Document:

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                                                                   EXHIBIT 10.29

                                                                  EXECUTION COPY

                               AGREEMENT TO TENDER

          THIS AGREEMENT TO TENDER (this "Agreement"), dated as of May 18, 2001,
between Bidder Corporation, a Florida corporation ("Bidder"), Comercial e
Inversiones Portfolio Limitada, a limited liability company organized under the
laws of Chile ("SH1") and Inversiones Portfolio S.A., a sociedad anonima cerrada
organized under the laws of Chile ("SH2" and together with SH1, the "Principal
Shareholders").

                               W I T N E S S E T H

          WHEREAS, as of the date hereof SH1 owns 68,569,591 shares of the
common stock of Laboratorios Chile, S.A., a sociedad anonima organized under the
laws of Chile (the "Company") and SH2 owns 18,003,708 shares of the common stock
of the Company and 70,400 ADS (representing 1,408,000 shares of the common stock
of the Company) (together with any Shares acquired by the Principal Shareholders
after the date hereof, the "PS Shares");

          WHEREAS, Bidder is interested in acquiring one hundred percent of the
Company's outstanding shares of common stock (the "Shares"), including any
Shares represented by American Depository Shares, pursuant to one or more
concurrent tender offers in Chile and the United States (collectively, the
"Offer");

          WHEREAS, in order to induce Bidder to commence the offer, Bidder has
requested and the Principal Shareholders have agreed to enter into this
Agreement.

          NOW, THEREFORE, in consideration of the foregoing and the premises and
the mutual representations, warranties, covenants and agreements contained
herein, and on the terms and subject to the conditions set forth herein, and
intending to be legally bound the parties agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

         Section  1.1 SPECIFIC DEFINITIONS. As used in this Agreement, the
following terms shall have the meanings set forth or referred to below:

          "ADS" or "AMERICAN DEPOSITORY SHARES" means each American Depositary
Share issued pursuant to the Amended and Restated Deposit Agreement dated as of
January 20, 2000 between the Company and the Bank of New York, N.A., as
Depositary, each of which in turn represents twenty (20) Shares.

          "AFFILIATE" of a specified Person means a Person who (at the time when
the determination is to be made) directly or indirectly through one or more
intermediaries, Controls, or is Controlled by, or is under common Control with
the specified Person.

          "ALTERNATIVE TRANSACTION" has the meaning set forth in Section 3.6.

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          "BYLAW AMENDMENTS" has the meaning set forth in Section 3.3(a).

          "COMPETING OFFER" has the meaning set forth in Section 3.5.

          "CONTROL" (including, with correlative meaning, the terms
"Controlling," "Controlled by" and "under common Control with") means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

          "EQUAL COMPETING OFFER" has the meaning set forth in Section 3.5.

          "EXCHANGE ACT" means the Securities and Exchange Act of 1934, as
amended.

          "EXPIRATION DATE" means the date that the Offer expires.

          "HIGHER COMPETING OFFER" has the meaning set forth in Section 3.5.

          "LAW" means any law, rule, regulation or order of any competent
governmental or regulatory authority, court or securities exchange, including
the Ley de Valores, and any other regulations or rules or applicable decrees
issued thereunder, as amended from time to time.

          "LEGAL REQUIREMENTS" has the meaning set forth in Section 4.3.

          "LEY DE VALORES" means Chilean Law No.  18,045, as amended.

          "MATERIAL ADVERSE CHANGE" shall mean any material adverse effect on
the condition (financial or otherwise), business, properties, assets,
liabilities or results of operation of the Company and its Subsidiaries, taken
as a whole.

          "MINIMUM CONDITION" means the minimum number of Shares that must be
tendered in the Offer as set forth in paragraph 7 of Exhibit A hereto, or as
subsequently reduced or waived in writing by Bidder.

          "OFFER PRICE" has the meaning set forth in Section 2.1.

          "ORDERS" has the meaning set forth in Section 4.3.

          "PERSON" means any individual, corporation (including any non-profit
corporation), association, general or limited partnership, organization,
business, limited liability company, firm, governmental entity, joint venture,
estate, trust, unincorporated organization or any other entity, association or
organization.

          "PS SHARES" has the meaning set forth in the recitals.

          "RELEASE AMOUNT" has the meaning set forth in Section 3.5.

          "SANTA ELISA CONTRACTS" means the Stock Option Agreement dated July 1,
1996, as amended and restated on February 22, 2000, between Comercial e
Inversiones Portfolio Limitada and Inversiones Santa Elisa Limitada and the

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Stock Option Agreement dated September 4, 1996, as amended and restated on
February 22, 2000, between Comercial e Inversiones Portfolio Limitada and
Inversiones Santa Elisa Limitada.

          "SEC" means the United States Securities and Exchange Commission.

          "SEC FILINGS" means filings made by the Company with the SEC pursuant
to the periodic reporting requirements contained in Sections 13(a), 13(c) or
15(d) of the Exchange Act and the rules and regulations promulgated thereunder.

          "SECURITIES AUTHORITIES" shall mean all relevant federal, provincial
and state securities commissions and stock exchange authorities and similar
entities and authorities in the United States and Chile, including the SEC and
SVS.

          "SECURITIES LAWS" shall mean, collectively, the Ley de Valores, SVS
regulations, Chilean Corporations Law, U.S. federal securities laws and
regulations, "blue sky" and other securities laws and regulations of the states
of the United States, rules of the Santiago Stock Exchange, rules of the New
York Stock Exchange, rules of the American Stock Exchange and any other
applicable securities laws, regulations or rules or stock exchange rules, in
each case as amended from time to time.

          "SHAREHOLDERS MEETING" has the meaning set forth in Section 3.3(a).

          "SUBSIDIARY" means any corporation or entity with respect to which a
specified Person (or a Subsidiary thereof) owns a majority of the common stock
(or equity securities) or has the power to vote or direct the voting of
sufficient securities to elect a majority of the directors (or similar Persons)
or any other corporation or entity which consolidates with such Person.

          "SVS" means the Superintendencia de Valores y Seguros of the Republic
of Chile.

          "TENDER OFFER DOCUMENTS" shall mean, collectively, (i) any and all
tender offer announcements required by Ley de Valores, the tender offer
prospectus required to be filed under Ley de Valores and all other documents
required to be filed by Bidder under Chilean Law in connection with the Offer
(and in each case, together with all amendments and supplements thereto), (ii)
any pre-commencement filing made by Bidder with respect to the Offer, and (iii)
the Tender Offer Statement on Schedule TO (together with all amendments and
supplements thereto) with respect to the Offer, which shall be filed by Bidder
on the date of commencement of the Offer, and which shall contain (as an exhibit
or otherwise) or incorporate by reference the offer to purchase and forms of the
related letter of transmittal and other ancillary offer documents and
instruments pursuant to which the Offer will be made.

          "TENDERING SHAREHOLDER" means any record or beneficial holder of
Shares who tenders Shares into the Offer.

          "THIRD PARTY" has the meaning set forth in Section 3.6.

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         Section  1.2 OTHER DEFINITIONAL PROVISIONS.

         (a) The words "HEREOF", "HEREIN", and "HEREUNDER" and words of similar
import, when used in this Agreement, refer to this Agreement as a whole and not
to any particular provision of this Agreement.

         (b) Terms defined in the singular have a comparable meaning when used
in the plural, and vice versa.

         (c) The terms "dollars" and "$" mean United States dollars.

                                   ARTICLE II

                                  TENDER OFFER

         Section 2.1 AGREEMENT TO COMMENCE OFFER. Subject to the provisions of
Section 2.2, Bidder shall commence, within twenty-one (21) days from the date of
this Agreement, an offer to acquire up to 100% of the Shares at a price equal to
$1.25 per Share (or $25.00 per ADS) in cash to each Tendering Shareholder;
provided, however, that the Bidder may, in its sole discretion, increase the per
Share price. The price per Share, or any higher amount per Share as may be paid
in the Offer, is hereinafter referred to as the "Offer Price." If the Offer is
consummated, the Bidder agrees to pay the Offer Price within three (3) business
days of the date the Offer is consummated.

         Section 2.2 CONDITIONS TO COMMENCE OFFER. Bidder's obligation to
commence the Offer is contingent upon the following conditions:

         (a) As of the date of the commencement of the Offer, (A) the Company
shall have timely filed all reports required to be filed by it pursuant to the
Exchange Act, (B) each such report complied as to form in all material respects
to the rules and regulations promulgated under the Exchange Act and (C) the
Company's SEC Filings shall not have contained at the time of their respective
filing untrue statements of material facts and shall not have omitted to state
material facts required to be stated therein in order to make the statements
therein, in light of the circumstances in which they were made, not misleading;

         (b) No change, event or development shall have occurred which would
reasonably be expected to cause a Material Adverse Change;

         (c) All the representations and warranties of the Principal
Shareholders are true and correct in all material respects as of the date Bidder
commences the Offer (other than the representations and warranties set forth in
Section 4.4, which representations and warranties, shall be true and correct in
all respects); and

         (d) Neither the Company nor its Subsidiaries shall have caused or
permitted any of the events set forth in Exhibit B to have occurred after the
date of this Agreement.

         Section 2.3 CONDITIONS TO THE OFFER. Except as provided below, Bidder
agrees that the Tender Offer Documents shall contain only those conditions
identified on Exhibit A hereto as conditions to Bidder's obligation to
consummate the Offer. Bidder reserves the right to waive any such conditions.

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Bidder will not, without the prior written consent of the Principal Shareholders
(which consent may not be unreasonably delayed), impose additional conditions to
the Offer, change any conditions to the Offer, or otherwise amend the Offer in
any respect; provided, however, that Bidder need not obtain the prior consent of
the Principal Shareholders to impose additional conditions or change any
condition if such addition or change (i) is imposed by any Securities
Authorities, or (ii) does not adversely affect the stockholders of the Company.

         Section 2.4 EXTENSIONS OF THE OFFER. Bidder reserves the right, in its
sole discretion, to extend the Offer beyond the Expiration Date as permitted by
Law.

         Section 2.5 OPPORTUNITY TO REVIEW AND COMMENT. Bidder agrees to provide
the Principal Shareholders with the opportunity to review and comment on (i) the
Tender Offer Documents (including any amendments or supplements thereto) and
(ii) any correspondence to Securities Authorities relating to such Tender Offer
Documents prior to filing such Tender Offer Documents. Bidder shall provide the
Principal Shareholders with copies of any correspondence from Securities
Authorities relating to the Tender Offer Documents (including any amendments or
supplements thereto) and keep the Principal Shareholders informed of the status
and details (including amendments or proposed amendments) of the Tender Offer
Documents on a current basis.

         Section 2.6 INFORMATION. Bidder agrees to advise the Principal
Shareholders, within one business day, orally and in writing, of any request for
information or comments from any governmental agency which could impact Bidder's
ability to consummate the Offer.

         Section 2.7 DUE DILIGENCE.

         (a) For a consecutive five business day period commencing no later than
the tenth business day prior to the Shareholders' Meeting, the Company, as
approved by the Board of Directors, shall have:

         (i)      provided, or cause to have been provided to Bidder and its
                  counsel, financial advisors, auditors or other
                  representatives, full access, during normal business hours, to
                  the offices, properties and books and records of the Company
                  and its Subsidiaries and to any previously identified
                  officers, directors, employees, consultants, financial
                  advisors or other personnel of the Company or its
                  Subsidiaries;

         (ii)     furnished, or cause to be furnished, to Bidder, its counsel,
                  financial advisors, auditors or other representatives, such
                  information or data relating to the Company and its

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                  Subsidiaries as Bidder, its counsel, financial advisors,
                  auditors or other representatives shall reasonably request in
                  advance of or during such five business day period; and

         (iii)    provided, or cause to have been provided, copies of all
                  documents, records and information (other than those which
                  cannot be provided by Law or contract) relating to the
                  business or operations of the Company and its Subsidiaries as
                  Bidder, its counsel, financial advisors, auditors or other
                  representatives may reasonably request in advance of or during
                  such five business day period.

Such five business day period will only commence when substantially all of the
information requested pursuant to subsections (a)(ii) above is ready for review
in a data room in Chile and Argentina; provided, however, that the Bidder shall
have delivered in writing to the Principal Shareholders a list of the requested
information within seven business days of the date hereof.

         (b) Not later than the tenth business day after commencement of due
diligence and, in any event not later than the day prior to the Shareholders
Meeting, the Bidder shall notify the Principal Shareholder and the Company as to
whether it elects to waive the condition set forth in paragraph 4 of Exhibit A.
If Bidder elects not to waive such condition, the Principal Shareholders shall
have no further obligations hereunder including with respect to the tender or
withdrawal of their Shares hereunder.

         (c) From the date of this Agreement until the second anniversary of the
Expiration Date, Bidder shall hold, and shall cause its officers, directors,
employees, counsel, financial advisors, auditors and other representatives to
hold, in confidence, unless compelled to disclose by judicial or administrative
process or other requirements of law, all confidential documents and information
concerning the Company and its Subsidiaries provided to Bidder, its counsel,
financial advisors, auditors or other representatives not previously made
publicly available by parties other than Bidder. If Bidder is compelled to
disclose confidential information by judicial or administrative process or other
requirements of Law, Bidder agrees to disclose only that portion of the
confidential information which Bidder believes it is legally required to
disclose. Bidder agrees to execute a confidentiality agreement with the Company
on customary terms prior to commencing due diligence.

