representations”).

Article D.

Statement of Exceptions

All claims and causes of action based upon or arising out of the following matters constitute
exceptions to the representations of Seller set out in Article C. of this Agreement the
representations contained in the Schedule of Additional Representations attached hereto as Exhibit
F:

	(1)	 	The License Agreement dated December 22, 1993, as amended, between Arte Pharma
Pharmazeutische Produkte GmbH, legal predecessor of FormMed Biomedicals AG, as licensor, and
R.M.I. ROFIL Medical International B.V. as licensee; the prolongation of such License
Agreement by a new agreement dated August 25, 1999; or the termination of any of the
foregoing.
	 
	(2)	 	The License Agreement dated January 30/March 06, 2000 between FormMed Biomedicals AG as
licensor and ARSIS Medical Holding B.V. as licensee; the extension of such License Agreement
by instrument dated March 10/March 15, 2002; or the termination of any of the foregoing.
	 
	(3)	 	The position of Dr. Martin Lemperle as a former shareholder of ARSIS Medical Holding B.V.
	 
	(4)	 	Any alleged license agreement between FormMed Biomedicals AG and European Medical Contract
Manufacturing B.V. or the alleged termination thereof.

9

 

	(5)	 	The Exclusive License Agreement dated February 4/February 10, 1997 between Dr. Martin
Lemperle as owner/licensor and Bristol-Myers Squibb Company as licensee, to which BioForm,
Inc. (“BioForm”), is the successor licensee by virtue of an assignment from Bristol-Myers
Squibb Company; or the termination of such Exclusive License Agreement.

Article E.

Events of Default and Remedies

	(1)	 	In the event of any breach or default by any party (a “Defaulting Party”) in any of its
obligations or representations contained in this Agreement, the non-defaulting party shall
give written notice of such breach or default to the Defaulting Party. Such a Notice (a
“Default Notice”) shall state with particularity the breach or default on which the notice is
based and request the Defaulting Party to remedy or cure the breach or default within the
following periods (a “Remedy Period”): (i) if the breach or default occurs on or before July
31, 2004 the Remedy Period is 30 days after receipt of the Default Notice; and (ii) if the
breach or default occurs after July 31, 2004 the Remedy Period is 60 days after receipt of the
Default Notice.
	 
	(2)	 	During the applicable Remedy Period the parties will use all reasonable efforts to resolve
amicably the breach or default by negotiations in good faith. However, any breach or default
which is not remedied or cured or resolved by negotiations in good faith within the applicable
Remedy Period will constitute an event of default under this Agreement (hereafter: Event of
Default).
	 
	(3)	 	Upon the happening of an Event of Default by Seller, the Buyer shall be entitled to a
reduction in the purchase price paid for the Shares and/or the PMMA Business and Assets, as
the case may be, in accordance with §§ 437 No. 2, 441 BGB (German Civil Code) or refund of the
purchase price paid in excess. The Buyer shall not be entitled to withhold payment (right of
retention) in respect of any instalment of the purchase price or any part thereof except (i)
with the prior written consent of Seller, or (ii) upon ascertainment of an Event of Default by
Seller by final decision of a court of competent jurisdiction.
	 
	(4)	 	The parties are agreed that the representations of Seller contained in Article C of this
Agreement, including the Schedule of Additional Representation attached to this Agreement as
Exhibit F , do not constitute guarantees of quality within the meaning of § 444 BGB (German
Civil Code) but are to be regarded as “Beschaffenheitsmerkmale.”
	 
	(5)	 	The Seller shall be liable solely in accordance with the regulations of this Agreement, save
in the case of fraud or intentional misrepresentation. The right to rescind, save in the case
of fraud or intentional misrepresentation, and the right to improvement or subsequent
performance under §§ 437 No. 1, 439 BGB (German Civil Code) are expressly excluded.
	 
