Document:

Exhibit
10.5

 

STOCK
PURCHASE AGREEMENT

 

This Stock Purchase
Agreement (this “Agreement”) is made as of September 17, 2003, by and
between FCG Management Services, LLC, a Delaware limited liability company (the
“Company”), and The Trustees of the University of Pennsylvania, a non-profit
corporation incorporated under the laws of the Commonwealth of Pennsylvania,
owner and operator of the University of Pennsylvania Health System and its
affiliates (“Seller”).  The Company and
Seller are collectively referred to herein as the “parties.”

 

RECITALS

 

A.                                   The
Company and its ultimate parent entity, First Consulting Group, Inc. (“FCGI”)
desire to purchase the outstanding minority interests held in the Company by
Seller and New York and Presbyterian Hospital.

 

B.                                     Seller
owns 52 Class B Units of the Company (collectively, the “Units”).

 

C.                                     Seller
desires to sell to the Company, and the Company desires to purchase from
Seller, the Units for consideration consisting of One Million Eight Hundred
Sixty Thousand Dollars ($1,860,000) (the “Consideration”).

 

D.                                    As
part of the transaction described above, the parties will terminate that
certain Investor Rights Agreement dated April 11, 2001 by and among the
Company, FCG Management Holdings, Inc. (a wholly owned subsidiary of FCGI) and
the Seller (the “Investor Rights Agreement”), which includes acceleration by
the parties of the put/call options set forth in Section 3 of such
agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises and
the mutual promises herein made, and in consideration of the representations,
warranties, and covenants herein contained, the Company and Seller agree as
follows:

 

1.                                      PURCHASE AND SALE OF THE UNITS.

 

On and subject to the
terms and conditions of this Agreement, the Company agrees to purchase from
Seller, and Seller agrees to sell to the Company, the Units.  Further, the parties agree to accelerate the
put/call options set forth in Section 3 of the Investor Rights Agreement
and terminate the Investor Rights Agreement effective with the Closing (as
defined in Section 2 below).  As
full and complete consideration for the foregoing, the Company agrees to pay
the Consideration to the Seller.

 

2.                                      CLOSING.

 

The closing (the
“Closing”) of the transaction shall occur concurrently with the execution of
this Agreement, or at such other time mutually agreeable to the parties.  At the Closing, the Seller shall deliver to
the Company (i) a duly executed stock power for transfer of the Units to the
Company; and (ii) a duly executed copy of this Agreement.  At the Closing, the Company shall deliver to
the Seller (i) the Consideration via wire transfer to an account specified in
writing by Seller; and (ii) a duly executed copy of this Agreement.  Effective with the Closing, (i) Seller shall
cease to be a “Member” of the Company; and (ii) the Investor Rights Agreement,
including, but not limited to, the put and call options set forth in
Section 3 thereof, shall terminate and be of no further force and effect.

 

3.                                      REPRESENTATIONS AND WARRANTIES.

 

(a)                                  Representations
and Warranties of Seller.  Seller
represents and warrants to the Company as follows:

 

(i)                                     Authorization
of Transaction.  All corporate
action on the part of the Seller, its officers, directors and stockholders
necessary for the authorization, execution and delivery of this Agreement and
the performance of all obligations of the Seller hereunder has been taken.  This Agreement has been duly executed and
delivered by the Seller and constitutes a valid and legally binding obligation
of

 

 

the Seller, enforceable in accordance with its terms,
except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies.

 

(ii)                                  Noncontravention.  To Seller’s knowledge, neither the execution
and the delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will conflict with, result in a breach of, or constitute a
default under, any agreement to which Seller is a party.

 

(iii)                               Brokers’
Fees.  Seller has no liability or
obligation to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement for which the
Company could become liable or obligated.

