Document:

Exhibit
10.2

 

CREDIT
AGREEMENT

among

INAMED
CORPORATION

as Borrower

 

The Several
Lenders

from Time to Time
Parties Hereto

 

FIRST
UNION NATIONAL BANK,

as Administrative
Agent,

BEAR
STEARNS CORPORATE LENDING INC.,

as Syndication
Agent,

GMAC
COMMERCIAL CREDIT LLC,

as Documentation
Agent,

and

BEAR,
STEARNS & CO.,

as Arranger

 

Dated
as of February 1, 2000

 

INDEX

 

	
  1.

  	
  Credit
  Agreement

  
	
   

  
	
   

  	
  SCHEDULES

  	
   

  
	
   

  	
  Schedule 1.1A

  	
  Commitments

  
	
   

  	
  Schedule 4.4

  	
  Consents, Authorizations, Filings and Notices

  
	
   

  	
  Schedule 4.6

  	
  Litigation

  
	
   

  	
  Schedule 4.9

  	
  Intellectual Property

  
	
   

  	
  Schedule 4.15

  	
  Subsidiaries

  
	
   

  	
  Schedule 4.19

  	
  UCC Filing Jurisdictions

  
	
   

  	
  Schedule 7.2(d) 

  	
  Existing Indebtedness

  
	
   

  	
  Schedule 7.3(f) 

  	
  Existing Liens

  
	
   

  	
  Schedule 7.8 (i) 

  	
  Existing Investments

  
	
   

  
	
   

  	
  EXHIBITS

  	
   

  
	
   

  
	
   

  	
  Exhibit A

  	
  Form of Guarantee and Collateral Agreement

  
	
   

  	
  Exhibit B

  	
  Form of Compliance Certificate

  
	
   

  	
  Exhibit C

  	
  Form of Closing Certificate

  
	
   

  	
  Exhibit D

  	
  Form of Assignment and Acceptance

  
	
   

  	
  Exhibit E - 1

  	
  Form of Legal Opinion of Skadden, Arps, Slate,
  Meagher & Flom

  
	
   

  	
  Exhibit E - 2

  	
  Form of Legal Opinion of David Bamberger, General
  Counsel to the Borrower

  
	
   

  	
  Exhibit F

  	
  Form of Tax Exemption Certificate

  
	
   

  	
  Exhibit G - 1

  	
  Form of Term Note

  
	
   

  	
  Exhibit G - 2

  	
  Form of Revolving Note

  
	
   

  	
  Exhibit G - 3

  	
  Form Swing Line Note

  
	
   

  	
  Exhibit H

  	
  Form of Standby Letter of Credit

  
	
   

  
	
  2.

  	
  Guarantee and Collateral Agreement

  
	
   

  
	
  3.

  	
  Acknowledgment and Consent Forms

  
	
   

  
	
  4.

  	
  Inamed Corporation Officers Certificate

  
				

 

 

	
  5.

  	
  Closing Certificates

  
	
   

  
	
   

  	
  Inamed
  Corporation

  
	
   

  	
  Biodermis
  Corporation

  
	
   

  	
  Bioenterics
  Corporation

  
	
   

  	
  Bioplexus
  Corporation

  
	
   

  	
  Collagen
  Aesthetics, Inc.

  
	
   

  	
  Collagen
  Aesthetics International Inc.

  
	
   

  	
  CUI Corporation

  
	
   

  	
  Flowmatrix
  Corporation

  
	
   

  	
  Inamed
  Development Company

  
	
   

  	
  Inamed
  International Corp.

  
	
   

  	
  Inamed Japan,
  Inc.

  
	
   

  	
  McGhan Medical
  Corporation

  
	
   

  	
  Medisyn
  Technologies Corporation

  
	
   

  
	
  6.

  	
  Legal Opinion of Skadden, Arps, Slate, Meagher &
  Flom LLP

  
	
   

  
	
  7.

  	
  Legal Opinion of David Bamberger, General Counsel to
  Inamed Corporation

  
	
   

  
	
  8.

  	
  Solvency Certificate

  
	
   

  
	
  9.

  	
  Payoff Letter

  
	
   

  
	
  10.

  	
  Insurance Certificates

  
			

 

2

 

EXECUTION
COPY

 

 

$107,500,000

 

CREDIT AGREEMENT

 

among

 

INAMED
CORPORATION,

as Borrower,

 

The Several
Lenders

from Time to Time
Parties Hereto,

 

GMAC COMMERCIAL
CREDIT LLC,

as Documentation
Agent,

 

BEAR STEARNS
CORPORATE LENDING INC.

as Syndication
Agent,

 

and

 

FIRST UNION
NATIONAL BANK,

as Administrative
Agent

 

Dated as of
February 1, 2000

 

BEAR, STEARNS
& CO. INC., as Sole Lead Arranger and Sole Book Manager

 

 

 

TABLE OF CONTENTS

 

	
  SECTION
  1. DEFINITIONS

  
	
   

  	
  1.1

  	
  Defined
  Terms

  
	
   

  	
  1.2

  	
  Other
  Definitional Provisions

  
	
   

  
	
  SECTION
  2. AMOUNT AND TERMS OF COMMITMENTS

  
	
   

  	
  2.1

  	
  Term Commitments

  
	
   

  	
  2.2

  	
  Procedure for Term
  Loan Borrowing

  
	
   

  	
  2.3

  	
  Repayment of Term Loans

  
	
   

  	
  2.4

  	
  Revolving Commitments

  
	
   

  	
  2.5

  	
  Procedure for
  Revolving Loan Borrowing

  
	
   

  	
  2.6

  	
  Swingline Commitment

  
	
   

  	
  2.7

  	
  Procedure
  for Swingline Borrowing; Refunding of Swingline Loans

  
	
   

  	
  2.8

  	
  Commitment
  Fees, etc .

  
	
   

  	
  2.9

  	
  Termination
  or Reduction of Revolving Commitments

  
	
   

  	
  2.10

  	
  Optional Prepayments

  
	
   

  	
  2.11

  	
  Mandatory
  Prepayments and Commitment Reductions

  
	
   

  	
  2.12

  	
  Conversion and
  Continuation Options

  
	
   

  	
  2.13

  	
  Limitations on
  Eurodollar Tranches

  
	
   

  	
  2.14

  	
  Interest Rates and
  Payment Dates

  
	
   

  	
  2.15

  	
  Computation of
  Interest and Fees

  
	
   

  	
  2.16

  	
  Inability to
  Determine Interest Rate

  
	
   

  	
  2.17

  	
  Pro Rata Treatment and
  Payments

  
	
   

  	
  2.18

  	
  Requirements of Law

  
	
   

  	
  2.19

  	
  Taxes

  
	
   

  	
  2.20

  	
  Indemnity

  
	
   

  	
  2.21

  	
  Change of Lending Office

  
	
   

  	
  2.22

  	
  Replacement of Lenders

  
	
   

  	
  2.23

  	
  Evidence of Debt 

  
	
   

  	
  2.24

  	
  Illegality

  
	
   

  
	
  SECTION 3. LETTERS OF
  CREDIT

  
	
   

  	
  3.1

  	
  L/C Commitment

  
	
   

  	
  3.2

  	
  Procedure
  for Issuance of Letter of Credit

  
	
   

  	
  3.3

  	
  Fees and Other Charges

  
	
   

  	
  3.4

  	
  L/C Participations

  
	
   

  	
  3.5

  	
  Reimbursement
  Obligation of the Borrower

  
	
   

  	
  3.6

  	
  Obligations Absolute

  
	
   

  	
  3.7

  	
  Letter of Credit Payments

  
	
   

  	
  3.8

  	
  Applications

  
	
   

  
	
  SECTION 4.
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
  4.1

  	
  Financial Condition

  
	
   

  	
  4.2

  	
  No
  Change

  
	
   

  	
  4.3

  	
  Corporate
  Existence; Compliance with Law

  
	
   

  	
  4.4

  	
  Corporate
  Power; Authorization; Enforceable Obligations

  
	
   

  	
  4.5

  	
  No Legal Bar

  
	
   

  	
  4.6

  	
  Litigation

  
	
   

  	
  4.7

  	
  No
  Default

  
	
   

  	
  4.8

  	
  Ownership of Property;
  Liens

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
  4.9

  	
  Intellectual Property

  
	
   

  	
  4.10

  	
  Taxes

  
	
   

  	
  4.11

  	
  Federal Regulations

  
	
   

  	
  4.12

  	
  Labor Matters

  
	
   

  	
  4.13

  	
  ERISA

  
	
   

  	
  4.14

  	
  Investment
  Company Act; Other Regulations

  
	
   

  	
  4.15

  	
  Subsidiaries

  
	
   

  	
  4.16

  	
  Use of Proceeds

  
	
   

  	
  4.17

  	
  Environmental Matters

  
	
   

  	
  4.18

  	
  Accuracy of Information,
  etc

  
	
   

  	
  4.19

  	
  Security Documents

  
	
   

  	
  4.20

  	
  Solvency

  
	
   

  	
  4.21

  	
  Year 2000 Matters

  
	
   

  
	
  SECTION 5. CONDITIONS
  PRECEDENT

  
	
   

  	
  5.1

  	
  Conditions to
  Initial Extension of Credit

  
	
   

  	
  5.2

  	
  Conditions to
  Each Extension of Credit

  
	
   

  
	
  SECTION 6. AFFIRMATIVE
  COVENANTS

  
	
   

  	
  6.1

  	
  Financial Statements

  
	
   

  	
  6.2

  	
  Certificates; Other
  Information

  
	
   

  	
  6.3

  	
  Payment of Obligations

  
	
   

  	
  6.4

  	
  Maintenance of
  Existence; Compliance

  
	
   

  	
  6.5

  	
  Maintenance of
  Property; Insurance

  
	
   

  	
  6.6

  	
  Inspection
  of Property; Books and Records; Discussions

  
	
   

  	
  6.7

  	
  Notices

  
	
   

  	
  6.8

  	
  Environmental Laws

  
	
   

  	
  6.9

  	
  Interest Rate Protection

  
	
   

  	
  6.10

  	
  Additional Collateral, etc

  
	
   

  	
  6.11

  	
  Further Assurances

  
	
   

  
	
  SECTION 7. NEGATIVE
  COVENANTS

  
	
   

  	
  7.1

  	
  Financial Condition
  Covenants

  
	
   

  	
  7.2

  	
  Indebtedness

  
	
   

  	
  7.3

  	
  Liens

  
	
   

  	
  7.4

  	
  Fundamental Changes

  
	
   

  	
  7.5

  	
  Disposition of Property

  
	
   

  	
  7.6

  	
  Restricted Payments

  
	
   

  	
  7.7

  	
  Capital Expenditures

  
	
   

  	
  7.8

  	
  Investments

  
	
   

  	
  7.9

  	
  Transactions with
  Affiliates

  
	
   

  	
  7.10

  	
  Sales and Leasebacks

  
	
   

  	
  7.11

  	
  Changes in Fiscal Periods

  
	
   

  	
  7.12

  	
  Negative Pledge Clauses

  
	
   

  	
  7.13

  	
  Clauses
  Restricting Subsidiary Distributions

  
	
   

  	
  7.14

  	
  Lines of Business

  
	
   

  
	
  SECTION 8. EVENTS OF
  DEFAULT

  
	
   

  
	
  SECTION 9. THE AGENTS

  

 

ii

 

	
   

  	
  9.1 

  	
  Appointment

  
	
   

  	
  9.2 

  	
  Delegation of Duties

  
	
   

  	
  9.3 

  	
  Exculpatory Provisions

  
	
   

  	
  9.4 

  	
  Reliance by Agents

  
	
   

  	
  9.5 

  	
  Notice of Default

  
	
   

  	
  9.6 

  	
  Non-Reliance
  on Agents and Other Lenders

  
	
   

  	
  9.7

  	
  Indemnification

  
	
   

  	
  9.8 

  	
  Agent in Its
  Individual Capacity

  
	
   

  	
  9.9

  	
  Successor Administrative
  Agent

  
	
   

  	
  9.10 

  	
  Agents Generally

  
	
   

  	
  9.11 

  	
  The Lead Arranger

  
	
   

  	
  9.12

  	
   The Documentation Agent

  
	
   

  
	
  SECTION 10. MISCELLANEOUS

  
	
   

  	
  10.1

  	
   Amendments and Waivers

  
	
   

  	
  10.2

  	
   Notices

  
	
   

  	
  10.3 

  	
  No Waiver; Cumulative
  Remedies

  
	
   

  	
  10.4 

  	
  Survival of
  Representations and Warranties

  
	
   

  	
  10.5 

  	
  Payment of Expenses and
  Taxes

  
	
   

  	
  10.6
  

  	
  Successors
  and Assigns; Participations and Assignments

  
	
   

  	
  10.7 

  	
  Adjustments; Set-off

  
	
   

  	
  10.8 

  	
  Counterparts

  
	
   

  	
  10.9 

  	
  Severability

  
	
   

  	
  10.10

  	
   Integration

  
	
   

  	
  10.11 

  	
   GOVERNING LAW

  
	
   

  	
  10.12 

  	
   Submission To Jurisdiction; Waivers

  
	
   

  	
  10.13 

  	
   Acknowledgments

  
	
   

  	
  10.14 

  	
   Releases of Guarantees and Liens

  
	
   

  	
  10.15 

  	
   Confidentiality

  
	
   

  	
  10.16 

  	
   WAIVERS OF JURY TRIAL

  

 

iii

 

	
  ANNEX:

  
	
   

  
	
  A

  	
  Pricing Grid

  
	
   

  
	
  SCHEDULES:

  
	
   

  
	
  1.1A

  	
  Commitments

  
	
  4.4

  	
  Consents, Authorizations, Filings and Notices

  
	
  4.6

  	
  Litigation

  
	
  4.9

  	
  Intellectual Property

  
	
  4.15

  	
  Subsidiaries

  
	
  4.19

  	
  UCC Filing Jurisdictions

  
	
  7.2(d)

  	
  Existing Indebtedness

  
	
  7.3(f)

  	
  Existing Liens

  
	
  7.8(i)

  	
  Existing Investments

  
	
   

  
	
  EXHIBITS:

  
	
   

  
	
  A

  	
  Form of Guarantee and Collateral Agreement

  
	
  B

  	
  Form of Compliance Certificate

  
	
  C

  	
  Form of Closing Certificate

  
	
  D

  	
  Form of Assignment and Acceptance

  
	
  E-1

  	
  Form of Legal Opinion of Skadden, Arps, Slate,
  Meagher & Flom

  
	
  E-2

  	
  Form of Legal Opinion of David Bamberger, General
  Counsel to the Borrower

  
	
  F

  	
  Form of Tax Exemption Certificate

  
	
  G-1

  	
  Form of Term Note

  
	
  G-2

  	
  Form of Revolving Note

  
	
  G-3

  	
  Form Swing Line Note

  
	
  H

  	
  Form of Standby Letter of Credit

  

 

iv

 

CREDIT AGREEMENT, dated as of February 1, 2000, among
INAMED CORPORATION, a Delaware corporation (the “Borrower”), the several
banks and other financial institutions or entities from time to time parties to
this Agreement (the “Lenders”), BEAR, STEARNS & CO. INC., as sole
lead arranger and sole book manager (in such capacity, the “Lead Arranger”),  GMAC COMMERCIAL CREDIT LLC, as documentation
agent (in such capacity, the “Documentation Agent”), BEAR STEARNS
CORPORATE LENDING INC., as syndication agent (in such capacity, the “Syndication
Agent”), and FIRST UNION NATIONAL BANK, as administrative agent (in such
capacity, the “Administrative Agent”).

 

The parties hereto hereby agree as follows:

 

SECTION 1. DEFINITIONS

 

1.1 Defined
Terms.  As used in this
Agreement, the terms listed in this Section 1.1 shall have the respective
meanings set forth in this Section 1.1.

 

“Acquired Debt”: with respect to any specified
Person, (i) Indebtedness of any other Person existing at the time such other
Person is merged with or into or becomes a Subsidiary of such specified Person,
including, without limitation, Indebtedness incurred in connection with, or in
contemplation of, such other Person merging with or into or becoming a
Subsidiary of such specified Person, and (ii) Indebtedness secured by a Lien
encumbering any asset acquired by such specified Person.

 

“Acquisition”: with respect to any Person, (a)
the acquisition of all of the Capital Stock of any other Person, (b) the
acquisition of all or substantially all of the assets of any other Person or
(c) the acquisition of all of the assets comprising a division or business unit
of any other Person.

 

“Adjustment Date”: as defined in the Pricing
Grid.

 

“Administrative Agent”: as defined in the
recitals to this Agreement.

 

“Affiliate”: as to any Person, any other Person
that, directly or indirectly, is in control of, is controlled by, or is under
common control with, such Person. For purposes of this definition, “control” of
a Person means the power, directly or indirectly, either to (a) vote 10% or
more of the securities having ordinary voting power for the election of
directors (or persons performing similar functions) of such Person or (b)
direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise.

 

“Agents”: the collective reference to the
Syndication Agent, the Documentation Agent, the Lead Arranger and the
Administrative Agent, which term shall include, for purposes of Section 9 only,
the Issuing Lender.

 

“Aggregate Exposure”: with respect to any
Lender at any time, an amount equal to (a) until the Closing Date, the
aggregate amount of such Lender’s Commitments at such time and (b) thereafter,
the sum of (i) the aggregate then unpaid principal amount of such Lender’s Term
Loans and (ii) the amount of such Lender’s Revolving Commitment then in effect
or, if the Revolving Commitments have been terminated, the amount of such
Lender’s Revolving Extensions of Credit then outstanding.

 

“Aggregate Exposure Percentage”: with respect
to any Lender at any time, the ratio (expressed as a percentage) of such
Lender’s Aggregate Exposure at such time to the Aggregate Exposure of all
Lenders at such time.

 

 

“Agreement”: this Credit Agreement, as amended,
supplemented or otherwise modified from time to time.

 

“Applicable Margin”: for each Type of Loan, the
rate per annum set forth under the relevant column heading below:

 

	
   

  	
   

  	
  Base Rate Loans

  	
   

  	
  Eurodollar Loans

  	
   

  
	
  Revolving Loans,
  Swingline Loans and Term Loans

  	
   

  	
  2.75

  	
  %

  	
  

  3.75

  	
  %

  

 

; provided, that from and after the date which is six months
after the Closing Date, the Applicable Margin will be determined pursuant to
the Pricing Grid.

 

“Application”: an application, in such form as
the Issuing Lender may specify from time to time, requesting the Issuing Lender
to open a Letter of Credit.

 

“Approved Fund”: with respect to any Lender
that is a fund that invests in commercial loans, any other fund that invests in
commercial loans and is managed or advised by the same investment advisor as
such Lender or by an Affiliate of such investment advisor.

 

“Asset Sale”: any Disposition of Property or
series of related Dispositions of Property (excluding any such Disposition
permitted by clause (a), (b), (c) or (d) of Section 7.5) that yields gross
proceeds to the Borrower or any of its Subsidiaries (valued at the initial
principal amount thereof in the case of non-cash proceeds consisting of notes
or other debt and valued at fair market value in the case of other non-cash
proceeds) in excess of $1,000,000.

 

“Assignee”: as defined in Section 10.6(c).

 

“Assignment and Acceptance”: an Assignment and
Acceptance, substantially in the form of Exhibit D.

 

“Assignor”: as defined in Section 10.6(c).

 

“Available Revolving Commitment”: as to any
Revolving Lender at any time, an amount equal to the excess, if any, of (a)
such Lender’s Revolving Commitment then in effect over (b) such Lender’s
Revolving Extensions of Credit then outstanding; provided, that in
calculating any Lender’s Revolving Extensions of Credit for the purpose of
determining such Lender’s Available Revolving Commitment pursuant to Section
2.8(a), the aggregate principal amount of Swingline Loans then outstanding
shall be deemed to be zero.

 

“Base Rate”: for any day, a rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of
(a) the Prime Rate in effect on such day and (b) the Federal Funds Effective
Rate in effect on such day plus 0.50%. For purposes hereof: “Prime
Rate” shall mean the rate of interest per annum publicly announced from
time to time by the Reference Lender as its prime rate in effect at its
principal office in Charlotte, North Carolina (the Prime Rate not being
intended to be the lowest rate of interest charged by the Reference Lender in
connection with extensions of credit to debtors). Any change in the Base Rate
due to a change in the Prime Rate or the Federal Funds Effective

 

2

 

Rate shall be effective
as of the opening of business on the effective day of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively.

 

“Base Rate Loans”: Loans the rate of interest applicable
to which is based upon the Base Rate.

 

“Benefitted Lender”: as defined in Section
10.7(a).

 

“Board”: the Board of Governors of the Federal
Reserve System of the United States (or any successor).

 

“Borrower”: as defined in the preamble to this
Agreement.

 

“Borrowing Date”: any Business Day specified by
the Borrower as a date on which the Borrower requests the relevant Lenders to
make Loans hereunder.

 

“Bridge Loan Agreement”: the Loan Agreement,
dated as of September 1, 1999, among the Borrower, Inamed Acquisition
Corporation, the lenders from time to time parties thereto and Ableco Finance
LLC, as administrative agent.

 

“Business”: as defined in Section 4.17(b).

 

“Business Day”: a day other than a Saturday,
Sunday or other day on which commercial banks in New York City or Charlotte,
North Carolina are authorized or required by law to close; provided,
that with respect to notices and determinations in connection with, and
payments of principal and interest on, Eurodollar Loans, such day is also a day
for trading by and between banks in Dollar deposits in the interbank eurodollar
market.

 

“Capital Expenditures”: for any period, with
respect to any Person, the aggregate of all expenditures by such Person and its
Subsidiaries for the acquisition or leasing (pursuant to a capital lease) of
fixed or capital assets or additions to equipment (including replacements,
capitalized repairs and improvements during such period) that should be
capitalized under GAAP on a consolidated balance sheet of such Person and its
Subsidiaries.

 

“Capital Lease Obligations”: as to any Person,
the obligations of such Person to pay rent or other amounts under any lease of
(or other arrangement conveying the night to use) real or personal property, or
a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP
and, for the purposes of this Agreement, the amount of such obligations at any
time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.

 

“Capital Stock”: any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than
a corporation) and any and all warrants, rights or options to purchase any of
the foregoing.

 

“Cash Equivalents”: (a) marketable direct
obligations issued by, or unconditionally guaranteed by, the United States
Government or issued by any agency thereof and backed by the full faith and
credit of the United States, in each case maturing within one year from the
date of acquisition; (b) certificates of deposit, time deposits, eurodollar
time deposits or overnight bank deposits having

 

3

 

maturities of six months or less from the date of acquisition issued by
any Lender or by any commercial bank organized under the laws of the United
States or any state thereof having combined capital and surplus of not less
than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by
Standard & Poor’s Ratings Services (“S&P”) or P-1 by Moody’s
Investors Service, Inc. (“Moody’s”), or carrying an equivalent rating by
a nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of commercial paper issuers generally, and maturing
within six months from the date of acquisition; (d) repurchase obligations of
any Lender or of any commercial bank satisfying the requirements of clause (b) of
this definition, having a term of not more than 30 days, with respect to
securities issued or fully guaranteed or insured by the United States
government; (e) securities with maturities of one year or less from the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory
of the United States, by any political subdivision or taxing authority of any
such state, commonwealth or territory or by any foreign government, the
securities of which state, commonwealth, territory, political subdivision,
taxing authority or foreign government (as the case may be) are rated at least
A by S&P or A by Moody’s; (f) securities with maturities of six months or
less from the date of acquisition
backed by standby letters of credit issued by any Lender or any
commercial bank satisfying the requirements of clause (b) of this definition;
or (g) shares of money market mutual or similar funds which invest exclusively
in assets satisfying the requirements of clauses (a) through (f) of this
definition.

 

“Cash In–License Fees”: for any period,
with respect to any Person, the aggregate expenditures by such Person and its
Subsidiaries for the right to sell, use, market and/or distribute the products
of another Person, but only to the extent that such expenditures would be
required to be capitalized under GAAP on a consolidated balance sheet of such
Person and its Subsidiaries.

 

“Closing Date”: the date on which the
conditions precedent set forth in Section 5.1 shall have been satisfied, which
date is February 1, 2000.

 

“Code”: the Internal Revenue Code of 1986, as
amended from time to time.

 

“Collateral”: all property of the Loan Parties,
now owned or hereafter acquired, upon which a Lien is purported to be created
by any Security Document.

 

“Commitment”: as to any Lender, the sum of the
Term Commitment and the Revolving Commitment of such Lender.

 

“Commitment Fee Rate”: 0.50% per annum.

 

“Commonly Controlled Entity”: an entity,
whether or not incorporated, that is under common control with the Borrower
within the meaning of Section 4001 of ERISA or is part of a group that includes
the Borrower and that is treated as a single employer under Section 414 of the
Code.

 

“Compliance Certificate”: a certificate
duly executed by a Responsible Officer substantially in the form of Exhibit B.

 

“Conduit Lender”: any special purpose entity
organized and administered by any Lender for the purpose of making Loans
hereunder otherwise required to be made by such Lender and designated by such
Lender in a written instrument, subject to the consent of the Administrative
Agent and the Borrower; provided, that the designation by any Lender of
a Conduit Lender shall not relieve the designating Lender of any of its
obligations to fund a Loan under this Agreement if, for any reason, its Conduit
Lender fails to fund any such Loan, and the designating Lender (and not the
Conduit Lender)

 

4

 

shall have the sole right and responsibility to
deliver all consents and waivers required or requested under this Agreement
with respect to its Conduit Lender, and provided, further, that
no Conduit Lender shall (a) be entitled to receive any greater amount pursuant
to Section 2.18, 2.19, 2.20 or 10.5 than the designating Lender would have been
entitled to receive in respect of the extensions of credit made by such Conduit
Lender or (b) be deemed to have any Commitment hereunder.

 

“Confidential Information Memorandum”: the
Confidential Information Memorandum dated January 2000 and furnished to the
Lenders.

 

“Consolidated Domestic Current Assets”: at any
date, all amounts (other than cash and Cash Equivalents) that would, in
conformity with GAAP, be set forth opposite the caption “total current assets”
(or any like caption) on a consolidated balance sheet of the Borrower and its
Domestic Subsidiaries at such date.

 

“Consolidated Domestic Current Liabilities”: at
any date, all amounts that would, in conformity with GAAP, be set forth
opposite the caption “total current liabilities” (or any like caption) on a consolidated balance sheet of the Borrower
and its Domestic Subsidiaries at such date, but excluding (a) the current
portion of any Funded Debt of the Borrower and its Domestic Subsidiaries and
(b) without duplication of clause (a) above, all Indebtedness consisting of
Revolving Loans or Swingline Loans to the extent otherwise included therein.

 

“Consolidated Domestic Net Income”: for any
period, the consolidated net income (or loss) of the Borrower and the Domestic
Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided
that there shall be excluded (a) the income (or deficit) of any Person accrued
prior to the date it becomes a Domestic Subsidiary or is merged into or
consolidated with the Borrower or any other Domestic Subsidiary, (b) the income
(or deficit) of any Person (other than a Domestic Subsidiary) in which the
Borrower or any Domestic Subsidiary has an ownership interest, except to the
extent that any such income is actually received by the Borrower or such
Domestic Subsidiary in the form of dividends or similar distributions and (c)
the undistributed earnings of any Domestic Subsidiary to the extent that the
declaration or payment of dividends or similar distributions by such Domestic
Subsidiary is not at the time permitted by the terms of any Contractual
Obligation (other than under any Loan Document) or Requirement of Law
applicable to such Domestic Subsidiary.

 

“Consolidated Domestic Working Capital”: at any
date, the excess of Consolidated Domestic Current Assets on such date over
Consolidated Domestic Current Liabilities on such date.

 

“Consolidated EBITDA”: for any period,
Consolidated Net Income for such period plus, without duplication and to
the extent reflected as a charge in the statement of such Consolidated Net Income
for such period, the sum of (a) income or franchise tax expense (whether
federal, state, local, foreign or otherwise), (b) interest expense,
amortization or writeoff of debt discount and debt issuance costs and
commissions, discounts and other fees and charges associated with Indebtedness
(including the Loans), (c) depreciation and amortization expense, (d)
amortization of intangibles (including, but not limited to, goodwill) and
organization costs and (e) any other non-cash charges, and minus, to the
extent included in the statement of such Consolidated Net Income for such
period, any other non-cash income, all as determined on a consolidated basis.
For the purposes of calculating Consolidated EBITDA for any period of four
consecutive fiscal quarters (each, a “Reference Period”) pursuant to any
determination of the Consolidated Leverage Ratio, (i) if at any time during
such Reference Period the Borrower or any Subsidiary shall have made any
Material Disposition, the Consolidated EBITDA for such Reference Period shall
be reduced by an amount equal to the Consolidated EBITDA (if positive)
attributable to the property that is the subject of such Material Disposition
for such Reference Period or increased by an

 

5

 

amount equal to the Consolidated EBITDA (if negative) attributable
thereto for such Reference Period and (ii) if during such Reference Period the
Borrower or any Subsidiary shall have made a Material Acquisition, Consolidated
EBITDA for such Reference Period shall be calculated after giving pro  forma
effect thereto as if such Material Acquisition occurred on the first day of
such Reference Period. As used in this definition. “Material Acquisition”
means any acquisition of property or series of related acquisitions of property
that (a) constitutes assets comprising all or substantially all of an operating
unit of a business or constitutes all or substantially all of the common stock
of a Person and (b) involves the payment of consideration by the Borrower and
its Subsidiaries in excess of $500,000; and “Material  Disposition”
means any Disposition of property or series of related Dispositions of property
that yields gross proceeds to the Borrower or any of its Subsidiaries in excess
of $500,000.

 

“Consolidated Fixed Charge Coverage Ratio”: for
any period, the ratio of (a) Consolidated EBITDA for such period less
Cash In-License Fees for such period to (b) Consolidated Fixed Charges for such
period.

 

“Consolidated Fixed Charges”: for any period,
the sum (without duplication) of (a) Consolidated Interest Expense for such
period, (b) the aggregate amount actually paid by the Borrower and its
Subsidiaries during such period on account of Capital Expenditures (excluding
the principal amount of Indebtedness incurred during such period to finance
such expenditures, but including repayment of any such Indebtedness during such
period), (c) scheduled principal payments in respect of the Term Loans and (d)
cash income taxes paid by the Borrower and its Subsidiaries during such period.

 

“Consolidated Funded Debt”: at any date, the
aggregate principal amount of all Funded Debt of the Borrower and its
Subsidiaries at such date, determined on a consolidated basis in accordance
with GAAP.

 

“Consolidated Interest Expense”: for any period, total cash interest expense (including
that attributable to Capital Lease Obligations) of the Borrower and its
Subsidiaries for such period with respect to all outstanding Indebtedness of
the Borrower and its Subsidiaries (including all commissions, discounts and
other fees and charges owed with respect to letters of credit and bankers’
acceptance financing and net costs under Hedge Agreements in respect of
interest rates to the extent such net costs are allocable to such period in
accordance with GAAP); provided that for the purpose of calculating the Consolidated Fixed Charge
Coverage Ratio, Consolidated Interest Expense shall be calculated giving pro
forma effect to the Loans to be made on the Closing Date and the use of
the proceeds thereof to consummate the Refinancing, as if such events had
occurred on October 1, 1999.

 

“Consolidated Leverage Ratio”: as at the last
day of any period, the ratio of (a) Consolidated Funded Debt on such day to (b)
Consolidated EBITDA less Cash In-License Fees for such period.

 

“Consolidated Net Income”: for any period, the
consolidated net income (or loss) of the Borrower and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP; provided
that there shall be excluded (a) the income (or deficit) of any Person accrued
prior to the date it becomes a Subsidiary of the Borrower or is merged into or
consolidated with the Borrower or any of its Subsidiaries, (b) the income (or
deficit) of any Person (other than a Subsidiary of the Borrower) in which the
Borrower or any of its Subsidiaries has an ownership interest, except to the
extent that any such income is actually received by the Borrower or such
Subsidiary in the form of dividends or similar distributions and (c) the
undistributed earnings of any Subsidiary of the Borrower to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary
is not at the time

 

6

 

permitted by the terms of any Contractual Obligation
(other than under any Loan Document) or Requirement of Law applicable to such
Subsidiary.

 

“Consolidated Net Worth”: at any date, all
amounts that would, in conformity with GAAP, be included on a consolidated
balance sheet of the Borrower and its Subsidiaries under stockholders’ equity
at such date.

 

“Consolidated Total Debt”: at any date, the
aggregate principal amount of all Indebtedness of the Borrower and its
Subsidiaries at such date, determined on a consolidated basis in accordance
with GAAP.

 

“Continuing Directors”: the directors of the
Borrower on the Closing Date, and each other director, if, in each case, such
other director’s nomination for election to the board of directors of the
Borrower is recommended by at least a majority of the then Continuing
Directors.

 

“Contractual Obligation”: as to any Person, any
provision of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is a party or by which it or any of
its property is bound.

 

“Default”: any of the events specified in
Section 8, whether or not any requirement for the giving of notice, the lapse
of time, or both, has been satisfied.

 

“Disposition”: with respect to any Property,
any sale, lease, sale and leaseback, assignment, conveyance, transfer or other
disposition thereof. The terms “Dispose” and “Disposed of” shall
have correlative meanings.

 

“Documentation Agent”: as defined in the
preamble to this Agreement.

 

“Dollars” and “$”: dollars in lawful
currency of the United States.

 

“Domestic Subsidiary”: any Subsidiary of the
Borrower organized under the laws of any jurisdiction within the United States.

 

“Environmental Laws”: any and all foreign,
Federal, state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, requirements of any Governmental Authority or other
Requirements of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning 
protection of human health
or the environment, as now or may at any time hereafter be in effect.

 

“ERISA”: the Employee Retirement Income
Security Act of 1974, as amended from time to time.

 

“Eurocurrency Reserve Requirements”: for any
day as applied to a Eurodollar Loan, the aggregate (without duplication) of the
maximum rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including basic, supplemental, marginal and emergency
reserves under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto) dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

 

7

 

“Eurodollar Base Rate”:
with respect to each day during each Interest Period pertaining to a Eurodollar
Loan, the rate per annum determined on the basis of the rate for deposits in
Dollars for a period equal to such Interest Period commencing on the first day
of such Interest Period appearing on Page 3750 of the Dow Jones Markets screen
as of 11:00 A.M., London time, two Business Days prior to the beginning of such
Interest Period. In the event that such rate does not appear on Page 3750 of the
Dow Jones Markets screen (or otherwise on such screen), the “Eurodollar Base
Rate” shall be determined by reference to such other comparable publicly
available service for displaying eurodollar rates as may be selected by the
Administrative Agent or, in the absence of such availability, by reference to
the rate at which the Administrative Agent is offered Dollar deposits at or
about 11:00 A.M., Charlotte, North Carolina time, two Business Days prior to
the beginning of such Interest Period in the interbank eurodollar market where
its eurodollar and foreign currency and exchange operations are then being
conducted for delivery on the first day of such Interest Period for the number
of days comprised therein.

 

“Eurodollar Loans”:
Loans the rate of interest applicable to which is based upon the Eurodollar
Rate.

 

“Eurodollar Rate”:
with respect to each day during each Interest Period pertaining to a Eurodollar
Loan, a rate per annum determined for such day in accordance with the following
formula (rounded upward to the nearest 1/100th of 1%):

 

	
  Eurodollar Base Rate

  
	
  1.00 - Eurocurrency
  Reserve Requirements

  

 

“Eurodollar Tranche”:
the collective reference to Eurodollar Loans under a particular Facility the
then current Interest Periods with respect to all of which begin on the same
date and end on the same later date (whether or not such Loans shall originally
have been made on the same day).

 

“Event of Default”:
any of the events specified in Section 8, provided that any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.

 

“Excess Cash Flow
Percentage”: 50%.

 

“Excess Domestic Cash
Flow”: for any fiscal year of the Borrower, the excess, if any, of (a) the
sum, without duplication, of (i) Consolidated Domestic Net Income for such fiscal
year, (ii) an amount equal to the amount of all non-cash charges (including depreciation and amortization) deducted in
arriving at such Consolidated Domestic Net Income, (iii) decreases in
Consolidated Domestic Working Capital
for such fiscal year, and (iv) an amount equal to the aggregate net
non-cash loss on the Disposition of Property by the Borrower and the Subsidiary
Guarantors during such fiscal year (other than sales of inventory in the
ordinary course of business), to the extent deducted in arriving at such
Consolidated Domestic Net Income over (b) the sum, without duplication,
of (i) an amount equal to the amount of all non-cash credits included in
arriving at such Consolidated Domestic Net Income, (ii) the aggregate amount
actually paid by the Borrower and the Subsidiary Guarantors in cash during such
fiscal year on account of Capital Expenditures (excluding the principal amount
of Indebtedness incurred to finance such expenditures and any such expenditures
financed with the proceeds of any Reinvestment Deferred Amount, but including
repayment of any such Indebtedness during such fiscal year), (iii) the
aggregate amount of all prepayments of Revolving Loans and Swingline Loans
during such fiscal year to the extent accompanying permanent optional
reductions of the Revolving Commitments and all optional prepayments of the
Term Loans during such fiscal year, (iv) the aggregate amount of all regularly
scheduled principal payments of Funded Debt (including the Term Loans) of the
Borrower and the Subsidiary Guarantors made during such fiscal year (other than
in respect of any revolving credit facility

 

8

 

to the extent there is
not an equivalent permanent reduction in commitments thereunder), (v) increases
in Consolidated Domestic Working Capital for such fiscal year, and (vi) an
amount equal to the aggregate net non-cash gain on the Disposition of Property
by the Borrower and the Subsidiary Guarantors during such fiscal year (other
than sales of inventory in the ordinary course of business), to the extent
included in arriving at such Consolidated Domestic Net Income.

 

“Excess Domestic Cash
Flow Application Date”: as defined in Section 2.11 (c).

 

“Excluded Foreign
Subsidiary”: McGhan Medical Mexico, S.A. de C.V., a corporation organized
under the laws of Mexico, McGhan Medical Asia/Pacific Ltd., a corporation
organized under the laws of Hong Kong, Bioenterics Latin America S.A. de C.V.,
a corporation organized under the laws of Mexico, Biodermis Limited, a corporation
organized under the laws of Ireland, Bioplexus Limited, a corporation organized
under the laws of Ireland, Collagen Scandinavia A/S, a corporation organized
under the laws of Denmark, Collagen Luxembourg S.A., a corporation organized
under the laws of Luxembourg and Collagen B.V., a corporation organized under
the laws of the Netherlands.

 

“Facility”: each
of (a) the Term Commitments and the Term Loans made thereunder (the “Term
Facility”) and (d) the Revolving Commitments and the extensions of credit
made thereunder (the “Revolving
Facility”).

 

“Federal Funds
Effective Rate”: for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average of the quotations for
the day of such transactions received by the Reference Lender from three
federal funds brokers of recognized standing selected by it.

 

“Foreign Subsidiary”:
any Subsidiary of the Borrower that is not a Domestic Subsidiary.

 

“Funded Debt”: as
to any Person, all Indebtedness of such Person that matures more than one year
from the date of its creation or matures within one year from such date but is
renewable or extendible, at the option of such Person, to a date more than one
year from such date or arises under a revolving credit or similar agreement
that obligates the lender or lenders to extend credit during a period of more
than one year from such date, including all current maturities and current
sinking fund payments in respect of such Indebtedness whether or not required
to be paid within one year from the date of its creation and, in the case of
the Borrower, Indebtedness in respect of the Loans, but excluding obligations
in respect of undrawn letters of credit.

 

“Funding Office”:
the office of the Administrative Agent specified in Section 10.2 or such other
office as may be specified from time to time by the Administrative Agent as its
funding office by written notice to the Borrower and the Lenders.

 

“GAAP”: generally
accepted accounting principles in the United States as in effect from time to
time, except that for purposes of Section 7.1, GAAP shall be determined on the
basis of such principles in effect on the date hereof and consistent with those
used in the preparation of the most recent audited financial statements
referred to in Section 4.1(b). In the event that any “Accounting Change” (as
defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Borrower and the Administrative Agent (on behalf of the Required Lenders)
agree to enter into negotiations in order to amend such provisions of this
Agreement so as to equitably reflect such Accounting Changes with the desired
result that the criteria for

 

9

 

evaluating the Borrower’s financial condition shall be the same after
such Accounting Changes as if such Accounting Changes had not been made. Until
such time as such an amendment shall have been executed and delivered by the
Borrower, the Administrative Agent and the Required Lenders, all financial
covenants, standards and terms in this Agreement shall continue to be
calculated or construed as if such Accounting Changes had not occurred. “Accounting
Changes” refers to changes in accounting principles required by the promulgation
of any rule, regulation, pronouncement or opinion by the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants or,
if applicable, the SEC.

 

“Governmental
Authority”: any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative functions of or pertaining to
government, any securities exchange and any self-regulatory organization
(including the National Association of Insurance Commissioners).

 

“Guarantee and
Collateral Agreement”: the Guarantee and Collateral Agreement to be
executed and delivered by the Borrower and each Subsidiary Guarantor as of the
date hereof, substantially in the form of Exhibit A, as the same may be
amended, supplemented or otherwise modified from time to time.

 

“Guarantee Obligation”:
as to any Person (the “guaranteeing person”), any obligation of (a) the
guaranteeing person or (b) another Person (including any bank under any letter
of credit) to induce the creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case
guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or
other obligations (the “primary obligations”) of any other third Person
(the “primary obligor”) in any manner, whether directly or indirectly,
including any obligation of the guaranteeing person, whether or not contingent,
(i) to purchase any such primary obligation or any property constituting direct
or indirect security therefor, (ii) to advance or supply funds (1) for the
purchase or payment of any such primary obligation or (2) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency of the primary obligor, (iii) to purchase property,
securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv)
otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof, provided, however, that the term
Guarantee Obligation shall not include endorsements of instruments for deposit
or collection in the ordinary course of business. The amount of any Guarantee
Obligation of any guaranteeing person shall be deemed to be the lower of (a) an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee Obligation is made and (b) the maximum amount
for which such guaranteeing person may be liable pursuant to the terms of the
instrument embodying such Guarantee Obligation, unless such primary obligation
and the maximum amount for which such guaranteeing person may be liable are not
stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person’s maximum reasonably anticipated liability in
respect thereof as determined by the Borrower in good faith.

 

“Hedge Agreements”:
all interest rate swaps, caps or collar agreements or similar arrangements
dealing with interest rates or currency exchange rates or the exchange of
nominal interest obligations, either generally or under specific contingencies.

 

“Indebtedness”: of
any Person at any date, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person for the deferred
purchase price of property or services (other than current trade payables
incurred in the ordinary course of such Person’s

 

10

 

business), (c) all obligations of such Person evidenced by notes,
bonds. debentures or other similar instruments, (d) all indebtedness created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (e) all Capital Lease
Obligations of such Person, (f) all obligations of such Person, contingent or
otherwise, as an account party or applicant under or in respect of acceptances,
letters of credit, surety bonds or similar arrangements, (g) the liquidation
value of all redeemable preferred Capital Stock of such Person, (h) all
Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (g) above, (i) all obligations of the kind
referred to in clauses (a) through (h) above secured by (or for which the
holder of such obligation has an existing night, contingent or otherwise, to be
secured by) any Lien on property (including accounts and contract rights) owned
by such Person, whether or not such Person has assumed or become liable for the
payment of such obligation, and (j) for the purposes of Sections 7.2 and 8(e)
only, all obligations of such Person in respect of Hedge Agreements. The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness expressly provide that such Person is not liable
therefor.

 

“Insolvency”: with respect to any Multiemployer
Plan, the condition that such Plan is insolvent within the meaning of Section
4245 of ERISA.

 

“Insolvent”: pertaining to a condition of
Insolvency.

 

“Intellectual Property”: the collective
reference to all rights, priorities and privileges relating to intellectual
property, whether arising under United States, multinational or foreign laws or
otherwise, including copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all
rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom.

 

“Interest Payment Date”: (a) as to any Base
Rate Loan, the last day of each March, June, September and December to occur
while such Loan is outstanding and the final maturity date of such Loan, (b) as
to any Eurodollar Loan having an Interest Period of three months or less, the
last day of such Interest Period, (c) as to any Eurodollar Loan having an
Interest Period longer than three months, each day that is three months, or a
whole multiple thereof, after the first day of such Interest Period and the
last day of such Interest Period and (d) as to any Loan (other than any
Revolving Loan that is a Base Rate Loan and any Swingline Loan), the date of
any repayment or prepayment made in respect thereof.

 

“Interest Period”: as to any Eurodollar Loan,
(a) initially, the period commencing on the borrowing or conversion date, as
the case may be, with respect to such Eurodollar Loan and ending one, two,
three or six months thereafter, as selected by the Borrower in its notice of
borrowing or notice of conversion, as the case may be, given with respect
thereto; and (b) thereafter, each period commencing on the last day of the next
preceding Interest Period applicable to such Eurodollar Loan and ending one,
two, three or six months thereafter, as selected by the Borrower by irrevocable
notice to the Administrative Agent not less than three Business Days prior to
the last day of the then current Interest Period with respect thereto; provided
that, all of the foregoing provisions relating to Interest Periods are subject
to the following:

 

(i) if any
Interest Period would otherwise end on a day that is not a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
the result

 

11

 

of such extension would
be to carry such Interest Period into another calendar month in which event
such Interest Period shall end on the immediately preceding Business Day:

 

(ii) the Borrower
may not select an Interest Period under a particular Facility that would extend
beyond the Revolving Termination Date or beyond the date final payment is due
on the Term Loans, as applicable;

 

(iii) any Interest
Period that begins on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last Business Day of a
calendar month; and

 

(iv) the Borrower
shall select Interest Periods so as not to require a payment or prepayment of
any Eurodollar Loan during an Interest Period for such Loan.

 

“Investments”: as defined in Section 7.8.

 

“Issuing Lender”: First Union National Bank, in
its capacity as issuer of any Letter of Credit.

 

“L/C Commitment”: $25,000,000.

 

“L/C Fee Payment Date”: the last day of each
March, June, September and December and the last day of the Revolving
Commitment Period.

 

“L/C Obligations”: at any time, an amount equal
to the sum of (a) the aggregate then undrawn and unexpired amount of the then
outstanding Letters of Credit and (b) the aggregate amount of drawings under
Letters of Credit that have not then been reimbursed pursuant to Section 3.5.

 

“L/C Participants”: the collective reference to
all the Revolving Lenders other than the Issuing Lender.

 

“Lead Arranger”: as defined in the recitals to
this Agreement.

 

“Lenders”: as defined in the preamble hereto; provided,
that unless the context otherwise requires, each reference herein to the
Lenders shall be deemed to include any Conduit Lender.

 

“Letters of Credit”: as defined in Section
3.1(a).

 

“Lien”: any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), charge
or other security interest or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any
capital lease having substantially the same economic effect as any of the
foregoing).

 

“Loan”: any loan made by any Lender pursuant to
this Agreement.

 

“Loan Documents”: this Agreement, the Security
Documents and the Notes.

 

“Loan Parties”: the Borrower and each
Subsidiary of the Borrower that is a party to a Loan Document.

 

12

 

“Majority Facility Lenders”: with respect to
any Facility the holders of more than 50% of the aggregate unpaid principal
amount of the Term Loans or the Total Revolving Extensions of Credit, as the
case may be, outstanding under such Facility (or, in the case of the Revolving
Facility, prior to any termination of the Revolving Commitments, the holders of
more than 50% of the Total Revolving Commitments).

 

“Material Adverse Effect”: a material adverse
effect on (a) the Refinancing, (b) the business, assets, property, results of
operations, condition (financial or otherwise) or prospects of the Borrower and
its Subsidiaries taken as a whole or (c) the validity or enforceability of this
Agreement or any of the other Loan Documents or the rights or remedies of the
Agents or the Lenders hereunder or thereunder.

 

“Materials of Environmental Concern”: any
gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products or any hazardous or toxic substances, materials or wastes,
defined or regulated as such in or under any Environmental Law, including
asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

 

“Multiemployer Plan”: a Plan that is a
multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Net Cash Proceeds”: (a) in connection with any
Asset Sale or any Recovery Event, the proceeds thereof in the form of cash and
Cash Equivalents (including any such proceeds received by way of deferred
payment of principal pursuant to a note or installment receivable or purchase
price adjustment receivable or otherwise, but only as and when received) of
such Asset Sale or Recovery Event, net of attorneys’ fees, accountants’ fees,
investment banking fees, recording fees, title transfer fees, appraisal fees, sales
commissions, amounts required to be applied to the repayment of Indebtedness secured by a Lien expressly
permitted hereunder on any asset that is the subject of such Asset Sale or
Recovery Event (other than any Lien pursuant to a Security Document) and other
customary fees and expenses actually incurred in connection therewith and net
of taxes paid or reasonably estimated to be payable as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing
arrangements) and (b) in connection with any issuance or sale of Capital Stock
or any incurrence of Indebtedness, the cash proceeds received from such
issuance or incurrence, net of attorneys’ fees, investment banking fees,
accountants’ fees, underwriting discounts and commissions and other customary
fees and expenses actually incurred in connection therewith.

 

“Non-Excluded Taxes”: as defined in Section
2.19(a).

 

“Non-U.S. Lender”: as defined in Section
2.19(d).

 

“Notes”: the collective reference to any
promissory note evidencing Loans.

 

“Obligations”: the unpaid principal of and
interest on (including interest accruing after the maturity of the Loans and
Reimbursement Obligations and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the Loans
and all other obligations and liabilities of the Borrower to any Agent or to
any Lender (or, in the case of Specified Hedge Agreements, any affiliate of any
Lender), whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or
in connection with, this Agreement, any other Loan Document, the Letters of
Credit, any Specified Hedge Agreement entered into with any Agent or Lender or
any affiliate of any

 

13

 

Agent or Lender or any other document made, delivered or given in
connection herewith or therewith, whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses (including all
fees, charges and disbursements of counsel to any Agent or to any Lender that
are required to be paid by the Borrower pursuant hereto) or otherwise; provided,
that (i) obligations of the Borrower or any Subsidiary under any Specified
Hedge Agreement shall be secured and guaranteed pursuant to the Security
Documents only to the extent that, and for so long as, the other Obligations
are so secured and guaranteed and (ii) any release of Collateral or Guarantors
effected in the manner permitted by this Agreement shall not require the
consent of holders of obligations under Specified Hedge Agreements.

 

“Other Taxes”: any
and all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made
hereunder or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document.

 

“Participant”: as
defined in Section 10.6(b).

 

“Permitted Acquisition”:
any Acquisition by the Borrower or any of its Subsidiaries, provided
that (a) no Default or Event of Default shall have occurred and be continuing
or would result therefrom, (b) the assets or Person acquired shall be in the
same or similar line of business to the business of the Borrower, (c) the
Borrower shall have delivered at least five days prior to the consummation of such
Acquisition, a certificate of its chief financial officer to the Administrative
Agent demonstrating compliance on a pro forma basis with the covenants set
forth in Section 7.1 as if such Acquisition had been consummated at the
beginning of the relevant period, (d) such Acquisition is initiated and
consummated on a friendly basis and approved by the Board of Directors of the
target, (e) the cash consideration (including Acquired Debt) for any such
Acquisition does not exceed $5,000,000 and the aggregate cash consideration
(including Acquired Debt) for all such Acquisitions does not exceed $25,000,000
during the term of this Agreement, (f) the aggregate stock consideration
(valued at fair market value on the date of such Acquisition) for all such
Acquisitions does not exceed $25,000,000 during the term of this Agreement and
(g) any Person which becomes a Domestic Subsidiary as a result of such
Acquisition shall become a Subsidiary Guarantor.

 

“PBGC”: the
Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA (or any successor).

 

“Permitted Investors”:
Appaloosa Management, L.P. and its Affiliates.

 

“Person”: an
individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

 

“Plan”: at a
particular time, any employee benefit plan that is covered by ERISA and in
respect of which the Borrower or a Commonly Controlled Entity is (or, if such
plan were terminated at such time, would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pricing Grid”:
the pricing grid attached hereto as Annex A.

 

“Prime Rate”: as
defined in the definition of “Base Rate.”

 

“Pro Forma Balance
Sheet”: as defined in Section 4.1(a).

 

14

 

“Projections”:
as defined in Section 6.2(c).

 

“Properties”:
as defined in Section 4.17(a).

 

“Property”:
any right or interest in or to property of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible, including, without
limitation, Capital Stock.

 

“Recovery Event”:
any settlement of or payment in respect of any property or casualty insurance
claim or any condemnation proceeding relating to any asset of the Borrower or
any of its Subsidiaries.

 

“Reference
Lender”: the Administrative Agent.

 

“Refinancing”:
as defined in Section 5.1(b).

 

“Refunded
Swingline Loans”: as defined in Section 2.7.

 

“Refunding Date”:
as defined in Section 2.7.

 

“Register”
: as defined in Section 10.6(d).

 

“Regulation U”:
Regulation U of the Board as in effect from time to time.

 

“Reimbursement
Obligation”: the obligation of the Borrower to reimburse the Issuing Lender
pursuant to Section 3.5 for amounts drawn under Letters of Credit.

 

“Reinvestment
Deferred Amount”: with respect to any Reinvestment Event, the aggregate Net
Cash Proceeds received by the Borrower or any of its Subsidiaries in connection
therewith that are not applied to prepay the Term Loans pursuant to Section
2.11(b) as a result of the delivery of a Reinvestment Notice.

 

“Reinvestment
Event”: any Recovery Event in respect of which the Borrower has delivered a
Reinvestment Notice.

 

“Reinvestment
Notice”: a written notice executed by a Responsible Officer stating that no
Event of Default has occurred and is continuing and that the Borrower (directly
or indirectly through a Subsidiary) intends and expects to use all or a
specified portion of the Net Cash Proceeds of a Recovery Event to repair the
assets which were the subject of such Recovery Event or to acquire new assets
which are substitutes for, and are similar to, the assets which were the
subject of such Recovery Event.

 

“Reinvestment
Prepayment Amount”: with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to
the relevant Reinvestment Prepayment Date to acquire or repair fixed or capital
assets useful in the Borrower’s business.

 

“Reinvestment Prepayment
Date”: with respect to any Reinvestment Event, the earlier of (a) the date
occurring six months after such Reinvestment Event and (b) the date on which
the Borrower shall have determined not to, or shall have otherwise ceased to,
acquire or repair fixed or capital assets useful in the Borrower’s business
with all or any portion of the relevant Reinvestment Deferred Amount.

 

15

 

“Reorganization”: with respect to any
Multiemployer Plan, the condition that such plan is in reorganization within
the meaning of Section 4241 of ERISA.

 

“Reportable Event”: any of the events set forth
in Section 4043(b) of ERISA, other than those events as to which the thirty day
notice period is waived under subsections .27, .28, .29, .30, .31, .32, .34 or
..35 of PBGC Reg. § 4043.

 

“Required Lenders”: at any time, the holders of
more than 50% of (a) until the Closing Date, the Commitments then in effect and
(b) thereafter, the sum of (i) the aggregate unpaid principal amount of the
Term Loans then outstanding and (ii) the Total Revolving Commitments then in
effect or, if the Revolving Commitments have been terminated, the Total
Revolving Extensions of Credit then outstanding.

 

“Requirement of Law”: as to any Person, the
Certificate of Incorporation and By-Laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or
to which such Person or any of its property is subject.

 

“Responsible Officer”: the chief executive
officer, president or chief financial officer of the Borrower, but in any
event, with respect to financial matters, the chief financial officer of the
Borrower.

 

“Restricted Payments”: as defined in Section
7.6.

 

“Revolving Commitment”: as to any Lender, the
obligation of such Lender, if any, to make Revolving Loans and participate in
Swingline Loans and Letters of Credit in an aggregate principal and/or face
amount not to exceed the amount set forth under the heading “Revolving
Commitment” opposite such Lender’s name on Schedule 1.1A or in the Assignment
and Acceptance pursuant to which such Lender became a party hereto, as the same
may be changed from time to time pursuant to the terms hereof.  The original amount of the Total Revolving
Commitments is $25,000,000.

 

“Revolving Commitment Period”: the period from
and including the Closing Date to the Revolving Termination Date.

 

“Revolving Extensions of Credit”: as to any
Revolving Lender at any time, an amount equal to the sum of (a) the aggregate
principal amount of all Revolving Loans held by such Lender then outstanding,
(b) such Lender’s Revolving Percentage of the L/C Obligations then outstanding
and (c) such Lender’s Revolving Percentage of the aggregate principal amount of
Swingline Loans then outstanding.

 

“Revolving Lender”: each Lender that has a
Revolving Commitment or that holds Revolving Loans.

 

“Revolving Loans”: as defined in Section
2.4(a).

 

“Revolving Percentage”: as to any Revolving
Lender at any time, the percentage which such Lender’s Revolving Commitment
then constitutes of the Total Revolving Commitments (or, at any time after the
Revolving Commitments shall have expired or terminated, the percentage which
the aggregate amount of such Lender’s Revolving Extensions of Credit then
outstanding constitutes of the aggregate amount of the Revolving Extensions of
Credit of all the Revolving Lenders then outstanding).

 

16

 

“Revolving Termination Date”: January 31, 2005.

 

“SEC”: the Securities and Exchange Commission,
any successor thereto and any analogous Governmental Authority.

 

“Security Documents”: the collective reference
to the Guarantee and Collateral Agreement and all other security documents
hereafter delivered to the Administrative Agent granting a Lien on any property
of any Person to secure the obligations and liabilities of any Loan Party under
any Loan Document.

 

“Single Employer Plan”: any Plan that is
covered by Title IV of ERISA, but that is not a Multiemployer Plan.

 

“Solvent”: when used with respect to any
Person, means that, as of any date of determination,
(a) the amount of the “present
fair saleable value” of the assets of such Person will, as of such date,
exceed the amount of all “liabilities of such Person, contingent or otherwise”,
as of such date, as such quoted terms are determined in accordance with
applicable federal and state laws governing determinations of the insolvency of
debtors, (b) the present fair saleable value of the assets of such Person will,
as of such date, be greater than the amount that will be required to pay the
liability of such Person on its debts as such debts become absolute and
matured, (c) such Person will not have, as of such date, an unreasonably small
amount of capital with which to conduct its business, and (d) such Person will
be able to pay its debts as they mature. For purposes of this definition, (i)
“debt” means liability on a “claim”, and (ii) “claim” means any (x) right to
payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured or (y) right to an equitable remedy for
breach of performance if such breach gives rise to a right to payment, whether
or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured or unmatured, disputed, undisputed, secured or unsecured.

 

“Specified Hedge Agreement”: any Hedge
Agreement (a) entered into by (i) the Borrower or any of its Subsidiaries and
(ii) any Agent or Lender or any affiliate thereof, as counterparty and (b) that
has been designated by such Agent or Lender, as the case may be, and the
Borrower, by notice to the Administrative Agent, as a Specified Hedge
Agreement. The designation of any Hedge Agreement as a Specified Hedge
Agreement shall not create in favor of the Agent, Lender or affiliate thereof
that is a party thereto any rights in connection with the management or release
of any Collateral or of the obligations of any Guarantor under the Guarantee
and Collateral Agreement.

 

“Subsidiary”: as to any Person, a corporation,
partnership, limited liability company or other entity of which shares of stock
or other ownership interests having ordinary voting power (other than stock or
such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or
other managers of such corporation, partnership or other entity are at the time
owned, or the management of which is otherwise controlled, directly or
indirectly through one or more intermediaries, or both, by such Person. Unless
otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in
this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Subsidiary Guarantor”: each Subsidiary of the
Borrower other than any Foreign Subsidiary.

 

17

 

“Swingline Commitment”: the obligation of the
Swingline Lender to make Swingline Loans pursuant to Section 2.6 in an
aggregate principal amount at any one time outstanding not to exceed
$10,000,000.

 

“Swingline Lender”: the Administrative Agent,
in its capacity as the lender of Swingline Loans.

 

“Swingline Loans”: as defined in Section 2.6.

 

“Swingline Participation Amount”: as defined in
Section 2.7.

 

“Syndication Agent”: as defined in the preamble
to this Agreement.

 

“Term Commitment”: as to any Lender, the
obligation of such Lender, if any, to make a Term Loan to the Borrower
hereunder in a principal amount not to exceed the amount set forth under the
heading “Term Commitment” opposite such Lender’s name on Schedule 1.1A. The
original aggregate amount of the Term Commitments is $82,500,000.

 

“Term Lender”: each Lender that has a Term
Commitment or is the holder of a Term Loan.

 

“Term Loan”: as defined in Section 2.1.

 

“Term Percentage”: as to any Term Lender at any
time, the percentage which such Lender’s Term Commitment then constitutes of
the aggregate Term Commitments (or, at any time after the Closing Date, the
percentage which the aggregate principal amount of such Lender’s Term Loans
then outstanding constitutes of the aggregate principal amount of the Term
Loans then outstanding).

 

“Total Revolving Commitments”: at any time, the
aggregate amount of the Revolving Commitments then in effect.

 

“Total Revolving Extensions of Credit”: at any
time, the aggregate amount of the Revolving Extensions of Credit of the
Revolving Lenders outstanding at such time.

 

“Transferee”: any Assignee or Participant.

 

“Type”: as to any Loan, its nature as a Base
Rate Loan or a Eurodollar Loan.

 

“United States”: the United States of America.

 

“Wholly Owned Subsidiary”: as to any Person,
any other Person all of the Capital Stock of which (other than directors’
qualifying shares required by law) is owned by such Person directly and/or
through other Wholly Owned Subsidiaries.

 

“Wholly Owned Subsidiary Guarantor”: any
Subsidiary Guarantor that is a Wholly Owned Subsidiary of the Borrower.

 

1.2  Other
Definitional Provisions. (a) Unless otherwise specified therein, all
terms defined in this Agreement shall have the defined meanings when used in the
other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

 

18

 

(b) As used herein and in the other Loan Documents,
and any certificate or other document made or delivered pursuant hereto or
thereto, (i) accounting terms relating to the Borrower and its Subsidiaries not
defined in Section 1.1 and accounting terms partly defined in Section 1.1, to
the extent not defined, shall have the respective meanings given to them under
GAAP, (ii) the words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”, (iii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or
suffer to exist (and the words “incurred” and “incurrence” shall have
correlative meanings), and (iv) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, Capital Stock,
securities, revenues, accounts, leasehold interests and contract rights.

 

(c) The words “hereof”, “herein” and “hereunder” and
words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

 

(d) The meanings given to terms defined herein shall
be equally applicable to both the singular and plural forms of such terms.

 

SECTION 2. AMOUNT
AND TERMS OF COMMITMENTS

 

2.1 Term Commitments. Subject to the terms and
conditions hereof, each Term Lender severally agrees to make a term loan (a “Term
Loan”) to the Borrower on the Closing Date in an amount not to exceed the
amount of the Term Commitment of such Lender; provided that the failure
of any Lender to make any Term Loan required to be made by it shall not relieve
any other Lender of its obligations to make a Term Loan hereunder. The Term
Loans may from time to time be Eurodollar Loans or Base Rate Loans, as
determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.2
and 2.12.

 

2.2 Procedure for Term Loan Borrowing.
The Borrower shall give the Administrative Agent irrevocable written notice
(which notice must be received by the Administrative Agent prior to 10:00 A.M.,
Charlotte, North Carolina time, one Business Day prior to the anticipated
Closing Date) requesting that the Term Lenders make the Term Loans on the Closing
Date and specifying the amount to be borrowed. The Term Loans made on the
Closing Date shall initially be Base Rate Loans. Upon receipt of such notice
the Administrative Agent shall promptly notify each Term Lender thereof. Not
later than 12:00 Noon, Charlotte, North Carolina time, on the Closing Date each
Term Lender shall make available to the Administrative Agent at the Funding
Office an amount in immediately available funds equal to the Term Loan or Term
Loans to be made by such Lender. The Administrative Agent shall credit the
account of the Borrower on the books of such office of the Administrative Agent
with the aggregate of the amounts made available to the Administrative Agent by
the Term Lenders in immediately available funds.

 

2.3 Repayment of Term Loans. The Term Loan of
each Term Lender shall mature in 20 consecutive quarterly installments,
commencing on March 31, 2000, each of which shall be in an amount equal to such
Lender’s Term Percentage multiplied by the amount set forth below opposite such
installment:

 

19

 

	
  Installment

  	
   

  	
  Principal Amount

  	
   

  
	
  March 31, 2000

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  June 30, 2000

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  September 30,
  2000

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  December 31,
  2000

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  March 31, 2001

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  June 30, 2001

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  September 30,
  2001

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  December 31,
  2001

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  March 31, 2002

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  June 30, 2002

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  September 30,
  2002

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  December 31,
  2002

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  March 31, 2003

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  June 30, 2003

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  September 30,
  2003

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  December 31,
  2003

  	
   

  	
  $

  	
  206,250

  	
   

  
	
  March 31, 2004

  	
   

  	
  $

  	
  19,800,000

  	
   

  
	
  June 30, 2004

  	
   

  	
  $

  	
  19,800,000

  	
   

  
	
  September 30,
  2004

  	
   

  	
  $

  	
  19,800,000

  	
   

  
	
  January 31, 2005

  	
   

  	
  $

  	
  19,800,000

  	
   

  

 

2.4 Revolving Commitments. (a) Subject to
the terms and conditions hereof, each Revolving Lender severally agrees to make
revolving credit loans in Dollars (“Revolving Loans”) to the Borrower
from time to time during the Revolving Commitment Period in an aggregate
principal amount at any one time outstanding which, when added to such Lender’s
Revolving Percentage of the sum of (i) the L/C Obligations then outstanding and
(ii) the aggregate principal amount of the Swingline Loans then outstanding,
does not exceed the amount of such Lender’s Revolving Commitment; provided that
the failure of any Revolving Lender to make any Revolving Loan required to be
made by it shall not relieve any other Revolving Lender from its obligations to
make Revolving Loans hereunder. During the Revolving Commitment Period the
Borrower may use the Revolving Commitments by borrowing, prepaying the
Revolving Loans in whole or in part, and reborrowing, all in accordance with
the terms and conditions hereof.  The
Revolving Loans may from time to time be Eurodollar Loans or Base Rate Loans,
as determined by the Borrower and notified to the Administrative Agent in
accordance with Sections 2.5 and 2.12.

 

(b) The Borrower shall repay all outstanding Revolving
Loans on the Revolving Termination Date.

 

2.5 Procedure for Revolving Loan
Borrowing. The Borrower may borrow under the Revolving Commitments
during the Revolving Commitment Period on any Business Day, provided
that the Borrower shall give the Administrative Agent irrevocable telephonic
notice confirmed promptly in writing (which notice must be received by the
Administrative Agent prior to 12:00 Noon, Charlotte, North Carolina time, (a)
three Business Days prior to the requested Borrowing Date, in the case of
Eurodollar Loans, or (b) one Business Day prior to the requested Borrowing
Date, in the case of Base Rate Loans), specifying (i) the amount and Type of
Revolving Loans to be borrowed, (ii) the requested Borrowing Date, (iii) in the
case of Eurodollar Loans, the respective amounts of each such Type of Loan and
the respective lengths of the initial Interest Period therefor and (iv) the
location and number of the Borrower’s account to which funds are to be
distributed. If no Interest Period is specified with respect to any requested
Eurodollar Loan, then the Borrower shall be deemed to have selected an Interest
Period of

 

20

 

one month’s duration. Any Revolving Loans made on the Closing Date
shall initially be Base Rate Loans. Each borrowing under the Revolving
Commitments shall be in an amount equal to (x) in the case of Base Rate Loans,
S 1,000,000 or a whole multiple thereof (or, if the then aggregate Available
Revolving Commitments are less than S 1,000,000, such lesser amount) and (y) in
the case of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in
excess thereof; provided, that the Swingline Lender may request, on
behalf of the Borrower, borrowings under the Revolving Commitments that are
Base Rate Loans in other amounts pursuant to Section 2.7.  Upon receipt of any such notice from the
Borrower, the Administrative Agent shall promptly notify each Revolving Lender
thereof. Each Revolving Lender will make the amount of its pro  rata share
of each borrowing available to the Administrative Agent for the account of the
Borrower at the Funding Office prior to 12:00 Noon, Charlotte, North Carolina
time, on the Borrowing Date requested by the Borrower in funds immediately
available to the Administrative Agent. Such borrowing will then be made
available to the Borrower by the Administrative Agent crediting the account of
the Borrower on the books of such office with the aggregate of the amounts made
available to the Administrative Agent by the Revolving Lenders and in like
funds as received by the Administrative Agent.

 

2.6 Swingline Commitment. (a) Subject to the
terms and conditions hereof, the Swingline Lender agrees to make a portion of
the credit otherwise available to the Borrower under the Revolving Commitments
from time to time during the Revolving Commitment Period by making swing line
loans (“Swingline Loans”) to the Borrower; provided that (i) the
aggregate principal amount of Swingline Loans outstanding at any time shall not
exceed the Swingline Commitment then in effect (notwithstanding that the
Swingline Loans outstanding at any time, when aggregated with the Swingline
Lender’s other outstanding Revolving Loans hereunder, may exceed the Swingline
Commitment then in effect) and (ii) the Borrower shall not request, and the
Swingline Lender shall not make, any Swingline Loan if, after giving effect to
the making of such Swingline Loan, the aggregate amount of the Available
Revolving Commitments would be less than zero. During the Revolving Commitment
Period, the Borrower may use the Swingline Commitment by borrowing, repaying
and reborrowing, all in accordance with the terms and conditions hereof.
Swingline Loans shall be Base Rate Loans only.

 

(b) The Borrower shall repay all outstanding Swingline
Loans on the Revolving Termination Date.

 

2.7 Procedure for Swingline Borrowing;
Refunding of Swingline Loans. (a) Whenever the Borrower desires that
the Swingline Lender make Swingline Loans it shall give the Swingline Lender
and the Administrative Agent irrevocable telephonic notice confirmed promptly
in writing (which telephonic notice must be received by the Swingline Lender
not later than 1:00 P.M., Charlotte, North Carolina time, on the proposed
Borrowing Date), specifying (i) the amount to be borrowed and (ii) the
requested Borrowing Date (which shall be a Business Day during the Revolving
Commitment Period). Each borrowing under the Swingline Commitment shall be in
an amount equal to $500,000 or a whole multiple of S 100,000 in excess thereof.
Not later than 3:00 P.M., Charlotte, North Carolina time, on the Borrowing Date
specified in a notice in respect of Swingline Loans, the Swingline Lender shall
make available to the Borrower an amount in immediately available funds equal
to the amount of the Swingline Loan to be made.

 

(b) The Swingline Lender, at any time and from time to
time in its sole and absolute discretion may, on behalf of the Borrower (which
hereby irrevocably directs the Swingline Lender to act on its behalf), on one
Business Day’s notice given by the Swingline Lender no later than 12:00 Noon,
Charlotte, North Carolina time, request each Revolving Lender to make, and each
Revolving Lender hereby agrees to make, a Revolving Loan, in an amount equal to
such Revolving Lender’s Revolving Percentage of the aggregate amount of the
Swingline Loans (the “Refunded Swingline Loans”)

 

21

 

outstanding on the date of such notice, to repay the Swing1ine
Lender.  Each Revolving Lender shall in
make the amount of such Revolving Loan available to the Administrative Agent at
the Funding Office in immediately available funds, not later than 10:00 A.M.,
Charlotte, North Carolina time, one Business Day after the date of such notice.
The proceeds of such Revolving Loans shall be immediately made available by the
Administrative Agent to the Swingline Lender for application by the Swingline
Lender to the repayment of the Refunded Swingline Loans. The Borrower
irrevocably authorizes the Swingline Lender to charge the Borrower’s accounts
with the Administrative Agent (up to the amount available in each such account)
in order to immediately pay the amount of such Refunded Swingline Loans to the
extent amounts received from the Revolving Lenders are not sufficient to repay
in full such Refunded Swingline Loans.

 

(c) If prior to the time a Revolving Loan would have
otherwise been made pursuant to Section 2.7(b), one of the events described in
Section 8(f) shall have occurred and be continuing with respect to the Borrower
or if for any other reason, as determined by the Swingline Lender in its sole
discretion, Revolving Loans may not be made as contemplated by Section 2.7(b),
each Revolving Lender shall, on the date such Revolving Loan was to have been
made pursuant to the notice referred to in Section 2.7(b) (the “Refunding
Date”), purchase for cash an undivided participating interest in the then
outstanding Swingline Loans by paying to the Swingline Lender an amount (the “Swingline
Participation Amount”) equal to (i) such Revolving Lender’s Revolving
Percentage times (ii) the sum of the aggregate principal amount of
Swingline Loans then outstanding that were to have been repaid with such
Revolving Loans.

 

(d) Whenever, at any time after the Swingline Lender
has received from any Revolving Lender such Lender’s Swingline Participation
Amount, the Swingline Lender receives any payment on account of the Swingline
Loans, the Swingline Lender will distribute to such Lender its Swingline
Participation Amount (appropriately adjusted, in the case of interest payments,
to reflect the period of time during which such Lender’s participating interest
was outstanding and funded and, in the case of principal and interest payments,
to reflect such Lender’s pro  rata portion of such payment if such
payment is not sufficient to pay the principal of and interest on all Swingline
Loans then due); provided, however, that in the event that such
payment received by the Swingline Lender is required to be returned, such
Revolving Lender will return to the Swingline Lender any portion thereof
previously distributed to it by the Swingline Lender.

 

(e) Each Revolving Lender’s obligation to make the
Loans referred to in Section 2.7(b) and to purchase participating interests
pursuant to Section 2.7(c) shall be absolute and unconditional and shall not be
affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such Revolving Lender or the Borrower
may have against the Swingline Lender, the Borrower or any other Person for any
reason whatsoever; (ii) the occurrence or continuance of a Default or an Event
of Default or the failure to satisfy any of the other conditions specified in
Section 5; (iii) any adverse change in the condition (financial or otherwise)
of the Borrower; (iv) any breach of this Agreement or any other Loan Document
by the Borrower, any other Loan Party or any other Revolving Lender; or (v) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing. The Administrative Agent shall notify the Borrower of any
Refunded Swingline Loans made in accordance with Section 2.7(b) or any
participating interests purchased in accordance with Section 2.7(c).

 

2.8  Commitment Fees, etc. (a) The Borrower
agrees to pay to the Administrative Agent for the account of each Revolving
Lender a commitment fee for the period from and including the Closing Date to
the last day of the Revolving Commitment Period, computed at the Commitment Fee
Rate on the average daily amount of the Available Revolving Commitment of such
Lender during the

 

22

 

period for which
payment is made, payable quarterly in arrears on the last day of each March,
June, September and December and on the Revolving Termination Date, commencing
on the first of such dates to occur after the date hereof.

 

(b) The Borrower
agrees to pay to the Administrative Agent the fees in the amounts and on the
dates previously agreed to in writing by the Borrower and the Administrative
Agent.