	(6)	 	Upon the happening of an Event of Default by the Buyer, the Seller shall be entitled to
exercise all rights and remedies to which it may be entitled according to German law and this
Agreement including, if applicable, its rights and remedies under the Assignment

10

 

	 	 	Agreement and Security Agreement attached to this Agreement as, respectively, Exhibit G and
Exhibit H, and its rights and remedies under the Pledge Agreement attached to this Agreement
as Exhibit I.
	 
	(7)	 	All claims arising from or in connection with this Agreement shall become time-barred two
years after the date of signature of this Agreement.

Article F.

Tax Audits

	(1)	 	The Seller is responsible for all taxes attributable to Mediplant for all periods up to the
Effective Date. In the event of an external fiscal audit in respect of any period before the
Effective Date, the Buyer shall ensure that Mediplant gives the Seller and its professional
advisers the opportunity to participate in such audit. Seller shall keep strictly
confidential, and ensure that its professional advisers participating in any such audit keep
strictly confidential, all matters arising in relation to any such audit. The Buyer shall
ensure that Mediplant informs the Seller promptly of the announcement or commencement of any
such audits. If the Seller and Buyer cannot agree to a tax assessment resulting from any such
audit, Buyer shall at the request of Seller, and at Seller’s cost and expense, cause Mediplant
to contest or appeal such assessment by appropriate proceedings under the direction and
control of the Seller and at Seller’s cost and expense.
	 
	(2)	 	The Seller shall indemnify Buyer and hold Buyer harmless from and against any liability for
tax assessments relating to Mediplant for all periods up to the Effective Date.

Article G.

Confidentiality

Save for the disclosure of such information as is or becomes (i) publicly available through no
fault of any party hereto, (ii) required by the public disclosure laws or regulations of any
governmental or regulatory authority, (iii) necessary or appropriate in making any public filing or
obtaining any governmental or regulatory approval or consent required for the consummation of the
transactions contemplated by this Agreement, (iv) necessary or appropriate in connection with any
legal proceedings, and/or (v) necessary for the information of Buyer’s existing or prospective
investors:

	(1)	 	the parties undertake to maintain the strictest confidentiality with regard to the contents
of this Agreement and the transactions contemplated by this Agreement;
	 
	(2)	 	the parties agree that the information received in connection with the negotiation and
conclusion of this Agreement shall be treated with the strictest confidentiality; and
	 
	(3)	 	no party shall issue a press release or make any similar announcement with regard to the
legal matters contemplated by this Agreement without prior consultation with the other party
or parties and the written consent of the other party or parties.

11

 

Article H.

Costs and Taxes

	(1)	 	Each party shall bear its own legal fees and expenses in connection with negotiating,
preparing and carrying out the transactions contemplated by this Agreement. Buyer will bear
all transfer and registration costs and all sales, transfer or similar taxes due or assessable
on the sale and transfer of the PMMA Business and Assets hereunder, exclusive of taxes which
are to be legally borne by the Seller. Buyer shall bear one-half of the costs of all notarial
certifications, and Seller the other half of such costs.
	 
	(2)	 	As used in this Agreement the phrase “legal fees and expenses” means (i) the fees,
disbursements and other expenses of legal counsel in providing representation and counseling,
(ii) the fees, disbursements and other expenses of expert witnesses, (iii) court costs and
filing fees and costs fixed by law or assessed by public agencies, and (iv) the cost of
depositions, transcripts and translation.

Article I.

Miscellaneous

	(1)	 	Severability
	 
	 	 	If any provisions of this Agreement, or any provisions included in the future, are wholly or
partially invalid or impractical, or become legally invalid or impractical at a later time,
this shall not affect the validity of the remaining provisions of this Agreement. The same
applies in the event that this Agreement is found to contain any omissions. In place of the
invalid or impractical provisions, or in order to correct the omission, another appropriate
provision will apply, which as far as legally possible, most closely approximates that
originally intended by the parties, or that which they would have intended, in accordance
with the sense and purpose of this Agreement, if they had considered the point in question
at the time of conclusion of this Agreement or the later inclusion of additional provisions.
The same applies if a provision is invalid, unlawful or unenforceable based on the extent of
services, payments or times specified in the Agreement; in this case, a legally permissible
extent of services, payments or times most closely approximating that intended will be
deemed to be agreed.