 

(iv)                              Units.  Seller is the sole beneficial holder and
record holder of the Units, and has good and marketable title to the Units,
free and clear of any and all covenants, conditions, restrictions, liens,
security interests and claims, other than those arising under applicable
securities laws and this Agreement Seller
has the absolute and unrestricted right, power and authority to sell, transfer
and assign the Units to the Company pursuant to this Agreement.  The sale of the Units is not subject to any right of first refusal or offer,
right of co-sale or other right restricting or otherwise encumbering the Units
included in any agreement to which Seller is a party.  Upon payment for, and delivery of, the Units in accordance with
the terms of this Agreement, good and marketable title to the Units, free and
clear of any liens, claims, encumbrances, security interests or other adverse
claims whatsoever will be transferred to, and vested in, the Company.

 

(v)                                 Consents.  Seller has made, filed, given or obtained
(or will make, file, give or obtain) (a) all consents, approvals or
authorizations of, expiration or termination of any waiting period requirements
of, or filings, registrations, qualifications, declarations or designations
with or by any governmental or political subdivision or department thereof, any
governmental regulatory body, commission, board, bureau, agency or
instrumentality, or any court or arbitrator or alternative dispute resolution
body, in each case whether domestic or foreign, federal, state or local
(“Governmental Authority”) that are required prior to the Closing to be made,
filed, given or obtained by Seller or controlling persons with, to or from any
Governmental Authority in connection with this Agreement and (b) all consents,
approvals and waivers required prior to the Closing to be given by, or obtained
from, any person or entity to or by Seller in connection with the consummation
of the Agreement, the failure of which would reasonably be expected to have a
material adverse effect on Seller, prevent or impair the ability of Seller to
perform any of its obligations under this Agreement or delay, prevent or impair
the consummation of any of the transactions contemplated by this Agreement.

 

(vi)                              Information.  Seller
has been afforded the opportunity (A) to ask such questions as Seller deemed
necessary of, and to receive answers from, representatives of the Company
concerning the operations and prospects of the Company and (B) to obtain such
additional information which the Company possesses or can acquire that Seller
deems necessary or appropriate to receive to form a decision on whether to
enter into this transaction, including, but not limited to, information that
can be found in the public filings of the Company’s parent, First Consulting
Group, Inc.

 

(vii)                           General
Solicitation.  Seller, nor any person acting on Seller’s behalf, has
offered or sold any of the Units by any form of general solicitation or general
advertising.

 

(viii)                        Experience.  Seller hereby represents and warrants that
it has such knowledge and experience in financial and business matters that it
is capable of evaluating the merits and risks of selling the Units.

 

(b)                                 Representations
and Warranties of the Company.  The
Company represents and warrants to Seller as follows:

 

(i)                                     Organization
of the Company.  The Company is a
corporation duly organized, validly existing, and in good standing under the
laws of the State of Delaware.

 

2

 

(ii)                                  Authorization
of Transaction.  All corporate
action on the part of the Company, its officers, directors and stockholders
necessary for the authorization, execution and delivery of this Agreement and
the performance of all obligations of the Company hereunder has been
taken.  This Agreement has been duly
executed and delivered by the Company and constitutes a valid and legally
binding obligation of the Company, enforceable in accordance with its terms,
except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies.

 

(iii)                               Noncontravention.  Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions contemplated hereby,
will conflict with, result in a breach of, or constitute a default under, any
agreement to which the Company is a party.

 

(iv)                              Consents.  The Company has made, filed, given or
obtained (a) all consents, approvals or authorizations of, expiration or
termination of any waiting period requirements of, or filings, registrations,
qualifications, declarations or designations with or by any Governmental
Authority that are required prior to the Closing to be made, filed, given or
obtained by the Company or controlling persons with, to or from any Governmental
Authority in connection with this Agreement and (b) all consents, approvals and
waivers required prior to the Closing to be given by, or obtained from, any
person or entity to or by the Company in connection with the consummation of
the Agreement, the failure of which would reasonably be expected to have a
material adverse effect on the Company, prevent or impair the ability of the
Company to perform any of its obligations under this Agreement or delay,
prevent or impair the consummation of any of the transactions contemplated by
this Agreement.

 

4.                                      COVENANTS.

 

The parties agree as
follows with respect to the period following the Closing:

 

(a)                                  General.  In case at any time after the Closing any
further action is necessary or desirable to carry out the purposes of this
Agreement, the parties agree to take such further action (including the
execution and delivery of such further instruments and documents) as any other
party reasonably may request.

