Inverness Medical Innovations, Inc. $100,000,000 7.875% Senior Notes due 2016 PURCHASE AGREEMENT
Exhibit 1.1
Inverness Medical Innovations, Inc.
$100,000,000 7.875% Senior Notes due 2016
September 23, 2009
XXXXXXXXX & COMPANY, INC.
XXXXXXX, SACHS & CO.
XXXXX FARGO SECURITIES, LLC
As Representatives of the several Initial Purchasers
c/o 000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx, 00000
XXXXXXX, SACHS & CO.
XXXXX FARGO SECURITIES, LLC
As Representatives of the several Initial Purchasers
c/o 000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx, 00000
Ladies and Gentlemen:
Introductory. Inverness Medical Innovations, Inc., a Delaware corporation (the “Company”),
proposes to issue and sell to the several initial purchasers named in Schedule A (the
“Initial Purchasers”) $100,000,000 aggregate principal amount of its 7.875% senior unsecured notes
due 2016 (the “Original Notes”). The Company’s obligations under the Original Notes and the
Indenture (as defined below) will be, jointly and severally, unconditionally guaranteed (the
“Guarantees”), on a senior unsecured basis, by each of the Subsidiaries (as defined below) listed
on the signature pages hereto (collectively, the “Guarantors,” and, together with the Company, the
“Issuers”). The Original Notes and the Guarantees are referred to herein as the “Securities.” The
respective principal amounts of the Original Notes to be so purchased by the several Initial
Purchasers are set forth opposite their names in Schedule A hereto. The Original Notes are
to be issued under an indenture dated as of August 11, 2009 (the “Base Indenture”) as supplemented
by a third supplemental indenture (collectively, the “Indenture”) to be dated as of the Closing
Date (as defined below), by and between the Issuers and The Bank of New York Mellon Trust Company,
N.A., as Trustee (the “Trustee”).
Xxxxxxxxx & Company, Inc. (“Jefferies”), Xxxxxxx, Xxxxx & Co. (“GS”) and Xxxxx Fargo
Securities, LLC (“Xxxxx Fargo”) have agreed to act as representatives of the several Initial
Purchasers (in such capacity, the “Representatives”) in connection with the offering and sale of
the Securities.
The Securities will be offered and sold to the Initial Purchasers pursuant to an exemption
from the registration requirements under the Securities Act of 1933, as amended (the “Securities
Act”). The Issuers have prepared a preliminary offering memorandum, dated as of September 22, 2009
(the “Preliminary Offering Memorandum”) , and a pricing supplement thereto dated the date hereof
(the “Pricing Supplement”). The Preliminary Offering Memorandum and the Pricing Supplement are
herein referred to as the “Pricing Disclosure Package.” Promptly after the execution of this
Purchase Agreement (this “Agreement”), the Issuers will prepare a final offering memorandum dated
the date hereof (the “Final Offering Memorandum”). As used herein, “Applicable Time” is 3:30 p.m.
(New York time) on September 23,
2009. Unless stated to the contrary, any references herein to the terms “Pricing Disclosure
Package” and “Final Offering Memorandum” shall be deemed to refer to and include any information
filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), prior to the
Applicable Time and incorporated by reference therein, and any references herein to the terms
“amend,” “amendment” or “supplement” with respect to the Final Offering Memorandum shall be deemed
to refer to and include any information filed under the Exchange Act subsequent to the Applicable
Time that is incorporated by reference therein. All references in this Agreement to financial
statements and schedules and other information which are “contained,” “included” or “stated” (or
other references of like import) in the Pricing Disclosure Package (including the Preliminary
Offering Memorandum) or Final Offering Memorandum shall be deemed to mean and include all such
financial statements and schedules and other information which are or are deemed to be incorporated
by reference in the Pricing Disclosure Package or Final Offering Memorandum, as the case may be.
The Initial Purchasers have advised the Issuers that the Initial Purchasers intend, as soon as
they deem practicable after this Agreement has been executed and delivered, to resell (the “Exempt
Resales”) the Securities in private sales exempt from registration under the Securities Act on the
terms set forth in the Pricing Disclosure Package, solely to (i) persons whom the Initial
Purchasers reasonably believe to be “qualified institutional buyers” (“QIBs”), as defined in Rule
144A under the Securities Act (“Rule 144A”), in accordance with Rule 144A and (ii) other eligible
purchasers pursuant to offers and sales that occur outside the United States within the meaning of
Regulation S under the Securities Act (“Regulation S”) in accordance with Regulations S (the
persons specified in clauses (i) and (ii), the “Eligible Purchasers”).
Holders (including subsequent transferees) of the Securities will have the registration rights
under the registration rights agreement (the “Registration Rights Agreement”), among the Issuers
and the Initial Purchasers, to be dated the Closing Date and in form and substance mutually
satisfactory to the Initial Purchasers and the Company, substantially in the form of the Company’s
former registration rights agreement dated as of February 10, 2004 (excluding provisions with
respect to shelf registration and private exchanges) with such changes as are necessary due to
current law and to substantively match the disclosure regarding the Registration Rights Agreement
in the Pricing Disclosure Package. Under the Registration Rights Agreement, the Issuers will agree
to (i) file with the Securities and Exchange Commission (the “Commission”) a registration statement
under the Securities Act (the “Exchange Offer Registration Statement”) relating to a new issue of
debt securities, the “Exchange Notes” and, together with the Original Notes, the “Notes”),
guaranteed by the guarantors under the Indenture, to be offered in exchange for the Original Notes
and the Guarantees thereof (the “Exchange Offer”) and issued under the Indenture or an indenture
substantially identical to the Indenture (including the first supplemental indenture to the Base
Indenture), (ii) use their commercially reasonable efforts to cause the Exchange Offer Registration
Statement to become effective and (iii) use their commercially reasonable efforts to consummate the
Exchange Offer, all within the time periods specified in the Registration Rights Agreement.
The Securities are being offered and sold by the Issuers in connection with the acquisition of
Free & Clear, Inc., a Delaware corporation (the “Acquisition”) pursuant to that certain Agreement
and Plan of Merger, dated as of August 27, 2009, among Alere LLC, a Delaware
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limited liability company and a wholly owned subsidiary of the Company, Free & Clear, Inc.,
Freedom Merger Corp., a Delaware corporation and a wholly owned subsidiary of Alere LLC, and Xxxxx
Xxxx, as representative of the securityholders of Free & Clear, Inc. (together with all other
documents related to the Acquisition, the “Acquisition Documents”).
This Agreement, the Notes, the Guarantees, the Indenture and the Registration Rights Agreement
are hereinafter sometimes referred to collectively as the “Note Documents.” The Note Documents and
the Acquisition Documents are hereinafter sometimes referred to collectively as the “Transaction
Documents.” The issuance and sale of the Securities and the Acquisition are collectively referred
to as the “Transactions.”
The Issuers hereby confirm their respective agreements with the Initial Purchasers as follows:
Section 1. Representations and Warranties. (i) The Issuers hereby represent and warrant to
each Initial Purchaser, as of the date of this Agreement and as of the Closing Date (as hereinafter
defined) and jointly and severally covenant with each Initial Purchaser (references in this Section
1 to the “Offering Memorandum” are to (x) the Pricing Disclosure Package in the case of
representations and warranties made as of the date hereof and (y) the Final Offering Memorandum in
the case of representations and warranties made as of the Closing Date), as follows:
(a) Accuracy of Notes Documents. Neither the Pricing Disclosure Package, as of the date
hereof or as of the Closing Date, nor the Final Offering Memorandum, as of its date or (as amended
or supplemented in accordance with Section 3(c), if applicable) as of the Closing Date, contains
any untrue statement of a material fact or omits to state any 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 the Issuers make no representation or warranty with respect to
information relating to the Initial Purchasers contained in or omitted from the Pricing Disclosure
Package, the Final Offering Memorandum or any amendment or supplement thereto in reliance upon and
in conformity with information furnished to the Company in writing by or on behalf of any Initial
Purchaser through the Representatives expressly for inclusion in the Pricing Disclosure Package,
the Final Offering Memorandum or any amendment or supplement thereto, as the case may be. No order
preventing the use of the Preliminary Offering Memorandum, the Pricing Supplement or the Final
Offering Memorandum, or any amendment or supplement thereto, or any order asserting that any of the
transactions contemplated by this Agreement are subject to the registration requirements of the
Securities Act, has been issued or, to the Company’s knowledge, has been threatened.
(b) Distribution of Note Documents. The Company (including its agents and representatives,
other than the Initial Purchasers in their capacity as such) has not prepared, made, used,
authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to
any written communication that constitutes an offer to sell or solicitation of an offer to buy the
Securities (each such communication by the Company or its agents and representatives an “Issuer
Written Communication”) other than (i) the Pricing Disclosure Package and (ii) the Final Offering
Memorandum. Each such Issuer Written Communication, when taken together with the Pricing
Disclosure Package, did not, and at the Closing Date will not, contain any
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untrue statement of a material fact or omit 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.
(c) Class of Securities. There are no securities of the Issuers that are listed on a national
securities exchange registered under Section 6 of the Exchange Act or that are quoted in a United
States automated interdealer quotation system that are of the same class, within the meaning of
Rule 144A as the Securities.
(d) The Purchase Agreement. This Agreement has been duly and validly authorized, executed and
delivered by, and is a valid and binding agreement of, each Issuer, enforceable against it in
accordance with its terms, except as rights to indemnification hereunder may be limited by
applicable law and except as the enforcement hereof may be limited by bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general principles of equity and the discretion of the court
before which any proceeding therefor may be brought (all such exceptions collectively, the
“Enforceability Exceptions”). This Agreement conforms in all material respects to the description
thereof in the Pricing Disclosure Package.
(e) Authorization of the Indenture. The Indenture has been duly and validly authorized by
each Issuer and, when duly executed and delivered by the Issuers (assuming the due authorization,
execution and delivery thereof by the Trustee), will be a legally binding and valid obligation of
each such Issuer, enforceable against it in accordance with its terms, except as the enforcement
thereof may be limited by Enforceability Exceptions. The Indenture, when executed and delivered,
will conform in all material respects to the description thereof in the Pricing Disclosure Package.
The Base Indenture has been duly qualified under the Trust Indenture Act of 1939, as amended (the
“Trust Indenture Act”).
(f) Authorization of the Notes. The Original Notes have been duly and validly authorized for
issuance and sale to the Initial Purchasers by the Company and, when issued, authenticated by the
Trustee, and delivered by or on behalf of the Company against payment therefor by the Initial
Purchasers in accordance with the terms of this Agreement and the Indenture, the Original Notes
will be legally binding and valid obligations of the Company, entitled to the benefits of the
Indenture and enforceable against the Company in accordance with their terms, except as the
enforcement thereof may be limited by the Enforceability Exceptions. The Original Notes, when
issued, authenticated by the Trustee and delivered by or on behalf of the Company, will conform in
all material respects to the description thereof in the Offering Memorandum. The Exchange Notes
have been, or on or before the Closing Date will be, duly and validly authorized for issuance by
the Company, and when issued, authenticated by the Trustee and delivered by or on behalf of the
Company in accordance with the terms of the Registration Rights Agreement, the Exchange Offer and
the applicable indenture, the Exchange Notes will be legally binding and valid obligations of the
Company, entitled to the benefits of the Indenture and enforceable against the Company in
accordance with their terms, except as the enforcement thereof may be limited by the Enforceability
Exceptions.
(g) Authorization of the Guarantees. Each Guarantee has been duly and validly authorized by
the applicable Guarantor and, when the Original Notes are issued and
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delivered by or on behalf of the Company and authenticated by the Trustee against payment therefor
by the Initial Purchasers in accordance with the terms of this Agreement and the Indenture, will be
legally binding and valid obligations of such Guarantor, enforceable against such Guarantor in
accordance with its terms, except that enforceability thereof may be limited by the Enforceability
Exceptions. Each Guarantee, when the Original Notes are issued, authenticated by the Trustee and
delivered by or on behalf of the Company, will conform in all material respects to the description
thereof in the Offering Memorandum. Each guarantee of the Exchange Notes has been duly and validly
authorized by the applicable Guarantor and, when the Exchange Notes are issued, authenticated by
the Trustee and delivered by or on behalf of the Company in accordance with the terms of the
Registration Rights Agreement, the Exchange Offer and the applicable indenture, will be legally
binding and valid obligations of such Guarantor, enforceable against it in accordance with its
terms, except as the enforceability thereof may be limited by the Enforceability Exceptions.
(h) Authorization of the Registration Rights Agreement. The Registration Rights Agreement has
been duly and validly authorized by each Issuer and, when duly executed and delivered by the
Issuers (assuming the due authorization, execution and delivery thereof by the Initial Purchasers),
will constitute a valid and legally binding obligation of each such Issuer, enforceable against it
in accordance with its terms, except that (A) the enforcement thereof may be limited by the
Enforceability Exceptions and (B) any rights to indemnity or contribution thereunder may be limited
by federal and state securities laws and public policy considerations. The Registration Rights
Agreement, when executed and delivered, will conform in all material respects to the description
thereof in the Offering Memorandum.
(i) No Material Adverse Change. Except as otherwise disclosed in the Pricing Disclosure
Package, subsequent to the respective dates as of which information is given in Pricing Disclosure
Package: (i) there has been no material adverse change, or any development that could reasonably
be expected to result in a material adverse change, in the condition, financial or otherwise, or in
the earnings, business, operations or prospects, whether or not arising from transactions in the
ordinary course of business, of the Company and its subsidiaries, considered as one entity (any
such change is called a “Material Adverse Change”); (ii) the Company and its subsidiaries,
considered as one entity, have not incurred any material liability or obligation, indirect, direct
or contingent, not in the ordinary course of business nor entered into any material transaction or
agreement not in the ordinary course of business; and (iii) there has been no dividend or
distribution of any kind (other than regular quarterly dividends on the Company’s Series B
Convertible Perpetual Preferred Stock) declared, paid or made by the Company or, except for
dividends paid to the Company or other subsidiaries, any of its subsidiaries on any class of
capital stock or repurchase or redemption by the Company or any of its subsidiaries of any class of
capital stock.
(j) Independent Accountants. To the Company’s knowledge, BDO Xxxxxxx, LLP, who have expressed
their opinion with respect to the financial statements (which term as used in this Agreement
includes the related notes thereto) and supporting schedules included and incorporated by reference
in the Offering Memorandum, are (i) independent public or certified public accountants as required
by the Securities Act and the Exchange Act, (ii) in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of
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Regulation S-X and (iii) a registered public accounting firm as defined by the Public Company
Accounting Oversight Board (the “PCAOB”) whose registration has not been suspended or revoked and
who has not requested such registration to be withdrawn.
