Document:

Exhibit 10.1

 

PURCHASE AGREEMENT

 

Sonus Pharmaceuticals, Inc.

22026 20th Avenue SE

Bothell, WA 
98021

 

Ladies and Gentlemen:

 

The undersigned,                           
(the “Investor”), hereby confirms and agrees with you as follows:

 

1.               This Purchase Agreement (the “Agreement”) is made as of April 27,
2006 between Sonus Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
and the Investor.

 

2.               As of the Closing (as defined below) and subject to the terms and
conditions hereof, the Company and the Investor agree that the Investor will
purchase from the Company and the Company will issue and sell to the Investor
                          
shares (the “Shares”) of common stock, par value $.001 per share, of the
Company (“Common Stock”), for a purchase price of $5.00 per share, or an
aggregate purchase price of $                       .
The Investor acknowledges that the offering of the Shares is not a firm
commitment underwriting and that there is no minimum offering amount.

 

3.               The completion of the purchase and sale of the Shares shall occur at a
closing (the “Closing”) which is expected to occur on or about May 2,
2006. [After the execution of this Agreement by the Investor, the
Investor shall remit to the Escrow Agent (as defined in the Escrow Agreement
(as defined in the Placement Agency Agreement (as defined below)) by wire
transfer to the Escrow Account (as defined in the Escrow Agreement) the amount
of funds equal to the aggregate purchase price of the Shares being purchased by
the Investor hereunder.  The release of
any amounts placed in the Escrow Account shall be made in accordance with the
terms and conditions of the Escrow Agreement. / On the Closing Date, upon
notice by the Lead Placement Agent (as defined in the Placement Agency Agreement
(as defined below)) that the Company has satisfied all conditions to the
obligations of the Placement Agents (as defined below) under the Placement
Agency Agreement, the Investor shall remit to the Company by wire transfer to
the account designated by the Company in this Agreement the amount of funds
equal to the aggregate purchase price of the Shares.] Unless
otherwise requested by the Investor and agreed to by the Company, the Shares
purchased by the Investor will be delivered by electronic book-entry at The
Depository Trust Company (“DTC”), registered in the Investor’s name and
address as set forth below, and will be released by U.S. Stock Transfer
Corporation, the Company’s transfer agent (the “Transfer Agent”), to the
Investor at the Closing. After the execution of this Agreement by the Investor,
the Investor shall direct the broker-dealer at which the account or accounts to
be credited with the Shares are maintained to set up a deposit/withdrawal at
custodian (“DWAC”) instructing the Transfer Agent to credit such account
or accounts with the Shares.

 

4.               The offering and sale of the Shares are being made pursuant to the
Registration Statement and Prospectus (as such terms are defined below). The
Investor acknowledges that the Company intends to enter into purchase
agreements in substantially the same form as this Agreement with certain
other investors and intends to offer and sell (the “Offering”) up to 6,130,000
shares of Common Stock pursuant to the Registration Statement and Prospectus. This
Agreement shall not create a binding obligation of the parties hereto until
such Agreement is accepted by the Company in its sole discretion.

 

5.               The Company has filed or shall file with the
Securities and Exchange Commission (the “Commission”) a prospectus (the “Base
Prospectus”) and prospectus supplement thereto (collectively, with the Base
Prospectus, the “Prospectus”) with respect to the registration statement
(File No. 333-123763) reflecting the offering of the Shares by the
Company, including all amendments thereto, the exhibits and any schedules
thereto, the documents otherwise deemed to be a part thereof or included
therein by the rules and regulations of the Commission (the “Rules and
Regulations”), and any

 

 

registration
statement relating to the offering contemplated by this Agreement and filed
pursuant to Rule 462(b) under the Rules and Regulations
(collectively, the “Registration Statement”), in conformity with the
Securities Act of 1933, as amended (the “Securities Act”), including Rule 424(b) thereunder.
The Investor hereby confirms that it had full access to the Base Prospectus and
the Company’s periodic reports and other information incorporated by reference
therein, and was fully able to read, review, download and print such materials.

 

6.               The Company has entered into a Placement Agency Agreement, dated April 27,
2006 (the “Placement Agency Agreement”), with Needham &
Company, LLC, Punk, Ziegel & Company, L.P. and ThinkEquity Partners
LLC (the “Placement Agents”), which will act as the Company’s placement
agents with respect to the Offering and receive a fee in connection with the
sale of the Shares. A copy of the Placement Agency Agreement is available upon
the Investor’s request.

 

7.               The Company’s obligations to issue and sell
Shares to the Investor shall be subject to the accuracy of the representations
and warranties made by the Investor and the fulfillment of those undertakings
of the Investor to be fulfilled prior to the Closing. The Investor’s obligation
to purchase the Shares shall be subject to the condition that the Placement
Agents shall not have (a) terminated the Placement Agency Agreement
pursuant to the terms thereof or (b) determined that the conditions to
closing in the Placement Agency Agreement have not been satisfied.

 

8.               The Company hereby makes the following representations, warranties and
covenants to the Investor:

 

(a)           The Company has full corporate power and
authority to enter into this Agreement. This Agreement has been duly
authorized, executed and delivered by the Company and constitutes a valid and
binding agreement of the Company, enforceable against the Company in accordance
with the terms hereof except to the extent enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally and by general principles of equity. The
performance of this Agreement and the consummation of the transactions
contemplated hereby will not result in the creation or imposition of any lien,
charge or encumbrance upon any of the assets of the Company or any subsidiaries
pursuant to the terms or provisions of, or result in a breach or violation of
any of the terms or provisions of, or conflict with or constitute a default
under, or give any party a right to terminate any of its obligations under, or
result in the acceleration of any obligation under, the certificate or articles
of incorporation or by-laws (or any analogous documents) of the Company or any
subsidiary, any indenture, mortgage, deed of trust, voting trust agreement, loan
agreement, bond, debenture, note agreement or other evidence of indebtedness, or
any material lease, contract or other agreement or instrument to which the
Company or any subsidiary is a party or by which the Company or any subsidiary,
or any of their respective properties, is bound or affected, or violate or
conflict with any judgment, ruling, decree, order, statute, rule or
regulation of any court or other governmental agency or body applicable to the
business or properties of the Company or any subsidiary.

 

(b)         The Registration Statement was declared effective by the Commission on April 14,
2006. The Registration Statement is effective on the date hereof and the
Company has not received notice that the Commission has issued or intends to
issue a stop order with respect to the Registration Statement or that the
Commission otherwise has suspended or withdrawn the effectiveness of the
Registration Statement, either temporarily or permanently, or intends or has
threatened in writing to do so. The “Plan of Distribution” section in the
Registration Statement describes the issuance and sale of the Shares. Each part of
the
Registration Statement, when it became effective, did not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein not
misleading. As of the date the Base Prospectus, or any amendment or supplement
to the Base Prospectus,  was or is filed
with the Commission and at the Closing Date, the Base Prospectus

 

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or any amendment or supplement thereto, did not and
will not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

 

(c)          The Company shall (i) before the opening of trading on the Nasdaq
National Market on the next trading day after the date hereof, issue a press
release, disclosing all material aspects of the transactions contemplated
hereby and (ii) make such other filings and notices in the manner and time
required by the Commission with the respect to the transaction contemplated
hereby. The Company shall not identify the Investor by name in any press
release or public filing, or otherwise publicly disclose the Investor’s name,
without the Investor’s prior, written consent, unless required by law or the rules and
regulations of any self-regulatory organization which the Company or its
securities are subject.

 

9.               The Investor hereby makes the following representations, warranties and
covenants to the Company:

 

(a)          The Investor represents that it has received or had full access to the
Base Prospectus, as well as the Company’s periodic reports and other
information incorporated by reference therein, prior to or in connection with
its receipt of this Agreement. The Investor further represents that it is
knowledgeable, sophisticated and experienced in making, and is qualified to
make, decisions with respect to investments in shares representing an
investment decision like that involved in the purchase of the Shares. The
Investor further represents that it has read and understands the contents of
this Agreement and that the Investor understands and agrees to the form of
transaction relating to the sale of Shares contemplated by this Agreement.

 

(b)         From and after obtaining knowledge of the
sale of the Shares contemplated hereby, such Investor has not taken, and prior
to the public announcement of the transaction such Investor shall not take, any
action that has caused or will cause such Investor to have, directly or
indirectly, sold or agreed to sell any Common Stock, effected any short sale,
whether or not against the box, established any “put equivalent position” (as
defined in Rule 16a-1(h) under the Securities Exchange Act of 1934,
as amended) with respect to the Common Stock, granted any other right
(including, without limitation, any put or call option) with respect to the
Common Stock or with respect to any security that includes, relates to or
derives any significant part of its value from the Common Stock, whether
or not, directly or indirectly, in order to hedge its position in the Shares.

 

(c)          The Investor shall not issue any press
release or make any other public announcement relating to this Agreement unless
(i) the content thereof is mutually agreed to by the Company and the
Investor or (ii) the Investor is advised by its counsel that such press
release or public announcement is required by law.

 

(d)         The Investor has the requisite power and
authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder. The execution
and delivery of this Agreement by the Investor and the consummation by it of
the transactions contemplated hereunder have been duly authorized by all
necessary action on the part of the Investor. This Agreement has been duly
executed by the Investor and, when delivered in accordance with the terms
hereof, will constitute the valid and binding obligation of the Investor
enforceable against the Investor in accordance with its terms, except as may be
limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other similar laws affecting the enforcement of creditors’ rights
generally or by general principles of equity.

 

(e)          The Investor understands that nothing in this
Agreement or any other materials presented to the Investor in connection with
the purchase or sale of the Shares constitutes legal, tax or

 

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investment advice. The
Investor has consulted such legal, tax or investment advisors as it, in its
sole discretion, deems necessary or appropriate in connection with its purchase
of the Shares.

 

(f)            The Investor represents that (a) it has
had no position, office or other material relationship within the past three
years with the Company or persons known to it to be affiliates of the Company, (b) neither
it, nor any group of which it is a member or to which it is related,
beneficially owns (including the right to acquire or vote) any securities of
the Company, and (c) it is not a, and it has no direct or indirect
affiliation or association with any, National Association of Securities Dealers, Inc.
member as of the date hereof.

 

10.         Notwithstanding any investigation made by any
party to this Agreement, all covenants, agreements, representations and warranties
made by the Company and the Investor herein shall survive the execution of this
Agreement, the delivery to such Investor of the Shares being purchased and the
payment therefor.

 

11            This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York, without giving effect to the principles
of conflicts of law.

 

12.         This Agreement may be executed in two or more counterparts, each of
which shall constitute an original, but all of which, when taken together,
shall constitute but one instrument, and shall become effective when one or
more counterparts have been signed by each party hereto and delivered to the
other parties. One or more
counterparts of this Agreement may be delivered via facsimile, with the
intention that they shall have the same effect as an original counterpart hereof.

 

[Remainder of page intentionally left blank.]

 

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Signature Page to Purchase
Agreement

 

Please confirm that the foregoing correctly sets forth the agreement
between us by signing in the space provided below for that purpose.

 

	
   

  	
  Name of Investor:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tax ID No.:

  	
   

  
	
   

  	
   

  
	
   

  	
  Contact Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name in
  which book-entry should be made (if different):

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Total
  Investment Amount:

  	
   

  
	
   

  	
   

  
	
  AGREED AND
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  SONUS
  PHARMACEUTICALS, INC.

  	
   

  
	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
											

 

Sonus
Pharmaceuticals, Inc. hereby directs that the purchase price for the
Shares of common stock being sold to the Investor pursuant to this Agreement be
wired to the following account:

 

Wells
Fargo Bank, N.A.EXHIBIT 10.1

 

EXECUTION
COPY

 

SECURITIES PURCHASE AGREEMENT

 

SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of April
26, 2006, by and among MediCor Ltd., a Delaware corporation, with
headquarters located at 4560 S. Decatur Blvd., Suite 300, Las Vegas, Nevada
89103 (the “Company”), Silver Oak Capital, L.L.C., in its capacity as
collateral agent, and the investors listed on the Schedule of
Purchasers attached hereto (individually, a “Purchaser” and
collectively, the “Purchasers”).

 

WHEREAS:

 

A.            The Company and the Purchasers are
executing and delivering this Agreement in reliance upon the exemption from
securities registration afforded by Rule 506 of Regulation D (“Regulation D”)
as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.            The Purchasers, severally, and not
jointly, wish to purchase from the Company and the Company wishes to sell to
the Purchasers, upon the terms and conditions stated in this Agreement,
(I) senior secured convertible notes, substantially in the form attached
hereto as Exhibit A, in an original aggregate principal amount of
$50,000,000 (such notes, together with any promissory notes or other securities
issued in exchange or substitution therefor or replacement thereof, and as any
of the same may be amended, restated or modified and in effect from time to
time, the “Notes”), and (II) warrants, substantially in the form
attached hereto as Exhibit B, to acquire that number of shares of
the Company’s common stock, par value $0.001 per share (the “Common Stock”),
equal to the quotient (the “Quotient”) of (a) 25% of the original
aggregate principal amount of the Notes purchased by the Purchasers at the
Closing (as defined in Section 1(a)), divided by (b) the Fixed
Conversion Price (as defined in the Notes (as defined below)) as of the Closing
Date (as defined in Section 1(b)) (such warrants, together with any
warrants or other securities issued in exchange or substitution therefor or
replacement thereof, and as any of the same may be amended and restated or
modified and in effect from time to time, being referred to as the “Warrants”;
the shares of Common Stock issuable upon exercise of the Warrants being
referred to as the “Warrant Shares”);

 

C.            The Notes shall be convertible into
shares of Common Stock (the shares of Common Stock issuable upon conversion of
the Notes being referred to herein as the “Conversion Shares”) in
accordance with the terms of the Notes;

 

D.            Contemporaneously with the Closing, the
parties hereto will execute and deliver a Registration Rights Agreement,
substantially in the form attached hereto as Exhibit C (the “Registration
Rights Agreement”), pursuant to which the Company will agree to provide
certain registration rights under the 1933 Act and the rules and regulations
promulgated thereunder, and applicable state securities laws;

 

 

E.             Contemporaneously with the Closing, the
parties hereto and certain of the Company’s Subsidiaries (as defined in
Section 3(a)) (the “Guarantors”) will execute and deliver a
Guarantee and Collateral Agreement, substantially in the form attached hereto
as Exhibit D (the “Collateral Agreement” and the guarantees
issued thereunder being referred to as the “Guarantees”), pursuant to which (i) the
Company and the Guarantors will agree to provide the Purchasers with security
interests in substantially all of the property and assets of the Company and
the Guarantors, including all patents and patent rights and (ii) the
Guarantors will agree to guaranty the obligations of the Company;

 

F.             Contemporaneously with the Closing, the
parties hereto and the Guarantors will execute and deliver one or more Deposit
Account Control Agreements, in a form mutually agreed upon by the parties
thereto (the “Account Control Agreements”), pursuant to which the
Company and each such Subsidiary will agree to enable the Purchasers to perfect
their security interest in all of the Company’s and each such Subsidiary’s
right, title and interest in certain accounts and in all collateral from time
to time credited to such accounts;

 

G.            Contemporaneously with the Closing, the
Purchasers, the Company, International Integrated Industries, LLC (“Integrated”)
and Sirius Capital, LLC (“Sirius”) will enter into a Subordination Agreement
in the form attached hereto as Exhibit G (the “Subordination
Agreement”) pursuant to which the Company and Integrated will agree to
subordinate the payment of the Promissory Notes made by the Company in favor of
Integrated (the “Integrated Notes”) to the prior payment in full of the
Notes in the manner set forth therein;

 

H.            Contemporaneously with the Closing, the
Company and Integrated will enter into a subordinated unsecured note in the
form attached hereto as Exhibit H (the “Subordinated Integrated Note”)
pursuant to which the Company will issue to Integrated a subordinated
promissory note in an original aggregate principal amount of $31,710,042.96;
and

 

I.              Contemporaneously with the Closing, the
Company and Sirius will enter into a subordinated unsecured convertible note in
the form attached hereto as Exhibit I (the “Subordinated Sirius
Note,” and together with the Subordinated Integrated Note, the “Subordinated
Notes”) pursuant to which the Company will issue to Sirius a subordinated
promissory note in an original aggregate principal amount of $37,500,000.

 

NOW THEREFORE, the Company and the Purchasers hereby agree as follows:

 

1.             Purchase
and Sale of Notes and Warrants.

 

a.             Purchase of Notes
and Warrants.  Subject to the satisfaction (or waiver) of the
conditions set forth in Sections 6(a) and 7(a) below, on the Closing Date
(as defined in Section 1(c)), the Company agrees to issue and sell to each
Purchaser, and each Purchaser severally, and not jointly, agrees to purchase
from the Company,

 

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(i) Notes in the principal
amount set forth opposite such Purchaser’s name on the Schedule of
Purchasers, along with (ii) the related Warrants with respect to the
number of Warrant Shares equal to the Quotient (rounded to the nearest whole
number, with 0.5 rounded up) calculated on the Notes purchased by such
Purchaser at the Closing (the “Closing”).  The purchase price (the “Purchase Price”)
of the Notes and the related Warrants at the Closing shall be equal to $1.00
for each $1.00 of principal amount of the Notes purchased (representing an
aggregate Purchase Price of $50,000,000 for the aggregate original principal
amount of $50,000,000 of Notes and the related Warrants to be purchased at the
Closing).

 

b.             Section 1272 Acknowledgment.  The
Company and each Purchaser acknowledge that each Note and its associated
Warrants are an “investment unit” within the meaning of Section 1273(c)(2) of
the Internal Revenue Code of 1986, as amended (the “Code”), that the
portion of the Purchase Price payable for the Notes is $995 per $1,000
principal amount, that such amount shall be the “issue price” (within the
meaning of Section 1273(b) of the Code) of the Notes per $1,000 principal
amount.  The Company and each Purchaser
agree that such issue price shall be used to determine the amount of “original
issue discount,” if any, accruing and to be reported on the Notes pursuant to
Section 1272 of the Code and the regulations promulgated thereunder.  The balance of the Purchase Price is payable
for the Warrants.

 

c.             The Closing Date.  The
date and time of the Closing (the “Closing Date”) shall be
10:00 a.m., New York City time, on the first day other than Saturday,
Sunday or other day on which commercial banks in the City of New York are
authorized or required by law to remain closed (a “Business Day”)
following the date of this Agreement, subject to the satisfaction (or waiver)
of all of the conditions to the Closing set forth in Sections 6(a) and
7(a) (or such later or earlier date as is mutually agreed to by the Company and
the Purchasers).  The Closing shall occur
on the Closing Date at the offices of Paul, Weiss, Rifkind, Wharton &
Garrison LLP, 1285 Avenue of the Americas, New York, New York
10019-6064 or at such other time, date and place as the Company and the
Purchasers may collectively designate in writing.

 

d.             Form of Payment.  On
the Closing Date, (i) each Purchaser shall pay the applicable Purchase
Price to the Company for the Notes and the Warrants to be issued and sold to
such Purchaser on the Closing Date by wire transfer of immediately available
funds in accordance with the Company’s written wire instructions, less any
amount withheld pursuant to Section 4(h), and (ii) the Company shall
deliver to each Purchaser Notes (in the principal amounts as such Purchaser
shall request) (the “Note Certificates”) representing such principal
amount of the Notes that such Purchaser is purchasing hereunder at the Closing,
along with warrants representing the Warrants that such Purchaser is purchasing
hereunder at the Closing, duly executed on behalf of the Company and registered
in the name of such Purchaser.

 

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2.             Purchaser’s
Representations and Warranties.

 

Each
Purchaser represents and warrants, severally and not jointly, as of the date of
this Agreement and on the Closing Date, with respect to only itself, that:

 

a.             Investment
Purpose.  Such Purchaser (i) is
acquiring the Notes (together with the related Guarantees) and the Warrants purchased
by such Purchaser hereunder, (ii) upon any conversion of the Notes, will
acquire the Conversion Shares then issuable, and (iii) upon any exercise
of any Warrants issued to such Purchaser, will acquire the Warrant Shares
issuable upon such exercise thereof (the Notes, the Conversion Shares, the
Warrants, the Warrant Shares and the Guarantees being collectively referred to
herein as the “Securities”) for its own account and not with a view
towards, or for offer or resale in connection with, the public sale or
distribution thereof, except pursuant to sales registered under or exempted
from the registration requirements of the 1933 Act; provided, however, that by
making the representations herein, such Purchaser does not agree to hold any of
the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time pursuant to a registration statement that
has been declared and is effective under the 1933 Act or in accordance with an
exemption from the registration requirements of the 1933 Act.

 

b.             Accredited
Investor Status.  Such Purchaser is
an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D.

 

c.             Reliance
on Exemptions.  Such Purchaser
understands and agrees that the Securities are being offered and sold to it in
reliance on specific exemptions from the registration requirements of the
United States federal and state securities laws and that the Company is relying
in part upon the truth and accuracy of, and such Purchaser’s compliance with,
the representations, warranties, agreements, acknowledgments and understandings
of such Purchaser set forth herein in order to determine the availability of
such exemptions and the eligibility of such Purchaser to acquire the
Securities.

 

d.             Information.  Such Purchaser and its advisors, if any, have
been furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the
Securities that have been requested by such Purchaser.  Such Purchaser and its advisors, if any, have
been afforded the opportunity to ask questions of and receive answers from the
Company.  Neither such inquiries nor any
other due diligence investigations conducted by such Purchaser or its advisors,
if any, or its representatives shall modify, amend or affect such Purchaser’s
right to rely on the truth, accuracy and completeness of the Company’s
representations and warranties contained in the Transaction Documents (as
defined in Section 3(b)).  Such Purchaser
understands that its investment in the Securities involves a high degree of
risk.  Such Purchaser has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of an Investment in the Securities.  Such Purchaser has sought such accounting,
legal and tax advice as it has considered necessary to make an informed
investment decision with respect to its acquisition of the Securities.

 

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e.             No
Governmental Review.  Such Purchaser
understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or
endorsement of the Securities or the fairness or suitability of the investment in
the Securities nor have such authorities passed upon or endorsed the merits of
the offering of the Securities.

 

f.              Transfer
or Resale.  Such Purchaser
understands that, except as provided in the Registration Rights Agreement,
(i) the Securities have not been and are not being registered under the
1933 Act or any state securities laws, and may not be offered for sale, sold,
assigned or transferred unless (A) subsequently registered thereunder,
(B) such Purchaser shall have delivered to the Company an opinion of
counsel, in a generally acceptable form, to the effect that such Securities to
be sold, assigned or transferred may be sold, assigned or transferred pursuant
to an exemption from such registration, or (C) such Purchaser provides the
Company with reasonable assurance that such Securities can be sold, assigned or
transferred pursuant to Rule 144 promulgated under the 1933 Act (or a
successor rule thereto) (“Rule 144”); (ii) any sale of the
Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144, and further, if Rule 144 is not
applicable, any resale of the Securities under circumstances in which the
seller (or the Person (as defined in the Notes) through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the
1933 Act) may require compliance with some other exemption under the
1933 Act or the rules and regulations of the SEC thereunder; and
(iii) neither the Company nor any other Person is under any obligation to
register the Securities under the 1933 Act or any state securities laws or
to comply with the terms and conditions of any exemption thereunder.  Notwithstanding the foregoing, the Securities
may be pledged in connection with a bona fide margin account or other loan or
financing arrangement secured by the Securities.

 

g.             Legends.  Such Purchaser understands that the
certificates or other instruments representing the Notes and the Warrants and,
until such time as the sale of the Conversion Shares and the Warrant Shares
have been registered under the 1933 Act as contemplated by the
Registration Rights Agreement, the stock certificates representing the
Conversion Shares and the Warrant Shares, except as set forth below, shall bear
a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such stock certificates):

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES 

 

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LAWS
OR (B) AN APPROPRIATE EXCEPTION UNDER SAID ACT OR APPLICABLE SECURITIES
LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

The
legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of the Securities upon which it
is stamped if (i) such Securities are registered for resale under the
1933 Act, (ii) in connection with a sale transaction, such holder
provides the Company with an opinion of counsel, in a generally acceptable
form, to the effect that a public sale, assignment or transfer of the
Securities may be made without registration under the 1933 Act,
(iii) such holder provides the Company with reasonable assurance that the
Securities can be sold pursuant to Rule 144(k) promulgated under the
1933 Act (or a successor rule thereto), or (iv) such holder provides
the Company with reasonable assurance that the Securities have been or are
being sold pursuant to Rule 144.

 

h.             Authorization;
Enforcement; Validity.  Such
Purchaser is a validly existing corporation, partnership, limited liability
company or other entity and has the requisite corporate, partnership, limited
liability or other organizational power and authority to purchase the
Securities pursuant to this Agreement. 
This Agreement and the Registration Rights Agreement have been duly and
validly authorized, executed and delivered on behalf of such Purchaser and are
valid and binding agreements of such Purchaser enforceable against such
Purchaser in accordance with their respective terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general principles of equity relating to
enforceability (regardless of whether considered in a proceeding at law or in
equity).  The Collateral Agreement, the
Account Control Agreements and each of the other agreements entered into and
other documents executed by such Purchaser in connection with the transactions
contemplated hereby and thereby as of the Closing will have been duly and
validly authorized, executed and delivered on behalf of such Purchaser as of
the Closing and will be valid and binding agreements of such Purchaser
enforceable against such Purchaser in accordance with their respective terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
principles of equity relating to enforceability (regardless of whether
considered in a proceeding at law or in equity).

