Document:

ex101

    ASSET
      PURCHASE AGREEMENT

    

    THIS
      ASSET PURCHASE AGREEMENT
      (this
      "Agreement")
      is
      made and entered into as of September 28, 2006, by and between Owen Consulting
      LLC, a California limited liability company ("Seller"),
      and
      Futomic Industries, Inc., a New Jersey corporation ("Buyer").

    

    RECITALS

    

    WHEREAS,
      Buyer
      desires to purchase from Seller, and Seller desires to sell to Buyer, certain
      assets, pursuant to the terms and subject to the conditions set forth
      herein.

    

    NOW
      THEREFORE,
      Seller
      and Buyer agree as follows:

    

    ARTICLE
      I.

    

    DEFINITIONS

    

    1.1 Defined
      Terms.
      As used
      herein, the terms below shall have the following meanings:

    

    "Acquired
      Assets"
      shall
      mean the assets of the Seller set forth on Schedule
      A
      hereto.

    

    "Action"
      shall
      mean any action, claim, suit, arbitration, inquiry, subpoena, discovery request,
      proceeding or investigation, or threat thereof, by or before any court or grand
      jury, any governmental or other regulatory or administrative agency or
      commission or any arbitration tribunal.

    

    "Affiliate"
      shall
      mean, with respect to any Person, any other Person directly or indirectly
      controlling, controlled by or under common control with such Person and any
      member, general partner, director, officer or employee of such Person. For
      purposes of this definition of Affiliate, "control" shall mean the power of
      one
      or more Persons to direct the affairs of the Person controlled by reason of
      ownership of voting stock, contract or otherwise.

    

    "Damages"
      shall
      mean any and all costs, losses, damages, liabilities, demands, claims, suits,
      actions, judgments, causes of action, assessments or expenses, including
      interest, penalties, fines and attorneys' fees incident thereto, incurred in
      connection with any claim for indemnification arising out of this Agreement,
      and
      any and all amounts paid in settlement of any such claim.

    

    "Intellectual
      Property"
      shall
      mean all copyrights, copyright registrations, proprietary processes, trade
      secrets, license rights, specifications, technical manuals and data, drawings,
      inventions, designs, patents, patent applications, mask works, tradenames,
      trademarks, service marks, product information and data, know-how and
      development work-in-progress, customer lists, software, business correspondence
      and marketing plans and other intellectual or 

     

    
      
         

      

      
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    intangible
      property that comprise or are necessary to the use of the Acquired Assets,
      whether pending, applied for or issued, whether filed in the United States
      or in
      other countries, including, without limitation, all associated goodwill; all
      things authored, discovered, developed, made, perfected, improved, designed,
      engineered, acquired, produced, conceived or first reduced to practice by Seller
      or any of its employees or agents that are embodied in, derived from or relate
      to the Acquired Assets, in any stage of development, including, without
      limitation, modifications, enhancements, designs, concepts, techniques, methods,
      ideas, flow charts, coding sheets, notes and all other information relating
      to
      the Acquired Assets.

    

    "Knowledge"
      shall
      mean an individual shall be deemed to have "Knowledge" of a particular fact
      or
      other matter if such individual is actually aware of such fact or other matter
      or if a prudent individual could be expected to discover or otherwise become
      aware of such fact or other matter in the course of conducting a diligent and
      comprehensive investigation concerning the truth or existence of such fact
      or
      other matter. Seller shall be deemed to have "Knowledge" of a particular fact
      or
      other matter if any officer or other representative of Seller has Knowledge
      of
      such fact or other matter.

    

    "Person"
      shall
      mean any person or entity, whether an individual, trustee, corporation, general
      partnership, limited partnership, trust, unincorporated organization, limited
      liability company, business association, firm, joint venture, or governmental
      agency or authority.

    

    "Taxes"
      shall
      mean all taxes, however denominated, including any interest, penalties or other
      additions to tax that may become payable in respect thereof, (i) imposed by
      any
      federal, territorial, state, local or foreign government or any agency or
      political subdivision of any such government, for which Buyer could become
      liable as successor to or transferee of the Acquired Assets or which could
      become a charge against or lien on the Acquired Assets, which taxes shall
      include, without limiting the generality of the foregoing, all sales and use
      taxes, ad valorem taxes, excise taxes, business license taxes, occupation taxes,
      real and personal property taxes, stamp taxes, environmental taxes, real
      property gains taxes, transfer taxes, payroll and employee withholding taxes,
      unemployment insurance contributions, social security taxes and other
      governmental charges, and other obligations of the same or of a similar nature
      to any of the foregoing, which are required to be paid, withheld or collected,
      or (ii) any liability for amounts referred to in (i) as a result of any
      obligations to indemnify another person.

    

    ARTICLE
      II.

    

    PURCHASE
      AND SALE OF ACQUIRED ASSETS

    

    2.1 Transfer
      of Acquired Assets.
      Pursuant to the terms and subject to the conditions
      of this Agreement, in exchange for the consideration set forth in Section
      2.2 below, at the Closing, Seller shall sell, assign and deliver to Buyer,
      and
      Buyer shall purchase
      from Seller, the Acquired Assets.

     

    
      
         

      

      
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    2.2 Purchase
      Price/ Payment Procedure.
      As
      consideration for the Acquired Assets, Buyer shall tender Seller an amount
      equal
      to Five Million Five Hundred Thousand (5,500,000) shares of common stock of
      Buyer (the “Purchase
      Price”),
      payable as follows:

    

    (a) At
      the
      Closing, Buyer shall deliver, or cause to be delivered, to Seller a stock
      certificate representing the Purchase Price.

    

    2.3 Assets
      Excluded; Liabilities Not Assumed.
      Seller
      shall not sell nor Buyer purchase any assets other than the Acquired Assets
      and
      Buyer shall not, and shall not be required to, assume or be obligated to pay,
      discharge or perform, any debts, liabilities, adverse claims or obligations
      of
      any kind or nature whatsoever of Seller, whether in connection with the Acquired
      Assets or otherwise and whether arising before or after the consummation of
      the
      transactions contemplated herein, or bear any cost or charge with respect
      thereto.

    

    ARTICLE
      III.

    

    CLOSING

    

    3.1 Closing.
      The
      closing of the transactions contemplated herein (the "Closing")
      shall
      occur on September 28, 2006, or at such other time and place as the parties
      may
      agree (the "Closing
      Date"),
      provided that all of the Closing conditions set forth in Section 3.3 hereof
      shall have occurred.

    

    3.2 Deliveries.
      Together with an executed counterpart of this Agreement, the following items
      shall be delivered by the parties at the Closing:

    

    (a) By
      Buyer.
      Buyer
      shall deliver a certificate representing the Purchase Price described in Section
      2.2(a).

    

    (b) By
      Seller.
      Seller
      shall deliver to Buyer:

    

    (i) one
      or
      more Bills of Sale, in form and substance satisfactory to Buyer and sufficient
      to convey the Acquired Assets to Buyer;

    

    (ii) such
      electronic and paper copies and representations of the Intellectual Property
      as
      may in Buyer's reasonable judgment be necessary to convey the Intellectual
      Property to Buyer;

    

    (iii) an
      Assignment of Seller's rights in the patent application pending before the
      Patent and Trademark Office as application no. 60745514, filed by Kelly Owen
      on
      or about April 24, 2006 titled “Invisidesk Private Communication, Authentication
      and Connection Portal”; and

    

    (iv) such
      other documents and instruments as are reasonably necessary to consummate the
      transactions contemplated hereby.

     

    
      
         

      

      
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    3.3 Conditions
      to Closing.
      Buyer
      and Seller shall not be obligated to consummate the Closing and the transactions
      contemplated hereby and may terminate this Agreement without incurring any
      liability unless (a) Buyer has delivered the items specified in Section 3.2(a)
      and Seller has delivered the items specified in Section 3.2(b).

    

    ARTICLE
      IV.