 

(b)                                 Confidentiality.  Each party will maintain in confidence, and
will cause its directors, officers, employees, agents and advisors to maintain
in confidence, and not use to the detriment of the other party, any written,
oral or other information obtained in confidence from the other party in
connection with this Agreement or the transactions contemplated hereby, unless
(i) such information is already known to such party or to others not bound by a
duty of confidentiality or such information becomes publicly available through
no fault of such party, (ii) the use of such information is necessary or
appropriate in making any filing with or obtaining any consent or approval of
any governmental body or agency required for the consummation of the
transactions contemplated by this Agreement, or (iii) the furnishing or use of
such information is required by legal proceedings.

 

5.                                      MISCELLANEOUS.

 

(a)                                  Counsel.  The parties have had the opportunity to
consult with counsel in connection with this Agreement and the matters related
thereto.

 

(b)                                 Expense.  Each party to this Agreement will bear its
respective expenses incurred in connection with the preparation, execution and
performance of this Agreement and the transactions contemplated hereby,
including all fees and expenses of agents, representatives, counsel and
accountants.

 

(c)                                  Notices.  All notices, requests, demands and other
communications which are required or may be given under this Agreement shall be
in writing and shall be deemed to have been duly given when received if
personally delivered; when transmitted if transmitted by telecopy, electronic
or digital transmission method; the day after it is sent, if sent for next day
delivery to a domestic address by recognized overnight delivery service (e.g.,
Federal Express); and upon receipt, if sent by certified or registered mail,
return receipt requested.  In each case
notice shall be sent to (i) the Company at its corporate office in Long Beach,
California (Attn: General Counsel); or

 

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(ii) the Seller at the address set forth on the
signature page hereto; or (iii) such other place and with such other copies as
either party may designate as to itself by written notice to the others.

 

(d)                                 Entire
Agreement.  This Agreement
(including the documents referred to herein) constitutes the entire agreement
among the parties and supersedes any prior understandings, agreements or
representations by or among the parties, written or oral, to the extent they
related in any way to the subject matter hereof.

 

(e)                                  Enforcement
of this Agreement.  The parties
hereto agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with its specific
terms or was otherwise breached.  It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions hereof, this being in addition to any other remedy to
which they are entitled at law or in equity.

 

(f)                                    Succession
and Assignment.  This Agreement
shall be binding upon and inure to the benefit of the parties named herein and
their respective successors and permitted assigns.  No party may assign either this Agreement or any of its rights,
interests, or obligations hereunder without the prior written approval of the
other party.

 

(g)                                 Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

 

(h)                                 Headings.  The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

(i)                                     Governing
Law.  This Agreement shall be
governed by and construed in accordance with the domestic laws of the State of
Pennsylvania, without giving effect to the choice or conflict of law principles
thereof.

 

(j)                                     Amendments
and Waivers.  No amendment of any
provision of this Agreement shall be valid unless the same shall be in writing
and signed by the Company and Seller. 
No waiver by any party of any default, misrepresentation, or breach of
warranty or covenant hereunder, whether intentional or not, shall be deemed to
extend to any prior or subsequent default, misrepresentation or breach of
warranty or covenant hereunder or affect in any way any rights arising by
virtue of any prior or subsequent such occurrence.

 

(k)                                  Severability.  Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

 

(l)                                     Survival.  The representations and warranties of the
parties contained herein shall survive the Closing and continue in full force
and effect thereafter.

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first
above written.

 

	
  FCG MANAGEMENT SERVICES, LLC,

  a Delaware limited liability company

  	
  TRUSTEES OF THE UNIVERSITY OF

  PENNSYLVANIA,

  
	
   

  	
  a Pennsylvania
  non-profit corporation and owner and

  operator of the University of Pennsylvania Health System

  and its affiliates

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Michael A. Zuercher

  	
   

  	
  By: 

  	
  /s/

  	
  Ralph W. Muller

  	
   

  
	
  Name:  Michael A. Zuercher

  	
  Name: 

  	
  Ralph W. Muller

  
	
  Title:  Secretary

  	
  Title: Chief Executive
  Officer, University of

  Pennsylvania Health System

  
							

 

4Exhibit
10.6

 

STOCK
PURCHASE AGREEMENT

 

This
Stock Purchase Agreement (this “Agreement”) is made as of September 26,
2003, by and between First Consulting Group, Inc., a Delaware corporation (the
“Company”), and New York and Presbyterian Hospital (“Seller”).  The Company and Seller are collectively
referred to herein as the “parties.”

