Document:

exv10w2

Exhibit 10.2

AMKOR TECHNOLOGY, INC.

2003 NONSTATUTORY INDUCEMENT GRANT STOCK PLAN

(Amended and Restated February 4, 2008)

     1. Purposes of the Plan. The purposes of this Stock Plan are:

	 	•	 	to attract and retain the best available personnel for positions of
substantial responsibility,
	 
	 	•	 	to provide additional incentive to Employees, Directors and Consultants, and
	 
	 	•	 	to promote the success of the Company’s business.

          Nonstatutory Stock Options and Stock Purchase Rights may be granted under the Plan, as
determined by the Administrator.

          No employee is automatically entitled to participate in, or be considered for participation
in, the Plan at all or at a particular level. Participation is one grant under the Plan and does
not imply any right to participate, or to be considered to participate in any later grant under the
Plan. Participation in the Plan does not create any right to, or expectation of, continued
employment.

     2. Definitions. As used herein, the following definitions shall apply:

          (a) “Administrator” means the Board or any of its Committees as shall be administering
the Plan, in accordance with Section 4 of the Plan.

          (b) “Applicable Laws” means the requirements relating to the administration of stock
option plans under U. S. state corporate laws, U.S. federal and state securities laws, the Code,
any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Options or Stock Purchase Rights are,
or will be, granted under the Plan.

          (c) “Board” means the Board of Directors of the Company.

          (d) “Code” means the Internal Revenue Code of 1986, as amended.

          (e) “Committee” means a committee of Directors appointed by the Board in accordance
with Section 4 of the Plan.

          (f) “Common Stock” means the common stock of the Company.

          (g) “Company” means Amkor Technology, Inc., a Delaware corporation.

          (h) “Consultant” means any person, including an advisor, engaged by the Company or a
Parent or Subsidiary to render services to such entity.

 

 

          (i) “Director” means a member of the Board.

          (j) “Disability” means total and permanent disability as defined in Section 22(e)(3)
of the Code.

          (k) “Employee” means any person employed by the Company or any Parent or Subsidiary of
the Company. An Employee shall not cease to be an Employee in the case of (i) any leave of absence
approved by the Company or (ii) transfers between locations of the Company or between the Company,
its Parent, any Subsidiary, or any successor. Neither service as a Director nor payment of a
director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

          (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (m) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

               (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange or system on the date of
determination (unless the date of determination is not a market trading day, in which case the Fair
Market Value shall be the closing sales price on the last market trading day prior to such date of
determination), as reported in The Wall Street Journal or such other source as the Administrator
deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between
the high bid and low asked prices for the Common Stock on the last market trading day prior to the
day of determination, as reported in The Wall Street Journal or such other source as the
Administrator deems reliable; or

               (iii) In the absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Administrator.

          (n) “Notice of Grant” means a written or electronic notice evidencing certain terms
and conditions of an individual Option or Stock Purchase Right grant. The Notice of Grant is part
of the Option Agreement or Restricted Stock Purchase Agreement.

          (o) “Option” means a nonstatutory stock option granted pursuant to the Plan that is
not intended to qualify, or which by its terms does not so qualify, as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

          (p) “Agreement” means a written or electronic agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement
is subject to the terms and conditions of the Plan.

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          (q) “Optioned Stock” means the Common Stock subject to an Option or Stock Purchase
Right.

          (r) “Optionee” means the holder of an outstanding Option or Stock Purchase Right
granted under the Plan.

          (s) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (t) “Plan” means this 2003 Nonstatutory Stock Plan.

          (u) “Restricted Stock” means Shares issued pursuant to a Stock Purchase Right or
Shares of restricted stock issued pursuant to an Option.

          (v) “Restricted Stock Purchase Agreement” means a written or electronic agreement
between the Company and the Optionee evidencing the terms and restrictions applying to stock
purchased under a Stock Purchase Right. The Restricted Stock Purchase Agreement is subject to the
terms and conditions of the Plan and the Notice of Grant.

          (w) “Retirement” means an Optionee’s ceasing to be a Service Provider on or after the
date when the sum of (i) the Optionee’s age (rounded down to the nearest whole month), plus (ii)
the number of years (rounded down to the nearest whole month) that the Optionee has provided
services to the Company equals or is greater than seventy-five (75).

          (x) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3,
as in effect when discretion is being exercised with respect to the Plan.

          (y) “Section 16(b)” means Section 16(b) of the Exchange Act.

          (z) “Service Provider” means an Employee, Consultant or Director.

          (aa) “Share” means a share of the Common Stock, as adjusted in accordance with Section
13 of the Plan.

          (bb) “Stock Purchase Right” means the right to purchase Common Stock pursuant to
Section 11 of the Plan, as evidenced by a Notice of Grant and Restricted Stock Purchase Agreement.

          (cc) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code.

     3. Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan,
the maximum aggregate number of Shares that may be optioned and sold under the Plan is 300,000
Shares, plus an annual increase to be added as of January 1st of each year during the
term of the Plan equal to the lesser of (i) the number of Shares needed to restore the maximum
aggregate number of Shares which may be optioned and sold under the Plan to 300,000 or (ii) a
lesser amount determined by the Administrator. The Shares may be authorized, but unissued, or
reacquired Common Stock.

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          If an Option or Stock Purchase Right expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares
which were subject thereto shall become available for future grant or sale under the Plan (unless
the Plan has terminated); provided, however, that Shares that have actually been issued
under the Plan, whether upon exercise of an Option or Stock Purchase Right, shall not be returned
to the Plan and shall not become available for future distribution under the Plan, except that if
unvested Shares of Restricted Stock are repurchased by the Company, such Shares shall become
available for future grant under the Plan.

     4. Administration of the Plan.

          (a) Procedure.

               (i) Multiple Administrative Bodies. The Plan may be administered by different
Committees with respect to different groups of Service Providers.

               (ii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt
under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the
requirements for exemption under Rule 16b-3.

               (iii) Other Administration. Other than as provided above, the Plan shall be
administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy
Applicable Laws.

          (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the
case of a Committee, subject to the specific duties delegated by the Board to such Committee, the
Administrator shall have the authority, in its discretion:

               (i) to determine the Fair Market Value;

               (ii) to select the Employees to whom Options and Stock Purchase Rights may be granted
hereunder;

               (iii) to determine the number of shares of Common Stock to be covered by each Option and Stock
Purchase Right granted hereunder;

               (iv) to approve forms of agreement for use under the Plan;

               (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any
Option or Stock Purchase Right granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Options or Stock Purchase Rights may be
exercised (which may be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Option or Stock Purchase
Right or the Shares relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

               (vi) to construe and interpret the terms of the Plan and awards granted pursuant to the Plan;

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               (vii) to prescribe, amend and rescind rules and regulations relating to the Plan, including
rules and regulations relating to sub-plans established for the purpose of satisfying applicable
foreign laws;

               (viii) to modify or amend each Option or Stock Purchase Right (subject to Section 15(c) of the
Plan), including the discretionary authority to extend the post-termination exercisability period
of Options longer than is otherwise provided for in the Plan. Notwithstanding the previous clause,
without stockholder approval, the Administrator may not (1) modify or amend an Option or Stock
Purchase Right to reduce the exercise price of such Option or Stock Purchase Right after it has
been granted (except for adjustments made pursuant to Section 14), (2) cancel any Purchase Right
with a lower exercise price, (3) cancel any outstanding Option or Stock Purchase Right and
immediately replace it with a new Option or Stock Purchase Right, or (4) cancel any outstanding
Option in exchange for cash;

               (ix) to allow Optionees to satisfy withholding tax obligations by electing to have the Company
withhold from the Shares to be issued upon exercise of an Option or Stock Purchase Right that
number of Shares having a Fair Market Value equal to the minimum amount required to be withheld.
The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount
of tax to be withheld is to be determined. All elections by an Optionee to have Shares withheld
for this purpose shall be made in such form and under such conditions as the Administrator may deem
necessary or advisable;

               (x) to authorize any person to execute on behalf of the Company any instrument required to
effect the grant of an Option or Stock Purchase Right previously granted by the Administrator; and

               (xi) to make all other determinations deemed necessary or advisable for administering the
Plan.

          (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations
and interpretations shall be final and binding on all Optionees and any other holders of Options or
Stock Purchase Rights.

     5. Eligibility. Options and Stock Purchase Rights may be granted to Employees.

     6. At-Will Employment. Neither the Plan nor any Option or Stock Purchase Right shall
confer upon an Optionee any right with respect to continuing the Optionee’s relationship as a
Service Provider, nor shall they interfere in any way with the Optionee’s right or the Company’s
right to terminate such relationship at any time, with or without cause.

     7. Term of Plan. The Plan shall become effective upon its adoption by the Board. It
shall continue in effect until terminated under Section 15 of the Plan.

     8. Term of Option. The term of each Option shall be stated in the Option Agreement.

     9. Option Exercise Price and Consideration.

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          (a) Exercise Price. The per share exercise price for the Shares to be issued pursuant
to exercise of an Option shall be determined by the Administrator.

          (b) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and shall determine any
conditions that must be satisfied before the Option may be exercised.

          (c) Form of Consideration. The Administrator shall determine the acceptable form of
consideration for exercising an Option, including the method of payment. Such consideration may
consist of (without limitation):

               (i) cash;

               (ii) check;

               (iii) promissory note;

               (iv) other Shares provided Shares acquired from the Company (directly or indirectly) (A) have
been vested and owned by the Optionee for more than six months on the date of surrender, and (B)
have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which said Option shall be exercised;

               (v) consideration received by the Company under a cashless exercise program implemented by the
Company in connection with the Plan;

               (vi) a reduction in the amount of any Company liability to the Optionee, including any
liability attributable to the Optionee’s participation in any Company-sponsored deferred
compensation program or arrangement;

               (vii) any combination of the foregoing methods of payment; or

               (viii) such other consideration and method of payment for the issuance of Shares to the extent
permitted by Applicable Laws.

     10. Exercise of Option.

          (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder
shall be exercisable according to the terms of the Plan and at such times and under such conditions
as determined by the Administrator and set forth in the Option Agreement. Unless the Administrator
provides otherwise, vesting of Options granted hereunder shall be tolled during any unpaid leave of
absence. An Option may not be exercised for a fraction of a Share.

               An Option shall be deemed exercised when the Company receives: (i) written or electronic
notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise
the Option, and (ii) full payment for the Shares with respect to which the Option is exercised,
together with any applicable withholding taxes. Full payment may consist of any consideration and
method of payment authorized by the Administrator and permitted by the Option Agreement and the
Plan. Shares issued upon exercise of an Option shall be issued in the name of the

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Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after
the Option is exercised. No adjustment will be made for a dividend or other right for which the
record date is prior to the date the Shares are issued, except as provided in Section 13 of the
Plan.

               Exercising an Option in any manner shall decrease the number of Shares thereafter available,
both for purposes of the Plan and for sale under the Option, by the number of Shares as to which
the Option is exercised.

          (b) Termination of Relationship as a Service Provider. If an Optionee ceases to be a
Service Provider, other than upon the Optionee’s death or Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement to the extent that
the Option is vested on the date of termination (but in no event later than the expiration of the
term of such Option as set forth in the Option Agreement). In the absence of a specified time in
the Option Agreement, the Option shall remain exercisable for three (3) months following the
Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or
her entire Option, the Shares covered by the unvested portion of the Option shall revert to the
Plan. If, after termination, the Optionee does not exercise his or her Option within the time
specified by the Administrator, the Option shall terminate, and the Shares covered by such Option
shall revert to the Plan.

          (c) Disability of Optionee. If an Optionee ceases to be a Service Provider as a
result of the Optionee’s Disability, the Optionee may exercise his or her Option within such period
of time as is specified in the Option Agreement to the extent the Option is vested on the date of
termination (but in no event later than the expiration of the term of such Option as set forth in
the Option Agreement). In the absence of a specified time in the Option Agreement, the Option
shall remain exercisable for twelve (12) months following the Optionee’s termination. If, on the
date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

          (d) Death of Optionee. If an Optionee dies while a Service Provider, the Option may
be exercised within such period of time as is specified in the Option Agreement (but in no event
later than the expiration of the term of such Option as set forth in the Notice of Grant), by the
Optionee’s estate or by a person who acquires the right to exercise the Option by bequest or
inheritance, but only to the extent that the Option is vested on the date of death. In the absence
of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12)
months following the Optionee’s termination. If, at the time of death, the Optionee is not vested
as to his or her entire Option, the Shares covered by the unvested portion of the Option shall
immediately revert to the Plan. The Option may be exercised by the executor or administrator of
the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the
Optionee’s will or the laws of descent or distribution. If the Option is not so exercised within
the time specified herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

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          (e) Retirement of Optionee. If an Optionee ceases to be a Service Provider as a
result of the Optionee’s Retirement, the Options will continue to vest for an additional twelve
(12) months following the Optionee’s termination. The Optionee will have thirty (30) days
following the initial twelve (12) month period to exercise his or her Options. If, after
termination, the Optionee does not exercise his or her Option within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

          (f) Buyout Provisions. The Administrator may at any time offer to buy out for a
payment in cash or Shares an Option previously granted based on such terms and conditions as the
Administrator shall establish and communicate to the Optionee at the time that such offer is made.

