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Exhibit 10.1    
    


3,000,000
Shares of Common Stock 


VIASYS
HEALTHCARE INC. 


UNDERWRITING
AGREEMENT 


As
of June 17, 2003 


BEAR,
STEARNS & CO. INC.

J.P. MORGAN SECURITIES INC. 



As
Representatives of the

several Underwriters named in

Schedule I attached hereto (the "Representative(s)") 




c/o
Bear, Stearns & Co. Inc.

383 Madison Avenue

New York, New York 10179 



Ladies/Gentlemen: 


        VIASYS
Healthcare Inc., a corporation organized and existing under the laws of Delaware (the "Company"), proposes, subject to the terms and conditions stated herein, to issue and
sell to the several underwriters named in Schedule I hereto (the "Underwriters") an aggregate of 3,000,000 shares (the "Firm Shares") of its common stock, par value $0.01 per share (the "Common
Stock") and, for the sole purpose of covering over-allotments in connection with the sale of the Firm Shares, at the option of the Underwriters, up to an additional 450,000 shares (the
"Additional Shares") of Common Stock. The Firm Shares and any Additional Shares purchased by the Underwriters are referred to herein as the "Shares". The Shares are more fully described in the
Registration Statement and Prospectus referred to below. Bear, Stearns & Co. Inc. ("Bear Stearns") and J.P. Morgan Securities Inc. ("JPMorgan") are acting as co-lead
managers (the "Lead Managers") in connection with the offering and sale of the Shares contemplated herein (the "Offering"). 


        1.    Representations and Warranties of the Company.    The Company represents and warrants to, and agrees with, each
of the Underwriters that: 


        (a)   The
Company has filed with the Securities and Exchange Commission (the "Commission") a registration statement on Form S-3
(No. 333-104079), and amendments thereto, and related preliminary prospectuses for the registration under the Securities Act of 1933, as amended (the "Securities Act"), of the
Shares, which registration statement, as so amended, has been declared effective by the Commission and copies of which have heretofore been delivered to the Underwriters. The registration statement,
as amended at the time it became effective, including the prospectus, financial statements, schedules, exhibits and other information (if any) deemed to be part of the registration statement at the
time of effectiveness pursuant to Rule 430A under the Securities Act, is hereinafter referred to as the "Registration Statement." No other document with respect to the Registration Statement
has heretofore been filed with the Commission. All of the Shares have been registered under the Securities Act pursuant to the Registration Statement. No stop order suspending the effectiveness of the
Registration Statement has been issued and no proceeding for that purpose has been initiated or threatened by the Commission. The Company, if required by the Securities Act and the rules and
regulations of the Commission (the "Rules and Regulations"), proposes to file the Prospectus with the Commission pursuant to Rule 424(b) under the Securities Act ("Rule 424(b)"). The
prospectus, in the form in which it is to be filed with the Commission pursuant to Rule 424(b), or, if the prospectus is not to be filed with the Commission pursuant to Rule 424(b), the
prospectus in the form included as part of the Registration Statement at the time the Registration Statement became effective, is hereinafter referred to as the "Prospectus," except that if any
revised prospectus or prospectus supplement shall be provided to the Underwriters by the Company for use in connection with the Offering which differs from the Prospectus (whether or not such revised
prospectus or prospectus supplement is required to 





 



be
filed by the Company pursuant to Rule 424(b)), the term "Prospectus" shall also refer to such revised prospectus or prospectus supplement, as the case may be, from and after the time it is
first provided to the Underwriters for such use. Any preliminary prospectus or prospectus subject to completion included in the Registration Statement or filed with the Commission pursuant to
Rule 424 under the Securities Act is hereafter called a "Preliminary Prospectus." Any reference herein to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be
deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 which were filed under the Exchange Act (as defined below) on
or before the effective date of the Registration Statement, the date of such Preliminary Prospectus or the date of the Prospectus, as the case may be, and any reference herein to the terms "amend",
"amendment" or "supplement" with respect to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include (i) the filing of any document under
the Exchange Act after the effective date of the Registration Statement, the date of such Preliminary Prospectus or the date of the Prospectus, as the case may be, which is incorporated therein by
reference and (ii) any such document so filed. All references in this Agreement to the Registration Statement, a Preliminary Prospectus and the Prospectus, or any amendments or supplements to
any of the foregoing, shall be deemed to include any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System ("EDGAR"). 


        (b)   At
the time of the effectiveness of the Registration Statement or the effectiveness of any post-effective amendment to the Registration Statement, when the
Prospectus is first filed with the Commission pursuant to Rule 424(b), when any supplement to or amendment of the Prospectus is filed with the Commission, when any document filed under the
Exchange Act was or is filed and at the Closing Date and the Additional Closing Date, if any (as hereinafter respectively defined), the Registration Statement and the Prospectus and any amendments
thereof and supplements thereto complied or will comply in all material respects with the applicable provisions of the Securities Act, the Exchange Act and the Rules and Regulations and did not and
will not contain an untrue statement of a material fact and did not and will not omit to state any material fact required to be stated therein or necessary in order to make the statements therein
(i) in the case of the Registration Statement, not misleading and (ii) in the case of the Prospectus or any related Preliminary Prospectus in light of the circumstances under which they
were made, not misleading. When any Preliminary Prospectus was first filed with the Commission (whether filed as part of the registration statement for the registration of the Shares or any amendment
thereto or pursuant to Rule 424(a) under the Securities Act) and when any amendment thereof or supplement thereto was first filed with the Commission, such Preliminary Prospectus and any
amendments thereof and supplements thereto complied in all material respects with the applicable provisions of the Securities Act, the Exchange Act and the Rules and Regulations and did not contain an
untrue statement of a material fact and did not omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading. The contracts filed as exhibits to the Company's Annual Report on Form 10-K constitute all the contracts required to be filed as exhibits
thereto under the Exchange Act. No representation and warranty is made in this subsection (b), however, with respect to any information contained in or omitted from the Registration Statement
or the Prospectus or any related Preliminary Prospectus or any amendment thereof or supplement thereto in reliance upon and in conformity with information furnished in writing to the Company by or on
behalf of any Underwriter through the Lead Managers specifically for use therein. The parties acknowledge and agree that such information provided by or on behalf of any Underwriter consists solely of
the material included in the third, tenth and eleventh paragraphs under the caption "Underwriting" in the prospectus supplement included in the Prospectus. 


        (c)   Ernst &
Young LLP, who have certified the financial statements and supporting schedules and information of the Company and its subsidiaries that are
included or incorporated by reference in the 


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Registration
Statement, are independent public accountants as required by the Securities Act, the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Rules and Regulations. 


        (d)   Subsequent
to the respective dates as of which information is given in the Registration Statement and the Prospectus, except as disclosed in the Registration Statement
and the Prospectus, the Company has not declared, paid or made any dividends or other distributions of any kind on or in respect of its capital stock and there has been no material adverse change,
whether or not arising from transactions in the ordinary course of business, in or affecting (i) the business, condition (financial or otherwise), results of operations, stockholders' equity,
properties or prospects of the Company and any subsidiary of the Company listed on Exhibit A hereto (the "Subsidiaries"), taken as a whole or (ii) the long-term debt or
capital stock of the Company or any of its Subsidiaries (a "Material Adverse Change"). Since the date of the latest balance sheet presented, or incorporated by reference, in the Registration Statement
and the Prospectus, neither the Company nor any Subsidiary has incurred or undertaken any liabilities or obligations, whether direct or indirect, liquidated or contingent, matured or unmatured, or
entered into any transactions, including any acquisition or disposition of any business or asset, which are material to the Company and the Subsidiaries taken as a whole, except for liabilities,
obligations and transactions which are disclosed in the Registration Statement and the Prospectus. 


        (e)   The
authorized, issued and outstanding capital stock of the Company is as set forth in the Prospectus in the column headed "Actual" under the caption "Capitalization"
and, after giving effect to the Offering and the other transactions contemplated by this Agreement, the Registration Statement and the Prospectus, will be as set forth in the column headed "As
Adjusted" under the caption "Capitalization". All of the issued and outstanding shares of capital stock of the Company are fully paid and non-assessable, have been duly and validly
authorized and issued and are not in violation of or subject to any preemptive or similar right that does or will entitle any person, upon the issuance or sale of any security, to acquire from the
Company or any Subsidiary any Common Stock or other security of the Company or any Subsidiary or any security convertible into, or exercisable or exchangeable for, Common Stock or any other such
security (any "Relevant Security"), except for such rights as may have been fully satisfied or waived prior to the effectiveness of the Registration Statement. The Shares to be delivered on the
Closing Date and the Additional Closing Date (as hereinafter respectively defined), if any, have been duly and validly authorized and, when delivered in accordance with this Agreement, will be duly
and validly issued, will be fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar right that does or will entitle any person
to acquire any Relevant Security from the Company or any Subsidiary upon issuance or sale of Shares in the Offering. The Common Stock and the Shares conform to the descriptions thereof contained in
the Registration Statement and the Prospectus. Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor any Subsidiary has outstanding warrants, options to
purchase, or any preemptive rights or other rights to subscribe for or to purchase, or any contracts or commitments to issue or sell, any Relevant Security. 


        (f)    The
Subsidiaries are the only subsidiaries of the Company within the meaning of Rule 405 under the Securities Act. Except for the Subsidiaries, the Company holds
no ownership or other interest, nominal or beneficial, direct or indirect, in any corporation, partnership, joint venture or other business entity. All of the issued shares of capital stock of or
other ownership interests in each Subsidiary have been duly and validly authorized and issued and are fully paid and non-assessable and are owned directly or indirectly by the Company free
and clear of any lien, charge, mortgage, pledge, security interest, claim, equity, trust or other encumbrance, preferential arrangement, defect or restriction of any kind whatsoever (any "Lien"),
except for the pledge on the shares of certain Subsidiaries in connection with the Credit Agreement dated May 31, 2002, among the Company, the banks parties thereto and certain other parties.
None of Bird Life Design Corporation, EME 


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Medical Inc.,
EME Medical LLC, Erich Jaeger Inc. or Thermedics Polymer Products LLC is material to our business, condition (financial or otherwise) or results of
operations. 