    

    REPRESENTATIONS
      AND WARRANTIES OF SELLER

    

    Seller
      represents and warrants to Buyer that:

    

    4.1 Organization.
      Seller
      is a limited liability company duly organized, validly existing and in good
      standing under the laws of the State of California and has full power and
      authority to own, lease and operate its properties and to carry on its business
      as it is now being conducted. Seller is duly qualified or licensed as a foreign
      limited liability company to do business, and is in good standing, in each
      jurisdiction where the character of the properties owned, leased or operated
      by
      it or the nature of its business makes such qualification or licensing
      necessary, except for failures to be so qualified or licensed and in good
      standing that would not, individually or in the aggregate, affect the Acquired
      Assets in a materially adverse manner.

    

    4.2 Authorization.
      Seller
      has all necessary power and authority and has taken all action necessary to
      enter into this Agreement, to consummate the transactions contemplated hereby
      and to perform its obligations hereunder. This Agreement has been duly executed
      and delivered by Seller and is a valid and binding obligation of Seller,
      enforceable against it in accordance with its respective terms subject to the
      effect of applicable bankruptcy, insolvency, reorganization, moratorium and
      other similar laws relating to or affecting the rights of creditors generally
      and limitations imposed by equitable principles, whether considered in a
      proceeding at law or in equity, and the discretion of the court before which
      any
      proceeding therefor may be brought.

    

    4.3 Brokers.
      All
      negotiations relating to this Agreement and the transactions contemplated hereby
      have been conducted without the intervention of any person or entity acting
      on
      behalf of Seller in such a manner as to give rise to any valid claim against
      Buyer for any broker's or finder's commission, fee or similar compensation
      and
      Seller shall indemnify Buyer and hold it harmless from any liability or expense
      arising from any claim for brokerage commissions, finder's fees or other similar
      compensation based on any agreement, arrangement or understanding made by or
      on
      behalf of Seller.

    

    4.4 Litigation,
      Proceedings and Applicable Law.
      There
      are no Actions, suits, investigations or proceedings, at law or in equity or
      before or by any governmental authority or instrumentality or before any
      arbitrator of any kind, pending or, to Seller's Knowledge, threatened (a)
      against Seller which, if determined adversely against Seller, would have a
      material adverse effect on Seller's or Buyer's ability to use the Intellectual
      Property in the manner in which it is now being used by Seller, or (b) seeking
      to delay or enjoin the consummation of the 

     

    
      
         

      

      
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    transactions
      contemplated hereby. To the Knowledge of Seller, there are no outstanding
      orders, decrees or stipulations issued by any federal, state, local or foreign,
      judicial or administrative authority in any proceeding to which Seller is or
      was
      a party relating to the Acquired Assets.

    

    4.5 No
      Conflict Or Violation.
      Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby or thereby will result in (a) a violation
      of or
      a conflict with any provision of the Articles of Organization or LLC Operating
      Agreement of Seller, (b) a material breach or termination of, or a material
      default under, any term or provision of any contract to which Seller is a party
      or an event which, with notice, lapse of time, or both, would result in any
      such
      material breach, such termination or such material default, or (c) a material
      violation by Seller of any Legal Requirement or an event which, with notice,
      lapse of time or both, would result in such a material violation.

    

    4.6 Intellectual
      Property.
      

    

    (a) Seller
      owns all rights to the Acquired Assets without any conflict or infringement
      of
      the intellectual property rights of others. All source code included within
      the
      Intellectual Property constitutes a trade secret of Seller and is not part
      of
      the public knowledge or literature, and Seller has taken reasonable action
      to
      protect such source code as a trade secret. In addition, Seller has taken
      reasonable steps (including, without limitation, entering into Confidentiality
      Agreements with all officers and employees of and consultants involved in
      Seller's business) to maintain the secrecy and confidentiality of and its
      proprietary rights in, all Intellectual Property.

    

    (b)
       Schedule
      A lists (i) all patents and patent applications and all registered copyrights,
      trade names, trademarks, service marks and other company, product or service
      identifiers included in the Intellectual Property, and specifies the
      jurisdictions in which each of the foregoing has been registered, including
      the
      respective registration numbers, and/or any application for any such
      registration has been filed; (ii) all licenses, sublicenses and other agreements
      as to which Seller is a party and pursuant to which Seller or any other Person
      is authorized to use any Intellectual Property; and (iii) all licenses under
      which Seller is or may be obligated to make royalty or other payments. Copies
      of
      all licenses, sublicenses and other agreements identified pursuant to clauses
      (ii) and (iii) above have been delivered by Seller to Buyer.

    

    (c) Seller
      is
      not in violation in any material respect of any license, sublicense or agreement
      described in Schedule A. As a result of the execution and delivery of this
      Agreement or the performance of Seller's obligations hereunder, neither Seller
      nor Buyer shall be in violation in any material respect of any license,
      sublicense or agreement described in such schedule.

    

    (d) Seller
      is
      the sole owner of all necessary right, title and interest in and to (free and
      clear of any liens, encumbrances or security interests) all non-public domain
      Intellectual Property necessary to fully exploit the Acquired Assets and has
      full rights to the use, sale, license or disposal thereof. Except as expressly
      set forth in Schedule A, no other Person has 

     

    
      
         

      

      
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    any
      rights with respect to any of the Intellectual Property, nor is any consent
      or
      approval of any third party needed to fully utilize and exploit the Acquired
      Assets as presently configured.

    

    (e) No
      claims
      with respect to the Intellectual Property have been asserted to Seller, or,
      to
      Seller's Knowledge, are threatened by any person, and Seller knows of no claims
      (i) to the effect that Seller infringes any copyright, patent, trade secret,
      or
      other intellectual property right of any third party or violates any license
      or
      agreement with any third party, (ii) contesting the right of Seller to use,
      sell, license or dispose of any Intellectual Property, or (iii) challenging
      the
      ownership, validity or effectiveness of any of the Intellectual
      Property.

    

    (f) To
      the
      Knowledge of Seller, all trademarks, service marks, and other company, product
      or service identifiers held by Seller are valid and subsisting
      worldwide.

    

    (g) To
      the
      Knowledge of Seller, and except as expressly set forth in Schedule A, there
      has
      not been and there is not now any unauthorized use, infringement or
      misappropriation of any of the Intellectual Property by any third party. Seller
      has not been sued or, to Seller's Knowledge, charged as a defendant in any
      claim, suit, action or proceeding that involves a claim of infringement of
      any
      patents, trademarks, service marks, copyrights or other intellectual property
      rights that comprise the Acquired Assets. Seller does not have any infringement
      liability with respect to any patent, trademark, service mark, copyright or
      other intellectual property right of any third party insofar as the Acquired
      Assets are concerned.

    

    (h) No
      Intellectual Property is subject to any outstanding order, judgment, decree,
      stipulation or agreement restricting in any material manner the licensing
      thereof by Seller. Seller has not entered into any agreement to indemnify any
      other person against any charge of infringement of any Intellectual Property,
      except in the ordinary course of business. Seller has not entered into any
      agreement granting any third party the right to bring infringement actions
      with
      respect to, or otherwise to enforce rights with respect to, any Intellectual
      Property. Seller has the exclusive right to file, prosecute and maintain all
      applications and registrations with respect to the Intellectual Property
      developed or owned by Seller.

    

    (i)
       Except
      as
      set forth in Schedule A, no person has a license to use or the right to acquire
      a license to use any future version of any product based on the Intellectual
      Property or any product based on the Intellectual Property that is under
      development, and no agreement to which Seller is a party will restrict Buyer
      from charging customers for any such new version or product.

    

    4.7 Assets
      Generally.
      Seller
      holds good and marketable title, license to or leasehold interest in all of
      the
      Acquired Assets and has the complete and unrestricted power and the unqualified
      right to sell, assign and deliver the Acquired Assets to Buyer. Upon
      consummation of the transactions contemplated by this Agreement, Buyer will
      acquire good and marketable title, license or leasehold interest to the Acquired
      Assets free and clear of any encumbrances and there exists no restriction on
      the
      use or transfer of the Acquired Assets. No Person other than Seller has any
      right or interest in the Acquired Assets, including the right to grant interests
      in the Acquired Assets to third parties.