 

2.9 Termination or Reduction of
Revolving Commitments. The Borrower shall have the right, upon not less
than three Business Days prior written notice to the Administrative Agent (or
telephonic notice confirmed promptly in writing), to terminate the Revolving
Commitments or, from time to time, to reduce the amount of the Revolving
Commitments; provided that no such termination or reduction of Revolving
Commitments shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Loans and Swingline Loans made on the effective
date thereof, the Total Revolving Extensions of Credit would exceed the Total
Revolving Commitments. Any such reduction shall be in an amount equal to
$1,000,000, or a whole multiple thereof, and shall reduce permanently the
Revolving Commitments then in effect.

 

2.10 Optional Prepayments. The Borrower may at
any time and from time to time prepay the Loans, in whole or in part, without
premium or penalty, upon irrevocable written notice (or telephonic notice
confirmed promptly in writing) delivered to the Administrative Agent prior to
12:00 Noon, Charlotte, North Carolina time at least three Business Days prior
thereto in the case of Eurodollar Loans and at least one Business Day prior
thereto in the case of Base Rate Loans, which notice shall specify the date and
amount of prepayment and whether the prepayment is of Eurodollar Loans or Base
Rate Loans; provided, that if a Eurodollar Loan is prepaid on any day
other than the last day of the Interest Period applicable thereto, the Borrower
shall also pay any amounts owing pursuant to Section 2.20. Upon receipt of any
such notice the Administrative Agent shall promptly notify each relevant Lender
thereof.  If any such notice is given,
the amount specified in such notice shall be due and payable on the date
specified therein, together with (except in the case of Revolving Loans that
are Base Rate Loans and Swingline Loans) accrued interest to such date on the
amount prepaid. Partial prepayments of Term Loans and Revolving Loans shall be
in an aggregate principal amount of $1,000,000 or a whole multiple thereof.
Partial prepayments of Swingline Loans shall be in an aggregate principal amount of $100,000 or a
whole multiple thereof. Any optional prepayment of the Term Loans pursuant to
this Section 2.10 made (i) on or prior to the first anniversary of the Closing
Date shall be accompanied by a prepayment fee in the amount equal to 2% of the
aggregate principal amount so prepaid and (ii) after the first anniversary of
the Closing Date and on or prior to the second anniversary of the Closing Date
shall be accompanied by a prepayment fee in the amount equal to 1% of the
aggregate principal amount so prepaid.

 

2.11 Mandatory Prepayments and
Commitment Reductions. (a) If any Capital Stock or Indebtedness shall
be issued or incurred by the Borrower or any of its Subsidiaries (excluding any
Indebtedness incurred in accordance with Section 7.2 or any Capital Stock
issued by a Subsidiary to the Borrower or to another Subsidiary), an amount
equal to 100% of the Net Cash Proceeds thereof shall be applied on the date of
such issuance or incurrence toward the prepayment of the Term Loans as set
forth in Sections 2.11(d) and 2.17(b). 

 

(b) If on any date
the Borrower or any of its Subsidiaries shall receive Net Cash Proceeds from
any Asset Sale or Recovery Event then, unless a Reinvestment Notice shall be
delivered in respect of a Recovery Event, such Net Cash Proceeds shall be
applied on such date toward the prepayment of the Term Loans as set forth in
Sections 2.11 (d) and 2.17(b); provided, that, on each Reinvestment
Prepayment Date, an amount equal to the Reinvestment Prepayment Amount with
respect

 

23

 

to the relevant
Reinvestment Event shall be applied toward the prepayment of the Term Loans as
set forth in Sections 2.11(d) and 2.17(b).

 

(c) If, for any
fiscal year of the Borrower commencing after the Closing Date, there shall be
Excess Domestic Cash Flow, the Borrower shall, on the relevant Excess Domestic
Cash Flow Application Date, apply the Excess Cash Flow Percentage of such
Excess Domestic Cash Flow toward the prepayment of the Term Loans as set forth
in Sections 2.11(d) and 2.17(b). Each such prepayment shall be made on a date
(an “Excess Domestic Cash Flow Application Date”) no later than five
days after the earlier of (i) the date on which the financial statements of the
Borrower referred to in Section 6.1(a), for the fiscal year with respect to
which such prepayment is made, are required to be delivered to the Lenders and
(ii) the date such financial statements are actually delivered.

 

(d) The
application of any prepayment pursuant to Section 2.11 shall be made, first,
to Base Rate Loans and, second, to Eurodollar Loans. Each prepayment of
the Loans under Section 2.11 shall (i) be accompanied by accrued interest to
the date of such prepayment on the amount prepaid, (ii) not be subject to any
prepayment penalties or premiums and (iii) be subject to any amounts owing
pursuant to Section 2.20 in connection with such prepayment.

 

2.12 Conversion and Continuation Options.
(a) The Borrower may elect from time to time to convert Eurodollar Loans to
Base Rate Loans, upon irrevocable written notice (or telephonic notice
confirmed promptly in writing) delivered to the Administrative  Agent
prior to 12:00 Noon, Charlotte, North Carolina time, at least two Business Days
prior thereto, provided that any such conversion of Eurodollar Loans may
only be made on the last day of an Interest Period with respect thereto. The
Borrower may elect from time to time to convert Base Rate Loans to Eurodollar
Loans upon irrevocable written notice (or telephonic notice confirmed promptly
in writing) prior to 12:00 Noon, Charlotte, North Carolina time, at least three
Business Days prior thereto (which notice shall specify the length of the
initial Interest Period therefor), provided that no Base Rate Loan under
a particular Facility may be converted into a Eurodollar Loan when any Event of
Default has occurred and is continuing and the Administrative Agent or the
Majority Facility Lenders in respect of such Facility have determined in its or
their sole discretion not to permit such conversions. Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender
thereof.

 

(b) Any Eurodollar
Loan may be continued as such  upon the expiration of the then
current Interest Period with respect thereto upon irrevocable written notice
(or telephonic notice confirmed promptly in writing) given by the Borrower to
the Administrative Agent prior to 12:00 Noon, Charlotte, North Carolina time,
at least three Business Days prior thereto, in accordance with the applicable
provisions of the term “Interest Period" set forth in Section 1.1, of the
length of the next Interest Period to be applicable to such Loans; provided
that no Eurodollar Loan under a particular Facility may be continued as such
when any Event of Default has occurred and is continuing and the Administrative
Agent has or the Majority Facility Lenders in respect of such Facility have
determined in its or their sole discretion not to permit such continuations,
and provided, further, that if (i) such continuation is not
permitted pursuant to the preceding proviso such Eurodollar Loans shall be
automatically converted to Base Rate Loans on the last day of such then
expiring Interest Period and (ii) the Borrower shall fail to give any required
notice as described above in this paragraph, such Eurodollar Loans shall be
continued as Eurodollar Loans with an interest period of one month’s duration.
Upon receipt of any such notice the Administrative Agent shall promptly notify
each relevant Lender thereof.

 

2.13 Limitations on Eurodollar Tranches.
Notwithstanding anything to the contrary in this Agreement, all borrowings,
conversions and continuations of Eurodollar Loans hereunder and all selections
of Interest Periods hereunder shall be in such amounts and be made pursuant to
such elections

 

24

 

so that, (a) after giving effect thereto. the aggregate principal amount
of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to
$5,000,000 or a whole multiple of $1,000,000 in excess thereof and (b) no more
than five Eurodollar Tranches shall be outstanding at any one time.

 

2.14 Interest Rates and Payment Dates.
(a) Each Eurodollar Loan shall bear interest for each day during each Interest
Period with respect thereto at a rate per annum equal to the Eurodollar Rate
determined for such day plus the Applicable Margin.

 

(b) Each Base Rate
Loan shall bear interest at a rate per annum equal to the Base Rate plus the
Applicable Margin.

 

(c) (i) If all or
a portion of the principal amount of any Loan or Reimbursement Obligation shall
not be paid when due (whether at the stated maturity, by acceleration or otherwise),
such overdue amount shall bear interest at a rate per annum equal to (x) in the
case of the Loans, the rate that would otherwise be applicable thereto pursuant
to the foregoing provisions of this Section p1us 2% or (y) in the case
of Reimbursement Obligations, the rate applicable to Base Rate Loans under the
Revolving Facility plus 2%, and (ii) if all or a portion of any interest
payable on any Loan or Reimbursement Obligation or any commitment fee or other
amount payable hereunder shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to Base Rate
Loans under the relevant Facility plus 2% (or, in the case of any such other
amounts that do not relate to a particular Facility, the rate then applicable
to Base Rate Loans under the Revolving Facility plus 2%), in each case,
with respect to clauses (i) and (ii) above, from the date of such non–payment
until such amount is paid in full (as well after as before judgment).

 

(d) Interest shall
be payable in arrears on each Interest Payment Date, provided that
interest accruing pursuant to paragraph (c) of this Section shall be payable
from time to time on demand.

 

2.15 Computation of Interest and Fees.
(a) Interest and fees payable pursuant hereto shall be calculated on the basis
of a 360-day year for the actual days elapsed, except that, with respect to
Base Rate Loans the rate of interest on which is calculated on the basis of the
Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed. The
Administrative Agent shall as soon as practicable notify the Borrower and the
relevant Lenders of each determination of a Eurodollar Rate. Any change in the
interest rate on a Loan resulting from a change in the Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective. The Administrative
Agent shall as soon as practicable notify the Borrower and the relevant Lenders
of the effective date and the amount of each such change in interest rate.
Notwithstanding the foregoing, the failure of the Administrative Agent to provide
the Borrower or the Lenders with any notice referred to in this subsection (a)
shall not affect any obligations of the Borrower or the Lenders hereunder.

 

(b) Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. The Administrative Agent shall,
at the request of the Borrower, deliver to the Borrower a statement showing the
quotations used by the Administrative Agent in determining any interest rate
pursuant to Section 2.14(a).

 

2.16 Inability to Determine Interest Rate.
If prior to the first day of any Interest Period:

 

25

 

(a) the
Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period, or

 

(b) the
Administrative Agent shall have received notice from the Majority Facility
Lenders in respect of the relevant Facility that the Eurodollar Rate determined
or to be determined for such Interest Period will not adequately and fairly
reflect the cost to such Lenders (as conclusively certified by such Lenders) of
making or maintaining their affected Loans during such Interest Period,

 

the Administrative Agent shall give telecopy or telephonic notice
thereof to the Borrower and the relevant Lenders as soon as practicable
thereafter. If such notice is given (w) any Eurodollar Loans under the relevant
Facility requested to be made on the first day of such Interest Period shall be
made as Base Rate Loans, (x) any Loans under the relevant Facility that were to
have been converted on the first day of such Interest Period to Eurodollar
Loans shall be continued as Base Rate Loans and (y) any outstanding Eurodollar
Loans under the relevant Facility shall be converted, on the last day of the
then current Interest Period, to Base Rate Loans. Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans under the
relevant Facility shall be made or continued as such, nor shall the Borrower
have the right to convert Loans under the relevant Facility to Eurodollar
Loans.

 

2.17 Pro Rata Treatment and Payments.
(a) Each borrowing by the Borrower from the Lenders hereunder, each payment by
the Borrower on account of any commitment fee and any reduction of the
Commitments of the Lenders shall be pro 
rata according to the respective Term Percentages or Revolving
Percentages, as the case may be, of the relevant Lenders.

 

(b) Each payment (including each prepayment) by the
Borrower on account of principal of and interest on the Term Loans shall be
made prorata according to the respective outstanding principal amounts
of the Term Loans then held by the Term Lenders. The amount of each principal
prepayment of the Term Loans shall be applied to reduce the then remaining
installments of the Term Loans, as the case may be, pro rata based upon the
then remaining principal amount thereof. 
Amounts prepaid on account of the Term Loans may not be reborrowed.

 

(c) Each payment (including each prepayment) by the
Borrower on account of principal of and interest on the Revolving Loans shall
be made pro rata according to the respective outstanding principal
amounts of the Revolving Loans then held by the Revolving Lenders.

 

(d) All payments (including prepayments) to be made by
the Borrower hereunder, whether on account of principal, interest, fees or
otherwise, shall be made without setoff or counterclaim and shall be made prior
to 12:00 Noon, Charlotte, North Carolina time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office, in
Dollars and in immediately available funds. The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received. If any payment hereunder (other than payments on the Eurodollar
Loans) becomes due and payable on a day other than a Business Day, such payment
shall be extended to the next succeeding Business Day. If any payment on a
Eurodollar Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless
the result of such extension would be to extend such payment into another
calendar month, in which event such payment shall be made on the immediately
preceding Business Day. In the case of any extension of any payment of
principal pursuant to the preceding two sentences, interest thereon shall be
payable at the then applicable rate during such extension.

 

26

 

(e) Unless the Administrative Agent shall have been
notified in writing by any Lender prior to a borrowing that such Lender will
not make the amount that would constitute its share of such borrowing available
to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower a corresponding amount. If such amount is not made available to
the Administrative Agent by the required time on the Borrowing Date therefor,
such Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon at a rate equal to the daily average Federal Funds Effective
Rate for the period until such Lender makes such amount immediately available
to the Administrative Agent. A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph
shall be conclusive in the absence of manifest error. If such Lender’s share of
such borrowing is not made available to the Administrative Agent by such Lender
within three Business Days of such Borrowing Date, the Administrative Agent
shall also be entitled to recover such amount with interest thereon at the rate
per annum applicable to Base Rate Loans under the relevant Facility, on demand,
from the Borrower.

 

(f) Unless the Administrative Agent shall have been
notified in writing by the Borrower prior to the date of any payment being made
hereunder that the Borrower will not make such payment to the Administrative
Agent, the Administrative Agent may assume that the Borrower is making such payment, and the Administrative Agent may,
but shall not be required to, in reliance upon such assumption, make available
to the Lenders their respective pro rata shares of a corresponding
amount. If such payment is not made to the Administrative Agent by the Borrower
within three Business Days of such required date, the Administrative Agent
shall be entitled to recover, on demand, from each Lender to which any amount
which was made available pursuant to the preceding sentence, such amount with
interest thereon at the rate per annum equal to the daily average Federal Funds
Effective Rate. Nothing herein shall be deemed to limit the rights of the
Administrative Agent or any Lender against the Borrower.

 

2.18 Requirements of Law. (a) If the adoption of
or any change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof

 

(i) shall impose, modify
or hold applicable any reserve, special deposit, compulsory loan or similar
requirement against assets held by, deposits or other liabilities in or for the
account of, advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Lender that is not otherwise
included in the determination of the Eurodollar Rate hereunder; or

 

(ii) shall impose on such
Lender any other condition; 

 

and the result of any of the foregoing is to increase the cost to such
Lender, by an amount that such Lender deems to be material, of making,
converting into, continuing or maintaining Eurodollar Loans or issuing or
participating in Letters of Credit, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall
promptly pay such Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount receivable. If
any Lender becomes entitled to claim any additional amounts pursuant to this
paragraph, it shall promptly notify the Borrower (with a copy to the
Administrative Agent) of the event by reason of which it has become so
entitled.

 

27

 

(b) If any Lender shall have determined that the
adoption of or any change in any Requirement of Law regarding capital adequacy
or in the interpretation or application thereof or compliance by such Lender or
any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder or under or in respect of any Letter
of Credit to a level below that which such Lender or such corporation could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender’s or such corporation’s policies with respect to capital adequacy)
by an amount deemed by such Lender to be material, then from time to time,
after submission by such Lender to the Borrower (with a copy to the
Administrative Agent) of a written request therefor, the Borrower shall pay to
such Lender such additional amount or amounts as will compensate such Lender
for such reduction; provided that the Borrower shall not be required to
compensate a Lender pursuant to this paragraph for any amounts incurred more
than six months prior to the date that such Lender notifies the Borrower of
such Lender’s intention to claim compensation therefor; and provided further
that, if the circumstances giving rise to such claim have a retroactive effect,
then such six–month period shall be extended to include the period of
such retroactive effect.

 

(c) A certificate as to any additional amounts payable
pursuant to this Section submitted by any Lender to the Borrower (with a copy
to the Administrative Agent) shall be conclusive in the absence of manifest
error. The obligations of the Borrower pursuant to this Section shall survive
the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

2.19 Taxes.
(a) All payments made by the Borrower under this Agreement shall be made free
and clear of, and without deduction or withholding for or on account of, any
present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority, excluding (i)
taxes imposed on a net income basis on any Agent or any Lender by the
jurisdiction under the laws of which such Lender or Agent is organized or in
which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located and (ii) any branch profits taxes
imposed by the United States or any similar tax imposed in any other
jurisdiction in which the Borrower is located. If any such non–excluded
taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required
to be withheld from any amounts payable to any Agent or any Lender hereunder,
the amounts so payable to such Agent or such Lender shall be increased
to the extent necessary to yield to such Agent or such Lender (after payment of
all Non–Excluded Taxes and Other Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement, provided, however, that the Borrower shall not be
required to increase any such amounts payable to any Lender with respect to any
Non-Excluded Taxes (i) that are attributable to such Lender’s failure to comply
with the requirements of paragraph (d) or (e) of this Section or (ii) that are
United States withholding taxes imposed on amounts payable to such Lender at
the time the Lender becomes a party to this Agreement, except to the extent
that such Lender’s assignor (if any) was entitled, at the time of assignment,
to receive additional amounts from the Borrower with respect to such
Non-Excluded Taxes pursuant to this paragraph.

 

(b) In addition, the Borrower shall pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

 

(c) Whenever any Non-Excluded Taxes or Other Taxes are
payable by the Borrower, as promptly as reasonably possible thereafter the
Borrower shall send to the Administrative Agent for its own account or for the
account of the relevant Agent or Lender, as the case may be, a certified copy
of an original official receipt received by the Borrower showing payment
thereof or if not available, evidence

 

28

 

reasonably satisfactory to the Administrative Agent. If the Borrower
falls to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate
taxing authority or fails to remit to the Administrative Agent the required
receipts or other required documentary evidence, the Borrower shall indemnify
the Agents and the Lenders for any incremental taxes, interest or penalties
that may become payable by any Agent or any Lender as a result of any such
failure.

 

(d) Each Lender (or Transferee) that is not a “U.S.
Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S. Lender”)
shall deliver to the Borrower and the Administrative Agent (or, in the case of
a Participant, to the Lender from which the related participation shall have
been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN
or Form W-89EC1, or, in the case of a Non-U.S. Lender claiming exemption from
U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with
respect to payments of “portfolio interest”, a statement substantially in the
form of Exhibit F and a Form W-8BEN, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Non-U.S.
Lender claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrower under this Agreement and the other Loan Documents. Such forms shall be
delivered by each Non-U.S. Lender on or before the date it becomes a party to
this Agreement (or, in the case of any Participant, on or before the date such
Participant purchases the related participation). In addition, each Non-U.S.
Lender shall deliver such forms promptly upon the reasonable request of the
Borrower or the obsolescence or invalidity of any form previously delivered by
such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrower
at any time it determines that it is no longer in a position to provide any
previously delivered certificate to the Borrower (or any other form of
certification adopted by the U.S. taxing authorities for such purpose).
Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall
not be required to deliver any form pursuant to this paragraph that such
Non-U.S. Lender is not legally able to deliver.

 

(e) A Lender that is entitled to an exemption from or
reduction of non-U.S. withholding tax under the law of the jurisdiction in
which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate, provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.

 

(f) The agreements in this Section shall survive the
termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

2.20 Indemnity.
The Borrower agrees to indemnify each Lender and to hold each Lender harmless
from any loss or expense that such Lender may sustain or incur as a consequence
of (a) default by the Borrower in making a borrowing of, conversion into or
continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Agreement, (b)
default by the Borrower in making any prepayment of or conversion from
Eurodollar Loans after the Borrower has given a notice thereof in accordance
with the provisions of this Agreement or (c) the making of a prepayment of
Eurodollar Loans on a day that is not the last day of an Interest Period with
respect thereto. Such indemnification may include an amount equal to the excess,
if any, of (i) the amount of interest that would have accrued on the amount so
prepaid, or not so borrowed, converted or continued, for the period from the
date of such prepayment or of such failure to borrow, convert or continue to
the last day of such Interest Period (or, in the case of a failure to borrow,
convert

 

29

 

or continue, the Interest Period that would have commenced on the date
of such failure) in each case at the applicable rate of interest for such Loans
provided for herein (excluding, however, the Applicable Margin included
therein, if any) over (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading
banks in the interbank eurodollar market. A certificate as to any amounts
payable pursuant to this Section submitted to the Borrower by any Lender shall
be conclusive in the absence of manifest error. This covenant shall survive the
termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

2.21 Change of Lending Office. Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of
Section 2.18 or 2.19(a) with respect to such Lender, it will, if requested by
the Borrower, use reasonable efforts (subject to overall policy considerations
of such Lender) to designate another lending office or assign its rights and
obligations hereunder to another of its branches, offices or affiliates for any
Loans affected by such event with the object of avoiding the consequences of
such event; provided, that such designation or assignment is made on
terms that, in the sole judgment of such Lender, cause such Lender and its
lending office(s) to suffer no economic, legal or regulatory disadvantage, and provided,
further, that nothing in this Section shall affect or postpone any of
the obligations of any Borrower or the rights of any Lender pursuant to Section
2.18 or 2.19(a).

 

2.22 Replacement of Lenders. The Borrower shall
be permitted to replace any Lender that (a) requests reimbursement for amounts
owing pursuant to Section 2.18 or 2.19(a) or (b) defaults in its obligation to
make Loans hereunder, with a replacement financial institution; provided that
(i) such replacement does not conflict with any Requirement of Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) prior to any such replacement, such Lender shall have taken
no action under Section 2.21 so as to eliminate the continued need for payment
of amounts owing pursuant to Section 2.18 or 2.19(a), (iv) the replacement
financial institution shall purchase, at par, all Loans and other amounts owing
to such replaced Lender on or prior to the date of replacement, (v) the
Borrower shall be liable to such replaced Lender under Section 2.20 if any
Eurodollar Loan owing to such replaced Lender shall be purchased other than on
the last day of the Interest Period relating thereto, (vi) the replacement
financial institution, if not already a Lender, shall be reasonably
satisfactory to the Administrative Agent, (vii) the replaced Lender shall be
obligated to make such replacement in accordance with the provisions of Section
10.6 (provided that the Borrower shall be obligated to pay the registration and
processing fee referred to therein), (viii) until such time as such replacement
shall be consummated, the Borrower shall pay all additional amounts (if any)
required pursuant to Section 2.18 or 2.19(a), as the case may be, and (ix) any
such replacement shall not be deemed to be a waiver of any rights that the
Borrower, the Administrative Agent or any other Lender shall have against the
replaced Lender.

 

2.23 Evidence of Debt. (a) Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing
indebtedness of the Borrower to such Lender resulting from each Loan of such
Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time under this Agreement.

 

(b) The Administrative Agent, on behalf of the
Borrower, shall maintain the Register pursuant to Section 10.6(d), and a
subaccount therein for each Lender, in which shall be recorded (i) the amount
of each Loan made hereunder and any Note evidencing such Loan, the Type of such
Loan and each Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) both the amount of any sum received
by the Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

 

30

 

(c) The entries made in the Register and the accounts
of each Lender maintained pursuant to Section 2.23(a) shall, to the extent
permitted by applicable law, be prima  facie evidence of the
existence and amounts of the obligations of the Borrower therein recorded. provided,
however, that the failure of any Lender or the Administrative Agent to
maintain the Register or any such account, or any error therein, shall not in
any manner affect the obligation of the Borrower to repay (with applicable
interest) the Loans made to the Borrower by such Lender in accordance with the
terms of this Agreement.

 

(d) The Borrower agrees that, upon the request to the
Administrative Agent by any Lender, the Borrower will execute and deliver to
such Lender a promissory note of the Borrower evidencing any Term Loans, Revolving
Loans or Swing Line Loans, as the case may be, of such Lender, substantially in
the forms of Exhibit G-1, G-2 or G-3, respectively, with appropriate insertions
as to date and principal amount.

 

2.24 Illegality.
Notwithstanding any other provision herein, if the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof shall
make it unlawful for any Lender to make or maintain Eurodollar Loans as
contemplated by this Agreement, (a) the commitment of such Lender hereunder to
make Eurodollar Loans, continue Eurodollar Loans as such and convert Base Rate
Loans to Eurodollar Loans shall forthwith be canceled and (b) such Lender’s
Loans then outstanding as Eurodollar Loans, if any, shall be converted
automatically to Base Rate Loans on the respective last days of the then
current Interest Periods with respect to such Loans or within such earlier
period as required by law. If any such conversion of a Eurodollar Loan occurs
on a day which is not the last day of the then current Interest Period with
respect thereto, the Borrower shall pay to such Lender such amounts, if any, as
may be required pursuant to Section 2.20.

 

SECTION 3. LETTERS OF
CREDIT

 

3.1 L/C
Commitment. (a) Subject to the terms and conditions hereof, the Issuing
Lender, in reliance on the agreements of the other Revolving Lenders set forth
in Section 3.4(a), agrees to issue standby letters of credit substantially in
the form of Exhibit H hereto (“Letters of Credit”) for the account of
the Borrower on any Business Day during the Revolving Commitment Period in such
form as may be approved from time to time by the Issuing Lender; provided
that the Issuing Lender shall have no obligation to issue any Letter of Credit
if, after giving effect to such issuance, (i) the L/C Obligations would exceed
the L/C Commitment or (ii) the aggregate amount of the Available Revolving
Commitments would be less than zero. 
Each Letter of Credit shall (i) be denominated in Dollars, (ii) have a
face amount of at least $100,000 (unless otherwise agreed by the Issuing
Lender) and (iii) expire no later than the earlier of (x) the first anniversary
of its date of issuance and (y) the date that is five Business Days prior to
the Revolving Termination Date, provided that any Letter of Credit with
a one-year term may provide for the renewal thereof for additional one–year
periods (which shall in no event extend beyond the date referred to in clause
(y) above).

 

(b) The Issuing Lender shall not at any time be
obligated to issue any Letter of Credit hereunder if such issuance would
conflict with, or cause the Issuing Lender or any L/C Participant to exceed any
limits imposed by, any applicable Requirement of Law.

 

3.2 Procedure for Issuance of Letter of
Credit. The Borrower may from time to time request that the Issuing
Lender issue a Letter of Credit by delivering to the Issuing Lender at its
address for notices specified herein an Application therefor, completed to the
satisfaction of the Issuing Lender, and such other certificates, documents and
other papers and information as the Issuing Lender may request. Upon receipt of
any Application, the Issuing Lender will notify the Administrative Agent of the

 

31

 

amount, the beneficiary and the requested expiration of the requested
Letter of Credit and upon receipt of confirmation from the Administrative Agent
that after giving effect to the requested issuance, the Available Revolving
Commitments would not be less than zero, the Issuing Lender will process such
Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary
procedures and shall promptly issue the Letter of Credit requested thereby (but
in no event shall the Issuing Lender be required to issue any Letter of Credit
earlier than three Business Days after its receipt of the Application therefor
and all such other certificates, documents and other papers and information
relating thereto) by issuing the original of such Letter of Credit to the
beneficiary thereof or as otherwise may be agreed to by the Issuing Lender and
the Borrower. The Issuing Lender shall furnish a copy of such Letter of Credit
to the Borrower (with a copy to the Administrative Agent) promptly following
the issuance thereof. The Issuing Lender shall promptly furnish to the
Administrative Agent, which shall in turn promptly furnish to the Lenders,
notice of the issuance of each Letter of Credit (including the amount thereof).

 

3.3 Fees and Other Charges. (a) The Borrower
will pay a fee on all outstanding Letters of Credit at a per annum rate equal
to the Applicable Margin then in effect with respect to Eurodollar Loans under
the Revolving Facility, shared ratably among the Revolving Lenders and payable
quarterly in arrears on each L/C Fee Payment Date after the issuance date. In
addition, the Borrower shall pay to the Issuing Lender for its own account a
fronting fee of 0.125% on the daily average aggregate of the undrawn and
unexpired amount of all Letters of Credit, payable quarterly in arrears on each
L/C Fee Payment Date after the Issuance Date.

 

(b) In addition to the foregoing fees, the Borrower
shall pay or reimburse the Issuing Lender for such normal and customary costs
and expenses as are incurred or charged by the Issuing Lender in issuing,
negotiating, effecting payment under, amending or otherwise administering any
Letter of Credit.

 

3.4 L/C Participations. (a) The Issuing Lender
irrevocably agrees to grant and hereby grants to each L/C Participant, and, to
induce the Issuing Lender to issue Letters of Credit hereunder, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from the Issuing Lender, on the terms and conditions set forth below,
for such L/C Participant’s own account
and risk an undivided interest equal to such L/C Participant’s Revolving
Percentage in the Issuing Lender’s obligations and rights under and in
respect of each Letter of Credit issued hereunder and the amount of each draft
paid by the Issuing Lender thereunder. Each L/C Participant unconditionally and
irrevocably agrees with the Issuing Lender that, if a draft is paid under any
Letter of Credit for which the Issuing Lender is not reimbursed in full by the
Borrower in accordance with the terms of this Agreement, such L/C Participant
shall pay to the Administrative Agent upon demand of the Issuing Lender an
amount equal to such L/C Participant’s Revolving Percentage of the amount of
such draft, or any part thereof, that is not so reimbursed. The Administrative
Agent shall promptly forward such amounts to the Issuing Lender.

 

(b) If any amount required to be paid by any L/C
Participant to the Administrative Agent for the account of the Issuing Lender
pursuant to Section 3.4(a) in respect of any unreimbursed portion of any
payment made by the Administrative Agent for the account of the Issuing Lender
under any Letter of Credit is paid to the Administrative Agent for the account
of the Issuing Lender within three Business Days after the date such payment is
due, such L/C Participant shall pay to the Administrative Agent for the account
of the Issuing Lender on demand an amount equal to the product of (i) such
amount, times (ii) the daily average Federal Funds Effective Rate during the
period from and including the date such payment is required to the date on
which such payment is immediately available to the Issuing Lender, times (iii)
a fraction the numerator of which is the number of days that elapse during such
period and the

 

32

 

denominator of which is 360. If any such amount required to be paid by
any L/C Participant pursuant to Section 3.4(a) is not made available to the
Administrative Agent for the account of the Issuing Lender by such L/C
Participant within three Business Days after the date such payment is due, the
Issuing Lender shall be entitled to recover from such L/C Participant, on
demand, such amount with interest thereon calculated from such due date at the
rate per annum applicable to Base Rate Loans under the Revolving Facility. A
certificate of the Issuing Lender submitted to any L/C Participant with respect
to any amounts owing under this Section shall be conclusive in the absence of
manifest error.

 

(c) Whenever, at any time after the Issuing Lender has
made payment under any Letter of Credit and has received from any L/C
Participant its pro rata share of such payment in accordance with
Section 3.4(a), the Administrative Agent or the Issuing Lender receives any payment
related to such Letter of Credit (whether directly from the Borrower or
otherwise, including proceeds of collateral applied thereto by the Issuing
Lender), or any payment of interest on account thereof, the Administrative
Agent or the Issuing Lender, as the case may be, will distribute to such L/C
Participant its pro rata share thereof; provided, however,
that in the event that any such payment received by the Administrative Agent or
the Issuing Lender, as the case may be, shall be required to be returned by the
Administrative Agent or the Issuing Lender, such L/C Participant shall return
to the Administrative Agent for the account of the Issuing Lender the portion
thereof previously distributed by the Administrative Agent or the Issuing
Lender, as the case may be, to it.

 

3.5 Reimbursement Obligation of the
Borrower. The Borrower agrees to reimburse the Issuing Lender on each
date on which the Issuing Lender notifies the Borrower (such notice to be
promptly delivered by the Issuing Lender to the Borrower) of the date and
amount of a draft presented under any Letter of Credit and paid by the Issuing
Lender for the amount of (a) such draft so paid and (b) any taxes, fees,
charges or other costs or expenses incurred by the Issuing Lender in connection
with such payment. Each such payment shall be made to the Issuing Lender at its
address for notices specified herein in lawful money of the United States and
in immediately available funds. Interest shall be payable on any and all
amounts remaining unpaid by the Borrower under this Section from the date such
amounts become payable (whether at stated maturity, by acceleration or
otherwise) until payment in full at the rate set forth in (i) until the second
Business Day following the date of the applicable drawing, Section 2.14(b) and
(ii) thereafter, Section 2.14(c). Each drawing under any Letter of Credit shall
(unless an event of the type described in clause (i) or (ii) of Section 8(f)
shall have occurred and be continuing with respect to the Borrower, in which
case the procedures specified in Section 3.4 for funding by L/C Participants
shall apply) constitute a request by the Borrower to the Administrative Agent
for a borrowing pursuant to Section 2.5 of Base Rate Loans (or, at the option
of the Administrative Agent and the Swing Line Lender in their sole discretion,
a borrowing pursuant to Section 2.7 of Swing Line Loans) in the amount of such
drawing. The Borrowing Date with respect to such borrowing shall be the first
date on which a borrowing of Revolving Loans (or, if applicable, Swing Line
Loans) could be made, pursuant to Section 2.5 or, if applicable, Section 2.7,
if the Administrative Agent had received a notice of such borrowing at the time
the Administrative Agent receives notice from the relevant Issuing Lender of
such drawing under such Letter of Credit.

 

3.6 Obligations Absolute. The Borrower’s
obligations under this Section 3 shall be absolute and unconditional under any
and all circumstances and irrespective of any setoff, counterclaim or defense to
payment that the Borrower may have or have had against the Issuing Lender, any
beneficiary of a Letter of Credit or any other Person. The Borrower also agrees
with the Issuing Lender that the Issuing Lender shall not be responsible for,
and the Borrower’s Reimbursement Obligations under Section 3.5 shall not be
affected by, among other things, the validity or genuineness of documents or of
any endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or

 

33

 

any other party to which such Letter of Credit may be transferred or
any claims whatsoever of the Borrower against any beneficiary of such Letter of
Credit or any such transferee. The Issuing Lender shall not be liable for any
error, omission, interruption or delay in transmission, dispatch or delivery of
any message or advice, however transmitted, in connection with any Letter of
Credit, except for errors or omissions resulting from the gross negligence or
willful misconduct of the Issuing Lender or the breach of its obligations under
this Agreement. The Borrower agrees that any action taken or omitted by the
Issuing Lender under or in connection with any Letter of Credit or the related
drafts or documents, if done in the absence of gross negligence or willful
misconduct and in accordance with the standards of care specified in the
Uniform Commercial Code of the State of New York, shall be binding on the
Borrower and shall not result in any liability of the Issuing Lender to the
Borrower.

 

3.7 Letter of Credit Payments. If any draft
shall be presented for payment under any Letter of Credit, the Issuing Lender
shall promptly notify the Borrower of the date and amount thereof.  The responsibility of the Issuing Lender to
the Borrower in connection with any draft presented for payment under any
Letter of Credit shall, in addition to any payment obligation expressly
provided for in such Letter of Credit, be limited to determining that the
documents (including each draft) delivered under such Letter of Credit in
connection with such presentment are substantially in conformity with such
Letter of Credit.

 

3.8 App1ications.
To the extent that any provision of any Application related to any Letter of
Credit is inconsistent with the provisions of this Section 3, the provisions of
this Section 3 shall apply.

 

SECTION 4.  REPRESENTATIONS AND WARRANTIES

 

To induce the Agents and the Lenders to enter into
this Agreement and to make the Loans and issue or participate in the Letters of
Credit, the Borrower hereby represents and warrants to each Agent and each
Lender that:

 

4.1 Financial Condition (a) The unaudited pro
forma consolidated balance
sheet of the Borrower and its consolidated Subsidiaries as at December 31, 1999
(including the notes thereto) (the “Pro Forma Balance Sheet”), copies of
which have heretofore been furnished to each Lender, has been prepared giving
effect (as if such events had occurred on such date) to (i) the Loans to be
made on the Closing Date and the use of proceeds thereof to consummate the
Refinancing and (ii) the payment of fees and expenses in connection with the
foregoing. The Pro Forma Balance Sheet has been prepared based on the best information available to the
Borrower as of the date of delivery thereof, and presents fairly on a pro
forma basis the estimated financial position of Borrower and its
consolidated Subsidiaries as at December 31, 1999, assuming that the events
specified in the preceding sentence had actually occurred at such date.

 

(b) The audited consolidated balance sheets of the
Borrower as at December 31, 1998 and December 31, 1997, and the related
consolidated statements of income and of cash flows for the fiscal years ended
on such dates, reported on by and accompanied by an unqualified report from BDO
Seidman LLP, present fairly the consolidated financial condition of the
Borrower as at such date, and the consolidated results of its operations and
its consolidated cash flows for the respective fiscal years then ended. The
unaudited consolidated balance sheet of the Borrower as at September 30, 1999,
and the related unaudited consolidated statements of income and cash flows for
the nine-month period ended on such date, present fairly the consolidated
financial condition of the Borrower as at such date, and the consolidated
results of its operations and its consolidated cash flows for the nine-month
period then ended (subject to normal year-end audit adjustments). All such
financial statements, including the

 

34

 

related schedules and notes thereto, have been prepared in accordance
with GAAP applied consistently throughout the periods involved (except as
approved by the aforementioned firm of accountants and disclosed therein). The
Borrower and its Subsidiaries do not have any material Guarantee Obligations,
contingent liabilities and liabilities for taxes, or any long–term leases
or unusual forward or long-term commitments, including any interest rate or
foreign currency swap or exchange transaction or other obligation in respect of
derivatives, that are not reflected in the most recent financial statements
referred to in this paragraph. During the period from December 31, 1998 to and
including the date hereof there has been no Disposition by the Borrower of any
material part of its business or property.

 

(c) The consolidated balance sheets of Collagen
Aesthetics, Inc. (“Collagen”) and its Subsidiaries as of June 30, 1999,
and the related consolidated statements of earnings, cash flows and
stockholders’ equity of Collagen and its Subsidiaries for the fiscal year ended
on such date, including the notes and schedules thereto and accompanied by an
opinion of Ernst & Young LLP, independent certified public accountants of
Collagen, copies of which have been furnished to the Syndication Agent, present
fairly the consolidated financial condition of Collagen and its Subsidiaries as at such date and the consolidated results
of operations and cash flows of Collagen and its Subsidiaries for the period
ended on such date in accordance with GAAP applied consistently throughout the
periods involved, subject to year-end audit adjustments.

 

4.2 No
Change Since September 30, 1999, there has been no development or event
that has had or could reasonably be expected to have a Material Adverse Effect.

 

4.3 Corporate Existence; Compliance
with Law. Each of the Borrower and its Subsidiaries (a) is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has the corporate power and authority,
and the legal right, to own and operate its property, to lease the property it
operates as lessee and to conduct the business in which it is currently
engaged, (c) is duly qualified as a foreign corporation and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of
property or the conduct of its business requires such qualification and (d) is in
compliance with all Requirements of Law except to the extent that the failure
to comply therewith could not, in the aggregate, reasonably be expected to have
a Material Adverse Effect.

 

4.4 Corporate Power; Authorization;
Enforceable Obligations. Each Loan Party has the  corporate
power and authority, and the legal right, to make, deliver and perform the Loan
Documents to which it is a party and, in the case of the Borrower, to obtain
extensions of credit hereunder. Each Loan Party has taken all necessary corporate
action to authorize the execution, delivery and performance of the Loan
Documents to which it is a party and, in the case of the Borrower, to authorize
the extensions of credit on the terms and conditions of this Agreement. No
consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority
or any other Person is required in connection with the Refinancing, the
extensions of credit hereunder or with the execution, delivery, performance,
validity or enforceability of this Agreement or any of the Loan Documents,
except (i) consents, authorizations, filings and notices described in Schedule
4.4, which consents, authorizations, filings and notices have been obtained or
made and are in full force and effect and (ii) the filings referred to in
Section 4.19. Each Loan Document has been duly executed and delivered on behalf
of each Loan Party party thereto. This Agreement constitutes, and each other
Loan Document upon execution will constitute, a legal, valid and binding
obligation of each Loan Party party thereto, enforceable against each such Loan
Party in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

 

35

 

4.5 No
Legal Bar. The execution, delivery and performance of this Agreement
and the other Loan Documents, the issuance of Letters of Credit, the borrowings
hereunder and the use of the proceeds thereof will not violate any Requirement
of Law or any Contractual Obligation of the Borrower or any of its Subsidiaries
and will not result in, or require, the creation or imposition of any Lien on
any of their respective properties or revenues pursuant to any Requirement of
Law or any such Contractual Obligation (other than the Liens created by the
Security Documents). No Requirement of Law or Contractual Obligation applicable
to the Borrower or any of its Subsidiaries could reasonably be expected to have
a Material Adverse Effect.

 

4.6 Litigation.
Except as disclosed on Schedule 4.6, no litigation, investigation or proceeding
of or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against the Borrower or any of its
Subsidiaries or against any of their respective properties or revenues (a) with
respect to any of the Loan Documents or any of the transactions contemplated
hereby or thereby, or (b) that could reasonably be expected to have a Material
Adverse Effect.

 

4.7 No
Default. Neither the Borrower nor any of its Subsidiaries is in default
under or with respect to any of its Contractual Obligations in any respect that
could reasonably be expected to have a Material Adverse Effect. No Default or
Event of Default has occurred and is continuing.

 

4.8 Ownership of Property; Liens. Each of
the Borrower and its Subsidiaries has title in fee simple to, or a valid
leasehold interest in, all its real property, and good title to, or a valid
leasehold interest in, all its other property, and none of such property is
subject to any Lien except as permitted by Section 7.3.

 

4.9 Intellectual Property. The Borrower and
each of its Subsidiaries owns, or is licensed to use, all Intellectual Property
necessary for the conduct of its business as currently conducted. Except as
disclosed on Schedule 4.9, no material claim has been asserted and is pending
by any Person challenging or questioning the use of any Intellectual Property
or the validity or effectiveness of any Intellectual Property, nor does the
Borrower know of any valid basis for any such claim. The use of Intellectual
Property by the Borrower and its Subsidiaries does not infringe on the rights
of any Person in any material respect.

 

4. 10 Taxes.
Each of the Borrower and its Subsidiaries has filed or caused to be filed all
material Federal, state and other tax returns that are required to be filed and
has paid all taxes shown to be due and payable on said returns or on any  assessments
made against it or any of its property and all other material taxes, fees or other charges imposed on it or any of its
property by any Governmental Authority (other than any taxes the amount or
validity of which are currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of the Borrower or its Subsidiaries, as the case may
be); no material tax Lien (other than any Lien that is permitted to exist
pursuant to 7.3 hereof) has been filed, and, to the knowledge of the Borrower,
no claim is being asserted, with respect to any such tax, fee or other charge.

 

4.11 Federal Regulations. No part of the proceeds
of any Loans, and no other extensions of credit hereunder, will be used for
“buying” or “carrying” any “margin stock” within the respective meanings of
each of the quoted terms under Regulation U as now and from time to time
hereafter in effect or for any purpose that violates the provisions of the
Regulations of the Board. If requested by any Lender or the Administrative
Agent, the Borrower will furnish to the Administrative Agent and each Lender a
statement to the foregoing effect in conformity with the requirements of FR
Form G-3 or FR Form U-1, as applicable, referred to in Regulation U.

 

36

 

4.12 Labor Matters. Except as, in the aggregate, could
not reasonably be expected to have a Material Adverse Effect: (a) there are no
strikes or other labor disputes against the Borrower or any of its Subsidiaries
pending or, to the knowledge of the Borrower, threatened; (b) hours worked by
and payment made to employees of the Borrower and its Subsidiaries have not
been in violation of the Fair Labor Standards Act or any other applicable
Requirement of Law dealing with such matters; and (c) all payments due from the
Borrower or any of its Subsidiaries on account of employee health and welfare
insurance have been paid or accrued as a liability on the books of the Borrower
or the relevant Subsidiary.

 

4.13 ERISA.
Neither a Reportable Event nor an “accumulated funding deficiency” (within the
meaning of Section 412 of the Code or Section 302 of ERISA) has occurred during
the five–year period prior to the date on which this representation is
made or deemed made with respect to any Plan, and each Plan has complied in all
material respects with the applicable provisions of ERISA and the Code. No
termination of a Single Employer Plan has occurred, and no Lien in favor of the
PBGC or a Plan has arisen, during such five–year period. The present
value of all accrued benefits under each Single Employer Plan (based on those
assumptions used to fund such Plans) did not, as of the last annual valuation
date prior to the date on which this representation is made or deemed made,
exceed the value of the assets of such Plan allocable to such accrued benefits
by a material amount. Neither the Borrower nor any Commonly Controlled Entity
has had a complete or partial withdrawal from any Multiemployer Plan that has
resulted or could reasonably be expected to result in a material liability
under ERISA, and neither the Borrower nor any Commonly Controlled Entity would
become subject to any material liability under ERISA if the Borrower or any
such Commonly Controlled Entity were to withdraw completely from all
Multiemployer Plans as of the valuation date most closely preceding the date on
which this representation is made or deemed made. No such Multiemployer Plan is
in Reorganization or Insolvent.

 

4.14 Investment Company Act; Other
Regulations. No Loan Party is an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment
Company Act of 1940, as amended. No Loan Party is subject to regulation under
any Requirement of Law (other than Regulation X of the Board) that limits its
ability to incur Indebtedness.

 

4.15 Subsidiaries. Except as disclosed to the
Administrative Agent by the Borrower in writing from time to time after the
Closing Date, (a) Schedule 4.15 sets forth the name and jurisdiction of
incorporation of each Subsidiary and, as to each such Subsidiary, the
percentage of each class of Capital Stock owned by any Loan Party and (b) there
are no outstanding subscriptions, options, warrants, calls, rights or other
agreements or commitments (other than stock options granted to employees or
directors and directors’ qualifying shares) of any nature relating to any
Capital Stock of the Borrower or any Subsidiary, except as created by the Loan
Documents. As of the date hereof, each of the Excluded Foreign Subsidiaries has
no assets or liabilities and does not conduct business operations.

 

4.16 Use of Proceeds. The proceeds of the Term Loans
shall be used to consummate the Refinancing and to pay related fees and
expenses. The proceeds of the Revolving Loans and the Swingline Loans, and the
Letters of Credit, shall be used for general corporate purposes.

 

37

 

4.17 Environmental Matters. Except as, in the
aggregate, could not reasonably be expected to have a Material Adverse Effect:

 

(a) the facilities and
properties owned, leased or operated by the Borrower or any of its Subsidiaries
(the “Properties”) do not contain, and have not previously contained,
any Materials of Environmental Concern in amounts or concentrations or under
circumstances that constitute or constituted a violation of, or could give rise
to liability under, any Environmental Law;

 

(b) neither the Borrower
nor any of its Subsidiaries has received or is aware of any notice of
violation, alleged violation, non-compliance, liability or potential liability
regarding environmental matters or compliance with Environmental Laws with
regard to any of the Properties or the business operated by the Borrower or any
of its Subsidiaries (the “Business”), nor does the Borrower have
knowledge or reason to believe that any such notice will be received or is
being threatened;

 

(c) Materials of
Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location that could give
rise to liability under, any Environmental Law, nor have any Materials of
Environmental Concern been generated, treated, stored or disposed of at, on or
under any of the Properties in violation of, or in a manner that could give
rise to liability under, any applicable Environmental Law;

 

(d) no judicial proceeding
or governmental or administrative action is pending or, to the knowledge of the
Borrower, threatened, under any Environmental Law to which the Borrower or any
Subsidiary is or will be named as a party with respect to the Properties or the
Business, nor are there any consent decrees or other decrees, consent orders,
administrative orders or other orders, or other administrative or judicial
requirements outstanding under any Environmental Law with respect to the
Properties or the Business;

 

(e) there has been no
release or threat of release of Materials of Environmental Concern at or from
the Properties, or arising from or related to the operations of the Borrower or
any Subsidiary in connection with the Properties or otherwise in connection
with the Business, in violation of or in amounts or in a manner that could give
rise to liability under Environmental Laws;

 

(f) the Properties and
all operations at the Properties are in compliance, and have in the last five
years been in compliance, with all applicable Environmental Laws, and there is
no contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the Business; and

 

(g) neither the Borrower
nor any of its Subsidiaries has assumed any liability of any other Person under
Environmental Laws.

 

4.18 Accuracy of Information, etc.
No statement or information contained in this Agreement, any other Loan
Document, the Confidential Information Memorandum or any other document,
certificate or statement furnished by or on behalf of any Loan Party to the
Administrative Agent or the Lenders, or any of them, for use in connection with
the transactions contemplated by this Agreement or the other Loan Documents,
contained as of the date such statement, information, document or certificate
was so furnished (or, in the case of the Confidential Information Memorandum,
as of the date of this Agreement), any untrue statement of a material fact or
omitted to state a material fact necessary to make the statements contained
herein or therein not misleading. The projections and pro

38

 

forma
financial information contained in the materials referenced above are based
upon good faith estimates and assumptions believed by management of the
Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be
viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth
therein by a material amount. There is no fact known to any Loan Party that
could reasonably be expected to have a Material Adverse Effect that has not
been expressly disclosed herein, in the other Loan Documents, in the
Confidential Information Memorandum or in any other documents, certificates and
statements furnished to the Administrative Agent and the Lenders for use in
connection with the transactions contemplated hereby and by the other Loan
Documents.

 

4.19 Security Documents. The Guarantee and
Collateral Agreement is effective to create in favor of the Administrative
Agent, for the benefit of the Lenders, a legal, valid and enforceable security
interest in the Collateral described therein and proceeds thereof. In the case
of the Pledged Stock described in the Guarantee and Collateral Agreement, when
stock certificates representing such Pledged Stock are delivered to the
Administrative Agent, and in the case of the other Collateral described in the
Guarantee and Collateral Agreement, when financing statements and other filings
specified on Schedule 4.19(a) in appropriate form are filed in the offices
specified on Schedule 4.19(a), the Guarantee
and Collateral Agreement shall constitute a fully perfected Lien on, and
security interest in, all right, title and interest of the Loan Parties in such
Collateral and the proceeds thereof, as security for the Obligations (as
defined in the Guarantee and Collateral Agreement), in each case prior and superior
in right to any other Person (except, in the case of Collateral other than
Pledged Stock, Liens permitted by Section 7.3).

 

4.20 Solvency.
Each Loan Party is, and after giving effect to the incurrence of all
Indebtedness and obligations being incurred in connection herewith will be and
will continue to be, Solvent.

 

4.21 Year 2000 Matters. Any reprogramming required to permit the proper functioning (but only
to the extent that such proper functioning would otherwise be impaired by the
occurrence of the year 2000) in and following the year 2000 of computer systems
and other equipment containing embedded microchips, in either case owned or
operated by the Borrower or any of its Subsidiaries or used or relied upon in
the conduct of their business (including any such systems and other equipment
supplied by others or with which the computer systems of the Borrower or any of
its Subsidiaries interface), and the testing of all such systems and other
equipment as so reprogrammed, have been completed. The costs to the Borrower
and its Subsidiaries for such reprogramming and testing and for the other
reasonably foreseeable consequences to them of any improper functioning of
other computer systems and equipment containing embedded microchips due to the
occurrence of the year 2000 could not reasonably be expected to result in a
Default or Event of Default or to have a Material Adverse Effect. The computer
systems of the Borrower and its Subsidiaries are and, with ordinary course
upgrading and maintenance, will continue for the term of this Agreement to be,
sufficient for the conduct of their business as currently conducted.

 

SECTION 5.
CONDITIONS PRECEDENT

 

5.1 Conditions to Initial Extension of
Credit. The agreement of each Lender to make the initial extension of
credit requested to be made by it is subject to the satisfaction, prior to or
concurrently with the making of such extension of credit on the Closing Date
(but in any event no later than February 1, 2000), of the following conditions
precedent:

 

39

 

(a) Credit Agreement;
Guarantee and Collateral Agreement. The Syndication Agent shall have
received (i) this Agreement, executed and delivered by each Agent, the Borrower
and each Person listed on Schedule 1.1A, (ii) the Guarantee and Collateral
Agreement, executed and delivered by the Borrower and each Subsidiary Guarantor
and (iii) an Acknowledgment and Consent in the form attached to the Guarantee
and Collateral Agreement, executed and delivered by each Issuer (as defined
therein), if any, that is not a Loan Party.

 

In the event that this
Agreement has not been duly executed and delivered by each Person listed on
Schedule 1.1A on the date scheduled to be the Closing Date, the condition
referred to in clause (i) above shall nevertheless be deemed satisfied if on
such date the Borrower and the Syndication Agent shall have designated one or
more Persons (the “Designated Lenders”) to assume, in the aggregate, all
of the Commitments that would have been held by the Persons listed on Schedule
1.1A (the “Non-Executing Persons”) which have not so executed and
delivered this Agreement (subject to each such Designated Lender’s consent and
its execution and delivery of this Agreement). Schedule 1.1A shall
automatically be deemed to be amended to reflect the respective Commitments of
the Designated Lenders and the omission of the Non-Executing Persons as Lenders
hereunder.

 

(b) Refinancing.
Concurrently with the making of the Loans on the Closing Date, the loans and
all other amounts owing under the Bridge Loan Agreement shall have been repaid
in full and any Liens securing the Bridge Loan Agreement shall have been
terminated, in each case, pursuant to documentation in form and substance
reasonably satisfactory to the Syndication Agent (collectively, the “Refinancing”).

 

(c) Pro Forma Balance
Sheet; Financial Statements. The Lenders shall have received (i) the Pro
Forma Balance Sheet, (ii) audited consolidated financial statements of the
Borrower for the 1998 and 1997 fiscal years and (iii) unaudited interim
consolidated financial statements of the Borrower for each quarterly period
ended subsequent to the date of the latest applicable financial statements
delivered pursuant to clause (ii) of this paragraph as to which such financial
statements are available, and such financial statements shall not, in the
reasonable judgment of the Lenders, reflect any material adverse change in the
consolidated financial condition of the Borrower,
as reflected in the financial statements or projections contained in the
Confidential Information Memorandum
(such receipt to be evidenced by such Lender’s execution of this
Agreement).

 

(d) Approvals. All
governmental and third party approvals (including landlords’ and other
consents) necessary in connection with the Refinancing, the continuing
operations of the Borrower and its Subsidiaries and the transactions
contemplated hereby shall have been obtained and be in full force and effect,
and all applicable waiting periods shall have expired without any action being
taken or threatened by any competent authority that would restrain, prevent or
otherwise impose adverse conditions on the Refinancing or the financing
contemplated hereby.

 

(e) Lien Searches.
The Syndication Agent shall have received the results of a recent lien search
in each of the jurisdictions where assets of the Loan Parties are located, and
such search shall reveal no liens on any of the assets of the Borrower or its
Subsidiaries except for liens permitted by Section 7.3 or discharged on or
prior to the Closing Date pursuant to documentation reasonably satisfactory to
the Syndication Agent.

 

(f) Fees. The
Lenders and the Agents shall have received all fees required to be paid, and
all expenses for which invoices have been presented, on or before the Closing
Date. All

 

40

 

such amounts will  be paid with proceeds of Loans
made on the Closing Date and will  be reflected in the funding
instructions given by the Borrower to the Syndication Agent on or before the
Closing Date.

 

(g) Closing
Certificate. The Syndication Agent shall have received, with a counterpart
for each Lender, a certificate of each Loan Party, dated the Closing Date,
substantially in the form of Exhibit C, with appropriate insertions and
attachments.

 

(h) Legal Opinions.
The Syndication Agent shall have received the following executed legal
opinions:

 

(i) the legal opinion of
Skadden, Arps, Slate, Meagher & Flom LLP, counsel to the Borrower and its
Subsidiaries, substantially in the form of Exhibit E-1; and

 

(ii) the legal opinion of
David Bamberger, general counsel of the Borrower and its Subsidiaries,
substantially in the form of Exhibit E-2.

 

Each such legal opinion shall cover such other matters
incident to the transactions contemplated by this Agreement as the Syndication
Agent may reasonably require.

 

(i) Pledged Stock;
Stock Powers; Pledged Notes. The Administrative Agent shall have received
(i) the certificates representing the shares of Capital Stock pledged pursuant
to the Guarantee and Collateral Agreement, together with an undated stock power
for each such certificate executed in blank by a duly authorized officer of the
pledgor thereof and (ii) each promissory note (if any) pledged to the
Administrative Agent pursuant to the Guarantee and Collateral Agreement
endorsed (without recourse) in blank (or accompanied by an executed transfer
form in blank) by the pledgor thereof.

 

(j) Filings,
Registrations and Recordings. Each document (including any Uniform
Commercial Code financing statement) required by the Security Documents or
under law or reasonably requested by the Syndication Agent or the
Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent, for the benefit of the Lenders, a perfected
Lien on the Collateral described therein, prior and superior in right to any
other Person (other than with respect to Liens expressly permitted by Section
7.3), shall be in proper form for filing, registration or recordation and arrangements
reasonably satisfactory to the Syndication Agent for the filing, registration
or recordation thereof shall have been made.

 

(k) Solvency
Certificate. The Syndication Agent shall have received a solvency
certificate from the chief financial officer of the Borrower.

 

(1) Financial
Projections. Each of the Lenders shall have received and be satisfied with
financial projections for fiscal years 1999–2004 and a written analysis
of the business and prospects of the Borrower and its subsidiaries for the period
from the Closing Date through the final maturity of the Term Loans. 

 

(m) Minimum EBITDA .
The Borrower shall have presented evidence and supporting calculations
reasonably satisfactory to the Syndication Agent that the Borrower’s
Consolidated EBITDA for the 12–month period ended September 30, 1999,
calculated on a pro forma basis as if the Refinancing had occurred on
the first day of such period (which pro  forma calculation may
include operating expense reductions and other cost savings to the extent permitted
under

 

41

 

Regulation S-X of the SEC or to the extent otherwise
approved by the Syndication Agent), was at least $60,000,000.

 

(n) Insurance. The
Syndication Agent shall have received insurance certificates satisfying the
requirements of Section 5.3(b) of the Guarantee and Collateral Agreement.

 

5.2 Conditions to Each Extension of
Credit. The agreement of each Lender to make any extension of credit
requested to be made by it on any date (including its initial extension of
credit) is subject to the satisfaction of the following conditions precedent:

 

(a) Representations
and Warranties. Each of the representations and warranties made by any Loan
Party in or pursuant to the Loan Documents shall be true and correct on and as
of such date as if made on and as of such date (except to the extent that such
representation or warranty specifically refers to a particular date).

 

(b) No Default. No
Default or Event of Default shall have occurred and be continuing on such date
or after giving effect to the extensions of credit requested to be made on such
date.

 

Each borrowing by and issuance of a Letter of Credit on behalf of the
Borrower hereunder shall constitute a representation and warranty by the
Borrower as of the date of such extension of credit that the conditions
contained in this Section 5.2 have been satisfied.

 

SECTION 6.
AFFIRMATIVE COVENANTS

 

The Borrower hereby agrees that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding or any
Loan or other amount is owing to any Lender or any Agent hereunder, the
Borrower shall and shall cause each of its Subsidiaries to:

 

6.1 Financial Statements. Furnish to the
Administrative Agent, the Syndication Agent and each Lender:

 

(a) as soon as available,
but in any event within 90 days after the end of each fiscal year of the
Borrower, a copy of the audited consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at the end of such year and the related
audited consolidated statements of income and of cash flows for such year,
setting forth in each case in comparative form the figures for the previous
year, reported on without a “going concern” or like qualification or exception,
or qualification arising out of the scope of the audit, by BDO Seidman LLP or
other independent certified public accountants of nationally recognized
standing;

 

(b) as soon as available,
but in any event not later than 45 days after the end of each of the first
three quarterly periods of each fiscal year of the Borrower, the unaudited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at the end of such quarter and the related unaudited consolidated statements of
income and of cash flows for such quarter and the portion of the fiscal year
through the end of such quarter, setting forth in each case in comparative form
the figures for the previous year, certified by a Responsible Officer as being
fairly stated in all material respects (subject to normal year-end audit
adjustments).

 

All such financial statements shall be complete and correct in all
material respects and shall be prepared in reasonable detail and in accordance
with GAAP applied consistently throughout the periods reflected

 

42

 

therein and with prior periods (except as approved by such accountants
or officer, as the case may be, and disclosed therein).

 

6.2 Certificates; Other Information.
Furnish to the Administrative Agent, the Syndication Agent and each Lender (or,
in the case of clause (f), to the relevant Lender):

 

(a) concurrently with the
delivery of the financial statements referred to in Section 6.1(a), a
certificate of the independent certified public accountants reporting on such
financial statements stating that in making the examination necessary therefor
no knowledge was obtained of any Default or Event of Default, except as
specified in such certificate;

 

(b) concurrently with the
delivery of any financial statements pursuant to Section 6.1, (i) a certificate
of a Responsible Officer stating that, to the best of each such Responsible
Officer’s knowledge, each Loan Party during such period has observed or
performed all of its covenants and other agreements, and satisfied every
condition, contained in this Agreement and the other Loan Documents to which it
is a party to be observed, performed or
satisfied  by it, and that
such Responsible Officer has obtained no knowledge of any Default or Event of
Default except as specified in such certificate and (ii) in the case of
quarterly or annual financial statements, (x) a Compliance Certificate
containing all information and calculations necessary for determining
compliance by the Borrower and its Subsidiaries with the provisions of this
Agreement referred to therein as of the last day of the fiscal quarter or
fiscal year of the Borrower, as the case may be, and (y) to the extent not
previously disclosed to the Administrative Agent, a listing of any county or
state within the United States where any Loan Party keeps inventory or
equipment and of any Intellectual Property acquired by any Loan Party since the
date of the most recent list delivered pursuant to this clause (y) (or, in the
case of the first such list so delivered, since the Closing Date);

 

(c) as soon as available,
and in any event no later than 45 days after the end of each fiscal year of the
Borrower, a detailed consolidated budget for the following fiscal year
(including a projected consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of the following fiscal year, the related
consolidated statements of projected cash flow, projected changes in financial
position and projected income and a description of the underlying assumptions
applicable thereto), and, as soon as available, significant revisions, if any,
of such budget and projections with respect to such fiscal year (collectively,
the “Projections”), which Projections shall in each case be accompanied
by a certificate of a Responsible Officer stating that such Projections are
based on reasonable estimates, information and assumptions and that such
Responsible Officer has no reason to believe that such Projections are
incorrect or misleading in any material respect;

 

(d) within 45 days after
the end of each fiscal quarter of the Borrower, a narrative discussion and
analysis of the financial condition and results of operations of the Borrower
and its Subsidiaries for such fiscal quarter and for the period from the
beginning of the then current fiscal year to the end of such fiscal quarter, as
compared to the portion of the Projections covering such periods and to the
comparable periods of the previous year;

 

(e) within five days
after the same are sent, copies of all financial statements and reports that
the Borrower sends to the holders of any class of its debt securities or public
equity securities and, within ten days after the same are filed, copies of all
financial statements and reports that the Borrower may make to, or file with,
the SEC; and

 

43

 

(f) promptly, such
additional financial and other information as any Lender may from time to time
reasonably request.

 

6.3 Payment of Obligations. Pay, discharge or
otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its material obligations of whatever nature, except where
the amount or validity thereof is currently being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP with respect thereto
have been provided on the books of the Borrower or its Subsidiaries, as the
case may be.

 

6.4 Maintenance of Existence; Compliance.
(a)(i) Preserve, renew and keep in full force and effect its corporate
existence and (ii) take all reasonable action to maintain all rights,
privileges and franchises necessary or desirable in the normal conduct of its
business, except, in each case, as otherwise permitted by Section 7.4 and
except, in the case of clause (ii) above, to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect; and (b)
comply with all Contractual Obligations and Requirements of Law except to the
extent that failure to comply therewith could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

6.5 Maintenance of Property; Insurance.
(a) Keep all property useful and necessary in its business in good working
order and condition, ordinary wear and tear excepted and (b) maintain with
financially sound and reputable insurance companies insurance on all its
property in at least such amounts and against at least such risks (but
including in any event public liability, product liability and business
interruption) as are usually insured against in the same general area by
companies engaged in the same or a similar business.

 

6.6 Inspection of Property; Books and
Records; Discussions. (a) Keep proper books of records and account in
which full, true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities and (b) following reasonable notice by any
Lender, permit representatives of such Lender to visit and inspect any of its
properties and examine and make abstracts from any of its books and records at
any reasonable time and as often as may reasonably be desired and to discuss
the business, operations, properties and financial and other condition of the
Borrower and its Subsidiaries with officers and employees of the Borrower and
its Subsidiaries and with its independent certified public accountants.

 

6.7 Notices.
Promptly give notice to the Administrative Agent, the Syndication Agent and
each Lender of:

 

(a) the occurrence  of any Default or Event of Default;

 

(b) any (i) default or
event of default under any Contractual Obligation of the Borrower or any of its
Subsidiaries or (ii) litigation, investigation or proceeding that may exist at
any time between the Borrower or any of its Subsidiaries and any Governmental
Authority, that in either case, if not cured or if adversely determined, as the
case may be, could reasonably be expected to have a Material Adverse Effect;

 

(c) any litigation or
proceeding affecting the Borrower or any of its Subsidiaries (i) in which the
amount involved is $5,000,000 or more and not covered by insurance, (ii) in
which injunctive or similar relief is sought or (iii) which relates to any Loan
Document;

 

(d) the following events,
as soon as possible and in any event within 30 days after the Borrower knows or
has reason to know thereof: (i) the occurrence of any Reportable Event with

 

44

 

respect to any Plan, a failure to make any required
contribution to a Plan, the creation of any Lien in favor of the PBGC or a Plan
or any withdrawal from, or the termination, Reorganization or Insolvency of,
any Multiemployer Plan or (ii) the institution of proceedings or the taking of
any other action by the PBGC or the Borrower or any Commonly Controlled Entity
or any Multiemployer Plan with respect to the withdrawal from, or the
termination, Reorganization or Insolvency of, any Plan; and

 

(e) any development or
event that has had or could reasonably be expected to have a Material Adverse
Effect.

 

Each notice pursuant to this Section 6.7 shall be accompanied by a
statement of a Responsible Officer setting forth details of the occurrence
referred to therein and stating what action the Borrower or the relevant
Subsidiary proposes to take with respect thereto.

 

6.8 Environmental Laws. (a) Comply in all
material respects with, and require compliance in all material respects by all
tenants and subtenants, if any, with, all applicable Environmental Laws, and
obtain and comply in all material respects with and maintain, and require that
all tenants and subtenants obtain and comply in all material respects with and
maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws.

 

(b) Conduct and complete all investigations, studies,
sampling and testing, and all remedial, removal and other actions required
under Environmental Laws and promptly comply in all material respects with all
lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.

 

6.9 Interest Rate Protection. In the case of
the Borrower, in the event that the Consolidated Fixed Charge Coverage Ratio
for any fiscal quarter of the Borrower is less than 2.00 to 1.00, within 10
(ten) Business Days after such occurrence, enter into, and thereafter maintain,
Hedge Agreements to the extent necessary to provide that at least 50% of the
aggregate principal amount of the Term Loans is subject to either a fixed
interest rate or interest rate protection for a period of not less than two
years, which Hedge Agreements shall have terms and conditions reasonably
satisfactory to the Administrative Agent.

 

6.10 Additional Collateral, etc.
(a) With respect to any property acquired after the Closing Date by the
Borrower or any of its Subsidiaries (other than (x) any property described in
paragraph (b), (c) or (d) below, (y) any property subject to a Lien expressly
permitted by Section 7.3(g) and (z) property acquired by any Foreign
Subsidiary) as to which the Administrative Agent, for the benefit of the
Lenders, does not have a perfected Lien, promptly (i) execute and deliver to
the Administrative Agent such amendments to the Guarantee and Collateral
Agreement or such other documents as the Administrative Agent deems necessary
or advisable to grant to the Administrative Agent, for the benefit of the
Lenders, a security interest in such property and (ii) take all actions
necessary or advisable to grant to the Administrative Agent, for the benefit of
the Lenders, a perfected first priority security interest in such property,
including the filing of Uniform Commercial Code financing statements in such
jurisdictions as may be required by the Guarantee and Collateral Agreement or
by law or as may be requested by the Administrative Agent.

 

(b) With respect to any fee interest in any real
property having a value (together with improvements thereof) of at least
$5,000,000 acquired after the Closing Date by the Borrower or any of its
Subsidiaries (other than (x) any such real property subject to a Lien expressly
permitted by Section 7.3(g) and (z) real property acquired by any Foreign
Subsidiary), promptly (i) execute and deliver a first

 

45

 

priority mortgage, in favor of the Administrative Agent, for the
benefit of the Lenders, covering such real property, (ii) if requested by the
Administrative Agent, provide the Lenders with (x) title and extended coverage
insurance covering such real property in an amount at least equal to the
purchase price of such real property (or such other amount as shall be
reasonably specified by the Administrative Agent) as well as a current ALTA
survey thereof, together with a surveyor’s certificate and (y) any consents or
estoppels reasonably deemed necessary or advisable by the Administrative Agent in
connection with such mortgage or deed of trust, each of the foregoing in form
and substance reasonably satisfactory to the Administrative Agent and (iii) if
requested by the Administrative Agent, deliver to the Administrative Agent
legal opinions relating to the matters described above, which opinions shall be
in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.

 

(c) With respect to any new Subsidiary (other than a
Foreign Subsidiary) created or acquired after the Closing Date by the Borrower
or any of its Subsidiaries, (which, for the purposes of this paragraph (c),
shall include any existing Subsidiary that ceases to be a Foreign Subsidiary)
promptly (i) execute and deliver to the Administrative Agent such amendments to
the Guarantee and Collateral Agreement as the Administrative Agent deems
necessary or advisable to grant to the Administrative Agent, for the benefit of
the Lenders, a perfected first priority security interest in the Capital Stock
of such new Subsidiary that is owned by the Borrower or any of its
Subsidiaries, (ii) deliver to the Administrative Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank,
executed and delivered by a duly authorized officer of the Borrower or such
Subsidiary, as the case may be, (iii) cause such new Subsidiary (A) to become a
party to the Guarantee and Collateral Agreement, (B) to take such actions
necessary or advisable to grant to the Administrative Agent for the benefit of
the Lenders a perfected first priority security interest in the Collateral
described in the Guarantee and Collateral Agreement with respect to such new
Subsidiary, including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement or by law or as may be requested by the Administrative
Agent and (C) to deliver to the Administrative Agent a certificate of such
Subsidiary, substantially in the form of Exhibit C, with appropriate insertions
and attachments, and (iv) if requested by the Administrative Agent, deliver to
the Administrative Agent legal opinions relating to the matters described
above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent.

 

(d) With respect to any new Foreign Subsidiary created
or acquired after the Closing Date by the Borrower or any of its Subsidiaries
or with respect to any Excluded Foreign Subsidiary to the extent such Excluded
Foreign Subsidiary engages in any business or acquires any assets after the
Closing Date, promptly (i) execute and deliver
to the Administrative Agent such amendments to the Guarantee and Collateral
Agreement as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of
the Lenders, a perfected first priority security interest in the Capital
Stock of such new Subsidiary that is owned by the Borrower or any of its
Subsidiaries (provided that in no event shall more than 65% of the total
outstanding Capital Stock of any such new Subsidiary be required to be so
pledged), (ii) deliver to the Administrative Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank,
executed and delivered by a duly authorized officer of the Borrower or such
Subsidiary, as the case may be, and take such other action as may be necessary
or, in the opinion of the Administrative Agent, desirable to perfect the
Administrative Agent’s security interest therein, and (iii) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

 

6.11 Further Assurances. From time to time execute
and deliver, or cause to be executed and delivered, such additional
instruments, certificates or documents, and take all such actions, as the
Administrative Agent may reasonably request for the purposes of implementing or
effectuating the

 

46

 

provisions of this Agreement and the other Loan Documents, or of more
fully perfecting or renewing the rights of the Administrative Agent and the
Lenders with respect to the Collateral (or with respect to any additions
thereto or replacements or proceeds thereof or with respect to any other
property or assets hereafter acquired by the Borrower or any Subsidiary which
may be deemed to be part of the Collateral) pursuant hereto or thereto. Upon
the exercise by the Administrative Agent or any Lender of any power, right,
privilege or remedy pursuant to this Agreement or the other Loan Documents
which requires any consent, approval, recording qualification or authorization
of any Governmental Authority, the Borrower will execute and deliver, or will
cause the execution and delivery of, all applications, certifications,
instruments and other documents and papers that the Administrative Agent or
such Lenders may be required to obtain from the Borrower or any of its
Subsidiaries for such governmental consent, approval, recording, qualification
or authorization.

 

SECTION 7.  NEGATIVE COVENANTS

 

The Borrower hereby agrees that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding or any
Loan or other amount is owing to any Lender or any Agent hereunder, the
Borrower shall not, and shall not permit any of its Subsidiaries to, directly
or indirectly:

 

7.1 Financial Condition Covenants.

 

(a) Consolidated Leverage Ratio. Permit the
Consolidated Leverage Ratio as at the last day of any period of four
consecutive fiscal quarters of the Borrower ending with any fiscal quarter set
forth below to exceed the ratio set forth below opposite such fiscal quarter:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  
	
  March 31, 2000

  	
   

  	
  2.50 to 1.00

  	
   

  
	
  June 30, 2000

  	
   

  	
  2.50 to 1.00

  	
   

  
	
  September 30,
  2000

  	
   

  	
  2.50 to 1.00

  	
   

  
	
  December 31,
  2000 and thereafter

  	
   

  	
  2.00 to 1.00

  	
   

  

 

; provided, that for the purposes of determining the ratio
described above for the fiscal quarters of the Borrower ending March 31, 2000
and June 30, 2000, Consolidated EBITDA for the relevant period shall be deemed
to equal Consolidated EBITDA for the period commencing October 1, 1999 through
March 31, 2000 or June 30, 2000, as the case may be, multiplied by 2 and
4/3, respectively.

 

(b) Consolidated Fixed Charge Coverage Ratio.
Permit the Consolidated Fixed Charge Coverage Ratio for any period of four
consecutive fiscal quarters of the Borrower (or, if less, the number of full
fiscal quarters subsequent to September 30, 1999) to be less than 1.50 to 1.00.

 

(c) Consolidated Net Worth. Permit Consolidated
Net Worth at any time to be less than the sum of (i) $110,000,000, (ii) 50% of
cumulative Consolidated Net Income for each fiscal year of the Borrower
(beginning with the fiscal year ending December 31, 2000) for which
Consolidated Net Income is positive, (iii) 100% of the Net Cash Proceeds of any
offering by the Borrower of common equity consummated after the Closing Date
and (iv) 100% of any capital contribution made to the Borrower or any of its
Subsidiaries after the Closing Date by any holder of the Borrower’s Capital
Stock.