        (g)   Each
of the Company and the Subsidiaries has been duly organized and validly exists as a corporation, partnership or limited liability company in good standing under the
laws of its jurisdiction of organization. Each of the Company and the Subsidiaries is duly qualified to do business and is in good standing as a foreign corporation, partnership or limited liability
company in each jurisdiction in which the location of its properties (owned, leased or licensed) or the nature or conduct of its business makes such qualification necessary, except for those failures
to be so qualified or in good standing which (individually and in the aggregate) could not reasonably be expected to have a material adverse effect on (i) the business, condition (financial or
otherwise), results of operations, stockholders' equity, properties or prospects of the Company and the Subsidiaries, taken as a whole, or (ii) the long-term debt or capital stock
of the Company or any of its Subsidiaries (a "Material Adverse Effect"). Each of the Company and the Subsidiaries has all requisite power and authority, and all necessary consents, approvals,
authorizations, orders, registrations, qualifications, licenses, filings and permits of, with and from all judicial, regulatory and other legal or governmental agencies and bodies and all third
parties, foreign and domestic (collectively, the "Consents"), to own, lease and operate its properties and conduct its business as it is now being conducted and as disclosed in the Registration
Statement and the Prospectus, except for Consents the failure to obtain which could not reasonably be expected to have a Material Adverse Effect, and each such Consent is valid and in full force and
effect, and neither the Company nor any Subsidiary has received notice of any investigation or proceedings which results in or, if decided adversely to the Company or any Subsidiary, could reasonably
be expected to result in a Material Adverse Effect. Each of the Company and the Subsidiaries is in compliance with all applicable laws, rules, regulations, ordinances, directives, judgments, decrees
and orders, foreign and domestic, except where failure to be in compliance could not reasonably be expected to have a Material Adverse Effect. 



        (h)   The
Company has the corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions
contemplated by this Agreement, the Registration Statement and the Prospectus. This Agreement and the transactions contemplated by this Agreement, the Registration Statement and the Prospectus have
been duly and validly authorized by the Company. This Agreement has been duly and validly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company,
enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally
and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 


        (i)    The
execution, delivery, and performance of this Agreement and consummation of the transactions contemplated by this Agreement, the Registration Statement and the
Prospectus do not and will not (i) conflict with, require consent under or result in a breach of any of the terms and provisions of, or constitute a default (or an event which with notice or
lapse of time, or both, would constitute a default) under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any Subsidiary
pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement, instrument, franchise, license or permit to which the Company or any Subsidiary is a party or by which, to the
knowledge of the Company or any Subsidiary, the Company or any Subsidiary or their respective properties, operations or assets may be bound or (ii) violate or conflict with any provision of the
certificate or articles of incorporation, by-laws, certificate of formation, limited liability company agreement, partnership agreement or other organizational documents of the Company or
any Subsidiary, or (iii) violate or conflict with any law, rule, regulation, ordinance, directive, judgment, decree or order of any judicial, regulatory or other 


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legal
or governmental agency or body, domestic or foreign, except (in the case of clauses (i) and (iii) above) as could not reasonably be expected to have a Material Adverse Effect. 


        (j)    No
Consent of, with or from any judicial, regulatory or other legal or governmental agency or body or any third party, foreign or domestic, is required for the
execution, delivery and performance of this Agreement or consummation of the transactions contemplated by this Agreement, the Registration Statement and the Prospectus, including the issuance, sale
and delivery of the Shares to be issued, sold and delivered hereunder, except the registration under the Securities Act of the Shares, which has become effective, and such Consents as may be required
under state securities or blue sky laws or the by-laws and rules of the National Association of Securities Dealers, Inc. (the "NASD") or NASD Regulation, Inc. ("NASDR") in
connection with the purchase and distribution of the Shares by the Underwriters, each of which has been obtained and is in full force and effect. 


        (k)   Except
as disclosed in the Registration Statement and the Prospectus, there is no judicial, regulatory, arbitral or other legal or governmental proceeding or other
litigation or arbitration, domestic or foreign, pending to which the Company or any Subsidiary is a party or of which any property, operations or assets of the Company or any Subsidiary is the subject
which, individually or in the aggregate, if determined adversely to the Company or any Subsidiary, could reasonably be expected to have a Material Adverse Effect; and to the Company's knowledge, no
such proceeding, litigation or arbitration is threatened or contemplated. 


        (l)    The
financial statements and pro forma data, including the notes thereto, and the supporting schedules included or incorporated by reference in the Registration
Statement and the Prospectus, present fairly the financial position as of the dates indicated and the cash flows and results of operations for the periods specified of the Company and its consolidated
subsidiaries; except as otherwise stated in the Registration Statement and the Prospectus, said financial statements have been prepared in conformity with United States generally accepted accounting
principles ("GAAP") applied on a consistent basis throughout the periods involved (except as otherwise noted therein); and the supporting schedules included or incorporated by reference in the
Registration Statement and the Prospectus present fairly the information required to be stated therein. No other financial statements or supporting schedules are required to be included in the
Registration Statement. The other financial and statistical information included or incorporated by reference in the Registration Statement and the Prospectus present fairly the information included
therein and have been prepared on a basis consistent with that of the financial statements that are included or incorporated by reference in the Registration Statement and the Prospectus and the books
and records of the respective entities presented therein. 


        (m)  There
are no pro forma or as adjusted financial statements which are required to be included or incorporated by reference in the Registration Statement and Prospectus in
accordance with Regulation S-X. 


        (n)   The
statistical, industry-related and market-related data included in the Registration Statement and the Prospectus are based on or derived from sources which the
Company reasonably and in good faith believes are reliable and accurate, and such data agree with the sources from which they are derived. 



        (o)   The
Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and files reports with the Commission on the EDGAR System. The
Common Stock is registered pursuant to Section 12(b) of the Exchange Act, the outstanding shares of Common Stock (other than the Shares) are listed on the NYSE (as defined in
Section 11(a) below) and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or
de-listing the Common Stock from the NYSE, nor has the Company received any notification that the Commission or the NYSE is contemplating terminating such registration or listing. 


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        (p)   The
Company and its Subsidiaries maintain a system of internal accounting and other controls sufficient to provide reasonable assurances that (i) transactions are
executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with United
States GAAP 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
accounting for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 


        (q)   Neither
the Company nor any of its affiliates (within the meaning of Rule 144 under the Securities Act) has taken, directly or indirectly, any action which
constitutes or is designed to cause or result in, or which could reasonably be expected to constitute, cause or result in, the stabilization or manipulation of the price of any security to facilitate
the sale or resale of the Shares. 


        (r)   Except
as disclosed in the Registration Statement and the Prospectus, no holder of any Relevant Security has any rights to require registration of any Relevant Security
as part or on account of, or otherwise in connection with, the offer and sale of the Shares contemplated hereby, and any such rights so disclosed have either been fully complied with by the Company or
effectively waived by the holders thereof, and any such waivers remain in full force and effect. 


        (s)   The
conditions for use of Form S-3 to register the Offering under the Securities Act, as set forth in the General Instructions to such Form, have been
satisfied. 


        (t)    The
documents incorporated or deemed to be incorporated by reference in the 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 Securities Act, the Exchange Act and the Rules and Regulations, and, when read together with the other information in the Prospectus,
do 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. 


        (u)   The
Company is not and, at all times up to and including consummation of the transactions contemplated by this Agreement, the Registration Statement and the Prospectus,
and after giving effect to application of the net proceeds of the Offering, will not be, subject to registration as an "investment company" under the Investment Company Act of 1940, as amended, and is
not and will not be an entity "controlled" by an "investment company" within the meaning of such act. 


        (v)   There
are no contracts or other documents (including, without limitation, any voting agreement), which are required to be described in the Registration Statement and the
Prospectus or filed as exhibits to the Registration Statement by the Securities Act, the Exchange Act or the Rules and Regulations and which have not been so described or filed. 



        (w)  No
relationship, direct or indirect, exists between or among any of the Company or any affiliate of the Company, on the one hand, and any director, officer, stockholder,
customer or supplier of the Company or any affiliate of the Company, on the other hand, which is required by the Securities Act, the Exchange Act or the Rules and Regulations to be described in the
Registration Statement or the Prospectus which is not so described and described as required. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary
course of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their respective family members, except as disclosed
in the Registration Statement and the Prospectus. The Company has not, in violation of the Sarbanes-Oxley Act, directly or indirectly, including through a Subsidiary, extended or maintained credit,
arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any director or executive officer of the Company. 


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        (x)   Except
as disclosed in the Registration Statement and the Prospectus, there are no contracts, agreements or understandings between the Company and any person that would
give rise to a valid claim against the Company or any Underwriter for a brokerage commission, finder's fee or other like payment in connection with the transactions contemplated by this Agreement, the
Registration Statement and the Prospectus or, to the Company's knowledge, any arrangements, agreements, understandings, payments or issuance with respect to the Company or any of its officers,
directors, shareholders, partners, employees, Subsidiaries or affiliates that may affect the Underwriters' compensation as determined by the NASD. 


        (y)   The
Company and each Subsidiary owns or leases all such properties as are necessary to the conduct of its business as presently operated and as proposed to be operated
as described in the Registration and the Prospectus. The Company and the Subsidiaries have good and marketable title in fee simple to, or have valid rights to lease or otherwise use, all items of real
and personal property that are material to the respective businesses of the Company and its Subsidiaries, in each case free and clear of all Liens except such as are described in the Registration
Statement and the Prospectus or such as do not materially affect the value of such property or materially interfere with the use made or proposed to be made of such property by the Company and the
Subsidiaries; and any real property and buildings held under lease or sublease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions
as are not material to, and do not materially interfere with, the use made and proposed to be made of such property and buildings by the Company and the Subsidiaries. Neither the Company nor any
Subsidiary has received any notice of any claim adverse to its ownership of any real or personal property or of any claim against the continued possession of any real property, whether owned or held
under lease or sublease by the Company or any Subsidiary. 