     

    
      
         

      

      
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    4.8 Products.
      The
      Acquired Assets operate in compliance with Seller's specifications for such
      products.

    

    4.9 Working
      Order.
      All of
      the tangible Acquired Assets are, and as of the Closing Date will be, in good
      condition, working order and repair, normal wear and tear excepted.

    

    ARTICLE
      V.

    

    REPRESENTATIONS
      AND WARRANTIES OF BUYER

    

    Buyer
      hereby represents and warrants to Seller as follows:

    

    5.1 Organization
      of Buyer.
      Buyer
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of New Jersey and has full corporate power and authority to own, lease
      and
      operate its properties and to carry on its business as it is now being
      conducted.

    

    5.2 Authorization.
      Buyer
      has all necessary corporate power and authority and has taken all corporate
      action necessary to enter into this Agreement to consummate the transactions
      contemplated hereby and thereby and to perform its obligations hereunder. This
      Agreement and has been duly executed and delivered by Buyer and is a valid
      and
      binding obligation of Buyer, enforceable against it in accordance with its
      terms
      subject to the effect of applicable bankruptcy, insolvency, reorganization,
      moratorium, and other similar laws relating to or affecting the rights of
      creditors generally and limitations imposed by equitable principles, whether
      considered in a proceeding at law or in equity, and the discretion of the court
      before which any proceeding therefor may be brought.

    

    5.3 Brokers.
      All
      negotiations relating to this Agreement and the transactions contemplated hereby
      have been conducted without the intervention of any person or entity acting
      on
      behalf of Buyer in such a manner as to give rise to any valid claim against
      Seller for any broker's or finder's commission, fee or similar
      compensation.

    

    5.4 Consents
      and Approvals.
      No
      consent, waiver, approval or authorization of or by, or declaration, filing
      or
      registration with, any governmental or regulatory authority is required to
      be
      made or obtained by Buyer in connection with the execution, delivery and
      performance of this Agreement and the consummation of the transactions
      contemplated hereby.

    

    ARTICLE
      VI.

    

    CERTAIN
      COVENANTS

    

    6.1 Covenants
      of Both Parties.
      Buyer,
      on the one hand, and Seller, on the other hand, each covenant to the other
      that:

     

    
      
         

      

      
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    (a) Further
      Assurances.
      Each
      party will cooperate in good faith with the other and will take all appropriate
      action and execute any documents, instruments or conveyances of any kind which
      may be reasonably necessary or advisable to carry out any of the transactions
      contemplated hereunder. From and after the execution hereof, Seller will
      promptly refer all inquiries with respect to the ownership of the Acquired
      Assets to Buyer and execute such documents as Buyer may reasonably request
      from
      time to time to evidence transfer of the Acquired Assets to Buyer.

    

    6.2 Seller's
      Covenants.
      Seller
      covenants to Buyer that:

    

    (a) Cooperation
      and Transition Assistance.
      Seller
      shall use its best efforts to facilitate the transition of customers, customer
      support services, and development, marketing and sales functions related to
      the
      Acquired Assets to Buyer, and shall direct any new inquiries regarding the
      Acquired Assets to Buyer or its assignee.

    

    (b) Documentation.
      Seller
      shall provide Buyer with full and complete documentation, both written and
      computer generated, relating to any business that Seller has conducted using
      the
      Acquired Assets, including all correspondence and files relating to their
      development.

    

    ARTICLE
      VII.

    

    INDEMNIFICATION

    

    7.1 Indemnification
      by the Seller.
      In the
      event Seller (a) breaches or is deemed to have breached any of the
      representations and warranties contained in Article IV herein, or (b) fails
      to
      perform or comply with any of the covenants and agreements set forth in this
      Agreement, Seller shall hold harmless, indemnify and defend Buyer, and each
      of
      its directors, officers, shareholders, attorneys, representatives and agents,
      from and against any Damages incurred or paid by Buyer to the extent such
      Damages arise or result from a breach by Seller of any such representations
      or
      warranties or a violation of any covenant in this Agreement.

    

    7.2 Indemnification
      By Buyer.
      In the
      event Buyer (a) breaches or is deemed to have breached any of the
      representations and warranties contained in Article V herein or (b) fails to
      perform or comply with any of the covenants and agreements set forth in this
      Agreement, then Buyer shall hold harmless, indemnify and defend Seller from
      and
      against any Damages incurred or paid by the Seller to the extent such Damages
      arise or result from a breach by Buyer of any such representations and
      warranties or a violation of any covenant in this Agreement.

    

    7.3 Notification
      Of Claims.
      If any
      party or parties (the "Indemnified
      Party")
      reasonably believes that it is entitled to indemnification hereunder, or
      otherwise receives notice of the assertion or commencement of any third-party
      claim, action, or proceeding (a "Third-Party
      Claim"),
      with
      respect to which such other party or parties (the "Indemnifying
      Party")
      is
      obligated to provide indemnification pursuant to Section 7.1 or 7.2 above,
      the
      Indemnified Party shall promptly give the Indemnifying Party written notice
      of
      such claim for Indemnification (an

     

    
      
         

      

      
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    "Indemnity
      Claim").
      Any
      claim for indemnification under this Section 7 must be brought prior to the
      expiration of the survival period for the representation and warranty as set
      forth in Section 8.1. The delivery of such notice of Indemnity Claim
      ("Claim
      Notice")
      shall
      be a condition precedent to any liability of the Indemnifying Party for
      indemnification hereunder. The Indemnifying Party shall have twenty (20) days
      from the receipt of a Claim Notice (the "Notice
      Period")
      to
      notify the Indemnified Party of whether or not the Indemnifying Party disputes
      its liability to the Indemnified Party with respect to such Indemnity Claim.
      

    

    7.4 Resolution
      Of Claims.
      

    

    (a) With
      respect to any Indemnity Claim involving a Third-Party Claim, following prompt
      notification of the Indemnifying Party, the Indemnified Party shall proceed
      with
      the defense of such Third-Party Claim. During such defense proceedings, the
      Indemnified Party shall keep the Indemnifying Party informed of all material
      developments and events relating to the proceedings. The Indemnifying Party
      shall have a right to be present at the negotiation, defense and settlement
      of
      such Third-Party Claim. The Indemnified Party shall not agree to any settlement
      of the Third-Party Claim without the consent of the Indemnifying Party, which
      consent shall not be unreasonably withheld. Following entry of judgment or
      settlement with respect to the Third-Party Claim, any dispute as to the
      liability of the Indemnifying Party with respect to the Indemnity Claim shall
      be
      resolved as provided in Section 7.5.

    

    (b) With
      respect to any Indemnity Claim not involving a Third-Party Claim, if the
      Indemnifying Party disputes its liability within the Notice Period, the
      liability of the Indemnifying Party shall be resolved in accordance with Section
      7.5.

    

    (c) In
      the
      event that an Indemnified Party makes an Indemnity Claim in accordance with
      Section 7.3 and the Indemnifying Party does not dispute its liability within
      the
      Notice Period, the amount of such Indemnity Claim shall be conclusively deemed
      a
      liability of the Indemnifying Party.

    

    7.5
       Arbitration.
      All
      disputes under this Agreement shall be settled by arbitration before a single
      arbitrator pursuant to the commercial law rules of the American Arbitration
      Association. Arbitration may be commenced at any time by any party hereto giving
      written notice to each other party to a dispute that such dispute has been
      referred to arbitration under this Section 7.5. The arbitrator shall be selected
      by the joint agreement of the Indemnifying Party and Indemnified Party, but
      if
      they do not so agree within 20 days after the date of the notice referred to
      above, the selection shall be made pursuant to the rules from the panels of
      arbitrators maintained by such Association. Any award rendered by the arbitrator
      shall be conclusive and binding upon the parties hereto; provided,
      however,
      that
      any such award shall be accompanied by a written opinion of the arbitrator
      giving the reasons for the award. This provision for arbitration shall be
      specifically enforceable by the parties and the decision of the arbitrator
      in
      accordance herewith shall be final and binding without right of appeal. Each
      party shall pay its own expenses of arbitration and the expenses of the
      arbitrator shall be equally shared; provided,
      however,
      that if
      in the opinion of the arbitrator any claim for indemnification or any defense
      or
      objection thereto was unreasonable, the arbitrator may assess, as part of his
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    of
      the
      arbitration expenses of the other party (including reasonable attorneys' fees)
      and of the arbitrator against the party raising such unreasonable claim, defense
      or objection. To the extent that arbitration may not be legally permitted
      hereunder and the parties to any dispute hereunder may not at the time of such
      dispute mutually agree to submit such dispute to arbitration, any party may
      commence a civil action in a court of appropriate jurisdiction to solve disputes
      hereunder. Nothing contained in this Section 7.5 shall prevent the parties
      from
      settling any dispute by mutual agreement at any time.