 

47

 

7.2 Indebtedness.
Create, issue, incur, assume, become liable in respect of or suffer to exist
any Indebtedness, except:

 

(a) Indebtedness of any
Loan Party pursuant to any Loan Document;

 

(b) Indebtedness (i) of
the Borrower to any Subsidiary, (ii) of any Subsidiary Guarantor to the
Borrower or any other Subsidiary, (iii) of any Foreign Subsidiary to any
Foreign Subsidiary and (iv) subject to Section 7.8(h), of any Foreign
Subsidiary to the Borrower or any Subsidiary Guarantor;

 

(c) Guarantee Obligations
incurred in the ordinary course of business by the Borrower or any of its
Subsidiaries of obligations of any Subsidiary Guarantor and, subject to Section
7.8(h), of any Foreign Subsidiary;

 

(d) Indebtedness
outstanding on the date hereof and listed on Schedule 7.2(d) and any refinancings,
refundings, renewals or extensions thereof (without increasing, or shortening
the maturity of, the principal amount thereof);

 

(e) Indebtedness
(including, without limitation, Capital Lease Obligations) secured by Liens
permitted by Section 7.3(g) in an aggregate principal amount not to exceed
$10,000,000 at any one time outstanding;

 

(f) Hedge Agreements in
respect of Indebtedness otherwise permitted hereby that bears interest at a
floating rate, so long as such agreements are not entered into for speculative
purposes;

 

(g) Indebtedness of
Foreign Subsidiaries in an aggregate principal amount not exceeding $5,000,000
at any one time outstanding for all Foreign Subsidiaries;

 

(h) Indebtedness of the
Borrower or its Subsidiaries in respect of performance bonds, bid bonds, appeal
bonds, surety bonds and similar obligations and trade-related letters of
credit, in each case provided in the ordinary course of business and in no
event in excess of $500,000 at any one time outstanding for all such Indebtedness;

 

(i) Indebtedness arising
from the honoring by a bank or other financial institution of a check, draft or
similar instrument drawn against insufficient funds in the ordinary course of
business; provided that such Indebtedness is extinguished within five
Business Days of its incurrence in accordance with customary business
practices;

 

(j) Indebtedness of any
Person that becomes a Subsidiary after the date hereof; provided that
such Indebtedness exists at the time such Person becomes a Subsidiary and is
not created in contemplation of or in connection with such Person becoming a
Subsidiary; and

 

(k) additional
Indebtedness of the Borrower or any of its Subsidiaries in an aggregate
principal amount (for the Borrower and all Subsidiaries) not to exceed
$5,000,000 at any one time outstanding.

 

7.3 Liens.
Create, incur, assume or suffer to exist any Lien upon any of its property,
whether now owned or hereafter acquired, except for:

 

48

 

(a) Liens for taxes not
yet due or that are being contested in good faith by appropriate proceedings, provided
that adequate reserves with respect thereto are maintained on the books of the
Borrower or its Subsidiaries, as the case may be, in conformity with GAAP;

 

(b) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business that are not overdue for a period of
more than 30 days or that are being contested in good faith by appropriate
proceedings;

 

(c) pledges or deposits
in connection with workers’ compensation, unemployment insurance and other
social security legislation;

 

(d) deposits to secure
the performance of bids, trade contracts (other than for borrowed money),
leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature incurred in the ordinary course of business;

 

(e) easements,
rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business that, in the aggregate, are not substantial in
amount and that do not in any case materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of
the business of the Borrower or any of its Subsidiaries;

 

(f) Liens in existence on
the date hereof listed on Schedule 7.3(f), securing Indebtedness permitted by
Section 7.2(d), and any Liens in connection with the refinancing of any
Indebtedness secured by such Liens, provided that no such Lien is spread
to cover any additional property after the Closing Date and that the amount of
Indebtedness secured thereby is not increased;

 

(g) Liens securing
Indebtedness of the Borrower or any other Subsidiary incurred pursuant to
Section 7.2(e) to finance the acquisition of fixed or capital assets, provided
that (i) such Liens shall be created within 180 days of the acquisition of
such fixed or capital assets, (ii) such Liens do not at any time encumber any
property other than the property financed by such Indebtedness and (iii) the
amount of Indebtedness secured thereby is not increased;

 

(h) Liens created
pursuant to the Security Documents;

 

(i) any interest or title
of a lessor under any lease entered into by the Borrower or any other
Subsidiary in the ordinary course of its business and covering only the assets
so leased;

 

(j) Liens existing on any
property or asset prior to the acquisition thereof by the Borrower or any
Subsidiary or existing on any property or asset of any Person that becomes a
Subsidiary after the date hereof prior to the time such Person becomes a
Subsidiary; provided that (i) such Lien is not created in contemplation
of or in connection with such acquisition or such Person becoming a Subsidiary,
as the case may be, (ii) such Lien shall not apply to any other property or
assets of the Borrower or any Subsidiary and (iii) such Lien shall secure only
those obligations which it secures on the date of such acquisition or the date
such Person becomes a Subsidiary, as the case may be and extensions, renewals
and replacements thereof that do not increase the outstanding principal amount
thereof, and

 

(k) Liens not otherwise
permitted by this Section so long as the aggregate outstanding principal amount
of the obligations secured thereby does not exceed (as to the Borrower and all
Subsidiaries) $5,000,000 at any one time.

 

49

 

7.4 Fundamental Changes. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or Dispose of, all or substantially all
of its property or business, except that:

 

(a) any Subsidiary of the
Borrower or any Person acquired by the Borrower may be merged or consolidated
with or into the Borrower (provided that the Borrower shall be the
continuing or surviving corporation) or with or into any Subsidiary Guarantor (provided
that the Subsidiary Guarantor shall be the continuing or surviving corporation)
or, subject to Section 7.8(h), with or into any Foreign Subsidiary;

 

(b) any Subsidiary of the
Borrower may Dispose of any or all of its assets (upon voluntary liquidation or
otherwise) to the Borrower or any Subsidiary Guarantor, or, subject to Section
7.8(h), any Foreign Subsidiary; and

 

(c) any Subsidiary may
liquidate or dissolve if (i) the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders and (ii) any related Dispositions of
property are permitted under Section 7.5.

 

7.5 Disposition of Property. Dispose of any
of its property, whether now owned or hereafter acquired, or, in the case of
any Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to
any Person, except:

 

(a) the Disposition of
obsolete or worn out property in the ordinary course of business;

 

(b) the sale of inventory
in the ordinary course of business;

 

(c) Dispositions
permitted by Section 7.4(b);

 

(d) the sale or issuance
of any Subsidiary’s Capital Stock to the Borrower or any Subsidiary Guarantor
or, subject to Section 7.8(h), any Foreign Subsidiary; and

 

(e) the Disposition of
other property; provided that the fair market value of such property plus
the aggregate value of all sale and leaseback transactions entered into by the
Borrower pursuant to clause (b) of Section 7.10, does not exceed $25,000,000 in
the aggregate during the term of this Agreement.

 

7.6 Restricted Payments. Declare or pay any
dividend (other than dividends payable solely in common stock of the Person
making such dividend) on, or make any payment on account of, or set apart
assets for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of, any Capital Stock of the
Borrower or any Subsidiary, whether now or hereafter outstanding, or make any
other distribution in respect thereof, either directly or indirectly, whether
in cash or property or in obligations of the Borrower or any Subsidiary, or
enter into any derivatives or other transaction with any financial institution,
commodities or stock exchange or clearinghouse (a “Derivatives Counterparty”)
obligating the Borrower or any Subsidiary to make payments to such Derivatives
Counterparty as a result of any change in market value of any such Capital
Stock (collectively, “Restricted Payments”), except that:

 

50

 

(a) any Subsidiary may
make Restricted Payments to the Borrower or any Wholly Owned Subsidiary
Guarantor;

 

(b) so long as no Default
or Event of Default shall have occurred and be continuing, the Borrower may
make a single purchase of its common stock or common stock options from present
or former directors, officers or employees of the Borrower or any Subsidiary
upon the death, disability or termination of employment of such officer or
employee, provided that the aggregate amount of such purchase shall not
exceed $5,000,000;

 

(c) a Subsidiary of the
Borrower may make dividends or other payments or distributions to (i) a Person
that is not an Affiliate of the Borrower or any of its Subsidiaries or (ii) a
Person that is an Affiliate of NovaMed Inc. in connection with the strategic
alliance between the Borrower and NovaMed Inc. described in Section 7.8(k), provided
that each such dividend or other payment or distribution is made to such Person
concurrently with a dividend or other payment or distribution, as the case may
be, to the Borrower or any of
its Wholly Owned Subsidiaries on a pro rata basis in accordance with their
respective ownership interests in the Subsidiary making such dividend or other
payment or distribution; and

 

(d) so long as no Default
or Event of Default shall have occurred and be continuing, the Borrower may
purchase its common stock; provided that the aggregate amount of such
purchases during any fiscal year of the Borrower may not exceed 25% of
Consolidated Domestic Net Income for the immediately preceding fiscal year of
the Borrower.

 

7.7 Capital Expenditures. Make or commit to
make any Capital Expenditure, except Capital Expenditures of the Borrower and
its Subsidiaries in the ordinary course of business not exceeding (i) an
aggregate amount of $20,000,000 during the fiscal years of the Borrower ending
December 31, 2000 and December 31, 2001; provided that no more than
$15,000,000 of such amount shall be expended in either such fiscal year and
(ii) $7,500,000 during any fiscal year of the Borrower occurring thereafter.

 

7.8 Investments.
Make any advance, loan, extension of credit (by way of guaranty or otherwise)
or capital contribution to, or purchase any Capital Stock, bonds, notes,
debentures or other debt securities of, or any assets constituting a business
unit of, or make any other investment in, any Person (all of the foregoing, “Investments”),
except:

 

(a) extensions of trade credit in the ordinary course
of business;

 

(b) investments in Cash Equivalents;

 

(c) Guarantee Obligations permitted by Section 7.2;

 

(d) loans and advances to
directors, officers and employees of the Borrower or any Subsidiary of the
Borrower in the ordinary course of business (including for travel,
entertainment and relocation expenses) in an aggregate amount for the Borrower
or any Subsidiary of the Borrower not to exceed $2,500,000 at any one time
outstanding;

 

(e) Investments made by
the Borrower or any of its Subsidiaries with the proceeds of any Reinvestment
Deferred Amount in order to repair assets which were the subject of a

 

51

 

Recovery Event or to acquire new assets which are
substitutes for, and are similar to, the assets which were the subject of a
Recovery Event;

 

(f) intercompany
Investments by the Borrower or any of its Subsidiaries in the Borrower or any
Person that, prior to such Investment, is a Subsidiary Guarantor;

 

(g) the Borrower and its
Subsidiaries may make Investments in account debtors received in connection
with the bankruptcy or reorganization, or in settlement of delinquent
obligations, of customers in the ordinary course of business and in accordance
with applicable collection and credit policies established by the Borrower or
its applicable Subsidiary;

 

(h) intercompany
Investments by the Borrower or any of its Subsidiaries in any Person, that,
prior to such Investment, is a Foreign Subsidiary (including, without
limitation, Guarantee Obligations with respect to obligations of any such
Foreign Subsidiary, loans made to any such Foreign Subsidiary and Investments
resulting from mergers with or sales of assets to any such Foreign Subsidiary)
in an aggregate amount (valued at cost) not to exceed, together with any
Investment pursuant to paragraph (i) of this Section that results in the
creation or acquisition of a Foreign Subsidiary or the acquisition of assets by
a Foreign Subsidiary or any Investment in the Capital Stock of any Person which
is incorporated outside the United States of America, $5,000,000 during the
term of this Agreement;

 

(i) the Borrower and its
Subsidiaries may maintain Investments existing on the Closing Date and
described in Schedule 7.8(i);

 

(j) the Borrower and its
Subsidiaries may make Investments in an aggregate amount not to exceed
$5,000,000 pursuant to the strategic alliance between the Borrower and Advanced
Tissue Sciences, Inc. set forth in the letter agreement dated as of May 10,
1999 between Advanced Tissue Sciences, Inc. and the Borrower;

 

(k) the Borrower and its
Subsidiaries may make Investments in an aggregate amount not to exceed
$2,500,000 pursuant to the strategic alliance between the Borrower and NovaMed
Inc. set forth in the letter agreement dated March 25, 1999 between NovaMed
Inc. and the Borrower;

 

(1) Investments resulting
from Capital Expenditures permitted under Section 7.7;

 

(m) Permitted
Acquisitions; and

 

(n) in addition to
Investments otherwise expressly permitted by this Section, Investments by the
Borrower or any of its Subsidiaries in an aggregate amount (valued at cost) not
to exceed $1,000,000 during the term of this Agreement.

 

7.9 Transactions with Affiliates. Enter
into any transaction, including any purchase, sale, lease or exchange of property,
the rendering of any service or the payment of any management, advisory or
similar fees, with any Affiliate (other than the Borrower or any Subsidiary
Guarantor) unless such transaction is (a) not prohibited under this Agreement,
(b) in the ordinary course of business of the Borrower or such Subsidiary, as
the case may be, and (c) upon fair and reasonable terms no less favorable to
the Borrower or such Subsidiary, as the case may be, than it would obtain in a
comparable arm’s length transaction with a Person that is not an Affiliate.

 

52

 

7.10 Sales and Leasebacks. Enter into any
arrangement with any Person providing for the leasing by the Borrower or any
Subsidiary of real or personal property that has been or is to be sold or
transferred by the Borrower or such Subsidiary to such Person or to any other
Person to whom funds have been or are to be advanced by such Person on the
security of such property or rental obligations of the Borrower or such Subsidiary,
except for (a) any such sale and leaseback transactions which result in the
creation of Capital Lease Obligations, which shall be permitted to the extent
such Capital Lease obligations are permitted under Section 7.2, and (b) any
such sale and leaseback transactions (other than any such transaction which
results in the creation of a Capital Lease Obligation) the aggregate value of
which, together with the aggregate value of all Dispositions of property made
pursuant to Section 7.5(e), do not exceed $25,000,000.

 

7.11 Changes in Fiscal Periods. Permit the
fiscal year of the Borrower to end on a day other than December 31 or change
the Borrower’s method of determining fiscal quarters; provided that the
Borrower may make one election after the Closing Date to change its fiscal year
end, if the Borrower enters into such amendments to this Agreement as the
Administrative Agent shall request to reflect such change, including
modifications to Section 7, such that the covenants affected by such change shall
have the same effect (or, in any case, be substantively no less favorable to
the Lenders, in the determination of the Administrative Agent) after giving
effect thereto as if such change were not made. The Lenders hereby authorize
the Administrative Agent to enter into such amendments to effect such
modifications, if any, in accordance with the provisions of this Section.

 

7.12 Negative Pledge Clauses. Enter into or
suffer to exist or become effective any agreement that prohibits or limits the
ability of the Borrower or any of its Subsidiaries to create, incur, assume or
suffer to exist any Lien upon any of its property or revenues, whether now
owned or hereafter acquired, to secure its obligations under the Loan Documents
to which it is a party other than (a) this Agreement and the other Loan
Documents, (b) any agreements governing any purchase money Liens or Capital
Lease Obligations otherwise permitted hereby (in which case, any prohibition or
limitation shall only be effective against the assets financed thereby) or any
agreements governing any Indebtedness permitted under Section 7.2 (in which
case any prohibition or limitation shall permit the obligation of the Borrower
and its Subsidiaries in respect of the Loan Documents (any extension, renewal,
refunding, refinancing, replacement or increase thereof) to be secured by any
and all of the assets of the Borrower and its Subsidiaries), (c) any instrument
governing Acquired Debt or Capital Stock of a Person acquired by the Borrower
or any of its Subsidiaries as in effect at the time of such acquisition (except
to the extent such Acquired Debt was incurred or such Capital Stock was issued
or incurred or its terms amended in connection with or in contemplation of such
acquisition), which encumbrance or restriction is not applicable to any Person,
or the property or any Person, other than the Person or the property of the
Person, so acquired and (d) customary non-assignment provisions in leases
entered into in the ordinary course of business and consistent with past
practices.

 

7.13 Clauses Restricting Subsidiary
Distribution. Enter into or suffer to exist or become effective any
consensual encumbrance or restriction on the ability of any Subsidiary of the
Borrower to (a) make Restricted Payments in respect of any Capital Stock of
such Subsidiary held by, or pay any Indebtedness owed to, the Borrower or any
other Subsidiary of the Borrower, (b) make loans or advances to, or other
Investments in, the Borrower or any other Subsidiary of the Borrower or (c)
transfer any of its assets to the Borrower or any other Subsidiary of the
Borrower, except for such encumbrances or restrictions existing under or by
reason of (i) any restrictions existing under the Loan Documents, (ii) any
restrictions with respect to a Subsidiary imposed pursuant to an agreement that
has been entered into in connection with the Disposition of all or
substantially all of the Capital Stock or assets of such Subsidiary, (iii) any
instrument governing Acquired Debt or Capital Stock of a Person acquired by the
Borrower or any of its Subsidiaries as in effect at the time of such
acquisition (except to the extent such

 

53

 

Acquired Debt was
incurred or such Capital Stock was issued or incurred or its terms amended in
connection with or in contemplation of such acquisition), which encumbrance or
restriction is not applicable to any Person, or the property or any Person,
other than the Person or the property of the Person, so acquired and (iv)
customary non-assignment provisions in leases entered into in the ordinary
course of business and consistent with past practices.

 

7.14 Lines of Business. Enter into any business,
either directly or through any Subsidiary, except for those businesses in which
the Borrower and its Subsidiaries are engaged on the date of this Agreement or
that are reasonably related thereto.

 

SECTION 8.  EVENTS OF DEFAULT

 

If any of the following events shall occur and be
continuing:

 

(a) the Borrower shall
fail to pay any principal of any Loan or Reimbursement Obligation when due in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan or Reimbursement Obligation, or any other amount payable
hereunder or under any other Loan Document, within five days after any such
interest or other amount becomes due in accordance with the terms hereof; or

 

(b) any representation or
warranty made or deemed made by any Loan Party herein or in any other Loan
Document or that is contained in any certificate, document or financial or
other statement furnished by it at any time under or in connection with this
Agreement or any such other Loan Document shall prove to have been inaccurate
in any material respect on or as of the date made or deemed made; or

 

(c) any Loan Party shall
default in the observance or performance of any agreement contained in clause
(i) or (ii) of Section 6.4(a) (with respect to the Borrower only), Section
6.7(a) or Section 7 of this Agreement or Sections 5.6 and 5.8(b) of the
Guarantee and Collateral Agreement; or

 

(d) any Loan Party shall
default in the observance or performance of any other agreement contained in
this Agreement or any other Loan Document (other than as provided in paragraphs
(a) through (c) of this Section), and such default shall continue unremedied
for a period of 30 days after notice to the Borrower from the Administrative
Agent or the Required Lenders; or

 

(e) the Borrower or any
of its Subsidiaries shall (i) default in making any payment of any principal of
any Indebtedness (including any Guarantee Obligation, but excluding the Loans)
on the scheduled or original due date with respect thereto; or (ii) default in
making any payment of any interest on any such Indebtedness beyond the period
of grace, if any, provided in the instrument or agreement under which such
Indebtedness was created; or (iii) default in the observance or performance of
any other agreement or condition relating to any such Indebtedness or contained
in any instrument or agreement evidencing, securing or relating thereto, or any
other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to permit the holder or beneficiary of
such Indebtedness (or a trustee or agent on behalf of such holder or
beneficiary) to cause, with the giving of notice if required, such Indebtedness
to become due prior to its stated maturity to become subject to a mandatory
offer to purchase by the obligor thereunder or (in the case of any such
Indebtedness constituting a Guarantee Obligation) to become payable; provided,
that a default, event or condition described in clause (i), (ii) or (iii)

 

54

 

of this paragraph (e) shall not at any time constitute
an Event of Default unless, at such time, one or more defaults, events or
conditions of the type described in clauses (i), (ii) and (iii) of this
paragraph (e) shall have occurred and be continuing with respect to
Indebtedness the outstanding principal amount of which exceeds in the aggregate
$5,000,000; or

 

(f) (i) the Borrower or
any of its Subsidiaries shall commence any case, proceeding or other action (A)
under any existing or future law of any jurisdiction, domestic or foreign,
relating to bankruptcy, insolvency, reorganization or relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding–up, liquidation, dissolution, composition or other
relief with respect to it or its debts, or (B) seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or
for all or any substantial part of its assets, or the Borrower or any of its
Subsidiaries shall make a general assignment for the benefit of its creditors;
or (ii) there shall be commenced against the Borrower or any of its
Subsidiaries any case, proceeding or
other action of a nature referred to in clause (i) above that (A)
results in the entry of an order for
relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of 60 days; or (iii) there
shall be commenced against the Borrower or any of its Subsidiaries any case,
proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of
its assets that results in the entry of an order for any such relief that shall
not have been vacated, discharged, or stayed or bonded pending appeal within 60
days from the entry thereof, or (iv) the Borrower or any of its Subsidiaries
shall take any action in furtherance of, or indicating its consent to, approval
of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii)
above; or (v) the Borrower or any of its Subsidiaries shall generally not, or
shall be unable to, or shall admit in writing its inability to, pay its debts
as they become due; or

 

(g) (i) any Person shall
engage in any “prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) involving any Plan, (ii) any “accumulated funding
deficiency” (as defined in Section 302 of ERISA), whether or not waived, shall
exist with respect to any Plan or any Lien in favor of the PBGC or a Plan shall
arise on the assets of the Borrower or any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
purposes of Title IV of ERISA, (v) the Borrower or any Commonly Controlled
Entity shall, or in the reasonable opinion of the Required Lenders is likely
to, incur any liability in connection with a withdrawal from, or the Insolvency
or Reorganization of, a Multiemployer Plan or (vi) any other event or condition
shall occur or exist with respect to a Plan; and in each case in clauses (i)
through (vi) above, such event or condition, together with all other such
events or conditions, if any, could, in the sole judgment of the Required
Lenders, reasonably be expected to have a Material Adverse Effect; or

 

(h) one or more judgments
or decrees shall be entered against the Borrower or any of its Subsidiaries
involving in the aggregate a liability (not paid or fully covered by insurance
as to which the relevant insurance company has acknowledged coverage) of
$5,000,000 or more, and all such judgments or decrees shall not have been
vacated, discharged, stayed or bonded pending appeal within 60 days from the
entry thereof, or

 

55

 

(i) any of the Security
Documents shall cease, for any reason, to be in full force and effect, or any
Loan Party or any Affiliate of any Loan Party shall so assert, or any Lien
created by any of the Security Documents shall cease to be enforceable and of
the same effect and priority purported to be created thereby; or

 

(j)
the guarantee contained in Section 2 of the Guarantee and Collateral
Agreement shall cease, for any reason, to be in full  force and
effect or any Loan Party or any Affiliate of any Loan Party shall so assert; or

 

(k) (i) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), excluding the
Permitted Investors, shall become, or obtain rights (whether by means or
warrants, options or otherwise) to become, the “beneficial owner” (as defined
in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly,
of more than 35% of the outstanding common stock of the Borrower; or (ii) the
board of directors of the Borrower shall cease to consist of a majority of
Continuing Directors;

 

then, and in any such event, (A) if such event is an Event of Default
specified in clause (i) or (ii) of paragraph (f) above with respect to the
Borrower, automatically the Commitments shall immediately terminate and the
Loans hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters
of Credit shall have presented the documents required thereunder) shall
immediately become due and payable, and (B) if such event is any other Event of
Default, either or both of the following actions may be taken: (i) with the
consent of the Required Lenders, the Administrative Agent may, or upon the
request of the Required Lenders, the Administrative Agent shall, by notice to
the Borrower declare the Revolving Commitments to be terminated forthwith,
whereupon the Revolving Commitments shall immediately terminate; and (ii) with
the consent of the Required Lenders, the Administrative Agent may, or upon the
request of the Required Lenders, the Administrative Agent shall, by notice to
the Borrower, declare the Loans hereunder (with accrued interest thereon) and
all other amounts owing under this Agreement and the other Loan Documents
(including all amounts of L/C Obligations, whether or not the beneficiaries of
the then outstanding Letters of Credit shall have presented the documents
required thereunder) to be due and payable forthwith, whereupon the same shall
immediately become due and payable. With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time
deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit. Amounts held in such cash collateral account shall be applied by the
Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay other
obligations of the Borrower hereunder and under the other Loan Documents. After
all such Letters of Credit shall have expired or been fully drawn upon, all Reimbursement
Obligations shall have been satisfied and all other obligations of the Borrower
hereunder and under the other Loan Documents shall have been paid in full, the
balance, if any, in such cash collateral account shall be returned to the
Borrower (or such other Person as may be lawfully entitled thereto). Except as
expressly provided above in this Section, presentment, demand, protest and all
other notices of any kind are hereby expressly waived by the Borrower.

 

56

 

SECTION 9. THE AGENTS

 

9.1 Appointment.
Each Lender hereby irrevocably designates and appoints each Agent as the agent
of such Lender under this Agreement and the other Loan Documents, and each such
Lender irrevocably authorizes such Agent, in such capacity, to take such action
on its behalf under the provisions of this Agreement and the other Loan
Documents and to exercise such powers and perform such duties as are expressly
delegated to such Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary elsewhere in this
Agreement, no Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against any Agent.

 

9.2 Delegation of Duties. Each Agent may execute
any of its duties under this Agreement and the other Loan Documents by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. No Agent shall be responsible
for the negligence or misconduct of any agents or attorneys-in-fact selected by
it with reasonable care.

 

9.3 Exculpatory Provisions. Neither any Agent
nor any of their 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 Loan Document (except to the extent that any
of the foregoing result from its or such Person’s own gross negligence or
willful misconduct) or (ii) responsible in any manner to any of the Lenders for
any recitals, statements, representations or warranties made by any Loan Party
or any officer thereof contained in this Agreement or any other Loan Document
or in any certificate, report, statement or other document referred to or
provided for in, or received by the Agents under or in connection with, this
Agreement or any other Loan Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document or for any failure of any Loan Party a party thereto to perform its
obligations hereunder or thereunder. The Agents shall not be under any
obligation to any Lender 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 Loan Document, or to inspect the properties, books or
records of any Loan Party.

 

9.4 Reliance by Agents. Each 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 Borrower), independent accountants and other experts
selected by such Agent. Each Agent 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 Administrative
Agent. The Administrative Agent shall be fully justified in failing or refusing
to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Required Lenders (or, if
so specified by this Agreement, all Lenders) as it deems appropriate or it
shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense that may be incurred by it by reason of taking or
continuing to take an), such action. The Agents shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the
other Loan Documents in accordance with a request of the Required Lenders (or,
if so specified by this Agreement, all Lenders), and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and all future holders of the Loans.

 

57

 

9.5 Notice of Default.  No Agent shall be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless such Agent has
received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
“notice of default”. In the event that the Administrative Agent receives such a
notice, the Administrative Agent shall give notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or,
if so specified by this Agreement, all Lenders or any other instructing group
of Lenders specified by this Agreement); provided that unless and until
the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders.

 

9.6 Non-Reliance on Agents and Other
Lenders.  Each Lender expressly
acknowledges that neither the Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates have made any
representations or warranties to it and that no act by any Agent hereafter
taken, including any review of the affairs of a Loan Party or any affiliate of
a Loan Party, shall be deemed to constitute any representation or warranty by
any Agent to any Lender. Each Lender represents to the Agents that it has,
independently and without reliance upon any Agent or any other Lender, 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 creditworthiness of the Loan Parties and
their affiliates and made its own decision to make its Loans hereunder and
enter into this Agreement. Each Lender also represents that it will,
independently and without reliance upon any Agent or any other Lender, 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 Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their affiliates. Except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent hereunder, the Administrative Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of any Loan Party or any affiliate
of a Loan Party that may come into the possession of the Administrative Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.

 

9.7 Indemnification. The Lenders agree to indemnify
each Agent in its capacity as such (to the extent not reimbursed by the
Borrower and without limiting the obligation of the Borrower to do so), ratably
according to their respective Aggregate Exposure Percentages 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 paid in full, ratably in accordance
with such Aggregate Exposure Percentages 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
Loans) be imposed on, incurred by or asserted against such Agent in any way
relating to or arising out of, the Commitments, this Agreement, any of the
other Loan 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 such Agent under or in connection with any of the foregoing; provided
that no Lender 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 such Agent’s gross negligence or willful misconduct. The Agents shall have
the right to deduct any amount owed to it by any Lender under this

 

58

 

Section 9.7 from any payment made by it to such Lender hereunder. The
agreements in this Section shall survive the payment of the Loans and all other
amounts payable hereunder.

 

9.8 Agent in Its Individual Capacity.
Each Agent and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with any Loan Party as though such
Agent were not an Agent. With respect to its Loans made or renewed by it and
with respect to any Letter of Credit issued or participated in by it, each
Agent shall have the same rights and powers under this Agreement and the other
Loan Documents as any Lender and may exercise the same as though it were not an
Agent, and the terms “Lender” and “Lenders” shall include each Agent in its
individual capacity.

 

9.9 Successor Administrative Agent.
The Administrative Agent may resign as Administrative Agent upon 10 days’
notice to the Lenders and the Borrower. If the Administrative Agent shall
resign as Administrative Agent under this Agreement and the other Loan
Documents, then the Required Lenders shall appoint from among the Lenders a
successor agent for the Lenders, which successor agent shall (unless an Event
of Default under Section 8(a) or Section 8(f) with respect to the Borrower
shall have occurred and be continuing) be subject to approval by the Borrower
(which approval shall not be unreasonably withheld or delayed), whereupon such
successor agent shall succeed to the rights, powers and duties of the
Administrative Agent, and the term “Administrative Agent” shall mean such successor agent effective
upon such appointment and approval, and the former Administrative Agent’s
rights, powers and duties as Administrative Agent shall be terminated, without
any other or further act or deed on the part of such former Administrative
Agent or any of the parties to this Agreement or any holders of the Loans. If
no successor agent has accepted appointment as Administrative Agent by the date
that is 10 days following a retiring Administrative Agent’s notice of
resignation, the retiring Administrative Agent’s resignation shall nevertheless
thereupon become effective and the Lenders shall assume and perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above. The
Syndication Agent may, at any time, by notice to the Lenders and the
Administrative Agent, resign as Syndication Agent hereunder, whereupon the
duties, rights, obligations and responsibilities of the Syndication Agent
hereunder shall automatically be assumed by, and inure to the benefit of, the
Administrative Agent, without any further act by the Syndication Agent, the
Administrative Agent or any Lender. After any retiring Administrative Agent’s
resignation as Administrative Agent, 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 Administrative Agent under this Agreement and the other Loan Documents.

 

9.10 Agents Generally. Except as expressly set forth
herein, neither the Administrative Agent nor the Syndication Agent shall have
any duties or responsibilities hereunder in its capacity as such.

 

9.11 The Lead Arranger. The Lead Arranger, in its
capacity as such, shall have no duties or responsibilities, and shall incur no
liability, under this Agreement and other Loan Documents.

 

9.12 The Documentation Agent. The
Documentation Agent, in its capacity as such, shall have no duties or
responsibilities, and shall incur no liability, under this Agreement and the
other Loan Documents.

 

SECTION 10. MISCELLANEOUS

 

10. 1 Amendments and Waivers. Neither this
Agreement, any other Loan Document, nor any terms hereof or thereof may be
amended, supplemented or modified except in accordance with the provisions of
this Section 10.1. The Required Lenders and each Loan Party party to the
relevant Loan

 

59

 

Document may, or, with the written consent of the Required Lenders, the
Administrative Agent and each Loan Party party to the relevant Loan Document
may, from time to time, (a) enter into written amendments, supplements or
modifications hereto and to the other Loan Documents for the purpose of adding
any provisions to this Agreement or the other Loan Documents or changing in any
manner the rights of the Lenders or of the Loan Parties hereunder or thereunder
or releasing any Collateral or any Subsidiary Guarantor (other than, in each case,
any such release in connection with any Disposition expressly permitted under
Section 7.5) or (b) waive, on such terms and conditions as the Required
Lenders or the Administrative Agent (with the consent of the Required Lenders),
as the case may be, may specify in such instrument, any of the requirements of
this Agreement or the other Loan Documents or any Default or Event of Default
and its consequences; provided,  however, that no such waiver and
no such amendment, supplement or modification shall (i) forgive the principal
amount or extend the final scheduled date of maturity of any Loan, extend the
scheduled date of any amortization payment in respect of any Term Loan, reduce
the stated rate of any interest or fee payable hereunder (except (x) in connection
with the waiver of applicability of any post-default increase in interest
rates, which waiver shall be effective with the consent of the Majority
Facility Lenders of each adversely affected Facility) and (y) that any
amendment or modification of defined terms used in the financial covenants in
this Agreement shall not constitute a reduction in the rate of interest or fees
for purposes of this clause (i)) or extend the scheduled date of any payment
thereof, or increase the amount or extend the expiration date of any Lender’s
Revolving Commitment, in each case without the written consent of each Lender
directly affected thereby; (ii) eliminate or reduce the voting rights of any
Lender under this Section 10.1 without the written consent of such Lender; (iii)
reduce any percentage specified in the definition of Required Lenders, consent
to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement and the other Loan Documents, release all or
substantially all of the Collateral or release all or substantially all of the
Subsidiary Guarantors from their obligations under the Guarantee and Collateral
Agreement, in each case without the written consent of all Lenders; (iv) amend,
modify or waive any condition precedent to any extension of credit under the
Revolving Facility set forth in Section 5.2 (including in connection with any
waiver of an existing Default or Event of Default) without the written consent
of the Majority Facility Lenders with respect to the Revolving Facility; (v)
reduce the percentage specified in the definition of Majority Facility Lenders
with respect to any Facility without the written consent of all Lenders under
such Facility; (vi) amend, modify or waive any provision of Section 9 without
the written consent of each Agent adversely affected thereby; (vii) amend,
modify or waive any provision of Section
2.6 or 2.7 without the written consent of the Swingline Lender; or
(viii) amend, modify or waive any provision of Section 3 without the written consent
of the Issuing Lender. Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding
upon the Loan Parties, the Lenders, the Agents and all future holders of the
Loans. In the case of any waiver, the Loan Parties, the Lenders and the Agents
shall be restored to their former position and rights hereunder and under the
other Loan Documents, and any Default or Event of Default waived shall be
deemed to be cured and not continuing; but no such waiver shall extend to any
subsequent or other Default or Event of Default, or impair any right consequent
thereon.

 

For the avoidance of doubt, this Agreement may be
amended (or amended and restated) with the written consent of the Required
Lenders, the Syndication Agent, the Administrative Agent and the Borrower (a)
to add one or more additional credit facilities to this Agreement and to permit
the extensions of credit from time to time outstanding thereunder and the
accrued interest and fees in respect thereof (collectively, the “Additional
Extensions of Credit”) to share ratably in the benefits of this Agreement
and the other Loan Documents with the Term Loans and Revolving Extensions of
Credit and the accrued interest and fees in respect thereof and (b) to include
appropriately the Lenders holding such credit facilities in any determination
of the Required Lenders and Majority Facility Lenders; provided, that no
such amendment shall permit the Additional Extensions of Credit to share
ratably with or with preference to the Term Loans in the application of
mandatory prepayments without the consent of the

 

60

 

Majority Facility Lenders with respect to the Term Facility or
otherwise to share ratably with or with preference to the Revolving Extensions
of Credit without the consent of the Majority Facility Lenders with respect to
the Revolving Facility.

 

10.2 Notices.
All notices, requests and demands to or upon the respective parties hereto to
be effective shall be in writing (including by telecopy), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when
delivered, or three Business Days after being deposited in the mail, postage
prepaid, or, in the case of telecopy notice, when received, addressed as
follows in the case of the Borrower and the Agents, and as set forth in an
administrative questionnaire delivered to the Administrative Agent in the case
of the Lenders, or to such other address as may be hereafter notified by the
respective parties hereto:

 

	
  The Borrower:

  	
   

  	
  Inamed Corporation

  
	
   

  	
   

  	
  11 Penn Plaza

  
	
   

  	
   

  	
  Suite 946

  
	
   

  	
   

  	
  New York, New York 10001

  
	
   

  	
   

  	
  Telecopy: (212) 273-9622

  
	
   

  	
   

  	
  Telephone: (212) 273-3430

  
	
   

  	
   

  	
   

  
	
  The Administrative Agent:

  	
   

  	
  First Union National Bank

  
	
   

  	
   

  	
  201 South College Street, CP-23

  
	
   

  	
   

  	
  Charlotte, North Carolina 28288-0680

  
	
   

  	
   

  	
  Attention: Syndication Agency Services

  
	
   

  	
   

  	
  Telecopy: (704) 383-0835

  
	
   

  	
   

  	
  Telephone: (704) 383-3721

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Robinson, Bradshaw & Hinson, P.A.

  
	
   

  	
   

  	
  101 North Tryon Street, Suite 1900

  
	
   

  	
   

  	
  Charlotte, North Carolina 28246

  
	
   

  	
   

  	
  Attention: Richard L. Mack

  
	
   

  	
   

  	
  Telecopy: (704) 378-4000

  
	
   

  	
   

  	
  Telephone: (704) 377-2536

  
	
   

  	
   

  	
   

  
	
  The Syndication Agent:

  	
   

  	
  Bear Steams Corporate Lending Inc.

  
	
   

  	
   

  	
  245 Park Avenue

  
	
   

  	
   

  	
  New York, NY 10167

  
	
   

  	
   

  	
  Attention: Andrea LaBonte

  
	
   

  	
   

  	
  Telecopy: (212) 272-9743

  
	
   

  	
   

  	
  Telephone: (212) 272-0832

  

 

provided that any notice, request or
demand to or upon any Agent, the Issuing Lender, or the Lenders shall not be
effective until received.

 

10.3 No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising, on the part of any Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

 

61

 

10.4 Survival of Representations and
Warranties.  All representations
and warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of
the Loans and other extensions of credit hereunder.

 

10.5 Payment of Expenses and Taxes.  The Borrower agrees (a) to pay or reimburse
each Agent for all its out-of-pocket costs and expenses incurred in connection
with the development, preparation and execution of, and any amendment,
supplement or modification to, this Agreement and the other Loan Documents and
any other documents prepared in connection herewith or therewith, and the
consummation of the transactions contemplated hereby and thereby, including the
reasonable fees and disbursements of counsel to such Agent and filing and
recording fees and expenses, with statements with respect to the foregoing to
be submitted to the Borrower prior to the Closing Date (in the case of amounts
to be paid on the Closing Date) and from time to time thereafter on a quarterly
basis or such other periodic basis as such Agent shall deem appropriate, (b) to
pay or reimburse each Lender and such Agent for all its costs and expenses
incurred in connection with the enforcement or preservation of any rights under
this Agreement, the other Loan Documents and any such other documents,
including the fees and disbursements of counsel (including the allocated fees
and expenses of in-house counsel) to each Lender and of counsel to such Agent,
(c) to pay, indemnify, and hold each Lender and such Agent harmless from, any
and all recording and filing fees and any and all liabilities with respect to,
or resulting from any delay in paying, stamp, excise and other taxes, if any,
that may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or any amendment, supplement or modification of,
or any waiver or consent under or in respect of, this Agreement, the other Loan
Documents and any such other documents, and (d) to pay, indemnify, and hold
each Lender and each Agent and their respective officers, directors, employees,
affiliates, agents and controlling persons (each, an “Indemnitee”)
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Loan
Documents and any such other documents, including any of the foregoing relating
to the use of proceeds of the Loans or the violation of, noncompliance with or
liability under, any Environmental Law applicable to the operations of the
Borrower any of its Subsidiaries or any of the Properties and the reasonable
fees and expenses of legal counsel in connection with claims, actions or
proceedings by any Indemnitee against any Loan Party under any Loan Document
(all the foregoing in this clause (d), collectively, the “Indemnified
Liabilities”), provided, that the Borrower shall have no obligation
hereunder to any Indemnitee with respect to Indemnified Liabilities to the
extent such Indemnified Liabilities result from the gross negligence or willful
misconduct of such Indemnitee or from the breach of its obligations under this
Agreement. Without limiting the foregoing, and to the extent permitted by
applicable law, the Borrower agrees not to assert and to cause its Subsidiaries
not to assert, and hereby waives and agrees to cause its Subsidiaries to waive,
all rights for contribution or any other rights of recovery with respect to all
claims, demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature, under or related to Environmental Laws,
that any of them might have by statute or otherwise against any Indemnitee. All
amounts due under this Section 10.5 shall be payable not later than 10 days
after written demand therefor. Statements payable by the Borrower pursuant to
this Section 10.5 shall be submitted to Michael Doty (Telephone No.
212-273-3430) (Telecopy No. 212-273-9622) at the address of the Borrower set
forth in Section 10.2, or to such other Person or address as may be hereafter
designated by the Borrower in a written notice to the Administrative Agent. The
agreements in this Section 10.5 shall survive repayment of the Loans and all
other amounts payable hereunder.

 

10.6 Successors and Assigns;
Participations and Assignments. (a) This Agreement shall be binding
upon and inure to the benefit of the Borrower, the Lenders, the Administrative
Agent, all 

 

62

 

future holders of the Loans and their respective successors and
assigns, except that the Borrower may not assign or transfer any of its rights
or obligations under this Agreement without the prior written consent of each
Lender.

 

(b) Any Lender other than any Conduit Lender may,
without the consent of the Borrower, in accordance with applicable law, at any
time sell to one or more banks, financial institutions or other entities (each,
a “Participant”) participating interests in any Loan owing to such
Lender, any Commitment of such Lender or any other interest of such Lender
hereunder and under the other Loan Documents. In the event of any such sale by
a Lender of a participating interest to a Participant, such Lender’s
obligations under this Agreement to the other parties to this Agreement shall
remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Loan for
all purposes under this Agreement and the other Loan Documents, and the
Borrower and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and the other Loan Documents. In no event
shall any Participant under any such participation have any right to approve
any amendment or waiver of any provision of any Loan Document, or any consent
to any departure by any  Loan Party therefrom except to the
extent that such amendment, waiver or consent would reduce the principal of, or
interest on, the Loans or any fees payable hereunder, or postpone the date of
the final maturity of the Loans, in each case to the extent subject to such participation.
The Borrower agrees that if amounts outstanding under this Agreement and the
Loans are due or unpaid, or shall have been declared or shall have become due
and payable upon the occurrence of an Event of Default, each Participant shall,
to the maximum extent permitted by applicable law, be deemed to have the right
of setoff in respect of its participating interest in amounts owing under this
Agreement to the same extent as  if the amount of its participating
interest were owing directly to it as a Lender under this Agreement, provided
that, in purchasing such participating interest, such Participant shall be
deemed to have agreed to share
with the Lenders the proceeds thereof as provided in Section 10.7(a) as fully
as if it were a Lender hereunder. The Borrower also agrees that each
Participant shall be entitled to the benefits of Sections 2.18, 2.19 and 2.20
with respect to its participation in the Commitments and the Loans outstanding
from time to time as if it was a Lender; provided that, in the case of
Section 2.19, such Participant shall have complied with the requirements of
said Section and provided, further, that no Participant shall be
entitled to receive any greater amount pursuant to any such Section than the
transferor Lender would have been entitled to receive in respect of the amount
of the participation transferred by such transferor Lender to such Participant
had no such transfer occurred.

 

(c) Any Lender other than any Conduit Lender (an “Assignor”)
may, in accordance with applicable law, at any time and from time to time
assign to any Lender, any affiliate of any Lender or any Approved Fund or, with
the consent of the Borrower, the Syndication Agent and the Administrative Agent
(which, in each case, shall not be unreasonably withheld or delayed), to an
additional bank, financial institution or other entity (an “Assignee”)
all or any part of its rights and obligations under this Agreement and the
other Loan Documents pursuant to an Assignment and Acceptance, executed by such
Assignee, such Assignor and any other Person whose consent is required pursuant
to this paragraph, and delivered to the Administrative Agent for its acceptance
and recording in the Register; provided that no such assignment to an
Assignee (other than any Lender, any affiliate of any Lender or any Approved
Fund) shall be in an aggregate principal amount of less than $1,000,000 (other
than in the case of an assignment of all of a Lender’s interests under this
Agreement), unless otherwise agreed by the Borrower and the Administrative
Agent. For purposes of the proviso contained in the preceding sentence, the
amount described therein shall be aggregated in respect of each Lender and its
related Approved Funds, if any. Any such assignment need not be ratable as
among the Facilities. Upon such execution, delivery, acceptance and recording,
from and after the effective date determined pursuant to such Assignment and
Acceptance, (x) the Assignee thereunder shall be a party hereto and, to the
extent provided in such

 

63

 

Assignment and Acceptance, have the rights and obligations of a Lender
hereunder with a Commitment and/or Loans as set forth therein, and (y) the
Assignor thereunder shall, to the extent provided in such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of an Assignor’s rights and
obligations under this Agreement, such Assignor shall cease to be a party
hereto). Notwithstanding any provision of this Section 10.6, the consent of the
Borrower shall not be required for any assignment that occurs when an Event of
Default pursuant to Section 8(f) shall have occurred and be continuing with
respect to the Borrower. Notwithstanding the foregoing, any Conduit Lender may
assign at any time to its designating Lender hereunder without the consent of
the Borrower or the Administrative Agent any or all of the Loans it my have
funded hereunder and pursuant to its designation agreement and without regard
to the limitations set forth in the first sentence of this Section 10.6(c).

 

(d) The Administrative Agent shall, on behalf of the
Borrower, maintain at its address referred to in Section 10.2 a copy of each
Assignment and Acceptance delivered to it and a register (the “Register”)
for the recordation of the names and addresses of the Lenders and the
Commitment of, and the principal amount of the Loans owing to, each Lender from
time to time. The entries in the Register shall be conclusive, in the absence
of manifest error, and the Borrower, each other Loan Party, the Administrative
Agent and the Lenders shall treat each Person whose name is recorded in the
Register as the owner of the Loans and any Notes evidencing the Loans recorded
therein for all purposes of this Agreement. Any assignment of any Loan, whether
or not evidenced by a Note, shall be effective only upon appropriate entries
with respect thereto being made in the Register (and each Note shall expressly
so provide). Any assignment or transfer of all or part of a Loan evidenced by a
Note shall be registered on the Register only upon surrender for registration
of assignment or transfer of the Note evidencing such Loan, accompanied by a
duly executed Assignment and Acceptance, and thereupon one or more new Notes
shall be issued to the designated Assignee.

 

(e) Upon its receipt of an Assignment and Acceptance
executed by an Assignor, an Assignee and any other Person whose consent is
required by Section 10.6(c), together with payment by the parties to such
assignment to the Administrative Agent of a registration and processing fee of
$3,000 (or, in the case of assignments by or to the Syndication Agent and its
affiliates, $500), the Administrative Agent shall (i) promptly accept such
Assignment and Acceptance and (ii) record the information contained therein in
the Register on the effective date determined pursuant thereto.

 

(f) For avoidance of doubt, the parties to this
Agreement acknowledge that the provisions of this Section 10.6 concerning
assignments of Loans and Notes relate only to absolute assignments and that
such provisions do not prohibit assignments creating security interests,
including any pledge or assignment by a Lender of any Loan or Note to any
Federal Reserve Bank in accordance with applicable law.

 

(g) The Borrower, upon receipt of written notice from
the relevant Lender, agrees to issue Notes to any Lender requiring Notes to
facilitate transactions of the type described in paragraph (f) above.

 

(h) Each of the Borrower, each Lender and the
Administrative Agent hereby confirms that it will not institute against a
Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any state bankruptcy or similar law, for one year and one day
after the payment in full of the latest maturing commercial paper note issued
by such Conduit Lender; provided, however, that each Lender designating
any Conduit Lender hereby agrees to indemnify, save and hold harmless, each
other party hereto for any

 

64

 

loss, cost, damage or expense arising out of its inability to institute
such a proceeding against such Conduit Lender during such period of forbearance.

 

10.7 Adjustments; Set-off. (a) Except to the
extent that this Agreement expressly provides for payments to be allocated to a
particular Lender or to the Lenders under a particular Facility, if any Lender
(a “Benefitted Lender”) shall receive any payment of all or part of the
Obligations owing to it, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in Section 8(f), or otherwise), in a greater proportion
than any such payment to or collateral received by any other Lender, if any, in
respect of the Obligations owing to such other Lender, such Benefitted Lender
shall purchase for cash from the other Lenders a participating interest in such
portion of the Obligations owing to each such other Lender, or shall provide
such other Lenders with the benefits of any such collateral, as shall be
necessary to cause such Benefitted Lender to share the excess payment or
benefits of such collateral ratably with each of the Lenders; provided, however,
that if all or any portion of such excess payment or benefits is thereafter
recovered from such Benefitted Lender, such purchase shall be rescinded, and
the purchase price and benefits returned, to the extent of such recovery, but
without interest.

 

(b) In addition to any rights and remedies of the
Lenders provided by law, each Lender shall have the right, without prior notice
to the Borrower, any such notice being expressly waived by the Borrower to the
extent permitted by applicable law, upon any amount becoming due and payable by
the Borrower hereunder (whether at the stated maturity, by acceleration or
otherwise), to set off and appropriate and apply against such amount any and
all deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender or any branch or agency
thereof to or for the credit or the account of the Borrower, as the case may
be. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such setoff and application made by such Lender, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

 

10.8 Counterparts. This Agreement may be executed by
one or more of the parties to this Agreement on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. Delivery of an executed signature page
of this Agreement by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Agreement
signed by all the parties shall be lodged with the Borrower and the
Administrative Agent.

 

10.9 Severability. Any provision of this Agreement that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

10.10 Integration. This Agreement and the other Loan
Documents represent the entire agreement of the Borrower, the Agents and the
Lenders with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by any Agent or any
Lender relative to subject matter hereof not expressly set forth or referred to
herein or in the other Loan Documents.

 

10.11
GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY,

 

65

 

AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

10. 12 Submission To Jurisdiction; Waivers.
The Borrower hereby irrevocably and unconditionally:

 

(a) submits for itself
and its property in any legal action or proceeding relating to this Agreement
and the other Loan Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the courts of the State of New York, the courts of the United
States for the Southern District of New York, and appellate courts from any
thereof.

 

(b) consents that any
such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in
an inconvenient court and agrees not to plead or claim the same;

 

(c) agrees that service
of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to the Borrower at its address set forth in Section
10.2 or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

 

(d) agrees that nothing
herein shall affect the right to effect service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction; and

 

(e) waives, to the
maximum extent not prohibited by law, any right it may have to claim or recover
in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

 

10. 13 Acknowledgments. The Borrower hereby
acknowledges that:

 

(a) it has been advised
by counsel in the negotiation, execution and delivery of this Agreement and the
other Loan Documents;

 

(b) no Agent or Lender
has any fiduciary relationship with or duty to the Borrower arising out of or
in connection with this Agreement or any of the other Loan Documents, and the
relationship between the Agents and Lenders, on one hand, and the Borrower, on
the other hand, in connection herewith or therewith is solely that of debtor
and creditor; and

 

(c) no joint venture is
created hereby or by the other Loan Documents or otherwise exists by virtue of
the transactions contemplated hereby among the Lenders or among the Borrower
and the Lenders.

 

10. 14 Releases of Guarantees and Liens.
(a) Notwithstanding anything to the contrary contained herein or in any other
Loan Document, the Administrative Agent is hereby irrevocably authorized by
each Lender (without requirement of notice to or consent of any Lender except
as expressly required by Section 10.1) to take any action requested by the
Borrower having the effect of releasing any Collateral or guarantee obligations
(i) to the extent necessary to permit consummation of any transaction not
prohibited by any Loan Document or that has been consented to in accordance
with Section 10.1 or (ii) under the circumstances described in paragraph (b)
below.

 

66

 

(b) At such time as the Loans, the Reimbursement
Obligations and the other obligations under the Loan Documents (other than
obligations under or in respect of Hedge Agreements) shall have been paid in
full, the Commitments have been terminated and no Letters of Credit shall be
outstanding, the Collateral shall be released from the Liens created by the Security
Documents. and the Security Documents and all obligations (other than those
expressly stated to survive such termination) of the Administrative Agent and
each Loan Party under the Security Documents shall terminate, all without
delivery of any instrument or performance of any act by any Person.

 

10. 15 Confidentiality. Each Agent and each Lender
agrees to keep confidential all non-public information provided to it by any
Loan Party pursuant to this Agreement that is designated by such Loan Party as
confidential; provided that nothing herein shall prevent any Agent or
any Lender from disclosing any such information (a) to any Agent, any other
Lender, any affiliate of any Agent or Lender or any Approved Fund, (b) to any
actual or prospective Transferee or Hedge Agreement counterparty that agrees to
comply with the provisions of this Section, (c) to its employees, directors,
agents, attorneys, accountants and other professional advisors or those of any
of its affiliates, (d) upon the request or demand of any Governmental
Authority, (e) in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any Requirement of Law,
(f) if requested or required to do so in connection with any litigation or
similar proceeding, (g) that has been publicly disclosed, (h) to the National
Association of Insurance Commissioners or any similar organization or any
nationally recognized rating agency that requires access to information about a
Lender’s investment portfolio in connection with ratings issued with respect to
such Lender, (i) in connection with the exercise of any remedy hereunder or
under any other Loan Document or (j) to any direct or indirect contractual
counterparty in swap agreements or such contractual counterparty’s professional
advisor (so long as such contractual counterparty or professional advisor to
such contractual counterparty agrees to be bound by the provisions of this
Section 10.15).

 

10.16
WAIVERS OF JURY TRIAL. THE BORROWER, THE
AGENTS AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

[Remainder of Page Intentionally
Left Blank]

 

 

67

 

IN WITNESS WHEREOF. the parties hereto have caused
this Agreement to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

 

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   

  	
  Name: Ilan K. Reich

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST UNION NATIONAL BANK, as Administrative

  
	
   

  	
  Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Solitark

  	
   

  
	
   

  	
   

  	
  Name:PAUL SOLITARK

  
	
   

  	
   

  	
  Title:VICE PRESIDENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAR STEARNS CORPORATE LENDING INC., as

  
	
   

  	
  Syndication Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Monk S Lies

  	
   

  
	
   

  	
   

  	
  Name: Monk S Lies

  
	
   

  	
   

  	
  Title: Senior Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL CREDIT LLC, as

  
	
   

  	
  Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sam Cirelli

  	
   

  
	
   

  	
   

  	
  Name: Sam Cirelli

  
	
   

  	
   

  	
  Title: SVP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FOOTHILL CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karen S. Sandler

  	
   

  
	
   

  	
   

  	
  Name: Karen S. Sandler

  
	
   

  	
   

  	
  Title: SVP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MORGAN STANLEY DEAN WITTER PRIME

  INCOME TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stewart Flaherty

  	
   

  
	
   

  	
   

  	
  Name: Stewart Flaherty

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

68

Annex A

 

PRICING GRID
FOR REVOLVING LOANS, SWINGLINE LOANS,

TERM LOANS AND
COMMITMENT FEES

 

	
  Consolidated

  Leverage Ratio

  	
   

  	
  Applicable
  Margin

  for Eurodollar Loans

  	
   

  	
  Applicable

  Margin for

  Base Rate

  Loans

  	
   

  
	
  3
  2.00 to 1.00

  	
   

  	
  3.50

  	
  %

  	
  2.50

  	
  %

  
	
  < 2.00 to 1.00 and 3
  1.50 to 1.00

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  
	
  < 1.50 to 1.00

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  

 

Changes in the Applicable Margin resulting
from changes in the Consolidated Leverage Ratio shall become effective on the
date (the “Adjustment Date”) that is three Business Days after the date
on which financial statements are delivered to the Lenders pursuant to Section
6.1 and shall remain in effect until the next change to be effected pursuant to
this paragraph.  If any financial
statements referred to above are not delivered within the time periods
specified in Section 6.1, then, until the date that is three Business Days
after the date on which such financial statements are delivered, the highest
rate set forth in each column of the Pricing Grid shall apply.  In addition, at all times while an Event of
Default shall have occurred and be continuing, the highest rate set forth in
each column of the Pricing Grid shall apply. 
Each determination of the Consolidated Leverage Ratio pursuant to the
Pricing Grid shall be made in a manner consistent with the determination
thereof pursuant to Section 7.1.

 

 

Schedule 1.1A
to Credit Agreement

 

Commitments

 

On
file with the Administrative Agent

 

 

Schedule 4.4 to Credit
Agreement

 

Consents,
Authorizations, Filings and Notices

 

None.

 

 

Schedule 4.6 to Credit
Agreement

 

Litigation

 

In January 1999, Medical Products Development Inc.
instituted an action against our subsidiary McGhan Medical Corporation in the
U.S. District Court for the Central District of California.  Medical Products Development alleges that
McGhan Medical has infringed on some of its U.S. patents and has breached an
agreement between McGhan Medical and Medical Products Development that
exclusively licensed those patents to McGhan Medical.  Those patents pertain to the textured surface of the silicone
shell used in our breast implants and the methods of making those textured
shells.  Until last year, McGhan Medical
was the exclusive licensee under these patents and paid royalties to Medical
Products Development on sales in the U.S. of its textured implant
products.  In 1997, the last full year
for which McGhan Medical paid royalties under the license, McGhan Medical paid
Medical Products Development approximately $2.5 million in royalties.  In 1994, McGhan Medical and Medical Products
Development entered into a consent judgment in settlement of a dispute which
stipulated that the patent claims were valid in certain respects.  The consent judgment did not address McGhan
Medical’s present non-infringement defense nor its unenforceability defense.  Medical Products Development is seeking
unpaid royalties up until the date of termination of the license, unspecified
damages, including enhanced damages for alleged willful infringement, and an
injunction.  The unpaid royalties
allegedly due when the lawsuit was commenced were approximately $1.0 million.

 

McGhan Medical filed an answer denying all of the
material allegations of Medical Products Development’s complaint and raising
affirmative defenses and counterclaims of non-infringement, invalidity on
grounds not precluded by the consent judgment, unenforceability of the patents
and breach of contract.  McGhan Medical
believes that its textured breast implant products are made using significantly
different processes than that claimed in the patents, and that the alleged
inventor of the patents engaged in inequitable conduct before the U.S. Patent
and Trademark Office during prosecution of the patents.  In August 1999, the court granted Medical
Products Development’s motion to dismiss some of the counterclaims, and on its
own motion dismissed the remaining counterclaims.  In September 1999, Medical Products Development filed a motion
for leave to amend its complaint to add another cause of action for breach of
contract.  Discovery is currently
ongoing.  In November 1999, we moved for
summary judgment on grounds of enforceability owing to inequitable conduct and
of non-infringement.  That motion is
pending.  A scheduling order in the case
calls for a trial in January 2000.  We
believe our affirmative defenses have considerable merit, but we cannot assure
you that the resolution of the action will not result in the payment of damages
and future royalties or limit our ability to sell textured breast implants
covered by the patents.

 

In May 1998, Societe Anonyme de Development des
Utilisations du Collagene (SADUC) commenced an arbitration under the rules of
the International Chamber of Commerce against Collagen Corporation under a
technology license and human collagen supply agreement between the parties.  Following the spin-off of Cohesion
Technologies, Inc., Collagen Corporation changed its name to Collagen
Aesthetics, Inc.  SADUC is ultimately
owned by Rhone-Poulenc.  SADUC seeks recovery
for alleged lost profits and royalties for Collagen Corporation’s allegedly

 

 

wrongful termination of the agreement as well as compensation for
confidential information allegedly misappropriated by Collagen Corporation,
including the assignment to SADUC of certain Collagen Corporation patents
allegedly disclosing and claiming processes allegedly developed by SADUC.  SADUC seeks approximately $4.5 million in
termination damages and $2.1 million as losses for breach of the contractual
confidentiality obligations, plus ongoing royalties.  Collagen Corporation has denied all material allegations, as it
is Collagen Corporation’s belief that SADUC breached the agreement by being
unable and unwilling to supply the specified product at the contract
price.  In addition, Collagen
Corporation has stated that its patents do not disclose or claim any of SADUC’s
allegedly confidential information, and that SADUC’s allegedly confidential
information was neither novel nor useful. 
Accordingly, Collagen Corporation seeks rescission of the agreement and restitution
to it of all amounts paid and the costs incurred by it in attempting to perform
under the agreement.  Collagen
Corporation’s position is believed to have considerable merit, but we cannot assure you that the resolution
of this arbitration will not require us to pay damages or require these patents
to be assigned to SADUC.

 

2

 

Schedule 4.9 to Credit
Agreement

 

Intellectual
Property

 

In January 1999, Medical
Products Development Inc. instituted an action against our subsidiary McGhan Medical
Corporation in the U.S. District Court for the Central District of
California.  Medical Products
Development alleges that McGhan Medical has infringed on some of its U.S.
patents and has breached an agreement between McGhan Medical and Medical Products
Development that exclusively licensed those patents to McGhan Medical.  Those patents pertain to the textured
surface of the silicone shell used in our breast implants and the methods of
making those textured shells.  Until
last year, McGhan Medical was the exclusive licensee under these patents and
paid royalties to Medical Products Development on sales in the U.S. of its
textured implant products.  In 1997, the
last full year for which McGhan Medical paid royalties under the license,
McGhan Medical paid Medical Products Development approximately $2.5 million in
royalties.  In 1994, McGhan Medical and
Medical Products Development entered into a consent judgment in settlement of a
dispute which stipulated that the patent claims were valid in certain respects.  The consent judgment did not address McGhan
Medical’s present non-infringement defense nor its unenforceability
defense.  Medical Products Development
is seeking unpaid royalties up until the date of termination of the license,
unspecified damages, including enhanced damages for alleged willful
infringement, and an injunction.  The
unpaid royalties allegedly due when the lawsuit was commenced were
approximately $1.0 million.

 

McGhan Medical filed an
answer denying all of the material allegations of Medical Products
Development’s complaint and raising affirmative defenses and counterclaims of
non-infringement, invalidity on grounds not precluded by the consent judgment,
unenforceability of the patents and breach of contract.  McGhan Medical believes that its textured
breast implant products are made using significantly different processes than
that claimed in the patents, and that the alleged inventor of the patents
engaged in inequitable conduct before the U.S. Patent and Trademark Office
during prosecution of the patents.  In
August 1999, the court granted Medical Products Development’s motion to dismiss
some of the counterclaims, and on its own motion dismissed the remaining
counterclaims.  In September 1999,
Medical Products Development filed a motion for leave to amend its complaint to
add another cause of action for breach of contract.  Discovery is currently ongoing. 
In November 1999, we moved for summary judgment on grounds of
enforceability owing to inequitable conduct and of non-infringement.  That motion is pending.  A scheduling order in the case calls for a
trial in January 2000.  We believe our
affirmative defenses have considerable merit, but we cannot assure you that the
resolution of the action will not result in the payment of damages and future
royalties or limit our ability to sell textured breast implants covered by the
patents.

 

In May 1998, Societe
Anonyme de Development des Utilisations du Collagene (SADUC) commenced an
arbitration under the rules of the International Chamber of Commerce against
Collagen Corporation under a technology license and human collagen supply
agreement between the parties. 
Following the spin-off of Cohesion Technologies, Inc., Collagen
Corporation changed its name to Collagen Aesthetics, Inc.  SADUC is ultimately owned by
Rhone-Poulenc.  SADUC seeks recovery for
alleged lost profits and royalties for Collagen Corporation’s allegedly

 

 

wrongful termination of the agreement as well as compensation for
confidential information allegedly misappropriated by Collagen Corporation,
including the assignment to SADUC of certain Collagen Corporation patents
allegedly disclosing and claiming processes allegedly developed by SADUC.  SADUC seeks approximately $4.5 million in
termination damages and $2.1 million as losses for breach of the contractual
confidentiality obligations, plus ongoing royalties.  Collagen Corporation has denied all material allegations, as it
is Collagen Corporation’s belief that SADUC breached the agreement by being
unable and unwilling to supply the specified product at the contract
price.  In addition, Collagen
Corporation has stated that its patents do not disclose or claim any of SADUC’s
allegedly confidential information, and that SADUC’s allegedly confidential
information was neither novel nor useful. 
Accordingly, Collagen Corporation seeks rescission of the agreement and
restitution to it of all amounts paid and the costs incurred by it in
attempting to perform under the agreement. 
Collagen Corporation’s position is believed to have considerable merit,
but we cannot assure you that the
resolution of this arbitration will not require us to pay damages or
require these patents to be assigned to SADUC.

 

2

 

Schedule 4.15 to Credit
Agreement

 

Subsidiaries

 

*immaterial
subsidiaries

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation

  	
   

  	
  Type of

  Stock

  	
   

  	
  Percentage
  of

  Ownership

  	
   

  	
  Names of
  Stockholders or Members

  	
   

  
	
  McGHAN MEDICAL

  CORPORATION

  	
   

  	
  California

  	
   

  	
  Common

  Preferred

  	
   

  	
  100

  	
  %

  	
  INAMED
  International Corp.

  	
   

  
	
  INAMED JAPAN,
  INC.*

  	
   

  	
  Nevada

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  INAMED
  International Corp.

  	
   

  	
  Delaware

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  Biodermis
  Limited*

  	
   

  	
  Ireland

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  Bioplexus
  Limited*

  	
   

  	
  Ireland

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  INAMED Corporation

  	
   

  
	
  BioEnterics
  Corporation

  	
   

  	
  California

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  BIODERMIS
  CORPORATION*

  	
   

  	
  Nevada

  	
   

  	
  Common

  Preferred

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  BIOPLEXUS
  CORPORATION*

  	
   

  	
  Nevada

  	
   

  	
  Common

  Preferred

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  INAMED DEVELOPMENT

  COMPANY*

  	
   

  	
  California

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  CUI CORPORATION*

  	
   

  	
  California

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  FLOWMATRIX

  CORPORATION*

  	
   

  	
  Nevada

  	
   

  	
  Common

  Preferred

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  MEDISYN
  TECHNOLOGIES

  CORPORATION*

  	
   

  	
  Nevada

  	
   

  	
  Common

  Preferred

  	
   

  	
  100

  	
  %

  	
  INAMED
  Corporation

  	
   

  
	
  INAMED Medical
  Group*

  	
   

  	
  Japan

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  INAMED
  International Corp.

  	
   

  
	
  McGhan Medical Mexico, S.A. de C.V.*

  	
   

  	
  Mexico

  	
   

  	
  Common

  	
   

  	
  99

  1

  	
  %

  %

  	
  McGhan Medical Corp.

  Donald McGhan

  	
   

  
	
  McGhan Medical
  Asia/Pacific Ltd.*

  	
   

  	
  Hong Kong

  	
   

  	
  Ordinary

  	
   

  	
  10

  90

  	
  %

  %

  	
  INAMED Corporation

  McGhan Medical Corporation

  	
   

  
	
  Medisyn
  Technologies Limited*

  	
   

  	
  Ireland

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  INAMED
  International Corp.

  	
   

  
	
  McGhan Medical
  B.V.*

  	
   

  	
  Netherlands

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  INAMED
  International Corp.

  	
   

  
	
  McGhan Limited

  	
   

  	
  Ireland

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  INAMED
  International Corp.

  	
   

  
	
  Chamfield
  Limited*

  	
   

  	
  Ireland

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  INAMED
  International Corp.

  	
   

  
	
  Bioenterics
  Latin America S.A. de C.V.*

  	
   

  	
  Mexico

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  BioEnterics
  Corporation

  	
   

  
	
  Bioenterics Limited

  	
   

  	
  Ireland

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  BioEnterics
  Corporation

  	
   

  
	
  McGhan Medical
  Benelux B.V. 

  	
   

  	
  Netherlands

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  B.V.

  	
   

  
	
  McGhan Medical U.K. Limited

  	
   

  	
  U.K.

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  B.V.

  	
   

  
	
  McGhan Medical Benelux B.V.B.A.

  	
   

  	
  Belgium

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  B.V.

  	
   

  
	
  McGhan Medical
  GmbH

  	
   

  	
  Germany

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  B.V.

  	
   

  
	
  McGhan Medical,
  S.A.

  	
   

  	
  Spain

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  B.V.

  	
   

  
	
  McGhan Medical
  S.A.R.L.

  	
   

  	
  France

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  B.V.

  	
   

  
	
  McGhan Medical
  S.R.L.

  	
   

  	
  Italy

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  B.V.

  	
   

  
	
  Innermedical
  Ltd.

  	
   

  	
  U.K.

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  U.K. Limited

  	
   

  
	
  McGhan Medical
  & Co. KG*

  	
   

  	
  Germany

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  GmbH

  	
   

  
	
  McGhan
  Deutschland Gmbh & Co.*

  	
   

  	
  Germany

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  GmbH

  	
   

  
	
  INAMED do
  Brasil, Ltda*

  	
   

  	
  Brazil

  	
   

  	
  Common

  	
   

  	
  99.99

  

  .01

  	
  %

  %

  	
  McGhan Medical, S.A.

  

  Pedro Ramirez Rincon

  	
   

  
	
  Inamedical B.V.*

  	
   

  	
  Netherlands

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
  %

  	
  McGhan Medical
  Benelux B/V/

  	
   

  

 

(a)            Outstanding
subscriptions, options, warrants, calls, rights to acquire, convertible
securities or instruments

 

None.

 

(b)           Shareholder
agreements, voting trusts or similar agreements

 

None.

 

	
  Name

  	
   

  	
  Jurisdiction
  of

  Incorporation

  	
   

  	
  Type of

  Stock

  	
   

  	
  Percentage
  of

  Ownership

  	
   

  	
  Names of
  Stockholders or Members

  	
   

  
	
  Collagen
  Aesthetics, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  INAMED Corporation

  	
   

  
	
  Collagen
  Aesthetics International Inc.

  	
   

  	
  Delaware

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  Collagen Aesthetics,
  Inc.

  	
   

  
	
  Collagen
  Aesthetics Australia Pty Ltd.

  	
   

  	
  Australia

  	
   

  	
  Ordinary

  	
   

  	
  50

  50

  	
  %

  %

  	
  Collagen Aesthetics
  International Inc.

  Ross G. McClean

  	
   

  
	
  Collagen
  Biomedical Pty Ltd.

  	
   

  	
  Australia

  	
   

  	
  Common

  	
   

  	
  99

  1

  	
  %

  %

  	
  Collagen Aesthetics
  International Inc.

  Collagen Aesthetics, Inc.

  	
   

  
	
  Collagen
  Aesthetics Vertrieb

  	
   

  	
  Austria

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  Collagen Aesthetics
  International Inc.

  	
   

  
	
  Collagen
  Aesthetics Canada Ltd.

  	
   

  	
  Canada

  	
   

  	
  Common

  Class A

  Class B

  Class C

  	
   

  	
  100

  	
  %

  	
  Collagen Aesthetics
  International Inc.

  	
   

  
	
  Collagen
  Aesthetics France SARL

  	
   

  	
  France

  	
   

  	
   

  	
   

  	
  99.8

  0.2

  	
  %

  %

  	
  Collagen Aesthetics
  International Inc.

  Collagen Aesthetics, Inc.

  	
   

  
	
  Collagen
  Aesthetics GmbH

  	
   

  	
  Germany

  	
   

  	
  Common

  	
   

  	
  100

  	
  %

  	
  Collagen Aesthetics
  International Inc.

  	
   

  
	
  Collagen
  Aesthetics S.r.l.

  	
   

  	
  Italy

  	
   

  	
   

  	
   

  	
  1

  99

  	
  %

  % 

  	
  Collagen Aesthetics
  International Inc.

  Collagen Aesthetics, Inc.

  	
   

  
	
  Collagen
  KK

  	
   

  	
  Japan

  	
   

  	
  n/a

  	
   

  	
  100

  	
  %

  	
  Collagen Aesthetics,
  Inc.

  	
   

  
	
  Collagen
  Aesthetics Iberica SA

  	
   

  	
  Spain

  	
   

  	
  n/a

  	
   

  	
  90.625

  9.375

  	
  %

  %

  	
  Collagen Aesthetics
  International Inc.

  Francisco J. Fuentes

  	
   

  
	
  Collagen
  Aesthetics SA

  	
   

  	
  Switzerland

  	
   

  	
   

  	
   

  	
  98.5

  

  0.5

  

  0.5

  

  0.5

  	
  %

  

  %

  

  %

  

  %

  	
  Collagen Aesthetics
  International Inc.

  

  Karl-Heinz Hantke

  

  Denis Berdoz

  

  Alain Stehle

  	
   

  
	
  Collagen
  Aesthetics (UK) Limited

  	
   

  	
  United Kingdom

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  Collagen Aesthetics
  International Inc.

  	
   

  

 

 

The following
subsidiaries of Collagen Aesthetics, Inc. are dormant:

 

	
  Name

  	
   

  	
  Jurisdiction
  of

  Incorporation

  	
   

  	
  Type of

  Stock

  	
   

  	
  Percentage
  of

  Ownership

  	
   

  	
  Names of
  Stockholders or Members

  	
   

  
	
  Collagen
  Aesthetics Benelux S.A.

  	
   

  	
  Belgium

  	
   

  	
  n/a

  	
   

  	
  99

  

  1

  	
  %

  

  %

  	
  Collagen
  Aesthetics International Inc.

  Collagen
  Aesthetics, Inc

  	
   

  
	
  Collagen Scandinavia
  A/S

  	
   

  	
  Denmark

  	
   

  	
   

  	
   

  	
  100

  	
  % 

  	
  Collagen
  Aesthetics International Inc.

  	
   

  
	
  Collagen
  Luxcmbourg S.A.

  	
   

  	
  Luxembourg

  	
   

  	
  Common

  	
   

  	
  99

  

  1

  	
  %

  

  %

  	
  Collagen
  Aesthetics International Inc.

  Collagen
  Aesthetics, Inc.

  	
   

  
	
  Collagen B.V.

  	
   

  	
  Netherlands

  	
   

  	
   

  	
   

  	
  100

  	
  % 

  	
  Collagen Aesthetics
  International Inc.

  	
   

  

 

 

(b)           Outstanding
subscriptions, options, warrants, calls, rights to acquire, convertible
securities or instruments

None.

 

(b)           Shareholder
agreements, voting trusts or similar agreements

 

None.

 

 

Schedule 4.19 to Credit
Agreement

 

UCC Filing Jurisdictions

 

	
  Debtor

  	
   

  	
  State/Filing
  Office

  	
   

  
	
  Biodermis Corporation

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Bioenterics Corporation

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Bioplexus Corporation

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Collagen Aesthetics, Inc.

  	
   

  	
  California,
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Collagen Aesthetics
  International, Inc.

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  CUI Corporation

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Flowmatrix 
  Corporation

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Inamed Corporation

  	
   

  	
  California
  Secretary of State; Nevada Secretary of State; New York Secretary of State;
  New York County/City

  	
   

  
	
  Inamed Development Company

  	
   

  	
  California
  Secretary of State; New York County/City Register

  	
   

  
	
  Inamed International Corp.

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Inamed Japan, Inc.

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  McGhan Medical Corporation

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  
	
  Medisyn Technologies Corporation

  	
   

  	
  California
  Secretary of State; New York County/City Registrar; New York Secretary of
  State

  	
   

  

 

 

Schedule 7.2(d) to Credit Agreement

 

Existing Indebtedness 

 

None.

 

Schedule 7.3(f) to
Credit Agreement

Existing Liens

 

None.

 

 

Schedule 7.8(i)

to Credit
Agreement

 

Existing Investments

 

1.             $3,466,198.00 Note, dated September
1, 1993, issued by Innovative Specialty Silicone Acquisition Corporation in
favor of INAMED Corporation and secured by the assets of Specialty Silicone
Fabricators, Inc.

 

2.             Pursuant to that certain Heads of
Agreement for Plastic Surgery and Cosmetic Dermatology Tissue Engineered
Products  entered into effective as of
May 10, 1999 by and between Advanced Tissue Sciences, Inc. (“ATS”) and the
Parent, the Parent has made a capital investment of $2,000,000 in ATS, consisting
of common stock of ATS and warrants to purchase common stock of ATS.

 

 

Investments of Collagen Aesthetics, Inc.