 

RECITALS

 

A.                                   The Company desires to purchase the
outstanding minority interests held in FCG Management Services, LLC (“FCGMS”)
by Seller and the Trustees of the University of Pennsylvania, Owner and
Operator of the University of Pennsylvania Health System.

 

B.                                     Seller owns 159 Class B Units of FCGMS
(collectively, the “Units”),

 

C.                                     Seller desires to sell to the Company, and
the Company desires to purchase from Seller, the Units for consideration
consisting of One Million (1,000,000) restricted shares of the Company’s common
stock (the “Shares”).

 

D.                                    The Shares delivered by the Company to Seller
under this Agreement shall be subject to certain market stand-off and resale
restrictions set forth in Section 4 of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual promises herein made, and in
consideration of the representations, warranties, and covenants herein
contained, the Company and Seller agree as follows:

 

1.                                      PURCHASE AND SALE OF THE
UNITS.

 

On
and subject to the terms and conditions of this Agreement, the Company agrees
to purchase from Seller, and Seller agrees to sell to the Company, the
Units.  In consideration of the
foregoing, the Company agrees to issue the Shares to Seller.

 

2.                                      CLOSING.

 

The
closing (the “Closing”) of the transaction shall occur concurrently with the
execution of this Agreement, or at such other time mutually agreeable to the
parties.  At the Closing, the Seller shall
deliver to the Company (i) a duly executed stock power for transfer of the
Units to the Company; and (ii) a duly executed copy of this Agreement.  At the Closing, the Company shall deliver to
the Seller (i) a share certificate representing the Shares; and (ii) a duly
executed copy of this Agreement. 
Effective with the Closing, Seller shall cease to be a “Member” of
FCGMS.

 

3.                                      REPRESENTATIONS AND
WARRANTIES.

 

(a)                                  Representations and Warranties of Seller. 
Seller represents and warrants to the Company as follows:

 

(i)                                     Authorization of Transaction.  All
corporate action on the part of the Seller and its officers and directors
necessary for the authorization, execution and delivery of this Agreement and
the performance of all obligations of the Seller hereunder has been taken.  This Agreement has been duly executed and
delivered by the Seller and constitutes a valid and legally

 

 

binding obligation of the
Seller, enforceable in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, and
(ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

 

(ii)                                  Noncontravention. 
Neither the execution and the delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will conflict with,
result in a breach of, or constitute a default under, any agreement to which
Seller is a party.

 

(iii)                               Brokers’ Fees. 
Seller has no liability or obligation to pay any fees or commissions to
any broker, finder, or agent with respect to the transactions contemplated by
this Agreement for which the Company could become liable or obligated.

 

(iv)                              Units.  Seller is the sole beneficial
holder and record holder of the Units, and has good and marketable title to the
Units, free and clear of any and all covenants, conditions, restrictions,
liens, security interests and claims, other than those arising under applicable
securities laws, this Agreement and the Amended and Restated Operating
Agreement of FCG Management Services, LLC (the “Operating Agreement”).  Subject to the terms of the Operating
Agreement, Seller has the absolute and
unrestricted right, power and authority to sell, transfer and assign the Units
to the Company pursuant to this Agreement. 
The sale of the Units is not
subject to any right of first refusal or offer, right of co-sale or other right
restricting or otherwise encumbering the Units included in any agreement to
which Seller is a party, except for the Operating Agreement.  Upon payment for, and delivery of, the Units
in accordance with the terms of this Agreement, good and marketable title to
the Units, free and clear of any liens, claims, encumbrances, security
interests or other adverse claims whatsoever will be transferred to, and vested
in, the Company.