 

6

 

3.             Representations
and Warranties of the Company.

 

The
Company represents and warrants, as of the date of this Agreement and on the
Closing Date, to each of the Purchasers, that:

 

a.             Organization
and Qualification.  Set forth on Schedule 3(a)
is a true and correct list of the entities in which the Company, directly or
indirectly, owns capital stock or holds an equity or similar interest, together
with their respective jurisdictions of organization and the percentage of the
outstanding capital stock or other equity interests of such entity that is held
by the Company or any Subsidiary of the Company.  Other than with respect to the entities
listed on Schedule 3(a), the Company does not, directly or indirectly,
own any securities or beneficial ownership interests in any other Person
(including through joint ventures or partnership arrangements) or have any
investment in any other Person.  Each of
the Company and its Subsidiaries is a corporation, limited liability company,
partnership or other entity and is duly organized and validly existing in good
standing under the laws of the jurisdiction in which it is incorporated or
organized and has the requisite corporate, partnership, limited liability
company or other organizational power and authority to own its properties and
to carry on its business as now being conducted.  The Company is duly qualified to do business
and is in good standing in every jurisdiction in which its ownership of
property or the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good
standing would not have a Material Adverse Effect.  As used in this Agreement, “Material
Adverse Effect” means any material adverse effect on (i) the business,
properties, assets, operations, results of operations, condition (financial or
otherwise), credit worthiness or prospects of the Company and its Subsidiaries,
taken as a whole, or on the transactions contemplated hereby or on any of the
agreements and instruments to be entered into in connection herewith
(including, without limitation, the legality, validity or enforceability
thereof), or on the authority or ability of the Company and its Subsidiaries to
perform their respective obligations under the Transaction Documents (as
defined in Section 3(b)) or (ii) the rights and remedies of the Purchasers
or the Collateral Agent under the Transaction Documents.  Except as set forth in Schedule 3(a),
the Company holds all right, title and interest in and to 100% of the capital
stock, equity or similar interests of each of its Subsidiaries, in each case,
free and clear of any Liens (as defined below), including any restriction on
the use, voting, transfer, receipt of income or other exercise of any
attributes of free and clear ownership by a current holder, and no such
Subsidiary owns capital stock or holds an equity or similar interest in any
other Person.  “Lien” means, with
respect to any asset, any mortgage, lien, pledge, hypothecation, charge,
security interest, encumbrance or adverse claim of any kind and any
restrictive covenant, condition, restriction or exception of any kind that has
the practical effect of creating a mortgage, lien, pledge, hypothecation,
charge, security interest, encumbrance or adverse claim of any kind
(including any of the foregoing created by, arising under or evidenced by any
conditional sale or other title retention agreement, the interest of a lessor
with respect to a Capital Lease Obligation (as defined in the Notes), or any
financing lease having substantially the same economic effect as any of the
foregoing).  “Subsidiary” means
any entity in which the Company, directly or indirectly, owns twenty percent
(20%) or more of the 

 

7

 

outstanding capital stock,
equity or similar interests or voting power of such entity at the time of this
Agreement or at any time hereafter.

 

b.             Authorization;
Enforcement; Validity.  The Company
has the requisite corporate power and authority to enter into and perform its
obligations under each of this Agreement, the Registration Rights Agreement,
the Irrevocable Transfer Agent Instructions (as defined in Section 5), the
Notes, the Warrants, the Collateral Agreement, the Account Control Agreements,
the Subordination Agreement, the Subordinated Notes and each of the other
agreements to which it is a party or by which it is bound and which is entered
into by the parties hereto in connection with the transactions contemplated
hereby and thereby (collectively, the “Transaction Documents”), and to
issue the Securities in accordance with the terms hereof and thereof.  Each Subsidiary that is a party to or bound
by a Transaction Document has the requisite corporate or other organizational
power and authority to enter into and perform its obligations under each
Transaction Document to which it is a party or by which it is bound.  The execution and delivery of the Transaction
Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby, including the issuance of
$50,000,000 in principal amount of the Notes and the related Warrants and the
reservation for issuance and the issuance of the Conversion Shares and Warrant
Shares issuable upon conversion or exercise thereof, have been duly authorized
by the board of directors of the Company (the “Board of Directors”) and no
further consent or authorization is required by the Company, its stockholders
or the Board of Directors.  To the extent
that a Subsidiary is a party to or bound by a Transaction Document, the
execution and delivery of such Transaction Document by such Subsidiary and the
consummation by such Subsidiary of the transactions contemplated thereby have
been duly authorized by the board of directors or equivalent body of such
Subsidiary and no further consent or authorization is required by such
Subsidiary, its equity holders or its board of directors or equivalent
body.  This Agreement and the other
Transaction Documents dated as of the date hereof have been duly executed and
delivered by Company and, if applicable, its Subsidiaries and constitute the
valid and binding obligations of such parties, enforceable against such parties
in accordance with their terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or
transfer, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general principles of equity relating to enforceability
(regardless of whether considered in a proceeding at law or in equity), and
except to the extent that indemnification provisions thereof may be limited by
federal or state securities laws.  As of
the Closing, the Transaction Documents dated after the date of this Agreement
and on or prior to the date of the Closing shall have been duly executed and
delivered by the Company and, if applicable, its Subsidiaries and shall
constitute the valid and binding obligations of such parties, enforceable
against such parties in accordance with their terms except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general principles of equity relating to
enforceability (regardless of whether considered in a proceeding at law or in
equity).

 

8

 

c.             Capitalization.  As of March 31, 2006, the authorized capital
stock of the Company consists of (i) 100,000,000 shares of Common Stock,
of which as of March 31, 2006, 20,844,187 shares are issued and outstanding,
6,602,811 shares are reserved for issuance pursuant to the Company’s stock
option, restricted stock and stock purchase plans and 1,726,883 shares are
issuable and reserved for issuance pursuant to securities issued or to be
issued (other than the Notes and the Warrants) exercisable or exchangeable for,
or convertible into, shares of Common Stock and (ii) 20,000,000 shares of
Preferred Stock, par value $0.001 per share, which includes (A) 45,000
shares of Series A Preferred Stock, of which 6,456 shares are issued and
outstanding and (B) 19,955,000 shares of “blank check” Preferred Stock, of
which no shares are issued and outstanding. 
All of such outstanding or issuable shares have been, or upon issuance
will be, validly issued and are, or upon issuance will be, fully paid and
nonassessable.  Except as disclosed in Schedule 3(c),
(A) no shares of the capital stock of the Company are subject to
preemptive rights or any other similar rights or any Liens suffered or
permitted by the Company; (B) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into or exchangeable or
exercisable for, any shares of capital stock of the Company or any of its
Subsidiaries, or contracts, commitments, understandings or arrangements by
which the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries,
or options, warrants, scrip, rights to subscribe to, calls or commitments of
any character whatsoever relating to, or securities or rights convertible into
or exercisable for, any shares of capital stock of the Company or any of its
Subsidiaries; (C) there are no agreements or arrangements under which the
Company or any of its Subsidiaries is obligated to register the sale of any of
their securities under the 1933 Act (except the Registration Rights
Agreement); (D) there are no outstanding securities or instruments of the
Company or any of its Subsidiaries that contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or
arrangements by which the Company or any of its Subsidiaries is or may become
bound to redeem a security of the Company and no other stockholder or similar
agreements to which the Company is party; (E) there are no outstanding
securities or instruments containing anti-dilution or similar provisions that
will or may be triggered by the issuance of the Securities; and (F) the
Company does not have any stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or agreement. 
The Company has furnished to each Purchaser true and correct copies of
the Company’s certificate of incorporation, as amended and as in effect on the
date hereof (the “Certificate of Incorporation”), and the Company’s
bylaws, as amended and as in effect on the date hereof (the “Bylaws”),
the organizational documents and bylaws of each of the Company’s Subsidiaries,
as amended and in effect on the date this representation is made and the terms
of all outstanding securities convertible into, or exercisable or exchangeable
for, Common Stock, and the material rights of the holders thereof in respect
thereto.

 

d.             Issuance
of Securities.  The Notes have been
duly authorized and, upon issuance in accordance with the terms hereof, shall
be (i) free from all taxes and Liens with respect to the issuance thereof
and (ii) entitled to the rights set 

 

9

 

forth in the Notes.  At least 25,000,000 shares of Common Stock
(subject to adjustment pursuant to the Company’s covenant set forth in
Section 4(f) below) have been duly authorized and reserved for issuance
upon conversion of the Notes and upon exercise of the Warrants.  Upon conversion or exercise in accordance
with the Notes or the Warrants, as the case may be, the Conversion Shares and
the Warrant Shares will be validly issued, fully paid and nonassessable and
free from all taxes and Liens with respect to the issuance thereof, with the
holders being entitled to all rights accorded to a holder of Common Stock.  Assuming the accuracy of the representations
and warranties of the Purchasers set forth in Section 2, the issuance by
the Company of the Notes and Warrants is, and the Conversion Shares and the
Warrant Shares upon conversion or exercise in accordance with the Notes or the
Warrants will be, exempt from registration under the 1933 Act and
applicable state securities laws.

 

e.             No
Conflicts.  The execution and
delivery of the Transaction Documents by the Company, and, if applicable its
Subsidiaries, the performance by such parties of their obligations hereunder
and thereunder and the consummation by such parties of the transactions
contemplated hereby and thereby (including the reservation for issuance and
issuance of the Conversion Shares and the Warrant Shares) will not
(i) result in a violation of the Certificate of Incorporation or the
Bylaws of the Company or any organizational document or bylaws of any
Subsidiary; (ii) conflict with, or constitute a breach or default (or an
event which, with the giving of notice or lapse of time or both, constitutes or
would constitute a breach or default) under, or give to others any right of
termination, amendment, acceleration or cancellation of, or other remedy with
respect to, any agreement, indenture or instrument to which the Company or any
Subsidiary is a party; or (iii) result in a violation of any Requirements
of Law.  Neither the Company nor any Subsidiary
is in violation of any term of its certificate of incorporation (or the
organizational charter) or bylaws or operating agreement, as applicable.  Neither the Company nor any Subsidiary is in
material violation of any term of or in material default under (or with the
giving of notice or lapse of time or both would be in violation of or default
under) any contract, agreement, mortgage, indebtedness, indenture, instrument,
judgment, decree or order or any statute, rule or regulation applicable to the
Company or any of its Subsidiaries.  The
business of the Company and each Subsidiary is not being conducted, and shall
not be conducted, in violation in any material respect of any Requirements of
Law.  Other than the filings described in
Section 4(b) and Section 4(g), in the case of the Registration Rights
Agreement, such filings as will be made under the 1933 Act or state securities
laws, and the filing of instruments to perfect security interests, neither the
Company nor any Subsidiary is required to obtain any consent, authorization or
order of, or make any filing or registration with, any court or governmental
agency or any regulatory or self-regulatory agency in order for it to execute,
deliver or perform any of its obligations under or contemplated by the
Transaction Documents in accordance with the terms hereof or thereof.  All consents, authorizations, orders, filings
and registrations that the Company or any of its Subsidiaries is required to
obtain as described in the preceding sentence have been obtained or effected on
or prior to the date of this Agreement. 
Neither the Company nor any of its Subsidiaries is in violation of any
applicable provision of the Sarbanes-Oxley Act of 2002, as amended, and the
rules and regulations

 

10

 

thereunder (collectively, “Sarbanes-Oxley”).  The Company is unaware of any facts or
circumstances that might give rise to any violation of any applicable provision
of Sarbanes-Oxley.  As used in this
Agreement, “Governmental Entity” means the government of any nation,
state, city, locality or other political subdivision thereof, any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, including, without limitation, the
United States Food and Drug Administration and any corporation or other entity
owned or controlled, through stock or capital ownership or otherwise, by any of
the foregoing.  “Requirements of Law”
means, as to any Person, any United States or foreign law, statute, treaty,
rule, regulation, right, privilege, qualification, license or franchise or
determination of an arbitrator or a court or other Governmental Entity, in each
case applicable or binding upon such Person or any of its property or to which
such Person or any of its property is subject or pertaining to any or all of
the transactions contemplated or referred to herein.

 

f.              SEC
Documents; Financial Statements. 
Since June 30, 2004, the Company has filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Securities Exchange Act of 1934,
as amended (the “1934 Act”) (all of the foregoing filed at least five
(5) Business Days prior to the date hereof (including all exhibits included
therein and financial statements and schedules thereto and documents
incorporated by reference therein) being hereinafter referred to as the “SEC
Documents”) and has filed or will file all such other reports, schedules, forms,
statutes, and other documents filed after the date that is five (5) Business
Days prior to the date hereof but prior to or on the Closing Date (the “Additional
SEC Documents”).  A complete and
accurate list of the SEC Documents (and, to the extent filed prior to the date
hereof, the Additional SEC Documents) is set forth on the SEC’s website www.sec.gov.  The Company has made available (or will make
available) to the Purchasers or their respective representatives true and
complete copies of the SEC Documents and the Additional SEC Documents.  Each of the SEC Documents and the Additional
SEC Documents was filed (or will be filed) with the SEC within the time frames
prescribed by the SEC for the filing of such SEC Documents and Additional SEC
Documents (including any extensions of such time frames permitted by
Rule 12b-25 under the 1934 Act) such that each filing was timely filed (or
deemed timely filed pursuant to Rule 12b-25 under the 1934 Act) with the
SEC.  As of their respective dates, the
SEC Documents and the Additional SEC Documents complied (or will comply) in all
material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents
and the Additional SEC Documents.  None
of the SEC Documents or Additional SEC Documents, at the time they were filed
(or will be filed) with the SEC, contained (or will contain) 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.  Since the filing of the SEC Documents and any
Additional SEC Documents filed prior to the date hereof, no event has occurred
that would require an amendment or supplement to any of the SEC Documents or
any of the Additional SEC Documents to the extent such SEC Documents or
Additional SEC Documents have not already been amended or supplemented as of
the date hereof.

 

11

 

Except for correspondence with
respect to (i) written requests by the Company, from time to time, for
confidential treatment of specified information in agreements required to be
filed as exhibits to SEC Documents and (ii) the Company Registration Statement
on Form SB-2, copies of which have been previously provided to the Purchasers,
the Company has not received any written comments from the SEC staff that have
not been resolved to the satisfaction of the SEC staff.  As of their respective dates, the financial
statements of the Company included in the SEC Documents or in the Additional
SEC Documents complied (or will comply) as to form in all material respects
with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto.  Except
as permitted with respect to foreign acquired entities, such financial
statements have been prepared in accordance with United States generally
accepted accounting principles (“GAAP”), consistently applied, during
the periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto, or (ii) in the case of
unaudited interim statements, to the extent they may exclude footnotes or may
be condensed or summary statements) and fairly present in all material respects
the financial position of the Company as of the dates thereof and the results
of their operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments that are not
material individually or in the aggregate). 
None of the Company or, to the Company’s knowledge, any stockholder,
officer, director or Affiliate (as defined in Section 4(j)) of the Company has
made any other filing with the SEC, issued any press release or made any other
public statement or communication on behalf of the Company or otherwise
relating to the Company or any of its Subsidiaries that contains any untrue
statement of a material fact or omits any statement of material fact necessary
in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading or has provided any other
information to the Purchasers, including information referred to in
Section 2(d), that contains any untrue statement of a material fact or
omits to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.  Except as set forth on Schedule 3(w),
which will be filed with the Form 8-K to be filed by the Company pursuant to
Section 4(i) hereof, none of the Company or any of its officers,
directors, employees or agents has provided the Purchasers with any material,
nonpublic information.  Except for
ancillary documents to be executed by the Company in connection with its
acquisition of the shares of Biosil Limited and Nagor Limited, respectively,
the Company is not required to file and will not be required to file any
agreement, note, lease, mortgage, deed or other instrument entered into prior
to the date hereof and to which the Company is a party or by which the Company
is bound that has not been previously filed as an exhibit (including by way of
incorporation by reference) to its reports filed or made with the SEC under the
1934 Act.  The accounting firm of
Greenberg & Company LLC, which has expressed its opinion with respect to
the consolidated financial statements included in the Company’s annual report
on Form 10-KSB for the fiscal year ended June 30, 2005 (the “Audit
Opinion”) and reviewed the consolidated financial standards included in the
Company’s most recently filed quarterly report on Form 10-QSB is
independent of the Company pursuant to the standards set forth in
Rule 2-01 of Regulation S-X promulgated by the SEC, and such firm was
otherwise qualified to render the Audit Opinion and complete such review under 

 

12

 

applicable law and the rules
and regulations of the SEC.  There is no
transaction, arrangement or other relationship between the Company and an
unconsolidated or other off-balance-sheet entity that is required to be
disclosed by the Company in its reports pursuant to the 1934 Act that has
not been so disclosed in the SEC Documents. 
Since June 30, 2004, neither the Company nor, to the knowledge of
the Company, any director, officer or employee, of the Company, has received or
otherwise had or obtained knowledge of any material complaint, allegation,
assertion or claim, whether written or oral, regarding the accounting or
auditing practices, procedures, methodologies or methods of the Company or its
internal accounting controls, including any complaint, allegation, assertion or
claim that the Company has engaged in questionable accounting or auditing
practices.  No attorney representing the
Company, whether or not employed by the Company, has reported evidence of a
material violation of securities laws, breach of fiduciary duty or similar
violation by the Company or any of its officers, directors, employees or agents
to the Board of Directors or any committee thereof or to any director or
officer of the Company pursuant to Section 307 of the Sarbanes-Oxley Act
of 2002, and the SEC’s rules and regulations promulgated thereunder.  Since June 30, 2004, there have been no
internal or SEC investigations regarding accounting or revenue recognition
discussed with, reviewed by or initiated at the direction of the chief
executive officer, principal financial officer, the Board of Directors or any
committee thereof.  Other than qualifying
the shares of Common Stock for listing on the American Stock Exchange (the “AMEX”),
the Company is eligible to register the Conversion Shares and the Warrant
Shares for resale by the Purchaser on Form S-3 promulgated under the 1933 Act.

 

g.             Absence
of Certain Changes.  Except as
disclosed in any SEC Documents that were filed with the SEC at least
five (5) days prior to the date of this Agreement, since June 30,
2005, there has been no Material Adverse Effect.  The Company has not taken any steps, and the
Company currently does not expect to take any steps, to seek protection
pursuant to any bankruptcy law nor does the Company have any knowledge or
reason to believe that the creditors of the Company intend to initiate involuntary
bankruptcy proceedings or any knowledge of any fact that would reasonably lead
a creditor to do so.  The Company is not
as of the date hereof, nor after giving effect to the transactions contemplated
hereby, will be Insolvent (as defined below). 
For purposes of this Section 3(g), “Insolvent” means
(i) the present fair saleable value of the Company’s assets is less than
the amount required to pay the Company’s total indebtedness, contingent or
otherwise, (ii) the Company is unable to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured, (iii) the Company intends to incur, prior to
April 30, 2008, or believes that it will incur, prior to April 30,
2008, debts that would be beyond its ability to pay as such debts mature or
(iv) the Company has unreasonably small capital with which to conduct the
business in which it is engaged as such business is now conducted and is
proposed to be conducted.  Except as
disclosed in Schedule 3(g), since June 30, 2005, the Company
has not declared or paid any dividends or sold any assets outside of the
ordinary course of business, individually or in the aggregate, in excess of
$250,000.  Except as disclosed in Schedule 3(g),
since June 30, 2005, the Company has not had any capital expenditures
outside the ordinary course of its business in excess of $250,000.

 

13

 

h.             Absence
of Litigation.  Except as set forth
on Schedule 3(h) and except for actions or litigation brought by
Persons (other than any Governmental Entity) in which the only claim made was
for money damages and neither the amount claimed nor the aggregate payments
made exceeded $50,000 and no other remedy or relief was provided,
(i) there is no, nor during the past five years has there been any,
action, suit, proceeding, claim, inquiry, complaint, dispute, arbitration or
investigation (each, a “Claim”) before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the
knowledge of the Company, threatened against or affecting the Company, the
Common Stock or any of the Company’s Subsidiaries or any of the Company’s or
its Subsidiaries’ officers or directors in their capacities as such, and
(ii) to the knowledge of the Company, none of the directors or officers of
the Company has been involved as a plaintiff, defendant or third-party witness
in securities-related litigation during the past five years.  None of the matters described in Schedule 3(h),
regardless of their outcome, will have a Material Adverse Effect.

 

i.              Acknowledgment
Regarding Purchaser’s Purchase of Notes and Warrants.  The Company acknowledges and agrees that each
Purchaser is acting solely in the capacity of an arm’s length purchaser with
respect to the Company in connection with the Transaction Documents and the
transactions contemplated hereby and thereby. 
The Company further acknowledges that each Purchaser is not acting as a
financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Transaction Documents and the transactions contemplated hereby
and thereby, and any advice given by any Purchaser or any of their respective
representatives or agents in connection with the Transaction Documents and the transactions
contemplated hereby and thereby is merely incidental to such Purchaser’s
purchase of the Securities.  The Company
further represents to each Purchaser that the Company’s decision to enter into
the Transaction Documents has been based solely on the independent evaluation
by the Company and its representatives.

 

j.              No
Undisclosed Events, Liabilities, Developments or Circumstances.  Except for the issuance of the Notes and
Warrants contemplated by this Agreement, no event, liability, development or
circumstance has occurred or exists, or is contemplated to occur, with respect
to the Company or its Subsidiaries or their respective business, properties,
credit worthiness, prospects, operations or financial condition, that would be
required to be disclosed by the Company under applicable securities laws at the
time this representation is made on a registration statement on Form SB-2 filed
with the SEC relating to an issuance and sale by the Company of Common Stock
and that has not been disclosed in an SEC Document filed with the SEC at least
five (5) days prior to the date of this Agreement.

 

k.             No
General Solicitation.  Neither the
Company, nor any of its Affiliates, nor any Person acting on its or their
behalf, has engaged or will engage in any form of general solicitation or
general advertising (within the meaning of Regulation D under the 1933
Act) in connection with the offer or sale of the Securities.

 

14

 

l.              No
Integrated Offering.  Neither the
Company, nor any of its Affiliates, nor any Person acting on its or their
behalf has, directly or indirectly, made any offers or sales of any security or
solicited any offers to buy any security under circumstances that would require
registration of any of the Securities under the 1933 Act or cause this
offering of the Securities to be integrated with prior offerings by the Company
for purposes of the 1933 Act or any applicable stockholder approval
provisions of any authority, nor will the Company take any action or steps that
would require registration of the issuance of any of the Securities under the
1933 Act or cause the offering of the Securities to be integrated with other
offerings for purposes of the 1933 Act other than as contemplated in the
Registration Rights Agreement.

 

m.            Dilutive
Effect.  The Company understands and
acknowledges that the number of Conversion Shares issuable upon conversion of
the Notes and the Warrant Shares issuable upon exercise of the Warrants will
increase in certain circumstances.  The
Company further acknowledges that any obligation to issue Conversion Shares
upon conversion of the Notes in accordance with this Agreement and the Notes
and its obligation to issue the Warrant Shares upon exercise of the Warrants in
accordance with this Agreement and the Warrants is, in each case, absolute and
unconditional regardless of the dilutive effect that such issuance may have on
the ownership interests of other stockholders of the Company.  Taking the foregoing into account, the Board
of Directors has determined in its good faith business judgment that the
issuance of the Notes and the Warrants and the consummation of the other
transactions contemplated hereby are in the best interests of the Company and
its stockholders.

 

n.             Employee
Relations.  Neither the Company nor
any of its Subsidiaries is involved in any labor union dispute nor, to the
knowledge of the Company or any of its Subsidiaries, is any such dispute
threatened.  Except as set forth on Schedule 3(n),
none of the employees of the Company or any of its Subsidiaries is a member of
a union that relates to such employee’s relationship with the Company or such
Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a
collective bargaining agreement, and the Company and its Subsidiaries believe
that the Company’s relations with its employees and the relations of its
Subsidiaries with their respective employees are good.  Except as previously disclosed in the SEC
Documents filed at least five (5) Business Days prior to the date hereof, no
executive officer (as defined in Rule 3b-7 under the 1934 Act), nor
any other Person whose termination would be required to be disclosed pursuant
to Item 5.02 of Form 8-K, has notified the Company that such Person
intends to leave the Company or otherwise terminate such Person’s employment
with the Company.  To the knowledge of
the Company or its Subsidiaries, no executive officer is, or is now expected to
be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or
any other contract or agreement or any restrictive covenant, and, to the
Company’s knowledge, the continued employment of each such executive officer
does not subject the Company or its Subsidiaries to any liability with respect
to any of the foregoing matters.  The
Company and its Subsidiaries are in compliance with all federal, state, local
and foreign laws and regulations relating to

 

15

 

employment and employment
practices, terms and conditions of employment and wages and hours, except where
the failure to be in compliance would not result, either individually or in the
aggregate, in a Material Adverse Effect.