    

    7.6 Indemnification
      Threshold.
      Notwithstanding anything to the contrary herein, in no event shall any party
      be
      liable to any other party under any warranty, representation, indemnity or
      covenant made by such party in this Agreement until the aggregate amount of
      Damages thereunder against such party exceeds Ten Thousand Dollars ($10,000)
      (the "Threshold"),
      at
      which point such party shall be liable for the full amount of liability for
      such
      claims below and above the threshold.

    

    ARTICLE
      VIII

    

    MISCELLANEOUS

    

    8.1 Survival
      of Representations and Warranties.
      The
      representations, warranties and indemnities included or provided for in this
      Agreement or in any agreement, schedule or certificate or other document or
      instrument delivered pursuant to this Agreement will survive the Closing Date
      for a period of twenty-four months. No claim may be made by any party hereto
      unless written notice of the claim is given within that twenty-four month
      period; provided,
      however,
      that
      the foregoing limitation period will not apply to a breach of any
      representation, warranty or covenant known to any party before the Closing
      Date.

    

    8.2 Setoff.
      Buyer
      may set off any amount that may be owed to it by Seller under this Agreement
      against any amount otherwise payable to Seller by Buyer, but any such setoff
      shall in no manner limit Seller's liability, if any, to Buyer.

    

    8.3 Noncompetition.
      Seller
      shall not, at any time within the 3-year period immediately following the
      Closing Date, directly or indirectly engage in any activities similar to or
      competitive with the activities of Buyer. This provision shall be of no further
      effect in the event of a breach by Buyer of its obligations under Sections
      2.2(a).

    

    8.4
       Press
      Releases and Public Announcements.
      Prior
      to the Closing Date, neither Buyer nor Seller (nor their respective
      shareholders, officers and directors) shall issue any press release or make
      any
      public announcement concerning the matters set forth in this Agreement (other
      than as required by applicable disclosure rules or regulations) without the
      consent of the other party. Buyer and Seller will cooperate to jointly prepare
      and issue any press release which may be issued to announce the closing of
      the
      transactions contemplated by this Agreement.

    

    8.5 Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns. Buyer may, without need for any
      

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    consent
      or notice to Seller, assign all of its rights and obligations under this
      Agreement to any Affiliate of Buyer, and such assignment shall release Buyer
      of
      all of its liabilities and obligations to Seller, provided such liabilities
      and
      obligations are fully assumed by Buyer's assignee.

    

    8.6 Notices.
      Unless
      otherwise provided herein, any notice, request, instruction or other document
      to
      be given hereunder by either party to the other shall be in writing and
      delivered by telecopy or other facsimile (with receipt acknowledged), delivered
      personally or mailed by certified mail, postage prepaid, return receipt
      requested (such mailed notice to be effective on the date such receipt is
      acknowledged or refused), to the addresses of the parties appearing below,
      or to
      such other place and with such other copies as either party may designate as
      to
      itself by written notice to the other.

    

    If
      to the
      Buyer, to: 

    

    
      	
              Futomic
                Industries, Inc.

            	 
	
              8717-53
                Avenue 2nd
                Floor

            	 
	
              Edmonton,
                Alberta, Canada T6E 5E9

            	 
	
              Attention:
                Francisco Schipperheijn

            	 
	
              Facsimile:
                (780) 485-1259

            	 

    

    

          If
      to the
      Seller, to:

    

    
      	
              Owen
                Consulting LLC

            
	
              3712
                Kempton Drive

            
	
              Los
                Alamitos, CA 90720

            
	
              Attention:
                Kelly Owen

            
	
              Facsimile:
                562-331-8446

            

    

        

    8.7 Choice
      of Law.
      This
      Agreement shall be governed under and construed in accordance with the laws
      of
      the State of New Jersey without regard to its choice of law principles. For
      purposes of any dispute or controversy arising under this Agreement or the
      transactions contemplated hereby, the parties mutually consent to the exclusive
      jurisdiction of the state and federal courts sited within the State of New
      Jersey.

    

    8.8
       Entire
      Agreement; Amendments And Waivers.
      This
      Agreement, together with all exhibits and schedules hereto, constitute the
      entire agreement among the parties pertaining to the subject matter hereof
      and
      supersede all prior agreements, understandings, negotiations and discussions,
      whether oral or written, of the parties. No supplement, modification or waiver
      of this Agreement shall be binding unless executed in writing by the party
      to be
      bound thereby. No waiver of any of the provisions of this Agreement shall be
      deemed or shall constitute a waiver of any other provision hereof (whether
      or
      not similar), nor shall such waiver constitute a continuing waiver unless
      otherwise expressly provided.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    8.9
       Multiple
      Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. Facsimile signature pages shall be considered
      originals.

    

    8.10 Titles.
      The
      titles, captions or headings of the Articles and Sections herein are inserted
      for convenience of reference only and are not intended to be a part of or to
      affect the meaning or interpretation of this Agreement.

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be duly executed on their
      respective behalf, by their respective officers thereunto duly authorized,
      in
      multiple originals, all as of the day and year first above written.

    

    SELLER:

    

    OWEN
      CONSULTING LLC

    

    

    By:          /s/
      Kelly Owen

    Name:
      Kelly Owen

    Title:
      Managing Member

    

    

    BUYER:

    

    FUTOMIC
      INDUSTRIES, INC.

    

    

    By:         
      /s/ Francisco Schipperheijn

    Name:
      Francisco Schipperheijn

    Title:
      Chief Executive Officer

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

       

    

    Schedule
      A

    

    (Acquired
      Assets)

    

    

    All
      right, title and interest in patent application pending before the Patent and
      Trademark Office as application no. 60745514, filed by Kelly Owen on or about
      April 24, 2006 titled “Invisidesk Private Communication, Authentication and
      Connection Portal” and all Intellectual Property related
      thereto.EX-10.1

EMPLOYMENT AGREEMENT 

EMPLOYMENT AGREEMENT (the “Agreement”) dated effective October 1, 2006 by and between Encore
Medical Corporation (the “Company”) and Peter Baird (the “Executive”).

The Company desires to employ Executive and to enter into an agreement embodying the terms of
such employment; and

Executive desires to accept such employment and enter into such an agreement;

In consideration of the premises and mutual covenants herein and for other good and valuable
consideration, the parties agree as follows:

1. Term of Employment.  Subject to the provisions of Section 8 of this Agreement,
Executive shall be employed by the Company for a period commencing on October 1, 2006 (the
“Effective Date”) and shall continue through the third anniversary of the Effective Date
(the “Initial Term”); provided that the term will be renewed for successive
one-year periods (each, a “Renewal Term” and together with the Initial Term, the
“Employment Term”) unless either party gives written notice to the other of its intent not
to renew at least one hundred eighty (180) days prior to the expiration of the Initial Term or
Renewal Term then in effect, as applicable, on the terms and subject to the conditions set forth in
this Agreement.