                                  ARTICLE III

                    OBLIGATIONS OF THE PRINCIPAL SHAREHOLDERS

         Section 3.1 AGREEMENT TO TENDER. In order to induce Bidder to commence
the Offer, each of the Principal Shareholders agrees to tender (or cause the
record owner to tender) all the PS Shares and all shares beneficially and of
record owned by them in the Offer on the later of (a) three business days after
the commencement of the Offer, and (b) the business day after the Bidder waives
the condition set forth in paragraph 4 of Exhibit A, and with respect to any
Shares subsequently acquired, one business day after the acquisition of
beneficial ownership of such Shares. With respect to any PS Shares that are
subject to liens, such Shares will be tendered on the later of the time set
forth above or at such time that the liens, including those liens identified on
Schedule 4.4 shall have been removed; provided, however, that in no case shall
Principal Shareholders tender any such shares later than the business day prior
to the Shareholders Meeting. Except as permitted by Section 3.5, the Principal
Shareholders agree not to withdraw any such tendered Shares, until termination
of this Agreement pursuant to Section 6.1 hereof.

         Section 3.2 TRANSFER RESTRICTIONS. Except for liens identified in
Schedule 4.4, each of the Principal Shareholders agrees not to, directly or

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indirectly, sell, transfer, pledge or otherwise encumber any of the PS Shares,
other than to Affiliates of the Principal Shareholders who have agreed in
writing to be bound by the terms of this Agreement.

         Section 3.3 SHAREHOLDERS MEETING.

         (a) Once the Offer is commenced, the Principal Shareholders shall, in
coordination with Bidder, request that the Company's Board of Directors convene
an extraordinary meeting of the shareholders of the Company (the "Shareholders
Meeting") to be held on the earliest date consistent with applicable notice
periods or at such other date as the parties may agree, but in no event earlier
than nine calendar days prior to the Expiration Date and no later than five
business days prior to the Expiration Date. Except as required by Law, the sole
purpose of such meeting shall be the deletion of Article 6 bis, 18 bis, 20 bis,
34 bis, 35 bis, 53 and 56 and the modification of Articles 1, 6, 20 and 39 of
the Company's Estatutos as set forth in Exhibit C hereto (the "Bylaw
Amendments").

         (b) If Shares representing at least the Minimum Condition have been
tendered immediately prior to the Shareholders Meeting, then:

         (i)      Bidder shall waive those conditions set forth in paragraphs 3,
                  4, 7 and 8 on Exhibit A; provided, however, that Bidder's
                  obligation to waive these conditions shall be conditioned upon
                  Bidder receiving from a representative of each of the
                  Principal Shareholders, reasonably acceptable to the Bidder, a
                  certificate that to such person's knowledge after due inquiry,
                  no event or incident has occurred that would cause a default
                  in one of the conditions; and

         (ii)     Bidder shall waive any possible default of a condition or
                  failure to meet a condition set forth in Exhibit A that may
                  have occurred or be deemed to have occurred, other than those
                  waived pursuant to clause (i) above, as a result of or with
                  respect to any circumstance, event or incident occurring or
                  existing prior to the Shareholders Meeting that Bidder knew or
                  should have known at such time; provided, however, that
                  Bidder's obligation to partially waive these conditions shall
                  be conditioned upon Bidder receiving from a representative of
                  each of the Principal Shareholders, reasonably acceptable to
                  the Bidder, a certificate that to such person's knowledge
                  after due inquiry, no event or incident has occurred that
                  would cause a default in one of the conditions;

and then, provided that Bidder shall not have revoked, terminated or amended,
other than as permitted by Sections 2.1 and 2.3, the Offer, the Principal
Shareholders agree to vote at the Shareholders Meeting, and at any adjournment
or continuation thereof, all of the PS Shares and all other Shares for which a
proxy has been granted to any of the Principal Shareholders in favor of the
Bylaw Amendments.

         Section 3.4 PROXY. The Principal Shareholders shall not grant any
proxy, enter into any voting trust or take any other action that would restrict
their ability to vote the PS Shares or other Shares for which they have received

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a proxy at the Shareholders Meeting, or at any adjournment or continuation
thereof, other than in the manner agreed to herein.

         Section 3.5 COMPETING OFFERS.

         (a) In the event that a bona fide third party tender offer to acquire
at least 15% of the Shares or any other Alternative Transaction (as herein
defined) is commenced by any party that is not an Affiliate of either of the
Principal Shareholders or the Company (a "Competing Offer"), and if the
aggregate consideration per Share set forth in the Competing Offer exceeds the
Offer Price (a "Higher Competing Offer"), then the Principal Shareholders may
request, no earlier than three business days prior to the expiration of the
Higher Competing Offer, that they be relieved of the obligation to tender their
Shares to Bidder hereunder, and that they be permitted to withdraw the PS Shares
from the Offer and tender the PS Shares into the Higher Competing Offer. Bidder
shall grant or deny such request within 24 hours of the time the Principal
Shareholders make such request. To the extent Bidder grants such consent, then
the Principal Shareholders shall be permitted to withdraw the PS Shares from the
Offer and tender the PS Shares into the Higher Competing Offer, and shall
jointly and severally become irrevocably obligated to pay Bidder the Release
Amount not later than three business days after receipt of the consideration
paid in the Higher Competing Offer. For purposes of this Agreement, "Release
Amount" shall be the difference between (i) the price per Share paid to the
Principal Shareholders in any Higher Competing Offer and (ii) the Offer Price,
multiplied by the total number of Shares sold by the Principal Shareholders in
the Higher Competing Offer.

         (b) If Bidder does not grant its consent to permit the Principal
Shareholders to tender the PS Shares into the Higher Competing Offer, then
Bidder shall be irrevocably obligated to purchase the PS Shares at a price equal
to the Offer Price (i) if the Bylaw Amendment is approved and effective,
pursuant to the Offer or, if permitted by Law, in a private transaction or (ii)
if the Bylaw Amendment is not approved but a Third Party has control of the
Company pursuant to Chilean Law, in a private transaction. In the event that
Bidder purchases the PS Shares as provided in this Section 3.5(b) pursuant to
the Offer, Bidder will waive all conditions to close the Offer set forth on
Exhibit A hereto, except for paragraph 1 of Exhibit A. In the event Bidder
purchases the PS Shares as provided in this Section 3.5(b) pursuant to a private
transaction, Bidder will so purchase the PS Shares not later than five business
days after the expiration or termination of the Offer.

         (c) In the event that a Competing Offer is commenced and if the
aggregate consideration offered per Share is equal to or less than the
consideration offered by Bidder (an "Equal Competing Offer") and the Principal
Shareholders have a reasonable basis for believing that Bidder's Offer will not
close due to an existing default of the conditions set forth on Exhibit A, then
the Principal Shareholders may request no earlier than two business days prior
to the expiration of the Equal Competing Offer that they be relieved of the
obligation to tender the PS Shares to Bidder hereunder or to withdraw the PS
Shares from the Offer in order to tender the PS Shares into the Equal Competing
Offer. Bidder shall grant or deny such request within 24 hours of the time the
Principal Shareholders make such request. To the extent Bidder grants such
consent, then the Principal Shareholders shall jointly and severally become
irrevocably obligated to pay Bidder the Release Amount, if any, immediately upon
the closing of the Equal Competing Offer.

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         Section 3.6 NO SOLICITATION; ORDINARY COURSE.

         (a) Each of the Principal Shareholders shall not and shall not permit
any of its respective Subsidiaries to, nor shall it authorize or permit any of
its shareholders, members, owners, officers, directors, Affiliates or employees,
or any investment banker, financial advisor, attorney, accountant or other
representative retained by or acting on behalf of any Principal Shareholder or
any of its Subsidiaries, excluding, however, any Person who is a director or
officer of the Company, to directly or indirectly through another Person: (i)
solicit, initiate or encourage (including by way of furnishing information), or
take any other action to facilitate, any inquiries or the making of any proposal
relating to an Alternative Transaction (as defined below); (ii) participate in
any discussions or negotiations regarding any Alternative Transaction; (iii)
assist any Person regarding an Alternative Transaction; (iv) call or assist any
Person (other than Bidder) in calling a meeting of the shareholders of the
Company regarding an Alternative Transaction; or (v) take any action,
individually or with any Person that would be inconsistent with the consummation
of the transactions contemplated by this Agreement. Each of the Principal
Shareholders shall immediately cease and terminate all existing discussions and
negotiations, if any, with any other persons conducted heretofore with respect
to any Alternative Transaction. For purposes of this Agreement, "Alternative
Transaction" means either (i) a transaction or series of transactions pursuant
to which any Person (or group of Persons), including either of the Principal
Shareholders, their Subsidiaries and Affiliates (excluding any transfers between
the Persons Controlling, under common Control by, or Controlled by the Principal
Shareholders), other than the Company and its wholly-owned Subsidiaries, Bidder
and its Subsidiaries (a "Third Party") acquires or would acquire, directly or
indirectly, beneficial ownership (as defined in Rule l3d-3 under the Exchange
Act) of more than fifteen percent of the Shares, whether from the Principal
Shareholders, the Company or otherwise; or (ii) any other transaction pursuant
to which any Third Party acquires or would acquire, directly or indirectly,
assets of the Company (other than in the ordinary course of business) or,
control of assets of the Company or its Subsidiaries in any case having a book
value of ten percent or more of the Company's total consolidated assets, or for
consideration equal to ten percent or more of the fair market value of all
Shares on the date of this Agreement. Notwithstanding the foregoing, this
Section 3.6 shall not create any obligation for the Principal Shareholders to
take any action or refrain from taking any action in a manner inconsistent with
Chilean law.

         (b) As long as permitted by Chilean law, each of the Principal
Shareholders agrees to advise and to cause each of its shareholders, members,
owners, officers, directors, Affiliates (excluding the Company) or employees
(excluding, however, any Person who is a director or officer of the Company) to
advise Bidder orally and in writing of any request for information concerning
the Shares, the Company or of any proposal or request for information in
connection with or relating to an Alternative Transaction, the material terms
and conditions of such request, proposal or Alternative Transaction and the
identity of the Person making such request or proposal within one business day
of the receipt of such request, and shall within such period deliver to Bidder a
copy of any such request, proposal or Alternative Transaction. The Principal
Shareholders will keep Bidder informed of the status and details (including
amendments or proposed amendments) of any such request or proposal on a current
basis.

         (c) Until the fifth anniversary of the consummation of the Offer, each
of the Principal Shareholders and its respective shareholders, members or
owners, shall not, and shall not permit any of their respective employees,

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agents or others under their control to, directly or indirectly, hire, recruit
or otherwise solicit or induce any of those Persons identified on Exhibit D to
terminate his employment or other relationship with the Company, the Company
Subsidiaries or such successor.

         Section 3.7 INFORMATION. As long as permitted by Chilean law, the
Principal Shareholders agree to advise and to cause each of its shareholders,
members, owners, officers, directors, Affiliates or employees (excluding,
however, any Person who is a director or officer of the Company) to advise
Bidder, within one business day, orally and in writing of any request for
information or comments from any governmental agency which could impact Bidder's
ability to consummate the Offer. The Principal Shareholders agree to provide
Bidder with the opportunity to review and comment on any filings with or
correspondence to the Securities Authorities relating to the Offer or this
Agreement.

                                   ARTICLE IV

           REPRESENTATIONS AND WARRANTIES OF THE PRINCIPAL SHAREHOLDER

          Each of the Principal Shareholders, jointly and severally, hereby
represents and warrants to Bidder as of the date of this Agreement:

         Section 4.1 ORGANIZATION AND QUALIFICATION. SH1 is a sociedad de
responsabilidad limitada duly organized and validly existing under the Laws of
the Republic of Chile. SH2 is a sociedad anonima duly organized and validly
existing under the Laws of the Republic of Chile. Attached as Exhibit E hereto
is a true and complete copy of the Company's restated Estatutos.

         Section 4.2 AUTHORITY. Each of the Principal Shareholders has all
requisite power and authority to enter into, execute and deliver this Agreement
and to perform fully its obligations hereunder. The execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized. No other action on the part of
either of the Principal Shareholders or either of its respective shareholders or
partners is necessary to consummate the transactions contemplated hereby. This
Agreement has been duly executed and delivered by the Principal Shareholders and
constitutes the valid and binding obligation of each of the Principal
Shareholders, enforceable against each of the Principal Shareholders in
accordance with its terms.

         Section 4.3 NO CONFLICT. Neither the execution, delivery or performance
of this Agreement nor the consummation by the Principal Shareholders of the
transactions contemplated hereby, subject to compliance with filing and other
requirements under applicable law, will, directly or indirectly (with or without
notice or lapse of time): (i) contravene, conflict with, or result in a
violation of (A) any provision of the organizational documents of either of the
Principal Shareholders or (B) any resolution adopted by the relevant management
body or members or shareholders, as the case may be, of the Principal
Shareholders; (ii) contravene, conflict with, or result in a violation of any
federal, state, local, municipal, foreign, international, multinational or other
administrative order, constitution, Law, ordinance, principle of common or civil
law, regulation, statute or treaty ("Legal Requirements") applicable to the
Principal Shareholders or the PS Shares, or any award, decision, injunction,
judgment, order, ruling, subpoena or verdict entered, made or rendered by any
court, administrative agency or other governmental authority or by any
arbitrator ("Orders") applicable to the Principal Shareholders or the PS Shares;

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or (iii) contravene, conflict with, or result in a violation or breach of any
provision of, or give any person the right to declare a default or exercise any
remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate or modify any agreement, contract, obligation, promise or
understanding (whether written or oral and whether express or implied)
applicable to the PS Shares, the Principal Shareholders or any of its
Subsidiaries or by which any of their properties or other assets are legally
bound, except for any contravention, conflict, violation, breach or right which
would not materially impair the ability of the Principal Shareholders to
consummate the transactions contemplated hereby. No governmental authority has
or threatened in writing to commence any proceeding or action with respect to
the Offer, this Agreement or the transactions contemplated hereby and no other
Person has commenced any action, proceeding, application or claim before any
court, governmental, regulatory or administrative agency or commission,
authority or tribunal, domestic, foreign or supranational which would materially
impair or delay the performance by the Principal Shareholders of their
obligations under this Agreement.