 

1.             $250,000.00 loan to Prather Ranch
pursuant to Second Amended and Restated Hide Supply Agreement between Collagen
Aesthetics, Inc. and Prather Ranch, dated January 1, 1999.

 

2.             $500,000.00 Convertible Promissory
Note issued by Cosmederm Technologies, Inc. in favor of Collagen Corporation,
dated February 27, 1998.

 

3.             $66,864.00 Amended and Restated
Promissory Note issued by Dale A. Stringfellow in favor of Collagen
Corporation, dated September 7, 1990. 
(The payee does not expect repayment and has written off this note.) 

 

 

EXHIBIT A

 

 

[FORM OF GUARANTEE AND COLLATERAL AGREEMENT]

 

made by

 

INAMED CORPORATION

 

and certain of its Subsidiaries

 

in favor of

 

FIRST UNION
NATIONAL BANK,

as Administrative
Agent

 

Dated as of February 1,
2000

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.  DEFINED TERMS

  
	
   

  	
  1.1

  	
  Definitions

  
	
   

  	
  1.2

  	
  Other Definitional
  Provisions

  
	
   

  
	
  SECTION 2.  GUARANTEE

  
	
   

  	
  2.1

  	
  Guarantee

  
	
   

  	
  2.2

  	
  Right of Contribution

  
	
   

  	
  2.3

  	
  No Subrogation

  
	
   

  	
  2.4

  	
  Amendments,
  etc. with respect to the Borrower Obligations

  
	
   

  	
  2.5

  	
  Guarantee
  Absolute and Unconditional

  
	
   

  	
  2.6

  	
  Reinstatement

  
	
   

  	
  2.7

  	
  Payments

  
	
   

  
	
  SECTION 3.  GRANT OF
  SECURITY INTEREST

  
	
   

  
	
  SECTION
  4.  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
  4.1

  	
  Representations
  in Credit Agreement

  
	
   

  	
  4.2

  	
  Title;
  No Other Liens

  
	
   

  	
  4.3

  	
  Perfected
  First Priority Liens

  
	
   

  	
  4.4

  	
  Chief
  Executive Office

  
	
   

  	
  4.5

  	
  Inventory
  and Equipment

  
	
   

  	
  4.6

  	
  Farm
  Products

  
	
   

  	
  4.7

  	
  Investment
  Property

  
	
   

  	
  4.8

  	
  Receivables

  
	
   

  	
  4.9

  	
  Intellectual Property

  
	
   

  
	
  SECTION 5.  COVENANTS

  
	
   

  	
  5.1

  	
  Covenants in Credit
  Agreement

  
	
   

  	
  5.2

  	
  Delivery
  of Instruments, Certificated Securities and Chattel Paper

  
	
   

  	
  5.3

  	
  Maintenance of Insurance

  
	
   

  	
  5.4

  	
  Payment of Obligations

  
	
   

  	
  5.5

  	
  Maintenance
  of Perfected Security Interest; Further Documentation

  
	
   

  	
  5.6

  	
  Changes in Locations, Name,
  etc.

  
	
   

  	
  5.7

  	
  Notices

  
	
   

  	
  5.8

  	
  Investment Property

  
	
   

  	
  5.9

  	
  Receivables

  
	
   

  	
  5.10

  	
  Intellectual Property

  
	
   

  
	
  SECTION 6.  REMEDIAL PROVISIONS

  
	
   

  	
  6.1

  	
  Certain Matters
  Relating to Receivables

  
	
   

  	
  6.2

  	
  Communications
  with Obligors; Grantors Remain Liable

  
	
   

  	
  6.3

  	
  Pledged Stock

  
	
   

  	
  6.4

  	
  Proceeds
  to be Turned Over To Administrative Agent

  
	
   

  	
  6.5

  	
  Application of Proceeds

  
	
   

  	
  6.6

  	
  Code and Other Remedies

  
	
   

  	
  6.7

  	
  Registration Rights

  

 

i

 

	
   

  	
  6.8

  	
  Waiver; Deficiency

  
	
   

  
	
  SECTION 7.  THE ADMINISTRATIVE
  AGENT

  
	
   

  	
  7.1

  	
  Administrative Agent’s Appointment
  as Attorney-in-Fact, etc

  
	
   

  	
  7.2

  	
  Duty of Administrative
  Agent

  
	
   

  	
  7.3

  	
  Execution of
  Financing Statements

  
	
   

  	
  7.4

  	
  Authority of
  Administrative Agent

  
	
   

  
	
  SECTION 8.  MISCELLANEOUS

  
	
   

  	
  8.1

  	
  Amendments in Writing

  
	
   

  	
  8.2

  	
  Notices

  
	
   

  	
  8.3

  	
  No
  Waiver by Course of Conduct; Cumulative Remedies

  
	
   

  	
  8.4

  	
  Enforcement
  Expenses; Indemnification

  
	
   

  	
  8.5

  	
  Successors and Assigns

  
	
   

  	
  8.6

  	
  Set-Off

  
	
   

  	
  8.7

  	
  Counterparts

  
	
   

  	
  8.8

  	
  Severability

  
	
   

  	
  8.9

  	
  Section Headings

  
	
   

  	
  8.10

  	
   

  	
  Integration

  
	
   

  	
  8.11

  	
   

  	
  GOVERNING LAW

  
	
   

  	
  8.12

  	
   

  	
  Submission To
  Jurisdiction; Waivers

  
	
   

  	
  8.13

  	
   

  	
  Acknowledgments

  
	
   

  	
  8.14

  	
   

  	
  Additional Grantors

  
	
   

  	
  8.15

  	
   

  	
  Releases

  
	
   

  	
  8.16

  	
   

  	
  WAIVER OF JURY TRIAL

  
	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule
  1

  	
  Guarantor Notice
  Addresses

  	
   

  
	
  Schedule
  2

  	
  Investment Property

  	
   

  
	
  Schedule
  3

  	
  Perfection Matters

  	
   

  
	
  Schedule
  4

  	
  Jurisdictions
  of Organization and Chief Executive Offices

  	
   

  
	
  Schedule
  5

  	
  Inventory and
  Equipment Locations

  	
   

  
	
  Schedule
  6

  	
  Intellectual Property

  	
   

  
						

 

ii

 

GUARANTEE AND
COLLATERAL AGREEMENT, dated as of February 1, 2000, made by each of the
signatories hereto (together with any other entity that may become a party
hereto as  herein, the “Grantors”),
in favor of First Union National Bank, as Administrative Agent (in such
capacity, the “Administrative Agent”) for the banks and other financial
institutions (the “Lenders”) from time to time parties to the Credit
Agreement, dated as of February 1, 2000 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Inamed Corporation
(the “Borrower”), the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent.

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS, pursuant
to the Credit Agreement, the Lenders have severally agreed to make extensions
of credit to the Borrower upon the terms and subject to the conditions set
forth therein;

 

WHEREAS, the
Borrower is a member of an affiliated group of companies that includes each
other Grantor;

 

WHEREAS, the proceeds of the extensions of credit
under the Credit Agreement will be used in part to enable the Borrower to make
valuable transfers to one or more of the other Grantors in connection with the
operation of their respective businesses;

 

WHEREAS, the
Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of
the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a
condition precedent to the obligation of the Lenders to make their respective extensions of credit to the
Borrower under the Credit Agreement that the Grantors shall have executed and
delivered this Agreement to the Administrative Agent for the ratable benefit of
the Lenders;

 

NOW, THEREFORE, in
consideration of the premises and to induce the Administrative Agent, the
Syndication Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the
Borrower thereunder, each Grantor hereby agrees with the Administrative Agent,
for the ratable benefit of the Lenders, as follows:

 

SECTION 1 DEFINED TERMS

 

1.1   Definitions.  (a) Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement, and the following terms are used herein as
defined in the New York UCC:  Accounts,
Certificated Security, Chattel Paper, Documents, Equipment, Farm Products,
Goods, Instruments and Inventory.

 

(b)   The following terms shall have the following
meanings:

 

 

“Agreement”:  this Guarantee and Collateral Agreement, as
the same may be amended, supplemented or otherwise modified from time to time.

 

“Borrower
Obligations”:  the collective
reference to the unpaid principal of and interest on the Loans and
Reimbursement Obligations and all other obligations and liabilities of the
Borrower (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the
Loans and Reimbursement Obligations and interest accruing at the then
applicable rate provided in the Credit Agreement after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) to any
Agent or any Lender (or, in the case of any Lender Hedge Agreement, any
Affiliate of any Lender), whether direct or indirect, absolute or contingent,
due or to become due, or now existing or hereafter incurred, which may arise
under, out of, or in connection with, the Credit Agreement, this Agreement, the
other Loan Documents, any Letter of Credit, any Lender Hedge Agreement or any
other document made, delivered or given in connection with any of the
foregoing, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to any
Agent or to any Lender that are required to be paid by the Borrower pursuant to
the terms of any of the foregoing agreements).

 

“Collateral”:  as defined in Section 3.

 

“Collateral
Account”:  any collateral account
established by the Administrative Agent as provided in Section 6.1 or 6.4.

 

“Copyrights”:  (i) all copyrights arising under the laws of
the United States, any other country or any political subdivision thereof,
whether registered or unregistered and whether published or unpublished
(including, without limitation, those listed in Schedule 6), all
registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to
obtain all renewals thereof.

 

“Copyright
Licenses”:  any written agreement
naming any Grantor as licensor or licensee (including, without limitation,
those listed in Schedule 6), granting any right under any Copyright,
including, without limitation, the grant of rights to manufacture, distribute,
exploit and sell materials derived from any Copyright.

 

“Deposit
Account”:  as defined in the Uniform Commercial Code of any applicable
jurisdiction and, in any event, including, without limitation, any demand,
time, savings, passbook or like account maintained with a depositary
institution.

 

“Foreign
Subsidiary”:  any Subsidiary
organized under the laws of any jurisdiction outside the United States of
America.

 

“Foreign
Subsidiary Voting Stock”:  the
voting Capital Stock of any Foreign Subsidiary.

 

“General
Intangibles”:  all “general
intangibles” as such term is defined in Section 9-106 of the New York UCC and,
in any event, including, without limitation, with respect to any Grantor, all
contracts, agreements, instruments and indentures in any form, and portions
thereof, to which such Grantor is a party or under which such Grantor has any
right, title or interest or to

 

2

 

which such Grantor or any property of such Grantor is
subject, as the same may from time to time be amended, supplemented or
otherwise modified, including, without limitation, (i) all rights of such
Grantor to receive moneys due and to become due to it thereunder or in
connection therewith, (ii) all rights of such Grantor to damages arising
thereunder and (iii) all rights of such Grantor to perform and to exercise all
remedies thereunder, in each case to the extent the grant by such Grantor of a
security interest pursuant to this Agreement in its right, title and interest
in such contract, agreement, instrument or indenture is not prohibited by such
contract, agreement, instrument or indenture without the consent of any other
party thereto, would not give any other party to such contract, agreement,
instrument or indenture the right to terminate its obligations thereunder, or
is permitted with consent if all necessary consents to such grant of a security
interest have been obtained from the other parties thereto (it being understood
that the foregoing shall not be deemed to obligate such Grantor to obtain such
consents); provided, that the foregoing limitation shall not affect,
limit, restrict or impair the grant by such Grantor of a security interest
pursuant to this Agreement in any Receivable or any money or other amounts due
or to become due under any such contract, agreement, instrument or indenture.

 

“Guarantor Obligations”:  with respect to any Guarantor, all
obligations and liabilities of such Guarantor which may arise under or in
connection with this Agreement (including, without limitation, Section 2) or
any other Loan Document to which such Guarantor is a party, in each case whether
on account of guarantee obligations, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
fees and disbursements of counsel to any Agent or to any Lender that are
required to be paid by such Guarantor pursuant to the terms of this Agreement
or any other Loan Document).

 

“Guarantors”:  the collective reference to each Grantor
other than the Borrower.

 

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including,
without limitation, the Copyrights, the Copyright Licenses, the Patents, the
Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to
sue at law or in equity for any infringement or other impairment thereof,
including the right to receive all proceeds and damages therefrom.

 

“Intercompany Note”:  any promissory note evidencing loans made by
any Grantor to the  Borrower or any of its
Subsidiaries.

 

“Investment Property”:  the collective reference to (i) all
“investment property” as such term is defined in Section 9–115 of the New
York UCC (other than any Foreign Subsidiary Voting Stock excluded from the
definition of “Pledged Stock”) and (ii) whether or not constituting “investment
property” as so defined, all Pledged Notes and all Pledged Stock.

 

“Issuers”:  the collective reference to each issuer of
any Investment Property.

 

“Lender Hedge
Agreements”:  all interest rate
swaps, caps or collar agreements or similar arrangements entered into by the
Borrower with any Lender (or any Affiliate of any Lender) providing for
protection against fluctuations in interest rates or currency exchange rates or
the exchange of nominal interest obligations, either generally or under
specific contingencies.

 

“New York UCC”:  the Uniform Commercial Code as from time to
time in effect in the State of New York.

 

3

 

“Obligations”:  (i) in the case of the Borrower, the
Borrower Obligations, and (ii) in the case of each Guarantor, its Guarantor
Obligations.

 

“Patents”:  (i) all letters patent of the United States,
any other country or any political subdivision thereof, all reissues and
extensions thereof and all goodwill associated therewith, including, without
limitation, any of the foregoing referred to in Schedule 6, (ii) all
applications for letters patent of the United States or any other country and
all divisions, continuations and continuations-in-part thereof, including,
without limitation, any of the foregoing referred to in Schedule 6, and
(iii) all rights to obtain any reissues or extensions of the foregoing.

 

“Patent License”:  all agreements, whether written or oral,
providing for the grant by or to any Grantor of any right to manufacture, use
or sell any invention covered in whole or in part by a Patent, including,
without limitation, any of the foregoing referred to in Schedule 6.

 

“Pledged Notes”:  all promissory notes listed on Schedule 2,
all Intercompany Notes at any time issued to any Grantor and all other
promissory notes issued to or held by any Grantor (other than promissory notes
issued in connection with extensions of trade credit by any Grantor in the
ordinary course of business).

 

“Pledged Stock”:  the shares of Capital Stock listed on Schedule
2, together with any other shares, stock certificates, options or rights of
any nature whatsoever in respect of the Capital Stock of any Person that may be
issued or granted to, or held by, any
Grantor while this Agreement is in effect; provided that in no
event shall more than 65% of the total outstanding Foreign Subsidiary Voting
Stock of any Foreign Subsidiary be required to be pledged hereunder.

 

“Proceeds”:  all “proceeds” as such term is defined in
Section 9-306(l) of the New York UCC and, in any event, shall include, without
limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

 

“Receivable”:  any right to payment for goods sold or
leased or for services rendered, whether or not such right is evidenced by an
Instrument or Chattel Paper and whether or not it has been earned by
performance (including, without limitation, any Account).

 

“Securities Act”:  the Securities Act of 1933, as amended.

 

“Trademarks”:  (i) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles,
service marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, including, without limitation, any of the foregoing
referred to in Schedule 6, and (ii) the right to obtain all renewals
thereof.

 

“Trademark License”:  any agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark,
including, without limitation, any of the foregoing referred to in Schedule
6.

 

4

 

1.2   Other
Definitional Provisions.  (a)
The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section and Schedule
references are to this Agreement unless otherwise specified.

 

(b)   The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such terms.

 

(c)   Where the context requires, terms relating to
the Collateral or any part thereof, when used in relation to a Grantor, shall
refer to such Grantor’s Collateral or the relevant part thereof.

 

SECTION 2. 
GUARANTEE

 

2.1   Guarantee.  (a) Each of the Guarantors hereby, jointly
and severally, unconditionally and irrevocably, guarantees to the
Administrative Agent, for the ratable benefit of the Lenders and their
respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Borrower when due (whether at the
stated maturity, by acceleration or otherwise) of the Borrower Obligations.

 

(b)   Anything herein or in any other Loan Document
to the contrary notwithstanding, the maximum liability of each Guarantor hereunder
and under the other Loan Documents shall in no event exceed the amount which
can be guaranteed by such Guarantor under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of
contribution established in Section 2.2).

 

(c)   Each Guarantor agrees that the Borrower
Obligations may at any time and from
time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained
in this Section 2 or affecting the rights and remedies of the Administrative
Agent or any Lender hereunder.

 

(d)   The guarantee contained in this Section 2
shall remain in full  force and
effect until all the Borrower Obligations and the obligations of each Guarantor
under the guarantee contained in this Section 2 shall have been satisfied by
payment in full, no Letter of
Credit shall be outstanding and the Commitments shall be terminated,
notwithstanding that from time to time during the term of the Credit Agreement
the Borrower may be free from any Borrower Obligations.

 

(e)   No payment made by the Borrower, any of the
Guarantors, any other guarantor or any other Person or received or collected by
the Administrative Agent or any Lender from the Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from
time to time in reduction of or in payment of the Borrower Obligations shall be
deemed to modify, reduce, release or otherwise affect the liability of any
Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the Borrower Obligations or
any payment received or collected from such Guarantor in respect of the Borrower
Obligations), remain liable for the Borrower Obligations up to the maximum
liability of such Guarantor hereunder until the Borrower Obligations are paid
in full, no Letter of Credit shall be outstanding and the Commitments are
terminated.

 

2.2   Right of
Contribution.  Each Guarantor
hereby agrees that to the extent that a Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such

 

5

 

Guarantor shall be entitled to seek and receive contribution from and
against any other Guarantor hereunder which has not paid its proportionate
share of such payment.  Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section
2.3.  The provisions of this Section 2.2
shall in no respect limit the obligations and liabilities of any Guarantor to
the Administrative Agent and the Lenders, and each Guarantor shall remain
liable to the Administrative Agent and the Lenders for the full amount
guaranteed by such Guarantor hereunder.

 

2.3   No Subrogation.  Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Administrative Agent or any Lender, no Guarantor shall be entitled to be
subrogated to any of the rights of the Administrative Agent or any Lender
against the Borrower or any other Guarantor or any collateral security or
guarantee or right of offset held by the Administrative Agent or any Lender for
the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any
other Guarantor in respect of payments made by such Guarantor hereunder, until
all amounts owing to the Administrative Agent and the Lenders by the Borrower
on account of the Borrower Obligations are paid in full, no Letter of Credit
shall be outstanding and the Commitments are terminated.  If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower
Obligations shall not have been paid in full, such amount shall be held by such
Guarantor in trust for the Administrative Agent and the Lenders, segregated
from other funds of such Guarantor, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Administrative Agent in the exact form
received by such Guarantor (duly indorsed by such Guarantor to the
Administrative Agent, if required), to be applied against the Borrower
Obligations, whether matured or unmatured, in such order as the Administrative
Agent may determine.

 

2.4   Amendments,
etc. with respect to the Borrower Obligations.  Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand
for payment of any of the Borrower Obligations made by the Administrative Agent
or any Lender may be rescinded by the Administrative Agent or such Lender and
any of the Borrower Obligations continued, and the Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Administrative
Agent or any Lender, and the Credit Agreement and the other Loan Documents and
any other documents executed and delivered in connection therewith may be
amended, modified, supplemented or terminated, in whole or in part, as the
Administrative Agent (or the Required Lenders or all Lenders, as the case may be) may deem advisable from time
to time, and any collateral security, guarantee or right of offset at any time
held by the Administrative Agent or any Lender for the payment of the Borrower
Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Administrative Agent nor any
Lender shall have any obligation to protect, secure, perfect or insure any Lien
at any time held by it as security for the Borrower Obligations or for the
guarantee contained in this Section 2 or any property subject thereto.

 

2.5   Guarantee
Absolute and Unconditional. 
Each Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Borrower Obligations and notice of or proof
of reliance by the Administrative Agent or any Lender upon the guarantee
contained in this Section 2 or acceptance of the guarantee contained in this
Section 2; the Borrower Obligations, and any of them shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Borrower and any of the Guarantors, on the one
hand, and the Administrative Agent and the Lenders, on the other hand, likewise
shall be conclusively presumed to have been had or consummated in reliance upon
the

 

6

 

guarantee contained in this Section 2. 
Each Guarantor waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Borrower or any of
the Guarantors with respect to the Borrower Obligations.  Each Guarantor understands and agrees that
the guarantee contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (a) the
validity or enforceability of the Credit Agreement or any other Loan Document,
any of the Borrower Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by the Administrative Agent or any Lender, (b) any defense, set-off
or counterclaim (other than a defense of payment or performance) which may at
any time be available to or be asserted by the Borrower or any other Person
against the Administrative Agent or any Lender, or (c) any other circumstance
whatsoever (with or without notice to or knowledge of the Borrower or such
Guarantor) which constitutes, or might be construed to constitute, an equitable
or legal discharge of the Borrower for the Borrower Obligations, or of such
Guarantor under the guarantee contained in this Section 2, in bankruptcy or in
any other instance.  When making any
demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, the Administrative Agent or any Lender may, but shall be
under no obligation to, make a similar demand on or otherwise pursue such
rights and remedies as it may have against the Borrower, any other Guarantor or
any other Person or against any collateral security or guarantee for the
Borrower Obligations or any right of offset with respect thereto, and any
failure by the Administrative Agent or any Lender to make any such demand,  to
pursue such other rights or remedies or to collect any payments from the
Borrower, any other Guarantor or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or
any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of offset, shall not relieve any
Guarantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Administrative Agent or any Lender against any
Guarantor.  For the purposes hereof
“demand” shall include the commencement and continuance of any legal proceedings.

 

2.6   Reinstatement.  The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Borrower Obligations is
rescinded or must otherwise be restored or returned by the Administrative Agent
or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Borrower or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.

 

2.7   Payments.  Each Guarantor hereby guarantees that
payments hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the office of the Administrative Agent specified in
the Credit Agreement.

 

SECTION 3. 
GRANT OF SECURITY INTEREST

 

Each Grantor hereby assigns and transfers to the
Administrative Agent, and hereby grants to the Administrative Agent, for the
ratable benefit of the Lenders, a security interest in, all of the following
property now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right,
title or interest (collectively, the “Collateral”), as collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations,:

 

(a)           all
Accounts;

 

7

 

(b)   all Chattel Paper; 

 

(c)   all Deposit Accounts; 

 

(d)   all Documents;

 

(e)   all Equipment;

 

(f)    all General Intangibles;

 

(g)   all Instruments;

 

(h)   all Intellectual Property;

 

(i)    all Inventory;

 

(j)    all Investment Property;

 

(k)   all Goods and other property not otherwise
described above;

 

(1)   all books and records pertaining to the
Collateral; and

 

(m)  to the extent not otherwise included, all
Proceeds and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing;

 

provided that any contracts or other
agreements which require the consent of a party other than the Borrower or
Subsidiary thereof in order to pledge its rights thereunder shall be excluded
from the definition of “Collateral”.

 

SECTION 4. 
REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and the Lenders to
enter into the Credit Agreement and to induce the Lenders to make their
respective extensions of credit to the Borrower thereunder, each Grantor hereby
represents and warrants to the Administrative Agent and each Lender that:

 

4.1     Representations
in Credit Agreement.  In the
case of each Guarantor, the representations and warranties set forth in
Sections 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.12, 4.14, 4.17, and 4.20 of
the Credit Agreement as they relate to such Guarantor or to the Loan Documents
to which such Guarantor is a party, each of which is hereby incorporated herein
by reference, are true and correct, and the Administrative Agent and each
Lender shall be entitled to rely on each of them as if they were fully set
forth herein; provided that each reference in each such representation
and warranty to the Borrower’s knowledge shall, for the purposes of this
Section 4.1, be deemed to be a reference to such Guarantor’s knowledge.

 

4.2   Title: 
No Other Liens.  Except for the
security interest granted to the Administrative Agent for the ratable benefit
of the Lenders pursuant to this Agreement and the other Liens permitted to
exist on the Collateral by the Credit Agreement, such Grantor owns each item of
the Collateral free and clear of any and all Liens or claims of others.  No financing statement or other public
notice with respect

 

8

 

to all or any part of the Collateral is on file or of record in any
public office, except such as have been filed in favor of the Administrative
Agent, for the ratable benefit of the Lenders, pursuant to this Agreement or as
are permitted by the Credit Agreement.

 

4.3   Perfected
First Priority Liens.  The
security interests granted pursuant to this Agreement (a) upon completion of
the filings and other actions specified on Schedule 3 (which, in the
case of all filings and other documents referred to on said Schedule, have been
delivered to the Administrative Agent in completed and duly executed form) will
constitute valid perfected security interests in all of the Collateral in favor
of the Administrative Agent, for the ratable benefit of the Lenders, as
collateral security for such Grantor’s Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons
purporting to purchase any Collateral from such Grantor and (b) are prior to
all other Liens on the Collateral in existence on the date hereof except for
Liens permitted by the Credit Agreement which have priority over the Liens on
the Collateral.

 

4.4   Chief
Executive Office. On the date hereof, such Grantor’s jurisdiction of
organization and the location of such Grantor’s chief executive office or sole
place of business are specified on Schedule 4.

 

4.5   Inventory
and Equipment.
On the date hereof, the Inventory and the Equipment (other than mobile goods)
are kept at the locations listed on Schedule 5.

 

4.6   Farm Products.  None of the Collateral constitutes, or is
the Proceeds of, Farm Products.

 

4.7   Investment
Property.  (a) The shares of
Pledged Stock pledged by such Grantor hereunder constitute all the issued and
outstanding shares of all classes of the Capital Stock of each Issuer owned by
such Grantor or, in the case of Foreign Subsidiary Voting Stock, if less, 65%
of the outstanding Foreign Subsidiary Voting Stock of each relevant Issuer.

 

(b)   All the shares of the Pledged Stock have been
duly and validly issued and are fully paid and nonassessable.

 

(c)   Each of the Pledged Notes constitutes the
legal, valid and binding obligation of the obligor with respect thereto,
enforceable in accordance with its terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting
creditors’ rights generally, general equitableprinciples (whether
considered in a  proceeding
in equity or at law) and an implied covenant of good faith and fair dealing.

 

(d)   Such Grantor is the record and beneficial
owner of, and has good and marketable title to, the Investment Property pledged
by it hereunder, free of any and all Liens or options in favor of, or claims
of, any other Person, except the security interest created by this Agreement or
as permitted by the Credit Agreement.

 

4.8     Receivables.  (a) No amount payable to such Grantor in
excess of $1,000 under or in connection with any Receivable is evidenced by any
Instrument which has not been delivered to the Administrative Agent.

 

(b)   None of the obligors on any Receivables is a
Governmental Authority.

 

9

 

(c)   The amounts represented by such Grantor to
the Lenders from time to time as owing to such Grantor in respect of the
Receivables will at such times be accurate.

 

4.9   Intellectual
Property.  (a) Schedule 6
lists all Intellectual Property owned by such Grantor in its own name on the
date hereof.

 

(b)   On the date hereof, all material Intellectual
Property of such Grantor described on Schedule 6 is valid, subsisting,
unexpired and enforceable, has not been abandoned and does not infringe the
intellectual property rights of any other Person.

 

(c)   Except as set forth in Schedule 6 on
the date hereof, none of the Intellectual Property is the subject of any
licensing or franchise agreement pursuant to which such Grantor is the licensor
or franchisor.

 

(d)   No holding, decision or judgment has been
rendered by any Governmental Authority which would limit, cancel or question
the validity of, or such Grantor’s rights in, any Intellectual Property in any
respect that could reasonably be expected to have a Material Adverse Effect.

 

(e)   No action or proceeding is pending, or, to
the knowledge of such Grantor, threatened, on the date hereof (i) seeking to
limit, cancel or question the validity of any Intellectual Property or such
Grantor’s ownership interest therein, or (ii) which, if adversely determined,
would have a material adverse effect on the value of any Intellectual Property.

 

SECTION 5. 
COVENANTS

 

Each Grantor covenants and agrees with the
Administrative Agent and the Lenders that, from and after the date of this
Agreement until the Obligations shall have been paid in full, no Letter of
Credit shall be outstanding and the Commitments shall have terminated:

 

5.1     Covenants
in Credit Agreement.  In the
case of each Guarantor, such Guarantor shall take, or shall refrain from
taking, as the case may be, each action that is necessary to be taken or not
taken, as the case may be, so that no Default or Event of Default is caused by
the failure to take such action or to refrain from taking such action by such
Guarantor or any of its Subsidiaries.

 

5.2     Delivery of Instruments and
Certificated Securities.  If an
amount in excess of $50,000 shall become payable under or in connection with
any of the Collateral and shall be or become evidenced by any Instrument or
Certificated Security, such Instrument or Certificated Security shall be
immediately delivered to the Administrative Agent, duly indorsed in a manner
satisfactory to the Administrative Agent, to be held as Collateral pursuant
to this Agreement.

 

5.3   Maintenance
of Insurance.  (a) Such Grantor
will maintain, with financially sound and reputable companies, insurance
policies (i) insuring the Inventory and Equipment against loss by fire,
explosion, theft and such other casualties as may be reasonably satisfactory to
the Administrative Agent and (ii) insuring such Grantor, the Administrative
Agent and the Lenders against liability for personal injury and property damage
relating to such Inventory, Equipment, such policies to be in such form and
amounts and having such coverage as may be reasonably satisfactory to the
Administrative Agent and the Lenders.

 

10

 

(b)   All such insurance shall (i) provide that no
cancellation, material reduction in amount or material change in coverage
thereof shall be effective until at least 30 days after receipt by the
Administrative Agent of written notice thereof, (ii) name the Administrative
Agent as insured party or loss payee, (iii) if reasonably requested by the
Administrative Agent, include a breach of warranty clause and (iv) be
reasonably satisfactory in all other respects to the Administrative Agent.

 

(c)   The Borrower shall deliver to the
Administrative Agent and the Lenders a report of a reputable insurance broker
with respect to such insurance substantially concurrently with each delivery of
the Borrower’s audited annual financial statements and such supplemental
reports with respect thereto as the Administrative Agent may from time to time
reasonably request.

 

5.4     Payment of
Obligations.  Such Grantor will
pay and discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, all taxes, assessments and governmental
charges or levies imposed upon the Collateral or in respect of income or
profits therefrom, as well as all claims of any kind (including, without
limitation, claims for labor, materials and supplies) against or with respect
to the Collateral, except that no such charge need be paid if the amount or
validity thereof is currently being contested in good faith by appropriate
proceedings, reserves in conformity with GAAP with respect thereto have been
provided on the books of such Grantor and such proceedings could not reasonably
be expected to result in the sale, forfeiture or loss of any material portion
of the Collateral or any interest therein.

 

5.5   Maintenance
of Perfected Security Interest; Further Documentation.  (a)
Such Grantor shall maintain the
security interest created by this Agreement as a perfected security interest
having at least the priority described in Section 4.2 and shall defend such
security interest against the claims and demands of all Persons whomsoever.

 

(b)   Such Grantor will furnish to the
Administrative Agent and the Lenders from time to time statements and schedules
further identifying and describing the assets and property of such Grantor and
such other reports in connection with the Collateral as the Administrative
Agent may reasonably request, all in reasonable detail.

 

(c)   At any time and from time to time, upon the
written request of the Administrative Agent, and at the sole expense of such
Grantor, such Grantor will promptly and duly execute and deliver, and have
recorded, such further instruments and documents and take such further actions
as the Administrative Agent may reasonably request for the purpose of obtaining
or preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) the filing of any financing
or continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests
created hereby and (ii) in the case of Investment Property, Deposit Accounts
and any other relevant Collateral, taking any actions necessary to enable the
Administrative Agent to obtain “control” (within the meaning of the applicable
Uniform Commercial Code) with respect thereto.

 

5.6     Changes
in Locations, Name, etc.  Such
Grantor will not, except upon 15 days’ prior written notice to the
Administrative Agent and delivery to the Administrative Agent of (a) all
additional executed financing statements and other documents reasonably
requested by the Administrative Agent to maintain the validity, perfection and
priority of the security interests provided for herein and (b) if applicable, a
written supplement to Schedule 5 showing any additional location at
which Inventory or Equipment shall be kept:

 

11

 

(i)    permit any of the Inventory or Equipment
(other than Inventory and Equipment in transit between two locations listed on Schedule
5) to be kept at a location other than those listed on Schedule 5;

 

(ii)   change its jurisdiction of organization or
the location of its chief executive office or sole place of business from that
referred to in Section 4.4; or

 

(iii)  change its name, identity or corporate
structure to such an extent that any financing statement filed by the
Administrative Agent in connection with this Agreement would become misleading.

 

5.7   Notices.  Such Grantor will advise the Administrative
Agent and the Lenders promptly, in reasonable detail, of:

 

(a)   any Lien (other than security interests
created hereby or Liens permitted under the Credit Agreement) on any of the
Collateral which would adversely affect the ability of the Administrative Agent
to exercise any of its remedies hereunder; and

 

(b)   of the occurrence of any other event which
could reasonably be expected to have a material adverse effect on the aggregate
value of the Collateral or on the security interests created hereby.

 

5.8   Investment
Property (a) If such Grantor shall become entitled to receive or shall
receive any stock certificate (including, without limitation, any certificate
representing a stock dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Capital
Stock of any Issuer, whether in addition to, in substitution of, as a conversion
of, or in exchange for, any shares of the Pledged Stock, or otherwise in
respect thereof, such Grantor shall accept the same as the agent of the
Administrative Agent and the Lenders, hold the same in trust for the
Administrative Agent and the Lenders and deliver the same forthwith to the
Administrative Agent in the exact form received, duly indorsed by such Grantor
to the Administrative Agent, if required, together with an undated stock power
covering such certificate duly executed in blank by such Grantor and with, if
the Administrative Agent so requests, signature guaranteed, to be held by the
Administrative Agent, subject to the terms hereof, as additional collateral
security for the Obligations subject to the 65% limitation for Foreign
Subsidiary Voting Stock.  Any sums paid
upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the Administrative Agent to be
held by it hereunder as additional collateral security for the Obligations, and
in case any distribution of capital shall be made on or in respect of the
Investment Property or any property shall be distributed upon or with respect
to the Investment Property pursuant to the recapitalization or reclassification
of the capital of any Issuer or pursuant to the reorganization thereof, the
property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Administrative Agent, be delivered to the
Administrative Agent to be held by it hereunder as additional collateral
security for the Obligations.  If any
sums of money or property so paid or distributed in respect of the Investment
Property shall be received by such Grantor, such Grantor shall, until such
money or property is paid or delivered to the Administrative Agent, hold such
money or property in trust for the Lenders, segregated from other funds of such
Grantor, as additional collateral security for the Obligations.

 

(b)   Without the prior written consent of the
Administrative Agent, such Grantor will not (i) vote to enable, or take any
other action to permit, any Issuer to issue any stock or other equity
securities of any nature or to issue any other securities convertible into or
granting the right to purchase

 

12

 

or exchange for any stock or other equity securities of any nature of
any Issuer unless such issuance is made part of the Collateral (subject to the
65% limitation for Foreign Subsidiary Voting Stock), (ii) sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect
to, the Investment Property or Proceeds thereof (except pursuant to a
transaction expressly permitted by the Credit Agreement), (iii) create, incur
or permit to exist any Lien or option in favor of, or any claim of any Person
with respect to, any of the Investment Property or Proceeds thereof, or any
interest therein, except for the security interests created by this Agreement
or as permitted by the Credit Agreement or (iv) enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Administrative Agent to
sell, assign or transfer any of the Investment Property or Proceeds thereof.

 

(c)   In the case of each Grantor which is an
Issuer, such Issuer agrees that (i) it will be bound by the terms of this
Agreement relating to the Investment Property issued by it and will comply with
such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) with respect to the Investment Property issued by
it and (iii) the terms of Sections 6.3(c) and 6.7 shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it pursuant
to Section 6.3(c) or 6.7 with respect to the Investment Property issued by it.

 

5.9   Receivables.  (a) Other than in the ordinary course of
business consistent with its past practice, such Grantor will not (i) grant any
extension of the time of payment of any Receivable, (ii) compromise or settle
any Receivable for less than the full amount thereof, (iii) release, wholly or
partially, any Person liable for the payment of any Receivable, (iv) allow any
credit or discount whatsoever on any Receivable or (v) amend, supplement or
modify any Receivable in any manner that could adversely affect the value
thereof.

 

(b)   Such Grantor will deliver to the
Administrative Agent a copy of each material demand, notice or document
received by it that questions or calls into doubt the validity or
enforceability of more than 5% of the aggregate amount of the then outstanding
Receivables.

 

5.10 Intellectual Property.  (a) Such Grantor (either itself or through
licensees) will (i) continue to use each material Trademark on each and every
trademark class of goods applicable to its current line as reflected in its
current catalogs, brochures and price lists in order to maintain such Trademark
in full force free from any claim of abandonment for non-use unless in the good
faith judgment of such Grantor the use of such Trademark is no longer
commercially reasonable, (ii) maintain as
in the past the quality of products and services offered under such Trademark,
(iii) use such Trademark with the appropriate notice of registration and all
other notices and legends required by applicable Requirements of Law, (iv) not
adopt or use any mark which is confusingly similar or a colorable imitation of
such Trademark unless the Administrative Agent, for the ratable benefit of the
Lenders, shall obtain a perfected security interest in such mark pursuant to
this Agreement, and (v) not (and not permit any licensee or sublicensee thereof
to) do any act or knowingly omit to do any act whereby such Trademark may
become invalidated or impaired in any way.

 

(b)   Such Grantor (either itself or through
licensees) will not do any act, or omit to do any act, whereby any material
Patent may become forfeited, abandoned or dedicated to the public unless in the
good faith judgment of such Grantor the use of such Patent is no longer
commercially reasonable.

 

(c)   Such Grantor (either itself or through
licensees) (i) will employ each material Copyright and (ii) will not (and will
not permit any licensee or sublicensee thereof to) do any act or knowingly omit
to do any act whereby any material portion of the Copyrights may become
invalidated or

 

13

 

otherwise impaired.  Such
Grantor will not (either itself or through licensees) do any act whereby any
material portion of the Copyrights may fall into the public domain.

 

(d)   Such Grantor (either itself or through
licensees) will not do any act that knowingly uses any material Intellectual
Property to infringe the intellectual property rights of any other Person.

 

(e)   Such Grantor will notify the Administrative
Agent and the Lenders immediately if it knows, or has reason to know, that any
application or registration relating to any material Intellectual Property may
become forfeited, abandoned or dedicated to the public, or of any adverse determination
or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any court or tribunal
in any country) regarding such Grantor’s ownership of, or the validity of, any
material Intellectual Property or such Grantor’s right to register the same or
to own and maintain the same.

 

(f)    Whenever such Grantor, either by itself or
through any agent, employee, licensee or designee, shall file an application
for the registration of any Intellectual Property with the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, such
Grantor shall report such filing to the Administrative Agent within five
Business Days after the last day of the fiscal quarter in which such filing
occurs.  Upon request of the
Administrative Agent, such Grantor shall execute and deliver, and have
recorded, any and all agreements, instruments, documents, and papers as the
Administrative Agent may request to evidence the Administrative Agent’s and the
Lenders’ security interest in any Copyright, Patent or Trademark and the
goodwill and general intangibles of such Grantor relating thereto or
represented thereby.

 

(g)   Such Grantor will take all reasonable and
necessary steps, including, without limitation, in any proceeding before the
United States Patent and Trademark Office, the United States Copyright Office
or any similar office or agency in any other country or any political
subdivision thereof, to maintain and pursue each application (and to obtain the
relevant registration) and to maintain each registration of the material Intellectual
Property, including, without limitation, filing of applications for renewal,
affidavits of use and affidavits of incontestability.

 

(h)   In the event that any material Intellectual
Property is infringed, misappropriated or diluted by a third party, such
Grantor shall (i) take such actions as such Grantor shall reasonably deem
appropriate under the circumstances to protect such Intellectual Property and
(ii) if such Intellectual Property is of material economic value, promptly
notify the Administrative Agent after it learns thereof and sue for
infringement, misappropriation or dilution, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement,
misappropriation or dilution.

 

SECTION 6. 
REMEDIAL PROVISIONS

 

6.1   Certain
Matters Relating to Receivables. 
(a) The Administrative Agent shall have the right to make test
verifications of the Receivables in any manner and through any medium that it
reasonably considers advisable, and each Grantor shall furnish all such assistance
and information as the Administrative Agent may require in connection with such
test verifications.  At any time and
from time to time, upon the Administrative Agent’s request and at the expense
of the relevant Grantor, such Grantor shall cause independent public
accountants or others satisfactory to the Administrative Agent to furnish

 

14

 

to the Administrative Agent reports showing reconciliations, aging and
test verifications of, and trial balances for, the Receivables.

 

(b)   The Administrative Agent hereby authorizes
each Grantor to collect such Grantor’s Receivables, subject to the
Administrative Agent’s direction and control, and the Administrative Agent may
curtail or terminate said authority at any time after the occurrence and during
the continuance of an Event of Default. 
If required by the Administrative Agent at any time after the occurrence
and during the continuance of an Event of Default, any payments of Receivables,
when collected by any Grantor, (i) shall be forthwith (and, in any event,
within two Business Days) deposited by such Grantor in the exact form received,
duly indorsed by such Grantor to the Administrative Agent if required, in a
Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the
account of the Lenders only as provided in Section 6.5, and (ii) until so
turned over, shall be held by such Grantor in trust for the Administrative
Agent and the Lenders, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables
shall be accompanied by a report identifying in reasonable detail the nature
and source of the payments included in the deposit.

 

(c)   At the Administrative Agent’s request, each
Grantor shall deliver to the Administrative Agent all original and other
documents evidencing, and relating to, the
agreements and transactions which gave rise to the Receivables,
including, without limitation, all original orders, invoices and shipping
receipts.

 

6.2   Communications
with Obligors; Grantors Remain Liable. 
(a) The Administrative Agent in its own name or in the name of others
may at any time communicate with obligors under the Receivables to verify with
them to the Administrative Agent’s satisfaction the existence, amount and terms
of any Receivables.

 

(b)   Upon the request of the Administrative Agent
at any time after the occurrence and during
the continuance of an Event of Default, each Grantor shall notify obligors on
the Receivables that the Receivables have been assigned to the Administrative
Agent for the ratable benefit of the Lenders and that payments in respect
thereof shall be made directly to the Administrative Agent.

 

(c)   Anything herein to the contrary
notwithstanding, each Grantor shall remain liable under each of the Receivables
to observe and perform all the conditions and obligations to be observed and
performed by it thereunder, all in accordance with the terms of any agreement
giving rise thereto.  Neither the
Administrative Agent nor any Lender shall have any obligation or liability
under any Receivable (or any agreement giving rise thereto) by reason of or
arising out of this Agreement or the receipt by the Administrative Agent or any
Lender of any payment relating thereto, nor shall the Administrative Agent or
any Lender be obligated in any manner to perform any of the obligations of any
Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the
sufficiency of any payment received by it or as to the sufficiency of any
performance by any party thereunder, to present or file any claim, to take any
action to enforce any performance or to collect the payment of any amounts
which may have been assigned to it or to which it may be entitled at any time
or times.

 

6.3   Pledged Stock.  (a) Unless an Event of Default shall have
occurred and be continuing and the Administrative Agent shall have given notice
to the relevant Grantor of the Administrative Agent’s intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Grantor shall be
permitted to receive all cash dividends paid in respect of the Pledged Stock
and all payments made in respect of the Pledged Notes, in each case paid in the
normal course of business of the

 

15

 

relevant Issuer and consistent with past practice, to the extent
permitted in the Credit Agreement, and to exercise all voting and corporate
rights with respect to the Investment Property; provided, however,
that no vote shall be cast or corporate right exercised or other action taken
which, in the Adminstrative Agent’s reasonable judgment, would impair the
Collateral or which would be inconsistent with or result in any violation of
any provision of the Credit Agreement, this Agreement or any other Loan
Document.

 

(b)   If an Event of Default shall occur and be
continuing and the Administrative Agent shall give notice of its intent to
exercise such rights to the relevant Grantor or Grantors, (i) the
Administrative Agent shall have the right to receive any and all cash
dividends, payments or other Proceeds paid in respect of the Investment
Property and make application thereof to the Obligations in such order as the
Administrative Agent may determine, and (ii) any or all of the Investment
Property shall be registered in the name of the Administrative Agent or its
nominee, and the Administrative Agent or its nominee may thereafter exercise
(x) all voting, corporate and other rights pertaining to such Investment
Property at any meeting of shareholders of the relevant Issuer or Issuers or
otherwise and (y) any and all rights of conversion, exchange and subscription
and any other rights, privileges or options pertaining to such Investment
Property as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate structure of any
Issuer, or upon the exercise by any Grantor or the Administrative Agent of any
right, privilege or option pertaining to such Investment Property, and in
connection therewith, the right to deposit and deliver any and all of the
Investment Property with any committee, depositary, transfer agent, registrar
or other designated agency upon such terms and conditions as the Administrative
Agent may determine), all without liability except to account for property
actually received by it, but the Administrative Agent shall have no duty to any
Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

 

(c)   Each Grantor hereby authorizes and instructs
each Issuer of any Investment Property pledged by such Grantor hereunder to (i)
comply with any instruction received by it from the Administrative Agent in
writing that (x) states that an Event of Default has occurred and is continuing
and (y) is otherwise in accordance with the terms of this Agreement, without
any other or further instructions from such Grantor, and each Grantor agrees
that each Issuer shall be fully protected in so complying, and (ii) following
an Event of Default, pay any dividends or other payments with respect to the
Investment Property directly to the Administrative Agent.

 

6.4   Proceeds
to be Turned Over To Administrative Agent.  In addition to the rights of the Administrative Agent and the
Lenders specified in Section 6.1 with respect to payments of Receivables, if an
Event of Default shall occur and be continuing, all Proceeds received by any
Grantor consisting of cash, checks and other near-cash items shall be held by
such Grantor in trust for the Administrative Agent and the Lenders, segregated
from other funds of such Grantor, and shall, forthwith upon receipt by such
Grantor, be turned over to the Administrative Agent in the exact form received
by such Grantor (duly indorsed by such Grantor to the Administrative Agent, if
required).  All Proceeds received by the
Administrative Agent hereunder shall be held by the Administrative Agent in a
Collateral Account maintained under its sole dominion and control.  All Proceeds while held by the Administrative
Agent in a Collateral Account (or by such Grantor in trust for the
Administrative Agent and the Lenders) shall continue to be held as collateral
security for all the Obligations and shall not constitute payment thereof until
applied as provided in Section 6.5.

 

6.5   Application
of Proceeds.  At such intervals
as may be agreed upon by the Borrower and the Administrative Agent, or, if an
Event of Default shall have occurred and be continuing, at any time at the
Administrative Agent’s election, the Administrative Agent may apply all or any
part of

 

16

 

Proceeds constituting Collateral, whether or not held in any Collateral
Account and any proceeds of the guarantee set forth in Section 2 in
payment of the Obligations in the following order:

 

First, to pay incurred
and unpaid fees and expenses of the Agents under the Loan Documents;

 

Second, to the
Administrative Agent, for application by it towards payment of amounts then due
and owing and remaining unpaid in respect of the Obligations, pro rata among
the Lenders according to the amounts of the Obligations then due and owing and
remaining unpaid to the Lenders;

 

Third, to the
Administrative Agent, for application by it towards prepayment of the
Obligations, pro rata among the Lenders according to the amounts of the
Obligations then held by the Lenders; and

 

Fourth, any balance of
such proceeds remaining after the Obligations shall have been paid in full, no
Letters of Credit shall be outstanding and the Commitments shall have
terminated shall be paid over to the Borrower or to whomsoever may be lawfully
entitled to receive the same.

 

6.6   Code and
Other Remedies.  If an Event of
Default shall occur and be continuing, the Administrative Agent, on behalf of
the Lenders, may exercise, in addition to all other rights and remedies granted
to them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Obligations, all rights and remedies of a secured
party under the New York UCC or any other applicable law.  Without limiting the generality of the foregoing, the Administrative Agent, without demand
of performance or other demand, presentment, protest, advertisement or notice
of any kind (except any notice required by law referred to below) to or upon
any Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker’s board or office of
the Administrative Agent or any Lender or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit
risk.  The Administrative Agent or any
Lender shall have the right upon any such public sale or sales, and, to the
extent permitted by law, upon any such private sale or sales, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor,
which right or equity is hereby waived and released.  Each Grantor further agrees, at the Administrative Agent’s
request, to assemble the Collateral and make it available to the Administrative
Agent at places which the Administrative Agent shall reasonably select, whether
at such Grantor’s premises or elsewhere. 
The Administrative Agent shall apply the net proceeds of any action
taken by it pursuant to this Section 6.6, after deducting all reasonable costs
and expenses of every kind incurred in connection therewith or incidental to
the care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the Administrative Agent and the Lenders hereunder,
including, without limitation, reasonable attorneys’ fees and disbursements, to
the payment in whole or in part of the Obligations, in such order as the
Administrative Agent may elect, and only after such application and after the
payment by the Administrative Agent of any other amount required by any
provision of law, including, without limitation, Section 9-504(l)(c) of the New
York UCC, need the Administrative Agent account for the surplus, if any, to any
Grantor.  To the extent permitted by
applicable law, each Grantor waives all claims, damages and demands it may
acquire against the Administrative Agent or any Lender arising out of the
exercise by them of any rights hereunder. 
If any notice of a proposed sale or other disposition of

 

17

 

Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other
disposition.

 

6.7   Registration
Rights.  (a) If the
Administrative Agent shall determine to exercise its right to sell any or all
of the Pledged Stock pursuant to Section 6.6, and if in the opinion of the
Administrative Agent it is necessary or advisable to have the Pledged Stock, or
that portion thereof to be sold, registered under the provisions of the Securities
Act, the relevant Grantor will cause the Issuer thereof to (i) execute and
deliver, and cause the directors and officers of such Issuer to execute and
deliver, all such instruments and documents, and do or cause to be done all
such other acts as may be, in the opinion of the Administrative Agent,
necessary or advisable to register the Pledged Stock, or that portion thereof
to be sold, under the provisions of the Securities Act, (ii) use its best
efforts to cause the registration statement relating thereto to become
effective and to remain effective for a period of one year from the date of the
first public offering of the Pledged Stock, or that portion thereof to be sold,
and (iii) make all amendments thereto and/or to the related prospectus which,
in the opinion of the Administrative Agent, are necessary or advisable, all in
conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto.  Each Grantor agrees to cause such Issuer to
comply with the provisions of the securities or “Blue Sky” laws of any and all
jurisdictions which the Administrative Agent shall designate and to make
available to its security holders, as soon as practicable, an earnings
statement (which need not be audited) which will satisfy the provisions of
Section II (a) of the Securities Act.

 

(b)   Each Grantor recognizes that the
Administrative Agent may be unable to effect a public sale of any or all the
Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or
resale thereof.  Each Grantor
acknowledges and agrees that any such private sale may result in prices and
other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner.  The Administrative Agent shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

 

(c)   Each Grantor agrees to use its best efforts
to do or cause to be done all such other acts as may be necessary to make such
sale or sales of all or any portion of the Pledged Stock pursuant to this
Section 6.7 valid and binding and in compliance with any and all other
applicable Requirements of Law.  Each
Grantor further agrees that a breach of any of the covenants contained in this
Section 6.7 will cause irreparable injury to the Administrative Agent and the
Lenders, that the Administrative Agent and the Lenders have no adequate remedy
at law in respect of such breach and, as a consequence, that each and every
covenant contained in this Section 6.7 shall be specifically enforceable
against such Grantor, and such Grantor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants
except for a defense that no Event of Default has occurred under the Credit
Agreement.

 

6.8   Waiver;
Deficiency.  Each Grantor waives
and agrees not to assert any rights or privileges which it may acquire under
Section 9-112 of the New York UCC.  Each
Grantor shall remain liable for any deficiency if the proceeds of any sale or
other disposition of the Collateral are insufficient to pay its Obligations and
the fees and disbursements of any attorneys employed by the Administrative
Agent or any Lender to collect such deficiency.

 

18

 

SECTION 7.  THE
ADMINISTRATIVE AGENT

 

7.1   Administrative
Agent’s Appointment as Attorney-in-Fact, etc.  (a) Each Grantor hereby irrevocably constitutes
and appoints the Administrative Agent and any officer or agent thereof, with
full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in
the name of such Grantor or in its own name, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to
execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement, and, without limiting
the generality of the foregoing, each Grantor hereby gives the Administrative
Agent the power and right, on behalf of such Grantor, without notice to or
assent by such Grantor, to do any or all of the following:  

 

(i)    in the name of such Grantor or its own name,
or otherwise, take possession of and indorse and collect any checks, drafts,
notes, acceptances or other instruments for the payment of moneys due under any
Receivable or with respect to any other Collateral and file any claim or take
any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Administrative Agent for the purpose of collecting
any and all such moneys due under any Receivable or with respect to any other
Collateral whenever payable;

 

(ii)   in the case of any Intellectual Property,
execute and deliver, and have recorded, any and all agreements, instruments,
documents and papers as the Administrative Agent may request to evidence the
Administrative Agent’s and the Lenders’ security interest in such Intellectual
Property and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby;

 

(iii)  pay or discharge taxes and Liens levied or
placed on or threatened against the Collateral, effect any repairs or any
insurance called for by the terms of this Agreement and pay all or any part of
the premiums therefor and the costs thereof;

 

(iv)  execute, in connection with any sale provided
for in Section 6.6 or 6.7, any indorsements, assignments or other instruments
of conveyance or transfer with respect to the Collateral; and

 

(v)   (1) direct any party liable for any payment
under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct; (2)
ask or demand for, collect, and receive payment of and receipt for, any
and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (3) sign and indorse any invoices,
freight or express bills, bills of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications, notices and other documents
in connection with any of the Collateral; (4) commence and prosecute any suits,
actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any portion thereof and to enforce
any other right in respect of any Collateral; (5) defend any suit, action or
proceeding brought against such Grantor with respect to any Collateral; (6)
settle, compromise or adjust any such suit, action or proceeding and, in
connection therewith, give such discharges or releases as the Administrative
Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark
(along with the goodwill of the business to which any such Copyright, Patent or
Trademark pertains), throughout the world for such term or terms, on such
conditions, and in such manner, as the Administrative Agent shall in its sole
discretion determine; and (8) generally, sell, transfer, pledge and make any

 

19

 

agreement with respect to or otherwise deal with any
of the Collateral as fully and completely as though the Administrative Agent
were the absolute owner thereof for all purposes, and do, at the Administrative
Agent’s option and such Grantor’s expense, at any time, or from time to time,
all acts and things which the Administrative Agent deems necessary to protect,
preserve or realize upon the Collateral and the Administrative Agent’s and the
Lenders’ security interests therein and to effect the intent of this Agreement,
all as fully and effectively as such Grantor might do.

 

Anything in this Section 7.1(a) to the contrary
notwithstanding, the Administrative Agent agrees that it will not exercise any
rights under the power of attorney provided for in this Section 7.1(a) unless
an Event of Default shall have occurred and be continuing.

 

(b)   If any Grantor fails to perform or comply
with any of its agreements contained herein, the Administrative Agent, at its
option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

 

(c)   The expenses of the Administrative Agent incurred
in connection with actions undertaken as provided in this Section 7.1, together
with interest thereon at a rate per annum equal to the rate per annum at which
interest would then be payable on past due Base Rate Loans under the Credit
Agreement, from the date of payment by the Administrative Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the
Administrative Agent on demand.

 

(d)   Each Grantor hereby ratifies all that said
attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby
are released.

 

7.2   Duty of
Administrative Agent.  The
Administrative Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession, under Section 9-207
of the New York UCC or otherwise, shall be to deal with it in the same manner
as the Administrative Agent deals with similar property for its own
account.  Neither the Administrative
Agent, any Lender nor any of their respective officers, directors, employees or
agents shall be liable for failure to demand, collect or realize upon any of
the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Grantor or
any other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.  The
powers conferred on the Administrative Agent and the Lenders hereunder are
solely to protect the Administrative Agent’s and the Lenders’ interests in the
Collateral and shall not impose any duty upon the Administrative Agent or any
Lender to exercise any such powers.  The
Administrative Agent and the Lenders shall be accountable only for amounts that
they actually receive as a result of the exercise of such powers, and neither
they nor any of their officers, directors, employees or agents shall be
responsible to any Grantor for any act or failure to act hereunder, except for
their own gross negligence or willful misconduct.

 

7.3   Execution
of Financing Statements. 
Pursuant to Section 9-402 of the New York UCC and any other applicable
law, each Grantor authorizes the Administrative Agent to file or record
financing statements and other filing or recording documents or instruments
with respect to the Collateral without the signature of such Grantor in such
form and in such offices as the Administrative Agent determines appropriate to
perfect the security interests of the Administrative Agent under this
Agreement.  A photographic or other
reproduction of this Agreement shall be sufficient as a financing statement or
other filing or recording document or instrument for filing or recording in any
jurisdiction.

 

20

 

7.4   Authority
of Administrative Agent.  Each
Grantor acknowledges that the rights and responsibilities of the Administrative
Agent under this Agreement with respect to any action taken by the
Administrative Agent or the exercise or non-exercise by the Administrative
Agent of any option, voting right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this Agreement shall, as
between the Administrative Agent and the Lenders, be governed by the Credit
Agreement and by such other agreements with respect thereto as may exist from
time to time among them, but, as between the Administrative Agent and the
Grantors, the Administrative Agent shall be conclusively presumed to be acting
as agent for the Lenders with full and valid authority so to act or refrain
from acting, and no Grantor shall be under any obligation, or entitlement, to
make any inquiry respecting such authority.

 

SECTION 8. 
MISCELLANEOUS

 

8.1   Amendments in
Writing.  None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise
modified, nor may any Subsidiary Guarantor or any Collateral be released, except
in accordance with subsection 10.1 of the Credit Agreement.

 

8.2   Notices.  All notices, requests and demands to or upon
the Administrative Agent or any
Grantor hereunder shall be effected in the manner provided for in subsection
10.2 of the Credit Agreement; provided that any such notice, request or
demand to or upon any Guarantor shall be addressed to such Guarantor at its
notice address set forth on Schedule 1.

 

8.3   No
Waiver by Course of Conduct;  Cumulative
Remedies.  Neither the
Administrative Agent nor any Lender shall by any act (except by a written
instrument pursuant to Section  8.1), delay, indulgence, omission
or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. 
No failure to exercise, nor any delay in exercising, on the part of the
Administrative Agent or any Lender, any right, power or privilege hereunder
shall operate as a waiver thereof.  No
single or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege.  A waiver by the
Administrative Agent or any Lender of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the
Administrative Agent or such Lender would otherwise have on any future
occasion.  The rights and remedies
herein provided are cumulative, may be exercised singly or concurrently and are
not exclusive of any other rights or remedies provided by law.

 

8.4   Enforcement
Expense;  Indemnification.  (a) Each Guarantor agrees to pay or
reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in collecting against such Guarantor under the guarantee
contained in Section 2 or otherwise enforcing or preserving any rights under
this Agreement and the other Loan Documents to which such Guarantor is a party,
including, without limitation, the fees and disbursements of counsel (including
the reasonable allocated fees and expenses of in-house counsel) to each Lender
and of counsel to the Administrative Agent.

 

(b)   Each Guarantor agrees to pay, and to save the
Administrative Agent and the Lenders harmless from, any and all liabilities
with respect to, or resulting from any delay in paying, any and all stamp,
excise, sales or other taxes which may be payable or determined to be payable
with respect to any of the Collateral or in connection with any of the
transactions contemplated by this Agreement.

 

(c)   Each Guarantor agrees to pay, and to save the
Administrative Agent and the Lenders harmless from, any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits,

 

21

 

costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement to the extent the Borrower would be required to do so
pursuant to subsection 10.5 of the Credit Agreement.

 

(d)   The agreements in this Section 8.4 shall
survive repayment of the Obligations and all other amounts payable under the
Credit Agreement and the other Loan Documents.

 

8.5   Successors
and Assigns  .  This Agreement
shall be binding upon the successors and assigns of each Grantor and shall
inure to the benefit of the Administrative Agent and the Lenders and their
successors and assigns; provided that no Grantor may assign, transfer or
delegate any of its rights or obligations under this Agreement without the
prior written consent of the Administrative Agent.

 

8.6   Set-Off.  Each Grantor hereby irrevocably authorizes
the Administrative Agent and each Lender at any time and from time to time
while an Event of Default shall have occurred and be continuing, without notice
to such Grantor or any other Grantor, any such notice being expressly waived by
each Grantor, to set-off and appropriate and apply any and all deposits
(general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by the Administrative Agent or such Lender to or for the
credit or the account of such Grantor, or any part thereof in such amounts as
the Administrative Agent or such Lender may elect, against and on account of
the obligations and liabilities of such Grantor to the Administrative Agent or
such Lender hereunder and claims of every nature and description of the Administrative
Agent or such Lender against such Grantor, in any currency, whether arising
hereunder, under the Credit Agreement, any
other Loan Document or otherwise, as the Administrative Agent or such Lender
may elect, whether or not the
Administrative Agent or any Lender has made any demand for payment and although
such obligations, liabilities and claims may be contingent or unmatured.  The Administrative Agent and each Lender
shall notify such Grantor promptly of any such set-off and the application made
by the Administrative Agent or such Lender of the proceeds thereof, provided
that the failure to give such notice shall not affect the validity of such
set-off and application.  The rights of
the Administrative Agent and each Lender under this Section 8.6 are in addition
to other rights and remedies (including, without limitation, other rights of
set-off) which the Administrative Agent or such Lender may have.

 

8.7   Counterparts.  This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

 

8.8   Severability  .  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

8.9   Section Headings.  The Section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

 

8.10 Integration.  This Agreement and the other Loan Documents
represent the agreement of the Grantors, the Administrative Agent and the
Lenders with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the

 

22

 

Administrative Agent or any Lender relative to subject matter hereof
and thereof not expressly set forth or referred to herein or in the other Loan
Documents.

 

8.11  GOVERNING LAW. 
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

 

8.12 Submission
To Jurisdiction;  Waivers.  Each Grantor hereby irrevocably and
unconditionally:

 

(a)   submits for itself and its property in any
legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the
Courts of the State of New York, the courts of the United States of America for
the Southern District of New York, and appellate courts from any thereof;

 

(b)   consents that any such action or proceeding
may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and agrees
not to plead or claim the same;

 

(c)   agrees that service of process in any such
action or proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage prepaid, to
such Grantor at its address referred to in Section 8.2 or at such other address
of which the Administrative Agent shall have been notified pursuant thereto;

 

(d)   agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and

 

(e)   waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or
consequential damages.

 

8.13 Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)   it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party;

 

(b)   neither the Administrative Agent nor any
Lender has any fiduciary relationship with or duty to any Grantor arising out
of or in connection with this Agreement or any of the other Loan Documents, and
the relationship between the Grantors, on the one hand, and the Administrative
Agent and Lenders, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor; and

 

(c)   no joint venture is created hereby or by the
other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Grantors and the Lenders.

 

23

 

8.14 Additional
Grantors.  Each Subsidiary of
the Borrower that is required to become a party to this Agreement pursuant to
subsection 6.10 of the Credit Agreement shall become a Grantor for all purposes
of this Agreement upon execution and delivery by such Subsidiary of an
Assumption Agreement in the form of Annex I hereto.

 

8.15 Releases.  (a) At such time as the Loans, the
Reimbursement Obligations and the other Obligations (other than obligations
under or in respect of Lender Hedge Agreements) shall have been paid in full,
the Commitments have been terminated and no Letters of Credit shall be
outstanding, the Collateral shall be released from the Liens created hereby,
and this Agreement and all obligations (other than those expressly stated to
survive such termination) of the Administrative Agent and each Grantor
hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall
revert to the Grantors.  At the request
and sole expense of any Grantor following any such termination, the
Administrative Agent shall deliver to such Grantor any Collateral held by the
Administrative Agent hereunder, and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such
termination.

 

(b)   If any of the Collateral shall be sold,
transferred or otherwise disposed of by any Grantor in a transaction permitted
by the Credit Agreement, then the Administrative Agent, at the request and sole
expense of such Grantor, shall execute and deliver to such Grantor all releases
or other documents reasonably necessary or desirable for the release of the
Liens created hereby on such Collateral. 
At the request and sole expense of the Borrower, a Subsidiary Guarantor
shall be released from its obligations hereunder in the event that all the Capital
Stock of such Subsidiary Guarantor shall be sold, transferred or otherwise
disposed of in a transaction permitted by the Credit Agreement; provided
that the Borrower shall have delivered to the Administrative Agent, at least
ten Business Days prior to the date of the proposed release, a written request
for release identifying the relevant Subsidiary Guarantor and the terms of the
sale or other disposition in reasonable detail, including the price thereof and
any expenses in connection therewith, together with a certification by the
Borrower stating that such transaction is in compliance with the Credit
Agreement and the other Loan Documents.

 

8.16  WAIVER OF JURY TRIAL.  EACH
GRANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, EACH AGENT AND EACH LENDER
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

 

[Remainder of Page Intentionally Left Blank]

 

24

 

IN WITNESS WHEREOF, each of the undersigned has caused
this Guarantee and Collateral Agreement to be duly executed and delivered as of
the date first above written.

 

	
   

  	
  INAMED CORPORATION

  	
   

  
	
   

  	
  BIODERMIS CORPORATION

  	
   

  
	
   

  	
  BIOENTERICS CORPORATION

  	
   

  
	
   

  	
  BIOPLEXUS CORPORATION

  	
   

  
	
   

  	
  COLLAGEN AESTHETICS, INC.

  	
   

  
	
   

  	
  COLLAGEN AESTHETICS INTERNATIONAL, INC.

  	
   

  
	
   

  	
  CUI CORPORATION

  	
   

  
	
   

  	
  FLOWMATRIX CORPORATION

  	
   

  
	
   

  	
  INAMED DEVELOPMENT COMPANY

  	
   

  
	
   

  	
  INAMED INTERNATIONAL CORP.

  	
   

  
	
   

  	
  INAMED JAPAN, INC.

  	
   

  
	
   

  	
  MCGHAN MEDICAL CORPORATION

  	
   

  
	
   

  	
  MEDISYN TECHNOLOGIES CORPORATION

  	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

Schedule 1

 

NOTICE ADDRESSES OF GUARANTORS

 

 

Schedule 2

 

DESCRIPTION OF INVESTMENT PROPERTY

 

Pledged Stock:

 

	
  Issuer

  	
   

  	
  Class of
  Stock

  	
   

  	
  Stock
  Certificate No.

  	
   

  	
  No. of
  Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Notes:

 

	
  Issuer

  	
   

  	
  Payee

  	
   

  	
  Principal
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule 3

 

FILINGS AND OTHER ACTIONS

REQUIRED TO PERFECT
SECURITY INTERESTS

 

Uniform Commercial Code
Filings

 

[List each office where a financing statement is to be
filed]

 

Patent and Trademark
Filings

 

[List all filings]

 

 

Actions with respect to
Pledged Stock

 

 

Other Actions

 

 

[Describe other actions to be taken]

 

 

Schedule 4

 

LOCATION OF
JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

 

	
  Grantor

  	
   

  	
  Location

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

Schedule 5

 

LOCATION OF INVENTORY AND EQUIPMENT

 

	
  Grantor

  	
   

  	
  Location

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

Schedule 6

 

COPYRIGHTS AND COPYRIGHT LICENSES

 

 

PATENTS AND PATENT LICENSES

 

 

TRADEMARKS AND TRADEMARK
LICENSES

 

 

 

ACKNOWLEDGMENT AND CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),made by the Grantors parties thereto for the benefit of First Union
National Bank, as Administrative Agent. 
The undersigned agrees for the benefit of the Administrative Agent and
the Lenders as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis mutandis, with respect to all
actions that  may be required of it
pursuant to Section 6.3(c) or 6.7 of the Agreement.

 

	
   

  	
  [NAME OF ISSUER]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Annex 1 to

Guarantee and Collateral
Agreement

 

ASSUMPTION AGREEMENT, dated as of                    200    , made by                 , a                   corporation (the “Additional Grantor”),
in favor of First Union National Bank, as administrative agent (in such
capacity, the “Administrative Agent”) for the banks and other financial
institutions (the “Lenders”) parties to the Credit Agreement referred to
below.  All capitalized terms not
defined herein shall have the meaning ascribed to them in such Credit
Agreement.

 

W I T N
E S S E T H:

 

WHEREAS, Inamed Corporation (the “Borrower”),
the Lenders and the Administrative Agent have entered into a Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”);

 

WHEREAS, in connection with the Credit Agreement, the
Borrower and certain of its Affiliates (other than the Additional Grantor) have
entered into the Guarantee and Collateral Agreement, dated as of January     , 2000 (as amended, supplemented or
otherwise modified from time to time, the “Guarantee and Collateral Agreement”)
in favor of the Administrative Agent for the benefit of the Lenders;

 

WHEREAS, the Credit Agreement requires the Additional
Grantor to become a party to the Guarantee and Collateral Agreement; and

 

WHEREAS, the Additional Grantor has agreed to execute
and deliver this Assumption Agreement in order to become a party to the
Guarantee and Collateral Agreement;

 

NOW, THEREFORE, IT IS AGREED:

 

1.  Guarantee
and Collateral Agreement.  By
executing and delivering this Assumption Agreement, the Additional Grantor, as
provided in Section 8.15 of the Guarantee and Collateral Agreement, hereby
becomes a party to the Guarantee and Collateral Agreement as a Grantor
thereunder with the same force and effect as if originally named therein as a
Grantor and, without limiting the generality of the foregoing, hereby expressly
assumes all obligations and liabilities of a Grantor thereunder.  The information set forth in Annex 1-A
hereto is hereby added to the information set forth in the Schedules to the
Guarantee and Collateral Agreement.  The
Additional Grantor hereby represents and warrants that each of the
representations and warranties contained in Section 4 of the Guarantee and
Collateral Agreement is true and correct on and as the date hereof (after
giving effect to this Assumption Agreement) as if made on and as of such date.

 

2.  GOVERNING LAW.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.

 

 

IN WITNESS WHEREOF, the undersigned has caused this
Assumption Agreement to be duly executed and delivered as of the date first
above written.

 

	
   

  	
  [ADDITIONAL
  GRANTOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2

 

Annex 1-A to

Assumption Agreement

 

Supplement to Schedule 1

 

 

Supplement to Schedule 2

 

 

Supplement to Schedule 3

 

 

Supplement to Schedule 4

 

 

Supplement to Schedule 5

 

 

Supplement to Schedule 6

 

 

Supplement to Schedule 7

 

 

EXHIBIT B

 

[FORM OF COMPLIANCE
CERTIFICATE]

 

This Compliance Certificate is delivered to you
pursuant to Section 6.2 of the Credit Agreement, dated as of February 1, 2000,
among INAMED CORPORATION, a Delaware corporation (the “Borrower”), the
several banks and other financial institutions or entities from time to time
parties thereto (the “Lenders”), BEAR, STEARNS & CO. INC., as sole
lead arranger and sole book manager (in such capacity, the “Lead Arranger”),
GMAC COMMERCIAL CREDIT LLC, as documentation agent (in such capacity, the “Documentation
Agent”), BEAR STEARNS CORPORATE LENDING INC., as syndication agent (in such
capacity, the “Syndication Agent”), and FIRST UNION NATIONAL BANK, as
administrative agent (in such capacity, the “Administrative Agent”) (as
amended, supplemented or otherwise modified from time to time in accordance
with the terms thereof, the “Credit Agreement”).  Terms defined in the Credit Agreement and
not otherwise defined herein are used herein with the meanings so defined.

 

1.             I
am the duly elected, qualified and acting Chief Financial Officer of the
Borrower.

 

2.             1
have reviewed and are familiar with the contents of this Compliance
Certificate.

 

3.             1
have reviewed the terms of the Credit Agreement and the Loan Documents and have
made or caused to be made under my supervision, a review in reasonable detail
of the transactions and condition of the Borrower during the accounting period
covered by the financial statements attached hereto as Attachment 1 (the
“Financial Statements”).  Such
review did not disclose the existence during or at the end of the accounting
period covered by the Financial Statements, and I have no knowledge of the
existence, as of the date of this Certificate, of any condition or event which
constitutes a Default or Event of Default [, except as set forth below].

 

4.             Attached
hereto as Attachment 2 are the computations showing compliance with the
covenants set forth in Section 7.1 and 7.2 of the Credit Agreement.

 

IN WITNESS
WHEREOF, I execute this Compliance Certificate this                     day of           , 200   .

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Attachment 1

to Exhibit B

 

[Financial Statements]

 

 

Attachment 2

to Exhibit B

 

The information described herein is as of           , 200  , and pertains to the period from                   ,        
to                   , 200        .

 

[Set forth Covenant Calculations]

 

 

EXHIBIT C

 

[FORM OF CLOSING
CERTIFICATE] (1)

 

Pursuant to Section 5.1(g) of the Credit Agreement,
dated as of February 1, 2000, among INAMED CORPORATION, a Delaware corporation
(the “Borrower”), the several banks and other financial institutions or
entities from time to time parties thereto (the “Lenders”), BEAR,
STEARNS & CO. INC., as sole lead arranger and sole book manager (in such
capacity, the “Lead Arranger”), GMAC COMMERCIAL CREDIT LLC, as
documentation agent (in such capacity, the “Documentation Agent”), BEAR
STEARNS CORPORATE LENDING INC., as syndication agent (in such capacity, the “Syndication
Agent”), and FIRST UNION NATIONAL BANK, as administrative agent (in such
capacity, the “Administrative Agent”) (as amended, supplemented or
otherwise modified from time to time in accordance with the terms thereof, the
“Credit Agreement”), the undersigned officer of the [Borrower]
[Guarantor as representative of [NAME OF COMPANY] under the Loan Documents (the
“Guarantor”)] hereby certifies as follows (capitalized terms used herein
and not otherwise defined have the meanings assigned to such terms in the
Credit Agreement).

 

a.        Attached hereto as Exhibit 1 is a
true, complete and correct copy of the Certificate of Incorporation of the [Borrower][Guarantor],
certified as of a recent date by the Secretary of State of
the [Borrower’s][Guarantor’s]  jurisdiction of incorporation;

 

b.        Attached hereto as Exhibit 2 is a
true, complete and correct copy of the good standing certificate of the [Borrower][Guarantor],
certified as of a recent date by the Secretary of State of the [Borrower’s] [Guarantor’s]  jurisdiction of incorporation;

 

c.        Attached hereto as Exhibit 3 is a
true and complete copy of resolutions duly adopted by the Board of Directors of
the [Borrower][Guarantor]on           , 2000
authorizing the execution, delivery and performance by it of the Loan Documents
to which it is a party, and authorizing the [borrowings][guarantees]  provided for in the Loan Documents, and such other
acts and things necessary for the consummation of the transactions contemplated
by the Loan Documents; and such resolutions have not in any way been rescinded
or modified and have been in full force and effect since their adoption to and
including the date hereof and are now in full force and effect;

 

d.        Attached hereto as Exhibit 4 are
true, complete and correct copies of the by-laws or other organizational
documents of the [Borrower][Guarantor]  as in effect on the date the
resolutions specified in paragraph (c) were adopted and which have not have
been amended since such date;

 

e.        [The Borrower has obtained all consents,
licenses and approvals required in connection with the execution, delivery and
performance of the Loan Documents to which it is a party, and the continuing
operation of the Borrower and its Subsidiaries; copies of all such consents,
licenses and approvals, if any, received

 

(1)           A Separate Closing
Certificate will be necessary for the Borrower and each Guarantor.