2. Position.

a. During the Employment Term, Executive shall serve as the Company’s Group President,
Therapeutic Devices. In such position, Executive shall have such duties and authority as shall be
determined from time to time by the Chief Executive Officer of the Company consistent with such
position and commensurate with Executive’s experience and expertise.

b. During the Employment Term, Executive will devote substantially all of his business time to
the performance of Executive’s duties hereunder and will not engage in any other business,
profession or occupation for compensation or otherwise which would conflict or interfere with the
rendition of such services either directly or indirectly, without the prior written consent of the
Company; provided that nothing herein shall preclude Executive, (i) subject to the prior
approval (which shall not be unreasonably withheld) of the Company, from accepting appointment to
or continue to serve on any board of directors or trustees of any business corporation or any
charitable organization, (ii) from participating in charitable activities or managing personal
investments or (iii) from accepting appointment to or continuing to serve on any board of directors
(or similar body) of any portfolio company of The Blackstone Group or any of its affiliates,
provided, in the aggregate, such activities do not conflict or materially interfere with
the performance of Executive’s duties hereunder or conflict with Section 9.

3. Base Salary.  During the Employment Term, the Company shall pay Executive a base
salary at the annual rate of Three Hundred Thousand Dollars ($300,000), payable in regular
installments in accordance with the Company’s usual payment practices.  Executive shall be entitled
to at least a five percent (5%) annual increase in Executive’s base salary on each anniversary of
the Effective Date.  Executive’s annual base salary, as in effect from time to time, is hereinafter
referred to as the “Base Salary.”

4. Bonus.  With respect to each calendar year during the Employment Term beginning in
2007, Executive shall be eligible to earn (i) an annual bonus award (an “Annual Bonus”) targeted at
sixty-seven percent (67%) of Executive’s Base Salary (the “Annual Bonus Opportunity”), based only
upon the achievement of objective performance targets of the Company established by the Company and
contingent upon Executive’s continued employment through the specified payment date, and (ii) a
supplemental bonus award (a “Supplemental Bonus”) targeted at one hundred percent (100%) of
Executive’s Base Salary (the “Supplemental Bonus Opportunity”), based only upon the achievement of
objective stretch incentive targets of the Company established by the Company, and contingent upon
Executive’s continued employment with the Company through the specified payment date. The Annual
Bonus and Supplemental Bonus shall be paid no later than two and one-half (21/2) months following the
end of the calendar year to which such bonuses relate.

5. Equity Awards. On the closing date of the merger of the Company with Grand Slam
Acquisition Corp. pursuant to that certain Merger Agreement dated June 30, 2006 by and among the
Company, Grand Slam Holdings LLC and Merger Sub (the “Closing Date”), the Company shall grant
Executive an amount of stock options to purchase common stock of the Company (the “Initial Stock
Option Grant”) under the Encore Medical Corporation 2006 Stock Incentive Plan (the “Stock Plan”) as
may be adopted on such date. The amount of such stock options shall be determined by the Chief
Executive Officer of the Company in his reasonable discretion. The terms and conditions of such
stock option grants shall be as set forth in the Stock Plan and such time-based and
performance-based stock option award agreements as are set forth for other senior executives of the
Company.

6. Employee Benefits.  During the Employment Term, Executive shall be entitled to
participate in the Company’s compensation and employee benefit plans (other than annual bonus and
severance plans) as in effect from time to time (collectively “Employee Benefits”), on the same
basis as those benefits are generally made available to other senior executives of the Company. 

7. Business Expenses. During the Employment Term, reasonable business expenses
incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the
Company in accordance with Company policies on no less often than a monthly basis for expenses
incurred in the prior month; provided that reimbursement shall in all events be made within two and
one-half (21/2) months following the end of the year in which the expense was incurred.

8. Termination.  The Employment Term and Executive’s employment hereunder may be
terminated by either party at any time and for any reason; provided that each party will be
required to give the other party at least thirty (30) days advance written notice of any such
termination.  Notwithstanding any other provision of this Agreement, the provisions of this Section
8 and the stock option award agreements shall exclusively govern Executive’s rights upon
termination of employment with the Company and its affiliates.

a. By the Company For Cause or By Executive Resignation Without Good Reason.

(i) The Employment Term and Executive’s employment hereunder may be terminated by the Company
for Cause (as defined below) and shall terminate automatically upon Executive’s resignation without
Good Reason (as defined in Section 8(c)).

(ii) For purposes of this Agreement, “Cause” shall mean (A) Executive’s willful and continued
failure to substantially perform Executive’s duties hereunder (other than any such failure
resulting from Executive’s Disability or any such failure subsequent to Executive being delivered
notice of the Company’s intent to terminate Executive’s employment without Cause or delivering to
the Company a notice of Executive’s intent to terminate for Good Reason) following written notice
by the Company to Executive which specifically identifies such failure and Executive not curing
such failure within thirty (30) days following receipt of such notice (for the avoidance of doubt,
unsatisfactory performance by the Executive of his duties shall not be deemed to be a failure to
substantially perform), (B) conviction of, or a plea of nolo contendere to, (x) a
felony (other than traffic-related) under the laws of the United States or any state thereof or any
similar criminal act in a jurisdiction outside the United States or (y) a crime involving moral
turpitude that could be injurious to the Company or its reputation, (C) Executive’s willful
malfeasance or willful misconduct which is materially and demonstrably injurious to the Company,
(D) any act of fraud by Executive in the performance of Executive’s duties hereunder, or (E)
Executive’s material breach of the provisions of Sections 9 or 10 of this Agreement. For purpose
of the definition of Cause set forth above, no act or failure to act shall be considered “willful”
unless done or omitted to be done by Executive in bad faith or without reasonable belief that
Executive’s action was in the best interests of the Company and its affiliates. Any act, or
failure to act, based upon authority given pursuant to a resolution duly adopted by the board of
directors of the Company (the “Board”) shall be conclusively presumed to be done, or omitted to be
done, by Executive in good faith and in the best interests of the Company.

(iii) If Executive’s employment is terminated by the Company for Cause, or if Executive
resigns without Good Reason, Executive (or his dependents or beneficiaries, as applicable) shall be
entitled to receive:

(A) the Base Salary through the date of termination in a lump sum payment, to
be paid on the tenth (10th) business day following such termination;

(B) reimbursement for any unreimbursed business expenses properly incurred by
Executive in accordance with Company policy prior to the date of Executive’s
termination in a lump sum payment, to be paid on the tenth (10th)
business day following such termination;

(C) any earned but unpaid Annual Bonus and Supplemental Bonus with respect to
the most recently completed calendar year prior to the date on which such
termination occurs, in each case, to be paid no later than two and one-half (21/2)
months following the end of such calendar year;

(D) any accrued and unused vacation pay in a lump sum payment, to be paid on
the tenth (10th) business day following such termination; and

(E) such Employee Benefits, if any, as to which Executive (or his dependents or
beneficiaries, as applicable) may be entitled under the employee benefit plans of
the Company or its affiliates pursuant to the terms of such plans (the amounts
described in clauses (A) through (E) hereof being referred to as the “Accrued
Rights”).

Following such termination of Executive’s employment by the Company for Cause or resignation
by Executive without Good Reason, except as set forth in this Section 8(a)(iii) and any stock
option award agreements or otherwise required by law, Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

b. Disability or Death.

(i) The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s
death and may be terminated by the Company if Executive becomes physically or mentally
incapacitated and is therefore unable for a period of six (6) consecutive months or for an
aggregate of nine (9) months in any eighteen (18) consecutive month period to perform Executive’s
duties with reasonable accommodation (such incapacity is hereinafter referred to as “Disability”).

(ii) Upon termination of Executive’s employment hereunder for either Disability or death,
Executive or Executive’s estate, dependents or beneficiaries, as applicable, shall be entitled to
receive the Accrued Rights.

Following Executive’s termination of employment due to death or Disability, except as set
forth in this Section 8(b)(ii) and any stock option award agreements or otherwise required by law,
Executive shall have no further rights to any compensation or any other benefits under this
Agreement.

c. By the Company Without Cause or Resignation by Executive for Good Reason.

(i) The Employment Term and Executive’s employment hereunder may be terminated by the Company
without Cause or by Executive’s resignation for Good Reason. Notwithstanding anything to the
contrary herein, written notice of intent not to renew or any failure to renew the Initial Term or
any Renewal Term shall not constitute either a termination by the Company without Cause or a basis
for the Executive to terminate for Good Reason.

