Inverness Medical Innovations,
Inc.
$400,000,000 9.00% Senior
Subordinated Notes due 2016
UBS SECURITIES
LLC
GOLDMAN, SACHS & CO.
BANC OF AMERICA SECURITIES LLC
As Representatives of the several Underwriters
c/o UBS SECURITIES LLC
299 Park Avenue
New York, New York 10171
Introductory . Inverness Medical Innovations, Inc., a
Delaware corporation (the “ Company ”), proposes
to issue and sell to the several underwriters named in
Schedule A (the “ Underwriters ”)
$400,000,000 aggregate principal amount of its 9.00% senior
subordinated unsecured notes due 2016 (the “ Notes
”). The Company’s obligations under the Notes and the
Indenture (as defined below) will be, jointly and severally,
unconditionally guaranteed (the “ Guarantees ”),
on a senior subordinated 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
Notes and the Guarantees are referred to herein as the “
Securities .” The respective principal amounts of the
Notes to be so purchased by the several Underwriters are set forth
opposite their names in Schedule A hereto. The Notes
are to be issued under an indenture as supplemented by a first
supplemental indenture (collectively, the “ Indenture
”) each to be dated the Closing Date (as defined below), by
and between the Issuers and U.S. Bank National Association, as
Trustee (the “ Trustee ”).
UBS
Securities LLC (“ UBS ”), Goldman, Sachs &
Co. (“ GS ”) and Banc of America Securities LLC
(“ BAS ”) have agreed to act as representatives
of the several Underwriters (in such capacity, the “
Representatives ”) in connection with the offering and
sale of the Securities.
The
Issuers have prepared and filed with the Securities and Exchange
Commission (the “ Commission ”) a shelf
registration statement on Form S-3 (File No. 333 158542), and
have prepared a base prospectus to be used in connection with the
public offering and sale of the Securities. Such base prospectus,
as modified and attached to the Preliminary Prospectus (as defined
below) is referred to herein as the “ Base Prospectus
”. Such registration statement, as amended, including the
financial statements, exhibits and schedules thereto, in the form
in which it became automatically effective under the Securities Act
of 1933, as amended, and the rules and regulations promulgated
thereunder (collectively, the “ Securities Act
”), including all documents incorporated or deemed to be
incorporated by reference therein and any information deemed to be
a part thereof at the time of effectiveness pursuant to
Rule 430B under
the Securities
Act or the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder (collectively, the
“ Exchange Act ”), is called the “
Registration Statement .” The Issuers’
preliminary prospectus supplement dated May 1, 2009 describing
the Securities and the offering thereof, together with the Base
Prospectus, is called the “ Preliminary Prospectus
,” and the Preliminary Prospectus and any other preliminary
prospectus supplement to the Base Prospectus that describes the
Securities and the offering thereof and is made available by the
Issuers and used prior to the filing of the Prospectus (as defined
below), together with the Base Prospectus, is called a “
preliminary prospectus .” As used herein, the term
“ Prospectus ” shall mean the final prospectus
supplement to the Base Prospectus that describes the Securities and
the offering thereof (the “ Final Prospectus
Supplement ”), together with the Base Prospectus, in the
form made available by the Issuers and first used by the
Underwriters to confirm sales of the Securities or in the form
first made available to the Underwriters by the Issuers to meet
requests of purchasers pursuant to Rule 173 under the
Securities Act. As used herein, “ Applicable Time
” is 3:00 p.m. (New York time) on May 7, 2009. As used
herein, “ free writing prospectus ” means any
“free writing prospectus” within the meaning set forth
in Rule 405 under the Securities Act related to the offering
of the Securities contemplated hereby, and “ Time of Sale
Prospectus ” means the preliminary prospectus, as amended
or supplemented immediately prior to the Applicable Time, together
with the information and free writing prospectuses, if any,
identified in Schedule B hereto. As used herein, the
terms “Registration Statement,” “preliminary
prospectus,” “Time of Sale Prospectus” and
“Prospectus” shall include the documents incorporated
and deemed to be incorporated by reference therein. All references
in this Agreement to the Registration Statement, any preliminary
prospectus, or the Prospectus, or any amendments or supplements to
any of the foregoing, shall include any copy thereof filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and
Retrieval System (“ EDGAR ”).
