Exhibit 1.1
▇▇▇▇▇▇ MEDICAL GROUP, INC.
6,000,000 SHARES
COMMON STOCK
FORM OF
UNDERWRITING AGREEMENT
February 28, 2002
▇. ▇. ▇▇▇▇▇▇ SECURITIES INC.
CREDIT SUISSE FIRST BOSTON CORPORATION
U.S. BANCORP ▇▇▇▇▇ ▇▇▇▇▇▇▇ INC.
▇▇▇▇▇▇ BROTHERS INC.
▇▇▇▇▇▇ ▇▇▇▇▇▇ PARTNERS LLC
c/o ▇. ▇. ▇▇▇▇▇▇ Securities Inc.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
▇▇▇▇▇▇ Medical Group, Inc., a Delaware corporation (herein called the
"Company", which term shall include its direct and indirect subsidiaries unless
the context otherwise requires), proposes to issue and sell 3,000,000 shares of
its authorized but unissued voting Common Stock, $.01 par value (herein called
the "Common Stock") and Warburg, ▇▇▇▇▇▇ Equity Partners, L.P. ("Warburg Pincus")
and California Public Employees' Retirement System ("CALPERS") (together, the
"Selling Stockholders" and each a "Selling Stockholder") propose to sell an
aggregate of 3,000,000 shares of Common Stock, in each case in the amount
appearing opposite such Selling Stockholder's name on Schedule VII hereto (said
6,000,000 in the aggregate shares of Common Stock being herein called the
"Underwritten Stock"). The Company and Warburg Pincus each propose to grant to
the Underwriters (as hereinafter defined) an option to purchase up to 450,000
additional shares of Common Stock (herein called the "Option Stock" and with the
Underwritten Stock herein collectively called the "Stock"). The Common Stock is
more fully described in the Registration Statement and the Prospectus
hereinafter mentioned.
The Company and each Selling Stockholder hereby confirm their
agreements made with respect to the purchase of the Stock by the several
underwriters, for whom you are acting, named in Schedule I hereto (herein
collectively called the "Underwriters", which term shall also include any
underwriter purchasing Stock pursuant to Section 3(b) hereof). You represent and
warrant that you have been authorized by each of the other Underwriters to enter
into this Agreement on its behalf and to act for it in the manner herein
provided.
1. REGISTRATION STATEMENT. The Company has filed with the
Securities and Exchange Commission (herein called the "Commission") a
registration statement on Form S-1 (No. 333-81618), including the related
preliminary prospectus, for the registration under the Securities Act of 1933,
as amended (herein called the "Securities Act"), of the Stock. Copies of such
registration statement and of each amendment thereto, if any, including the
related preliminary prospectus (meeting the requirements of Rule 430A of the
rules and regulations of the Commission) heretofore filed by the Company with
the Commission have been delivered to you.
The term Registration Statement as used in this agreement shall mean
such registration statement, including all exhibits and financial statements,
all information omitted therefrom in reliance upon Rule 430A and contained in
the Prospectus referred to below, in the form in which it became effective, and
any registration statement filed pursuant to Rule 462(b) of the rules and
regulations of the Commission under the Securities Act (herein called the "Rules
and Regulations") with respect to the Stock (herein called a "Rule 462(b)
registration statement"), and, in the event of any amendment thereto after the
effective date of such registration statement (herein called the "Effective
Date"), shall also mean (from and after the effectiveness of such amendment)
such registration statement as so amended (including any Rule 462(b)
registration statement). The term Prospectus as used in this Agreement shall
mean the prospectus relating to the Stock first filed with the Commission
pursuant to Rule 424(b) and Rule 430A (or if no such filing is required, as
included in the Registration Statement) and, in the event of any supplement or
amendment to such prospectus after the Effective Date, shall also mean (from and
after the filing with the Commission of such supplement or the effectiveness of
such amendment) such prospectus as so supplemented or amended. The term
Preliminary Prospectus as used in this Agreement shall mean each preliminary
prospectus included in such registration statement prior to the time it becomes
effective.
The Registration Statement has been declared effective under the
Securities Act, and no post-effective amendment to the Registration Statement
has been filed as of the date of this Agreement. The Company has caused to be
delivered to you copies of each Preliminary Prospectus and has consented to the
use of such copies for the purposes permitted by the Securities Act.
2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SELLING
STOCKHOLDERS.
(a) The Company hereby represents and warrants as follows:
(i) Each of the Company and its Subsidiaries (as defined
below) has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its
organization, has full corporate power and authority to own or lease
its properties and conduct its business as described in the
Registration Statement and the Prospectus and as being conducted, and
is duly qualified as a foreign corporation and in good standing in all
jurisdictions in which the character of the property owned or leased or
the nature of the business transacted by it makes qualification
necessary (except
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where the failure to be so qualified would not reasonably be expected
to have a material adverse effect on the business, properties,
financial condition or results of operations of the Company and its
Subsidiaries, taken as a whole (herein called a "Material Adverse
Effect")). The Company has no subsidiary (as defined in the Rules and
Regulations) and owns no capital stock or other ownership interest in
any entity other than entities listed on Schedule II hereto (herein
called the "Subsidiaries"). Other than the Subsidiaries, the Company
does not own, directly or indirectly, any shares of capital stock or
any other equity interest in any firm, partnership, joint venture,
association or other entity except as listed on Schedule III hereto.
(ii) The Registration Statement and the Prospectus comply,
and on the Closing Date (as hereinafter defined) and any later date on
which Option Stock is to be purchased, the Prospectus will comply, in
all materials respects, with the provisions of the Securities Act and
the Securities Exchange Act of 1934 (herein called the "Exchange Act"),
and the Rules and Regulations; on the Effective Date, the Registration
Statement did not contain any untrue statement of a material fact and
did not omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading; and on the
date hereof, the Prospectus does not, and on the Closing Date and any
later date on which Option Stock is to be purchased, will not, contain
any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; PROVIDED,
HOWEVER, that none of the representations and warranties in this
subparagraph (iii) shall apply to statements in, or omissions from, the
Registration Statement or the Prospectus made in reliance upon and in
conformity with information herein or otherwise furnished in writing to
the Company by or on behalf of the Underwriters for use in the
Registration Statement or the Prospectus.
(iii) The Stock, when issued and sold to the Underwriters
as provided herein, will be duly authorized and, when issued and paid
for as contemplated herein, will be validly issued, fully paid and
non-assessable and will conform to the description thereof in the
Prospectus. The form of certificates for the Stock conforms to the
legal requirements of the State of Delaware, all other applicable
statutory requirements, any applicable requirements of the certificate
of incorporation and bylaws of the Company and the requirements of the
Nasdaq National Market. No preemptive right, registration right, right
of first refusal or other similar rights of stockholders exists with
respect to any Stock or the issue or sale thereof, except as set forth
in the Prospectus. No further approval or authority of the stockholders
or the Board of Directors of the Company will be required for the
issuance and sale of the Stock as contemplated herein. Except as
described in the Prospectus, neither the filing of the Registration
Statement nor the offering or sale of the Stock as contemplated by this
Agreement gives rise to any rights, other than those which have been
waived or satisfied, for or relating to the registration of any shares
of capital stock. Except as described in the Prospectus, there are no
contracts, agreements or understandings between the Company and any
person granting such person the right to require the Company to file a
registration statement under the Securities Act with respect to any
securities of the Company owned or to be owned by such person or to
require the Company to include such securities in the Securities
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registered pursuant to the Registration Statement or in any securities
being registered pursuant to any other registration statement filed by
the Company under the Securities Act. Except as described in the
Prospectus, there are no outstanding subscriptions, rights, warrants,
options, calls, convertible securities, commitments of sales or liens
related to or entitling any person to purchase or otherwise acquire any
shares of the capital stock of, or other ownership interest in the
Company. The description of the Company's stock option, stock bonus and
other stock plans or arrangements, and the options or other rights
granted thereunder, set forth in the Prospectus accurately and fairly
presents in all material respects the information required to be shown
with respect to such plans, arrangements, options and rights.
(iv) Prior to the Closing Date the Stock to be issued and
sold by the Company will be authorized for listing by the Nasdaq
National Market upon official notice of issuance.
(v) The authorized, issued and outstanding capital stock
of the Company is (except for subsequent issuances, if any, pursuant to
employee benefit plans or pursuant to the exercise of options or
warrants referred to in the Prospectus) as set forth in the Prospectus
in the column entitled "Actual" under the caption "Capitalization" in
all material respects.
(vi) The Commission has not issued an order preventing or
suspending the use of any Preliminary Prospectus or Prospectus relating
to the proposed offering of the Stock or suspending the Registration
Statement after the Effective Date, nor, to the knowledge of the
Company after reasonable inquiry, instituted proceedings for that
purpose.
(vii) The consolidated financial statements of the Company,
together with the related notes and schedules as set forth in the
Registration Statement, present fairly the consolidated financial
position and the results of operations and cash flows of the Company at
the indicated dates and for the indicated periods. Such financial
statements and related schedules have been prepared in accordance with
generally accepted accounting principles, consistently applied
throughout the periods involved, and all adjustments necessary for a
fair presentation of results for such periods have been made. The
summary and selected financial data included in the Registration
Statement present fairly the information shown therein and such data
has been compiled on a basis consistent with the audited financial
statements presented therein and the books and records of the Company.
The pro forma consolidated financial information of the Company and the
related notes thereto set forth in the Prospectus under the caption
"Management's Discussion and Analysis of Financial Condition and
Results of Operations - Unaudited Pro Forma Financial Information" have
been prepared on a basis consistent with the historical consolidated
financial statements of the Company, give effect to the assumptions
used in the preparation thereof on a reasonable basis and in good faith
and present fairly in all material respects the historical and proposed
transactions contemplated by the Registration Statement and the
Prospectus. Such pro forma financial information has been prepared in
accordance with the applicable
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requirements of the Securities Act and the Rules and Regulations. No
other financial statements, schedules or pro forma financial data are
required to be included in the Registration Statement and the
Prospectus which are not so included therein.
(viii) Each of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP and BDO ▇▇▇▇▇▇▇, LLP, who
have certified certain of the financial statements filed with the
Commission as part of the Registration Statement and the Prospectus, is
an independent public accountant as required by the Securities Act and
the Rules and Regulations.
(ix) Except as disclosed in the Registration Statement and
the Prospectus, there is no action, suit, claim or proceeding pending,
or, to the knowledge of the Company, threatened against the Company or
any of its Subsidiaries before any court or administrative agency or
otherwise, which if determined adversely to the Company, such
Subsidiary would reasonably be expected to result in a Material Adverse
Effect or prevent the consummation of the transactions contemplated
hereby; and there are no agreements, contracts, leases or documents of
the Company or any of its Subsidiaries of a character required by the
Securities Act or the Rules and Regulations to be described or referred
to in the Registration Statement or Prospectus or to be filed as an
exhibit to the Registration Statement which have not been accurately
described in all material respects or referred to in the Registration
Statement or Prospectus or filed as exhibits to the Registration
Statement, as the case may be. The contracts so described in the
Registration Statement and Prospectus are in full force and effect on
the date hereof, and neither the Company nor any of its Subsidiaries
nor, to the best of the Company's knowledge, any other party, is in
breach of or default under any of such contracts where such breach or
default would reasonably be expected to have a Material Adverse Effect.
(x) Each of the Company and its Subsidiaries has good and
marketable title to all of their owned properties and assets as
described in the Registration Statement or as reflected in the
financial statements filed with the Commission as part of the
Registration Statement as being owned by them, free and clear of any
lien, mortgage, pledge, charge or encumbrance except those reflected in
such financial statements or as described in the Registration
Statement. All leases to which the Company or any of its Subsidiaries
is a party are valid and binding obligations of the Company or such
Subsidiary, as the case may be, and no default by the Company or any
such Subsidiary has occurred or is continuing thereunder which would
reasonably be expected to result in a Material Adverse Effect.
(xi) Each of the Company and its Subsidiaries has filed
all federal, state, local and foreign income tax returns required to be
filed and has paid all taxes indicated by such returns and all
assessments received by it to the extent that such taxes have become
due and are not being contested in good faith except where the failure
to file or failure to file on a timely basis such returns and pay such
taxes would not reasonably be expected to have a Material Adverse
Effect. All tax liabilities (including those being contested in good
faith) for the periods covered by the consolidated financial statements
of the Company that are included in the Registration Statement have
been adequately provided for in such financial statements.
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(xii) Since the respective dates as of which information is
given in the Registration Statement and the Prospectus, there has not
been any change in the business, properties, financial condition or
results of operations of the Company and its Subsidiaries, taken as a
whole, which would reasonably be expected to result in a Material
Adverse Effect, whether or not arising from transactions in the
ordinary course of business, other than as set forth in the
Registration Statement and the Prospectus, and since such dates, except
in the ordinary course of business, neither the Company nor any of its
Subsidiaries has entered into any material transaction not referred to
in the Registration Statement and the Prospectus. The Company has no
material contingent obligations which are not disclosed in the
Prospectus or provided for in the Company's consolidated financial
statements that are included in the Registration Statement.
(xiii) The Company has full legal right, power and authority
to enter into this Agreement and to perform the transactions
contemplated hereby. This Agreement has been duly authorized, executed
and delivered by the Company and (assuming due authorization and
delivery by the Underwriters and each of the Selling Stockholders) is a
valid and binding agreement of the Company, enforceable in accordance
with its terms except insofar as indemnification and contribution
provisions hereunder may be limited by Federal or state securities
laws, principles of public policy or equitable principles and except as
enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting
creditors' rights generally or by general equitable principles.
(xiv) Neither the Company nor any of its Subsidiaries is,
or with the giving of notice or lapse of time or both will be, in
violation of or in default under its respective certificate or articles
of incorporation, bylaws or other constitutive document or under any
agreement, lease, contract, indenture or other instrument or obligation
to which it is a party or by which it, or any of its properties, is
bound and which default would reasonably be expected to have a Material
Adverse Effect. The execution and delivery of this Agreement and the
consummation of the transactions contemplated herein and the
fulfillment of the terms hereof will not conflict with or result in a
breach of any of the terms or provisions of, or constitute a default
under, or result in the imposition of any lien, charge or encumbrance
upon any property or assets of the Company or any of its Subsidiaries
pursuant to, (A) any indenture, mortgage, deed of trust or other
agreement or instrument to which the Company or any of its Subsidiaries
is a party, (B) the respective certificate or articles of
incorporation, bylaws or other constitutive document of the Company or
any of its Subsidiaries or (C) any foreign, federal, state or local
law, order, rule, regulation, injunction, judgment, or decree
applicable to the Company or any of its Subsidiaries of any court or of
any regulatory body or administrative agency or other governmental body
having jurisdiction over the Company or any of its Subsidiaries
including, without limitation, under the U.S. Federal Food, Drug and
Cosmetic Act, as amended (the "FDC Act"), or any other similar law,
domestic or foreign, regulating human health and safety and medical
devices, and the rules, regulations, policies and guidelines
promulgated by the U.S. Food and Drug Administration (herein called the
"FDA") thereunder or any governmental agency or body, domestic or
foreign, exercising similar functions to those of the FDA under
applicable law (such laws, orders, rules, regulations, injunctions,
orders or decrees are collectively referred to herein as
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"Applicable Law"), which conflict, breach, default or imposition would
reasonably be expected to have a Material Adverse Effect.
(xv) Each approval, consent, order, authorization,
designation, declaration or filing by or with any regulatory,
administrative or other governmental body necessary under Applicable
Law in connection with the execution and delivery by the Company of
this Agreement and the consummation of the transactions herein
contemplated (except as may be required in connection with the
registration of the Stock under the Securities Act and such additional
steps as may be required by the National Association of Securities
Dealers, Inc. (herein called the "NASD") or such additional steps as
may be necessary to qualify the Stock for public offering by the
Underwriters under state securities or blue sky laws) has been duly
obtained or made and is in full force and effect.
(xvi) Except as described in the Prospectus, the Company
and each of its Subsidiaries now holds and at the Closing Date and any
later date on which the Option Stock is purchased, as the case may be,
will hold, all licenses, consents, certificates, orders, approvals and
permits from all state, Federal, foreign and other governmental or
regulatory authorities, including, but not limited to, the FDA and any
foreign, federal, state or local governmental or regulatory authorities
performing functions similar to those performed by the FDA, that are
required under Applicable Law for the conduct of the business of the
Company and its Subsidiaries as such business is currently conducted
and as proposed to be conducted as described in the Prospectus, except
for such licenses, consents, certificates, orders, approvals and
permits which the failure to hold would not reasonably be expected to
have a Material Adverse Effect. All of such licenses, consents,
certificates, orders, approvals and permits held by the Company are
valid and in full force and effect (and there is no proceeding pending
or, after due inquiry, to the knowledge of the Company, threatened
which may cause any such license, consent, certificate, order, approval
or permit to be withdrawn, cancelled, suspended or not renewed).
(xvii) To the Company's knowledge, no labor disturbance by
or dispute exists or is imminent with the employees of the Company or
any or its Subsidiaries, that would reasonably be expected to result in
a Material Adverse Effect. No collective bargaining agreement exists
with any of the Company's or its Subsidiaries' employees and, to the
Company's knowledge, no such agreement is imminent.
(xviii) Except as described in the Prospectus, each of the
Company and its Subsidiaries is in compliance with all provisions of
Applicable Law issued or administered by any foreign, federal, state or
local governmental agency or body or court having jurisdiction over the
Company or any of its Subsidiaries, including, without limitation,
Applicable Law relating to: (i) the pre-clinical and clinical testing,
design, manufacture, safety, efficiency, labeling, storage,
record-keeping, advertising and promotion of medical devices, including
the laws, rules and regulations, guidelines and policies administered
or promulgated by the FDA or any foreign, federal, state or local
governmental or regulatory authorities performing functions similar to
those performed by the FDA and exercising comparable authority, (ii)
the procurement and transplantation of allograft and other tissue based
products, including laws, rules, regulations and orders adopted and
issued under the Natural Organ Transplant Act (NOTA) or other similar
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foreign, federal, state or local laws, rules, regulations and orders,
(iii) discrimination in hiring, promotion or pay of, or to the wages or
hours of, employees and (iv) the import and export of the Company's or
any of its Subsidiaries' products, in each case except where any such
failure to be in compliance would not reasonably be expected to have a
Material Adverse Effect.
(xix) Each of the Company and its Subsidiaries is in
compliance in all material respects with all currently applicable
provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations
thereunder (herein called "ERISA"); no "reportable event" (as defined
in ERISA) has occurred with respect to any "pension plan" (as defined
in ERISA) for which the Company or any Subsidiary would have any
liability; the Company and its Subsidiaries have not incurred and do
not expect to incur liability under (i) Title IV of ERISA with respect
to termination of, or withdrawal from, any "pension plan" or (ii)
Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended,
including the regulations and published interpretations thereunder
(herein called the "Code"); and each "pension plan" for which the
Company or any Subsidiary would have any liability that is intended to
be qualified under Section 401(a) of the Code is so qualified in all
material respects and nothing has occurred, whether by action or by
failure to act, that would reasonably be expected to cause the loss of
such qualification.
(xx) Each of the Company and its Subsidiaries (i) is in
compliance with any and all foreign, federal, state or local laws,
orders, rules, regulations, injunctions, judgments, or decrees
applicable to the Company or any of its Subsidiaries of any court or of
any regulatory body or administrative agency or other governmental body
having jurisdiction over the Company or any of its Subsidiaries
relating to the protection of the environment or hazardous or toxic
substances or wastes, pollutants or contaminants, including, without
limitation, all Applicable Law relating to biohazardous substances
(herein called "Environmental Laws"), (ii) has received all permits,
licenses or other approvals required of it under applicable
Environmental Laws to conduct its respective business and (iii) is in
compliance with all terms and conditions of any such permit, license or
approvals, except where such noncompliance with Environmental Laws, the
failure to receive required permits, licenses or other approvals or the
failure to comply with the terms and conditions of such permits,
licenses or approvals would not reasonably be expected to have a
Material Adverse Effect.