(k) Preparation of the Financial Statements. The financial statements and supporting
schedules included and incorporated by reference in the Offering Memorandum present fairly the
consolidated financial position of the Company and its subsidiaries (or its applicable
subsidiaries) as of and at the dates indicated and the results of their operations and cash flows
for the periods specified. Such financial statements and supporting schedules have been prepared
in conformity with generally accepted accounting principles as applied in the United States applied
on a consistent basis throughout the periods involved, except as may be expressly stated in the
related notes thereto. The financial data set forth in the Offering Memorandum under the caption
“Summary Consolidated Financial Information” fairly present the information set forth therein on a
basis consistent with that of the audited financial statements included and incorporated by
reference in the Offering Memorandum. The pro forma condensed financial statements of the Company
and its subsidiaries and the related notes thereto included and incorporated by reference in the
Offering Memorandum present fairly the information contained therein, have been prepared in
accordance with the Commission’s rules and guidelines with respect to pro forma financial
statements and have been properly presented on the bases described therein, and the assumptions
used in the preparation thereof are reasonable and the adjustments used therein are appropriate to
give effect to the transactions and circumstances referred to therein. To the Company’s knowledge,
no person who has been suspended or barred from being associated with a registered public
accounting firm, or who has failed to comply with any sanction pursuant to Rule 5300 promulgated by
the PCAOB, has participated in or otherwise aided the preparation of, or audited, the financial
statements, supporting schedules or other financial data included and incorporated by reference in
the Offering Memorandum.
(l) Company’s Accounting System. The Company makes and keeps accurate books and records and
maintains a system of internal accounting controls sufficient to provide reasonable assurance 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
conformity with generally accepted accounting principles as applied in the United States 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.
(m) Incorporation and Good Standing of the Company and its Subsidiaries. Each of the Company
and its subsidiaries has been duly incorporated or organized, as the case may be, and is validly
existing as a corporation, partnership or limited liability company, as applicable, in good
standing under the laws of the jurisdiction of its incorporation or organization and has the power
and authority (corporate or other) to own, lease and operate its properties and to conduct its
business as described in the Offering Memorandum and, in the case of each Issuer, to enter into and
perform its obligations under this Agreement. Each of the Company and the subsidiaries of the
Company set forth on Schedule D attached hereto (each a “Subsidiary” and, collectively, the
“Subsidiaries”) is duly qualified as a foreign corporation, partnership or limited
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liability company, as applicable, to transact business and is in good standing in each other
jurisdiction in which such qualification is required, whether by reason of the ownership or leasing
of property or the conduct of business, except where the failure to be so qualified and in good
standing would not, individually or in the aggregate, result in a Material Adverse Change. Each
“significant subsidiary” (as such term is defined in Rule 1-02 of Regulation S-X) of the Company is
set forth on Schedule D attached hereto. All of the issued and outstanding capital stock
or other equity or ownership interests of each Subsidiary wholly owned by the Company or any other
Subsidiary have been duly authorized and validly issued, are (in the case of capital stock) fully
paid and nonassessable and are owned by the Company, directly or through subsidiaries, free and
clear of any security interest, mortgage, pledge, lien, encumbrance or adverse claim other than (A)
the security interests created by (1) that certain First Lien Credit Agreement dated as of June 26,
2007 among, inter alia, the Company, the lenders party thereto and General Electric Capital
Corporation as administrative agent and (2) that certain Second Lien Credit Agreement dated as of
June 26, 2007 among, inter alia, the Company, the lenders party thereto and General Electric
Capital Corporation as administrative agent, in each case, including any notes, guarantees,
collateral and security documents, instruments and agreements executed in connection therewith (the
“Senior Credit Documents”) and (B) any other liens or security interests permitted by the Senior
Credit Documents. The Company does not own or control, directly or indirectly, any corporation,
association or other entity other than (i) the subsidiaries listed in Exhibit 21 to the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and the subsidiaries listed
in Schedule D attached hereto and (ii) such other entities omitted from Exhibit 21 or
Schedule D attached hereto which, when such omitted entities are considered in the
aggregate as a single subsidiary, would not constitute a “significant subsidiary” within the
meaning of Rule 1-02(w) of Regulation S-X. All subsidiaries of the Company that are guarantors of
the Senior Credit Documents and organized under the laws of a state of the United States are
Guarantors, other than Diamics, Inc. and SPDH, Inc.
(n) Capitalization and Other Capital Stock Matters. The authorized, issued and outstanding
capital stock of the Company is as set forth in the Offering Memorandum in the Company’s balance
sheet as of December 31, 2008 (other than for subsequent issuances, if any, pursuant to employee
benefit plans described in the Offering Memorandum or upon the exercise of outstanding options or
warrants described in the Offering Memorandum). All of the issued and outstanding shares of
capital stock of the Company have been duly authorized and validly issued, are fully paid and
nonassessable and have been issued in compliance with federal and state securities laws. None of
the outstanding equity interests of the Company was issued in violation of any preemptive rights,
rights of first refusal or other similar rights to subscribe for or purchase securities of the
Company. All outstanding options, warrants, preemptive rights, rights of first refusal or other
rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable
for, any capital stock of the Company are as set forth and accurately and fairly described, in all
material respects, in the Offering Memorandum. 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 Offering Memorandum accurately and fairly presents, in all material
respects, the information required to be shown with respect to such plans, arrangements, options
and rights.
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(o) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required. Neither the Company nor any of its subsidiaries is in violation of its charter or
by-laws, partnership agreement or operating agreement or similar organizational document, as
applicable, or is in default (or, with the giving of notice or lapse of time, would be in default)
(“Default”) under any indenture, mortgage, loan or credit agreement, note, contract, franchise,
lease or other instrument to which the Company or any of its subsidiaries is a party or by which it
or any of them may be bound (including, without limitation, any credit agreement, indenture, pledge
agreement, security agreement or other instrument or agreement evidencing, guaranteeing, securing
or relating to indebtedness of the Company or any of its subsidiaries), or to which any of the
property or assets of the Company or any of its subsidiaries is subject (each, an “Existing
Instrument”), except for such Defaults as would not, individually or in the aggregate, result in a
Material Adverse Change. The Issuers’ execution, delivery and performance of this Agreement, the
Indenture, the Registration Rights Agreement, the consummation by the Issuers of the Transactions
contemplated hereby and by the Offering Memorandum and the issuance and sale of the Securities to
be sold by the Issuers (i) have been duly authorized by all necessary corporate or other
organizational action and will not result in any violation of the provisions of the charter or
by-laws, partnership agreement or operating agreement or similar organizational document of the
Company or any subsidiary, as applicable, (ii) will not conflict with or constitute a breach of, or
Default or a Debt Repayment Triggering Event (as defined below) under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of
its subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument
(other than requiring the consent of General Electric Capital Corporation as administrative agent
under the respective Senior Credit Documents and (iii) will not result in any violation of any law,
administrative regulation or administrative or court decree applicable to the Company or any
subsidiary, except, with respect to clauses (ii) and (iii), for such conflicts, breaches, Defaults,
Debt Repayment Triggering Events, liens, charges, encumbrances or violations as would not,
individually or in the aggregate, result in a Material Adverse Change. No consent, approval,
authorization or other order of, or registration or filing with, any court or other governmental or
regulatory authority or agency, is required for the Issuers’ execution, delivery and performance of
this Agreement and the consummation by the Issuers of the Transactions contemplated hereby and by
the Offering Memorandum, except (1) such as have been obtained or made by the Company or the
Trustee and are in full force and effect under the Securities Act or the Trust Indenture Act, (2)
such as may be required under applicable state securities or blue sky laws, (3) such as may be
required from the Financial Industry Regulatory Authority (“FINRA”) and (4) as contemplated by the
Registration Rights Agreement with respect to the Exchange Offer. As used herein, a “Debt
Repayment Triggering Event” means any event or condition which gives, or with the giving of notice
or lapse of time would give, the holder of any note, debenture or other evidence of indebtedness
(or any person acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries.
(p) No Material Actions or Proceedings. Except as otherwise disclosed in the Offering
Memorandum, there are no legal or governmental actions, suits or proceedings pending or, to the
Company’s knowledge, threatened (i) against or affecting the Company or any of its subsidiaries,
(ii) which have as the subject thereof any officer or director of, or property owned or leased by,
the Company or any of its subsidiaries or (iii) relating to environmental or
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discrimination matters, where in any such case (A) any such action, suit or proceeding, if
determined adversely to the Company, such subsidiary or such officer or director, would reasonably
be expected to result in a Material Adverse Change or, individually or in the aggregate, adversely
affect the consummation of the transactions contemplated by this Agreement or (B) any such action,
suit or proceeding is or would be material in the context of the sale of Securities. No material
labor dispute with the employees of the Company or any of its Subsidiaries exists or, to the
Company’s knowledge, is threatened or imminent.
(q) Intellectual Property Rights. To the Company’s knowledge, the Company owns, possesses or
can acquire on reasonable terms sufficient trademarks, servicemarks, trade names, patents,
copyrights, and any registrations and applications for any of the foregoing, domain names,
licenses, approvals, trade secrets, know-how, inventions, technology and other similar rights
(collectively, “Intellectual Property Rights”) reasonably necessary to conduct its business as now
conducted and as proposed to be conducted as set forth in the Offering Memorandum (the “Business”).
The operation of the Business by the Company, together with the Company’s use of the Intellectual
Property Rights purported to be owned by, or exclusively licensed to, the Company and used by the
Company in the Business (collectively, “Company Intellectual Property Rights”), does not infringe,
misappropriate or otherwise violate the Intellectual Property Rights of any third party, other than
the rights of any third party under any patent, and to the Company’s knowledge, the operation of
the Business, together with the Company’s use of any Company Intellectual Property Rights, does not
infringe or otherwise violate the rights of any third party under any patent. Except as disclosed
in the Offering Memorandum, no actions, suits, claims or proceedings have been asserted or, to the
knowledge of the Company, threatened against the Company alleging any of the forgoing or seeking to
challenge, deny or restrict the operation of the Business by the Company, except for such actions,
suits, claims or proceedings as would not, individually or in the aggregate, result in a Material
Adverse Change. The Company has not received any written notice of a claim of infringement,
misappropriation or conflict with Intellectual Property Rights of others, except for such claims,
individually or in the aggregate, as would not result in a Material Adverse Change. Except as
disclosed in the Offering Memorandum or except as would not, individually or in the aggregate, be
reasonably expected to result in a Material Adverse Change, no court, administrative body or
arbitral body has issued any order, judgment, decree or injunction restricting the operation of the
Business by the Company.
Except as disclosed in the Offering Memorandum or except as would not, individually or in the
aggregate, be reasonably expected to result in a Material Adverse Change, the Company Intellectual
Property Rights owned by the Company and, to the knowledge of the Company, any Intellectual
Property Rights exclusively licensed to the Company have not been adjudged invalid or
unenforceable, in whole or in part, and, except as aforesaid, there is no pending or, to the
Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the
validity or scope of any such Intellectual Property Rights. Except as disclosed in the Offering
Memorandum or except as would not, individually or in the aggregate, be reasonably expected to
result in a Material Adverse Change, there is no pending or, to the knowledge of the Company,
threatened action, suit, proceeding or claim by others challenging the Company’s right in or to any
Company Intellectual Property Rights. Except as otherwise disclosed in the Offering Memorandum,
the Company is not a party to or bound by any agreements with respect
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to the Intellectual Property Rights of any other person or entity that are required to be set
forth in the Offering Memorandum. None of the technology or intellectual property included in, or
that is the subject matter of, the Company Intellectual Property Rights has been obtained or is
being used by the Company in violation of any contractual obligation binding on the Company or, to
the Company’s knowledge, any of its officers, directors or employees.
Other than the patent applications acquired by the Company from a third party (the “Acquired
Patent Applications”), the Company has duly filed or caused to be filed with the U.S. Patent and
Trademark Office (the “PTO”) or foreign and international patent authorities all patent
applications disclosed in the Offering Memorandum as owned by the Company (the “Company Patent
Applications”). The Company has complied with the PTO’s duty of candor and disclosure for the
Company Patent Applications and has made no material misrepresentation during prosecution of the
Company Patent Applications and the Acquired Patent Applications. To the Company’s knowledge, the
Company Patent Applications disclose patentable subject matters and correctly name the inventors of
the claimed subject matter. With respect to the Company Patent Applications, the Company has not
been notified of any inventorship challenges nor has any interference been declared.
The Company has used reasonable security measures, but in no event less than those efforts
that would accord with normal industry practice, to maintain the confidentiality of the trade
secrets and other confidential information included in the Company Intellectual Property Rights.
To the knowledge of the Company, all material trade secrets included in the Company Intellectual
Property Rights are valid and protectible. Furthermore, to the knowledge of the Company, (i) there
has been no misappropriation of any material trade secrets included in the Company Intellectual
Property Rights by any other person, (ii) no employee, independent contractor or agent of the
Company has misappropriated any trade secrets of any other person in the course of performance as
an employee, independent contractor or agent of the Company, and (iii) no employee, independent
contractor or agent of the Company is in material default or breach of any term of any employment
agreement, nondisclosure agreement, assignment of invention agreement or similar agreement or
contract relating in any way to the protection, ownership, development, use or transfer of Company
Intellectual Property Rights owned by the Company.
(r) All Necessary Permits, etc. The Company and each subsidiary possess such valid and
current certificates, authorizations or permits issued by the appropriate state, federal or foreign
regulatory agencies or bodies necessary to conduct their respective businesses, and neither the
Company nor any subsidiary has received, or has any reason to believe that it will receive, any
notice of proceedings relating to the revocation or modification of, or non-compliance with, any
such certificate, authorization or permit which, individually or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, could result in a Material Adverse Change.
(s) Title to Properties. Except as otherwise disclosed in the Offering Memorandum, each of
the Company and its subsidiaries has good and marketable title to all of the real and personal
property and other assets reflected as owned in the financial statements referred to in Section
1(i)(k) above (or elsewhere in the Offering Memorandum), in each case free and clear of any
security interests, mortgages, liens, encumbrances, equities, adverse claims and other defects,
except such as do not materially and adversely affect the value of such property and do not
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materially interfere with the use made or proposed to be made of such property by the Company
or such subsidiary and except for (A) the security interests created by the Senior Credit Documents
and (B) any other liens or security interests permitted by the Senior Credit Documents. The real
property, improvements, equipment and personal property held under lease by the Company or any
subsidiary are held under valid and enforceable leases, with such exceptions as are not material
and do not materially interfere with the use made or proposed to be made of such real property,
improvements, equipment or personal property by the Company or such subsidiary.
(t) Tax Law Compliance. The Company and its subsidiaries have filed all necessary federal,
state and foreign income and franchise tax returns and have paid all taxes required to be paid by
any of them and, if due and payable, any related or similar assessment, fine or penalty levied
against any of them, except for such failure to file or pay as would not, individually or in the
aggregate, result in a Material Adverse Change. The Company has made adequate charges, accruals
and reserves in the applicable financial statements referred to in Section 1(i)(k) above in respect
of all federal, state and foreign income and franchise taxes for all periods as to which the tax
liability of the Company or any of its consolidated subsidiaries has not been finally determined.
(u) Each Issuer Not an “Investment Company”. Each Issuer has been advised of the rules and
requirements under the Investment Company Act of 1940, as amended (the “Investment Company Act”).
Each Issuer is not, and will not be, either after receipt of payment for the Securities or after
the application of the proceeds therefrom as described under “Use of Proceeds” in the Offering
Memorandum, an “investment company” within the meaning of the Investment Company Act.