All
references in this Agreement to financial statements and schedules
and other information which are “ contained ,”
“ included ” or “ stated ” in
the Registration Statement, any preliminary prospectus, the Time of
Sale Prospectus or the Prospectus (and all other references of like
import) 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 Registration
Statement, any preliminary prospectus, the Time of Sale Prospectus
or the Prospectus, as the case may be; and all references in this
Agreement to amendments or supplements to the Registration
Statement, any preliminary prospectus, the Time of Sale Prospectus
or the Prospectus, as the case may be, shall be deemed to mean and
include the filing of any document under the Exchange Act which is
or is deemed to be incorporated by reference in the Registration
Statement, any preliminary prospectus, the Time of Sale Prospectus
or the Prospectus, as the case may be.
This
Agreement, the Notes, the Guarantees, and the Indenture are
hereinafter sometimes referred to collectively as the “
Note Documents .”
The
Issuers hereby confirm their respective agreements with the
Underwriters as follows:
Section 1. Representations and Warranties of the
Issuers . The Issuers hereby represent and warrant to each
Underwriter, as of the date of this Agreement, as of the
Closing
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Date (as
hereinafter defined) and jointly and severally covenant with each
Underwriter, as follows:
(a)
Compliance with Registration Requirements . (i) At the
time of filing the Registration Statement, (ii) at the time of
the most recent amendment to the Registration Statement for the
purposes of complying with Section 10(a)(3) of the Securities
Act (whether such amendment was by post-effective amendment,
incorporated report filed pursuant to Section 13 or 15(d) of
the Exchange Act or form of prospectus), if any, and (iii) at
the time the Company or any person acting on its behalf (within the
meaning, for this clause only, of Rule 163(c) under the Securities
Act) made any offer relating to the Securities in reliance on the
exemption of Rule 163 under the Securities Act, the Company
was a “well-known seasoned issuer” as defined in
Rule 405 under the Securities Act.
The
Registration Statement is an “automatic shelf registration
statement,” as defined in Rule 405, which became effective on
April 10, 2009. The Company has not received from the
Commission any notice pursuant to Rule 401(g)(2) under the
Securities Act objecting to the Company’s use of the
automatic shelf registration form. No stop order suspending the
effectiveness of the Registration Statement is in effect and no
proceedings for such purpose have been instituted or are pending
or, to the knowledge of the Company, are contemplated or threatened
by the Commission.
Each
preliminary prospectus and the Prospectus when filed complied in
all material respects with the Securities Act and, if filed by
electronic transmission pursuant to EDGAR (except as may be
permitted by Regulation S-T under the Securities Act), was
identical in all material respects to the copy thereof delivered by
the Company to the Underwriters for use in connection with the
offer and sale of the Securities. Each of the Registration
Statement, and any post-effective amendment thereto, at the time it
became effective and at all subsequent times through the Closing
Date, complied and will comply in all material respects with the
Securities Act and, at the time it became effective and as of the
Closing Date (as defined in Section 2), did not and will not
contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make
the statements therein not misleading. As of the Applicable Time,
the Time of Sale Prospectus did not, and at the Closing Date, the
Time of Sale Prospectus, will not, contain any untrue statement of
a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under
which they were made, not misleading. The Prospectus, as amended or
supplemented by the Company, if applicable, as of its date and at
all subsequent times through the Closing Date, did not and will not
contain any 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. The representations and warranties set forth in the
three immediately preceding sentences do not apply to statements in
or omissions from the Registration Statement, or any post-effective
amendment thereto, or the Prospectus or the Time of Sale
Prospectus, or any amendments or supplements thereto, made in
reliance upon and in conformity with information relating to any
Underwriter furnished to the Company in writing by the
Representatives expressly for use therein, it being understood and
agreed that the only such information furnished by the
Representatives to the Company consists of the information
described in Section 8(b) below. There are no contracts or other
documents required to be
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described in
the Time of Sale Prospectus or the Prospectus or to be filed as
exhibits to the Registration Statement which have not been
described or filed as required.
The
Company is not an “ineligible issuer” in connection
with the offering of the Securities pursuant to Rules 164, 405
and 433 under the Securities Act. Any free writing prospectus that
the Company is required to file pursuant to Rule 433(d) under the
Securities Act has been, or will be, filed with the Commission in
accordance with the requirements of the Securities Act. Each free
writing prospectus that the Company has filed, or is required to
file, pursuant to Rule 433(d) under the Securities Act or that was
prepared by or on behalf of (within the meaning, for this clause
only, of Rule 163(c) under the Securities Act) or used or referred
to by the Company complies or will comply in all material respects
with the requirements of Rule 433 under the Securities Act
including timely filing with the Commission or retention where
required and legending, and each such free writing prospectus, as
of its issue date and at all subsequent times through the Closing
Date did not, does not and will not (i) include any
information that conflicted, conflicts with or will conflict with
the information contained in the Registration Statement, the
Prospectus or any preliminary prospectus, including any document
incorporated by reference therein, in each case not superseded or
modified, or (ii) when taken together with the Time of Sale
Prospectus contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not
misleading. Except for the free writing prospectuses, if any,
identified in Schedule B hereto, and Road Shows, if
any, furnished by the Company to you before first use and
identified in Schedule C hereto, the Company has not
prepared, used or referred to, and will not, without your prior
consent, prepare, use or refer to, any free writing prospectus.