(ii) For purposes of this Agreement, “Good Reason” shall mean (A) any reduction in Executive’s
Base Salary, Annual Bonus Opportunity, Supplemental Bonus Opportunity or any material Employee
Benefits, (B) any substantial diminution in Executive’s position or duties, adverse change in
reporting lines or assignment of duties materially inconsistent with Executive’s position (other
than in connection with an increase in responsibility or a promotion), including but not limited to
no longer reporting to the Chief Executive Officer of the Company, its successor or its ultimate
parent company in connection with a corporate transaction, (C) a failure on the part of the Company
to grant or cause to be granted to Executive any of the Equity Awards set forth in Section 5
herein, or (D) any material failure on the part of the Company to comply with and satisfy the terms
of Sections 3, 4, 5, 6, 7, 11 and 13(k) of this Agreement; provided that the events
described (A), (B), (C) or (D) of this Section 8(c)(ii) shall constitute Good Reason only if the
Company fails to cure such event within thirty (30) days after receipt from Executive of written
notice of the event which constitutes Good Reason.

(iii) If Executive’s employment is terminated by the Company without Cause (other than by
reason of death or Disability) or if Executive resigns for Good Reason, Executive (or his
dependents or beneficiaries, as applicable) shall be entitled to receive:

(A) the Accrued Rights;

(B) a lump sum, to be paid on the tenth (10th) business day after
such termination, equal to the sum of: (i) the most recent Annual Bonus, if any,
awarded to Executive, or, if such termination occurs in 2006 or 2007, then the
Annual Bonus Opportunity and (ii) the most recent Supplemental Bonus, if any,
awarded to Executive, or, if such termination occurs in 2006 or 2007, then the
Supplemental Bonus Opportunity; and

(C) subject to Executive’s continued compliance with the provisions of Sections
9 and 10 herein, continued payment of the Base Salary, payable in regular
installments in accordance with the Company’s usual payment practices, until twelve
(12) months after the date of such termination; provided, that the aggregate amount
described in clauses (B) and (C) shall be reduced by the present value of any other
cash severance payable to Executive under any other plans, programs or arrangements
of the Company or its affiliates.

Following Executive’s termination of employment by the Company without Cause (other than by
reason of Executive’s death or Disability) or by Executive’s resignation for Good Reason, except as
set forth in this Section 8(c)(iii) and any stock option award agreements or otherwise required by
law, Executive shall have no further rights to any compensation or any other benefits under this
Agreement.

d. Notice of Termination.  Any purported termination of employment by the Company or
by Executive (other than due to Executive’s death) shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section 13(l) hereof.  For purposes of
this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of employment under the
provision so indicated.

9. Non-Competition.

a. Executive acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its subsidiaries and accordingly agrees as follows:

(1) During the Employment Term and, for a period of one year following the date Executive
ceases to be employed by the Company (the “Restricted Period”), Executive will not, whether on
Executive’s own behalf or on behalf of or in conjunction with any person, firm, partnership, joint
venture, association, corporation or other business organization, entity or enterprise whatsoever
(“Person”), directly or indirectly solicit or assist in soliciting in competition with the Company,
the business of any client or prospective client:

(i) with whom Executive had personal contact or dealings on behalf of the Company during the
one year period preceding Executive’s termination of employment; or

(ii) for whom Executive had direct or indirect responsibility during the one year period
immediately preceding Executive’s termination of employment;

provided, that, if Executive serves as a management consultant or becomes affiliated
with a private equity firm as a partner, employee, director or otherwise, Executive shall not be
deemed to directly or indirectly solicit or assist in soliciting in competition with the Company,
the business of any client or prospective client unless Executive is directly or indirectly
involved in such solicitation or assistance or (a) Executive provides, as a management consultant,
any services for the competing organization, and is directly or indirectly involved in such
solicitation or assistance or (b) Executive provides services on a full or part-time basis as an
employee, officer, director or consultant of a portfolio company (of such private equity firm) that
engages in the activities.

(2) During the Restricted Period, Executive will not directly or indirectly:

(i) engage in any business that competes with the business of the Company or its subsidiaries
(including, without limitation, businesses which the Company or its subsidiaries have specific
plans to conduct in the future and as to which Executive is aware of such planning) (a “Competitive
Business”), provided, that, if Executive serves as a management consultant or becomes
affiliated with a private equity firm as a partner, employee, director or otherwise, Executive
shall not be deemed to be engaged in a Competitive Business unless Executive is directly or
indirectly involved in such competition or (a) Executive provides, as management consultant, any
services for the competing organization, or (b) Executive provides services on a full or part-time
basis as an employee, officer, director or consultant of a portfolio company (of such private
equity firm) that engages in the Competitive Business;

(ii) enter the employ of, or render any services to, any Person (or any division or controlled
or controlling affiliate of any Person) who or which engages in a Competitive Business,
provided, that, if Executive serves as a management consultant or becomes affiliated with a
private equity firm as a partner, employee, director or otherwise, Executive shall not be deemed to
be employed by or rendering services to any Person unless Executive is directly or indirectly
involved in such activities or (a) Executive provides, as a management consultant, any services for
the competing organization or (b) Executive provides services on a full or part-time basis as an
employee, officer, director or consultant of a portfolio company (of such private equity firm) that
engages in the Competitive Business;

(iii) acquire a financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer,
director, principal, agent, trustee or consultant, provided, that, if Executive serves as a
management consultant or becomes affiliated with a private equity firm as a partner, employee,
director or otherwise, Executive shall not be deemed to be acquiring a financial interest in or
otherwise becoming actively involved with a Competitive Business unless Executive is directly or
indirectly involved in such activities or (a) Executive provides, as a management consultant, any
services for the competing organization, and is directly or indirectly involved in such activities
or (b) Executive provides services on a full or part-time basis as an employee, officer, director
or consultant of a portfolio company (of such private equity firm) that engages in the activities;
or

(iv) interfere with, or attempt to interfere with, business relationships (whether formed
before, on or after the date of this Agreement) between the Company or any of its affiliates and
customers, clients, suppliers partners, members or investors of the Company or its affiliates,
provided, that, if Executive serves as a management consultant or becomes affiliated with a
private equity firm as a partner, employee, director or otherwise, Executive shall not be deemed to
be interfering with, or attempting to interfere with, business relationships (whether formed
before, on or after the date of this Agreement) unless Executive is directly or indirectly involved
in such attempts or interference or (a) Executive provides, as a management consultant, any
services for the organization which is attempting interference and is directly or indirectly
involved in such activities or (b) Executive provides services on a full or part-time basis as an
employee, officer, director or consultant of a portfolio company (of such private equity firm) that
engages in the activities.

(3) Notwithstanding anything to the contrary in this Agreement, Executive may directly or
indirectly own, solely as an investment, securities of any Person engaged in the business of the
Company or its subsidiaries which are publicly traded on a national or regional stock exchange or
on the over-the-counter market if Executive (i) is not a controlling person of, or a member of a
group which controls, such person and (ii) does not, directly or indirectly, own five percent (5%)
or more of any class of securities of such Person, provided, however, that the
limitations set forth in clauses (i) and (ii) above shall not apply if Executive has an interest in
a management consulting firm or private equity firm (or any of their affiliated entities) which is
a controlling person, controls or owns five percent (5%) or more of any class of securities of a
Person engaged in a Competitive Business unless Executive is directly or indirectly involved in the
activities of the Competitive Business or (a) Executive provides, as a management consultant, any
services to the Competitive Business or (b) Executive provides services on a full or part-time
basis as an employee, officer, director or consultant of a portfolio company (of such private
equity firm) that engages in the Competitive Business.