(v) Insurance. The Company and its subsidiaries are insured by recognized institutions with
policies in such amounts and with such deductibles and covering such risks as are generally deemed
adequate and customary for their businesses including, but not limited to, policies covering real
and personal property owned or leased by the Company and its subsidiaries against theft, damage,
destruction, acts of vandalism and earthquakes and policies covering the Company and its
subsidiaries for product liability claims and clinical trial liability claims. The Company has no
reason to believe that it or any subsidiary will not be able (i) to renew its existing insurance
coverage as and when such policies expire or (ii) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to conduct its business as now conducted and at a
cost that would not, individually or in the aggregate, result in a Material Adverse Change.
Neither the Company nor any subsidiary has been denied any insurance coverage which it has sought
or for which it has applied.
(w) No Price Stabilization or Manipulation; Compliance with Regulation M. No Issuer has
taken, directly or indirectly, any action designed to or that might be reasonably expected to cause
or result in stabilization or manipulation of the price of the Securities or any other “reference
security” (as defined in Rule 100 of Regulation M under the Exchange Act (“Regulation M”)) whether
to facilitate the sale or resale of the Securities or otherwise, or has taken any action which
would directly or indirectly violate Regulation M.
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(x) Related-Party Transactions. There are no business relationships or related-party
transactions involving the Company or any of its subsidiaries or any other person required to be
described in the Offering Memorandum which have not been described as required.
(y) Exchange Act Compliance. The documents incorporated or deemed to be incorporated by
reference in the Offering Memorandum, at the time they were or hereafter are filed with the
Commission, complied and will comply in all material respects with the requirements of the Exchange
Act, and, when read together with the other information in the Offering Memorandum, at the Closing
Date will not contain an 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, in the light of the
circumstances under which they were made, not misleading.
(z) Statistical and Market-Related Data. The statistical, demographic and market-related data
included in the Offering Memorandum are based on or derived from sources that the Company believes
to be reliable and accurate or represent the Company’s good faith estimates that are made on the
basis of data derived from such sources.
(aa) No Unlawful Contributions or Other Payments. Neither the Company nor any of its
subsidiaries nor, to the Company’s knowledge, any employee or agent of the Company or any
subsidiary, has made any contribution or other payment to any official of, or candidate for, any
federal, state or foreign office in violation of any law or of the character required to be
disclosed in the Offering Memorandum.
(bb) Disclosure Controls and Procedures; Deficiencies in or Changes to Internal Control Over
Financial Reporting. The Company has established and maintains disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), which (i) are designed to ensure that
material information relating to the Company, including its consolidated subsidiaries, is made
known to the Company’s principal executive officer and its principal financial officer by others
within those entities, particularly during the periods in which the periodic reports required under
the Exchange Act are being prepared; (ii) have been evaluated by management of the Company for
effectiveness as of a date within 90 days prior to the earlier of the date that the Company filed
its most recent annual or quarterly report with the Commission and the date of the Pricing
Disclosure Package; and (iii) are effective in all material respects to perform the functions for
which they were established. There has not been and is no material weakness in the Company’s
internal control over financial reporting since January 1, 2008, and since December 31, 2008, there
has been no change in the Company’s internal control over financial reporting that has materially
affected, or is reasonably likely to materially affect, the Company’s internal control over
financial reporting. The Company is not aware of any fraud, whether or not material, that involves
management or other employees who have a significant role in the Company’s internal control over
financial reporting. The principal executive officers (or their equivalents) and principal
financial officers (or their equivalents) of the Company have made all certifications required by
the Xxxxxxxx-Xxxxx Act of 2002 (the “Xxxxxxxx-Xxxxx Act”) and any related rules and regulations
promulgated by the Commission.
(cc) Compliance with Environmental Laws. Except as described in the Offering Memorandum and
except as would not, individually or in the aggregate, result in a Material Adverse Change, (i)
neither the Company nor any of its subsidiaries is in violation of any
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federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule
of common law or any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent, decree or judgment, relating to pollution or protection of human
health, the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations
relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum or petroleum products (collectively, “Hazardous
Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Materials (collectively, “Environmental Laws”), (ii) the Company
and its subsidiaries have all permits, authorizations and approvals required under any applicable
Environmental Laws and are each in compliance with their requirements, (iii) there are no pending
or, to the Company’s knowledge, threatened administrative, regulatory or judicial actions, suits,
demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or
proceedings relating to any Environmental Law against the Company or any of its subsidiaries and
(iv) there are no events or circumstances that might reasonably be expected to form the basis of an
order for clean-up or remediation, or an action, suit or proceeding by any private party or
governmental body or agency, against or affecting the Company or any of its subsidiaries relating
to Hazardous Materials or any Environmental Laws.
(dd) ERISA Compliance. The Company and its subsidiaries and any “employee benefit plan” (as
defined under the Employee Retirement Income Security Act of 1974, as amended, and the regulations
and published interpretations thereunder (collectively, “ERISA”)) established or maintained by the
Company, its subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance in all
material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or a
subsidiary, any member of any group of organizations described in Sections 414(b), (c), (m) or (o)
of the Internal Revenue Code of 1986, as amended, and the regulations and published interpretations
thereunder (the “Code”) of which the Company or such subsidiary is a member. No “reportable event”
(as defined under ERISA) has occurred or is reasonably expected to occur with respect to any
“employee benefit plan” established or maintained by the Company, its subsidiaries or any of their
ERISA Affiliates. No “employee benefit plan” established or maintained by the Company, its
subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan” were terminated,
would have any “amount of unfunded benefit liabilities” (as defined under ERISA). Neither the
Company, its subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to
incur any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from,
any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code. Each “employee
benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA
Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and
nothing has occurred, whether by action or failure to act, which would cause the loss of such
qualification.
(ee) Broker. Except as described in the section entitled “Plan of Distribution” in the
Offering Memorandum, there are no contracts, agreements or understandings between the Issuer or any
Subsidiary and any other person other than the Initial Purchasers pursuant to this Agreement that
would give rise to a valid claim against the Issuer, any such Subsidiary or any Initial Purchaser
for a brokerage commission, finder’s fee or like payment in connection with the issuance, purchase
and sale of the Original Notes.
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(ff) Regulation S Compliance. None of the Issuers nor, to the Company’s knowledge, any of
their affiliates, or any person acting on behalf of any of the foregoing persons (other than any
Initial Purchaser, as to whom the Issuers make no representation), is engaged in any directed
selling effort with respect to the Securities, and each of the Issuers and, to the Company’s
knowledge, their affiliates and persons acting on behalf of the foregoing persons, if any, has
complied with the offering restrictions requirement of Regulation S under the Securities Act.
Terms used in this paragraph have the meaning given to them by Regulation S.
(gg) Affiliates of the Issuer. None of the Issuers nor, to the Company’s knowledge, any of
their affiliates (as defined in Regulation D under the Securities Act) has, directly or through any
agent (other than the Initial Purchasers or any affiliate of the Initial Purchasers, as to which no
representation is made), sold, offered for sale, contracted to sell, pledged, solicited offers to
buy or otherwise disposed of or negotiated in respect of, any security (as defined in the
Securities Act) that is currently or will be integrated with the sale of the Securities in a manner
that would require the registration of the Original Notes under the Securities Act.
(hh) General Solicitation. No form of general solicitation or general advertising (prohibited
by the Securities Act in connection with offers or sales such as the Exempt Resales) was used by
the Issuers or, to the Company’s knowledge, any of their representatives (other than any Initial
Purchaser, as to whom the Issuers make no representation) in connection with the offer and sale of
any of the Original Notes or in connection with Exempt Resales, including, but not limited to,
articles, notices or other communications published in any newspaper, magazine or similar medium or
broadcast over television or radio or the Internet, or any seminar or meeting whose attendees have
been invited by any general solicitation or general advertising within the meaning of Regulation D
under the Securities Act. None of the Issuers nor, to the Company’s knowledge, any of their
affiliates has entered into, and none of the Issuers nor, to the Company’s knowledge, any of their
affiliates will enter into, any contractual arrangement with respect to the distribution of the
Securities except for this Agreement.
(ii) No Outstanding Loans or Other Extensions of Credit. Since the adoption of Section 13(k)
of the Exchange Act, neither the Company nor any of its subsidiaries has extended or maintained
credit, arranged for the extension of credit, or renewed any extension of credit, in the form of a
personal loan, to or for any director or executive officer (or equivalent thereof) of the Company
and/or such subsidiary except for such extensions of credit as are expressly permitted by Section
13(k) of the Exchange Act.
(jj) Compliance with Laws. The Company and each of its subsidiaries are conducting business
in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is
conducting business, except where failure to be so in compliance would not, individually or in the
aggregate, result in a Material Adverse Change. The Company, its subsidiaries and, to the
Company’s knowledge, the Company’s directors and officers are each in compliance in all material
respects with all applicable effective provisions of the Xxxxxxxx-Xxxxx Act and the rules and
regulations of the Commission and the New York Stock Exchange promulgated thereunder.
(kk) Dividend Restrictions. Except as otherwise described in the Offering Memorandum and
except as set forth in the Senior Credit Documents, no subsidiary of the
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Company is prohibited or restricted, directly or indirectly, from paying dividends to the
Company, or from making any other distribution with respect to such subsidiary’s equity securities
or from repaying to the Company or any other subsidiary of the Company any amounts that may from
time to time become due under any loans or advances to such subsidiary from the Company or from
transferring any property or assets to the Company or to any other subsidiary.
(ll) Foreign Corrupt Practices Act. Neither the Company nor any of its subsidiaries nor, to
the knowledge of the Company, any director, officer, agent, employee, affiliate or other person
acting on behalf of the Company or any of its subsidiaries is aware of or has taken any action,
directly or indirectly, that has resulted or would result in a violation of the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”),
including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to give, or authorization of the
giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any
foreign political party or official thereof or any candidate for foreign political office, in
contravention of the FCPA; and the Company and its subsidiaries and, to the knowledge of the
Company, the Company’s affiliates have conducted their respective businesses in compliance with the
FCPA and have instituted and maintain policies and procedures designed to ensure, and which are
reasonably intended to continue to ensure, continued compliance therewith.
(mm) Money Laundering Laws. The operations of the Company and its subsidiaries are, and have
been conducted at all times, in compliance in all material respects with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and
regulations thereunder and any related or similar applicable rules, regulations or guidelines,
issued, administered or enforced by any governmental agency (collectively, the “Money Laundering
Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its subsidiaries with respect to the
Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(nn) OFAC. Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee, affiliate or person acting on behalf of the
Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not
directly or indirectly use the proceeds of this offering, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.
(oo) Summaries of Certain Sections. The statements in the Offering Memorandum under the
headings “Material United States Federal Income Tax Consequences” and “Description of Notes”, under
the subheadings “Risk factors- Risks Related to Our Business— If we are unable to obtain required
clearances or approvals for the commercialization of our products in the United States, we may not
be able to sell future products and our sales could be adversely affected”; — “We are also subject
to applicable regulatory approval requirements of the foreign
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countries in which we sell products, which are costly and may prevent or delay us from
marketing our products in those countries” and —“Failure to comply with on-going regulations
applicable to our businesses may result in significant costs or, in certain circumstances, the
suspension or withdrawal of previously obtained clearances or approvals”, under the subheadings
“Business—Government Regulation” and “Business—Legal Proceedings” in the Company’s 10-K/A for the
fiscal year ended December 31, 2008 and under the heading “Item 1. Legal Proceedings” in the
Company’s 10-Q for the fiscal quarter ended June 30, 2009, fairly summarize the matters therein
described in all material respects.
(pp) Regulation T, U and X. Neither the issuance, sale and delivery of the Securities nor the
application of the proceeds thereof by the Company as described in the Offering Memorandum will
violate Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other
regulation of such Board of Governors.
(qq) Forward-Looking Statements. No forward-looking statement (within the meaning of Section
27A of the Securities Act or Section 21E of the Exchange Act) contained in the Offering Memorandum
has been made or reaffirmed without a reasonable basis or has been disclosed other than in good
faith.
(rr) Pro Forma Financial Statements. The unaudited pro forma financial statements (including
the notes thereto) incorporated by reference into the Offering Memorandum (A) comply as to form in
all material respects with the applicable requirements of Regulation S-X, (B) have been prepared in
accordance with the Commission’s rules and regulations with respect to pro forma financial
statements and (C) have been properly computed on the bases described therein. The assumptions
used in the preparation of the pro forma financial statements and the other pro forma and adjusted
financial information included in the Offering Memorandum are reasonable, and the adjustments used
therein are appropriate to give effect to the transactions or circumstances referred to therein.
(ss) Solvency. As of the date hereof and as of the Closing Date, immediately prior to and
immediately following the consummation of the issuance of the Securities, the Issuers and their
Restricted Subsidiaries (as defined in the Indenture) are and will be Solvent on a consolidated
basis. As used herein, “Solvent” shall mean, for any person on a particular date, that on such
date (A) the fair value of the property of such person is greater than the total amount of
liabilities, including, without limitation, contingent liabilities, of such person, (B) the present
fair salable value of the assets of such person is not less than the amount that will be required
to pay the probable liability of such person on its debts as they become absolute and matured, (C)
such person does not intend to, and does not believe that it will, incur debts and liabilities
beyond such person’s ability to pay as such debts and liabilities mature, (D) such person is not
engaged in a business or a transaction, and is not about to engage in a business or a transaction,
for which such person’s property would constitute an unreasonably small capital and (E) such person
is able to pay its debts as they become due and payable.
The Issuers understand that the Initial Purchasers and, for purposes of the opinions to be
delivered to the Initial Purchasers pursuant to Section 5 hereof, counsel to the Issuers and
counsel to the Initial Purchasers will rely upon the accuracy and truth of the foregoing
representations, and each Issuer hereby consents to such reliance.
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Any certificate signed by any officer of the Company or any of its subsidiaries and delivered
to the Representatives or to counsel for the Initial Purchasers shall be deemed a representation
and warranty by the Company to each Initial Purchaser as to the matters covered thereby.
(ii) Each Initial Purchaser represents that it is a QIB and acknowledges that it is purchasing
the Securities pursuant to a private sale exemption from registration under the Securities Act, and
that the Securities have not been registered under the Securities Act and may not be offered or
sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant
to an exemption from the registration requirements of the Securities Act. Each Initial Purchaser,
severally and not jointly, represents, warrants and covenants to the Issuers that:
(a) Neither it, nor any person acting on its behalf, has solicited or will solicit offers for,
or has offered or sold or will offer or sell, the Securities by any form of general solicitation or
general advertising (as those terms are used in Regulation D under the Securities Act) or in any
manner involving a public offering within the meaning of Section 4(2) of the Securities Act, and it
has solicited and will solicit offers for the Securities only from, and will offer and sell the
Securities only to, (1) persons whom such Initial Purchaser reasonably believes to be QIBs or, if
any such person is buying for one or more institutional accounts for which such person is acting as
fiduciary or agent, only when such person has represented to such Initial Purchaser that each such
account is a QIB to whom notice has been given that such sale or delivery is being made in reliance
on Rule 144A, and, in each case, in reliance on the exemption from the registration requirements of
the Securities Act pursuant to Rule 144A, or (2) persons who are not U.S. persons and who are
outside the United States in reliance on, and in compliance with, the exemption from the
registration requirements of the Securities Act provided by Regulation S.