 

o.             Intellectual
Property Rights.  The Company and its
Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark, service names, and all applications
and registrations therefor, tradedress, internet domain names, web pages,
patents, patent applications, patent rights, copyrights (whether or not
registered), inventions, licenses, approvals, governmental authorizations,
trade secrets, know-how, databases, processes, procedures, customer lists,
personally-identifiable information, confidential business information,
computer software and related documentation and other intellectual property
rights necessary to conduct their respective businesses as now conducted
(collectively, the “Intellectual Property”).  Schedule 3(o) contains a complete
and correct list of all patented and registered Intellectual Property owned by
the Company and its Subsidiaries and all pending patent applications and
applications for the registration of other Intellectual Property owned or filed
by the Company or its Subsidiaries.  Schedule 3(o)
also contains a complete and correct list of all licenses and other rights
granted by the Company to any third party with respect to the Intellectual
Property and licenses and other rights with respect to Intellectual Property
granted by any third party to the Company. 
All such items of Intellectual Property and licenses with respect
thereto are valid, subsisting any enforceable and in full force and effect.  None of the rights of the Company in any Intellectual
Property have expired or terminated, or are expected to expire or terminate
within five years from the date of this Agreement.  Except as described in Schedule 3(o),
none of the Intellectual Property, products or services used, developed,
provided, imported, made, sold, licensed or otherwise exploited by the Company
or any of its Subsidiaries infringes upon or otherwise violates any
Intellectual Property rights of others. 
Except as described in Schedule 3(o), no litigation is
pending and no claim has been made against the Company or any of its
Subsidiaries or, to the knowledge of the Company, is threatened, contesting the
right of the Company or any Subsidiary to sell, license or use the Intellectual
Property presently sold, licensed or used by the Company or any of its
Subsidiaries.  To the Company’s
knowledge, there is no patent or patent application which contains claims that
interfere with the issued or pending claims of any of the Intellectual Property
owned, licensed or used by the Company. The Company and its Subsidiaries and,
to the Company’s knowledge, the inventors of the Intellectual Property owned,
licensed or used by the Company and the Company’s licensors, have complied with
the duty of candor and disclosure set forth in 37 C.F.R. § 1.56 with
respect to each of the patents and patent applications comprising the
Intellectual Property owned, licensed or used by the Company.  None of the technology employed by the
Company or its Subsidiaries has been obtained or is being used by the Company
or its Subsidiaries in violation of any contractual obligation binding on the
Company or its Subsidiaries or, to the Company’s knowledge, any of its
officers, directors or employees in violation of the rights of any persons.  The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value
of all of their Intellectual Property. 
Except as described in Schedule 3(o), to the knowledge of
the Company, no third party is infringing upon or

 

16

 

otherwise violating the
Intellectual Property rights of the Company or any of its Subsidiaries.  To the Company’s knowledge, at no time during
the conception or reduction to practice of the Company’s or any of its Subsidiaries’
Intellectual Property was any developer, inventor or other contributor to such
Intellectual Property operating under any grants from any governmental
authority.  Each present or past
employee, officer, consultant or any other Person who developed any part of any
product that is or will be used in the conduct of the Company’s business as
currently contemplated has executed a valid and enforceable agreement with the
Company or the Subsidiary that conveys any and all right, title and interest in
and to all Intellectual Property developed by such Person in connection with
such Person’s employment or contract with the Company or the Subsidiary,
and establishes that, to the extent such Person is an author of a
copyrighted work created in connection with such Person’s employment or
contract, such work is a “work made for hire.”

 

p.             Environmental
Laws.  Each of the Company and its
Subsidiaries (i) is in compliance with any and all Environmental Laws (as
defined below), (ii) has received all permits, licenses or other approvals
required of it under applicable Environmental Laws to conduct its business,
(iii) is in compliance with all terms and conditions of any such permit,
license or approval and (iv) to the Company’s knowledge, there are no events,
conditions or circumstances reasonably likely to result in liability of the
Company or any Subsidiary pursuant to Environmental Laws.  The term “Environmental Laws” means
all federal, state, local or foreign laws relating to pollution or protection
of human health or the environment (including ambient air, surface water,
groundwater, land surface or subsurface strata), including laws relating to
emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes into the
environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
hazardous materials, as well as all authorizations, codes, decrees, demands or
demand letters, injunctions, judgments, licenses, notices or notice letters,
orders, permits, plans or regulations issued, entered, promulgated or approved
thereunder.

 

q.             Title.  The Company and its Subsidiaries have good
and valid title to all personal property owned by them that is material to the
business of the Company, in each case free and clear of all Liens except such
as are described in Schedule 3(q) and except for Liens incurred to
secure Indebtedness used to purchase or refinance any such personal property
that only secures such personal property. 
The Company does not own (rather than lease) any interest in any real
property.

 

r.              Insurance.  The Company and each Subsidiary is insured by
insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company believes to be prudent and
customary in the businesses in which the Company and its Subsidiaries are
engaged.  Neither the Company nor any
such Subsidiary has been refused any insurance coverage sought or applied for,
and neither the Company nor any such Subsidiary has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such
coverage expires

 

17

 

or to obtain similar coverage
from similar insurers as may be necessary to continue its business at a cost
that would not have a Material Adverse Effect.

 

s.             Regulatory
Permits.  The Company and its
Subsidiaries possess all certificates, authorizations, approvals, licenses and
permits issued by the appropriate federal, state or foreign regulatory
authorities necessary to conduct their respective businesses as presently
conducted (“Permits”), including all Permits required by the United
States Food and Drug Administration (the “FDA”) or any other federal,
state or foreign agencies or bodies engaged in the regulation of medical
devices, including breast implants, or biohazardous materials, and neither the
Company nor any Subsidiary has received any notice of proceedings relating to
the revocation or modification of any such Permit.  Each of the Company and each Subsidiary is,
and at all times since July 1, 2001, has been, in compliance with all Permits
and all Requirements of Law applicable to such entity or by which any property
or asset of such entity is bound or affected, and has not received written
notice of any violation of any such Requirements of Law, except as has not had,
or would not reasonably be expected to have, a Material Adverse Effect.  The Company is not in violation of any of the rules, regulations
or requirements of the OTC Bulletin Board (the “Principal Market”;
provided, however, that, if after the date of this Agreement the Common Stock
is listed on the New York Stock Exchange, the AMEX, any other nationally
recognized stock exchange or on The NASDAQ Stock Market, Inc. (“NASDAQ”),
the “Principal Market” shall mean such exchange or market, as
applicable), and has no knowledge of any facts or circumstances that could
reasonably lead to suspension or termination of trading of the Common Stock on
the Principal Market.  Since
February 7, 2003, (i) the Company’s Common Stock has been eligible
for quotation on the Principal Market, (ii) trading in the Common Stock
has not been suspended by the SEC or the Principal Market and (iii) the
Company has received no communication, written or oral, from the SEC or the
Principal Market regarding the suspension or termination of trading of the
Common Stock on the Principal Market. 
The Company satisfies the quantitative and qualitative standards
applicable to Small Business Issuers (as defined in SEC Regulation S-B) for
initial listing of the Common Stock on the AMEX, as set forth in Part I of
the AMEX Company Guide.

 

t.              Internal
Accounting Controls; Disclosure Controls and Procedures.  The Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset and liability accountability,
(iii) access to assets or incurrence of liability is permitted only in
accordance with management’s general or specific authorization and
(iv) the recorded accountability for assets and liabilities is compared
with the existing assets and liabilities at reasonable intervals and
appropriate action is taken with respect to any differences.  The Company has timely filed and made
available to the Purchasers all certifications and statements required by
(A) Rule 13a-14 or Rule 15d-14 under the 1934 Act and
(B) Section 906 of Sarbanes-Oxley with respect to any Company SEC Documents.  The Company maintains disclosure controls and
procedures required by Rule 13a-15 or Rule 15d-15 under the

 

18

 

1934 Act; such controls
and procedures are effective to ensure that the information required to be
disclosed by the Company in the reports that it files with or submits to the
SEC (X) is recorded, processed, summarized and reported accurately within
the time periods specified in the SEC’s rules and forms and (Y) is
accumulated and communicated to the Company’s management, including its
principal executive officer and principal financial officer, as appropriate to
allow timely decisions regarding required disclosure.  The Company maintains internal control over
financial reporting required by Rule 13a-15 or Rule 15d-15 under the
1934 Act; such internal control over financial reporting is effective and
does not contain any material weaknesses.

 

u.             No
Materially Adverse Contracts, Etc. 
Except as has not had, and would not reasonably be expected to have, a
Material Adverse Effect, (i) each Specified Contract is a legal, valid and
binding obligation of the Company or a Subsidiary, as applicable, in full force
and effect and enforceable against the Company or a Subsidiary in accordance
with its terms, subject to the effect of any applicable bankruptcy, insolvency
(including all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting creditors’ rights generally and subject to
the effect of general principles of equity, (ii) to the knowledge of the
Company, each Specified Contract is a legal, valid and binding obligation of
the counterparty thereto, in full force and effect and enforceable against such
counterparty in accordance with its terms, subject to the effect of any
applicable bankruptcy, insolvency (including all laws relating to fraudulent
transfers), reorganization, moratorium or similar laws affecting creditors’
rights generally and subject to the effect of general principles of equity,
(iii) neither the Company nor any of its Subsidiaries is and, to the
Company’s knowledge, no counterparty is, in breach or violation of, or in
default under, any Specified Contract, (iv) none of the Company or any of
the Subsidiaries has received any claim of default under any Specified Contract
or any written notice of an intention to terminate, not renew or challenge the
validity or enforceability of any Specified Contract and (v) to the
Company’s knowledge, no event has occurred which would result in a breach or
violation of, or a default under, any Specified Contract (with or without
notice or lapse of time or both).  For
purposes of this Agreement, the term “Specified Contract” means any
contract, agreement or understanding currently in effect that has been filed
(or should have been filed) as an exhibit to any SEC Document or is otherwise
described or incorporated by reference in such SEC Document.  Neither the Company nor any of its
Subsidiaries is subject to any charter, corporate or other legal restriction,
or any judgment, decree, order, rule or regulation that has, or is expected in
the future to have, a Material Adverse Effect. 
Neither the Company nor any of its Subsidiaries is a party to any
contract, agreement or understanding that in the judgment of the Company’s
officers has or is expected to have a Material Adverse Effect.

 

v.             Tax
Status.  The Company and each of its
Subsidiaries (i) has made or filed all material foreign, federal, state
and local income and other tax returns, reports and declarations required by
any jurisdiction in which it is subject to tax, (ii) has paid all taxes
and other governmental assessments and charges that are material in amount and
due, whether shown to be due on such returns, reports and declarations or
otherwise, except those being contested in good faith and for which the Company
has 

 

19

 

made appropriate reserves on
its books, and (iii) has set aside on its books provisions reasonably
adequate for the payment of all taxes for periods subsequent to the periods to
which such returns, reports or declarations (referred to in
clause (i) above) apply.  There
are no unpaid taxes in any material amount claimed in writing to be due by the
taxing authority of any jurisdiction, and, to the Company’s knowledge, there is
no basis for any such claim.

 

w.            Transactions
With Affiliates.  Except as set forth
in Schedule 3(w) or as set forth in the SEC Documents filed at
least five (5) Business Days prior to the date of this Agreement, no Related
Party (as defined in Section 4(j)) of the Company or any of its
Subsidiaries, or any of their respective Affiliates, is presently, or has been
within the past two years, a party to any transaction, contract, agreement,
instrument, commitment, understanding or other arrangement or relationship with
the Company (other than directly for services as an employee, officer and/or
director), whether for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise requiring payments
or consideration to or from any such Related Party.  Except as set forth in Schedule 3(w),
no Related Party of the Company or any of its Subsidiaries, or any of their
respective Affiliates, has any direct or indirect ownership interest in any
Person (other than ownership of less than 1% of the outstanding common stock of
a publicly traded corporation) in which the Company or any of its Subsidiaries
has any direct or indirect ownership interest or with which the Company or any
of its Subsidiaries competes or has a business relationship.

 

x.             Application
of Takeover Protections.  The Company
and the Board of Directors have taken all necessary action, if any, in order to
render inapplicable any control share acquisition, business combination or
other similar anti-takeover provision under the Certificate of Incorporation or
the laws of Delaware that is or could become applicable to the Purchasers as a
result of the transactions contemplated by this Agreement, including the
Company’s issuance of the Securities and the Purchasers’ ownership of the
Securities.

 

y.             Rights
Agreement.  The Company has not
adopted a stockholder rights plan or similar arrangement relating to
accumulations of beneficial ownership of Common Stock or a change in control of
the Company.

 

z.             Foreign
Corrupt Practices.  Neither the
Company, nor any of its Subsidiaries, nor to the Company’s knowledge, any
director, officer, agent, employee or other Person acting on behalf of the
Company or any of its Subsidiaries has, in the course of its actions for, or on
behalf of, the Company or any of its Subsidiaries, used any corporate funds for
any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds;
violated or is in violation of any provision of the U.S. Foreign Corrupt
Practices Act of 1977, as amended; or made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or
domestic government official or employee.

 

20

 

aa.           No
Other Agreements.  As of the Closing
Date, the Company has not, directly or indirectly, made any agreements with any
Purchasers relating to the terms or conditions of the transactions contemplated
by the Transaction Documents except as set forth in the Transaction Documents.

 

bb.          Outstanding
Indebtedness; Liens.  Payments of
principal and other payments due under the Notes will, upon issuance in
connection with the Closing, rank senior to all other Indebtedness (as defined
in the Notes) of the Company and its Subsidiaries other than (X) payments of
(i) principal due under that certain Loan Agreement dated
September 10, 2004 by and between BNP Paribas and ES Holdings SAS, which
agreement has not been amended, supplemented or otherwise modified since such
date except as previously filed as an exhibit to an SEC Document (the “BNP
Facility”) and (ii) the two Subsequent Payments (as defined in the
Eurosilicone Agreement) due under the Eurosilicone Agreement; provided, however
that the aggregate amount of all such principal payments shall not exceed
€16,400,000, and (Y) trade accounts payable of the Company and its
Subsidiaries.  As used in this Agreement,
the “Eurosilicone Agreement” means that certain Agreement for the Sale
and Purchase of the Shares of Laboratoires Eurosilicone SA, dated May 17,
2004, by and among the Company and the sellers named therein, which agreement
has not been amended, supplemented or otherwise modified since such date.  Except as set forth on Schedule 3(bb),
(a) neither the Company nor any of its Subsidiaries has any outstanding
Indebtedness or trade accounts payable, (b) there are no Liens on any of
the respective assets of the Company or any of its Subsidiaries, and
(c) there are no financing statements securing obligations of any amounts
filed against the Company or any of its Subsidiaries or any respective
assets.  As of March 31, 2006, the
aggregate amount of the outstanding Indebtedness and trade accounts payable of
the Company or any of its Subsidiaries shall not exceed the aggregate amount of
Indebtedness and trade accounts payable set forth on Schedule 3(bb)
by more than $500,000.

 

cc.           Leases.  Neither the Company nor any of its
Subsidiaries owns any real property.  Schedule 3(cc)
contains a complete and correct list of all the real property which provide for
a monthly rent in excess of $2,000 per month; facilities that (i) are
leased or otherwise possessed by the Company or any of its Subsidiaries,
(ii) in connection with which the Company or any of its Subsidiaries has
entered into an option agreement, participation agreement or acquisition
agreement or (iii) the Company or any of its Subsidiaries has agreed (or has
an option) to lease or otherwise acquire or may be obligated to lease or
otherwise acquire in connection with the conduct of its business (collectively,
the “Leased Real Property”).  Schedule 3(cc)
also contains a complete and correct list, along with a summary of material
terms, of all leases and other agreements with respect to which the Company or
any of its Subsidiaries is a party or otherwise bound or affected with respect
to the Leased Real Property (the “Real Property Leases”).  Except as set forth in Schedule 3(cc),
the Company or its Subsidiaries is the sole legal and equitable owner of a
leasehold interest in the Leased Real Property, and possesses good and
marketable, indefeasible title thereto, free and clear of all Liens and other
matters affecting title to such leasehold that could impair the ability of the
Company or its Subsidiaries to realize the benefits of the rights provided to
it under the Real Property

 

21

 

Leases.  All of the Real Property Leases are valid and
in full force and effect and are enforceable against the Company or its
Subsidiaries and neither the Company nor any other party thereto is in default
under any of such Real Property Leases and no event has occurred which with the
giving of notice or the passage of time or both could constitute a default
under any of such Real Property Leases. 
Except as set forth in Schedule 3(cc), no Real Property
Lease is subject to termination, modification or acceleration as a result of
the transactions contemplated hereby or by the other Transaction
Documents.  All of the Real Property
Leases will remain in full force and effect upon, and permit, the consummation
of the transactions contemplated hereby or by the other Transaction
Documents.  The Leased Real Property is
properly zoned for its present use, are permitted, conforming structures and
complies with all applicable building codes, ordinances and other Requirements
of Law.  There are no pending or, to the
knowledge of the Company, threatened condemnation, eminent domain or similar
proceedings, or litigation or other proceedings affecting the Leased Real
Property, or any portion or portions thereof. 
To the knowledge of the Company, there are no pending or threatened
requests, applications or proceedings to alter or restrict any zoning or other
use restrictions applicable to the Leased Real Property that would interfere
with the conduct of the Company’s business. 
There are no restrictions applicable to the Leased Real Property that
would interfere with the Company’s or any Subsidiary’s making an assignment to
the Purchasers as contemplated by the Transaction Documents, including any
requirement under any Real Property Leases requiring the consent of, or notice
to, any lessor of any such Leased Real Property.

 

dd.          Communication
with the FDA and other Governmental Authorities.  The Company has no knowledge of any pending
communication from the FDA or other similar foreign regulating authority or
body that would cause the Company to revise its strategy for seeking marketing
approval from the FDA or such authority or body for the Company’s saline filled
breast implants or any of the Company’s other products under development as
described in the SEC Documents.

 

ee.           Studies
and Other Preclinical and Clinical Tests. 
The studies, tests and preclinical and clinical trials conducted by or
on behalf of the Company that are described in the SEC Documents were and, if
still pending, are being conducted in all material respects in accordance with
experimental protocols, procedures and controls pursuant to accepted
professional and scientific standards; the descriptions of the results of such
studies, tests and trials contained in the SEC Documents are accurate and
complete; and neither the Company nor any of its Subsidiaries has received any
notices or correspondence from the FDA or any foreign, state or local
governmental body exercising comparable authority or any Institutional Review
Board or comparable authority requiring the termination, suspension or material
modification of any studies, tests or preclinical or clinical trails conducted
by or on behalf of the Company.

 

ff.            Brokers’
Fees.  Except for the fees and
expenses payable by the Company to UBS Securities Inc. (“UBS”) pursuant
to a letter agreement, dated April 20, 2005 and the amendment to such letter
agreement, dated February 27, 2006 (copies of which have been provided to each
of the Purchasers), there are no brokerage

 

22

 

commissions, finder’s fees, or
similar fees or commissions payable by the Company or any of its Subsidiaries
in connection with the transactions contemplated hereby or by the other
Transaction Documents based on any agreement, arrangement or understanding with
the Company or any of its Subsidiaries.

 

gg.          Products.

 

(i)            Except as set forth on Schedule 3(gg),
there are no product liability claims against or involving the Company or any
of its Subsidiaries or any product manufactured, marketed or distributed at any
time by the Company or any of its Subsidiaries (“Products”) and no such
claims in excess of $50,000 in the aggregate have been settled, adjudicated or
otherwise disposed of since June 30, 2001.

 

(ii)           Except as set forth on Schedule 3(gg),
there are no statements, citations or decisions by any Governmental Authority
specifically stating that any Product is defective or unsafe or fails to meet
any standards promulgated by any such Governmental Authority.  Except as set forth on Schedule 3(gg),
there have been no recalls ordered by any such Governmental Authority with
respect to any Product.  Except as set
forth on Schedule 3(gg), to the Company’s knowledge, there is no (A)
fact relating to any Product that may impose upon the Company or any of its
subsidiaries a duty to recall any Product or a duty to warn customers of a
defect in any Product, (B) latent or overt design, manufacturing or other
defect in any Product or (C) material liability for warranty claims or returns
with respect to any Product not fully reflected on the Company’s financial
statements referred to in Section 4(e) hereof.

 

hh.          Investment
Company.  The Company is not, and
upon the Closing will not be, an “investment company,” a company controlled by
an “investment company,” or an “affiliated person” of, or “promoter” or
“principal underwriter” for, an “investment company,” as such terms are defined
in the Investment Company Act of 1940, as amended.

 

ii.             Privacy
of Customer Information.  Each of the
Company and its Subsidiaries has a privacy policy (the “Privacy Policy”)
regarding the collection and use of information from customers and other
parties (“Customer Information”), copies of which have been provided to
the Purchasers.  Neither the Company nor
any of its Subsidiaries uses any of the Customer Information in an unlawful
manner, or in a manner violative of the Privacy Policy or the privacy rights of
its customers.  Neither the Company nor
any of its Subsidiaries has collected any Customer Information through its
website in an unlawful manner or in violation of its Privacy Policy.  Each of the Company and its Subsidiaries has
adequate security measures in place to protect the Customer Information from
illegal use by third parties or use by third parties in a manner violative of
the rights of privacy of its customers. 
No third party has obtained unauthorized access to the Customer
Information.  The consummation of the
transactions and the transfer of the Customer Information will not violate the
Privacy Policy of the Company or any of its Subsidiaries as it currently exists
or as it existed at any time during which any of the Customer Information was
collected or obtained, or any rights of consumers relating thereto.

 

23

 

jj.             Acquisition
Agreement.  The Company has delivered
or made available to the Purchasers, true, complete and correct copies of the
Share Purchase Agreement dated September 13, 2005, by and among the Company and
the shareholders listed therein relating to the acquisition of all of the
issued and outstanding shares of Biosil Limited and Nagor Limited, respectively
(the “Share Purchase Agreement”).

 

4.             Covenants.

 

a.             Reasonable
Best Efforts.  Each party shall use
its reasonable best efforts to timely satisfy each of the conditions to be
satisfied by it as provided in Sections 6 and 7 of this Agreement.

 

b.             Form D
and Blue Sky.  The Company agrees to
timely file a Form D with respect to the Securities as required under
Regulation D and to provide a copy thereof to each Purchaser promptly
after such filing.  The Company shall, on
or before the Closing Date, take such action as the Company shall reasonably
determine is necessary in order to obtain an exemption for, or to qualify the
Securities for, sale to the Purchasers at the Closing pursuant to this Agreement
under applicable securities or “Blue Sky” laws of the states of the United
States, and shall provide evidence of any such action so taken to the
Purchasers on or prior to the Closing Date. 
The Company shall make all filings and reports relating to the offer and
sale of the Securities required under applicable securities or “Blue Sky” laws
of the states of the United States following the Closing Date.  Notwithstanding the foregoing, the Company
shall in no event be obligated to qualify to do business in any jurisdiction
where it is not now so qualified or to take any action that would subject it to
service of process in suits, other than those arising out of the offering or
sale of the Securities, or to taxation as doing business in any jurisdiction where
it is not now subject.

 

c.             Reporting
Status.  Until the later of
(i) the date as of which the Investors (as that term is defined in the
Registration Rights Agreement) may sell all of the Conversion Shares and the
Warrant Shares without restriction pursuant to Rule 144(k) promulgated
under the 1933 Act (or successor thereto), and (ii) the date on which
no Notes or Warrants remain outstanding (the “Reporting Period”), the
Company shall timely file all reports required to be filed with the SEC
pursuant to the 1934 Act, and the Company shall not terminate its status
as an issuer required to file reports under the 1934 Act even if the
1934 Act or the rules and regulations thereunder would otherwise permit
such termination.

 

d.             Use
of Proceeds.  The Company will use
(x) the U.S. dollar equivalent of £15,000,000 of the proceeds from the sale of
the Notes and the Warrants (i) to fund the Company’s acquisitions of
Biosil Limited and Nagor Limited pursuant to the Share Purchase Agreement and
(ii) to pay expenses and commissions related to the sale of the Notes and
the Warrants and (y) the balance of the proceeds for general corporate
purposes including working capital, in each case as more specifically described
and in the amounts indicated in Schedule 4(d).

 

24

 

e.             Financial
Information.  The Company agrees to
deliver the following to each Investor (as that term is defined in the
Registration Rights Agreement) during the Reporting Period: (i) within one
(1) day after the filing thereof with the SEC, a copy of its annual
reports on Form 10-KSB, its quarterly reports on Form 10-QSB, any
current reports on Form 8-K and any registration statements (other than on
Form S-8) or amendments or supplements filed pursuant to the
1933 Act, unless the foregoing are filed with the SEC through the SEC’s
Electronic Data Gathering Analysis and Retrieval system (“EDGAR”) and
are immediately available to the public through EDGAR; (ii) on the same
day as the release thereof, facsimile copies of all press releases issued by
the Company or any of its Subsidiaries, except to the extent such release is
available through Bloomberg Financial Markets (or any successor thereto)
contemporaneously with such issuance; and (iii) copies of any notices and
other information made available or given to the stockholders of the Company
generally, contemporaneously with the making available or giving thereof to the
stockholders, unless the foregoing are filed with the SEC through EDGAR and are
immediately available to the public through EDGAR on the same date given or
made available to the stockholders.