 

 

to the date hereof are
attached as Exhibit 5 hereto or have previously been delivered to the
Administrative Agent; and all such consents, licenses and approvals, if any,
are in full force and effect on the date hereof] [There are no consents,
licenses or approvals required in connection with the execution, delivery and
performance by the Guarantor or the validity and enforceability against the
Guarantor of the Loan Documents to which it is a party];

 

f.         The representations and warranties of
the [Borrower][Guarantor]set forth in each of the Loan Documents to which it is a
party or which are contained in any certificate furnished by or on behalf of
the [Borrower][Guarantor]pursuant to any of the Loan Documents to which it is a party
are true and correct in all material respects on and as of the date hereof with
the same effect as if made on the date hereof, except for representations and
warranties expressly stated to relate to a specific earlier date, in which case
such representations and warranties were true and correct in all material respects
as of such earlier date.

 

g.        [The Lenders, the Agents and the Lead
Arranger have received all fees required to be paid, and all reasonable
expenses for which invoices have been presented, on or before the Closing
Date];(2)

 

h.        [After giving effect to the funding of
the Loans and the application of the proceeds therefrom, the Borrower will be
in compliance with, except for any noncompliance that could not reasonably be
expected to have a Material Adverse Effect, all its agreements relating to
Indebtedness];(2)

 

i.         [Evidence that the Bridge Loan
Agreement has been terminated and all amounts owing thereunder have been paid
in full has previously been provided to the Syndication Agent in accordance
with Section 5.1(b) of the Credit Agreement;](2)

 

j.         [No Default or Event of Default has
occurred and is continuing as of the date hereof or after giving effect to the
Loans to be made on the date hereof.](2)

 

k.        The following person is a duly elected
and qualified officer of the [Borrower][Guarantor],
holding the office indicated next to his name below, and the signature
appearing opposite his name below is the true and genuine signature of such
officer, and such officer is duly authorized to execute and deliver on behalf
of the [Borrower][Guarantor]  the Loan Documents to which it is
a party, and all certificates and other documents necessary or appropriate in
connection with such Loan Documents, or with the consummation of the
transactions contemplated thereby:

 

	
  Name

  	
   

  	
   

  	
  Office

  	
   

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(2)           These items should
be included only in the Borrower’s Closing Certificate.

 

2

 

IN WITNESS WHEREOF, I
hereunto set my name and signature as of the date set forth below.

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
  Dated:  
  January        , 2000

  	
   

  	
  Title:

  

 

I, the [Insert title](3) of Inamed
Corporation, do hereby certify that [Insert name of officer who signed above] is the [Insert title of officer who signed
above] of the [Borrower][Guarantor]  and that the signature set forth
above is his own true and genuine signature.

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibits attached hereto:

 

	
  Exhibit 1

  	
  -

  	
  Certificate of  Incorporation

  
	
  Exhibit 2

  	
  -

  	
  Good Standing Certificate

  
	
  Exhibit 3

  	
  -

  	
  Resolutions

  
	
  Exhibit 4

  	
  -

  	
  By-laws

  
	
  [Exhibit 5

  	
  -

  	
  Required Consents, Licenses and Approvals, if any]

  

 

(3)           To be completed by a
corporate secretary or similar officer.

 

3

 

EXHIBIT D

 

[FORM OF MASTER
ASSIGNMENT AND ACCEPTANCE]

 

Reference is made to the Credit Agreement, dated as of
February 1, 2000, among INAMED CORPORATION, a Delaware corporation (the “Borrower”),
the several banks and other financial institutions or entities from time to
time parties thereto (the “Lenders”), BEAR, STEARNS & CO. INC., as
sole lead arranger and sole book manager (in such capacity, the “Lead
Arranger”), GMAC COMMERCIAL CREDIT LLC, as documentation agent (in such
capacity, the “Documentation Agent”), BEAR STEARNS CORPORATE LENDING
INC., as syndication agent (in such capacity, the “Syndication Agent”),
and FIRST UNION NATIONAL BANK, as administrative agent (in such capacity, the “Administrative
Agent”) (as amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof, the “Credit Agreement”).  Terms defined in the Credit Agreement and
not otherwise defined herein are used herein with the meanings so defined.

 

The Assignor[s] identified on Schedule 1 hereto
([individually, an “Assignor” collectively, the “Assignors”][the “Assignor]”)
hereby agree[s] with each Assignee identified on Schedule 2 hereto
(individually, an “Assignee”; collectively, the “Assignees”)
that, effective as of the Assignment Effective Date set forth under such
Assignee’s name on Schedule 2 hereto (as to each such Assignee, the “Assignment
Effective Date”), the Assignor[s] hereby sell[s] and assign[s] to such
Assignee, without recourse to the Assignor[s], and each such Assignee hereby
purchases and assumes from the Assignor[s], without recourse to the
Assignor[s], the portion of the principal amount of the Loans outstanding under
the Credit Agreement set forth under such Assignee’s name on Schedule 2 hereto
(as to each such Assignee, the “Assigned Interest”).  From and after the Assignment Effective Date
(i) each Assignee shall be a party to and be bound by the provisions of the
Credit Agreement and, to the extent of the Assigned Interest, have the rights
and obligations of a Lender thereunder and (ii) the Assignor[s] shall, to the
extent of the Assigned Interest, relinquish [its][their] rights and be released
from [its][their] obligations under the Credit Agreement [(with each such assignment
of an Assigned Interest to an Assignee by the Assignors, in the case of
assignments which become effective on the Issue Date, to be made pro rata by
the Assignors and to reduce equally the Loans of the Assignors pro rata under
the Loan Agreement and, in the case of assignments which become effective after
the Issue Date, to be made individually by the relevant Assignor as set forth
on Schedule 2 hereto and to reduce the Loans of such Assignor under the Loan
Agreement)].

 

The Assignor[s] (a) make[s] no representation or
warranty and assume[s] no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit
Agreement or with respect to the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement, any other Loan
Document or any other instrument or document furnished pursuant thereto, other
than that the Assignor[s] ha[ve][s] not created any adverse claim upon the
interest being assigned by it hereunder and that such interest is free and
clear of any such adverse claim, and (b) make[s] no representation or warranty
and assume[s] no responsibility with respect to the financial condition of the
Borrower, any of its Subsidiaries or any other obligor or the performance or
observance by the Borrower, any of its Subsidiaries or any other obligor of any
of their respective obligations under the Credit Agreement or any other Loan
Document or any other instrument or document furnished pursuant hereto or
thereto.

 

Each Assignee (a) represents and warrants that it is
legally authorized to enter into this Master Assignment and Acceptance, (b)
confirms that it has received a copy of the Credit Agreement,

 

 

together with copies of the most recent financial statements delivered
pursuant to Section 4.1 or 6.1 thereof, as applicable, and such other documents
and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Master Assignment and Acceptance, (c) agrees
that it will, independently and without reliance upon the Assignor[s], any
Agent or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Credit Agreement, the other Loan
Documents or any other instrument or document furnished pursuant hereto or
thereto, and (d) appoints and authorizes the Administrative Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
the Credit Agreement, the other Loan Documents or any other instrument or
document furnished pursuant hereto or thereto as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are
incidental thereto.

 

Following the execution of this Master Assignment and
Acceptance, it will be delivered to the Administrative Agent (with a copy to
the Syndication Agent) and to the Borrower for their consent (if such consent
is required) and, if such consent is granted, for acceptance and recording by
the Administrative Agent pursuant to the Credit Agreement, effective as of the
Assignment Effective Date (which shall not, unless otherwise agreed to by the
Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative Agent).

 

Upon such consent, acceptance and recording, from and
after the Assignment Effective Date, the Administrative Agent shall make all
payments in respect of the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignee whether such amounts have
accrued prior to or on or after the Assignment Effective Date.  The Assignor[s] and each Assignee shall make
all appropriate adjustments in payments by the Administrative Agent for periods
prior to the Effective Date or with respect to the making of this assignment
directly between themselves.  This
Master Assignment and Acceptance shall become a binding agreement between the
Assignor[s] and each Assignee upon the execution and delivery of this Master
Assignment and Acceptance by the Assignor[s] and such Assignee.

 

This Master Assignment and Acceptance shall be
governed by and construed in accordance with the laws of the State of New
York.  This Master Assignment and
Acceptance may be executed by one or more of the parties hereto on any number
of counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties hereto have caused this
Master Assignment and Acceptance to be executed as of February [1], 2000 by
their respective duly authorized officers on Schedules 1 and 2[ * / ]
hereto.

 

*  [Schedule 2 to be revised to
specify individual (as opposed to pro rata) assignments by the Assignors]

 

2

 

Schedule l

 

	
   

  	
  [Assignor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

Accepted and [Consented to]:  **/

 

	
  INAMED CORPORATION

  	
  FIRST UNION NATIONAL BANK, as

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Title:

  
					

 

	
  BEAR STEARNS CORPORATE LENDING

  
	
  INC., as Syndication Agent

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

**           Pursuant to Section 10.6(c) of the Credit Agreement, the
consent of the Borrower, the Syndication Agent and the Administrative Agent is
only required in the case of an assignment of Loans and/or Commitments to an
Assignee that is not a Lender, an affiliate of a Lender or an Approved Fund; provided
that the consent of the Borrower is not required for any assignment that occurs
when an Event of Default pursuant to Section 8(f) of the Credit Agreement has
occurred and is continuing.

 

 

Schedule 2

 

	
   

  	
  [Assignee]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Loan Amount Assumed:    $

  
	
   

  	
  Assignment Effective Date:             , 200     

  
	
   

  	
   

  
	
   

  	
  Assignor:

  	
   

  	
   

  
						

 

 

Exhibit E - I

 

SEE TAB 6

 

 

Exhibit E–2

 

SEE TAB 7

 

 

EXHIBIT F

 

[FORM OF TAX EXEMPTION
CERTIFICATE]

 

Reference is made to the Credit Agreement, dated as of
February 1, 2000, among INAMED CORPORATION, a Delaware corporation (the “Borrower”),
the several banks and other financial institutions or entities from time to
time parties thereto (the “Lenders”), BEAR, STEARNS & CO. INC., as
sole lead arranger and sole book manager (in such capacity, the “Lead
Arranger”), GMAC COMMERCIAL CREDIT LLC, as documentation agent (in such
capacity, the “Documentation Agent”), BEAR STEARNS CORPORATE LENDING INC.,
as syndication agent (in such capacity, the “Syndication Agent”), and
FIRST UNION NATIONAL BANK, as administrative agent (in such capacity, the “Administrative
Agent”) (as amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof, the “Credit Agreement”).  Terms defined in the Credit Agreement and
not otherwise defined herein are used herein with the meanings so defined.  The undersigned lender (the “Non-U.S.
Lender”) is providing this certificate pursuant to Section 2.19(d) of the
Credit Agreement.  The Lender hereby
represents and warrants that:

 

1.             The
Non-U.S. Lender is the sole record and beneficial owner of the Loans or the
obligations evidenced by Note(s) in respect of which it is providing this
certificate.

 

2.             The
Non-U.S. Lender is not a “bank” for purposes of Section 881 (c)(3)(A) of the
Internal Revenue Code of 1986, as amended (the “Code”).  In this regard, the Lender further
represents and warrants that:

 

(a)           the Non-U.S Lender is not subject to
regulatory or other legal requirements as a bank in any jurisdiction; and

 

(b)          the Non-U.S Lender has not been
treated as a bank for purposes of any tax, securities law or other filing or
submission made to any Governmental Authority, any application made to a rating
agency or qualification for any exemption from tax, securities law or other
legal requirements;

 

(c)           The Non-U.S Lender is not a
10-percent shareholder of the Borrower within the meaning of Section
881(c)(3)(B) of the Code; and

 

(d)          The Non-U.S Lender is not a controlled
foreign corporation receiving interest from a related person within the meaning
of Section 881(c)(3)(C) of the Code.

 

IN WITNESS WHEREOF, the
undersigned has duly executed this certificate.

 

	
   

  	
  [NAME OF NON-U.S. LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

 

IN WITNESS WHEREOF, the
undersigned has duly executed this certificate.

 

	
   

  	
  [NAME OF NON–U.S.
  LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

2

 

EXHIBIT G-1

 

[FORM OF TERM NOTE]

 

THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED
EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT
REFERRED TO BELOW.  TRANSFERS OF THIS
NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE RECORDED IN THE REGISTER
MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF SUCH CREDIT
AGREEMENT.

 

	
   

  	
   

  	
  New York, New York

  
	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  , 200

  	
   

  
								

 

FOR VALUE RECEIVED, the undersigned, INAMED
CORPORATION, a Delaware corporation (the “Borrower”), hereby unconditionally
promises to pay to               (the “Lender”)
or its registered assigns in lawful money of the United States and in
immediately available funds, the principal amount of (a)                    DOLLARS ($             ), or, if less, (b) the unpaid
principal amount of the Term Loan made by the Lender pursuant to Section 2.1 of
the Credit Agreement.  The principal
amount shall be paid in the amounts and on the dates specified in Section 2.3
of the Credit Agreement.  The Borrower
further agrees to pay interest in like money on the unpaid principal amount
hereof from time to time outstanding at the rates and on the dates specified in
Section 2.14 of the Credit Agreement.

 

The holder of this Note is authorized to endorse on
the schedules annexed hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof the date, Type
and amount of the Term Loan and the date and amount of each payment or
prepayment of principal with respect thereto, each conversion of all or a
portion thereof to another Type, each continuation of all or a portion thereof
as the same Type and, in the case of Eurodollar Loans, the length of each
Interest Period with respect thereto. 
Each such endorsement shall, in the absence of manifest error,
constitute prima  facie evidence of the accuracy of the
information endorsed.  The failure to
make any such endorsement or any error in any such endorsement shall not affect
the obligations of the Borrower in respect of the Term Loan.

 

This Note (a) is one of
the Term Notes referred to in the Credit Agreement dated as of February 1, 2000
(as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the Lender, the other banks and financial
institutions or entities from time to time parties thereto, First Union
National Bank, as Administrative Agent, Bear, Stearns & Co., Inc., as Lead
Arranger, GMAC Commercial Credit LLC, as Documentation Agent, and Bear Stearns
Corporate Lending Inc., as Syndication Agent, (b) is subject to the provisions
of the Credit Agreement and (c) is subject to optional and mandatory prepayment
in whole or in part as provided in the Credit Agreement.  This Note is secured and guaranteed as
provided in the Loan Documents.  Reference
is hereby made to the Loan Documents for a description of the properties and
assets in which a security interest has been granted, the nature and extent of
the security and the guarantees, the terms and conditions upon which the
security interests and each guarantee were granted and the rights of the holder
of this Note in respect thereof.

 

Upon the occurrence of
any one or more of the Events of Default, all principal and all accrued
interest then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.

 

 

All parties now and
hereafter liable with respect to this Note, whether maker, principal, surety,
guarantor, endorser or otherwise, hereby waive to the extent permitted by
applicable law presentment, demand, protest and all other notices of any kind.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement.

 

NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE CREDIT AGREEMENT, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE
REGISTRATION AND OTHER PROVISIONS OF SECTION 10.6 OF THE CREDIT AGREEMENT.

 

THIS
NOTE SHALL BE GOVERNED BY, AND  CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  

  
	
   

  	
   

  	
  Title:

  

 

2

 

Schedule A

to Term Note

 

LOANS, CONVERSIONS AND
REPAYMENTS OF BASE RATE LOANS

 

	
  Date

  	
  Amount of Base

  Rate Loans

  	
  Amount

  Converted to

  Base Rate Loans

  	
  Amount of Principal

  of Base Rate Loans

  Repaid

  	
  Amount of Base

  Rate Loans

  Converted to

  Eurodollar Loans

  	
  Unpaid Principal

  Balance of Base Rate

  Loans

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule B

to Term Note

 

LOANS, CONTINUATIONS,
CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

 

	
  Date

  	
  Amount of

  Eurodollar

  Loans

  	
  Amount

  Converted to

  Eurodollar

  Loans

  	
  Interest
  Period

  and Eurodollar

  Rate with Respect

  Thereto

  	
  Amount of

  Principal of

  Eurodollar Loans

  Repaid

  	
  Amount of

  Eurodollar Loans

  Converted to

  Base Rate Loans

  	
  Unpaid
  Principal

  Balance of

  Eurodollar Loans

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT G-2

 

[FORM OF REVOLVING NOTE]

 

THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED
EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT
REFERRED TO BELOW.  TRANSFERS OF THIS
NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE RECORDED IN THE REGISTER
MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF SUCH CREDIT
AGREEMENT.

 

	
   

  	
   

  	
  New York, New York

  
	
  $

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  , 200

  	
   

  
								

 

FOR VALUE RECEIVED, the undersigned, INAMED
CORPORATION, a Delaware corporation (the “Borrower”), hereby
unconditionally promises to pay to                      (the “Lender”) or its registered
assigns in lawful money of the United States and in immediately available
funds, on the Revolving Termination Date the principal amount of (a)                DOLLARS ($          ) or, if less, (b) the aggregate
unpaid principal amount of all Revolving Loans made by the Lender to the
Borrower pursuant to Section 2.4 of the Credit Agreement.  The Borrower further agrees to pay interest
in like money on the unpaid principal amount hereof from time to time
outstanding at the rates and on the dates specified in Section 2.14 of the
Credit Agreement.

 

The holder of this Note
is authorized to endorse on the schedules annexed hereto and made a part hereof
or on a continuation thereof which shall be attached hereto and made a part
hereof the date, Type and amount of each Revolving Loan made pursuant to the
Credit Agreement and the date and amount of each payment or prepayment of
principal thereof, each continuation thereof, each conversion of all or a
portion thereof to another Type and, in the case of Eurodollar Loans, the
length of each Interest Period with respect thereto.  Each such endorsement shall, in the absence of manifest error,
constitute prima  facie evidence of the accuracy of the
information endorsed.  The failure to
make any such endorsement or any error in any such endorsement shall not affect
the obligations of the Borrower in respect of any Revolving Loan.

 

This Note (a) is one of
the Revolving Notes referred to in the Credit Agreement dated as of February 1,
2000 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the Lender, the other banks and financial
institutions or entities from time to time parties thereto, First Union
National Bank, as Administrative Agent, Bear, Stearns & Co., Inc., as Lead
Arranger, GMAC Commercial Credit LLC, as Documentation Agent, and Bear Stearns
Corporate Lending Inc., as Syndication Agent, (b) is subject to the provisions
of the Credit Agreement and (c) is subject to optional and mandatory prepayment
in whole or in part as provided in the Credit Agreement.  This Note is secured and guaranteed as
provided in the Loan Documents.  Reference
is hereby made to the Loan Documents for a description of the properties and
assets in which a security interest has been granted, the nature and extent of
the security and the guarantees, the terms and conditions upon which the
security interests and each guarantee were granted and the rights of the holder
of this Note in respect thereof.

 

Upon the occurrence of
any one or more of the Events of Default, all principal and all accrued
interest then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.

 

 

All parties now and hereafter liable with respect to
this Note, whether maker, principal, surety, guarantor, endorser or otherwise,
hereby waive to the extent permitted by applicable law presentment, demand,
protest and all other notices of any kind.

 

Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

 

NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE CREDIT AGREEMENT, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE
REGISTRATION AND OTHER PROVISIONS OF SECTION 10.6 OF THE CREDIT AGREEMENT.

 

THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2

 

Schedule A

to Revolving
Note

 

LOANS, CONVERSIONS
AND REPAYMENTS OF BASE RATE LOANS

 

	
  Date

  	
  Amount of Base

  Rate Loans

  	
  Amount

  Converted to

  Base Rate Loans

  	
  Amount of Principal

  of Base Rate Loans

  Repaid

  	
  Amount of Base

  Rate Loans

  Converted to

  Eurodollar Loans

  	
  Unpaid Principal

  Balance of Base Rate

  Loans

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule B

to Revolving Note

 

LOANS CONTINUATIONS,
CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

 

	
  Date

  	
  Amount of

  Eurodollar

  Loans

  	
  Amount

  Converted to

  Eurodollar

  Loans

  	
  Interest
  Period

  and Eurodollar

  Rate with Respect

  Thereto

  	
  Amount of

  Principal of

  Eurodollar Loans

  Repaid

  	
  Amount of

  Eurodollar Loans

  Converted to

  Base Rate Loans

  	
  Unpaid
  Principal

  Balance of

  Eurodollar Loans

  	
  Notation

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

EXHIBIT
G-3

 

[FORM OF SWING LINE NOTE]

 

THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED
EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT
REFERRED TO BELOW.  TRANSFERS OF THIS
NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE RECORDED IN THE REGISTER
MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF SUCH CREDIT
AGREEMENT.

 

	
  $

  	
   

  	
   

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
   

  	
   

  	
  ,  200

  	
   

  

 

FOR VALUE RECEIVED, the
undersigned, INAMED CORPORATION, a Delaware corporation (the “Borrower”),
hereby unconditionally promises to pay to                  (the “Swing Line Lender”) or its
registered assigns in lawful money of the United States and in immediately
available funds, on the Revolving Termination Date the principal amount of
(a)           DOLLARS ($        ), or, if less, (b) the aggregate
unpaid principal amount of all Swing Line Loans made by the Swing Line Lender
to the Borrower pursuant to Section 2.6 of the Credit Agreement, as hereinafter
defined.  The Borrower further agrees to
pay interest in like money on the unpaid principal amount hereof from time to
time outstanding at the rates and on the dates specified in Section 2.14 of the
Credit Agreement.

 

The holder of this Note is authorized to endorse on
the schedules annexed hereto and made a part hereof or on a continuation
thereof which shall be attached hereto and made a part hereof the date and
amount of each Swing Line Loan made pursuant to the Credit Agreement and the
date and amount of each payment or prepayment of principal thereof.  Each such endorsement shall, in the absence
of manifest error, constitute prima  facie evidence of the
accuracy of the information endorsed.  
The failure to make any such endorsement or any error in any such
endorsement shall not affect the obligations of the Borrower in respect of any
Swing Line Loan.

 

This Note (a) is the Swing Line Note referred to in
the Credit Agreement dated as of February 1, 2000 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among the
Borrower, the Swing Line Lender, the other banks and financial institutions or
entities from time to time parties thereto, First Union National Bank, as
Administrative Agent, Bear, Stearns & Co., Inc., as Lead Arranger, GMAC
Commercial Credit LLC, as Documentation Agent, and Bear Stearns Corporate
Lending Inc., as Syndication Agent, (b) is subject to the provisions of the
Credit Agreement and (c) is subject to optional and mandatory prepayment in
whole or in part as provided in the Credit Agreement.  This Note is secured and guaranteed as provided in the Loan
Documents.  Reference is hereby made to
the Loan Documents for a description of the properties and assets in which a
security interest has been granted, the nature and extent of the security and
the guarantees, the terms and conditions upon which the security interests and
each guarantee were granted and the rights of the holder of this Note in
respect thereof.

 

Upon the occurrence of any one or more of the Events
of Default, all principal and all accrued interest then remaining unpaid on
this Note shall become, or may be declared to be, immediately due and payable,
all as provided in the Credit Agreement.

 

All parties now and
hereafter liable with respect to this Note, whether maker, principal, surety,
guarantor, endorser or otherwise, hereby waive to the extent permitted by
applicable law presentment, demand, protest and all other notices of any kind.

 

 

Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

 

NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE CREDIT AGREEMENT, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE
REGISTRATION AND OTHER PROVISIONS OF SECTION 10.6 OF THE CREDIT AGREEMENT.

 

THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK.

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2

 

Schedule A

to Swing Line Note

 

 

LOANS AND REPAYMENTS OF
SWING LINE LOANS

 

	
  Date

  	
   

  	
  Amount of

  Swing Line Loans

  	
   

  	
  Amount of
  Principal of

  Swing Line Loans Repaid

  	
   

  	
  Unpaid
  Principal Balance

  of Swing Line Loans

  	
   

  	
  Notation
  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT H

 

[FORM OF STANDBY LETTER
OF CREDIT]

 

 

On
file with the Administrative Agent

 

 

 

EXECUTION COPY

 

 

GUARANTEE AND COLLATERAL
AGREEMENT

 

 

made by

 

 

INAMED CORPORATION

 

 

and certain of its
Subsidiaries

 

 

in favor of

 

 

FIRST UNION NATIONAL
BANK,

as Administrative Agent

 

 

Dated as of February 1,
2000

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.  DEFINED TERMS

  
	
   

  	
  1.1

  	
  Definitions

  
	
   

  	
  1.2

  	
  Other Definitional
  Provisions

  
	
   

  	
   

  	
   

  
	
  SECTION 2.  GUARANTEE

  
	
   

  	
  2.1

  	
  Guarantee

  
	
   

  	
  2.2

  	
  Right
  of Contribution

  
	
   

  	
  2.3

  	
  No Subrogation

  
	
   

  	
  2.4

  	
  Amendments, etc. with
  respect to the Borrower Obligations

  
	
   

  	
  2.5

  	
  Guarantee
  Absolute and Unconditional

  
	
   

  	
  2.6

  	
  Reinstatement

  
	
   

  	
  2.7

  	
  Payments

  
	
   

  	
   

  	
   

  
	
  SECTION 3.  GRANT OF SECURITY INTEREST

  
	
   

  
	
  SECTION
  4.  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
  4.1

  	
  Representations in
  Credit Agreement

  
	
   

  	
  4.2

  	
  Title;
  No Other Liens

  
	
   

  	
  4.3

  	
  Perfected First
  Priority Liens

  
	
   

  	
  4.4

  	
  Chief
  Executive Office

  
	
   

  	
  4.5

  	
  Inventory
  and Equipment

  
	
   

  	
  4.6

  	
  Farm Products

  
	
   

  	
  4.7

  	
  Investment
  Property

  
	
   

  	
  4.8

  	
  Receivables

  
	
   

  	
  4.9

  	
  Intellectual
  Property

  
	
   

  	
   

  
	
  SECTION 5.  COVENANTS

  
	
   

  	
  5.1

  	
  Covenants in Credit
  Agreement

  
	
   

  	
  5.2

  	
  Delivery
  of Instruments, Certificated Securities and Chattel Paper

  
	
   

  	
  5.3

  	
  Maintenance of Insurance

  
	
   

  	
  5.4

  	
  Payment of Obligations

  
	
   

  	
  5.5

  	
  Maintenance
  of Perfected Security Interest; Further Documentation

  
	
   

  	
  5.6

  	
  Changes in Locations, Name, etc.

  
	
   

  	
  5.7

  	
  Notices

  
	
   

  	
  5.8

  	
  Investment
  Property

  
	
   

  	
  5.9

  	
  Receivables

  
	
   

  	
  5.10

  	
  Intellectual Property

  
	
   

  	
   

  
	
  SECTION 6.  REMEDIAL PROVISIONS

  
	
   

  	
  6.1

  	
  Certain
  Matters Relating to Receivables

  
	
   

  	
  6.2

  	
  Communications
  with Obligors; Grantors Remain Liable

  
	
   

  	
  6.3

  	
  Pledged Stock

  
	
   

  	
  6.4

  	
  Proceeds
  to be Turned Over To Administrative Agent

  
	
   

  	
  6.5

  	
  Application of Proceeds

  
	
   

  	
  6.6

  	
  Code and Other Remedies

  
	
   

  	
  6.7

  	
  Registration Rights

  

 

i

 

	
   

  	
  6.8

  	
   Waiver; Deficiency

  
	
   

  	
   

  
	
  SECTION 7.  THE ADMINISTRATIVE AGENT

  
	
   

  	
  7.1

  	
  Administrative
  Agent’s Appointment as Attorney-in-Fact, etc

  
	
   

  	
  7.2

  	
  Duty of Administrative
  Agent

  
	
   

  	
  7.3

  	
  Execution of
  Financing Statements

  
	
   

  	
  7.4

  	
  Authority of Administrative
  Agent

  
	
   

  	
   

  	
   

  
	
  SECTION 8.  MISCELLANEOUS

  
	
   

  	
  8.1

  	
  Amendments in Writing

  
	
   

  	
  8.2

  	
  Notices

  
	
   

  	
  8.3

  	
  No
  Waiver by Course of Conduct; Cumulative Remedies

  
	
   

  	
  8.4

  	
  Enforcement
  Expenses; Indemnification

  
	
   

  	
  8.5

  	
  Successors and Assigns

  
	
   

  	
  8.6

  	
  Set-Off

  
	
   

  	
  8.7

  	
  Counterparts

  
	
   

  	
  8.8

  	
  Severability

  
	
   

  	
  8.9

  	
  Section Headings

  
	
   

  	
  8.10

  	
  Integration

  
	
   

  	
  8.11

  	
  GOVERNING LAW

  
	
   

  	
  8.12

  	
  Submission To Jurisdiction;
  Waivers

  
	
   

  	
  8.13

  	
  Acknowledgments

  
	
   

  	
  8.14

  	
  Additional Grantors

  
	
   

  	
  8.15

  	
  Releases

  
	
   

  	
  8.16

  	
  WAIVER OF JURY TRIAL

  

 

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  
	
  Schedule
  1

  	
  Guarantor
  Notice Addresses

  
	
  Schedule
  2

  	
  Investment
  Property

  
	
  Schedule
  3

  	
  Perfection
  Matters

  
	
  Schedule
  4

  	
  Jurisdictions
  of Organization and Chief Executive Offices

  
	
  Schedule
  5

  	
  Inventory
  and Equipment Locations

  
	
  Schedule
  6

  	
  Intellectual
  Property

  

 

ii

 

GUARANTEE AND COLLATERAL AGREEMENT, dated as of
February 1, 2000, made by each of the signatories hereto (together with any
other entity that may become a party hereto as provided herein, the “Grantors”),
in favor of First Union National Bank, as Administrative Agent (in such
capacity, the “Administrative Agent”) for the banks and other financial
institutions (the “Lenders”) from time to time parties to the Credit
Agreement, dated as of February 1, 2000 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Inamed
Corporation (the “Borrower”), the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co. Inc., as sole lead arranger and sole book manager (the
“Arranger”) and the Administrative Agent.

 

W I T N
E S S E T H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders
have severally agreed to make extensions of credit to the Borrower upon the
terms and subject to the conditions set forth therein;

 

WHEREAS, the Borrower is a member of an affiliated
group of companies that includes each other Grantor;

 

WHEREAS, the proceeds of the extensions of credit
under the Credit Agreement will be used in part to enable the Borrower to make
valuable transfers to one or more of the other Grantors in connection with the
operation of their respective businesses;

 

WHEREAS, the Borrower and the other Grantors are
engaged in related businesses, and each Grantor will derive substantial direct
and indirect benefit from the making of the extensions of credit under the
Credit Agreement; and

 

WHEREAS, it is a condition precedent to the obligation
of the Lenders to make their respective extensions of credit to the Borrower
under the Credit Agreement that the Grantors shall have executed and delivered
this Agreement to the Administrative Agent for the ratable benefit of the
Lenders;

 

NOW, THEREFORE, in consideration of the premises and
to induce the Administrative Agent, the Syndication Agent and the Lenders to
enter into the Credit Agreement and to induce the Lenders to make their
respective extensions of credit to the Borrower thereunder, each Grantor hereby
agrees with the Administrative Agent, for the ratable benefit of the Lenders,
as follows:

 

SECTION 1. DEFINED TERMS

 

1.1 Definitions.  (a) Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement, and the following terms are used herein as
defined in the New York UCC: Accounts, Certificated Security, Chattel Paper,
Documents, Equipment, Farm Products, Goods, Instruments and Inventory.

 

(b) The following terms shall have the following
meanings:

 

 

“Agreement”:  this Guarantee and Collateral Agreement, as
the same may be amended, supplemented or otherwise modified from time to time.

 

“Borrower
Obligations”:  the collective
reference to the unpaid principal of and interest on the Loans and
Reimbursement Obligations and all other obligations and liabilities of the
Borrower (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the
Loans and Reimbursement Obligations and interest accruing at the then
applicable rate provided in the Credit Agreement after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) to any
Agent or any Lender (or, in the case of any Lender Hedge Agreement, any
Affiliate of any Lender), whether direct or indirect, absolute or contingent,
due or to become due, or now existing or hereafter incurred, which may arise
under, out of, or in connection with, the Credit Agreement, this Agreement, the
other Loan Documents, any Letter of Credit, any Lender Hedge Agreement or any
other document made, delivered or given in connection with any of the
foregoing, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to any
Agent or to any Lender that are required to be paid by the Borrower pursuant to
the terms of any of the foregoing agreements).

 

“Collateral”:  as defined in Section 3.

 

“Collateral
Account”:  any collateral account
established by the Administrative Agent as provided in Section 6.1 or 6.4.

 

“Copyrights”:  (i) all copyrights arising under the laws of
the United States, any other country or any political subdivision thereof,
whether registered or unregistered and whether published or unpublished
(including, without limitation, those listed in Schedule 6), all
registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to
obtain all renewals thereof.

 

“Copyright
Licenses”:  any written agreement
naming any Grantor as licensor or licensee (including, without limitation,
those listed in Schedule 6), granting any right under any Copyright,
including, without limitation, the grant of rights to manufacture, distribute,
exploit and sell materials derived from any Copyright.

 

“Deposit
Account”:  as defined in the Uniform
Commercial Code of any applicable jurisdiction and, in any event, including,
without limitation, any demand, time, savings, passbook or like account
maintained with a depositary institution.

 

“Foreign Subsidiary”:  any Subsidiary organized under the laws of
any jurisdiction outside the United States of America.

 

“Foreign Subsidiary
Voting Stock”:  the voting Capital
Stock of any Foreign Subsidiary.

 

“General
Intangibles”:  all “general
intangibles” as such term is defined in Section 9-106 of the New York UCC and,
in any event, including, without limitation, with respect to any Grantor, all
contracts, agreements, instruments and indentures in any form, and portions
thereof, to which such Grantor is a party or under which such Grantor has any
right, title or interest or to

 

2

 

which such Grantor or any property of such Grantor is subject,
as the same may from time to time be amended, supplemented or otherwise
modified, including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to damages arising thereunder and
(iii) all rights of such Grantor to perform and to exercise all remedies
thereunder, in each case to the extent the grant by such Grantor of a security
interest pursuant to this Agreement in its right, title and interest in such
contract, agreement, instrument or indenture is not prohibited by such
contract, agreement, instrument or indenture without the consent of any other
party thereto, would not give any other party to such contract, agreement,
instrument or indenture the right to terminate its obligations thereunder, or
is permitted with consent if all necessary consents to such grant of a security
interest have been obtained from the other parties thereto (it being understood
that the foregoing shall not be deemed to obligate such Grantor to obtain such
consents); provided, that the foregoing limitation shall not affect,
limit, restrict or impair the grant by such Grantor of a security interest
pursuant to this Agreement in any Receivable or any money or other amounts due
or to become due under any such contract, agreement, instrument or indenture.

 

“Guarantor
Obligations”:  with respect to any
Guarantor, all obligations and liabilities of such Guarantor which may arise
under or in connection with this Agreement (including, without limitation,
Section 2) or any other Loan Document to which such Guarantor is a party, in
each case whether on account of guarantee obligations, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise (including,
without limitation, all fees and disbursements of counsel to any Agent or to
any Lender that are required to be paid by such Guarantor pursuant to the terms
of this Agreement or any other Loan Document).

 

“Guarantors”:  the collective reference to each Grantor
other than the Borrower.

 

“Intellectual
Property”:  the collective reference
to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or
otherwise, including, without limitation, the Copyrights, the Copyright
Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark
Licenses, and all rights to sue at law or in equity for any infringement or
other impairment thereof, including the right to receive all proceeds and
damages therefrom.

 

“Intercompany
Note”:  any promissory note
evidencing loans made by any Grantor to the Borrower or any of its
Subsidiaries.

 

“Investment
Property”:  the collective reference
to (i) all “investment property” as such term is defined in Section 9-115
of the New York UCC (other than any Foreign Subsidiary Voting Stock excluded
from the definition of “Pledged Stock”) and (ii) whether or not constituting
“investment property” as so defined, all Pledged Notes and all Pledged Stock.

 

“Issuers”:  the collective reference to each issuer of
any Investment Property.

 

“Lender Hedge
Agreements”:  all interest rate
swaps, caps or collar agreements or similar arrangements entered into by the
Borrower with any Lender (or any Affiliate of any Lender) providing for
protection against fluctuations in interest rates or currency exchange rates or
the exchange of nominal interest obligations, either generally or under
specific contingencies.

 

“New York UCC”:  the Uniform Commercial Code as from time to
time in effect in the State of New York.

 

3

 

“Obligations”:  (i) in the case of the Borrower, the
Borrower Obligations, and (ii) in the case of each Guarantor, its Guarantor
Obligations.

 

“Patents”:  (i) all letters patent of the United States,
any other country or any political subdivision thereof, all reissues and
extensions thereof and all goodwill associated therewith, including, without
limitation, any of the foregoing referred to in Schedule 6, (ii) all
applications for letters patent of the United States or any other country and
all divisions, continuations and continuations-in-part thereof, including,
without limitation, any of the foregoing referred to in Schedule 6, and
(iii) all rights to obtain any reissues or extensions of the foregoing.

 

“Patent License”:  all agreements, whether written or oral,
providing for the grant by or to any Grantor of any right to manufacture, use
or sell any invention covered in whole or in part by a Patent, including,
without limitation, any of the foregoing referred to in Schedule 6.

 

“Pledged Notes”:  all promissory notes listed on Schedule 2,
all Intercompany Notes at any time issued to any Grantor and all other
promissory notes issued to or held by any Grantor (other than promissory notes
issued in connection with extensions of trade credit by any Grantor in the
ordinary course of business).

 

“Pledged Stock”:  the shares of Capital Stock listed on Schedule
2, together with any other shares, stock certificates, options or rights of
any nature whatsoever in respect of the Capital Stock of any Person that may be
issued or granted to, or held by, any Grantor while this Agreement is in
effect; provided that in no event shall more than 65% of the total
outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be
required to be pledged hereunder.

 

“Proceeds”:  all “proceeds” as such term is defined in
Section 9-306(1) of the New York UCC and, in any event, shall include, without
limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

 

“Receivable”:  any right to payment for goods sold or
leased or for services rendered, whether or not such right is evidenced by an
Instrument or Chattel Paper and whether or not it has been earned by
performance (including, without limitation, any Account).

 

“Securities Act”:  the Securities Act of 1933, as amended.

 

“Trademarks”:  (i) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles,
service marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, including, without limitation, any of the foregoing,
referred to in Schedule 6, and (ii) the right to obtain all renewals
thereof.

 

“Trademark
License”:  any agreement, whether
written or oral, providing for the grant by or to any Grantor of any right to
use any Trademark, including, without limitation, any of the foregoing referred
to in Schedule 6.

 

4

 

1.2 Other Definitional Provisions.  (a) The words “hereof,” “herein”, “hereto”
and “hereunder” and words of similar import when used ‘in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

 

(b) The meanings given to
terms defined herein shall be equally applicable to both the singular and
plural forms of such terms.

 

(c) Where the context
requires, terms relating to the Collateral or any part thereof, when used in
relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant
part thereof.

 

 

SECTION 2. GUARANTEE

 

2.1 Guarantee. 
(a) Each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Administrative Agent, for
the ratable benefit of the Lenders and their respective successors, indorsees,
transferees and assigns, the prompt and complete payment and performance by the
Borrower when due (whether at the stated maturity, by acceleration or
otherwise) of the Borrower Obligations.

 

(b) Anything herein or in
any other Loan Document to the contrary notwithstanding, the maximum liability
of each Guarantor hereunder and under the other Loan Documents shall in no
event exceed the amount which can be guaranteed by such Guarantor under applicable
federal and state laws relating to the insolvency of debtors (after giving
effect to the right of contribution established in Section 2.2).

 

(c) Each Guarantor agrees
that the Borrower Obligations may at any time and from time to time exceed the
amount of the liability of such Guarantor hereunder without impairing the
guarantee contained in this Section 2 or affecting the rights and remedies of
the Administrative Agent or any Lender hereunder.

 

(d) The guarantee
contained in this Section 2 shall remain in full force and effect until all the
Borrower Obligations and the obligations of each Guarantor under the guarantee
contained in this Section 2 shall have been satisfied by payment in full, no
Letter of Credit shall be outstanding and the Commitments shall be terminated,
notwithstanding that from time to time during the term of the Credit Agreement
the Borrower may be free from any Borrower Obligations.

 

(e) No payment made by
the Borrower, any of the Guarantors, any other guarantor or any other Person or
received or collected by the Administrative Agent or any Lender from the
Borrower, any of the Guarantors, any other guarantor or any other Person by
virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the Borrower Obligations shall be deemed to modify, reduce, release or
otherwise affect the liability of any Guarantor hereunder which shall,
notwithstanding any such payment (other than any payment made by such Guarantor
in respect of the Borrower Obligations or any payment received or collected
from such Guarantor in respect of the Borrower Obligations), remain liable for
the Borrower Obligations up to the maximum liability of such Guarantor
hereunder until the Borrower Obligations are paid in full, no Letter of Credit
shall be outstanding and the Commitments are terminated.

 

2.2 Right of Contribution.  Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of
any payment made hereunder, such

 

5

 

Guarantor shall be entitled to seek and receive contribution from and
against any other Guarantor hereunder which has not paid its proportionate
share of such payment.  Each Guarantor’s
right of contribution shall be subject to the terms and conditions of Section
2.3.  The provisions of this Section 2.2
shall in no respect limit the obligations and liabilities of any  Guarantor to the Administrative Agent and the
Lenders, and each Guarantor shall remain liable to the Administrative Agent and
the Lenders for the full amount guaranteed by such Guarantor hereunder.

 

2.3 No Subrogation.  Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Administrative Agent or any Lender, no Guarantor shall be entitled to be
subrogated to any of the rights of the Administrative Agent or any Lender
against the Borrower or any other Guarantor or any collateral security or
guarantee or right of offset held by the Administrative Agent or any Lender for
the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any
other Guarantor in respect of payments made by such Guarantor hereunder, until
all amounts owing to the Administrative Agent and the Lenders by the Borrower
on account of the Borrower Obligations are paid in full, no Letter of Credit
shall be outstanding and the Commitments are terminated.  If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower
Obligations shall not have been paid in full, such amount shall be held by such
Guarantor in trust for the Administrative Agent and the Lenders, segregated
from other funds of such Guarantor, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Administrative Agent in the exact form
received by such Guarantor (duly indorsed by such Guarantor to the
Administrative Agent, if required), to be applied against the Borrower
Obligations, whether matured or unmatured, in such order as the Administrative
Agent may determine.

 

2.4 Amendments,
etc. with respect to the Borrower Obligations.  Each Guarantor shall remain obligated hereunder notwithstanding
that, without any reservation of rights against any Guarantor and without
notice to or further assent by any Guarantor, any demand for payment of any of
the Borrower Obligations made by the Administrative Agent or any Lender may be
rescinded by the Administrative Agent or such Lender and any of the Borrower
Obligations continued, and the Borrower Obligations, or the liability of any
other Person upon or for any part thereof, or any collateral security or guarantee
therefor or right of offset with respect thereto, may, from time to time, in
whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Administrative Agent or any
Lender, and the Credit Agreement and the other Loan Documents and any other
documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the
Administrative Agent (or the Required Lenders or all Lenders, as the case may
be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or
any Lender for the payment of the Borrower Obligations may be sold, exchanged,
waived, surrendered or released. 
Neither the Administrative Agent nor any Lender shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by
it as security for the Borrower Obligations or for the guarantee contained in
this Section 2 or any property subject thereto.

 

2.5 Guarantee Absolute and
Unconditional.  Each Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Borrower Obligations and notice of or proof of reliance by the
Administrative Agent or any Lender upon the guarantee contained in this Section
2 or acceptance of the guarantee contained in this Section 2; the Borrower
Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee contained in this Section 2; and all dealings
between the Borrower and any of the Guarantors, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the

 

6

 

guarantee contained in this Section 2. 
Each Guarantor waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Borrower or any of
the Guarantors with respect to the Borrower Obligations.  Each Guarantor understands and agrees that
the guarantee contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (a) the
validity or enforceability of the Credit Agreement or any other Loan Document,
any of the Borrower Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by the Administrative Agent or any Lender, (b) any defense, set-off
or counterclaim (other than a defense of payment or performance) which may at
any time be available to or be asserted by the Borrower or any other Person
against the Administrative Agent or any Lender, or (c) any other circumstance
whatsoever (with or without notice to or knowledge of the Borrower or such
Guarantor) which constitutes, or might be construed to constitute, an equitable
or legal discharge of the Borrower for the Borrower Obligations, or of such
Guarantor under the guarantee contained in this Section 2, in bankruptcy or in
any other instance.  When making any
demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, the Administrative Agent or any Lender may, but shall be
under no obligation to, make a similar demand on or otherwise pursue such
rights and remedies as it may have against the Borrower, any other Guarantor or
any other Person or against any collateral security or guarantee for the
Borrower Obligations or any right of offset with respect thereto, and any
failure by the Administrative Agent or any Lender to make any such demand, to
pursue such other rights or remedies or to collect any payments from the
Borrower, any other Guarantor or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or
any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of offset, shall not relieve any
Guarantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Administrative Agent or any Lender against any
Guarantor.  For the purposes hereof
“demand” shall include the commencement and continuance of any legal
proceedings.

 

2.6 Reinstatement.  The guarantee contained in this Section 2 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any of the Borrower Obligations is rescinded or must otherwise
be restored or returned by the Administrative Agent or any Lender upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrower or any Guarantor or any substantial part of its property, or otherwise,
all as though such payments had not been made.

 

2.7 Payments.  Each Guarantor hereby guarantees that
payments hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the office of the Administrative Agent specified in
the Credit Agreement.

 

 

SECTION 3. GRANT OF
SECURITY INTEREST

 

Each Grantor hereby
assigns and transfers to the Administrative Agent, and hereby grants to the
Administrative Agent, for the ratable benefit of the Lenders, a security
interest in, all of the following property now owned or at any time hereafter
acquired by such Grantor or in which such Grantor now has or at any time in the
future may acquire any right, title or interest (collectively, the “Collateral”),
as collateral security for the prompt and complete payment and performance when
due (whether at the stated maturity, by acceleration or otherwise) of such
Grantor’s Obligations,:

 

(a) all Accounts;

 

7

 

(b) all Chattel Paper;

 

(c) all Deposit Accounts;

 

(d) all Documents;

 

(e) all Equipment;

 

(f) all General
Intangibles;

 

(g) all Instruments;

 

(h) all Intellectual
Property;

 

(i) all Inventory;

 

(j) all Investment
Property;

 

(k) all Goods and other property not otherwise
described above;

 

(l) all books and
records pertaining to the Collateral; and

 

(m) to the extent not
otherwise included, all Proceeds and products of any and all of the foregoing
and all collateral security and guarantees given by any Person with respect to
any of the foregoing;

 

provided that any contracts or other
agreements which require the consent of a party other than the Borrower or
Subsidiary thereof in order to pledge its rights thereunder shall be excluded
from the definition of “Collateral”.

 

 

SECTION 4.
REPRESENTATIONS AND WARRANTIES

 

To induce the
Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the
Borrower thereunder, each Grantor hereby represents and warrants to the Administrative
Agent and each Lender that:

 

4 1 Representations in Credit Agreement.  In the case of each Guarantor, the
representations and warranties set forth in Sections 4.3, 4.4, 4.5, 4.6, 4.7,
4.8, 4.9, 4.10, 4.12, 4.14, 4.17, and 4.20 of the Credit Agreement as they
relate to such Guarantor or to the Loan Documents to which such Guarantor is a
party, each of which is hereby incorporated herein by reference, are true and
correct, and the Administrative Agent and each Lender shall be entitled to rely
on each of them as if they were fully set forth herein; provided that
each reference in each such representation and warranty to the Borrower’s
knowledge shall, for the purposes of this Section 4.1, be deemed to be a
reference to such Guarantor’s knowledge.

 

4.2 Title; No Other Liens.  Except for the security interest granted to
the Administrative Agent for the ratable benefit of the Lenders pursuant to
this Agreement and the other Liens permitted to exist on the Collateral by the
Credit Agreement, such Grantor owns each item of the Collateral free and clear
of any and all Liens or claims of others. 
No financing statement or other public notice with respect

 

8

 

to all or any part of the Collateral is on file or of record in any
public office, except such as have been filed in favor of the Administrative
Agent, for the ratable benefit of the Lenders, pursuant to this Agreement or as
are permitted by the Credit Agreement.

 

4.3 Perfected First Priority Liens.  The security interests granted pursuant to
this Agreement (a) upon completion of the filings and other actions specified
on Schedule 3 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Administrative Agent
in completed and duly executed form) will constitute valid perfected security
interests in all of the Collateral in favor of the Administrative Agent, for
the ratable benefit of the Lenders, as collateral security for such Grantor’s
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase any Collateral
from such Grantor and (b) are prior to all other Liens on the Collateral in
existence on the date hereof except for Liens permitted by the Credit Agreement
which have priority over the Liens on the Collateral.

 

4.4 Chief Executive Office.  On the date hereof, such Grantor’s
jurisdiction of organization and the location of such Grantor’s chief executive
office or sole place of business are specified on Schedule 4.

 

4.5 Inventory and Equipment.  On the date hereof, the Inventory and the
Equipment (other than mobile goods) are kept at the locations listed on Schedule
5.

 

4.6 Farm Products. 
None of the Collateral constitutes, or is the Proceeds of, Farm
Products.

 

4.7  Investment Property.  (a) The shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each issuer owned by such Grantor or, in the
case of Foreign Subsidiary Voting Stock, if less, 65% of the outstanding
Foreign Subsidiary Voting Stock of each relevant Issuer.

 

(b) All the shares of the
Pledged Stock have been duly and validly issued and are fully paid and
nonassessable.

 

(c) Each of the Pledged
Notes constitutes the legal, valid and binding obligation of the obligor with
respect thereto, enforceable in accordance with its terms, subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.

 

(d) Such Grantor is the
record and beneficial owner of, and has good and marketable title to, the
Investment Property pledged by it hereunder, free of any and all Liens or
options in favor of, or claims of, any other Person, except the security
interest created by this Agreement or as permitted by the Credit Agreement.

 

4.8 Receivables. 
(a) No amount payable to such Grantor in excess of $1,000 under or in
connection with any Receivable is evidenced by any Instrument which has not
been delivered to the Administrative Agent.

 

(b) None of the obligors
on any Receivables is a Governmental Authority.

 

9

 

(c) The amounts
represented by such Grantor to the Lenders from time to time as owing to such
Grantor in respect of the Receivables will at such times be accurate.

 

4.9 Intellectual Property.  (a) Schedule 6 lists all Intellectual
Property owned by such Grantor in its own name on the date hereof.

 

(b) On the date hereof,
all material Intellectual Property of such Grantor described on Schedule 6
is valid, subsisting, unexpired and enforceable, has not been abandoned and
does not infringe the intellectual property rights of any other Person.

 

(c) Except as set forth
in Schedule 6, on the date hereof, none of the Intellectual Property is
the subject of any licensing or franchise agreement pursuant to which such
Grantor is the licensor or franchisor.

 

(d) No holding, decision
or judgment has been rendered by any Governmental Authority which would limit,
cancel or question the validity of, or such Grantor’s rights in, any
Intellectual Property in any respect that could reasonably be expected to have
a Material Adverse Effect.

 

(e) No action or
proceeding is pending, or, to the knowledge of such Grantor, threatened, on the
date hereof (i) seeking to limit, cancel or question the validity of any
Intellectual Property or such Grantor’s ownership interest therein, or (ii)
which, if adversely determined, would have a material adverse effect on the
value of any Intellectual Property.

 

 

SECTION 5. COVENANTS

 

Each Grantor covenants
and agrees with the Administrative Agent and the Lenders that, from and after
the date of this Agreement until the Obligations shall have been paid in full,
no Letter of Credit shall be outstanding and the Commitments shall have terminated:

 

5.1 Covenants in Credit Agreement.  In the case of each Guarantor, such
Guarantor shall take, or shall refrain from taking, as the case may be, each
action that is necessary to be taken or not taken, as the case may be, so that
no Default or Event of Default is caused by the failure to take such action or
to refrain from taking such action by such Guarantor or any of its
Subsidiaries.

 

5.2 Delivery of Instruments and
Certificated Securities.  If an
amount in excess of $50,000 shall become payable under or in connection with
any of the Collateral and shall be or become evidenced by any Instrument or
Certificated Security, such Instrument or Certificated Security shall be
immediately delivered to the Administrative Agent, duly indorsed in a manner
satisfactory to the Administrative Agent, to be held as Collateral pursuant to
this Agreement.

 

5.3 Maintenance of Insurance.  (a) Such Grantor will maintain, with
financially sound and reputable companies, insurance policies (i) insuring the
Inventory and Equipment against loss by fire, explosion, theft and such other
casualties as may be reasonably satisfactory to the Administrative Agent and
(ii) insuring such Grantor, the Administrative Agent and the Lenders against
liability for personal injury and property damage relating to such Inventory,
Equipment, such policies to be in such form and amounts and having such
coverage as may be reasonably satisfactory to the Administrative Agent and the
Lenders.

 

10

 

(b) All such insurance shall (i) provide that no
cancellation, material reduction in amount or material change in coverage
thereof shall be effective until at least 30 days after receipt by the
Administrative Agent of written notice thereof, (ii) name the Administrative
Agent as insured party or loss payee, (iii) if reasonably requested by the
Administrative Agent, include a breach of warranty clause and (iv) be
reasonably satisfactory in all other respects to the Administrative Agent.

 

(c) The Borrower shall deliver to the Administrative
Agent and the Lenders a report of a reputable insurance broker with respect to
such insurance substantially concurrently with each delivery of the Borrower’s
audited annual financial statements and such supplemental reports with respect
thereto as the Administrative Agent may from time to time reasonably request.

 

5.4 Payment of Obligations.  Such Grantor will pay and discharge or
otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all taxes, assessments and governmental charges or levies
imposed upon the Collateral or in respect of income or profits therefrom, as
well as all claims of any kind (including, without limitation, claims for
labor, materials and supplies) against or with respect to the Collateral,
except that no such charge need be paid if the amount or validity thereof is
currently being contested in good faith by appropriate proceedings, reserves in
conformity with GAAP with respect thereto have been provided on the books of
such Grantor and such proceedings could not reasonably be expected to result in
the sale, forfeiture or loss of any material portion of the Collateral or any
interest therein.

 

5.5 Maintenance of Perfected Security
Interest;  Further Documentation.  (a) Such Grantor shall maintain the security
interest created by this Agreement as a perfected security interest having at
least the priority described in Section 4.2 and shall defend such security
interest against the claims and demands of all Persons whomsoever.

 

(b) Such Grantor will
furnish to the Administrative Agent and the Lenders from time to time
statements and schedules further identifying and describing  the assets and property of such Grantor
and such other reports in connection with the Collateral as the Administrative
Agent may reasonably request, all in reasonable detail.

 

(c) At any time and from time to time, upon the
written request of the Administrative Agent, and at the sole expense of such
Grantor, such Grantor will promptly and duly execute and deliver, and have
recorded, such further instruments and documents and take such further actions
as the Administrative Agent may reasonably request for the purpose of obtaining
or preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) the filing of any financing
or continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests
created hereby and (ii) in the case of Investment Property, Deposit Accounts
and any other relevant Collateral, taking any actions necessary to enable the
Administrative Agent to obtain “control” (within the meaning of the applicable
Uniform Commercial Code) with respect thereto.

 

5.6 Changes in Locations, Name, etc.  Such Grantor will not, except upon 15 days’
prior written notice to the Administrative Agent and delivery to the
Administrative Agent of (a) all additional executed financing statements and
other documents reasonably requested by the Administrative Agent to maintain
the validity, perfection and priority of the security interests provided for
herein and (b) if applicable, a written supplement to Schedule 5 showing
any additional location at which Inventory or Equipment shall be kept:

 

11

 

(i) permit any of
the Inventory or Equipment (other than Inventory and Equipment in transit
between two locations listed on Schedule 5) to be kept at a location
other than those listed on Schedule 5;

 

(ii) change its
jurisdiction of organization or the location of its chief executive office or
sole place of business from that referred to in Section 4.4; or

 

(iii) change its
name, identity or corporate structure to such an extent that any financing
statement filed by the Administrative Agent in connection with this Agreement
would become misleading.

 

5.7 Notices. 
Such Grantor will advise the Administrative Agent and the Lenders
promptly, in reasonable detail, of:

 

(a) any Lien
(other than security interests created hereby or Liens permitted under the
Credit Agreement) on any of the Collateral which would adversely affect the
ability of the Administrative Agent to exercise any of its remedies hereunder;
and

 

(b) of the
occurrence of any other event which could reasonably be expected to have a
material adverse effect on the aggregate value of the Collateral or on the
security interests created hereby.

 

5.8 Investment
Property.  (a) If such Grantor shall
become entitled to receive or shall receive any stock certificate (including,
without limitation, any certificate representing a stock dividend or a
distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization),
option or rights in respect of the Capital Stock of any Issuer, whether in
addition to, in substitution of, as a conversion of, or in exchange for, any
shares of the Pledged Stock, or otherwise in respect thereof, such Grantor
shall accept the same as the agent of the Administrative Agent and the Lenders,
hold the same in trust for the Administrative Agent and the Lenders and deliver
the same forthwith to the Administrative Agent in the exact form received, duly
indorsed by such Grantor to the Administrative Agent, if required, together
with an undated stock power covering such certificate duly executed in blank by
such Grantor and with, if the Administrative Agent so requests, signature
guaranteed, to be held by the Administrative Agent, subject to the terms
hereof, as additional collateral security for the Obligations subject to the
65% limitation for Foreign Subsidiary Voting Stock.  Any sums paid upon or in respect of the Investment Property upon
the liquidation or dissolution of any Issuer shall be paid over to the
Administrative Agent to be held by it hereunder as additional collateral
security for the Obligations, and in case any distribution of capital shall be
made on or in respect of the Investment Property or any property shall be
distributed upon or with respect to the Investment Property pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant
to the reorganization thereof, the property so distributed shall, unless
otherwise subject to a perfected security interest in favor of the
Administrative Agent, be delivered to the Administrative Agent to be held by it
hereunder as additional collateral security for the Obligations.  If any sums of money or property so paid or
distributed in respect of the Investment Property shall be received by such
Grantor, such Grantor shall, until such money or property is paid or delivered
to the Administrative Agent, hold such money or property in trust for the
Lenders, segregated from other funds of such Grantor, as additional collateral
security for the Obligations.

 

(b) Without the prior
written consent of the Administrative Agent, such Grantor will not (i) vote to
enable, or take any other action to permit, any Issuer to issue any stock or
other equity securities of any nature or to issue any other securities
convertible into or granting the right to purchase

 

12

 

or exchange for any stock or other equity securities of any nature of
any Issuer unless such issuance is made part of the Collateral (subject to the
65% limitation for Foreign Subsidiary Voting Stock), (ii) sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect
to, the Investment Property or Proceeds thereof (except pursuant to a transaction
expressly permitted by the Credit Agreement), (iii) create, incur or permit to
exist any Lien or option in favor of, or any claim of any Person with respect
to, any of the Investment Property or Proceeds thereof, or any interest
therein, except for the security interests created by this Agreement or as
permitted by the Credit Agreement or (iv) enter into any agreement or
undertaking restricting the right or ability of such Grantor or the
Administrative Agent to sell, assign or transfer any of the Investment Property
or Proceeds thereof.

 

(c) In the case of each
Grantor which is an Issuer, such Issuer agrees that (i) it will be bound by the
terms of this Agreement relating to the Investment Property issued by it and
will comply with such terms insofar as such terms are applicable to it, (ii) it
will notify the Administrative Agent promptly in writing of the occurrence of
any of the events described in Section 5.8(a) with respect to the Investment
Property issued by it and (iii) the terms of Sections 6.3(c) and 6.7 shall
apply to it, mutatis mutandis, with respect to all actions that may be
required of it pursuant to Section 6.3(c) or 6.7 with respect to the Investment
Property issued by it.

 

5.9 Receivables. 
(a) Other than in the ordinary course of business consistent with
its past practice, such Grantor will not (i) grant any extension of the time of
payment of any Receivable, (ii) compromise or settle any Receivable for less
than the full amount thereof, (iii) release, wholly or partially, any Person liable
for the payment of any Receivable, (iv) allow any credit or discount whatsoever
on any Receivable or (v) amend, supplement or modify any Receivable in any
manner that could adversely affect the value thereof.

 

(b) Such Grantor will
deliver to the Administrative Agent a copy of each material demand, notice or
document received by it that questions or calls into doubt the validity or
enforceability of more than 5% of the aggregate amount of the then outstanding
Receivables.

 

5.10 Intellectual Property.  (a) Such Grantor (either itself or
through licensees) will (i) continue to use each material Trademark on each and
every trademark class of goods applicable to its current line as reflected in
its current catalogs, brochures and price lists in order to maintain such
Trademark in full force free from any claim of abandonment for non-use unless
in the good faith judgment of such Grantor the use of such Trademark is no
longer commercially reasonable, (ii) maintain as in the past the quality of
products and services offered under such Trademark, (iii) use such Trademark
with the appropriate notice of registration and all other notices and legends
required by applicable Requirements of Law, (iv) not adopt or use any mark
which is confusingly similar or a colorable imitation of such Trademark unless
the Administrative Agent, for the ratable benefit of the Lenders, shall obtain
a perfected security interest in such mark pursuant to this Agreement, and (v)
not (and not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby such Trademark may become invalidated or
impaired in any way.

 

(b) Such Grantor (either
itself or through licensees) will not do any act, or omit to do any act,
whereby any material Patent may become forfeited, abandoned or dedicated to the
public unless in the good faith judgment of such Grantor the use of such Patent
is no longer commercially reasonable.

 

(c) Such Grantor (either
itself or through licensees) (i) will employ each material Copyright and (ii)
will not (and will not permit any licensee or sublicensee thereof to) do any
act or knowingly omit to do any act whereby any material portion of the
Copyrights may become invalidated or

 

13

 

otherwise impaired.  Such
Grantor will not (either itself or through licensees) do any act whereby any
material portion of the Copyrights may fall into the public domain.

 

(d) Such Grantor (either
itself or through licensees) will not do any act that knowingly uses any
material Intellectual Property to infringe the intellectual property rights of
any other Person.

 

(e) Such Grantor will
notify the Administrative Agent and the Lenders immediately if it knows, or has
reason to know, that any application or registration relating to any material
Intellectual Property may become forfeited, abandoned or dedicated to the
public, or of any adverse determination or development (including, without
limitation, the institution of, or any such determination or development in,
any proceeding in the United States Patent and Trademark Office, the United
States Copyright Office or any court or tribunal in any country) regarding such
Grantor’s ownership of, or the validity of, any material Intellectual Property
or such Grantor’s right to register the same or to own and maintain the same.

 

(f) Whenever such
Grantor, either by itself or through any agent, employee, licensee or designee,
shall file an application for the registration of any Intellectual Property
with the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency in any other country or any political
subdivision thereof, such Grantor shall report such filing to the
Administrative Agent within five Business Days after the last day of the fiscal
quarter in which such filing occurs. 
Upon request of the Administrative Agent, such Grantor shall execute and
deliver, and have recorded, any and all agreements, instruments, documents, and
papers as the Administrative Agent may request to evidence the Administrative
Agent’s and the Lenders’ security interest in any Copyright, Patent or
Trademark and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby.

 

(g) Such Grantor will
take all reasonable and necessary steps, including, without limitation, in any
proceeding before the United States Patent and Trademark Office, the United
States Copyright Office or any similar office or agency in any other country or
any political subdivision thereof, to maintain and pursue each application (and
to obtain the relevant registration) and to maintain each registration of the
material Intellectual Property, including, without limitation, filing of
applications for renewal, affidavits of use and affidavits of incontestability.

 

(h) In the event that any
material Intellectual Property is infringed, misappropriated or diluted by a
third party, such Grantor shall (i) take such actions as such Grantor shall
reasonably deem appropriate under the circumstances to protect such
Intellectual Property and (ii) if such Intellectual Property is of material
economic value, promptly notify the Administrative Agent after it learns
thereof and sue for infringement, misappropriation or dilution, to seek
injunctive relief where appropriate and to recover any and all damages for such
infringement, misappropriation or dilution.

 

 

SECTION 6. REMEDIAL PROVISIONS

 

6.1 Certain Matters Relating to
Receivables.  (a) The
Administrative Agent shall have the right to make test verifications of the Receivables
in any manner and through any medium that it reasonably considers advisable,
and each Grantor shall furnish all such assistance and information as the
Administrative Agent may require in connection with such test verifications. At
any time and from time to time, upon the Administrative Agent’s request and at
the expense of the relevant Grantor, such Grantor shall cause independent
public accountants or others satisfactory to the Administrative Agent to
furnish

 

14

 

to the Administrative
Agent reports showing reconciliations, aging and test verifications of, and
trial balances for the Receivables.

 

(b) The Administrative
Agent hereby authorizes each Grantor to collect such Grantor’s Receivables,
subject to the Administrative Agent’s direction and control, and the
Administrative Agent may curtail or terminate said authority at any time after
the occurrence and during the continuance of an Event of Default.  If required by the Administrative Agent at
any time after the occurrence and during the continuance of an Event of
Default, any payments of Receivables, when collected by any Grantor, (i) shall
be forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the
Administrative  Agent if required, in a Collateral Account maintained
under the sole dominion and control of the Administrative Agent, subject to
withdrawal by the Administrative Agent for the account of the Lenders only as
provided in Section 6.5, and (ii) until so turned over, shall be held by such
Grantor in trust for the Administrative Agent and the Lenders, segregated from
other funds of such Grantor.  Each such
deposit of Proceeds of Receivables shall be accompanied by a report identifying
in reasonable detail the nature and source of the payments included in the
deposit.

 

(c) At the AdministrativeAgent’s request, each Grantor shall deliver to the Administrative Agent all
original and other documents evidencing, and relating to, the agreements and
transactions which gave rise to the Receivables, including, without limitation,
all original orders, invoices and shipping receipts.

 

6.2 Communications with Obligors;
Grantors Remain Liable.  (a) The
Administrative Agent in its own name or in the name of others may at any time
communicate with obligors under the Receivables to verify with them to the
Administrative Agent’s satisfaction the existence, amount and terms of any
Receivables.

 

(b) Upon the request of
the Administrative Agent at any time after the occurrence and during the
continuance of an Event of Default, each Grantor shall notify obligors on the
Receivables that the Receivables have been assigned to the Administrative Agent
for the ratable benefit of the Lenders and that payments in respect thereof
shall be made directly to the Administrative Agent.

 

(c) Anything herein to
the contrary notwithstanding, each Grantor shall remain liable under each of
the Receivables to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of
any agreement giving rise thereto. 
Neither the Administrative Agent nor any Lender shall have any
obligation or liability under any Receivable (or any agreement giving rise
thereto) by reason of or arising out of this Agreement or the receipt by the
Administrative Agent or any Lender of any payment relating thereto, nor shall
the Administrative Agent or any Lender be obligated in any manner to perform
any of the obligations of any Grantor under or pursuant to any Receivable (or
any agreement giving rise thereto), to make any payment, to make any inquiry as
to the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

 

6.3 Pledged Stock. 
(a) Unless an Event of Default shall have occurred and be continuing and
the Administrative Agent shall have given notice to the relevant Grantor of the
Administrative Agent’s intent to exercise its corresponding rights pursuant to
Section 6.3(b), each Grantor shall be permitted to receive all cash dividends
paid in respect of the Pledged Stock and all payments made in respect of the
Pledged Notes, in each case paid in the normal course of business of the

 

15

 

relevant Issuer and consistent with past practice, to the extent
permitted in the Credit Agreement, and to exercise all voting and corporate
rights with respect to the Investment Property; provided, however,
that no vote shall be cast or corporate right exercised or other action taken
which, in the Administrative Agent’s reasonable judgment, would impair the
Collateral or which would be inconsistent with or result in any violation of
any provision of the Credit Agreement, this Agreement or any other Loan Document.

 

(b) If an Event of
Default shall occur and be continuing and the Administrative Agent shall give
notice of its intent to exercise such rights to the relevant Grantor or
Grantors, (i) the Administrative Agent shall have the right to receive any and
all cash dividends, payments or other Proceeds paid in respect of the
Investment Property and make application thereof to the Obligations in such
order as the Administrative Agent may determine, and (ii) any or all of the
Investment Property shall be registered in the name of the Administrative Agent
or its nominee, and the Administrative Agent or its nominee may thereafter
exercise (x) all voting, corporate and other rights pertaining to such
Investment Property at any meeting of shareholders of the relevant Issuer or
Issuers or otherwise and (y) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such
Investment Property as if it were the absolute owner thereof (including,
without limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate structure of any
Issuer, or upon the exercise by any Grantor or the Administrative Agent of any
right, privilege or option pertaining to such Investment Property, and in
connection therewith, the right to deposit and deliver any and all of the
Investment Property with any committee, depositary, transfer agent, registrar or
other designated agency upon such terms and conditions as the Administrative
Agent may determine), all without liability except to account for property
actually received by it, but the Administrative Agent shall have no duty to any
Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

 

(c) Each Grantor hereby
authorizes and instructs each Issuer of any Investment Property pledged by such
Grantor hereunder to (i) comply with any instruction received by it from the
Administrative Agent in writing that (x) states that an Event of Default has
occurred and is continuing and (y) is otherwise in accordance with the terms of
this Agreement, without any other or further instructions from such Grantor,
and each Grantor agrees that each Issuer shall be fully protected in so
complying, and (ii) following an Event of Default, pay any dividends or other
payments with respect to the Investment Property directly to the Administrative
Agent.

 

6.4 Proceeds to be Turned Over To
Administrative Agent.  In
addition to the rights of the Administrative Agent and the Lenders specified in
Section 6.1 with respect to payments of Receivables, if an Event of Default
shall occur and be continuing, all Proceeds received by any Grantor consisting
of cash, checks and other near-cash items shall be held by such Grantor in
trust for the Administrative Agent and the Lenders, segregated from other funds
of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned
over to the Administrative Agent in the exact form received by such Grantor
(duly indorsed by such Grantor to the Administrative Agent, if required).  All Proceeds received by the Administrative
Agent hereunder shall be held by the Administrative Agent in a Collateral
Account maintained under its sole dominion and control.  All Proceeds while held by the
Administrative Agent in a Collateral Account (or by such Grantor in trust for
the Administrative Agent and the Lenders) shall continue to be held as
collateral security for all the Obligations and shall not constitute payment
thereof until applied as provided in Section 6.5.

 

6.5 Application of Proceeds.  At such intervals as may be agreed upon by
the Borrower and the Administrative Agent, or, if an Event of Default shall
have occurred and be continuing, at any time at the Administrative Agent’s
election, the Administrative Agent may apply all or any part of

 

16

 

Proceeds constituting Collateral, whether or not held in any Collateral
Account and any proceeds of the guarantee set forth in Section 2 in payment of
the Obligations in the following order:

 

First, to pay incurred
and unpaid fees and expenses of the Agents under the Loan Documents;

 

Second, to the
Administrative Agent, for application by it towards payment of amounts then due
and owing and remaining unpaid in respect of the Obligations, pro rata among
the Lenders according to the amounts of the Obligations then due and owing and
remaining unpaid to the Lenders;

 

Third, to the
Administrative Agent, for application by it towards prepayment of the
Obligations, pro rata among the Lenders according to the amounts of the
Obligations then held by the Lenders; and

 

Fourth, any balance of
such proceeds remaining after the Obligations shall have been paid in full, no
Letters of Credit shall be outstanding and the Commitments shall have
terminated shall be paid over to the Borrower or to whomsoever may be lawfully
entitled to receive the same.

 

6.6 Code and Other Remedies.  If an Event of Default shall occur and be
continuing, the Administrative Agent, on behalf of the Lenders, may exercise,
in addition to all other rights and remedies granted to them in this Agreement
and in any other instrument or agreement securing, evidencing or relating to
the Obligations, all rights and remedies of a secured party under the New York
UCC or any other applicable law. 
Without limiting the generality of the foregoing, the Administrative
Agent, without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law referred
to below) to or upon any Grantor or any other Person (all and each of which
demands, defenses, advertisements and notices are hereby waived), may in such
circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
option or options to purchase, or otherwise dispose of and deliver the Collateral
or any part thereof (or contract to do any of the foregoing), in one or more
parcels at public or private sale or sales, at any exchange, broker’s board or
office of the Administrative Agent or any Lender or elsewhere upon such terms
and conditions as it may deem advisable and at such prices as it may deem best,
for cash or on credit or for future delivery without assumption of any credit
risk.  The Administrative Agent or any
Lender shall have the right upon any such public sale or sales, and, to the extent
permitted by law, upon any such private sale or sales, to purchase the whole or
any part of the Collateral so sold, free of any right or equity of redemption
in any Grantor, which right or equity is hereby waived and released.  Each Grantor further agrees, at the
Administrative Agent’s request, to assemble the Collateral and make it
available to the Administrative  Agent at places which the Administrative
Agent shall reasonably select, whether at such Grantor’s premises or
elsewhere.  The Administrative Agent
shall apply the net proceeds of any action taken by it pursuant to this Section
6.6, after deducting all reasonable costs and expenses of every kind incurred
in connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Administrative Agent and the Lenders hereunder, including without limitation,
reasonable attorneys’ fees and disbursements, to the payment in whole or in
part of the Obligations, in such order as the Administrative Agent may elect,
and only after such application and after the payment by the Administrative
Agent of any other amount required by any provision of law, including, without
limitation.  Section 9-504(1)(c) of the
New York UCC, need the Administrative Agent account for the surplus, if any, to
any Grantor.  To the extent permitted by
applicable law, each Grantor waives all claims, damages and demands it may
acquire against the Administrative Agent or any Lender arising out of the
exercise by them of any rights hereunder. 
If any notice of a proposed sale or other disposition of

 

17

 

Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other
disposition.

 

6.7 Registration Rights.  (a) If the Administrative Agent shall
determine to exercise its right to sell any or all of the Pledged Stock
pursuant to Section 6.6, and if in the opinion of the Administrative Agent it is
necessary or advisable to have the Pledged Stock, or that portion thereof to be
sold, registered under the provisions of the Securities Act, the relevant
Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the
directors and officers of such Issuer to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts as
may be, in the opinion of the Administrative Agent, necessary or advisable to
register the Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its best efforts to cause the
registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering
of the Pledged Stock, or that portion thereof to be sold, and (iii) make all
amendments thereto and/or to the related prospectus which, in the opinion of
the Administrative Agent, are necessary or advisable, all in conformity with
the requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto.  Each Grantor agrees to cause such Issuer to
comply with the provisions of the securities or “Blue Sky” laws of any and all
jurisdictions which the Administrative Agent shall designate and to make
available to its security holders, as soon as practicable, an earnings
statement (which need not be audited) which will satisfy the provisions of
Section 11 (a) of the Securities Act.