(b) With respect to offers and sales outside the United States, such Initial Purchaser has
offered the Securities and will offer and sell the Securities (1) as part of its distribution at
any time and (2) otherwise until 40 days after the later of the commencement of the offering of the
Securities and the Closing Date, only in accordance with Rule 903 of Regulation S or another
exemption from the registration requirements of the Securities Act. Accordingly, neither such
Initial Purchasers nor any person acting on their behalf has engaged or will engage in any directed
selling efforts (within the meaning of Regulation S) with respect to the Securities, and any such
persons have complied and will comply with the offering restrictions requirements of Regulation S.
Terms used in this Section 1(ii)(b) have the meanings given to them by Regulation S.
(c) Each Initial Purchaser severally agrees that, at or prior to confirmation of a sale of
Securities pursuant to Regulation S it will have sent to each distributor, dealer or person
receiving a selling concession, fee or other remuneration that purchases Securities from it or
through it during the restricted period a confirmation or notice to substantially the following
effect:
“The Securities covered hereby have not been registered under the
United States Securities Act of 1933, as amended (the “Securities Act”), and
may not be offered or sold within the United States or to or for the account
or benefit of, U.S. persons (i) as part of their distribution at any time
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and (ii) otherwise until forty days after the later of the date upon
which the offering of the Securities commenced and the date of closing,
except in either case in accordance with Regulation S or Rule 144A under the
Securities Act. Terms used above have the meanings given to them by
Regulation S.”
The Initial Purchasers understand that the Issuers and, for purposes of the opinions to be
delivered to the Initial Purchasers pursuant to Section 5 hereof, counsel to the Issuers and
counsel to the Initial Purchasers will rely upon the accuracy and truth of the foregoing
representations, and each Initial Purchaser hereby consents to such reliance.
Section 2. Purchase, Sale and Delivery of the Securities.
(a) Agreements to Sell and Purchase the Securities. On the basis of the representations,
warranties and covenants contained in this Agreement, the Issuers agree to issue and sell to the
several Initial Purchasers, and on the basis of the representations, warranties and covenants
herein contained, and upon the terms but subject to the conditions herein set forth, the Initial
Purchasers agree, severally and not jointly, to purchase from the Issuers the respective number of
Securities set forth opposite their names on Schedule A. The purchase price for the
Original Notes shall be the sum of (i) 95% of their aggregate principal amount plus (ii) accrued
interest from August 11, 2009.
(b) Delivery and Payment. Delivery of the Securities to be purchased by the Initial
Purchasers and payment therefor shall be made at the offices of Xxxxxx Xxxxxx & Xxxxxxx
llp, 00 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx (or such other place as may be agreed to by the
Company and the Representatives) at 9:00 a.m. New York time, on September 28, 2009, or such other
time and date not later than 1:30 p.m. New York time on October 12, 2009 as the Representatives
shall designate by notice to the Company (the time and date of such closing are called the “Closing
Date”).
(c) Payment for the Securities. Payment for the Securities to be sold by the Issuers shall be
made at the Closing Date by wire transfer of immediately available funds to the order of the
Company.
It is understood that the Representatives have been authorized, for their own accounts and the
accounts of the several Initial Purchasers, to accept delivery of and receipt for, and make payment
of the purchase price for, the Securities. Xxxxxxxxx, XX and Xxxxx Fargo individually and not as a
Representative of the Initial Purchasers, may (but shall not be obligated to) make payment for any
Securities to be purchased by any Initial Purchaser whose funds shall not have been received by the
Representatives by the Closing Date for the account of such Initial Purchaser, but any such payment
shall not relieve such Initial Purchaser from any of its obligations under this Agreement.
(d) Delivery of the Securities. The Securities shall be delivered by the Issuers to the
Initial Purchasers (or as the Initial Purchasers direct) through the facilities of The Depository
Trust Company against payment by the Initial Purchasers of the purchase price therefor. The
Securities shall be evidenced by one or more certificates in global form registered in such
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names as the Initial Purchasers may request upon at least one business day’s notice prior to
the Closing Date and having an aggregate principal amount corresponding to the aggregate principal
amount of the Securities.
Section 3. Additional Covenants of the Issuers. The Issuers jointly and severally further
covenant and agree with each Initial Purchaser as follows:
(a) Delivery of the Preliminary Offering Memorandum, Pricing Supplement, any Issuer Written
Communication and Final Offering Memorandum. The Issuers shall furnish the Initial Purchasers and
those persons identified by the Initial Purchasers, without charge, with as many copies of the
Preliminary Offering Memorandum, Pricing Supplement, any Issuer Written Communication and the Final
Offering Memorandum, and any amendments or supplements thereto, as the Initial Purchasers may
reasonably request. The Issuers consent to the use, in accordance with the provisions of the
Securities Act and securities or “blue sky” laws of the jurisdictions in which the Original Notes
are offered, of the Preliminary Offering Memorandum, Pricing Supplement and the Final Offering
Memorandum, and any amendments and supplements thereto required pursuant to this Agreement, by the
Initial Purchasers in connection with Exempt Resales.
(b) Representatives’ Review of Proposed Amendments and Supplements. As promptly as
practicable following the execution and delivery of this Agreement and in any event not later than
the second business day following the date hereof, the Issuers shall prepare and deliver to the
Initial Purchasers the Final Offering Memorandum, which shall consist of the Preliminary Offering
Memorandum as modified only to reflect the information contained in the Pricing Supplement. Prior
to amending or supplementing the Preliminary Offering Memorandum, the Pricing Supplement or the
Final Offering Memorandum (including any amendment or supplement through incorporation by reference
of any report filed under the Exchange Act), the Issuers shall furnish to the Representatives for
review, a reasonable amount of time prior to the proposed time of use thereof, a copy of each such
proposed amendment or supplement, and the Issuers shall not use any such proposed amendment or
supplement without the Representatives’ consent.
(c) Amendments to the Final Offering Memorandum. From the date hereof and until the later of
the Closing Date and the date that the Initial Purchasers have completed their distribution of the
Securities (but in no event after the consummation of the Exchange Offer), if any event shall occur
that, in the judgment of the Issuers or in the judgment of counsel to the Initial Purchasers, makes
any statement of a material fact in the Final Offering Memorandum, as then amended or supplemented,
untrue or that requires the making of any additions to or changes in the Final Offering Memorandum
in order to make the statements in the Final Offering Memorandum, as then amended or supplemented,
in the light of the circumstances under which they are made, not misleading, or if it is necessary
to amend or supplement the Final Offering Memorandum to comply with all applicable laws, the Issuer
shall promptly notify the Initial Purchasers of such event and (subject to Section 3(b)) prepare an
appropriate amendment or supplement to the Final Offering Memorandum so that (i) the statements in
the Final Offering Memorandum, as amended or supplemented, will, in the light of the circumstances
at the time that the Final Offering Memorandum is delivered to prospective Eligible Purchasers, not
be misleading and (ii) the Final Offering Memorandum will comply with all applicable laws.
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(d) Pricing Supplement. The Issuers will prepare for use by the Initial Purchasers a Pricing
Supplement in the form of Exhibit B hereto reflecting the final terms of the Securities
(and containing such other information as the Issuers shall deem necessary in order that the
Preliminary Offering Memorandum shall not contain an untrue statement of a material fact or omit to
state a material fact necessary to make the statements in the Preliminary Offering Memorandum, in
the light of the circumstances under which they were made, not misleading), in form and substance
reasonably satisfactory to the Representatives. The Pricing Supplement shall constitute an Issuer
Written Communication. The Issuers shall provide the Representatives with copies of the Pricing
Supplement a reasonable amount of time prior to such proposed use and will not use any Pricing
Supplement to which the Representatives or counsel to the Initial Purchasers shall reasonably
object.
(e) Securities Act Compliance. After the date of this Agreement, through the time the
Exchange Offer is consummated, the Issuers shall promptly advise the Representatives in writing of
the receipt of any comments of, or requests for additional or supplemental information from, the
Commission, with respect to any registration statement or report filed by such Issuers with the
Commission.
(f) Notification upon Suspension. The Issuers shall advise the Initial Purchasers promptly
and, if requested by the Initial Purchasers, to confirm such advice in writing, of the issuance by
any securities commission of any stop order suspending the qualification or exemption from
qualification of any of the Original Notes for offering or sale in any jurisdiction, or the
initiation of any proceeding for such purpose by any securities commission or other regulatory
authority. The Issuers shall use their commercially reasonable efforts to prevent the issuance of
any stop order or order suspending the qualification or exemption from qualification of any of the
Original Notes under any securities laws, and if at any time any securities commission or other
regulatory authority shall issue an order suspending the qualification or exemption from
qualification of any of the Original Notes under any securities laws, the Issuers shall use their
commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest
possible time.
(g) Use of Proceeds. The Company shall apply the net proceeds from the sale of the Original
Notes sold by it in the manner described under the caption “Use of Proceeds” in the Preliminary
Offering Memorandum and the Final Offering Memorandum.
(h) Trustee. The Issuers shall engage and maintain, at the Company’s expense, a trustee for
the Securities.
(i) Investment Limitation. The Company shall not invest, or otherwise use the proceeds
received by the Company from its sale of the Securities in such a manner as would require the
Issuers or any of their subsidiaries to register as an investment company under the Investment
Company Act.
(j) No Stabilization or Manipulation; Compliance with Regulation M. The Issuers will not
take, directly or indirectly, any action designed to or that might be reasonably expected to cause
or result in stabilization or manipulation of the price of the Securities or any other reference
security, whether to facilitate the sale or resale of the Securities or otherwise, and
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the Issuers will, and shall cause each of their affiliates to, comply with all applicable
provisions of Regulation M. If the limitations of Rule 102 of Regulation M (“Rule 102”) do not
apply with respect to the Securities or any other reference security pursuant to any exception set
forth in section (d) of Rule 102, then promptly upon notice from the Representatives (or, if later,
at the time stated in the notice), the Issuers will, and shall cause each of their affiliates to,
comply with Rule 102 as though such exception were not available but the other provisions of Rule
102 (as interpreted by the Commission) did apply.
(k) Conditions Precedent. The Issuers will do and perform all things required to be done and
performed under this Agreement by them prior to the Closing Date in order to satisfy all conditions
precedent on their part to the delivery of the Securities.
(l) DTC Book-Entry. The Issuers will comply with their obligations under the letter of
representations to DTC relating to the approval of the Securities by DTC for “book-entry” transfer
and to use their best efforts to obtain approval of the Securities by DTC for “book-entry”
transfer.
(m) Financial Statements. Prior to the Closing Date, the Company will furnish without charge
to the Initial Purchasers, (i) as soon as they have been prepared by the Company, a copy of any
regularly prepared internal financial statements of the Company and the Subsidiaries for any period
subsequent to the period covered by the financial statements appearing in the Pricing Disclosure
Package and the Final Offering Memorandum, (ii) all other reports and other communications
(financial or otherwise) that the Company mails or otherwise makes available to its security
holders and (iii) such other information as the Initial Purchasers shall reasonably request.
(n) No Integration. The Issuers will not, and will not permit any of their subsidiaries to,
sell, offer for sale or solicit offers to buy any security (as defined in the Securities Act) that
would be integrated with the sale of the Securities in a manner that would require the registration
under the Securities Act of the sale of the Securities to the Initial Purchasers or any Eligible
Purchasers.
(o) No Resales. The Issuers will not, and will not permit any of their subsidiaries to, and
will use their commercially reasonable efforts to cause their other affiliates (as defined in Rule
144 under the Securities Act) not to, resell any of the Securities that have been reacquired by any
of them.
(p) No General Solicitation. The Issuers will not engage, and will not allow any of their
subsidiaries to engage, and will use their commercially reasonable efforts to cause their other
affiliates and any person acting on their behalf (other than, in any case, the Initial Purchasers
and any of their affiliates, as to whom the Issuers make no covenant) not to engage, in any form of
general solicitation or general advertising (within the meaning of Regulation D under the
Securities Act) in connection with any offer or sale of the Securities in the United States prior
to the effectiveness of a registration statement with respect to the Exchange Notes.
(q) No Directed Selling Efforts. The Issuers will not engage, and will not allow any of their
subsidiaries to engage, and will use their commercially reasonable efforts to
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cause their other affiliates and any person acting on their behalf (other than, in any case,
the Initial Purchasers and any of their affiliates, as to whom the Issuers make no covenant) not to
engage, in any directed selling effort with respect to the Securities, and to comply with the
offering restrictions requirement of Regulation S under the Securities Act. Terms used in this
paragraph have the meanings given to them by Regulation S.
(r) Compliance with Regulation S. The Issuers will not register any transfer of the
Securities not made in accordance with the provisions of Regulation S (unless otherwise in
compliance with the Securities Act) and not, except in accordance with the provisions of Regulation
S, if applicable, issue any such Securities in the form of definitive securities in connection with
the Securities offered and sold in an offshore transaction (as defined in Regulation S).
(s) Rule 144A Disclosure. From and after the Closing Date, for so long as any of the Original
Notes remain outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under
the Securities Act and during any period in which the Issuer is not subject to Section 13 or 15(d)
of the Exchange Act, the Issuers will make available upon request the information required by Rule
144A(d)(4) under the Securities Act to (i) any holder or beneficial owner of Notes in connection
with any sale of such Notes and (ii) any prospective purchaser of such Notes from any such holder
or beneficial owner designated by the holder or beneficial owner. The Issuers will pay the
expenses of preparing, printing and distributing such documents.
(t) Compliance with Registration Rights Agreement. The Issuers will comply with all of their
agreements set forth in the Registration Rights Agreement.
(u) No Distribution of Offering Materials. The Issuers will not, and will use their
commercially reasonable efforts to cause their affiliates or anyone acting on their or their
affiliates’ behalf (other than the Initial Purchasers and their affiliates, as to whom the Issuers
make no covenant) not to, distribute prior to the Closing Date any offering material in connection
with the offer and sale of the Securities other than the Preliminary Offering Memorandum, the
Pricing Supplement and the Final Offering Memorandum. Before communicating any Issuer Written
Communication to any person other than the Initial Purchasers and their counsel, the Company will
furnish to the Representatives and counsel for the Initial Purchasers a copy of such written
communication for review and will not communicate to any such third party any such written
communication to which the Representative reasonably objects.
(v) No Registration under the Investment Company Act. During the period of one year after
the Closing Date or, if earlier, until such time as the Securities are no longer restricted
securities (as defined in Rule 144 under the Securities Act), the Issuers will not be or become a
closed-end investment company required to be registered, but not registered, under the Investment
Company Act of 1940, as amended.
(w) No Manipulation. In connection with the offering of the Original Notes, until the
Representatives shall have notified the Issuers of the completion of the distribution of the
Original Notes, the Issuers will not, and will use their commercially reasonable efforts to cause
their affiliates (as such term is defined in Rule 501(b) of Regulation D under the Securities Act)
not to, either alone or with one or more other persons, bid for or purchase for any account in
which they or any of their affiliates have a beneficial interest, and none of the Issuers will, and
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the Issuers shall use their commercially reasonable efforts to cause their affiliates not to,
make bids or purchases for the purpose of creating actual or apparent active trading in, or raising
the price of, the Original Notes.
The Representatives, on behalf of the Initial Purchasers, may, in their sole discretion, waive
in writing the performance by the Company of any one or more of the foregoing covenants or extend
the time for their performance.