	(2)	 	Amendments and Waivers

	 	(a)	 	No amendment, modification or interpretation of any of the provisions of this
Agreement is effective unless made in writing and signed by the parties.
	 
	 	(b)	 	No waiver of any provision of this Agreement or right or remedy thereunder is
effective unless made in writing and signed by the party or parties making such waiver.
No waiver of any provision, right or remedy in one instance constitutes a waiver
thereof in any other instance unless the writing so specifies. No failure or delay on
the part of any party in the exercise or claim of any power or right under this
Agreement operates as a waiver thereof, and no single or partial exercise or claim of
any such power or right precludes any other or further exercise or claim thereof.

12

 

	 	(c)	 	Any amendment to the foregoing requirements for the written form also requires
the written form.

	(3)	 	Binding Language
	 
	 	 	The parties agree that the binding language of this Agreement is English.
	 
	(4)	 	Exclusive Venue
	 
	 	 	The exclusive venue is agreed to be the District Court (Landgericht) Frankfurt am Main
(Germany).
	 
	(5)	 	Governing Law
	 
	 	 	The parties agree the exclusive applicability of the law of the Federal Republic of Germany
to this Agreement. The application of the United Nations Convention on Contracts for the
International Sale of Goods to this Agreement is hereby expressly excluded.
	 
	(6)	 	Notices
	 
	 	 	Any notice, request, demand, consent, approval, declaration or similar communication (a
“notice”) under this Agreement shall be given or made in writing and shall be delivered
personally, sent by certified or registered mail with postage prepaid, or sent by telefax or
courier service with fees prepaid, addressed to the party or parties to whom they are
directed at the following addresses, or at such other address as may be designated by notice
from such party to each other party

	 	 	 	 	 
	 

	 	To:
	 	SELLER
	 

	 	 	 	Mr. Ulrich Naumann
	 

	 	 	 	FormMed Biomedicals AG
	 

	 	 	 	Seestr. 8
	 

	 	 	 	6314 Unterageri
	 

	 	 	 	Switzerland
	 

	 	 	 	Telefax: +41 (41) 7520307
	 
	 

	 	To:
	 	BUYER
	 

	 	 	 	Dr. Stefan M. Lemperle, M.D.
	 

	 	 	 	Artes Medical USA, Inc.
	 

	 	 	 	La Jolla Center I
	 

	 	 	 	4660 La Jolla Village Drive
	 

	 	 	 	Suite 825
	 

	 	 	 	San Diego, California 92122
	 

	 	 	 	United States of America
	 

	 	 	 	Telefax: (858) 550-9997

	 	 	Any notice given or made in the manner prescribed in this paragraph shall be deemed received
when delivered. ANY PURPORTED NOTICE BY E-MAIL SHALL BE INEFFECTIVE.

13

 

	(7)	 	Additional Action
	 
	 	 	Each party shall execute and deliver all such documents and instruments as may be reasonably
required or advisable, and shall use all reasonable business efforts to do, or cause to be
done, and to assist and cooperate with each other in doing, all things reasonably required
or advisable to consummate and make effective, in the most expeditious manner practicable,
the transactions contemplated by this Agreement.
	 
	(8)	 	Attachments
	 
	 	 	All appendices, schedules, exhibits, annexes and other attachments to this Agreement are
integral parts hereof and incorporated into it by reference.
	 
	(9)	 	Prior Agreements
	 
	 	 	This Agreement supersedes all prior agreements and understandings between the parties,
whether written or oral, with respect to its subject matter.

Article J.

Further Provisions

	(1)	 	To the corresponding question of the notary, the Seller declared that the assets of Mediplant
and the operation to be transferred did not include any real property.
	 