        (z)   The
Company and its Subsidiaries (i) own or possess adequate rights to use all patents, patent applications, trademarks, service marks, trade names, trademark
registrations, service mark registrations, copyrights, licenses, formulae, customer lists and know-how and other intellectual property (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures, "Intellectual Property") necessary for the conduct of their respective businesses as being conducted and as described in
the Registration Statement and Prospectus, except where the failure to own or possess rights to use any such Intellectual Property could not reasonably be expected to have a Material Adverse Effect,
and (ii) have no reason to believe that the conduct of their respective businesses does or will conflict with, and have not received any notice of any claim of conflict with, any such right of
others, except where any such conflict could not reasonably be expected to have a Material Adverse Effect. The Company has used commercially reasonable efforts to maintain in confidence all material
technical information developed by and belonging to the Company which has not been patented. Neither the Company nor any Subsidiary has granted or assigned to any other person or entity any right to
manufacture, have manufactured, assemble or sell the current products and services of the Company and its Subsidiaries or those products and services described in the Registration Statement and
Prospectus. There is no infringement by third parties of any such Intellectual Property; there is no pending or threatened action, suit, proceeding or claim by others challenging the Company's or any
Subsidiary's rights in or to any such Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such claim; and there is no pending or threatened
action, suit, proceeding or claim by others that the Company or any Subsidiary infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and
the Company is unaware of any other fact which would form a reasonable basis for any such claim, except in each case where any such circumstance could not reasonably be expected to have a Material
Adverse Effect. 


        (aa) The
Company and the Subsidiaries maintain insurance in such amounts and covering such risks as the Company reasonably considers adequate for the conduct of their
respective businesses and 


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the
value of its properties and as is customary for companies engaged in similar businesses in similar industries, all of which insurance is in full force and effect, except where the failure to
maintain such insurance could not reasonably be expected to have a Material Adverse Effect. There are no material claims by the Company or any Subsidiary under any such policy or instrument as to
which any insurance company is denying liability or defending under a reservation of rights clause. The Company has no reason to believe that it will not be able to renew its existing insurance as and
when such coverage expires or will not be able to obtain replacement insurance adequate for the conduct of the business and the value of its properties at a cost that would not have a Material Adverse
Effect. 


        (bb) The
Company has in effect insurance covering the Company, its directors, officers and the Underwriters for liabilities or losses arising in connection with this
Offering, including, without limitation, liabilities or losses arising under the Securities Act, the Exchange Act, the Rules and Regulations and applicable foreign securities laws. 



        (cc) Each
of the Company and the Subsidiaries has timely filed all material federal, state, foreign and other tax returns that are required to be filed by it and has paid or
made provision for the payment of all taxes, assessments, governmental or other similar charges, including without limitation, all sales and use taxes and all taxes which the Company or any Subsidiary
is obligated to withhold from amounts owing to employees, creditors and third parties, with respect to the periods covered by such tax returns (whether or not such amounts are shown as due on any tax
return). No material deficiency assessment with respect to a proposed adjustment of the Company's or any Subsidiary' federal, state, local or foreign taxes is pending or, to the Company's knowledge,
threatened. The accruals and reserves on the books and records of the Company and the Subsidiaries in respect of tax liabilities for any taxable period not finally determined are adequate to meet any
assessments and related liabilities for any such period and, since December 28, 2002, the Company and the Subsidiaries have not incurred any liability for taxes other than in the ordinary
course of its business. There is no material tax lien, whether imposed by any federal, state, foreign or other taxing authority, outstanding against the assets, properties or business of the Company
or any Subsidiary. 


        (dd) No
labor disturbance by the employees of the Company or any Subsidiary exists or, to the Company's knowledge, is contemplated or threatened. 



        (ee) No
"prohibited transaction" (as defined in either Section 406 of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and
published interpretations thereunder ("ERISA") or Section 4975 of the Internal Revenue Code of 1986, as amended from time to time (the "Code")), "accumulated funding deficiency" (as defined in
Section 302 of ERISA) or other event to which Section 4043 of ERISA applies (other than events with respect to which the 30-day notice requirement under Section 4043
of ERISA has been waived) has occurred with respect to any employee benefit plan for which the Company or any Subsidiary would have any material liability; each employee benefit plan for which the
Company or any Subsidiary would have any liability is in compliance in all respects with applicable law, including (without limitation) ERISA and the Code, except for such occurrences or failures to
be in compliance that could not reasonably be expected to have a Material Adverse Effect; the Company has not incurred and does not expect to incur liability under Title IV of ERISA with
respect to the termination of, or withdrawal from any "pension plan"; and each plan for which the Company would have any liability that is intended to be qualified under Section 401(a) of the
Code has been determined to be so qualified and nothing has occurred, whether by action or by failure to act, which could reasonably be expected to cause the loss of such qualification. As defined
herein, "employee benefit plan" means any pension plan, 401(k) plan, profit sharing plan, health or welfare plan, and any other employee benefit plan (within the meaning of Section 3(3) of
ERISA) that is maintained or sponsored by the Company or any other entity that would be treated as a commonly controlled company (within the meaning of Section 414 of the Code) with the Company
and its Subsidiaries (an "ERISA Affiliate"), or to which the Company or any ERISA Affiliate contributes or otherwise may have any liability, either directly or as a result of being a 


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member
of a commonly controlled group of companies since the spin-off of the Company from Thermo Electron Corporation. 


        (ff)  To
the Company's knowledge, there has been no storage, generation, transportation, handling, treatment, disposal, discharge, emission or other release of toxic or other
wastes or other hazardous substances by or on behalf of the Company or any Subsidiary (or, to the Company's knowledge, any other entity for whose acts or omissions the Company is liable) upon any
property owned or leased by the Company or any Subsidiary, or upon any other property, which is reasonably likely to be a violation of, or give rise to any liability under, any applicable law, rule,
regulation, order, judgment, decree or permit relating to pollution or protection of human health and the environment ("Environmental Law"). Neither the Company nor any Subsidiary has agreed to
assume, undertake or provide indemnification for any liability of any other person under any Environmental Law, including any obligation for cleanup or remedial action. There is no pending or, to the
best of the Company's knowledge, threatened administrative, regulatory or judicial action, claim or written notice of noncompliance or violation, investigation or proceedings under any Environmental
Law against the Company or any Subsidiary. 


        (gg) Neither
the Company, any Subsidiary nor, to the Company's knowledge, any of its employees or agents has at any time during the last five years (i) made any
unlawful contribution to any candidate for foreign office, or failed to disclose fully any contribution in violation of law, or (ii) made any payment to any federal or state governmental
officer or official, or other person charged with similar public or quasi-public duties, other than payments required or permitted by the laws of the United States of any jurisdiction thereof. 



        (hh) Neither
the Company nor any Subsidiary (i) is in violation of its certificate or articles of incorporation, by-laws, certificate of formation,
limited liability company agreement, partnership agreement or other organizational documents, (ii) is in default under, and no event has occurred which, with notice or lapse of time or both,
would constitute a default 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, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which, to the knowledge of the Company or any Subsidiary, it is bound or to which any
of its property or assets is subject or (iii) is in violation in any respect of any law, rule, regulation, ordinance, directive, judgment, decree or order of any judicial, regulatory or other
legal or governmental agency or body, foreign or domestic, except (in the case clauses (ii) and (iii) above) violations or defaults that could not (individually or in the aggregate) reasonably
be expected to have a Material Adverse Effect and except (in the case of clause (ii) alone) for any lien, charge or encumbrance disclosed in the Registration Statement and the Prospectus. 


        (ii)   The
Company has implemented the "disclosure controls and procedures" (as defined in Rules 13a-14(c) and 15d-14(c) of the Exchange Act)
required in order for the Chief Executive Officer and Chief Financial Officer of the Company to engage in the review and evaluation process mandated by the Exchange Act. The Company's "disclosure
controls and procedures" are designed to provide reasonable assurance that (i) all information (both financial and non-financial) required to be disclosed by the Company in the
reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Rules and Regulations, and (ii) all such
information is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure and to make the certifications of the Chief Executive
Officer and Chief Financial Officer of the Company required under the Exchange Act with respect to such reports. 



        (jj)   Except
as disclosed in the Registration and the Prospectus, there are no outstanding guarantees or other contingent obligations of the Company or any Subsidiary that
could reasonably be expected to have a Material Adverse Effect. 


9





 

        Any
certificate signed by or on behalf of the Company and delivered to the Representatives or to counsel for the Underwriters in connection with the Offering shall be deemed to be a
representation and warranty by the Company to each Underwriter as to the matters covered thereby. 


        2.    Purchase, Sale and Delivery of the Shares.    


        (a)   On
the basis of the representations, warranties, covenants and agreements herein contained, but subject to the terms and conditions herein set forth, the Company agrees
to sell to each Underwriter and each Underwriter, severally and not jointly, agrees to purchase from the Company, at a purchase price per share of $19.50, the number of Firm Shares set forth opposite
their respective names on Schedule I hereto together with any additional number of Shares which such Underwriter may become obligated to purchase pursuant to the provisions of Section 9
hereof. 


        (b)   Payment
of the purchase price for, and delivery of certificates representing, the Firm Shares shall be made at the office of Simpson Thacher & Bartlett
("Underwriters' Counsel"), or at such other place as shall be agreed upon by the Lead Managers and the Company, at 10:00 A.M., New York City time, on the third or (as permitted under
Rule 15c6-1 under the Exchange Act) fourth business day (unless postponed in accordance with the provisions of Section 9 hereof) following the date of the effectiveness of
the Registration Statement (or, if the Company has elected to rely upon Rule 430A under the Securities Act, the third or (as permitted under Rule 15c6-1 under the Exchange
Act) fourth business day after the determination of the public offering price of the Shares), or such other time not later than ten business days after such date as shall be agreed upon by the Lead
Managers and the Company (such time and date of payment and delivery being herein called the "Closing Date"). 


        Payment
of the purchase price for the Firm Shares shall be made by wire transfer in same day funds to the Company upon delivery of certificates for the Firm Shares to the Representatives
through the facilities of The Depository Trust Company for the respective accounts of the several Underwriters. Certificates for the Firm Shares shall be registered in such name or names and shall be
in such denominations as the Lead Managers may request at least two business days before the Closing Date. The Company will permit the Lead Managers to examine and package such certificates for
delivery at least one full business day prior to the Closing Date. 