“ 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).
Each Road Show that was prepared by or behalf of (within the
meaning, for this clause only, of Rule 163(c) under the Securities
Act) or used or referred to by the Company as of its issue date and
at all subsequent times through the Closing Date did not, does not
and will not (i) include any information that conflicted,
conflicts with or will conflict with the information contained in
the Registration Statement, the Prospectus or any preliminary
prospectus, including any document incorporated by reference
therein, in each case not superseded or modified, or (ii) when
taken together with the Time of Sale Prospectus contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the
circumstances under which they were made, not
misleading.
(b)
Offering Materials Furnished to Underwriters . The Company
has delivered to the Representatives three complete manually signed
copies of the Registration Statement, each amendment thereto, if
any, and of each consent and certificate of experts filed as a part
thereof, if any, and conformed copies of the Registration
Statement, each amendment thereto (without exhibits), if any, and
preliminary prospectuses, the Time of Sale Prospectus, the
Prospectus, as amended or supplemented, and any free writing
prospectus of the Company, in such quantities and at such places as
the Representatives have reasonably requested for each of the
Underwriters.
(c)
Distribution of Offering Material by the Issuers . The
Issuers have not distributed and will not distribute, prior to the
completion of the Underwriters’ distribution of
the
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Securities, any
offering material in connection with the offering and sale of the
Securities other than a preliminary prospectus, the Time of Sale
Prospectus, the Prospectus, any free writing prospectus reviewed
and consented to by the Representatives, or the Registration
Statement.
(d)
The Underwriting 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 Time of Sale
Prospectus.
(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 Time of Sale Prospectus. The
Indenture has been duly qualified under the Trust Indenture Act of
1939, as amended (the “ Trust Indenture Act
”).
(f)
Authorization of the Notes. The Notes have been duly and
validly authorized for issuance and sale to the Underwriters by the
Company, and when issued and delivered by or on behalf of the
Company and authenticated by the Trustee against payment therefor
by the Underwriters in accordance with the terms of this Agreement
and the Indenture, the 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 Notes, when issued,
authenticated and delivered, will conform in all material respects
to the description thereof in the Time of Sale
Prospectus.
(g)
Authorization of the Guarantees. Each Guarantee has been
duly and validly authorized by the applicable Guarantor and, when
the Notes are issued and delivered by or on behalf of the Company
and authenticated by the Trustee against payment therefor by the
Underwriters 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. The Guarantees, when issued,
authenticated and delivered, will conform in all material respects
to the description thereof in the Time of Sale
Prospectus.
(h)
No Applicable Registration or Other Similar Rights . There
are no persons with registration or other similar rights to have
any equity or debt securities registered for sale under the
Registration Statement or included in the offering contemplated by
this Agreement, except for such rights as have been duly
waived.
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(i)
No Material Adverse Change . Except as otherwise disclosed
in the Time of Sale Prospectus, subsequent to the respective dates
as of which information is given in Time of Sale Prospectus: (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 Seidman, 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 filed
with the Commission as a part of the Registration Statement and
included in the Prospectus and Time of Sale Prospectus (each, an
“ Applicable Prospectus ” and collectively, the
“ Applicable Prospectuses ”), 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
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 filed with the Commission as a part of the Registration
Statement and included in the Time of Sale Prospectus and the
Prospectus 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. The supporting
schedules included in the Registration Statement present fairly the
information required to be stated therein. 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. No other financial statements or supporting
schedules are required to be included in the Registration Statement
or any Applicable Prospectus. The financial data set forth in each
Applicable Prospectus under the caption
“Summary—Summary Consolidated Financial
Information” fairly present the information set forth therein
on a basis consistent with that of the audited financial statements
contained in the Registration Statement and each Applicable
Prospectus. The pro forma condensed financial statements of the
Company and its subsidiaries and the related notes thereto included
in the Time of Sale Prospectus and the Prospectus 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
-6-
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 filed with
the Commission as a part of the Registration Statement and included
in any Applicable Prospectus.