     11. Stock Purchase Rights.

          (a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition
to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the
Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan,
it shall advise the offeree in writing or electronically, by means of a Notice of Grant, of the
terms, conditions and restrictions related to the offer, including the number of Shares that the
offeree shall be entitled to purchase, the price to be paid, and the time within which the offeree
must accept such offer. The offer shall be accepted by execution of a Restricted Stock Purchase
Agreement in the form determined by the Administrator.

          (b) Repurchase Option. Unless the Administrator determines otherwise, the Restricted
Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the voluntary
or involuntary termination of the purchaser’s service with the Company for any reason (including
death or Disability). Unless the Administrator provides otherwise, the purchase price for Shares
repurchased pursuant to the Restricted Stock Purchase Agreement shall be the original price paid by
the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company.
The repurchase option shall lapse at a rate determined by the Administrator.

          (c) Other Provisions. The Restricted Stock Purchase Agreement shall contain such
other terms, provisions and conditions not inconsistent with the Plan as may be determined by the
Administrator in its sole discretion.

          (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised, the
purchaser shall have the rights equivalent to those of a shareholder, and shall be a shareholder
when his or her purchase is entered upon the records of the duly authorized transfer agent of the
Company. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the Stock Purchase Right is exercised, except as provided in Section 13 of the
Plan.

     12. Non-Transferability of Options and Stock Purchase Rights. Unless determined
otherwise by the Administrator, an Option or Stock Purchase Right may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws
of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the
Optionee. If the Administrator makes an Option or Stock Purchase Right transferable, such Option
or Stock Purchase Right shall contain such additional terms and conditions as the Administrator
deems appropriate.

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     13. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

          (a) Changes in Capitalization. Subject to any required action by the shareholders of
the Company, the number of shares of Common Stock covered by each outstanding Option and Stock
Purchase Right, and the number of shares of Common Stock which have been authorized for issuance
under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or which
have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase
Right, as well as the price per share of Common Stock covered by each such outstanding Option or
Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number
of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company shall not be deemed
to have been “effected without receipt of consideration.” Such adjustment shall be made by the
Board, whose determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of Shares subject to an Option or Stock
Purchase Right.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Optionee as soon as practicable
prior to the effective date of such proposed transaction. The Administrator in its discretion may
provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior
to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which
the Option would not otherwise be exercisable. In addition, the Administrator may provide that any
Company repurchase option applicable to any Shares purchased upon exercise of an Option or Stock
Purchase Right shall lapse as to all such Shares, provided the proposed dissolution or liquidation
takes place at the time and in the manner contemplated. To the extent it has not been previously
exercised, an Option or Stock Purchase Right will terminate immediately prior to the consummation
of such proposed action.

          (c) Merger or Asset Sale. In the event of a merger of the Company with or into
another corporation, or the sale of substantially all of the assets of the Company, each
outstanding Option and Stock Purchase Right shall be assumed or an equivalent option or right
substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.
In the event that the successor corporation refuses to assume or substitute for the Option or Stock
Purchase Right, the Optionee shall fully vest in and have the right to exercise the Option or Stock
Purchase Right as to all of the Optioned Stock, including Shares as to which it would not otherwise
be vested or exercisable. If an Option or Stock Purchase Right becomes fully vested and
exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the Option or Stock
Purchase Right shall be fully vested and exercisable for a period of ninety (90) days from the date
of such notice, and the Option or Stock Purchase Right shall terminate upon the expiration of such
period. For the purposes of this paragraph, the Option or Stock Purchase Right shall be considered
assumed if, following the merger or sale of assets, the option or right confers the right to
purchase or receive, for each Share of

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Optioned Stock subject to the Option or Stock Purchase Right immediately prior to the merger
or sale of assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each Share held on the
effective date of the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares); provided, however,
that if such consideration received in the merger or sale of assets is not solely common stock of
the successor corporation or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of the Option or Stock
Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase Right, to
be solely common stock of the successor corporation or its Parent equal in fair market value to the
per share consideration received by holders of Common Stock in the merger or sale of assets.

     14. Date of Grant. The date of grant of an Option or Stock Purchase Right shall be,
for all purposes, the date on which the Administrator makes the determination granting such Option
or Stock Purchase Right, or such other later date as is determined by the Administrator. Notice of
the determination shall be provided to each Optionee within a reasonable time after the date of
such grant.

     15. Amendment and Termination of the Plan.

          (a) Amendment and Termination. The Board may at any time amend, alter, suspend or
terminate the Plan.

          (b) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise
between the Optionee and the Administrator, which agreement must be in writing and signed by the
Optionee and the Company. Termination of the Plan shall not affect the Administrator’s ability to
exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to
the date of such termination.

     16. Conditions Upon Issuance of Shares.

          (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an
Option or Stock Purchase Right unless the exercise of such Option or Stock Purchase Right and the
issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

          (b) Investment Representations. As a condition to the exercise of an Option or Stock
Purchase Right, the Company may require the person exercising such Option or Stock Purchase Right
to represent and warrant at the time of any such exercise that the Shares are being purchased only
for investment and without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required.

     17. Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

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     18. Reservation of Shares. The Company, during the term of this Plan, will at all
times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

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APPENDIX A

Terms and Conditions for French Option Grants

     The Board of Directors of Amkor Technology, Inc. (the “Company”) has established the Amkor
Technology, Inc. 2003 Nonstatutory Inducement Grant Stock Plan (the “Inducement Option Plan”) to
provide an incentive to eligible employees of the Company, its parent and subsidiary companies,
including its French subsidiary, Amkor Technology Euroservices, S.A.R.L. (the “Subsidiary”). The
Administration has determined that it is necessary and desirable to establish the terms and
conditions for the French Option Grants to qualify for the favorable tax and social security
treatment in France provided under articles 217, 80 bis I and II, and 163 bis C of the French tax
code for options granted under Law n° 70-1322 dated December 31, 1970, now codified at articles L
225-177 to L 225-186 notably of the French Commercial Code, to qualifying employees who are
resident in France for French tax purposes (the “French Optionees”). The terms and conditions for
French Option Grants are set forth in this Appendix A.

     Under the terms and conditions for French Option Grants, qualifying employees will be granted
only Nonstatutory Stock Options. The provisions of the Inducement Option Plan concerning U.S.
Incentive Stock Options are not applicable to grants made hereunder.

     The following terms and conditions will apply in the case of Option grants to French
residents.

     1. Definitions. As used herein, the following definitions will apply:

          (a) “Applicable Laws” means the legal requirements relating to the administration of
stock option plans under French corporate, securities, labor and tax laws.

          (b) “Disability” means total and permanent disability in accordance with Section
L341-4 second and third paragraphs of the French Code de la Sécurité Sociale, as certified in
writing by a physician from the French Ministry of Labor (“médecin du travail”).

          (c) “Employee” means (i) any person employed by the Company or a Subsidiary in a
salaried position within the meaning Applicable Laws, who does not own more than 10% of the voting
power of all classes of stock of the Company, or any Parent or Subsidiary, and who is a resident of
the Republic of France or (ii) any person employed by the Company or a Subsidiary who is a resident
of the Republic of France for tax purposes or who performs his or her duties in France and is
subject to French income social security contributions on his or her remuneration.

          (d) “Fair Market Value” means, as of any date, the dollar value of Common Stock
determined as follows:

 

 

               (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market of the Nasdaq Stock Market, its
Fair Market Value will be the average quotation price for the last 20 trading days preceding the
date of determination for such stock (or the average closing bid for such 20 day period, if no
sales were reported) as quoted on such exchange or system and reported in The Wall Street Journal
or such other source as the Administrator deems reliable;

               (ii) If the Common Stock is quoted on the Nasdaq Stock market (but not on the Nasdaq National
Market thereof) or regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value will be the mean between the high bid and low asked prices for the
Common Stock for the last 20 days preceding the date of determination; or

               (iii) In the absence of an established market for the Common Stock, the Fair Market Value
thereof will be determined in good faith by the Administrator.

          (e) “Purchase Option” means the right to acquire Shares that are repurchased by the
Company prior to the grant of an Option.

          (f) “Subscription Option” means the right to subscribe to newly issued Shares.

          (g) “Subsidiary” means any participating subsidiary of the Company located in the
Republic of France and that falls within the definition of “subsidiary” within the meaning of
Section L. 225-180 paragraph 1 of the French commercial code.

          (h) “Termination” means if the Optionee is an Employee, the last day of any statutory
or contractual notice period whether worked or not (provided, only the employer, and not the
Optionee, may decide whether the Optionee works during the notice period) and irrespective of
whether the termination of the employment agreement is due to resignation or dismissal of the
Employee for any reason whatsoever; if the Optionee is a corporate officer as defined in Section 2
of this Appendix A, Termination means the date on which he or she effectively leaves his or her
position as a corporate officer for any reason whatsoever.

     2. Eligibility. Options granted pursuant to this Appendix A may be granted only to
Employees, the Président du conseil d’administration, the membres du directoire, the Directeur
général, the directeurs généraux délégués, the Gérant of a company with capital divided by shares;
provided, however, that the administrateurs and the membres du conseil de surveillance who are also
Employees of the Subsidiary in accordance with a valid employment agreement pursuant to Applicable
Laws may be granted Options hereunder. For the purpose of this Appendix A, when applicable, the
rules set forth for an Employee shall be applicable to the aforementioned corporate officers.

     3. Stock Subject to the Plan. The total number of Options outstanding which may be
exercised for newly issued Shares may at no time exceed that number equal to one-third of the
Company’s voting stock, whether preferred stock of the Company or Common Stock. If any Optioned
Stock is to consist of reacquired Shares, such Optioned Stock must be purchased by the Company, in
the limit of 10% of its share capital, prior to the date of the grant of the corresponding

-2-

 

new Option and must be reserved and set aside for such purposes. In addition, the new Option
must be granted within one (1) year of the acquisition of the Shares underlying such new Option.

     4. Limitations Upon Granting of Options.

          (a) Declaration of Dividend; Capital Increase. To the extent applicable to the
Company, Options cannot be granted during the 20 trading days from (i) the date the Common Stock is
trading on an ex-dividend basis or (ii) a capital increase.

          (b) Non-Public Information. To the extent applicable to the Company, the Company
shall not grant Options during the closed periods required under Section L 225-177 of the French
Commercial Code. As a result, notwithstanding any other provision of the Plan, Options cannot be
granted:

               (i) during the ten (10) trading days preceding and following the date on which the
consolidated accounts, or, if unavailable, the annual accounts, are made public;

               (ii) during the period between the date on which the Company’s governing bodies (i.e., the
Administrator and the Company’s corporate officers and directors) become aware of information
which, if made public, could have a material impact on the price of the Shares, and the date ten
(10) trading days after such information is made public.

          (c) Right to Employment. Neither the Plan nor any Option shall confer upon any
Optionee any right with respect to continuing the Optionee’s employment relationship with the
Company or any Subsidiary.

     5. Option Price. The exercise price for the Shares to be issued pursuant to exercise
of an Option will be determined by the Administrator upon the date of grant of the Option and
stated in the Option Agreement, but in no event will be lower than eighty percent (80%) of the Fair
Market Value on the date the Option is granted or of the average purchase price of these Shares by
the Company. The Option Price cannot be modified while the Option is outstanding, except as
required by Applicable Laws.

     6. Term of Option. The term of each Option shall be as stated in the Option
Agreement; provided, however, that the maximum term of an Option shall not exceed ten (10) years
from the date of grant of the Option.

     7. Exercise of Option; Restriction on Sale.

          (a) Options granted hereunder may not be exercised prior to the first anniversary date (the
“Initial Exercise Date”) of the date on which the Option is granted whether or not the Option has
vested prior to such time; provided, however, that the Initial Exercise Date will be automatically
adjusted to conform with any changes under Applicable Laws so that the length of time from the date
of grant to the Initial Exercise Date when added to the length of time in which Shares may not be
disposed of after the Initial Exercise Date as provided in Section 7(b) below, will allow for
favorable tax and social security treatment under Applicable Laws. Thereafter, Options

-3-

 

may be exercised to the extent they have vested. Options granted hereunder will vest as
determined by the Administrator.