Section 4. Payment of Expenses. The Issuers agree to pay all costs, fees and expenses
incurred in connection with the performance of their obligations hereunder and in connection with
the transactions contemplated hereby, including without limitation (i) all expenses incident to the
issuance and delivery of the Securities (including all printing and engraving costs), (ii) all fees
and expenses of the Trustee, including fees and expenses of counsel for the Trustee, (iii) all
necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the
Securities to the Initial Purchasers, (iv) all fees and expenses of the Company’s counsel,
independent public or certified public accountants and other advisors, (v) all costs and expenses
incurred in connection with the preparation, printing, shipping and distribution of the Preliminary
Offering Memorandum, the Pricing Supplement, the Final Offering Memorandum, the Registration Rights
Agreement, any Issuer Written Communication prepared by or on behalf of, used by, or referred to by
the Company, and any amendments and supplements thereto, and this Agreement, (vi) upon receipt of
such evidentiary documentation as the Company shall reasonably request, reasonable attorneys’ fees
and expenses incurred by the Company or the Initial Purchasers in connection with qualifying or
registering (or obtaining exemptions from the qualification or registration of) all or any part of
the Securities for offer and sale under the state securities or blue sky laws, and, if requested by
the Representatives, preparing and printing a “Blue Sky Survey” or memorandum and any supplements
thereto, advising the Initial Purchasers of such qualifications, registrations and exemptions,
which fees and expenses shall not exceed $20,000, (vii) the filing fees incident to, and the
reasonable fees and expenses of counsel for the Initial Purchasers in connection with, the FINRA’s
review, if any, and approval of the Initial Purchasers’ participation in the offering and
distribution of the Securities, (viii) 50% of the costs and expenses of the Company relating to
investor presentations on any “road show” undertaken in connection with the marketing of the
offering of the Securities, including, without limitation, expenses associated with the preparation
or dissemination of any electronic road show, expenses associated with the production of road show
slides and graphics, fees and expenses of any consultants engaged in connection with the road show
presentations with the prior approval of the Company, travel and lodging expenses of the
representatives, employees and officers of the Company and of the Representatives and any such
consultants, and the cost of any aircraft chartered in connection with the road show, (ix) the
inclusion of the Securities in the book-entry system of The Depository Trust Company, (x) the
rating of the Securities by rating agencies and (xi) the performance by the Company of its other
obligations under the Note Documents. Upon the consummation of the Transactions contemplated
hereby to be consummated on or by the Closing Date, the Initial Purchasers shall pay to the Company
either by wire transfer of immediately available funds, by direct payment to vendors or by credit
against other monies owed to the Initial Purchasers, such method to be selected by the Initial
Purchasers in their sole discretion, an amount equal to the expenses described in Section 4(viii).
Except as provided in this Section 4, Section 6, Section 7
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and Section 8 hereof, the Initial Purchasers shall pay their own expenses, including the fees
and disbursements of their counsel.
Section 5. Conditions of the Obligations of the Initial Purchasers. The obligations of the
several Initial Purchasers to purchase and pay for the Securities as provided herein on the Closing
Date shall be subject to the accuracy of the representations and warranties on the part of the
Issuers set forth in Section 1(i) hereof as of the date hereof and as of the Closing Date as though
then made, to the timely performance by the Issuers of their covenants and other obligations
hereunder, and to each of the following additional conditions:
(a) Accountants’ Comfort Letter.
(i) Prior to the Applicable Time, the Representatives shall have received from
BDO Xxxxxxx, LLP, independent public or certified public accountants for the
Company, a letter dated the date hereof addressed to the Initial Purchasers, in form
and substance satisfactory to the Representatives (i) containing statements and
information of the type ordinarily included in accountants’ “comfort letters” to
initial purchasers, delivered according to Statement of Auditing Standards No. 72
(or any successor bulletin), with respect to the audited and unaudited financial
statements and certain financial information contained in the Pricing Disclosure
Package (and the Representatives shall have received an additional three conformed
copies of such accountants’ letter for each of the several Initial Purchasers), and
(ii) confirming that they are (A) independent public or certified public accountants
with respect to the Company as required by the Securities Act and the Exchange Act
and (B) in compliance with the applicable requirements relating to the qualification
of accountants under Rule 2-01 of Regulation S-X. The Representatives shall have
received from BDO Xxxxxxx, LLP, independent public or certified public accountants
for the Company, a letter dated the date hereof addressed to the Initial Purchasers,
in form and substance satisfactory to the Representatives (i) containing statements
and information of the type ordinarily included in accountants’ “comfort letters” to
initial purchasers, delivered according to Statement of Auditing Standards No. 72
(or any successor bulletin), with respect to the audited and unaudited financial
statements and certain financial information contained in the Final Offering
Memorandum (and the Representatives shall have received an additional three
conformed copies of such accountants’ letter for each of the several Initial
Purchasers), and (ii) confirming that they are (A) independent public or certified
public accountants with respect to the Company as required by the Securities Act and
the Exchange Act and (B) in compliance with the applicable requirements relating to
the qualification of accountants under Rule 2-01 of Regulation S-X.
(ii) Prior to the Applicable Time, the Representatives shall have received from
KPMG LLP, independent public or certified public accountants for Matria Healthcare,
Inc. (“Matria”), a letter dated the date hereof addressed to the Initial Purchasers,
in form and substance satisfactory to the Representatives (i) containing statements
and information of the type ordinarily included in accountants’ “comfort letters” to
initial purchasers, delivered according to Statement of
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Auditing Standards No. 72 (or any successor bulletin), with respect to the audited
and unaudited financial statements and certain financial information of Matria
contained in the Pricing Disclosure Package (and the Representatives shall have
received an additional three conformed copies of such accountants’ letter for each
of the several Initial Purchasers), and (ii) confirming that they are (A)
independent public or certified public accountants with respect to Matria as
required by the Securities Act and the Exchange Act and (B) in compliance with the
applicable requirements relating to the qualification of accountants under Rule 2-01
of Regulation S-X.
(iii) Prior to the Applicable Time, the Representatives shall have received
from Xxxxx Xxxxxxxx Zhonghua, independent public or certified public accountants for
ACON Laboratories, Inc. (“ACON”), a letter dated the date hereof addressed to the
Initial Purchasers, in form and substance satisfactory to the Representatives (i)
containing statements and information of the type ordinarily included in
accountants’ “comfort letters” to initial purchasers, delivered according to
Statement of Auditing Standards No. 72 (or any successor bulletin), with respect to
the audited and unaudited financial statements and certain financial information of
ACON contained in the Pricing Disclosure Package (and the Representatives shall have
received an additional three conformed copies of such accountants’ letter for each
of the several Initial Purchasers), and (ii) confirming that they are (A)
independent public or certified public accountants with respect to ACON as required
by the Securities Act and the Exchange Act and (B) in compliance with the applicable
requirements relating to the qualification of accountants under Rule 2-01 of
Regulation S-X.
(b) No Material Adverse Change or Ratings Agency Change. For the period from and after the
date of this Agreement through and including the Closing Date:
(i) in the judgment of the Representatives there shall not have occurred any
Material Adverse Change; and
(ii) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a possible
change that does not indicate the direction of the possible change, in the rating
accorded any securities of the Company or any of its subsidiaries by any “nationally
recognized statistical rating organization” as such term is defined for purposes of
Rule 436(g)(2) under the Securities Act.
(c) Opinion of Counsel for the Company. On the Closing Date the Representatives shall have
received the opinion of Xxxxx Xxxx LLP, counsel for the Company, substantially in the form attached
hereto as Exhibit A, dated as of such Closing Date, in form and substance satisfactory to the
Representatives and counsel to the Initial Purchasers (and the Representatives shall have received
an additional three signed copies of such counsel’s legal opinion for each of the several Initial
Purchasers). On the Closing Date the Representatives shall have received the opinion of local
counsel in the jurisdiction of organization of each Issuer not organized under the laws of
Massachusetts or Delaware, dated as of such Closing Date, in form and
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substance satisfactory to the Representatives and counsel to the Initial Purchasers (and the
Representatives shall have received an additional three signed copies of each such counsel’s legal
opinion for each of the several Initial Purchasers).
(d) Opinion of Counsel for the Initial Purchasers. On the Closing Date, the Representatives
shall have received the opinion of Xxxxxx Xxxxxx & Xxxxxxx llp, counsel for the Initial
Purchasers, in form and substance satisfactory to the Initial Purchasers, dated as of such Closing
Date.
(e) Officers’ Certificate. On the Closing Date, the Representatives shall have received a
written certificate executed by the Chief Executive Officer or President of the Company and the
Chief Financial Officer of the Company, dated as of the Closing Date, to the effect set forth in
subsection (b)(ii) of this Section 5, and further to the effect that:
(i) for the period from and including the date of this Agreement and through
and including the Closing Date, there has not occurred any Material Adverse Change;
(ii) the representations, warranties and covenants of the Issuers set forth in
Section 1(i) of this Agreement are true and correct with the same force and effect
as though expressly made on and as of the Closing Date;
(iii) at August 31, 2009, (i) there was no change in the capital stock,
increase in long term debt, or decrease in consolidated net current assets or
stockholders’ equity of the Company and its subsidiaries on a consolidated basis as
compared with amounts shown in the June 30, 2009 unaudited condensed consolidated
balance sheet incorporated by reference in the Pricing Disclosure Package, or (ii)
for the period from July 1, 2009 to August 31, 2009, there were no decreases, as
compared to the corresponding period in the preceding year, in consolidated net
sales and operating income or increases in net loss, except in all instances for
changes, increases, or decrease that the Pricing Disclosure Package disclosed have
occurred or may occur; and
(iv) the Issuers have complied with all the agreements hereunder and satisfied
all the conditions on their part to be performed or satisfied hereunder at or prior
to the Closing Date.
(f) Bring-down Comfort Letters. On the Closing Date, the Representatives shall have received
from each of (i) BDO Xxxxxxx, LLP, independent public or certified public accountants for the
Company, (ii) KPMG LLP, independent public or certified public accountants for Matria and (iii)
Xxxxx Xxxxxxxx Zhonghua, independent public or certified public accountants for ACON, a letter
dated such date, in form and substance satisfactory to the Representatives, to the effect that they
reaffirm the statements made in the letter furnished by them pursuant to subsection (a) of this
Section 5, except that the specified date referred to therein for the carrying out of procedures
shall be no more than three business days prior to the Closing Date (and the Representatives shall
have received an additional three conformed copies of such accountants’ letter for each of the
several Initial Purchasers).
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(g) Free and Clear. The Certificate of Merger, as defined in the Acquisition Documents shall
have been filed with the Delaware Secretary of State. Any waiver of this condition shall require
the written consent of the Company.
(h) GE Consent. General Electric Capital Corporation as administrative agent under the
respective Senior Credit Documents shall have acknowledged in writing that the Inactive
Subsidiaries (as defined in the Senior Credit Documents) may issue Guarantees and that it has
received all notices required under the Senior Credit Documents. Any waiver of this condition shall
require the written consent of the Company.
(i) Additional Documents. The Issuers and the Trustee shall have executed and delivered the
Indenture and the Securities and the Initial Purchasers shall have received copies thereof. The
Issuers shall have executed and delivered the Registration Rights Agreement and the Initial
Purchasers shall have received copies thereof. On or before the Closing Date, the Representatives
and counsel for the Initial Purchasers shall have received such information, documents and opinions
as they may reasonably request for the purposes of enabling them to pass upon the issuance and sale
of the Securities as contemplated herein, or the satisfaction of any of the conditions or
agreements herein contained; and all proceedings taken by the Issuers in connection with the
issuance and sale of the Securities as contemplated herein and in connection with the other
transactions contemplated by this Agreement shall be reasonably satisfactory in form and substance
to the Representatives and counsel for the Initial Purchasers.
If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Representatives by notice to the Company at any
time on or prior to the Closing Date, which termination shall be without liability on the part of
any party to any other party, except that Section 4, Section 6, Section 7 and Section 8 shall at
all times be effective and shall survive such termination.
Section 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by
the Representatives pursuant to Section 5 or Section 10, or if the sale to the Initial Purchasers
of the Securities on the Closing Date is not consummated because of any refusal, inability or
failure on the part of the Company to perform any agreement herein or to comply with any provision
hereof, the Company agrees to reimburse the Representatives and the other Initial Purchasers (or
such Initial Purchasers as have terminated this Agreement with respect to themselves), severally,
upon demand for all out-of-pocket expenses that shall have been reasonably incurred by the
Representatives and the Initial Purchasers in connection with the proposed purchase and the
offering and sale of the Securities, including but not limited to fees and disbursements of
counsel, printing expenses, travel expenses, postage, facsimile and telephone charges.
Section 7. Indemnification.
(a) Indemnification of the Initial Purchasers. The Issuers jointly and severally agree to
indemnify and hold harmless each Initial Purchaser, its officers and employees, and each person, if
any, who controls any Initial Purchaser within the meaning of the Securities Act or the Exchange
Act against any loss, claim, damage, liability or expense, as incurred, to which such Initial
Purchaser or such officer, employee or controlling person may become subject, under the Securities
Act, the Exchange Act, other federal or state statutory law or regulation, or at
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common law or otherwise (including in settlement of any litigation), insofar as such loss,
claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises
out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact
contained in the Pricing Disclosure Package, any Road Show, any Issuer Written Communication that
the Issuers have used or referred to or the Final Offering Memorandum (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading; or (ii) any act or failure to act or any alleged act or failure to act by any
Initial Purchaser in connection with, or relating in any manner to, the Securities or the offering
contemplated hereby, and which is included as part of or referred to in any loss, claim, damage,
liability or action arising out of or based upon any matter covered by clause (i) above, provided
that the Issuers shall not be liable under this clause (ii) to any Initial Purchaser, to the extent
that a court of competent jurisdiction shall have determined by a final judgment that such loss,
claim, damage, liability or action resulted directly from any such acts or failures to act
undertaken or omitted to be taken by such Initial Purchaser through its bad faith or willful
misconduct and to reimburse each Initial Purchaser and each such officer, employee and controlling
person for any and all expenses (including the fees and disbursements of counsel chosen by the
Representatives) as such expenses are reasonably incurred by such Initial Purchaser or such
officer, employee or controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, arising out of or based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Issuers by the Representatives expressly for
use in the Pricing Disclosure Package, any Issuer Written Communication (including, but not limited
to, any Road Show) or the Final Offering Memorandum (or any amendment or supplement thereto), it
being understood and agreed that the only such information furnished by the Representatives to the
Issuers consists of the information described in subsection (b) below. The indemnity agreement set
forth in this Section 7(a) shall be in addition to any liabilities that the Issuers may otherwise
have. “Road Show” means each “road show” (as defined in Rule 433 under the Securities Act), if
any, related to the offering of the Securities contemplated hereby that is a “written
communication” (as defined in Rule 405 under the Securities Act) as if this offering were a
registered offering.