 

(b) Each Grantor
recognizes that the Administrative Agent may be unable to effect a public sale
of any or all the Pledged Stock, by reason of certain prohibitions contained in
the Securities Act and applicable state securities laws or otherwise, and may
be compelled to resort to one or more private sales thereof to a restricted
group of purchasers which will be obliged to agree, among other things, to
acquire such securities for their own account for investment and not with a
view to the distribution or resale thereof. 
Each Grantor acknowledges and agrees that any such private sale may
result in prices and other terms less favorable than if such sale were a public
sale and, notwithstanding such circumstances, agrees that any such private sale
shall be deemed to have been made in a commercially reasonable manner.  The Administrative Agent shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

 

(c) Each Grantor agrees
to use its best efforts to do or cause to be done all such other acts as may be
necessary to make such sale or sales of all or any portion of the Pledged Stock
pursuant to this Section 6.7 valid and binding and in compliance with any and
all other applicable Requirements of Law. 
Each Grantor further agrees that a breach of any of the covenants
contained in this Section 6.7 will cause irreparable injury to the
Administrative Agent and the Lenders, that the Administrative Agent and the
Lenders have no adequate remedy at law in respect of such breach and, as a
consequence, that each and every covenant contained in this Section 6.7 shall
be specifically enforceable against such Grantor, and such Grantor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred under the Credit Agreement.

 

6.8 Waiver; Deficiency.  Each Grantor waives and agrees not to assert
any rights or privileges which it may acquire under Section 9-112 of the New
York UCC.  Each Grantor shall remain
liable for any deficiency if the proceeds of any sale or other disposition of
the Collateral are insufficient to pay its Obligations and the fees and
disbursements of any attorneys employed by the Administrative Agent or any
Lender to collect such deficiency.

 

18

 

 

SECTION 7. THE ADMINISTRATTVE AGENT

 

7.1 Administrative Agent’s Appointment
as Attorney-in-Fact, etc. 
(a) Each Grantor hereby irrevocably constitutes and appoints the
Administrative Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take any and all appropriate action and to execute any and
all documents and instruments which may be necessary or desirable to accomplish
the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Administrative Agent the power and
right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

 

(i) in the name of such
Grantor or its own name, or otherwise, take possession of and indorse and
collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Receivable or with respect to any other
Collateral and file any claim or take any other action or proceeding in any
court of law or equity or otherwise deemed appropriate by the Administrative
Agent for the purpose of collecting any and all such moneys due under any
Receivable or with respect to any other Collateral whenever payable;

 

(ii) in the case of any
Intellectual Property, execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Administrative Agent may
request to evidence the Administrative Agent’s and the Lenders’ security
interest in such Intellectual Property and the goodwill and general intangibles
of such Grantor relating thereto or represented thereby;

 

(iii) pay or discharge
taxes and Liens levied or placed on or threatened against the Collateral,
effect any repairs or any insurance called for by the terms of this Agreement
and pay all or any part of the premium therefor and the costs thereof;

 

(iv) execute, in
connection with any sale provided for in Section 6.6 or 6.7, any indorsements,
assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

 

(v) (1) direct any party
liable for any payment under any of the Collateral to make payment of any and
all moneys due or to become due thereunder directly to the Administrative Agent
or as the Administrative Agent shall direct; (2) ask or demand for, collect,
and receive payment of and receipt for, any and all moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any
Collateral; (3) sign and indorse any invoices, freight or express bills, bills
of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the
Collateral; (4) commence and prosecute any suits, actions or proceedings at law
or in equity in any court of competent jurisdiction to collect the Collateral
or any portion thereof and to enforce any other right in respect of any
Collateral; (5) defend any suit, action or proceeding brought against such
Grantor with respect to any Collateral; (6) settle, compromise or adjust any
such suit, action or proceeding and, in connection therewith, give such
discharges or releases as the Administrative Agent may deem appropriate; (7)
assign any Copyright, Patent or Trademark (along with the goodwill of the
business to which any such Copyright, Patent or Trademark pertains), throughout
the world for such term or terms, on such conditions, and in such manner, as
the Administrative Agent shall in its sole discretion determine; and (8)
generally, sell, transfer, pledge and make any

 

19

 

agreement with respect to
or otherwise deal with any of the Collateral as fully and completely as though
the Administrative Agent were the absolute owner thereof for all purposes, and
do, at the Administrative Agent’s option and such Grantor’s expense at any time,
or from time to time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and the
Administrative Agent’s and the Lenders’ security interests therein and to
effect the intent of this Agreement, all as fully and effectively as such
Grantor might do.

 

Anything in this Section
7.1(a) to the contrary notwithstanding the Administrative Agent agrees that it
will not exercise any rights under the power of attorney provided for in this
Section 7.1(a) unless an Event of Default shall have occurred and be
continuing.

 

(b) If any Grantor fails
to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may
perform or comply, or otherwise cause performance or compliance, with such
agreement.

 

(c) The expenses of the
Administrative Agent incurred in connection with actions undertaken as provided
in this Section 7.1, together with interest thereon at a rate per annum equal
to the rate per annum at which interest would then be payable on past due Base
Rate Loans under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by the relevant Grantor, shall be
payable by such Grantor to the Administrative Agent on demand.

 

(d) Each Grantor hereby
ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof.  All powers,
authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

 

7.2 Duty of Administrative Agent.  The Administrative Agent’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral
in its possession, under Section 9-207 of the New York UCC or otherwise, shall
be to deal with it in the same manner as the Administrative Agent deals with
similar property for its own account. 
Neither the Administrative Agent, any Lender nor any of their respective
officers, directors, employees or agents shall be liable for failure to demand,
collect or realize upon any of the Collateral or for any delay in doing so or
shall be under any obligation to sell or otherwise dispose of any Collateral upon
the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Administrative
Agent and the Lenders hereunder are solely to protect the Administrative Agent’s
and the Lenders’ interests in the Collateral and shall not impose any duty upon
the Administrative Agent or any Lender to exercise any such powers.  The Administrative Agent and the Lenders
shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither they nor any of their officers,
directors, employees or agents shall be responsible to any Grantor for any act
or failure to act hereunder, except for their own gross negligence or willful
misconduct.

 

7.3 Execution of Financing Statements.  Pursuant to Section 9-402 of the New York
UCC and any other applicable law, each Grantor authorizes the Administrative
Agent to file or record financing statements and other filing or recording
documents or instruments with respect to the Collateral without the signature
of such Grantor in such form and in such offices as the Administrative Agent
determines appropriate to perfect the security interests of the Administrative
Agent under this Agreement.  A photographic
or other reproduction of this Agreement shall be sufficient as a financing
statement or other filing or recording document or instrument for filing or
recording in any jurisdiction.

 

20

 

7.4 Authority of Administrative Agent.  Each Grantor acknowledges that the rights
and responsibilities of the Administrative Agent under this Agreement with
respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement shall, as between the Administrative Agent and the
Lenders, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Grantors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Lenders with full and valid
authority so to act or refrain from acting, and no Grantor shall be under any
obligation, or entitlement, to make any inquiry respecting such authority.

 

 

SECTION 8. MISCELLANEOUS

 

8.1 Amendments in Writing.  None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified, nor may
any Subsidiary Guarantor or any Collateral be released, except in accordance
with subsection 10.1 of the Credit Agreement.

 

8.2 Notices.  All notices, requests and demands to or
upon the Administrative Agent or any Grantor hereunder shall be effected in the
manner provided for in subsection 10.2 of the Credit Agreement; provided
that any such notice, request or demand to or upon any Guarantor shall be
addressed to such Guarantor at its notice address set forth on Schedule 1.

 

8.3 No Waiver by Course of Conduct:  Cumulative Remedies.  Neither the Administrative Agent nor any
Lender shall by any act (except by a written instrument pursuant to Section
8.1), delay, indulgence, omission or otherwise be deemed to have waived any
right or remedy hereunder or to have acquiesced in any Default or Event of
Default.  No failure to exercise, nor
any delay in exercising, on the part of the Administrative Agent or any Lender,
any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by the Administrative Agent or any
Lender of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Administrative Agent or
such Lender would otherwise have on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

 

8.4 Enforcement Expenses:  Indemnification.  (a) Each Guarantor agrees to pay or
reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in collecting against such Guarantor under the guarantee
contained in Section 2 or otherwise enforcing or preserving any rights under
this Agreement and the other Loan Documents to which such Guarantor is a party,
including, without limitation, the fees and disbursements of counsel (including
the reasonable allocated fees and expenses of in-house counsel) to each Lender
and of counsel to the Administrative Agent.

 

(b) Each Guarantor agrees
to pay, and to save the Administrative Agent and the Lenders harmless from, any
and all liabilities with respect to, or resulting from any delay in paying, any
and all stamp, excise, sales or other taxes which may be payable or determined
to be payable with respect to any of the Collateral or in connection with any
of the transactions contemplated by this Agreement.

 

(c) Each Guarantor agrees
to pay, and to save the Administrative Agent and the Lenders harmless from, any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits,

 

21

 

costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement to the extent the Borrower would be required to do so
pursuant to subsection 10.5 of the Credit Agreement.

 

(d) The agreements in
this Section 8.4 shall survive repayment of the Obligations and all other
amounts payable under the Credit Agreement and the other Loan Documents.

 

8.5 Successors and Assigns.  This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Administrative Agent and the Lenders and their successors and assigns; provided
that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent.

 

8.6 Set-Off.  Each Grantor hereby irrevocably authorizes
the Administrative Agent and each Lender at any time and from time to time
while an Event of Default shall have occurred and be continuing, without notice
to such Grantor or any other Grantor, any such notice being expressly waived by
each Grantor, to set-off and appropriate and apply any and all deposits
(general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by the Administrative Agent or such Lender to or for the
credit or the account of such Grantor, or any part thereof in such amounts as
the Administrative Agent or such Lender may elect, against and on account of
the obligations and liabilities of such Grantor to the Administrative Agent or
such Lender hereunder and claims of every nature and description of the
Administrative Agent or such Lender against such Grantor, in any currency,
whether arising hereunder, under the Credit Agreement, any other Loan Document
or otherwise, as the Administrative Agent or such Lender may elect, whether or
not the Administrative Agent or any Lender has made any demand for payment and
although such obligations, liabilities and claims may be contingent or
unmatured.  The Administrative Agent and
each Lender shall notify such Grantor promptly of any such set-off and the
application made by the Administrative Agent or such Lender of the proceeds
thereof; provided that the failure to give such notice shall not affect
the validity of such set-off and application. 
The rights of the Administrative Agent and each Lender under this
Section 8.6 are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which the Administrative Agent or such
Lender may have.

 

8.7 Counterparts. 
This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts (including by telecopy), and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.

 

8.8 Severability. 
Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

8.9 Section Headings.  The Section headings used in this Agreement are for convenience
of reference only and are not to affect the construction hereof or be taken
into consideration in the interpretation hereof.

 

8.10 Integration. 
This Agreement and the other Loan Documents represent the agreement of
the Grantors, the Administrative Agent and the Lenders with respect to the
subject matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by the

 

22

 

Administrative Agent or any Lender relative to subject matter hereof
and thereof not expressly set forth or referred to herein or in the other Loan
Documents.

 

8.11
GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

8.12 Submission To Jurisdiction; Waivers.  Each Grantor hereby irrevocably and
unconditionally:

 

(a) submits for itself
and its property in any legal action or proceeding relating to this Agreement
and the other Loan Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the Courts of the State of New York, the courts of the United
States of America for the Southern District of New York, and appellate courts
from any thereof;

 

(b) consents that any
such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in
an inconvenient court and agrees not to plead or claim the same;

 

(c) agrees that service
of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to such Grantor at its address referred to in Section
8.2 or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

 

(d) agrees that nothing
herein shall affect the right to effect service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction; and

 

(e) waives, to the
maximum extent not prohibited by law, any right it may have to claim or recover
in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

 

8.13 Acknowledgments.  Each Grantor hereby acknowledges that:

 

(a) it has been advised
by counsel in the negotiation, execution and delivery of this Agreement and the
other Loan Documents to which it is a party;

 

(b) neither the
Administrative Agent nor any Lender has any fiduciary relationship with or duty
to any Grantor arising out of or in connection with this Agreement or any of
the other Loan Documents, and the relationship between the Grantors, on the one
hand, and the Administrative Agent and Lenders, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

 

(c) no joint venture is
created hereby or by the other Loan Documents or otherwise exists by virtue of
the transactions contemplated hereby among the Lenders or among the Grantors
and the Lenders.

 

23

 

8.14 Additional Grantors.  Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to subsection 6.10 of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the
form of Annex 1 hereto.

 

8.15 Releases.  (a) At such time as the Loans, the
Reimbursement Obligations and the other Obligations (other than obligations
under or in respect of Lender Hedge Agreements) shall have been paid in full,
the Commitments have been terminated and no Letters of Credit shall be
outstanding, the Collateral shall be released from the Liens created hereby,
and this Agreement and all obligations (other than those expressly stated to
survive such termination) of the Administrative Agent and each Grantor
hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall
revert to the Grantors.  At the request
and sole expense of any Grantor following any such termination, the
Administrative Agent shall deliver to such Grantor any Collateral held by the
Administrative Agent hereunder, and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such
termination.

 

(b) If any of the
Collateral shall be sold, transferred or otherwise disposed of by any Grantor
in a transaction permitted by the Credit Agreement, then the Administrative
Agent, at the request and sole expense of such Grantor, shall execute and
deliver to such Grantor all releases or other documents reasonably necessary or
desirable for the release of the Liens created hereby on such Collateral.  At the request and sole expense of the
Borrower, a Subsidiary Guarantor shall be released from its obligations
hereunder in the event that all the Capital Stock of such Subsidiary Guarantor
shall be sold, transferred or otherwise disposed of in a transaction permitted
by the Credit Agreement; provided that the Borrower shall have delivered
to the Administrative Agent, at least ten Business Days prior to the date of
the proposed release, a written request for release identifying the relevant
Subsidiary Guarantor and the terms of the sale or other disposition in
reasonable detail, including the price thereof and any expenses in connection
therewith, together with a certification by the Borrower stating that such
transaction is in compliance with the Credit Agreement and the other Loan
Documents.

 

8.16
WAIVER OF JURY TRIAL.  EACH GRANTOR AND, BY ACCEPTANCE OF THE
BENEFITS HEREOF, EACH AGENT AND EACH LENDER HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

 

[Remainder of Page Intentionally Left Blank]

 

24

 

IN WITNESS WHEREOF, each
of the undersigned has caused this Guarantee and Collateral Agreement to be
duly executed and delivered as of the date first above written.

 

INAMED CORPORATION

BIODERMIS
CORPORATION

BIOENTERICS CORPORATION

BIOPLEXUS
CORPORATION

COLLAGEN
AESTHETICS, INC.

COLLAGEN
AESTHETICS INTERNATIONAL, INC.

CUI CORPORATION

FLOWMATRIX
CORPORATION

INAMED DEVELOPMENT
COMPANY

INAMED
INTERNATIONAL CORP.

INAMED JAPAN, INC.

MCGHAN MEDICAL
CORPORATION

MEDISYN
TECHNOLOGIES CORPORATION

 

	
   

  	
  By:

  	
    /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title:

  	
  President, Inamed Corporation

  
	
   

  	
   

  	
   

  	
  President, Biodermis Corporation

  
	
   

  	
   

  	
   

  	
  Executive V.P., Bioenterics Corporation

  
	
   

  	
   

  	
   

  	
  President, Bioplexus Corporation

  
	
   

  	
   

  	
   

  	
  President, Collagen Aesthetics, Inc.

  
	
   

  	
   

  	
   

  	
  President, Collagen Aesthetics International

  
	
   

  	
   

  	
   

  	
  President, CUI corporation

  
	
   

  	
   

  	
   

  	
  President, Flowmatrix Corporation

  
	
   

  	
   

  	
   

  	
  President, Inamed Development Company

  
	
   

  	
   

  	
   

  	
  Executive V.P., Inamed International Corp.

  
	
   

  	
   

  	
   

  	
  President, Inamed Japan, Inc.

  
	
   

  	
   

  	
   

  	
  Executive V.P., McGhan Medical Corporation

  
	
   

  	
   

  	
   

  	
  President, Medisyn Technologies Corporation

  
					

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby
acknowledges receipt of a copy of the Guarantee and Collateral Agreement dated
as of February 1, 2000 (the “Agreement”), made by the Grantors parties
thereto for the benefit of First Union National Bank, as Administrative
Agent.  The undersigned agrees for the
benefit of the Administrative Agent and the Lenders as follows:

 

1. The undersigned will
be bound by the terms of the Agreement and will comply with such terms insofar
as such terms are applicable to the undersigned.

 

2. The undersigned will
notify the Administrative Agent promptly in writing of the occurrence of any of
the events described in Section 5.8(a) of the Agreement.

 

3. The terms of Sections
6.3(c) and 6.7 of the Agreement shall apply to it, mutatis  mutandis,
with respect to all actions that may be required of it pursuant to Section
6.3(c) or 6.7 of the Agreement.

 

 

	
   

  	
  [NAME OF ISSUER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

Annex 1 to

Guarantee and Collateral
Agreement

 

 

ASSUMPTION AGREEMENT,
dated as of                   , 200       , made by               , a                 
corporation (the “Additional Grantor”), in favor of First Union
National Bank, as administrative agent (in such capacity, the “Administrative
Agent”) for the banks and other financial institutions (the “Lenders”)
parties to the Credit Agreement referred to below.  All capitalized terms not defined herein shall have the meaning
ascribed to them in such Credit Agreement.

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, Inamed
Corporation (the “Borrower”), the Lenders and the Administrative Agent
have entered into a Credit Agreement, dated as of February 1, 2000 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, in connection
with the Credit Agreement, the Borrower and certain of its Affiliates (other
than the Additional Grantor) have entered into the Guarantee and Collateral
Agreement, dated as of January __, 2000 (as amended, supplemented or otherwise
modified from time to time, the “Guarantee and Collateral Agreement”) in
favor of the Administrative Agent for the benefit of the Lenders;

 

WHEREAS, the Credit
Agreement requires the Additional Grantor to become a party to the Guarantee
and Collateral Agreement; and

 

WHEREAS, the Additional
Grantor has agreed to execute and deliver this Assumption Agreement in order to
become a party to the Guarantee and Collateral Agreement;

 

NOW, THEREFORE, IT IS
AGREED:

 

1.  Guarantee and Collateral Agreement.  By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 8.15 of the Guarantee
and Collateral Agreement, hereby becomes a party to the Guarantee and
Collateral Agreement as a Grantor thereunder with the same force and effect as
if originally named  therein as a Grantor and, without limiting the
generality of the foregoing, hereby expressly assumes all obligations and
liabilities of a Grantor thereunder. 
The information set forth in Annex 1-A hereto is hereby added to the
information set forth in the Schedules to the Guarantee and Collateral
Agreement.  The Additional Grantor
hereby represents and warrants that each of the representations and warranties
contained in Section 4 of the Guarantee and Collateral Agreement is true and
correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date.

 

2. GOVERNING
LAW.  THIS ASSUMPTION AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK.

 

 

IN WITNESS WHEREOF, the
undersigned has caused this Assumption Agreement to be duly executed and
delivered as of the date first above written.

 

 

	
   

  	
  [ADDITIONAL
  GRANTOR]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

2

 

Annex 1-A to

Assumption Agreement

 

Supplement to Schedule 1

 

 

Supplement to Schedule 2

 

 

Supplement to Schedule 3

 

 

Supplement to Schedule 4

 

 

Supplement to Schedule 5

 

 

Supplement to Schedule 6

 

 

Supplement to Schedule 7

 

 

Schedule 1 to Guarantee
and Collateral Agreement

 

Notice Addresses
of Guarantors

 

INAMED INTERNATIONAL CORP.

McGHAN MEDICAL CORPORATION

BIOENTERICS CORPORATION

INAMED DEVELOPMENT COMPANY

CUI CORPORATION

INAMED JAPAN, INC.

BIODERMIS CORPORATION

BIOPLEXUS CORPORATION

FLOWMATRIX CORPORATION

MEDISYN TECHNOLOGIES CORPORATION

 

5540 Ekwill Street, Suite
D

Santa Barbara, CA 93111

 

COLLAGEN AESTHETICS INTERNATIONAL, INC.

 

Kilbride Industrial
Estate

Arklow, Co. Wicklow

Ireland

 

COLLAGEN AESTHETICS, INC.

 

1850 Embarcadero Road

Palo Alto, CA 94303

 

 

SCHEDULE 2

to

Guarantee and Collateral
Agreement

 

Description of Investment
Property

 

1. PLEDGED DEBT

 

	
  Name of
  Payee

  	
   

  	
  Description

  	
   

  	
  Interest Rate

  	
   

  	
  Principal Amount

  As of Specified

  Date

  	
   

  
	
  INAMED Corporation

  	
   

  	
  $3,466,198.00 Note, dated September 1, 1993, issued
  by Innovative Specialty Silicone Acquisition Corporation in favor of INAMED
  Corporation and secured by the assets of Specialty Silicone Fabricators, Inc.

  	
   

  	
  Prime rate

  	
   

  	
  $3,363,000.00 as of December 31, 1999

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collagen Aesthetics, Inc.

  	
   

  	
  $250,000.00 loan to Prather Ranch pursuant to Second
  Amended and Restated Hide Supply Agreement between Collagen Aesthetics, Inc.
  and Prather Ranch, dated January 1, 1999

  	
   

  	
  interest-free

  	
   

  	
  ($100,000 drawn)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collagen Aesthetics, Inc.

  	
   

  	
  $500,000.00 Convertible Promissory Note issued by
  Cosmederm Technologies, Inc. in favor of Collagen Corporation, dated February
  27, 1998

  	
   

  	
  simple interest at 10% per annum

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collagen Aesthetics, Inc.

  	
   

  	
  $66,864.00 Amended and Restated Promissory Note
  issued by Dale A. Stringfellow in favor of Collagen Corporation, dated
  September 7, 1990

  	
   

  	
  interest-free

  	
   

  	
  (The payee does not expect repayment and has written
  off this note.)

  	
   

  

 

 

 

2. PLEDGED SHARES

 

Grantor:         INAMED
CORPORATION

 

	
  Name of
  Issuer

  	
   

  	
  Jurisdiction

  	
   

  	
  Number of Shares

  	
   

  	
  Class

  	
   

  	
  Certificate

  No.(s)

  	
   

  
	
  McGHAN MEDICAL CORPORATION

  	
   

  	
  California

  	
   

  	
  1,823,165

  	
   

  	
  Common

  	
   

  	
  76

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INAMED JAPAN, INC

  	
   

  	
  Nevada

  	
   

  	
  25,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INAMED International Corp.

  	
   

  	
  Delaware

  	
   

  	
  100

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BioEnterics Corporation

  	
   

  	
  California

  	
   

  	
  50,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIODERMIS CORPORATION

  	
   

  	
  Nevada

  	
   

  	
  5,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CUI CORPORATION

  	
   

  	
  California

  	
   

  	
  100,000

  	
   

  	
  Common

  	
   

  	
  2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FLOWMATRIX CORPORATION

  	
   

  	
  Nevada

  	
   

  	
  1,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INAMED DEVELOPMENT COMPANY

  	
   

  	
  California

  	
   

  	
  2,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  

 

2

 

	
  MEDISYN TECHNOLOGIES CORPORATION

  	
   

  	
  Nevada

  	
   

  	
  5,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIOPLEXUS CORPORATION

  	
   

  	
  Nevada

  	
   

  	
  1,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collagen Aesthetics, Inc.

  	
   

  	
  Delaware

  	
   

  	
  100

  	
   

  	
  Common

  	
   

  	
  2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CUI Acquisition Corp.

  	
   

  	
  California

  	
   

  	
  100,000

  	
   

  	
  Common

  	
   

  	
  1

  	
   

  

 

Grantor :        INAMED
INTERNATIONAL CORP.

 

	
  Name of Issuer

  	
   

  	
  Jurisdiction

  	
   

  	
  Number of
  Shares

  	
   

  	
  Class

  	
   

  	
  Certificate
  

  No.(s)

  	
   

  
	
  Chamfield Ltd.

  	
   

  	
  Ireland

  	
   

  	
  325,000

  	
   

  	
  Ordinary

  	
   

  	
  99/2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McGhan Limited

  	
   

  	
  Ireland

  	
   

  	
  319,800

  	
   

  	
  Ordinary

  	
   

  	
  99/1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediSyn Technologies Ltd.

  	
   

  	
  Ireland

  	
   

  	
  130

  	
   

  	
  Ordinary

  	
   

  	
  99/2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McGhan Medical B.V.

  	
   

  	
  Netherlands

  	
   

  	
  651

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

Grantor:         BIOENTERICS
CORPORATION

 

	
  Name of
  Issuer

  	
   

  	
  Jurisdiction

  	
   

  	
  Number of Shares

  	
   

  	
  Class

  	
   

  	
  Certificate

  No.(s)

  	
   

  
	
  BioEnterics Ltd.

  	
   

  	
  Ireland

  	
   

  	
  130

  	
   

  	
  Ordinary

  	
   

  	
  99/2

  	
   

  

 

3

 

Grantor:         COLLAGEN
AESTHETICS INTERNATIONAL, INC.

 

	
  Name of
  Issuer

  	
   

  	
  Jurisdiction

  	
   

  	
  Number of Shares

  	
   

  	
  Class

  	
   

  	
  Certificate 

  No.(s)

  	
   

  
	
  Collagen KK

  	
   

  	
  Japan

  	
   

  	
  520

  	
   

  	
  n/a

  	
   

  	
  1B-002

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Medical Canada Ltd.

  	
   

  	
  Canada

  	
   

  	
  n/a

  	
   

  	
  Common

  	
   

  	
  n/a

  	
   

  

 

Grantor:         COLLAGEN
AESTHETICS, INC.

 

	
  Name of
  Issuer

  	
   

  	
  Jurisdiction

  	
   

  	
  Number of Shares

  	
   

  	
  Class

  	
   

  	
  Certificate 

  No.(s)

  	
   

  
	
  Collagen Aesthetics International, Inc.

  	
   

  	
  Delaware

  	
   

  	
  1000

  	
   

  	
  Common

  	
   

  	
  CS-1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collagen Aesthetics (UK) Limited

  	
   

  	
  United Kingdom

  	
   

  	
  650

  	
   

  	
  Ordinary

  	
   

  	
  4

  	
   

  

 

 

Schedule 3 to Guarantee
and Collateral Agreement

 

Perfection Matters

 

A.  INVESTMENT
PROPERTY

 

The following information is based
on the Borrower’s knowledge, and not on advice received from separate counsel
retained in jurisdictions outside of the United States, and may therefore be
incomplete.

 

1.  For all domestic and also
the Irish Subsidiaries of the Company, stock certificates evidencing the
Pledged Stock will be delivered to the Administrative Agent.  Further, for the Irish Subsidiaries, any
notices registered with the High Court of Ireland naming Ableco as having a
pledge of the stock of such Subsidiaries will be cancelled and new notices
created naming the Administrative Agent as pledgee of such stock.

 

2.  For Collagen Aesthetics (UK)
Limited, the existing share certificate will be cancelled, and a new
certificate will be issued and delivered to the Administrative Agent.

 

3.  For Collagen KK, the stock
certificate will be issued to a custodian appointed by the Administrative Agent
to be held in Japan.

 

4.  For the Pledged Stock of the
Subsidiaries which are incorporated in the Netherlands, written confirmation
will be obtained from the former Pledgee confirming that the lien of that
former Pledgee is terminated, and then a deed will be issued evidencing that
the Administrative Agent has been entered in the registry of such Subsidiaries
as the new Pledgee of the Pledged Stock of such Subsidiaries.

 

B. 
INTELLECTUAL PROPERTY

 

1.  Filings would customarily be
done in the PTO, though such filings have not been requested by the
Administrative Agent and the Lenders.

 

 

C.  DOCUMENTS,
EQUIPMENT, GENERAL INTANGIBLES, CHATTEL PAPER, INSTRUMENTS, INVENTORY, BOOKS
AND RECORDS AND OTHER GOODS

 

1.  UCC-1 financing statements
will be filed in the jurisdictions designated in the Credit Agreement.

 

D.  ACCOUNTS

 

1.  Deposit Accounts:  In California and Illinois, notice is
provided by the debtor to the relevant bank of the security interest of the
Administrative Agent on behalf of the Lenders. 
In other states, while the UCC does not allow a lien, it is possible to
get common law liens on deposit accounts, and for perfection of such liens, it
is best for the secured parties to seek to obtain “sole dominion and control”
over the account itself.

 

2.  Securities Accounts:  Liens can be perfected either by “control”
(which is the superior method, and which can be attained through a securities
account control agreement) or by filing UCC financing statements.

 

2

 

SCHEDULE 4

to

Guarantee and Collateral
Agreement

 

Executive
Office/Jurisdiction of Organization

 

	
  Grantor

  	
   

  	
  Executive Office

  	
   

  	
  Jurisdiction of Organization

  	
   

  
	
  INAMED INTERNATIONAL CORP

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  McGHAN MEDICAL CORPORATION

  	
   

  	
  5540 Ekwill Street, Suite D 

  Santa Barbara, CA 93111

  	
   

  	
  California

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIOENTERICS CORPORATION

  	
   

  	
  5540 Ekwill Street, Suite D 

  Santa Barbara, CA 93111

  	
   

  	
  California

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INAMED DEVELOPMENT COMPANY

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  California

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CUI CORPORATION

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  California

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INAMED JAPAN, INC.

  	
   

  	
  5540 Ekwill Street Suite D

  Santa Barbara, CA 93111

  	
   

  	
  Nevada

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIODERMIS CORPORATION

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  Nevada

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BIOPLEXUS CORPORATION

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  Nevada

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FLOWMATRIX CORPORATION

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  Nevada

  	
   

  

 

 

	
  Grantor

  	
   

  	
  Executive Office

  	
   

  	
  Jurisdiction of Organization

  	
   

  
	
  MEDISYN TECHNOLOGIES CORPORATION

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  Nevada

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INAMED Corporation

  	
   

  	
  5540 Ekwill Street, Suite D

  Santa Barbara, CA 93111

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collagen Aesthetics, Inc.

  	
   

  	
  1850 Embarcadero Road 

  Pala Alto, CA 94303

  	
   

  	
  Delaware

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collagen Aesthetics 

  International Inc.

  	
   

  	
  Kilbride Industrial Estate

  Arklow, Co. Wicklow

  Ireland

  	
   

  	
  Delaware

  	
   

  

 

 

SCHEDULE 5

to

Guarantee and Collateral
Agreement

 

Locations of Equipment
and Inventory

 

 

	
  McGHAN MEDICAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  700 Ward Drive

  
	
   

  	
  Santa Barbara, CA 93111

  
	
   

  	
   

  
	
   

  	
  600 Pine Avenue

  
	
   

  	
  Goleta, CA 93117

  
	
   

  	
   

  
	
   

  	
  1160 Mark Avenue

  
	
   

  	
  Carpinteria, CA 93013

  
	
   

  	
   

  
	
  COLLAGEN AESTHETICS INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  Kilbride Industrial Estate

  
	
   

  	
  Arklow, Co. Wicklow

  
	
   

  	
  Ireland

  
	
   

  	
   

  
	
  INAMED CORPORATION

  
	
   

  	
   

  
	
   

  	
  5540 Ekwill Street, Suite D

  
	
   

  	
  Santa Barbara, CA 93111

  
	
   

  	
   

  
	
   

  	
  11 Penn Plaza, Suite 946

  
	
   

  	
  New York, New York 10036

  
	
   

  	
   

  
	
  COLLAGEN AESTHETICS, INC.

  
	
   

  	
   

  
	
   

  	
  48490 Milmont Drive

  
	
   

  	
  Fremont, CA 94538

  
	
   

  	
   

  
	
   

  	
  McGhan Medicals Canada Ltd.

  
	
   

  	
  1235 Bay Street, Suite 900

  

 

 

	
   

  	
  Toronto, Ontario M5R 3K4

  
	
   

  	
   

  
	
   

  	
  Collagen Aesthetics (UK) Limited

  
	
   

  	
  10, Thame Business Centre

  
	
   

  	
  Bertie Road

  
	
   

  	
  GB - Thame, Oxon OX9 3FR

  
	
   

  	
   

  
	
   

  	
  Prather Ranch

  
	
   

  	
  P.O. Box 817

  
	
   

  	
  Fall River Mills, CA 96028

  

 

2

 

SCHEDULE 6

 

TO

 

GUARANTEE AND COLLATERAL
AGREEMENT

 

PATENTS AND PATENT
LICENSES

 

 

On file
with the Administrative Agent

 

 

 

ACKNOWGLEDMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  BIOENTERICS LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
  Executive Vice President

  

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  CHAMFIELD LTD.

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
   

  

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  COLLAGEN AESTHETICS (UK) LIMITED

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
   

  

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  COLLAGEN KK

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
   

  

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  MCGHAN LIMITED

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
   

  

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  MCGHAN MEDICAL B.V.

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
   

  

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  MEDICAL CANADA LTD.

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
   

  

 

 

ACKNOWLEDGMENT AND
CONSENT

 

The undersigned hereby acknowledges receipt of a copy
of the Guarantee and Collateral Agreement dated as of February 1, 2000 (the “Agreement”),
made by the Grantors parties thereto for the benefit of First Union National
Bank, as Administrative Agent.  The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

 

1.  The undersigned will be bound by the terms
of the Agreement and will comply with such terms insofar as such terms are
applicable to the undersigned.

 

2.  The undersigned will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.8(a) of the Agreement.

 

3.  The terms of Sections 6.3(c) and 6.7 of the
Agreement shall apply to it, mutatis  mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 of the
Agreement.

 

	
   

  	
  MEDISYN TECHNOLOGIES LTD.

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title: 

  	
   

  

 

 

INAMED CORPORATION

 

OFFICER’S CERTIFICATE

 

Reference is hereby made
to the Credit Agreement, dated as of February 1, 2000 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among
Inamed Corporation (the “Company”), the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co. Inc., as sole lead arranger and sole book manager (the
“Arranger”) and the Administrative Agent.  Capitalized terms used herein and not otherwise defined shall
have the meanings assigned in the Credit Agreement.  This certificate is being delivered pursuant to Section 5.1(g) of
the Credit Agreement.

 

I, Ilan K. Reich, hereby
certify that I am the President of the Company, and as such have access to the
Company’s corporate records and am familiar with the matters therein contained
and herein certified, and that:

 

1.        The Company has obtained all consents, licenses and approvals
required in connection with the execution, delivery and performance of the Loan
Documents to which it is a party, and the continuing operation of the Company
and its Subsidiaries; copies of all such consents, licenses and approvals, if
any, received to the date hereof are attached as Exhibit 5 hereto or have
previously been delivered to the Administrative Agent; and all such consents, licenses
and approvals, if any, are in full force and effect on the date hereof.

 

2.        The representations and warranties of the Company set forth
in each of the Loan Documents to which it is a party or which are contained in
any certificate furnished by or on behalf of the Company pursuant to any of the
Loan Documents to which it is a party are true and correct in all material
respects on and as of the date hereof with the same effect as if made on the
date hereof, except for representations and warranties expressly stated to
related to a specific earlier date, in which case such representations and
warranties were true and correct in all material respects as of such earlier
date.

 

3.        The Lenders, the Agents and the Lead Arranger have received
all fees required to be paid, and all reasonable expenses for which invoices
have been presented, on or before the Closing Date.

 

 

4.        After giving effect to the funding of the Loans and the
application of the proceeds therefrom, the Company will be in compliance with, except
for any noncompliance that could not reasonably be expected to have a Material
Adverse Effect, all its agreements relating to Indebtedness.

 

5.        Evidence that the Bridge Loan Agreement has been terminated
and all amounts owing thereunder have been paid in full has previously been
provided to the Syndication Agent in accordance with Section 5.1(b) of the
Credit Agreement.

 

6.        No Default or Event of Default has occurred and is continuing
as of the date hereof or after giving effect to the Loans to be made on the
date hereof.

 

IN WITNESS WHEREOF, the
undersigned has executed this Officer’s Certificate as of the 1 day of
February, 2000.

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  President 

  

 

 

INAMED CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made
to the Credit Agreement, dated as of February 1, 2000 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among
Inamed Corporation (the “Company”), the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co. Inc., as sole lead arranger and sole book manager (the
“Arranger”) and the Administrative Agent.  Capitalized terms used herein and not otherwise defined shall
have the meanings assigned in the Credit Agreement.  This certificate is being delivered pursuant to Section 5.1(g) of
the Credit Agreement.

 

I, David E. Bamberger,
hereby certify that I am the Secretary of the Company, and as such have access
to the Company’s corporate records and am familiar with the matters therein
contained and herein certified, and that:

 

1.        Attached hereto as Annex 1 is a true, correct and complete
copy of the Restated Certificate of Incorporation of the Company, as filed with
the Secretary of State of the State of Delaware on December 22, 1998.

 

2.        Attached hereto as Annex 2 is a true, correct and complete
copy of the By-laws of the Company as presently in effect on and as of the date
hereof, which By-laws are in full force and effect in said form without
modification, amendment, rescission or repeal in any respect.

 

3.        Attached hereto as Annex 3 is a true, correct and complete
copy of resolutions adopted by unanimous written consent in lieu of a meeting
in accordance with applicable laws and the Certificate of Incorporation and
By-laws of the Company, and such resolutions (i) were duly adopted by the Board
of Directors of the Company and are in full force and effect on and as of the
date hereof, not having been in any way amended, altered or repealed, and (ii)
constitute the only resolutions of the Board of Directors of the Company
relating to the subject matter of the Credit Agreement, the other Loan
Documents and the transactions contemplated thereby.

 

 

4.        Attached hereto as Annex 4 is a true, correct and complete
copy of a certificate from the Office of the Secretary of State of the State of
Delaware indicating that the Company (i) is in good standing, (ii) has a legal
corporate existence not having been cancelled or dissolved, (iii) is duly authorized
to transact business and (iv) has paid all franchise taxes to date.

 

5.        The following persons are duly qualified and acting officers
of the Company, each of whom is authorized to sign any of the Loan Documents to
which the Company is a party, and each of whom is duly elected to the office
set forth opposite his respective name; the signature appearing opposite the
name of each such officer is his authentic signature:

 

	
  NAME

  	
   

  	
  OFFICE

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
   

  	
  PRESIDENT

  	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
   

  	
  SECRETARY

  	
   

  	
  /s/ David E. Bamberger

  

 

IN WITNESS WHEREOF, the
undersigned has executed this Secretary’s Certificate as of the 1 day of
February 2000.

 

	
   

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E.
  Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K. Reich,
President of the Company, hereby certify that David E. Bamberger is the duly
elected Secretary of the Company and that the signature appearing above is his
genuine signature.

 

	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  President

  

 

3

 

Annex 1

 

 

 

 

State
of Delaware

 

Office
of the Secretary of State

 

 

I, EDWARD J. FREEL,
SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS
A TRUE AND CORRECT COPY OF THE RESTATED CERTIFICATE OF “INAMED CORPORATION
(DELAWARE)”, CHANGING ITS NAME FROM “INAMED CORPORATION (DELWARE)” TO “INAMED
CORPORATION”, FILED IN THIS OFFICE ON THE TWENTY-SECOND DAY OF DECEMBER, A.D.
1998, AT 6:01 O’CLOCK P.M.

 

	
  [SEAL]

  	
  /s/ Edward J. Freel

  
	
   

  	
  Edward
  J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2967816  
  8100

  	
  AUTHENTICATION:  

  	
  0217743

  
	
   

  	
   

  
	
  001039210

  	
  DATE:  

  	
  01-26-00

  

 

1

 

[STAMP OF STATE OF DELAWARE]

 

 

RESTATED
CERTIFICATE OF INCORPORATION

 

OF

 

INAMED
CORPORATION (Delaware)

 

This Restated Certificate
of Incorporation (the “Certificate”) of INAMED CORPORATION (Delaware) (the
“Corporation”), was duly adopted by the Board of Directors of the Corporation
on December 22, 1998 and the stockholders of the Corporation on December 21,
1998 in accordance with Sections 228, 242 and 245 of the General Corporation
Law of the State of Delaware.  The
original Certificate of Incorporation was filed on November 17, 1998.

 

The text of the
Certificate of Incorporation is hereby restated and further amended to read in
its entirety as follows:

 

FIRST:               The name of the corporation is
INAMED Corporation.

 

SECOND:         The address of the registered office of
the Corporation in the State of Delaware shall be at Corporation Trust Center,
1209 Orange Street, City of Wilmington, County of New Castle, Delaware
19801.  The name and address of the
Corporation’s registered agent in the State of Delaware is The Corporation
Trust Company, 1209 Orange Street, City of Wilmington, County of New Castle,
Delaware 19801.

 

THIRD:             The purpose of the Corporation is
to engage in any lawful act or activity for which corporations may power
hereafter be organized under the General Corporation Law of the State of
Delaware.

 

FOURTH:         1.        The
total number of shares of stock which the Corporation shall have authority to
issue is Twenty-Six Million (26,000,000) shares, consisting of Twenty-Five
Million (25,000,000) shares of Common Stock, par value $.01 per share (the
“Common Stock”), and One Million (1,000,000) shares of Preferred Stock, par
value $.01 per share (the “Preferred Stock”).

 

                           2.        Shares of Preferred Stock may be issued
from time to time in one or more series as may be established from time to time
by resolution of the Board of Directors of the Corporation (the “Board of
Directors”), each of which series shall consisted of such number of shares and
have such distinctive designation or title as shall be fixed by resolution of
the Board of Directors prior to the issuance of any shares of such series.  Each such class or series of Preferred Stock
shall have such voting powers, full or limited, or no voting powers, and such
preference, and relative, participating, optional or other special rights and
such qualifications, limitations or restrictions thereof, as shall be stated in
such resolution of the Board of Directors

 

1

 

providing for the issuance of such series of Preferred Stock.  The Board of Directors is further authorized
to increase or decrease (but not below the number of shares of such class or
series then outstanding) the number of shares of any series subsequent to the
issuance of shares of that series.

 

FIFTH:              In furtherance and not in
limitation of the powers conferred by statute and subject to Article Sixth
hereof, the Board of Directors is expressly authorized to adopt, repeal,
rescind, alter or amend in any respect the Bylaws of the Corporation (the
“Bylaws”).

 

SIXTH:             Notwithstanding Article Fifth
hereof, the Bylaws may be adopted, rescinded, altered or amended in any respect
by the stockholders of the Corporation, but only by the affirmative vote of the
holders of not less than a majority of the voting power of all outstanding
shares of voting stock regardless of class and voting together as a single
voting class.

 

SEVENTH:       The business and affairs of the
Corporation shall be managed by and under the direction of the Board of
Directors.  Except as may otherwise be
provided pursuant to Section 2 of Article Fourth hereof in connection with
rights to elect additional directors under specified circumstances which may be
granted to the holders of any series of Preferred Stock, the exact number of
directors of the Corporation shall be determined from time to time by a Bylaw
or Amendment thereto provided that the number of directors shall not be reduced
to less than three (3) except that there need be only as many directors as
there are stockholders in the event that the outstanding shares are held of
record by fewer than three (3) stockholders. 
Elections of directors need not be by written ballot unless the Bylaws
of the Corporation shall so provide.

 

EIGHTH:           Each director shall serve until his
successor is elected and qualified or until his death, resignation or removal;
no decrease in the authorized number of directors shall shorten the term of any
incumbent director; and additional directors, elected pursuant to Section 2 of
Article Fourth hereof in connection with rights to elect such additional
directors under specified circumstances which may be granted to the holders of
any series of Preferred Stock, shall not be included in any class, but shall
serve for such term or terms and pursuant to such other provisions as are
specified in the resolution of the Board of Directors establishing such series.
 Any stockholder proposals and
nominations for the election of a director by a stockholder shall be delivered
to the Corporate Secretary of the Corporation no less than ninety (90) days nor
more than one hundred twenty (120) days in advance of the first anniversary of
the Company’s annual meeting held in the prior year, provided, however, in the
event the Company shall not have had an annual meeting in the prior year, such
notice shall be delivered no less than ninety (90) days nor more than one
hundred twenty (120) days in advance of May 15 of the current year.  Such stockholder nominations must contain
(a) as to each person whom the stockholder proposes to nominate for election or
re-election as a director at the annual meeting:  (w) the name, age, business address and residence address of the
proposed nominee, (x) the principal occupation or employment of the proposed
nominee, (y) the class and number of shares of capital stock of the Corporation
which are beneficially owned by the proposed nominee, and (z) any other
information relating to the proposed nominee that is required to be disclosed
in

 

2

 

solicitations for proxies for election of directors pursuant to Rule
14a under the Securities Exchange Act of 1934, as amended; and (b) as to the
stockholder giving notice of nominees for election at the annual meeting, (x)
the name and record address of the stockholder, and (y) the class and number of
shares of capital stock of the Corporation which are beneficially owned by the
stockholder.

 

NINTH:             Except as may otherwise be provided
pursuant to Section 2 of Article Fourth hereof in connection with rights to
elect additional directors under specified circumstances which may be granted
to the holders of any series of Preferred Stock, newly created directorships
resulting from any increase in the number of directors, or any vacancies on the
Board of Directors resulting from death, resignation, removal or other causes,
shall be filled solely by the affirmative vote of a majority of the remaining
directors then in office, even though less than a quorum of the Board of
Directors.  Any director elected in
accordance with the preceding sentence shall hold office for the remainder of
the full term of the class of directors in which the new directorship was
created or the vacancy occurred and until such director’s successor shall have
been elected and qualified or until such director’s death, resignation or
removal, whichever first occurs.

 

TENTH:            Except for such additional directors
as may be elected by the holders of any series of Preferred Stock pursuant to
the terms thereof established by a resolution of the Board of Directors
pursuant to Article Fourth hereof, any director may be removed from office with
or without cause and only by the affirmative vote of the holders of not less
than 50% of the voting power of all outstanding shares of voting stock entitled
to vote in connection with the election of such director regardless of class
and voting together as a single voting class.

 

ELEVENTH:     Meetings of stockholders of the Corporation
may be held within or without the State of Delaware, as the Bylaws may
provide.  The books of the Corporation
may be kept (subject to any provision of applicable law) outside the State of
Delaware at such place or places as may be designated from time to time by the
Board of Directors or in the Bylaws.

 

TWELFTH:      For the purposes of this Restated
Certificate of Incorporation, the terms “affiliate,” “associate,” “control,”
“interested stockholder,” “owner” “person” and “voting stock” shall have the
meanings set forth in Section 203(c) of the Delaware General Corporation Law.

 

THIRTEENTH:           The provisions set forth in this
Article Thirteenth and in Articles Fourth, Fifth, Sixth, Seventh, Eighth, Ninth,
Tenth and Eleventh hereof may not be repealed, rescinded, altered or amended in
any respect, and no other provision or provisions may be adopted which
impair(s) in any respect the operation or effect of any such provision, except
by the affirmative vote of the holders of a majority of the voting together as
a single voting power of all outstanding shares of voting stock regardless of
class and voting together as a single voting class, and, where such action is
proposed by an interested stockholder, or by any associate or affiliate of an
interested stockholder, the affirmative vote of the holders of a majority of
the voting power of all outstanding shares of voting stock, regardless of class
and voting together as a single class, other

 

3

 

than shares held by the interested stockholder which proposed (or the
affiliate or associate of which proposed) such action, or any affiliate or
associate of such interested stockholder.

 

FOURTEENTH:    The Corporation reserves the right to adopt,
repeal, rescind, alter or amend in any respect any provision contained in this
Certificate in the manner now or hereafter prescribed by applicable law, and
all rights conferred on stockholders herein are granted subject to this reservation.  Notwithstanding the preceding sentence, the
provisions set forth in Articles Fourth, Fifth, Sixth, Seventh, Eighth, Ninth,
Tenth, Eleventh and Fourteenth may not be repealed, rescinded, altered or
amended in any respect, and no other provision or provisions may be adopted
which impair(s) in any respect the operation or effect of any such provision,
unless such action is approved as specified in Article Fourteenth hereof.

 

FIFTEENTH:         No director of the Corporation shall be
liable to the Corporation or its stockholders for monetary damages for breach
of fiduciary duty as a director, except for liability (a) for any breach of the
director’s duty of loyalty to the Corporation or its stockholders, (b) for acts
or omissions not in good faith or which involve intentional misconduct or a
knowing violation of law, (c) under Section 174 of the Delaware General
Corporation Law, or (d) for any transaction from which the director derived an
improper personal benefit.  If the
Delaware General Corporation Law hereafter is amended to authorize the further
elimination or limitation of the liability of directors, then the liability of
a director of the Corporation, in addition to the limitation on personal
liability provided herein, shall be limited to the fullest extent permitted by
the amended Delaware General Corporation Law. 
Any repeal or modification of this Section by the stockholders of the
Corporation shall be prospective only and shall not adversely affect any
limitation on the personal liability of a director of the Corporation existing
at the time of such repeal or modification.

 

SIXTEENTH:         No contract or other transaction of the
Corporation with any other person, firm or corporation, or in which this
corporation is interested, shall be affected or invalidated by:  (a) the fact that any one or more of the
directors or officers of the Corporation is interested in or is a director or
officer of such other firm or corporation; or, (b) the fact that any director
or officer of the Corporation, individually or jointly with others, may be a
party to or may be interested in any such contract or transaction, so long as
the contract or transaction is authorized, approved or ratified at a meeting of
the Board of Directors by sufficient vote thereon by directors not interested
therein, to which such fact of relationship or interest has been disclosed, or
the contract or transaction has been approved or ratified by vote or written
consent of the stockholders entitled to vote, to whom such fact of relationship
or interest has been disclosed, or so long as the contract or transaction is
fair and reasonable to the Corporation. 
Each person who may become a director or officer of the Corporation is
hereby relieved from any liability that might otherwise arise by reason of his
contracting with the Corporation for the benefit of himself or any firm or
corporation in which he may in any may be interested.

 

4

 

IN WITNESS WHEREOF INAMED
CORPORATION (Delaware) has caused this Restated Certificate of Incorporation to
be executed by its President and to be attested to by its Secretary as of the
22nd day of December, 1998.

 

 

	
   

  	
  By:

  	
  /s/ Richard G. Babbitt

  
	
   

  	
   

  	
  Richard G.
  Babbitt

  
	
   

  	
   

  	
  Chairman, Chief
  Executive Officer and President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carol A. Brennan

  
	
   

  	
   

  	
  Carol A. Brennan

  
	
   

  	
   

  	
  Secretary

  

 

 

State
of Delaware

 

Office
of the Secretary of State

 

 

I, EDWARD J. FREEL,
SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS
A TRUE AND CORRECT COPY OF THE CERTIFICATE OF DESIGNATION OF “INAMED
CORPORATION”, FILED IN THIS OFFICE ON THE NINETEENTH DAY OF NOVEMBER, A.D.
1999, AT 10 O’CLOCK A.M.

 

 

	
  [SEAL]

  	
  /s/ Edward J. Freel

  
	
   

  	
  Edward
  J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2967816  8100

  	
  AUTHENTICATION:

  	
   

  	
  0217742

  
	
   

  	
   

  
	
  001039210

  	
  DATE:

  	
   

  	
  01-26-00

  

 

1

 

[STAMP OF STATE OF DELAWARE]

 

CERTIFICATE OF
DESIGNATIONS

 

of

 

SERIES A JUNIOR
PARTICIPATING

PREFERRED STOCK

 

of

 

INAMED CORPORATION

 

(Pursuant to Section 151
of the

General Corporation Law
of the State of Delaware)

 

 

Inamed Corporation, a corporation organized and
existing under the General Corporation Law of the State of Delaware
(hereinafter called the “Corporation”), hereby certifies that the following
resolution was adopted by the Board of Directors of the Corporation in
accordance with the provisions of Section 151 of the General Corporation Law of
the State of Delaware at a meeting duly called and held on November 16, 1999:

 

RESOLVED, that pursuant to the authority granted to
and vested in the Board of Directors of this Corporation (hereinafter called
the “Board of Directors” or the “Board”) in accordance with the provisions of
the Certificate of Incorporation of the Corporation, the Board of Directors
hereby creates a series of Preferred Stock, par value $.01 per share (the
“Preferred Stock”), of the Corporation and hereby states the designation and
number of shares, and fixes the relative rights, preferences, and limitations
thereof as follows:

 

“Series A Junior Participating Preferred Stock:

 

Section 1.  Designation
and Amount.  The shares of this
series shall be designated as  “Series A
Junior Participating Preferred Stock” (the “Series A Junior Preferred Stock”)
and the number of shares constituting the Series A Junior Preferred Stock shall
be twenty-five thousand (25,000).  Such
number of shares may be increased or decreased by resolution of the Board of
Directors; provided, that no decreases shall reduce the number of shares
of Series A Junior Preferred Stock to a number less than the number of shares
then outstanding plus the number of shares reserved for issuance upon the
exercise of outstanding options, rights or warrants or upon the conversion of
any outstanding securities issued by the Corporation convertible into Series A
Junior Preferred Stock.

 

 

Section 2. Dividends and Distributions.

 

(A) Subject to the rights of the holders of any shares
of any series of Preferred Stock ( or any other stock) ranking prior and
superior to the Series A Junior Preferred Stock with respect to dividends, the
holders of shares of Series A Junior Preferred Stock, in preference to the
holders of Common Stock, par value $1.0 per share (the “Common Stock”), of the
Corporation, and of any other junior stock, shall be entitled to receive, when,
as and if declared by the Board of Directors out of funds legally available for
the purpose, quarterly dividends payable in cash on the first day of March,
June, September and December in each year (each such date being referred to
herein as a “Quarterly Dividend Payment Date”), commencing on the first
Quarterly Dividend Payment Date after the first issuance of a share or fraction
of a share of Series A Junior Preferred Stock, in an amount per share (rounded
to the nearest cent) equal to the greater of (a) $1 or (b) subject to the
provision for adjustment hereinafter set forth, 1,000 times the aggregate per
share amount of all cash dividends, and 1,000 times the aggregate per share
amount (payable in kind) of all non-cash dividends or other distributions,
other than a dividend payable in shares of Common Stock or a subdivision of the
outstanding shares of Common Stock (by reclassification or otherwise), declared
on the Common Stock since the immediately preceding Quarterly Dividend Payment
Date or, with respect to the first Quarterly Dividend Payment Date, since the
first issuance of any share or fraction of a share of Series A Junior Preferred
Stock.  In the event the Corporation
shall at any time declare or pay any dividend on the Common Stock payable in
shares of Common Stock, or effect a subdivision or combination or consolidation
of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or
lesser number of shares of Common Stock, then in each such case the amount to
which holders of shares of Series A Junior Preferred Stock were entitled
immediately prior to such event under clause (b) of the preceding sentence
shall be adjusted by multiplying such amount by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

 

(B) The Corporation shall declare a dividend or
distribution on the Series A Junior Preferred Stock as provided in paragraph
(A) of this Section immediately after it declares a dividend or distribution on
the Common Stock (other than a dividend payable in shares of Common Stock);
provided that, in the event no dividend or distribution shall have been
declared on the Common Stock during the period between any Quarterly Dividend
Payment Date and the next subsequent Quarterly Dividend Payment Date, a
dividend of $1 per share on the Series A Junior Preferred Stock shall
nevertheless by payable on such subsequent Quarterly Dividend Payment Date.

 

(C) Dividends shall begin to accrue and be cumulative
on outstanding shares of Series A Junior Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issue of such shares, unless
the date of issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of
issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series A Junior Preferred Stock
entitled to receive a quarterly dividend and before such

 

2

 

Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date.  Accrued but unpaid
dividends shall not bear interest.  Dividends
paid on the shares of Series A Junior Preferred Stock in an amount less than
the total amount of such dividends at the time accrued and payable on such
shares shall be allocated pro rata on a share-by-share basis among all such
shares at the time outstanding.  The
Board of Directors may fix a record date for the determination of holders of
shares of Series A Junior Preferred Stock entitled to receive payment of a
dividend or distribution declared thereon, which record date shall be not more
than 60 days prior to the date fixed for the payment thereof.

 

Section 3. Voting Rights.  The holders of shares of Series A Junior
Preferred Stock shall have the following voting rights:

 

(A) Subject to the provision for adjustment
hereinafter set forth, each share of Series A Junior Preferred Stock shall
entitle the holder thereof to 1,000 votes on all matters submitted to a vote of
the stockholders of the Corporation.  In
the event the Corporation shall at any time declare or pay any dividend on the
Common Stock payable in shares of Common Stock or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the number of votes per share to which holders of shares Series A
Junior Preferred Stock were entitled immediately prior to such event shall be
adjusted by multiplying such number by a fraction, the numerator of which is
the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such level.

 

(B) Except as otherwise provided herein, in any other
Certificate of Designations creating a series of Preferred Stock or any similar
stock, in the Certificate of Incorporation of the Corporation or by law, the
holders of shares of Series A Junior Preferred Stock and the holders of shares
of Common Stock and any other capital stock of the Corporation having general
voting rights shall vote together as one class on all matters submitted to a
vote of stockholders of the Corporation.

 

(C) Except as set forth herein, or as otherwise
provided by law, holders of Series A Junior Preferred Stock shall have no
special voting rights and their consent shall not be required (except to the
extent they are entitled to vote with holders of Common Stock as set forth
herein) for taking any corporate action.

 

Section 4. Certain Restrictions.

 

(A) Whenever quarterly dividends or other dividends or
distributions payable on the Series A Junior Preferred Stock as provided in
Section 2 are in arrears, thereafter and until all accrued and unpaid dividends
and distributions, whether or not declared, on shares of Series A Junior
Preferred Stock outstanding shall have been paid in full, the Corporation shall
not:

 

3

 

(i) declare or pay dividends, or make any other
distributions, on any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series A Junior Preferred
Stock;

 

(ii) declare or pay dividends, or make any other
distributions, on any shares of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Series A
Junior Preferred Stock, except dividends paid ratably on the Series A Junior
Preferred Stock and all such parity stock on which dividends are payable or in
arrears in proportion to the total amounts to which the holders of all such
shares are then entitled;

 

(iii) redeem or purchase or otherwise acquire for
consideration shares of any stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series A Junior Preferred
Stock, provided that the Corporation may at any time redeem, purchase or
otherwise acquire shares of any such junior stock in exchange for shares of any
stock of the Corporation ranking junior (as to dividends and upon dissolution,
liquidation or winding up) to the Series A Junior Preferred Stock; or

 

(iv) redeem or purchase or otherwise acquire for
consideration any shares of Series A Junior Preferred Stock, or any shares of
stock ranking on a parity with the Series A Junior Preferred Stock, except in
accordance with a purchase offer made in writing or by publication (as
determined by the Board of Directors) to all holders of such shares upon such
terms as the Board of Directors, after consideration of the respective annual
dividend rates and other relative rights and preferences of the respective
series and classes, shall determine in good faith will result in fair and
equitable treatment among the respective series or classes.

 

(B) The Corporation shall not permit any subsidiary of
the Corporation to purchase or otherwise acquire for consideration any shares
of stock of the Corporation unless the Corporation could, under paragraph (A)
of this Section 4, purchase or otherwise acquire such shares at such time and in
such manner.

 

Section 5. Reacquired Shares.  Any shares of Series A Junior Preferred
Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and cancelled promptly after the acquisition
thereof.  All such shares shall upon
their cancellation become authorized but unissued shares of Preferred Stock and
may be reissued as part of a new series of Preferred Stock subject to the
conditions and restrictions on issuance set forth herein, in the Certificate of
Incorporation, or in any other Certificate of Designations creating a series of
Preferred Stock or any similar stock or as otherwise required by law.

 

Section 6. Liquidation, Dissolution or Winding Up.  Upon any liquidation, dissolution or winding
up of the Corporation, no distribution shall be made (1) to the holders of
shares of stock ranking junior (upon liquidation, dissolution or winding up) to
the Series A Junior Preferred Stock unless, prior thereto, the holders of
shares of Series A Junior Preferred Stock shall have received $1,000 per share,
plus an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment, provided that the holders
of shares of Series A Junior Preferred Stock shall be entitled to receive an
aggregate amount per share, subject to the provision for adjustment hereinafter
set forth, equal

 

4

 

to 1,000 times the aggregate amount to be distributed per share to
holders of shares of Common Stock, or (2) to the holders of shares of stock
ranking on a parity (upon liquidation, dissolution or winding up) with the
Series A Junior Preferred Stock, except distributions made ratably on the
Series A Junior Preferred Stock and all such parity stock in proportion to the
total amounts to which the holders of all such shares are entitled upon such
liquidation, dissolution or winding up. 
In the event the Corporation shall at any time declare or pay any dividend
on the Common Stock payable in shares of Common Stock, or effect a subdivision
or combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the aggregate amount to which holders of shares of Series A Junior
Preferred Stock were entitled immediately prior to such event under the proviso
in clause (1) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

 

Section 7.  Consolidation,
Merger, etc.  In case the
Corporation shall enter into any consolidation, merger, combination or other
transaction in which the shares of Common Stock are exchanged for or changed
into other stock or securities, cash and/or any other property, then in any
such case each share of Series A Junior Preferred Stock shall at the same time
be similarly exchanged or changed into an amount per share, subject to the
provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate
amount of stock, securities, cash and/or any other property (payable in kind),
as the case may be, into which or for which each share of Common Stock is
changed or exchanged.  In the event the
Corporation shall at any time declare or pay any dividend on the Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater
or lesser number of shares of Common Stock, then in each such case the amount
set forth in the preceding sentence with respect to the exchange or change of
shares of Series A Junior Preferred Stock shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

 

Section 8.  No
Redemption.  The shares of Series A
Junior Preferred Stock shall not be redeemable.

 

Section 9.  Rank.
The Series A Junior Preferred Stock shall rank, with respect to the payment of
dividends and the distribution of assets, junior to all series of any other
class of Preferred Stock.

 

Section 10.  Amendment.  The Certificate of Incorporation of the
Corporation, as amended, shall not be amended in any manner which would
materially alter or change the powers, preferences or special rights of the
Series A Junior Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of at least two-thirds of the outstanding
shares of Series A Junior Preferred Stock, voting together as a single class.”

 

5

 

IN WITNESS WHEREOF, Inamed Corporation has caused this
Certificate of Designations of Series A Junior Participating Preferred Stock to
be duly executed by its Senior Vice President, Secretary and General Counsel
this 16th day of November, 1999.

 

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ David Bamberger

  
	
   

  	
  Name:

  	
  David Bamberger

  
	
   

  	
  Title:

  	
  Senior Vice President, Secretary 

  and General Counsel

  

 

6

 

Annex 2

 

 

 

 

Corporation for the benefit of himself or any firm or corporation in
which he may in any way be interested.

 

IN WITNESS WHEREOF INAMED CORPORATION has caused this Restated
Certificate of Incorporation to be executed by its President and to be attested
to by its Secretary as of the 22 day of December, 1998.

 

INAMED CORPORATION

 

 

	
  By:

  	
   /s/ Richard
  G. Babbitt

  	
   

  
	
  Richard G. Babbitt

  
	
  Chairman, Chief Executive Officer and President

  

 

 

	
  By:

  	
  /s/ Carol A. Brennan

  	
   

  
	
  Carol A. Brennan

  
	
  Secretary

  

 

Exhibit 3.2

 

BYLAWS

OF

 

INAMED CORPORATION

(A DELAWARE CORPORATION)

 

The following are the Bylaws of INAMED CORPORATION (Delaware), a
Delaware corporation (the “Corporation”), effective as of December 21, 1998,
after approval by the Corporation’s Board of Directors and stockholders:

 

ARTICLE I

 

Offices

 

Section 1.01.  Principal
Executive Office.  The principal
executive office of the Corporation shall be located at 3800 Howard Hughes
Boulevard, Suite 900, Las Vegas, Nevada 89109. 
The Board of Directors of the Corporation (the  “Board of Directors”) may change the location of said principal
executive office.

 

Section 1.02.  Other
Offices.  The Corporation may also have
an office or offices at such other place or places, either within or without
the State of Delaware, as the Board of Directors may from time to time
determine or as the business of the Corporation may require.

 

ARTICLE II

 

Meetings of Stockholders

 

Section 2.01.  Annual
Meetings.  The annual meeting of
stockholders of the Corporation shall be held at a date and at such time as the
Board of Directors shall determine.  At
each annual meeting of stockholders, directors shall be elected in accordance
with the provisions of Section 3.03 hereof and any other proper business 

 

 

may be transacted.

 

Section 2.02.  Special
Meetings.  Special meetings of
stockholders for any purpose or purposes may be called at any time by a
majority of the Board of Directors, by the Chairman of the Board, the President
or by holders of not less than ten percent (10%) of the voting power of all
outstanding shares of voting stock regardless of class and voting together as a
single voting class.  The term “voting
stock” as used in these Bylaws shall have the meaning set forth in Section 203
(c) of the Delaware General Corporation Law. 
Special meetings may not be called by any other person or persons.  Each special meeting shall be held at such
date and time as is requested by the person or persons calling the meeting,
within the limits fixed by law.

 

Section 2.03.  Place of
Meetings.  Each annual or special
meeting of stockholders shall be held at such location as may be determined by
the Board of Directors or, if no such determination is made, at such place as
may be determined by the Chairman of the Board.  If no location is so determined, any annual or special meeting
shall be held at the principal executive office of the Corporation.

 

Section 2.04.  Notice of
Meetings.  Written notice of each annual
or special meeting of stockholders stating the date and time when, and the
place where, it is to be held shall be delivered either personally or by mail
to stockholders entitled to vote at such meeting not less than ten (10) nor
more than sixty (60) days before the date of the meeting.  The purpose or purposes for which the
meeting is called may, in the case of an annual meeting, and shall, in the case
of a special meeting, also be stated. 
If mailed, such notice shall be directed to a stockholder at his address
as it shall appear on the stock books of the Corporation, unless he shall have
filed with the Secretary of the Corporation a written request that notices
intended for him be mailed to some other address, in which case such notice
shall be mailed to the address designated in such request.

 

Section 2.05.  Conduct of
Meetings.  All annual and special
meetings of stockholders shall be conducted in accordance with such rules and
procedures as the Board of Directors may determine subject to the requirements
of applicable law and, as to matters not governed by such rules and procedures,
as the chairman of such meeting shall determine.  The chairman of any annual or special meeting of stockholders
shall be the Chairman of the Board.  The
Secretary, or in the absence of the Secretary, a person designated by the
Chairman of the Board, shall act as secretary of the meeting. 

 

Section 2.06.  Quorum.  At any meeting of stockholders of the
Corporation, the presence, in person or by proxy, of the holders of record of
majority of the shares then issued and outstanding and entitled to vote at the
meeting shall constitute a quorum for the transaction of business; PROVIDED, HOWEVER,
that this Section 2.06 shall not affect any different requirement which may
exist under statute, pursuant to the rights of any authorized class or series
of stock, or under the Certificate of Incorporation of the Corporation, as
amended or restated from time to time (the “Certificate”), for the vote
necessary for the adoption of any measure governed 

 

 

thereby.

 

In the absence of a quorum, the stockholders present in person or by
proxy, by majority vote and without further notice, may adjourn the meeting
from time to time until a quorum is attained. 
At any reconvened meeting following such adjournment at which a quorum
shall be present, any business may be transacted which might have been
transacted at the meeting as originally notified.

 

Section 2.07.  Votes
Required.  The affirmative vote of a
majority of the shares present in person or represented by proxy at a duly
called meeting of stockholders of the Corporation, at which a quorum is present
and entitled to vote on the subject matter, shall be sufficient to take or
authorize action upon any matter which may properly come before the meeting,
except that the election of directors shall be by plurality vote, unless the
vote of a greater or different number thereof is required by statute, by the rights
of any authorized class of stock or by the Certificate.  Unless the Certificate or a resolution of
the Board of Directors adopted in connection with the issuance of shares of any
class or series of stock provides for a greater or lesser number of votes per
share, or limits or denies voting rights, each outstanding share of stock,
regardless of class or series, shall be entitled to one (1) vote on each matter
submitted to a vote at a meeting of stockholders.

 

Section 2.08.  Proxies.  A stockholder may vote the shares owned of
record by him either in person or by proxy executed in writing (which shall
include writings sent by telex, telegraph, cable or facsimile transmission) by
the stockholder himself or by his duly authorized attorney-in-fact.  No proxy shall be valid after three (3)
years from its date, unless the proxy provides for a longer period.  Each proxy shall be in writing, subscribed
by the stockholder or his duly authorized attorney-in-fact, and dated, but it
need not be sealed, witnessed or acknowledged.

 

Section 2.09.  Action by Written
Consent.  Any action that may be taken
at any annual or special meeting of stockholders may be taken without a
meeting, without prior notice and without a vote, if a consent in writing,
setting forth the action so taken, shall be signed by the holders of
outstanding stock having not less than the minimum number of votes that would
be necessary to authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted.  Notice of the taking of such action shall be given promptly to
each stockholder that would have been entitled to vote thereon at a meeting of
stockholders and that did not consent thereto in writing.

 

Section 2.10.  List of
Stockholders.  The Secretary of the
Corporation shall prepare and make (or cause to be prepared and made), at least
ten (10) days before every meeting of stockholders, a complete list of the
stockholders entitled to vote at the meeting, arranged in alphabetical order
and showing the address of, and the number of shares registered in the name of,
each stockholder.  Such list shall be
open to the examination of any stockholder, for any purpose germane to the
meeting, during ordinary

 

 

business hours, for a period of at least ten (10) days prior to the
meeting, either at a place within the city where the meeting is to be held,
which place shall be specified in the notice of the meeting, or, if not so
specified, at the place where the meeting is to be held.  The list shall also be produced and kept at
the time and place of the during the duration thereof, and may be inspected by
any stockholder who is present.

 

Section 2.11.  Inspectors of
Election.  In advance of any meeting of
stockholders, the Board of Directors may appoint Inspectors of Election to act
at such meeting or at any adjournment or adjournments thereof.  If such Inspectors are not so appointed or
fail or refuse to act, the chairman of any such meeting may (and, upon the
demand of any stockholder or stockholder’s proxy, shall) make such an
appointment.

 

The number of Inspectors of Election shall be one (1) or three
(3).  If there are three (3) Inspectors
of Election, the decision, act or certificate of a majority shall be effective
and shall represent the decision, act or certificate of all.  No such Inspector need be a stockholder of
the Corporation.

 

Subject to any provisions of the Certificate of Incorporation, the
Inspectors of Election shall determine the number of shares outstanding, the
voting power of each, the shares represented at the meeting, the existence of a
quorum and the authenticity, validity and effect of proxies; they shall receive
votes, ballots or consents, hear and determine all challenges and questions in
any way arising in connection with the right to vote, count and tabulate all
votes or consents, determine when the polls shall close and determine the
result; and finally, they shall do such acts as may be proper to conduct the
election or vote with fairness to all stockholders.  On request, the Inspectors shall make a report in writing to the
secretary of the meeting concerning any challenge, question or other matter as
may have been determined by them and shall execute and deliver to such
secretary a certificate of any fact found by them.

 

Section 2.13.  Notice of
Stockholder Action.  Any stockholder
proposal or nomination for the election of a director by a stockholder shall be
delivered to the Corporate Secretary of the Corporation no less than ninety
(90) days nor more than one hundred twenty (120) days in advance of the first
anniversary of the company’s annual meeting held in the prior year, provided,
however, in the event the Company shall not have had an annual meeting in the
prior year, such notice shall be delivered no less than ninety (90) days nor more
than one hundred twenty (120) days in advance of May 15 of the current
year.  Such stockholder nominations must
contain (a) as to each person whom the stockholder proposes to nominate for
election or re-election as a director at the annual meeting; (w) the name, age,
business address and residence address of the proposed nominee, (x) the
principal occupation or employment or the proposed nominee, (y) the class and
number of shares of capital stock of the Corporation which are beneficially
owned by the proposed nominee, and (z) any other information relating to the
proposed nominee that is required to be disclosed in solicitations for proxies
for

 

 

election of directors pursuant
to Rule 14a under the Securities Exchange Act of 1934, as amended; and (b) as
to the stockholder giving notice of nominees for election at the annual
meeting, (x) the name and record address of the stockholder, and (y) the class
and number of shares of capital stock of the Corporation which are beneficially
owned by the stockholder.

 

ARTICLE III

 

Directors

 

Section 3.01.  Powers. 
The business and affairs of the Corporation shall be managed by and be
under the direction of the Board of Directors. 
The Board of Directors shall exercise all the powers of the Corporation,
except those that are conferred upon or reserved to the stockholders by
statute, the Certificate of Incorporation or these Bylaws.

 

Section 3.02.  Number. 
The number of directors shall be fixed from time to time by resolution
of the Board of Directors but shall not be less than three (3) nor more than
nine (9).

 

Section 3.03.  Election and Term of Office.  Each director shall serve until his
successor is elected and qualified or until his death, resignation or removal,
no decrease in the authorized number of directors shall shorten the term of any
incumbent director, and additional directors elected in connection with rights
to elect such additional directors under specified circumstances which may be
granted to the holders of any series of Preferred Stock shall not be included
in any class, but shall serve for such term or terms and pursuant to such other
provisions as are specified in the resolution of the Board of Directors
establishing such series.

 

Section 3.04.  Election of Chairman of the Board.  At the organizational meeting immediately
following the annual meeting of stockholders, the directors shall elect a
Chairman of the Board from among the directors who shall hold office until the
corresponding meeting of the Board of Directors in the next year and until his
successor shall have been elected or until his earlier resignation or
removal.  Any vacancy in such office may
be filled for the unexpired portion of the term in the same manner by the Board
of Directors at any regular or special meeting.

 

Section 3.05.  Removal. 
Any director may be removed from office only as provided in the
Certificate of Incorporation.

 

Section 3.06.  Vacancies and Additional Directorships.  Newly created directorships resulting from
death, resignation, disqualification, removal or other cause shall be filled
solely by the affirmative vote of a majority of the remaining directors then in
office, even though less than a quorum of the Board of Directors.  Any director elected in accordance with the
preceding sentence shall hold office for the remainder of the full term of the
class of directors in which the new directorship was created or the 

 

 

vacancy occurred and until such
director's successor shall have been elected and qualified.  No decrease in the number of directors
constituting the Board of Directors shall shorten the term of any incumbent
director.

 

Section 3.07.  Regular and Special Meetings.  Regular meetings of the Board of Directors
shall be held immediately following the annual meeting of the stockholders;
without call at such time as shall from time to time be fixed by the Board of
Directors; and as called by the Chairman of the Board in accordance with
applicable law.

 

Special meetings of the Board
of Directors shall be held upon call by or at the direction of the Chairman of
the Board, the President or any two (2) directors, except that when the Board
of Directors consists of one (1) director, then the one director may call a
special meeting.  Except as otherwise
required by law, notice of each special meeting shall be mailed to each
director, addressed to him at his residence or usual place of business, at
least three days before the day on which the meeting is to be held, or shall be
sent to him at such place by telex, telegram, cable, facsimile transmission or
telephoned or delivered to him personally, not later than the day before the
day on which the meeting is to be held. 
Such notice shall state the time and place of such meeting, but need not
state the purpose or purposes thereof, unless otherwise required by law, the
Certificate of Incorporation or these Bylaws ("Bylaws").

 

Notice of any meeting need not
be given to any director who shall attend such meeting in person (except when
the person attends a meeting for the express purpose of objecting, at the
beginning of the meeting, to the transaction of any business because the
meeting is not lawfully called or convened) or who shall waive notice thereof,
before or after such meeting, in a signed writing.