(xxi) The Company and its Subsidiaries have not incurred
any costs or liabilities associated with Environmental Laws (including,
without limitation, any capital or operating expenditures required for
clean-up, closure of properties or compliance with Environmental Laws
or any permit, license or approval, any related constraints on
operating activities and any potential liabilities to third parties)
which are ongoing and which would reasonably be expected to have a
Material Adverse Effect.
(xxii) Except as described in the Registration Statement or
the Prospectus, each of the Company and its Subsidiaries owns or
possesses adequate rights to use all material inventions, designs,
trade secrets, know-how, trademarks, service marks, trade names,
copyright works or other information (herein collectively called
"Intellectual Property")
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which are necessary to conduct its businesses as described in the
Registration Statement and the Prospectus. Except as set forth in the
Registration Statement or the Prospectus, neither the Company nor any
of its Subsidiaries has received any notice of, or has any knowledge
of, any infringement of or conflict with any rights of the Company by
others with respect to any Intellectual Property which, if the subject
of an unfavorable decision, ruling or finding, would reasonably be
expected to have a Material Adverse Effect. Except as set forth in the
Registration Statement or the Prospectus, neither the Company nor any
of its Subsidiaries has received any notice of, or has knowledge of,
any infringement of or conflict with any rights of others with respect
to any Intellectual Property which if the subject of an unfavorable
decision, ruling or finding, would reasonably be expected to have a
Material Adverse Effect. To the Company's knowledge none of the
Intellectual Property licensed to or by the Company or any of its
Subsidiaries is unenforceable or invalid; and the Company is not aware
(without having made inquiry) of the granting of any patent rights to
third parties or the filing of any patent applications by third parties
or of any other rights of third parties to, or conflicting with, any
Intellectual Property owned by the Company or any of its Subsidiaries.
A true and complete list of patents material to the Company's and its
Subsidiaries' businesses is set forth on Schedule IV.
(xxiii) To the Company's knowledge, in connection with the
filing of all patent applications filed or caused to be filed by the
Company and its Subsidiaries with the United States Patent and
Trademark Office (herein called the "PTO"), each of the Company and its
Subsidiaries has complied with the PTO's duty of candor and disclosure
for their patent and has made no material misrepresentation in any such
application or in any application filed with any applicable foreign
patent authorities. The Company is unaware of any facts material to a
determination of patentability regarding the Company's and its
Subsidiaries' patent applications not called to the attention of the
PTO and is unaware of any facts not called to the attention of the PTO
which would preclude the grant of a patent for such applications. The
Company has no knowledge of any facts which would materially conflict
with the Company's or any of its Subsidiaries' ownership rights to its
patent applications.
(xxiv) Neither the Company nor any of its Subsidiaries has
taken, directly or indirectly, any action designed to cause or result
in, or which has constituted or which would reasonably be expected to
constitute, the stabilization or manipulation of the price of the
shares of Common Stock to facilitate the sale or resale of the Stock.
(xxv) Neither the Company nor any of its Subsidiaries is,
and after the offer and sale of the Stock will be, an "investment
company" or an entity "controlled" by an "investment company" within
the meaning of such terms under the Investment Company Act of 1940, as
amended (herein called the "Investment Company Act") and the Rules And
Regulations of the Commission.
(xxvi) Each of the Company and its Subsidiaries maintains a
system of internal accounting controls sufficient to provide reasonable
assurances that (i) transactions are executed in accordance with
management's general or specific authorization; (ii) transactions are
recorded as necessary to permit preparation of financial statements in
9
conformity with generally accepted accounting principles and to
maintain accountability for assets; (iii) access to assets is permitted
only in accordance with management's general or specific authorization;
and (iv) the recorded accountability for assets is compared with
existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.
(xxvii) Each of the Company and its Subsidiaries carries, or
is covered by, insurance with insurers of nationally recognized
reputation in such amounts and covering such risks as the Company
believes is customary for companies engaged in similar industries to
protect it from material liabilities.
(xxviii) None of the Company and its Subsidiaries has or will
distribute prior to the later of (i) the Closing Date, or any date on
which Option Stock is to be purchased, as the case may be, and (ii)
completion of the distribution of the Stock, any offering material
(including, without limitation, content on its website, if any, that
may be deemed to be offering material) in connection with the offering
and sale of the Stock other than any Preliminary Prospectus, the
Prospectus, the Registration Statement and other materials, if any,
permitted by the Securities Act.
(xxix) Neither the Company nor any of its Subsidiaries has
incurred any liability for any finder's fees or similar payments in
connection with the transactions contemplated hereby other than to the
Underwriters.
(xxx) Neither the Company nor any of its Subsidiaries nor
any director or officer associated with or acting on behalf of the
Company or any of its Subsidiaries has used any corporate funds for any
unlawful gift, entertainment or other unlawful expense relating to
political activity; made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate
funds; violated or is in violation of any provision of the Foreign
Corrupt Practices Act of 1977 or any analogous foreign law; or made any
bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.
(xxxi) All sales of the Company's securities prior to the
date hereof were at all relevant times duly registered under the
Securities Act and applicable foreign securities laws and state
securities or Blue Sky laws or were exempt from the registration
requirements of the Securities Act and applicable foreign and state
securities laws, or if such securities were not registered or exempt in
compliance with the Securities Act and applicable foreign and state
securities laws, any private rights of action for recission or damages
arising from the failure to register any such securities are time
barred by applicable statutes of limitations or equitable principles,
including laches.
(xxxii) The Company has obtained the agreement of (A) each of
its directors and officers, (B) certain holders of the outstanding
Common Stock; and (C) certain holders of other securities convertible
into or exercisable or exchangeable for Common Stock or warrants or
other rights to purchase Common Stock (such that the aggregate of such
securities that are not subject to such agreement does not represent
more than 1% of the outstanding Common Stock), not to sell, contract to
sell, transfer the economic risk of
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ownership in, make any short sale, pledge or otherwise dispose of,
directly or indirectly, any shares of Common Stock or securities
convertible into or exercisable or exchangeable for Common Stock or
warrants or other rights to purchase Common Stock for a period of 90
days after the date of the Prospectus.
(b) Each of the Selling Stockholders hereby severally, but not
jointly, represents and warrants as follows:
(i) Such Selling Stockholder is the record and beneficial
owner of, and has, and on the Closing Date and the Option Closing Date
will have, valid and marketable title to the Stock to be sold by it,
free and clear of all security interests, claims, liens, restrictions
on transferability, legends, proxies, equities or other encumbrances;
and upon delivery of and payment for such Stock hereunder, the several
Underwriters will acquire valid and marketable title thereto, free and
clear of any security interests, claims, liens, restrictions on
transferability, legends, proxies, equities or other encumbrances or
adverse claims. Such Selling Stockholder is selling the Stock to be
sold by it for its own account and is not selling such Stock, directly
or indirectly, for the benefit of the Company, and no part of the
proceeds of such sale received by such Selling Stockholder will inure,
either directly or indirectly, to the benefit of the Company other than
as described in the Registration Statement and Prospectus.
(ii) The certificates representing the Stock to be sold by
such Selling Stockholder have been or will be duly and properly
endorsed in blank for transfer, or are or will be at the Option Closing
accompanied by all documents duly and properly executed that are
necessary to validate the transfer of title thereto, to the
Underwriters, free of any legend, restriction on transferability,
proxy, lien or claim, whatsoever.
(iii) Such Selling Stockholder has the power and authority
to enter into this Agreement, and in the case of each such Selling
Shareholder who is party thereto, an irrevocable power of attorney
dated on or prior to the date hereof (the "Power of Attorney") and a
Custody Agreement dated on or prior to the date hereof (the "Custody
Agreement"), and to perform transactions contemplated hereby and
thereby, including to sell, transfer and deliver the Stock to be sold
by it.
(iv) Each of (i) this Agreement and (ii) the Power of
Attorney and the Custody Agreement has been duly authorized, executed
and delivered by or on behalf of such Selling Stockholder party thereto
and (assuming due authorization and delivery by the Underwriters and
the Company) constitutes a valid and binding agreement of such Selling
Stockholder, enforceable in accordance with its terms, except insofar
as indemnity and contribution hereunder may be limited by Federal or
state securities laws, principles of public policy or equitable
principles and except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors' rights generally or by general equitable
principles.
(v) The execution and delivery of (i) this Agreement and
(ii) the Power of Attorney and the Custody Agreement (in the case of
such Selling Stockholders who are party thereto) and the performance of
the terms hereof and thereof and the consummation
11
of the transactions contemplated herein and therein and the fulfillment
of the terms hereof and thereof will not conflict with or result in a
breach of any of the terms or provisions of, or constitute a default
under, or result in the imposition of any lien, charge or encumbrance
upon any property or assets or property or assets of such Selling
Stockholder pursuant to (A) any indenture, mortgage, deed of trust or
other agreement or instrument to which such Selling Stockholder is a
party or by which such Selling Stockholder is bound, (B) its
partnership agreement or other constitutive document pursuant to which
such Selling Stockholder is organized or (C) any foreign, Federal,
state or local law, order, rule, regulation, injunction, judgment, or
decree applicable to such Selling Stockholder of any court or of any
regulatory body or administrative agency or other governmental body
having jurisdiction over such Selling Stockholder.
(vi) Each approval, consent, order, authorization,
designation, declaration or filing by or with any regulatory,
administrative or other governmental body necessary under any foreign,
Federal, state or local law, order, rule, regulation, injunction,
judgment or decree applicable to such Selling Stockholder of any court
or any regulatory body or administrative agency or other governmental
body having jurisdiction over such Selling Stockholder in connection
with the execution and delivery by such Selling Stockholder of (i) this
Agreement and (ii) any Power of Attorney and the Custody Agreement to
which such Selling Stockholder is a party, and the consummation of the
transactions herein and therein contemplated, including the sale of the
Stock being sold by such Selling Stockholder, except such as may be
required under the Securities Act or state securities laws or blue sky
laws, has been duly obtained or made and is in full force and effect.
(vii) Such Selling Stockholder has not distributed and will
not distribute any prospectus or other offering material in connection
with the offering and sale of the Stock other than any Preliminary
Prospectus or the Prospectus or other materials permitted by the
Securities Act to be distributed by such Selling Stockholder.
(viii) Such Selling Stockholder has reviewed those parts of
the Registration Statement and Prospectus under the captions "Certain
Transactions--Sales of Securities" and "Principal and Selling
Stockholders" which contain information about such Selling Stockholder
and its affiliated entities and with regard to such information only
(A) on the Effective Date, the Registration Statement did not contain
any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements
therein not misleading, and (B) on the date hereof the Prospectus does
not, and on the Closing Date and any later date on which the Option
Stock is exercised, will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading, in each case insofar as it relates to such Selling
Stockholder or its affiliates.
(ix) Certificates in negotiable form representing all of
the Stock to be sold by each Selling Stockholder hereunder party to the
Custody Agreement have been placed in custody under the Custody
Agreement relating to such Stock, in the form heretofore furnished to
you, duly executed and delivered by such Selling Stockholder to
American Stock Transfer and Trust Company, as custodian (the
"Custodian"), and such Selling
12
Stockholder has duly executed and delivered a Power of Attorney, in the
form heretofore furnished to you, appointing the person or persons
indicated in Schedule VI hereto, and each of them, as such Selling
Stockholder's Attorneys-in-Fact (the "Attorneys-in-Fact" or any one of
them an "Attorney-in Fact") with authority to execute and deliver this
Agreement on behalf of such Selling Stockholder, to determine the
purchase price to be paid by the Underwriters to the Selling
Stockholders as provided herein, to authorize the delivery of the Stock
to be sold by such Selling Stockholder hereunder and otherwise to act
on behalf of such Selling Stockholder in connection with the
transactions contemplated by this Agreement and the Custody Agreement.
(c) OFFICER'S CERTIFICATE. Any certificate signed by any officer
of the Company delivered to the Underwriters or to counsel for the Underwriters
shall be deemed a representation and warranty by the Company to each Underwriter
as to the matters covered thereby. Any certificate signed by or on behalf of any
Selling Stockholder as such and delivered to you or to counsel for the
Underwriters shall be deemed a representation and warranty by such Selling
Stockholder to each Underwriters as to the matters covered thereby.
3. PURCHASE OF THE STOCK BY THE UNDERWRITERS.
(a) On the basis of the representations and warranties and subject
to the terms and conditions herein set forth, the Company agrees to issue and
sell 3,000,000 shares, and each Selling Stockholder agrees to sell such number
of shares of the Underwritten Stock set forth opposite its name on Schedule VII
hereto to the several Underwriters and each of the Underwriters agrees to
purchase from the Company and the Selling Stockholders the respective aggregate
number of shares of Underwritten Stock set forth opposite its name in Schedule
I. The price at which such shares of Underwritten Stock shall be sold by the
Company and the Selling Stockholders and purchased by the several Underwriters
shall be $________ per share. In making this Agreement, each Underwriter is
contracting severally and not jointly; except as provided in paragraphs (b) and
(c) of this Section 3, the agreement of each Underwriter is to purchase only the
respective number of shares of the Underwritten Stock specified in Schedule I.
(b) If for any reason one or more of the Underwriters shall fail
or refuse (otherwise than for a reason sufficient to justify the termination of
this Agreement under the provisions of Section 8 or 9 hereof) to purchase and
pay for the number of shares of the Stock agreed to be purchased by such
Underwriter or Underwriters, the Company shall immediately give notice thereof
to you and each Selling Stockholder, and the non-defaulting Underwriters shall
have the right within 24 hours after the receipt by you of such notice to
purchase, or procure one or more other Underwriters to purchase, in such
proportions as may be agreed upon between you and such purchasing Underwriter or
Underwriters and upon the terms herein set forth, all or any part of the shares
of the Stock which such defaulting Underwriter or Underwriters agreed to
purchase. If the non-defaulting Underwriters fail so to make such arrangements
with respect to all such shares and portion, the number of shares of the Stock
which each non-defaulting Underwriter is otherwise obligated to purchase under
this Agreement shall be automatically increased on a pro rata basis to absorb
the remaining shares and portion which the defaulting Underwriter or
Underwriters agreed to purchase; PROVIDED, HOWEVER, that the non-defaulting
Underwriters shall not be obligated to purchase the shares and portion which the
defaulting Underwriter or Underwriters agreed to purchase if the aggregate
number of such shares of the Stock exceeds
13
10% of the total number of shares of the Stock which all Underwriters agreed to
purchase hereunder. If the total number of shares of the Stock which the
defaulting Underwriter or Underwriters agreed to purchase shall not be purchased
or absorbed in accordance with the two preceding sentences, the Company shall
have the right, within 24 hours next succeeding the 24-hour period above
referred to, to make arrangements with other underwriters or purchasers
reasonably satisfactory to you for purchase of such remaining shares and portion
on the terms herein set forth. In any such case, either you or the Company shall
have the right to postpone the Closing Date determined as provided in Section 5
hereof for not more than seven business days after the date originally fixed as
the Closing Date pursuant to said Section 5 in order that any necessary changes
in the Registration Statement, the Prospectus or any other documents or
arrangements may be made. If neither the non-defaulting Underwriters nor the
Company shall make arrangements within the 24-hour periods stated above for the
purchase of all the shares of the Stock which the defaulting Underwriter or
Underwriters agreed to purchase hereunder, this Agreement shall be terminated
without further act or deed and without any liability on the part of the Company
or any Selling Stockholder to any non-defaulting Underwriter and without any
liability on the part of any non-defaulting Underwriter to the Company or any
Selling Stockholder. Nothing in this paragraph (b), and no action taken
hereunder, shall relieve any defaulting Underwriter from liability in respect of
any default of such Underwriter under this Agreement.
(c) On the basis of the representations, warranties and covenants
herein contained, and subject to the terms and conditions herein set forth, each
of the Company and Warburg Pincus grants an option to the several Underwriters
to purchase on a PRO RATA basis, severally and not jointly, up to 450,000 shares
in the aggregate of the Option Stock from each of the Company and Warburg
Pincus, respectively, at the same price per share as the Underwriters shall pay
for the Underwritten Stock. Said option may be exercised only to cover
over-allotments in the sale of the Underwritten Stock by the Underwriters and
may be exercised in whole or in part at any time (but not more than once) on or
before the thirtieth day after the date of this Agreement (such closing referred
to as the "Option Closing" and such date as the "Option Closing Date") upon
written or telegraphic notice by you to the Company and Warburg Pincus setting
forth the aggregate number of shares of the Option Stock as to which the several
Underwriters are exercising the option. Delivery of certificates for the shares
of Option Stock, and payment therefor, shall be made as provided in Section 5
hereof. The number of shares of the Option Stock to be purchased by each
Underwriter shall be the same percentage of the total number of shares of the
Option Stock to be purchased by the several Underwriters as such Underwriter is
purchasing of the Underwritten Stock, as adjusted by you in such manner as you
deem advisable to avoid fractional shares.
4. OFFERING BY UNDERWRITERS.
(a) The terms of the public offering by the Underwriters of the
Stock to be purchased by them shall be as set forth in the Prospectus. The
Underwriters may from time to time change the public offering price after the
closing of the public offering and increase or decrease the concessions and
discounts to dealers as they may determine.
14
(b) The information set forth in the last paragraph on the front
cover page and in paragraphs 5, 11 and 12 under the caption "Underwriting" in
the Registration Statement, any Preliminary Prospectus and the Prospectus
relating to the Stock filed by the Company (insofar as such information relates
to the Underwriters) constitutes the only information furnished by the
Underwriters to the Company for inclusion in the Registration Statement, any
Preliminary Prospectus and the Prospectus.
5. DELIVERY OF AND PAYMENT FOR THE STOCK.
(a) Delivery of certificates for the shares of the Underwritten
Stock and the Option Stock (if the option granted by Section 3(c) hereof shall
have been exercised not later than 10:00 A.M., New York City time, on the date
two business days preceding the Closing Date), and payment therefor, shall be
made at the office of Milbank, Tweed, ▇▇▇▇▇▇ & ▇▇▇▇▇▇ LLP, located at ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, at 10:00 a.m., New York City time, on
the fourth business day after the date of this Agreement, or at such time on
such other day, not later than seven full business days after such fourth
business day, as shall be agreed upon in writing by the Company and you. The
date and hour of such delivery and payment (which may be postponed as provided
in Section 3(b) hereof) are herein called the "Closing Date".
(b) If the option granted by Section 3(c) hereof shall be
exercised after 10:00 a.m., New York City time, on the date two business days
preceding the Closing Date, delivery of certificates for the shares of Option
Stock, and payment therefor, shall be made at the office of Milbank, Tweed,
▇▇▇▇▇▇ & ▇▇▇▇▇▇ LLP, located at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, at
10:00 a.m., New York City time, on the third business day after the exercise of
such option, unless otherwise agreed upon by the Company and you.
(c) Payment for the Stock purchased from the Company or any
Selling Stockholder, as applicable, shall be made to the Company or such Selling
Stockholder, as applicable, or to its order by wire transfer of Federal or other
funds immediately available in New York City. Such payment shall be made upon
delivery of certificates for the Stock to you for the respective accounts of the
several Underwriters against receipt therefor signed by you. Certificates for
the Stock to be delivered to you shall be registered in such name or names and
shall be in such denominations as you may request at least one business day
before the Closing Date, in the case of Underwritten Stock, and at least one
business day prior to the purchase thereof, in the case of the Option Stock.
Such certificates will be made available to the Underwriters for inspection,
checking and packaging at the offices of Lewco Securities Corporation, ▇
▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ on the business day prior to the Closing Date
or, in the case of the Option Stock, by 3:00 p.m., New York time, on the
business day preceding the date of purchase.
It is understood that you, individually and not on behalf of the
Underwriters, may (but shall not be obligated to) make payment to the Company
and the Selling Shareholders for shares to be purchased by any Underwriter whose
check shall not have been received by you on the Closing Date or any later date
on which Option Stock is purchased for the account of such Underwriter. Any such
payment by you shall not relieve such Underwriter from any of its
15
obligations hereunder. Nothing herein contained shall constitute any of the
Underwriters an unincorporated association or partner with the Company or any
Selling Stockholder.