(4) During the Restricted Period, Executive will not, whether on Executive’s own behalf or on
behalf of or in conjunction with any Person, directly or indirectly:

(i) solicit or encourage any employee of the Company or its affiliates to leave the employment
of the Company or its affiliates (other than as a result of a general advertisement of employment
made by Executive’s subsequent employer or business, not directed at any such employee),
provided, that, if Executive serves as a management consultant or becomes affiliated with a
private equity firm as a partner, employee, director or otherwise, Executive shall not be deemed to
be soliciting or encouraging any employee to leave employment unless Executive is directly or
indirectly involved in such solicitation or encouragement or (a) Executive provides, as a
management consultant, any services for the organization that engages in the solicitation or
encouragement and is directly or indirectly involved in such solicitation or encouragement or
(b) Executive provides services on a full or part-time basis as an employee, officer, director or
consultant of a portfolio company (of such private equity firm) that engages in the activities; or

(ii) hire any such employee who was employed by the Company or its affiliates as of the date
of Executive’s termination of employment with the Company or who left the employment of the Company
or its affiliates coincident with, or within one year prior to or after, the termination of
Executive’s employment with the Company, provided, that, if Executive serves as a
management consultant or becomes affiliated with a private equity firm as a partner, employee,
director or otherwise, Executive shall not be deemed to be hiring any employee unless Executive is
directly or indirectly involved with the hiring or encouragement or (a) Executive provides, as a
management consultant, any services for the organization that engages in the hiring and is directly
or indirectly involved in such activities or (b) Executive provides services on a full or part-time
basis as an employee, officer, director or consultant of a portfolio company (of such private
equity firm) that engages in the activities.

(5) During the Restricted Period, Executive will not, directly or indirectly, solicit or
encourage to cease work with the Company or its affiliates any consultant then under contract with
the Company or its affiliates, provided, that, if Executive serves as a management
consultant or becomes affiliated with a private equity firm as a partner, employee, director or
otherwise, Executive shall not be deemed to be soliciting or encouraging the cessation of work
unless Executive is directly or indirectly involved with the solicitation or encouragement or (a)
Executive provides, as a management consultant, any services for the organization that engages in
the activities and is directly or indirectly involved in such activities or (b) Executive provides
services on a full or part-time basis as an employee, officer, director or consultant of a
portfolio company (of such private equity firm) that engages in the activities.

b. It is expressly understood and agreed that although Executive and the Company consider the
restrictions contained in this Section 9 to be reasonable, if a final judicial determination is
made by a court of competent jurisdiction that the time or territory or any other restriction
contained in this Agreement is an unenforceable restriction against Executive, the provisions of
this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum
time and territory and to such maximum extent as such court may judicially determine or indicate to
be enforceable.  Alternatively, if any court of competent jurisdiction finds that any restriction
contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make
it enforceable, such finding shall not affect the enforceability of any of the other restrictions
contained herein. The provision of Section 9 shall survive termination of Executive’s employment
for any reason.

10. Confidentiality; Intellectual Property.

a. Confidentiality.

(i) Executive will not at any time (whether during or after Executive’s employment with the
Company) (x) retain or use for the benefit, purposes or account of Executive or any other Person
(other than the Company or its affiliates); or (y) disclose, divulge, reveal, communicate, share,
transfer or provide access to any Person outside the Company (other than its professional advisers
who are bound by confidentiality obligations), any non-public, proprietary or confidential
information — including without limitation trade secrets, know-how, research and development,
software, databases, inventions, processes, formulae, technology, designs and other intellectual
property, information concerning finances, investments, profits, pricing, costs, products,
services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting,
training, advertising, sales, marketing, promotions, government and regulatory activities and
approvals — concerning the past, current or future business, activities and operations of the
Company, its subsidiaries or affiliates and/or any third party that has disclosed or provided any
of same to the Company on a confidential basis (“Confidential Information”) without the prior
written authorization of the Board.

(ii) “Confidential Information” shall not include any information that is (a) generally known
to the industry or the public other than as a result of Executive’s breach of this covenant; (b)
made available to Executive by a third party without, to the Executive’s knowledge, breach of any
confidentiality obligation; or (c) required by law to be disclosed; provided that Executive
shall give prompt written notice to the Company of such requirement, disclose no more information
than is so required, and cooperate with any attempts by the Company to obtain a protective order or
similar treatment.

(iii) Upon termination of Executive’s employment with the Company for any reason, Executive
shall (x) cease and not thereafter commence use of any Confidential Information or intellectual
property (including without limitation, any patent, invention, copyright, trade secret, trademark,
trade name, logo, domain name or other source indicator) owned or used by the Company, its
subsidiaries or affiliates; (y) immediately destroy, delete, or return to the Company, at the
Company’s option, all originals and copies in any form or medium (including memoranda, books,
papers, plans, computer files, letters and other data) in Executive’s possession or control
(including any of the foregoing stored or located in Executive’s office, home, laptop or other
computer, whether or not Company property) that contain Confidential Information or otherwise
relate to the business of the Company, its affiliates and subsidiaries, except that Executive may
retain only those portions of any personal notes, notebooks and diaries that do not contain any
Confidential Information; and (z) notify and fully cooperate with the Company regarding the
delivery or destruction of any other Confidential Information of which Executive is or becomes
aware.

b. Intellectual Property.

(i) If Executive creates, invents, designs, develops, contributes to or improves any product,
process or written document, either alone or with third parties, at any time during Executive’s
employment by the Company and within the scope of such employment and/or with the use of any the
Company resources (“Company Works”), Executive shall promptly and fully disclose same to the
Company and hereby irrevocably assigns, transfers and conveys, to the maximum extent permitted by
applicable law, all rights and intellectual property rights therein (including rights under patent,
industrial property, copyright, trademark, trade secret, unfair competition and related laws) to
the Company to the extent ownership of any such rights does not vest originally in the Company.

(ii) Executive shall take all requested actions and execute all requested documents (including
any licenses or assignments required by a government contract) at the Company’s expense (but
without further remuneration) to assist the Company in validating, maintaining, protecting,
enforcing, perfecting, recording, patenting or registering any of the Company’s rights in the prior
works of Executive and Company Works.  If the Company is unable for any other reason to secure
Executive’s signature on any document for this purpose, then Executive hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents as Executive’s
agent and attorney in fact, to act for and in Executive’s behalf and stead to execute any documents
and to do all other lawfully permitted acts in connection with the foregoing.

(iii) Executive shall not improperly use for the benefit of, bring to any premises of,
divulge, disclose, communicate, reveal, transfer or provide access to, or share with the Company
any confidential, proprietary or non-public information or intellectual property relating to a
former employer or other third party without the prior written permission of such third party. 
Executive hereby indemnifies, holds harmless and agrees to defend the Company and its officers,
directors, partners, employees, agents and representatives from any breach of the foregoing
covenant.  Executive shall comply with all relevant policies and guidelines of the Company,
including regarding the protection of confidential information and intellectual property and
potential conflicts of interest.

(iv) The provisions of Section 10 shall survive the termination of Executive’s employment for
any reason.