 

Section 3.08.  Quorum. 
At all meetings of the Board of Directors, a majority of the fixed
number of directors shall constitute a quorum for the transaction of business,
except that when the Board of Directors consists of one (1) director, then the
one director shall constitute a quorum.

 

In the absence of a quorum, the
directors present, by majority vote and without notice other than by
announcement, may adjourn the meeting from time to time until a quorum shall be
present.  At any reconvened meeting
following such an adjournment at which a quorum shall be present, any business
may be transacted which might have been transacted at the meeting as originally
notified.

 

Section 3.09.  Votes Required. Except as otherwise provided
by applicable law or by the Certificate of Incorporation, the vote of a
majority of the directors present at a meeting duly held at which a quorum is
present shall be sufficient to pass any measure.

 

Section 3.10.  Place and Conduct of Meetings.  Each regular meeting and special meeting of
the Board of Directors shall be held at a location determined as follows:  The Board of Directors may designate any
place, within or without the State of Delaware, for the holding of any meeting.

 

 

If no such designation is
made:  (a) any meeting called by a
majority of the directors shall be held at such location, within the county of
the Corporation’s principal executive office, as the directors calling the
meeting shall designate; and (b) any other meeting shall be held at such
location, within the county of the Corporation's principal executive office, as
the Chairman of the Board may designate or, in the absence of such designation,
at the Corporation's principal executive office.  Subject to the requirements of applicable law, all regular and
special meetings of the Board of Directors shall be conducted in accordance
with such rules and procedures as the Board of Directors may approve and, as to
matters not governed by such rules and procedures, as the chairman of such
meeting shall determine.  The chairman
of any regular or special meeting shall be the Chairman of the Board, or, in
his absence, a person designated by the Board of Directors.  The Secretary, or, in the absence of the
Secretary, a person designated by the chairman of the meeting, shall act as
secretary of the meeting.

 

Section 3.11.  Fees and Compensation.  Directors shall be paid such compensation as
may be fixed from time to time by resolution of the Board of Directors: (a) for
their usual and contemplated services as directors; (b) for their services as
members of committees appointed by the Board of Directors, including attendance
at committee meetings as well as services which may be required when committee
members must consult with management staff; and (c) for extraordinary services
as directors or as members of committees appointed by the Board of Directors,
over and above those services for which compensation is fixed pursuant to items
(a) and (b) in this Section 3.11. 
Compensation may be in the form of an annual retainer fee or a fee for
attendance at meetings, or both, or in such other form or on such basis as the
resolutions of the Board of Directors shall fix.  Directors shall be reimbursed for all reasonable expenses
incurred by them in attending meetings of the Board of Directors and committees
appointed by the Board of Directors and in performing compensable extraordinary
services.  Nothing contained herein
shall be construed to preclude any director from serving the Corporation in any
other capacity, such as an officer, agent, employee, consultant or otherwise,
and receiving compensation therefor.

 

Section 3.12.  Committees of the Board of Directors.  To the full extent permitted by applicable
law, the Board of Directors may from time to time establish committees,
including, but not limited to, standing or special committees and an executive
committee with authority and responsibility for bookkeeping, with authority to
act as signatories on Corporation bank or similar accounts and with authority
to choose attorneys for the Corporation and direct litigation strategy, which
shall have such duties and powers as are authorized by these Bylaws or by the
Board of Directors.  Committee members,
and the chairman of each committee, shall be appointed by the Board of
Directors.  The Chairman of the Board,
in conjunction with the several committee chairmen, shall make recommendations
to the Board of Directors for its final action concerning members to be
appointed to the several committees of the Board of Directors.  Any member of any committee may be removed
at any time with or

 

 

without cause by the Board of
Directors.  Vacancies which occur on any
committee shall be filled by a resolution of the Board of Directors.  If any vacancy shall occur in any committee
by reason of death, resignation, disqualification, removal or otherwise, the
remaining members of such committee, so long as a quorum is present, may
continue to act until such vacancy is filled by the Board of Directors.  The Board of Directors may, by resolution,
at any time deemed desirable, discontinue any standing or special
committee.  Members of standing
committees, and their chairmen, shall be elected yearly at the regular meeting
of the Board of Directors which is held immediately following the annual
meeting of stockholders.  The provisions
of Sections 3.07, 3.08, 3.09 and 3.10 of these Bylaws shall apply, MUTATIS
MUTANDIS, to any such Committee of the Board of Directors.

 

ARTICLE IV

 

Officers

 

Section 4.01.  Designation, Election and Term of
Office.  The Corporation shall have a
Chairman of the Board, a President, Treasurer, such senior vice presidents and
vice presidents as the Board of Directors deems appropriate, a Secretary and such
other officers as the Board of Directors may deem appropriate.  These officers shall be elected annually by
the Board of Directors at the organizational meeting immediately following the
annual meeting of stockholders, and each such officer shall hold office until
the corresponding meeting of the Board of Directors in the next year and until
his successor shall have been elected and qualified or until his earlier
resignation, death or removal.  Any
vacancy in any of the above offices may be filled for the unexpired portion of
the term by the Board of Directors at any regular or special meeting.

 

Section 4.02.  Chairman of the Board.  The Chairman of the Board of Directors shall
preside at all meetings of the directors and shall have such other powers and
duties as may from time to time be assigned to him by the Board of Directors.

 

Section. 4.03.  President. 
The President shall be the chief executive officer of the Corporation
and shall, subject to the power of the Board of directors, have general supervision,
direction and control of the business and affairs of the Corporation.  He shall preside at all meetings of the
stockholders and, in the absence of the Chairman of the Board, at all meetings
of the directors.  He shall have the
general powers and duties of management usually vested in the office of
president of a corporation, and shall have such other duties as may be assigned
to him from time to time by the Board of Directors.

 

Section 4.04.  Treasurer. 
The Treasurer shall keep and maintain, or cause to be kept and
maintained, adequate and correct books and records of account of the properties
and business transactions of the Corporation, including accounts of its assets,
liabilities, receipts, disbursements, gains, losses, capital, retained earnings
and shares.  The books of account shall
at all reasonable times be open to inspection by the directors.

 

 

The Treasurer shall deposit all
moneys and other valuables in the name and to the credit of the Corporation
with such depositaries as may be designated by the Board of Directors.  He shall disburse the funds of the
Corporation as may be ordered by the Board of Directors, shall render to the
President and directors, whenever they request it, an account of all of his
transactions as the Treasurer and of the financial condition of the Corporation,
and shall have such other powers and perform such other duties as may be
prescribed by the Board of Directors or the Bylaws.

 

Section 4.05.  Secretary. 
The Secretary shall keep the minutes of the meetings of the
stockholders, the Board of Directors and all committees.  He shall be the custodian of the corporate
seal and shall affix it to all documents which he is authorized by law or the
Board of Directors to sign and seal.  He
also shall perform such other duties as may be assigned to him from time to
time by the Board of Directors or the Chairman of the Board or President.

 

Section 4.06.  Assistant Officers.  The President may appoint one or more
assistant secretaries and such other assistant officers as the business of the
Corporation may require, each of whom shall hold office for such period, have
such authority and perform such duties as may be specified from time to time by
the President.

 

Section 4.07.  When Duties of an Officer May Be
Delegated.  In the case of absence or
disability of an officer of the Corporation or for any other reason that may
seem sufficient to the Board of Directors, the Board of Directors or any
officer designated by it, or the President, may, for the time of the absence or
disability, delegate such officer's duties and powers to any other officer of
the Corporation.

 

Section 4.08.  Officers Holding Two or More Offices.  The same person may hold any two (2) or more
of the above-mentioned offices.

 

Section 4.09.  Compensation.  The Board of Directors shall have the power to fix the
compensation of all officers and employees of the Corporation.  

 

Section 4.10.  Resignations.  Any officer may resign at any time by giving written notice to
the Board of Directors, to the President, or to the Secretary of the
Corporation.  Any such resignation shall
take effect at the time specified therein unless otherwise determined by the
Board of Directors.  The acceptance of a
resignation by the Corporation shall not be necessary to make it effective.

 

Section 4.11.  Removal. 
Any officer of the Corporation may be removed, with or without cause, by
the affirmative vote of a majority of the entire Board of Directors.  Any assistant officer of the Corporation may
be removed, with or without cause, by the President or by the Board of
Directors.

 

ARTICLE V

 

Indemnification of Directors, Officers

Employees and other Corporate Agents.

 

 

Section 5.01.  Action, Etc. Other Than By Or In The Right
of The Corporation.  The Corporation
shall indemnify any person who was or is a party or is threatened to be made a
party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action
by or in the right of the Corporation) by reason of the fact that he is or was
a director, officer, employee or agent of the Corporation, or is or was serving
at the request of the Corporation as a director, officer, employee, trustee or
agent of another corporation, partnership, joint venture, trust or other
enterprise (all such persons being referred to hereinafter as an
"Agent"), against expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted in good faith and in
a manner he reasonably believed to be in or not opposed to the best interests
of the Corporation, and with respect to any criminal action or proceeding, had
no reasonable cause to believe his conduct was unlawful.  The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of NOLO
CONTENDERE or its equivalent, shall not, of itself, create a presumption that
the person did not act in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the Corporation, and,
with respect to any criminal action or proceeding, that he had reasonable cause
to believe that his conduct was unlawful.

 

Section 5.02.  Action, Etc., By Or In The Right Of The
Corporation.  The Corporation shall
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action or suit by or in the right of
the Corporation to procure a judgment in its favor by reason of the fact that
he is or was an Agent against expenses (including attorneys' fees) actually and
reasonably incurred by him in connection with the defense or settlement of such
action or suit if he acted in good faith and in a manner he reasonably believed
to be in or not opposed to the best interests of the Corporation, except that
no indemnification shall be made in respect of any claim, issue or matter as to
which such person shall have been adjudged to be liable to the Corporation by a
court of competent jurisdiction, after exhaustion of all appeals therefrom,
unless and only to the extent that the court in which such action or suit was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses which such court
shall deem proper.

 

Section 5.03.  Determination of Right of
Indemnification.  Any indemnification
under Sections 5.01 or 5.02 (unless ordered by a court) shall be made by the
Corporation only as authorized in the specific case upon a determination that
indemnification of the Agent is proper in the circumstances because the Agent
has met the applicable standard of conduct set forth in Sections 5.01 and 5.02
hereof, which determination is made (a) by the Board of Directors, by a
majority vote of a quorum consisting of directors who were not parties to such
action, suit or proceeding, or (b) if such a quorum is not obtainable, or, even
if

 

 

obtainable, if a quorum of
disinterested directors so directs, by independent legal counsel in a written
opinion, or (c) by the stockholders.

 

Section 5.04.  Indemnification Against Expenses of
Successful Party.  Notwithstanding the
other provisions of this Article V, to the extent that an Agent has been
successful on the merits or otherwise, including the dismissal of an action
without prejudice or the settlement of an action without admission of
liability, in defense of any action, suit or proceeding referred to in sections
5.01 or 5.02 hereof, or in defense of any claim, issue or mater therein, such
Agent shall be indemnified against expenses, including attorneys' fees actually
and reasonably incurred by such Agent in connection therewith.

 

Section 5.05.  Advances of Expenses.  Except as limited by Section 5.06 of this
Article V, expenses incurred by an Agent in defending any civil or criminal
action, suit, or proceeding shall be paid by the Corporation in advance of the
final disposition of such action, suit or proceeding, if the Agent shall
undertake to repay such amount if it shall ultimately be determined that such
person is not entitled to be indemnified as authorized in this Article V.  Notwithstanding the foregoing, no advance
shall be made by the Corporation if a determination is reasonably and promptly
made by the Board of Directors by a majority vote of a quorum of disinterested
directors, or (if such a quorum is not obtainable or, even if obtainable, a
quorum of disinterested directors so directs) by independent legal counsel in a
written opinion, that, based upon the facts known to the Board of Directors or
counsel at the time such determination is made, such person acted in bad faith
and in a manner that such person did not believe to be in or not opposed to the
best interest of the Corporation, or, with respect to any criminal proceeding,
that such person believed or had reasonable cause to believe his conduct was
unlawful.

 

Section 5.06.  Right of Agent to Indemnification Upon
Application; Procedure Upon Application. 
Any indemnification or advance under this Article V shall be made
promptly, and in any event within ninety days, upon the written request of the
Agent, unless a determination shall be made in the manner set forth in the
second sentence of Subsection 5.05 hereof that such Agent acted in a manner set
forth therein so as to justify the Corporation's not indemnifying or making an
advance to the Agent.  The right to
indemnification or advances as granted by this Article V shall be enforceable
by the Agent in any court of competent jurisdiction, if the Board of Directors
or independent legal counsel denies the claim, in whole or in part, or if no
disposition of such claim is made within ninety (90) days.  The Agent's expenses incurred in connection
with successfully establishing his right to indemnification, in whole or in
part, in any such proceeding shall also be indemnified by the Corporation.

 

Section 5.07.  Other Rights and Remedies.  The indemnification and advancement of
expenses provided by, or granted pursuant to, this Article V shall not be
deemed exclusive of any other rights to which an Agent seeking indemnification
or advancement of expenses may be entitled under

 

 

any Bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in his
official capacity and as to action in another capacity while holding such
office, and shall, unless otherwise provided when authorized or ratified,
continue as to a person who has ceased to be an Agent and shall inure to the
benefit of the heirs, executors and administrators of such a person.  All rights to indemnification under this
Article V shall be deemed to be provided by a contract between the Corporation
and the Agent who serves in such capacity at any time while these Bylaws and
other relevant provisions of the Delaware General Corporation Law and other
applicable law, if any, are in effect. 
Any repeal or modification thereof shall not affect any rights or
obligations then existing.

 

Section 5.08.  Insurance. 
Upon resolution passed by the Board of Directors, the Corporation may
purchase and maintain insurance on behalf of any person who is or was an Agent
against any liability asserted against him and incurred by him in any such
capacity, or arising out of his status as such, whether or not the Corporation
would have the power to indemnify him against such liability under the
provisions of this Article V.

 

Section 5.09.  Constituent Corporations.  For the purposes of this Article V,
references to “the Corporation” shall include, in addition to the resulting
corporation, all constituent corporations (including all constituents of
constituents) absorbed in a consolidation or merger as well as the resulting or
surviving corporation, which, if the separate existence of such constituent
corporation had continued, would have had power and authority to indemnify its
Agents, so that any Agent of such constituent corporation shall stand in the
same position under the provisions of the Article V with respect to the
resulting or surviving corporation as that Agent would have with respect to
such constituent corporation if its separate existence had continued.

 

Section 5.10.  Other Enterprises, Fines, and Serving at
Corporation’s Request.  For purposes of
this Article V, references to “other enterprises” shall include employee
benefit plans; references to “fines” shall include any excise taxes assessed on
a person with respect to any employee benefit plan; and references to “serving
at the request of the Corporation” shall include any service as a director,
officer, employee or agent of the Corporation which imposes duties on, or
involves services by, such director, officer, employee or agent with respect to
any employee benefit plan, its participants or beneficiaries; and a person who
acted in good faith and in a manner he reasonably believed to be in the
interest of the participants and beneficiaries of an employee benefit plan
shall be deemed to have acted in a manner “not opposed to the best interests of
the Corporation” as referred to in this Article V.

 

Section 5.11.   Savings Clause.  If this Article V or any portion thereof shall be invalidated on
any ground by any court of competent, jurisdiction, then the Corporation shall
nevertheless indemnify each Agent as to expenses (including attorneys’ fees),
judgments, fines and amounts paid in settlement with respect to any action,

 

 

suit or proceeding, whether
civil, criminal, administrative or investigative, and whether internal or
external, including a grand jury proceeding and an action or suit brought by or
in the right of the Corporation, to the full extent permitted by any applicable
portion of this Article V that shall not have been invalidated, or by any other
applicable law.

 

ARTICLE VI

 

Stock

 

Section 6.01.  Certificates.  Except as otherwise provided by law, each stockholder shall be
entitled to a certificate or certificates which shall represent and certify the
number and class (and series, if appropriate) of shares of stock owned by him
in the Corporation. Each certificate shall be signed in the name of the
Corporation by the Chairman of the Board or a Vice-Chairman of the Board or the
President or a Vice President, together with the Treasurer or an Assistant
Treasurer, or the Secretary or an Assistant Secretary.  Any or all of the signatures on any
certificate may be a facsimile.  In case
any officer, transfer agent or registrar who has signed or whose facsimile
signature has been placed upon a certificate shall have ceased to be such
officer, transfer agent or registrar before such certificate is issued, it may
be issued by the Corporation with the same effect as if such person were such
officer, transfer agent or registrar at the date of issue.

 

Section 6.02.  Transfer of Shares.  Shares of stock shall be transferable on the
books of the Corporation only by the holder thereof, in person or by his duly
authorized attorney, upon the surrender of the certificate representing the shares to be
transferred, properly endorsed, to the Corporation’s transfer agent, if the
Corporation has a transfer agent, or to the Corporation’s registrar, if the
Corporation has a registrar, or to the Secretary, if the Corporation has
neither a transfer agent nor a registrar. 
The Board of Directors shall have power and authority to make such other
rules and regulations concerning the  issue,
transfer and registration of certificates of the Corporation’s stock as it may
deem expedient.

 

Section 6.03.  Transfer Agents and Registrars.  The Corporation may have one or more
transfer agents and one or more registrars of its stock whose respective duties
the Board of Directors or the Secretary may, from time to time, define.  No certificate of stock shall be valid until
countersigned by a transfer agent, if the Corporation has a transfer agent, or
until registered by a registrar, if the Corporation has a registrar.  The duties of transfer agent and registrar
may be combined.

 

Section 6.04.  Stock Ledgers. Original or duplicate stock
ledgers, containing the names and addresses of the stockholders of the
Corporation and the number of shares of each class of stock held by them, shall
be kept at the principal executive office of the Corporation or at the office
of its transfer agent or registrar.

 

Section 6.05.  Record Dates.  The Board of Directors may fix, in advance, a date as the record
date for the purpose of determining stockholders entitled to notice of, or to
vote

 

 

at, any meeting of stockholders
or any adjournment thereof, or stockholders entitled to receive payment of any
dividend or other distribution or allotment of any rights, or entitled to
exercise any rights in respect of any change, conversion or exchange of stock,
or in order to make a determination of stockholders for any other proper
purpose.  Such date in any case shall be
not more than sixty (60) days, and in case of a meeting of stockholders, not
less than ten (10) days, prior to the date on which the particular action
requiring such determination of stockholders is to be taken.  Only those stockholders of record on the
date so fixed shall be entitled to any of the foregoing rights, notwithstanding
the transfer of any such stock on the books of the Corporation after any such
record date fixed by the Board of Directors.

 

Exhibit 10.46

 

INAMED CORPORATION

 

1998 STOCK
OPTION PLAN

 

1.             Purpose of the Plan.

 

This 1998 Stock Option Plan
(the “Plan”) is intended as an incentive, to retain in the employ of INAMED
CORPORATION (the “Company”) and any Subsidiary of the Company, within the
meaning of Section 424(f) of the United States Internal Revenue Code of 1986,
as amended (the “Code”), persons of training, experience and ability, to
attract new employees, consultants, officers and directors, whose services are
considered valuable, to encourage the sense of proprietorship and to stimulate
the active interest of such persons in the development and financial success of
the Company and its Subsidiaries.

 

It is further intended that
options (the “Options”) granted pursuant to the Plan shall be Options not
intended to qualify as an incentive stock option within the meaning of Section
422 of the Code.

 

The Company intends that the
Plan meet the requirements of Rule 16b–3 (“Rule 16b–3”) promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and
that transactions of the type specified in subparagraphs (c) to (f) inclusive
of Rule 16b–3 by officers and directors of the Company pursuant to the
Plan will be exempt from the operation of Section 16(b) of the Exchange
Act.  In all cases, the terms,
provisions, conditions and limitations of the Plan shall be construed and
interpreted consistent with the Company’s intent as stated in this Section 1.

 

2.             Administration of the Plan.

 

The Board of Directors of the
Company (the “Board”) shall administer the Plan unless and until the Board
delegates administration to a Committee. 
The Board may delegate administration of the Plan to a Committee or
Committees of one or more members of the Board.  In the discretion of the Board, a Committee

 

 

Annex 3

 

 

ACTION BY BOARD OF
DIRECTORS

 

OF

 

INAMED CORPORATION

 

BY UNANIMOUS WRITTEN
CONSENT

 

The
undersigned, being all of the Directors of INAMED Corporation, a Delaware
corporation (the “Company”), and acting pursuant to Section 141 of the
Delaware General Corporation Law, hereby consent in writing to the adoption of
the following actions in lieu of a special meeting of the Board of Directors:

 

FINANCING DOCUMENTS

 

WHEREAS, there
has been presented to the Board that certain Credit Agreement, dated as of
February 1, 2000 (the “Credit Agreement” terms defined therein, unless
otherwise defined herein, being used as therein defined) to be entered into by
and between the Company, the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”),
First Union National Bank, as the Administrative Agent (in such capacity, the “Administrative
Agent”) and GMAC Commercial Credit LLC, as Documentation Agent (in such
capacity, the “Documentation Agent”), providing for $107,500,000 in
loans;

 

WHEREAS, there
has also been presented to the Board the forms of (i) the Term Notes, Revolving
Notes and Swingline Notes, (ii) the Guarantee and Collateral Agreement and the
other Security Documents to which this Company will be a party, and (iii) the
other Loan Documents to which this Company will be a party (together with the
Credit Agreement, the “Financing Documents”);

 

NOW,
THEREFORE, BE IT RESOLVED, that the Board deems it advisable and in the best
interests of the Company to execute and deliver the Financing Documents and
perform the transactions contemplated thereby and borrow the loans contemplated
under the Credit Agreement, and the Financing Documents hereby are authorized
and approved, with

 

 

such changes thereto as the
Chief Executive Officer, the President, any Vice President or any Secretary
(collectively, the “proper officers”) of the Company may approve, such approval
to be conclusively evidenced by such officer’s or officers’ execution and
delivery thereof;

 

RESOLVED
FURTHER, that the proper officers of the Company be, and each of them hereby
is, authorized, empowered and directed, in the name and on behalf of the
Company, to (i) enter into the Financing Documents, substantially on the terms
and conditions as presented and described to the Board, with such changes
thereto as the proper officers may approve, such approval to be conclusively
evidenced by such officer’s or officers’ execution and delivery thereof, and
(ii) borrow money in accordance with the terms of the Credit Agreement; and

 

RESOLVED
FURTHER, that the proper officers of the Company be, and each of them hereby
is, authorized and directed to enter into such other agreements, documents,
promissory notes, deeds of trust, mortgages, financing statements and other
instruments with respect to any of the foregoing, in such form and on such
terms and conditions as may be agreed to by the proper officers of the Company,
the Administrative Agent and the Lenders, and to take such other actions with respect
to the foregoing as may be required by the Administrative Agent and the
Lenders; and that the proper officers of the Company be, and each of them
hereby is, authorized, directed and empowered, in the name and on behalf of the
Company, to execute and deliver such other agreements, documents, promissory
notes, deeds of trust, mortgages, financing statements and other instruments
and to perform all other acts as such officers shall approve in connection with
any of the above, the execution of such agreements, documents, promissory
notes, deeds of trust, mortgages, financing statements and other instruments or
the taking of any such actions to be conclusive evidence of such approval.

 

 

GENERAL
AUTHORIZATIONS

 

RESOLVED, that
the officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to do or
cause to be done all such other acts or things, and to execute and deliver, or
cause to be executed and delivered, all such other documents, instruments,
agreements, notes, undertakings, guarantees and certificates of any kind and
nature whatsoever, as such officer or officers may deem necessary or
appropriate to effectuate or carry out the purposes and intent of the foregoing
resolutions; all such other actions to be performed in such manner, and all
such other documents, instruments, agreements, notes, undertakings, guarantees
and certificates to be executed and delivered in such form, as the officer or
officers performing or executing the same shall approve, such officer’s or
officers’ approval thereof to be conclusively evidenced by the performance of
any such other action or the execution and delivery of any such other
documents, instruments, agreements, notes, undertakings and certificates; and

 

RESOLVED
FURTHER, that all acts and things previously done by any of the officers of the
Company, on or prior to the date hereof, in the name and on behalf of the
Company, in connection with the transactions contemplated by the foregoing
resolutions, are in all respects ratified, approved, confirmed and adopted as
the acts and deeds by and on behalf of the Company.

 

* * *

[signature page attached]

 

3

 

This Unanimous
Written Consent may be executed in one or more counterparts, each of which
shall be considered as an original.  The
Secretary of the Company shall file this Unanimous Written Consent in the
minute book of the Company and it shall become part of the records of the
Company.

 

	
  Dated:
  January    , 2000

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Richard G.
  Babbitt

  	
  James E.
  Bolin

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Malcolm R.
  Currie, Ph.D.

  	
  John F.
  Doyle

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ilan K.
  Reich

  	
  Mitchell S.
  Rosenthal, M.D.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  David A.
  Tepper

  	
  John E.
  Williams, M.D.

  
					

 

4

 

Annex 4

 

 

State of Delaware

 

Office of the
Secretary of State

 

I, EDWARD J.
FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THAT
“INAMED CORPORATION” IS DULY INCORPORATED UNDER THE LAWS OF THE STATE OF
DELAWARE AND IS IN GOOD STANDING AND HAS A LEGAL CORPORATE EXISTENCE NOT HAVING
BEEN CANCELLED OR DISSOLVED SO FAR AS THE RECORDS OF THIS OFFICE SHOW AND IS
DULY AUTHORIZED TO TRANSACT BUSINESS.

 

THE FOLLOWING
DOCUMENTS HAVE BEEN FILED:

 

CERTIFICATE OF
INCORPORATION, FILED THE SEVENTEENTH DAY OF NOVEMBER, A.D. 1998, AT 6 O’CLOCK
P.M.

 

CERTIFICATE OF
MERGER, FILED THE TWENTY-SECOND DAY OF DECEMBER, A.D. 1998, AT 6 O’CLOCK P.M.

 

RESTATED
CERTIFICATE, CHANGING ITS NAME FROM “INAMED CORPORATION (DELAWARE)” TO “INAMED
CORPORATION”, FILED THE TWENTY-SECOND DAY OF DECEMBER, A.D. 1998, AT 6:01
O’CLOCK P.M.

 

CERTIFICATE OF
DESIGNATION, FILED THE NINETEENTH DAY OF NOVEMBER, A.D. 1999, AT 10 O’CLOCK
A.M.

 

AND I DO
HEREBY FURTHER CERTIFY THAT THE AFORESAID CERTIFICATES ARE THE ONLY
CERTIFICATES ON RECORD OF THE AFORESAID CORPORATION.

 

AND I DO
HEREBY FURTHER CERTIFY THAT THE FRANCHISE TAXES

 

	
   

  	
   

  	
  /s/ Edward J. Freel

  
	
  [SEAL]

  	
   

  	
  Edward J.Freel, Secretary of State

  
	
   

  	
   

  	
   

  	
   

  
	
  2967816    
  8310

  	
   

  	
  AUTHENTICATION:

  	
  0217741

  
	
  001039210

  	
   

  	
  DATE:

  	
  01-26-00

  
					

 

1

 

State of Delaware

 

Office of
the Secretary of State

 

HAVE BEEN PAID TO DATE.

 

	
   

  	
   

  	
  /s/ Edward J. Freel

  
	
  [SEAL]

  	
   

  	
  Edward J.Freel, Secretary of State

  
	
   

  	
   

  	
   

  	
   

  
	
  2967816    
  8310

  	
   

  	
  AUTHENTICATION:

  	
  0217741

  
	
  001039210

  	
   

  	
  DATE:

  	
  01-26-00

  
					

 

2

 

BIODERMIS CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is
hereby made to the Credit Agreement, dated as of February 1, 2000 (as amended
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Inamed Corporation (the “Borrower”), the Lenders, Bear Stearns
Corporate Lending Inc., as Syndication Agent (in such capacity, the “Syndication
Agent”), Bear, Stearns & Co. Inc., as sole lead arranger and sole book
manager (the “Arranger”) and the Administrative Agent. Capital­ized
terms used herein and not otherwise defined shall have the meanings assigned in
the Credit Agreement.  This certificate
is being delivered pursuant to Section 5.1(g) of the Credit Agreement.

 

I, David E.
Bamberger, hereby certify that I am the Secretary of BIODERMIS CORPORATION (the
“Company”), and as such have access to the Company’s corporate records and am
familiar with the matters therein contained and herein certified, and that:

 

1.  Attached hereto as Annex 1 are true, correct
and complete copies of (i) the Articles of Incorporation of BIO-DERMIS
CORPORATION, as filed with the Secretary of State of the State of Nevada on
December 1, 1992 and (ii) the Certificate of Amendment of Articles of Incorporation
of BIO-DERMIS CORPORATION, changing its name to “BIODERMIS CORPORATION,” as
filed with the Secretary of State of the State of Nevada on December 17, 1992.

 

2.  Attached hereto as Annex 2 is a true,
correct and complete copy of the By-laws of the Company as presently in effect
on and as of the date hereof, which By-laws are in full force and effect in
said form without modifica­tion, amendment, rescission or repeal in any
respect.

 

3.  Attached hereto as Annex 3 is a true,
correct and complete copy of resolutions adopted by unanimous written consent
in lieu of a meeting in accordance with applicable laws and the Articles of
Incorporation and By-laws of the Company, and such resolutions (i) were duly
adopted by the Board of Directors of the Company and are in full force and
effect on and as of the date hereof, not having been in any way amended,
altered or repealed, and (ii) constitute the only resolutions of the Board of
Directors of the Company relating to the subject matter

 

 

of the Credit Agreement, the
other Loan Documents and the transactions contemplated thereby.

 

4.  Attached hereto as Annex 4 is (i) a true,
correct and complete copy of a certificate from the Office of the Secretary of
State of the State of Nevada indicating that the Company is in good standing.

 

5.  There are no consents, licenses or approvals
required in connection with the execution, delivery and performance by the
Company or the validity and enforceability against the Company of the Loan
Documents to which it is a party.

 

6.  The following persons are duly qualified and
acting officers of the Company, each of whom is authorized to sign any of the
Loan Documents to which the Company is a party, and each of whom is duly
elected to the office set forth opposite his respective name; the signature
appearing opposite the name of each such officer is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K.
  Reich

  	
  PRESIDENT

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   

  	
   

  
	
  David E.
  Bamberger

  	
  SECRETARY

  	
  /s/ David E.
  Bamberger

  	
   

  
						

 

IN WITNESS WHEREOF, the undersigned has executed this Secretary’s
Certificate as of the 1 day of February 2000.

 

	
   

  	
  /s/ David E.
  Bamberger

  	
   

  
	
   

  	
  David E.
  Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K.
Reich, President of the Company, hereby certify that David E. Bamberger is the
duly elected Secretary of the Company and that the signature appearing above is
his genuine signature.

 

	
   

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
  Ilan K.
  Reich

  
	
   

  	
  President

  

 

3

 

Annex 1

 

 

[STAMP OF
STATE OF NEVADA]

 

ARTICLES OF INCORPORATION 

 

OF

 

BIO–DERMIS CORPORATION

 

 

I, the person
hereinafter named aa incorporator, for the purpose of associating to establish
a corporation, under the provisions and subject to the requirements of Title 7,
Chapter 78 of Nevada Revised Statutes, and the acts amendatory thereof, and
hereinafter sometimes referred to as the General Corporation Law of the State
of Nevada, do hereby adopt and make the following Articles of Incorporation:

 

FIRST: 
The name of the corporation (hereinafter called the corporation) is BIO–DERMIS
CORPORATION.

 

SECOND: 
The name of the corporation’s resident agent in the State of Nevada is
The Prentice-Hall Corporation System, Nevada, Inc., and the street address of
the said resident agent where process may be served on the corporation is 502
East John Street, Carson City 89706.

 

THIRD: 
This corporation is authorized to issue two classes of stock, designated
Common Stock and Preferred Stock, respectively.  The number of shares of Common Stock which the corporation is
authorized to issue is Fifteen Thousand (15,000), all of which are of a par
value of One ($1.00) dollar each. The number of shares of Preferred Stock which
the corporation is authorized to issue is Ten Thousand (10,000), all of which
are of a par value of One ($1.00) dollar each.

 

The Preferred
Stock may be issued in one or more series. 
The Board of Directors of the corporation is hereby authorized to
determine or alter the rights, preferences, privileges and restrictions granted
to or imposed on any wholly unissued class or series of Preferred Stock and to
fix and determine the number of shares and the designation of any series of
wholly unissued Preferred Stock.

 

No holder of
any of the shares of any class of the corporation shall be entitled as of right
to subscribe for, purchase, or otherwise acquire any shares of any class of the
corporation which  the
corporation proposes to issue or any rights or options which the corporation
proposes to grant for the purchase of shares of any class of the corporation or
for the purchase of any shares, bonds, securities, or obligations of the
corporation which are convertible into or exchangeable for, or which carry any

 

1

 

rights, to subscribe for,
purchase, or otherwise acquire shares of any class of the corporation; and any
and all of such shares bonds, securities, or obligations of the corporation,
whether now or hereafter authorized or created, may be issued, or may be
reissued or transferred if the same have been reacquired and have a treasury
status, and any and all of such rights and options may be granted by the Board
of Directors to such persons, firms, corporations, and associations, and for
such lawful consideration, and on such terms, as the Board of Directors in its
discretion may determine, without first offering the same, or any thereof, to
any said holder.

 

FOURTH: 
The governing board of the corporation shall be styled as a “Board of
Directors”, and any member of said Board shall be styled as a “Director.”

 

The number of
members constituting the first Board of Directors of the corporation is two
(2); and the names and the post office box or street addresses, either
residence or business, of each of said members are as follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  Donald K.
  McGhan

  	
   

  	
  3800 Howard
  Hughes Parkway, Suite 900

  Las Vegas, NV 89109

  
	
   

  	
   

  	
   

  
	
  Michael D.
  Farney

  	
   

  	
  3800 Howard
  Hughes Parkway, Suite 900

  Las Vegas, NV 89109

  

 

The number of
directors of the corporation may be increased or decreased in the manner
provided in the Bylaws of the corporation; provided, that the number of
directors shall never be less than one. 
In the interim between election of directors by stockholders entitled to
vote, all vacancies, including vacancies caused by an increase in the number of
directors and including vacancies resulting from the removal of directors by
the stockholders entitled to vote which are not filled by said stockholders,
may be filled by the remaining directors, though less than a quorum.

 

FIFTH: 
The name and the post office box or street address, either residence or
business, of the incorporator signing these Articles of Incorporation are as
follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  M. Ryan

  	
   

  	
  5670
  Wilshire Blvd., Ste. 750

  Los Angeles, CA 90036

  

 

2

 

SIXTH: 
The corporation shall have perpetual existence.

 

SEVENTH: 
The personal liability of the directors of the corporation is hereby
eliminated to the fullest extent permitted by the General Corporation Law of
the State of Nevada, as the same may be amended and supplemented.

 

EIGHTH: 
The corporation shall, to the fullest extent permitted by the General
Corporation Law of the State of Nevada, as the same may be amended and
supplemented, indemnify any and all persons whom it shall have power to
indemnify under said Law from and against any and all of the expenses,
liabilities, or other matters referred to in or covered by said Law, and the
indemnification provided for herein shall not be deemed exclusive of any other
rights to which those indemnified may be entitled under any Bylaw, agreement,
vote of stockholders or disinterested directors or otherwise, both as to action
in his official capacity and as to action in another capacity while holding
such office, and shall continue as to
a person who has ceased to be a director, officer, employee, or agent
and shall inure to the benefit of the heirs, executors, and administrators of
such a person.

 

NINTH: The corporation may engage in any
lawful activity.

 

TENTH: The corporation reserves the right to
amend, alter, change, or repeal any provision contained in these Articles of
Incorporation in the manner now or hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this
reservation.

 

IN WITNESS
WHEREOF, I do hereby execute these Articles of Incorporation on November 30,
1992.

 

	
   

  	
  /s/ M. Ryan

  	
   

  
	
   

  	
  M. Ryan,
  Incorporator

  

 

3

 

	
  STATE OF
  CALIFORNIA

  	
  )

  
	
   

  	
  ) SS.:

  
	
  COUNTY OF
  LOS ANGELES

  	
  )

  

 

On this 30th day
of November, 1992, personally appeared before me, a Notary Public in and for
the State and County aforesaid, M. Ryan, known to me to be the person described
in and who executed the foregoing Articles of Incorporation, and who acknowledged to me that she executed the
same freely and voluntarily and for the uses and purposes therein mentioned.

 

WITNESS my
hand and official seal, the day and year first above written.

 

	
   

  	
   

  	
  /s/ Jillaine E. Costelloe

  	
   

  
	
   

  	
   

  	
  Notary
  Public

  	
   

  
	
   

  	
   

  
	
  [SEAL OF
  NOTARY PUBLIC]

  	
   

  

 

4

 

Annex 2

 

 

BYLAWS

 

OF

 

BIODERMIS CORPORATION

(a Nevada corporation)

 

 

ARTICLE 
I

 

STOCKHOLDERS

 

1. CERTIFICATES
REPRESENTING STOCK.  Every holder of
stock in the corporation shall be entitled to have a certificate signed by, or
in the name of, the corporation by the Chairman or Vice-Chairman of the Board
of Directors, if any, or by the President or a Vice-President and by the
Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary
of the corporation or by agents designated by the Board of Directors,
certifying the number of shares owned by him in the corporation and setting
forth any additional statements that may be required by the General Corporation
Law of the State of Nevada (General Corporation Law).  If any such certificate is countersigned or otherwise
authenticated by a transfer agent or transfer clerk or by a registrar other
than the corporation, a facsimile of the signature of any such officers or
agents designated by the Board may be printed or lithographed upon such
certificate in lieu of the actual signatures. 
If any officer or officers who shall have signed, or whose facsimile
signature or signatures shall  have
been used on any certificate or certificates shall cease to be such officer or
officers of the corporation before such certificate or certificates shall have
been delivered by the corporation, the certificate or certificates may
nevertheless be adopted by the corporation and be issued and delivered as
though the person or persons who signed such certificate or certificates, or
whose facsimile signature or signatures shall have been used thereon, had not
ceased to be such officer or officers of the corporation.

 

Whenever the
corporation shall be authorized to issue more than one class of stock or more
than one series of any class of stock, the certificates representing stock of
any such class or series shall  set
forth thereon the statements prescribed by the General Corporation Law.  Any restrictions on the transfer or registration
of transfer of any shares of stock of any class or series shall be noted
conspicuously on the certificate representing such shares.

 

1

 

The
corporation may issue a new certificate or stock in place of any certificate
theretofore issued by it, alleged to have been lost, stolen, or destroyed, and
the Board of Directors may require the owner of any lost, stolen, or destroyed
certificate, or his legal representative, to give the corporation a bond
sufficient to indemnify the corporation against any claim that may be made
against it on account of the alleged loss, theft, or destruction or any such
certificate or the issuance of any such new certificate.

 

2. FRACTIONAL
SHARE INTERESTS.  The corporation
shall not be obliged  to but may execute and deliver a certificate for or
including a fraction of a share.  In
lieu of executing and delivering a certificate for a fraction of a share, the
corporation may pay to any person otherwise entitled to become a holder of a
fraction of a share an amount in cash specified for such purpose as the value
thereof in the resolution of the Board of Directors, or other instrument
pursuant to which such fractional share would otherwise be issued, or, if not
specified therein, then as may be determined for such purpose by the Board of
Directors of the issuing corporation: or may execute and deliver registered or
bearer scrip over the manual or facsimile signature of an officer of the
corporation or of its agent for that purpose, exchangeable as therein provided
for full share certificates, but such scrip shall not entitle the holder to any
rights as a stockholder except as therein provided. Such script may provide
that it shall become void unless the rights of the holders are exercised within
a specified period and may contain any other provisions or conditions that the
corporation shall deem advisable. 
Whenever any such scrip shall cease to be exchangeable for full share
certificates, the shares that would otherwise have been issuable as therein
provided shall be deemed to be treasury shares unless the scrip shall contain
other provision for their disposition.

 

3. STOCK
TRANSFERS.  Upon compliance with
provisions restricting the transfer or registration of transfer of shares of
stock, if any, transfers or registration of transfers of shares of stock of the
corporation shall be made only on the stock ledger of the corporation by the
registered holder thereof, or by his attorney thereunto authorized by power of
attorney duly executed and filed with the Secretary of the corporation or with
a transfer agent or a registrar, if any, and on surrender of the certificate or
certificates for such shares of stock properly endorsed and the payment of all
taxes, if any, due thereon.

 

4. RECORD
DATE FOR STOCKHOLDERS.  For the
purpose of determining the stockholders entitled to notice of or to vote at any
meeting of stockholders or any adjournment thereof, or to express consent to
corporate action in writing without a meeting, or entitled to receive payment
of any dividend or other distribution or the allotment of any rights, or
entitled to exercise any rights in respect of any change, conversion, or
exchange of stock or for the purpose of any other lawful action, the directors
may fix, in advance, a record date, which shall not be more than sixty days nor
less than ten days before the date of such meeting, nor more than sixty days
prior to any other action.  If no record
date is fixed, the record date for determining stockholders entitled to notice
of

 

2

 

or to vote at a meeting or
stockholders shall be at the close of business on the day next preceding the
day on which notice is given, or, if notice is waived, at the close of business
on the day next preceding the day on which the meeting is held: the record date
for determining stock holders entitled to express consent to corporate action
in writing without a meeting, when no prior action by the Board of Directors is
necessary, shall be the day on which  the
first written consent is expressed; and the record date for determining
stockholders for any other purpose shall be at the close of business on the day
on which  the Board of Directors
adopts the resolution relating thereto. 
A determination of stockholders of record entitled to notice of or to
vote at any meeting of stockholders shall apply to any adjournment of the
meeting; provided, however, that the Board of Directors may fix a new record
date for the adjourned meeting.

 

5. MEANING
OF CERTAIN TERMS.  As used in these
Bylaws in respect of the right to notice of a meeting of stockholders or a waiver
thereof or to participate or vote thereat or to consent or dissent in writing
in lieu of a meeting, as the case may be, the, term “share” or “shares” or
“share of stock” or “shares of stock” or “stockholders” to “stockholders”
refers to an outstanding share or shares of stock and to a holder or holders of
record of outstanding shares of stock when the corporation is authorized to
issue only one class of shares of stock, and said reference is also intended to
include any outstanding share or shares of stock and any holder or holders of
record of outstanding shares of stock of any class upon which or upon whom the
Articles of Incorporation confers such rights where there are two or more
classes or series of shares of stock or upon which or upon whom the General
Corporation Law confers such rights notwithstanding that the articles of
incorporation may provide for more than one class or series of shares of stock,
one or more of which are limited or denied such rights thereunder; provided,
however, that no such right shall vest in the event of an increase or a
decrease in the authorized number of shares of stock of any class or series
which is otherwise denied voting rights under the provisions of the Articles of
Incorporation.

 

6. STOCKHOLDER
MEETINGS.

 

- TIME.  The annual meeting shall be held on the date
and at the time fixed, from time to time, by the directors, provided, that the
first annual meeting shall be held on a date within thirteen months after the
organization of the corporation, and each successive annual meeting shall be
held on a date within thirteen months after the date of the preceding annual
meeting.  A special meeting shall be
held on the date and at the time fixed by the directors.

 

- PLACE.  Annual meetings and special meetings shall
be held at such  place,
within or without the State of Nevada, as the directors may, from time to time,
fix.

 

3

 

- CALL.  Annual meetings and special meetings may be
called by the directors or by any officer instructed by the directors to call
the meeting.

 

- NOTICE OR
WAIVER OF NOTICE.  Notice of all
meetings shall be in writing and signed by the President or a Vice-President,
or the Secretary, or an Assistant Secretary, or by such other person or persons
as the directors must designate.  The
notice must state the purpose or purposes for which the meeting is called and
the time when, and the place, where it is to be held.  A copy of the notice must be either delivered personally or
mailed postage prepaid to each stockholder not less than ten nor more than sixty
days before the meeting.  If mailed, it
must be directed to the stockholder at his address as it appears upon the
records of the corporation.  Any
stockholder may waive notice of any meeting by a writing signed by him, or his
duly authorized attorney, either before or after the meeting; and whenever
notice of any kind is required to be given under the provisions of the General
Corporation Law, a waiver thereof in writing and duly signed whether before or
after the time stated therein, shall be deemed equivalent thereto.

 

- CONDUCT
OF MEETING.  Meetings of the
stockholders shall be presided over by one of the following officers in the
order of seniority and if present and acting the, Chairman of the Board, if
any, the Vice-Chairman of the Board, if any, the President, a Vice-President,
or, if none of the foregoing is in office and present and acting, by a chairman
to be chosen by the stockholders.  The
Secretary of the corporation, or in his absence, an Assistant Secretary, shall
act as secretary of every meeting, but if neither the Secretary nor an
Assistant Secretary is present the Chairman of the meeting shall appoint a
secretary of the meeting.

 

- PROXY
REPRESENTATION.  Every stockholder
may authorize another person or persons to act for him by proxy in any manner
described in or otherwise authorized by, the provisions of Section 78.355 of
the General Corporation Law.

 

- INSPECTORS.  The directors, in advance of any meeting,
may, but need not, appoint one or more inspectors of election to act at the
meeting or any adjournment thereof.  If
an inspector or inspectors are not appointed, the person presiding at the
meeting may, but need not, appoint one or more inspectors.  In case any person who may be appointed as
an inspector fails to appear or act, the vacancy may be filled by appointment
made by the directors in advance of the meeting or at the meeting by the person
presiding thereat.  Each inspector, if
any, before entering upon the discharge of his duties, shall take and sign an
oath faithfully to execute the duties of inspector at such meeting with strict
impartiality and according to the best of his ability.  The inspectors, if any, shall determine the
number of shares of stock outstanding and the voting power of each, the shares
of stock represented at the meeting, the existence of a quorum, the validity
and effect of proxies, and shall receive votes, ballots or consents, hear and
determine all challenges and questions arising in connection with the right to
vote, count and tabulate all votes, ballots or consents,

 

4

 

determine the result, and do
such acts as are proper to conduct the elections or vote with fairness to all
stockholders.  On request of the person
presiding at the meeting, the inspector or inspectors, if any, shall make a
report in writing of any challenge, question or matter determined by him or
them and execute a certificate of any fact found by him or them.

 

- QUORUM.  Stockholders holding at least a majority of
the voting power are necessary to constitute a quorum at a meeting of stockholders
for the transaction of business, unless the action to be taken at the meeting
shall require a greater proportion. The stockholders present may adjourn the
meeting despite the absence of a quorum.

 

- VOTING.  Each share of stock shall entitle the holder
thereof to one vote.  In the election of
directors, a plurality of the votes cast shall elect.  Any other action shall be authorized by stockholders who hold at
least a majority of the voting power and are present at a meeting at which a
quorum is present, except where the General Corporation Law, the Articles of
Incorporation, or these Bylaws prescribe a different percentage of votes,
and/or a different exercise of voting power. 
In the election of directors, voting need not be by ballot; and, except
as otherwise may be provided by the General Corporation Law, voting by ballot
shall not be required for any other action.

 

7. STOCKHOLDER
ACTION WITHOUT MEETINGS.  Except as
may otherwise be provided by the General Corporation Law, any action required or
permitted to be taken at a meeting of the stockholders may be taken without a
meeting if a written consent thereto is signed by stockholders holding at least
a majority of the voting power; provided that if a different proportion of
voting power is required for such an action at a meeting, then that proportion
of written consents is required. In no instance where action is authorized by
written consent need a meeting of stockholders be called or noticed.  Any written consent shall be subject to the
requirements of Section 78.320 of the General Corporation Law and of any other
applicable provision of law.

 

ARTICLE II

 

DIRECTORS

 

1. FUNCTIONS
AND DEFINITION.  The business and
affairs of the corporation shall be managed by the Board of Directors of the
corporation.  The Board of Directors
shall have authority to fix the compensation of the members thereof for
services in any capacity.  The use of
the phrase “whole Board” herein refers to the total number of directors which
the corporation would have if there were no vacancies.

 

2. QUALIFICATIONS
AND NUMBER.   Each director must be
at least 18 years of age.  A director
need not be a stockholder or a resident of the State of Nevada.  The initial Board of Directors shall consist
of 2 persons.  Thereafter the number of

 

5

 

directors constituting the
whole board shall be at least one. Subject to the foregoing limitation and
except for the first Board of Directors, such number may be fixed from time to
time by action of the stockholders or of the directors, or, if the number is
not fixed, the number shall be 2. The number of directors may be increased or
decreased by action of the stockholders or of the directors.

 

3. ELECTION
AND TERM.  Directors may be elected
in the manner prescribed by the provisions of Sections 78.320 through 78.335 of
the General Corporation Law of Nevada. The first Board of Directors shall hold
office until the first election of directors by stockholders and until their
successors are elected and qualified or until their earlier resignation or
removal.  Any director may resign at any
time upon written notice to the corporation. Thereafter, directors who are
elected at an election of directors by stockholders, and directors who are
elected in the interim to fill vacancies and newly created directorships, shall
hold office until the next election of directors by stockholders and until
their successors are elected and qualified or until their earlier resignation
or removal. In the interim between elections of directors by stockholders,
newly created directorships and any vacancies in the Board of Directors,
including any vacancies resulting from the removal of directors for cause or
without cause by the stockholders and not filled by said stockholders, may be
filled by the vote of a majority of the remaining directors then in office,
although less than a quorum, or by the sole remaining director.

 

4. MEETINGS.

 

- TIME.  Meetings shall be held at such time as the
Board shall fix, except that the first meeting of a newly elected Board shall
be held as soon after its election as the directors may conveniently assemble.

 

- PLACE.  Meetings shall be held at such place within
or without the State of Nevada as shall be fixed by the Board.

 

- CALL.  No call shall be required for regular
meetings for which the time and place have been fixed. Special meetings may be
called by or at the direction of the Chairman of the Board, if any, the
Vice-Chairman of the Board, if any, of the President, or of a majority of the
directors in office.

 

- NOTICE OR
ACTUAL OR CONSTRUCTIVE WAIVER.  No
notice shall be required for regular meetings for which the time and place have
been fixed. Written, oral, or any other mode of notice of the time and place
shall be given for special meetings in sufficient time for the convenient assembly
of the directors thereat.  Notice if any
need not be given to a director or to any member of a committee of directors
who submits a written waiver of notice signed by him before or after the time
stated therein.

 

6

 

- QUORUM
AND ACTION.  A majority of the whole
Board shall constitute a quorum except when a vacancy or vacancies prevents
such majority, whereupon majority of the directors in office shall constitute a
quorum, provided, that such majority shall constitute at least one-third of the
whole Board.  A majority of the
directors present, whether or not a quorum is present, may adjourn a meeting to
another time and place. Except as the Articles of Incorporation or these Bylaws
may otherwise provide, and except as otherwise provided by the General Corporation
Law, the act of a majority of the directors present at a meeting at which a
quorum is present is the act of the Board. 
The quorum and voting provisions herein stated shall not be construed as
conflicting with any provisions of the General Corporation Law and these Bylaws
which govern a meeting of directors held to fill vacancies and newly created
directorships in the Board or action of disinterested directors.

 

Members of the
Board or of any committee which may be designated by the Board may participate in a meeting of the Board or of any
such committee, as the case may be, by means of a telephone conference or
similar method of communication by which all persons participating in the
meeting bear each other.  Participation
in a meeting by said means constitutes presence in person at the meeting.

 

- CHAIRMAN
OF THE MEETING.  The Chairman of the
Board, if any and if present and acting, shall preside at all meetings.
Otherwise, the Vice-Chairman of the Board, if any and if present and acting, or
the President, if present and acting, or any other director chosen by the
Board, shall preside.

 

5. REMOVAL
OF DIRECTORS.  Any or all of the
directors may be removed for cause or without cause in accordance with the
provisions of the General Corporation Law.

 

6. COMMITTEES.  Whenever its number consists of two or more,
the Board of Directors may designate one or more committees which have such
powers and duties as the Board shall determine. Any such committee, to the
extent provided in the resolution or resolutions of the Board, shall have and
may exercise the powers and authority of the Board of Directors in the management of the business
and affairs of the corporation and may authorize the seal or stamp of the
corporation to be affixed to all papers on which the corporation desires to
place a seal or stamp. Each committee must include at least one director. The
Board of Directors may appoint natural persons who are not directors to serve
on committees.

 

7. WRITTEN
ACTION.  Any action required or
permitted to be taken at a meeting of the Board of Directors or of any
committee thereof may be taken without a meeting if, before or after the
action, a written consent thereto is signed by all the members of the Board or
of the committee, as the case may be.

 

7

 

ARTICLE III

 

OFFICERS

 

1. The
corporation must have a President, a Secretary, and a Treasurer, and, if deemed
necessary, expedient, or desirable by the Board of Directors, a Chairman of the
Board, a Vice-Chairman of the Board, an Executive Vice-President, one or more
other Vice-Presidents, one or more Assistant Secretaries, one or more Assistant
Treasurers, and such other officers and agents with such titles as the
resolution choosing them shall designate. Each of any such officers shall be
chosen by the Board of Directors or chosen in the manner determined by the
Board of Directors.

 

2. QUALIFICATIONS.  Except as may otherwise be provided in the
resolution choosing him, no officer other than the Chairman of the Board, if
any, and the Vice-Chairman of the Board, if any, need be a director.

 

Any person may
hold two or more offices, as the directors may determine.

 

3. TERM OF
OFFICE.  Unless otherwise provided
in the resolution choosing him, each officer shall be chosen for a term which
shall continue until the meeting of the Board of Directors following the next
annual meeting of stockholders and until his successor shall have been chosen
and qualified.

 

Any officer
may be removed, with or without cause, by the Board of Directors or in the
manner determined by the Board.

 

Any vacancy in
any office may be filled by the Board of Directors or in the manner determined
by the Board.

 

4. DUTIES
AND AUTHORITY.  All officers of the
corporation shall have such authority and perform such duties in the management
and operation of the corporation as shall be prescribed in the resolution
designating and choosing such officers and prescribing their authority and
duties, and shall have such additional authority and duties as are incident to
their office except to the extent that such resolutions or instruments may be
inconsistent therewith.

 

8

 

ARTICLE  IV

 

REGISTERED OFFICE

 

The location
of the initial registered office of the corporation in the State of Nevada is
the address of the initial resident agent of the corporation, as set forth in
the original Articles of Incorporation.

 

The
corporation shall maintain at said registered office a copy, certified by the
Secretary of State of the State of Nevada, of its Articles of Incorporation,
and all amendments thereto, and a copy, certified by the Secretary of the
corporation, of these Bylaws, and all amendments thereto. The corporation shall
also keep at said registered office a stock ledger or a duplicate stock ledger,
revised annually, containing the names, alphabetically arranged, of all persons
who are stockholders of the corporation, showing their places of residence, if
known, and the number of shares held by them respectively or a statement
setting out the name of the custodian of the stock ledger or duplicate stock
ledger, and the present and complete post office address, including street and
number, if any, where such stock ledger or duplicate stock ledger is kept.

 

ARTICLE  V

 

CORPORATE SEAL OR STAMP

 

The corporate
seal or stamp shall be in such form as the Board of Directors may prescribe.

 

ARTICLE VI

 

FISCAL YEAR

 

The fiscal
year of the corporation shall be fixed, and shall be subject to change, by the
Board of Directors.

 

ARTICLE VII

 

CONTROL OVER BYLAWS

 

The power to
amend, alter, and repeal these Bylaws and to make new Bylaws shall be vested in
the Board of Directors subject to the Bylaws, if any, adopted by the
stockholders.

 

9

 

CERTIFICATE OF SECRETARY

 

KNOW ALL PERSONS BY THESE
PRESENTS:

 

The
undersigned, secretary of BIODERMIS CORPORATION, a Nevada corporation (the
“Corporation”), does hereby certify that the above and foregoing Bylaws were
duly adopted as the Bylaws of the Corporation at a meeting of the Board of
Directors duly held on December 21, 1992.

 

IN WITNESS
WHEREOF, the undersigned has subscribed his name and affixed the seal of the
Corporation on the date set forth below.

 

	
  December 21,
  1992

  	
   

  	
  /s/ Michael
  D. Farney

  
	
  Date

  	
  Michael D.
  Farney, Secretary

  
	
   

  	
   

  

 

 

Annex 3

 

 

ACTION BY BOARD OF
DIRECTORS

 

OF

 

BIODERMIS CORPORATION

 

BY UNANIMOUS WRITTEN
CONSENT

 

The
undersigned, being all of the Directors of BIODERMIS CORPORATION, a Nevada
corporation (the “Company”), and acting pursuant to Section 78.315 of
the Nevada Revised Statutes, hereby consent in writing to the adoption of the
following actions in lieu of a special meeting of the Board of Directors:

 

GUARANTEE AND
COLLATERAL AGREEMENT

 

WHEREAS,
INAMED Corporation (“Inamed”) intends to enter into that certain Credit
Agreement dated as of February 1,  2000 (the “Credit Agreement”), by
and among Inamed, the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent;

 

WHEREAS,
pursuant to the terms of the Credit Agreement, the Company, as a subsidiary of
Inamed, is required to guaranty all of Inamed’s obligations under the Credit
Agreement (the “Obligations”, as defined under the Credit Agreement), by
entering into that certain Guarantee and Collateral Agreement (the “Guarantee
and Collateral Agreement”) dated of even date with the Credit Agreement, a
copy of which has been presented to the Board;

 

WHEREAS,
pursuant to the terms and conditions of the Credit Agreement, the Company, as a
subsidiary of Inamed, is required to secure payment and performance of the
Obligations, also by entering into that same Guarantee and Collateral Agreement
(as defined above), whereby the Company would grant to Administrative Agent,
for the benefit of the Administrative Agent and the Lenders, a perfected, first
priority Lien on all of its right, title and interest in all of its personal
property, including but not limited to all capital stock of its domestic

 

 

subsidiaries, 65% of the
capital stock of its foreign subsidiaries, accounts, fixtures, contract rights,
intellectual property, licenses, material property, etc.

 

WHEREAS, the
Board of Directors of the Company has determined that in order to give effect
to the Credit Agreement, it is advisable and in the best interests of the
Company that the Company enter into the Guarantee and Collateral Agreement and
each of the transactions contemplated thereby;

 

NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors deems it advisable and
in the best interests of the Company to enter into the Guarantee and Collateral
Agreement and any other documents contemplated thereby and such documents
hereby are authorized and approved, with such changes thereto as the Chairman,
the President, any Vice President or the Secre­tary of the Company (the “proper
officers”) may approve, such approval to be conclusively evidenced by such
officer’s or officers’ execution and delivery thereof;

 

RESOLVED
FURTHER, that the proper officers of the Company be, and each of them hereby
is, authorized, empowered and directed, in the name and on behalf of the
Company, to enter into the Guarantee and Collateral Agree­ment, substantially
on the terms and conditions as presented and described to the Board, with such
changes thereto as the proper officers may approve, such approval to be
conclusively evidenced by such officer’s or officers’ execution and delivery
thereof; and

 

RESOLVED
FURTHER, that the proper officers of the Company be, and each of them hereby
is, authorized and directed to enter into such other agreements, documents,
promissory notes, and instruments with respect to any of the foregoing, in such
form and on such terms and conditions as may be agreed to by the proper
officers of the Company, Administrative Agent and the Lenders, and to take such
other actions with respect to the foregoing as may be required by
Administrative Agent and the Lenders; and that the proper officers of the
Company be, and each of them hereby is, authorized, directed and empowered, in
the name and on behalf of the Company, to execute and deliver such other
agreements, documents, promissory notes, deeds of trust, mortgages and other
instruments and to perform all other acts as such officers shall approve in
connection with any of the above, the execution of such agreements, documents,
promissory notes and other instruments or the taking of any such actions to be
conclusive evidence of such approval.

 

2

 

GENERAL
AUTHORIZATIONS

 

RESOLVED, that
the officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to do or
cause to be done all such other acts or things, and to execute and deliver, or
cause to be executed and delivered, all such other documents, instruments,
agreements, notes, undertakings, guarantees and certificates of any kind and
nature whatsoever, as such officer or officers may deem necessary or
appropriate to effectuate or carry out the purposes and intent of the foregoing
resolutions; all such other actions to be performed in such manner, and all
such other documents, instruments, agreements, notes, undertakings, guarantees
and certificates to be executed and delivered in such form, as the officer or
officers performing or executing the same shall approve, such officer’s or
officers’ ap­proval thereof to be conclusively evidenced by the performance of
any such other action or the execution and delivery of any such other
documents, instruments, agreements, notes, undertakings and certificates; and

 

RESOLVED
FURTHER, that all acts and things previously done by any of the officers of the
Company, on or prior to the date hereof, in the name and on behalf of the
Company, in connection with the transactions contemplated by the foregoing
resolutions, are in all respects ratified, approved, confirmed and adopted as
the acts and deeds by and on behalf of the Company.

 

* * *

 

3

 

This Unanimous
Written Consent may be executed in one or more counterparts, each of which
shall be considered as an original.  The
Secretary of the Company shall file this Unanimous Written Consent in the
minute book of the Company and it shall become part of the records of the
Company.

 

	
  Dated:  February 1, 2000

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard
  G. Babbitt

  
	
   

  	
  Richard G.
  Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K.
  Reich

  
	
   

  	
  Ilan K.
  Reich

  

 

4

 

Annex 4

 

 

SECRETARY OF STATE

 

[SEAL OF NEVADA]

 

STATE OF NEVADA

CERTIFICATE OF EXISTENCE

(INCLUDING AMENDMENTS)

 

I, DEAN HELLER, the duly
elected and qualified Nevada Secretary of State, do hereby certify that I am,
by the laws of said State, the custodian of the records relating to filings by
corporations, limited-liability companies, limited partnerships,
limited-liability partnerships and business trusts pursuant to Title 7 of the
Nevada Revised Statutes which are either presently in a status of good standing
or were in good standing for a time period subsequent of 1976 and am the proper
officer to execute this certificate.

 

I FURTHER CERTIFY, that the
following is a list of all organizational documents on file in this office for

 

BIODERMIS CORPORATION

 

Articles of Incorporation for BIO–DERMIS CORPORATION filed
December 1, 1992.

 

Certificate of Amendment to
Articles of Incorporation changing name to BIODERMIS CORPORATION filed December
17, 1992.

 

 

I further certify that the
records of the Nevada Secretary of State, at the date of this certificate,
evidence, BIODERMIS CORPORATION,
as a corporation duly organized under the laws of Nevada and existing under and
by virtue of the laws of the State of Nevada since December 1, 1992, and is in
good standing in this state.

 

	
   

  	
  IN WITNESS
  WHEREOF, I have hereunto set my hand

  and affixed the Great Seal of State, at my office,

  in Carson City, Nevada, on January 31, 2000.

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Dean Heller

  	
   

  
	
   

  	
  Secretary of State

  
	
   

  	
   

  
	
  By

  	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Certification Clerk

  
					

 

 

[ILLEGIBLE PAGE]

 

 

BIOENTERICS CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is
hereby made to the Credit Agreement, dated as of February 1, 2000 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Inamed Corporation (the “Borrower"), the Lenders, Bear
Stearns Corporate Lending Inc., as Syndication Agent (in such capacity, the “Syndication
Agent”), Bear, Stearns & Co. Inc., as sole lead arranger and sole book
manager (the “Arranger”) and the Administrative Agent.  Capitalized terms used herein and not
otherwise defined shall have the meanings assigned in the Credit
Agreement.  This certificate is being
delivered pursuant to Section 5.1(g) of the Credit Agreement.

 

I, David E.
Bamberger, hereby certify that I am the Secretary of BioEnterics Corporation
(the “Company”), and as such have access to the Company's corporate records and
am familiar with the matters therein contained and herein certified, and that:

 

1.             Attached hereto as Annex 1 is a
true, correct and complete copy of the Articles of Incorporation of the
Company, as filed with the Secretary of State of the State of California on
August 8, 1991.

 

2.             Attached hereto as Annex 2 is a
true, correct and complete copy of the By-laws of the Company as presently in
effect on and as of the date hereof, which By-laws are in full force and effect
in said form without modification, amendment, rescission or repeal in any
respect.

 

3.             Attached hereto as Annex 3 is a
true, correct and complete copy of resolutions adopted by unanimous written
consent in lieu of a meeting in accordance with applicable laws and the
Articles of Incorporation and By-laws of the Company, and such resolutions (i)
were duly adopted by the Board of Directors of the Company and are in full
force and effect on and as of the date hereof, not having been in any way
amended, altered or repealed, and (ii) constitute the only resolutions of the
Board of Directors of the Company relating to the subject matter of the Credit
Agreement, the other Loan Documents and the transactions contemplated thereby.

 

 

4.             Attached hereto as Annex 4 is (i) a
true correct and complete copy of a certificate from the Office of the
Secretary of State of the State of California indicating that the Company is
authorized to exercise all its corporate powers, rights and privileges and is
in good legal standing and (ii) a certificate from the Franchise Tax Board of
the State of California indicating that the Company is in good standing and has
no unpaid liability.

 

5.             There are no consents, licenses or
approvals required in connection with the execution, delivery and performance
by the Company or the validity and enforceability against the Company of the
Loan Documents to which it is a party.

 

6.             The following persons are duly
qualified and acting officers of the Company, each of whom is authorized to
sign any of the Loan Documents to which the Company is a party, and each of
whom is duly elected to the office set forth opposite his respective name; the
signature appearing opposite the name of each such officer is his authentic
signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K.
  Reich

  	
  EXECUTIVE
  VICE PRESIDENT

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   

  	
   

  
	
  David E.
  Bamberger

  	
  SECRETARY

  	
  /s/ David E.
  Bamberger

  	
   

  

 

IN WITNESS WHEREOF, the undersigned has executed this Secretary’s
Certificate as of the 1 day of February,
2000.

 

	
   

  	
  /s/ David E.
  Bamberger

  	
   

  
	
   

  	
  David E.
  Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K.
Reich, Executive Vice President of the Company, hereby certify that David E.
Bamberger is the duly elected Secretary of the Company and that the signature
appearing above is his genuine signature.

 

	
   

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
  Ilan K.
  Reich

  
	
   

  	
  Executive
  Vice President

  

 

3

 

Annex 1

 

 

SECRETARY OF STATE

 

CERTIFICATE OF FILING

 

I, BILL JONES, Secretary of
State of the State of California, hereby certify:

 

That on the 8th day of
August, 1991, BIOENTERICS CORPORATION became incorporated under the
laws of the State of California by filing its Articles of Incorporation in this
office and that said Articles of Incorporation were duly recorded.

 

Further, that said Articles of
Incorporation constitutes the only document on file in this office, that no
documents amendatory and/or supplementary thereto (including Agreements of
Merger, Restated Articles of Incorporation and Certificates of Determination of
Preferences) have been filed to date.

 

	
   

  	
  IN WITNESS WHEREOF, I execute this
  certificate and affix the Great Seal of the State of California this day of
  January 24, 2000.

  
	
   

  	
   

  
	
   

  	
  /s/ Bill
  Jones

  	
   

  
	
  [SEAL]

  	
  BILL JONES

  
	
   

  	
  Secretary of
  State

  
				

 

 

[GRAPHIC]

 

SECRETARY OF STATE

 

I, BILL JONES, Secretary of
State of the State of California, hereby certify:

 

That the attached transcript of 2 page(s) was prepared by and in this
office from the record on file, of which it purports to be a copy, and that it
is full, true and correct.

 

	
   

  	
  IN WITNESS WHEREOF, I execute this certificate and
  affix the Great Seal of the State of California this day of January 24, 2000.

  
	
   

  
	
  [SEAL]

  	
  /s/ Bill Jones

  	
   

  
	
   

  	
  Secretary of
  State

  
	
   

  	
   

  
				

 

 

ARTICLES OF INCORPORATION

 

OF

 

BIOENTERICS CORPORATION

 

I.

 

The name of
the corporation is BioEnterics Corporation.

 

II.

 

The purpose of
this corporation is to engage in any lawful act or activity for which a
corporation may be organized under the Gen­eral Corporation Law of California
other than the banking business, the trust company business or the practice of
a profession permitted to be incorporated by the California Corporations Code.

 

III.

 

The name and
address in the State of California of this corporation’s initial agent for
service of process is:

 

Mr. Michael D. Farney

c/o Inamed Corporation

1035 North Cindy Lane

Carpinteria, California 93013

 

IV.

 

This
corporation is authorized to issue only one class of shares of stock,
designated Common Stock, and the total number and class of shares which this
corporation is authorized to issue is one hundred thousand (100,000).

 

V.

 

A.  Limitation of Director Liability.  The liability of the directors of the
corporation for monetary damages shall be elimi­nated to the fullest extent
permissible under California law.

 

B.  Indemnification of Agents for Breach of
Duty to Corporation and Shareholders. 
The corporation, may, by bylaw, agreement or otherwise, indemnify its
agents (as that term is defined in Section 317 of the California Corporations
Code) in excess of that expressly permitted by such Section 317, for breach of
duty to the corporation and its shareholders, to the fullest extent permissible
under California law; provided, however, that such indemnification shall not
extend to any acts or omissions or transactions from which a director may not
be relieved of liability

 

1

 

as set forth in the exception
to Section 204 (a) (10) of the California Corporations Code or as to
circumstances in which indemnity is expressly prohibited by Section 317 of the
California Corporations Code.

 

C.  Subsequent Amendment.  No amendment, termination or repeal of this
Article V. or of relevant provisions of the California Corporations Code or any
other applicable laws shall affect or diminish in any way the rights of any
agent (as that term is def­ined in Section 317 of the California Corporations
Code) to indemnification under the provisions hereof in connection with any
action or proceeding arising out of, or relating to, any actions, transactions
or facts occurring prior to the final adoption of such amendment, termination
or repeal.

 

D.  Savings Clause.  If this Article V. or any portion hereof
shall be invalidated on any ground by any court of competent jurisdiction, then
the corporation shall nevertheless indemnify each person as to any expenses,
judgments, fines, settlements and other amounts incurred by such person in
connection with any threatened, pending or completed action or proceeding,
whether civil, criminal, administrative or investigative, including but not
limited to any action by or in  the
right of the corporation to procure a judgment in  its favor, to the fullest extent permissible under
applicable law.

 

E. Subsequent
Legislation.  If the California
Corporations Code or any other applicable law is amended after approval by the
shareholders of this Article V. to further expand the indemni­fication
permitted to directors or officers of the corporation, then the corporation
shall indemnify such person to the fullest extent permissible under the
California Corporations Code or other applicable law, as so amended.

 

	
  Dated: 

  	
  August 7,
  1991

  	
   

  	
  /s/ Joseph
  E. Nida

  
	
   

  	
  Joseph E.
  Nida, Incorporator

  
	
   

  	
   

  
	
   

  	
  [SEAL OF
  SECRETARY OF STATE]

  

 

2

 

Annex 2

 

 

BYLAWS OF

 

BIOENTERICS CORPORATION,

 

a California corporation

 

ARTICLE I

SHAREHOLDERS’ MEETINGS

 

Section 1.               Place of Meetings.

All meetings
of the shareholders of this corporation (“Corporation”) shall be held at the
principal executive office of the Corporation in the State of California, or
such other place within or without the State as may be designated from time to
time by the Board of Directors or as may be consented to in writing by all of
the persons entitled to vote thereat and not present at the meeting.

 

Section 2                Annual Meeting.

The annual
meeting of the shareholders shall be held within one hundred twenty (120) days
after the closing of the accounting year, at which time the shareholders shall
elect a Board of Directors, consider reports of the affairs of the Corporation,
and transact such other business as may properly be brought before the
meeting.  In the event the annual meeting  of shareholders is not held
within the time above specified, the Board of Directors shall cause a meeting
in lieu thereof to be held as soon thereafter as is convenient, and any
business transacted or election held at such meeting shall be as valid as if
the meeting had been held on the date above specified.

 

Section 3.               Special Meetings.

Special
meetings of the shareholders, for the purpose of taking any action permitted to
be taken by the shareholders under the California Corporations Code and the
Articles of Incorporation, may be called at any time by the Chairman of the
Board, the President, the Board of Directors, or by any two or more members
thereof, or by one or more shareholders holding not less than ten percent (10%)
of the voting power of the Corporation.

 

Section 4.               Notice of Meetings.

Notice of
meetings, annual or special, shall be given in writing to each shareholder
entitled to vote at that meeting by the Secretary or Assistant Secretary, or,
if there be no such officers, by the Chairman of the Board or the President, or
in the case of neglect or refusal, by any person or persons entitled to call a
meeting, not less than ten (10) nor more than sixty (60) days before such
meeting.

 

1

 

Such written notice shall be given either personally or by other means
of written communication, addressed to the shareholder at the address of the
shareholder appearing on the books of the Corporation or given by the
shareholder to the Corporation for the purpose of notice; or if no such address
appears or is given, at the place where the principal office of the corporation
is located or by publication at least once in a newspaper of general
circulation in the county in which the principal executive office is located.
The giving of notice as provided by these Bylaws may be omitted only to the
extent and in the manner expressly permitted by the California Corporations
Code.

 

Section 5.               Notice of Adjournment.

When a meeting
is adjourned for more than forty-five (45) days or if after the adjournment a
new record date is fixed for the adjourned meeting, a notice of the adjourned meeting
shall be given as in the case of an original meeting.  Except as stated above, it shall not be necessary to give any
notice of the adjourned meeting, other than by announcement of the time and
place thereof at the meeting at which such adjournment is taken, and the
Corporation may transact at the adjourned meeting any business which might have
been transacted at the original meeting.

 

Section 6.               Contents
of Notice.

Notice of any
meeting of shareholders shall specify:

 

a.  The place, the date and the time
of the meeting;

b.  Those matters which the
Board, at the time of the mailing of the notice, intends to present for action
by the shareholders;

c.  If Directors are to be
elected, the names of nominees intended at the time of the notice to be
presented by management for election;

d.  The general nature of any
proposal to take action with respect to the approval of (i) a contract or other
transaction with an interested Director, (ii) an amendment of the Articles of Incorporation, (iii) the
reorganization of the Corporation within the meaning of the California Corporations Code, (iv) the voluntary
dissolution of the Corporation, or (v) a distribution in dissolution other than
in accordance with the rights of any outstanding preferred shares; and

e.  Such other matters, if any,
as may be expressly required by statute.

 

Section 7.               Consent to Shareholder’s
Meeting.

The transactions
of any meeting of shareholders, however called and noticed, shall be
valid as those had at a meeting duly held after regular call and notice, if a
quorum is present either in person or by proxy, and if, either before or after
the meeting, each of the persons entitled to vote, not present in person or by
proxy, signs a written waiver of notice or a consent to the holding of the meeting
or an approval of the minutes

 

2

 

of the meeting.  All such
waivers, consents and approvals shall be filed with the corporate records or
made a part of the minutes of the meeting. 
A waiver of notice or a consent to the holding of any meeting of
shareholders need not specify the business transacted at or the purpose of any
regular or special meeting, other than any proposal approved or to be approved
at such meeting, the general nature of which was required by Section 6.d. of
these Bylaws to be stated in the notice of the meeting.