6. FURTHER AGREEMENTS OF THE COMPANY AND SELLING STOCKHOLDERS.
(a) The Company covenants and agrees as follows:
(i) The Company will (A) prepare and timely file with the
Commission under Rule 424(b) a Prospectus containing information
previously omitted at the time of effectiveness of the Registration
Statement in reliance on Rule 430A and (B) not file any amendment to
the Registration Statement or supplement to the Prospectus of which you
shall not previously have been advised and furnished with a copy or to
which you shall have reasonably objected in writing or which is not in
compliance with the Securities Act or the Rules and Regulations.
(ii) The Company will promptly notify each Underwriter in
the event of (A) the request by the Commission for amendment of the
Registration Statement or for supplement to the Prospectus or for any
additional information, (B) the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement, (C)
the institution or notice of intended institution of any action or
proceeding for that purpose, (D) the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Stock for sale in any jurisdiction, or (E) the receipt by it of notice
of the initiation or threatening of any proceeding for such purpose.
The Company will make every reasonable effort to prevent the issuance
of such a stop order and, if such an order shall at any time be issued,
to obtain the withdrawal thereof at the earliest possible moment.
(iii) The Company will (A) on or before the Closing Date,
deliver to you a signed copy of the Registration Statement as
originally filed and of each amendment thereto filed prior to the time
the Registration Statement becomes effective and, promptly upon the
filing thereof, a signed copy of each post-effective amendment, if any,
to the Registration Statement (together with, in each case, all
exhibits thereto unless previously furnished to you) and will also
deliver to you, for distribution to the Underwriters, a sufficient
number of additional conformed copies of each of the foregoing (but
without exhibits) so that one copy of each may be distributed to each
Underwriter, (B) as promptly as possible deliver to you and send to the
several Underwriters, at such office or offices as you may designate,
as many copies of the Prospectus as you may reasonably request, and (C)
thereafter from time to time during the period in which a prospectus is
required by law to be delivered by an Underwriter or dealer, likewise
send to the Underwriters as many additional copies of the Prospectus
and as many copies of any supplement to the Prospectus and of any
amended prospectus, filed by the Company with the Commission, as you
may reasonably request for the purposes contemplated by the Securities
Act. The copies of the Registration Statement and each amendment
thereto furnished to the Underwriters will be identical to the
electronically transmitted copies thereof filed with the Commission
pursuant to ▇▇▇▇▇, except to the extent permitted by Regulation S-T.
16
(iv) If at any time during the period in which a
prospectus is required by law to be delivered by an Underwriter or
dealer any event relating to or affecting the Company, or of which the
Company shall be advised in writing by you, shall occur as a result of
which it is necessary, in the opinion of counsel for the Company or of
counsel for the Underwriters, to supplement or amend the Prospectus in
order to make the Prospectus not misleading in the light of the
circumstances existing at the time it is delivered to a purchaser of
the Stock, the Company will forthwith prepare and file with the
Commission a supplement to the Prospectus or an amended prospectus so
that the Prospectus as so supplemented or amended will not contain any
untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances existing at the time such Prospectus is delivered to such
purchaser, not misleading. If, after the public offering of the Stock
by the Underwriters and during such period, the Underwriters shall
propose to vary the terms of offering thereof by reason of changes in
general market conditions or otherwise, you will advise the Company in
writing of the proposed variation, and, if in the opinion either of
counsel for the Company or of counsel for the Underwriters such
proposed variation requires that the Prospectus be supplemented or
amended, the Company will forthwith prepare and file with the
Commission a supplement to the Prospectus or an amended prospectus
setting forth such variation. The Company authorizes the Underwriters
and all dealers to whom any of the Stock may be sold by the several
Underwriters to use the Prospectus, as from time to time amended or
supplemented, in connection with the sale of the Stock in accordance
with the applicable provisions of the Securities Act and the applicable
rules and regulations thereunder for such period.
(v) Prior to the filing thereof with the Commission, the
Company will submit to you, for your information, a copy of any
post-effective amendment to the Registration Statement and any
supplement to the Prospectus or any amended prospectus proposed to be
filed.
(vi) The Company will cooperate, when and as requested by
you, in the qualification of the Stock for offer and sale under the
securities or blue sky laws of such jurisdictions, including under
applicable state, foreign and provincial securities laws, as you may
designate and, during the period in which a prospectus is required by
law to be delivered by an Underwriter or dealer, in keeping such
qualifications in good standing under said securities or blue sky laws;
PROVIDED, HOWEVER, that the Company shall not be obligated to file any
general consent to service of process or to qualify as a foreign
corporation in any jurisdiction in which it is not so qualified. The
Company will, from time to time, prepare and file such statements,
reports, and other documents as are or may be required to continue such
qualifications in effect for so long a period as you may reasonably
request for distribution of the Stock.
(vii) During a period of five years commencing with the
date hereof, the Company will furnish to you, and to each Underwriter
who may so request in writing, copies of all periodic and special
reports furnished to stockholders of the Company and of all
information, documents and reports filed with the Commission.
17
(viii) The Company agrees to pay all costs and expenses
incident to the performance of its obligations under this Agreement,
including all costs and expenses incident to (A) the preparation,
printing and filing with the Commission and the NASD of the
Registration Statement, any Preliminary Prospectus and the Prospectus,
(B) the furnishing to the Underwriters of copies of any Preliminary
Prospectus and of the several documents required by Section 6(a)(iii)
hereof to be so furnished, (C) the printing of this Agreement and
related documents delivered to the Underwriters, (D) the preparation,
printing and filing of all supplements and amendments to the Prospectus
referred to in Section 6(a)(iv) hereof, (E) the furnishing to you and
the Underwriters of the reports and information referred to in Section
6(a)(vii) hereof and (F) the printing and issuance of stock
certificates, including the transfer agent's fees.
(ix) The Company agrees to reimburse you, for the account
of the several Underwriters, for blue sky fees and related
disbursements (including counsel fees and disbursements and cost of
printing memoranda for the Underwriters) paid by or for the account of
the Underwriters or their counsel in qualifying the Stock under state
securities or blue sky laws and in the review of the offering by the
NASD.
(x) The Company hereby agrees that, without the prior
written consent of ▇. ▇. ▇▇▇▇▇▇ Securities Inc. on behalf of the
Underwriters, the Company will not, for a period of 90 days following
the commencement of the public offering of the Stock by the
Underwriters, directly or indirectly, (A) sell, offer, contract to
sell, make any short sale, pledge, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase or otherwise transfer or dispose of any
shares of Common Stock or any securities convertible into or
exchangeable or exercisable for or any rights to purchase or acquire
Common Stock or (B) enter into any swap or other agreement that
transfers, in whole or in part, any of the economic consequences or
ownership of Common Stock, whether any such transaction described in
clause (A) or (B) above is to be settled by delivery of Common Stock or
such other securities, in cash or otherwise. The foregoing sentence
shall not apply to (1) the Stock to be sold to the Underwriters
pursuant to this Agreement, (2) shares of Common Stock issued by the
Company upon the exercise of options granted under the stock incentive
plans of the Company (herein referred to as "Option Plans") or upon the
exercise of warrants outstanding as of the date hereof, all as
described in the section "Capitalization" in the Preliminary
Prospectus, (3) the issuance of Common Stock upon conversion of shares
of the Company's non-voting common stock, par value $.01 per share
(referred to herein as the "Non-Voting Common Stock"), into shares of
Common Stock in accordance with the Company's Certificate of
Incorporation and (4) shares of Common Stock, cash awards or options,
warrants or like securities to purchase Common Stock issued or granted
under the Option Plans.
(xi) The Company agrees to use its commercially reasonable
efforts to cause all directors, officers and beneficial holders of the
outstanding Common Stock identified on Schedule V to agree, pursuant to
a "lock-up" letter substantially in the form of Annex A hereto, that,
without the prior written consent of ▇. ▇. ▇▇▇▇▇▇ Securities Inc.,
18
such person or entity will not, for a period of 90 days following the
commencement of the public offering of the Stock by the Underwriters,
directly or indirectly, sell, offer, contract to sell, transfer the
economic risk of ownership in, make any short sale, pledge or otherwise
dispose of any shares of Common Stock or any securities convertible
into or exchangeable or exercisable for or any other rights to purchase
or acquire Common Stock. The foregoing sentence shall not apply to (1)
shares of Common Stock issued by the Company upon the exercise of
options granted under the Stock Option Plans as in effect at the date
of the Preliminary Prospectus and as described in the Preliminary
Prospectus, (2) shares of Common Stock issued upon conversion of shares
of Non-Voting Common Stock into shares of Common Stock, (3) the sale of
Underwritten Stock to the Underwriters pursuant to Section 3(a) or (4)
the sale of Option Stock to the Underwriters pursuant to exercise of
the option granted to the Underwriters by each of the Company and
Warburg Pincus pursuant to Section 3(c) hereof.
(xii) The Company is familiar with the Investment Company
Act of 1940, as amended, and has in the past conducted its affairs, and
will in the future conduct its affairs, in such a manner to ensure that
the Company was not and will not be an "investment company" or a
company "controlled" by an "investment company" within the meaning of
the Investment Company Act of 1940, as amended, and the rules and
regulations thereunder.
(xiii) The Company will use the net proceeds received by it
from the sale of the Stock in the manner specified in the Prospectus
under "Use of Proceeds."
(b) Each Selling Stockholder severally, but not jointly, covenants
and agrees as follows:
(i) Except as otherwise agreed to by the Company and such
Selling Stockholder, such Selling Stockholder will pay all taxes, if
any, on the transfer and sale, respectively, of the Stock being sold by
such Selling Stockholder, and the fees of counsel to such Selling
Stockholder, PROVIDED, however, that such Selling Stockholder severally
will reimburse the Company for any reimbursement made by the Company to
the Underwriters pursuant to Section 9 hereof to the extent such
reimbursement resulted from the willful failure or refusal on the part
of such Selling Stockholder to comply with the terms or fulfill any of
the conditions of this Agreement.
(ii) If this Agreement is terminated by the Underwriters
because of any willful failure, refusal or inability on the part of
such Selling Stockholder to perform any agreement to be performed
hereunder by such Selling Stockholder, or because any other condition
of the Underwriters' obligations hereunder required to be fulfilled by
such Selling Stockholder is not fulfilled, such Selling Stockholder
will reimburse the several Underwriters for all out-of-pocket
disbursements (including fees and disbursements of counsel for the
Underwriters) incurred by the Underwriters in connection with their
investigation, preparing to market and marketing the Stock or in
contemplation of performing their obligations hereunder. Such Selling
Stockholder will not in any event be liable to any of the Underwriters
for loss of anticipated profits from the transactions covered by this
Agreement.
19
(iii) The Stock to be sold by such Selling Stockholder is
subject to the interest of the several Underwriters, and the
obligations of such Selling Stockholder hereunder are irrevocable and
shall not be terminated, except as provided in this Agreement, by any
act of such Selling Stockholder, by operation of law, whether by the
liquidation, dissolution or merger of such Selling Stockholder, or by
the occurrence of any other event. If such Selling Stockholder should
liquidate, dissolve, be a party to a merger or if any other such event
should occur before the delivery of the Stock hereunder, certificates
for the Stock will be delivered in accordance with the terms and
conditions of this Agreement as if such liquidation, dissolution,
merger, death or other event had not occurred.
(iv) Such Selling Stockholder has not taken, directly or
indirectly, any action designed to cause or result in, or which has
constituted or which would reasonably be expected to constitute, the
stabilization or manipulation of the price of the shares of Common
Stock to facilitate the sale or resale of the Stock.
(v) Such Selling Stockholder will immediately notify you
if any event occurs, or of any change in information relating to such
Selling Stockholder, which makes it necessary to supplement or amend
the Prospectus such that the Prospectus does not or will not contain an
untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.
(vi) Each of the Selling Stockholders party to the Custody
Agreement specifically agrees that the Stock represented by the
certificates held in custody for such Selling Stockholder under the
Custody Agreement are subject to the interests of the Underwriters
hereunder, and that the arrangements made by such Selling Stockholder
for such custody, and the appointment by such Selling Stockholder of
the Attorneys-in-Fact pursuant to the Power of Attorney, are to that
extent irrevocable. Each of the Selling Stockholders specifically
agrees that the obligations of such Selling Stockholder hereunder
shall not be terminated by operation of law, by dissolution of
such Selling Stockholder or by the occurrence of any other event.
If any [individual] Selling Stockholder should be dissolved, or
if any other such event should occur, before the delivery of the
Stock hereunder, certificates representing such Stock shall be
delivered by or on behalf of such Selling Stockholder in accordance
with the terms and conditions of this Agreement and the Custody
Agreement, and actions taken by the Attorneys-in-Fact pursuant to the
Powers of Attorney shall be as valid as if such termination,
dissolution or other event had not occurred, regardless of whether or
not the Custodian, the Attorneys-in-Fact, or any of them, shall have
received notice of such termination, dissolution or other event.
7. INDEMNIFICATION AND CONTRIBUTION.
(a) The Company agrees to indemnify and hold harmless each Selling
Stockholder, each Underwriter and each person (including each partner or officer
thereof) who controls any Selling Stockholder or any Underwriter within the
meaning of Section 15 of the Securities Act from and against any and all losses,
claims, damages or liabilities, joint or several, to which such indemnified
parties or any of them may become subject under the Securities Act, the Exchange
Act, or the common law or otherwise, and the Company agrees to reimburse each
such Selling
20
Stockholder and each such Underwriter and controlling person for any legal or
other expenses (including, except as otherwise hereinafter provided, reasonable
fees and disbursements of counsel) incurred by the respective indemnified
parties in connection with defending against any such losses, claims, damages or
liabilities or in connection with any investigation or inquiry of, or other
proceeding which may be brought against, the respective indemnified parties, in
each case arising out of or based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(including the Prospectus as part thereof and any Rule 462(b) registration
statement) or any post-effective amendment thereto (including any Rule 462(b)
registration statement), or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or (ii) any untrue statement or alleged untrue statement
of a material fact contained in any Preliminary Prospectus or the Prospectus (as
amended or as supplemented if the Company shall have filed with the Commission
any amendment thereof or supplement thereto) or the omission or alleged omission
to state therein a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; PROVIDED, HOWEVER, that (1) the indemnity agreements of the Company
contained in this paragraph (a) shall not apply to any such losses, claims,
damages, liabilities or expenses if such statement or omission was made in
reliance upon and in conformity with information furnished as herein stated or
otherwise furnished in writing to the Company by or on behalf of any Underwriter
(or in the case of the Company's indemnification obligation in favor of any
Selling Stockholder, by such Selling Stockholder) for use in any Preliminary
Prospectus or the Registration Statement or the Prospectus or any such amendment
thereof or supplement thereto and (2) the indemnity agreement contained in this
paragraph (a) with respect to any Preliminary Prospectus shall not inure to the
benefit of any Underwriter from whom the person asserting any such losses,
claims, damages, liabilities or expenses purchased the Stock which is the
subject thereof (or to the benefit of any person controlling such Underwriter)
if at or prior to the written confirmation of the sale of such Stock a copy of
the Prospectus (or the Prospectus as amended or supplemented) was not sent or
delivered to such person and the untrue statement or omission of a material fact
contained in such Preliminary Prospectus was corrected in the Prospectus (or the
Prospectus as amended or supplemented) unless the failure is the result of
noncompliance by the Company with Section 6(a)(iii) hereof. The indemnity
agreements of the Company contained in this paragraph (a) and the
representations and warranties of the Company contained in Section 2 hereof
shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any indemnified party and shall survive
the delivery of and payment for the Stock.
(b) Each Underwriter severally agrees to indemnify and hold
harmless each Selling Stockholder, the Company, each of the Company's officers
who signs the Registration Statement on his own behalf or pursuant to a power of
attorney, each of the Company's directors, each other Underwriter and each
person (including each partner or officer thereof) who controls the Company or
any Selling Stockholder or any such other Underwriter within the meaning of
Section 15 of the Securities Act, from and against any and all losses, claims,
damages or liabilities, joint or several, to which such indemnified parties or
any of them may become subject under the Securities Act, the Exchange Act, or
the common law or otherwise and to reimburse each of them for any legal or other
expenses (including, except as otherwise hereinafter provided, reasonable fees
and disbursements of counsel) incurred by the respective indemnified
21
parties in connection with defending against any such losses, claims, damages or
liabilities or in connection with any investigation or inquiry of, or other
proceeding which may be brought against, the respective indemnified parties, in
each case arising out of or based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(including the Prospectus as part thereof and any Rule 462(b) registration
statement) or any post-effective amendment thereto (including any Rule 462(b)
registration statement) or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading or (ii) any untrue statement or alleged untrue statement
of a material fact contained in the Prospectus (as amended or as supplemented if
the Company shall have filed with the Commission any amendment thereof or
supplement thereto) or the omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, if such statement
or omission was made in reliance upon and in conformity with information
furnished as herein stated or otherwise furnished in writing to the Company by
or on behalf of such indemnifying Underwriter for use in the Registration
Statement or the Prospectus or any such amendment thereof or supplement thereto.
The indemnity agreement of each Underwriter contained in this paragraph (b)
shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any indemnified party and shall survive
the delivery of and payment for the Stock.
(c) Each Selling Stockholder agrees, severally and not jointly, to
indemnify and hold harmless the Company and each Underwriter and each person
(including each partner or officer thereof) who controls the Company or any
Underwriter within the meaning of Section 15 of the Securities Act from and
against any and all losses, claims, damages or liabilities to which such
indemnified parties or any of them may become subject under the Securities Act,
the Exchange Act, or the common law or otherwise, and such Selling Stockholder
agrees, severally and not jointly, to reimburse the Company and each such
Underwriter and controlling person for any legal or other expenses (including,
except as otherwise hereinafter provided, reasonable fees and disbursements of
counsel) incurred by the respective indemnified parties in connection with
defending against any such losses, claims, damages or liabilities or in
connection with any investigation or inquiry of, or other proceeding which may
be brought against, the respective indemnified parties, in each case arising out
of or based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement (including the Prospectus
as part thereof and any Rule 462(b) registration statement) or any
post-effective amendment thereto (including any Rule 462(b) registration
statement), or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or (ii) any untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Prospectus or the Prospectus (as
amended or as supplemented if the Company shall have filed with the Commission
any amendment thereof or supplement thereto) or the omission or alleged omission
to state therein a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; PROVIDED, HOWEVER, that (1) the indemnity agreements of such Selling
Stockholder contained in this paragraph (c) shall not apply to any such losses,
claims, damages, liabilities or expenses if such statement or omission was made
in reliance upon and in conformity with information furnished as herein stated
or otherwise furnished in writing to such Selling Stockholder by or on behalf of
any Underwriter (or in the case of such Selling Stockholder's
22
indemnification obligation in favor of the Company, by the Company) for use in
any Preliminary Prospectus or the Registration Statement or the Prospectus or
any such amendment thereof or supplement thereto and (2) the indemnity agreement
contained in this paragraph (c) with respect to any Preliminary Prospectus shall
not inure to the benefit of any Underwriter from whom the person asserting any
such losses, claims, damages, liabilities or expenses purchased the Stock which
is the subject thereof (or to the benefit of any person controlling such
Underwriter) if at or prior to the written confirmation of the sale of such
Stock a copy of the Prospectus (or the Prospectus as amended or supplemented)
was not sent or delivered to such person and the untrue statement or omission of
a material fact contained in such Preliminary Prospectus was corrected in the
Prospectus (or the Prospectus as amended or supplemented); and PROVIDED FURTHER,
that the Selling Stockholders shall be obligated to indemnify the Underwriters
and the Company under this Section 7(c) only if such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in the Registration Statement,
any Preliminary Prospectus, the Prospectus, or any such amendment or supplement,
in reliance upon and in conformity with written information furnished to the
Company or any Underwriter by the Selling Stockholder specifically for use in
the preparation thereof. The indemnity agreements of the Company and each
Selling Stockholder contained in this paragraph (c) and the representations and
warranties of the Company and each Selling Stockholder contained in Section 2
hereof shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any indemnified party and shall survive
the delivery of and payment for the Stock.