        (c) In
addition, on the basis of the representations, warranties, covenants and agreements herein contained, but subject to the terms and conditions herein set forth, the Company
hereby grants to the Underwriters, acting severally and not jointly, the option to purchase up to 450,000 Additional Shares at the same purchase price per share to be paid by the Underwriters for the
Firm Shares as set forth in Section 2(a) above, for the sole purpose of covering over-allotments in the sale of Firm Shares by the Underwriters. This option may be exercised at any
time and from time to time, in whole or in part on one or more occasions, on or before the thirtieth day following the date of the Prospectus, by written notice from the Lead Managers to the Company.
Such notice shall set forth the aggregate number of Additional Shares as to which the option is being exercised and the date and time, as reasonably determined by the Lead Managers, when the
Additional Shares are to be delivered (any such date and time being herein sometimes referred to as the "Additional Closing Date"); provided,  however, that
no Additional Closing Date shall occur earlier than the Closing Date or earlier than the second full business day after the date on which
the option shall have been exercised nor later than the eighth full business day after the date on which the option shall have been exercised (unless such time and date are postponed in accordance
with the provisions of Section 9 hereof). Upon any exercise of the option as to all or any portion of the Additional Shares, each Underwriter, acting severally and not jointly, agrees to
purchase from the Company the number of Additional Shares that bears the same proportion of the total number of Additional Shares then being purchased as the number of Firm Shares set forth opposite
the name of such Underwriter in Schedule I hereto (or such number increased as set forth in Section 9 hereof) bears to the total number of Firm Shares that the Underwriters have agreed
to 


10





 

purchased
hereunder, subject, however, to such adjustments to eliminate fractional shares as the Lead Managers in their sole discretion shall make. 


        (d)   Payment
of the purchase price for, and delivery of certificates representing, the Additional Shares shall be made at the office of Underwriters' Counsel, or at such
other place as shall be agreed upon by the Lead Managers and the Company, at 10:00 A.M., New York City time, on the Additional Closing Date (unless postponed in accordance with the provisions
of Section 9 hereof), or such other time as shall be agreed upon by the Lead Managers and the Company. 



        Payment
of the purchase price for the Additional Shares shall be made by wire transfer in same day funds to the Company upon delivery of certificates for the Additional Shares to the
Representatives through the facilities of The Depository Trust Company for the respective accounts of the several Underwriters. Certificates for the Additional Shares shall be registered in such name
or names and shall be in such denominations as the Lead Managers may request at least two business days before the Additional Closing Date. The Company will permit the Lead Managers to examine and
package such certificates for delivery at least one full business day prior to the Additional Closing Date. 



        3.    Offering.    Upon authorization of the release of the Firm Shares by the Lead Managers, the Underwriters propose
to offer the Shares for sale to the public upon the terms and conditions set forth in the Prospectus. 


        4.    Covenants of the Company.    The Company covenants and agrees with the Underwriters that: 


        (a)   If
Rule 430A is used or the filing of the Prospectus is otherwise required under Rule 424(b), the Company will file the Prospectus (properly completed if
Rule 430A has been used) pursuant to Rule 424(b) within the prescribed time period and will provide evidence satisfactory to the Lead Managers of such timely filing. 


        The
Company will notify you promptly (and, if requested by the Lead Managers, will confirm such notice in writing) (i) when the Registration Statement and any amendments thereto
become effective, (ii) of any request by the Commission for any amendment of or supplement to the Registration Statement or the Prospectus or for any additional information, (iii) of the
Company's intention to file or prepare any supplement or amendment to the Registration Statement or the Prospectus, (iv) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or any post-effective amendment thereto or of the initiation, or the threatening, of any proceedings therefor, it being understood that the
Company shall use reasonable best efforts to avoid the issuance of any such stop order, (v) of the receipt of any comments from the Commission with respect to any post-effective
amendment, and (vi) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for that purpose. If the Commission shall propose or enter a stop order at any time, the Company will make every reasonable effort to prevent the issuance of any such
stop order and, if issued, to obtain the lifting of such order as soon as possible. The Company will not file any amendment to the Registration Statement or any amendment of or supplement to the
Prospectus (including the prospectus required to be filed pursuant to Rule 424(b)) that differs from the prospectus on file at the time of the effectiveness of the Registration Statement or
file any document under the Exchange Act if such document would be deemed to be incorporated by reference into the Prospectus to which the Lead Managers shall reasonably object in writing after being
timely furnished in advance a copy thereof. The Company will provide the Lead Managers with copies of all such amendments, filings and other documents in sufficient time prior to any filing or other
publication thereof to permit the Lead Managers a reasonable opportunity to review and comment thereon. 


11









   
        (b)   The Company shall comply with the Securities Act and the Exchange Act to permit completion of the distribution as contemplated in this Agreement, the Registration
Statement and the Prospectus. If at any time when a prospectus relating to the Shares is required to be delivered under the Securities Act or the Exchange Act in connection with the sales of Shares,
any event shall have occurred as a result of which the Prospectus as then amended or supplemented would, in the judgment of the Underwriters or the Company, include an untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances existing at the time of delivery to the purchaser,
not misleading, or if to comply with the Securities Act, the Exchange Act or the Rules and Regulations it shall be necessary at any time to amend or supplement the Prospectus or Registration
Statement, or to file any document incorporated by reference in the Registration Statement or the Prospectus or in any amendment thereof or supplement thereto, the Company will notify you promptly and
prepare and file with the Commission, subject to Section 4(a) hereof, an appropriate amendment or supplement (in form and substance satisfactory to the Lead Managers) which will correct such
statement or omission or which will effect such compliance and will use its reasonable best efforts to have any amendment to the Registration Statement declared effective as soon as possible. 


        (c)   The
Company will promptly deliver to each of you and Underwriters' Counsel a signed copy of the Registration Statement, as initially filed and all amendments thereto,
including all consents and exhibits filed therewith, and will maintain in the Company's or Company's counsel's files manually signed copies of such documents for at least five years after the date of
filing. The Company will promptly deliver to each of the Underwriters such number of copies of any Preliminary Prospectus, the Prospectus, the Registration Statement and all amendments of and
supplements to such documents, if any, and (except to the extent available through the Commission's EDGAR system) all documents incorporated by reference in the Registration Statement and Prospectus
or any amendment thereof or supplement thereto, as you may reasonably request. Prior to 10:00 A.M., New York time, on the business day next succeeding the date of this Agreement and from time
to time thereafter, the Company will furnish the Underwriters with copies of the Prospectus in New York City in such quantities as you may reasonably request. 


        (d)   The
Company consents to the use and delivery of the Preliminary Prospectus by the Underwriters in accordance with Rule 430 and Section 5(b) of the
Securities Act. 


        (e)   The
Company will use its reasonable best efforts, in cooperation with the Lead Managers, at or prior to the time of effectiveness of the Registration Statement, to
qualify the Shares for offering and sale under the securities laws relating to the offering or sale of the Shares of such jurisdictions, domestic or foreign, as the Lead Managers may designate and to
maintain such qualification in effect for so long as required for the distribution thereof, except that in no event shall the Company be obligated in connection therewith to qualify as a foreign
corporation or to execute a general consent to service of process. 



        (f)    The
Company will make generally available to its security holders and to the Underwriters as soon as practicable, but in any event not later than twelve months after the
effective date of the Registration Statement (as defined in Rule 158(c) under the Securities Act), an earnings statement of the Company and the Subsidiaries (which need not be audited)
complying with Section 11(a) of the Securities Act and the Rules and Regulations (including, at the option of the Company, Rule 158). 


        (g)   During
the period of 90 days from the date of the Prospectus, without the prior written consent of the Lead Managers, the Company (i) will not, directly or
indirectly, issue, offer, sell, agree to issue, offer or sell, solicit offers to purchase, grant any call option, warrant or other right to purchase, purchase any put option or other right to sell,
pledge or otherwise dispose of any Relevant Security, or make any announcement of any of the foregoing, (ii) will not establish or increase any "put equivalent position" or liquidate or
decrease any "call equivalent position" (in each case within the 


12





 



meaning
of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder) with respect to any Relevant Security, and (iii) will not otherwise enter into any swap,
derivative or other transaction or arrangement that transfers to another, in whole or in part, any economic consequence of ownership of a Relevant Security, whether or not such transaction is to be
settled by delivery of Relevant Securities, other securities, cash or other consideration; and the Company will use its reasonable best efforts to obtain an undertaking in substantially the form of
Annex III hereto of each of its executive officers and directors not to engage in any of the aforementioned transactions on their own behalf, other than the sale of Shares as contemplated by
this Agreement and the Company's issuance of Common Stock upon (i) the exercise of currently outstanding options and (ii) the grant and exercise of options under, or the issuance and
sale of shares pursuant to, employee stock option plans and employee stock purchase plans in effect on the date hereof, each as described in the Registration Statement and the Prospectus. During the
period of 90 days from the date of the Prospectus, without the prior written consent of the Lead Managers, the Company will not file a registration statement under the Securities Act in
connection with any transaction by the Company or any person that is prohibited pursuant to the foregoing, except for registration statements on Form S-8 relating to employee
benefit plans or on Form S-4 relating to corporate reorganizations or other transactions under Rule 145. 


        (h)   During
the period of five years from the effective date of the Registration Statement, the Company will, as soon as reasonably practicable, furnish to you (except to the
extent available through the Commission's EDGAR system) (i) copies of any reports, financial statements and proxy or information statements delivered to shareholders or to the Commission and
(ii) such additional information concerning the business and financial condition of the Company as you may from time to time reasonably request;  provided that in the case of (i) and (ii) above,
such information is furnished or filed with the Commission, is published or otherwise publicly
disseminated by the Company or is covered by a confidentiality agreement in a form reasonably acceptable to the Company executed by you. 


        (i)    The
Company will apply the net proceeds from the sale of the Shares as set forth under the caption "Use of Proceeds" in the Prospectus. 


        (j)    The
Company will use its reasonable best efforts to effect and maintain the listing of the Shares on the NYSE. 



        (k)   The
Company, during the period when the Prospectus is required to be delivered under the Securities Act or the Exchange Act, will file all documents required to be filed
with the Commission pursuant to the Securities Act, the Exchange Act and the Rules and Regulations within the time periods required thereby. 


        (l)    The
Company will use its best efforts to do and perform all things required to be done or performed under this Agreement by the Company prior to the Closing Date or the
Additional Date, as the case may be, and to satisfy all conditions precedent to the delivery of the Firm Shares and the Additional Shares. 



        (m)  The
Company will not take, directly or indirectly, any action which constitutes or is designed to cause or result in, or which could reasonably be expected to
constitute, cause or result in, the stabilization or manipulation of the price of any security to facilitate the sale or resale of the Shares. 