               An Option will be deemed exercised when the Company receives: (i) written or electronic notice
of exercise (in accordance with the Option Agreement) from the person entitled to exercise the
Option, and (ii) full payment for the Shares with respect to which the Option is exercised together
with any applicable withholding taxes and social security contributions. Full payment may consist
of any consideration and method of payment authorized by the Administrator and permitted by the
Option Agreement and the Plan. Until the Shares are issued (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a stockholder will exist with respect to the
Shares, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued)
such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or
other right for which the record date is prior to the date the Shares are issued, except as
provided in Section 13 of the Plan.

          (b) The Shares subject to an Option may not be transferred, assigned or hypothecated in any
manner otherwise than by will or by the laws of descent or distribution before the date three (3)
years from the Initial Exercise Date, except for any events provided for in Article 91 ter of Annex
II to the French tax code; provided, however, that the duration of this restriction on sale will be
automatically adjusted to conform with any changes to the holding period required for favorable tax
and social security treatment under Applicable Laws to the extent permitted under Applicable Laws.

          (c) Termination of Employment Relationship. Upon Termination of an Optionee’s status
as an Employee (other than upon the Optionee’s death or Disability), the Optionee may exercise his
or her Option, but only within thirty (30) days from the date of such Termination, and only to the
extent that the Optionee was entitled to exercise it at the date of Termination (but in no event
later than the expiration of the term of such Option as set forth in the Option Agreement). If, at
the date of Termination, the Optionee is not entitled to exercise his or her entire Option, the
Shares covered by the unexercisable portion of the Option shall revert to the Plan. If, after
Termination, the Optionee does not exercise his or her Option within the time specified by the
Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

          (d) Disability of Optionee. Upon Termination of an Optionee’s status as an Employee
terminates as a result of the Optionee’s Disability, the Optionee may exercise his or her Option at
any time within twelve (12) months from the date of such Termination, but only to the extent that
the Optionee was entitled to exercise it at the date of such Termination (but in no event later
than the expiration of the term of such Option as set forth in the Option Agreement). If, at the
date of Termination, the Optionee is not entitled to exercise his or her entire Option, the Shares
covered by the unexercisable portion of the Option shall revert to the Plan. If, after
Termination, the Optionee does not exercise his or her Option within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

-4-

 

          (e) Death of Optionee. Notwithstanding any provision of the Plan or Option Agreement
to the contrary and Section 7 hereof, the Option shall be fully and immediately exercisable upon
the death of an Optionee while an Employee. Furthermore, notwithstanding any provision of the Plan
or the Option Agreement to the contrary, including the term of the Option, the Option may be
exercised at any time within twelve (12) months following the date of death by the Optionee’s
estate or by a person who acquired the right to exercise the Option by bequest or inheritance. If,
after death, the Optionee’s estate or a person who acquired the right to exercise the Option by
bequest or inheritance does not exercise the Option within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall immediately revert to the Plan.

          (f) Retirement of Optionee. If an Optionee ceases to be an Employee as the result of
the Optionee’s Retirement, the Option may be exercised for twelve (12) months following the
Optionee’s Termination. If, at the time of Retirement, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to
the Plan. If, after Termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to
the Plan. If an Optionee ceases to be an Employee as a result of the Optionee’s Retirement, the
Options will continue to vest for an additional twelve (12) months following the Optionee’s
Termination. The Optionee will have thirty (30) days following the twelve (12) month period after
his or her Termination to exercise his or her Options (but in no event later than the expiration of
the term of such Option as set forth in the Option Agreement).

     8. Non-Transferability of Options. An Option may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the Optionee, only by the
Optionee.

     9. Changes in Capitalization. Notwithstanding any provisions of the Plan and the
Option Agreement to the contrary, adjustments to the exercise price and/or the number of shares
subject to an Option issued hereunder shall be made to preclude the dilution or enlargement of
benefits under the Option in the event the Company executes one or more of the transactions listed
below. With the exception of the transactions listed below, adjustments to the exercise price
and/or the number of shares subject to the Option issued hereunder shall not be made under any
circumstance. Furthermore, even upon occurrence of one or more of the transactions listed below,
no adjustment to the kind of shares to be granted shall be made. The transactions are as follows:

          (a) an issuance of new shares for cash consideration reserved to the Company’s existing
shareholders;

          (b) an issuance of convertible or exchangeable bonds reserved to the Company’s existing
shareholders;

          (c) a capitalization of retained earnings, profits, or issuance premiums;

          (d) a distribution of reserves by payment in cash or shares;

          (e) a cancellation of shares in order to absorb losses; and

-5-

 

          (f) a purchase, by the Company when listed, of its own shares at a price higher than their
then current quotation price.

          An increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company is not within the scope of the prohibition of the first paragraph of
this Section 9.

     10. Information Statements to Optionees. The Company or its French Parent or
Subsidiary, as required under Applicable Laws, will provide to each Optionee, with copies to the
appropriate governmental entities, such statements of information as required by the Applicable
Laws.

     11. Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan will impair the rights of any Optionee, unless mutually agreed otherwise
between the Optionee and the Administrator, which agreement must be in writing and signed by the
Optionee and the Company. Any favorable amendments or alterations are automatically deemed to be
approved by Optionee. Termination of the Plan will not affect the Administrator’s ability to
exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to
the date of such termination.

     12. Reporting to the Shareholders’ Meeting. The Subsidiary of the Company, if
required under Applicable Laws, will provide its shareholders with an annual report with respect to
Options granted and/or exercised by its Employees in the financial year.

     13. Interpretation. It is intended that Options granted under the Terms and Conditions
for French Option Grants shall qualify for the favorable income tax and social security treatment
applicable to stock options granted under the French Commercial code as subsequently amended, and
in accordance with the relevant provisions set forth by French tax law and the French tax
administration. The terms of the French Plan shall be interpreted in accordance with the relevant
provisions set forth by French tax and social security laws, as well as the French tax and social
security administrations.

          In the event of any conflict between the terms and conditions for French Option Grants and the
Option Plan, the terms and conditions for French Option Grants shall control for any grants made
thereunder.

-6-Unassociated Document

                 

    EXHIBIT
10.1

    

    

    ASSET
PURCHASE AGREEMENT

    

    

    between

    

    

    PHOTOMEDEX,
INC.

    

    

    and

    

    

    PRI
MEDICAL TECHNOLOGIES, INC.

    

    

    dated

    

    

    August
1, 2008

     

     

    
      
         

      

      
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    ASSET PURCHASE
AGREEMENT

    

    

    

    This ASSET PURCHASE AGREEMENT (the
“Agreement”)
is made this   1st  
day of August, 2008 by and between PRI Medical Technologies,
Inc., a  Nevada corporation (“PRI”),
having a business address at 10939 Pendleton Street, Sun Valley, CA 91352,
and  PhotoMedex,
Inc., a  Delaware corporation (“PHMD”),
having a business address at 147 Keystone Drive, Montgomeryville, PA
18936.

    

    W I T N E S S E T H :

    

    WHEREAS, PHMD desires to sell,
assign and transfer to PRI, and PRI desires to purchase and acquire from PHMD,
certain assets and properties of the Surgical Services Segment of
its  busi­ness (the “Division”)
of PHMD as herein­after de­scribed, upon the terms and
con­di­tions set forth in this Agree­ment; and

    

    NOW, THEREFORE, in
consideration of the premises and cove­nants herein contained and intending
to be legally bound hereby, the parties hereto agree as follows:

    

    1.                      Sale of
Assets.

    

    
      	
              (a)  

            	
              Acquired
      Assets.  PHMD hereby sells, assigns and trans­fers to
      PRI, and PRI

            

    

    hereby
purchases from PHMD, the fol­lowing as­sets, rights and prop­erties
relat­ing to the Division free and clear of any encumbrances other than as
specified herein. On the Closing Date, the following assets will be
sold:

    

    (i)The accounts receivable relating to
the Division, as listed and subject to the terms on Schedule
1(a)(i), which list contains a complete list of all accounts receivable
as of July 30, 2008 that is accurate in material respects, and that will be
updated, within 5 business days of the execution of the Agreement, to be
accurate in material respects as of the Closing Date, and subject to closing and
post-closing adjustment as described in Schedule
1(a)(i);

    

    (ii)           The
inventories used by the Division in the provision of the surgical services, as
listed and subject to the terms on Schedule
1(a)(ii), which list contains a complete list of all inventories as of
July 30, 2008 that is accurate in material respects, and that will be updated
through a physical count to be conducted on August 8, 2008, and reconciled
within 5 business days of the count, to be accurate in material respects as of
the Closing Date, and subject to closing and post-closing adjustment as
described in Schedule
1(a)(ii);

    

    (iii)           The
equipment, accessories and other fixed, physical assets used by the Division, as
listed and subject to the terms on Schedule
1(a)(iii), which list contains a complete list of all equipment,
accessories and physical assets as of July 30, 2008 that is accurate in material
respects, and that will be updated by a physical count on August 8, 2008, as
described in Schedule 1(a)iii), and reconciled within 5 business days of the
count, and subject to post-closing adjustment as described in Schedule
1(a)(iii); and

    

    (iv)           The
intangible prop­erty rights relating to the

    Division,
as listed and subject to the terms on Schedule
1(a)(iv) as of the execution of this Agreement and that will be updated
as of the Closing Date.

     

     

    
      
         

      

      
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    All of
the above described assets are hereinafter sometimes collectively referred to as
the “Acquired
Assets.” The foregoing Schedules, and all subsequent Schedules, shall be
treated by the parties as confidential.

    

    (b)                 Delivery of Certain Rights,
Properties and Information to PRI.  In con­nec­tion
with the transfer of the Acquired Assets, PHMD has hereto­fore or will
prompt­ly deliv­er to PRI all of the other rights, properties and
information in its possession which are listed on confidential Schedule
1(b) here­to. The information shall be shipped, if not already
shipped, to PRI collect by motor freight no later than 30 days after the Closing
Date. PHMD shall be entitled to retain a copy of such information for archival
purposes.

    
 

    2.                      Purchase
Price; the Closing.  The pur­chase
price for the Ac­quired Assets and related rights, properties and
information transferred under Section 1(b) shall be as set forth on confidential
Schedule
2 (the “Purchase
Price”). PRI will be using the Acquired Assets (e.g. lasers) for rental
to customers and, therefore, will present to PHMD suitable exemption
certificates, in form satisfactory to PHMD, in order to exempt from sales tax
the sale and purchase of the Acquired Assets under Section 1(a) and for the
transfer and/or assignment of rights, properties and information under Section
1(b).

    

    (a)           Payment.   Payment
of 90% of the Purchase Price, plus or minus closing adjustments, shall be made
to PHMD by wire transfer on the Closing Date, in accordance with the wire
transfer instructions set forth on confidential Schedule
2(a). The remaining balance of the Purchase Price shall be made as a
post-closing adjustment upon receipt by PRI of the physical count of the
inventory and of the lasers, lithotripters and vehicles, per Schedules
1(a)(ii) and
1(a)(iii).

    

    (b)       Allocation of
Consideration. Two  (2) days prior to Closing, the parties will
agree to an allocation of the Purchase Price among the Acquired Assets and the
rights assigned to PRI under Section 1(b). The allocation will be attached to
this Agreement prior to Closing as confidential Schedule
2(b). The parties hereto will adhere to such allocation for all purposes,
including without limitation federal and state income tax purposes. PRI and PHMD
agree to cooperate in preparing and filing IRS Form 8594 reflecting that
allocation.

    

    (c)           Assumption of
Liabilities.  PRI as­sumes no debts or trade payables of
the Division existing as of, and incurred prior to, the Closing Date. PRI shall
assume only those operating leases under which PHMD rents certain fixed assets
as set forth in Schedule2(c)
and any other liabilities incurred by the Division on or after the
Closing Date, including without limitation all maintenance obligations relating
to the Acquired Assets and all operating expenses of the Division.

    

     

    (d)           The Closing. The
purchase and sale provided for in this Agreement (the “Closing”)
will take place at a location agreed in writing by the parties, commencing at
10:00 a.m. (local time) on the date that is five (5) business days following the
satisfaction or waiver of the conditions set forth in Section 3, unless the
parties otherwise agree, but in no case will the Closing take place later than
August 15, 2008.  The parties contemplate that the date of execution
of this Agreement will be August 1, 2008, that the execution of this Agreement
will be announced in press releases on August 4, 2008, and that the Closing will
be on August 8, 2008. PRI and PHMD contemplate that a joint call will be made,
no sooner than the close of the Nasdaq market on the evening of Monday, August
4, 2008, to the Division employees announcing the execution of this Agreement.
The date on which the Closing occurs shall be deemed to be the “Closing
Date.” All income and expenses from the Division business arising after
the Closing Date shall belong to PRI; all income and expenses from the Division
business arising on or before the Closing Date shall belong to
PHMD.