(d) Each party indemnified under the provision of paragraphs (a),
(b) and (c) of this Section 7 or Section 14 agrees that, upon the service of a
summons or other initial legal process upon it in any action or suit instituted
against it or upon its receipt of written notification of the commencement of
any investigation or inquiry of, or proceeding against, it in respect of which
indemnity may be sought on account of any indemnity agreement contained in such
paragraphs or Section 14, it will promptly give written notice (herein called
the "Notice") of such service or notification to the party or parties from whom
indemnification may be sought hereunder. No indemnification provided for in such
paragraphs of this Section 7 or Section 14 shall be available to any party who
shall fail so to give the Notice if the party to whom such Notice was not given
was unaware of the action, suit, investigation, inquiry or proceeding to which
the Notice would have related and was prejudiced by the failure to give the
Notice, but the omission so to notify such indemnifying party or parties of any
such service or notification shall not relieve such indemnifying party or
parties from any liability which it or they may have to the indemnified party
for contribution or otherwise than on account of such indemnity agreement. Any
indemnifying party shall be entitled at its own expense to participate in the
defense of any action, suit or proceeding against, or investigation or inquiry
of, an indemnified party. Any indemnifying party shall be entitled, if it so
elects within a reasonable time after receipt of the Notice by giving written
notice (herein called the "Notice of Defense") to the indemnified party, to
assume (alone or in conjunction with any other indemnifying party or parties)
the entire defense of such action, suit, investigation, inquiry or proceeding,
in which event such defense shall be conducted, at the expense of the
indemnifying party or parties, by counsel chosen by such indemnifying party or
parties and reasonably satisfactory to the indemnified party or parties;
PROVIDED, HOWEVER, that (i) if the indemnified party or parties reasonably
determine that there may be a conflict between the positions of the indemnifying
party or parties and of the indemnified party or parties in conducting the
defense of such action, suit, investigation, inquiry
23
or proceeding or that there may be legal defenses available to such indemnified
party or parties different from or in addition to those available to the
indemnifying party or parties, then counsel for the indemnified party or parties
shall be entitled to conduct the defense to the extent reasonably determined by
such counsel to be necessary to protect the interests of the indemnified party
or parties, (ii) in any event, the indemnified party or parties shall be
entitled to have counsel chosen by such indemnified party or parties participate
in, but not conduct, the defense, (iii) if the indemnified parties under this
Section 7 or Section 14 consist of the Underwriters or any of their officers,
employees or controlling persons, then any such counsel chosen for such
indemnified parties shall be designated in writing by ▇.▇. ▇▇▇▇▇▇ Securities
Inc., and (iv) if the indemnified parties under this Section 7 consist of the
Company or any of its officers, employees or controlling persons, then any such
counsel chosen for such indemnified parties shall be designated in writing by
the Company. If, within a reasonable time after receipt of the Notice, an
indemnifying party gives a Notice of Defense and the counsel chosen by the
indemnifying party or parties is reasonably satisfactory to the indemnified
party or parties, the indemnifying party or parties will not be liable under
paragraphs (a) through (d) of this Section 7 or Section 14 for any legal or
other expenses subsequently incurred by the indemnified party or parties in
connection with the defense of the action, suit, investigation, inquiry or
proceeding, except that (A) the indemnifying party or parties shall bear the
legal and other expenses incurred in connection with the conduct of the defense
as referred to in clause (i) of the proviso to the preceding sentence and (B)
the indemnifying party or parties shall bear such other expenses as it or they
have authorized to be incurred by the indemnified party or parties. If, within a
reasonable time after receipt of the Notice, no Notice of Defense has been
given, the indemnifying party or parties shall be responsible for any legal or
other expenses incurred by the indemnified party or parties in connection with
the defense of the action, suit, investigation, inquiry or proceeding.
(e) If the indemnification provided for in this Section 7 is
unavailable or insufficient to hold harmless an indemnified party under
paragraph (a), (b) or (c) of this Section 7, then each indemnifying party, shall
contribute to the amount paid or payable by such indemnified party as a result
of the losses, claims, damages or liabilities referred to in paragraph (a), (b)
or (c) of this Section 7, (i) in such proportion as is appropriate to reflect
the relative benefits received by each indemnifying party from the offering of
the Stock or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of each indemnifying party in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities, or actions in
respect thereof, as well as any other relevant equitable considerations. The
relative benefits received by the Company and the Selling Stockholders, on the
one hand, and the Underwriters, on the other hand, shall be deemed to be in the
same respective proportions as the total net proceeds from the offering of the
Stock received by the Company and the Selling Stockholders and the total
underwriting discount received by the Underwriters, as set forth in the table on
the cover page of the Prospectus, bear to the aggregate public offering price of
the Stock. Relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by each indemnifying party and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission.
24
The parties agree that it would not be just and equitable if
contributions pursuant to this paragraph (e) were to be determined by pro rata
allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take into account
the equitable considerations referred to in the first sentence of this paragraph
(e). The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities, or actions in respect thereof, referred to in the first
sentence of this paragraph (e) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigation, preparing to defend or defending against any action or claim
which is the subject of this paragraph (e). Notwithstanding the provisions of
this paragraph (e), (i) no Underwriter shall be required to contribute any
amount in excess of the amount by which the total price at which the Stock
underwritten by it and distributed to the public was offered to the public
exceeds the amount of any damages that such Underwriter has otherwise been
required to pay by reason of such untrue statement or omission or alleged
omission and (ii) each Selling Stockholder's contribution obligation hereunder
shall not exceed the net proceeds received by such Selling Stockholder from the
sale of Common Stock hereunder. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters' obligations in this paragraph (e) to
contribute are several in proportion to their respective underwriting
obligations and not joint.
Each party entitled to contribution agrees that upon the service of a
summons or other initial legal process upon it in any action instituted against
it in respect of which contribution may be sought, it will promptly give written
notice of such service to the party or parties from whom contribution may be
sought, but the omission so to notify such party or parties of any such service
shall not relieve the party from whom contribution may be sought from any
obligation it may have hereunder or otherwise (except as specifically provided
in paragraph (d) of this Section 7).
(f) The Company will not, without the prior written consent of
each Underwriter, settle or compromise or consent to the entry of any judgment
in any pending or threatened claim, action, suit or proceeding in respect of
which indemnification may be sought hereunder (whether or not such Underwriter
or any person who controls such Underwriter within the meaning of Section 15 of
the Securities Act is a party to such claim, action, suit or proceeding) unless
such settlement, compromise or consent includes an unconditional release of such
Underwriter and each such controlling person from all liability arising out of
such claim, action, suit or proceeding.
8. TERMINATION. This Agreement may be terminated by you at any
time prior to the Closing Date by giving written notice to the Company and each
Selling Stockholder if after the date of this Agreement trading in the Common
Stock shall have been suspended, or if there shall have occurred (i) the
engagement in hostilities or an escalation of major hostilities by the United
States or the declaration of war or a national emergency by the United States on
or after the date hereof, (ii) any outbreak of hostilities or other national or
international calamity or crisis or change in economic or political conditions
if the effect of such outbreak, calamity, crisis or change in economic or
political conditions in the financial markets of the United States would, in the
Underwriters' reasonable judgment, make the offering or delivery of the Stock
impracticable,
25
(iii) suspension of trading in securities generally on the New York Stock
Exchange, the American Stock Exchange, The Nasdaq National Market, or
limitations on prices (other than limitations on hours or numbers of days of
trading) for securities on either such exchange or system, (iv) the enactment,
publication, decree or other promulgation of any Federal or state statute,
regulation, rule or order of, or commencement of any proceeding or investigation
by, any court, legislative body, agency or other governmental authority which in
the Underwriters' opinion materially and adversely affects or will materially or
adversely affect the business or operations of the Company, (v) declaration of a
banking moratorium by either Federal or New York State authorities, or (vi) the
taking of any action by any Federal, state or local government or agency in
respect of its monetary or fiscal affairs which in the Underwriters' opinion has
a material adverse effect on the securities markets in the United States. If
this Agreement shall be terminated pursuant to this Section 8, there shall be no
liability of the Company or any Selling Stockholder to the Underwriters and no
liability of the Underwriters to the Company or any Selling Stockholder;
PROVIDED, HOWEVER, that in the event of any such termination the Company agrees
to indemnify and hold harmless the Underwriters from all costs or expenses
incident to the performance of the obligations of the Company under this
Agreement, including all costs and expenses referred to in paragraphs (ix) and
(x) of Section 6(a) hereof.
9. CONDITIONS OF UNDERWRITERS' OBLIGATIONS. The obligations of
the several Underwriters to purchase and pay for the Stock shall be subject to
the performance by the Company and each Selling Stockholder of all of their
respective obligations to be performed hereunder at or prior to the Closing Date
or the Option Closing Date, as the case may be, and to the following further
conditions:
(a) The Registration Statement shall have become
effective; and no stop order suspending the effectiveness of the
Registration Statement shall have been issued and no proceedings
therefor shall be pending or threatened by the Commission.
(b) The legality and sufficiency of the sale of the Stock
hereunder and the validity and form of the certificates representing
the Stock, all corporate proceedings and other legal matters incident
to the foregoing, and the form of the Registration Statement and of the
Prospectus (except as to the financial statements contained therein),
shall have been approved at or prior to the Closing Date by Milbank,
Tweed, ▇▇▇▇▇▇ & ▇▇▇▇▇▇ LLP, counsel for the Underwriters.
(c) You shall have received from (i) ▇▇▇▇▇▇▇ ▇▇▇▇ &
▇▇▇▇▇▇▇▇▇, New York counsel for the Company, (ii) ▇▇▇▇▇ ▇. ▇▇▇▇, Esq.,
General Counsel and Secretary of the Company, (iii) ▇▇▇▇▇▇▇ ▇▇▇▇ &
▇▇▇▇▇▇▇▇▇, special French Counsel for the Company, (iv) ▇▇▇▇▇, ▇▇▇▇▇▇ &
▇▇▇▇▇▇▇▇, special FDA regulatory counsel for the Company, (v) ▇▇▇▇▇▇▇,
Edell, Shapiro, ▇▇▇▇▇▇ & ▇▇▇▇▇, LLC, patent counsel for the Company and
(vi) ▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇▇▇▇, special counsel for the Selling
Stockholders, opinions, addressed to the Underwriters and dated the
Closing Date (or Option Closing Date if applicable), covering the
matters set forth in Annex B, Annex C, Annex D, Annex E, Annex F and
Annex G hereto, respectively, and if Option Stock is purchased at any
date after the Closing Date, additional opinions from each such
counsel, addressed to the
26
Underwriters and dated such later date, confirming that the statements
expressed as of the Closing Date in such opinions remain valid as of
such later date.
(d) You shall be satisfied that (i) as of the Effective
Date, the statements made in the Registration Statement and the
Prospectus were true and correct and neither the Registration Statement
nor the Prospectus omitted to state any material fact required to be
stated therein or necessary in order to make the statements therein,
respectively, not misleading, (ii) since the Effective Date, no event
has occurred which should have been set forth in a supplement or
amendment to the Prospectus which has not been set forth in such a
supplement or amendment, (iii) since the respective dates as of which
information is given in the Registration Statement in the form in which
it originally became effective and the Prospectus contained therein,
there has not been any material adverse change or any development
involving a prospective material adverse change in or affecting the
business, properties, financial condition or results of operations of
the Company and its Subsidiaries, taken as a whole, whether or not
arising from transactions in the ordinary course of business, and,
since such dates, except in the ordinary course of business, neither
the Company nor any of its Subsidiaries has entered into any material
transaction not referred to in the Registration Statement in the form
in which it originally became effective and the Prospectus contained
therein, (iv) neither the Company nor any of its Subsidiaries has any
material contingent obligations which are not disclosed in the
Registration Statement and the Prospectus, (v) there are not any
pending or known threatened legal proceedings to which the Company or
any of its Subsidiaries is a party or of which property of the Company
or any of its Subsidiaries is the subject which are material and which
are not disclosed in the Registration Statement and the Prospectus,
(vi) there are no contracts, leases or other documents which are
required to be filed as exhibits to the Registration Statement which
have not been filed as required and (vii) the representations and
warranties of the Company herein are true and correct in all material
respects as of the Closing Date or any later date on which Option Stock
is to be purchased, as the case may be.
(e) You shall have received on the Closing Date and on
any later date on which Option Stock is purchased a certificate, dated
the Closing Date or such later date, as the case may be, and signed by
the President and the Chief Financial Officer of the Company, stating
that the respective signers of said certificate have carefully examined
the Registration Statement in the form in which it originally became
effective and the Prospectus contained therein and any supplements or
amendments thereto, and that the statements included in clauses (i)
through (vii) of Section 9(d) hereof are true and correct.
(f) You shall have received from ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP, a
letter or letters, addressed to you and dated the Closing Date and any
later date on which Option Stock is purchased, confirming that they
are independent public accountants with respect to the Company within
the meaning of the Securities Act and the Rules and Regulations and
are in compliance with the applicable requirements relating to the
qualifications of accountants under Rule 2-01 of Regulation S-X of the
Commission and based upon the procedures described in their letter
delivered to you concurrently with the execution of this Agreement
(herein called the "Original Letter"),
27
but carried out to a date not more than three business days prior to
the Closing Date or such later date on which Option Stock is purchased
(i) confirming, to the extent true, that the statements and conclusions
set forth in the Original Letter are accurate as of the Closing Date or
such later date, as the case may be, and (ii) setting forth any
revisions and additions to the statements and conclusions set forth in
the Original Letter which are necessary to reflect any changes in the
facts described in the Original Letter since the date of the Original
Letter or to reflect the availability of more recent financial
statements, data or information.
(g) On the Closing Date and, if applicable, the Option
Closing Date, there shall have been furnished to you a certificate or
certificates, dated such date and addressed to you, signed by each
Selling Stockholder to the effect that the representations and
warranties of such Selling Stockholder contained in this Agreement are
true and correct as if made at and as of such date, and that such
Selling Stockholder has complied with all the agreements and satisfied
all the conditions on such Selling Stockholder's part to be performed
or satisfied at or prior to such date.
(h) You shall have been furnished evidence in usual
written or telegraphic form from the appropriate authorities of the
several jurisdictions, or other evidence satisfactory to you, of the
qualification referred to in paragraph (vi) of Section 6(a) hereof.
(i) Prior to the Closing Date, the Stock to be issued and
sold by the Company shall have been duly authorized for listing by the
Nasdaq National Market upon official notice of issuance.
(j) On or prior to the Closing Date, you shall have
received from all directors, officers and beneficial holders of the
outstanding Common Stock identified on Schedule V hereto, agreements,
in substantially the form attached hereto as Annex A.
(k) The NASD shall have confirmed that it has not raised
any objection with respect to the fairness and reasonableness of the
underwriting terms and arrangements.
All the agreements, opinions, certificates and letters mentioned above
or elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if Milbank, Tweed, ▇▇▇▇▇▇ & ▇▇▇▇▇▇ LLP, counsel for the
Underwriters, shall be reasonably satisfied that they comply in form and scope.
In case any of the conditions specified in this Section 9 shall not be
fulfilled, this Agreement may be terminated by you by giving notice to the
Company and each Selling Stockholder. Any such termination shall be without
liability of the Company or any Selling Stockholder to the Underwriters and
without liability of the Underwriters to the Company; PROVIDED, HOWEVER, that
(i) in the event of such termination, the Company agrees to indemnify and hold
harmless the Underwriters from all costs or expenses incident to the performance
of the obligations of the Company under this Agreement, including all costs and
expenses referred to in Sections 6(a)(ix) and (x) hereof and (ii) if this
Agreement is terminated by you because of any
28
refusal, inability or failure on the part of the Company or any Selling
Stockholder to perform any agreement herein, to fulfill any of the conditions
herein, or to comply with any provision hereof other than by reason of a default
by any of the Underwriters, the Company will reimburse the Underwriters
severally upon demand for all out-of-pocket expenses (including reasonable fees
and disbursements of counsel) that shall have been incurred by them in
connection with the transactions contemplated hereby.
10. CONDITIONS OF THE OBLIGATION OF THE COMPANY. The obligation of
the Company to deliver the Stock shall be subject to the conditions that (a) the
Registration Statement shall have become effective and (b) no stop order
suspending the effectiveness thereof shall be in effect and no proceedings
therefor shall be pending or threatened by the Commission.
In case either of the conditions specified in this Section 10 shall not
be fulfilled, this Agreement may be terminated by the Company by giving notice
to you. Any such termination shall be without liability of the Company or any
Selling Stockholder to the Underwriters and without liability of the
Underwriters to the Company or any Selling Stockholder; PROVIDED, HOWEVER, that
in the event of any such termination the Company agrees to indemnify and hold
harmless the Underwriters from all costs or expenses incident to the performance
of the obligations of the Company under this Agreement, including all costs and
expenses referred to in Sections 6(a)(ix) and (x) hereof.
11. REIMBURSEMENT OF CERTAIN EXPENSES. In addition to its other
obligations under Section 7 and Section 14 of this Agreement, the Company hereby
agrees to reimburse on a quarterly basis the Underwriters for all reasonable
legal and other expenses incurred in connection with investigating or defending
any claim, action, investigation, inquiry or other proceeding arising out of or
based upon any statement or omission, or any alleged statement or omission,
described in Section 7(a) hereof, notwithstanding the absence of a judicial
determination as to the propriety and enforceability of the obligations under
this Section 11 and the possibility that such payments might later be held to be
improper; PROVIDED, HOWEVER, that (i) to the extent any such payment is
ultimately held to be improper, the persons receiving such payments shall
promptly refund them and (ii) such persons shall provide to the Company, upon
request, reasonable assurances of their ability to effect any refund, when and
if due.
12. PERSONS ENTITLED TO BENEFIT OF AGREEMENT. This Agreement shall
inure to the benefit of the Company, each Selling Stockholder and the several
Underwriters and, with respect to the provisions of Section 7 and Section 14
hereof, the several parties (in addition to the Company, the Selling
Stockholders and the several Underwriters) indemnified under the provisions of
said Section 7 and Section 14, and their respective personal representatives,
successors and assigns. Nothing in this Agreement is intended or shall be
construed to give to any other person, firm or corporation any legal or
equitable remedy or claim under or in respect of this Agreement or any provision
herein contained. The term "successors and assigns" as herein used shall not
include any purchaser, as such purchaser, of any of the Stock from any of the
several Underwriters.
13. NOTICES. Except as otherwise provided herein, all
communications hereunder shall be in writing or by telegraph and, if to the
Underwriters, shall be mailed, telegraphed or
29
delivered to ▇. ▇. ▇▇▇▇▇▇ Securities Inc., ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇; if to Warburg Pincus, ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇ ▇▇▇▇▇ Attention: General Counsel; if to California Public Employees'
Retirement System, ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: [ ] and if to the Company, shall be mailed, telegraphed or delivered
to it at its office, ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention:
F. ▇▇▇▇▇ ▇▇▇▇, President and Chief Executive Officer. All notices given by
telegraph shall be promptly confirmed by letter.
14. MISCELLANEOUS. The reimbursement, indemnification and
contribution agreements contained in this Agreement and the representations,
warranties and covenants in this Agreement shall remain in full force and effect
regardless of (a) any termination of this Agreement, (b) any investigation made
by or on behalf of any Underwriter or controlling person thereof, or by or on
behalf of the Company or their respective directors or officers, and (c)
delivery and payment for the Stock under this Agreement; PROVIDED, HOWEVER, that
if this Agreement is terminated prior to the Closing Date, the provisions of
Section 6(a)(xi) and (xii) hereof shall be of no further force or effect.
This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
30
Please sign and return to the Company the enclosed duplicates of this
letter, whereupon this letter will become a binding agreement between the
Company, the Selling Stockholders and the several Underwriters in accordance
with its terms.
Very truly yours,
▇▇▇▇▇▇ MEDICAL GROUP, INC.
By __________________________
Name:
Title:
WARBURG, ▇▇▇▇▇▇ EQUITY PARTNERS, L.P.
By: Warburg, ▇▇▇▇▇▇ & Co., its
General Partner
By __________________________
Name:
Title:
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
By __________________________
Name:
Title:
31
The foregoing Agreement is hereby confirmed
and accepted as of the date first above written.
▇. ▇. ▇▇▇▇▇▇ SECURITIES INC.