11. Tax Matters.

a. Golden Parachute. In the event it shall be determined that any payment or benefit
to Executive, by the Company, any affiliate of the Company, any person who acquires ownership or
effective control of the Company or ownership of a substantial portion of the Company assets
(within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
and the regulations thereunder) or any affiliate of such Person, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Change
in Control Payments”), is or will be subject to the excise tax imposed by Section 4999 of the
Code or any interest or penalties with respect to such excise tax (such excise tax, together with
any such interest and penalties, are collectively referred to as the “Excise Tax”), then
Executive shall be entitled to receive an additional payment (a “280G Reimbursement
Payment”) in an amount such that after payment by Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including any income tax, employment tax
or Excise Tax, imposed upon the 280G Reimbursement Payment, Executive retains an amount of the 280G
Reimbursement Payment equal to the Excise Tax imposed upon the Change in Control Payments. The
280G Reimbursement Payment shall be paid on the thirtieth (30th) day from the date that Executive
is deemed to have “excess parachute payments” as defined in Section 280G of the Code. All
mathematical determinations, and all determinations as to whether any of the Change in Control
Payments are “parachute payments” (within the meaning of Section 280G of the Code), that are
required to be made hereunder, including determinations as to whether a 280G Reimbursement Payment
is required and the amount of such 280G Reimbursement Payment shall be made by the Company’s
accounting firm (the “Accounting Firm”), which shall provide its determination (the
“Determination”), together with detailed supporting calculations regarding the amount of
any 280G Reimbursement Payment and any other relevant matter, both to the Company and Executive by
no later than ten (10) days following the date of employment termination or, if applicable, such
earlier time as is requested by the Company or Executive (if Executive reasonably believes that any
of the Change in Control Payments may be subject to the Excise Tax). If the Accounting Firm
determines that no Excise Tax is payable by Executive, it shall furnish Executive and the Company
with an opinion reasonably acceptable to Executive and the Company that no Excise Tax is payable
(including the reasons therefor) and that Executive has substantial authority not to report any
Excise Tax on his federal income tax return. Any determination by the Accounting Firm shall be
binding upon the Company and Executive, absent manifest error. As a result of uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that 280G Reimbursement Payments not made by the Company should have
been made (“Underpayment”), or that 280G Reimbursement Payments will have been made by the
Company which should not have been made (“Overpayments”). In either such event, the
Accounting Firm shall determine the amount of the Underpayment or Overpayment that has occurred.
In the case of an Underpayment, the amount of such Underpayment (together with any interest and
penalties payable by Executive as a result of such Underpayment) shall be promptly paid by the
Company to or for the benefit of Executive. In the case of an Overpayment, Executive shall, at the
direction and expense of the Company, take such steps as are reasonably necessary (including the
filing of returns and claims for refund), follow reasonable instructions from, and procedures
established by, the Company, and otherwise reasonably cooperate with the Company to correct such
Overpayment, provided, however, that (i) Executive shall not in any event be obligated to return to
the Company an amount greater than the net after-tax portion of the Overpayment that he has
retained or has recovered as a refund from the applicable taxing authorities and (ii) if a 280G
Reimbursement Payment is determined to be payable, this provision shall be interpreted in a manner
consistent with an intent to make Executive whole, on an after-tax basis, from the application of
the Excise Tax, it being understood that the correction of an Overpayment may result in Executive
repaying to the Company an amount which is less than the Overpayment. The cost of the Accounting
Firm in connection with any such Determination shall be paid by the Company.

12. Specific Performance.  Executive acknowledges and agrees that the Company’s
remedies at law for a breach or threatened breach of any of the provisions of Section 9 or
Section 10 would be inadequate and the Company would suffer irreparable damages as a result of such
breach or threatened breach.  In recognition of this fact, Executive agrees that, in the event of
such a breach or threatened breach, in addition to any remedies at law, the Company, without
posting any bond, shall be entitled to obtain equitable relief in the form of specific performance,
temporary restraining order, temporary or permanent injunction or any other equitable remedy which
may then be available.

13. Miscellaneous.

a. Governing Law.  This Agreement shall be governed by and construed in accordance
with the laws of the State of Texas, without regard to conflicts of laws principles thereof.

b. Non-Exclusivity of Rights. Nothing in this Agreement shall prevent or limit
Executive’s continuing or future participation in any benefit, bonus, incentive or other plan or
program provided by the Company and for which Executive may qualify in the sole discretion of the
Board or any applicable committee thereof.

c. Entire Agreement/Amendments.  This Agreement, together with the stock option
agreements and equity award agreements, contains the entire understanding of the parties with
respect to the employment of Executive by the Company.  There are no restrictions, agreements,
promises, warranties, covenants or undertakings between the parties with respect to the subject
matter herein other than those expressly set forth herein.  This Agreement may not be altered,
modified, or amended except by written instrument signed by the parties hereto.

d. No Waiver.  The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive
such party of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

e. No Set Off, No Mitigation, No Offset. The Company’s obligation to pay Executive
the amounts provided and to make the arrangements provided hereunder shall not be subject to
set-off, counterclaim or recoupment of amounts owed by Executive to the Company or its affiliates.
Executive shall not be required to mitigate the amount of any payment provided for pursuant to this
Agreement nor shall the amount be reduced on account of any payments received by Executive from any
other party.

f. Severability.  In the event that any one or more of the provisions of this
Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions of this Agreement shall not be affected
thereby.

g. Assignment.  This Agreement, and all of Executive’s rights and duties hereunder,
shall not be assignable or delegable by Executive.  Any purported assignment or delegation by
Executive in violation of the foregoing shall be null and void ab initio and of no force and
effect.  This Agreement may be assigned by the Company to a person or entity which is a subsidiary
or a successor in interest to substantially all of the business operations of the Company.  Upon
such assignment, the rights and obligations of the Company hereunder shall become the rights and
obligations of such subsidiary or successor person or entity.

h. Amendment. This Agreement may not be amended or modified except by an instrument
in writing executed by both the Company and Executive.

i. Successors; Binding Agreement.  This Agreement shall inure to the benefit of and be
binding upon personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.

j. Legal Fees. The Company shall reimburse Executive’s documented reasonable legal
fees in connection with the negotiation of this Agreement.

k. Indemnification. The Company and its successors and/or assigns will indemnify,
hold harmless, and defend Executive to the fullest extent permitted by applicable law with respect
to any claims that may be brought against Executive arising out of or related to any action taken
or not taken in Executive’s capacity as an employee, officer or director of the Company or any of
its affiliates, including, without limitation, the advancement of legal fees and expenses, as such
fees and expenses are incurred by Executive. In addition, Executive shall be covered, in respect
of Executive’s activities as an officer or director of the Company or any of its subsidiaries, by
the Company’s (or any of its subsidiaries’) Directors and Officers liability policy or other
comparable policies, if any, obtained by the Company’s (or any of its subsidiaries’) successors, to
the fullest extent permitted by such policies.

l. Notice.  For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered by hand or overnight courier or three days after it has been mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the respective addresses
set forth below in this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of address shall be
effective only upon receipt.

	 	 	 	 	 
	 
	 	 	 	 
	If to the Company:
	 	 	 	 
	   Encore Medical Corporation

	 
	 	9800 Metric Blvd.
	   Austin, Texas  78758

	   Attn:  Chief Executive Officer

	 
	 	 	 	 
	If to Executive:
	 	 	 	 
	 
	 	425 Pottersvile Road
	   Far Hills, NJ  07931

, or to the most recent address of Executive set forth in the personnel records of
the Company.

m. Dispute Resolution. Any dispute or controversy arising under or in connection with
this Agreement shall be settled exclusively by arbitration in Austin, Texas under the Employment
Dispute Resolution Rules of the American Arbitration Association (“AAA”) then currently in
effect, as modified herein. Arbitration proceedings shall take place in Austin, Texas, before a
single neutral arbitrator who shall be a lawyer. The arbitrator’s award shall be final and
judgment may be entered upon such award by a court of competent jurisdiction. This arbitration
procedure will be governed by the Federal Arbitration Act as will any actions to compel, enforce or
vacate proceedings, awards, orders of the arbitration or settlement under this procedure. Each
party shall be responsible for and directly pay its own fees and expenses of counsel and other
experts retained in connection with such dispute or controversy, on a current basis as they may be
incurred.

n. Prior Agreements  This Agreement supersedes all prior agreements and understandings
(including verbal agreements) between Executive and the Company and/or its affiliates regarding the
terms and conditions of Executive’s employment with the Company and/or its affiliates.

o. Cooperation.  Executive shall provide Executive’s reasonable cooperation in
connection with any action or proceeding (or any appeal from any action or proceeding) which
relates to events occurring during Executive’s employment hereunder.  This provision shall survive
any termination of this Agreement.

p. Withholding Taxes.  The Company may withhold from any amounts payable under this
Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any
applicable law or regulation.

q. Counterparts.  This Agreement may be signed in counterparts, each of which shall be
an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

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

	 	 	 
	ENCORE MEDICAL CORPORATION

	 	Peter Baird
	 
	 	 
	/s/ Harry L. Zimmerman

	 	/s/ Peter Baird
	 

	 	 
	By: Harry L. Zimmerman

	 	29 September 2006

Title: EVP – General Counsel

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