     

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
 

     

    3.           Conditions Precedent to
Closing; Deliveries at Closing.

     

    (a)           Conditions
Precedent to Closing. The
Closing of the proposed transaction will be subject to the following
conditions:

     

    (i) At Closing, there will have been
no material adverse changes in the business, operations, properties, prospects
or condition (financial or otherwise) of the Division;

    

    (ii) The proposed transaction will
have been approved by (1) the Board of Directors of PHMD and (2) the Board
of Directors of PRI;

    

    (iii) Receipt of all necessary
consents and approvals of governmental bodies, lenders, lessors and other third
parties;

    

    (iv) Absence of pending or threatened
litigation regarding this Agreement or the transactions to be contemplated
thereby;

    

    (v) Employment agreements conforming
to the standard form set forth in Schedule
7(g), prepared and procured by PRI and signed by Stewart Jaffe, Tracy
Hunt, Walter Reddick, Todd Dahlman and Michael Philipovich;

    

    (vi)
Receipt of evidence of recorded UCC3’s; and

    

    (vii) Receipt of evidence that the
physical counts described in Schedules
1(a)(ii) and 1(a)(iii) have timely occurred.

    

    

     

    (b)           PHMD’s
Deliveries.  At the Closing, PHMD will deliver:

     

     

    (i) a bill of sale and assignment in
substantially the form attached hereto as Schedule
3(b)(i), executed by PHMD, conveying in the
aggregate all property included in the Acquired Assets on confidential
Schedules
1(a)(i), (ii), (iii) and (iv);

     

     

    (ii) an assignment and assumption
agreement, executed by PHMD, in substantially the form attached hereto as
Schedule
3(b)(ii) assigning to
PRI all of PHMD’s respective right, title and interest in and to each of the
rights, properties and
information assumed by
PRI under Section 1(b), including without limitation the titles and
registrations of the vehicles of the Division;

     

    (iii) such other deeds, bills of sale,
assignments, certificates of title, documents and other instruments of transfer
and conveyance, executed by PHMD, as may reasonably be requested by PRI, each in
form and substance satisfactory to PRI;

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
 

    (iv) evidence that the Acquired Assets
are free of liens and encumbrances, except as set forth in Schedule
3(b)(iv);

    

    (v) landlord’s consents to PHMD’s
assignment of the Division’s Real Property Leases (as defined in Section 5.6),
or failing any such consent, PHMD’s sublease of such lease to PRI in lieu of
assignment, if permitted under the terms of such Real Property
Leases;

    

    (vi) a Supply Agreement in accordance
with Section 4 hereof;

    

    (vii) the agreement of Michael R.
Stewart referenced in Section 7(e)(ii);

    

    (viii) authorization under Section
7(a) to PRI to negotiate checks made payable to PHMD for accounts receivable
listed in Schedule
1(a)(i) or for accounts receivable arising on or after the Closing Date
which were earned by PRI;

    

    (ix) evidence that the physical counts
described in Schedules
1(a)(ii) and 1(a)(iii) have taken place; and

    

    (ix) Certificate of PHMD’s Secretary or
Assistant Secretary evidencing the resolutions of the Board of Directors of PHMD
authorizing the transactions contemplated by this Agreement.

    

    After the
Closing, PHMD will deliver:

    

    (x) the Financial Statements described
in Section 5.3 will be delivered by PHMD within 60 days after the Closing Date,
to allow PRI time to file the same with the Securities and Exchange
Commission;

    

    (xi) evidence that vacation pay accrued
to the Closing Date has been paid out to Division employees in the final payroll
of PHMD for Division employees following Closing; and

    

    (xii) payment of any post-closing
adjustment that may be necessary, the first such payment to be made no later
than August 15, 2008.

    

    (c)           PRI’s
Deliveries.  At the Closing, PRI will deliver:

    

    (i) the
payment of the Purchase Price to PHMD, net of any closing
adjustments;

    

    (ii) reimbursement to PHMD of security
deposits, as set forth in Schedule
7(h), reimbursement
of any extant  amounts prepaid by PHMD for third-party maintenance
contracts for the Division, as set forth in Schedule1(a)(iii) at para.
(ix);

    

    (iii) suitable sales tax exemption
certificates as described in Section 2, in form satisfactory to
PHMD;

    

    (iv) copies of the five employment
agreements described in Section  3(a)(v); and

     

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    (v) Certificate of PRI’s Secretary or
Assistant Secretary evidencing the resolutions of the Board of Directors of PRI
authorizing the transactions contemplated by this Agreement.

    

    After the
Closing, PRI will deliver:

    

    (vi) payment of any post-closing
adjustments that may be necessary, the first such payment to be made no later
than August 15, 2008.

    

    4.                      Agreement
to Supply.  (a) PHMD
agrees, in accordance with a separate Supply Agreement in the form set forth in
confidential Schedule
4(a), to continue to supply PRI with LaserPro® diode laser systems,
LaserPro® CTH holmium laser systems and UniMax® micromanipulators and fiber
delivery systems of PHMD’s own manufacture. PHMD further agrees, in accordance
with the same Supply Agreement, to continue to provide field and depot
maintenance services for the lasers of its own manufacture and those
manufactured by Trimedyne in the Division. (b) Where PHMD has not provided such
services, PHMD shall inform PRI of its third-party vendors set forth in Schedule
4(b) and, at PRI’s request, endorse to such vendors that they continue to
supply such services to PRI.

    

    5.                      Representations
and Warranties of PHMD.  PHMD represents
and warrants to PRI as follows, with respect to, and solely with respect to, the
Acquired Assets and the Division:

     

    5.1           Organization and
Qualification of PHMD.  PHMD is a corporation duly organized,
validly existing and in good standing under the laws of Delaware. PHMD has full
corporate power and authority to conduct the Division’s business as it is
presently being conducted by the Division. PHMD does not do business in any
jurisdiction where the failure to be qualified to do business has had a material
adverse effect on the Division’s business or the Acquired Assets, it being
understood that PRI must secure its own permits, licenses, qualifications and
the like to conduct the business of the Division.

     

     

    5.2           Authorization.  PHMD
has all requisite corporate power and authority to execute and deliver this
Agreement and any ancillary agreements, and all other instruments and
certificates to be delivered at the Closing, and to consummate the transactions
contemplated by such agreements and to perform its respective obligations under
such agreements.  The execution and delivery of this Agreement and any
ancillary agreements by PHMD and the other agreements, instruments and
certificates to be delivered at the Closing, and the consummation by PHMD of the
transactions contemplated by such agreements have been duly approved by the
Board of Directors of PHMD.  No other actions on the part of PHMD are
necessary to authorize this Agreement, any ancillary agreements or the other
agreements, instruments and certificates to be delivered by PHMD under this
Agreement or the ancillary agreements, or the transactions contemplated by such
agreements.  This Agreement and the other agreements, instruments,
certificates and documents to be delivered by PHMD, including any ancillary
agreement, have been (or, if to be executed or delivered after the date of this
Agreement, will be) duly executed and delivered by PHMD, and are (or, when
executed, will be) legal, valid and binding obligations of PHMD, enforceable
against PHMD in accordance with their terms, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization, and other similar laws
affecting creditors’ rights generally and by equitable principles.

     

    5.3           Financial
Statements. (a) The financial statements
of the Division for the period ended December 31, 2007 that are to be provided
by PHMD to PRI and which are to be delivered after Closing (the “Financial
Statements”) (i) will have been prepared, based on management reports,
substantially in accordance with GAAP that was consistently
applied  as of the date or for the period covered thereby, but without
accompanying footnotes, and (ii) will fairly and adequately represent the
assets, liabilities, and the financial position and financial results (P&L)
of the Division as of the date, or for the period, set forth on the Financial
Statements. PRI further requires that it receive the Financial Statements in
full accordance with GAAP and that the Financial Statements should be audited by
an independent auditing firm and further requires unaudited quarterly statements
of the Division for 2007, and for such quarters in 2008 (e.g. first and second
quarters) as may be required by the Securities and Exchange Commission, all to
be compiled and reviewed, in order to fulfill SEC reporting obligations, then at
PRI’s request and on PRI’s behalf, PHMD shall engage its independent auditors to
perform such audit, compilation and review, and the expense of such work shall
be borne by the parties as follows: the first $10,000 by PHMD, then the next
$27,000 by PRI, and any additional costs by PHMD.  PHMD shall provide
to PRI the unaudited results of operations of the Division from July 1, 2008 to
the Closing Date, and the unaudited balance sheet of the Division as of the
Closing Date, but prior to the Closing itself.  (b) PHMD represents to
PRI that the accounting reports (i.e. profit and loss statement and balance
sheet) which PHMD provided to PRI for the Division as of, and for the periods
ended, December 31, 2007 and May 31, 2008, are management reports that PHMD
generated for managing the business of the Division under the rules of segment
reporting. PHMD further represents that, except as set forth in Schedule
5.3, such reports were materially accurate for purposes of management
reporting and, with adjustments disclosed and discussed with PRI and set forth
in Schedule
5.3, were materially accurate for use in segment reporting in PHMD’s
financial statements.

     

     

    
      
         

      

      
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    5.4           Scope of Rights in Acquired
Assets.  The rights, properties, and assets included in the
Acquired Assets include substantially all of the rights, properties, and assets,
of every kind, nature and description, wherever located that are presently used
and have been generally used by PHMD in connection with the Division’s business
or that PHMD believes are necessary to own, use or operate the Division as the
same is presently conducted.

    

    5.5           Ownership and Condition of
Acquired Assets .  PHMD has, and at
the Closing will have, good and marketable ownership or title (or in the case of
leased personal property, a good and valid leasehold interest) to all of the
Acquired Assets, including its intellectual property rights in and to the use of
the common law trademark “SISTM” and of “PhotoMedex® Surgical ServicesTM”, and all
the properties and assets reflected in the Financial Statements, subject to no
liens, claims, security interests or encumbrance except for permitted liens,
claims, security interests or encumbrances.  PHMD owns exclusively, or
validly leases or licenses, all Acquired Assets (including at least
non-exclusive rights to all material intellectual property, tradenames,
trademarks and service marks used in the Division) and all names and images that
are or have been used in connection with the Division’s business. PHMD shall
convey to PRI at Closing good and marketable title to the Acquired Assets,
except as otherwise specified.  The Acquired Assets include all the
assets, properties and rights used by PHMD to operate the Division’s business as
currently conducted. Substantially all of the lasers, lithotripters and vehicles
included in the Acquired Assets are in working condition and reasonable repair.
All of the lasers encompassed within the Acquired Assets have been maintained in
accordance with the Division’s standard  maintenance schedules. As to
all other Acquired Assets, PHMD is selling same “as is, where is”.

     

      5.6           Real Property
Leases.  PHMD is not
conveying any real property to PRI.  Schedule 5.6
contains a complete and correct list of all written leases and subleases
pursuant to which PHMD leases real property to or from any person (the “Real Property
Leases”) and from which the Division conducts its
business.  With respect to each Real Property Lease, PHMD represents
to its knowledge that there are no liens or encumbrances in the leasehold
interest that PHMD has by virtue of the Real Property Leases, except insofar as
PHMD’s leasehold interest may have been subordinated to the interests of
mortgagees on the real property in question.  PHMD enjoys, without
material exceptions,  peaceful and undisturbed possession of all the
leased real property covered by the Real Property Leases.  To the
knowledge of PHMD, no portion of the security deposit under any Real Property
Lease has been applied that has not been re-deposited in full.  Except
as set forth in Schedule
5.6, PHMD has not received notice (and has no knowledge) of any special
assessment proceedings affecting the leased real property that have not been
resolved.  There is no pending or, to the knowledge of PHMD,
threatened condemnation affecting any real property that is leased or used by
the Division.  Except as set forth in Schedule
5.6, PHMD has not caused any work or improvements to be performed upon or
made to any of the leased real property for which there remains outstanding any
material payment obligation that could result in the imposition of any material
encumbrance on the leased real property.  To the knowledge of PHMD,
the current use and occupancy by PHMD of the real property and operation of the
Division’s business at the locations of the real property does not violate in
any material respect any applicable law, rule or regulation.  PHMD has
not received any notice (and has no knowledge) of violation of any easement,
covenant, condition, restriction or similar provision in any instrument of
record or other unrecorded agreement affecting the real property occupied or
used by the Division.

     

     

     

    
      
         

      

      
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    5.7           Contracts and
Commitments.