 

(v)                                 Consents.  Seller has made, filed, given
or obtained (a) all consents, approvals or authorizations of, expiration or
termination of any waiting period requirements of, or filings, registrations,
qualifications, declarations or designations with or by any governmental or
political subdivision or department thereof, any governmental regulatory body,
commission, board, bureau, agency or instrumentality, or any court or
arbitrator or alternative dispute resolution body, in each case whether
domestic or foreign, federal, state or local (“Governmental Authority”) that
are required prior to the Closing to be made, filed, given or obtained by
Seller or controlling persons with, to or from any Governmental Authority in
connection with this Agreement and (b) all consents, approvals and waivers
required prior to the Closing to be given by, or obtained from, any person or
entity to or by Seller in connection with the consummation of the Agreement,
the failure of which would reasonably be expected to have a material adverse
effect on Seller, prevent or impair the ability of Seller to perform any of its
obligations under this Agreement or delay, prevent or impair the consummation
of any of the transactions contemplated by this Agreement.

 

(vi)                              Information.  Seller has been afforded the opportunity (A) to ask such questions as
Seller deemed necessary of, and to receive answers from, representatives of the
Company concerning the operations and prospects of the Company and (B) to
obtain such additional information which the Company possesses or can acquire
that Seller deems necessary or appropriate to receive to form a decision on
whether to enter into this transaction, including, but not limited to,
information that can be found in the Company’s public filings.

 

2

 

(vii)                           Experience.  Seller hereby represents and warrants that
it has such knowledge and experience in financial and business matters that it
is capable of evaluating the merits and risks of selling the Units.

 

(viii)                        General Solicitation. 
Seller, nor any person acting
on Seller’s behalf, has offered or sold any of the Units by any form of general
solicitation or general advertising.

 

(ix)                                Purchase Entirely for Own Account. This Agreement is made with the Seller in
reliance upon the Seller’s representation to the Company, which by the Seller’s
execution of this Agreement the Seller hereby confirms, that the Shares to be
received by the Seller will be acquired for investment for the Seller’s own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Seller has no present intention
of selling, granting any participation in or otherwise distributing the
same.  By executing this Agreement, the
Seller further represents that the Seller does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or
grant participations to the person or to any third person, with respect to any
of the Shares.

 

(x)                                   Accredited Seller. The Seller is an “accredited investor”
within the meaning of Securities and Exchange Commission (“SEC”) Rule 501 of
Regulation D, as presently in effect.

 

(xi)                                Restricted Securities. The Seller understands that the Shares are
characterized as “restricted securities” under the federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable regulations
such Shares may be resold without registration under the Securities Act of
1933, as amended (the “Securities Act”) only in certain limited circumstances
and subject to the terms of Section 4 of this Agreement.  In the absence of an effective registration
statement covering the Shares or an available exemption from registration under
the Securities Act, the Shares must be held indefinitely.  In this regard, the Seller represents that
it is familiar with SEC Rule 144, as presently in effect, and understands the
resale limitations imposed thereby and by the Securities Act.

 

(xii)                             Further Limitations on Disposition.  Without in any way limiting
the representations set forth above, the Seller further agrees until the
expiration of the Lock-Up Period (as defined in Section 4 of this
Agreement) not to make any disposition of all or any portion of the Shares
unless such transferee is an affiliate of Seller (an “Affiliate”) and such
Affiliate has agreed in writing for the benefit of the Company to be bound by
this Agreement,  including, without
limitation, the restrictions on transferability and resale set forth in
Section 4 of this Agreement. The Seller may not dispose of the
Shares to a party other than an Affiliate unless: (i) there is then in effect a
registration statement under the Act covering such proposed disposition and
such disposition is made in accordance with such registration statement; or
(ii) the Seller shall have notified the Company of the proposed disposition and
such disposition will not require registration of such Shares under the
Securities Act.

 

(xiii)                          Legends.  It is understood that the
certificates evidencing the Shares may bear the following legends:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
(THE “ACT”), OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE, AND MAY

 

3

 

NOT BE SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND QUALIFICATION UNDER
APPLICABLE STATE SECURITIES LAWS, OR AN EXEMPTION FROM SUCH REQUIREMENTS.