CREDIT SUISSE FIRST BOSTON CORPORATION
U.S. BANCORP ▇▇▇▇▇ ▇▇▇▇▇▇▇ INC.
▇▇▇▇▇▇ BROTHERS INC.
▇▇▇▇▇▇ ▇▇▇▇▇▇ PARTNERS LLC
By ▇. ▇. ▇▇▇▇▇▇ Securities Inc.
By __________________________
Name:
Title:
Acting on behalf of the several Underwriters,
including themselves, named in Schedule I hereto.
32
SCHEDULE I
UNDERWRITERS
NUMBER OF
SHARES
TO BE
UNDERWRITERS PURCHASED
------------ ----------
▇. ▇. ▇▇▇▇▇▇ Securities Inc. . . . . . . . . . .
Credit Suisse First Boston Corporation. . . . . .
U.S. Bancorp ▇▇▇▇▇ ▇▇▇▇▇▇▇ Inc. . . . . . . . .
▇▇▇▇▇▇ Brothers Inc. . . . . . . . . . .. . . . .
▇▇▇▇▇▇ ▇▇▇▇▇▇ Partners LLC. . . . . . . . . .. .
--------------------------------------------------- -----------------
Total. . . . . . . . . . . . . . . . . . . 6,000,000
SCHEDULE II
SUBSIDIARIES
▇▇▇▇▇▇ Medical Technology, Inc.
▇▇▇▇▇▇ Medical Technology Canada Ltd.
▇▇▇▇▇▇ Cremascoli Orthotechnique SA
2 Hip Holdings SAS
▇▇▇▇▇▇ Cremascoli Ortho Trading Snc
▇▇▇▇▇▇ Medical Europe ▇▇
▇▇▇▇▇▇▇▇▇▇ Ortho ▇▇
▇▇▇▇▇▇ Cremascoli Ortho SpA
Cremascoli Thema Ortho ▇.▇.
▇▇▇▇▇▇ Cremascoli Ortho Limited
Cremascoli Ortho GmbH
Cremascoli Ortho ▇▇
▇▇▇▇▇▇ Medical Japan, K.K.
SCHEDULE III
EQUITY INVESTMENTS
None
SCHEDULE IV
INTELLECTUAL PROPERTY
COPYRIGHTS OWNED BY OR APPLIED FOR BY ▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC.
U.S. COPYRIGHT REGISTRATIONS
None
U.S. COPYRIGHT APPLICATIONS
None
NON-U.S. COPYRIGHT REGISTRATIONS
None
NON-U.S. COPYRIGHT APPLICATIONS
None
LICENSES
PART I
LICENSE AGREEMENTS WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC. IS THE LICENSOR
COPYRIGHT LICENSES WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY, INC. IS THE LICENSOR
U.S. COPYRIGHTS
None
U.S. COPYRIGHT APPLICATIONS
None
NON-U.S. COPYRIGHTS
None
NON-U.S. COPYRIGHT APPLICATIONS
None
2
PATENT LICENSES WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC. IS THE LICENSOR
U.S. PATENTS
------------------------------ ---------------------------- ---------------------------- ----------------------------
LICENSEE NAME AND ADDRESS DATE OF LICENSE/SUBLICENSE PATENT ISSUE DATE PATENT NO.
------------------------- -------------------------- ----------------- ----------
------------------------------ ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇, Inc. 10/20/94 1/26/88 4,721,104
------------------------------ ---------------------------- ---------------------------- ----------------------------
U.S. PATENT APPLICATIONS
None
NON-U.S. PATENTS
None
NON-U.S. PATENT APPLICATIONS
None
3
TRADEMARK LICENSES WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC. IS THE LICENSOR
U.S. TRADEMARKS
None
U.S. TRADEMARK APPLICATIONS
None
NON-U.S. TRADEMARKS
None
NON-U.S. TRADEMARK APPLICATIONS
None
4
LICENSE AGREEMENTS WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC. IS THE LICENSEE
COPYRIGHT LICENSES WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC. IS THE LICENSEE
U.S. COPYRIGHTS
None
PENDING U.S. COPYRIGHT APPLICATIONS FOR REGISTRATION
None
NON-U.S. COPYRIGHTS
None
NON-U.S. PENDING COPYRIGHT APPLICATIONS FOR REGISTRATION
None
5
PATENT LICENSES WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC. IS THE LICENSEE
U.S. PATENTS
------------------------------- ---------------------------- ---------------------------- ----------------------------
LICENSOR NAME AND ADDRESS DATE OF LICENSE/ SUBLICENSE PATENT ISSUE DATE PATENT NO.
------------------------- --------------------------- ----------------- ----------
------------------------------- ---------------------------- ---------------------------- ----------------------------
Biomet, Inc. 4/3/95 2/26/85 4,501,266
------------------------------- ---------------------------- ---------------------------- ----------------------------
Board of Regents of 3/1/1991 12/28/1993 5,274,565
University of Texas System
(to ▇▇▇▇▇▇ Medical
Technology, Inc. by
assignment from Dow Corning
▇▇▇▇▇▇ Corporation, original
licensee)
------------------------------- ---------------------------- ---------------------------- ----------------------------
Board of Regents of 3/1/1991 9/5/1995 5,448,489
University of Texas System
(to ▇▇▇▇▇▇ Medical
Technology, Inc. by
assignment from Dow Corning
▇▇▇▇▇▇ Corporation, original
licensee)
------------------------------- ---------------------------- ---------------------------- ----------------------------
DePuy, Inc. 5/18/95 1/14/92 5,080,685
------------------------------- ---------------------------- ---------------------------- ----------------------------
DePuy, Inc. 5/18/95 1/26/93 5,181,928
------------------------------- ---------------------------- ---------------------------- ----------------------------
DePuy, Inc. 5/18/95 2/15/94 5,286,260
------------------------------- ---------------------------- ---------------------------- ----------------------------
DePuy, Inc. 5/18/95 5/24/94 5,314,479
------------------------------- ---------------------------- ---------------------------- ----------------------------
DePuy, Inc. 5/18/95 12/6/94 5,370,706
------------------------------- ---------------------------- ---------------------------- ----------------------------
Hospital for Special Surgery 12/15/94 11/10/81 4,298,992
------------------------------- ---------------------------- ---------------------------- ----------------------------
Hospital for Special Surgery 12/15/94 12/30/97 5,702,458
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇, M.D. 7/13/1995 12/6/1994 5,370,662
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇, M.D. 7/13/1995 8/22/1995 5,443,482
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇, M.D. 7/13/1995 10/20/1998 5,824,011
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇, M.D. 7/13/95 10/31/2000 6,139,565
------------------------------- ---------------------------- ---------------------------- ----------------------------
Kinamed, Inc. 6/15/98 10/20/92 5,156,627
------------------------------- ---------------------------- ---------------------------- ----------------------------
Minnesota Mining and 1/22/96 6/23/87 4,674,500
Manufacturing Company ("3M")
------------------------------- ---------------------------- ---------------------------- ----------------------------
PARTEQ Research and 1/17/95 1/12/88 4,718,414
Development Innnovations,
Queen's University (Canada)
------------------------------- ---------------------------- ---------------------------- ----------------------------
6
------------------------------- ---------------------------- ---------------------------- ----------------------------
LICENSOR NAME AND ADDRESS DATE OF LICENSE/ SUBLICENSE PATENT ISSUE DATE PATENT NO.
------------------------- --------------------------- ----------------- ----------
------------------------------- ---------------------------- ---------------------------- ----------------------------
PARTEQ Research and 1/17/95 7/9/91 5,030,237
Development Innnovations,
Queen's University (Canada)
------------------------------- ---------------------------- ---------------------------- ----------------------------
Precision Surgical 3/31/97 11/11/86 4,621,637
Instruments, Inc. and ▇▇▇▇▇
▇▇▇▇▇▇▇▇
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 10/2/84 4,474,046
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 2/4/86 4,567,884
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 5/22/90 4,927,425
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 9/11/90 4,955,885
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 6/4/91 5,020,519
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 12/24/91 5,074,864
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 5/12/92 5,112,332
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 5/26/92 5,116,334
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 5/15/92 5,147,359
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 10/13/92 5,154,718
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 11/10/92 5,161,404
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 4/13/93 5,201,734
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 1/4/94 5,275,600
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 1/25/94 5,281,222
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 5/10/94 5,309,648
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 5/17/94 5,312,405
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 11/15/94 5,364,391
------------------------------- ---------------------------- ---------------------------- ----------------------------
▇▇▇▇▇▇ 10/20/94 8/1/95 5,437,671
------------------------------- ---------------------------- ---------------------------- ----------------------------
3
U.S. PATENT APPLICATIONS
------------------------------- ---------------------------- ---------------------------- ----------------------------
LICENSOR NAME AND ADDRESS DATE OF LICENSE/ SUBLICENSE DATE APPL. FILED APPLICATION NO.
------------------------- --------------------------- ---------------- ---------------
------------------------------- ---------------------------- ---------------------------- ----------------------------
DePuy, Inc. 5/18/95 8/15/86 SN 06/896857
(abandoned)
------------------------------- ---------------------------- ---------------------------- ----------------------------
NON-U.S. PATENTS AND PATENT APPLICATIONS
---------------------------- ----------------------------- ------------------------- ----------------------------------
DATE OF LICENSE/ NON-U.S PATENT NO./ PATENT
COUNTRY LICENSOR NAME AND ADDRESS SUBLICENSE APPLICATION NO.
------- ------------------------- ----------------- ---------------
---------------------------- ----------------------------- ------------------------- ----------------------------------
Australia DePuy, Inc. 5/18/95 SN 31493/93
---------------------------- ----------------------------- ------------------------- ----------------------------------
Australia Minnesota Mining and 1/22/96 589,663
Manufacturing Company ("3M")
---------------------------- ----------------------------- ------------------------- ----------------------------------
Canada DePuy, Inc. 5/18/95 1,302,656
---------------------------- ----------------------------- ------------------------- ----------------------------------
Canada DePuy, Inc. 5/18/95 SN 2,123,806
---------------------------- ----------------------------- ------------------------- ----------------------------------
Canada Minnesota Mining and 1/22/96 1,252,363
Manufacturing Company ("3M")
---------------------------- ----------------------------- ------------------------- ----------------------------------
Canada PARTEQ Research and 1/17/95 1,248,424
Development Innnovations,
Queen's University (Canada)
---------------------------- ----------------------------- ------------------------- ----------------------------------
Canada PARTEQ Research and 1/17/95 1,293,096
Development Innnovations,
Queen's University (Canada)
---------------------------- ----------------------------- ------------------------- ----------------------------------
▇▇▇ ▇▇▇▇▇, Inc. 5/18/95 SN 87111180.3
---------------------------- ----------------------------- ------------------------- ----------------------------------
▇▇▇ ▇▇▇▇▇, Inc. 5/18/95 SN 92925436.5
---------------------------- ----------------------------- ------------------------- ----------------------------------
EPO (Germany, U.K., PARTEQ Research and 1/17/95 0,201,010
France, Switzerland) Development Innnovations,
Queen's University (Canada)
---------------------------- ----------------------------- ------------------------- ----------------------------------
EPO (U.K.) Minnesota Mining and 1/22/96 217,638
Manufacturing Company ("3M")
---------------------------- ----------------------------- ------------------------- ----------------------------------
France DePuy, Inc. 5/18/95 SN 87111180.3
---------------------------- ----------------------------- ------------------------- ----------------------------------
Germany DePuy, Inc. 5/18/95 SN 87111180.3
---------------------------- ----------------------------- ------------------------- ----------------------------------
Germany PARTEQ Research and 1/17/95 P36 81 485.7-08
Development Innnovations,
Queen's University (Canada)
---------------------------- ----------------------------- ------------------------- ----------------------------------
Hong Kong Minnesota Mining and 1/22/96 643/95
Manufacturing Company ("3M")
---------------------------- ----------------------------- ------------------------- ----------------------------------
8
---------------------------- ----------------------------- ------------------------- ----------------------------------
DATE OF LICENSE/ NON-U.S PATENT NO./ PATENT
COUNTRY LICENSOR NAME AND ADDRESS SUBLICENSE APPLICATION NO.
------- ------------------------- ----------------- ---------------
Japan DePuy, Inc. 5/18/95 SN 05-509579
---------------------------- ----------------------------- ------------------------- ----------------------------------
Japan DePuy, Inc. 5/18/95 SN 62-201951
---------------------------- ----------------------------- ------------------------- ----------------------------------
Korea Minnesota Mining and 1/22/96 75572
Manufacturing Company ("3M")
---------------------------- ----------------------------- ------------------------- ----------------------------------
Poland DePuy, Inc. 5/18/95 SN P-303-777
---------------------------- ----------------------------- ------------------------- ----------------------------------
UK DePuy, Inc. 5/18/95 SN 877111180.3
---------------------------- ----------------------------- ------------------------- ----------------------------------
9
TRADEMARK LICENSES WHEREBY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC. IS THE LICENSEE
Worldwide license agreement dated March 3, 1997 between Precision Surgical
Instruments, Inc., as licensor, and ▇▇▇▇▇▇ Medical Technology, Inc., as
licensee, pertaining to the common law ▇▇▇▇ ▇▇▇▇.
10
PATENTS OWNED OR APPLIED FOR BY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC.
U.S. PATENTS
------------------------------------------------------------ --------------------------------------------------------
ISSUE DATE PATENT NUMBERS
------------------------------------------------------------ --------------------------------------------------------
8/28/84 4,467,801
------------------------------------------------------------ --------------------------------------------------------
10/2/84 4,474,177
------------------------------------------------------------ --------------------------------------------------------
3/5/85 4,502,160
------------------------------------------------------------ --------------------------------------------------------
3/5/85 4,502,483
------------------------------------------------------------ --------------------------------------------------------
4/2/85 4,601,289
------------------------------------------------------------ --------------------------------------------------------
2/24/87 4,645,505
------------------------------------------------------------ --------------------------------------------------------
12/22/87 4,714,474
------------------------------------------------------------ --------------------------------------------------------
12/22/87 4,714,477
------------------------------------------------------------ --------------------------------------------------------
1/12/88 4,718,413
------------------------------------------------------------ --------------------------------------------------------
1/26/88 4,721,104
------------------------------------------------------------ --------------------------------------------------------
2/2/88 4,722,330
------------------------------------------------------------ --------------------------------------------------------
3/15/88 4,731,086
------------------------------------------------------------ --------------------------------------------------------
7/26/88 4,759,767
------------------------------------------------------------ --------------------------------------------------------
7/18/89 4,849,193
------------------------------------------------------------ --------------------------------------------------------
7/25/89 4,851,008
------------------------------------------------------------ --------------------------------------------------------
4/10/90 4,915,936
------------------------------------------------------------ --------------------------------------------------------
6/19/90 4,935,023
------------------------------------------------------------ --------------------------------------------------------
12/22/88 4,936,854
------------------------------------------------------------ --------------------------------------------------------
6/26/90 4,936,860
------------------------------------------------------------ --------------------------------------------------------
9/11/90 4,955,915
------------------------------------------------------------ --------------------------------------------------------
11/13/90 4,969,908
------------------------------------------------------------ --------------------------------------------------------
3/26/91 5,002,545
------------------------------------------------------------ --------------------------------------------------------
3/26/91 5,002,575
------------------------------------------------------------ --------------------------------------------------------
3/26,91 5,002,581
------------------------------------------------------------ --------------------------------------------------------
5/28/91 5,019,104
------------------------------------------------------------ --------------------------------------------------------
7/30/91 5,035,699
------------------------------------------------------------ --------------------------------------------------------
10/22/91 5,059,196
------------------------------------------------------------ --------------------------------------------------------
3/24/92 5,098,436
------------------------------------------------------------ --------------------------------------------------------
3/31/92 5,100,409
------------------------------------------------------------ --------------------------------------------------------
8/4/92 5,135,529
------------------------------------------------------------ --------------------------------------------------------
9/15/92 5,147,403
------------------------------------------------------------ --------------------------------------------------------
1/5/93 5,176,684
------------------------------------------------------------ --------------------------------------------------------
4/13/93 5,201,882
------------------------------------------------------------ --------------------------------------------------------
1/4/94 5,275,603
------------------------------------------------------------ --------------------------------------------------------
12/27/91 5,282,805
------------------------------------------------------------ --------------------------------------------------------
5/24/94 5,314,481
------------------------------------------------------------ --------------------------------------------------------
7/5/94 5,326,364
------------------------------------------------------------ --------------------------------------------------------
11
------------------------------------------------------------ --------------------------------------------------------
ISSUE DATE PATENT NUMBERS
------------------------------------------------------------ --------------------------------------------------------
7/5/94 5,326,366
------------------------------------------------------------ --------------------------------------------------------
8/9/94 5,336,238
------------------------------------------------------------ --------------------------------------------------------
8/30/94 5,342,363
------------------------------------------------------------ --------------------------------------------------------
8/30/94 5,342,367
------------------------------------------------------------ --------------------------------------------------------
10/25/94 5,358,524
------------------------------------------------------------ --------------------------------------------------------
11/15/94 5,364,401
------------------------------------------------------------ --------------------------------------------------------
12/6/94 5,370,699
------------------------------------------------------------ --------------------------------------------------------
1/10/95 5,380,332
------------------------------------------------------------ --------------------------------------------------------
2/7/95 5,387,239
------------------------------------------------------------ --------------------------------------------------------
4/11/95 5,405,395
------------------------------------------------------------ --------------------------------------------------------
10/5/93 5,405,400
------------------------------------------------------------ --------------------------------------------------------
10/5/93 5,405,401
------------------------------------------------------------ --------------------------------------------------------
5/16/95 5,415,662
------------------------------------------------------------ --------------------------------------------------------
6/20/95 5,425,769
------------------------------------------------------------ --------------------------------------------------------
7/11/95 5,431,656
------------------------------------------------------------ --------------------------------------------------------
11/14/95 5,466,261
------------------------------------------------------------ --------------------------------------------------------
1/16/96 5,484,443
------------------------------------------------------------ --------------------------------------------------------
4/16/96 5,507,774
------------------------------------------------------------ --------------------------------------------------------
4/23/96 5,509,935
------------------------------------------------------------ --------------------------------------------------------
5/7/96 5,514,136
------------------------------------------------------------ --------------------------------------------------------
5/28/96 5,520,692
------------------------------------------------------------ --------------------------------------------------------
8/27/96 5,549,687
------------------------------------------------------------ --------------------------------------------------------
10/29/96 5,569,259
------------------------------------------------------------ --------------------------------------------------------
11/5/96 5,571,184
------------------------------------------------------------ --------------------------------------------------------
12
------------------------------------------------------------ --------------------------------------------------------
ISSUE DATE PATENT NUMBERS
------------------------------------------------------------ --------------------------------------------------------
------------------------------------------------------------ --------------------------------------------------------
3/25/97 5,614,206
------------------------------------------------------------ --------------------------------------------------------
4/8/97 5,618,308
------------------------------------------------------------ --------------------------------------------------------
5/6/97 5,626,596
------------------------------------------------------------ --------------------------------------------------------
5/13/97 5,628,747
------------------------------------------------------------ --------------------------------------------------------
9/2/97 5,662,656
------------------------------------------------------------ --------------------------------------------------------
11/4/97 5,683,392
------------------------------------------------------------ --------------------------------------------------------
1/20/98 5,709,689
------------------------------------------------------------ --------------------------------------------------------
4/28/98 5,743,918
------------------------------------------------------------ --------------------------------------------------------
5/5/98 5,746,771
------------------------------------------------------------ --------------------------------------------------------
4/26/98 5,756,127
------------------------------------------------------------ --------------------------------------------------------
6/30/98 5,772,664
------------------------------------------------------------ --------------------------------------------------------
7/14/98 5,779,709
------------------------------------------------------------ --------------------------------------------------------
9/15/98 5,807,567
------------------------------------------------------------ --------------------------------------------------------
4/27/99 5,897,555
------------------------------------------------------------ --------------------------------------------------------
5/4/99 5,899,920
------------------------------------------------------------ --------------------------------------------------------
6/22/99 5,913,858
------------------------------------------------------------ --------------------------------------------------------
6/29/99 5,916,216
------------------------------------------------------------ --------------------------------------------------------
9/21/99 5,954,771
------------------------------------------------------------ --------------------------------------------------------
10/12/99 5,964,808
------------------------------------------------------------ --------------------------------------------------------
11/26/97 6,013,103
------------------------------------------------------------ --------------------------------------------------------
9/2/98 6,030,636
------------------------------------------------------------ --------------------------------------------------------
8/3/98 6,059,830
------------------------------------------------------------ --------------------------------------------------------
8/7/01 6,270,529
------------------------------------------------------------ --------------------------------------------------------
9/4/01 6,283,721
------------------------------------------------------------ --------------------------------------------------------
1/17/95 D354,563
------------------------------------------------------------ --------------------------------------------------------
13
U.S. PATENT APPLICATIONS
------------------------------------------------------------ --------------------------------------------------
FILING DATE APPLICATION NO.