(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 each
Applicable Prospectus 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 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
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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 each Applicable Prospectus 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 Time of Sale Prospectus or upon the exercise of
outstanding options or warrants described in each Applicable
Prospectus). 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 each Applicable Prospectus.
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 each Applicable Prospectus
accurately and fairly presents, in all material respects, the
information required to be shown with respect to such plans,
arrangements, options and rights.
(o)
Listing Approval . The Securities have been approved for
listing on the New York Stock Exchange, subject to notice of
issuance.
(p)
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 and the
Indenture, the consummation by the Issuers of the transactions
contemplated hereby and by each Applicable Prospectus 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
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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 (A) requiring the consent of General Electric Capital
Corporation as administrative agent under the respective Senior
Credit Documents and (B) accelerating certain payments
pursuant to the terms of the Acquisition Agreement dated as of
March 16, 2009 among the Company and ACON Laboratories, Inc.
and certain related entities as described in the Time of Sale
Prospectus) 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 each
Applicable Prospectus, 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 and (3) such as may be required from the
FINRA. 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.
(q)
No Material Actions or Proceedings . Except as otherwise
disclosed in each Applicable Prospectus, 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 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.
(r)
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 each Applicable
Prospectus (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
-9-
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 each
Applicable Prospectus, 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 each Applicable Prospectus
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 each Applicable Prospectus 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 each
Applicable Prospectus 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 each
Applicable Prospectus, the Company is not a party to or bound by
any agreements with respect to the Intellectual Property Rights of
any other person or entity that are required to be set forth in
each such Applicable Prospectus. 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 each Applicable Prospectus 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.
-10-
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.
(s)
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.
(t)
Title to Properties . Except as otherwise disclosed in each
Applicable Prospectus, 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(k) above (or elsewhere in any Applicable
Prospectus), 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 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.
(u)
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(k) above in respect of all
federal, state and foreign income and franchise taxes for
all
-11-
periods as to
which the tax liability of the Company or any of its consolidated
subsidiaries has not been finally determined.
(v)
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 each Applicable Prospectus, an
“ investment company ” within the meaning of the
Investment Company Act.
(w)
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.
(x)
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 1934 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.
(y)
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 each Applicable Prospectus which have not been
described as required.
(z)
S-3 Eligibility . At the time the Registration Statement
originally became effective and at the time the Company’s
Annual Report on Form 10-K for the year ended December 31,
2008 was filed with the Commission, the Company met the applicable
requirements for use of Form S-3 under the Securities Act. The
Company meets the requirements for use of Form S-3 under the
Securities Act specified in Rule 5110(b)(7)(C)(i) of the
Financial Industry Regulatory Authority (the “ FINRA
”).
(aa)
Exchange Act Compliance . The documents incorporated or
deemed to be incorporated by reference in each Applicable
Prospectus, 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 each Applicable Prospectus, at the time
the Registration Statement and any amendments thereto
-12-
become
effective and 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.
(bb)
Statistical and Market-Related Data . The statistical,
demographic and market-related data included in the Registration
Statement and each Applicable Prospectus 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.
(cc)
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
Registration Statement and each Applicable Prospectus.
(dd)
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 Time of Sale Prospectus; 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 Sarbanes-Oxley Act of
2002 (the “ Sarbanes-Oxley Act ”) and any
related rules and regulations promulgated by the
Commission.
(ee)
Compliance with Environmental Laws . Except as described in
each Applicable Prospectus 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
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
-13-
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.
(ff)
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.
(gg)
Brokers . Except for the underwriting discounts and
commissions payable to the Underwriters as described in each
Applicable Prospectus, there is no broker, finder or other party
that is entitled to receive from the Company any brokerage or
finder’s fee or other fee or commission as a result of any
transactions contemplated by this Agreement.
(hh)
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.
-14-
(ii)
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 Sarbanes-Oxley Act and the
rules and regulations of the Commission and the New York Stock
Exchange promulgated thereunder.
(jj)
Dividend Restrictions . Except as otherwise described in
each Applicable Prospectus and except as set forth in the Senior
Credit Documents, no subsidiary of the 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.
(kk)
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.
(ll)
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.
(mm)
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
-15-
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.
(nn)
Summaries of Certain Sections. The statements in the Time of
Sale Prospectus and the Prospectus under the headings
“Description of common stock we may offer,”
“Material United States Federal Income Tax
Consequences” and “Description of Notes” and
under the subheadings “Business—Government
Regulation&r
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