 

f.             Reservation
of Shares.  The Company shall take
all action necessary to at all times have authorized, and reserved for the
purpose of issuance, no less than 200% of the number of shares of Common Stock
needed to provide for issuance of the Conversion Shares upon conversion of all
outstanding Notes (without regard to any limitations on conversion thereof) and
no less than 150% of the aggregate number of shares of Common Stock issuable
upon exercise of all outstanding Warrants (without regard to any limitations on
exercise thereof).

 

g.             Listing.  The Company shall use its reasonable best
efforts to take all actions necessary to remain eligible for quotation of its
securities on NASDAQ’s OTC Bulletin Board and to cause all of the Registrable
Securities (as defined in the Registration Rights Agreement) covered by a
Registration Statement (as defined in the Registration Rights Agreement) to be
quoted thereon, unless listed on the AMEX or another nationally recognized
stock exchange or NASDAQ.  The Company
shall use its reasonable best efforts to secure the listing of the Common Stock
on the AMEX as promptly as practicable after the date of this Agreement.  The Company shall promptly secure the listing
of all of the Registrable Securities upon each national securities exchange and
automated quotation system, if any, upon which shares of Common Stock are then
listed (subject to official notice of issuance) and shall maintain, so long as
any other shares of Common Stock shall be so listed, such listing of all
Registrable Securities from time to time issuable under the terms of the
Transaction Documents.  Neither the
Company nor any of its Subsidiaries shall take any action which would be
reasonably expected to result in the suspension or termination of trading of
the Common Stock on the Principal Market. 
The Company shall pay all fees and expenses in connection with
satisfying its obligations under this Section 4(g).

 

h.             Expenses.  Subject to Section 10(k) below, at the
Closing, the Company shall pay or reimburse the fees, costs and expenses
(including all legal fees and expenses) of each Purchaser incurred in
connection with the due diligence, 

 

25

 

negotiating and preparing the
Transaction Documents and consummating the transactions contemplated hereby and
thereby.  The amount payable to each
Purchaser pursuant to the preceding sentence at the Closing shall be withheld
as an off-set by such Purchaser from its Purchase Price to be paid by it at the
Closing.

 

i.              Disclosure
of Transactions and Other Material Information.  Contemporaneous with or prior to the earlier
of (i) the Company’s first public announcement of the transactions
contemplated hereby and (ii) 8:00 a.m. (New York City time) on
the second (2nd) Business Day following the Closing Date, the Company shall
file a Form 8-K with the SEC describing the terms of the transactions
contemplated by the Transaction Documents and including as exhibits to such
Form 8-K this Agreement (including the schedules hereto), the Form of
Note, the Registration Rights Agreement, the Form of Warrant, the Collateral Agreement,
Subordination Agreement and the Subordinated Notes, in the form required by the
1934 Act (the “Announcing Form 8-K”).  The Company shall not make any public
announcement regarding the transactions contemplated hereby prior to the
Closing.  The Company represents and
warrants that, from and after the filing of the Announcing Form 8-K with
the SEC, no Purchaser shall be in possession of any material nonpublic
information received from the Company, any of its Subsidiaries or any of their
respective officers, directors, employees or agents.  The Company shall not, and shall cause each
of its Subsidiaries and its and each of their respective officers, directors,
employees and agents not to, provide any Purchaser with any material nonpublic
information regarding the Company or any of its Subsidiaries from and after the
filing of the Announcing Form 8-K with the SEC without the express prior
written consent of such Purchaser.  In
the event of a breach of the foregoing covenant, which breach continues for
five (5) Business Days, by the Company, any of its Subsidiaries, or any of its or
their respective officers, directors, employees and agents, in addition to any
other remedy provided herein or in the Transaction Documents, a Purchaser shall
have the right to make a public disclosure, in the form of a press release,
public advertisement or otherwise, of such material nonpublic information
without the prior approval by the Company, its Subsidiaries, or any of its or
their respective officers, directors, employees or agents.  No Purchaser shall have any liability to the
Company, its Subsidiaries, or any of its or their respective officers,
directors, employees, stockholders or agents for any such disclosure.  Subject to the foregoing, neither the Company
nor any Purchaser shall issue any press releases or any other public statements
with respect to the transactions contemplated hereby or disclosing the name of
any Purchaser; provided, however, that the Company shall be entitled, without
the prior approval of any Purchaser, to make any press release or other public
disclosure with respect to such transactions (i) in substantial conformity
with the Announcing Form 8-K and contemporaneously therewith or subsequent
thereto and (ii) as is required by applicable Requirements of Law
(provided that each Purchaser shall be consulted by the Company in connection
with any such press release or other public disclosure prior to its release and
shall be provided with a copy thereof). 
From and after the date hereof, the Company shall not amend, modify,
supplement, restate or otherwise waive any rights under the Share Purchase
Agreement without the prior consent of the holders of a majority of the
aggregate principal amount of the Notes then outstanding (or if prior to the
Closing Date, without the prior consent of the Purchasers).

 

26

 

j.              Transactions
With Affiliates.  From the date of
this Agreement until the first date following the Closing Date on which no
Notes or Warrants are outstanding, the Company shall not, and shall cause each
of its Subsidiaries not to, without the prior written consent of the holders of
a majority of the aggregate principal amount of the outstanding Notes, enter
into, amend, modify or supplement any transaction, contract, agreement,
instrument, commitment, understanding or other arrangement with any of its or
any Subsidiary’s officers, directors, Persons who were officers or directors at
any time during the previous two years, stockholders, or Affiliates of the
Company or any of its Subsidiaries, or with any individual related by blood,
marriage or adoption to any such individual or with any entity in which any
such entity or individual owns a beneficial interest (each a “Related Party”),
except for customary employment arrangements and benefit programs on reasonable
terms.  “Affiliate” for purposes
hereof means any Person who is an “affiliate” as defined in Rule 12b-2 of the
General Rules and Regulations under the 1934 Act.

 

k.             Stockholder
Approval.  If at any time following
the Closing Date (the “Stockholder Approval Triggering Date”), the sum
of (i) the number of Conversion Shares, Warrant Shares and Interest Shares
(as defined in the Notes) previously issued by the Company, plus (ii) the
remaining number of Conversion Shares into which the outstanding Notes are then
convertible (without regard to any limitations on conversion), plus
(iii) the remaining number of Warrant Shares into which the outstanding
Warrants are then exercisable (without regard to any limitations on exercise),
is greater than fifty percent (50%) of the Exchange Cap (as defined in the
Notes), then upon the request of the holders of at least a majority of the
Notes then outstanding, the Company shall solicit approval by the Company’s
stockholders of the Company’s issuance of all of the Conversion Shares and
Warrant Shares, as set forth in this Agreement, the Notes and the Warrants in
accordance with the rules and regulations applicable to companies with
securities listed on the Principal Market (such approval being referred to
herein as “Stockholder Approval”), with the recommendation of the Board
of Directors that such proposal be approved. 
The Company shall file with the SEC a preliminary version of the proxy
statement to be provided by the Company to its stockholders in connection with
soliciting Stockholder Approval as soon as possible, but in no event later than
twenty (20) days after the Stockholder Approval Triggering Date (the “Proxy
Statement Filing Due Date”), and each Purchaser, as well as one counsel
selected by the holders of a majority of the aggregate principal amount of the
Notes then outstanding, shall be entitled to review, prior to filing with the
SEC, such proxy statement, which shall not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.  The Company shall hold a meeting of its
stockholders as soon as possible but in no event later than sixty (60) days
after the Stockholder Approval Triggering Date (the “Stockholder Meeting
Deadline”).  If the Company fails to
file the proxy statement referred to above by the Proxy Statement Filing Due
Date or fails to hold a meeting of its stockholders by the Stockholder Meeting
Deadline, then, as partial relief (which remedy shall not be exclusive of any
other remedies available at law or in equity), the Company shall pay to each
holder of Notes an amount in cash equal to the product of (i) the

 

27

 

aggregate principal amount of
all Notes held by such holder, multiplied by (ii).02 multiplied by
(iii) the quotient of (x) the sum of (A) the number of days
after the Proxy Statement Filing Due Date and prior to the date that the proxy
statement referred to above is filed with the SEC and (B) the number of
days after the Stockholder Meeting Deadline and prior to the date that a
meeting of the Company’s stockholders is held, divided by (y) 30.  The Company shall make the payments referred
to in the immediately preceding sentence within five (5) days of the earlier of
(I) the filing of the proxy statement or the holding of the meeting of the
Company’s stockholders, the failure of which resulted in the requirement to
make such payments, and (II) the last day of each 30-day period beginning on
the Proxy Statement Filing Due date or the Stockholder Meeting Deadline, as the
case may be.  In the event the Company
fails to make such payments in a timely manner, such payments shall bear
interest at the rate of 2.0% per month (pro rated for partial months) until
paid in full.

 

l.              Pledge
of Securities.  The Company
acknowledges and agrees that the Securities may be pledged by an Investor (as
defined in the Registration Rights Agreement) in connection with a bona fide
margin agreement or other loan secured by the Securities.  To the extent provided by applicable law, the
pledge of Securities shall not be deemed to be a transfer, sale or assignment
of the Securities hereunder, and no Investor effecting any such pledge of
Securities shall be required to provide the Company with any notice thereof or
otherwise make any delivery to the Company pursuant to this Agreement or any
other Transaction Document, including Section 2(f) of this Agreement;
provided that an Investor and its pledgee shall be required to comply with the
provisions of Section 2(f) in order to effect a sale, transfer or
assignment of Securities to such pledgee. 
The Company hereby agrees to execute and deliver such documentation as a
pledgee of the Securities may reasonably request in connection with a pledge of
the Securities to such pledgee by an Investor.

 

m.           Independent
Director.  Within twenty (20) days
after the Closing Date, the Company shall elect one individual who qualifies as
an “independent director” (as such term is defined in Section 121(A) of the
AMEX Company Guide) to the Board of Directors.

 

n.             No
Inconsistent Agreement or Actions. 
From the date of this Agreement until the first date following the
Closing Date on which no Notes are outstanding, the Company and its Subsidiaries
shall not enter into any contract, agreement or understanding which limit or
restrict the Company’s or any of its Subsidiaries’ ability to perform under, or
take any other voluntary action to avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed by it under, this
Agreement or any of the other Transaction Documents.

 

o.             Compliance
with Notes Covenants.  From the date
of this Agreement until the first date following the Closing Date on which no
Notes are outstanding, the Company shall comply with and not violate or breach,
and shall cause the Subsidiaries, as applicable, to comply with and not violate
or breach, the covenants

 

28

 

and agreements set forth in
Section 11 of the form of Note attached as Exhibit A hereto,
the provisions of such Section 11 being incorporated herein and made a
part hereof.

 

5.             Transfer
Agent Instructions.

 

The
Company shall issue irrevocable instructions to its transfer agent in the form
attached hereto as Exhibit J (the “Irrevocable Transfer Agent
Instructions”), and any subsequent transfer agent, to issue certificates or
credit shares to the applicable balance accounts at the Depository Trust
Company (“DTC”), registered in the name of each Purchaser or its
respective nominee(s), for the Conversion Shares and the Warrant Shares in such
amounts as specified from time to time by each Purchaser to the Company upon
conversion of the Notes or exercise of the Warrants.  Prior to registration of the Conversion
Shares and the Warrant Shares under the 1933 Act, all such certificates shall
bear the restrictive legend specified in Section 2(g).  The Company warrants that no instruction
other than the Irrevocable Transfer Agent Instructions referred to in this
Section 5 and stop transfer instructions to give effect to
Section 2(f) and Section 2(g) (in the case of the Conversion Shares and
the Warrant Shares, prior to registration of the Conversion Shares and the
Warrant Shares under the 1933 Act) will be given by the Company to its
transfer agent and that the Securities shall otherwise be freely transferable
on the books and records of the Company as and to the extent provided in this
Agreement and the Registration Rights Agreement.  If a Purchaser provides the Company with an
opinion of counsel, in a generally acceptable form, to the effect that a public
sale, assignment or transfer of the Securities may be made without registration
under the 1933 Act or the Purchaser provides the Company with reasonable
assurance that the Securities can be sold pursuant to Rule 144 without any
restriction as to the number of securities acquired as of a particular date
that can then be immediately sold, the Company shall permit the transfer and,
in the case of the Conversion Shares and the Warrant Shares, promptly instruct
its transfer agent to issue one or more certificates or credit shares to the
applicable balance accounts at DTC in such name and in such denominations as
specified by such Purchaser and without any restrictive legend.  The Company acknowledges that a breach by it
of its obligations hereunder will cause irreparable harm to the Purchasers by
vitiating the intent and purpose of the transactions contemplated hereby.  Accordingly, the Company acknowledges that
the remedy at law for a breach of its obligations under this Section 5
will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section 5, that the Purchasers shall
be entitled, in addition to all other available remedies, to an order and/or
injunction restraining any breach and requiring immediate issuance and
transfer, without the necessity of showing economic loss and without any bond
or other security being required.

 

6.             Conditions
to the Company’s Obligation to Sell.

 

a.             Closing
Date.  The obligation of the Company
to issue and sell the Notes and the Warrants to each Purchaser at the Closing
is subject to the satisfaction, at or before the Closing Date, of each of the
following conditions, provided that these conditions are for the Company’s sole
benefit and may be waived by the

 

29

 

Company at any time in its sole
discretion by providing each Purchaser with prior written notice thereof:

 

(i)            Such Purchaser shall have executed each
of the Transaction Documents to which it is a party and delivered the same to
the Company.

 

(ii)           Such Purchaser shall have delivered to
the Company the Purchase Price (less the amount withheld pursuant to Section 4(h))
for the Notes and the Warrants being purchased by such Purchaser at the Closing
by wire transfer of immediately available funds pursuant to the wire
instructions provided by the Company.

 

(iii)          The representations and warranties of
such Purchaser shall be true and correct as of the date when made and as of the
Closing Date as though made at that time (except for representations and
warranties that speak as of a specific date, which shall be true and correct as
of such date), and such Purchaser shall have performed, satisfied and complied
with the covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by such Purchaser at or
prior to the Closing Date.

 

7.             Conditions
to Each Purchaser’s Obligation to Purchase.

 

a.             Closing
Date.  The obligation of each
Purchaser hereunder to purchase the Notes and the Warrants from the Company at
the Closing is subject to the satisfaction, at or before the Closing Date, of
each of the following conditions, provided that these conditions are for each
Purchaser’s sole benefit and may be waived only by such Purchaser at any time
in its sole discretion by providing the Company with prior written notice
thereof:

 

(i)            Each of the Company and its Subsidiaries
shall have executed each of the Transaction Documents to which it is a party
and delivered the same to such Purchaser.

 

(ii)           The representations and warranties of the
Company shall be true and correct as of the date when made and as of the
Closing Date as though made at that time (except for representations and
warranties that speak as of a specific date, which shall be true and correct as
of such date), and the Company and its Subsidiaries shall have performed,
satisfied and complied with the covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the
Company or any of its Subsidiaries at or prior to the Closing Date.  Such Purchaser shall have received a certificate,
executed by the Chief Executive Officer of the Company, dated as of the Closing
Date, to the foregoing effect and as to such other matters as may be reasonably
requested by such Purchaser, including an update as of the Closing Date of the
representations contained in Section 3(c) above.

 

(iii)          Such Purchaser shall have received
(A) the opinions of Clifford Chance US LLP, Sklar Warren Conway &
Williams LLP and Theodore R.

 

30

 

Maloney, dated as of the
Closing Date, which opinions will address, among other things, laws of the
States of Nevada, New York and Delaware applicable to the transactions
contemplated hereby and the security interests provided pursuant to the
Collateral Agreement, in form, scope and substance reasonably satisfactory to
such Purchaser and in substantially the form of Exhibits K-1, K-2 and
K-3, respectively attached hereto.

 

(iv)          The Company shall have executed and
delivered to such Purchaser the Note Certificates and the Warrants (in such
denominations as such Purchaser shall request) for the Notes and the Warrants
being purchased by such Purchaser at the Closing.

 

(v)           The Board of Directors shall have adopted
resolutions consistent with Section 3(b) above and in a form reasonably
acceptable to such Purchaser (the “Resolutions”).

 

(vi)          As of the Closing Date, the Company shall
have reserved out of its authorized and unissued Common Stock, solely for the
purpose of effecting the conversion of the Notes and the exercise of the
Warrants, at least 29,166,667 shares of Common Stock (such number to be
adjusted for any stock splits, stock dividends, stock combinations or other
similar transactions involving the Common Stock that are effective at any time
after the date of this Agreement).

 

(vii)         The Irrevocable Transfer Agent Instructions
shall have been delivered to and acknowledged in writing by the Company’s
transfer agent, and the Company shall have delivered a copy thereof to such
Purchaser.

 

(viii)        The Company shall have delivered to such
Purchaser certificates of good standing for the Company and each Guarantor, in
each case dated as of a date within five (5) days of the Closing Date.

 

(ix)          The Company shall have delivered to such
Purchaser a secretary’s certificate, dated as of the Closing Date, certifying
(A) that the attached Resolutions are true, complete and correct and
remain unamended and in full force and effect, (B) as to the Certificate
of Incorporation of the Company, certified as of a date within five (5)
days of the Closing Date, by the Secretary of State of the State of Delaware,
(C) that the Bylaws of the Company are true, complete and correct and
remain unamended and in full force and effect and (D) as to the incumbency and
specimen signature of each officer of the Company executing this Agreement, the
other Transaction Documents and any other document delivered in connection
herewith on behalf of the Company.

 

(x)           Each Guarantor shall have delivered to
such Purchaser a secretary’ s certificate, dated as of the Closing Date,
certifying (A) that the attached resolutions of the board of directors of such
Guarantor approving each Transaction Document to which such Guarantor is a
party and the transactions contemplated thereby are true, complete and correct
and remain unamended and in full force and effect, (B) that the attached
organizational documents and bylaws of such

 

31

 

Guarantor are true, complete
and correct and remain unamended and in full force and effect and (C) as to the
incumbency and specimen signature of each officer of such Guarantor executing
each Transaction Documents to which it is a party and any other document
delivered in connection herewith on behalf of such Guarantor.

 

(xi)          The Company shall have made all filings
under all applicable federal and state securities laws necessary to consummate
the issuance of the Securities pursuant to this Agreement in compliance with
such laws to the extent such filings must be made on or prior to the Closing
Date.

 

(xii)         The Company shall have delivered to such
Purchaser a letter from the Company’s transfer agent certifying the number of
shares of Common Stock outstanding as of a date within five (5) days of
the Closing Date.

 

(xiii)        The Company and each Guarantor shall have
delivered and pledged to such Purchaser any and all Instruments, Negotiable
Documents, Chattel Paper (each of the foregoing terms, as defined in the
Collateral Agreement) and certificated securities (accompanied by stock powers
executed in blank), duly endorsed and/or accompanied by such instruments of
assignment and transfer executed by the Company in such form and substance as
such Purchaser may request.

 

(xiv)        The Company and its Subsidiaries shall
have given, executed, delivered, filed and/or recorded any financing
statements, notices, instruments, documents, agreements and other papers that
may be necessary or desirable (in the reasonable judgment of such Purchaser) to
create, preserve, perfect or validate the security interest granted to such
Purchaser pursuant to the Collateral Agreement and to enable such Purchaser to
exercise and enforce its rights with respect to such security interest.

 

(xv)         The Company shall not have made any
public announcement regarding the transactions contemplated by the Agreement
prior to the Closing.

 

(xvi)        The Company and its Subsidiaries shall
have delivered to such Purchaser such other standard and customary documents
relating to the transactions contemplated by this Agreement as such Purchaser
or its counsel may reasonably request.

 

(xvii)       The closing of the transactions
contemplated by the Share Purchase Agreement shall have occurred or shall occur
simultaneously with the Closing in accordance with the terms of the Share
Purchase Agreement.

 

(xviii)      The Company shall have delivered to such
Purchaser the Subordination Agreement, duly executed by the Company, Integrated
and Sirius.

 

32

 

(xix)        The Company shall have delivered to such
Purchaser copies of the Subordinated Integrated Note and the Subordinated
Sirius Note, each duly executed by the Company.

 

8.             Indemnification.

 

a.             In
consideration of each Purchaser’s execution and delivery of the Transaction
Documents and acquiring the Securities thereunder and in addition to all of the
Company’s other obligations under the Transaction Documents, the Company shall
defend, protect, indemnify and hold harmless each Purchaser and each other
holder of the Securities and all of their stockholders, partners, officers,
directors, members, managers, employees and direct or indirect investors and
any of the foregoing Persons’ agents or other representatives (including those
retained in connection with the transactions contemplated by this Agreement)
(collectively, the “Indemnitees”) from and against any and all actions,
causes of action, suits, claims, losses, costs, diminution in value, penalties,
fees, liabilities and damages, and expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees
and disbursements (the “Indemnified Liabilities”), incurred by any
Indemnitees as a result of, or arising out of, or relating to (a) any
misrepresentation or breach of any representation or warranty made by the
Company in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in the Transaction Documents
or any other certificate, instrument or document contemplated hereby or thereby
or (c) any cause of action, suit or claim brought by, or made against,
such Indemnitees and arising out of or resulting from the execution, delivery,
performance or enforcement of the Transaction Documents in accordance with the
terms thereof or any other certificate, instrument or document contemplated
hereby or thereby in accordance with the terms thereof.  To the extent that the foregoing undertaking
by the Company may be unenforceable for any reason, the Company shall make the
maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities that is permissible under applicable law.

 

b.             Promptly
after receipt by an Indemnitee under this Section 8 of notice of the
commencement of any Claim (including any governmental action or proceeding)
against such Indemnitee in respect of which indemnity may be sought from the
Company under this Section 8, such Indemnitee shall deliver to the Company a
written notice of the commencement thereof, and the Company shall have the
right to participate in, and, to the extent the Company so desires, to assume
control of the defense thereof with counsel mutually satisfactory to the
Company and the Indemnitee.  In any such
proceeding, any Indemnitee may retain its own counsel, but, except as provided
in the following sentence, the fees and expenses of that counsel will be at the
expense of that Indemnitee, unless (i) the Company and the Indemnitee shall
have mutually agreed to the retention of that counsel, (ii) the Company does
not assume the defense of such proceeding in a timely manner or (iii) in the
reasonable opinion of counsel retained by the Company, the representation by
such counsel for the Indemnitee and the Company would be inappropriate due to
actual or potential differing interests between such Indemnitee

 

33

 

and any other party represented
by such counsel in such proceeding.  The
Company shall pay reasonable fees for up to one separate legal counsel for the
Purchasers, and such legal counsel shall be selected by the Purchasers that
purchased a majority of the aggregate principal amount of the Notes on the
Closing Date.  The Indemnitee shall
cooperate reasonably with the Company in connection with any negotiation or
defense of any such action or Claim by the Company and shall furnish to the
Company all information reasonably available to the Indemnitee which relates to
such action or Claim.  The Company shall
keep the Indemnitee fully apprised at all times as to the status of the defense
or any settlement negotiations with respect thereto.  The Company shall not be liable for any
settlement of any action, claim or proceeding effected without its prior
written consent, provided, however, that the Company shall not unreasonably
withhold, delay or condition its consent. 
The Company shall not, without the prior written consent of the
Indemnitee, consent to entry of any judgment or enter into any settlement or
other compromise with respect to any pending or threatened action or claim in
respect of which indemnification or contribution may be or has been sought
hereunder (whether or not the Indemnitee is an actual or potential party to
such action or claim) which does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such Indemnitee of a release from
all liability in respect to such Claim or litigation.  Following indemnification as provided for
hereunder, the Company shall be subrogated to all rights of the Indemnitee with
respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made.  The
failure to deliver written notice to the Company within a reasonable time of
the commencement of any such action shall not relieve the Company of any
liability to the Indemnitee under this Section 8, except to the extent that the
Company is prejudiced in its ability to defend such action.

 

c.             The
indemnification required by this Section 8 shall be made by periodic payments
of the amount thereof during the course of the investigation or defense, as and
when bills are received or Indemnified Liabilities are incurred.

 

d.             The
indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Indemnitee against the Company or others, and
(ii) any liabilities the Company may be subject to pursuant to the law.

 

9.             Appointment
of Collateral Agent.

 

a.             Appointment.  Each Purchaser hereby irrevocably designates
and appoints Silver Oak Capital, L.L.C. (the “Collateral Agent”) as the
agent of such Purchaser under this Agreement and the other Transaction
Documents, and each such Purchaser irrevocably authorizes the Collateral Agent,
in such capacity, to take such action on its behalf under the provisions of this
Agreement and the other Transaction Documents and to exercise such powers and
perform such duties as are expressly delegated to the Collateral Agent by the
terms of this Agreement and the other Transaction Documents, together with such
other powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Collateral Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Purchaser, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this

 

34

 

Agreement or any other
Transaction Document or otherwise exist against the Collateral Agent.

 

b.             Delegation
of Duties.  The Collateral Agent may
execute any of its duties under this Agreement and the other Transaction
Documents by or through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties.  The Collateral Agent shall not be responsible
for the negligence or misconduct of any agents or attorneys in-fact selected by
it with reasonable care.