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE,
INCLUDING A LOCK-UP PERIOD THAT EXPIRES ON JANUARY 1, 2007, AS SET FORTH IN THE TERMS AND CONDITIONS OF A
STOCK PURCHASE AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE
SECURITIES, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

The
Company shall be obligated to reissue promptly unlegended certificates
evidencing the Shares at the request of any holder thereof if the securities
proposed to be disposed of may lawfully or pursuant to this Agreement be
disposed without registration, qualification or legend.

 

(xiv)                         No Short Positions.  Seller represents and warrants that, as of
the date hereof, it does not have a Short Position.  A “Short Position” means Seller holding a position in the common
stock of the Company achieved through the sale of common stock in a transaction
marked as a short sale, or a position achieved though any transactions designed
to have the same economic effect (such as the purchase or sale of puts, calls
or other derivative instrument).

 

(b)                                 Representations and Warranties of the Company.  The
Company represents and warrants to Seller as follows:

 

(i)                                     Organization of the Company.  The
Company is a corporation duly organized, validly existing, and in good standing
under the laws of the State of Delaware.

 

(ii)                                  Authorization of Transaction.  All
corporate action on the part of the Company, its officers, directors and
stockholders necessary for the authorization, execution and delivery of this
Agreement, the performance of all obligations of the Company hereunder, and the
authorization, issuance, sale and delivery of the Shares has been taken.  This Agreement has been duly executed and
delivered by the Company and constitutes a valid and legally binding obligation
of the Company, enforceable in accordance with its terms, except (i) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors’ rights generally,
and (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies.

 

(iii)                               Noncontravention. 
Neither the execution and the delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will conflict with,
result in a breach of, or constitute a default under, any agreement to which
the Company is a party.

 

(iv)                              Valid Issuance of Shares.  The
Shares, when issued, sold and delivered in accordance with the terms of this
Agreement for the consideration set forth herein, will be duly authorized and
duly and validly issued, fully paid and nonassessable and will be free and

 

4

 

clear of all claims, liens
and charges of the Company and free of restrictions on transfer, other than
restrictions on transfer under this Agreement and under applicable state and
federal securities laws.

 

(v)                                 Consents.  The Company has made, filed,
given or obtained (a) all consents, approvals or authorizations of, expiration
or termination of any waiting period requirements of, or filings,
registrations, qualifications, declarations or designations with or by any
Governmental Authority that are required prior to the Closing to be made,
filed, given or obtained by the Company or controlling persons with, to or from
any Governmental Authority in connection with this Agreement and (b) all
consents, approvals and waivers required prior to the Closing to be given by,
or obtained from, any person or entity to or by the Company in connection with
the consummation of the Agreement, the failure of which would reasonably be
expected to have a material adverse effect on the Company, prevent or impair
the ability of the Company to perform any of its obligations under this
Agreement or delay, prevent or impair the consummation of any of the
transactions contemplated by this Agreement.

 

(vi)                              Capitalization.  As
of June 27, 2003, the authorized capital stock of the Company consisted of
shares of capital stock divided into two classes or series as follows:  (i)  50,000,000 shares of Common Stock,
of which 24,807,648 shares were outstanding on such date and (ii) 10,000,000
shares of Preferred Stock, of which none were outstanding on such date. The
Common Stock has been designated and listed on the Nasdaq National Market.  All shares of the Company’s capital stock
outstanding on the date hereof have been duly authorized and are duly and
validly issued, fully paid and nonassessable, free from any liens created by
the Company with respect to the issuance and delivery thereof, and not subject
to preemptive rights, rights of first refusal or offer or any similar rights
(whether conferred by statute, under contract or otherwise).  As of June 27, 2003, there are
outstanding options to purchase 5,579,441 shares of Common Stock.