        5.    Payment of Expenses.    Whether or not the transactions contemplated by this Agreement, the Registration
Statement and the Prospectus are consummated or this Agreement is terminated, the Company hereby agrees to pay all costs and expenses incident to the performance of its obligations hereunder,
including the following: (i) all expenses in connection with the preparation, printing and filing of the Registration Statement, any Preliminary Prospectus and the Prospectus and any and all
amendments and supplements thereto and the mailing and delivering of copies thereof to the 


13





 



Underwriters
and dealers; (ii) the fees, disbursements and expenses of the Company's counsel and accountants in connection with the registration of the Shares under the Securities Act and the
Offering; (iii) the cost of producing this Agreement and other instruments, agreements or documents in connection with the Offering; (iv) all expenses in connection with the
qualification of the Shares for offering and sale under state or foreign securities or blue sky laws as provided in Section 4(e) hereof, including the fees and disbursements of counsel for the
Underwriters in connection with such qualification and in connection with any blue sky survey; (v) the filing fees incident to, and the fees and disbursements of counsel for the Underwriters in
connection with, securing any required review by the NASD of the terms of the Offering; (vi) all fees and expenses in connection with listing the Shares on the NYSE; and (vii) all travel
expenses of the Company's officers and employees and any other expense of the Company incurred in connection with attending or hosting meetings with prospective purchasers of the Shares. The Company
also will pay or cause to be paid: (x) the cost of preparing stock certificates representing the Shares; (y) the cost and charges of any transfer agent or registrar for the Shares; and
(z) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section 5. It is understood, however,
that except as provided in this Section, and Sections 7, 8 and 11 hereof, the Underwriters will pay all of their own costs and expenses, including the fees of their counsel and stock transfer
taxes on resale of any of the Shares by them. Notwithstanding anything to the contrary in this Section 5, in the event that this Agreement is terminated pursuant to Section 6 or 11(b)
hereof, or subsequent to a Material Adverse Change, the Company will pay all out-of pocket expenses of the Underwriters (including but not limited to fees and disbursements of counsel to
the Underwriters) incurred in connection herewith. 


        6.    Conditions of Underwriters' Obligations.    The obligations of the Underwriters to purchase and pay for the Firm
Shares and the Additional Shares, as provided herein, shall be subject to the accuracy of the representations and warranties of the Company herein contained, as of the date hereof and as of the
Closing Date (for purposes of this Section 6 "Closing Date" shall refer to the Closing Date for the Firm Shares and any Additional Closing Date, if different, for the Additional Shares), to the
absence from any certificates, opinions, written statements or letters furnished to you or to Underwriters' Counsel pursuant to this Section 6 of any misstatement or omission, to the
performance by the Company of its obligations hereunder, and to each of the following additional conditions: 


        (a)   The
Registration Statement shall have become effective and all necessary regulatory or stock exchange approvals shall have been received not later than 5:30 P.M.,
New York time, on the date of this Agreement, or at such later time and date as shall have been consented to in writing by the Lead Managers; if the Company shall have elected to rely upon
Rule 430A under the Securities Act, the Prospectus shall have been filed with the Commission in a timely fashion in accordance with Section 4(a) hereof and a form of the Prospectus
containing information relating to the description of the Shares and the method of distribution and similar matters shall have been filed with the Commission pursuant to Rule 424(b) within the
applicable time period; and, at or prior to the Closing Date no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereof shall have
been issued and no proceedings therefor shall have been initiated or threatened by the Commission. 


        (b)   At
the Closing Date you shall have received the written opinion of Morgan, Lewis & Bockius LLP, U.S. counsel for the Company, dated the Closing Date and
addressed to the Underwriters in the form attached hereto as Annex I. 



        (c)   At
the Closing Date you shall have received the written opinion of Morgan, Lewis & Bockius LLP, German counsel for the Company, dated the Closing Date and
addressed to the Underwriters in the form attached hereto as Annex II. 


        (d)   All
proceedings taken in connection with the sale of the Firm Shares and the Additional Shares as herein contemplated shall be satisfactory in form and substance to the
Lead Managers and to 


14





 



Underwriters'
Counsel, and the Underwriters shall have received from Underwriters' Counsel a favorable written opinion, dated as of the Closing Date, with respect to the issuance and sale of the
Shares, the Registration Statement and the Prospectus and such other related matters as the Lead Managers may require, and the Company shall have furnished to Underwriters' Counsel such documents as
they may reasonably request for the purpose of enabling them to pass upon such matters. 


        (e)   At
the Closing Date you shall have received a certificate of the Chief Executive Officer or another senior executive officer of the Company satisfactory to the Lead
Managers and Chief Financial Officer or principal accounting officer of the Company, dated the Closing Date and given in their capacities as officers of the Company, to the effect that (i) the
condition set forth in subsection (a) of this Section 6 has been satisfied, (ii) as of the date hereof and as of the Closing Date, the representations and warranties of the
Company set forth in Section 1 hereof are accurate, (iii) as of the Closing Date all agreements, conditions and obligations of the Company to be performed or complied with hereunder on
or prior thereto have been duly performed or complied with, (iv) subsequent to the respective dates as of which information is given in the Registration Statement and the Prospectus, the
Company and the Subsidiaries have not sustained any material loss or interference with their respective businesses or properties from fire, flood, hurricane, accident or other calamity, whether or not
covered by insurance, or from any labor dispute or any legal or governmental proceeding, (v) no stop order suspending the effectiveness of the Registration Statement or any
post-effective amendment thereof has been issued and no proceedings therefor have been initiated or threatened by the Commission and (vi) subsequent to the respective dates as of
which information is given in the Registration Statement and the Prospectus there has not been any material adverse change or any development involving a prospective material adverse change, whether
or not arising from transactions in the ordinary course of business, in or affecting (x) the business, condition (financial or otherwise), results of operations, stockholders' equity,
properties or prospects of the Company and the Subsidiaries, individually or taken as a whole; (y) the long-term debt or capital stock of the Company or any of its Subsidiaries; or
(z) the Offering or consummation of any of the other transactions contemplated by this Agreement, the Registration Statement and the Prospectus. 



        (f)    At
the time this Agreement is executed and at the Closing Date, you shall have received a comfort letter from Ernst & Young LLP, independent public accountants
for the Company, dated, respectively, as of the date of this Agreement and as of the Closing Date addressed to the Underwriters and in form and substance satisfactory to the Underwriters and
Underwriters' Counsel; provided, that the letter delivered on the Closing Date shall use a "cut-off" date no more than three business days
prior to such Closing Date. 


        (g)   You
shall have received from Ernst & Young LLP a letter stating that the Company's system of internal accounting controls taken as a whole is sufficient to
meet the broad objectives of internal accounting controls insofar as those objectives pertain to the prevention or detection of errors or irregularities in amounts that would be material in relation
to the financial statements of the Company and its subsidiaries. 


        (h)   Subsequent
to the execution and delivery of this Agreement or, if earlier, the dates as of which information is given in the Registration Statement (exclusive of any
amendment thereof occurring on or after June 18, 2003) and the Prospectus (exclusive of any supplement thereto), there shall not have been any change in the capital stock or
long-term debt of the Company or any Subsidiary or any change or development involving a change, whether or not arising from transactions in the ordinary course of business, in the
business, condition (financial or otherwise), results of operations, stockholders' equity, properties or prospects of the Company and the Subsidiaries, taken as a whole, including but not limited to
the occurrence of any fire, flood, storm, explosion, accident or other calamity at any of the properties owned or leased by the Company or any of its Subsidiaries, the effect of which, in any such
case described above, is, in the judgment of the Lead Managers, so 


15





 



material
and adverse as to make it impracticable or inadvisable to proceed with the Offering on the terms and in the manner contemplated in the Prospectus (exclusive of any supplement). 



        (i)    No
action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or
regulatory authority that would, as of the Closing Date, prevent the issuance or sale of the Shares; and no injunction or order of any federal, state or foreign court shall have been issued that
would, as of the Closing Date, prevent the issuance or sale of the Shares. 


        (j)    You
shall have received a duly executed lock-up agreement from each person who is a director or executive officer of the Company, in each case substantially
in the form attached hereto as Annex III. 


        (k)   At
the Closing Date, the Shares shall have been approved for listing upon notice of issuance on the NYSE. 


        (l)    At
the Closing Date, the NASD shall have confirmed that it has not raised any objection with respect to the fairness and reasonableness of the underwriting terms and
arrangements. 


        (m)  The
Company shall have furnished the Underwriters and Underwriters' Counsel with such other certificates, opinions or other documents as they may have reasonably
requested. 


        If
any of the conditions specified in this Section 6 shall not have been fulfilled when and as required by this Agreement, or if any of the certificates, opinions, written
statements or letters furnished to you or to Underwriters' Counsel pursuant to this Section 6 shall not be satisfactory in form and substance reasonably satisfactory to the Lead Managers and to
Underwriters' Counsel, all obligations of the Underwriters hereunder may be cancelled by the Lead Managers at, or at any time prior to, the
Closing Date and the obligations of the Underwriters to purchase the Additional Shares may be cancelled by the Lead Managers at, or at any time prior to, the Additional Closing Date. Notice of such
cancellation shall be given to the Company in writing, or by telephone. Any such telephone notice shall be confirmed promptly thereafter in writing. The Lead Managers may in their sole discretion
waive on behalf of the Underwriters compliance with any conditions to the obligations of the Underwriters hereunder. 


        7.    Indemnification.    


        (a)   The
Company shall indemnify and hold harmless each Underwriter and each person, if any, who controls any Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, against any and all losses, liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to attorneys' fees and
any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement
of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, liabilities, claims,
damages or expenses (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any
amendment thereof, or any related Preliminary Prospectus or the Prospectus, or in any supplement thereto or amendment thereof, or arise out of or are 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 not misleading; provided, however, that the
Company will not be liable in any such case to the extent but only to the extent that any such loss, liability, claim, damage or expense arises out of or is based upon any such untrue statement or
alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Underwriter through
the Lead Managers expressly for use therein. The parties agree that such information provided by or on behalf of any Underwriter through the Lead Managers consists solely of the material referred to
in the last 


16





 



sentence
of Section 1(b) hereof. This indemnity agreement will be in addition to any liability which the Company may otherwise have, including but not limited to other liability under this
Agreement. The foregoing indemnity agreement with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter who failed to deliver a Prospectus (as then amended or
supplemented, provided by the Company to the several Underwriters in the requisite quantity and on a timely basis to permit proper delivery on or prior to the Closing Date) to the person asserting any
losses, claims, damages and liabilities and judgments caused by any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, or caused by any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, if such material misstatement or omission or alleged
material misstatement or omission was cured, as determined by a court of competent jurisdiction in a decision not subject to further appeal, in such Prospectus and such Prospectus was required by law
to be delivered at or prior to the written confirmation of sale to such person. 