------------------------------------------------------------ --------------------------------------------------
2/2/1999 09/241,703
------------------------------------------------------------ --------------------------------------------------
6/7/1999 09/327,761
------------------------------------------------------------ --------------------------------------------------
4/19/01 09/838,698
----------------------------------------------------------- --------------------------------------------------
5/15/01 09/854,958
------------------------------------------------------------ --------------------------------------------------
11/28/01 60/333,487
------------------------------------------------------------ --------------------------------------------------
11/28/01 60/333,488
------------------------------------------------------------ --------------------------------------------------
14
NON-U.S. PATENTS
---------------------------------------- -------------------------------------- --------------------------------------
COUNTRY ISSUE DATE PATENT NO.
------- ---------- ----------
---------------------------------------- -------------------------------------- --------------------------------------
Australia 3/31/94 64785
---------------------------------------- -------------------------------------- --------------------------------------
Australia 5/12/91 617966
---------------------------------------- -------------------------------------- --------------------------------------
Australia 8/20/92 627269
---------------------------------------- -------------------------------------- --------------------------------------
Australia 12/17/92 632079
---------------------------------------- -------------------------------------- --------------------------------------
Australia 3/31/94 647884
---------------------------------------- -------------------------------------- --------------------------------------
Belgium 3/16/94 339050
---------------------------------------- -------------------------------------- --------------------------------------
Brazil 2/18/97 9305787
---------------------------------------- -------------------------------------- --------------------------------------
Britain 2/27/91 0256740
---------------------------------------- -------------------------------------- --------------------------------------
Britain 11/24/93 367808
---------------------------------------- -------------------------------------- --------------------------------------
Britain 3/2/94 438918
---------------------------------------- -------------------------------------- --------------------------------------
Britain 10/11/95 441059
---------------------------------------- -------------------------------------- --------------------------------------
Britain 4/20/94 469040
---------------------------------------- -------------------------------------- --------------------------------------
Britain 4/20/83 2043452
---------------------------------------- -------------------------------------- --------------------------------------
Britian 6/18/97 0556998
---------------------------------------- -------------------------------------- --------------------------------------
Canada 12/15/81 1114103
---------------------------------------- -------------------------------------- --------------------------------------
Canada 2/16/82 1118152
---------------------------------------- -------------------------------------- --------------------------------------
Canada 10/12/82 1133201
---------------------------------------- -------------------------------------- --------------------------------------
Canada 8/6/85 1191301
---------------------------------------- -------------------------------------- --------------------------------------
Canada 9/16/86 1211330
---------------------------------------- -------------------------------------- --------------------------------------
Canada 9/16/86 1211331
---------------------------------------- -------------------------------------- --------------------------------------
Canada 12/30/86 1215801
---------------------------------------- -------------------------------------- --------------------------------------
Canada 3/15/88 1234031
---------------------------------------- -------------------------------------- --------------------------------------
Canada 1/10/89 1248301
---------------------------------------- -------------------------------------- --------------------------------------
Canada 5/30/89 1254811
---------------------------------------- -------------------------------------- --------------------------------------
Canada 2/19/91 1280327
---------------------------------------- -------------------------------------- --------------------------------------
Canada 3/24/92 1297656
---------------------------------------- -------------------------------------- --------------------------------------
Canada 8/25/92 1306649
---------------------------------------- -------------------------------------- --------------------------------------
Canada 9/8/92 2062222
---------------------------------------- -------------------------------------- --------------------------------------
Canada 9/8/92 2062234
---------------------------------------- -------------------------------------- --------------------------------------
Canada 7/4/93 2086574
---------------------------------------- -------------------------------------- --------------------------------------
EPC 9/16/87 0120346
---------------------------------------- -------------------------------------- --------------------------------------
EPC 7/29/87 0121142
---------------------------------------- -------------------------------------- --------------------------------------
EPC 7/29/87 0121780
---------------------------------------- -------------------------------------- --------------------------------------
EPC 5/18/88 0144667
---------------------------------------- -------------------------------------- --------------------------------------
EPC 5/23/90 0198586
---------------------------------------- -------------------------------------- --------------------------------------
EPC 9/22/93 0243109
---------------------------------------- -------------------------------------- --------------------------------------
EPC 2/27/91 0256740
---------------------------------------- -------------------------------------- --------------------------------------
EPC 6/17/92 0288229
---------------------------------------- -------------------------------------- --------------------------------------
EPC 5/26/93 0304219
---------------------------------------- -------------------------------------- --------------------------------------
EPC 8/3/94 0378294
---------------------------------------- -------------------------------------- --------------------------------------
EPC 7/17/96 0384562
---------------------------------------- -------------------------------------- --------------------------------------
EPC 7/26/95 0428303
---------------------------------------- -------------------------------------- --------------------------------------
15
---------------------------------------- -------------------------------------- --------------------------------------
COUNTRY ISSUE DATE PATENT NO.
------- ---------- ----------
EPC 3/2/94 438918
---------------------------------------- -------------------------------------- --------------------------------------
EPC 10/11/95 441059
---------------------------------------- -------------------------------------- --------------------------------------
EPC 10/11/95 441059
---------------------------------------- -------------------------------------- --------------------------------------
EPC 11/2/95 502737
---------------------------------------- -------------------------------------- --------------------------------------
EPC 11/2/95 502738
---------------------------------------- -------------------------------------- --------------------------------------
EPC 7/7/93 550284
---------------------------------------- -------------------------------------- --------------------------------------
EPC 8/25/93 556997
---------------------------------------- -------------------------------------- --------------------------------------
EPC 6/18/97 0556998
---------------------------------------- -------------------------------------- --------------------------------------
EPC 12/14/94 627903
---------------------------------------- -------------------------------------- --------------------------------------
EPO 3/16/94 339050
---------------------------------------- -------------------------------------- --------------------------------------
EPO 11/24/93 367808
---------------------------------------- -------------------------------------- --------------------------------------
EPO 4/20/94 469040
---------------------------------------- -------------------------------------- --------------------------------------
France 9/16/87 0120346
---------------------------------------- -------------------------------------- --------------------------------------
France 7/29/87 0121142
---------------------------------------- -------------------------------------- --------------------------------------
France 2/27/91 0256740
---------------------------------------- -------------------------------------- --------------------------------------
France 3/16/94 339050
---------------------------------------- -------------------------------------- --------------------------------------
France 11/24/93 367808
---------------------------------------- -------------------------------------- --------------------------------------
France 8/3/94 0378294
---------------------------------------- -------------------------------------- --------------------------------------
France 7/17/96 0384562
---------------------------------------- -------------------------------------- --------------------------------------
France 7/26/95 0428303
---------------------------------------- -------------------------------------- --------------------------------------
France 3/2/94 438918
---------------------------------------- -------------------------------------- --------------------------------------
France 10/11/95 441059
---------------------------------------- -------------------------------------- --------------------------------------
France 11/2/95 502737
---------------------------------------- -------------------------------------- --------------------------------------
France 11/2/95 502738
---------------------------------------- -------------------------------------- --------------------------------------
France 6/18/97 0556998
---------------------------------------- -------------------------------------- --------------------------------------
France 4/30/84 2450104
---------------------------------------- -------------------------------------- --------------------------------------
Germany 11/24/93 P689109415
---------------------------------------- -------------------------------------- --------------------------------------
Germany 9/16/87 0120346
---------------------------------------- -------------------------------------- --------------------------------------
Germany 7/29/87 0121142
---------------------------------------- -------------------------------------- --------------------------------------
Germany 2/27/91 0256740
---------------------------------------- -------------------------------------- --------------------------------------
Germany 3/16/94 339050
---------------------------------------- -------------------------------------- --------------------------------------
Germany 3/2/94 69007069
---------------------------------------- -------------------------------------- --------------------------------------
Germany 1/19/95 69011137
---------------------------------------- -------------------------------------- --------------------------------------
Germany 12/7/95 69021171
---------------------------------------- -------------------------------------- --------------------------------------
Germany 5/30/96 69022973
---------------------------------------- -------------------------------------- --------------------------------------
Germany 8/22/96 69027796
---------------------------------------- -------------------------------------- --------------------------------------
Germany 11/12/95 69205708.0
---------------------------------------- -------------------------------------- --------------------------------------
Germany 5/23/96 69205709
---------------------------------------- -------------------------------------- --------------------------------------
Germany 1/8/98 69311594
---------------------------------------- -------------------------------------- --------------------------------------
Japan 4/25/97 94727/88
---------------------------------------- -------------------------------------- --------------------------------------
Japan 10/17/95 1977134
---------------------------------------- -------------------------------------- --------------------------------------
Japan 11/16/96 2106693
---------------------------------------- -------------------------------------- --------------------------------------
Japan 6/14/96 2529256
---------------------------------------- -------------------------------------- --------------------------------------
Japan 12/19/96 2560101
---------------------------------------- -------------------------------------- --------------------------------------
Japan 9/19/96 2563700
---------------------------------------- -------------------------------------- --------------------------------------
Japan 12/19/96 2591893
---------------------------------------- -------------------------------------- --------------------------------------
16
---------------------------------------- -------------------------------------- --------------------------------------
COUNTRY ISSUE DATE PATENT NO.
------- ---------- ----------
Japan 6/27/97 2665489
---------------------------------------- -------------------------------------- --------------------------------------
Japan 7/18/95 7178114
---------------------------------------- -------------------------------------- --------------------------------------
Japan 7/6/95 7506038
---------------------------------------- -------------------------------------- --------------------------------------
Mexico 2/14/94 165037
---------------------------------------- -------------------------------------- --------------------------------------
Mexico 2/14/94 173268
---------------------------------------- -------------------------------------- --------------------------------------
Spain 10/9/89 2010953
---------------------------------------- -------------------------------------- --------------------------------------
Spain 5/1/94 2049936
---------------------------------------- -------------------------------------- --------------------------------------
Spain 9/16/95 2074546
---------------------------------------- -------------------------------------- --------------------------------------
Spain 12/1/95 2077654
---------------------------------------- -------------------------------------- --------------------------------------
Sweden 11/24/93 367808
---------------------------------------- -------------------------------------- --------------------------------------
Switzerland 9/16/87 0120346
---------------------------------------- -------------------------------------- --------------------------------------
Switzerland 7/29/87 0121142
---------------------------------------- -------------------------------------- --------------------------------------
Switzerland 3/2/94 438918
---------------------------------------- -------------------------------------- --------------------------------------
17
NON-U.S. PATENT APPLICATIONS
---------------------------------------- -------------------------------------- --------------------------------------
COUNTRY FILING DATE PATENT APPLICATION NO.
------- ----------- ----------------------
---------------------------------------- -------------------------------------- --------------------------------------
Argentina 2/9/94 327377
---------------------------------------- -------------------------------------- --------------------------------------
Australia 10/7/93 9453541
---------------------------------------- -------------------------------------- --------------------------------------
Australia 1/14/94 9453801
---------------------------------------- -------------------------------------- --------------------------------------
Australia 11/15/93 9456061
---------------------------------------- -------------------------------------- --------------------------------------
Australia 11/18/93 9456127
---------------------------------------- -------------------------------------- --------------------------------------
Australia 2/24/94 9456387
---------------------------------------- -------------------------------------- --------------------------------------
Australia 2/24/94 9456388
---------------------------------------- -------------------------------------- --------------------------------------
Australia 3/4/94 9457617
---------------------------------------- -------------------------------------- --------------------------------------
Australia 12/13/93 9458999
---------------------------------------- -------------------------------------- --------------------------------------
Australia 3/28/94 9459115
---------------------------------------- -------------------------------------- --------------------------------------
Australia 1/27/94 9461679
---------------------------------------- -------------------------------------- --------------------------------------
Australia 7/19/94 9473637
---------------------------------------- -------------------------------------- --------------------------------------
Australia 10/31/95 9641383
---------------------------------------- -------------------------------------- --------------------------------------
Australia 3/4/96 9651355
---------------------------------------- -------------------------------------- --------------------------------------
Australia 5/6/96 9656759
---------------------------------------- -------------------------------------- --------------------------------------
Australia 9/30/96 9673819
---------------------------------------- -------------------------------------- --------------------------------------
Belgium 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
Brazil 10/7/93 9305697
---------------------------------------- -------------------------------------- --------------------------------------
Brazil 2/11/94 9400578
---------------------------------------- -------------------------------------- --------------------------------------
Britain 11/25/96 96 942 104.9
---------------------------------------- -------------------------------------- --------------------------------------
Britain 5/6/96 96 913 942.7
---------------------------------------- -------------------------------------- --------------------------------------
Britain 10/7/93 93923803.6
---------------------------------------- -------------------------------------- --------------------------------------
Britain 2/16/94 94400342.5
---------------------------------------- -------------------------------------- --------------------------------------
Britain 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
Britain 2/15/96 96906406.2
---------------------------------------- -------------------------------------- --------------------------------------
Britain 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
Britain 9/30/96 96936082.5-1265
---------------------------------------- -------------------------------------- --------------------------------------
Britain 1/3/97 97902825.5
---------------------------------------- -------------------------------------- --------------------------------------
Canada 10/16/89 2,000,773
---------------------------------------- -------------------------------------- --------------------------------------
Canada 7/9/90 2005847
---------------------------------------- -------------------------------------- --------------------------------------
Canada 7/30/90 2007359
---------------------------------------- -------------------------------------- --------------------------------------
Canada 10/24/90 2028449
---------------------------------------- -------------------------------------- --------------------------------------
Canada 7/10/91 2033547
---------------------------------------- -------------------------------------- --------------------------------------
Canada 7/17/91 2033647
---------------------------------------- -------------------------------------- --------------------------------------
Canada 2/8/93 2089042
---------------------------------------- -------------------------------------- --------------------------------------
Canada 2/18/93 2089824
---------------------------------------- -------------------------------------- --------------------------------------
Canada 2/14/94 2115633
---------------------------------------- -------------------------------------- --------------------------------------
Canada 2/23/94 2116307
---------------------------------------- -------------------------------------- --------------------------------------
Canada 4/15/94 2121412
---------------------------------------- -------------------------------------- --------------------------------------
Canada 6/3/94 2125115
---------------------------------------- -------------------------------------- --------------------------------------
Canada 6/15/94 2125915
---------------------------------------- -------------------------------------- --------------------------------------
Canada 11/18/93 2125984
---------------------------------------- -------------------------------------- --------------------------------------
18
---------------------------------------- -------------------------------------- --------------------------------------
COUNTRY FILING DATE PATENT APPLICATION NO.
------- ----------- ----------------------
Canada 12/13/93 2147611
---------------------------------------- -------------------------------------- --------------------------------------
Canada 3/4/96 2214788
---------------------------------------- -------------------------------------- --------------------------------------
EPC 6/12/97 97/931158.6
---------------------------------------- -------------------------------------- --------------------------------------
EPC 11/25/96 96 942 104.9
---------------------------------------- -------------------------------------- --------------------------------------
EPC 5/6/96 96 913 942.7
---------------------------------------- -------------------------------------- --------------------------------------
EPC 11/1/96 862395
---------------------------------------- -------------------------------------- --------------------------------------
EPC 10/7/93 93923803.6
---------------------------------------- -------------------------------------- --------------------------------------
EPC 2/21/94 94102574
---------------------------------------- -------------------------------------- --------------------------------------
EPC 2/23/94 94102689
---------------------------------------- -------------------------------------- --------------------------------------
EPC 2/28/94 94102989
---------------------------------------- -------------------------------------- --------------------------------------
EPC 2/16/94 94400342.5
---------------------------------------- -------------------------------------- --------------------------------------
EPC 7/19/94 94922577
---------------------------------------- -------------------------------------- --------------------------------------
EPC 2/15/96 96906406.2
---------------------------------------- -------------------------------------- --------------------------------------
EPC 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
EPC 1/3/97 97902825.5
---------------------------------------- -------------------------------------- --------------------------------------
EPO 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
EPO 9/30/96 96936082.5-1265
---------------------------------------- -------------------------------------- --------------------------------------
France 11/25/96 96 942 104.9
---------------------------------------- -------------------------------------- --------------------------------------
France 5/6/96 96 913 942.7
---------------------------------------- -------------------------------------- --------------------------------------
France 10/7/93 93923803.6
---------------------------------------- -------------------------------------- --------------------------------------
France 2/16/94 94400342.5
---------------------------------------- -------------------------------------- --------------------------------------
France 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
France 2/15/96 96906406.2
---------------------------------------- -------------------------------------- --------------------------------------
France 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
France 9/30/96 96936082.5-1265
---------------------------------------- -------------------------------------- --------------------------------------
France 1/3/97 97902825.5
---------------------------------------- -------------------------------------- --------------------------------------
Germany 11/25/96 96 942 104.9
---------------------------------------- -------------------------------------- --------------------------------------
Germany 5/6/96 96 913 942.7
---------------------------------------- -------------------------------------- --------------------------------------
Germany 10/7/93 69324233
---------------------------------------- -------------------------------------- --------------------------------------
Germany 2/16/94 94400342.5
---------------------------------------- -------------------------------------- --------------------------------------
Germany 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
Germany 2/15/96 96906406.2
---------------------------------------- -------------------------------------- --------------------------------------
Germany 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
Germany 9/30/96 96936082.5-1265
---------------------------------------- -------------------------------------- --------------------------------------
Germany 1/3/97 97902825.5
---------------------------------------- -------------------------------------- --------------------------------------
Israel 3/4/96 117363
---------------------------------------- -------------------------------------- --------------------------------------
Italy 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
Italy 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
Japan 11/25/96 9-522070(522070/97)
---------------------------------------- -------------------------------------- --------------------------------------
Japan 3/4/96 09-526989
---------------------------------------- -------------------------------------- --------------------------------------
Japan 1/3/97 9-525272
---------------------------------------- -------------------------------------- --------------------------------------
Japan 6/12/97 10-506008
---------------------------------------- -------------------------------------- --------------------------------------
Japan 7/19/94 7-505219
---------------------------------------- -------------------------------------- --------------------------------------
Japan 4/14/94 6-75876
---------------------------------------- -------------------------------------- --------------------------------------
19
---------------------------------------- -------------------------------------- --------------------------------------
COUNTRY FILING DATE PATENT APPLICATION NO.