         Section 4.4 TITLE TO THE PS SHARES. Each of the Principal Shareholders
is the respective legal and beneficial owner of the PS Shares. The PS Shares
have been duly issued, are fully paid and nonassessable and are free and clear
of any lien, claim, charge, restriction on transfer, other encumbrance or rights
of third parties, other than those liens identified on Schedule 4.4. Except for
the Santa Elisa Contracts and the agreements contemplated herein, there are no
shareholder agreements, voting trusts, proxies or other agreements or
understandings with respect to the PS Shares or the share capital of the Company
of which either of the Principal Shareholders is aware, without additional
investigation. Upon the purchase of the PS Shares pursuant to the Offer, the
Bidder will own the PS Shares free and clear of any lien, claim, charge,
restriction on transfer, other encumbrance or rights of third parties, including
without limitation any lien, claim, charge, restriction on transfer, other
encumbrance or rights pursuant to the Santa Elisa Contracts, other than as the
result of any action by the Bidder.

         Section 4.5 BROKERS. The Principal Shareholders have not entered into
any agreement or understanding with any broker, investment banker, financial
advisor or other Person with respect to any broker's, finder's, financial
advisor's or other similar fee or commission in connection with the transactions
contemplated by this Agreement, which are payable by Bidder.

                                   ARTICLE V

                    REPRESENTATIONS AND WARRANTIES OF BIDDER

          Bidder hereby represents and warrants to the Principal Shareholders as
of the date of this Agreement as follows:

         Section 5.1 ORGANIZATION AND QUALIFICATION. Bidder is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Florida with full corporate power and authority to own, lease and
operate its assets and to carry on its business as now being and as heretofore

                                       11
<PAGE>   12

conducted. Bidder is not in default in the performance, observation or
fulfillment of its articles of incorporation or by-laws.

         Section 5.2 AUTHORITY. The Board of Directors of -Bidder has approved
this Agreement and the transactions contemplated hereby and Bidder has all
requisite power and authority to enter into, execute and deliver this Agreement,
to perform fully its obligations hereunder and to consummate the transactions
contemplated hereby and no shareholder approvals are required under Florida Law
or otherwise. The execution and delivery of this Agreement has been duly
authorized. This Agreement has been duly executed and delivered by Bidder and
constitutes the valid and binding obligation of Bidder, enforceable against
Bidder in accordance with its terms.

         Section 5.3 NO CONFLICT. Neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby will,
directly or indirectly (with or without notice or lapse of time): (i)
contravene, conflict with, or result in a violation of (A) any provision of the
articles of incorporation or by-laws of Bidder or (B) any resolution adopted by
the Board of Directors or the shareholders of Bidder; (ii) contravene, conflict
with, or result in a violation of, or give any governmental authority or other
person the right to challenge any of the transactions contemplated by this
Agreement or to exercise any remedy or obtain any relief under, any Legal
Requirements or any Orders; or (iii) contravene, conflict with, or result in a
violation or breach of any provision of, or give any person the right to declare
a default or exercise any remedy under, or to accelerate the maturity or
performance of, or to cancel, terminate or modify any agreement, contract,
obligation, promise or understanding (whether written or oral and whether
express or implied) applicable to Bidder or any of its Subsidiaries or by which
any of their properties or other assets are legally bound. No governmental
authority has commenced or threatened in writing to commence any proceeding or
action with respect to the Offer, this Agreement or the transactions
contemplated hereby and no other Person has commenced any action, proceeding,
application or claim before any court, governmental, regulatory or
administrative agency or commission, authority or tribunal, domestic, foreign or
supranational which would materially impair or delay the performance by Bidder
of its obligations under this Agreement.

         Section 5.4 SEC DOCUMENTS. Bidder has timely filed all reports required
to be filed by it with the SEC pursuant to the federal securities laws and the
SEC rules and regulations thereunder. Each of such reports complied in all
material respects with applicable requirements of the Securities Exchange Act.
None of such reports, as of their respective dates, contained any untrue
statement of a material fact or omitted to state a 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.

         Section 5.5 BROKERS. Bidder has not entered into any agreement or
understanding with any broker, investment banker, financial advisor or other
Person with respect to any broker's, finder's, financial advisor's or other
similar fee or commission in connection with the transactions contemplated by
this Agreement, which are payable by the Principal Shareholders or the Company.

                                       12
<PAGE>   13

         Section 5.6 TENDER OFFER DOCUMENTS. (a) None of the Tender Offer
Documents will, at the times such Tender Offer Documents are filed with any
Securities Authority, are mailed to the shareholders of the Company or at the
time of the consummation of the Offer, contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances
under which they are made, not. misleading, except that no representation or
warranty is made by Bidder with respect to information supplied in writing by
the Principal Shareholders or any Affiliate of the Principal Shareholders
expressly for inclusion therein. The Tender Offer Documents will comply as to
form in all material respects with the provisions of the Securities Laws.

         Section 5.7 NO FILINGS OR CONSENTS. Other than the filings of the
Tender Offer Documents, no consent, approval, order or authorization of, or
registration, declaration or filing with, any court, administrative agency,
regulatory body or commission or other governmental authority or
instrumentality, whether federal, state, or local and whether domestic or
foreign, or any stock exchange in any jurisdiction, is required to be obtained
by Bidder or any of its Subsidiaries in connection with the execution and
delivery of this Agreement or the consummation of the transactions contemplated
hereby, except for any regulatory approvals or consents that may be required
pursuant to Argentine law and such other consents, approvals, orders,
authorizations, registrations, declarations and filings that if not obtained or
made, individually or in the aggregate, would not materially impair or delay the
performance by Bidder of its obligations under this Agreement.

                                   ARTICLE VI

                                   TERMINATION

         Section 6.1 TERMINATION. This Agreement may be terminated at any time:

         (a) by mutual written consent of the Principal Shareholders and Bidder;

         (b) by the Principal Shareholders, if Bidder has not commenced the
Offer within twenty-one (21) days following the execution of this Agreement,
unless Bidder has not commenced the Offer within the above time-period as a
result of a breach by the Principal Shareholders of any of their material
obligations or agreements under this Agreement;

         (c) by Bidder, by giving written notice to the Principal Shareholders,
upon the breach of the Principal Shareholders of their obligation under Section
3.3;

         (d) by Bidder, by giving written notice of such termination to the
Principal Shareholders, if the Principal Shareholders shall have breached any of
their material obligations or agreements under this Agreement, other than
Section 3.3, and such breach shall be incapable of cure or has not been cured
within ten (10) days following the giving of written notice of such breach to
the Principal Shareholders;

         (e) by either the Principal Shareholders, on the one hand, or Bidder,
by giving written notice of such termination to the other party, if there shall
be in effect any Law that prohibits the consummation of the Offer or any
transactions contemplated hereby or if consummation of Offer or any the

                                       13
<PAGE>   14

transactions contemplated hereby would violate any non-appealable final order,
decree or judgment of any court or governmental entity having competent
jurisdiction;

         (f) by the Principal Shareholders, by giving written notice of such
termination to Bidder, if Bidder shall have breached any of its material
obligations or agreements under this Agreement and such breach shall be
incapable of cure or has not been cured within 10 days following the giving of
written notice of such breach to Bidder;

         (g) by the Principal Shareholders, on the one hand, or the Bidder, if
the Bylaw Amendment fails to be approved at the Shareholders' Meeting or at any
adjournment or continuation thereof;

         (h) by the Principal Shareholders, on the one hand, or the Bidder, if
the Offer expires or terminates in accordance with its terms without the
purchase of Shares; or

         (i) upon the purchase of the PS Shares by the Bidder.

         Section 6.2 EFFECT OF TERMINATION. In the event of the termination of
this Agreement in accordance with Section 6.1 hereof, this Agreement shall
thereafter become void and have no effect, and neither party shall have any
liability to the other or its respective Affiliates, directors, officers or
employees, provided that nothing herein will relieve either party from liability
for any breach of this Agreement prior to such termination.

                                  ARTICLE VII

                                  MISCELLANEOUS

         Section 7.1 SURVIVAL. Except for (a) the representations of the
Principal Shareholders set forth in Section 4.4 with respect to title to the
Shares which shall survive indefinitely in the event the Offer is consummated;
(b) the provisions of this Article 7; (c) the payment of the Release Amount as
provided in Section 3.5(a) herein or requirement to purchase PS Shares as
provided in Section 3.5(b), which each shall survive indefinitely whether or not
the Offer is consummated; and (d) any covenant or agreement of the parties
contained in this Agreement which, by its terms, shall survive the consummation
of the Offer, the representations, warranties and covenants in this Agreement
shall not survive the consummation of the Offer or the termination of this
Agreement, except in the case of willful breach by either party thereof.

         Section 7.2 PUBLIC ANNOUNCEMENTS. During the term of this Agreement and
thereafter neither party shall issue any press release or public announcement or
make any statement to the news media or otherwise make or cause to be made any
public statement regarding the existence of this Agreement or the intended
cooperation between the parties or the fact that negotiations or discussions are
taking place without the prior written consent of the other party (which shall
not be unreasonably withheld), except as may be required by law, by order of any
court or governmental or regulatory authority or body. The parties shall
cooperate on, and seek to agree on the content of, all public announcements.
Bidder acknowledges and agrees that the Principal Shareholders will disclose the
existence and contents of this Agreement promptly after execution by the
parties.

                                       14
<PAGE>   15

         Section 7.3 CONFIDENTIALITY. Bidder and the Principal Shareholders will
maintain in confidence, and will cause their respective Subsidiaries,
Affiliates, directors, officers, employees, advisors, agents and representatives
to maintain in confidence, any written, oral or other information obtained in
confidence from the other party in connection with this Agreement or the
transactions contemplated hereby (including any proposed offers by Bidder to
acquire capital stock of -the Company), unless -(a) 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, (b) the
use of such information is necessary or appropriate in making any filing or
obtaining any consent or approval required for the consummation of the
transactions contemplated by this Agreement or (c) the furnishing or use of such
information is required by legal proceedings or applicable law. Whether or not
the transactions contemplated by this Agreement are consummated, each party will
return or destroy as much of such written information as the other party may
reasonably request.

         Section 7.4 FURTHER ASSURANCES. The parties agree (a) to furnish upon
request to each other such further information, (b) to execute and deliver to
each other such other documents and (c) to do such other acts and things, all as
the other party may reasonably request for the purpose of carrying out the
intent of this Agreement. Bidder covenants to use its best efforts to obtain any
consents or approvals to consummate the Offer required by Law, including the
consents referenced in paragraphs 8 and 12 of Exhibit A. Each of the Principal
Shareholders covenants to and covenants to cause its shareholders, members,
owners, officers, directors, Affiliates or employees (excluding, however, any
person who owes a fiduciary duty to the Company) to use its best efforts,
consistent with Chilean law, to cause duly authorized senior representatives of,
or owners, members or shareholders of, each Principal Shareholder to appear with
Bidder at any meeting (whether ordinary or extraordinary, and as may be
adjourned or postponed) of the shareholders of the Company and to solicit
holders of Shares or ADSs to (i) vote in favor of the Bylaw Amendments and (ii)
tender their Shares or ADSs in the Offer. At Bidder's request, each Principal
Shareholder will use its best effort, consistent with Chilean law, to provide
Bidder with the Company's shareholders' list as provided by the Company to the
SVS, and with the list of the holders of ADS, in both physical and electronic
format. Each of the Principal Shareholders covenants to and covenants to cause
its shareholders, members, owners, officers, directors, Affiliates or employees
(excluding, however, any person who owes a fiduciary duty to the Company) to use
its best efforts, consistent with Chilean law, to support and facilitate all
Bidders' road shows and shareholders' presentations aimed at obtaining approval
of the Bylaw Amendments and the tendering of the highest amount of Shares or
ADSs in the Offer.

         Section 7.5 GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, and the rights to the parties shall
be governed by, the laws of the State of New York, regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws thereof.

         Section 7.6 FORUM. This Agreement shall be subject to the exclusive
jurisdiction of the Federal Courts for the Southern District of New York and
State courts of New York County in the State of New York. The parties
irrevocably waive, to the fullest extent permitted by law, any objection or
immunities to jurisdiction which they may now or hereafter have (including
sovereign immunity, immunity to pre-judgment attachment, post-judgment
attachment and execution) to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the transactions

                                       15
<PAGE>   16

contemplated hereby, or any judgment entered by any court in respect hereof
brought in the State of New York, and further irrevocably waive any claim that
any suit, action or proceeding in the Borough of Manhattan, New York has been
brought in an inconvenient forum.

         Section 7.7 REMEDIES CUMULATIVE; NO THIRD PARTY BENEFICIARIES. The
rights and remedies of the parties to this Agreement are cumulative and not
alternative. Neither any failure nor any delay by either party in exercising any
right, power or privilege under this Agreement will operate as a waiver of such
right, power or privilege, and no single or partial exercise of any such night,
power or privilege will preclude any other or further exercise of such right,
power or privilege or the exercise of any other right, power or privilege.
Nothing in this Agreement shall convey any rights upon any person or entity
which is not a party to this Agreement.

         Section 7.8 ENTIRE AGREEMENT. This Agreement constitutes the full and
entire understanding and agreement between the parties with regard to the
subject matter hereof. This Agreement supersedes all prior agreements and
understandings, written or oral, between the parties with respect to such
subject matter.