        (b)   Each
Underwriter, severally and not jointly, shall indemnify and hold harmless the Company, each of the directors of the Company, each of the officers of the Company who
shall have signed the Registration Statement, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, against any losses, liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to attorneys' fees and any and all expenses whatsoever incurred in investigating,
preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they
or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereof, or any related Preliminary Prospectus or the
Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are 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 not misleading, in each case to the extent, but only to the extent, that any such loss, liability, claim, damage or expense arises out of or is based upon any
such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with information furnished in writing to the Company by or on behalf
of such Underwriter through the Lead Managers specifically for use therein; provided, however, that in
no case shall any Underwriter be liable or responsible for any amount in excess of the underwriting discount applicable to the Shares to be purchased by such Underwriter hereunder. The parties agree
that such information provided by or on behalf of any Underwriter through the Lead Managers consists solely of the material referred to in the last sentence of Section 1(b) hereof. This
indemnity will be in addition to any liability which any Underwriter may otherwise have, including but not limited to other liability under this Agreement. 


        (c)   Promptly
after receipt by an indemnified party under subsection (a) or (b) above of notice of any claims or the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify each party against whom indemnification is to be sought in writing of the claim or the
commencement thereof (but the failure so to notify an indemnifying party shall not relieve the indemnifying party from any liability which it may have under this Section 7. In case any such
claim or action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate, at its own expense
in the defense of such action, and to the extent it may elect 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 satisfactory to such indemnified party; provided however, that counsel to the indemnifying party shall not (except with
the written consent of the indemnified party) also be counsel to the indemnified party. Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its or 


17





 



their
own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have
been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed counsel to have charge of the
defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense,
or (iv) such indemnified party or parties shall have reasonably concluded that there may be defenses available to it or them which are different from or additional to those available to one or
all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which
events such fees and expenses shall be borne by the indemnifying parties. No indemnifying party shall, without the prior written consent of the indemnified parties, effect any settlement or compromise
of, or consent to the entry of judgment with respect to, any pending or threatened claim, investigation, action or proceeding in respect of which indemnity or contribution may be or could have been
sought by an indemnified party under this Section 7 or Section 8 hereof (whether or not the indemnified party is an actual or potential party thereto), unless (x) such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such claim, investigation, action or proceeding and (ii) does not
include a statement as to or an admission of fault, culpability or any failure to act, by or on behalf of the indemnified party, and (y) the indemnifying party confirms in writing its
indemnification obligations hereunder with respect to such settlement, compromise or judgment. 


        8.    Contribution.    In order to provide for contribution in circumstances in which the indemnification provided for
in Section 7 hereof is for any reason held to be unavailable from any indemnifying party or is insufficient to hold harmless a party indemnified thereunder, the Company and the Underwriters
shall contribute to the aggregate losses, claims, damages, liabilities and expenses of the nature contemplated by such indemnification provision (including any investigation, legal and other expenses
incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims asserted, but after deducting in the case of losses, claims, damages, liabilities and
expenses suffered by the Company, any contribution received by the Company from persons, other than the Underwriters, who may also be liable for contribution, including persons who control the Company
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, officers of the Company who signed the Registration Statement and directors of the Company) as
incurred to which the Company and one or more of the Underwriters may be subject, in such proportions as is appropriate to reflect the relative benefits received by the Company and the Underwriters
from the Offering or, if such allocation is not permitted by applicable law, in such proportions as are appropriate to reflect not only the relative benefits referred to above but also the relative
fault of the Company and the Underwriters 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 Company and the Underwriters shall be deemed to be in the same proportion as (x) the total proceeds from the Offering (net of
underwriting discounts and commissions but before deducting expenses) received by the Company bears to (y) the underwriting discount or commissions received by the Underwriters, in each case as
set forth in the table on the cover page of the Prospectus. The relative fault of each of the Company and of the Underwriters shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties'
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters 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 Underwriters 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 above in this Section. The aggregate amount of 


18





 



losses,
liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 8 shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any judicial, regulatory or other legal or governmental agency
or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this
Section 8, (i) no Underwriter shall be required to contribute any amount in excess of the amount by which the discounts and commissions applicable to the Shares underwritten by it and
distributed to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission and (ii) 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. For purposes of this Section 8, each person, if any, who controls an Underwriter within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act shall have the same rights to contribution as such Underwriter, and each person, if any, who controls the Company within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to
contribution as the Company, subject in each case to clauses (i) and (ii) of the immediately preceding sentence. Any party entitled to contribution will, promptly after receipt of notice of
commencement of
any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties, notify each party or parties from whom contribution may be
sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this
Section 8 or otherwise. The obligations of the Underwriters to contribute pursuant to this Section 8 are several in proportion to the respective number of Shares to be purchased by each
of the Underwriters hereunder and not joint. 


        9.    Underwriter Default.    


        (a)   If
any Underwriter or Underwriters shall default in its or their obligation to purchase Firm Shares or Additional Shares hereunder, and if the Firm Shares or Additional
Shares with respect to which such default relates (the "Default Shares") do not (after giving effect to arrangements, if any, made by the Lead Managers pursuant to subsection (b) below) exceed
in the aggregate 10% of the number of Firm Shares or Additional Shares, each non-defaulting Underwriter, acting severally and not jointly, agrees to purchase from the Company that number
of Default Shares that bears the same proportion of the total number of Default Shares then being purchased as the number of Firm Shares set forth opposite the name of such Underwriter in
Schedule I hereto bears to the aggregate number of Firm Shares set forth opposite the names of the non-defaulting Underwriters, subject, however, to such adjustments to eliminate
fractional shares as the Lead Managers in their sole discretion shall make. 



        (b)   In
the event that the aggregate number of Default Shares exceeds 10% of the number of Firm Shares or Additional Shares, as the case may be, the Lead Managers may in
their discretion arrange for themselves or for another party or parties (including any non-defaulting Underwriter or Underwriters who so agree) to purchase the Default Shares on the terms
contained herein. In the event that within five calendar days after such a default the Lead Managers do not arrange for the purchase of the Default Shares as provided in this Section 9, this
Agreement or, in the case of a default with respect to the Additional Shares, the obligations of the Underwriters to purchase and of the Company to sell the Additional Shares shall thereupon
terminate, without liability on the part of the Company with respect thereto (except in each case as provided in Sections 5, 7, 8, 10 and 11(d)) or the Underwriters, but nothing in this Agreement
shall relieve a defaulting Underwriter or Underwriters of its or their liability, if any, to the other Underwriters and the Company for damages occasioned by its or their default hereunder. 


19





 



        (c)   In
the event that any Default Shares are to be purchased by the non-defaulting Underwriters, or are to be purchased by another party or parties as aforesaid,
the Lead Managers or the Company shall have the right to postpone the Closing Date or Additional Closing Date, as the case may be for a period, not exceeding five business days, in order to effect
whatever changes may thereby be made necessary in the Registration Statement or the Prospectus or in any other documents and arrangements, and the Company agrees to file promptly any amendment or
supplement to the Registration Statement or the Prospectus which, in the opinion of Underwriters' Counsel, may thereby be made necessary or advisable. The term "Underwriter" as used in this Agreement
shall include any party substituted under this Section 9 with like effect as if it had originally been a party to this Agreement with respect to such Firm Shares and Additional Shares. 



        10.    Survival of Representations and Agreements.    All representations and warranties, covenants and agreements of
the Underwriters and the Company contained in this Agreement or in certificates of officers of the Company or any Subsidiary submitted pursuant hereto, including the agreements contained in
Section 5, the indemnity agreements contained in Section 7 and the contribution agreements contained in Section 8, shall remain operative and in full force and effect regardless
of any investigation made by or on behalf of any Underwriter or any controlling person thereof or by or on behalf of the Company, any of its officers and directors or any controlling person thereof,
and shall survive delivery of and payment for the Shares to and by the Underwriters. The representations contained in Section 1 and the agreements contained in Sections 5, 7, 8, 10 and
11 hereof shall survive any termination of this Agreement, including termination pursuant to Section 9 or 11 hereof. 


        11.    Effective Date of Agreement; Termination.    


        (a)   The
Lead Managers shall have the right to terminate this Agreement at any time prior to the Closing Date or to terminate the obligations of the Underwriters to purchase
the Additional Shares at any time prior to the Additional Closing Date, as the case may be, if (i) any domestic or international event or act or occurrence has materially disrupted, or in the
opinion of the Lead Managers will in the immediate future materially disrupt, the market for the Company's securities or securities in general; or (ii) trading on The New York Stock Exchange
("the NYSE") or The NASDAQ National Market (the "NASDAQ") shall have been suspended or been made subject to material limitations, or minimum or maximum prices for trading shall have been fixed, or
maximum ranges for prices for securities shall have been required, on the NYSE or the NASDAQ or by order of the Commission or any other governmental authority having jurisdiction; or (iii) a
banking moratorium has been declared by any state or federal authority or if any material disruption in commercial banking or securities settlement or clearance services shall have occurred; or
(iv) (A) there shall have occurred any outbreak or escalation of hostilities or acts of terrorism involving the United States or there is a declaration of a national emergency or war by
the United States or (B) there shall have been any other calamity or crisis or any change in political, financial or economic conditions if the effect of any such event in (A) or (B), in the
judgment of the Lead Managers, makes it impracticable or inadvisable to proceed with the offering, sale and delivery of the Firm Shares or the Additional Shares, as the case may be, on the terms and
in the manner contemplated by the Prospectus. 


        (b)   Any
notice of termination pursuant to this Section 11 shall be in writing. 



        (c)   If
this Agreement shall be terminated pursuant to any of the provisions hereof (other than pursuant to Section 9(b) hereof), or if the sale of the Shares provided
for herein is not consummated because any condition to the obligations of the Underwriters set forth herein is not satisfied or because of any refusal, inability or failure on the part of the Company
to perform any agreement herein or comply with any provision hereof, the Company will, subject to demand by the Lead Managers, reimburse the Underwriters for all out-of-pocket
expenses (including the fees and expenses of their counsel), incurred by the Underwriters in connection herewith. Notwithstanding any termination of this 


20





 

Agreement,
the provisions of this Section 11 and of Sections 1, 5, 7, 8 and 12 through 17, inclusive, shall be in full force and effect at all times after the execution hereof. 