	(2)	 	The notary instructed the parties that the Buyer has unlimited liability for the monetary
contributions not performed and for the shortfalls of contributions in kind not effected at
full value of all shareholders.
	 
	(3)	 	The recording notary is requested to notify Mediplant of transfer of the Shares in accordance
with § 16 GmbHG (German Limited Liability Company Act).

Article K.

Powers of Attorney

The persons appearing hereby authorize the Notary Public, each for himself and released from the
prohibition of self-contracting, to make supplementary declarations of all kinds and to do all that
is necessary and expedient for execution in the above matter as well as to effect notifications to
the Commercial Register.

Place Zug                                        Date July 22nd, 2004

	 	 	 
	/s/ Dr. Stefan Lemperle

	 	/s/ Ulrich Naumann
	 

	 	 
	Dr. Stefan M. Lemperle

	 	Ulrich Naumann
	CEO of ARTES Medical USA, Inc.

	 	FormMed Biomedicals AG

14

 

PUBLIC NOTARISATION

The undersigned Notary Public of the Canton of Zug, attorney-at-law Helga Schlumpf, Gubelstrasse
11, 6300 Zug, herewith publicly notarises:

This record together with its annexes was read aloud in my presence to the persons appearing, the
record was approved by them and signed by them in my presence.

The persons appearing waived the requirement for the reading of Exhibit A.

	 	 	 
	Zug, July 22, 2004

	 	The Notary Public
	 
	 	 
	 

	 	(Urkundsperson des Kantons Zug)
	 
	 	 
	

	 

	 	/s/ Helga Schlumpf
	 

	 	Helga Schlumpf
	

This deed was issued in 8 specimens (1 for the notary, 7 for the parties)

 

 

Exhibit A

to the

Purchase Agreement for a partial Enterprise

- Trademarks –

 

 

Page 1

TRADEMARKS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	FormMed
	Trademark	 	Serial No	 	Public. No	 	Country	 	Owner	 	Deposited	 	Registered	 	File
	ARTEPLAST
	 	2031205	 	2031205	 	Germany	 	FMB	 	 	 	1993-02-26	 	FCH-002
	ARTEPLAST
	 	601339	 	601339	 	IR*	 	FMB	 	 	 	1993-04-26	 	FCH-002-IR
	ARTEPHARMA
	 	2031206	 	2031206	 	Germany	 	FMB	 	 	 	1993-02-26	 	FCH-003
	ARTEPHARMA
	 	1533615	 	1533615	 	Great Britain	 	FMB	 	 	 	1992-10-28	 	FCH-003-GB
	ARTEPHARMA
	 	601340	 	601340	 	IR**	 	FMB	 	 	 	1993-04-26	 	FCH-003-IR
	ARTEPHARMA
	 	5-43309	 	3237449	 	Japan	 	FMB	 	 	 	1996-12-25	 	FCH-003-JP
	ARTECOLL
	 	2039522	 	2039522	 	Germany	 	FMB	 	 	 	1993-06-30	 	FCH-004
	ARTECOLL
	 	2017877	 	1638796	 	Argentina	 	FMB	 	 	 	1997-07-24	 	FCH-004-AR
	ARTECOLL
	 	701850	 	701850	 	Australia	 	FMB	 	 	 	1997-06-20	 	FCH-004-AU
	ARTECOLL
	 	819011002	 	819011002	 	Brazil	 	ARTE PHARMA	 	 	 	1998-09-08	 	FCH-004-BR
	ARTECOLL
	 	801636	 	TMA523113	 	Canada	 	FMB	 	 	 	2000-02-15	 	FCH-004-CA
	ARTECOLL
	 	415739	 	531471	 	Chile	 	FMB	 	 	 	1999-01-06	 	FCH-004-CL
	ARTECOLL
	 	3050432	 	0	 	EM*	 	FMB	 	2003-02-13	 	0	 	FCH-004-EM
	ARTECOLL
	 	2042682	 	2042682	 	Great Britain	 	FMB	 	 	 	1995-10-26	 	FCH 004-GB
	ARTECOLL
	 	9805661	 	133/2000	 	Hong Kong	 	FMB	 	 	 	2000-01-05	 	FCH-004-HK
	ARTECOLL
	 	1191799	 	1191799	 	Israel	 	FMB	 	 	 	1999-09-07	 	FCH-004-IL
	ARTECOLL
	 	807824	 	274434	 	India	 	FMB	 	1998-06-25	 	2003-11-10	 	FCH-004-IN
	ARTECOLL
	 	2039522	 	612046	 	IR***	 	FMB	 	 	 	1993-10-08	 	FCH-004-IR
	ARTECOLL
	 	8-137582	 	4218461	 	Japan	 	FMB	 	 	 	1998-12-04	 	FCH-004-JP
	ARTECOLL
	 	97-1210	 	397845	 	Korea	 	FMB	 	 	 	1998-02-09	 	FCH-004-KR
	 