     

     

    (a)           Except
for the contracts listed on Schedule 5.7
(the “Specified
Contracts”), the Division is not a party to, nor is the Division or any
of its Acquired Assets bound by, any:

     

     

    (i)           contract
for the employment of any person on a full-time, part-time, consulting or other
basis or contract relating to loans to officers, directors or affiliates, except
oral or written contracts for employment at-will or contracts that will be
terminated at or prior to Closing;

     

     

    (ii)           contract
relating to any severance, golden parachute, stay bonus or similar contract with
or for the benefit of any person engaged on a full-time, part-time, consulting
or other basis requiring payments by PHMD upon the sale of the Division or
otherwise;

     

     

    (iii)           contract
relating to borrowed money or other indebtedness (including any capital lease
agreements) or the mortgaging, pledging or otherwise placing an encumbrance on
any Acquired Asset;

     

     

    (iv)           contract
under which PHMD is lessor of, or permits any third person to hold or operate,
any Acquired Asset;

     

     

    (v)           assignment,
license, indemnification, joint development agreement or other contract with
respect to any tradenames, trademarks, and service marks or designs used by the
Division;

     

     

    (vi)           sales,
distribution, dealer or manufacturer’s representative or franchise
contract;

     

     

    (vii)           contract
prohibiting or restricting the Division from freely engaging in any business or
competing anywhere in the world, or subject to a change of control
provision;

     

     

    (viii)                      contract
with any Division supplier containing any provision permitting any party other
than PHMD to renegotiate the price or other terms, or containing any pay-back,
retroactive adjustment or other similar provision, upon the occurrence of a
failure by PHMD to meet its obligations under contract when due or the
occurrence of any other event if such Division contract involves annual
consideration in excess of $5,000 or aggregate consideration in excess of
$10,000, except where such failure gives the other party to the contract the
right to terminate the contract and as a result of such right, the other party
may seek to renegotiate any of such terms;

     

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

     

    (ix)           contract
for the Division’s committed future purchase of fixed assets or the maintenance
of such fixed assets subject to future purchase or for the committed future
purchase of materials, supplies or equipment involving annual consideration of
$5,000 or aggregate consideration in excess of $10,000;

     

     

    (x)           Division
contract relating to joint ventures or other agreements involving a sharing of
Division profits;

     

     

    (xi)           Division
contract relating to cleanup, abatement or other actions in connection with
environmental liabilities;

     

     

    (xii)           Division
contract relating to any “lock-box” with any financial institution;

     

     

    (xiii)                      Division
guaranty, bond or similar contract;

     

     

    (xiv)                      Division
contracts that require the payment of royalties, commissions, finder’s fees or
similar payments which involves in the aggregate annual consideration in excess
of $25,000;

     

     

    (xv)           contract
limiting or restricting the disclosure of confidential information by PHMD;
or

     

     

    (xvi)                      material
oral contracts not in the ordinary course of business that are binding on the
Division.

     

     

     (b)           Materially
complete and correct copies of each of the written Specified Contracts,
including all amendments, waivers and modifications have been delivered, or will
be delivered under Section 1(b), to PRI by PHMD. Except as set forth on Schedule 5.7,
PHMD has not received notice of any breach or default under any of the contracts
from any other party to the contracts, or sent notice of any breach or default
under any of the contracts to any other party to the contracts.  To
the knowledge of PHMD, no event has occurred that, with the giving of notice or
the lapse of time, or both, would constitute a breach or default on the part of
PHMD under any of the contracts; nor to PHMD’s knowledge, has any event occurred
which with the giving of notice or the lapse of time, or both, would constitute
a breach or default on the part of any other party to any of the contracts. Each
contract that contains a change in control clause or otherwise requires the
consent or approval of any person in connection with the transactions
contemplated by this Agreement is appropriately identified as such on Schedule
5.7.

     

     

    5.8           Permits.  To
the knowledge of PHMD, PHMD has all material permits necessary for the conduct
of, or relating to the operation of, the Division as now being conducted, except
as set forth on Schedule
5.8.  To the knowledge of PHMD, except as set forth on Schedule
5.8, all permits of PHMD are valid and in full force and
effect.  There is not now pending nor, to the knowledge of PHMD,
threatened any action by or before any governmental authority to revoke, cancel,
rescind, modify, or refuse to renew in the ordinary course of business any of
such permits.  Except as set forth on Schedule 5.8,
to the knowledge of PHMD, no notice to, declaration, filing or registration
with, or permit from, any governmental authority, or any other person, is
required to be made or obtained by PHMD in connection with the execution,
delivery or performance of this Agreement or any ancillary agreements by PHMD
and the consummation of the transactions contemplated by this
Agreement.

     

     

     

    
      
         

      

      
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    5.9           No Conflict or
Violation.  Except as set forth on Schedule 5.9,
none of the execution, delivery or performance of this Agreement or any
ancillary agreements, the consummation of the transactions contemplated by this
Agreement or any ancillary agreements, or compliance by PHMD with any of the
provisions of this Agreement or any ancillary agreements, will (a) violate or
conflict with any provision of the Articles of Incorporation or Bylaws of PHMD,
(b) violate, conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or result in the termination of, or
accelerate the performance required by, or result in a right of termination or
acceleration under, any of the terms, conditions or provisions of any written
contract or, to the knowledge of PHMD, any permit or other instrument or
obligation (i) to which PHMD is a party or (ii) by which the Acquired Assets are
bound, (c) to the knowledge of PHMD violate, in any respect material to the
business of the Division, any statute, rule, regulation, ordinance, code, order,
judgment, ruling, writ, injunction, decree or award, or (d) impose any
encumbrance on the Acquired Assets or the Division’s business.

     

     

    5.10           Absence of Certain
Changes.  Except as disclosed in Schedule 5.10,
since January 1, 2008, PHMD has conducted the Division’s business only in the
ordinary course consistent with past practice and there has not occurred: (a)
any material adverse change with respect to the Acquired Assets or the
Division’s business; (b) any damage to, destruction or loss of any Acquired
Asset that is not covered by insurance and is not in the ordinary course of
business and that would require expenditures in excess of $5,000 in the
aggregate to repair or replace; (c) any change by PHMD in its accounting
methods, principles or practices with respect to the Division except as required
by any change in, or as appropriate to, GAAP; (d) any revaluation by PHMD of any
of its Acquired Assets, including any writing down the value of inventory or
writing off accounts receivable, except as such revaluation may happen in the
ordinary course of business and consistent with past accounting practices; (e)
any sale or disposition of, or encumbrance or security interest placed on, any
Acquired Asset, except (1) sales or uses of inventory in the ordinary
course of business and in a manner consistent with past practice and
(2) dispositions of obsolete or worthless assets; (f) any execution or
implementation of any employment, bonus, deferred compensation, severance or
similar arrangement or agreement (or amendment of any such agreement) covering
employees of the Division, or any increase in employee welfare or retirement
benefits covering such employees of the Division, except as such may happen in
the ordinary course of business and consistent with past practice, (g) any
increase in the salary of any employee in the Division not in the ordinary
course of business; (h) any labor dispute or any activity or proceeding by a
labor union or labor representative to organize any employees of PHMD, or any
lockouts, strikes, slowdowns, picketing, work stoppages or, to the knowledge of
PHMD, threats thereof by or with respect to such employees; (i) any termination,
or notice of termination, of any material written contract or, to the knowledge
of PHMD, material permit, except as happens in the ordinary course of business;
(j) any material failure that is inconsistent with past practice to pay the
Division’s creditors or to collect debt or obligations owed to the Division or
any material change in the Division’s selling, pricing or advertising practices;
(k) any commitment to a third party for capital expenditures in excess of $5,000
that is not in the ordinary course of business; (l) any resignation,
termination, death or material disability involving any of the Division’s
employees, except as happen in the ordinary course of business; (m) any material
adverse change in the amount, aging or collectibility of the Division’s accounts
receivable or other debts due it or the allowances with respect thereto or in
the Division’s accounts payable from those which are to be reflected on the
Financial Statements.

     

     

    5.11           Books and
Records.  PHMD has made and kept (and
given PRI reasonable access to) its books and records.

     

     

    
      
         

      

      
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    5.12           Litigation. Except as set forth in
Section
5.12, there is no action, order, writ, injunction, judgment or decree
outstanding or any claim, complaint, inquiry, suit, litigation, proceeding,
hearing, dispute, arbitration, action, audit or investigation (whether by third
parties or governmental agencies)  (collectively, “Actions”)
pending, or to PHMD’s knowledge, threatened (a) involving, against, related
to or affecting  PHMD with respect to the Division’s business or the
Acquired Assets, or (b) seeking to delay, limit or enjoin the transactions
contemplated by this Agreement or any ancillary agreements.  To the
knowledge of PHMD, PHMD is not in breach or default with respect to, or subject
to, any judgment, order, writ, injunction or decree of any court or other
governmental authority that reasonably pertains to the Division, and there are
no unsatisfied judgments not otherwise discharged by court order or an
applicable statute of limitations, against PHMD, the Division’s business or the
Acquired Assets.  Schedule 5.12
contains a brief summary of all material Actions involving, or related to, the
Acquired Assets, or the Division’s business that are open as of the date of this
Agreement, including, worker’s compensation claims, wage and hour claims or
discrimination claims (including sex, age, race, national origin, handicap or
veteran status discrimination claims).

     

     

    5.13           Undisclosed
Liabilities.  Except as is disclosed in Schedule 5.13,
PHMD and the Division’s business have no material liabilities (absolute,
accrued, contingent or otherwise), except those liabilities (a) to be
reflected on the face or in the notes of the Financial Statements,
(b) incurred since the date of the Financial Statements, in the ordinary
course of business consistent with past practice, which are of the same general
nature as those set forth on the face of the Financial Statements, or
(c) incurred in connection with this Agreement.

     

     

    5.14           Compliance with
Law.  To the knowledge of PHMD except as shown in Schedule
5.14, during the 18 months preceding the date of this Agreement, PHMD, in
the conduct of the Division’s business, has not violated in any material
respect, and is in material compliance with, all applicable and material laws,
statutes, ordinances, regulations, rules, orders, judgments, decisions and
decrees of governmental authorities, relating to the Acquired Assets and the
Division’s business. Except as shown in Schedule
5.14, during the last 18 months, PHMD has not received any notice to the
effect that, or otherwise been advised that, PHMD is not in material compliance
with any such statutes, regulations, rules, judgments, decrees, orders,
ordinances or other laws.

     

     

    5.15           Intellectual
Property.  Except as set forth in Schedule
5.15, PHMD has the right to assign to PRI its rights to the common law
trade name “Surgical Innovations & Services” and the common law trademark
“SISTM” and has the right to license PRI to use the trademark “PhotoMedex®
Surgical ServicesTM” (the, “Intellectual
Property”), which are material to, and for use in, the
Division.  The trademark “PhotoMedex” is registered with the United
Sates Patent and Trademark Office under Registration number 2575254. Except as
set forth in Schedule 5.15:
(i) PHMD possesses all right, title, and interest in and to, or a valid and
enforceable license to use, as the case may be, the Intellectual Property, free
and clear of any encumbrance; (ii) to the knowledge of PHMD, the legality,
validity, enforceability, ownership, or use of the Intellectual Property by PHMD
has not been, nor is currently being challenged, interfered with, or infringed
upon, and to PHMD’s knowledge, it is not subject to any such challenge; (iii) to
the knowledge of PHMD, PHMD’s ownership and/or use of the Intellectual Property
has not, interfered with, infringed upon, misappropriated or otherwise violated
any intellectual property rights of any third party; and (iv) except as set
forth otherwise in this Agreement, the Intellectual Property will continue to be
available for use by PRI from and after the Closing at no additional cost to
PRI.

     

     

    5.16           Employees.  There
are no employment or severance or termination agreements, whether written or
oral, accruing to the benefit of any person, except for agreements disclosed on
Schedule
5.7 or those
entered into pursuant to the terms of this Agreement. Set forth on Schedule
5.16 is a list of all persons currently employed by the Division, and
that list states, with respect to such persons who are so employed, their
current hourly rates of compensation, base salaries or other basis for and
amount of compensation, their total 2007 Form W-2 compensation, their accrued
and unpaid vacation and sick days and the commencement date of their
employment.  Vacation pay (but not sick pay) accrued as of the Closing
Date shall be paid out by PHMD in its next payroll period following the Closing
Date.