        12.    Notices.    All communications hereunder, except as may be otherwise specifically provided herein, shall be in
writing, and: 


        (a)   if
sent to any Underwriter, shall be mailed, delivered, or faxed and confirmed in writing, to such Underwriter c/o Bear, Stearns & Co. Inc.,
383 Madison Avenue, New York, New York 10179, Attention: Stephen Parish, Senior Managing Director, Equity Capital Markets, with a copy to Simpson Thacher & Bartlett at
425 Lexington Avenue, New York, New York 10017, Attention: Gary L. Sellers; 


        (b)   if
sent to the Company, shall be mailed, delivered, or faxed and confirmed in writing to the Company and its counsel at the addresses set forth in the Registration
Statement, Attention: Martin P. Galvan, Chief Financial Officer, with a copy to Morgan, Lewis & Bockius LLP, 1701 Market Street, Philadelphia, Pennsylvania 19103,
Attention: Stephen A. Jannetta. 


provided, however, that any notice to an Underwriter pursuant to Section 7 shall be delivered or sent by mail or facsimile transmission to such
Underwriter at its address set forth in its acceptance facsimile to the Lead Managers, which address will be supplied to any other party hereto by the Lead Managers upon request. Any such notices and
other communications shall take effect at the time of receipt thereof. 


        13.    Parties.    This Agreement shall inure solely to the benefit of, and shall be binding upon, the Underwriters
and the Company and the controlling persons, directors, officers, employees and agents referred to in Sections 7 and 8 hereof, and their respective successors and assigns, and no other person
shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Agreement or any provision herein contained. This Agreement and all
conditions and provisions hereof are intended to be for the sole and exclusive benefit of the parties hereto and said controlling persons and their respective successors, officers, directors, heirs
and legal representatives, and it is not for the benefit of any other person, firm or corporation. The term
"successors and assigns" shall not include a purchaser, in its capacity as such, of Shares from any of the Underwriters. 


        14.    Governing Law; Waiver of Jury Trial.    This Agreement shall be governed by and
construed in accordance with the laws of the State of New York. THE COMPANY (ON BEHALF OF ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON BEHALF OF ITS EQUITY HOLDERS
AND CREDITORS) AND EACH OF THE UNDERWRITERS HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE REGISTRATION STATEMENT AND THE PROSPECTUS. 


        15.    Amendments.    No amendment or waiver of any provision of this Agreement, nor any consent or approval to any
departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 


        16.    Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be deemed to
be an original, but all such counterparts shall together constitute one and the same instrument. Delivery of a signed counterpart of this Agreement by facsimile transmission shall constitute valid and
sufficient delivery thereof. 


        17.    Headings.    The headings herein are inserted for convenience of reference only and are not intended to be part
of, or to affect the meaning or interpretation of, this Agreement. 


21





 



        18.    Time is of the Essence.    Time shall be of the essence of this Agreement. As used herein, the term "business
day" shall mean any day when the Commission's office in Washington, D.C. is open for business. 


        19.    Knowledge Qualifier.    The phrases "to the Company's knowledge" and "to the knowledge of the Company or any
Subsidiary," as used in this Agreement, means knowledge based on an investigation that is reasonable in light of the Company's obligations under the Securities Act and sufficient to provide a
reasonable basis for making the statements so qualified. 


[signature
page follows] 


22






        If
the foregoing correctly sets forth your understanding, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement
among us. 



	 	 	 	 	 	 	Very truly yours,
	

 	
 	

 	
 	

 	
 	

VIASYS HEALTHCARE INC.
	

 	
 	

 	
 	

 	
 	

By:	
 	

/s/  RANDY H. THURMAN      

	 	 	 	 	 	 	 	 	Name:	 	Randy H. Thurman
	 	 	 	 	 	 	 	 	Title:	 	Chief Executive Officer and

Chairman of the Board of Directors
	

Accepted as of the date first above written
	

BEAR, STEARNS & CO. INC.
	

By:	
 	

    
	
 	

 	
 	

 	
 	

 
	 	 	Name:	 	Stephen Parish	 	 	 	 	 	 
	 	 	Title:	 	Senior Managing Director	 	 	 	 	 	 
	

J.P. MORGAN SECURITIES INC.
	

By:	
 	

    
	
 	

 	
 	

 	
 	

 
	 	 	Name:	 	Sonia Lee	 	 	 	 	 	 
	 	 	Title:	 	Vice President	 	 	 	 	 	 





On
behalf of themselves and the other

Underwriters named in Schedule I hereto. 







 
 

SCHEDULE I    
    



	Underwriter
	 	Total Number of Firm

Shares to be Purchased
	 	Number of Additional

Shares to be Purchased if

Option is Fully Exercised

	Bear, Stearns & Co. Inc.	 	1,035,000	 	155,250
	J.P. Morgan Securities Inc.	 	1,035,000	 	155,250
	CIBC World Markets Corp.	 	330,000	 	49,500
	Needham & Company, Inc.	 	330,000	 	49,500
	CJS Securities, Inc.	 	135,000	 	20,250
	Wm Smith Securities, Incorporated	 	135,000	 	20,250
	 	Total	 	3,000,000	 	450,000
	 	 	
	 	








 
 

EXHIBIT A
  
    Subsidiaries    
    



	Subsidiary
	 	Jurisdiction
	 	Ownership
	 
	Bird Products Corporation	 	California	 	100	%
	 	Bird Life Design Corporation	 	California	 	100	%
	Corpak LLC	 	Delaware	 	100	%
	E.M.E. (Electro Medical Equipment) Limited	 	England	 	100	%
	 	EME Medical Limited	 	England	 	100	%
	 	Synchromed Limited	 	England	 	100	%
	 	Synchrony Limited	 	England	 	100	%
	EME Medical Inc.	 	Delaware	 	100	%
	 	EME Medical LLC	 	Nevada	 	100	%
	Grason-Stadler, Inc.	 	Massachusetts	 	100	%
	Nicolet Biomedical Japan Inc.	 	Japan	 	100	%
	Nicolet Biomedical Ltd.	 	England	 	100	%
	Nicolet Vascular Inc.	 	Delaware	 	100	%
	Scimed Limited	 	England	 	100	%
	SensorMedics Corporation	 	California	 	100	%
	 	Erich Jaeger Holding Deutschland GmbH	 	Germany	 	100	%
	 	 	VIASYS Healthcare GmbH	 	Germany	 	100	%
	 	 	 	HMS Health Management Systems GmbH	 	Germany	 	100	%
	 	 	 	Erich Jaeger Inc.	 	Delaware	 	100	%
	 	 	 	Sensormedics B.V.	 	Netherlands	 	100	%
	 	 	 	 	Erich Jaeger Benelux B.V.	 	Netherlands	 	100	%
	 	 	Erich Jaeger Ges.m.H.	 	Austria	 	100	%
	 	 	Erich Jaeger U.K. Ltd.	 	England	 	100	%
	 	 	Nicolet EME GmbH	 	Germany	 	100	%
	 	 	SensorMedics GmbH	 	Germany	 	100	%
	Tecomet Inc.	 	Massachusetts	 	100	%
	Thermedics Polymer Products LLC	 	Delaware	 	100	%
	VIASYS Healthcare S.A.R.L.	 	France	 	100	%








  



 
 

ANNEX I    
    
    Form of Opinion of U.S. Counsel to the Company    
    


        1.     The
Company has been duly incorporated, and each of the Company and the Subsidiaries listed on Exhibit A (collectively, the "Material U.S. Subsidiaries") validly
exists or subsists, as applicable, as a corporation or limited liability company in good standing under the laws of its jurisdiction of incorporation or formation, with the corporate or limited
liability company power and authority, as applicable, to own its properties and conduct its business as described in the Registration Statement and the Prospectus. 



        2.     The
Company has an authorized capitalization as set forth in the Registration Statement and the Prospectus under the caption "Capitalization". The Shares to be delivered
on the Closing Date and the Additional Closing Date, if any, have been duly authorized and, when issued and delivered in accordance with the Underwriting Agreement, will be validly issued, fully paid
and non-assessable and will not have been issued in violation of or subject to statutory preemptive rights, preemptive rights under the Company's charter or by-laws or, to such
counsel's knowledge, similar rights that entitle or will entitle any person to acquire any Shares from the Company upon issuance or sale thereof. All of the issued shares of capital stock of each
Material U.S. Subsidiary of the Company are owned directly or indirectly by the Company. The Common Stock, the Firm Shares and the Additional Shares conform to the descriptions thereof contained in
the Registration Statement and the Prospectus. 


        3.     To
such counsel's knowledge, there are no judicial, regulatory or other legal or governmental proceedings pending to which the Company or any of its Subsidiaries is a
party or of which any property of the Company or any of its Material U.S. Subsidiaries is the subject that are required to be described in the Registration Statement or the Prospectus and are not so
described. 


        4.     The
execution, delivery, and performance of the Underwriting Agreement and consummation of the transactions contemplated by Underwriting Agreement, the Registration
Statement and the Prospectus do not and will not (A) conflict with or result in a breach of any of the terms and provisions of, or constitute a default (or an event which with notice or lapse
of time, or both, would constitute a default) 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 Material U.S.
Subsidiaries pursuant to, any material contract filed with the Securities and Exchange Commission as an exhibit to the Company's Annual Report on Form 10-K for the fiscal year ended
December 28, 2002 or (B) violate or conflict with any provision of the certificate of incorporation or by-laws of the Company or any of its Material U.S. Subsidiaries, or
(C) to the knowledge of such counsel, any judgment, decree, order, statute, rule or regulation of any court or any judicial, regulatory or other legal or governmental agency or body having
jurisdiction over the Company, any of its Material U.S. Subsidiaries or any of their respective property or assets, except, in the case of clauses (A) and (C) above, for any such
conflict, breach, default or violation that would not, in the aggregate, have a material adverse effect on the Company. 


        5.     No
consent, approval, authorization, order, registration, filing, qualification, license or permit of or with any court or any judicial, regulatory or other legal or
governmental agency or body is required for the execution, delivery and performance of the Underwriting Agreement or consummation of the transactions contemplated by the Underwriting Agreement, the
Registration Statement and the Prospectus, except for (1) such as may be required under applicable state securities or blue sky laws in connection with the purchase and distribution of the
Shares by the Underwriters (as to which such counsel need express no opinion), (2) such as have been made or obtained under the Securities Act and (3) such as are required by the NASD. 