------- ----------- ----------------------
Japan 2/5/90 90/506,406
---------------------------------------- -------------------------------------- --------------------------------------
Japan 1/8/91 515/91
---------------------------------------- -------------------------------------- --------------------------------------
Japan 2/16/94 40627/1994
---------------------------------------- -------------------------------------- --------------------------------------
Japan 3/3/92 45168/92
---------------------------------------- -------------------------------------- --------------------------------------
Japan 12/28/92 347673/92
---------------------------------------- -------------------------------------- --------------------------------------
Japan 12/13/93 514456/94
---------------------------------------- -------------------------------------- --------------------------------------
Japan 1/8/91 91515
---------------------------------------- -------------------------------------- --------------------------------------
Japan 5/6/96 9539862/97
---------------------------------------- -------------------------------------- --------------------------------------
Japan 1/9/90 901162
---------------------------------------- -------------------------------------- --------------------------------------
Japan 9/21/90 2239861
---------------------------------------- -------------------------------------- --------------------------------------
Japan 11/18/92 4329949
---------------------------------------- -------------------------------------- --------------------------------------
Japan 2/19/93 9330210
---------------------------------------- -------------------------------------- --------------------------------------
Japan 3/7/94 9459851
---------------------------------------- -------------------------------------- --------------------------------------
Japan 3/7/94 9459852
---------------------------------------- -------------------------------------- --------------------------------------
Japan 4/14/94 9475876
---------------------------------------- -------------------------------------- --------------------------------------
Japan 12/28/92 92347673
---------------------------------------- -------------------------------------- --------------------------------------
Japan 10/7/93 93510134
---------------------------------------- -------------------------------------- --------------------------------------
Korea 3/4/96 97706205
---------------------------------------- -------------------------------------- --------------------------------------
Mexico 3/4/96 9756809
---------------------------------------- -------------------------------------- --------------------------------------
Netherlands 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
Netherlands 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
PCT 2/5/90 US90/00597
---------------------------------------- -------------------------------------- --------------------------------------
PCT 10/7/93 US93/09607
---------------------------------------- -------------------------------------- --------------------------------------
PCT 11/15/93 US93/11028
---------------------------------------- -------------------------------------- --------------------------------------
PCT 12/13/93 US93/12086
---------------------------------------- -------------------------------------- --------------------------------------
PCT 1/27/94 US94/01074
---------------------------------------- -------------------------------------- --------------------------------------
PCT 7/19/94 US94/07992
---------------------------------------- -------------------------------------- --------------------------------------
PCT 10/31/95 US95/14035
---------------------------------------- -------------------------------------- --------------------------------------
PCT 2/15/96 US96/01934
---------------------------------------- -------------------------------------- --------------------------------------
PCT 3/4/96 US96/02930
---------------------------------------- -------------------------------------- --------------------------------------
PCT 5/6/96 US96/06353
---------------------------------------- -------------------------------------- --------------------------------------
PCT 9/30/96 US96/15684
---------------------------------------- -------------------------------------- --------------------------------------
PCT 11/1/96 US96/17371
---------------------------------------- -------------------------------------- --------------------------------------
PCT 11/25/96 US96/19099
---------------------------------------- -------------------------------------- --------------------------------------
PCT 11/25/96 US96/19101
---------------------------------------- -------------------------------------- --------------------------------------
PCT 1/3/97 US97/00025
---------------------------------------- -------------------------------------- --------------------------------------
PCT 5/9/97 US97/08145
---------------------------------------- -------------------------------------- --------------------------------------
PCT 6/12/97 US97/10265
---------------------------------------- -------------------------------------- --------------------------------------
PCT 1/22/98 US98/01226
---------------------------------------- -------------------------------------- --------------------------------------
PCT 1/22/98 US98/01229
---------------------------------------- -------------------------------------- --------------------------------------
PCT 4/2/98 US98/06575
---------------------------------------- -------------------------------------- --------------------------------------
Spain 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
Spain 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
Sweden 3/4/96 96907921.9
---------------------------------------- -------------------------------------- --------------------------------------
20
---------------------------------------- -------------------------------------- --------------------------------------
COUNTRY FILING DATE PATENT APPLICATION NO.
------- ----------- ----------------------
Switzerland 11/25/96 96 942 104.9
---------------------------------------- -------------------------------------- --------------------------------------
Switzerland 12/13/93 94905373.0
---------------------------------------- -------------------------------------- --------------------------------------
Switzerland 2/15/96 96906406.2
---------------------------------------- -------------------------------------- --------------------------------------
Switzerland 9/30/96 96936082.5-1265
---------------------------------------- -------------------------------------- --------------------------------------
Switzerland 1/3/97 97902825.5
---------------------------------------- -------------------------------------- --------------------------------------
Thailand 3/4/96 030301
---------------------------------------- -------------------------------------- --------------------------------------
TRADEMARKS/TRADE NAMES OWNED OR APPLIED FOR BY
▇▇▇▇▇▇ MEDICAL TECHNOLOGY INC.
U.S. TRADEMARK REGISTRATIONS
------------------------------------------ ---------------------------------- --------------------------------------
▇▇▇▇ REG. DATE REG. NO.
---- --------- --------
------------------------------------------ ---------------------------------- --------------------------------------
ORTHOLOC 11/18/86 1,417,357
------------------------------------------ ---------------------------------- --------------------------------------
EVOLUTION 6/19/90 1,602,096
------------------------------------------ ---------------------------------- --------------------------------------
INFINITY 6/19/90 1,602,097
------------------------------------------ ---------------------------------- --------------------------------------
AXIOM 4/5/94 1,829,316
------------------------------------------ ---------------------------------- --------------------------------------
ADVANTIM 9/20/94 1,855,141
------------------------------------------ ---------------------------------- --------------------------------------
EXSRP 11/29/94 1,864,610
------------------------------------------ ---------------------------------- --------------------------------------
NEXUS 11/29/94 1,864,611
------------------------------------------ ---------------------------------- --------------------------------------
W logo 12/13/94 1,867,572
------------------------------------------ ---------------------------------- --------------------------------------
▇▇▇▇▇▇ MEDICAL TECHNOLOGY 1/10/95 1,872,373
------------------------------------------ ---------------------------------- --------------------------------------
SURECLEAN 2/14/95 1,879,172
------------------------------------------ ---------------------------------- --------------------------------------
BRIDGE 3/7/95 1,882,897
------------------------------------------ ---------------------------------- --------------------------------------
RESOLUTION 3/21/95 1,885,569
------------------------------------------ ---------------------------------- --------------------------------------
SRP 5/23/95 1,895,572
------------------------------------------ ---------------------------------- --------------------------------------
FAST TRACK 6/13/95 1,899,746
------------------------------------------ ---------------------------------- --------------------------------------
ORTHOMET 7/25/95 1,907,231
------------------------------------------ ---------------------------------- --------------------------------------
PERFECTA 8/15/95 1,911,237
------------------------------------------ ---------------------------------- --------------------------------------
▇▇▇▇▇▇ EXPRESS & Design 9/26/95 1,922,487
------------------------------------------ ---------------------------------- --------------------------------------
STRATAGEM 11/28/95 1,938,477
------------------------------------------ ---------------------------------- --------------------------------------
S.O.S 1/9/96 1,947,340
------------------------------------------ ---------------------------------- --------------------------------------
FLEXSPAN 2/27/96 1,959,195
------------------------------------------ ---------------------------------- --------------------------------------
DURAMER 4/9/96 1,966,468
------------------------------------------ ---------------------------------- --------------------------------------
INTERSEAL 7/2/96 1,984,297
------------------------------------------ ---------------------------------- --------------------------------------
WRIGHTLOCK 7/9/96 1,986,341
------------------------------------------ ---------------------------------- --------------------------------------
PERI-LOK 7/30/96 1,990,015
------------------------------------------ ---------------------------------- --------------------------------------
OM (stylized) 12/31/96 2,027,495
------------------------------------------ ---------------------------------- --------------------------------------
ORTHOMET & design 12/31/96 2,027,496
------------------------------------------ ---------------------------------- --------------------------------------
OSTEOSET 1/14/97 2,031,137
------------------------------------------ ---------------------------------- --------------------------------------
ANCHORLOK 1/21/97 2,033,110
------------------------------------------ ---------------------------------- --------------------------------------
ADVANCE 1/21/97 2,033,114
------------------------------------------ ---------------------------------- --------------------------------------
ORTHOSET 4/15/97 2,053,413
------------------------------------------ ---------------------------------- --------------------------------------
21
------------------------------------------ ---------------------------------- --------------------------------------
▇▇▇▇ REG. DATE REG. NO.
---- --------- --------
------------------------------------------ ---------------------------------- --------------------------------------
LEADING EDGE 6/17/97 2,071,700
------------------------------------------ ---------------------------------- --------------------------------------
OCS 7/15/97 2,080,032
------------------------------------------ ---------------------------------- --------------------------------------
CONSERVE 9/9/97 2,096,096
------------------------------------------ ---------------------------------- --------------------------------------
QUESTUS 10/7/97 2,102,930
------------------------------------------ ---------------------------------- --------------------------------------
CON-NEX 7/27/99 2,265,674
------------------------------------------ ---------------------------------- --------------------------------------
TRANSCEND 10/26/99 2,289,200
------------------------------------------ ---------------------------------- --------------------------------------
ORTHOSPHERE 11/16/99 2,293,418
------------------------------------------ ---------------------------------- --------------------------------------
EXTEND 11/30/99 2,296,285
------------------------------------------ ---------------------------------- --------------------------------------
22
U.S. TRADEMARK APPLICATIONS
----------------------------------------- -------------------------------------- -----------------------------------
▇▇▇▇ FILING DATE APPLICATION NO.
---- ----------- ---------------
----------------------------------------- -------------------------------------- -----------------------------------
MILLENNIUM 2/23/98 75-438,949
----------------------------------------- -------------------------------------- -----------------------------------
PER-Q-GRAFT 4/12/99 75-679,250
----------------------------------------- -------------------------------------- -----------------------------------
ALLOMATRIX 4/12/99 75-679,251
----------------------------------------- -------------------------------------- -----------------------------------
INDUCE 8/27/99 75-786,864
----------------------------------------- -------------------------------------- -----------------------------------
EVOLVE 9/20/99 75-803,504
----------------------------------------- -------------------------------------- -----------------------------------
GUARDIAN 11/29/99 75-858,909
----------------------------------------- -------------------------------------- -----------------------------------
LOCON-T 11/29/99 75-858,910
----------------------------------------- -------------------------------------- -----------------------------------
STA-SIL 9/5/00 76-121,077
----------------------------------------- -------------------------------------- -----------------------------------
LINEAGE 9/27/00 76-135,623
----------------------------------------- -------------------------------------- -----------------------------------
OLYMPIA 1/9/01 76-191,390
----------------------------------------- -------------------------------------- -----------------------------------
▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇
▇▇▇▇
▇▇▇▇▇ TRADEMARK APPLICATIONS
None
NON-U.S. TRADEMARK REGISTRATIONS
------------------------------- ---------------------------- ---------------------------- ----------------------------
COUNTRY ▇▇▇▇ REG. DATE REG. NO.
------- ---- --------- --------
------------------------------- ---------------------------- ---------------------------- ----------------------------
Benelux ▇▇▇▇▇▇▇▇▇ 2/18/92 509386
------------------------------- ---------------------------- ---------------------------- ----------------------------
Benelux ADVANTIM 11/10/92 525126
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada ORTHOLOC 11/13/92 TMA405,006
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada OSTEOSET 10/31/00 TMA536,283
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada NEXUS 9/15/95 TMA447,476
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada ADVANTIM 2/9/96 TMA453,663
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada S.O.S. 4/26/96 TMA456,725
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada ▇▇▇▇▇▇▇▇▇ 12/9/94 TMA436,749
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada ADVANCE 2/10/00 TMA522,890
------------------------------- ---------------------------- ---------------------------- ----------------------------
CTM ADVANCE 4/16/99 666362
------------------------------- ---------------------------- ---------------------------- ----------------------------
France ▇▇▇▇▇▇▇▇▇ 2/26/92 92407407
------------------------------- ---------------------------- ---------------------------- ----------------------------
France ADVANTIM 11/25/92 92443215
------------------------------- ---------------------------- ---------------------------- ----------------------------
Germany ORTHOLOC 4/4/91 1174588
------------------------------- ---------------------------- ---------------------------- ----------------------------
Germany ▇▇▇▇▇▇▇▇▇ 12/2/92 2025652
------------------------------- ---------------------------- ---------------------------- ----------------------------
Germany ADVANTIM 4/8/94 2061817
------------------------------- ---------------------------- ---------------------------- ----------------------------
Spain ADVANTIM 11/30/95 1730984
------------------------------- ---------------------------- ---------------------------- ----------------------------
24
NON-U.S. TRADEMARK APPLICATIONS
------------------------------- ---------------------------- ---------------------------- ----------------------------
COUNTRY ▇▇▇▇ APPLICATION DATE APPLICATION NO.
------- ---- ---------------- ---------------
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada ALLOMATRIX 3/9/00 1050,006
------------------------------- ---------------------------- ---------------------------- ----------------------------
Canada OLYMPIA 1/2/01 1087,904
------------------------------- ---------------------------- ---------------------------- ----------------------------
CTM OSTEOSET 5/5/99 1162478
------------------------------- ---------------------------- ---------------------------- ----------------------------
CTM ALLOMATRIX 3/10/00 1548544
------------------------------- ---------------------------- ---------------------------- ----------------------------
CTM OLYMPIA 12/27/00 2015154
------------------------------- ---------------------------- ---------------------------- ----------------------------
TRADE NAMES AND COMMON LAW TRADEMARKS
------------------------------------------------------------ ---------------------------------------------------------
COUNTRY(S) WHERE USED TRADE NAME OR COMMON LAW NAME
--------------------- -----------------------------
------------------------------------------------------------ ---------------------------------------------------------
United States EPS
------------------------------------------------------------ ---------------------------------------------------------
United States HYDROXYLAPATITE
------------------------------------------------------------ ---------------------------------------------------------
United States SLR
------------------------------------------------------------ ---------------------------------------------------------
United States ▇▇▇▇▇▇
------------------------------------------------------------ ---------------------------------------------------------
United States ▇▇▇▇▇▇ CHOICE
------------------------------------------------------------ ---------------------------------------------------------
United States ▇▇▇▇▇▇ CHOICE SYSTEMS
------------------------------------------------------------ ---------------------------------------------------------
United States ▇▇▇▇▇▇ MEDICAL TECHNOLOGY
------------------------------------------------------------ ---------------------------------------------------------
25
SCHEDULE V
PERSONS SUBJECT TO LOCK-UPS
Vertical Fund Associates, L.P.
F. ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇, Ph.D.
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
R. ▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Ph.D.
▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇▇▇ ▇. Stamp
▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
SCHEDULE VI
ATTORNEYS-IN-FACT
NUMBER OF SHARES OF
SELLING STOCKHOLDER ATTORNEY-IN-FACT UNDERWRITTEN STOCK
------------------- ---------------- --------------------
California Public Employees' Retirement System 1,522,804
SCHEDULE VII
SELLING STOCKHOLDER ALLOTMENTS
NUMBER OF
SHARES OF
UNDERWRITTEN
SELLING STOCKHOLDER STOCK
------------------- -----
Warburg, ▇▇▇▇▇▇ Equity Partners, L.P. 1,477,196
California Public Employees' Retirement System 1,522,804
ANNEX A
FORM OF LOCK-UP LETTER
LOCK-UP AGREEMENT
February ___, 2002
▇. ▇. ▇▇▇▇▇▇ Securities Inc.
Credit Suisse First Boston Corporation
U.S. Bancorp ▇▇▇▇▇ ▇▇▇▇▇▇▇ Inc.
▇▇▇▇▇▇ Brothers Inc.
▇▇▇▇▇▇ ▇▇▇▇▇▇ Partners LLC
As Representatives of the
Several Underwriters
c/o ▇. ▇. ▇▇▇▇▇▇ Securities Inc.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
The undersigned is either a holder of shares of voting common stock, $.01 par
value ("VOTING COMMON STOCK") or non-voting common stock, $.01 par value
("NON-VOTING COMMON STOCK" and together with Voting Common Stock, the "COMMON
STOCK"), of ▇▇▇▇▇▇ Medical Group, Inc. (the "COMPANY") or has a contractual
right to acquire the Company's Common Stock and wishes to facilitate the public
offering (the "OFFERING") of the Company's Common Stock pursuant to a
Registration Statement on Form S-1 (the "REGISTRATION STATEMENT") filed with the
Securities and Exchange Commission on January 29, 2002.
In consideration of the foregoing, and in order to induce you to act as
underwriters in the Offering, the undersigned hereby irrevocably agrees that it
will not, directly or indirectly, sell, offer, contract to sell, transfer the
economic risk of ownership in, make any short sale, pledge or otherwise dispose
of any shares of Common Stock or any securities convertible into or exchangeable
or exercisable for or any other rights to purchase or acquire Common Stock other
than the Underwritten Stock and the Option Stock (as defined in the
Underwriting
Agreement), without the prior written consent of ▇. ▇. ▇▇▇▇▇▇ Securities Inc.
acting alone or of each of the Representatives of the Underwriters acting
jointly, for a period of 90 days from the effective date of the Registration
Statement.
Notwithstanding the foregoing, if the undersigned is an individual, he or she
may transfer any shares of Common Stock or securities convertible into or
exchangeable or exercisable for Common Stock (i) either during his or her
lifetime or on death by will or intestacy to his or her immediate family or to a
trust the beneficiaries of which are exclusively the undersigned and/or a member
or members of his or her immediate family; PROVIDED, HOWEVER, that prior to any
such transfer each transferee shall execute an agreement, satisfactory to ▇. ▇.
▇▇▇▇▇▇ Securities Inc., pursuant to which each transferee shall agree to receive
and hold such shares of Common
A-1
Stock, or securities convertible into or exchangeable or exercisable for the
Common Stock, subject to the provisions hereof, or (ii) acquired in the public
market on or after the date of the
Underwriting Agreement and there shall be no
further transfer except in accordance with the provisions hereof. For the
purposes of this paragraph, "immediate family" shall mean spouse, lineal
descendant, father, mother, brother or sister of the transferor.
The undersigned hereby waives any rights of the undersigned to sell shares of
Common Stock or any other security issued by the Company pursuant to the
Registration Statement, and acknowledges and agrees that for a period of 90 days
from the effective date of the Registration Statement the undersigned has no
right to require the Company to register under the Securities Act of 1933, as
amended, such Common Stock or other securities issued by the Company and
beneficially owned by the undersigned.
The undersigned understands that the agreements of the undersigned are
irrevocable and shall be binding upon the undersigned's heirs, legal
representatives, successors and assigns. The undersigned agrees and consents to
the entry of stop transfer instructions with the Company's transfer agent
against the transfer of Common Stock or other securities of the Company held by
the undersigned except in compliance with this agreement. If the Offering does
not close by April 1, 2002, this Lock-Up Agreement shall terminate immediately
upon such date and you will release the undersigned from its obligations under
this Lock-Up Agreement.
A-2
Very truly yours,
Dated: ________________________ _________________________________
Signature
_________________________________
Printed Name and Title
A-3
ANNEX B
MATTERS TO BE COVERED IN THE OPINION OF ▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇▇▇▇
NEW YORK COUNSEL FOR THE COMPANY
(i) Each of the Company and ▇▇▇▇▇▇ Medical Technology, Inc.
has been duly incorporated and is validly existing as a corporation in
good standing under the laws of Delaware.
(ii) All of the outstanding shares of capital stock (including
the Underwritten Stock and Option Stock, if any) of the Company conform
in all material respects to the description thereof contained in the
Prospectus under the caption "Description of Capital Stock." All of the
outstanding shares of such capital stock (including the Underwritten
Stock and the shares of Option Stock issued, if any) have been duly and
validly authorized and when issued and delivered to the Underwriters
against payment therefor, will be validly issued, fully paid and
nonassessable. To such counsel's knowledge, no preemptive rights of, or
rights of refusal in favor of, securityholders exist with respect to
the Stock, pursuant to the Company's amended and restated certificate
of incorporation or bylaws. To such counsel's knowledge, there are no
contractual preemptive rights, rights of first refusal or rights of
co-sale which exist with respect to the issue and sale of the Stock
that have not been waived.
(iii) The Registration Statement has become effective under
the Securities Act and, to such counsel's knowledge, no stop order
suspending the effectiveness of the Registration Statement has been
issued and no proceedings for that purpose have been initiated or are
pending. Any required filing of the Prospectus pursuant to Rule 424(b)
under the Securities Act has been made within the time period required
by Rule 424(b). The Prospectus may lawfully be used for the purposes
specified in the Securities Act in connection with the offer and sale
of the Stock in the manner specified therein.
(iv) The Registration Statement, as of the Effective Date, and
the Prospectus as of its date (except as to the financial statements,
notes thereto and schedules included therein, as to which such counsel
need express no opinion) comply as to form in all material respects
with the requirements of the Securities Act and with the Rules and
Regulations.
(v) The
Underwriting Agreement has been duly authorized,
executed and delivered by the Company.