         Section 7.9 SEVERABILITY. If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

         Section 7.10 AMENDMENT. This Agreement may not be amended except by a
written instrument signed by each party hereto.

         Section 7.11 WAIVER. At any time either party hereto may (a) extend the
time for the performance of any of the obligations or other acts of the other
party hereto or (b) waive compliance with any of the agreements of the other
party or any conditions to its own obligations, in each case, only to the extent
such obligations, agreements and conditions are intended for its benefit;
PROVIDED, HOWEVER, that any such extension or waiver is set forth in a writing
executed by such party.

         Section 7.12 BINDING EFFECT; NO ASSIGNMENT. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns. This Agreement and either party's rights
hereunder may not be assigned without the prior written consent of the other
party hereto, except that Bidder may assign in whole or in part, the right to
purchase the Shares to one or more wholly-owned Subsidiaries, provided that no
such assignment shall relieve Bidder of its obligations pursuant to this
Agreement.

         Section 7.13 EXPENSES. Whether or not the purchase and sale of the
Shares is consummated, each party shall pay all costs and expenses that it
incurs with respect to the negotiation, execution, delivery and performance of
the Agreement and consummation of the transactions contemplated hereby.

                                       16
<PAGE>   17

         Section 7.14 COUNTERPARTS; HEADINGS. This Agreement may be executed in
two counterparts, each of which shall be an original, but which together shall
constitute one and the same instrument. The descriptive headings of the several
sections and paragraphs of this Agreement are inserted for reference only and
shall not limit or otherwise affect the meaning hereof.

         Section 7.15 NOTICES. All notices hereunder shall be given in writing
and delivered personally or sent by reputable rapid courier (e.g., Federal
Express, DHL or Airborne), by electronic mail (confirmed by facsimile), by
facsimile, or by registered or certified mail (return receipt requested) to the
parties at the following addresses (or at such other addresses as shall be
specified by like notice).

          If to the Principal Shareholders, to:

                  Comercial e Inversiones Portfolio Limitada
                  Avenida Isidora Goyenechea N(degree) 3365, piso 15,
                  Comuna de Las Condes
                  Santiago, Chile
                  Attn: Paula Kraushaar Ortiz de Zo rate
                  Phone:   011-562-366-1700
                  Fax:     011-562-366-9350

          With a copy to:

                  Carey y Cia. Ltda
                  Miraflores 222, 24th Floor
                  Santiago, Chile
                  Attn: Jose Antonio Silva, Esq.
                  Phone:   011-562-365-7200
                  Fax:     011-562-638-4985

                  Shearman & Sterling
                  599 Lexington Avenue
                  New York, NY 10022-6069
                  Attn: Stephen M. Besen, Esq.
                  Phone:   212-848-4000
                  Fax:     212-848-7179

          If to Bidder, to:

                  IVAX Corporation
                  4400 Biscayne Boulevard
                  Miami, FL 33131
                  Attn: Neil Flanzraich, President
                  Phone:   305-575-6000
                  Fax:     305-575-6049

                                       17
<PAGE>   18

          With a copy to:

                  IVAX Corporation
                  4400 Biscayne Boulevard
                  Miami, FL 33131
                  Attn: General Counsel
                  Phone:   305-575-6000
                  Fax:     305-575-6049

                  Akerman, Senterfitt & Eidson
                  SunTrust International Center, 28th Floor
                  One S.E. Third Avenue
                  Miamii, FL 33131-1714
                  Attn: Kara L. MacCullough, Esq.
                  Phone:   305-374-5600
                  Fax:     305-374-5095

                  Claro y Cia.
                  Apoquindo 3721 - 13th Floor
                  P.O. Box 1867
                  Postal Code 6760352
                  Santiago, Chile
                  Attn: Matias de Marchena, Esq.
                  Phone:   011-562-367-3000
                  Fax:     011-562-367-3003

          Any notice given by mail shall be effective seven days after posting,
and any notice given by other means shall be effective when received.

         Section 7.16 SPECIFIC PERFORMANCE. Without limiting the rights of each
party hereto to pursue other legal and equitable rights available to such party
for any other party's failure to perform its obligations under this Agreement,
the parties hereto acknowledge and agree that the remedy at law for any failure
to perform their obligations hereunder would be inadequate and that each of them
shall be entitled to specific performance, injunctive relief or other equitable
remedies in the event of any such failure. To the extent any party may be
entitled to the benefit of any provision of law requiring any party in any suit,
action or proceeding arising out of or in connection with this Agreement or any
of the transactions contemplated hereby to post security for litigation costs or
otherwise post a performance bond or guaranty or to take any similar action,
each party hereby irrevocably waives such benefit in each case to the fullest
extent now or hereafter permitted under the laws of any such other jurisdiction.

                                       18
<PAGE>   19

          IN WITNESS WHEREOF, the parties have executed or caused this Agreement
to be executed as of the date first written above.

                       IVAX CORPORATION

                       By:
                           -------------------------------------------------
                       Name:    Neil Flanzraich
                       Title:   Vice Chairman and President

                       COMERCIAL E INVERSIONES PORTFOLIO LIMITADA

                       By:
                           -------------------------------------------------
                       Name:    Paula Kraushaar Ortiz de Zarate
                       Title:

                       INVERSIONES PORTFOLIO S.A.

                       By:
                           -------------------------------------------------
                       Name:    Paula Kraushaar Ortiz de Zarate
                       Title:

                                       19
<PAGE>   20

                      EXHIBIT A TO THE AGREEMENT TO TENDER

                        CONDITIONS OF THE BIDDER'S OFFER

1.       The amendments to the Company's Bylaws shall have been approved and
         shall have become legalized and effective under Chilean law.

2.       There shall not have been pending any action, proceeding, or claim by
         any person, domestic or foreign, which claim has a reasonable
         likelihood of success, or by any government, governmental authority or
         other regulatory or administrative agency or commission, domestic,
         foreign or supranational, before any court, governmental, regulatory or
         administrative agency or commission, authority or tribunal, domestic or
         foreign or any statute, rule, regulation, order, judgment, decree or
         injunction enacted, promulgated, entered, enforced or deemed or become
         applicable to the Offer, or, any other action taken, which (i) impedes
         the completion of the Offer, (ii) the acquisition of any significant
         portion of or all of the Shares, (iii) materially modifies the terms
         and conditions of the Offer, (including without limitation making it
         more expensive or onerous) (iv) restricts the completion of the Offer,
         or (v) makes the Offer illegal.

3.       No change, event or development shall have occurred which has had or
         would reasonably be expected to cause a material adverse effect on the
         condition (financial or otherwise), business, properties, assets,
         liabilities or results of operation of the Company and its
         Subsidiaries, taken as a whole.

4.       There shall not have been a breach of Section 2.7 of the Agreement and,
         as a result of the information provided pursuant to Section 2.7 the
         Bidder, shall not have become aware of any facts or circumstances that
         indicate (i) that the Company's SEC Filings contained, at the time of
         their respective filing, untrue statements of material facts or omitted
         to state material facts necessary to make the statements made therein,
         in light of the circumstances in which they were made, not misleading
         and such untrue statements or omissions would reasonably be expected to
         cause a material adverse effect on the condition (financial or
         otherwise), business, properties, assets, liabilities or results of
         operation of the Company and its Subsidiaries, taken as a whole, (ii)
         that any event or development shall have occurred which would
         reasonably be expected to cause a material adverse effect on the
         condition (financial or otherwise), business, properties, assets,
         liabilities or results of operation of the Company and its
         Subsidiaries, taken as a whole from that reflected in the Company's SEC
         Filings or (iii) that the Company shall have changed its business or
         accounting practices from those in place on December 31, 1999 such that
         the Company's publicly reported financial statements as of and for the
         twelve month period ended December 31, 2000 or as of and for the three
         month period ended March 31, 2001 were materially misleading.

5.       There shall not have occurred:

         a.       any general suspension of trading in, or limitation on prices
                  for, securities on any United States national securities
                  exchange or Chilean securities exchange, other than the
                  imposition by the New York Stock Exchange, The NASDAQ Stock

<PAGE>   21

                  Market, the Santiago Stock Exchange, the Valparaiso Stock
                  Exchange, the Electronic Stock Exchange of Chile, or the
                  American Stock Exchange of daily suspensions per their
                  respective rules or policies;

         b.       a declaration of a banking moratorium or any suspension of
                  payment in respect of banks in the United States, Argentina or
                  Chile, whether mandatory or not mandatory;

         c.       commencement of a war, armed hostilities, military coup
                  d'etat, collapse of the government or other national or
                  international crisis involving Argentina, Chile or the United
                  States or acts of terrorism which materially disrupt the
                  normal operations of the Company or either Argentina or Chile;

         d.       a material adverse change or development involving a change in
                  exchange controls, currency exchange rates or any suspension
                  of, or limitation on, the markets for currency in Argentina,
                  Chile or the United States;

         e.       any devaluation of the Argentine peso in excess of 15% as
                  published by the Central Bank of Argentina or as reported on
                  any generally quoted market;

         f.       any devaluation of the Chilean peso in excess of 10% as
                  published by the Central Bank of Chile or as reported on any
                  generally quoted market;

         g.       any material change in taxation in Chile, including
                  withholding affecting the Shares; or

         h.       any change or development in foreign investment regulation in
                  Chile, the effect of which is to make it, in the Bidder's
                  reasonable judgment, impracticable to proceed with the Offer
                  on the terms and in the manner contemplated.

6.       The Company or any of its Subsidiaries shall not have, at any time
         after the commencement of the Offer:

         a.       issued, distributed, pledged, sold or authorized, proposed or
                  announced the issuance of or sale, distribution or pledge to
                  any person, other than to the Company or a subsidiary of:

                  i.       any shares of its capital stock;

                  ii.      the capital stock of any of its Subsidiaries;

                  iii.     securities convertible into any such capital stock;

                  iv.      any rights, warrants or options to acquire any such
                           securities or any other securities of the Company or
                           its Subsidiaries; or

                  v.       any other securities in respect of, in lieu of, or in
                           substitution for, the Company shares outstanding on
                           March 31, 2001.

<PAGE>   22

         b.       declared, paid or proposed to declare or pay any dividend or
                  distribution on the Shares after the date of commencement of
                  the Offer;

         c.       issued, authorized, recommended or proposed the issuance or
                  payment of any other distribution in respect of the Shares,
                  whether payable in cash, securities or other property;

         d.       altered any term of any outstanding security;

         e.       issued, sold or authorized or announced or proposed the
                  issuance of or sale to any person (other than pursuant to
                  existing credit arrangements) of:

                  i.       any debt securities;

                  ii.      any securities convertible into or exchangeable for
                           debt securities; or

                  iii.     any rights, warrants or options entitling the holder
                           thereof to purchase or otherwise acquire any debt
                           securities.

         f.       split, combined or otherwise changed, or authorized or
                  proposed the split, combination or other change of the Shares
                  or the Company's or its Subsidiaries' capitalization;

         g.       authorized, recommended, proposed or entered into or publicly
                  announced its intent to enter into any merger, consolidation,
                  liquidation, dissolution, business combination, joint venture,
                  strategic alliance or similar arrangement involving any
                  material assets, acquisition or disposition of a material
                  amount of assets or securities, any material change in its
                  capitalization, or any agreement contemplating any of the
                  foregoing or any comparable event not in the ordinary course
                  of business;

         h.       amended or proposed or authorized any amendments to the
                  Company's Bylaws or any other organizational documents, other
                  than the Bylaw Amendments; or

         i.       agreed in writing or otherwise to take any of the foregoing
                  actions.

7.       At least 67% of the Shares, including any Shares represented by ADS and
         the PS Shares, shall have been tendered as of the time the votes are
         cast at the Shareholders Meeting.

8.       Bidder shall have been granted the necessary foreign investment
         approvals to be granted under DL 600 of Chile.

9.       The Company shall not have:

         a.       entered into or invested in a line of business different from
                  those in which the Company or its Subsidiaries is engaged as
                  of the commencement of the Offer in an amount exceeding in the
                  aggregate 5% of the Company's consolidated assets at the time
                  of the action;

<PAGE>   23

         b.       commenced operations in a country in which the Company or its
                  Subsidiaries is not operating on date of the commencement of
                  the Offer with a direct or indirect investment in cash or
                  other assets exceeding $10 million in the aggregate;

         c.       disposed of, or created liens on, other than pursuant to
                  existing credit facilities, assets of the Company or its
                  Subsidiaries with a book value of more than $20 million in the
                  aggregate;

         d.       acquired assets, excluding raw materials or inventory
                  purchased in the ordinary course, for consideration exceeding
                  $20 million in the aggregate;

         e.       increased the consolidated financial debt of the Company more
                  than $20 million in the aggregate, including indebtedness for
                  working capital;

         f.       voluntarily or involuntarily withdrew from the market any of
                  the Company's products that generated in excess of 5% of the
                  net revenues of the Company during the fiscal year ended
                  December 31, 2000;

         g.       voluntarily or involuntarily terminated or modified, in any
                  material adverse manner, an agreement or agreements that
                  generated revenues of more than $20 million in the aggregate
                  in the 12 months ended on March 31, 2001;

         h.       voluntarily or involuntarily terminated a relationship with a
                  supplier of any of the Company's products that generated in
                  excess of 5% of the net revenues of the Company during its
                  last fiscal year, which supplier is not promptly replaced;

         i.       except in the ordinary course consistent with past practice
                  materially increased the salary, paid any bonus or severance
                  of any employee or entered into severance, change of control
                  or long term employment agreements with any employee or any
                  employment agreements with any newly hired senior manager;

         j.       entered into an agreement with an affiliated party which is
                  not in the ordinary course of a business consistent with past
                  practice and is not terminable within 30 days without further
                  liability;

         k.       ceased to maintain insurance coverage substantially equivalent
                  to the coverage in place as of the commencement of the Offer;

         l.       taken any action to cause the Company to have a negative
                  working capital on the business day prior to the Shareholders
                  Meeting or on the business day prior to the Expiration Date;

         m.       ceased operation in Chile, Peru or Argentina;

         n.       made a material change in the Company's accounting practices
                  (other than as required by U.S. or Chilean GAA-P) or
                  regulatory compliance procedures;

<PAGE>   24

         o.       waived, released, assigned, settled or compromised any claims
                  or litigation involving amounts or other rights or assets in
                  excess over $5 million; or

         p.       agreed to do any of the foregoing.