     

     

    
      
         

      

      
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    5.17           [intentionally
blank]

     

    5.18           Labor Relations.  Except as set
forth on Schedule
5.18, to the knowledge of PHMD, PHMD has complied in all material
respects with all applicable requirements of governmental authorities pertaining
to the employment of labor, including those relating to wages, hours, collective
bargaining, employment discrimination, sexual harassment, worker’s compensation,
and the payment of or withholding of taxes and there are no actions, suits,
charges, complaints, proceedings, investigations or audits pending or threatened
against PHMD in connection therewith.  There are no collective
bargaining agreements relating to PHMD’s relationship with any
employee.  PHMD has not recognized any labor organization, nor has any
such organization been certified, as the exclusive bargaining agent of any
employees of PHMD.  Except as set forth on Schedule
5.18, there has been no demand on behalf of any labor organization to
represent any employees of PHMD, PHMD has no knowledge of any present efforts of
any labor organization for authorization to represent any employees of PHMD,
PHMD believes it currently has good relations with its employees, and there are
no strikes, work stoppages or labor disputes pending or, to the knowledge of
PHMD, threatened against the Division.

     

     

    5.19           Environmental, Health, and
Safety.

     

     

    (a)           To
the knowledge of PHMD, except as set forth in Schedule
5.19(b), at all
times prior to the Closing, PHMD has complied in all material respects, and at
Closing will be in compliance, in all material respects, with all Environmental
and Safety Requirements applicable to the Division’s business, PHMD’s use and
occupancy of any real property and/or PHMD’s ownership and use of the Acquired
Assets, and PHMD has not received any notice, report, or information (including
information that litigation, investigation or administrative action of any kind
are pending or threatened) regarding any liabilities (whether accrued, absolute,
contingent, unliquidated, or otherwise), or any corrective, investigatory, or
remedial obligations, arising under Environmental and Safety Requirements
relating to the Division’s business or PHMD’s ownership and/or use of any of the
Acquired Assets.  For the purposes of this Agreement, “Environmental and
Safety Requirements” means all present requirements of any applicable
governmental authority relating to the discharge of air pollutants, water
pollutants, or process waste water or petroleum products or otherwise relating
to health, safety, the environment or Hazardous Substances (as defined below),
including, but not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, the Occupational Safety and
Health Act of 1970, as amended, the Federal Water Pollution Control Act, as
amended, the Federal Resource Conservation and Recovery Act, as amended, the
Federal Clean Water Act, as amended, the Toxic Substances Control Act, as
amended, the Federal Clean Air Act, as amended, the Superfund Amendments and
Reauthorization Act, as amended, and any and all other comparable state or local
laws relating to public health and safety or work health and
safety.

     

     

    (b)           To
the knowledge of PHMD, except as set forth on Schedule
5.19 (b), no Hazardous Substances have been or are currently located at,
in, or under or about the real property or the leased premises in a manner
which:  (i) violates in any material respect any applicable
Environmental and Safety Requirements, or (ii) requires response, remedial,
corrective action or cleanup of any kind under any applicable Environmental and
Safety Requirements.  For purposes of this Agreement, “Hazardous
Substances” has the meaning set forth in Section 101(14) of the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, and will also expressly include petroleum, crude oil and any fraction
thereof.

     

     

     

    
      
         

      

      
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    5.20           Tax Matters.

     

     

    Except as set forth on Schedule
5.20:

     

    (a)           Taxes. PHMD has, to
its knowledge, paid, and up to the Closing Date will have either paid or will
have accrued for, all real property, personal property, sales, employment,
franchise, state, federal, and local taxes of whatsoever kind or nature to the
appropriate state, local and/or federal agencies and governmental entities,
which have arisen or accrued in connection with the ownership and/or occupancy
and/or use of the Acquired Assets, the real property, the leased premises and/or
the Division’s business that are due prior to the Closing Date or that relate to
periods prior to the Closing Date.

     

    (b)           Filing of Tax
Returns.  PHMD has timely filed, or caused to be filed, with
the appropriate taxing authorities substantially all material returns (including
information returns and other material information) in respect of taxes relating
to the Division and required to be filed through or as of the Closing Date
(except for any W-2, W-3, 940 that PHMD will file on a timely basis when
due).  The returns and other information filed are complete and
accurate in all material respects, including the characterization of
compensation and the amount of deductions reflected thereon.  To the
knowledge of PHMD, all of these tax returns are correct and
complete.

     

     

     (c)           Audits, Investigations or
Claims.  There are no pending or, to PHMD’s knowledge,
threatened audits, investigations, claims or other actions for or relating to
any additional liability of PHMD in respect of taxes relating to the Division,
and there are no matters under discussion between PHMD and any governmental
authority with respect to taxes relating to the Division.  To the
knowledge of PHMD, there are no tax liens on any of the Acquired Assets, except
for liens for current taxes not yet due and payable or liens not known to PHMD
which may have arisen due to administrative errors.

     

     

    5.21           Insurance.  PHMD
will maintain from the date of execution of this Agreement until the Closing
Date the policies of fire, liability, worker’s compensation, product liability
and other forms of insurance that it has maintained from January 1, 2008. To the
knowledge of PHMD, PHMD is not in material breach or default under any of such
policies.

     

     

    5.22           Governmental and Other
Third-Party Consents.  Except as set forth on Schedule 5.22,
to the knowledge of PHMD, no consent or approval of, notice to, or filing with
any governmental authority or third person is required to be made by PHMD in
order to consummate the transactions contemplated by this
Agreement.

     

     

    5.23           Brokers.  Except
as described in Section 12, no person will be entitled to any brokerage
commissions, finder’s fees or similar compensation arising out of or due to any
act of PHMD in connection with the transactions contemplated by this
Agreement.

     

     

    5.24           Affiliate
Transactions.  Except as set forth on Schedule
5.24, there are no contracts, agreements, arrangements or transactions
between the Division and any affiliates, stockholders or employee of
PHMD.

     

     

    5.25           Possession of Assets Owned
by Third Parties.  Except as set forth on Schedule
5.25, PHMD is not in possession or control of any proprietary information
or other personal property that is owned by any other person or its vendors for
use in connection with the Division’s business.

     

     

     

    
      
         

      

      
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    5.26           Customers and
Suppliers.  Except as set forth on Schedule
5.26, to the knowledge of PHMD, no customer, supplier or other person
with a material business relationship with the Division has any intention to
cease or substantially reduce the use or supply of products, goods or services
of or to the Division’s business or return any products or goods of the
Division’s business, whether as a result of the Closing or otherwise. Except as
set forth on Schedule
5.26, PHMD is not aware of any material customer issues or problems with
respect to their relationship or business dealings with the Division. Attached
as Schedule
5.26 is a list of all of the Division’s customers during 2007 and 2008
along with their respective gross sales volumes and the Division’s vendors
during 2007 and 2008 to which the Division incurred $10,000 or more in
expenditure.

     

     

    5.27           Reports.  Except
as set forth on Schedule
5.27, PHMD, to its knowledge, has timely filed all material reports,
registrations and statements relating to the Division and required to be filed
by it with any governmental authority and has paid all related fees and
assessments due and payable.

     

     

    5.28           Accounts
Receivable.  The accounts receivable  which are being
sold to PRI under Section 1(a)(i) and which are associated with the Division’s
business as of the Closing Date, except as set forth on Schedule
5.28, (i) are valid and genuine; (ii) have arisen solely out of
bona fide sales and performance of services and other business transactions in
the ordinary course of business consistent with past practice; (iii) are,
to the knowledge of PHMD, not subject to any material, valid defenses, set-offs
or counterclaims; and (iv) are, subject to recorded bad debt allowances, fully
collectible and payable at their face amounts.

     

     

    5.29           Transfer of Ownership of
Computer Databases and Customer Information.  On the Closing
Date, PHMD shall sell, transfer and deliver copies, or otherwise make available,
to PRI of all customer records, customer lists, contact information, billing
records and computer data bases that are used in connection with and/or relate
to the operation of the Division’s business, including any information stored on
any media containing the names, addresses and other information relating to
present and potential future customers of the Division, and where such
information, including patient health information, is to be maintained, or has
been maintained, by the Division as confidential, PRI will also maintain the
confidentiality of such information.

     

    5.30           Accuracy of
Information.  No statement made by PHMD in this Agreement or in
any document to be provided by PHMD to PRI hereunder contains or will contain
any untrue statement of a material fact or omits or will omit to state a
material fact necessary to make the statements contained therein not misleading
to PRI. PHMD is not aware of any occurrence or event or circumstance that would
cause any of the representations and warranties contained herein not to be true
and complete in all material respects on the Closing Date.

     

    

    
      
         

      

      
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    6.                           Representations and
Warranties of PRI.  PRI repre­sents and
warrants to PHMD as fol­lows:

     

     

                (a)           Organization and Good
Standing.  PRI is a corporation duly organized, validly
existing and in good stand­ing under the laws of the State of
Nevada.

     

     

                (b)           Binding
Effect.  This Agreement and each instru­ment executed by
PRI in connection here­with are the legal, valid and binding obligations of
PRI, enforce­able against it in accor­dance with its terms.

     

     

                (c)           Authorization.  The
execution, delivery and per­formance by PRI of this Agreement, the grant of
the license hereunder and consumma­tion of the transactions provided for
herein, are within the corporate powers of PRI; have been duly autho­rized
by all neces­sary corporate action, on the part of PRI; and do not
contra­vene any law, regulation, judgment, de­cree, order or award
relat­ing to PRI or conflict with or result in a breach of any of the terms
or provisions of, or constitute a default under, any inden­ture, mortgage,
lease, security agree­ment, or other agreement or instrument to which PRI is
a party or by which PRI is bound.

     

     

                (d)           Consents and
Approvals.  No consent of any other party and no approval or
authorization of, or declaration or filing with, any governmental or regulatory
authority is required for the valid authorization, execution and delivery by PRI
of this Agreement.

     

     

    7.                           Agreements of
PHMD.  PHMD
cove­nants and agrees with PRI as follows:

     

     

                (a)           Accounts Receivable.
PHMD agrees that should any customers of the Division remit to PHMD payment of
accounts receivable sold to PRI under Section 1(a)(i), PHMD shall, immediately
upon knowledge of such receipt, inform PRI of the receipt and remit the payment
to PRI within five (5) business days from the date on which such
remittance  was made to PHMD by the customer. PHMD will provide
written authorization to PRI to use the trade names of PHMD in order to
negotiate checks sent by customers in payment of an account receivable sold to
PRI hereunder. Given that some customer checks may include payment for other
services of PHMD which were not provided by the Division, PRI will report to
PHMD instances of such checks and remit to PHMD the portion of such checks not
applicable to the Division and do so within five (5) business days from the date
on which such remittance was made to PRI by the customer.

     

     

                (b)           Discharge of Certain
Liabilities.  PHMD will discharge or otherwise be responsible
for any claims (including without limitation employee and other workplace
claims, environmental claims, vendor claims, customer claims or patient claims)
arising out of and accruing to the Division’s business before the Closing
Date.

     

     

     

    
      
         

      

      
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                (c)           Release and Termination of
Liens.  On or before the Closing Date, PHMD shall cause (i) the
release and termination of all liens in force of any person on any of the
Acquired Assets, except for those obligations or contracts which PRI assumes
under Section 2(c) or those liens in force which PRI specifically agrees may be
released by some different date, and (ii) the execution and delivery to PRI of
all UCC-3 financing statements or the equivalent under the legal requirement of
the jurisdiction, state or country in which the Acquired Assets are located, and
such other documentation, in form and substance satisfactory to
PRI.

     

     

                (d)           Insurance. PHMD shall obtain and maintain at
least $2 million of liability insurance covering the trailing lia­bilities
of the Division. 

     

    (e)  
Noncompetition
and Confidential Information.

    

    (i) Business of
Division.  Prior to the execution of this Agreement, (1) PHMD
was engaged in the Division’s business utilizing various marketing techniques to
sell its products and services to customers, (2) PHMD maintained a database with
the names, addresses, and other information relating to such customers and
potential customers who are or may be customers of the Division’s products and
services, (3) the scope of PHMD’s business encompassed the United States, but
the scope of the Division’s business was in certain regions and areas of the
United States, and (4) PHMD is among a limited number of persons and/or entities
that have developed specialized expertise in, and have been engaged in, the
business carried on by the Division which has brought them  into close
contact with trade secrets and proprietary information concerning the Division’s
business which are confidential in nature, not readily ascertainable, and which
could not, without expense and difficulty, be obtained or duplicated by others
who have not been able to acquire such information by virtue of employment by or
close association with PHMD.