	 	 	 	394875	 	 	 	 	 	 	 	 	 	 

 

Page 2

Trademarks (continued)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	FormMed
	Trademark	 	Serial No	 	Public. No	 	Country	 	Owner	 	Deposited	 	Registered	 	File
	ARTECOLL
	 	329912	 	629135	 	Mexico	 	FMB	 	 	 	1999-10-21	 	FCH-004-MX
	ARTECOLL
	 	98/059440
 98/05940	 	0	 	Malaysia	 	FMB	 	1998-05-19	 	0	 	FCH-004-MY
	ARTECOLL
	 	4-1998-035
 4-1998-03571	 	0	 	Philippines	 	FMB	 	1998-05-15	 	2003-06-26	 	FCH-004-PH
	ARTECOLL
	 	302643	 	KOR53063 
3 
Kor53063k	 	Thailand	 	FMB	 	 	 	1996-12-21	 	FCH-004-TH
	ARTECOLL
	 	85063876	 	804461	 	Taiwan	 	FMB	 	 	 	1998-06-01	 	FCH-004-TW
	ARTECOLL
	 	75/036,478	 	2155277	 	USA	 	FMB	 	 	 	1998-05-05	 	FCH-004-US
	ARTECOLL
	 	98/07984	 	1998/0798 
1998/07984	 	South Africa	 	FMB	 	 	 	1998-0512	 	FCH-004-ZA
	ARTEGEL
	 	A54330/5WZ	 	2039523	 	German	 	FMB	 	 	 	1993-06-30	 	FCH-005
	ARTEGEL
	 	003051067	 	003051067	 	EM*	 	FMB	 	2003-02-13	 	0	 	FCH-005-EM
	ARTEGEL
	 	2039523	 	612047	 	IR****	 	FMB	 	 	 	1993-09-30	 	FCH-005-IR
	Logo
 ARTEPHARMA
	 	A56738/10W	 	2907076	 	Germany	 	FMB	 	 	 	1995-05-29	 	FCH-006
	ARTECOLL &
 DESIGN
	 	111938	 	0	 	Canada	 	FMB	 	2001-10-24	 	nicht mehr anhängig	 	FCH-013-CA
	ARTECOLL &
DESIGN
	 	494530	 	494530	 	Switzerland	 	FMB	 	 	 	2002-02-12	 	FCH-013-CH
	ARTECOLL &
 DESIGN
	 	3431965	 	0	 	China	 	FMB	 	2003-01-10	 	0	 	FCH-013-CN
	ARTECOLL &
 DESIGN
	 	2422707	 	2422707	 	EM*	 	FMB	 	 	 	2003-07-21	 	FCH-013-EM
	ARTECOLL &
 DESIGN
	 	200206922 
200206722	 	0	 	Hong Kong	 	FMB	 	2002-05-10	 	0	 	FCH-013-HK
	ARTECOLL &
 DESIGN
	 	2001-95445	 	4649667	 	Japan	 	FMB	 	 	 	2003-02-28	 	FCH-013-JP
	ARTECOLL &
 DESIGN
	 	513585	 	0	 	Mexico	 	FMB	 	2001-10-24	 	nicht mehr anhängig	 	FCH-013-MX
	ARTECOLL &
 DESIGN
	 	T01/16626H	 	T0116626	 	Singapore	 	FMB	 	 	 	2001-10-24	 	FCH-013-SG