 

c.             Exculpatory
Provisions.  Neither the Collateral
Agent nor any of its respective officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Transaction Document (except to the
extent that any of the foregoing are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from its or such
Person’s own gross negligence or willful misconduct) or (ii) responsible
in any manner to any of the Purchasers for any recitals, statements,
representations or warranties made by the Company, the Guarantors or any
officer thereof contained in this Agreement or any other Transaction Document
or in any certificate, report, statement or other document referred to or
provided for in, or received by the Collateral Agent under or in connection
with, this Agreement or any other Transaction Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Transaction Document or for any failure of the Company
or any Guarantors that is a party thereto to perform its obligations hereunder
or thereunder.  The Collateral Agent
shall not be under any obligation to any Purchaser to ascertain or to inquire
as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Transaction Document, or to inspect
the properties, books or records of the Company or the Guarantors.

 

d.             Reliance
by Agents.  The Collateral Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
instrument, writing, resolution, notice, consent, certificate, affidavit,
letter, telecopy, telex or teletype message, statement, order or other document
or conversation believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including counsel to the Company), independent
accountants and other experts selected by the Collateral Agent.  The Collateral Agent (as defined in the
Collateral Agreement) may deem and treat the payee of any Note as the owner
thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Collateral Agent.

 

e.             Notice
of Default.  The Collateral Agent
shall not be deemed to have knowledge or notice of the occurrence of any Event
of Default (as defined in the Notes) unless the Collateral Agent has received
notice from a Purchaser or the Company referring to this Agreement, describing
such Event of Default and stating that such notice is a “notice of
default.”  In the event that the
Collateral Agent receives

 

35

 

such a notice, the Collateral
Agent shall give notice thereof to the Purchasers.  The Collateral Agent shall take such action
with respect to such Event of Default as shall be reasonably directed by the
Purchasers holding a majority of the aggregate principal amount of the Notes on
the date of the Event of Default; provided that unless and until the
Collateral Agent shall have received such directions, the Collateral Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default (as defined in the Notes) or Event of
Default as it shall deem advisable in the best interests of the
Purchasers.  For clarification purposes,
this provision constitutes a separate right granted to each Purchaser and is
not intended for the Company to treat the Purchasers as a class and shall not
be construed in any way as the Purchasers acting in concert or otherwise as a
group with respect to the purchase, disposition or voting of securities or
otherwise.

 

f.             Non-Reliance
on Agents and Other Purchasers.  Each
Purchaser expressly acknowledges that neither the Collateral Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates
have made any representations or warranties to it and that no act by the
Collateral Agent hereafter taken, including any review of the affairs of the
Company, the Guarantors or any of their respective affiliates, shall be deemed
to constitute any representation or warranty by the Collateral Agent to any
Purchaser.  Each Purchaser represents to
the Collateral Agent that it has, independently and without reliance upon the
Collateral Agent or any other Purchaser, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and credit worthiness of the Company and the Guarantors and their
respective affiliates and made its own decision to purchase the Notes hereunder
and enter into this Agreement.  Each
Purchaser also represents that it will, independently and without reliance upon
the Collateral Agent or any other Purchaser, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Transaction Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and credit worthiness of
the Company, the Guarantors and their respective affiliates.  Except for notices, reports and other
documents expressly required to be furnished to the Purchasers by the
Collateral Agent hereunder, the Collateral Agent shall not have any duty or responsibility
to provide any Purchaser with any credit or other information concerning the
business, operations, property, condition (financial or otherwise), prospects
or credit worthiness of the Company, the Guarantors or any of their respective
affiliates that may come into the possession of the Collateral Agent or any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates.

 

g.             Indemnification.  Each Purchaser agrees to indemnify the
Collateral Agent in its capacity as such (to the extent not reimbursed by the
Company and without limiting the obligation of the Company to do so), ratably
according to its respective Allocation Percentage (as defined in the Notes) in
effect on the date on which indemnification is sought under this Section (or,
if indemnification is sought after the date upon which the Commitments shall
have terminated and the Loans shall have been

 

36

 

paid in full, ratably in
accordance with such Allocation Percentage immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of the
Notes) be imposed on, incurred by or asserted against the Collateral Agent in
any way relating to or arising out of, this Agreement, any of the other
Transaction Documents or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by the Collateral Agent under or in connection with any of the
foregoing; provided that no Purchaser shall be liable for the payment of
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements that are found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from the Collateral Agent’s gross negligence or willful misconduct.  The agreements in this Section shall
survive the termination of this Agreement and the conversion, redemption or
repayment of the Notes and all other amounts payable hereunder.

 

h.             Agent
in Its Individual Capacity.  The
Collateral Agent and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Company or the Guarantors as
though the Collateral Agent was not the Collateral Agent.  With respect to any Notes held by it, the
Collateral Agent shall have the same rights and powers under this Agreement and
the other Transaction Documents as any Purchaser and may exercise the same as
though it were not an Agent, and the terms “Purchaser” and “Purchasers” shall
include the Collateral Agent in its individual capacity.

 

i.              Successor
Collateral Agent.  The Collateral
Agent may resign as Collateral Agent upon 10 days’ notice to the
Purchasers and the Company.  If the
Collateral Agent shall resign as Collateral Agent under this Agreement and the
other Transaction Documents, then the Purchasers holding a majority of the
aggregate principal amount of the Notes on the date of such resignation shall
appoint from among the Purchasers (or at the option of the Purchasers holding a
majority of the aggregate principal amount of the Notes, appoint a third party
a Successor Collateral Agent acceptable to such Purchasers) a successor agent
for the Purchasers, whereupon such successor agent shall succeed to the rights,
powers and duties of the Collateral Agent, and the term “Collateral Agent”
shall mean such successor agent effective upon such appointment and approval,
and the former Collateral Agent’s rights, powers and duties as Collateral Agent
shall be terminated, without any other or further act or deed on the part of
such former Collateral Agent or any of the parties to this Agreement or any
holders of the Notes.  If no successor
agent has accepted appointment as Collateral Agent by the date that is 10 days
following a retiring Collateral Agent’s notice of resignation, the retiring
Collateral Agent’s resignation shall nevertheless thereupon become effective
and the Purchasers holding a majority of the aggregate principal amount of the
Notes on the date of such resignation shall assume and perform all of the
duties of the Collateral Agent hereunder until such time, if any, as the
Purchasers holding a majority of the aggregate principal amount of the Notes on
the date of such resignation appoint a successor agent as provided for
above.  After any retiring Collateral
Agent’s resignation as Collateral Agent,

 

37

 

the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Collateral Agent under this Agreement and the other
Transaction Documents.

 

j.              Agents
Generally.  Except as expressly set
forth herein, the Collateral Agent shall not have any duties or
responsibilities hereunder in its capacity as such.

 

10.          Governing
Law; Miscellaneous.

 

a.             Governing
Law; Jurisdiction; Jury Trial.  All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of
New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of New York. 
Each party hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in the City of New York, borough of
Manhattan, for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner
permitted by law.  The Parties
acknowledge that each of the Purchasers has executed each of the Transaction
Documents to be executed by it in the State of New York and will have made
the payment of the Purchase Price from its bank account located in the State of
New York.  EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

b.             Counterparts.  This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to each other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original,
not a facsimile signature.

 

c.             Headings.  The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

 

38

 

d.             Severability.  If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction.

 

e.             Entire
Agreement; Amendments.  This
Agreement supersedes all other prior oral or written agreements between the
parties hereto with respect to the matters discussed herein, and this Agreement
and the instruments referenced herein contain the entire understanding of the
parties with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor any Purchaser
makes any representation, warranty, covenant or undertaking with respect to
such matters.  No provision of this
Agreement may be amended other than by an instrument in writing signed by the
Company and the Purchasers that purchased at least a majority of the aggregate
principal amount of the Notes as of the date of any such proposed amendment, or
if prior to the Closing, by the Purchasers listed on the Schedule of
Purchasers as being obligated to purchase at least a majority of the
aggregate principal amount of the Notes. 
Any such amendment shall bind all holders of the Notes and the
Warrants.  No such amendment shall be
effective to the extent that it applies to less than all of the holders of the
Notes or Warrants then outstanding.  No
consideration shall be offered or paid to any Person to amend or consent to a
waiver or modification of any provision of any of the Transaction Documents
unless the same consideration also is offered to all of the parties to the
Transaction Documents or holders of Notes, as the case may be.

 

f.             Notices.  Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Business Day
after deposit with a nationally recognized overnight delivery service, in each
case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such
communications shall be:

 

If to the Company:

 

MediCor Ltd.

4560 South Decatur Blvd., Suite 300

Las Vegas, Nevada  89103-5253

Facsimile:              (702) 932-4561

Attention:              General Counsel/Secretary

 

39

 

With copy to:

 

Clifford Chance US LLP

31 West 52nd Street

New York, New York 10019

Facsimile:              (212) 878-8000

Attention:              Alejandro E. Camacho, Esq.

 

If to the Collateral Agent:

 

Silver Oak Capital, L.L.C. 

245 Park Avenue

New York, NY 10167

Facsimile:              (212) 867-6449

Attention:              Gary I. Wolf

 

With copy to:

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas 

New York, New York 10019

Facsimile:              (212) 757-3990

Attention:              Douglas A. Cifu, Esq.

 

If to the Transfer Agent:

 

U.S. Stock Transfer Corp.

1745 Gardena Ave.

Glendale, CA 91204-2991

Facsimile:              (818) 502-0674

Attention:              Richard Tilton

 

If
to a Purchaser, to it at the address and facsimile number set forth on the Schedule of
Purchasers, with copies to such Purchaser’s representatives as set forth on
the Schedule of Purchasers, or, in the case of a Purchaser or any
other party named above, at such other address and/or facsimile number and/or
to the attention of such other Person as the recipient party has specified by
written notice given to each other party in accordance with this Section 10(f)
five (5) days prior to the effectiveness of such change.  Written confirmation of receipt
(A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the
sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided
by a nationally recognized overnight delivery service shall be rebuttable
evidence of personal service, receipt by facsimile or deposit with a nationally
recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

 

40

 

g.             Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the Notes.  The Company shall not assign this Agreement
or any rights or obligations hereunder without the prior written consent of the
holders of at least a majority of the aggregate principal of the Notes then
outstanding, including by merger or consolidation, except pursuant to a Change
of Control (as defined in Section 4(b) of the Notes) with respect to which
the Company is in compliance with Section 4(l) of this Agreement,
Section 4 of the Notes and Section 9 of the Warrants.  A Purchaser may assign some or all of its
rights hereunder without the consent of the Company; provided, however, that
any such assignment shall not release such Purchaser from its obligations
hereunder unless such obligations are assumed by such assignee and the Company
has consented to such assignment and assumption, which consent shall not be
unreasonably withheld.  Notwithstanding
anything to the contrary contained in the Transaction Documents, the Purchasers
shall be entitled to pledge the Securities in connection with a bona fide
margin account or other loan or financing arrangement secured by the
Securities.

 

h.             No
Third-Party Beneficiaries.  This
Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns and, to the extent provided in
Section 8 hereof, each Indemnitee, and is not for the benefit of, nor may
any provision hereof be enforced by, any other Person.

 

i.              Survival.  Unless this Agreement is terminated under
Section 10(k), the representations and warranties of the Company and the
Purchasers contained in Sections 2 and 3, the agreements and covenants set
forth in Sections 4, 5 and 10, and the indemnification provisions set
forth in Section 8, shall survive the Closing.  Each Purchaser shall be responsible only for
its own representations, warranties, agreements and covenants hereunder.

 

j.              Further
Assurances.  Each party shall do and
perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

 

k.             Termination.  In the event that the Closing shall not have
occurred with respect to a Purchaser on or before the fifth (5th) Business Day
following the date of this Agreement due to the Company’s or such Purchaser’s
failure to satisfy the conditions set forth in Sections 6(a) and 7(a)
above (and the non-breaching party’s failure to waive such unsatisfied
condition(s)), the non-breaching party shall have the option to terminate this
Agreement with respect to such breaching party at the close of business on such
date without liability of any party to any other party; provided, however, that
if this Agreement is terminated pursuant to this Section 10(k), the
Company shall be obligated to pay each Purchaser (so long as such Purchaser is
not a breaching party) its fees, costs and expenses (including all legal fees
and expenses) incurred in connection with its due

 

41

 

diligence review of the Company
and the negotiation and preparation of the Transaction Documents.

 

l.              Placement
Agent.  The Company acknowledges that
it has engaged UBS as placement agent in connection with the sale of the Notes
and the related Warrants.  The Company
shall be responsible for the payment of any placement agent’s fees or broker’s
commissions relating to or arising out of the transactions contemplated
hereby.  The Company shall pay, and hold
each Purchaser harmless against, any liability, loss or expense (including
attorneys’ fees and out-of-pocket expenses) arising in connection with any such
claim.  Each Purchaser, with respect to
only itself, represents that it has not engaged a placement agent or broker in
connection with the transactions contemplated hereby.

 

m.           No
Strict Construction.  The language
used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be
applied against any party.

 

n.             Remedies.  Each Purchaser and each holder of the
Securities shall have all rights and remedies set forth in the Transaction
Documents and all rights and remedies that such Purchasers and holders have
been granted at any time under any other agreement or contract and all of the
rights that such Purchasers and holders have under any law.  Any Person having any rights under any
provision of this Agreement shall be entitled to an injunction or injunctions
to prevent breaches of this Agreement and to enforce such rights specifically
(without posting a bond or other security or proving actual damages), to
recover damages by reason of any breach of any provision of this Agreement and
to exercise all other rights granted by law.

 

o.             Payment
Set Aside.  To the extent that the
Company makes a payment or payments to the Purchasers hereunder or pursuant to
the Registration Rights Agreement, the Notes or Warrants or the Purchasers
enforce or exercise their rights hereunder or thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set
aside, recovered from, disgorged by or are required to be refunded, repaid or
otherwise restored to the Company, by a trustee, receiver or any other Person
under any law (including any bankruptcy law, state or federal law, common law
or equitable cause of action), then to the extent of any such restoration the
obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or
such enforcement or setoff had not occurred.

 

p.             Independent
Nature of Purchasers.  The
obligations of each Purchaser hereunder are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in
any way for the performance of the obligations of any other Purchaser
hereunder.  Each Purchaser shall be
responsible only for its own representations, warranties, agreements and
covenants hereunder.  The decision of
each Purchaser to purchase the Securities pursuant to this Agreement has been
made by such Purchaser independently of any other Purchaser and independently
of any information,

 

42

 

materials, statements or
opinions as to the business, affairs, operations, assets, properties,
liabilities, results of operations, condition (financial or otherwise) or
prospects of the Company or any of its Subsidiaries which may have been made or
given by any other Purchaser or by any agent or employee of any other
Purchaser, and no Purchaser or any of its agents or employees shall have any
liability to any other Purchaser (or any other Person or entity) relating to or
arising from any such information, materials, statements or opinions.  Nothing contained herein, and no action taken
by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in
concert or as a group with respect to such obligations or the transactions
contemplated hereby.  Each Purchaser
shall be entitled to independently protect and enforce its rights, including
the rights arising out of this Agreement the Notes or the Warrants, and it
shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose.

 

q.             Interpretative
Matters.  Unless the context otherwise
requires, (a) all references to Sections, Schedules or
Exhibits are to Sections, Schedules or Exhibits contained in or
attached to this Agreement, (b) each accounting term not otherwise defined
in this Agreement has the meaning assigned to it in accordance with GAAP,
(c) words in the singular or plural include the singular and plural and
pronouns stated in either the masculine, the feminine or neuter gender shall
include the masculine, feminine and neuter and (d) the use of the word “including”
in this Agreement shall be by way of example rather than limitation.

 

*  *  * 
*  *  *

 

43

 

IN WITNESS WHEREOF, the Purchasers and the Company have caused
this Securities Purchase Agreement to be duly executed as of the date first
written above. 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  MEDICOR LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theodore R. Maloney

  
	
   

  	
   

  	
  Name:
  Theodore R. Maloney

  
	
   

  	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COLLATERAL
  AGENT:

  
	
   

  	
   

  
	
   

  	
  SILVER OAK CAPITAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael L. Gordon

  
	
   

  	
   

  	
  Name:
  Michael L. Gordon

  
	
   

  	
   

  	
  Title:
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  SILVER OAK CAPITAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael L. Gordon

  
	
   

  	
   

  	
  Name:
  Michael L. Gordon

  
	
   

  	
   

  	
  Title:
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HFTP INVESTMENT L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  Promethean Asset Management L.L.C.

  
	
   

  	
  Its:
   Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Robert J. Brantman

  
	
   

  	
   

  	
  Name:
  Robert J. Brantman

  
	
   

  	
   

  	
  Title:
  Partner & Authorized Signatory

  

 

44

 

	
   

  	
  GAIA OFFSHORE MASTER FUND, 

  
	
   

  	
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Promethean
  Asset Management L.L.C.

  
	
   

  	
  Its:
  

  	
  Investment
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Robert J. Brantman

  
	
   

  	
  Name:
  Robert J. Brantman

  
	
   

  	
  Title:
  Partner & Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  PORTSIDE GROWTH AND 

  
	
   

  	
  OPPORTUNITY FUND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jeffrey Smith

  
	
   

  	
   

  	
  Name:
  Jeffrey Smith

  
	
   

  	
   

  	
  Title:
  Authorized Signatory

  

 

45

 

SCHEDULE OF PURCHASERS

 

	
  Purchaser’s Name

  	
   

  	
  Purchaser Address

  and Facsimile Number

  	
   

  	
  Principal Amount of

  Notes

  	
   

  	
  Investor’s Legal Representative’s 

  Address and Facsimile Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILVER OAK CAPITAL, L.L.C.

  	
   

  	
  c/o
  Angelo, Gordon & Co., L.P.

  245 Park Avenue

  New York, New York 10167

  Attention: Gary I. Wolf

  Facsimile: (212) 867-6449

  	
   

  	
  $

  	
  34,750,00

  	
   

  	
  Paul,
  Weiss, Rifkind, Wharton & Garrison LLP

  1285 Avenue of the Americas

  New York, New York 10019

  Attention: Douglas A. Cifu, Esq.

  Facsimile: (212) 757-3990

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HFTP INVESTMENT L.L.C.

  	
   

  	
  c/o
  Promethean Asset

  Management L.L.C.

  55 Fifth Avenue

  17th Floor

  New York, New York 10003

  Attention: Robert J. Brantman

  Facsimile: (212) 758-9620

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  Katten
  Muchin Rosenman LLP

  525 W. Monroe Street

  Chicago, Illinois 60661-3693

  Attention: Mark D. Wood, Esq.

  Facsimile: (312) 902-1061

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GAIA OFFSHORE MASTER FUND, LTD.

  	
   

  	
  c/o
  Promethean Asset

  Management L.L.C.

  55 Fifth Avenue

  17th Floor

  New York, New York 10003

  Attention: Robert J. Brantman

  Facsimile: (212) 758-9620

  	
   

  	
  $

  	
  4,250,000

  	
   

  	
  Katten
  Muchin Rosenman LLP

  525 W. Monroe Street

  Chicago, Illinois 60661-3693

  Attention:Mark D. Wood, Esq.

  Facsimile:(312) 902-1061

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PORTSIDE GROWTH AND OPPORTUNITY FUND

  	
   

  	
  c/o
  Ramius Capital Group, LLC

  666 Third Avenue, 26th Floor

  New York, NY 10017

  Attention:  Jeff Smith

                    Owen
  Littman

  Facsimile:  (212) 201-4802

  	
   

  	
  $

  	
  9,000,000

  	
   

  	
  c/o
  Ramius Capital Group, LLC

  666 Third Avenue, 26th Floor

  New York, NY 10017

  Attention:  Jeff Smith

                    Owen
  Littman

  Facsimile:  (212) 201-4802

  

 

 

SCHEDULES

 

	
  Schedule 3(a)

  	
   

  	
  Organization
  and Qualification

  
	
  Schedule 3(c)

  	
   

  	
  Capitalization

  
	
  Schedule 3(g)

  	
   

  	
  Absence
  of Certain Changes

  
	
  Schedule 3(h)

  	
   

  	
  Litigation

  
	
  Schedule 3(n)

  	
   

  	
  Employee
  Relations

  
	
  Schedule 3(o)

  	
   

  	
  Intellectual
  Property Rights

  
	
  Schedule
  3(q)

  	
   

  	
  Title

  
	
  Schedule 3(w)

  	
   

  	
  Transactions
  with Affiliates

  
	
  Schedule 3(bb)

  	
   

  	
  Outstanding
  Indebtedness; Liens

  
	
  Schedule 3(cc)

  	
   

  	
  Leases

  
	
  Schedule
  3(gg)

  	
   

  	
  Products

  
	
  Schedule 4(d)

  	
   

  	
  Use
  of Proceeds

  

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  Form of Note

  
	
  Exhibit B

  	
   

  	
  Form of Warrant

  
	
  Exhibit C

  	
   

  	
  Form of Registration Rights Agreement

  
	
  Exhibit D

  	
   

  	
  Form of Guarantee and Collateral Agreement

  
	
  Exhibit G

  	
   

  	
  Form of Subordination Agreement

  
	
  Exhibit H

  	
   

  	
  Form of Subordinated Integrated Note

  
	
  Exhibit I

  	
   

  	
  Form of Subordinated Sirius Note

  
	
  Exhibit J

  	
   

  	
  Form of Irrevocable Transfer Agent Instructions

  
	
  Exhibit K-1

  	
   

  	
  Form of Clifford Chance Opinion

  
	
  Exhibit K-2

  	
   

  	
  Form of Sklar Warren Conway & Williams LLP
  Opinion

  
	
  Exhibit K-3

  	
   

  	
  Form of Theodore R. Maloney Opinion

  

 

 

Schedule 3(a)

Organization and Qualification

 

See
the attached corporate organization table. [See attached file
“Organization at Closing.pdf.”]

 

 

MEDICOR LTD.
AND ITS SUBSIDIARIES

SECURITIES
AT CLOSING

 

	
  Issuing
  Entity

  	
   

  	
  Name of
  Acquiring or Holding

  Entity

  	
   

  	
  Type of
  Organization

  (if other than

  corporation) &

  	
   

  	
  Number
  of Shares Owned

  	
   

  	
  Total
  Shares Outstanding

  	
   

  	
  Liens,
  Etc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Biosil Limited

  	
   

  	
  Biosil U.K. Limited

  	
   

  	
  Isle of Man

  	
   

  	
  To be acquired, presently 0

  	
   

  	
  2000 shares of common stock (all preferred redeemed)

  	
   

  	
  To be a pledge of 30% to sellers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nagor Limited

  	
   

  	
  Biosil U.K. Limited

  	
   

  	
  Isle of Man

  	
   

  	
  To be acquired, presently 0

  	
   

  	
  2000

  	
   

  	
  To be a pledge of 30% to sellers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clinitech Polymers
  Limited

  	
   

  	
  Biosil U.K. Limited (direct or as subsidiary of
  Biosil or Nagor)

  	
   

  	
  Isle of Man

  	
   

  	
  To be acquired, presently 0

  	
   

  	
  1000 ordinary shares and 250 “A” non-voting shares

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NPH Limited

  	
   

  	
  Biosil U.K. Limited (direct or as subsidiary of
  Biosil or Nagor)

  	
   

  	
  Isle of Man

  	
   

  	
  To be acquired, presently 0

  	
   

  	
  764 “A” shares and 990 “B” shares

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Artes Medical, Inc.

  	
   

  	
  Nagor Limited

  	
   

  	
  Delaware

  	
   

  	
  40,225 shares (to be acquired as part of Nagor acquisition)

  	
   

  	
  ?

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Biosil UK Limited

  	
   

  	
  MediCor Europe Holdings ApS

  	
   

  	
  United Kingdom

  	
   

  	
  1 share

  	
   

  	
  1

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dermatological Medical
  Products & Specialties S.A. de C.V.

  	
   

  	
  MediCor Latin America and MediCor Management Inc.

  	
   

  	
  Mexico

  	
   

  	
  299,999 shares and 1 share

  	
   

  	
  300000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ES Holdings SAS

  	
   

  	
  MediCor Europe Holdings ApS

  	
   

  	
  France

  	
   

  	
  6.4M shares

  	
   

  	
  6.4M

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eurosilicone SAS

  	
   

  	
  ES Holdings SAS

  	
   

  	
  France

  	
   

  	
  33,750 shares

  	
   

  	
  33,750

  	
   

  	
  Pledged to BNPP and sellers (100%)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HPL Biomedical, Inc. dba
  Biodermis, Inc.

  	
   

  	
  MediCor Management Inc.

  	
   

  	
  Delaware

  	
   

  	
  1,000 shares

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III Acquisition
  Corporation dba PIP.America

  	
   

  	
  MediCor Management Inc.

  	
   

  	
  Delaware

  	
   

  	
  1,000 shares

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Intellectual Property
  International Inc.

  	
   

  	
  MediCor Development Company

  	
   

  	
  Delaware

  	
   

  	
  2 shares

  	
   

  	
  2

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Integrated
  Europe Ltd.

  	
   

  	
  International Integrated Incorporated

  	
   

  	
  BVI

  	
   

  	
  1,000 shares (in dissolution)

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Integrated
  Incorporated

  	
   

  	
  MediCor Ltd.

  	
   

  	
  BVI

  	
   

  	
  1,000 shares

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Integrated
  USA Inc.