 

(vii)                           SEC Documents.  The
Company has timely filed with the Securities and Exchange Commission (the
“SEC”) all SEC Documents (as hereinafter defined) required to be filed by it
pursuant to the Federal securities laws and the SEC rules and regulations
promulgated thereunder.  The SEC
Documents filed by the Company were prepared in accordance with, and as of
their respective filing dates complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the rules and
regulations of the SEC thereunder, as the case may be, and none of the SEC
Documents contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary to make the
statements made therein, in light of the circumstances in which they were made,
not misleading, except to the extent such SEC Documents are corrected, updated
or superseded by a document subsequently filed with the SEC.  “SEC Documents” means each report, schedule,
form, statement or other document filed with the SEC by the Company pursuant to
Section 12 or 13(a) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) or pursuant to the Securities Act.

 

(viii)                        Financial Statements.  The
financial statements of the Company, including the notes thereto, included in
the SEC Documents (the “Company Financial Statements”) comply in all material
respects as to form with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto and have been prepared in
accordance with United States generally accepted accounting principles (“GAAP”)
consistently applied during the periods involved (except as may be indicated in
the notes thereto or, in the case of unaudited statements, as permitted by Form
10-Q under the Exchange Act) and

 

5

 

present fairly the financial
position of the Company at the dates thereof and the results of its operations
and cash flows for the periods then ended (subject, in the case of unaudited
financial statements, to normal year-end adjustments).  There has been no change in the Company’s
accounting policies except as described in the notes to the Company Financial Statements.  Except as reflected or reserved against in
the Company Financial Statements, the Company has no material liabilities or
other obligations, except for liabilities and obligations (i) incurred in the
ordinary course of business since the date of the most recent Company Financial
Statements or (ii) that would not be required to be reflected or reserved
against in the balance sheet of the Company prepared in accordance with GAAP.

 

(ix)                                Compliance with Laws.  The
Company has complied with, is not in violation of, and has not received any notices
of violation with respect to, any federal, state, local or foreign statute, law
or regulation with respect to the conduct of its business, or the ownership or
operation of its business, except for such violations or failures to comply
which would neither reasonably be expected to have a material adverse effect on
the Company nor prevent or impair the ability of the Company to perform any of
its obligations under this Agreement and delay, impair or prevent the
consummation of any transactions contemplated by this Agreement. As of the date
hereof, the Company has not received notice of any pending investigation of the
Company by the SEC.

 

(x)                                   Actions; Suits; Proceedings. 
Except as otherwise described in the Company’s SEC Documents, no action,
suit or proceeding by or before any court or governmental agency, authority or
body or any arbitrator involving the Company or its property is pending, or to
the best knowledge of the Company, threatened that would reasonably be expected
to (i) have a material adverse effect on the Company, (ii) prevent or impair
the ability of the Company to perform any of its obligations under this
Agreement, or (iii) delay, prevent or impair the consummation of any of the
transactions contemplated by this Agreement.

 

(xi)                                Offering.  Subject in part to the truth
and accuracy of Seller’s representations and warranties set forth in
Section 3(a) of this Agreement, the offer, sale and issuance of the Shares
as contemplated by this Agreement is and will be exempt from the registration requirements
of the Securities Act and any applicable state securities laws, and neither the
Company nor any authorized agent acting on its behalf has taken or will take
any action hereafter that would cause the loss of such exemption.

 

4.                                      COVENANTS.

 

The
parties agree as follows with respect to the period following the Closing:

 

(a)                                  General.  In case at any time after the
Closing any further action is necessary or desirable to carry out the purposes
of this Agreement, the parties agree to take such further action (including the
execution and delivery of such further instruments and documents) as any other
party reasonably may request.  

 

(b)                                 Confidentiality. 
Each party will maintain in confidence, and will cause its directors,
officers, employees, agents and advisors to maintain in confidence, and not use
to the detriment of the other party, any written, oral or other information
obtained in confidence from the other party in connection with this Agreement
or the transactions contemplated hereby, unless (i) such information is already
known to such party or to others not bound by a duty of confidentiality or such
information becomes publicly available through no fault of such party, (ii) the
use of such information is necessary or

 

6

 

appropriate in making any
filing with or obtaining any consent or approval of any governmental body or
agency required for the consummation of the transactions contemplated by this
Agreement, or (iii) the furnishing or use of such information is required by
legal proceedings.