10.      Subsequent to the Shareholders Meeting, any event or incident has
         occurred, or a claim made, which has a reasonable likelihood of
         success, that (i) would reasonably be expected to reduce the Company's
         revenues or net income by more than 10% in the 12 month period ending
         on March 31, 2002 as compared to the 12 month period ending on March
         31, 2001, (ii) increased, or would reasonably be expected to increase,
         the liabilities, contingent or otherwise, by $20 million in the
         aggregate, or (iii) destroyed or otherwise impaired, or would
         reasonably be expected to impair, tangible assets (other than as
         covered by insurance) or intangible assets by 15%.

11.      The Company shall not have directly or indirectly paid, expended or
         accrued investment banking, legal, accounting, professional, or other
         advisory fees and costs of any nature in excess of 1.1% of the
         aggregate Offer Price (assuming purchase of all the Shares) reasonably
         related to the Offer, or this Agreement or the transactions related
         thereto, either on behalf of itself or any of the Principal
         Shareholders or any Affiliate thereof, provided, however, that this
         paragraph 11 shall be inapplicable in the case of any Competing Offer.

12.      Any regulatory consents or approvals required to consummate the Offer
         under Argentine antitrust law shall have been obtained.

<PAGE>   25

                      EXHIBIT B TO THE AGREEMENT TO TENDER

1.       The Company or any of its Subsidiaries shall not have, at any time
         after the execution of the Agreement:

         a.       issued, distributed, pledged, sold or authorized, proposed or
                  announced the issuance of or sale, distribution or pledge to
                  any person, other than to the Company or a subsidiary, of:

                  i.       any shares of its capital stock;

                  ii.      the capital stock of any of its Subsidiaries;

                  iii.     securities convertible into any such capital stock;

                  iv.      any rights, warrants or options to acquire any such
                           securities or any other securities of the Company or
                           its Subsidiaries; or

                  v.       any other securities in respect of, in lieu of, or in
                           substitution for, the Company shares outstanding on
                           March 31, 2001;

         b.       declared, paid or proposed to declare or pay any dividend or
                  distribution on the Shares after the date of commencement of
                  the Offer;

         c.       issued, authorized, recommended or proposed the issuance or
                  payment of any other distribution in respect of the Shares,
                  whether payable in cash, securities or other property;

         d.       altered or proposed to alter any term of any outstanding
                  security;

         e.       issued, sold or authorized or announced or proposed the
                  issuance of or sale to any person of:

                  i.       any debt securities;

                  ii.      any securities convertible into or exchangeable for
                           debt securities; or

                  iii.     any rights, warrants or options entitling the holder
                           thereof to purchase or otherwise acquire any debt
                           securities.

         f.       split, combined or otherwise changed, or authorized or
                  proposed the split, combination or other change of the Shares
                  or the Company's or its Subsidiaries' capitalization;

         g.       authorized, recommended, proposed or entered into or publicly
                  announced its intent to enter into any merger, consolidation,
                  liquidation, dissolution, business combination, joint venture,
                  strategic alliance or similar arrangement, acquisition or
                  disposition of a material amount of assets or securities, any
                  material change in its capitalization, or any agreement

<PAGE>   26

                  contemplating any of the foregoing or any comparable event not
                  in the ordinary course of business, or taken any action to
                  implement any such transaction previously authorized,
                  recommended, proposed or publicly announced;

         h.       amended or proposed or authorized any amendments to the
                  Company's Bylaws or any other organizational documents, other
                  than the Bylaw Amendments; or

         i.       agreed in writing or otherwise to take any of the foregoing
                  actions.

2.       The Company shall not have since the execution of the Agreement:

         a.       entered into or invested in a line of business different from
                  those in which the Company or its Subsidiaries is engaged as
                  of the commencement of the Offer in an amount exceeding in the
                  aggregate 5% of the Company's consolidated assets at the time
                  of the action;

         b.       commenced operations in a country in which the Company or its
                  Subsidiaries is not operating on date of the commencement of
                  the Offer with a direct or indirect investment in cash or
                  other assets exceeding $10 million in the aggregate;

         c.       disposed of, or created liens on, other than pursuant to
                  existing credit facilities, assets of the Company or its
                  Subsidiaries with a book value of more than $20 million in the
                  aggregate;

         d.       acquired assets, excluding raw materials or inventory
                  purchased in the ordinary course, for consideration exceeding
                  $20 million in the aggregate; -

         e.       increased the consolidated financial debt of the Company more
                  than $20 million in the aggregate, including indebtedness for
                  working capital;

         f.       voluntarily or involuntarily withdrew from the market any of
                  the Company's products that generated in excess of 5% of the
                  net revenues of the Company during the fiscal year ended
                  December 31, 2000;

         g.       voluntarily or involuntarily terminated or modified, in any
                  material adverse manner, an agreement or agreements that
                  generated revenues of more than $20 million in the aggregate
                  in the 12 months ended on March 31, 2001;

         h.       voluntarily or involuntarily terminated a relationship with a
                  supplier of any of the Company's products that generated in
                  excess of 5% of the net revenues of the Company during the
                  fiscal year ended December 31, 2000, which supplier is not
                  promptly replaced;

         i.       except in the ordinary course consistent with past practice
                  materially increased the salary, paid any bonus or severance
                  of any employee or entered into severance, change of control
                  or long term employment agreements with any employee or any
                  employment agreement with any newly hired senior manager;

<PAGE>   27

         j.       entered into an agreement with an affiliated party which is
                  not in the ordinary course of business consistent with past
                  practice and is not terminable within 30 days without further
                  liability;

         k.       ceased to maintain insurance coverage substantially equivalent
                  to the coverage in place as of the commencement of the Offer;

         l.       taken any action to cause the Company to have a negative
                  working capital on the business day prior to the Shareholders
                  Meeting or on the business day prior to the Expiration Date;

         m.       ceased operation in Chile, Peru or Argentina;

         n.       made a material change in the Company's accounting practices
                  (other than as required by U.S. or Chilean GAAP) or regulatory
                  compliance procedures;

         o.       waived, released, assigned, settled or compromised any claims
                  or litigation involving amounts or other rights or assets in
                  excess over $5 million; or

         p.       agreed to do any of the foregoing.<PAGE>   1
                                                                    EXHIBIT 10.1

         STANDSTILL AND REGISTRATION RIGHTS AGREEMENT dated as of May 15, 2001
(this "AGREEMENT"), among PEDIATRIX MEDICAL GROUP, INC., a Florida corporation
(the "COMPANY"), Welsh, Carson, Anderson & Stowe VII, L.P, a Delaware limited
partnership ("WCAS"), WCAS HEALTHCARE PARTNERS, L.P., a Delaware limited
partnership ("WHP"), the persons listed on SCHEDULE A hereto (such persons,
together with WCAS and WHP, being hereinafter referred to collectively as the
"WCAS PARTIES"), John K. Carlyle, an individual ("CARLYLE"), CORDILLERA
INTEREST, LTD., a corporation ("CIL"), STEVEN K. BOYD, an individual ("BOYD"),
IAN M. RATNER, M.D., an individual ("RATNER"; together with the WCAS Parties,
Carlyle, CIL and Boyd, the "INVESTORS"), and ROGER J. MEDEL, M.D., an individual
("MEDEL"), KRISTEN BRATBERG, an individual ("BRATBERG"), JOSEPH CALABRO, an
individual ("CALABRO"), KARL B. WAGNER, an individual ("WAGNER"), and BRIAN T.
GILLON, an individual ("GILLON"; together with Medel, Bratberg, Calabro and
Wagner, "MANAGEMENT").

                                   WITNESSETH:

         WHEREAS pursuant to the Agreement and Plan of Merger dated as of
February 14, 2001 (the "MERGER Agreement"), among the Company, Infant
Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of the
Company ("SUB"), and MAGELLA HEALTHCARE CORPORATION, a Delaware corporation
("MAGELLA"), on the date hereof Sub will merge (the "MERGER") with and into
Magella, with Magella thereby becoming a wholly owned subsidiary of the Company;

         WHEREAS, as a result of the Merger, the Investors will become owners in
the aggregate of 3,453,472 shares of common stock, par value $.01 per share, of
the Company;

         WHEREAS the parties desire to set forth certain agreements with respect
to the Investors' ownership of Common Stock (as defined herein) and the Company
wishes to grant to certain Investors certain rights relating to the registration
of Common Stock; and

         WHEREAS the parties desire to set forth certain agreements with respect
to Management's ownership of Common Stock.

         NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I

                               CERTAIN DEFINITIONS

         SECTION 1.1. CERTAIN DEFINITIONS. For purposes of this Agreement:

         "ADVERSE EVENT" has the meaning specified in Section 5.1(d).

         "AFFILIATE" has the meaning specified in Rule 405 under the Securities
Act.

         "BOARD" means the board of directors of the Company.

         "CLOSING" has the meaning specified in the Merger Agreement.

<PAGE>   2

         "CODE" means the United States Internal Revenue Code of 1986, as
amended.

         "COMMISSION" means the United States Securities and Exchange Commission
or any other United States federal agency at the time administering the
Securities Act.

         "COMMON STOCK" means the common stock, par value $.01 per share, of the
Company, or any security issued in exchange therefor by a successor entity to
the Company.

         "DEMAND REGISTRATION" has the meaning specified in Section 5.1(a).

         "DISPOSE" has the meaning specified in Section 3.1(a).

         "EXCESS SHARES" means that number of shares of Common Stock held in the
aggregate by the WCAS Parties immediately after the Closing in excess of 9.9% of
the total then outstanding shares of Common Stock. In the event that the Company
effects any reclassification, stock split, stock dividend or stock combination
with respect to Common Stock, any change or conversion of Common Stock into
other securities or any redemption or repurchase of Common Stock, appropriate
and proportionate adjustments, if any, shall be made to the number of Excess
Shares (it being understood (i) that the purpose of the Shelf Registration is to
permit certain WCAS Parties to sell such number of shares of Common Stock so
that the WCAS Parties hold in the aggregate no more than 9.9% of the total then
outstanding shares of Common Stock at the first anniversary of the Closing and
(ii) that the Company shall amend or supplement the Shelf Registration if
required to effect such purpose).

         "EXCHANGE ACT" means the United States Securities Exchange Act of 1934,
as amended, or any successor United States federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect
from time to time.

         "GROUP" has the meaning contemplated in Rule 13d-5(b) under the
Exchange Act.

         "INVESTOR APPROVAL" means, at any time, the approval of Investors
holding at least 51% of the Registrable Shares at such time.

         "LOCK-UP PERIOD" means the 180-day period commencing on the date of the
Closing.

         "PERSON" means an individual, a partnership, a company, a corporation,
a limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization or a governmental entity or any
department, agency or political subdivision thereof.

         "PIGGYBACK REGISTRATION" has the meaning specified in Section 5.2(a).

         "REGISTRABLE SHARES" means, at any time, any shares of Common Stock
held by an Investor that were received by such Investor (i) in the Merger, (ii)
as a distribution on or with respect to any Registrable Shares, (iii) through
any sale or transfer by another Investor that is permitted by this Agreement or
(iv) shares of Common Stock to be acquired upon the exercise of Substitute
Options (as defined in the Merger Agreement); provided, HOWEVER, that

                                       2
<PAGE>   3

Registrable Shares shall not include any shares (x) the sale of which has been
registered pursuant to the Securities Act and which shares have been sold
pursuant to such registration, (y) which have been sold to the public pursuant
to Rule 144 of the Commission under the Securities Act ("RULE 144"), or (z) the
resale of which by an Investor has been registered pursuant to the Shelf
Registration.

         "REGISTRATION EXPENSES" has the meaning specified in Section 5.6(a).

         "SECURITIES ACT" means the United States Securities Act of 1933, as
amended, or any successor United States federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect
from time to time.

         "SHELF REGISTRATION" has the meaning specified in Section 5.3(a).

         "STANDSTILL PERIOD" means the six-year period commencing on the date of
the Closing.

         "SUBSIDIARY" has the meaning ascribed to such term in the Merger
Agreement, except that in no event shall the Company or any of its Subsidiaries
be considered a Subsidiary of an Investor or any Affiliate of an Investor.

         "TAKE-DOWN" has the meaning specified in Section 5.3(d).

         "VOTING SECURITIES" means the Common Stock and any other securities
issued by the Company having the power to vote in the election of directors of
the Company, including without limitation any securities having such power only
upon the occurrence of a default or any other extraordinary contingency, but
excluding any preferred stock issued by the Company having only such rights to
elect up to two directors as are required by the rules of the principal stock
exchange on which such preferred stock is listed.