(b) Indemnification of the Issuers and their Directors and Officers. Each Initial Purchaser
agrees, severally and not jointly, to indemnify and hold harmless the Issuers, each of their
directors (as defined in Rule 405 under the Securities Act), each of their officers (as defined in
Rule 405 under the Securities Act) and each person, if any, who controls any Issuer within the
meaning of the Securities Act or the Exchange Act, against any loss, claim, damage, liability or
expense, as incurred, to which any Issuer, or any such director, officer, manager, member, partner,
other person having similar positions or controlling person may become subject, under the
Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at
common law or otherwise (including in settlement of any litigation), insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or
is based upon any untrue statement or alleged untrue statement of a material fact contained in the
Pricing Disclosure Package, any Issuer Written Communication (including, but
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not limited to, any Road Show) that the Issuers have used or referred to or the Final Offering
Memorandum (or any amendment or supplement thereto), or arises out of or is based upon the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein (in the case of the Pricing Disclosure Package, any such Issuer Written
Communication, or the Final Offering Memorandum, in the light of the circumstances under which they
were made) not misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made in the Pricing
Disclosure Package, such Issuer Written Communication that the Issuers have used or referred to, or
the Final Offering Memorandum (or such amendment or supplement thereto), in reliance upon and in
conformity with written information furnished to the Issuers by the Representatives expressly for
use therein; and to reimburse the Issuers, or any such director, officer, manager, member, partner,
other person having similar positions or controlling person for any and all expenses (including the
fees and disbursements of counsel chosen by them) as such expenses are reasonably incurred by any
Issuer, or any such director, officer, manager, member, partner, other person having similar
positions or controlling person in connection with investigating, defending, settling, compromising
or paying any such loss, claim, damage, liability, expense or action. The Issuers hereby
acknowledge that the only information that the Representatives and the Initial Purchasers have
furnished to the Issuers expressly for use in the Pricing Disclosure Package, any Issuer Written
Communication (including, but not limited to, any Road Show) or the Final Offering Memorandum (or
any amendment or supplement thereto) are the statements set forth in the second paragraph, the
second sentence of the third paragraph, and the fourth, fifth and tenth paragraphs under the
caption “Plan of Distribution” in the Pricing Disclosure Package and the Final Offering Memorandum.
The indemnity agreement set forth in this Section 7(b) shall be in addition to any liabilities
that each Initial Purchaser may otherwise have.
(c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 7 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 7, notify the indemnifying party in writing of the commencement thereof, but the
omission so to notify the indemnifying party will not relieve the indemnifying party from any
liability which it may have to any indemnified party for contribution under Section 8 below or
otherwise under the indemnity agreement contained in this Section 7, except to the extent such
indemnifying party is materially prejudiced as a proximate result of such failure. In case any
such action is brought against any indemnified party and such indemnified party seeks or intends to
seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate
in, and, to the extent that it shall elect, jointly with all other indemnifying parties similarly
notified, by written notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party; provided, however, if the defendants in any such action
include both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded that a conflict may arise between the positions of the indemnifying party and
the indemnified party in conducting the defense of any such action or that there may be legal
defenses available to it and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, the indemnified party or parties shall have the right to
select separate counsel to assume such legal defenses and to otherwise participate in the defense
of such action on behalf of such indemnified party or parties. Upon
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receipt of notice from the indemnifying party to such indemnified party of such indemnifying
party’s election so to assume the defense of such action and approval by the indemnified party of
counsel (which shall not be unreasonably withheld, delayed or conditioned), the indemnifying party
or parties will not be liable to such indemnified party under this Section 7 for any legal or other
expenses subsequently incurred by such indemnified party in connection with the defense thereof
unless (i) the indemnified party shall have employed separate counsel in accordance with the
proviso to the preceding sentence (it being understood, however, that the indemnifying party shall
not be liable for the fees and expenses of more than one separate firm of attorneys (together with
local counsel), representing the indemnified parties who are parties to such action), which counsel
(together with any local counsel) for the indemnified parties shall be selected by the
Representatives (in the case of counsel for the indemnified parties referred to in Section 7(a)
above) or by the Company (in the case of counsel for the indemnified parties referred to in Section
7(b) above)), (ii) the indemnifying party shall not have employed counsel reasonably satisfactory
to the indemnified party to represent the indemnified party within a reasonable time after notice
of commencement of the action or (iii) the indemnifying party authorizes the indemnified party to
employ separate counsel at the indemnifying party’s expense, in each of which cases the reasonable
fees and expenses of counsel shall be at the expense of the indemnifying party and shall be paid as
they are incurred.
(d) Settlements. The indemnifying party under this Section 7 shall not be liable for any
settlement of any proceeding effected without its written consent (such consent not to be
unreasonably withheld, delayed or conditioned), but if settled with such consent or if there be a
final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party
against any loss, claim, damage, liability or expense (to the extent provided in this Section 7) by
reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the indemnified party for
fees and expenses of counsel as contemplated by Section 7(c) hereof, the indemnifying party agrees
that it shall be liable (to the extent provided in this Section 7) for any settlement of any
proceeding effected without its written consent if (i) such settlement is entered into more than 30
days after receipt by such indemnifying party of the aforesaid request (including documentation of
such fees and expenses reasonably satisfactory to the indemnifying party) and (ii) such
indemnifying party shall not have reimbursed the indemnified party in accordance with such request
(to the extent required by this Section 7) prior to the date of such settlement. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement,
compromise or consent to the entry of judgment in any pending or threatened action, suit or
proceeding in respect of which any indemnified party is or could have been a party and indemnity
was or could have been sought hereunder by such indemnified party, unless such settlement,
compromise or consent includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such action, suit or proceeding and does not
include a statement as to or an admission of fault, culpability or a failure to act, by or on
behalf of any indemnified party.
Section 8. Contribution. If the indemnification provided for in Section 7 is for any reason
held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
-30-
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses
referred to therein (i) in such proportion as is appropriate to reflect the relative benefits
received by the Issuers, on the one hand, and the Initial Purchasers, on the other hand, from the
offering of the Securities pursuant to this Agreement 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 the
Issuers, on the one hand, and the Initial Purchasers, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as
well as any other relevant equitable considerations. The relative benefits received by the
Issuers, on the one hand, and the Initial Purchasers, on the other hand, in connection with the
offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective
proportions as the total net proceeds from the offering of the Securities pursuant to this
Agreement (before deducting expenses) received by the Issuers, and the total initial purchasers’
discounts and commissions received by the Initial Purchasers hereunder. The relative fault of the
Issuers, on the one hand, and the Initial Purchasers, on the other hand, shall be determined by
reference to, among other things, whether any such untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to information supplied by
the Issuers, on the one hand, or the Initial Purchasers, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.
The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 7(c), any legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim. The provisions set forth in Section 7(c) with
respect to notice of commencement of any action shall apply if a claim for contribution is to be
made under this Section 8; provided, however, that no additional notice shall be required with
respect to any action for which notice has been given under Section 7(c) for purposes of
indemnification.
The Issuers and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Initial
Purchasers were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to in this Section 8.
Notwithstanding the provisions of this Section 8, no Initial Purchaser shall be required to
contribute any amount in excess of the initial purchasers’ discounts and commissions received by
such Initial Purchaser in connection with the Securities purchased by it. 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 Initial Purchasers’ obligations to contribute pursuant to this Section 8 are several, and not
joint, in proportion to their respective purchase commitments as set forth opposite their
respective names on Schedule A. For purposes of this Section 8, each officer and employee
of an Initial Purchaser and each person, if any, who controls an Initial Purchaser within the
meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as
such Initial Purchaser, and each director of the Issuers, each officer of the Issuers, and each
person, if
-31-
any, who controls the Issuers with the meaning of the Securities Act and the Exchange Act
shall have the same rights to contribution as the Issuers.
Section 9. Default of One or More of the Several Initial Purchasers. If, on the Closing Date,
any one or more of the several Initial Purchasers shall fail or refuse to purchase Securities that
it or they have agreed to purchase hereunder on such date, and the aggregate principal amount of
Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or
refused to purchase does not exceed 10% of the aggregate principal amount of the Securities to be
purchased on such date, the Representatives may make arrangements satisfactory to the Issuers for
the purchase of such Securities by other persons, including any of the Initial Purchasers, but if
no such arrangements are made by the Closing Date, the other Initial Purchasers shall be obligated,
severally and not jointly, in the proportions that the principal amount of Securities set forth
opposite their respective names on Schedule A bears to the aggregate principal amount of
Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or in such
other proportions as may be specified by the Representatives with the consent of the non-defaulting
Initial Purchasers, to purchase the Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on such date. If, on the Closing Date, any one
or more of the Initial Purchasers shall fail or refuse to purchase Securities and the aggregate
principal amount of Securities with respect to which such default occurs exceeds 10% of the
aggregate principal amount of Securities to be purchased on such date, and arrangements
satisfactory to the Representatives and the Issuers for the purchase of such Securities are not
made within 48 hours after such default, this Agreement shall terminate without liability of any
party to any other party except that the provisions of Section 4, Section 7 and Section 8 shall at
all times be effective and shall survive such termination. In any such case either the
Representatives or the Issuers shall have the right to postpone the Closing Date, but in no event
for longer than seven days in order that the required changes, if any, to the Final Offering
Memorandum or any other documents or arrangements may be effected.
As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person
substituted for a defaulting Initial Purchaser under this Section 9. Any action taken under this
Section 9 shall not relieve any defaulting Initial Purchaser from liability in respect of any
default of such Initial Purchaser under this Agreement.
Section 10. Termination of this Agreement. Prior to the purchase of the Securities by the
Initial Purchasers on the Closing Date this Agreement may be terminated by the Representatives by
notice given to the Company if at any time (i) trading or quotation in any of the Company’s
securities shall have been suspended or limited by the Commission or by any exchange, or trading in
securities generally on any exchange shall have been suspended or limited, the settlement of such
trading shall have been materially disrupted or minimum or maximum prices shall have been generally
established on any of such stock exchanges by such exchange, the Commission or the FINRA; (ii) a
general banking moratorium shall have been declared by any of federal, New York, or Delaware
authorities; (iii) there shall have occurred any outbreak or escalation of national or
international hostilities or any crisis or calamity, or any change in the United States or
international financial markets, or any substantial change or development involving a prospective
substantial change in United States’ or international political, financial or economic conditions,
as in the judgment of the Representatives is material and adverse and
-32-
makes it impracticable to market the Securities in the manner and on the terms described in
the Pricing Disclosure Package and the Final Offering Memorandum or to enforce contracts for the
sale of securities; (iv) in the judgment of the Representatives there shall have occurred any
Material Adverse Change; or (v) the Company shall have sustained a loss by strike, fire, flood,
earthquake, accident or other calamity of such character as in the judgment of the Representatives
may interfere materially with the conduct of the business and operations of the Company regardless
of whether or not such loss shall have been insured. Any termination pursuant to this Section 10
shall be without liability on the part of (a) the Issuers to any Initial Purchaser, except that the
Issuers shall be obligated to reimburse the expenses of the Representatives and the Initial
Purchasers pursuant to Sections 4 and 6 hereof, (b) any Initial Purchaser to the Issuers, or (c) of
any party hereto to any other party except as aforesaid and except that the provisions of Section 7
and Section 8 shall at all times be effective and shall survive such termination.
Section 11. No Advisory or Fiduciary Relationship. Each of the Issuers acknowledges and agrees
that (a) the purchase and sale of the Securities sold by such party pursuant to this Agreement,
including the determination of the public offering price of the Securities and any related
discounts and commissions, are an arm’s-length commercial transaction between such party, on the
one hand, and the several Initial Purchasers, on the other hand, (b) in connection with the
offering contemplated hereby and the process leading to such transaction each Initial Purchaser is
and has been acting solely as a principal and is not the agent or fiduciary of such party, or its
stockholders, creditors or employees, as applicable, or any other party, (c) no Initial Purchaser
has assumed or will assume an advisory or fiduciary responsibility in favor of such party with
respect to the offering contemplated hereby or the process leading thereto (irrespective of whether
such Initial Purchaser has advised or is currently advising any Issuer on other matters) and no
Initial Purchaser has any obligation to such party with respect to the offering contemplated hereby
except the obligations expressly set forth in this Agreement, (d) the Initial Purchasers and their
respective affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of the Issuers, and (e) the Initial Purchasers have not provided any legal,
accounting, regulatory or tax advice with respect to the offering contemplated hereby and such
party has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed
appropriate.
Section 12. Certain Acknowledgments. The Issuers understand that each of the Initial
Purchasers is a full service securities firm and as such from time to time, subject to applicable
securities laws, may effect transactions for its own account or the account of its customers and
hold long or short positions in debt or equity securities of the companies that may be the subject
of the transactions contemplated by this Agreement.
Each Initial Purchaser, severally and not jointly, represents and warrants to and agrees with
the Issuers that:
(a) in relation to each Member State of the European Economic Area (namely, the European
Union, Iceland, Norway and Liechtenstein) which has implemented the Prospectus Directive (each, a
Relevant Member State), with effect from and including the date on which the Prospectus Directive
is implemented in that Relevant Member State (the Relevant Implementation Date), it has not made
and will not make an offer of notes to the public in that Relevant Member State prior to the
publication of a prospectus in relation to the notes which has
-33-
been approved by the competent authority in that Relevant Member State or, where appropriate,
approved in another Relevant Member State and notified to the competent authority in that Relevant
Member State, all in accordance with the Prospectus Directive, except that it may, with effect from
and including the Relevant Implementation Date, make an offer of notes to the public in that
Relevant Member State at any time:
(i) to legal entities which are authorized or regulated to operate in the financial
markets or, if not so authorized or regulated, whose corporate purpose is solely to invest
in securities;
(ii) to any legal entity which has two or more of (1) an average of at least 250
employees during the last financial year; (2) a total balance sheet of more than €43,000,000
and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or
consolidated accounts;
(iii) to fewer than 100 natural or legal persons (other than qualified investors as
defined in the Prospectus Directive); or
(iv) in any other circumstances which do not require the publication by the issuer of a
prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an “offer of notes to the public” in relation to
any notes in any Relevant Member State means the communication in any form and by any means of
sufficient information on the terms of the offer and the notes to be offered so as to enable an
investor to decide to purchase or subscribe for the notes, as the same may be varied in that Member
State by any measure implementing the Prospectus Directive in that Member State, and the expression
“Prospectus Directive” means Directive 2003/71/EC and includes any relevant implementing measure in
each Relevant Member State.