  	
   

  	
  International Integrated Incorporated

  	
   

  	
  BVI

  	
   

  	
  1,000 shares (in dissolution)

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Aesthetics

  	
   

  	
  International Integrated Incorporated

  	
   

  	
  Nevada

  	
   

  	
  1,000 shares

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Deutschland GmbH

  	
   

  	
  MediCor Europe B.V.

  	
   

  	
  Germany

  	
   

  	
  € 25,000.00

  	
   

  	
  € 25,000.00

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Development
  Company

  	
   

  	
  International Integrated Incorporated

  	
   

  	
  Delaware

  	
   

  	
  1,000 shares

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Europe B.V.

  	
   

  	
  MediCor Europe Holdings ApS

  	
   

  	
  The Netherlands

  	
   

  	
  40 shares

  	
   

  	
  40

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Europe Holdings
  ApS

  	
   

  	
  MediCor Ltd.

  	
   

  	
  Denmark

  	
   

  	
  DKK 126,000.00

  	
   

  	
  DKK 126,000.00

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Latin America S.A. de C.V.

  	
   

  	
  MediCor Ltd. and MediCor Management Inc.

  	
   

  	
  Mexico

  	
   

  	
  49,999 shares and 1 share

  	
   

  	
  50000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Ltd.

  	
   

  	
  N/A

  	
   

  	
  Delaware

  	
   

  	
  N/A

  	
   

  	
  Common 21,094,641

  Preferred 6,456

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Management Inc.

  	
   

  	
  International Integrated Incorporated

  	
   

  	
  Delaware

  	
   

  	
  1,000 shares

  	
   

  	
  1000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor Services Company
  S.A. de C.V.

  	
   

  	
  MediCor Latin America and MediCor Management Inc.

  	
   

  	
  Mexico

  	
   

  	
  49,999 shares and 1 share

  	
   

  	
  50000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Scientio Incorporated

  	
   

  	
  MediCor Ltd.

  	
   

  	
  BVI

  	
   

  	
  27 shares

  	
   

  	
  ?

  	
   

  	
  0

  	
   

  

 

1

 

Schedule 3(c)

Capitalization

 

The MediCor
Ltd. 1999 Amended and Restated Stock Compensation Program is filed as Exhibit
10.3 to the Company’s Annual Report on Form 10-KSB for the year ended June 30,
2003.

 

MediCor Ltd.
Non-Employee Directors’ Deferral Plan dated February 9, 2006.

 

See the
attached schedule of outstanding options, warrants and common stock equivalents
[See attached file “Outstanding Stock
Options at Closing.pdf.”]

 

See the
attached schedule of outstanding convertible debentures. [See attached file “Convertible Debenture
Schedule.pdf.”]

 

Amended and
Restated Subordinated Convertible Note dated as of the date of the Closing, to
be issued to Sirius Capital LLC in the principal amount of $37,500.00.

 

Obligation to
issue 2.64 million shares of Common Stock to the sellers of the shares of
Biosil Limited and Nagor Limited pursuant to the Agreement for the Sale and
Purchase of the Shares of Biosil Limited and Nagor Limited dated September 13,
2005 (the “Biosil SPA”). The Company will issue these shares at the closing of
the transactions contemplated under the Biosil SPA, which will occur
concurrently with the closing under the Securities Purchase Agreement.

 

Put/call
rights pursuant to the four Put and Call Option Agreements, which provide
certain rights to purchase up to an aggregate of 2.64 million shares from the
sellers of the shares of Biosil Limited and Nagor Limited and which agreements
in their agreed final form have been provided to the Purchasers. One such
agreement will be entered into with each of John Gordon Evans, Jessie Anne
Evans, John A. Alsop and Joseph S. Gallagher (the “Biosil Sellers”) in
connection with the Biosil SPA with respect to the respective shares to be held
by them.

 

Registration
rights are to be granted to the Biosil Sellers pursuant to a Registration
Rights Agreement (one) to be entered into in connection with the Biosil SPA. A
copy of this agreement in its agreed final form has been provided to the
Purchasers.

 

Existing
registration (non-contractual) pursuant to Registration Statement on Form SB-2
(SEC File No. 333-121832).

 

 

MediCor Ltd.

Options
& Warrants Outstanding

at Closing

 

Employment /
Consulting Agreement Options

 

	
   

  	
   

  	
  Number
  of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Options
  Issued

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
  $

  	
  0.08

  	
   

  	
   

  	
  3,298,941

  	
   

  	
  —

  	
   

  	
  1,457,044

  	
   

  	
  1,841,897

  	
   

  	
  1,841,897

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  $

  	
  1.01

  	
   

  	
   

  	
  74,561

  	
   

  	
  —

  	
   

  	
  74,561

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  $

  	
  1.61

  	
   

  	
   

  	
  708,332

  	
   

  	
  198,831

  	
   

  	
  459,793

  	
   

  	
  248,538

  	
   

  	
  49,708

  	
   

  	
  198,830

  	
   

  	
  198,830

  	
   

  
	
  $

  	
  2.01

  	
   

  	
   

  	
  994,146

  	
   

  	
  416,300

  	
   

  	
  —

  	
   

  	
  745,610

  	
   

  	
  577,847

  	
   

  	
  167,763

  	
   

  	
  167,763

  	
   

  
	
  $

  	
  1.50

  	
   

  	
   

  	
  320,000

  	
   

  	
  210,000

  	
   

  	
  —

  	
   

  	
  160,000

  	
   

  	
  110,000

  	
   

  	
  50,000

  	
   

  	
  50,000

  	
   

  
	
  $

  	
  3.80

  	
   

  	
   

  	
  120,000

  	
   

  	
  120,000

  	
   

  	
  —

  	
   

  	
  60,000

  	
   

  	
  —

  	
   

  	
  60,000

  	
   

  	
  60,000

  	
   

  
	
  $

  	
  1.15

  	
   

  	
   

  	
  100,000

  	
   

  	
  75,000

  	
   

  	
  —

  	
   

  	
  50,000

  	
   

  	
  25,000

  	
   

  	
  25,000

  	
   

  	
  25,000

  	
   

  
	
  $

  	
  3.25

  	
   

  	
   

  	
  140,000

  	
   

  	
  140,000

  	
   

  	
  —

  	
   

  	
  70,000

  	
   

  	
  —

  	
   

  	
  70,000

  	
   

  	
  70,000

  	
   

  
	
  $

  	
  4.15

  	
   

  	
   

  	
  600,000

  	
   

  	
  600,000

  	
   

  	
  —

  	
   

  	
  300,000

  	
   

  	
  —

  	
   

  	
  300,000

  	
   

  	
  300,000

  	
   

  
	
  $

  	
  4.30

  	
   

  	
   

  	
  600,000

  	
   

  	
  600,000

  	
   

  	
  —

  	
   

  	
  150,000

  	
   

  	
  —

  	
   

  	
  150,000

  	
   

  	
  150,000

  	
   

  
	
  TOTAL

  	
   

  	
  6,955,980

  	
  (a) 

  	
  4,964,582

  	
   

  	
  1,991,398

  	
  (b) 

  	
  3,626,045

  	
   

  	
  2,604,451

  	
  (c) 

  	
  1,021,593

  	
   

  	
  1,021,593

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Options Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,360,131

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Warrants

 

	
   

  	
   

  	
  Number
  of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Warrants
  Granted

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
  $

  	
  0.08

  	
   

  	
   

  	
  1,304,815

  	
   

  	
  1,304,815

  	
   

  	
  12,427

  	
   

  	
  791,480

  	
   

  	
  550,616

  	
   

  	
  741,772

  	
   

  	
  741,772

  	
   

  
	
  $

  	
  1.61

  	
   

  	
   

  	
  62,135

  	
   

  	
  62,135

  	
   

  	
  24,854

  	
   

  	
  37,281

  	
   

  	
  12,427

  	
   

  	
  24,854

  	
   

  	
  24,854

  	
   

  
	
  Totals

  	
   

  	
   

  	
  1,366,950

  	
  (a)

  	
  1,366,950

  	
   

  	
  37,281

  	
  (b)

  	
  828,761

  	
   

  	
  563,043

  	
  (c)

  	
  766,626

  	
   

  	
  766,626

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Warrants Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  766,626

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Common Stock Equivalents - Non-Employee Directors’
Deferral Plan

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Number
  Granted

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
  $

  	
  3.18

  	
   

  	
   

  	
  60,000

  	
   

  	
  60,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Totals

  	
   

  	
   

  	
  60,000

  	
  (a)

  	
  60,000

  	
   

  	
  —

  	
  (b) 

  	
  —

  	
   

  	
  —

  	
  (c) 

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  60,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Stock
Compensation Plan

 

Director’s
Stock Options

 

	
   

  	
   

  	
  Number
  of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Options
  Issued

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
  $

  	
  4.30

  	
   

  	
   

  	
  100,000

  	
   

  	
  100,000

  	
   

  	
  —

  	
   

  	
  100,000

  	
   

  	
  —

  	
   

  	
  100,000

  	
   

  	
  100,000

  	
   

  
	
  $

  	
  3.90

  	
   

  	
   

  	
  75,000

  	
   

  	
  75,000

  	
   

  	
  —

  	
   

  	
  75,000

  	
   

  	
  —

  	
   

  	
  75,000

  	
   

  	
  75,000

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
  175,000

  	
  (a) 

  	
  175,000

  	
   

  	
  —

  	
  (b) 

  	
  175,000

  	
   

  	
  —

  	
  (c) 

  	
  175,000

  	
   

  	
  175,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Options Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  175,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Incentive
Stock Options

 

	
   

  	
   

  	
  Number
  of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Options
  Issued

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  TOTAL

  	
   

  	
  —

  	
  (a) 

  	
  —

  	
   

  	
  —

  	
  (b) 

  	
  —

  	
   

  	
  —

  	
  (c) 

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Options Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Employee
Non-Qualified Stock Options

 

	
   

  	
   

  	
  Number
  of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Options
  Issued

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
  $

  	
  3.40

  	
   

  	
   

  	
  350,000

  	
   

  	
  350,000

  	
   

  	
  —

  	
   

  	
  112,500

  	
   

  	
  —

  	
   

  	
  350,000

  	
   

  	
  350,000

  	
   

  
	
  $

  	
  3.50

  	
   

  	
   

  	
  1,690,000

  	
   

  	
  1,690,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1,690,000

  	
   

  	
  1,690,000

  	
   

  
	
  TOTAL

  	
   

  	
  2,040,000

  	
  (a) 

  	
  2,040,000

  	
   

  	
  —

  	
  (b) 

  	
  112,500

  	
   

  	
  —

  	
  (c) 

  	
  2,040,000

  	
   

  	
  2,040,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Options Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,040,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Non-Employee
Non-Qualified Stock Options

 

	
   

  	
   

  	
  Number
  of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Options
  Issued

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
  $

  	
  3.40

  	
   

  	
   

  	
  40,000

  	
   

  	
  40,000

  	
   

  	
  —

  	
   

  	
  10,000

  	
   

  	
  —

  	
   

  	
  40,000

  	
   

  	
  40,000

  	
   

  
	
  $

  	
  3.50

  	
   

  	
   

  	
  240,000

  	
   

  	
  240,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  240,000

  	
   

  	
  240,000

  	
   

  
	
  TOTAL

  	
   

  	
  280,000

  	
  (a) 

  	
  280,000

  	
   

  	
  —

  	
  (b) 

  	
  10,000

  	
   

  	
  —

  	
  (c) 

  	
  280,000

  	
   

  	
  280,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Options Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  280,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Restricted
Stock Grants

 

	
   

  	
   

  	
  Number
  of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding

  	
   

  	
   

  	
   

  
	
  Price

  	
   

  	
  Options
  Issued

  	
   

  	
  Outstanding

  	
   

  	
  Cancelled

  	
   

  	
  Vested

  	
   

  	
  Exercised

  	
   

  	
  and
  Vested

  	
   

  	
   

  	
   

  
	
  $

  	
  5.30

  	
   

  	
   

  	
  20,000

  	
   

  	
  20,000

  	
   

  	
  —

  	
   

  	
  20,000

  	
   

  	
  —

  	
   

  	
  20,000

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  20,000

  	
  (a) 

  	
  20,000

  	
   

  	
  —

  	
  (b) 

  	
  20,000

  	
   

  	
  —

  	
  (c) 

  	
  20,000

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Grants Outstanding (a - b - c):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																		

 

 

CONFIDENTIAL

 

MediCor Ltd. (assigned from
III)

One Year Convertible
Debenture Loan Agreement (Convertible at $5.00/share times 1.24268) (interest
pre-paid)

 

	
  #

  	
   

  	
  Amount

  	
   

  	
  Date

  	
   

  	
  LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  BUSINESS

  	
   

  	
  Comments

  	
   

  
	
  C001

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  6/18/2002

  	
   

  	
  Fitness, Inc.

  	
   

  	
   

  	
   

  	
  d/b/a The Oaks at Ojai; Attn: Donald W. Cluff

  	
   

  	
  06/18/03 - converted to Common

  	
   

  
	
  C002

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  6/25/2002

  	
   

  	
  Bradt, Trustee

  	
   

  	
  Emmy Lou

  	
   

  	
  Emmy Lou Bradt Trust Dated Oct. 4, 1983

  	
   

  	
  06/25/03 - converted to Common

  	
   

  
	
  C003

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  7/19/2002

  	
   

  	
  Rahner Trust Agreement

  	
   

  	
  Mark R. Rahner and Leslie L.

  	
   

  	
   

  	
   

  	
  07/19/04 - converted to Preferred

  	
   

  
	
  C004

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  8/12/2002

  	
   

  	
  Rahner O.D., PC Profit Sharing Plan

  	
   

  	
  Mark R.

  	
   

  	
   

  	
   

  	
  08/12/04 - Cancelled

  	
   

  
	
  C005

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  10/11/2002

  	
   

  	
  Smoot III, M.D. Profit Sharing Plan

  	
   

  	
  Wendell

  	
   

  	
   

  	
   

  	
  10/11/03 - converted to Common

  	
   

  
	
  C006

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  10/11/2002

  	
   

  	
  Smoot III, M.D.

  	
   

  	
  Wendell

  	
   

  	
   

  	
   

  	
  10/11/03 - converted to Common

  	
   

  
	
  C007

  	
   

  	
  $

  	
  60,000.00

  	
   

  	
  10/18/2002

  	
   

  	
  Becker, M.D.

  	
   

  	
  Ricky C.

  	
   

  	
   

  	
   

  	
  10/18/03 - Cancelled

  	
   

  
	
  C008

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  12/12/2002

  	
   

  	
  FBO Denis Winder

  	
   

  	
  Lincoln Trust Company Custodian

  	
   

  	
   

  	
   

  	
  12/12/04 - converted to Common

  	
   

  
	
   

  	
   

  	
  $

  	
  560,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

MediCor Ltd.

Three Year Convertible
Debenture Loan Agreement (Convertible at 75% or $5.00/share) (8% interest,
payable quarterly)

 

	
  #

  	
   

  	
  Amount

  	
   

  	
  Date

  	
   

  	
  LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  BUSINESS

  	
   

  	
  Comments

  	
   

  
	
  D001

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  4/11/2003

  	
   

  	
  Mogelvang

  	
   

  	
  Sandra J.G.

  	
   

  	
   

  	
   

  	
  04/11/06 - converted to Common

  	
   

  
	
  D002

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  5/5/2003

  	
   

  	
  Rogers, TTEE

  	
   

  	
  Samuel Clay

  	
   

  	
  Rogers Family Trust Dtd 12/30/92

  	
   

  	
  06/30/04 - converted to Preferred

  	
   

  
	
  D003

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  5/5/2003

  	
   

  	
  Rogers, TTEE

  	
   

  	
  Samuel Clay

  	
   

  	
  Rogers Family Trust B Dtd 12/30/92

  	
   

  	
  06/30/04 - converted to Preferred

  	
   

  
	
  D004

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  6/12/2003

  	
   

  	
  Montgomery

  	
   

  	
  Conrad A.

  	
   

  	
  c/o Seacad Technology Corporation

  	
   

  	
   

  	
   

  
	
  D005

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  6/30/2003

  	
   

  	
  Kardos & Alexandra S. Bisbee, TTEE

  	
   

  	
  Michael J.

  	
   

  	
   

  	
   

  	
  04/15/05 - Cancelled

  	
   

  
	
  D006

  	
   

  	
  $

  	
  83,200.00

  	
   

  	
  7/25/2003

  	
   

  	
  Junker, M.D.

  	
   

  	
  Caesar A.

  	
   

  	
   

  	
   

  	
  07/25/04 - Cancelled

  	
   

  
	
  D007

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  7/31/2003

  	
   

  	
  Bauer

  	
   

  	
  Sally K.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D008

  	
   

  	
  $

  	
  16,800.00

  	
   

  	
  8/11/2003

  	
   

  	
  FBO Caesar Junker

  	
   

  	
  Lincoln Trust Company Trustee

  	
   

  	
   

  	
   

  	
  08/11/04 - Cancelled

  	
   

  
	
  D009

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  8/12/2003

  	
   

  	
  FBO Douglas D. Dedo

  	
   

  	
  Lincoln Trust Company Trustee

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  650,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

MediCor Ltd.

Three Year Convertible
Debenture Loan Agreement (Convertible at 75% or $5.00/share) (10% interest,
payable quarterly)

 

	
  #

  	
   

  	
  Amount

  	
   

  	
  Date

  	
   

  	
  LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  BUSINESS

  	
   

  	
   

  	
   

  
	
  E001

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  11/24/2003

  	
   

  	
  Rogers, TTEE

  	
   

  	
  Samuel Clay

  	
   

  	
  Rogers Family Trust Dtd 12/30/92

  	
   

  	
  06/30/04 - converted to Preferred

  	
   

  
	
  E002

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  11/24/2003

  	
   

  	
  Rogers, TTEE

  	
   

  	
  Samuel Clay

  	
   

  	
  Rogers Family Trust B Dtd 12/30/92

  	
   

  	
  06/30/04 - converted to Preferred

  	
   

  
	
   

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

Schedule 3(g)

Absence of Certain Changes

 

The Company
paid in-kind dividends on its Series A 8.0% Convertible Preferred Stock for the
periods June 30, 2005 and December 31, 2005 (673 whole shares in
aggregate, with fractional share amounts paid in cash).

 

 

Schedule 3(h)

Absence of Litigation

 

In October
1999, Case No. 99-25227-CA-01 June 2000 Case No. 00-14665-CA-01, and July 2003,
Case No. 0322537-CA-27, separate but related complaints were filed by Saul and
Ruth Kwartin, Steven M. Kwartin, and Robert and Nina Kwartin respectively,
against our PIP.America subsidiary as co-defendant with PIP/USA, Inc. and Poly
Implants Protheses, S.A., each unaffiliated with MediCor, and Jean Claude Mas,
Jyll Farren-Martin and our chairman, personally, in the Circuit Court of
Miami-Dade County, Florida. Also in September 2003, another member of the same
family filed Case No. 03-15006-CA-09, again alleging similar claims on his own
behalf. All of the cases above have been consolidated for all pre-trial
purposes, but not for trial. The Kwartin family members’ claims are primarily
premised on allegations that plaintiffs are shareholders of PIP/USA, Inc. (“PIP/USA”)
or have statutory and common law rights of shareholders of PIP/USA as a result
of loans or investments allegedly made to or into PIP/USA or a third party or
under an alleged employment agreement. Plaintiffs allege that, as a result, they
have certain derivative or other rights to an alleged distribution agreement
between Poly Implants Prostheses, S.A. (“PIP-France”) and PIP/USA. Plaintiffs
claim, among other things, that III Acquisition Corporation dba PIP.America (“PIP.America”)
and its chairman tortuously interfered with that agreement and with plaintiffs’
other alleged rights as lenders, investors, shareholders, quasi-shareholders or
employees of PIP/USA or other entities. In addition to monetary damages and
injunctive relief, plaintiffs seek to reinstate the alleged distribution
agreement between PIP/USA and PIP-France and invalidate PIP.America’s
distributor relationship with PIP-France.

 

Peggy Williams
v. PIP/USA, Inc., Case No. 03 CH 9654, Jessica Fischer Schnebel, et al. v.
PIP/USA, Inc., Case No. 03CH07239, Dawn Marie Cooper, et al. v. PIP/USA, Inc.,
Case No. 03CH11316, Miriam Furman, et al. v. PIP/USA, Inc., Case No. 03CH10832
and Karen S. Witt, et al. v. PIP/USA, Inc., Case No. 03CH12928 were filed in
the Circuit Court of Cook County, Chancery Division, in or around July 2003. Counsel
for Jessica Fischer Schnebel, et al. v. PIP/USA, Inc., Case No. 03CH07239
amended her class action complaint to include plaintiffs from the other four
cases, and each of the others was voluntarily dismissed. The consolidated
second amended complaint contained counts alleging product liability, breach of
the implied warranties of merchantability and fitness for a particular purpose,
violation of the Illinois Consumer Fraud Act and third-party beneficiary status.
Unspecified monetary damages, exemplary damages and attorneys fees and costs
had been sought. On January 26, 2006, PIP.America won dismissal of all counts
in these cases but the third-party beneficiary claims. Plaintiffs have amended
and refilled their complaint against PIP.America. Poly Implants Protheses,
S.A., a defendant in the Schnebel litigation, has agreed that it will indemnify
PIP.America for any losses it may suffer as a result of the Illinois
litigation.

 

In June 2004,
Madeline Sanchez filed a lawsuit, Index No. 109155/04, in The Supreme Court of
the State of New York, New York County, premised on theories of strict
liability and negligence against the defendants, III Acquisition Corp. d/b/a
PIP America (erroneously as Medicor Ltd.), Heritage Worldwide Inc., Eli Milch,
M.D., and Park East Plastic Surgery Center. The complaint

 

 

seeks both
compensatory damages in excess of $25 million, and punitive damages in excess
of $100 million. Specifically, Ms. Sanchez alleges that she was injured when
defendants Eli Milch and Park East Plastic Surgery Center performed surgery on
her in which saline-filled implants were inserted into plaintiff’s left and
right breasts. This case is in its early stages of discovery. In October 2004,
Nixon Peabody LLP filed an answer on behalf of defendant, III Acquisition Corp.
d/b/a PIP America (erroneously as Medicor Ltd.), and tendered this case to
co-defendant Poly Implants Protheses, S.A. (“PIP-France”) seeking both defense
and indemnity.

 

Salinas I.
Landers, et al. v. Poly Implants Protheses, S.A., et al., Case No. CV 030377
was filed in June 2003 in the Superior Court of San Luis Obispo County,
California. Plaintiffs (8 in number) purported to sue on behalf of themselves
and an alleged class of persons allegedly similarly situated for unspecific
monetary damages, exemplary damages, attorneys’ fees and costs and injunctive
relief for alleged breach of express warranty and alleged violations of
California’s Song-Beverly Consumer Warranty Act and Unfair Competition Law. PIP.America
filed a demurrer to the action, which was denied by the Court. PIP.America also
filed an answer to the complaint. Poly Implant Prostheses, S.A., also filed an
answer to the complaint, and the parties conducted written discovery. A case management
hearing occurred on May 5, 2004, at which time the court scheduled a date to
hear arguments for and against class certification. PIP.America tendered this
case to Poly Implant Prostheses, S.A., for defense and indemnity, and the
parties settled in 2004 for aggregate payments of $24,500 and legal fees of
$81,500.

 

Marsha Dicken,
et al. v. PIP/USA, Inc., et al., Case No. 2003-05588, was filed in January 2003
in the District Court of Harris County, Texas. Plaintiffs (16 in number)
purported to sue on behalf of themselves and an alleged class of persons
allegedly similarly situated for alleged strict liability, breach of express
warranty, breach of implied warranties, violation of Section 402B of the
Restatement (Second) of Torts, negligence, misrepresentations, and violation of
Texas’ Deceptive Trade Practices Act with respect to implant products. Plaintiffs
sought an unspecified amount in alleged compensatory damages, additional
statutory damages, interest, attorneys’ fees and costs. PIP.America tendered
this case to Poly Implant Prostheses, S.A., for defense and indemnity, and the
parties settled in 2004 for aggregate payments of $14,500 and legal fees of
$60,000.

 

As it relates
to cases involving Poly Implants Protheses, S.A., PIP.America is indemnified by
PIP/USA, Inc., Poly Implants Protheses, S.A., and Poly Implants Protheses, S.A.’s
President, Jean Claude Mas, personally, from, among other things, claims
arising from products manufactured by PIP-France. PIP.America either already
has, or is in the process of, asserting its indemnification claims and, in the
event of an adverse judgment in any case, PIP.America intends to seek the
benefits of this indemnity. As a result, we believe the costs associated with
these matters will not have a material adverse impact on our business, results
of operations or financial position.

 

In July, 2005,
IP Resources Limited, a UK-based company filed an action against our
subsidiary, Eurosilicone, SAS in the Marseille Civil Court (Tribunal de Grande
Instance), Marseille, France. The complaint alleges Eurosilicone infringed upon
a certain European Patent licensed by IP Resources, Inc. known as “Implantable
prosthesis device”, Patent# 0 174 141 B1, and seeks damages of $3 million
Euros. The case is in the preliminary stages and the company believes it

 

 

does not
infringe on the 0 174 141 B1 patent and is prepared to wage a vigorous defense
based on both the validity of the patent and upon the merits of the claims.