 

(c)                                  Market Stand-Off Provisions and Restrictions
on Transfer and Resale of the Shares.  Until January 1, 2007,
Seller hereby agrees that it shall not Transfer (as defined below) the
Shares(the “Lock-Up Period”).  Upon
expiration of the Lock-Up Period, Seller shall be able to Transfer the Shares;
provided that, any Transfer of the Shares by Seller shall be subject to the
resale restrictions established for an “affiliate” under Rule 144(e) (or its
then-current analogous provision), regardless of whether Seller is then an
“affiliate” of the Company or whether Rule 144(k) (or its then-current
analogous provision) is available for resale of the Shares.    The foregoing restrictions shall not apply
to any Transfer pursuant to (i) a bona fide underwritten public offering
registered under the Securities Act; (ii) a merger, consolidation or
reorganization of the Company or a recapitalization of any equity securities of
the Company; (iii) a self-tender, tender or exchange offer; or (iv)
Section 3(a)(xii) of this Agreement to effect a transfer to an Affiliate.
For purposes of this paragraph, a “Transfer” shall mean any pledge, transfer,
sale, offer to sell, making any short sale of, granting any option for the
purchase of, or entering into any hedging or similar transaction with the same
economic effect as a sale of the Shares.

 

5.                                      MISCELLANEOUS.

 

(a)                                  Counsel.  The parties have had the
opportunity to consult with counsel in connection with this Agreement and the
matters related thereto.

 

(b)                                 Expense.  Each party to this Agreement
will bear its respective expenses incurred in connection with the preparation,
execution and performance of this Agreement and the transactions contemplated
hereby, including all fees and expenses of agents, representatives, counsel and
accountants.

 

(c)                                  Notices.  All notices, requests,
demands and other communications which are required or may be given under this
Agreement shall be in writing and shall be deemed to have been duly given when
received if personally delivered; when transmitted if transmitted by telecopy,
electronic or digital transmission method; the day after it is sent, if sent
for next day delivery to a domestic address by recognized overnight delivery
service (e.g., Federal Express); and upon receipt, if sent by certified or
registered mail, return receipt requested. 
In each case notice shall be sent to (i) the Company at its corporate
office in Long Beach, California (Attn: General Counsel); or (ii) the Seller at
the address set forth on the signature page hereto; or (iii) such other place
and with such other copies as either party may designate as to itself by
written notice to the others.

 

(d)                                 Entire Agreement.  This
Agreement (including the documents referred to herein) constitutes the entire
agreement among the parties and supersedes any prior understandings, agreements
or representations by or among the parties, written or oral, to the extent they
related in any way to the subject matter hereof.

 

(e)                                  Enforcement of this Agreement.  The
parties hereto agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in accordance with its
specific terms or was otherwise breached. 
It is accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof, this being in addition to any
other remedy to which they are entitled at law or in equity.

 

7

 

(f)                                    Succession and Assignment.  This
Agreement shall be binding upon and inure to the benefit of the parties named
herein and their respective successors and permitted assigns.  No party may assign either this Agreement or
any of its rights, interests, or obligations hereunder without the prior
written approval of the other party.

 

(g)                                 Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same
instrument.

 

(h)                                 Headings.  The section headings
contained in this Agreement are inserted for convenience only and shall not
affect in any way the meaning or interpretation of this Agreement.

 

(i)                                     Governing Law. 
This Agreement shall be governed by and construed in accordance with the
domestic laws of the State of New York, without giving effect to the choice or
conflict of law principles thereof.

 

(j)                                     Amendments and Waivers.  No
amendment of any provision of this Agreement shall be valid unless the same
shall be in writing and signed by the Company and Seller.  No waiver by any party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

 

(k)                                  Severability.  Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability
of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction.

 

(l)                                     Survival.  The representations and
warranties of the parties contained herein shall survive the Closing and
continue in full force and effect thereafter.

 

[SIGNATURE PAGE
FOLLOWS]

 

8

 

IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement
as of the date first above written.

 

	
  FIRST CONSULTING GROUP, INC.,
a Delaware corporation  

  	
  NEW YORK AND PRESBYTERIAN
  HOSPITAL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
											

 

9

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