    

    (ii) Noncompete.  PHMD
acknowledges and agrees that during the six-year period following the execution
of this Agreement, PHMD shall not, and will not permit its employees or agents
to, directly or indirectly compete or interfere with PRI with respect to, and
only with respect to, the customers or business of the Division as existing on
the Closing Date and sold to PRI. Neither will PHMD engage an investee, agent or
independent contractor to directly or indirectly compete or interfere with PRI
with respect to, and only with respect to, the customers or business of the
Division as existing on the Closing Date and sold to PRI. Further, PHMD shall
not solicit business for its Surgical Products Segment from those customers of
the Division, as existing on the Closing Date, when the business of the Division
was sold to PRI, in an attempt to dissuade those customers from continuing to
receive those surgical services from PRI that they formerly received from the
Division, it being understood, however, that PHMD may, through its Surgical
Products Segment or its business Segments, continue to supply the existing
customers of those other Segments. PHMD’s Chief Operating Officer, Michael R.
Stewart, will also undertake over the same period of time those promises to PRI
set forth in Section 7(e) that relate to direct competition, interference or
solicitation but not to indirect competition, interference or solicitation. It
is understood direct competition by Mr. Stewart includes his becoming an
employee of a mobile competitor of the business of the Division as sold to PRI,
subject to the limitations stated in this Section 7(e). Mr. Stewart’s promises
shall be evidenced by his individual concurrence herein on the signature page of
this Agreement, whether or not he remains employed by PHMD. The foregoing
restrictions do not apply to technologies not existing in the business of the
Division as of the Closing Date, nor to States in which the Division has not
done business in the 12 months before the Closing Date. In the twelve months
prior to the Closing Date, the Division has done business in Pennsylvania, New
Jersey, Maryland, the District of Columbia, Virginia, Florida, Georgia, Alabama,
Arkansas, Tennessee, Wisconsin and Illinois.

     

     

     

    
      
         

      

      
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    (iii) Injunctive
Relief.  PHMD further acknowledges and agrees that: (1) the
restraints imposed on PHMD pursuant to this Agreement are no greater than is
reasonably necessary to preserve and protect PRI’s legitimate business interests
in the ongoing business operations which PRI has acquired from PHMD for good and
valuable consideration pursuant to this Agreement, (2) PRI is undertaking
substantial obligations and paying substantial monetary consideration to PHMD
for their covenants and agreements not to compete with PRI, (3) the restraints
against competition outlined herein will not impose an undue hardship upon PHMD,
and (4) that any violations of said restraints will be unfair to, and will
irreparably injure PRI. Accordingly, PRI may, in addition to pursing its other
remedies, obtain such equitable and injunctive relief (including, but not
limited to, preliminary and permanent injunctions) from any court or competent
jurisdiction, as may be necessary to enjoin any such violation of the foregoing
restraints.

    

    (iv) Confidential
Information.  PHMD covenants and agrees that it shall not, at
any time, disclose or use, directly or indirectly, on its own behalf or on
behalf of any other person or entity, any confidential information or trade
secrets of the Division or any of its clients or suppliers (or confidential
information or trade secrets of PHMD which have been acquired by PRI pursuant to
this Agreement) which it became aware of arising out of and relating to the
Division’s business and/or the property or business of the Division, including,
but not limited to, confidential information concerning and relating to
marketing, distribution and sales methods, prices, customers  (or
potential customers), suppliers, know-how, intellectual property rights,
copyrights, trademarks or trade names; nor shall PHMD disclose or use any
written, visual, graphic, electronic, magnetic, or computer media, or other
materials containing such confidential information. PHMD acknowledges and agrees
that such confidential information is valuable enough to give PRI and/or any of
its affiliated entities, clients or suppliers a competitive advantage over those
who do not use the information or know of it, that such information is to be
maintained as secret and confidential, and that such information is not readily
ascertainable. Excluded from confidential information and trade secrets are any
instances of such information or secrets which have become known or knowable in
the public domain through no breach or default hereof by PHMD. Accordingly, PHMD
agrees that it shall take all reasonable steps necessary, and all steps
reasonably requested by PRI, to ensure that all such confidential information is
kept secret and confidential for the sole use and benefit of PRI. The
obligations of this Section 7(e)(iv) shall continue for six (6) years after the
Closing Date.

     

     

    
      
         

      

      
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    (v) Reliance.  The
parties hereto acknowledge and agree that: (1) PRI has undertaken substantial
obligations and has entered into valuable contracts and agreements and paid
good, valuable, and substantial consideration to PHMD for and in consideration
of PHMD’s compliance with the terms, conditions, and restrictions set forth in
this noncompetition provision, (2) PRI has relied on the representations and
agreements of PHMD (i.e., that it would enter into and abide by the terms of
this noncompetition provision) in connection with PRI’s execution and
performance of this Agreement, and (3) PRI would not have entered into this
Agreement or paid consideration under this Agreement to and for the benefit of
PHMD but for the agreement of PHMD to enter into this noncompetition provision
and abide by its terms and conditions.

    

    (vi) Equitable
Relief.  It is expressly agreed by and between the parties to
this Agreement that the subject matter of this Agreement is unique and that the
failure of PHMD to comply with the obligations and/or covenants contained in
this noncompetition provision constitutes irreparable injury if not fully and
completely performed; accordingly, any party seeking to enforce the terms and
covenants contained herein shall be entitled to the equitable relief of specific
performance and/or such other equitable relief as decreed and/or ordered by a
court of competent jurisdiction.

     

                (f)           Letter
to Customers.  At
the request of PRI, PHMD agrees to send, within two (2) days after the Closing
Date hereof, a first-class letter to its Division customers announcing the
transfer of the surgical services business to PRI.  Such letter shall
be in the form set forth in Schedule 7(f), drafted by PRI
and  attached hereto.

     

     

                (g)           Recommendation
to Employees. (i) PHMD shall
recommend to the employees of the Division that they accept employment from PRI,
and enter into PRI’s standard non-compete agreement. PHMD will endorse
to its employees working in the Division that they remain
in the employ of PRI. It is PRI’s intention that such employees should enter
into new at-will employment agreements (including non-competition provisions)
conforming to the standard that PRI uses and substantially equivalent to the
standard PHMD uses, as set forth in Schedule 7(g).  (ii)
PHMD will further settle on Stewart Jaffe, its manager of the Division, a
termination package as described in confidential Schedule 1(b), in settlement
and cancellation of all obligations owing by PHMD to Mr. Jaffe.   No
severance or other separation payment will be made to any Division employee by
PHMD.

     

     

                (h)           Assignment
of Leases. PHMD will
assign to PRI, and PRI will accept, the Real Property Leases for locations at
which PHMD maintains offices for the Division and which are set forth in
Schedule
5.6,
and will assign therewith its rights in any security deposits, for which
deposits PRI will reimburse PHMD at Closing.

     

     

                (i)           Conduct in Ordinary
Course.  With reference to the Division, PHMD shall not enter
into any transaction other than in the normal, regular and customary course of
business pending the Closing.

     

     

                (j)           Maintain Relations; Customer
Inquiries.  PHMD shall use its best efforts to keep available
to PHMD the employees of PHMD with knowledge of the Acquired Assets and to
preserve the current relationships of PHMD with vendors, suppliers, customers,
landlords and other persons having business relationships with it. PHMD will
forward to PRI all service inquiries received after Closing and until December
31, 2008.

     

     

                (k)           Maintenance
of Property.  PHMD
has maintained the properties in the Division in working order and reasonable
repair, according to the Division’s standard maintenance schedules, and has
performed in an up to date manner all necessary preventive maintenance on such
property. PHMD shall transfer to PRI all manufacturer’s warranties on the
equipment in its possession and in force, as set forth on Schedule 7(k).

     

     

     

    
      
         

      

      
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                (l)           Transition. In the 30 days following Closing,
PHMD will, at PRI’s request, act as PRI’s agent for such designated items as
billing, collection, payroll and the like, to the end that the transition over
to PRI of day-to-day operations of the Division may be smooth. In addition, PHMD
agrees to continue the medical coverages for the employees of the Division who
become employees of PRI, for 60 days after Closing, at the expense of PRI, for
which PRI will reimburse PHMD within 5 days of invoice from PHMD of such
expense. After the thirty-day transition period, PRI will be responsible for all
such day-to-day operations.

     

    (m)           Taxes. Each party
shall bear and pay in a timely manner all taxes resulting from or payable in
connection with the sale of the Acquired Assets and the assumption of any
assumed liabilities pursuant to this Agreement, in accordance with applicable
legal requirements.

    

    (n)           Assistance in
Proceedings. PHMD will, at PRI’s expense, cooperate with PRI and its
counsel in the contest or defense of, and make available its personnel and
provide any testimony and access to its books and records (except for such
records as may enjoy privilege from such disclosure) in connection with, any
proceeding involving or relating to any action, activity, circumstance,
condition, conduct, event, fact, failure to act, incident, occurrence, plan,
practice, situation, status or transaction on or after the Closing Date
involving the Division, and if before the Closing Date, then at PHMD’s own
expense.

    

    (o) Customer and Other Business
Relationships. After the Closing, PHMD will, with reasonable commercial
efforts, cooperate with PRI in its efforts to continue and maintain for the
benefit of PRI those business relationships of PHMD existing prior to the
Closing Date and related to the business of the Division, as to be operated by
PRI after the Closing, including relationships with lessors, employees,
regulatory authorities, licensors, customers, suppliers and others.

    

    (p)  SEC Compliance. For the purpose of
complying with SEC Rules and Regulations for Form 8-K and Regulation S-X, PHMD
shall provide PRI with  its management reports for the Division for
the year ended December 31, 2007 and unaudited interim management reports for
2008 through the Closing Date. PRI and PHMD shall cooperate, as described in
Section 5.3, to procure audited Financial Statements. PRI shall maintain such
management reports as confidential information.

    

    (q)  Payroll
Liability. PHMD is and shall remain
fully responsible for any obligation, responsibility or liability, whether
contractual or statutory, arising out of the termination of its employees, with
regard to their employment with PHMD for the period of time up until the Closing
including without limitation, any liability or obligation with respect to wages,
bonuses, health care plans, employee benefit plans or vacation pay or any other
compensation arrangement whatsoever which are from or relate to any individual’s
employment with PHMD.

    

    

    
      
         

      

      
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    8.                           Agreements of
PRI.  PRI
covenants and agrees with PHMD as follows:

     

     

                (a)           Accounts
Receivable. PRI shall use
its diligent efforts, as described in Schedule 1(a)(i), to collect the
accounts receivable purchased under Section 1(a)(i).

     

     

                (b)           Discharge of
Liabilities.  After the Closing Date, PRI hereby agrees to pay,
perform and discharge, as and when due all of liabili­ties (including
without limitation employee and other workplace claims, environmental claims,
vendor claims, customer claims or patient claims) arising out of or relating to
the Division caused by events occurring on or after the Closing
Date.

     

     

                (c)           Insurance.  PRI
shall obtain and maintain at least $3 million of liability insurance covering
its responsibilities with respect to the Acquired Assets after the Closing
Date.

     

     

                (d)           Agreement Not to Compete,
Interfere or Solicit. PRI promises to PHMD that it will not, for three
(3) years from the Closing Date, interfere in the contracts of PHMD’s Surgical
Products Segment, nor solicit  vendors, employees, agents or customers
of that Segment to cease to do business with it, except in the normal course of
PRI’s business.

     

     

                (e)           Use of
Labels.  PRI agrees that any labels, product brochures, data
sheets and other such materials trans­ferred by PHMD pursu­ant to
Section 1(b) hereof may be used by PRI only until December 31,
2008.

     

     

                (f)           Use of PHMD
Trademarks.  For as long as PRI shall use PHMD’s trademarks
“SISTM” and “PhotoMedex® Surgical ServicesTM”, PRI shall comply with all
requirements of law, use PHMD’s products, and other third-party vendors’
products, if used in the Division, in accordance with the Instructions for Use
of those products, and will train its employees in the use of, and maintain, the
Acquired Assets in a manner consistent with its own existing training and
maintenance standards.

     

    

    
      
         

      

      
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    9.                           Further
Assurances.  If at any time hereafter
any further assignments, conveyances or assurances in law are neces­sary or
desirable to vest, perfect or confirm of record in PRI the title to any of the
Acquired Assets, or to confirm the assumption by PRI of any liability or
obligation of PHMD assumed hereunder, or other­wise to carry out the
provi­sions here­of, the proper officers of PHMD or of PRI, as the case
may be, shall execute and deliver any and all proper deeds, assignments,
in­struments of assumption, powers of attorney and assurances in law, and do
all things necessary or proper to vest, perfect or confirm title to such
property or rights in PRI or PHMD or to con­firm the assumption by PRI of
any such liability or obliga­tion of PHMD, as the case may be, and otherwise
to carry out the provisions here­of.

     

     

    10.                           Survival of Representations
and Warranties.  The parties hereto agree
that the representations and war­ranties contained herein shall survive the
execution and deliv­ery of this Agreement for a period of 18 months,
irrespective of any investigation made by or on behalf of either of the parties
hereto. Notwithstanding the foregoing, the representations and warranties made
in Section 7 shall not be limited to such 18-month period.