 

Europlex, S.A.
de C.V., a Mexican company, filed suit on December 23, 2004, against our
subsidiary, Eurosilicone S.A.S, in Avignon Commercial Court in France. The suit
alleged Eurosilicone unlawfully terminated Europlex’ right to distribute
Eurosilicone breast implants in Mexico and sought damages of approximately €
4,000,000 Euros. On October 12, 2005, Eurosilicone and Europlex entered into a
settlement, agreeing to extinguish and release all claims, in exchange for
future payments totaling $1,000,000 and an agreement in which MediCor Latin
America, a subsidiary of MediCor Ltd., would acquire all the remaining
inventory of Europlex.

 

Prior to
reaching agreement with Poly Implant Protheses, S.A. in March 2004, product
replacement claims for PIP products sold in the United States were not being
honored by PIP. As part of that agreement, the Company’s III Acquisition Corp.
(dba PIP.America) subsidiary undertook to administer and pay the product
replacement claims, with PIP being obligated to repay PIP.America for such
expenses. Satisfaction of these claims included administration and settlement
of lawsuits that had arisen from PIP’s non-administration of the claims where
applicable. Two such suits (described above) were alleged class actions that
were settled for amounts in aggregate greater than $50,000, in each case
settling multiple claims on a product replacement claim basis (approximating
$1,500 per patient). These two settlements were of litigation reported in the
SEC Documents and captioned “Salinas I. Landers, etc. et al. v. Poly Implants
Prostheses, etc. et al.,” Case No. CV 030377, filed in June 2003 in the
Superior Court of San Luis Obispo County, California and “Marsha Dicken et al.
v. PIP/USA, Inc. et al.,” Case No. 2003-05588, filed in or around July 2003 in
the District Court of Harris County, Texas.

 

AMOENA vs Eurosilicone, patent dispute (Cour d’Appel d’Aix en
Provence). This dispute is concerning mammary external adhesive
prostheses. This litigation is based on the fact that EUROSILICONE and Amoena
have sued each other based on the violation of their patent relative to
adhesive external prostheses. Eurosilicone sold 15,000€ of the kind of
prosthesis at issue in the dispute. AMOENA has sought damages of up to 80,000€.

 

In 1999, after
being denied in California, a group of MDA shareholders brought suit in a
Nevada court to have a receiver appointed for MDA. The plaintiff shareholders’
principal allegation was inadequate disclosure of the investment of corporate
funds following a private placement of securities. Based solely on the
allegations in the complaint, the court, in an interlocutory order, found that
some directors may have been guilty of fraud, collusion or gross mismanagement,
misfeasance, malfeasance or nonfeasance and that the assets of MDA may be in
danger of loss through attachment, foreclosure, litigation or otherwise. The
court appointed a temporary receiver on the basis of these allegations. Prior
to any evidentiary hearing as to the merits of the allegations, the parties
settled in 2001. Pursuant to the terms of the settlement, no party admitted any
fault or wrongdoing. Subsequent to the settlement, MDA was acquired by
ArthroCare Corporation for approximately $30 million, plus additional milestone
payments. In 2005, Donald K. McGhan initiated a court action in response to an
arbitration proceeding filed by Wedbush Morgan Securities, Inc, a defendant and
settling party in MDA, who is now seeking indemnity or contribution claims
relating to their settlement payments. Donald K. McGhan v.

 

 

Wedbush Morgan
Securities, Clark County District Court, Nevada, Case Number A514659, was filed
on December 16, 2005 and seeks declaratory and injunctive relief to bar Wedbush
Morgan Securities, Inc. v. Donald K. McGhan, Richard W. Talley and Talley and
Company, NASD Dispute Resolution Arbitration Number 04-02355, filed on March
31, 2004, from proceeding. The Arbitration arises from the same facts
previously adjudicated in the MDA case. McGhan asserted that the arbitration
action was barred by principles of res judicata and collateral estoppel, and
that Wedbush waived any right to file an arbitration claim by appearing,
defending and ultimately choosing to settle its claims in the MDA litigation. Wedbush
Morgan failed to appear in the court action and a default judgment was entered
in March 2006.

 

Theodore Maloney
was deposed in October 2005 in an action brought by the Bankruptcy Trustee for
NetFax Incorporated. The action is an adversary proceeding brought by the
trustee against Nida & Maloney LLP, Mr. Maloney’s former law firm and one
of its partners, Joseph Nida. The action is believed to be captioned NetFax
Incorporated v. Nida & Maloney LLP, et al. The proceeding arises from a
proposed merger transaction between NetFax Incorporated and Internet Magic, Inc.
The parties had signed a confidentiality agreement and a letter of intent to
merge. During negotiations of the merger agreement and during NetFax’s due
diligence investigation of Internet Magic, NetFax discovered that certain
intellectual property critical to Internet Magic’s business was owned by a
third party. NetFax acquired that intellectual property from the third party
and then sued Internet Magic. Internet Magic counter-sued NetFax for breaching
its confidentiality agreement and won. The judgment caused NetFax to declare
bankruptcy. The claims in the action against Nida & Maloney assert, among
other things, that Mr. Nida did not advise NetFax not to use the information
gained during its due diligence investigation. It was not alleged that Nida
& Maloney discovered the information or advised that it could be used as it
was, and Nida & Maloney did not represent NetFax in the litigation. Mr.
Maloney was not involved in this transaction or the litigation other than
supervising work on forensic analysis of private placements of securities by
NetFax as part of the diligence process for the proposed transaction.

 

 

Schedule 3(n)

Employee Relations

 

•                  The employees of
Eurosilicone SAS are represented by a French statutory workers’ council, known
as Committee Enterprise.

•                  Collective
bargaining agreement relating to metallurgic industries and related industries
of the Département of Vaucluse dated January 20, 1976.*

•                  Agreement
relating to work time reduction dated December 22, 1999.*

•                  Profit sharing
agreement entered into on March 28, 2000 and amendment dated April 3, 2003.*

•                  Annual
negotiation of the wages.

•                  A biannual
attendance premium corresponding to the half of monthly wage is granted
pursuant to the following:

•                  Less than five
(5) days of absence over a six-month period: 100% of the premium is granted.

•                  Between five (5)
and ten (10) days of absence over a six-month period: 75% of the premium is
granted.

•                  Between ten (10)
and fifteen (15) days of absence over a six-month period: 50% of the premium is
granted.

•                  Between fifteen
(15) and twenty (20) days of absence over a six-month period: 25% of the
premium is granted.

•                  More than twenty
(20) days of absence over a six-month period: no premium is granted.

•                  Contingency agreement number 10.615/00083001 MDM Prévoyance Enterprise
between Laboratoires Eurosilicone S.A. and Les Mutuelles du Mans Assurances
IARD et Vie dated February 7, 2000.*

•                  Additional pension scheme agreement MDM 83 Horizon between Laboratoires
Eurosilicone S.A. and Les Mutuelles du Mans Assurances IARD et Vie dated
February 3, 2000.*

•                  Additional pension scheme agreement Mondiale Retraite Plus between
Laboratoires Eurosilicone S.A. and La Mondiale dated April 29, 1999.*

•                  Mutual insurance agreement between Laboratoires Eurosilicone S.A. and
Apicil Prévoyance dated January 8, 2002.*

 

* See attached
summary

 

 

•                  Collective bargaining agreement relating to
metallurgic industries and related industries of the Département of Vaucluse
dated January 20, 1976

 

•                  This National
and Branch agreement applicable to Eurosilicone has impact on:

 

•                  Employee
Relations

 

•                  General
stipulations to organize employee working conditions: working time, night
shift, vacation, day off for family events

 

•                  Relations with
Staff Representatives: election process, annual review process regarding
working conditions, training, wages

 

•                  Employee
individual conditions for all and specific qualification:

 

•                  How manage from
hiring (i.e., different trial period per status) to leaving (i.e., notice
period, severance payment) all general allowances are fixed by the Agreement
include all Benefits by status for: maternity, sickness, retirement

 

•                  Minimum Wages
per job grade and senority premium

 

•                  Agreement relating to work time reduction dated
December 22, 1999

 

•                  This Agreement
fixes how the 35 hours per week Law (Aubry II) is applied by each Eurosilicone
department: from 8 hours to 7 hours per working day

 

•                  Profit sharing agreement entered into on March 28,
2000 and amendment dated April 3, 2003

 

•                  Mandatory for
Companies with more than 50+ staff, of which the dividend, calculated according
to a set formula is frozen for 5 years and yields interest

 

•                  Contingency agreement number 10.615/00083001 MDM
Prévoyance Enterprise between Laboratoires Eurosilicone S.A. and Les Mutuelles
du Mans Assurances IARD et Vie dated February 7, 2000

 

•                  Mandatory for
Manager “Cadres” positions

 

•                  Welfare
Contingency

 

•                  Incapacity
and/or disability for temporary and/or long-term period

 

•                  Contribution
rate: 2.15% on (TA) social security ceiling and 2.93% above on (TB) as a
maximum

 

•                  Additional pension scheme agreement MDM 83 Horizon
between Laboratoires Eurosilicone S.A. and Les Mutuelles du Mans Assurances
IARD et Vie dated February 3, 2000

 

 

•                  Special
additional retirement and Life Insurance contributions for Manager “Cadres”
positions

 

•                  Contribution
rate: 6.00% on annual salary

 

•                  Additional pension scheme agreement Mondiale Retraite
Plus between Laboratoires Eurosilicone S.A. and La Mondiale dated April 29,
1999

 

•                  Special
additional Retirement Plan by Capitalization for Manager “Cadres” positions

 

•                  Contribution
rate: 4.00% on annual salary

 

•                  Mutual insurance agreement between Laboratoires
Eurosilicone S.A. and Apicil Prévoyance dated January 8, 2002

 

•                  To complete
French Social Security reimbursement for medicine, tests, dental, etc.

 

•                  All employees
are covered as Individual (1.66%) or Family (3.30%) rate based on monthly
social security ceiling (2,589 € since January 2006)

 

 

Schedule 3(o)

Intellectual Property Rights

 

See the
attached schedules of patents and trademarks. [See
attached files “Patents.pdf” and “Marks.pdf”]

 

The French
trademark CERATEX is co-owned by the Company and Mr. Kirkorian and the PCT
patent no WO 98 26735 is co-owned by the Company and Mr. Tourniaire.
There is no co-ownership agreement.

 

Licenses

 

The Company
and its Subsidiaries license software in the ordinary course of their business
pursuant to customary end-user license agreements. Other than with respect to
Great Plains and Sage accounting software fees of under $10,000.00 per year in
aggregate, there are no material maintenance or similar recurring license fees.

 

Litigation

 

The Company
incorporates by reference the litigation commenced against Eurosilicone SAS by
IP Resource Limited disclosed on Schedule 3(h).

 

AMOENA vs Eurosilicone, patent dispute (Cour d’Appel d’Aix en
Provence). This dispute is concerning mammary external adhesive
prostheses. This litigation is based on the fact that EUROSILICONE and Amoena
have sued each other based on the violation of their patent relative to
adhesive external prostheses. Eurosilicone sold 15,000€ of the kind of
prosthesis at issue in the dispute).

 

 

PATENT REPORT

MediCor

 

	
  Title

  	
   

  	
  Country

  	
   

  	
  Application

  No./Filing Date

  	
   

  	
  Patent

  No./Reg. Date

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implant filling material and method

  	
   

  	
  US Federal

  	
   

  	
  10/839559

  May 5, 2004

  	
   

  	
  Intellectual

  Property

  International, Inc.

  	
   

  	
  Pending

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Silicone mask for cryosurgery and method

  	
   

  	
  US Federal

  	
   

  	
  95445089

  May 19, 1995

  	
   

  	
  5901707

  May 11, 1999

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Expired

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mask to protect healthy tissue during cryosurgical
  removal of diseased tissue from the skin- is elastomer sheet with silicone
  gel layer on underside which remains adherent to skin at low temp.

  	
   

  	
  Australia

  	
   

  	
  AU 9657535

  May 16, 1996

  	
   

  	
  AU9657535

  November 29, 1996

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mask to protect healthy tissue during cryosurgical
  removal of diseased tissue from the skin- is elastomer sheet with silicone
  gel layer on underside which remains adherent to skin at low temp.

  	
   

  	
  Brazil

  	
   

  	
  BR9612881

  May 16, 1996 1996

  	
   

  	
  BR 9612881

  December 31, 2002

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Breast implant

  	
   

  	
  European

  Patent

  	
   

  	
  WO 97951290

  December 10, 1997

  	
   

  	
  9826735

  June 25, 1998

  	
   

  	
  Laboratoires Eurosilicone

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Anatomical breast implant with controllable and
  stable positioning

  	
   

  	
  European

  Patent

  	
   

  	
  EP2002790537

  October 23, 2002

  	
   

  	
  WO 2004041128

  May 21, 2004

  	
   

  	
  Laboratoires Eurosilicone

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mask to protect healthy tissue during cryosurgical
  removal of diseased tissue from the skin- is elastomer sheet with silicone
  gel layer on underside which remains adherent to skin at low temp.

  	
   

  	
  European

  Patent

  	
   

  	
  WO 96US7201

  May 16, 1996

  	
   

  	
  WO 9636293

  November 21, 1996

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Registered

  

 

 

	
  Title

  	
   

  	
  Country

  	
   

  	
  Application

  No./Filing Date

  	
   

  	
  Patent

  No./Reg. Date

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mask to protect healthy tissue during cryosurgical
  removal of diseased tissue from the skin- is elastomer sheet with silicone
  gel layer on underside which remains adherent to skin at low temp.

  	
   

  	
  European

  Patent

  	
   

  	
  EP 96915880

  May 16, 1996

  	
   

  	
  EP 955931

  November 17, 1999

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implantable prosthetic body used as implantable
  prostetic body, e.g. breast implants, comprises thin elastomeric container,
  and pliable viscous cohesive mass contained within container

  	
   

  	
  European

  Patent

  	
   

  	
  WO 2004US35213

  October 25, 2004

  	
   

  	
   

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  An improved artificial airway device

  	
   

  	
  European

  Patent

  	
   

  	
  96904959

  March 6, 1996

  	
   

  	
  813432

  December 29, 1997

  	
   

  	
  Biosil Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  An improved artificial airway device

  	
   

  	
  Patent

  Cooperation

  Treaty

  	
   

  	
  PCT/GB96/0516

  March 6, 1996

  	
   

  	
   

  	
   

  	
  Biosil Limited

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Artificial airway device with sealing cuff for distal
  end

  	
   

  	
  US Federal

  	
   

  	
  08/913020

  November 4, 1997

  	
   

  	
  5865176

  February 2, 1999

  	
   

  	
  Biosil Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Prostetic anal sphincter

  	
   

  	
  US Federal

  	
   

  	
  08/551052

  October 31, 1995

  	
   

  	
  5593443

  January 14, 1997

  	
   

  	
  Biosil Limited

  	
   

  	
  Registered

  

 

 

	
  Title

  	
   

  	
  Country

  	
   

  	
  Application

  No./Filing Date

  	
   

  	
  Patent

  No./Reg. Date

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Urinary sphincter device

  	
   

  	
  United

  Kingdom

  	
   

  	
  00228122

  September 18, 2000

  	
   

  	
  2355937

  May 9, 2001

  	
   

  	
  Biosil Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Endotracheal tube allowing oesophageal access

  	
   

  	
  United

  Kingdom

  	
   

  	
  9604630

  March 5, 1996

  	
   

  	
  2298580

  September 11, 1996

  	
   

  	
  Biosil Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Textured silicone implant prosthesis

  	
   

  	
  US Federal

  	
   

  	
  304764

  January 31, 1989

  	
   

  	
  4955909

  September 11, 1990

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bio-osmotic gel for implant prostheses

  	
   

  	
  US Federal

  	
   

  	
  496234

  March 20, 1990

  	
   

  	
  5067965

  November 26, 1991

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bio-osmotic gel for implant prosthesis 

  	
   

  	
  Canada

  	
   

  	
   

  	
   

  	
  2057044

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bio-osmotic gel for implant prosthesis 

  	
   

  	
  Germany

  	
   

  	
   

  	
   

  	
  69119754.7

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bio-osmotic gel for implant prosthesis 

  	
   

  	
  France

  	
   

  	
   

  	
   

  	
  0521015

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  

 

 

	
  Title

  	
   

  	
  Country

  	
   

  	
  Application

  No./Filing Date

  	
   

  	
  Patent

  No./Reg. Date

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bio-osmotic gel for implant prosthesis 

  	
   

  	
  Great Britain

  	
   

  	
   

  	
   

  	
  0521015

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rheologically modified and osmotically balanced fi 

  	
   

  	
  US Federal

  	
   

  	
  924457

  August 29, 1997

  	
   

  	
  5997574

  December 7, 1999

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Saline implant having single valve with primary an

  	
   

  	
  US Federal

  	
   

  	
  318036

  May 25, 1999

  	
   

  	
  6162251

  December 19, 2000

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leak-proof implant

  	
   

  	
  US Federal

  	
   

  	
  711255

  August 24, 2005

  	
   

  	
   

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leak-proof implant

  	
   

  	
  Patent

  Cooperation

  Treaty

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  In preparation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Silicone gel composition and dispenser therefor
  (Pro-Sil)

  	
   

  	
  US Federal

  	
   

  	
  913656

  August 6, 2004

  	
   

  	
   

  	
   

  	
  Intellectual Property International, Inc.

  	
   

  	
  Pending

  

 

 

TRADEMARK REPORT

MediCor

 

	
  Mark

  	
   

  	
  Country

  	
   

  	
  Serial
  No./

  Filing Date

  	
   

  	
  Reg
  No./

  Registered

  	
   

  	
  International

  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMD and design

  	
   

  	
  US Federal

  	
   

  	
  76/050336

  May 15, 2000

  	
   

  	
  2561197

  April 16, 2002

  	
   

  	
  10

  	
   

  	
  Biosil Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BEAUTY IS NATURAL... PERFECTION
  IS SURGICAL and design

  	
   

  	
  US Federal

  	
   

  	
  78/658204

  June 24, 2005

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Published ITU

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIODERMIS

  	
   

  	
  US Federal

  	
   

  	
  76/409086

  May 17, 2002

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRYOSIL

  	
   

  	
  US Federal

  	
   

  	
  76/018979

  March 3, 2000

  	
   

  	
  2447839

  May 1, 2001

  	
   

  	
  10

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DERMASOF and design

  	
   

  	
  US Federal

  	
   

  	
  76/632997

  March 7, 2005

  	
   

  	
  3058626

  February 14, 2006

  	
   

  	
  5

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EPI-DERM

  	
   

  	
  US Federal

  	
   

  	
  76/001047

  March 13, 2000

  	
   

  	
  2440827

  April 3, 2001

  	
   

  	
  5

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  

 

 

	
  Mark

  	
   

  	
  Country

  	
   

  	
  Serial
  No./

  Filing Date

  	
   

  	
  Reg
  No./

  Registered

  	
   

  	
  International

  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EPIFOAM

  	
   

  	
  US Federal

  	
   

  	
  76/411916

  May 24, 2002

  	
   

  	
  2771043

  October 7, 2003

  	
   

  	
  5

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EPITAB

  	
   

  	
  US Federal

  	
   

  	
  76/161090

  October 30, 2000

  	
   

  	
  2506421

  November 13, 2001

  	
   

  	
  5

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HYDROGOLD

  	
   

  	
  US Federal

  	
   

  	
  76/179320

  December 4, 2000

  	
   

  	
  2769658

  September 30, 2003

  	
   

  	
  5

  	
   

  	
  HPL Biomedical, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MEDICOR

  	
   

  	
  US Federal

  	
   

  	
  78/221425

  March 4, 2003

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Published

  ITU

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRO-SIL

  	
   

  	
  US Federal

  	
   

  	
  78/465469

  August 11, 2004

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Published

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCARAID

  	
   

  	
  US Federal

  	
   

  	
  75/745886

  July 7, 1999

  	
   

  	
  2424688

  January 30, 2001

  	
   

  	
  5

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  

 

 

	
  Mark

  	
   

  	
  Country

  	
   

  	
  Serial
  No./

  Filing Date

  	
   

  	
  Reg
  No./

  Registered

  	
   

  	
  International

  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILGEL

  	
   

  	
  US Federal

  	
   

  	
  75/482243

  May 8, 1998

  	
   

  	
  2305528

  January 4, 2000

  	
   

  	
  5, 10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILQUECLENZ

  	
   

  	
  US Federal

  	
   

  	
  75/308208

  June 13, 1997

  	
   

  	
  2496490

  October 9, 2001

  	
   

  	
  3

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THERAFOAM

  	
   

  	
  US Federal

  	
   

  	
  76/381190

  March 11, 2002

  	
   

  	
  2788109

  December 2, 2003

  	
   

  	
  10

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XERAGEL

  	
   

  	
  US Federal

  	
   

  	
  75/401684

  December 8, 1997

  	
   

  	
  2216398

  January 5, 1999

  	
   

  	
  5

  	
   

  	
  Intellectual Property
  International, Inc.

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COGEL

  	
   

  	
  Australia

  	
   

  	
  808654

  September 29, 1999

  	
   

  	
  808654

  September 29, 1999

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOR

  	
   

  	
  Australia

  	
   

  	
  808656

  September 29, 1999

  	
   

  	
  808656

  September 29, 1999

  	
   

  	
  5, 10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOSIL

  	
   

  	
  Australia

  	
   

  	
  808657

  	
   

  	
  808657

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  September 29,

  	
   

  	
  September 29,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOTEX

  	
   

  	
  Australia

  	
   

  	
  808658

  	
   

  	
  808658

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  September 29,

  	
   

  	
  September 29,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILGEL

  	
   

  	
  Australia

  	
   

  	
  808655

  	
   

  	
  808655

  	
   

  	
  5

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  September 29,

  	
   

  	
  September 29,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1999

  	
   

  	
  1999

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMD and design

  	
   

  	
  Community

  	
   

  	
  737890

  	
   

  	
  737890

  	
   

  	
  10

  	
   

  	
  Biosil Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  January 29,

  	
   

  	
  June 17, 1999

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1998

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BEAUTY IS

  	
   

  	
  Community

  	
   

  	
  4448916

  	
   

  	
   

  	
   

  	
  5, 10

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
  NATURAL...PERFECTION

  	
   

  	
  Trademarks

  	
   

  	
  June 16, 2005

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
  IS SURGICAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIODERMIS

  	
   

  	
  Community

  	
   

  	
  4013587

  	
   

  	
   

  	
   

  	
  5, 10

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  September 8,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COGEL

  	
   

  	
  Community

  	
   

  	
  408450

  	
   

  	
  408450

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  November 14,

  	
   

  	
  January 8, 1999

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1996

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EUROSILICONE

  	
   

  	
  Community

  	
   

  	
  4151502

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  December 2,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MEDICOR

  	
   

  	
  Community

  	
   

  	
  4151494

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  December 2,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOR

  	
   

  	
  Community

  	
   

  	
  989483

  	
   

  	
  989483

  	
   

  	
  5, 10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  November 19,

  	
   

  	
  July 19, 2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1998

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOSIL

  	
   

  	
  Community

  	
   

  	
  219881

  	
   

  	
  219881

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  April 9, 1996

  	
   

  	
  November 16,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1998

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOTEX

  	
   

  	
  Community

  	
   

  	
  119923

  	
   

  	
  219923

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  April 9, 1996

  	
   

  	
  September 11,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1998

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILGEL

  	
   

  	
  Community

  	
   

  	
  584722

  	
   

  	
   

  	
   

  	
  5, 10

  	
   

  	
  Nagor Limited

  	
   

  	
  Pending

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  July 9, 1997

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XERAGEL

  	
   

  	
  Community

  	
   

  	
  4013595

  	
   

  	
  4013595

  	
   

  	
  5

  	
   

  	
  Intellectual

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Trademarks

  	
   

  	
  September 8,

  	
   

  	
  November 16,

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ES LABORATOIRES

  	
   

  	
  France

  	
   

  	
  02 3140673

  	
   

  	
  02 3140673

  	
   

  	
  10

  	
   

  	
  Laboratoires

  	
   

  	
  Registered

  
	
  EUROSILICONE and 

  	
   

  	
   

  	
   

  	
  January 9, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Eurosilicone

  	
   

  	
   

  
	
  design

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BEAUTY IS

  	
   

  	
  Mexico

  	
   

  	
  680521

  	
   

  	
  861692

  	
   

  	
  10

  	
   

  	
  Intellectual

  	
   

  	
  Registered

  
	
  NATURAL...PERFECTION

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
  November 29,

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
  IS SURGICAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COGEL

  	
   

  	
  Mexico

  	
   

  	
  377559

  	
   

  	
  675270

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  June 2, 1999

  	
   

  	
  October 23,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EUROSILICONE

  	
   

  	
  Mexico

  	
   

  	
  680524

  	
   

  	
  856874

  	
   

  	
  44

  	
   

  	
  Intellectual

  	
   

  	
  Registered

  
	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
  October 26,

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EUROSILICONE

  	
   

  	
  Mexico

  	
   

  	
  680523

  	
   

  	
  856873

  	
   

  	
  10

  	
   

  	
  Intellectual

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
  October 26,

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KOMURO

  	
   

  	
  Mexico

  	
   

  	
  680520

  	
   

  	
  856872

  	
   

  	
  10

  	
   

  	
  Intellectual

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
  October 26,

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MEDICOR and design

  	
   

