THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Invacare Corporation (IVC)

4/7/2006 Proxy Information

During 2005, Invacare purchased travel services from a third party private aircraft charter company. One of the aircraft available for use by the charter company is owned by an entity owned by Mr. Mixon and Mr. Richey. Invacare paid approximately $869,000 to the charter company in 2005 for use of the aircraft owned by Mr. Mixon and Mr. Richey. Invacare believes that the transactions were on terms no less favorable than those Invacare would expect to obtain from unrelated parties.

Since early 1995, Invacare has made investments in and loans to NeuroControl Corporation ("NeuroControl"), a North Ridgeville, Ohio-based privately-held company that develops and markets electromedical stimulation systems for stroke patients. During 2005, Invacare loaned NeuroControl $965,000 to help support its efforts to obtain FDA approval to market its stimulation systems in the United States. As of December 31, 2005, Invacare's net investment in, and advances to, NeuroControl were approximately $3 million after write-offs of approximately $21 million in prior periods. A substantial portion of Invacare's investment and advances was made pursuant to a secured credit facility. Mr. Richey is the Chairman of the Board and Chief Executive Officer of NeuroControl and Mr. Blouch serves as a Director of NeuroControl. Each of Dr. Bernadine Healy and Messrs. Evans, Moore, Weber (through his spouse), Mixon and Richey own minority equity interests in NeuroControl Corporation, having invested the following amounts in NeuroControl in 1997 or earlier: $50,000, $50,000, $100,000, $100,000, $245,000 and $7,513, respectively. In addition, (i) a private investment fund, the general partner of which is owned and controlled by Messrs. Mixon and Weber, has invested $350,000 in NeuroControl, (ii) a different private investment fund, in which Mr. Mixon is one of the three managing members of the general partner, has invested an aggregate of $750,000 in NeuroControl, and (iii) The Cleveland Clinic, Dr. Martin Harris' employer, has invested an aggregate of $750,001 in NeuroControl. Collectively, the aforementioned Invacare directors and other related parties own an aggregate of approximately 9.7% of the fully-diluted equity ownership of NeuroControl and Invacare owns an additional 30.1% of NeuroControl's equity. Invacare formed a committee in 2004, comprised of three disinterested directors, to evaluate the appropriateness and/or terms of any additional future advances or other investments in NeuroControl. The committee assessed the status of NeuroControl's research and authorized an additional investment by the Company during 2005 in an amount of up to $1 million and authorized an additional $1.1 million for 2006. For financial reporting purposes, Invacare started to consolidate its investment in NeuroControl for periods beginning with the quarter ended March 31, 2005.

4/8/2005 Proxy Information

During 2004, Invacare purchased travel services from a third party private aircraft charter company. One of the aircraft available for use by the charter company is owned by Mr. Mixon and Mr. Richey. Invacare paid approximately $630,000 to the charter company in 2004 for use of the aircraft owned by Mr. Mixon and Mr. Richey. Invacare believes that the transactions were on terms no less favorable than those Invacare would expect to obtain from unrelated parties.

Since early 1995, Invacare has made investments in and loans to NeuroControl Corporation ("NeuroControl"), a privately-held company that develops and markets electromedical stimulation systems for stroke patients in Cleveland, Ohio. During 2004, Invacare loaned NeuroControl $1,059,000 to help support its efforts to obtain FDA approval to market its stimulation systems in the United States. As of December 31, 2004, Invacare's net investment in, and advances to, NeuroControl were approximately $3 million after writeoffs of approximately $23 million in prior periods. A substantial portion of Invacare's investment and advances was made pursuant to a secured credit facility. Mr. Richey is the Chairman of the Board and Chief Executive Officer of NeuroControl and Mr. Blouch serves as a Director of NeuroControl. Each of Dr. Bernadine Healy and Messrs. Evans, Moore, Weber (through his spouse), Mixon and Richey own minority equity interests in NeuroControl Corporation, having invested the following amounts in NeuroControl in 1997 or earlier: $50,000, $50,000, $100,000, $100,000, $245,000 and $7,513, respectively. In addition, (i) a private investment fund, the general partner of which is owned and controlled by Messrs. Mixon and Weber, has invested $350,000 in NeuroControl, (ii) a different private investment fund, in which Mr. Mixon is one of the three managing members of the general partner, has invested an aggregate of $750,000 in NeuroControl, and (iii) The Cleveland Clinic, Dr. Martin Harris' employer, has invested an aggregate of $750,000 in NeuroControl. Collectively, the aforementioned Invacare directors and other related parties own an aggregate of approximately 10.4% of the fully-diluted equity ownership of NeuroControl and Invacare owns an additional 20.8% of NeuroControl's equity. Invacare has formed a committee comprised of three disinterested directors to evaluate the appropriateness and/or terms of any additional future advances or other investments in NeuroControl. In February 2005, the committee assessed the status of NeuroControl's research and authorized an additional investment by the Company during 2005 in an amount of up to $1 million. For financial reporting purposes, Invacare will consolidate its Investment in NeuroControl for periods beginning with the quarter ended March 31, 2005.

4/8/2004 Proxy Information

During 2003, Invacare purchased travel services from a third party private aircraft charter company. One of the aircrafts available to be used by the charter company is owned by Mr. Mixon and Mr. Richey. Invacare paid approximately $413,000 to the charter company for use of the aircraft owned by Mr. Mixon and Mr. Richey. Invacare believes that the prices and terms charged are no less favorable than those, which could be obtained from unrelated parties.

Invacare has an investment in NeuroControl Corporation, a privately held company that develops and markets electromedical stimulation systems for stroke patients in Cleveland, Ohio. Invacare loaned an additional $1,625,000 to NeuroControl in 2003. Mr. Richey is the Chairman of the Board and Chief Executive Officer, Mr. Blouch serves as a director and various directors and executive officers have minority equity investments in NeuroControl.

4/10/2003 Proxy Information

During 1996, the Company became an investor in Unique Mobility, Inc., a world leader in the development of high performance DC Motors. During 2002, the Company purchased Gearless/Brushless motors from Unique Mobility for approximately $3,967,000. Mr. Richey served on the Unique Mobility board of directors until November 2002.

During 2002, the Company purchased travel services from a third party private aircraft charter company. One of the aircrafts available to be used by the charter company is owned by Messrs. Mixon and Richey. The Company paid approximately $596,000 to the charter company for use of the aircraft owned by Messrs. Mixon and Richey. Invacare believes that the prices and terms charged re no less favorable than those which could be obtained from unrelated parties.

During 2002, Mr. Miklich, formerly the Company's Chief Financial Officer, General Counsel and Corporate Secretary, was indebted to the Company based on a loan approved by the Compensation, Management Development and Corporate Governance Committee pursuant to its executive compensation philosophy and the Company's overall compensation program. Mr. Miklich was loaned approximately $1.3 million. The loan was interest bearing and payable upon demand of the Company. The loan was repaid in full by April 5, 2002. Mr. Miklich retired from the company on April 30, 2002. Also during 2001, Dan T. Moore was loaned $650,000 and William M. Weber was loaned $150,000, both loans were interest bearing and were payable upon demand of the Company. Both loans were repaid in full by April 5, 2002.