                                   ARTICLE II

                RESTRICTIONS ON ACQUISITION OF VOTING SECURITIES

SECTION 2.1. RESTRICTIONS ON ACQUISITION OF VOTING SECURITIES. (a) During the
Standstill Period, (i) each of the WCAS Parties will not, directly or
indirectly, acquire any Voting Securities and (ii) each Investor (other than the
WCAS Parties) will not, and will cause its Affiliates not to, directly or
indirectly, acquire any Voting Securities that result in such Investor and its
Affiliates owning in the aggregate, directly or indirectly, 5% or more of the
total Voting Securities then outstanding, except in each case (x) in the Merger,
(y) as contemplated by Section 3.2 or (z) directly from the Company (pursuant to
any stock dividend or other distribution, by purchase or otherwise).

         (b) During the Standstill Period, except as permitted by Section 3.2,
the Investors (other than the WCAS Parties) will not, and will cause their
Affiliates not to, and each of the WCAS Parties will not, participate in making
or financing any tender or exchange offer with respect to any Voting Securities,
any proposal or offer for a merger, consolidation or other business combination
involving the Company or any Subsidiary of the Company or any proposal or offer
to acquire all or any substantial part of the assets or business of the Company
or any Subsidiary of the Company.

                                       3
<PAGE>   4

                                  ARTICLE III

                 RESTRICTIONS ON TRANSFERS OF VOTING SECURITIES

         SECTION 3.1. RESTRICTIONS ON TRANSFERS. (a) Without the prior consent
of the Company and except as permitted by Section 3.2, during the Lock-Up
Period, (i) each Investor (other than the WCAS Parties) and each member of
Management will not, and will cause their respective Affiliates not to, directly
or indirectly, sell, transfer, pledge or otherwise dispose of, including through
any hedging or derivative transactions or otherwise (collectively, "DISPOSE"),
any Voting Securities owned by such Investor, member of Management or any of
their respective Affiliates and (ii) D. Scott Mackesy shall not Dispose of any
Voting Securities owned by him.

         (b) Without the prior written consent of the Company and except as
permitted by paragraph (a) or (c) of Section 3.2, (i) during the 90-day period
commencing on the date of the Closing, the WCAS Parties (other than D. Scott
Mackesy) shall not Dispose of any Voting Securities owned by the WCAS Parties
and (ii) beginning on the date immediately following such 90-day period and
ending on the later of (x) the first anniversary of the Closing and (y) the
termination of the Shelf Registration as contemplated by Section 5.3(b), the
WCAS Parties (other than D. Scott Mackesy) shall not Dispose of, in the
aggregate, more than one-third of the Excess Shares in any 90-day period.

         SECTION 3.2. PERMITTED TRANSFERS. Each Investor and each member of
Management or their respective Affiliates may sell or otherwise transfer all or
any portion of the Voting Securities owned by them as follows:

         (a) from an Investor or a member of Management (or Affiliate of an
Investor or a member of Management) to an Affiliate of such Investor or such
member, or back to such Investor or a member of Management;

         (b) for estate or tax planning purposes, (i) from an Investor or a
member of Management to members of such Investor's or such member of
Management's immediate family or trusts or other entities controlled solely by
such Investor or such member of Management and members of such Investor's or
such member of Management's immediate family or (ii) from an Investor or a
member of Management to any person meeting the requirements of Section 501(c)(3)
of the Code;

         (c) to the Company or any of its Subsidiaries or any other Person
approved by the Company; or

         (d) as a result of the death of such Investor or member of Management;

PROVIDED, HOWEVER, that, prior to the first sale or other transfer by an
Investor or a member of Management to any transferee permitted by clauses (a),
(b) or (d) of this Section 3.2, such permitted transferee agrees in writing to
be bound by this Agreement as if he, she or it were such Investor or member of
Management, as the case may be, in which case such permitted transferee shall
have benefits identical to those accruing to such Investor or member of
Management, as the case may be, under this Agreement, including without
limitation those set forth in Article V; PROVIDED FURTHER, that the aggregate

                                       4
<PAGE>   5

number of Demand Registrations otherwise required to be provided by the Company
hereunder shall not be increased and that any permitted transferee under Section
3.2(b)(ii) shall not have any rights under Article V.

                                   ARTICLE IV

                              VOTING OF SECURITIES

         SECTION 4.1. VOTING OF SECURITIES. (a) During the Standstill Period,
each Investor (other than the WCAS Parties) will not, and will cause its
Affiliates not to, and each of the WCAS parties will not, (A) with respect to
any Voting Securities, solicit proxies or become a "participant" in a
"solicitation" (as such terms are defined in Regulation 14A under the Exchange
Act) in opposition to the Board, PROVIDED that neither the Investors nor any of
their Affiliates shall be deemed a "participant" for purposes of this Section
4.1(a) solely by reason of the membership of Steven K. Boyd, John K. Carlyle and
D. Scott Mackesy (or of any other Affiliate of the WCAS Parties who may
subsequently become a member of the Board) on the Board as provided in Section
5.16 of the Merger Agreement, (B) call or seek to call any special meeting of
the Company's shareholders for any reason whatsoever, (C) deposit any Voting
Securities in a voting trust or subject any Voting Securities to any arrangement
or agreement with respect to the voting of such Voting Securities other than an
arrangement or agreement among one or more Investors and any of the Investors'
Affiliates to which Voting Securities have been transferred pursuant to Section
3.2(a), (D) form or join a group for the purpose of acquiring, holding, voting
or disposing of Voting Securities, other than a group consisting only of one or
more Investors, and any of their Affiliates to which Voting Securities have been
transferred pursuant to Section 3.2(a), (E) execute any written consent with
respect to any matter as a holder of Voting Securities (except upon the request
of the Company), or (F) publicly or otherwise request the Company or the Board
to amend, modify or waive any provision of Article I, II, III or IV of this
Agreement.

         (b) During the Standstill Period, each Investor (other than the WCAS
Parties) will, and will cause its Affiliates to, vote all Voting Securities
owned, directly or indirectly, by it or by any of its Affiliates, and each of
the WCAS Parties will, vote all Voting Securities owned, directly or indirectly,
by it, at the option of the Board upon reasonable prior notice to such Investor,
either in accordance with the recommendation of the Board or in the same
proportion as the holders of Voting Securities who are not Affiliates of either
the Company or any Investor, with respect to or in connection with any proxy or
consent solicitation involving the election or removal of directors or any
proposal or offer (including, without limitation, any proposal or offer to
stockholders of the Company), not agreed to by the Company, for a merger,
consolidation, share exchange, business combination or other similar transaction
involving the Company or any of its Subsidiaries or to acquire in any manner,
directly or indirectly, an equity interest in, any voting securities of, or a
substantial portion of the assets of, the Company or any of its Subsidiaries.

                                   ARTICLE V

                               REGISTRATION RIGHTS

         SECTION 5.1. DEMAND REGISTRATIONS. (a) At any time after the Lock-up
Period, any one or more Investors holding at least 50% of the Registrable Shares
may request registration under the Securities Act of all or part of their

                                       5
<PAGE>   6

Registrable Shares for sale in the manner specified in such request; PROVIDED,
HOWEVER, that the Company shall not be obligated to register Registrable Shares
pursuant to this Section 5.1(a) on more than one occasion in the aggregate, or
after the additional take-down referred to in Section 5.3(d); PROVIDED FURTHER
that the Company shall not be obligated to register Registrable Shares pursuant
to this Section 5.1(a) (i) within one year after the effectiveness of any
Piggyback Registration in connection with which either the requesting Investors
declined to avail themselves of the opportunity to include their Registrable
Shares therein or at least 50% of the Registrable Shares they requested to be
included in such registration were so included, or (ii) until the expiration of
the later of (x) such one-year period and (y) the 90-day period commencing with
such request, if the Company delivers notice to the holders of Registrable
Shares as soon as practicable after any request hereunder that the Company in
good faith believes that it will offer Piggyback Registration to the Investors
pursuant to Section 5.2 within 90 days of such request. All registrations
requested pursuant to this Section 5.1(a) shall be referred to herein as "DEMAND
REGISTRATIONS".

         (b) A registration will not count as a Demand Registration for purposes
of the first proviso to Section 5.1(a) unless it has become effective and the
Investor or Investors requesting such registration are able to register and sell
at least 50% of the Registrable Shares they requested to be included in such
registration.

         (c) The Company and the holders of a majority of the Registrable Shares
to be sold pursuant to a Demand Registration shall, upon mutual agreement,
designate one or more managing underwriters of nationally recognized standing,
if applicable, for such offering. If the managing underwriters advise the
Company in writing that in their opinion the number of Registrable Shares and
other securities requested to be included (i) creates a substantial risk that
the price per share in such registration will be materially and adversely
affected or (ii) exceeds the number of Registrable Shares and other securities
that can be sold in such offering, then the Company will include in such
registration, prior to the inclusion of any securities that are not Registrable
Shares, the number of Registrable Shares requested to be included (including
requests pursuant to Section 5.2(a)) that, in the opinion of such underwriters,
can be sold, PRO RATA among the respective Investors, on the basis of the number
of Registrable Shares owned by such Investors so requested to be included.

         (d) The Company may at its option postpone for up to 90 days the filing
or the effectiveness of a registration statement for a Demand Registration if
the Company delivers to the Investors that have requested such Demand
Registration a certificate executed by an executive officer of the Company to
the effect that in the reasonable judgment of the Company such Demand
Registration, if effected, could materially interfere with or materially
adversely affect any then existing negotiations for financing or any other
agreement, arrangement, event, plan or transaction then intended, pending or
being negotiated in good faith (an "ADVERSE EVENT").

         (e) Independent of and without limiting the Company's rights under
Section 5.1(d), the Company may at its option also prohibit, for up to 60 days,
the use of a registration statement for a Demand Registration upon a certificate
executed by an executive officer of the Company to the effect that such
prohibition is required to prevent an Adverse Event.

                                       6
<PAGE>   7

         SECTION 5.2. PIGGYBACK RIGHTS. (a) Whenever the Company proposes to
register any Common Stock under the Securities Act (including, without
limitation, a Demand Registration) on a registration statement other than Form
S-4 or Form S-8 , the Company will give prompt written notice to all Investors
of its intention to effect such a registration (which notice shall be given not
less than (i) in the case of a Demand Registration, ten days after receipt by
the Company of a request therefor pursuant to Section 5.1(a) and (ii) in all
other cases, 15 days prior to the date the registration statement is to be
filed) and, subject to the terms hereof, will include in such registration (a
"PIGGYBACK REGISTRATION") all Registrable Shares with respect to which the
Company has received written requests for inclusion therein within ten days
after the receipt of the Company's notice.

         (b) If a Piggyback Registration arises in connection with a Demand
Registration and the managing underwriters advise the Company in writing that in
their opinion the number of Registrable Shares and other securities requested to
be included in such Piggyback Registration (i) creates a substantial risk that
the price per share in such registration will be materially and adversely
affected or (ii) exceeds the number of Registrable Shares and other securities
that can be sold in such offering, then the Company will include in such
registration, prior to the inclusion of any securities that are not Registrable
Shares, the number of Registrable Shares requested to be included (including the
Registrable Shares requested to be included pursuant to the Demand Registration)
that, in the opinion of such underwriters, can be sold, PRO RATA among the
respective Investors requesting to sell Registrable Shares as set forth in
Section 5.1(c).

         (c) If a Piggyback Registration arises that is not in connection with a
Demand Registration and the managing underwriters advise the Company in writing
that in their opinion the number of Registrable Shares and other securities
requested to be included in such Piggyback Registration (i) creates a
substantial risk that the price per share in such registration will be
materially and adversely affected or (ii) exceeds the number of Registrable
Shares and other securities that can be sold in such offering, then the Company
will include in such registration only: (x) FIRST, any securities the Company
proposes to sell or is required to include under any agreement of the Company,
and (y) SECOND, Registrable Shares requested to be included in such registration
to the extent that, in the opinion of such underwriters, they can be sold, PRO
RATA among the Investors holding Registrable Shares requested to be included on
the basis of the number of such shares owned by such Investors and requested to
be so registered.

         SECTION 5.3. SHELF REGISTRATION. (a) Unless the Excess Shares have
previously been registered for resale under the Registration Statement (as
defined in the Merger Agreement) pursuant to Rule 415 under the Securities Act,
the Company shall within 30 days after the Closing file with the Commission, and
shall use all reasonable efforts to cause to be declared effective within 90
days after the Closing, a shelf registration statement on any appropriate form
pursuant to Rule 415 for the sale by the WCAS Parties (other than D. Scott
Mackesy) of the Excess Shares (the Registration Statement, as amended, or such
registration statement, the "SHELF REGISTRATION"). Any sales pursuant to the
Shelf Registration shall be subject to Section 3.1(b).

         (b) The Company shall use all reasonable efforts to keep the Shelf
Registration continuously effective for a period terminating on the earlier of
(i) the later of (x) the nine-month anniversary of the date on which the
Commission declares the Shelf Registration effective and (y) the first

                                       7
<PAGE>   8

anniversary of the Closing and (ii) the date on which all shares of Common Stock
registered pursuant to the Shelf Registration have been sold thereunder.

         (c) The Company further agrees to supplement or make amendments to the
Shelf Registration, if required by the rules, regulations or instructions
applicable to the form utilized by the Company or by the Securities Act.

         (d) The WCAS Parties (other than D. Scott Mackesy) shall have the right
to require one underwritten offering off the Shelf Registration Statement (a
"TAKE-DOWN"), plus an additional take-down that may be utilized in lieu of (and
will be deemed to be) the Demand Registration; PROVIDED, HOWEVER, that any such
take-down shall be in respect of shares of Common Stock having a fair market
value of not less than $5,000,000 on the date such request is made.