  	
  Mexico

  	
   

  	
  680527

  	
   

  	
  904977

  	
   

  	
  44

  	
   

  	
  Intellectual

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
  October 26,

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2005

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOR

  	
   

  	
  Mexico

  	
   

  	
  377561

  	
   

  	
  675271

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  June 2, 1999

  	
   

  	
  October 23,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOSIL

  	
   

  	
  Mexico

  	
   

  	
  377557

  	
   

  	
  643042

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  June 2, 1999

  	
   

  	
  February 24,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOTEX

  	
   

  	
  Mexico

  	
   

  	
  377558

  	
   

  	
  675269

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  June 2, 1999

  	
   

  	
  October 23,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILGEL

  	
   

  	
  Mexico

  	
   

  	
  377560

  	
   

  	
  699500

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  June 2, 1999

  	
   

  	
  May 29, 2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COGEL and design

  	
   

  	
  South Korea

  	
   

  	
  4020030007200

  	
   

  	
  4006012730000

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  February 17,

  	
   

  	
  December 1,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOR and design

  	
   

  	
  South Korea

  	
   

  	
  4020030007206

  	
   

  	
  4006012740000

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  February 17,

  	
   

  	
  December 1,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOSIL and design

  	
   

  	
  South Korea

  	
   

  	
  4020030007199

  	
   

  	
  4006012720000

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  February 17,

  	
   

  	
  December 1,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOTEX and design

  	
   

  	
  South Korea

  	
   

  	
  4020030007198

  	
   

  	
  4006012710000

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  February 17,

  	
   

  	
  December 1,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILGEL and design

  	
   

  	
  South Korea

  	
   

  	
  4020030007205

  	
   

  	
  4005953380000

  	
   

  	
  5, 10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  February 17,

  	
   

  	
  October 8, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2003

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILGEL

  	
   

  	
  Spain

  	
   

  	
  2371254M6

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  Nagor Limited

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  January 16,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COGEL and design

  	
   

  	
  United

  	
   

  	
  2223645

  	
   

  	
  2223645

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Kingdom

  	
   

  	
  February 26,

  	
   

  	
  August 4, 2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOR and design

  	
   

  	
  United

  	
   

  	
  2223646

  	
   

  	
  2223646

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Kingdom

  	
   

  	
  February 26,

  	
   

  	
  August 4, 2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGORENHANCE

  	
   

  	
  United

  	
   

  	
  2311031

  	
   

  	
  2311031

  	
   

  	
  10, 36

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Kingdom

  	
   

  	
  September 19,

  	
   

  	
  June 13, 2003

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOSIL and design

  	
   

  	
  United

  	
   

  	
  2223647

  	
   

  	
  2223647

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Kingdom

  	
   

  	
  February 26,

  	
   

  	
  August 18,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAGOTEX and design

  	
   

  	
  United

  	
   

  	
  2223644

  	
   

  	
  2223644

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Kingdom

  	
   

  	
  Februay 26,

  	
   

  	
  August 4, 2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILGEL and design

  	
   

  	
  United

  	
   

  	
  2223696

  	
   

  	
  2223696

  	
   

  	
  10

  	
   

  	
  Nagor Limited

  	
   

  	
  Registered

  
	
   

  	
   

  	
  Kingdom

  	
   

  	
  February 26,

  	
   

  	
  August 11,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2000

  	
   

  	
  2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APTEX

  	
   

  	
  Mexico

  	
   

  	
  680519

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRISTALLINE APTEX

  	
   

  	
  Mexico

  	
   

  	
  680517

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
  PARAGEL

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRISTALLINE PARAGEL

  	
   

  	
  Mexico

  	
   

  	
  680515

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRISTALLINE VERATEX

  	
   

  	
  Mexico

  	
   

  	
  680516

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
  PARAGEL

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EPI-DERM

  	
   

  	
  Argentina

  	
   

  	
  2,550,571

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 28,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EPI-DERM

  	
   

  	
  Argentina

  	
   

  	
  2,550,572

  October 28, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  Property International,

  Inc.

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EPIFOAM

  	
   

  	
  Argentina

  	
   

  	
  2,550,574

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 28,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EUROSILICONE

  	
   

  	
  Mexico

  	
   

  	
  680522

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MEDICOR

  	
   

  	
  Mexico

  	
   

  	
  680494

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MEDICOR

  	
   

  	
  Mexico

  	
   

  	
  680525

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Serial No./

  	
   

  	
  Reg No./

  	
   

  	
  International

  	
   

  	
   

  	
   

  	
   

  
	
  Mark

  	
   

  	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Registered

  	
   

  	
  Class

  	
   

  	
  Owner

  	
   

  	
  Status

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PARAGEL

  	
   

  	
  Mexico

  	
   

  	
  680526

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VERTEX

  	
   

  	
  Mexico

  	
   

  	
  680518

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 5, 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XERAGEL

  	
   

  	
  Turkey

  	
   

  	
  13377/95

  	
   

  	
  166546

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Registered

  
	
   

  	
   

  	
   

  	
   

  	
  November 17,

  	
   

  	
  November 17,

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1995

  	
   

  	
  1995

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XERAGEL

  	
   

  	
  Argentina

  	
   

  	
  2,550,575

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
  Pending

  
	
   

  	
   

  	
   

  	
   

  	
  October 28,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIODERMIS

  	
   

  	
  Argentina

  	
   

  	
  Pending

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EPIFOAM

  	
   

  	
  Argentina

  	
   

  	
  2,550,573

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Intellectual

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  October 28,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  International,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Inc.

  	
   

  	
   

  

 

 

Schedule
3(q)  

Title

 

The liens to be granted in favor of the
collateral agent for the benefit of the purchasers of the Notes.

 

The liens identified below.

 

•                Pledge of shares by
of Eurosilicone SAS by ES Holdings SAS to BNP Paribas pursuant to the Loan
Agreement dated September 10, 2004 between ES Holdings SAS and BNP Paribas.

 

•                  Pledge of shares
of Eurosilicone SAS to François Tourniaire, as Sellers’ Representative,
pursuant to the Agreement for the Sale and Purchase of the Shares of
Laboratoires Eurosilicone SA dated May 17, 2004.

 

•                  Liens/interests
of lessors in real estate capital leases disclosed on Schedule 3(cc).

 

•                  Liens/interests
of lessors in equipment capital leases disclosed on the schedule attached to
Schedule 3(bb) and Schedule 3(cc).

 

 

Schedule
3(w)

Transactions
with Affiliates

 

1.               The
modification of the existing indebtedness to International Integrated
Industries, LLC and the conversion of certain of such debt held by Sirius
Capital LLC to $37.5 million in subordinated notes and warrants contemplated in
connection with the offering of the Securities. The agreements listed below
have been or will be timely filed with the SEC as prescribed by law.

 

a.               Promissory
Notes – International Integrated Industries, LLC (existing note previously
filed, amended note to be filed with the SEC)

 

b.            Subordinated
Convertible Note – Sirius Capital LLC (to be filed with the SEC)

 

c.               Warrant
– Sirius Capital LLC (to be filed with the SEC)

 

2.               The
MediCor Ltd. 1999 Amended and Restated Stock Compensation Program (filed with
the SEC).

 

3.               MediCor
Ltd. Non-Employee Directors’ Deferral Plan dated February 9, 2006 (to be filed
with the SEC).

 

4.               Revolving
Promissory Note dated April 1, 2003 made by MediCor Ltd. in favor of
International Integrated Industries, LLC (previously filed with the SEC).

 

 

Schedule 3(bb)

Outstanding Indebtedness; Liens

 

•                  The aggregate
trade accounts payable of the Company and its Subsidiaries at March 31, 2006 is
estimated to be $8,711,982.

 

•                  The aggregate
outstanding Indebtedness of the Company and its Subsidiaries (to third parties)
at March 31, 2006 is estimated to be $93,995,053, composed of the following:

 

•                  $68,106,900 –
Revolving Promissory Note dated April 1, 2003 made by MediCor Ltd. in favor of
International Integrated Industries, LLC with an interest rate of 10% (term –
open ended revolving note, to be amended in connection with this transaction).

 

•                  $11,280,746 –
Loan Agreement between BNP Paribas and ES Holdings SAS dated September 10, 2004
with an interest rate of six-month EURIBOR plus 2.25% (term – September 15,
2011).

 

•                  $16,919 – Note
Agreement between First Insurance Funding and MediCor Ltd. dated June 30, 2005
with an interest rate of 7.2% (term – April 30, 2006).

 

•                  $100,000 – Three
Year Convertible Debenture Loan Agreement dated 12 June 2003 between the
Company and Conrad A. Montgomery with an interest rate of 8% (term – June 12,
2006).

 

•                  $100,000 – Three
Year Convertible Debenture Loan Agreement dated 12 August 2003 between the
Company and Lincoln Trust Company, Trustee for the benefit of Douglas D. Dedo
with an interest rate of 8% (term — August 12, 2006).

 

•                  $50,000 – Three
Year Convertible Debenture Loan Agreement dated 31 July 2003 between the
Company and Sally K. Bauer with an interest rate of 8% (term – July 31, 2006).

 

•                  $2,905,046 in
accrued expenses and other current liabilities

 

•      $1,092,181 – In payroll taxes payable

 

•                  $6,810,258 –
Series A 8.0% Convertible Preferred Stock (redeemable)

 

•                  $3,058,448 –
Capital Lease Obligations [see attached file
“Capital Lease Schedules.doc”]

 

•                  $106,945 – Loan
agreement between BNP Paribas and Laboratoires Eurosilicone SAS dated December
11, 2003

 

•                  Amount of the
loan: € 181,000

 

 

•                  Starting date:
March 24, 2004

 

•                  Term: February
24, 2008 (4 years, or 48 months)

 

•                  Monthly
repayment: €4,037.59

 

•                  Rate: 3.39%

 

•                  Remaining amount
due as of March 31, 2006: €89,789.10

 

•                  Negative pledge
and restrictions on asset sales

 

•                  $125,159 – Loan
agreement between CIC Banque Scalbert Dupont and Laboratoires Eurosilicone SAS
dated August 1, 2001

 

•                  Amount of the
loan: € 609,000

 

•                  Starting date:
December 25, 2001

 

•                  Term: December
25, 2006 (5 years, or 20 quarters)

 

•                  Quarterly
repayment: €35,166.44

 

•                  Rate: 5.65%

 

•                  Remaining amount
due as of March 31, 2006: €102,587.71

 

•                  Lien on company
assets

 

•                  $242,451 – Loan
agreement between Société Générale and Laboratoires Eurosilicone SAS dated
October 10, 2002

 

•                  Amount of the
loan: € 460,000

 

•                  Starting date:
December 1, 2002

 

•                  Term: February
28, 2008 (5 years, or 60 months would take to March, but date certain also
stated)

 

•                  Monthly
repayment: €8,733.55

 

•                  Rate: 5.25%

 

•                  Remaining amount
due as of March 31, 2006: €198,564.69

 

 

Eurosilicone

Obligation
Under Capital Leases Balance at Closing

(in
Euros)

 

	
   

  	
   

  	
   

  	
   

  	
  Original Loan

  	
   

  	
  Short Term

  	
   

  	
  Long-Term

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Origination Date

  	
   

  	
  Amount

  	
   

  	
  Balance

  	
   

  	
  Balance

  	
   

  	
  Total

  	
   

  
	
  Buildings -
  Eurosilicone 1

  	
   

  	
  1/1/1999

  	
   

  	
  754,894.00

  	
   

  	
  67,697.43

  	
   

  	
  296,637.30

  	
   

  	
  364,334.73

  	
   

  
	
  Buildings -
  Eurosilicone 2

  	
   

  	
  3/1/2002

  	
   

  	
  2,286,735.00

  	
   

  	
  215,883.17

  	
   

  	
  1,122,653.03

  	
   

  	
  1,338,536.20

  	
   

  
	
  Buildings -
  Europrotex

  	
   

  	
  4/1/2000

  	
   

  	
  261,432.00

  	
   

  	
  30,095.33

  	
   

  	
  87,013.01

  	
   

  	
  117,108.35

  	
   

  
	
  Vehicles -
  Ford Focus

  	
   

  	
  3/1/2001

  	
   

  	
  16,708.00

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Vehicles -
  BMW

  	
   

  	
  1/1/2002

  	
   

  	
  29,728.00

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Vehicles -
  Transit

  	
   

  	
  5/1/2002

  	
   

  	
  23,835.00

  	
   

  	
  1,103.66

  	
   

  	
  —

  	
   

  	
  1,103.66

  	
   

  
	
  Vehicles -
  Mercedes

  	
   

  	
  12/1/2002

  	
   

  	
  36,778.00

  	
   

  	
  7,900.11

  	
   

  	
  —

  	
   

  	
  7,900.11

  	
   

  
	
  Vehicles -
  Boxer

  	
   

  	
  8/1/2003

  	
   

  	
  23,181.00

  	
   

  	
  6,435.00

  	
   

  	
  2,877.56

  	
   

  	
  9,312.56

  	
   

  
	
  Vehicles -
  Puegeot

  	
   

  	
  1/1/2004

  	
   

  	
  11,500.00

  	
   

  	
  3,008.43

  	
   

  	
  2,678.78

  	
   

  	
  5,687.21

  	
   

  
	
  Vehicles -
  Espace

  	
   

  	
  3/1/2004

  	
   

  	
  34,658.00

  	
   

  	
  8,748.91

  	
   

  	
  8,923.36

  	
   

  	
  17,672.27

  	
   

  
	
  Vehicles -
  Porsche

  	
   

  	
  8/15/2004

  	
   

  	
  51,838.32

  	
   

  	
  19,687.46

  	
   

  	
  9,858.94

  	
   

  	
  29,546.40

  	
   

  
	
  Vehicles -
  BMW

  	
   

  	
  10/1/2004

  	
   

  	
  25,300.00

  	
   

  	
  6,236.75

  	
   

  	
  11,201.15

  	
   

  	
  17,437.90

  	
   

  
	
  Vehicles -
  Scenic

  	
   

  	
  11/1/2004

  	
   

  	
  21,103.00

  	
   

  	
  5,264.93

  	
   

  	
  8,913.62

  	
   

  	
  14,178.55

  	
   

  
	
  Vehicles -
  Audi 1

  	
   

  	
  2/1/2005

  	
   

  	
  27,132.00

  	
   

  	
  6,608.26

  	
   

  	
  13,367.46

  	
   

  	
  19,975.71

  	
   

  
	
  Vehicles -
  Audi 2

  	
   

  	
  3/1/2005

  	
   

  	
  30,944.00

  	
   

  	
  7,384.11

  	
   

  	
  16,326.11

  	
   

  	
  23,710.22

  	
   

  
	
  TOTAL CAPITAL LEASE OBLIGATION:

  	
   

  	
   

  	
   

  	
  €

  	
  3,635,766.32

  	
   

  	
  €

  	
  386,053.56

  	
   

  	
  €

  	
  1,580,450.32

  	
   

  	
  €

  	
  1,966,503.88

  	
   

  
	
  ACCRUED
  INTEREST:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  €

  	
  549,716.17

  	
   

  
	
  Exchange
  Rate at March 31, 2006

  	
   

  	
  1.20763

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CAPITAL LEASE OBLIGATION IN $:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  466,209.86

  	
   

  	
  $

  	
  1,908,599.22

  	
   

  	
  $

  	
  2,374,809.08

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCRUED
  INTEREST IN $:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  663,853.74

  	
   

  
																			

 

 

Eurosilicone
Leased Property under Capital Leases

 

	
  Leased
  Asset

  	
   

  	
  Expiration
  Date

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
  Building #1

  	
   

  	
  01/01/11

  	
   

  	
  85,981.20

  	
   

  	
  85,981.20

  	
   

  	
  85,981.20

  	
   

  	
  85,981.20

  	
   

  	
  71,651.00

  	
   

  	
  —

  	
   

  
	
  Building #2

  	
   

  	
  03/01/13

  	
   

  	
  294,343.52

  	
   

  	
  155,119.52

  	
   

  	
  155,119.52

  	
   

  	
  155,119.52

  	
   

  	
  155,119.52

  	
   

  	
  155,119.52

  	
   

  
	
  Building #3

  	
   

  	
  10/01/09

  	
   

  	
  36,562.20

  	
   

  	
  36,562.20

  	
   

  	
  36,562.20

  	
   

  	
  21,327.95

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BMW

  	
   

  	
  01/01/06

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Transit

  	
   

  	
  05/01/06

  	
   

  	
  1,114.32

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Mercedes

  	
   

  	
  12/01/06

  	
   

  	
  8,197.83

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Boxer

  	
   

  	
  08/01/07

  	
   

  	
  7,097.76

  	
   

  	
  2,957.40

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Pugeaut

  	
   

  	
  01/01/08

  	
   

  	
  3,325.56

  	
   

  	
  2,771.30

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Espace

  	
   

  	
  03/01/08

  	
   

  	
  9,021.36

  	
   

  	
  9,021.36

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Porsche

  	
   

  	
  09/01/08

  	
   

  	
  25,256.88

  	
   

  	
  10,523.70

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Scenic

  	
   

  	
  11/01/08

  	
   

  	
  5,403.84

  	
   

  	
  5,403.84

  	
   

  	
  3,602.56

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BMW

  	
   

  	
  10/01/08

  	
   

  	
  7,668.96

  	
   

  	
  7,668.96

  	
   

  	
  4,473.56

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Audi #1

  	
   

  	
  01/01/09

  	
   

  	
  7,788.96

  	
   

  	
  7,788.96

  	
   

  	
  6,490.80

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Audi #2

  	
   

  	
  02/01/09

  	
   

  	
  9,380.28

  	
   

  	
  9,380.28

  	
   

  	
  8,598.59

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Euro Total:

  	
   

  	
   

  	
   

  	
  €

  	
  501,142.67

  	
   

  	
  €

  	
  333,178.72

  	
   

  	
  €

  	
  300,828.43

  	
   

  	
  €

  	
  262,428.67

  	
   

  	
  €

  	
  226,770.52

  	
   

  	
  €

  	
  155,119.52

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange
  Rate at March 31, 2006:

  	
   

  	
   

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total USD:

  	
   

  	
   

  	
   

  	
  $

  	
  605,194.92

  	
   

  	
  $

  	
  402,356.62

  	
   

  	
  $

  	
  363,289.44

  	
   

  	
  $

  	
  316,916.73

  	
   

  	
  $

  	
  273,854.88

  	
   

  	
  $

  	
  187,326.99

  	
   

  
																												

 

	
  Leased
  Asset

  	
   

  	
  2012

  	
   

  	
  2013

  	
   

  	
  2014

  	
   

  	
  2015

  	
   

  	
  2016

  	
   

  	
  Total

  	
   

  	
  Interest

  	
   

  
	
  Building #1

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  415,575.80

  	
   

  	
  51,208.56

  	
   

  
	
  Building #2

  	
   

  	
  155,119.52

  	
   

  	
  155,119.52

  	
   

  	
  155,119.52

  	
   

  	
  155,119.52

  	
   

  	
  116,339.64

  	
   

  	
  1,806,758.84

  	
   

  	
  468,222.64

  	
   

  
	
  Building #3

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  131,014.55

  	
   

  	
  13,906.21

  	
   

  
	
  BMW

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Transit

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1,114.32

  	
   

  	
  7.97

  	
   

  
	
  Mercedes

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  8,197.83

  	
   

  	
  291.06

  	
   

  
	
  Boxer

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  10,055.16

  	
   

  	
  737.50

  	
   

  
	
  Pugeaut

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  6,096.86

  	
   

  	
  407.97

  	
   

  
	
  Espace

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  18,042.72

  	
   

  	
  368.68

  	
   

  
	
  Porsche

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  35,780.58

  	
   

  	
  6,234.25

  	
   

  
	
  Scenic

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  14,410.24

  	
   

  	
  231.22

  	
   

  
	
  BMW

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  19,811.48

  	
   

  	
  2,368.30

  	
   

  
	
  Audi #1

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  22,068.72

  	
   

  	
  2,089.28

  	
   

  
	
  Audi #2

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  27,359.15

  	
   

  	
  3,642.53

  	
   

  
	
  Euro Total:

  	
   

  	
  €

  	
  155,119.52

  	
   

  	
  €

  	
  155,119.52

  	
   

  	
  €

  	
  155,119.52

  	
   

  	
  €

  	
  155,119.52

  	
   

  	
  €

  	
  116,339.64

  	
   

  	
  €

  	
  2,516,286.25

  	
   

  	
  €

  	
  549,716.17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange
  Rate at March 31, 2006:

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  	
  1.20763

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total USD:

  	
   

  	
  $

  	
  187,326.99

  	
   

  	
  $

  	
  187,326.99

  	
   

  	
  $

  	
  187,326.99

  	
   

  	
  $

  	
  187,326.99

  	
   

  	
  $

  	
  140,495.24

  	
   

  	
  $

  	
  3,038,742.76

  	
   

  	
  $

  	
  663,853.74

  	
   

  
																														

 

Management Leased Property under Capital Leases

 

	
  Leased Asset

  	
   

  	
  Expiration
  Date

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
  Color Copier

  	
   

  	
  10/01/09

  	
   

  	
  5,499.24

  	
   

  	
  5,499.24

  	
   

  	
  5,499.24

  	
   

  	
  3,207.89

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Lease Payments:

  	
   

  	
  610,694

  	
   

  	
  407,856

  	
   

  	
  368,789

  	
   

  	
  320,125

  	
   

  	
  273,855

  	
   

  	
  187,327

  	
   

  	
  187,327

  	
   

  

 

	
  Leased Asset

  	
   

  	
  2012

  	
   

  	
  2013

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  Interest

  	
   

  
	
  Color Copier

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  19,705.61

  	
   

  	
  1,778.23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Lease Payments:

  	
   

  	
  187,327

  	
   

  	
  187,327

  	
   

  	
  187,327

  	
   

  	
  187,327

  	
   

  	
  140,495

  	
   

  	
  3,058,448

  	
   

  	
  665,632

  	
   

  

 

 

Schedule 3(cc) 

Leases

 

•                  Lease Agreement
dated October 10, 2002 between International Integrated Incorporated and
Skyview Business Park, LLC filed as Exhibit 10.4 to the Company’s Annual Report
on Form 10-KSB for the year ended June 30, 2003 (term – 60 months commencing
January 31, 2003; rent - $13,959.81/mo. +4% escalator).

 

•                  Lease Agreement
Addendum dated November 18, 2002 between International Integrated Incorporated
and Skyview Business Park, LLC filed as Exhibit 10.5 to the Company’s Annual
Report on Form 10-KSB for the year ended June 30, 2003 (adding parking spaces
under lease above).

 

•                  Lease Agreement
between MediCor Development Company and Openwave Systems Inc. dated December
16, 2005 (Santa Barbara R&D facility) (term – 48 months commencing April
14, 2006; rent - $14,192/mo. +2% escalator).

 

•                  Lease Agreement
between HPL Biomedical Inc. and Harsch Investment Properties-Nevada LLC dated
March 20, 2003 (term — 61 months commencing May 1, 2003; rent - $5,640/mo. +4%
escalator).

 

•                  Lease agreement
between Laboratoires Eurosilicone S.A. and the city of Apt, France dated May
25, 1999

 

•                  This contract
relates to the “Eurosilicone 1” building

 

•                  Starting date:
January 1, 1999

 

•                  Term: December
31, 2010 (12 years, or 144 months)

 

•                  Monthly rent: €
7,165.10

 

•                  € 1 purchase
option

 

•                  Lease agreement
between Laboratoires Eurosilicone S.A. and the city of Apt, France dated May
17, 2000

 

•                  This contract
relates to the “Europrotex” building.

 

•                  Starting date:
April 1, 2000

 

•                  Term: September
30, 2009 (9.5 years, or 114 months).

 

•                  Monthly rent: €
3,046.85

 

 

•                  € 1 purchase
option

 

•                  Lease agreement
between Laboratoires Eurosilicone S.A. and Natiocredimurs, Auxicomi and Ucabail
Immobilier dated March 8, 2001.

 

•                  This contract
relates to the “Eurosilicone 2” building.

 

•                  Starting date:
January 14, 2002.

 

•                  Term: January
14, 2017 (15 years, or 180 months).

 

•                  Quarterly rent:
€85,187.88 for the first 20 quarters and €38,779.88 for the last 40 quarters.

 

•                  Guaranty
initially issued by F. Tourniaire and to be transferred to ES Holdings SAS

 

•                  € 1 purchase
option

 

•                  See leases
identified in Schedule 3(bb).

 

 

Schedule 3(gg) 

Product Liability

 

The Company incorporates by reference the
litigation set forth in Schedule 3(h).

 

 

Schedule 4(d) 

Use of Proceeds

 

	
  Biosil/Nagor Acquisition

  	
   

  	
  $

  	
  24,000,000

  	
   

  
	
  Biosil/Nagor
  Fees/Expenses

  	
   

  	
  1,500,000

  	
   

  
	
  Financing
  Private Placement Fees

  	
   

  	
  2,500,000

  	
   

  
	
  Financing
  Legal/Transaction Fees/Expenses

  	
   

  	
  1,000,000

  	
   

  
	
  Working
  Capital/General Corporate Purposes

  	
   

  	
  21,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  50,000,000

  	
   

  

 

Note: All amounts except the total are estimates.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]