        6.     The
Registration Statement and the Prospectus and any amendments thereof or supplements thereto (other than the financial statements and notes thereto, schedules and
other financial data included or incorporated by reference therein, as to which no opinion need be rendered), when they 


1





 



became
effective or were filed with the Commission, as the case may be, complied as to form in all material respects with the requirements of the Securities Act, the Exchange Act and the Rules and
Regulations. The documents filed under the Exchange Act and incorporated by reference in the Registration Statement and the Prospectus or any amendment thereof or supplement thereto (other than the
financial statements and notes thereto, schedules and other financial data included or incorporated by reference therein, as to which no opinion need be rendered), when they became effective or were
filed with the Commission, as the case may be, complied as to form in all material respects with the Securities Act or the Exchange Act, as applicable, and the Rules and Regulations. 


        7.     The
statements under the captions "Description of Capital Stock" and "Plan of Distribution" in the Prospectus; the statements in Item 15 of Part II of the
Registration Statement; and "Legal Proceedings" in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2002 incorporated by reference in the
Registration Statement, insofar as such statements constitute a summary of the legal matters, documents or proceedings referred to therein, fairly present the information called for with respect to
such legal matters, documents and proceedings. The statements under the captions "Business—Government Regulation—United States" and "—Third Party Reimbursement"
(insofar as such statements relate to the United States) in the Form 10-K incorporated by reference in the Registration Statement constitute an accurate summary of the legal
matters, documents or proceedings referred to therein. 


        8.     The
Company is not and, after giving effect to the offering and sale of the Shares and the application of the proceeds thereof as described in the Registration Statement
and the Prospectus, will not be, an "investment company," as such term is defined in the Investment Company Act of 1940, as amended. 


        9.     Based
upon the oral advice of the members of the staff of the Division of Corporation Finance of the Commission, the Registration Statement was declared effective under
the Securities Act as of June 5, 2003, and, to the knowledge of such counsel, no stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereof has been issued and no proceedings therefor have been initiated or threatened by the Commission and all filings required by Rule 424(b) under the Securities Act have been
made. 


        10.   The
Company has the corporate power and authority to execute and deliver this Agreement, to deliver the Shares and to perform its obligations hereunder, and all
corporate action required to be taken for the due authorization, execution and delivery of this Agreement, the delivery of the Shares and the consummation of the transactions contemplated by
Underwriting Agreement, the Registration Statement and the Prospectus and as described in the Registration Statement and the Prospectus have been duly and validly taken. The Underwriting Agreement has
been duly executed and delivered by the Company. 


        11.   To
the knowledge of such counsel, no contract or agreement is required to be filed as an exhibit to the Registration Statement that is not so filed. 



        12.   To
the knowledge of such counsel, there are no contracts, agreements or understandings between the Company and any person granting such person the right to require the
Company to include any securities of the Company owned or to be owned by such person in the securities registered pursuant to the Registration Statement. 


        In
addition, such opinion shall also contain a statement (a) that such counsel has participated in conferences with officers and representatives of the Company, representatives of
the independent public accountants for the Company and the Underwriters at which the contents of the Registration Statement and the Prospectus were discussed and, although such counsel does not pass
upon and does not assume any responsibilities for the accuracy, completeness or fairness of the statements contained in the Registration Statement or Prospectus (except to the extent set forth in
paragraph 8 above), no 


2





 



facts
have come to the attention of such counsel which would lead such counsel to believe that either the Registration Statement, at the time it became effective (including the information deemed to
be part of the Registration Statement at the time of effectiveness pursuant to Rule 430A(b), if applicable), or any amendment thereof made prior to the Closing Date, as of the date of such
amendment, contained or incorporated by reference any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements
therein not misleading or (b) that the Prospectus (including the documents incorporated by reference therein), as of its date (or any amendment thereof or supplement thereto made prior to the
Closing Date as of the date of such amendment or supplement) and as of the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (it being understood that, with respect to clauses
(a) and (b) above, such counsel need make no statement with respect to the financial statements and notes thereto, financial schedules and other financial data included or incorporated
by reference therein). 


3





 
 
 

EXHIBIT A TO FORM OF OPINION OF U.S. COUNSEL TO THE COMPANY    
    



	Subsidiary
	 	Jurisdiction
	 	Ownership
	 
	Bird Products Corporation	 	California	 	100	%
	Corpak LLC	 	Delaware	 	100	%
	Grason-Stadler, Inc.	 	Massachusetts	 	100	%
	Nicolet Vascular Inc.	 	Delaware	 	100	%
	SensorMedics Corporation	 	California	 	100	%
	Tecomet Inc.	 	Massachusetts	 	100	%




4






  



 
 

ANNEX II
  
    Form of Opinion of German Counsel to the Company    
    



        1.     Each
of Erich Jaeger Holding Deutschland GmbH, VIASYS Healthcare GmbH, HMS Health Management Systems GmbH, Nicolet EME GmbH and SensorMedics GmbH (collectively, the
"German Subsidiaries") is a private company with limited liability (GmbH) duly incorporated and validly existing under the laws of the Federal Republic
of Germany. Each of the German Subsidiaries has the requisite corporate power and authority to own its properties and assets and to carry on its business as currently being conducted. 


        2.     The
share capital of each of the German Subsidiaries, as reflected in the certified excerpts from the Commercial Registers referred to under paragraphs II.1, II.3,
II.5, II.7 and II.9, constitutes all the respective German Subsidiary share capital, and there are no outstanding commitments to issue any additional shares. The share capital for each of the German
Subsidiaries has been fully paid, is non-assessable and owned directly or indirectly by the Company, free and clear of all Liens, except for the pledge on the shares of certain of the
German Subsidiaries in connection with the Credit Agreement dated May 31, 2002, among the Company, the banks parties thereto and certain other parties. 


        3.     To
the knowledge of such counsel, there are no material pending judicial, regulatory or other legal or governmental proceedings to which any of the German Subsidiaries is
a party or of which any property of any of the German Subsidiaries is the subject. 



        4.     The
execution, delivery, and performance of the Underwriting Agreement and consummation of the transactions contemplated by Underwriting Agreement, the Registration
Statement and the Prospectus do not and will not (A) violate or conflict with any provision of the organizational documents of any German Subsidiary or (B) to the knowledge of such
counsel, violate or conflict with any judgment, decree, order, statute, rule or regulation of any court or any judicial, regulatory or other legal or governmental agency or body in Germany, except, in
the case of clause (B) above, for any such conflict, breach, default or violation that would not, individually or in the aggregate, have a Material Adverse Effect. 



        5.     No
consent, approval, authorization, order, registration, filing, qualification, license or permit with any court or any judicial, regulatory or other legal or
governmental agency or body in Germany is required for the execution, delivery and performance of the Underwriting Agreement or consummation of the transactions contemplated by the Underwriting
Agreement, the Registration Statement and the Prospectus. 


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ANNEX III
  
    Form of Lock-Up Agreement    
    


Bear,
Stearns & Co. Inc.

J.P. Morgan Securities Inc.

As Representatives of the several

Underwriters referred to below 


c/o
Bear, Stearns & Co. Inc.

383 Madison Avenue

New York, New York 10179

Attention: Equity Capital Markets 


VIASYS Healthcare Inc. Lock-Up Agreement  



Ladies
and Gentlemen: 


        This
letter agreement (this "Agreement") relates to the proposed public offering (the "Offering") by VIASYS Healthcare Inc., a Delaware corporation (the "Company"), of its common
stock, par value $0.01 per share (the "Stock"). 


        In
order to induce you and the other underwriters for which you act as representatives (the "Underwriters") to underwrite the Offering, the undersigned hereby agrees that, without the
prior written consent of Bear, Stearns & Co. Inc. ("Bear Stearns") and J.P. Morgan Securities Inc. ("JPMorgan"), during the period from the date hereof until ninety
(90) days from the date of the final prospectus for the Offering (the "Lock-Up Period"), the undersigned (a) will not, directly or indirectly, offer, sell, agree to offer or
sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, borrow or otherwise dispose of any Relevant Security (as defined below), and (b) will
not establish or increase any "put equivalent position" or liquidate or
decrease any "call equivalent position" with respect to any Relevant Security (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder), or otherwise enter into any swap, derivative or other transaction or arrangement that transfers to another, in whole or in part, any economic consequence of
ownership of a Relevant Security, whether or not such transaction is to be settled by delivery of Relevant Securities, other securities, cash or other consideration. As used herein "Relevant Security"
means the Stock, any other equity security of the Company or any of its subsidiaries and any security convertible into, or exercisable or exchangeable for, any Stock or other such equity security. 


        The
undersigned hereby authorizes the Company during the Lock-Up Period to cause any transfer agent for the Relevant Securities to decline to transfer, and to note stop
transfer restrictions on the stock register and other records relating to, Relevant Securities for which the undersigned is the record holder and, in the case of Relevant Securities for which the
undersigned is the beneficial but not the record holder, agrees during the Lock-Up Period to cause the record holder to cause the relevant transfer agent to decline to transfer, and to
note stop transfer restrictions on the stock register and other records relating to, such Relevant Securities. The undersigned hereby further agrees that, without the prior written consent of Bear
Stearns and JPMorgan, during the Lock-up Period the undersigned (x) will not file or participate in the filing with the Securities and Exchange Commission of any registration
statement, or circulate or participate in the circulation of any preliminary or final prospectus or other disclosure document with respect to any proposed offering or sale of a Relevant Security and
(y) will not exercise any rights the undersigned may have to require registration with the Securities and Exchange Commission of any proposed offering or sale of a Relevant Security. 



        The
undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Agreement and that this Agreement constitutes the legal, valid and
binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents necessary in connection with enforcement hereof.
Any obligations of 





 



the
undersigned shall be binding upon the successors and assigns of the undersigned from the date first above written. 



        This
Agreement shall be governed by and construed in accordance with the laws of the State of New York. Delivery of a signed copy of this letter by facsimile transmission shall be
effective as delivery of the original hereof. 



	 	 	Very truly yours,
	

 	
 	

By:	
 	

    

	

 	
 	

Print Name:	
 	

    





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QuickLinks



Exhibit 10.1



SCHEDULE I

EXHIBIT A Subsidiaries


ANNEX I Form of Opinion of U.S. Counsel to the Company

EXHIBIT A TO FORM OF OPINION OF U.S. COUNSEL TO THE COMPANY


ANNEX II Form of Opinion of German Counsel to the Company


ANNEX III Form of Lock-Up Agreement