         SECTION 5.4. HOLDBACK AGREEMENTS. (a) Each Investor agrees (and shall
sign an agreement to such effect in the usual form of the managing underwriters
if the managing underwriters request such agreement), not to effect any public
sale or distribution of Common Stock, or any securities convertible into or
exchangeable or exercisable for Common Stock, or any hedging or similar
transactions, during the 15 days prior to and the 90-day period beginning on the
effective date of any underwritten Demand Registration or underwritten Piggyback
Registration (except as part of such underwritten registration).

         (b) The Company agrees (and shall sign an agreement to such effect in
the usual form of the managing underwriters, if the managing underwriters
request such agreement) not to effect any public sale or distribution of Common
Stock, or any securities convertible into or exchangeable or exercisable for
Common Stock, during the 15 days prior to and the 90-day period beginning on the
effective date of any underwritten Demand Registration (except as part of such
underwritten registration).

         SECTION 5.5. REGISTRATION PROCEDURES. (a) Whenever any Investor has
requested that any Registrable Shares be registered pursuant to this Agreement,
the Company will use all reasonable efforts promptly to effect the registration
and the sale of such Registrable Shares (subject to the limitations in Sections
5.1(a), 5.1(c), 5.1(d), 5.1(e), 5.2(b) and 5.2(c)) in accordance with the
intended method of disposition thereof, and pursuant thereto the Company will
use all reasonable efforts to:

                  (i) prepare (and afford counsel for the selling Investors
         reasonable opportunity to review and comment on) and file with the
         Commission within 30 days (or if the Company shall not then be eligible
         to use Form S-3, 60 days) of the date of such request a registration
         statement with respect to such Registrable Shares and cause such
         registration statement to become and remain effective for such period
         as may be reasonably necessary to effect the sale of such securities as
         described in such request;

                  (ii) prepare (and afford counsel for the selling Investors
         reasonable opportunity to review and comment on) and file with the
         Commission such amendments and supplements to such registration
         statement and the prospectus used in connection therewith as may be
         necessary to keep such registration statement effective and comply with

                                       8
<PAGE>   9

         the provisions of the Securities Act with respect to the disposition of
         all securities covered by such registration statement during such
         period in accordance with the intended methods of disposition by the
         sellers thereof set forth in such registration statement;

                  (iii) furnish to each seller of Registrable Shares and the
         underwriters of the securities being registered such number of copies
         of such registration statement, each amendment and supplement thereto,
         the prospectus included in such registration statement (including each
         preliminary prospectus) and such other documents as such seller or
         underwriters may reasonably request in order to facilitate the
         disposition of the Registrable Shares owned by such seller or the sale
         of such securities by such underwriters;

                  (iv) register or qualify such Registrable Shares under such
         other securities or blue sky laws of such jurisdictions within the
         United States as any seller or, in the case of an underwritten public
         offering, the managing underwriter, reasonably requests and do any and
         all other acts and things which may be reasonably necessary to enable
         such seller to consummate the disposition in such jurisdictions of the
         Registrable Shares owned by such seller; PROVIDED, HOWEVER, that the
         Company will not be required to (A) qualify generally to do business in
         any jurisdiction where it would not otherwise be required to qualify
         but for this subsection or (B) consent to general service of process in
         any such jurisdiction;

                  (v) cause all such Registrable Shares to be listed or
         authorized for quotation on each securities exchange or automated
         quotation system on which the Common Stock is then listed or quoted or,
         if the Common Stock is not then so listed or quoted, as the Investors
         (acting through Investor Approval) may reasonably request;

                  (vi) provide a transfer agent and registrar for all such
         Registrable Shares not later than the effective date of such
         registration statement;

                  (vii) enter into such customary agreements (including
         underwriting agreements in customary form) and take all such other
         actions as the holders of a majority of the Registrable Shares being
         sold or the underwriters, if any, reasonably request in order to
         expedite or facilitate the disposition of such Registrable Shares;

                  (viii) make available for inspection at a reasonable time by
         any seller of Registrable Shares, any underwriter participating in any
         disposition pursuant to such registration statement, and any attorney,
         accountant or other agent retained by any such seller or underwriter,
         all financial and other records, pertinent corporate documents and
         properties of the Company, and cause the Company's officers, directors,
         employees and independent accountants to supply all information
         reasonably requested by any such seller, underwriter, attorney,
         accountant or agent in connection with the preparation of such
         registration statement;

                  (ix) notify each seller of such Registrable Shares, promptly
         after it shall receive notice thereof, of the time when such
         registration statement has become effective or a supplement to any

                                       9
<PAGE>   10

         prospectus forming a part of such registration statement has been
         filed;

                  (x) notify the sellers of such Registrable Shares of any
         request by the Commission for the amending or supplementing of such
         registration statement or prospectus or for additional information;

                  (xi) prepare (and afford counsel for the selling Investors
         reasonable opportunity to review and comment on) and file with the
         Commission, promptly upon the request of any seller of such Registrable
         Shares, any amendments or supplements to such registration statement or
         prospectus which, in the written opinion of counsel selected by the
         holders of a majority of the Registrable Shares being registered, may
         be required under the Securities Act in connection with the
         distribution of Registrable Shares by such seller;

                  (xii) prepare and promptly file with the Commission and
         promptly notify each seller of such Registrable Shares of the filing of
         such amendment or supplement to such registration statement or
         prospectus as may be necessary to correct any statements or omissions
         if, at the time when a prospectus relating to such securities is
         required to be delivered under the Securities Act, any event shall have
         occurred as the result of which any such prospectus or any other
         prospectus as then in effect would include an untrue statement of a
         material fact or omit to state any material fact necessary to make the
         statements therein, in the light of the circumstances under which they
         were made, not misleading;

                  (xiii) advise each seller of such Registrable Shares, promptly
         after it shall receive notice or obtain knowledge thereof, of the
         issuance of any stop order by the Commission suspending the
         effectiveness of such registration statement or the initiation or
         threatening of any proceeding for such purpose and use all reasonable
         efforts promptly to prevent the issuance of any stop order or to obtain
         its withdrawal if such stop order is issued;

                  (xiv) (A) at least 48 hours prior to the filing of any
         registration statement or prospectus or any amendment or supplement to
         such registration statement or prospectus furnish a copy thereof to
         each seller of such Registrable Shares and (B) refrain from filing any
         such registration statement, prospectus, amendment or supplement to
         which counsel selected by the holders of a majority of the Registrable
         Shares being registered shall have objected in writing on the grounds
         that such amendment or supplement may not comply in all material
         respects with the requirements of the Securities Act;

                  (xv) at the request of any seller of such Registrable Shares
         furnish on the date or dates provided for in the underwriting
         agreement, if any, or upon the effective date of the registration
         statement: (A) an opinion of counsel, addressed to the underwriters, if
         any, and the sellers of Registrable Shares, covering such matters as
         such underwriters, if any, and sellers may reasonably request and as
         are customarily covered by the issuer's counsel in an underwritten
         offering; and (B) a letter or letters from the independent certified

                                       10
<PAGE>   11

         public accountants of the Company addressed to the underwriters, if
         any, and the sellers of Registrable Shares, covering such matters as
         such underwriters, if any, and sellers may reasonably request and as
         are customarily covered in accountant's letters in connection with an
         underwritten offering;

                  (xvi) during such time as any Investor may be engaged in a
         distribution of Registrable Shares, comply with Regulation M
         promulgated under the Exchange Act, to the extent applicable;

                  (xvii) participate with the Investors in any road show in
         connection with an underwritten offering; and

                  (xviii) otherwise comply with the provisions of the Securities
         Act with respect to the disposition of all securities covered by such
         registration statement in accordance with the intended method of
         disposition and make generally available to its security holders, as
         soon as reasonably practicable, an earnings statement satisfying the
         provisions of Section 11(a) of the Securities Act and Rule 158
         thereunder.

         (b) Each Investor that sells Registrable Shares pursuant to a
registration under this Agreement agrees as follows:

                  (i) Such seller shall cooperate as reasonably requested by the
         Company with the Company in connection with the preparation of the
         registration statement, and for so long as the Company is obligated to
         file and keep effective the registration statement, shall provide to
         the Company, in writing, for use in the registration statement, all
         such information regarding such seller and its plan of distribution of
         Registrable Shares as may be reasonably necessary to enable the Company
         to prepare the registration statement and prospectus covering the
         Registrable Shares, to maintain the currency and effectiveness thereof
         and otherwise to comply with all applicable requirements of law in
         connection therewith; and

                  (ii) During such time as such seller may be engaged in a
         distribution of the Registrable Shares, such seller shall (A) comply
         with Regulation M promulgated under the Exchange Act, to the extent
         applicable, (B) distribute the Registrable Shares under the
         registration statement solely in the manner described in the
         registration statement and (C) cease distribution of such Registrable
         Shares pursuant to such registration statement upon receipt of written
         notice from the Company that the prospectus covering the Registrable
         Shares contains any untrue statement of a material fact or omits a
         material fact required to be stated therein or necessary to make the
         statements therein not misleading.

         SECTION 5.6. REGISTRATION EXPENSES. (a) All expenses incident to the
Company's performance of or compliance with this Agreement, including, without
limitation, all registration and filing fees, fees of transfer agents and
registrars, fees and expenses of compliance with securities or blue sky laws,
fees of the National Association of Securities Dealers, Inc., printing expenses,
road show expenses, fees and disbursements of counsel for the Company, fees and
expenses of the Company's independent certified public accountants, and the fees
and expenses of any underwriters (excluding underwriting fees, expenses,
discounts or commissions attributable to the Registrable Shares included in such
registration, which will be paid or borne by the Investors holding or selling

                                       11
<PAGE>   12

such Registrable Shares) and other Persons retained by the Company (all such
expenses being herein called "REGISTRATION EXPENSES"), will be borne by the
Company. In addition, the Company will pay its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit or
quarterly review, the expense of any liability insurance obtained by the Company
and the expenses and fees for listing or authorizing for quotation the
securities to be registered on each securities exchange or automated quotation
system on which any shares of Common Stock are then listed or quoted.

         (b) In connection with a Demand Registration (or one take-down under
the Shelf Registration in lieu of a Demand Registration) effected pursuant to
this Agreement, the Company will reimburse the Investors covered by such
registration for the reasonable fees and expenses not in excess of $50,000 of
one (but only one) special counsel for the Investors chosen by the holders of a
majority of such Registrable Shares. In connection with each Piggyback
Registration, such holders shall bear all such fees and expenses of their
counsel.

         (c) Notwithstanding Sections 5.6(a) and 5.6(b) above, the Investors
agree that in the event any Investors withdraw any registration demand, such
Investors shall either pay the Registration Expenses incurred in such
registration or count such withdrawn demand toward their permitted Demand
Registration, as set forth in the first proviso to Section 5.1(a).

         SECTION 5.7. INDEMNIFICATION. (a) In the event of a registration of the
Registrable Shares under the Securities Act pursuant to the terms hereof, the
Company agrees to indemnify, hold harmless and defend, to the fullest extent
permitted by law, each seller of Registrable Shares, its officers, directors and
partners and each Person who controls such seller (within the meaning of the
Securities Act or the Exchange Act) against all losses, claims, damages,
liabilities and expenses (including, without limitation, reasonable attorneys'
fees except as limited by Section 5.7(c)) caused by, arising out of, resulting
from or related to any untrue or alleged untrue statement of a material fact
contained in any registration statement under which such Registrable Shares were
registered, any prospectus or preliminary prospectus contained therein or any
amendment thereof or supplement thereto or any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same are caused by or contained in
any information furnished in writing to the Company or any managing underwriter
by any such seller or any such controlling person expressly for use therein. In
connection with an underwritten offering, the Company will indemnify such
underwriters, their officers and directors and each Person who controls such
underwriters (within the meaning of the Securities Act or the Exchange Act) to
the same extent as provided above with respect to the indemnification of the
sellers of Registrable Shares (and with the same exception with respect to
information furnished or omitted by such underwriter or controlling person
thereof) and in connection therewith the Company shall enter into an
underwriting agreement in customary form containing such provisions for
indemnification and contribution as shall be reasonably requested by the
underwriters. The reimbursements required by this Section 5.7(a) will be made by
periodic payments during the course of the investigation or defense, as and when
bills are received or expenses incurred.

         (b) In the event of a registration of the Registrable Shares under the
Securities Act pursuant to the terms hereof, each Investor that sells any
Registrable Shares pursuant thereto agrees to indemnify, hold harmless and

                                       12
<PAGE>   13

defend, to the fullest extent permitted by law, the Company, its directors and
officers and each Person who controls the Company (within the meaning of the
Securities Act or the Exchange Act) and each underwriter and controlling person
thereof against all losses, claims, damages, liabilities and expenses
(including, without limitation, reasonable attorneys' fees except as limited by
Section 5.7(c)) caused by, arising out of, resulting from or related to any
untrue or alleged untrue statement of a material fact contained in any
registration statement under which such Registrable Shares were registered, any
prospectus or preliminary prospectus contained therein, or any amendment thereof
or supplement thereto or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, but only to the extent that such untrue or alleged untrue statement
or omission or alleged omission is contained in any information so furnished in
writing to the Company or any managing underwriter by such seller or a
controlling person thereof expressly for use therein. The reimbursements
required by this Section 5.7(b) will be made by periodic payments during the
course of the investigation or defense, as and when bills are received or
expenses incurred.

         (c) Any Person entitled to indemnification hereunder will (i) give
prompt written notice to the indemnifying party of any claim with respect to
which it seeks indemnification (provided that the failure to give such notice
shall not limit the rights of such Person except to the extent such failure to
give notice shall materially prejudice the rights of the indemnifying party) and
(ii) unless in such indemnified party's reasonable judgment (with written advice
of counsel) a conflict of interest between such indemnified and indemnifying
parties may exist with respect to such claim, permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. If such defense is assumed, the indemnifying party will not
enter into any settlement without the indemnified party's prior written consent
unless such settlement includes an unconditional release of the indemnified
party from liability relating to the claim. An indemnifying party who is not
entitled to, or elects not to, assume the defense of a claim will not be
obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in the
reasonable judgment (with written advice of counsel) of any indemnified party a
conflict of interest may exist between such indemnified party and any other of
such indemnified parties with respect to such claim.