(vi) The issue and sale by the Company of the shares of Stock
sold by the Company as contemplated by the
Underwriting Agreement will
not conflict with, or result in a breach of, or constitute a default
under, the amended and restated certificate of incorporation or bylaws
of the Company or any of its domestic Subsidiaries or any agreement or
instrument to which the Company is a party filed as an exhibit to the
Registration Statement or any Federal or New York State law or
regulation having application generally to transactions involving
issues and sales of the type contemplated by the
Underwriting Agreement
or the General Corporation Law of the State of
B-1
Delaware, except that such counsel need not express any opinion as to
securities or blue sky laws of the various states and the rules and
regulations of the National Association of Securities Dealers, Inc.
(vii) To such counsel's knowledge, all holders of securities
of the Company having rights to the registration of shares of Common
stock, or other securities, have waived such rights or such rights have
expired by reason of lapse of time following notification of the
Company's intent to file the Registration Statement.
(viii) No consent, approval, authorization or order of any
Federal or New York State court or governmental agency or body is
required for the consummation of the transactions contemplated in the
Underwriting Agreement, except such as have been obtained under the
Securities Act and such as may be required under state securities or
blue sky laws in connection with the purchase and distribution of the
Stock by the Underwriters.
(ix) The Stock issued and sold by the Company has been duly
authorized for listing by the Nasdaq National Market upon official
notice of issuance.
(x) To such counsel's knowledge, there are no contracts,
leases, documents, or legal, governmental or administrative
proceedings, pending or threatened, or laws, rules, regulations, orders
or decrees which in the opinion of such counsel are of a character
required to be described in the Registration Statement or the
Prospectus or to be filed as exhibits to the Registration Statement,
which are not described or filed as required.
(xi) Neither the Company nor ▇▇▇▇▇▇ Medical Technology, Inc.
is, nor after giving effect to the offering and the sale of the Stock
and the application of the proceeds thereof as described in the
Prospectus, will be, an "investment company" as such term is defined in
the Investment Company Act of 1940, as amended.
(xii) The statements made in the Prospectus under the captions
"Business--Legal Proceedings, "Management--Employment Agreements,"
"Certain Transactions," "Description of Capital Stock" and "Shares
Eligible for Future Sale" insofar as such statements constitute a
summary of statutes, regulations, rules, legal matters, documents or
proceedings referred to therein, are accurate in all material respects
and present fairly the information required to be shown.
(xiii) The information required to be set forth in the
Registration Statement in answer to Items 10 (insofar as it relates to
such counsel) and 15 of Form S-1 is, to such counsel's knowledge,
accurately and adequately set forth therein in all material respects or
no response is required with respect to such Items and the description
of the Company's stock option plans and the options granted and which
may be granted thereunder and the options granted otherwise than under
such plans set forth in the Prospectus accurately and fairly presents
the information required to be shown with respect to said plans and
options to the extent required by the Securities Act and the Rules and
Regulations.
B-2
Such counsel shall state that no facts have come to their attention to
cause such counsel to believe that the Registration Statement, at the Effective
Date, contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or that the Prospectus (except as to the financial
statements, related notes and schedules contained therein, as to which such
counsel need not express any opinion or belief) as of its date and as of the
Closing Date (or any later date on which Option Stock is purchased), contained
or contains any untrue statement of a material fact or omitted or omits to state
a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.
The foregoing opinions shall be limited to matters involving the
Federal laws of the United States, the General Corporation Law of the State of
Delaware and the laws of the State of New York. Counsel rendering the foregoing
opinion may rely as to questions of law not involving the laws of the United
States, the State of New York or the General Corporation Law of the State of
Delaware, upon opinions of local counsel satisfactory in form and scope to
counsel for the Underwriters.
B-3
ANNEX C
MATTERS TO BE COVERED IN THE OPINION OF ▇▇▇▇▇ ▇. ▇▇▇▇, ESQ.
GENERAL COUNSEL AND SECRETARY OF THE COMPANY
(i) Each of the Company and its domestic subsidiaries has
been duly incorporated and is validly existing as a corporation in good
standing under the laws of Delaware, is duly qualified as a foreign
corporation and in good standing in each state of the United States of
America in which its ownership or leasing of property requires such
qualification (except where the failure to be so qualified would not
have a Material Adverse Effect), and has full corporate power and
authority to own or lease its properties and conduct its business as
described in the Registration Statement (except where the failure to
have such power and authority would not have a Material Adverse
Effect). All the issued and outstanding capital stock of the Company's
domestic subsidiaries has been duly authorized and validly issued and
is fully paid and nonassessable, and is owned by the Company free and
clear of all liens, encumbrances and security interests, and no
options, warrants or other rights to purchase, agreements or other
obligations to issue or other rights to convert any obligations into
shares of capital stock or ownership interests in such subsidiaries are
outstanding.
(ii) The authorized capital stock of the Company consists of
5,000,000(degree) shares of Preferred Stock, $.01 par value, of which
there are no shares outstanding, 70,000,000 shares of Voting Common
Stock, $.01 par value, of which there are outstanding _______ shares
(including the Underwritten Stock plus the number of shares of Option
Stock, if any, issued on the date hereof); and 30,000,000 of Non-Voting
Common Stock, par value $.01 per share, of which there are outstanding
_____ shares; proper corporate proceedings have been taken validly to
authorize such authorized capital stock. All of the outstanding shares
of capital stock conform in all material respects to the description
thereof contained in the Prospectus under the caption "Description of
Capital Stock." All of the outstanding shares of such capital stock
(including the Underwritten Stock and the shares of Option Stock
issued, if any) have been duly and validly authorized and when issued
and delivered to the Underwriters against payment therefor, will be
validly issued, fully paid and nonassessable. No preemptive rights of,
or rights of refusal in favor of, securityholders exist with respect to
the Stock, pursuant to the Company's amended and restated certificate
of incorporation or bylaws. There are no contractual preemptive rights,
rights of first refusal or rights of co-sale which exist with respect
to the issue and sale of the Stock that have not been waived.
(iii) There are no contracts, leases, documents, or
governmental or administrative proceedings, pending or threatened,
which in the opinion of such counsel are of a character required to be
described in the Registration Statement or the Prospectus or to be
filed as exhibits to the Registration Statement, which are not
described or filed as required.
(iv) The issue and sale by the Company of the shares of Stock
as contemplated by the
Underwriting Agreement will not conflict with,
or result in a breach of, or constitute a default under, the Company's
amended and restated certificate of
C-1
incorporation or bylaws or any of its subsidiaries or any agreement or
instrument to which the Company or any of its Subsidiaries is a party
or any applicable statute, law, rule or regulation, order, writ,
injunction or decree of any court or governmental agency or body,
except where such breach or default would not have a Material Adverse
Effect.
(v) All holders of securities of the Company having rights to
the registration of shares of Common Stock, or other securities, have
waived such rights or such rights have expired by reason of lapse of
time following notification of the Company's intent to file the
Registration Statement.
(vi) Neither the Company nor any of its Subsidiaries is
presently (a) in violation of its respective certificate of
incorporation or bylaws and no default by the Company or any of its
Subsidiaries exists in the due performance or observance of any
material obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, lease or other
agreement or instrument that is described or referred to in the
Registration Statement or the Prospectus or filed as an exhibit to the
Registration Statement, or (b) in breach of any applicable statute,
rule or regulation known to such counsel or any order, writ or decree
of any court or governmental agency or body having jurisdiction over
the Company or any of its Subsidiaries, or over any of its properties
or operations, except for any such violation, default or breach, which
would not result in a Material Adverse Effect.
(vii) The Company has adequate corporate power and authority
to enter into the
Underwriting Agreement and to issue, sell and deliver
to the Underwriters the Stock to be issued and sold by it under the
Underwriting Agreement.
(viii) Other than as disclosed in the Registration Statement
and the Prospectus, there is no pending or threatened any action, suit,
proceeding, inquiry or investigation, to which the Company or any of
its Subsidiaries is a party, or to which the property of the Company or
any of its Subsidiaries is subject, before or brought by any court or
governmental agency or body, domestic or foreign, which might
reasonably be expected to result in a Material Adverse Effect, or which
might reasonably be expected to materially and adversely affect the
properties or assets thereof or the consummation of the transactions
contemplated in the Underwriting Agreement or the performance by the
Company of its obligations thereunder.
(ix) To the best of such counsel's knowledge, neither the
Company nor any of its Subsidiaries is infringing or otherwise
violating any intellectual property rights of others, and, to the best
of such counsel's knowledge, there are no infringements by others of
the Company's or any of its Subsidiaries' Intellectual Property rights.
Such counsel shall state that no facts have come to their attention to
cause such counsel to believe that the Registration Statement, at the Effective
Date, contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or that the Prospectus (except as to the financial
statements, related notes and schedules contained therein, as to which such
counsel need not express any opinion or belief) as of its date and as of the
Closing Date (or any later date on which Option Stock is purchased), contained
or contains any untrue statement of a material fact or omitted or omits to state
a material fact
C-2
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
The foregoing opinions shall be limited to matters involving the
Federal laws of the United States, the General Corporation Law of the State of
Delaware and the laws of the State of Tennessee.
C-3
ANNEX D
MATTERS TO BE COVERED IN THE OPINION OF ▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇▇▇▇
FRENCH COUNSEL FOR THE COMPANY
(i) Each of 2Hip Holdings SAS, ▇▇▇▇▇▇ Medical Europe SA, ▇▇▇▇▇▇
Cremascoli Orthotechnique SA and Cremascoli Ortho SA (collectively, the "French
Subsidiaries") has been duly incorporated and is validly existing as a
corporation under the laws of France, is duly qualified as a foreign corporation
in each jurisdiction in which its ownership or leasing of property requires such
qualification (except where the failure to be so qualified would not have a
Material Adverse Effect), and has full corporate power and authority to own or
lease its properties and conduct its business as described in the Prospectus and
the Registration Statement; all the issued and outstanding capital stock of each
of the French Subsidiaries has been duly authorized and validly issued and is
fully paid and nonassessable, and is, to such counsel's knowledge, owned,
directly or indirectly, by the Company free and clear of all liens, encumbrances
and security interests except that shares of 2Hip Holdings SAS representing 65%
of the issued share capital are pledged to the Lenders or their Affiliates (as
defined and pursuant to that certain Credit Agreement executed on August 1,
2001, between, INTER ALIA, the Company and ▇▇▇▇▇▇ Medical Technology, as
borrower, the Lenders, The Chase Manhattan Bank, ▇.▇. ▇▇▇▇▇▇ Securities Inc.,
Credit Suisse First Boston and U.S. Bank National Association), and to such
counsel's knowledge, no options, warrants or other rights to purchase,
agreements or other obligations to issue or other rights to convert any
obligations into shares of capital stock or ownership interests in such
Subsidiaries are outstanding.
(ii) The issue and sale by the Company of the shares of Stock sold by
the Company as contemplated by the Underwriting Agreement will not conflict
with, or result in a breach of, the organizational documents of any French
Subsidiary or any agreement or instrument known to such counsel to which any
French Subsidiary is a party or any applicable French statute, law, rule or
regulation, or so far as is known to such counsel, any order, writ, injunction
or decree, of any jurisdiction in France, or any French court or governmental
agency or body.
(iii) No consent, approval, authorization or order of any French court
or governmental agency or body is required for the consummation of the
transactions contemplated in the Underwriting Agreement.
(iv) To such counsel's knowledge, there is not pending any action,
suit, proceeding, inquiry or investigation, to which or any French Subsidiary is
a party, except as disclosed in the Prospectus or to which the property of any
French Subsidiary is subject, before or brought by any court or governmental
agency or body, domestic or foreign, which might reasonably be expected to
result in a Material Adverse Effect, or which might reasonably be expected to
materially and adversely affect the properties or assets thereof or the
consummation of the transactions contemplated in the Underwriting Agreement or
the performance by the Company of its obligations thereunder.
D-1
ANNEX E
MATTERS TO BE COVERED IN THE OPINION OF ▇▇▇▇▇, ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇
SPECIAL FDA REGULATORY COUNSEL FOR THE COMPANY
(i) Such counsel (A) has no reason to believe that the portions of
the Prospectus entitled "Risk Factors - We are subject to substantial government
regulation that could have a material adverse effect on our business," "Risk
Factors - Modifications to our marketed devices may require Food and Drug
Administration ("FDA") regulatory clearances or approvals or require us to cease
marketing or recall the modified devices until such clearances or approvals are
obtained," "Risk Factors - Our bio-orthopedics business is subject to emerging
government regulations that can significantly impact our business," "Risk
Factors - The FDA has challenged the regulatory status of our ALLOMATRIX(TM)
products," and "Business - Government Regulations," (collectively the
"Regulatory Language") contained in the Registration Statement at the time the
Registration Statement became effective contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary to make the statements therein not misleading and (B) such counsel
has no reason to believe that the Regulatory Language contained in the
Prospectus as of its date and as of the date hereof contained or contains any
untrue statement of a material fact or omitted to state a material fact
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.
(ii) To the best of such counsel's knowledge, except with respect
to the warning letter described in the Registration Statement and the
Prospectus, there are no FDA or judicial administrative proceedings pending or
threatened against the Company, and to the best of our knowledge, the Company
has made all material filings, applications, and submissions required as they
relate to FDA approvals, clearances, and authorizations, except as described in
the Registration Statement and the Prospectus.
(iii) No consent, approval, authorization, clearance or order of the
FDA is required to be obtained by the Company or any of its Subsidiaries in
connection with the offer and sale by the Company of Stock as contemplated by
the Underwriting Agreement.
(iv) The offer and sale by the Company of the Stock as contemplated
by the Underwriting Agreement will not conflict with, or result in a breach of,
the Federal Food, Drug, and Cosmetic Act ("FDC Act") or the rules promulgated by
the FDA under the FDC Act.
E-1
ANNEX F
MATTERS TO BE COVERED IN THE OPINION OF ▇▇▇▇▇▇▇, EDELL, SHAPIRO, ▇▇▇▇▇▇ &
▇▇▇▇▇, LLC
PATENT COUNSEL FOR THE COMPANY
(i) To such counsel's knowledge, the statements in the
Registration Statement and the Prospectus under the captions "Risk Factors--If
our patents and other intellectual property rights do not adequately protect our
products, we may lose market share to our competitors and may be unable to
operate our business properly" and "-- If we lose any existing or future
intellectual property lawsuits, a court counsel require us to pay significant
damages or prevent us from selling our products" and "Business-Intellectual
Property" are accurate and complete summaries of the matters set forth therein;
(ii) To such counsel's knowledge, except as set forth in the
Prospectus, there are no legal or governmental proceedings pending relating to
patent rights, trade secrets, trademarks, service marks or other proprietary
information or materials (collectively, "Intellectual Property") of the Company
or any of its Subsidiaries, and to such counsel's knowledge no such proceedings
are threatened or contemplated by governmental authorities or others;
(iii) Such counsel do not know of any contracts or other documents,
relating to governmental regulation affecting the Company or any of its
Subsidiaries or the Company's or any Subsidiary's, Intellectual Property of a
character required to be filed as an exhibit to the Registration Statement or
required to be described in the Registration Statement or the Prospectus that
are not filed or described as required;
(iv) To such counsel's knowledge, neither the Company nor any of
its Subsidiaries are infringing or otherwise violating any Intellectual Property
rights of others, and to such counsel's knowledge there are no infringements by
others of any of the Company's or any of its Subsidiaries Intellectual Property
rights which in the judgment of such counsel could affect materially the use
thereof by the Company or any such Subsidiary and to such counsel's knowledge,
neither the Company nor any of its Subsidiaries has received any written notice
challenging the validity or enforceability of any patents which in the judgment
of such counsel could affect materially the use thereof by the Company or any
Subsidiary, except as described in the Prospectus;
(v) The Company and its Subsidiaries own the Intellectual Property
described in Schedule IV.
(vi) To such counsel's knowledge, the Company and its Subsidiaries
own or possess sufficient licenses or other rights to use all necessary to
conduct the business now being or proposed to be conducted by the Company and
its Subsidiaries as described in the Prospectus;
(vii) No security interest has been recorded in the Patent and
Trademark Office and, to such counsel's knowledge, is still extant [(other than
a security interest granted to the Chase Manhattan Bank under the Company's
Credit Agreement executed on August 1, 2001, between, INTER ALIA, the Company
and ▇▇▇▇▇▇ Medical Technology, as borrower, the Lenders,
G-1
The Chase Manhattan Bank, ▇.▇. ▇▇▇▇▇▇ Securities Inc., Credit Suisse First
Boston and U.S. Bank National Association)].
(viii) To such counsel's knowledge, no interference has been declared
with respect to any of the U.S. patents and patent applications necessary to
conduct the business now being or proposed to be conducted by the Company and
its Subsidiaries as described in the Prospectus;
(ix) Such counsel is not aware of any facts that would lead such
counsel to conclude that any of the patents or patents for which applications
have been filed which are necessary to conduct the business now being or
proposed to be conducted by the Company and its Subsidiaries as described in the
Prospectus would be invalid;
(x) Such counsel is not aware of any material defects of form in
the preparation or filing of applications for patents which are necessary to
conduct the business now being or proposed to be conducted by the Company and
its Subsidiaries as described in the Prospectus and such applications are being
diligently pursued by the Company and its Subsidiaries; and
Such counsel shall also state that no facts have come to their
attention that cause such counsel to believe that the Registration Statement or
the Prospectus (i) contained or contains any untrue statement of a material fact
with respect to the Intellectual Property owned or used by the Company and its
Subsidiaries, or the manner of its use thereof, or any allegation on the part of
any person that the Company or any of its Subsidiaries is infringing any
Intellectual Property rights of any such person or (ii) omitted or omits to
state any material fact relating to Intellectual Property rights owned or used
by the Company or any of its Subsidiaries, or the manner of its use thereof, or
any allegation of which such counsel have knowledge, that is required to be
stated in the Registration Statement or the Prospectus or is necessary to make
the statements therein not misleading.
F-2
ANNEX G
MATTERS TO BE COVERED IN THE OPINION OF ▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇▇▇▇
SPECIAL COUNSEL FOR THE SELLING STOCKHOLDERS
(i) Each Selling Stockholder is the sole record owner of the
Stock to be sold by it; and delivery of the certificates for the Stock
to be sold by such Selling Stockholder pursuant to the Underwriting
Agreement, upon payment therefor by the Underwriters, will pass good
and valid title to such Stock to the Underwriters and the Underwriters
will acquire all the rights of such Selling Stockholder in the Stock
(assuming the Underwriters have no knowledge of an adverse claim), free
and clear of any security interests, claims, liens or other
encumbrances and assuming that each Underwriter is otherwise a
protected purchaser for purposes of the Uniform Commercial Code. The
Stock to be sold by such Selling Stockholder has been duly and validly
authorized, validly issued, fully paid and nonassessable.
(ii) Each Selling Stockholder has adequate power and authority
to enter into the Underwriting Agreement, the Power of Attorney and the
Custody Agreement and to sell and deliver to the Underwriters the Stock
to be sold by it under the Underwriting Agreement and to perform and
discharge its other obligations thereunder and under the Power of
Attorney and the Custody Agreement; and each of the Underwriting
Agreement, the Power of Attorney and the Custody Agreement has been
duly authorized, executed and delivered by such Selling Stockholder and
(assuming due authorization and delivery by the Underwriters and the
Company) is a valid and binding agreement of such Selling Stockholder,
enforceable in accordance with its terms except insofar as
indemnification and contribution provisions thereunder may be limited
by Federal or state securities laws, principles of public policy or
equitable principles and except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or affecting creditors' rights generally or by general
equitable principles.
(iii) The execution and delivery of the Underwriting
Agreement, the Power of Attorney and the Custody Agreement and the
performance of the terms thereof and the consummation of the
transactions therein contemplated will not, to our knowledge, conflict
with, or result in a breach of, or constitute a default under, such
Selling Stockholder's charter, partnership agreement or other
organizational documents pursuant to which such Selling Stockholder is
governed or any applicable statute, law, rule or regulation, order,
writ, injunction or decree of any court or governmental agency or body,
except where such breach or default would not have a material adverse
effect on the ability of such Selling Stockholder to perform its
obligations under the Underwriting Agreement.
Counsel rendering the foregoing opinion may rely as to questions of fact on
certificates of officers of the Selling Stockholders.
G-1