(b) it has only communicated or caused to be communicated and will only communicate or cause
to be communicated an invitation or inducement to engage in investment activity (within the meaning
of Section 21 of the Financial Services and Markets Xxx 0000, or FSMA) received by it in connection
with the issue or sale of the notes in circumstances in which Section 21(1) of the FSMA does not
apply to the issuer;
(c) it has complied and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the notes in, from or otherwise involving the United Kingdom;
(d) the notes have not been and will not be registered under the Financial Instruments and
Exchange Law of Japan (the Financial Instruments and Exchange Law) and it will not offer or sell
any notes, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan
(which term as used herein means any person resident in Japan, including any corporation or other
entity organized under the laws of Japan), or to others for re-offering or resale, directly or
indirectly, in Japan or to a resident of Japan, except pursuant to an exemption from the
-34-
registration requirements of, and otherwise in compliance with, the Financial Instruments and
Exchange Law and any other applicable laws, regulations and ministerial guidelines of Japan;
(e) the Notes may not be offered or sold by means of any document other than (i) in
circumstances which do not constitute an offer to the public within the meaning of the Companies
Ordinance (Cap.32, Laws of Hong Kong), or (ii) to “professional investors” within the meaning of
the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules made thereunder, or
(iii) in other circumstances which do not result in the document being a “prospectus” within the
meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), and no advertisement, invitation or
document relating to the Notes may be issued or may be in the possession of any person for the
purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the
contents of which are likely to be accessed or read by, the public in Hong Kong (except if
permitted to do so under the laws of Hong Kong) other than with respect to Notes which are or are
intended to be disposed of only to persons outside Hong Kong or only to “professional investors”
within the meaning of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any
rules made thereunder;
(f) the offering memorandum and any other document or material in connection with the offer or
sale, or invitation for subscription or purchase, of the Notes may not be circulated or
distributed, nor may the Notes be offered or sold, or be made the subject of an invitation for
subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to
an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of
Singapore (the “SFA”), (ii) to a relevant person, or any person pursuant to Section 275(1A), and in
accordance with the conditions, specified in Section 275 of the SFA or (iii) otherwise pursuant to,
and in accordance with the conditions of, any other applicable provision of the SFA; Where the
Notes are subscribed or purchased under Section 275 by a relevant person which is: (a) a
corporation (which is not an accredited investor) the sole business of which is to hold investments
and the entire share capital of which is owned by one or more individuals, each of whom is an
accredited investor; or (b) a trust (where the trustee is not an accredited investor) whose sole
purpose is to hold investments and each beneficiary is an accredited investor, shares, debentures
and units of shares and debentures of that corporation or the beneficiaries’ rights and interest in
that trust shall not be transferable for 6 months after that corporation or that trust has acquired
the notes under Section 275 except: (1) to an institutional investor under Section 274 of the SFA
or to a relevant person, or any person pursuant to Section 275(1A), and in accordance with the
conditions, specified in Section 275 of the SFA; (2) where no consideration is given for the
transfer; or (3) by operation of law; and
(g) it intends to comply with all applicable laws and regulations in each jurisdiction in
which it acquires, offers, sells or delivers the Notes or has in its possession or distributes the
Pricing Disclosure Package and the Final Offering Memorandum.
Section 13. Representations and Indemnities to Survive Delivery. The respective indemnities,
contribution obligations, agreements, representations, warranties and other statements of the
Issuers, of their officers and of the several Initial Purchasers set forth in or made pursuant to
this Agreement will remain in full force and effect, regardless of any investigation made by or on
behalf of any Initial Purchaser or the Issuers or any of their partners, officers or
-35-
directors or any controlling person, as the case may be, and, anything herein to the contrary
notwithstanding, will survive delivery of and payment for the Securities sold hereunder and any
termination of this Agreement.
Section 14. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered or telecopied and confirmed to the parties hereto as follows:
If to the Representatives:
Xxxxxxxxx & Company, Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: General Counsel
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: General Counsel
with a copy to:
Xxxxxx Xxxxxx & Xxxxxxx llp
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxxx X. Xxxxxxx, Esq.
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxxx X. Xxxxxxx, Esq.
If to the Company:
Inverness Medical Innovations, Inc.
00 Xxxxxx Xxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Chief Executive Officer
00 Xxxxxx Xxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Chief Executive Officer
with a copy to:
Xxxxx Xxxx LLP
000 Xxxxxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxx X. Xxxxxxx, Esq.
000 Xxxxxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxx X. Xxxxxxx, Esq.
Any party hereto may change the address for receipt of communications by giving written notice to
the others.
Section 15. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, including any substitute Initial Purchasers pursuant to Section 9 hereof, and to
the benefit of the employees, officers, directors and controlling persons referred to in Section 7
and Section 8, and in each case their respective successors, and no other person will have
-36-
any right or obligation hereunder. The term “successors” shall not include any purchaser of
the Securities as such from any of the Initial Purchasers merely by reason of such purchase.
Section 16. Partial Unenforceability. The invalidity or unenforceability of any Section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other Section, paragraph or provision hereof. If any Section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.
Section 17. Governing Law Provisions. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to agreements made and to be
performed in such state. Any legal suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the
federal courts of the United States of America located in the Borough of Manhattan in the City of
New York or the courts of the State of New York in each case located in the Borough of Manhattan in
the City of New York and the appellate courts thereof (collectively, the “Specified Courts”), and
each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in
regard to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such
jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of
any process, summons, notice or document by mail to such party’s address set forth above shall be
effective service of process for any suit, action or other proceeding brought in any such court.
The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit,
action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and
agree not to plead or claim in any such court that any such suit, action or other proceeding
brought in any such court has been brought in an inconvenient forum.
With respect to any Related Proceeding, each party irrevocably waives, to the fullest extent
permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from
jurisdiction, service of process, attachment (both before and after judgment) and execution to
which it might otherwise be entitled in the Specified Courts, and with respect to any Related
Judgment, each party waives any such immunity in the Specified Courts or any other court of
competent jurisdiction, and will not raise or claim or cause to be pleaded any such immunity at or
in respect of any such Related Proceeding or Related Judgment, including, without limitation, any
immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as amended.
Section 18. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. This
Agreement may not be amended or modified unless in writing by all of the parties hereto, and no
condition herein (express or implied) may be waived unless waived in writing by each party whom the
condition is meant to benefit. The Section headings herein are for the convenience of the parties
only and shall not affect the construction or interpretation of this Agreement.
-37-
Each of the parties hereto acknowledges that it is a sophisticated business person who was
adequately represented by counsel during negotiations regarding the provisions hereof, including,
without limitation, the indemnification provisions of Section 7 and the contribution provisions of
Section 8, and is fully informed regarding said provisions. Each of the parties hereto further
acknowledges that the provisions of Sections 7 and 8 hereto fairly allocate the risks in light of
the ability of the parties to investigate the Issuers, their affairs and their business in order to
assure that adequate disclosure has been made in the Pricing Disclosure Package, any Issuer Written
Communication (including, but not limited to, any Road Show) and the Final Offering Memorandum (and
any amendments and supplements thereto), as required by the Securities Act and the Exchange Act.
-38-
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.
Very truly yours, INVERNESS MEDICAL INNOVATIONS, INC. |
||||
By: | /s/ Xxxxx X. Xxxxxx | |||
Name: | Xxxxx X. Xxxxxx | |||
Title: | Chief Financial Officer and Treasurer | |||
EXISTING GUARANTORS: | ||||||
ADVANTAGE DIAGNOSTICS CORPORATION ALERE CDM LLC ALERE LLC ALERE HEALTHCARE OF ILLINOIS, INC. ALERE HEALTH IMPROVEMENT COMPANY ALERE HEALTH SYSTEMS, INC. ALERE MEDICAL, INC. ALERE WELLOLOGY, INC. ALERE WOMEN’S AND CHILDREN’S HEALTH, LLC AMEDITECH INC. APPLIED BIOTECH, INC. BINAX, INC. BIOSITE INCORPORATED CHOLESTECH CORPORATION FIRST CHECK DIAGNOSTICS CORP. FIRST CHECK ECOM, INC. GENECARE MEDICAL GENETICS CENTER, INC. HEMOSENSE, INC. IM US HOLDINGS, LLC |
||||||
By: | /s/ Xxxxx X. Xxxxxx
|
|||||
Title (respectively): Vice President; Vice | ||||||
President, Finance; Vice President and | ||||||
Treasurer; Vice President, Finance; Vice | ||||||
President, Finance; Vice President and | ||||||
Treasurer; Vice President and Treasurer; | ||||||
Vice President, Finance; Vice President, | ||||||
Finance; General Manager; Vice President; | ||||||
Vice President, Finance; Vice President, | ||||||
Finance; Vice President, Finance and Chief | ||||||
Financial Officer; Vice President, Finance; | ||||||
Vice President; Vice President and | ||||||
Treasurer; Treasurer; President |
-2-
EXISTING GUARANTORS (continued): INNOVACON, INC. INNOVATIONS RESEARCH, LLC INNOVATIVE MOBILITY, LLC INSTANT TECHNOLOGIES, INC. INVERNESS MEDICAL, LLC INVERNESS MEDICAL — BIOSTAR INC. INVERNESS MEDICAL INNOVATIONS NORTH AMERICA, INC. INVERNESS MEDICAL INTERNATIONAL HOLDING CORP. ISCHEMIA TECHNOLOGIES, INC. IVC INDUSTRIES, INC. MATRITECH, INC. OSTEX INTERNATIONAL, INC. QUALITY ASSURED SERVICES, INC. REDWOOD TOXICOLOGY LABORATORY, INC. RTL HOLDINGS, INC. SELFCARE TECHNOLOGY, INC. XXXXXXX LABORATORIES, LLC ZYCARE, INC. |
||||||
By: | /s/ Xxxxx X. Xxxxxx
|
|||||
Title (respectively): Vice President, Finance; | ||||||
Vice President, Finance; Chief Financial | ||||||
Officer; Vice President, Finance; Vice | ||||||
President, Finance; Vice President, Finance; | ||||||
Vice President, Finance; President; Vice | ||||||
President, Finance; Vice President; Vice | ||||||
President, Finance; Vice President, Finance; | ||||||
Chief Financial Officer; Vice President, | ||||||
Finance; Vice President, Finance; Vice | ||||||
President, Finance; Vice President; Chief | ||||||
Financing Officer and Treasurer |
-3-
EXISTING GUARANTORS (continued): MATRIA OF NEW YORK, INC. |
||||
By: | /s/ Xxx Xxxxxxxxx | |||
Name: | Xxx Xxxxxxxxx | |||
Title: | President | |||
-4-
The foregoing Purchase Agreement is hereby
confirmed and accepted by the
Representatives in New York,
New York as of the date first above written.
confirmed and accepted by the
Representatives in New York,
New York as of the date first above written.
XXXXXXXXX & COMPANY, INC.
XXXXXXX, XXXXX & CO.
XXXXX FARGO SECURITIES, LLC
XXXXXXX, XXXXX & CO.
XXXXX FARGO SECURITIES, LLC
Acting as Representatives of the
several Initial Purchasers named in
the attached Schedule X.
several Initial Purchasers named in
the attached Schedule X.
XXXXXXXXX & COMPANY, INC.
By:
|
/s/ Xxxxx Xxxx
|
|||
Title: Managing Director |
XXXXXXX, XXXXX & CO.
By:
|
/s/ Xxxxxxx, Sachs & Co.
|
XXXXX FARGO SECURITIES, LLC
By:
|
/s/ Xxxxx Xxxxxxxx
|
|||
Title: Managing Director |
-5-
SCHEDULE A
Principal | ||||
Amount of | ||||
Notes | ||||
Initial Purchasers | to be Sold | |||
Xxxxxxxxx & Company, Inc. |
$ | 55,000,000 | ||
Xxxxxxx, Sachs & Co. |
$ | 30,000,000 | ||
Xxxxx Fargo Securities, LLC |
$ | 15,000,000 | ||
Total |
$ | 100,000,000 | ||
SCHEDULE B
Pricing Supplement
-2-
SCHEDULE C
None
-3-
SCHEDULE D
Guarantors
1. | Advantage Diagnostics Corporation | |
2. | Alere Health Improvement Company | |
3. | Alere Health Systems, Inc. | |
4. | Alere Healthcare of Illinois, Inc. | |
5. | Alere LLC | |
6. | Alere Medical, Inc. | |
7. | Alere Wellology, Inc. | |
8. | Alere Women’s and Children’s Health, LLC | |
9. | Ameditech Inc. | |
10. | Applied Biotech, Inc. | |
11. | Binax, Inc. | |
12. | Biosite Incorporated | |
13. | Cholestech Corporation | |
14. | First Check Diagnostics Corp. | |
15. | First Check Ecom, Inc. | |
16. | Hemosense, Inc. | |
17. | IM US Holdings, LLC | |
18. | Innovacon, Inc. | |
19. | Innovations Research, LLC | |
20. | Innovative Mobility, LLC | |
21. | Instant Technologies, Inc. | |
22. | Inverness Medical — Biostar Inc. | |
23. | Inverness Medical Innovations North America, Inc. | |
24. | Inverness Medical International Holding Corp. | |
25. | Inverness Medical, LLC | |
26. | Ischemia Technologies, Inc. | |
27. | IVC Industries, Inc. | |
28. | Matritech, Inc. | |
29. | Ostex International, Inc. | |
30. | Quality Assured Services, Inc. | |
31. | Redwood Toxicology Laboratory, Inc. | |
32. | RTL Holdings, Inc. | |
33. | Selfcare Technology, Inc. | |
34. | Xxxxxxx Laboratories, LLC | |
35. | Matria of New York, Inc. | |
36. | Alere CDM LLC | |
37. | Genecare Medical Genetics Center, Inc. | |
38. | ZyCare, Inc. |
Non-Guarantor Subsidiaries
1. | Inverness Medical Switzerland GmbH | |
2. | IMG Holding GmbH | |
3. | CLONDIAG GmbH | |
4. | Inverness Medical (UK) Holdings Limited | |
5. | Unipath Limited | |
6. | Inverness Medical Japan Co., Ltd. | |
7. | ABON Biopharm (Hangzhou) Co., Ltd. | |
8. | Inverness Medical Spain, S.L. | |
9. | BBI Holdings PLC | |
10. | Concateno PLC |
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EXHIBIT A
FORM OF NEGATIVE ASSURANCE LETTER OF XXXXX XXXX LLP
As counsel to the Company, we reviewed the Pricing Disclosure Package and the Final Offering
Memorandum, and participated in discussions with your representatives, those of counsel for the
several Initial Purchasers (the “Initial Purchasers”), and those of the Company and its independent
public accountants, at which the contents of the Pricing Disclosure Package and the Final Offering
Memorandum were discussed. Between the Applicable Time and the time of the delivery of this
letter, we participated in further discussions with your representatives, those of counsel for the
Initial Purchasers, and those of the Company and its accountants, and we reviewed certain
certificates of officers of the Company and public officials and letters from the Company’s
independent public accountants delivered to you today.
The purpose of our engagement was not to establish or to confirm factual matters set forth in
the Pricing Disclosure Package or the Final Offering Memorandum, and we have not undertaken any
obligation to verify independently any of the factual matters set forth in the Pricing Disclosure
Package or the Final Offering Memorandum (except as set forth below). Moreover, many of the
determinations required to be made in the preparation of the Pricing Disclosure Package and the
Final Offering Memorandum involve matters of a non-legal nature.
Subject to the foregoing, and although we are not passing upon and do not assume any
responsibility for the accuracy, completeness or fairness of the statements contained in the
Pricing Disclosure Package or the Final Offering Memorandum, except to the extent expressly set
forth in numbered paragraph 21 of our opinion letter to you of even date herewith, we confirm to
you that: (i) on the basis of the information that we gained in the course of performing the
services referred to above, nothing came to our attention that caused us to believe that (a) the
Pricing Disclosure Package, at the Applicable Time, contained an untrue statement of a material
fact or omitted to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading or (b) the Final Offering Memorandum,
as of its date, contained any untrue statement of a material fact or omitted to state any material
fact necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, and (ii) nothing came to our attention in the course of the procedures
described in the second sentence of the first paragraph of this letter that caused us to believe
that the Final Offering Memorandum, as of the date and time of delivery of this letter, contains
any untrue statement of a material fact or omits 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 we do not express any belief as to the financial statements and related
notes, financial statement schedules or financial or accounting data and information, contained in
or omitted from the Pricing Disclosure Package or the Final Offering Memorandum. In the first
sentence of this paragraph, “attention” refers to the conscious awareness of each of the lawyers of
our firm who actively participated in the preparation of the Pricing Disclosure Package and the
Final Offering Memorandum. In addition, we express no opinion or belief as to the conveyance of
the Pricing Disclosure Package or the information contained therein to investors.