 

Page 3

Trademarks (continued)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	FormMed
	Trademark	 	Serial No	 	Public. No	 	Country	 	Owner	 	Deposited	 	Registered	 	File
	ARTECOLL &
 DESIGN
	 	76/405387	 	0	 	USA	 	FMB	 	2002-05-07	 	0 nicht mehr anhängig	 	FCH-013-US
	ARTECOLL &
 USA
	 	76/405388	 	0	 	USA	 	FMB	 	2002-05-07	 	0 nicht mehr anhängig	 	FCH-014-US
	ARTECOLL USA & DESIGN
	 	76/405389	 	0	 	USA	 	FMB	 	2002-05-07	 	0 nicht mehr anhängig	 	FCH-015-US

 

			
	IR*	: 	International Registration

Germany, Austria, Benelux, China, Czech, Spain, France, Hungary,
Italy, Liechtenstein, Monaco, Slovakia
	 
	IR**	: 	International Registration

Germany, Austria, Benelux, China, Czech, Spain, France, Hungary,
Italy, Liechtenstein, Monaco, Slovakia
	 
	IR***	: 	International Registration

Germany, Austria, Benelux, Belarus, Russia, China, Czech, Spain,
France, Hungary, Italy, Liechtenstein, Monaco, Slovakia, Poland,
Republic Ukraine, Yugoslavia, Denmark, Finland, Norway, Sweden
	 
	IR****	: 	International Registration

Germany, Austria, Benelux, China, Czech, Spain, France, Hungary,
Italy, Liechtenstein, Monaco, Slovakia
	 
	EM*	: 	European Trademark

Deposited or registered in the country of the European Union

Germany, Austria, Luxemburg, The Netherlands, Belgium, Spain,
France, Italy, Finland, Sweden, Denmark, United Kingdom, Portugal,
Greece, Ireland
	 
	FMH**	: 	FMH=FormMed Healthcare AG; former firm name of FormMed Biomedicals AG
	 
	FMB	: 	FormMed Biomedicals AG

 

Exhibit B

to the

Purchase Agreement for a partial Enterprise

- Management and Employees of Mediplant –

 

 

Exhibit B

— Management and Employees of Mediplant —

               ***

 

          Managing Director (Geschäftsführer):

          *** administers this job           ***          . The commitment is based upon the requirement.

          Management of Production, Production, Quality Assurance-Management:

          This job is remunerated on an hourly basis; € *** per hour.

               ***

 

Both operate in production and are acquainted with all tasks arising in this context (preparation
of PMMA raw material, process of sieving, analyses, hygiene control, documentation, procurement of
material, cleaning, etc.).

          *** execute the tasks upon demand by Mediplant. The period of a task is solely based upon the
criteria of when the product objective is achieved and is remunerated on an hourly bass; € *** per
hour.

 

			
	***	 	Portions of this page have been omitted
pursuant to a request for Confidential Treatment filed separately with the
Commission.

 

 

Exhibit C

to the

Purchase Agreement for a partial Enterprise

- Shareholder’s Resolution –

Intentionally Omitted.

 

 

Exhibit D

to the

Purchase Agreement for a partial Enterprise

- Consent of Mediplant’s shareholder to the Transfer of its Shares –

Intentionally Omitted.

 

 

Exhibit E

to the

Purchase Agreement for a partial Enterprise

- Consent of Mediplant to the Transfer of its Shares –

Intentionally Omitted.

 

 

Exhibit F

to the

Purchase Agreement for a partial Enterprise

- Schedule of Representations –

Intentionally Omitted.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]