Item 2.03 Creation of a Direct Financial Obligation

Extension of lease on main operating facility

On December 21, 2008, the Company signed a five-year lease extension, effective July 1, 2009, for its main operations facility with similar terms to its existing lease. This extension includes an option giving the Company the right to terminate effective June 30, 2010.

Item 5.02 Compensatory Arrangements of Certain Officers

Adoption of 2009 Bonus Plan

On January 2, 2009, the Board of Directors approved the Angeion Corporation 2009 Management Incentive Bonus Plan (the "2009 Bonus Plan").

The 2009 Bonus Plan provides for the payment of cash compensation to eligible employees, including the Company's executive officers, upon achievement of predetermined objectives. Payouts under the 2009 Bonus Plan will be based on achievement of two separate measurements:

(i) Pre-tax income before equity-based compensation (that is net pre-tax income prior to any FAS 123R expense incurred for equity grants) (50% weighting); and

(ii) Total Angeion revenue (50% weighting).

There is a threshold, a target and a maximum for each of the two measurements under the 2009 Bonus Plan. In order to receive an amount greater than the target under either metric, the Company must achieve at least the threshold level in the other metric. The Board of Directors believes this was important to encourage the Company's employees to focus on both revenue growth as well as pretax income.

Consistent with the terms of their previously disclosed employment agreements, if target financial performance is achieved in each metric, Mr. Young would receive a bonus of 42.5% of his base salary, or $133,705, and Mr. Kullback would receive a bonus of 25% of his base salary, or $50,000.