Further, we confirm to you that each Incorporated Document, at the time such document was
filed with the Commission or at the time such document became effective, as applicable, appears to
us on its face to respond in all material respects to the requirements of the form on which the
Incorporated Document was filed, except that the foregoing statement does not address any
requirement relating to financial statements and related notes, financial statement schedules or
financial or accounting data and information contained in or omitted from any Incorporated
Document.
FORM OF LEGAL OPINION OF XXXXX XXXX LLP
[For purposes of this opinion, the term “Covered Guarantor” shall mean each Guarantor organized
under the laws of Delaware, New York or Massachusetts, and “Identified Contracts” shall mean
contracts included or incorporated by reference in the Pricing Disclosure Package and the Final
Offering Memorandum. Local counsel will give opinions 2, 4, 5, 7 and 18 (only as to local law and
charter documents) as to other Guarantors.]
1. The Company is validly existing as a corporation in good standing under Delaware law. The
Company has the corporate power to own its properties and conduct its business as described in the
Pricing Disclosure Package and the Final Offering Memorandum. The Company is duly qualified to do
business and in good standing as a foreign corporation in The Commonwealth of Massachusetts.
2. Each Covered Guarantor is validly existing as a corporation or limited liability company
(as applicable) in good standing under the laws of the state of its incorporation or formation.
Each Covered Guarantor has the corporate or limited liability company (as applicable) power to own
its properties and conduct its business as described in the Pricing Disclosure Package and the
Final Offering Memorandum.
3. The Company has the corporate power to execute and deliver the Purchase Agreement, the Base
Indenture, the Supplemental Indenture, the Registration Rights Agreement and the Original Notes and
to perform its obligations thereunder.
4. Each Covered Guarantor has the corporate or limited liability company (as applicable) power
to execute and deliver the Purchase Agreement, the Supplemental Indenture, the Registration Rights
Agreement and to perform its obligations thereunder, including its Guarantee.
5. The Purchase Agreement has been duly authorized, executed and delivered by the Company and
each Covered Guarantor.
6. Each of the Base Indenture and the Supplemental Indenture has been duly authorized,
executed and delivered by the Company.
7. The Supplemental Indenture and each Guarantee of a Covered Guarantor have been duly
authorized by the applicable Covered Guarantor, and the Supplemental Indenture has been duly
executed and delivered by each Covered Guarantor.
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8. The Base Indenture is a valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to the Enforceability Exceptions.
9. The Supplemental Indenture is a valid and legally binding obligation of each Issuer,
enforceable against such Issuer in accordance with its terms, subject to the Enforceability
Exceptions.
10. The Registration Rights Agreement has been duly authorized, executed and delivered by the
Company and each Covered Guarantor and the Registration Rights Agreement constitutes a valid and
legally binding obligation of the Company, enforceable against the Company in accordance with its
terms, subject to the Enforceability Exceptions.
11. The Original Notes have been duly authorized and executed by the Company.
12. When the Original Notes are duly authenticated by the Trustee and delivered by or on
behalf of the Company against payment therefor by the Initial Purchasers in accordance with the
terms of the Purchase Agreement and the Indenture, the Original Notes will be valid and legally
binding obligations of the Company, entitled to the benefits of the Indenture and enforceable
against the Company in accordance with their terms, subject to the Enforceability Exceptions.
13. When the Original Notes are duly authenticated by the Trustee and delivered by or on
behalf of the Company against payment therefor by the Initial Purchasers in accordance with the
terms of the Purchase Agreement and the Indenture, each Guarantee will be a valid and legally
binding obligation of the applicable Guarantor, enforceable against such Guarantor in accordance
with its terms, subject to the Enforceability Exceptions.
14. The execution and delivery by the Company of the Purchase Agreement, the Indenture, the
Registration Rights Agreement and the Original Notes, and the performance by the Company of its
obligations under the Purchase Agreement, the Indenture, the Registration Rights Agreement and the
Original Notes, including the issuance and sale by the Company of the Original Notes, will not
result in a breach of, or constitute a default (or an event that with notice or the lapse of time,
or both, would constitute a default) under, any Identified Contract.
15. The execution and delivery by the Company of the Purchase Agreement, the Indenture, the
Registration Rights Agreement and the Original Notes, and the performance by the Company of its
obligations under the Purchase Agreement, the Indenture, the Registration Rights Agreement and the
Original Notes, including the issuance and sale by the Company of the Original Notes, will not (a)
except as contemplated by the Registration Rights Agreement, require any consent, approval,
license, or exemption by, or order or authorization of, or filing, recording or registration by the
Company with, any Massachusetts or federal governmental authority or pursuant to the Delaware
General Corporation Law, except for filings pursuant to the Securities Act, the Exchange Act and
the Trust Indenture Act that have been made and are available on XXXXX and except for filings that
may be required under Section 13(a) or 15 of the Exchange Act regarding disclosure of the terms of
the Purchase Agreement, the Indenture, the Registration Rights Agreement, the Original Notes, the
Guarantees and the transactions contemplated thereby,
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(b) violate the Certificate of Incorporation or By-laws of the Company, or (c) violate the
Delaware General Corporation Law or any Massachusetts or federal statute, rule or regulation,
except that we express no opinion with respect to the anti-fraud provisions of federal securities
laws or with respect to state securities or Blue Sky laws.
16. The execution and delivery by each Guarantor of the Purchase Agreement, the Supplemental
Indenture and the Registration Rights Agreement, and the performance by each Guarantor of its
obligations under the Purchase Agreement, the Supplemental Indenture, Registration Rights Agreement
and its Guarantee, including the issuance by each Guarantor of its Guarantee, will not result in a
breach of, or constitute a default (or an event that with notice or the lapse of time, or both,
would constitute a default) under, any Identified Contract.
17. The execution and delivery by each Guarantor of the Purchase Agreement, the Supplemental
Indenture and the Registration Rights Agreement, and the performance by each Guarantor of its
obligations under the Purchase Agreement, the Supplemental Indenture, the Registration Rights
Agreement and its Guarantee, including the issuance by each Guarantor of its Guarantee, will not
(a) except as contemplated by the Registration Rights Agreement with respect to the Exchange Offer,
require any consent, approval, license, or exemption by, or order or authorization of, or filing,
recording or registration by such Guarantor with, any Massachusetts or federal governmental
authority or (in the case of Covered Guarantors organized under the Delaware General Corporation
Law) pursuant to the Delaware General Corporation Law, except for filings pursuant to the
Securities Act, the Exchange Act and the Trust Indenture Act that have been made and are available
on XXXXX and except for filings that may be required under Section 13(a) or 15 of the Exchange Act
regarding disclosure of the terms of the Purchase Agreement, the Indenture, the Registration Rights
Agreement, the Original Notes, the Guarantees and the transactions contemplated thereby, (b)
violate the certificate of incorporation or by-laws of any Covered Guarantor that is a corporation
organized under the laws of the State of Delaware, the articles of organization or by-laws of any
Covered Guarantor that is a corporation organized under the laws of the Commonwealth of
Massachusetts, or the certificate of formation or operating agreement of any Covered Guarantor that
is a limited liability company organized under the laws of the State of Delaware, or (c) violate
any Massachusetts or federal statute, rule or regulation or (in the case of Covered Guarantors
organized under the Delaware General Corporation Law) the Delaware General Corporation Law, except
that we express no opinion with respect to the anti-fraud provisions of federal securities laws or
with respect to state securities or Blue Sky laws.
18. Neither the issuance, sale and delivery of the Original Notes and the Guarantees nor the
application of the proceeds thereof by the Company as described in the Final Offering Memorandum
will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System.
19. The Purchase Agreement, the Indenture, the Registration Rights Agreement, the Original
Notes and the Guarantees conform in all material respects to the descriptions thereof in the
Pricing Disclosure Package and the Final Offering Memorandum.
20. The statements in the Preliminary Offering Memorandum and the Final Offering Memorandum
under the headings “Material United States Federal Income Tax Consequences”
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and “Description of Notes,” and in the first paragraph under the heading “Item 3. Legal
Proceedings” in the Company’s 10-K/A for the fiscal year ended December 31, 2008 and under the
heading “Estate of Xxxxxxx Xxxxxx Xxxxxxxxxxx x. Xxxxx Medical, Inc., et al.” in the Company’s 10-Q
for the fiscal quarter ended March 31, 2009, insofar as such statements contain descriptions of
Massachusetts or federal laws, rules or regulations or of legal proceedings, and insofar as they
describe the terms of agreements, are correct in all material respects.
21. Neither the Company nor any Guarantor is or, after giving effect to the issuance of the
Original Notes and the Guarantees and the application of the proceeds thereof by the Company as
described in the Final Offering Memorandum, will be, an “investment company,” as that term is
defined in the Investment Company Act of 1940, as amended.
22. No registration under the Securities Act of the Securities or qualification of the
Indenture under the Trust Indenture Act is required for the sale of the Securities to the Initial
Purchasers as contemplated by the Purchase Agreement or for the Exempt Resales, assuming in each
case that (a) the purchasers who buy the Securities in the Exempt Resales are Eligible Purchasers
and (b) the accuracy of and compliance with the Initial Purchasers’ representations, warranties and
covenants contained in the Purchase Agreement.
23. We are not representing the Company or any Guarantor in any pending litigation in which
the Company or any Guarantor is a named defendant that challenges the validity or enforceability
of, or seeks to enjoin the performance of, the Purchase Agreement, the Indenture, the Registration
Rights Agreement, the Original Notes or any Guarantee.
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EXHIBIT B
FORM OF PRICING SUPPLEMENT
This summary pricing sheet relates only to the securities described below and should only be read
together with the Preliminary Offering Memorandum, subject to completion, dated September 22, 2009,
relating to these securities and supersedes the information in the Preliminary Offering Memorandum
to the extent inconsistent with the information in the Preliminary Offering Memorandum. This
summary pricing sheet is qualified in its entirety by reference to the Preliminary Offering
Memorandum. Capitalized terms not defined herein have the meanings assigned to them in the
Preliminary Offering Memorandum.
Issuer | Inverness Medical Innovations, Inc. | |
Security Description
|
7.875% Senior Notes due 2016. | |
Distribution
|
144A / Regulation S — with Registration Rights as described in the Preliminary Offering Memorandum. | |
Aggregate Principal Amount
|
$100,000,000. | |
Gross Proceeds
|
$96,500,000 (excludes accrued interest). | |
Approximate Net Proceeds
|
$94,000,000 (excludes accrued interest but is after expenses). | |
Coupon
|
7.875%. | |
Maturity Date
|
February 1, 2016. | |
Offering Price
|
96.500% (plus accrued interest from August 11, 2009). | |
Yield to Maturity
|
8.599%. | |
Spread to Treasury
|
+576 basis points. | |
Benchmark
|
41/2% UST due February 15, 2016. | |
Ratings (Moody’s / S&P) 1
|
B2 / B-. |
1 | A securities rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning rating organization. |
Issuer | Inverness Medical Innovations, Inc. | |
Interest Payment Dates
|
February 1 and August 1, commencing February 1, 2010. | |
Qualified Reopening
|
The issuer will treat the notes issued hereby as issued pursuant to a “qualified reopening” of its 7.875% senior notes issued on August 11, 2009. Under this treatment, all of the notes will be deemed to have the same issue date, the same issue price and (with respect to holders) the same adjusted issue price as the issuer’s 7.875% senior notes issued on August 11, 2009. In addition to the stated interest on the notes, U.S. holders will be required to include any amounts representing original issue discount in gross income (as ordinary income) on a constant yield to maturity basis for U.S. federal income tax purposes in advance of the receipt of cash payments to which such income is attributable, regardless of whether a holder is on the cash or accrual method of tax accounting. A U.S. holder who purchases a note for less than the note’s adjusted issue price, which is the accreted value of the notes issued on August 11, 2009 on the date of the closing of the offering, will be considered to have purchased the note with market discount as well. Market discount is subject to special rules for U.S. federal income tax purposes. See “Material United States Federal Income Tax Consequences” in the Preliminary Offering Memorandum. | |
Call Features
|
Make-whole at T+50 prior to February 1, 2013. Callable thereafter at the following prices: |
For the period below | Percentage | |||
On or after February 1, 2013
|
103.938 | % | ||
On or after February 1, 2014
|
101.969 | % | ||
On or after February 1, 2015
|
100.000 | % |
Equity Clawback
|
35% at 107.875% (prior to August 1, 2012). | |
Change of Control Offer
|
101%. | |
Trade Date
|
Wednesday, September 23, 2009. | |
Settlement Date
|
Monday, September 28, 2009 (T+3). | |
Accrued Interest
|
Settles with accrued interest from August 11, 2009. | |
144A Regulation S | ||
CUSIP Numbers
|
46126P AH9 U4608F AB7 | |
Joint Book-Running Managers
|
Xxxxxxxxx & Company | |
Xxxxxxx, Sachs & Co. | ||
Xxxxx Fargo Securities |
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THE NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. UNLESS THEY ARE REGISTERED, THE NOTES MAY BE OFFERED ONLY IN
TRANSACTIONS EXEMPT FROM OR NOT SUBJECT TO REGISTRATION UNDER THE SECURITIES ACT, OR ANY STATE
SECURITIES LAWS. ACCORDINGLY, THE NOTES HAVE BEEN OFFERED ONLY TO QUALIFIED INSTITUTIONAL BUYERS
AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OR TO NON-U.S. PERSONS OUTSIDE THE UNITED STATES
UNDER REGULATION S UNDER THE SECURITIES ACT.
TO ENSURE COMPLIANCE WITH INTERNAL REVENUE SERVICE CIRCULAR 230, YOU ARE HEREBY NOTIFIED THAT ANY
DISCUSSION OF FEDERAL TAX MATTERS SET FORTH IN THIS SUMMARY WAS WRITTEN IN CONNECTION WITH THE
PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN AND WAS NOT INTENDED OR
WRITTEN TO BE USED, AND CANNOT BE USED, BY YOU, OR ANY NOTE HOLDER, FOR THE PURPOSE OF AVOIDING
TAX-RELATED PENALTIES UNDER FEDERAL TAX LAW. YOU, OR ANY NOTE HOLDER, SHOULD SEEK ADVICE BASED ON
YOUR, OR THE HOLDER’S, PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY
SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR
SOLICITATION IN SUCH JURISDICTION.
A copy of the offering memorandum relating to this offering may be obtained by contacting Xxxxxxxxx
& Company, Inc. at 000-000-0000, Xxxxxxx, Xxxxx & Co. at 000-000-0000 or Xxxxx Fargo Securities,
LLC at 000-000-0000.
Any disclaimers or other notices that may appear below are not applicable to this communication and
should be disregarded. Such disclaimers were automatically generated as a result of this
communication being sent via Bloomberg or another email system.
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