     

     

    11.                           Indemnification

     

     

    (a) Indemnification by
PRI. PRI agrees to indem­nify and hold PHMD and its successors and
assigns harm­less from and against:

     

     

    i)           Any
and all claimed liabilities and obligations of PHMD which were assumed by PRI
hereunder and which arose after the Closing;

     

    (ii)           Any
and all loss, liability, damage or defi­ciency resulting from any
misrepresentation, breach of warranty or nonfulfillment of any covenant or
agreement on the part of PRI under the terms of this Agreement or any
docu­ment or in­strument executed by PRI in connection herewith;
provided however, that PRI shall have been given thirty (30) days written notice
of any breach or non-fulfillment and shall have failed to cure such breach or
non-fulfillment within such thirty-day period; and

     

     

     

    
      
         

      

      
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    (iii)           Any
and all actions, suits, proceedings, claims, demands, assessments, judgments,
costs and expenses inci­dent to the foregoing.

    

                          (b)           Indemnification by
PHMD.  PHMD agrees to indem­nify and hold PRI, its
representatives, shareholders, related companies, and its successor and assigns
harm­less from and against:

    

    (i)           Any
and all liabilities and obliga­tions of PHMD or claimed liabili­ties and
obligations of PHMD which are not specifically assumed by PRI hereun­der and
which arose before the Closing and relate to the Division;

    

    (ii)    Any and
all loss, liability, damage or defi­ciency resulting from any
misrepresentation, breach of war­ranty or nonfulfillment of any covenant or
agreement on the part of PHMD under the terms of this Agree­ment or any
docu­ment or instrument delivered by PHMD in connection here­with,
including product liability claims arising and accruing from events prior to the
Closing Date; provided however that PHMD shall have been given sixty (60) days
written notice of any breach or non-fulfillment and shall have failed to cure
such breach or non-fulfillment within such sixty-day period; and

    

    (iii)           All
actions, suits, proceed­ings, claims, de­mands, assessments, judgments,
costs and expens­es incident to the foregoing.

    

    (c)           Other Limitations on
Indemnification. The right to indemnification, reimbursement or other
remedy based upon such representations, warranties, covenants and obligations
shall not be affected by any investigation conducted at any time before the
Closing Date with respect to the Division, or any knowledge acquired (or capable
of being acquired) from such investigation , except as the same may have been
disclosed in this Agreement or the Schedules thereto or except as the same may
have been waived. The waiver of any condition based upon the accuracy of any
representation or warranty, or on the performance of or compliance with any
covenant or obligation, will not affect the right to indemnification,
reimbursement or other remedy based upon such  representations,
warranties, covenants and obligations, provided the retention of any such remedy
is notified to the other party in writing within 60 days of the waiver of such
condition, performance or compliance, during which thirty-day period the waiving
party shall investigate whether such remedy is susceptible to indemnification
hereunder.

    

    (d) Notice of Claim and
Defense.

     

                  (i)           A
party hereto  shall give prompt written notice to the other party of
any claim requiring indemnification by the other party,  and in any
case shall give such notice no later than 60 days of first learning of such
claim.

    

                (ii)           A
party hereto from which indemnification is sought hereunder shall have the
right, but not the obligation, to control the defense of any such claim
involving the potential for indemnification of the other
party.    If a party hereto chooses not to control such
defense, then the other party shall be entitled to ensure the appropriate
defense of such action and may determine whether to enter a settlement
agreement.

    

                                    (iii)           Where
each party claims indemnification from the other party out of the same incident
or occurrence, then PHMD shall have the first right under Section 11(d)(ii) to
control the defense of such action.

    

    

    12.                      Brokerage.  Each party hereby
represents to the other party that such party has not made any agreement or
taken any other action that might cause anyone to become entitled to a
com­mis­sion or broker­age fee as a result of the transactions
contem­plat­ed here­by, except that PHMD has engaged Fairmount
Partners as its advisor, and PHMD shall be solely responsible for any fees owing
to Fairmount Partners.  PRI shall indemnify and hold PHMD harmless
against any and all claims, losses, liabilities or expenses asserted against
PHMD as a result of PRI’s dealings, arrange­ments or agree­ments with
any such broker or person; and PHMD shall indem­nify and hold PRI harmless
against any and all claims, losses, lia­bilities or expenses asserted
against PRI as a result of the deal­ings, arrange­ments or agreements of
PHMD with any such broker or person.

    

    13.                      Miscellaneous. The parties further agree as
fol­lows:

    

    (a)           Expenses.  Each
of the parties hereto shall pay all of its own legal and other fees, costs and
expens­es in con­nection here­with.

     

     

    
      
         

      

      
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    (b)           Parties in
Interest.  This Agreement shall inure solely to the benefit of
and shall be binding upon the parties and their successors and
assigns.

    

    (c)           Governing Law. The
terms of this Agreement shall be governed by, and interpreted and construed in
accordance with the provisions of, the law of the State of New York, without
giving effect to any choice of law provisions. The parties hereto consent to the
jurisdiction of the courts, State and Federal, situate in the State of New
York.

    

    (d)           Captions;
Counterparts.  (i) The captions in this Agreement are for
convenience only and shall not be considered a part of or affect the
construction or interpretation of any provision here­of. (ii) This Agreement
may be executed in any number of counterparts, each of which, when so executed,
shall constitute an original copy hereof.

     

    (e)           Arbitration. Any
dispute or controversy arising out of or in relation to this Agreement hereof
shall be determined and settled solely and exclusively by arbitration in New
York, New York, and in accordance with the Commercial Rules of the American
Arbitration Association then in effect, by a panel of 3 arbitrators, and
judgment upon the award rendered by the arbitrator(s) may be entered in any
court of competent jurisdiction.  Each of the parties hereto hereby
consents to the personal jurisdiction of such forum for the purposes of this
Agreement.   The arbitration and the parties’ agreement therefor
shall be deemed to be self-executing, and if either party fails to appear at a
properly noticed arbitration proceeding, an award may be entered against such
party despite such failure to appear.

     

                              
(f)           Public Announcements; Public
Filings.  (i) PHMD and PRI shall use their best efforts to
agree upon the form and content of a press release or public announcement of the
execution of this Agreement as promptly as practicable after execution hereof to
the extent the parties have not already reached such agreement by the Closing
Date.  Notwithstanding the foregoing, PRI, on behalf of Emergent
Group, Inc, its parent company which is a public company, and PHMD agree not to
make any such announcement without prior consent to the form and content thereof
by the other party; PRI acknowledges that PHMD, as a public company, will be
required to and may make such an announcement without the prior consent of PRI
in the event the parties are unable to reach agreement on the form and content
thereof within a reasonable period of time after the execution hereof, and PHMD
acknowledges the same to PRI with respect to any such obligations that its
parent company may have; (ii) Neither PHMD nor Emergent Group, Inc. shall be
prohibited by this Agreement from fulfilling its duties to make appropriate
public disclosure of the transactions under this Agreement, and of the Agreement
itself, to the Securities and Exchange Commission; (iii) Otherwise, PRI and PHMD
will not, and each will direct that its respective representatives will not,
directly or indirectly, make any public comment, statement or communication with
respect to, or otherwise disclose or permit the disclosure of any of the
confidential terms, conditions or other aspects of the transaction set forth in
this Agreement, unless directed to do so by the Securities and Exchange
Commission or unless advised to do so by the outside securities counsel of such
party.  If a party is required by law to make any such disclosure, it
must first provide to the other party the content of the proposed disclosure,
the reasons that such disclosure is required by law, and the time and place that
the disclosure will be made. [DW: see Sec. 2(d) Closing, above, for
announcements to be made on Monday, 8/4/08]

     

     

                (g)           Force
Majeure.  In the event that the performance by any party hereto
of its obligations hereunder shall be interrupted or delayed by any occurrence
not occasioned by the conduct of either party hereto, whether such occurrence be
an act of God or the common enemy or the result of war, riot, civil commotion or
sovereign conduct, then the party whose performance is so delayed or interrupted
shall be excused from such performance for such period of time as is reasonably
necessary after the occurrence to remedy the effects thereof, but in no event
shall such excused time exceed 180 days.

     

     

     

    
      
         

      

      
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                (h)           Severability.  In
the event that any particular provision or provisions of this Agreement or the
other agreements contained herein shall for any reason hereafter be determined
to be unenforceable, or in violation of any legal requirement, governmental
order or regulation, such unenforceability or violation shall not affect the
remaining provisions of such agreements, which shall continue in full force and
effect and be binding upon the respective parties hereto.

     

                (i)           Notices.  Any
notice, request, instruction or other document to be given hereunder shall be in
writing and delivered personally or sent by certified mail, postage prepaid,
addressed as follows:

    

    

    To PRI:

    PRI Medical Technologies,
Inc.

    10939 Pendleton Street

    Sun Valley, CA 91352

    Attention:  President

    

    

    with a copies to:

    PRI Medical Technologies,
Inc.

    145 Huguenot Street, Suite
405

    New Rochelle, NY 10801

    Attn: Bruce Haber

    

    Levy, Ehrlich &
Petriello

    60 Park Road, Suite 1016

    Newark, NJ 07102

    Attn: Alan Ehrlich

    

    To PHMD:

    PhotoMedex, Inc.

    147 Keystone Drive

    Montgomeryville, PA 18936

    Attention:  President

    

    with a copy to:

    Morgan Lewis & Bockius,
LLP

    1701 Market Street

    Philadelphia,
PA  19103

    Attention: Stephen M.
Goodman

    

    Any party may from time to time change
its address for purpose of notices to that party by a similar notice specifying
a new ad­dress, but no such change shall be deemed to have been given until
it is actually received by the parties to be charged
there­with.

     

     

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    
 

    (j)           Prior Agreements;
Modifications.  This Agreement shall supersede all prior
agreements, documents or other instru­ments with respect to the matters
covered hereby.  This Agreement may be amended only by an instrument
in writing, duly signed by or on behalf of the parties hereto.

    

    (k)           Enforcement of
Agreement. PHMD acknowledges and agrees that PRI would be irreparably
damaged if any of the provisions of this Agreement are not performed in
accordance with their specific terms and that any breach of this Agreement by
PHMD could not be adequately compensated in all cases by monetary damages alone.
Accordingly, in addition to any other right or remedy to which PRI may be
entitled, at law or in equity, it shall be entitled to enforce any provision of
this Agreement by a decree of specific performance and to temporary, preliminary
and permanent injunctive relief to prevent breaches or threatened breaches of
any of the provisions of this Agreement, without posting any bond or other
undertaking.

    

    (l)           Waiver; Remedies
Cumulative. The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither any failure nor any delay by any party
in exercising any right, power or privilege under this Agreement or any of the
documents referred to in this Agreement will operate as a continuing waiver of
such right, power or privilege, and no single or partial exercise of any such
right, power or privilege will preclude any other or further exercise of such
right, power or privilege or the exercise of any other right, power or
privilege. To the maximum extent permitted by applicable law, (a) no claim or
right arising out of this Agreement or any of the documents referred to in this
Agreement can be discharged by one party, in whole or in part, by a waiver or
renunciation of the claim or right unless in writing signed by the other party;
(b) no waiver that may be given by a party will be applicable except in the
specific instance for which it is given; and (c) no notice to or demand on one
party will be deemed to be a waiver of any obligation of that party or of the
right of the party giving such notice or demand to take further action without
notice or demand as provided in this Agreement or the documents referred to in
this Agreement.

     

     

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    
 

    IN WITNESS WHEREOF, each of
the parties hereto, intending to be legally bound hereby, has caused this
Agreement to be signed in its name by the undersigned thereunto duly authorized,
all as of the date first above written.

    
      
        	 	PRI
      Medical Technologies, Inc.	 
	 	 	 	 
	
                Attest:_________________

              	
                By:
      

              	/s/ Bruce
      J. Haber	 
	 	 	Title:
      Chairman	 
	Title:	 	 	 
	 	 	 	 

      

    
      
        	 	PhotoMedex,
      Inc.	 
	 	 	 	 
	
                Attest:_Davis
      Woodward          

              	
                By:
      

              	/s/ Jeffrey
      F. O’Donnell 	 
	Title:
      Corporate Counsel 	 	Title:
      Chief Executive Office	 
	 	 	 	 
	 	 	 	 

      

    In
concurrence and acceptance of the terms of Section 7(e) in his capacity as a
private individual:

    
      	 	 	 	 	 
	
              /s/
      Michael R. Stewart 

            	 	 	
              August
      1, 2008

            	 
	
              Michael
      R. Stewart  

            	 	 	
              Date

            	 
	
               

            	 	 	
               

            	 

    

     

     

     

    

     

     

    26

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