         (d) Each party hereto agrees that, if for any reason the
indemnification provisions contemplated by Section 5.7(a), 5.7(b) or 5.7(c) are
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, claims, damages, liabilities or expenses (or actions in respect
thereof) referred to therein, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or expenses (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party as well as any other relevant equitable
considerations. The relative fault of such indemnifying party and indemnified
party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by such
indemnifying party or indemnified party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 5.7(d) were determined by pro

                                       13
<PAGE>   14

rata allocation (even if the Investors or any underwriters or all of them were
treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this
Section 5.7(d). The amount paid or payable by an indemnified party as a result
of the losses, claims, damages, liabilities or expenses (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with
investigating or, except as provided in Section 5.7(c), defending any such
action or claim. Notwithstanding the provisions of this Section 5.7(d), no
holder shall be required to contribute an amount greater than the dollar amount
of the proceeds received by such holder with respect to the sale of any
Registrable Shares. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Investors' obligations in this Section 5.7(d) to
contribute shall be several in proportion to the amount of Registrable Shares
registered by them and not joint.

         (e) The indemnification and contribution provided for under this
Agreement will remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party or any officer, director or
controlling Person of such indemnified party.

         SECTION 5.8. COMPLIANCE WITH RULE 144. The Company shall (i) make and
keep public information available, as those terms are understood and defined in
Rule 144, (ii) file with the Company in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act
and (iii) at the request of any holder who proposes to sell securities in
compliance with Rule 144, forthwith furnish to such holder a written statement
of compliance with the reporting requirements of the Commission as set forth in
Rule 144 and make available to such Investors such information as will enable
the Investors to make sales pursuant to Rule 144.

         SECTION 5.9. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. No Person may
participate in any registration hereunder which is underwritten unless such
Person (a) agrees to sell such Person's securities on the basis provided in any
underwriting arrangements approved by the Person or Persons entitled hereunder
to approve such arrangements and (b) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements.

         SECTION 5.10. TERMINATION OF REGISTRATION RIGHTS. The registration
rights provided hereunder shall terminate with respect to any holder of
Registrable Shares on such date as such holder can sell all its shares in any
three-month period pursuant to Rule 144.

                                   ARTICLE VI

                                  MISCELLANEOUS

         SECTION 6.1. TERMINATION. This Agreement shall automatically terminate
upon the earlier of (i) the mutual consent of all the parties hereto and (ii)
the end of the Standstill Period. Upon the termination of this Agreement, this
Agreement shall become void and have no effect and no party hereto shall have
any liability to the other party hereto in respect thereof, except that nothing
herein will relieve any party from liability for any breach of this Agreement
prior to its termination.

                                       14
<PAGE>   15

         SECTION 6.2. LEGEND AND STOP TRANSFER ORDER. To assist in effectuating
the provisions of this Agreement, the Investors consent and shall cause any of
their Affiliates that own Voting Securities to consent:

                  (i) to the placement of the following legend on all
         certificates representing Voting Securities hereafter owned, directly
         or indirectly, by the Investors or any of their Affiliates until such
         time as such securities have been transferred in accordance with
         Article III or, if earlier, the first anniversary of the Closing:

                  "The securities represented by this certificate are subject to
                  the provisions of a Standstill and Registration Rights
                  Agreement dated as of May 15, 2001, among Pediatrix Medical
                  Group, Inc. (the "COMPANY"), Welsh, Carson, Anderson & Stowe,
                  VII, L.P., WCAS Healthcare Partners, L.P, John K. Carlyle,
                  Steven K. Boyd, Ian M. Ratner, M.D., Roger J. Medel, M.D.,
                  Kristen Bratberg, Joseph Calabro, Karl B. Wagner, Brian T.
                  Gillon and certain other persons specified therein, and may
                  not be transferred except in accordance with such agreement.
                  Copies of such agreement are on file at the office of the
                  corporate secretary of the Company."

         Promptly following the acquisition of any Voting Securities not so
         legended by the Investors or any of their Affiliates, the Investors
         shall present or cause to be presented to the Company all certificates
         representing such Voting Securities for the placement of such legend
         thereon; and

                  (ii) to entry of a stop transfer order with any transfer agent
         and registrar for Voting Securities against transfer of any Voting
         Securities except in compliance with the requirements of this
         Agreement.

The Investors and their Affiliates shall be entitled to receive new certificates
representing any Voting Securities owned, directly or indirectly, by them
without the foregoing legend promptly following receipt of an opinion in form
and substance reasonably satisfactory to the Company from counsel reasonably
satisfactory to the Company (which, for such purpose, shall include Reboul,
MacMurray, Hewitt, Maynard & Kristol) to the effect that such legends are no
longer applicable.

         SECTION 6.3. SEVERABILITY. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect, unless such action would substantially impair the benefits to any party
of the remaining provisions of this Agreement.

         SECTION 6.4. SPECIFIC ENFORCEMENT. The Company and the Investors
acknowledge and agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that any of
the parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof and thereof in any court of the United States or any

                                       15
<PAGE>   16

state thereof having jurisdiction, this being in addition to any other remedy to
which it may be entitled by law or equity.

         SECTION 6.5. ENTIRE AGREEMENT. This Agreement and the Merger Agreement
and the other documents referred to herein and therein contain the entire
understanding of the parties with respect to the matters covered hereby and
thereby.

         SECTION 6.6. NOTICES. Any notice, demand, election, request, consent or
other communication required or permitted to be given hereunder shall be in
writing and shall be effective upon receipt. The addresses for such
communications shall be:

         If to the Company or to any member of Management:

                           Pediatrix Medical Group, Inc.
                           1301 Concord Terrace
                           Sunrise, Florida  33323-2825
                           Telecopy:  (954) 233-3203
                           Attention:  Brian T. Gillon

         with a copy to:

                           Sidley Austin Brown & Wood
                           875 Third Avenue
                           New York, New York 10022
                           Telecopy:  (212) 906-2021
                           Attention:  Scott M. Freeman

         If to any WCAS Party:

                           Welsh, Carson, Anderson & Stowe
                           320 Park Avenue
                           Suite 2500
                           New York, NY  10022
                           Telecopy:  (212) 896-9561
                           Attention:  D. Scott Mackesy

         with a copy to:

                           Reboul, MacMurray, Hewitt, Maynard & Kristol
                           45 Rockefeller Plaza
                           New York, New York 10111
                           Telecopy:  (212) 841-5725
                           Attention:  Othon A. Prounis

         If to Carlyle:

                           John K. Carlyle
                           10 Cliff Trail
                           Frisco, Texas  75034
                           Telecopy:  (972) 716-8024

                                       16
<PAGE>   17

         If to Boyd:

                           Steven K. Boyd
                           5215 Spicewood Lane
                           Frisco, Texas  75034

         If to Ratner:

                           Ian M. Ratner
                           2595 Dallas Parkway
                           Suite 400
                           Frisco, Texas 75034

Any party hereto may from time to time change its address for communications
under this Section 6.6 by giving at least five days' notice of such changed
address to the other party hereto.

         SECTION 6.7. AMENDMENTS AND WAIVERS. This Agreement may not be amended,
supplemented or discharged, and none of its provisions may be modified, except
expressly by an instrument in writing signed by the party to be charged. Any
term or provision of this Agreement may be waived, but only in writing by the
party which is entitled to the benefit of that provision. No waiver by any party
of any default with respect to any provision, condition or requirement hereof
shall be deemed to be a continuing waiver in the future thereof or a waiver of
any other provision, condition or requirement hereof; nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right accruing to it thereafter.

         SECTION 6.8. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, which together shall constitute but one instrument. It shall
not be necessary for each party to sign each counterpart so long as each party
has signed at least one counterpart.

         SECTION 6.9. SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and legal
representatives. No party shall assign this Agreement or any rights hereunder
except as provided in Section 3.2(a) and the assignment by a party of this
Agreement or any rights hereunder shall not affect the obligations of such party
under this Agreement. No provision of this Agreement is intended to confer any
right or remedy upon any person other than the parties hereto and Affiliates of
the Investors.

         SECTION 6.10. INTERPRETATION. When a reference is made in this
Agreement to an Article or Section, such reference shall be to an Article or
Section of this Agreement unless otherwise indicated or unless the context shall
otherwise require. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

                                       17
<PAGE>   18

         SECTION 6.11. LEGAL PROCEEDINGS. EACH OF THE PARTIES HERETO CONSENTS TO
THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURTS
LOCATED IN THE BOROUGH OF MANHATTAN WITH RESPECT TO ANY ACTION, SUIT OR
PROCEEDING BROUGHT TO ENFORCE ANY PROVISION OF THIS AGREEMENT OR TO DETERMINE
THE RIGHTS OF ANY PARTY HERETO. EACH INVESTOR HEREBY (I) AGREES IRREVOCABLY TO
DESIGNATE, APPOINT AND EMPOWER CARLYLE, WITH OFFICES ON THE DATE HEREOF AT 10
CLIFF TRAIL, FRISCO, TEXAS 75034, TELECOPY: (972) 716-8024, TO RECEIVE FOR AND
ON ITS BEHALF SERVICE OF PROCESS (PROVIDED THAT THE WCAS PARTIES, ATTENTION D.
SCOTT MACKESY, SHALL RECEIVE COPIES OF ALL NOTICES SENT TO CARLYLE PURSUANT
HERETO), AND (II) AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

         SECTION 6.12. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.

         SECTION 6.13. CERTAIN OBLIGATIONS OF THE WCAS PARTIES. Each of the WCAS
Parties agrees that it will not cause or encourage any Person to take any action
or do anything that, if taken or done by a WCAS Party, would be a breach of
Articles II, III or IV of this Agreement, or in any capacity consent to such
Person taking such action or doing such thing. In addition, each of the WCAS
Parties agrees to use all reasonable efforts to cause each of its affiliated
limited partnerships not to take any action or do anything that, if taken or
done by a WCAS Party, would be a breach of Articles II, III or IV of this
Agreement, including, without limitation, (i) using all reasonable efforts to
cause each of its representatives and the representatives of such affiliated
limited partnership that are members of the board of directors (or are serving
in a similar capacity) of a Person in which such WCAS Party or such affiliated
limited partnership has an ownership interest to vote against the taking of such
action or doing of such thing and (ii) causing all voting securities of such
Person beneficially owned by such WCAS Party or such affiliated limited
partnership to be voted against the taking of such action or the doing of such
thing.

                                       18
<PAGE>   19

         IN WITNESS WHEREOF, each of the parties hereto has executed this
Agreement, or has caused this Agreement to be duly executed by its authorized
representative, as of the date first written above.

                                       PEDIATRIX MEDICAL GROUP, INC.

                                       By: /s/ KRISTEN BRATBERG
                                          ---------------------------------
                                                Name: KRISTEN BRATBERG
                                                Title: PRESIDENT

                                       WELSH, CARSON, ANDERSON
                                           & STOWE VII, L.P.

                                       By:  WCAS VII Partners, L.P.
                                       General Partner

                                       By: /s/ JONATHAN M. RATHER
                                          ---------------------------------
                                                Name: JONATHAN M. RATHER
                                                Title: GENERAL PARTNER

                                       WCAS HEALTHCARE PARTNERS, L.P.

                                       By:  WCAS HC Partners
                                       General Partner

                                       By: /s/ JONATHAN M. RATHER
                                          ---------------------------------
                                                Name: JONATHAN M. RATHER
                                                Title: ATTORNEY-IN-FACT

                                       Patrick J. Welsh
                                       Russell L. Carson
                                       Bruce K. Anderson
                                       Thomas E. McInerney
                                       Robert A. Minicucci
                                       Anthony J. deNicola
                                       Paul B. Queally
                                       D. Scott Mackesy

                                        /s/ JONATHAN M. RATHER
                                       ------------------------------------
                                       By:  JONATHAN M. RATHER
                                              ATTORNEY-IN-FACT

                                       19
<PAGE>   20

                                     /s/ JOHN K. CARLYLE
                                     ------------------------------------
                                     JOHN K. CARLYLE

                                     CORDILLERA INTEREST, LTD.

                                     By: /s/ JOHN K. CARLYLE
                                        ---------------------------------
                                        Name: JOHN K. CARLYLE
                                        Title: GENERAL PARTNER

                                     /s/ STEVEN K. BOYD
                                     ------------------------------------
                                     STEVEN K. BOYD

                                     /s/ IAN M. RATNER, M.D.
                                     ------------------------------------
                                     IAN M. RATNER, M.D.

                                     /s/ ROGER J. MEDEL, M.D.
                                     ------------------------------------
                                     ROGER J. MEDEL, M.D.

                                     /s/ KRISTEN BRATBERG
                                     ------------------------------------
                                     KRISTEN BRATBERG

                                     /s/ JOSEPH CALABRO
                                     ------------------------------------
                                     JOSEPH CALABRO

                                     /s/ KARL B. WAGNER
                                     ------------------------------------
                                     KARL B. WAGNER

                                     /s/ BRIAN T. GILLON
                                     ------------------------------------
                                     BRIAN T. GILLON

                                       20
<PAGE>   21

                                   SCHEDULE A

Patrick J. Welsh
Russell L. Carson
Bruce K. Anderson
Thomas E. McInerney
Robert A. Minicucci
Anthony J. deNicola
Paul B. Queally
D. Scott Mackesy

                                       21

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