 

Section 8.               Action Without a Meeting.

Unless otherwise provided in the Articles of Incorporation,
anyaction which may be taken at any annual or special meeting of the
shareholders, other than the election of Directors, may be taken without a
meeting and without prior notice, if a consent in writing, setting forth the
action so taken shall be signed by the holders of outstanding shares having not
less than the minimum number of votes necessary to authorize or take such
action at a meeting at which all  shareholders
entitled to vote were present and voted.

 

Unless the consents of all shareholders entitled to vote have been
solicited in writing, prompt notice shall be given of the taking of any
corporate action approved by shareholders without a meeting by less than
unanimous written consent to those shareholders entitled to vote who have not
consented in writing, and, as to any action with respect to (i) a contract or
other transaction with an interested Director, (ii) the indemnification of any present or former agent of the
Corporation within the meaning of Section 317 of the California Corporations
Code, (iii) any reorganization within the meaning of  the California Corporations Code, or (iv)
a distribution in dissolution other than in accordance with the rights of any
outstanding preferred shares, such notice shall be given at least ten (10) days
before the consummation of such action.

 

A director may be elected at any time to fill a vacancy not filled by
the Board by the written consent of persons holding a majority of the
outstanding shares entitled to vote for the election of Directors, and any
required notice of any such election shall promptly be given as provided above.  Directors may not otherwise be elected
without a meeting unless a consent in writing, setting forth the action so
taken, is signed by all of the persons
who would be entitled to vote for the election of Directors.

 

Section 9.               Quorum; Adjournment.

The holders of a majority of the shares entitled to vote, represented
in person or by proxy, shall be required and shall constitute a quorum at all
meetings of the shareholders for the transaction of business, except as
otherwise provided by the Articles of Incorporation.
 The shareholders present at a
duly called or held meeting at which a quorum is present may continue to

 

3

 

do business until adjournment
notwithstanding the withdrawal of enough shareholders to leave less than a
quorum, if any action taken (other than adjournment) is approved by at least a
majority of the shares required to constitute a quorum.  If a quorum shall not be present or
represented at any meeting of the shareholders, the meeting may be adjourned from
time to time by majority vote of the shares entitled to vote at the meeting who
are present in person or represented by proxy, until the requisite number of
voting shares shall be present.

 

Section 10.             Voting Rights; Cumulative
Voting.

Subject to the provisions of Sections 702 through 704, inclusive, of
the California Corporations Code, only persons in whose names shares entitled
to vote stand on the stock records of the Corporation on the record date shall
be entitled to vote at meetings of the shareholders.  Every shareholder entitled to vote shall be entitled to one vote
for each of such shares, and the affirmative vote of a majority of the shares
represented at the meeting and entitled to vote on any matter shall be the act
of the shareholders, unless the vote of a greater number or voting by classes
is required by the California Corporations Code or by the Articles of Incorporation.

 

Every shareholder entitled to vote at any election of Directors shall
have the right to cumulate his votes to the extent and in the manner provided
by Section 708 of the California Corporations Code.

 

Section 11.             Proxies.

Every shareholder entitled to vote or to execute consents may do so
either in person or by written proxy executed in accordance with the provisions
of the California Corporations Code and filed with the Secretary or Assistant
Secretary of the Corporation.

 

Section 12.             Inspectors of Election.

Before any meeting of shareholders, the Board of Directors may appoint
any persons other than nominees for office to act as Inspectors of Election at
such meeting or any adjournment thereof. 
If no Inspectors of Election are appointed, or if an appointment is
vacated by an Inspector who fails to appear or fails or refuses to act, the
Chairman of any such meeting may, and on the request of any shareholder or his
proxy shall, make such appointment or fill such vacancy at the meeting.  The Inspectors shall be in the number
prescribed by and shall have the duties set forth in Section 707 of the
California Corporations Code.

 

4

 

ARTICLE II

DIRECTORS

 

Section 1.               Powers.

Subject to the
limitations of the Articles of Incorporation, the Bylaws, and of the California
Corporations Code as to action to be authorized or approved by the
shareholders, all corporate powers shall be exercised by or under the authority
of, and the business and affairs of the Corporation shall be controlled by, the
Board of Directors.

 

Section 2.               Number and
Qualification of Directors.

The authorized
number of directors of this Corporation shall be two (2) until changed in the
manner provided in this Section 2.

 

A change in the exact number of authorized directors of the Corporation
or in the minimum or maximum number of directors who may be authorized to serve
on the Board of Directors, or a change from a variable to a fixed Board, may
only be made by an amendment of the Articles of Incorporation or by a Bylaw
amending this Section 2 duly adopted by the vote or written consent of the
holders of a majority of the outstanding shares entitled to vote.  Except as otherwise provided by the
California Corporations Code, the authorized number of Directors shall not be
reduced below three (3), and no Bylaw or amendment of the Articles of
Incorporation reducing the authorized number of Directors to less than five (5)
shall be adopted if the votes cast against its adoption at a meeting, or the
shares not consenting in the case of action by written consent, are equal to
more than one-sixth (16-2/3%) of the outstanding shares entitled to vote.

 

Section 3.               Election of Directors.

The Directors
shall be elected by ballot at the annual  meeting
of the shareholders to hold office until the next annual meeting  and until their successors
are elected and qualified.  Their term
of office shall begin immediately after election.

 

Section 4.               Vacancies.

A vacancy in
the Board of Directors shall be deemed to exist in the case of the death,
resignation or removal of any Director, if a Director has been declared of
unsound mind by order of Court or convicted of a felony, if the authorized
number of Directors is increased, or if the shareholders shall fail, either at
a meeting at which an increase in the number of Directors is authorized, or at
an adjournment thereof, or at any other time, to elect the full number of
authorized Directors.

 

Vacancies in
the Board of Directors, except for a vacancy created by the removal of a
Director, may be filled by a majority of the remaining  Directors,  and each Director so elected

 

5

 

shall hold office until his
successor is elected at an annual or special meeting of the shareholders.  A vacancy created by the removal of a
Director may be filled only by a vote of the majority of the shares entitled to
vote at a duly held meeting of the shareholders, or by the written consent of
the holders of a majority of the outstanding shares.

 

The shareholders may at any time elect a Director or Directors to fill
any vacancies not filled by the Directors.

 

If any Director tenders his resignation to the Board of Directors to
take effect at a future time, the Board or the shareholders shall have the
power to elect a successor to take office at such time as the resignation shall
become effective.

 

No reduction of the authorized number of Directors shall have the
effect of removing any Director prior to the expiration of his term of office.

 

Section 5.               Removal Of Directors.

The entire
Board of Directors, or any individual Director, may be removed from office in
the manner provided by the California Corporations Code.

 

Section 6.               Place Of Meeting.

Meetings of
the Board of Directors shall be held at the principal executive office of the
Corporation, or as designated from time to time by resolution of the Board of
Directors or written consent of all of the members of the Board.  Any meeting shall be valid wherever held if
held with the written consent of all members of the Board of Directors, given
either before or after the meeting and filed with the Secretary or Assistant
Secretary of the Corporation.

 

Section 7.               Annual Meeting.

A regular
annual meeting of the Board of Directors shall be held without notice at the
place of the annual meeting of shareholders immediately following the
adjournment thereof, for the purpose of organization, election of officers, and
the transaction of such other business as may properly come before the meeting.

 

Section 8.               Other Regular Meetings.

Other regular
meetings of the Board of Directors shall be held in the discretion of the Board
of Directors, and if so held, at such times, dates and places as the Board of
Directors may determine.

 

Section 9.               Special Meetings; Notices.

Special
meetings of the Board of Directors for any purpose or purposes may be called at
any time by the Chairman of the Board, the President, any Vice-President, the
Secretary, or by any two (2) Directors.

 

6

 

Written notice of the time and place of special meetings shall be
delivered or communicated personally to each Director by telephone, or by
telecopy or mail, charges prepaid, addressed to him at his address as it is
shown upon the records of the Corporation, or if such address is not readily
ascertainable, at the place in which the meetings of the Directors are
regularly held.  If such notice is
mailed or telecopied, it shall be deposited in the United States mail or
delivered at least forty-eight (48) hours prior to the time of the holding of
the meeting.  In case such notice is
delivered personally or by telephone, it shall be so delivered at least
twenty-four (24) hours prior to the time of holding the meeting.  Such mailing, telecopying or delivery,
personally or by telephone, as above provided shall be due, legal and personal
notice to such Director.

 

Section 10.             Waiver of Notice.

The
transactions of any meeting of the Board of Directors, however called and
noticed or wherever held, are as valid as though had at a meeting regularly
called and noticed if all the Directors are present and sign a consent to the
holding of the meeting on the records of the meeting, or if a majority of the
Directors are present and each of those not present, either before or after the
meeting, signs a written waiver of notice, or a consent to holding the meeting,
or an approval of the minutes of the meeting. 
All such waivers, consents, or  approvals
shall be filed with the corporate records or made a part of the minutes of the
meeting.

 

Section 11.             Action of Directors Without
Meeting.

Any action
required or permitted to be taken by the Board of Directors may be taken
without a meeting, if all members of the Board shall individually or
collectively consent in writing to such action. Such written consent or
consents shall be filed with the minutes of the proceedings of the Board, and
shall have the same force and effect as a unanimous vote of the Directors.

 

Section 12.             Action at a Meeting; Quorum.

A majority of
the authorized number of Directors shall be necessary to constitute a quorum
for the transaction of business, and the action of a majority of the Directors
present at a meeting duly held at which a quorum is present, when duly
assembled, is valid as a corporate act unless a greater number is required by
the Articles of Incorporation, these Bylaws, or the California Corporations
Code.  Directors may participate in a
meeting through the use of conference telephone or similar communications equipment as long as
all members participating in the meeting can hear one another, and such
participation shall constitute the presence in person at the meeting.

 

Section 13.             Adjournment.

A majority of
the Directors present, whether or not a quorum, may adjourn from time to time
by fixing a new time and

7

 

place prior to taking
adjournment, but if any meeting is adjourned for more than twenty-four (24)
hours, notice of any adjournment to another time or place shall be given prior
to the time of the adjourned meeting to any Directors not present at the time
the adjournment was taken.

 

Section 14.             Committees.

The Board of
Directors may, by resolutions adopted by a majority of the authorized number of
Directors, establish one or more committees, including an Executive Committee,
each consisting of two or more Directors, to serve at the pleasure of the
Board.  The Board of Directors may
delegate to any such committee any of the powers and authority of the Board of
Directors in the business and affairs of the Corporation, except those powers
specifically reserved to the Board of Directors by the provisions of Section
311 of the California Corporations Code. 
The Board shall prescribe the manner in which the proceedings of the
Executive Committee or any other Committee shall be conducted, and may
designate one or more alternate Directors to replace any absent committee
members at any meeting of the Committee.

 

ARTICLE III

OFFICERS

 

Section 1.               Officers.

The officers
of the Corporation shall be elected by and shall hold office at the pleasure of
the Board of Directors. These officers shall include a President, one or more
Vice Presidents, a Secretary and a Chief Financial Officer, and may include a
Chairman of the Board of Directors.

 

Section 2.               Election.

After their
election, the Board of Directors shall meet and organize by electing a
President, one or more Vice Presidents, a Secretary and a Chief Financial
Officer, who may be, but need not be, members of the Board of Directors, and
such additional officers provided by these Bylaws as the Board of Directors
shall determine to be appropriate.  Any
two or more offices may be held by the same person.

 

Section 3.               Compensation and Tenure of
Office.

The
compensation and tenure of office of all of the officers of the Corporation
shall be fixed by the Board of Directors.

 

Section 4.               Removal and Resignation.

Any officer
may be removed, either with or without cause, by a majority of the Directors at
the time in office, at any regular or special meeting of the Board, or except
in the case of

 

8

 

an officer chosen by the Board
of Directors, by any officer upon whom such power of removal may be conferred
by the Board of Directors, subject in each case, however, to any rights of an
officer under any contract of employment.

 

Any officer may resign at any time by giving written notice to the
Board of Directors or to the President, or to the Secretary or an Assistant
Secretary of the Corporation without prejudice, however, to any rights of the
Corporation under any contract to which such officer is a party.

 

Any such resignation shall take effect at the date of receipt of such
notice or at any later time specified in the notice; and unless otherwise
specified therein, the acceptance of such resignation shall not be necessary to
make it effective.

 

Section 5.               Vacancies.

Any vacancy in
an office occurring because of death, resignation, removal, disqualification or
any other cause may be filled by the Board of Directors at any regular or
special meeting of the Board, or in such manner as may otherwise be prescribed
in the Bylaws for appointment to such office.

 

Section 6.               Chairman of the Board.

The Chairman
of the Board, if there be one, shall, when present, preside at all meetings of
the shareholders and of the Board of Directors, and shall have such other
powers and duties as from time to time shall be prescribed by the Board of
Directors.

 

Section 7.               President.

The President
shall be the general manager of the Corporation and, subject to the control of
the Board of Directors, shall be chief executive officer of the Corporation and
shall have general supervision, direction and control of the business and
affairs of the Corporation.  If the
Corporation has no Chairman of the Board, the President shall also have the
duties prescribed above for the Chairman of the Board.

 

Section 8.               Vice Presidents.

In the absence
or the disability of the President, the Vice Presidents, in order of their rank
as fixed by the Board of Directors, or if not ranked, the Vice President
designated by the Directors, or if no such designation is made by the Board of
Directors, the Vice President designated by the President, shall perform the
duties and exercise the powers of the President, and shall perform such other
duties and have such other powers as the Board of Directors shall prescribe.

 

Section 9.               Secretary.

The Secretary
shall keep, or cause to be kept, a book of Minutes at the principal executive
office or such other place as the Board of Directors may order, of all the
proceedings

 

9

 

of its shareholders and the
Board of Directors and Committees of the Board, with the time and place of
holding of meetings, whether regular or special, and if special, how
authorized, the notice thereof given, the names of those present at Directors’
meetings, the number of shares present or represented at shareholders'
meetings, and the proceedings of these meetings.

 

The Secretary shall keep, or cause to be kept, at the principal
executive office or at the office of the Corporation’s transfer agent, a share
register or a duplicate share register, showing the names of the shareholders
and their addresses, the number and classes of shares held by each, the number
and date of certificates issued for the same, and the number and date of
cancellation of every certificate surrendered for cancellation.

 

The Secretary shall give, or cause to be given, notice of all the
meetings of the shareholders and of the Board of Directors required by the
Bylaws or by law to be given; he shall keep the seal of the Corporation and
affix the seal to all documents requiring a seal; and he shall have such other
powers and perform such other duties as may be prescribed by the Board of
Directors or the Bylaws.

 

Section 10.             Assistant Secretary.

The Assistant
Secretary, if there is one, shall have all the same rights, duties, powers and
privileges as the Secretary and may act in his place and stead whenever
necessary or desirable.

 

Section 11.             Chief Financial Officer.

The Chief Financial Officer shall keep and
maintain, or cause to be kept and maintained, adequate and correct accounts of
the properties and business transactions of the Corporation, including accounts
of its assets, liabilities, receipts, disbursements, gains, losses, capital,
surplus and shares.  The books of
account shall at all reasonable times be open to inspection by any Director.

 

The Chief Financial Officer shall deposit all
moneys and other valuables in the name and to the credit of the Corporation
with such depositories as may be designated by the Board of Directors.  He shall disburse the funds of the Corporation
as may be ordered by the Board of Directors, shall render to the President and
Directors, whenever they so request, an account of all his transactions as
Chief Financial Officer and of the financial condition of the Corporation, and
shall have such other powers and perform such other duties as may be prescribed
by the Board of Directors or the Bylaws.

 

Section 12.             Subordinate Officers.

Subordinate
Officers, including but not limited to, Assistant Secretaries, Treasurers and
Assistant Treasurers, or

 

10

 

agents, as the business of the
Corporation may require, may from time to time be appointed by the Board of
Directors, the President, or by any officer empowered to do so by the Board of
Directors, and shall have such authority and shall perform such duties as are
provided in the Bylaws or as the Board of Directors may from time to time
determine.

 

ARTICLE IV

CORPORATE RECORDS, INSPECTION, VOTING SHARES

IN NAME OF CORPORATION

 

Section 1.               Records.

The Corporation
shall maintain adequate and correct books and records of account of its
business and properties.  All of such
accounts, books and records shall be kept at its principal executive office in
the State of California, or at such other location as may be fixed by the Board
of Directors from time to time.

 

Section 2.               Inspection.

The accounting
books and records and Minutes of the proceedings of the shareholders and the
Board of Directors and its Committees shall be open to inspection by the
shareholders from time to time and in the manner provided in Section 1601 of
the California Corporations Code, and every Director shall have the right to
inspect and copy all books, records and documents of the Corporation, and to
inspect its properties, in the manner provided by Section 1602 of the
California Corporations Code.

 

Section 3.               Voting Shares in Name of
Corporation.

Shares
standing in the name of this Corporation may be voted or represented and all
rights incident to those shares may be exercised on behalf of the Corporation
by the President, or if he is unable or refuses to act, by a Vice President or
by such other person as the Board of Directors may determine.

 

ARTICLE V

CERTIFICATES AND TRANSFER OF SHARES

 

Section 1.               Certificates for Shares.

Every holder of shares in the Corporation shall be entitled to have a certificate, in such form and device
as the Board of Directors may designate, certifying the number of shares
and the classes or series of shares owned by the shareholder, and containing a
statement setting forth the office or agency of the Corporation from which the
shareholder may obtain, upon request and without charge, a copy of the
statement of any rights, preferences, privileges, and restrictions granted to
or imposed upon each class or series of shares authorized to be issued and upon
the holders of those shares, and any other legend or statement as may be
required

 

11

 

by Section 418 of the
California Corporations Code and the Federal and California corporate
securities laws.

 

Every certificate for shares shall be signed in the name of the
Corporation by the President or Vice President and the Secretary or an
Assistant Secretary.  Any signature on
the certificate may be by facsimile, provided that at least one signature,
which may but need not be that of the Corporation’s registrar or transfer
agent, if any, shall be manually signed.

 

Section 2.               Transfer on the Books.

Upon surrender
to the Secretary or Assistant Secretary or to the transfer agent of the Corporation
of a certificate for shares duly endorsed or accompanied by proper evidence of
succession, assignment or authority to transfer, it shall be the duty of the
Corporation to issue a new certificate to the person entitled thereto, cancel
the old certificate and record the transaction upon its books.

 

Section 3.               Lost or Destroyed Certificates.

A new
certificate may be issued without the surrender and cancellation of an old
certificate that is lost, apparently destroyed or wrongfully taken when:  (a) the request for the issuance of a new
certificate is made within a reasonable time after the owner of the old
certificate has notice of its loss, destruction or theft; and (b) such request
is received by the Corporation prior to its receipt of notice that the old
certificate has been acquired by a bona fide purchaser; and (c) the owner of
the old certificate gives an indemnity bond or other adequate security
sufficient in the judgment of the Corporation to indemnify it against any
claim, expense or liability resulting from the issuance of a new certificate.
In the event of the issuance of a new certificate, the rights and liabilities
of the Corporation, and of the holders of the old and new certificates, shall
be governed by the provisions of Sections 8404 and 8405 of the California
Commercial Code.

 

Section 4.               Transfer Agents and Registrars.

The Board of
Directors may appoint one or more transfer agents or transfer clerks, and one
or more registrars, which shall be banks or trust companies, either domestic or
foreign, at such times and places as the requirements of the Corporation may
necessitate and the Board of Directors may designate.

 

Section 5.               Record Date.

The Board of
Directors may fix, in advance, a record date for the purpose of determining
shareholders entitled to notice of and to vote at any meeting of shareholders,
to consent to corporate action in writing without a meeting, to receive any
report, to receive any dividend or other distribution or allotment of any right
or to exercise rights with respect to any change, conversion or exchange of
shares.  The record date so fixed shall

 

12

 

not be more than sixty (60)
days prior to any event for the purpose for which it is fixed, and shall not be
less than ten (10) days prior to the date of any meeting of the
shareholders.  If no such record date is
fixed by the Board of Directors, then the record date shall be that date
prescribed by Section 701 of the California Corporations Code.

 

ARTICLE VI

CORPORATE SEAL

 

The
corporate seal shall be circular in form, and shall have inscribed thereon the
name of the Corporation, the date of its incorporation, and the words
“INCORPORATED CALIFORNIA.”

 

ARTICLE VII

AMENDMENTS

 

Section 1.               By
Shareholders.

The Bylaws may be repealed or amended, or new Bylaws may be adopted, by the affirmative vote of a
majority of the outstanding shares entitled to vote or by the written consent of shareholders entitled to vote
such shares, except as otherwise provided by the California Corporations Code
or by the Articles of Incorporation.

 

Section 2.               By
Directors.

Subject to the right of shareholders as provided in Section 1 of this
Article VII to adopt, amend or repeal Bylaws, the Board of Directors may adopt,
amend or repeal Bylaws; provided, however, that no Bylaw
or amendment changing the number of Directors of the Corporation shall be
adopted other than in the manner provided by Section 2 of Article II of these
Bylaws.

 

Section 3.               Records
of Amendments.

Any amendment or new Bylaw adopted by the shareholders or Board of
Directors shall be copied in the appropriate place in the Minute book with the
original Bylaws, and the repeal of any Bylaw shall be entered on the original
Bylaws together with the date and manner
of such repeal.  The original or
a copy of the Bylaws as
amended to date shall be open to inspection by the shareholders at the
Corporation’s principal executive office in California at all reasonable times
during office hours.

 

ARTICLE VIII

WAIVER OF ANNUAL REPORT

 

The
requirement that this corporation send an annual report to its shareholders is
hereby expressly waived.

 

13

 

ARTICLE IX

INDEMNIFICATION OF OFFICERS, DIRECTORS, AND AGENTS

 

Section 1.               Definitions.

For the
purposes of this Article IX the following definitions shall apply:

 

a.            “Agent” means any
person who (a) is or was a director, officer, employee or other agent of the
Corporation, or (b) is or was serving at the request of the Corporation as a
director, officer, employee or agent of another foreign or domestic
corporation, joint venture, trust or other enterprise, or (c) was a director,
officer, employee or agent of a foreign or domestic corporation which was a
predecessor corporation of the Corporation or of another enterprise at the
request of such predecessor corporation.

 

b.            “Proceeding” means
any threatened, pending or completed action or proceeding, whether civil,
criminal, administrative or investigative.

 

c.            “Expenses” includes
without limitation attorneys’ fees and any expenses of establishing a right to
indemnification under Section 5 of this Article IX below.

 

d.            “Independent Legal
Counsel” means an attorney mutually agreeable to the Corporation and the agent
seeking indemnification, with such attorney to be designated within ten (10)
days after notice by one party to the other. If the Corporation and the agent
seeking indemnity cannot agree upon the selection of such attorney within such
ten (10) day period, an attorney shall be selected by the Corporation from
among five (5) attorneys designated in a writing by the agent delivered to the
Corporation within five (5) days after the end of the ten (10) day period;
provided, however, that the attorneys so designated have a minimum of ten (10)
years experience in corporate law, and are each full partners (or the
equivalent) in a law firm with at least five (5) attorneys.  If the Corporation and the agent cannot
agree upon the selection of the attorney, and if the agent fails to designate
his selection of five (5) attorneys within the five (5) day period, the
Corporation alone shall choose the attorney.

 

Section 2.               Proceedings Other than By or
In the Right of the Corporation.

The
Corporation shall indemnify any person who was or is a party or is threatened
to be made a party to any proceeding (other than an action by or in the right
of the Corporation to procure a judgment in its favor) by reason of the fact
that such person is or was an agent of the Corporation against expenses,
judgments, fines, settlements and other amounts actually and reasonably
incurred in connection with such proceeding if such person acted in good faith
and in a manner such person
reasonably

 

14

 

believed to be in the best
interest of the Corporation and, in  the
case of a criminal proceeding, had no  reasonable
cause to believe the conduct of such person was unlawful.  The termination of any proceeding by
judgment, order, settlement, conviction or upon a plea of nolo contendere or
its equivalent shall not, of itself, create a presumption that the person did
not act in good faith and in a manner which the person reasonably believed to
be in the best interests of the Corporation or that the person had reasonable
cause to believe that the person’s conduct was unlawful.

 

Section 3.               Proceedings By or In the Right
of the Corporation.

The
Corporation shall indemnify any person who was or is a party or is threatened
to be made a party to any threatened, pending or completed action by or in the
right of the Corporation to procure a judgment in its favor by reason of the
fact that such person is or was an agent of the Corporation, against expenses
actually and reasonably incurred by such person in connection with the defense
or settlement of such action if such person acted in good faith, in a manner
such person reasonably believed to be in the best interest of the Corporation
and its shareholders.

 

Section 4.               Determination of Right to
Indemnification.

To the extent
that a person who is or was an agent of the Corporation has been successful on
the merits in defense of any proceeding referred to in Section 2 or 3 of this
Article IX above or in the defense of any claim, issue or matter therein, such
person shall be indemnified against expenses actually and reasonably incurred
by such person in connection therewith.

 

Except as provided in the first paragraph of this Section 4 above, any
indemnification under Section 2 or 3 of this Article IX above shall be made by
the Corporation only if authorized in the specific case, upon a determination
that indemnification of the agent is proper in the circumstances because the
agent has met the applicable standard of conduct set forth in Section 2 or 3 of
this Article IX above, by any of the following: (a) a majority vote of a quorum
consisting of directors who are not parties to such action or proceeding; (b)
if such a quorum of directors is not obtainable, by independent legal counsel
in a written opinion; (c) approval or ratification by the affirmative vote of a
majority of the shares represented and voting at a duly held meeting at which a
quorum is present (which shares voting affirmatively also constitute at least a
majority of the required quorum) ; (d) written consent of the shareholders
under Section 603 of the California Corporations Code; (e) the affirmative vote
or written consent of such greater proportion (including all) of the shares of
any class or series as may be provided in the Articles of Incorporation or in
the California Corporations Code, for all or

 

15

 

any specified shareholder
action; or (f) the court in which such proceeding is or was pending upon
application made by the Corporation or the agent or the attorney or other
person rendering service in connection with the defense, whether or not such
application by the agent, attorney or other person is opposed by the
Corporation.

 

The shares owned by the person to be indemnified shall not be entitled
to vote on any written consent or affirmative vote set forth in the second
paragraph of Section 4 of this Article IX above.

 

Section 5.               Indemnity for Expenses of
Establishing Right to Indemnification.

To the extent
that a person who is or was an agent of the Corporation has been successful on
the merits in defense of any proceeding referred to in Section 2 or 3 of this
Article IX above, or in defense of any claim, issue or matter therein, such
person shall also be indemnified against expenses of establishing a right to
indemnification actually and reasonably incurred by such person in connection
therewith.

 

If authorized in the specific case, upon a determination that
indemnification of such person is proper in the circumstances because such
person has met the applicable standard of conduct set forth in Section 2 or 3
of this Article IX above, by any of the following: (a) approval or ratification
by the affirmative vote of a majority of the shares represented and voting at a
duly held meeting at which a quorum is present (which shares voting
affirmatively also constitute at least a majority of the required quorum); (b)
written consent of the shareholders under Section 603 of the California
Corporations Code, or (c) the affirmative vote or written consent of such
greater proportion (including all) of the shares of any class or series as may
be provided in the Articles of Incorporation or in the California Corporations
Code, for all or any specified shareholder action; such person shall also be
indemnified against any expenses of establishing a right to indemnification actually  and
reasonably incurred therewith.

 

The shares owned by the person to be indemnified shall not be entitled
to vote on any written consent or affirmative vote set forth in the second
paragraph of Section 5 of this Article IX above.

 

Section 6.               Procedure for Indemnification.

Any
indemnification under Section 2, 3, or 5 of this Article IX above, or advance
under Section 7 of this Article IX below, shall be made promptly, and in any
event within sixty (60) days, upon the written request of the agent.  The right to indemnification or advances as
granted by this Article IX shall be enforceable by the agent in any court of
competent jurisdiction, if

 

16

 

the Corporation denies such
request in whole or in part or if no disposition thereof is made within sixty
(60) days. It shall be a defense to any such action that the agent has not met
the standard of conduct set forth in Section 2, 3, or 5 of this Article IX
above, or regarding a claim for advances the agent has not delivered the
required undertaking under Section 7 of this Article IX below, but the burden
of proving the defense is on the Corporation.

 

Section 7.               Advances.

Expenses
incurred in defending any proceeding shall be advanced by the Corporation prior
to the final disposition of such proceeding upon receipt of any undertaking by
or on behalf of the person claiming a right to be indemnified under this
Article IX to repay such amount if it shall be determined ultimately that the
agent is not entitled to be indemnified as authorized in this Article IX.

 

Section 8.               Other Rights and Continuation
of Rights  to  Indemnification.

The
indemnification provided by this Article IX shall not be deemed exclusive of
any other rights to which those seeking indemnification may be entitled under
any bylaw, agreement, approval of shareholders or disinterested directors or
otherwise, both as to action in an official capacity and as to action in any
other capacity while holding such office, to the extent such additional rights
to indemnification are authorized in the Articles of Incorporation.  The rights to indemnity hereunder shall
continue as to a person who has ceased to be a director, officer, employee or
agent and shall inure to the benefit of the heirs, executors, and administrators
of the person.  Nothing contained in
this Article IX shall affect any right to indemnification to which persons
other than such directors and officers may be entitled by contract or
otherwise.

 

Section 9.               Insurance.

This
Corporation may purchase and maintain
insurance on behalf of any agent of the Corporation against any
liability asserted or incurred by the agent in such capacity or arising out of
the agent’s status as such whether or not the Corporation would have the power
to indemnify the agent against
such liability under the provisions of this Article IX.  The fact that the Corporation owns all or a
portion of the shares of the company issuing a policy of insurance shall  not render this Section 9
inapplicable if either of the following conditions are satisfied:  (a) if authorized in the Articles of Incorporation, any policy issued is
limited to the extent not in conflict with Section 204 (d) of the California
Corporations Code, or (b) the company issuing the insurance policy  is organized, licensed, and operated in a
manner that  complies with the insurance
laws and regulations applicable to its jurisdiction of organization, the
company issuing the policy provides procedures for processing claims that do
not permit that company to be subject

 

17

 

to the direct control of the
Corporation that purchased that policy, and the policy issued provides for some
manner of risk sharing between the issuer and purchaser or the policy, on one
hand, and some unaffiliated person or persons, on the other, such as by
providing that a portion of the coverage furnished will be obtained from some
unaffiliated insurer or reinsurer.

 

Section 10.             Indemnification for Breach of
Duty to Corporation and Shareholders.

The Corporation
may indemnify any agent of the Corporation in excess of that expressly
permitted by this Article IX for those agents of the Corporation for breach of
duty to the Corporation and its shareholders.

 

Notwithstanding the first paragraph of this Section 10 above, to the
extent and only to the extent required by Section 204 (a) (11) or any successor
provision of the California Corporations Code, the Corporation shall not
indemnify directors for (a) acts or omissions that involve intentional
misconduct or a knowing and culpable violation of law; (b) acts or omissions
that a director believes to be contrary to the best interests of the
Corporation or its shareholders or that involve the absence of good faith on
the part of the director; (c) for any transaction from which a director derived
an improper personal benefit; (d) for acts or omissions that show a reckless
disregard for the director’s duty to the Corporation or its shareholders in
circumstances in which the director was aware, or should have been aware, in
the ordinary course of performing a director’s duties, of a risk of serious
injury to the Corporation or its shareholders; (e) for acts or omissions that
constitute an unexcused pattern of inattention that amounts to an abdication of
the director’s duty to the Corporation or its shareholders; (f) liability under
Section 310 of the California Corporations Code (which section concerns certain  transactions between corporations and
directors or corporations having interrelated directors) ; (g) liability of a
director who approves of any of the following Corporation actions: (1) the
making of any distribution to the shareholders to the extent that it is
contrary to the provisions of Sections 500 to 503, inclusive, of the California
Corporations Code (which sections concern certain retained earnings and asset
requirements on corporate distributions to shareholders, distributions
resulting in corporate insolvency, distributions to junior shares affecting
liquidation preferences of senior shares, and distributions to junior shares
affecting cumulative dividends to senior shares); (2) the distribution of
assets to shareholders after institution of dissolution proceedings of the
Corporation, without paying or adequately providing for all known liabilities
of the Corporation excluding any claims not filed by creditors within the time
limit set by the court in a notice to creditors under Chapters 18 (commencing
with Section 1800), 19 (commencing with Section 1900) and 20 (commencing with  Section 2000) of Division 1
of the California Corporations Code; (3) the making of any loan or guaranty
contrary to Section 315 of the

 

18

 

California Corporations Code
(which section concerns certain loans and guaranties to directors, officers and
others); (h) any act or omission that occurs prior to the date this Article IX
becomes effective; and (i) any act as an officer of the Corporation,
notwithstanding that the officer is also a director or that his or her actions,
if negligent or improper, have been ratified by the directors.

 

Notwithstanding the first paragraph of this Section 10 above, this
Corporation shall not indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action by
or in the right of the corporation to procure a judgment in its favor by reason
of the fact that such person is or was an agent of the Corporation (a) in
respect of any claim, issue or matter as to which such person shall have been
adjudged to be liable to the Corporation in the performance of such person’s
duty to the Corporation and its  shareholders,
unless and only  to
the extent that the court in which such proceeding is or was pending shall
determine upon application that, in view of all the circumstances of the case,
such person is fairly and reasonably entitled to indemnity for expenses and
then only to the extent that the court shall determine; (b) of amounts paid in
settling or otherwise disposing of a pending action without court approval; and
(c) of expenses incurred in defending a pending action which is settled or
otherwise disposed of without court approval.

 

Notwithstanding the first paragraph of this Section 10 above, this
Corporation shall not indemnify any person who was or is a party or is
threatened to be made a party to any proceeding (a) except upon meeting the
standard set forth in the first or second paragraph of Section 4 of this
Article IX above; (b) except upon meeting the standard set forth in the second
paragraph of Section 5 of this Article IX above, in any circumstance where it
appears that:  (1) it would be inconsistent with  a provision of the Articles
of Incorporation or these Bylaws, a resolution of the shareholders or an
agreement in effect at the time of the accrual of the alleged cause of action
asserted in such proceeding in which the expenses were incurred or other
amounts were paid,  which
prohibits or otherwise limits indemnification, or (2) it would be inconsistent
with any condition expressly  imposed
by a court in approving a settlement; or (c) in connection with any such
proceeding against any trustee, investment manager or other fiduciary of an
employee benefit plan in such person’s capacity as such, even though such
person may also be an agent as defined in Section 1 of this Article IX above of
the employer Corporation.

 

Notwithstanding the first paragraph of this Section 10 above, no
advance shall be made under this Article IX except upon meeting the standard
set forth in the first or second paragraph of Section 5 of this Article IX
above, in any circumstance where it appears that (a) it would be inconsistent
with a

 

19

 

provision of the Articles of
Incorporation or these Bylaws, a resolution of the shareholders or an agreement
in effect at the time of the accrual of the alleged cause of action asserted in
such proceeding in which the expenses were incurred or other amounts were paid,
which prohibits or otherwise limits indemnification, or (b) it would be inconsistent
with any condition expressly imposed by a court in approving a settlement.

 

Section 11.             Savings Clause.

If this Article IX or any portion hereof shall be invalidated on any
ground by any court of competent jurisdiction, then the Corporation shall nevertheless
indemnify each person as to any expenses, judgments, fines, settlements and
other amounts incurred by such person in connection with any proceeding, to the
fullest extent permissible under applicable law.

 

Section 12.             Subsequent Amendment.

If the California Corporations Code or any other applicable law is
amended after approval by the shareholders of this Article IX to further expand
the indemnification permitted to directors, officers and agents of the
Corporation, then the Corporation shall indemnify such person to the fullest
extent permissible under the California Corporations Code or other applicable
law, as so amended.

 

Section 13.             Contract.

The rights to indemnification conferred in this Article shall be deemed
to be a contract between the Corporation and each person who serves in the
capacities described above at any time while this Article is in effect.  Any repeal or modification of this Article
shall not in any way diminish any rights to indemnification of such person or
the obligations of the Corporation arising hereunder.

 

Section 14.             Indemnity Agreements.

The Corporation may from time to time enter into indemnity agreements
with the persons who are members of its Board of Directors and with such
officers or other agents, of the Corporation as the Board may designate, such
indemnity agreements to provide in substance
thatthe Corporation will indemnify such persons to the fullest extent
permitted by the provisions of this Articles IX and the Articles of
Incorporation.

 

20

 

CERTIFICATE OF SECRETARY

 

KNOW ALL PERSONS BY THESE PRESENTS:

 

The
undersigned, Secretary of BIOENTERICS CORPORATION, a California corporation
(the “Corporation”), does hereby certify that the above and foregoing Bylaws were
duly adopted as the Bylaws of the Corporation at a meeting of the Board of
Directors duly held on August 8, 1991.

 

IN WITNESS WHEREOF,
the undersigned has subscribed his name and affixed the seal of the Corporation
on the date set forth below.

 

	
  August 8, 1991

  	
   

  	
  /s/ Michael
  D. Farney

  
	
  Date

  	
  Michael D.
  Farney, Secretary

  
	
   

  	
   

  

 

21

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

BIOENTERICS
CORPORATION

 

BY UNANIMOUS WRITTEN
CONSENT

 

The
undersigned, being all of the members of the Board of Directors of BioEnterics
Corporation, a California corporation (the “Company”), acting pursuant
to Section 307(8)(b) of the General Corporation Law of the State of California,
hereby consent in writing to the adoption of the following actions in lieu of a
special meeting of the Board of Directors:

 

GUARANTEE AND
COLLATERAL AGREEMENT

 

WHEREAS,
INAMED Corporation (“Inamed”) intends to enter into that certain Credit
Agreement dated as of February 1, 2000 (the “Credit Agreement”), by and
among Inamed, the Lenders, Bear Stearns Corporate Lending Inc., as Syndication
Agent (in such capacity, the “Syndication Agent’), Bear, Stearns &
Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent;

 

WHEREAS,
pursuant to the terms of the Credit Agreement, the Company, as a subsidiary of
Inamed, is required to guaranty all of Inamed’s obligations under the Credit
Agreement (the “Obligations”, as defined under the Credit Agreement), by
entering into that certain Guarantee and Collateral Agreement (the “Guarantee
and Collateral Agreement”) dated of even date with the Credit Agreement, a
copy of which has been presented to the Board;

 

WHEREAS,
pursuant to the terms and conditions of the Credit Agreement, the Company, as a
subsidiary of Inamed, is required to secure payment and performance of the
Obligations, also by entering into that same Guarantee and Collateral Agreement
(as defined above), whereby the Company would grant to Administrative Agent,
for the benefit of the Administrative Agent and the Lenders, a perfected, first
priority Lien on all of its right, title and interest in all of its personal
property, including but not limited to all capital stock of its domestic

 

 

subsidiaries, 65% of the
capital stock of its foreign subsidiaries, accounts, fixtures, contract rights,
intellectual property, licenses, material property, etc.

 

WHEREAS, the
Board of Directors of the Company has determined that in order to give effect
to the Credit Agreement, it is advisable and in the best interests of the
Company that the Company enter into the Guarantee and Collateral Agreement and
each of the transactions contemplated thereby;

 

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors deems it
advisable and in the best interests of the Company to enter into the Guarantee
and Collateral Agreement and any other documents contemplated thereby and such
documents hereby are authorized and approved, with such changes thereto as the
Chairman, the President, any Vice President or the Secretary of the Company
(the “proper officers” ) may approve, such approval to be conclusively
evidenced by such officer’s or officers’ execution and delivery thereof;

 

RESOLVED FURTHER, that the proper officers of the Company be, and each
of them hereby is, authorized, empowered and directed, in the name and on
behalf of the Company, to enter into the Guarantee and Collateral Agreement,
substantially on the terms and conditions as presented and described to the
Board, with such changes thereto as the proper officers may approve, such  approval to be conclusively evidenced by
such officer’s or officers’ execution and delivery thereof; and

 

RESOLVED
FURTHER, that the proper officers of the Company be, and each of them hereby
is, authorized and directed to enter into such other agreements, documents,
promissory notes, and instruments with respect to any of the foregoing, in such
form and on such terms and conditions as may be agreed to by the proper
officers of the Company, Administrative Agent and the Lenders, and to take such
other actions with respect to the foregoing as may be required by
Administrative Agent and the Lenders; and that the proper officers of the
Company be, and each of them hereby is, authorized, directed and empowered, in
the name and on behalf of the Company, to execute and deliver such other
agreements, documents, promissory notes, deeds of trust, mortgages and other
instruments and to perform all other acts as such officers shall approve in
connection with any of the above, the execution of such agreements, documents,
promissory notes and other instruments or the taking of any such actions to be
conclusive evidence of such approval.

 

 

GENERAL
AUTHORIZATIONS

 

RESOLVED, that
the officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to do or
cause to be done all such other acts or things, and to execute and deliver, or
cause to be executed and delivered, all such other documents, instruments,
agreements, notes, undertakings, guarantees and certificates of any kind and
nature whatsoever, as such officer or officers may deem necessary or
appropriate to effectuate or carry out the purposes and intent of the foregoing
resolutions; all such other actions to be performed in such manner, and all
such other documents, instruments, agreements, notes, undertakings, guarantees
and certificates to be executed and delivered in such form, as the officer or
officers performing or executing the same shall approve, such officer’s or
officers’ approval thereof to be conclusively evidenced by the performance of
any such other action or the execution and delivery of any such other
documents, instruments, agreements, notes, undertakings and certificates; and

 

RESOLVED
FURTHER, that all acts and things previously done by any of the officers of the
Company, on or prior to the date hereof, in the name and on behalf of the
Company, in connection with the transactions contemplated by the foregoing
resolutions, are in all respects ratified, approved, confirmed and adopted as
the acts and deeds by and on behalf of the Company.

 

* * *

 

 

This Unanimous
Written Consent may be executed in one or more counterparts, each of which
shall be considered as an original.  The
Secretary of the Company shall file this Unanimous Written Consent in the
minute book of the Company and it shall become part of the records of the
Company.

 

	
  Dated:  February 1, 2000

  	
   

  
	
   

  	
  /s/ Richard
  G. Babbitt

  
	
   

  	
  Richard G.
  Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K.
  Reich

  
	
   

  	
   Ilan K. Reich

  
	
   

  	
   

  

 

 

Annex 4

 

 

[ILLEGIBLE PAGE]

 

 

BIOPLEXUS CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is
hereby made to the Credit Agreement, dated as of February 1, 2000 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Inamed Corporation (the “Borrower"), the Lenders, Bear
Stearns Corporate Lending Inc., as Syndication Agent (in such capacity, the “Syndication
Agent”), Bear, Stearns & Co. Inc., as sole lead arranger and sole book
manager (the “Arranger”) and the Administrative Agent.  Capitalized terms used herein and not
otherwise defined shall have the meanings assigned in the Credit
Agreement.  This certificate is being
delivered pursuant to Section 5. 1 (g) of the Credit Agreement.

 

I, David E.
Bamberger, hereby certify that I am the Secretary of BIOPLEXUS CORPORATION (the
“Company”), and as such have access to the Company’s corporate records and am
familiar with the matters therein contained and herein certified, and that:

 

1.  Attached hereto as Annex 1 is a true,
correct and complete copy of the Articles of Incorporation of the Company, as
filed with the Secretary of State of the State of Nevada on June 4, 1993.

 

2.  Attached hereto as Annex 2 is a true,
correct and complete copy of the By-laws of the Company as presently in effect
on and as of the date hereof, which By-laws are in full force and effect in
said form without modification, amendment, rescission or repeal in any respect.

 

3.  Attached hereto as Annex 3 is a true,
correct and complete copy of resolutions adopted by unanimous written consent
in lieu of a meeting in accordance with applicable laws and the Articles of
Incorporation and By-laws of the Company, and such resolutions (i) were duly
adopted by the Board of Directors of the Company and are in full force and
effect on and as of the date hereof, not having been in any way amended,
altered or repealed, and (ii) constitute the only resolutions of the Board of
Directors of the Company relating to the subject matter of the Credit
Agreement, the other Loan Documents and the transactions contemplated thereby.

 

 

4.  Attached hereto as Annex 4 is (i) a true,
correct and complete copy of a certificate from the Office of the Secretary of
State of the State of Nevada indicating that the Company is a corporation
existing under and by virtue of the laws of the State of Nevada and is in good
standing.

 

5.  There are no consents, licenses or approvals
required in connection with the execution, delivery and performance by the
Company or the validity and enforceability against the Company of the Loan
Documents to which it is a party.

 

[Remainder of page intentionally left blank.]

 

2

 

6.  The following persons are duly qualified and
acting officers of the Company, each of whom is authorized to sign any of the
Loan Documents to which the Company is a party, and each of whom is duly
elected to the office set forth opposite his respective name; the signature
appearing opposite the name of each such officer is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K.
  Reich

  	
  PRESIDENT

  	
  /s/ Ilan K.
  Reich

  
	
   

  	
   

  	
   

  
	
  David E.
  Bamberger

  	
  SECRETARY

  	
  /s/ David E.
  Bamberger

  

 

IN WITNESS
WHEREOF, the undersigned has executed this Secretary’s Certificate as of the 1
day of  February, 2000.

 

	
   

  	
  /s/ David E.
  Bamberger

  	
   

  
	
   

  	
   David E. Bamberger

  
	
   

  	
   Secretary

  

 

I, Ilan K.
Reich, President of the Company, hereby certify that David E. Bamberger is the
duly elected Secretary of the Company and that the signature appearing above is
his genuine signature.

 

	
   

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   Ilan K. Reich

  
	
   

  	
   President

  

 

3

 

Annex 1

 

 

ARTICLES OF INCORPORATION

 

OF

 

BIOPLEXUS CORPORATION

 

 

I, the person
hereinafter named as incorporator, for the purpose of associating to establish
a corporation, under the provisions and subject to the requirements of Title 7,
Chapter 78 of Nevada Revised Statutes, and the acts amendatory thereof, and
hereinafter sometimes referred to as the General Corporation Law of the State
of Nevada, do hereby adopt and make the following Articles of Incorporation:

 

FIRST: 
The name of the corporation (hereinafter called the corporation) is
BIOPLEXUS CORPORATION.

 

SECOND: 
The name of the corporation’s resident agent in the State of Nevada is
The Prentice-Hall Corporation System, Nevada, Inc., and the street address of
the said resident agent where process may be served on the corporation is 502
East John Street, Carson City 89706.

 

THIRD: 
This corporation is authorized to issue two classes of stock, designated
Common Stock and Preferred Stock, respectively.  The number of shares of Common Stock which the corporation is
authorized to issue is Fifteen Thousand (15,000), all of which are of a par
value of One ($1.00) dollar each.  The
number of shares of Preferred Stock which the corporation is authorized to
issue is Ten Thousand (10,000), all of which are of a par value of One ($1.00)
dollar each.

 

The Preferred
Stock may be issued in one or more series. 
The Board of Directors of the corporation is hereby authorized to
determine or alter the rights, preferences, privileges and restrictions granted
to or imposed on any wholly unissued class or series of Preferred Stock and to
fix and determine the number of shares and the designation of any series of
wholly unissued Preferred Stock.

 

No holder of
any of the shares of any class of the corporation shall be entitled as of right
to subscribe for, purchase, or otherwise acquire any shares of any class of the
corporation which the corporation proposes to issue or any rights or options
which the corporation proposes to grant for the purchase of shares of any class
of the corporation or for the purchase of any shares, bonds, securities, or
obligations of the corporation

 

1

 

which are
convertible into or exchangeable for, or which carry any rights, to subscribe
for, purchase, or otherwise acquire shares of any class of the corporation; and
any and all of such shares, bonds, securities, or obligations of the
corporation, whether now or hereafter authorized or created, may be issued, or
may be reissued or transferred if the same have been reacquired and have
treasury status, and any and all of such rights and options may be granted by
the Board of Directors to such persons, firms, corporations, and associations,
and for such lawful consideration, and on such terms, as the Board of Directors
in its discretion may determine, without first offering the same, or any
thereof, to any said holder.

 

FOURTH: The governing board of the corporation
shall be styled as a “Board of Directors”, and any member of said Board shall
be styled as a “Director.”

 

The number of
members constituting the first Board of Directors of the corporation is two
(2); and the name and the post office box or street address, either residence
or business, of each of said members are as follows:

 

	
  NAME

  	
   

  	
  ADDRESS:

  
	
  Donald K.
  McGhan

  	
   

  	
  3800 Howard
  Hughes Parkway, Suite 900

  Las Vegas, NV 89109

  
	
   

  	
   

  	
   

  
	
  Michael D.
  Farney

  	
   

  	
  3800 Howard
  Huges Parkway, Suite 900

  Las Vegas, NV 89109

  

 

The number of
directors of the corporation may be increased or decreased in the manner
provided in the Bylaws of the corporation; provided, that the number of
directors shall never be less than one. 
In the interim between election of directors by stockholders entitled to
vote, all vacancies, including vacancies caused by an increase in the number of
directors and including vacancies resulting from the removal of directors by
the stockholders entitled to vote which are not filled by said stockholders,
may be filled by the remaining directors, though less than a quorum.

 

FIFTH: 
The name and the post office box or street address, either residence or
business, of the incorporator signing these Articles of Incorporation are as
follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  M. Ryan

  	
   

  	
  5670
  Wilshire Blvd., Suite 750

  Los Angeles, CA 90036

  

 

2

 

SIXTH: 
The corporation shall have perpetual existence.

 

SEVENTH: 
The personal liability of the directors of the corporation is hereby
eliminated to the fullest extent permitted by the General Corporation Law of
the State of Nevada, as the same may be amended and supplemented.

 

EIGHTH: 
The corporation shall, to the fullest extent permitted by the General
Corporation Law of the State of Nevada, as the same may be amended and
supplemented, indemnify any and all persons whom it shall have power to indemnify
under said Law from and against any and all of the expenses, liabilities, or
other matters referred to in or covered by said Law, and the indemnification
provided for herein shall not be deemed exclusive of any other rights to which
those indemnified may be entitled under any Bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in his
official capacity and as to action in another capacity while holding such
office, and shall continue as to a person who has ceased to be a director,
officer, employee, or agent and shall inure to the benefit of the heirs,
executors, and administrators of such a person.

 

NINTH: 
The corporation may engage in any lawful activity.

 

TENTH: The corporation reserves the right to
amend, alter, change, or repeal any provision contained in these Articles of
Incorporation in the manner now or hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this
reservation.

 

IN WITNESS
WHEREOF, I do hereby execute these Articles of Incorporation on June 3, 1993.

 

	
   

  	
  /s/ M. Ryan

  
	
   

  	
   M.
  Ryan, Incorporator

  

 

[SEAL]

 

3

 

	
  STATE OF
  CALIFORNIA

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF
  LOS ANGELES

  	
  )

  	
   

  

 

On June 3,
1993, before me, Jillaine E. Costelloe, Notary Public, personally appeared M.
Ryan, personally known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that she executed the same in her
authorized capacity, and that by her signature on the instrument the person or
the entity upon behalf of which the person acted, executed the instrument.

 

WITNESS my
hand and official seal.

 

	
   

  	
  [SEAL OF
  JILLAINE E. COSTELLOE]

  
	
  Signature

  	
  /s/ Jillaine
  E. Costelloe

  	
   

  	
  (Seal)

  
				

 

4

 

Annex 2

 

 

BYLAWS

 

OF

 

BIOPLEXUS CORPORATION

A Nevada Corporation

 

ARTICLE I

OFFICES

 

SECTION
1.  PRINCIPAL EXECUTIVE OFFICE.  The principal office of the Corporation is
hereby fixed in 3800 Howard Hughes Parkway, #900, Las Vegas, in the State of
Nevada.

 

SECTION
2.  OTHER OFFICES.  Branch or subordinate offices may be
established by the Board of Directors at such other places as may be desirable.

 

ARTICLE II

SHAREHOLDERS

 

SECTION
1.  PLACE OF MEETING.  Meetings of shareholders shall be held
either at the principal executive office of the corporation or at any other
location within or without the State of Nevada which may be designated by
written consent of all persons entitled to vote thereat.

 

SECTION
2.  ANNUAL MEETINGS.  The annual meeting of shareholders shall be
held on such day and at such time as may be fixed by the Board; provided,
however, that should said day fall upon a Saturday, Sunday, or legal holiday
observed by the Corporation at its principal executive office, then any such
meeting of shareholders shall be held at the same time and place on the next
day thereafter ensuing which is a full business day.  At such meetings, directors shall be elected by plurality vote
and any other proper business may be transacted.

 

1

 

SECTION
3.  SPECIAL MEETINGS.  Special meetings of the shareholders may be
called for any purpose or purposes permitted under Chapter 78 of Nevada Revised
Statutes at any time by the Board, the Chairman of the Board, the President, or
by the shareholders entitled to cast not less than twenty-five percent (25%) of
the votes at such meeting.  Upon request
in writing to the Chairman of the Board, the President, any Vice-President or
the Secretary, by any person or persons entitled to call a special meeting of
shareholders, the Secretary shall cause notice to be given to the shareholders
entitled to vote, that a special meeting will be held not less than thirty-five
(35) nor more than sixty (60) days after the date of the notice.

 

SECTION
4.  NOTICE OF ANNUAL OR SOCIAL
MEETING.  Written notice of each annual meeting  of shareholders shall be
given not less than ten (10) nor more than sixty (60) days before the date of
the meeting to each shareholder entitled to vote thereat.  Such notice shall state the place, date and
hour of the meeting and (i) in the case of a special meeting the general nature
of the business to be transacted, or (ii) in the case of the annual meeting,
those matters which the Board, at the time of the mailing of the notice,
intends to present for action by the shareholders, but, any proper matter may
be presented at the meeting for such action. 
The notice of any meeting at which directors are to be elected shall
include the names of the nominees intended, at the time of the notice, to be
presented by management for election.

 

Notice of a shareholders’ meeting shall be
given either personally or by mail or, addressed to the shareholder at the
address of such shareholder appearing on the books of the corporation or if no
such address appears or is given, by publication at least once in a newspaper
of general circulation in Clark County, Nevada.

 

2

 

An affidavit of mailing of any
notice, executed by the Secretary, shall be prima facie evidence of the giving
of the notice.

 

SECTION
5.  QUORUM.  A majority of the shares entitled to vote, represented in person
or by proxy, shall constitute a quorum at any meeting of shareholders. If a
quorum is present, the affirmative vote of the majority of shareholders
represented and voting at the meeting on any matter, shall be the act of the
shareholders.  The shareholders present
at a duly called or held meeting at which a quorum is present may continue to
do business until adjournment, notwithstanding withdrawal of enough
shareholders to leave less than a quorum, if any action taken (other than
adjournment) is approved by at least a majority of the number of shares
required as noted above to constitute a quorum.  Notwithstanding the foregoing, (1) the sale, transfer and other
disposition of substantially all of the corporation’s properties and (2) a
merger or consolidation of the corporation shall require the approval by an
affirmative vote of not less than two-thirds (2/3) of the corporation’s issued
and outstanding shares.

 

SECTION
6.  ADJOURNED MEETING AND NOTICE
THEREOF.  Any shareholders meeting,
whether or not a quorum is present, may be adjourned from time to time.  In the absence of a quorum (except as provided in Section  5
of this Article), no other business may be transacted at such meeting.

 

It shall not
be necessary to give any notice of the time and place of the adjourned meeting
or of the business to be transacted thereat, other than by announcement at the
meeting at which such adjournment is taken; provided, however when a
shareholders meeting is adjourned for more than forty-five (45) days or, if
after adjournment a new record date is fixed for the adjourned meeting, notice
of the adjourned meeting shall be

 

3

 

given as in the case of an
original meeting.

 

SECTION
7.  VOTING.  The shareholders entitled to notice of any meeting or to vote at
such meeting shall be only persons in whose name shares stand on the stock
records of the corporation on the record date determined in accordance with
Section 8 of this Article.

 

SECTION
8.  RECORD DATE.  The Board may fix, in advance, a record date
for the determination of the shareholders entitled to notice of a meeting or to
vote or entitled to receive payment of any dividend or other distribution, or
any allotment of rights, or to exercise rights in respect to any other lawful
action.  The record date so fixed shall
be not more than sixty (60) nor less than ten (10) days prior to the date of
the meeting nor more than sixty (60) days prior to any other action.  When a record date is so fixed, only
shareholders of record on that date are entitled to notice of and to vote at
the meeting or to receive the dividend, distribution, or allotment of rights,
or to exercise of the rights, as the case may be, notwithstanding any transfer
of shares on the books of the corporation after the record date.  A determination of shareholders of record
entitled to notice of or to vote at a meeting of shareholders shall apply to
any adjournment of the meeting unless the Board fixes a new record date for the
meeting.  The Board shall fix a new
record date if the meeting is adjourned for more than forty-five (45) days.

 

If no record
date is fixed by the Board, the record date for determining shareholders
entitled to notice of or to vote at a meeting of shareholders shall be the
close of business on the business day next preceding the day on which notice is
given or, if notice is waived, at the close of business on the business day
next preceding the day on which notice is given.  The record date for determining shareholders for any purpose

 

4

 

other than as set in this Section 8 or Section 10 of this Article shall
be at the close of the day on which the Board adopts the resolution relating
thereto, or the sixtieth day prior to the date of such other action, whichever
is later.

 

SECTION
9.  CONSENT OF ABSENTEES.  The transactions of any meeting of shareholders,
however called and noticed, and wherever held, are as valid as though had at a
meeting duly held after regular call and notice, if a quorum is present either
in person or by proxy, and if, either before or after the meeting, each of the
persons entitled to vote not present in person or by proxy, signs a written
waiver of notice, or a consent to the holding of the meeting or an approval of
the minutes thereof.  All such waivers,
consents or approvals shall be filed with the corporate records or made a part
of the minutes of the meeting.

 

SECTION
10.  ACTION WITHOUT MEETING.  Any action which, under any provision of
law, may be taken at any annual or special meeting of shareholders, may be
taken without a meeting and without prior notice if a consent in writing,
setting forth the actions to taken, shall be signed by the holders of outstanding shares  having
not less than the minimum number of votes that would be necessary to authorize
or take such action at a meeting at which all shares entitled to vote thereon
were present and voted.  Unless a record
date for voting purposes be fixed as provided in Section 8 of this Article, the
record date for determining shareholders entitled to give consent pursuant to
this Section 10, when no prior action by the Board has been taken, shall be the
day on which the first written consent is given.

 

SECTION
11.  PROXIES.  Every person entitled to vote shares has the right to do so
either in person or by one or more persons authorized by a written proxy
executed by such shareholder and filed with the Secretary not less than five
(5) days prior to the meeting.

 

5

 

SECTION
12.  CONDUCT OF MEETING.  The President shall preside as Chairman at
all meetings of the shareholders, unless another Chairman is selected.  The Chairman shall conduct each such meeting
in a businesslike and fair manner, but shall not be obligated to follow any
technical, formal or parliamentary rules or principles of procedure.  The Chairman’s ruling on procedural matters
shall be conclusive and binding on all shareholders, unless at the time of
ruling a request for a vote is made by the shareholders entitled to vote and
represented in person or by proxy at the meeting, in which case the decision of
a majority of such shares shall be conclusive and binding on all shareholders
without limiting the generality of the foregoing, the Chairman shall have all
the powers usually vested in the chairman of a meeting of shareholders.

 

ARTICLE III

DIRECTORS

 

SECTION 1.  POWERS. 
Subject to limitation of the Articles of Incorporation, of these bylaws,
and of actions required to be approved by the shareholders, the business and
affairs of the corporation shall be managed and all corporate powers shall be
exercised by or under the direction of the Board.  The Board may, as permitted by law, delegate the management of
the day-to-day operation of the business of the corporation to a management
company or other persons or officers of the corporation provided that the
business and affairs of the corporation shall be managed and all corporate
powers shall be exercised under the ultimate direction of the Board.  Without prejudice to such general powers, it
is hereby expressly declared that the Board shall have the following powers:

 

(a) 
To select and remove all of the officers, agents

 

6

 

and employees of the
corporation, prescribe the powers and duties for them as may not be
inconsistent with law, or with the Articles of Incorporation or by these
bylaws, fix their compensation, and  require
from them, if necessary, security for faithful service.

 

(b)  To conduct, manage, and control the affairs
and business of the corporation and to make such rules and regulations
therefore not inconsistent with law, with the Articles of Incorporation or
these bylaws, as they may deem best.

 

(c)  To adopt, make and use a corporate seal, and
to prescribe the forms of certificates of stock and to alter the form of such
seal and such of certificates from time to time in their judgment they deem
best.

 

(d)  To authorize the issuance of shares of stock
of the corporation from time to time, upon such terms and for such
consideration as may be lawful.

 

(e)  To borrow money and incur indebtedness for
the purposes of the corporation, and to cause to be executed and delivered
therefor, in the corporate name, promissory notes, bonds, debentures, deeds of
trust, mortgages, pledges, hypothecation or other evidence of debt and
securities therefor.

 

SECTION 2. 
NUMBER AND QUALIFICATION OF DIRECTORS. 
The authorized number of directors shall be two (2) until changed by
amendment of the Articles or by a bylaw duly adopted by approval of the
outstanding shares amending this Section 2.

 

SECTION
3.  ELECTION AND TERM OF OFFICE.  The directors shall be elected at each
annual meeting of shareholders but if any such annual meeting is not held or
the directors are not

 

7

 

elected thereat, the directors
may be elected at any special meeting of shareholders held for that
purpose.  Each director shall hold
office until the next annual meeting and until a successor has been elected and
qualified.

 

SECTION
4.  CHAIRMAN OF THE BOARD.  At the regular meeting of the Board, the
first order of business will be to select, from its members, a Chairman of the
Board whose duties will be to preside over all board meetings until the next
annual meeting and until a successor has been chosen.

 

SECTION
5.  VACANCIES.  Any director may resign effective upon giving written notice to
the Chairman of the Board, the President, Secretary, or the Board, unless the
notice specified a later time for the effectiveness of such resignation. If the resignation is
effective at a future time, a successor may be elected to take office when the resignation becomes effective.

 

Vacancies in
the Board including those existing
as a result of a removal of a director, shall be filled by the shareholders at
a special meeting, and each director so elected shall hold office until the
next annual meeting and until such director’s successor has been elected and
qualified.

 

A vacancy or
vacancies in the Board shall be deemed to exist in case of the death, resignation or removal of any
director or if the authorized number of directors be increased, or if the
shareholders fail, at any annual or special meeting of shareholders at which
any directors are elected, to elect the full authorized number of directors
to be voted for the meeting.

 

The Board may
declare vacant the office of a director who has been declared of unsound mind
or convicted of a felony by an order of court.

 

8

 

The
shareholders may elect a director or directors at any time to fill any vacancy
or vacancies.  Any such election by
written consent requires the consent of a majority of the outstanding shares
entitled to vote. If the Board accepts the resignation of a director tendered
to take effect at a future time, the shareholder shall have power to elect a
successor to take office when the resignation is to become effective.

 

No reduction
of the authorized number of directors shall have the effect of removing any
director prior to the expiration of the director’s term of office.

 

SECTION
6.  PLACE OF MEETING.  Any meeting of the Board shall be held at
any place within or without the State of Nevada which has been designated from
time to time by the Board.  In the
absence of such designation meetings shall be held at the principal executive
office of the corporation.

 

SECTION
7.  REGULAR MEETINGS.  Immediately following each annual meeting of
shareholders the Board shall hold a regular meeting for the purpose of
organization, selection of a Chairman of the Board, election of officers, and
the transaction of other business.  Call
and notice of such regular meeting is hereby dispensed with.

 

SECTION 8.  SPECIAL
MEETINGS.  Special meetings of the Board
for any purposes may be called at any time by the Chairman of the Board, the
President, or the Secretary or by any two directors.

 

Special
meetings of the Board shall be held upon at least four (4) days written notice
or forty-eight (48) hours notice given personally or by telephone, telegraph,
telex or other similar means of communication. 
Any such notice shall be

 

9

 

addressed or delivered to each
director at such director’s address as it is shown upon the records of the
Corporation or as may have been given to the Corporation by the director for
the purposes of notice.

 

SECTION 9.  QUORUM. 
A majority of the authorized number of directors constitutes a quorum of
the Board for the transaction of business, except to adjourn as hereinafter
provided.  Every act or decision done or
made by a majority of the directors present at a meeting duly held at which a
quorum is present shall be regarded as the act of the Board, unless a greater
number be required by law or by the Articles of Incorporation.  A meeting at which a quorum is initially
present may continue to transact business notwithstanding the withdrawal of
directors, if any action taken is approved by at least a majority of the number
of directors required as noted above to constitute a quorum for such meeting.

 

SECTION
10.  PARTICIPATION IN MEETINGS BY
CONFERENCE TELEPHONE.  Members of the
Board may participate in a meeting through use of conference telephone or
similar communications equipment, so long as all members participate in such
meeting can hear one another.

 

SECTION
11.  WAIVER OF NOTICE.  The transactions of any meeting of the
Board, however called and noticed or wherever held, are as valid as though had
at a meeting duly held after regular call and notice if a quorum be present and
if, either before or after the meeting, each of the directors not present signs
a written waiver of notice, a consent to holding such meeting or an approval of
the minutes thereof.  All such waivers,
consents or approvals shall be filed with the corporate records or made part of
the minutes of the meeting.

 

SECTION
12.  ADJOURNMENT.  A majority of the directors

 

10

 

present, whether or not a
quorum is present, may adjourn any directors’ meeting to another time and
place.  Notice of the time and place of
holding an adjourned meeting need not be given to absent directors if the time
and place be fixed at the meeting adjourned. 
If the meeting is adjourned for more than forty-eight (48) hours, notice
of any adjournment to another time or place shall be given prior to the time of
the adjourned meeting to the directors who were not present at the time of
adjournment.

 

SECTION
13.  FEES AND COMPENSATION.  Directors and members of committees may
receive such compensation, if any, for their services, and such reimbursement
for expenses, as may be fixed or determined by the Board.

 

SECTION
14.  ACTION WITHOUT MEETING.  Any action required or permitted to be taken
by the Board may be taken without a meeting if all members of the Board shall
individually or collectively consent
inwriting to such action.  Such
consent or consents shall have the same effect as a unanimous vote  of the Board and shall be filed with the
minutes of the proceedings of the Board.

 

SECTION
15.  COMMITTEES.  The board may appoint one or more
committees, each consisting of  two
or more directors, and delegate to such committees any of the authority of the
Board except with respect to:

 

(a)  The approval of any action which requires
shareholders’ approval or approval of the outstanding shares;

(b)  The filling of vacancies on the Board or on any
committees;

(c)  The fixing of compensation of the directors
for serving on the Board or on any committee;

(d)  The amendment or repeal of bylaws or the
adoption of new bylaws;

 

11

 

(e)  The  amendment
or repeal of any resolution of the Board which by its express terms is not so
amendable or repealable by a committee of the board;

(f)  A distribution to the shareholders of the
corporation;

(g)  The appointment of other committees of the
Board or the members thereof.

 

Any such committee must be appointed by resolution adopted by a
majority of the authorized number of directors and may be designated an Executive Committee or by such other name
as the Board shall specify.  The Board
shall have the power to prescribe the manner in which proceedings of any such
committee shall be conducted.  Unless
the Board or such committee shall otherwise provide, the regular or special
meetings and other actions of any such committee shall be governed by the
provisions of this Article applicable to meetings and actions of the
Board.  Minutes shall be kept of each
meeting of each committee.

 

ARTICLE IV

OFFICERS

 

SECTION 1.  OFFICERS.  The officers of the corporation shall be a
president, a secretary and a treasurer. 
The corporation may also have, at the discretion of the Board, one or
more vice-presidents, one or more assistant vice presidents, one or more
assistant secretaries, one or more assistant treasurers and such other officers
as may be elected or appointed in accordance with the provisions of Section 3
of this Article.

 

SECTION 2.  ELECTION.  The officers of the corporation, except such
officers as may be elected or appointed in accordance with the provisions of
Section 3 or Section 5 of this

 

12

 

Article, shall be chosen
annually by, and shall serve at the pleasure of, the Board, and shall hold
their respective offices until their resignation, removal or other
disqualification from service, or until their respective successors shall be
elected.

 

SECTION
3.  SUBORDINATE OFFICERS.  The Board may elect, and may empower the
President to appoint, such other officers as the business of the corporation
may require, each of whom shall hold office for such period, have such authority,
and perform such duties as are provided in these bylaws or as the Board, or the
President may from time to time direct.

 

SECTION
4.  REMOVAL AND RESIGNATION.  Any officer may be removed, either with or
without cause, by the Board of Directors at any time, or, except in the case of
an officer chosen by the Board, by any officer upon whom such power of removal
may be conferred by the Board.

 

Any officer
may resign at any time by giving written notice to the corporation.  Any such resignation shall  take effect at the date of the receipt of
such notice or at any later time specified therein.  The acceptance of such resignation shall be necessary to make it
effective.

 

SECTION
5.  VACANCIES.  A vacancy of any office because of death, resignation, removal,
disqualification, or any other cause shall be filled in the manner prescribed
by these bylaws for the regular election or appointment to such office.

 

SECTION
6.  PRESIDENT.  The President shall be the chief executive officer and general
manager of the corporation.  The
President shall preside at all meetings of the shareholders and, in the absence
of the Chairman of the Board at all meetings of the Board. The president has
the general powers and duties of management usually vested in the chief
executive officer and the

 

13

 

general manager of a corporation and such other powers and duties as
may be prescribed by the Board.

 

SECTION
7.  VICE PRESIDENTS.  In the absence or disability of the
President, the Vice Presidents in order of their rank as fixed by the Board or,
if not ranked, the Vice President designated by the Board, shall perform all
the duties of the President, and when so acting shall have all the powers of,
and be subject to all the restrictions upon the President.  The Vice Presidents shall have such other
powers and perform such other duties as from time to time may be prescribed for
them respectively by the President or the Board.

 

SECTION
8.  SECRETARY.  The Secretary shall keep or cause to be kept, at the principal
executive offices and such other place as the Board may order, a book of
minutes of all meetings of shareholders, the Board, and its committees, with
the time and place of holding, whether regular or special, and, if special, how
authorized, the notice thereof given, the names of those present at Board and
committee meetings, the number of shares present or represented at
shareholders’ meetings, and proceedings thereof.  The Secretary shall keep, or cause to be kept, a copy of the
bylaws of the corporation at the principal executive office of the corporation.

 

The Secretary
shall keep, or cause to be kept, at the principa1 executive office, a share
register, or a duplicate share register, showing the names of the shareholders
and their addresses, the number and classes of shares held by each, the number
and date of certificates issued for the same, and the number and date of cancellation of  every certificate
surrendered for cancellation.

 

The Secretary
shall give, or cause to be given, notice of all the meetings of the
shareholders and of the Board and any

 

14

 

committees thereof required by
these bylaws or by law to be given, shall keep the seal of the corporation in
safe custody, and shall have such other powers and perform such other duties as
may be prescribed by the Board.

 

SECTION
9.  TREASURER.  The Treasurer is the chief financial
officer  of the corporation and shall keep and maintain, or cause to
be kept and maintained, adequate and correct accounts of the properties and
financial transactions  of  the corporation, and shall send or cause
to be sent to the shareholders of the corporation such financial statements and
reports as are by law or these bylaws required to be sent to them.

 

The Treasurer
shall deposit all monies and other valuables in the name and to the credit of
the corporation with such depositories as may be designated by the Board.  The Treasurer shall disburse the funds of
the corporation as may be ordered by the Board, shall render to the President
and directors, whenever  they
request it, an account of all transactions as Treasurer and of the financial
conditions of the corporation, and shall have such other powers and perform
such other duties as may be prescribed by the Board.

 

SECTION
10.  AGENTS.  The President, any Vice-President, the Secretary or Treasurer may
appoint agents with power and authority, as defined or limited in their
appointment, for and on behalf of the corporation to execute and deliver, and
affix the seal of the corporation thereto, to bonds, undertakings,
recognizance, consents of surety or other written obligations in the nature
thereof and any said officers may remove any such agent and revoke the power
and authority given to him.

 

15

 

ARTICLE V

OTHER PROVISIONS

 

SECTION
1.  DIVIDENDS.  The Board may from time to time declare, and the corporation may
pay, dividends on its outstanding shares in the manner and on the terms and
conditions provided by law, subject to any contractual restrictions on which
the corporation is then subject.

 

SECTION
2.  INSPECTION OF BY-LAWS.  The Corporation shall keep in its Principal
executive Office the original or a copy of these bylaws as amended to date
which shall be open to inspection to shareholders
at all reasonable times during office hours. 
If the Principal Executive Office of the corporation is outside the
State of Nevada and the Corporation has no principal business office in such
State, it shall upon the written notice of any shareholder furnish to such
shareholder a copy of these bylaws as amended to date.

 

SECTION
3.  REPRESENTATION OF SHARES OF OTHER
CORPORATIONS.  The President or any
other officer or officers authorized by the Board or the President are each authorized
to vote, represent, and exercise on behalf of the Corporation all rights
incident to any and all shares of any other corporation or corporations
standing in the name of the Corporation. The authority herein granted may be
exercised either by any such officer in person or by any other person
authorized to do so by proxy or power
of attorney duly executed by said officer.

 

ARTICLE VI

INDEMNIFICATION

 

SECTION
1.  INDEMNIFICATION IN ACTIONS BY THIRD
PARTIES.  Subject to the limitations of
law, if any, the corporation shall have the power to indemnify any director,

 

16

 

officer, employee and agent of
the corporation who was or  is a party
or is threatened to be made a party to any proceeding (other than an action by
or in the right of to procure a judgment in its favor) against expenses,
judgments, fines, settlements and other amounts actually and reasonably
incurred in connection with such proceeding, provided that the Board shall find
that the director, officer, employee or agent acted in good faith and in a
manner which such person reasonably believed in the best interests of the
corporation and, in the case of criminal proceedings, had no reasonable cause
to believe the conduct was unlawful. 
The termination of any proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere shall not, of itself create a
presumption that such person did not act in good faith and in a manner which
the person reasonably believed to be in the best interests of the corporation
or that such person had reasonable cause to believe such person's conduct was
unlawful.

 

SECTION
2.  INDEMNIFICATION IN ACTIONS BY OR ON
BEHALF OF THE CORPORATION.  Subject to
the limitations of law, if any, the Corporation shall have the power to
indemnify any director, officer, employee and agent of the corporation who was
or is threatened to be made a party to any threatened, pending or completed
legal action by or in the right of the Corporation to procure a judgment in its
favor, against expenses actually and reasonable incurred by such person in
connection with the defense or settlement, if the Board of Directors determine
that such person acted in good faith, in a manner such person believed to be in
the best interests of the Corporation and with such care, including reasonable
inquiry, as an ordinarily prudent person would use under similar circumstances.

 

SECTION
3.  ADVANCE OF EXPENSES.  Expenses incurred in defending any
proceeding may be advanced by the Corporation prior to the final disposition of
such proceeding upon receipt

 

17

 

of an undertaking by or on
behalf of the officer, director, employee or agent to repay such amount unless
it shall be determined ultimately that the officer or director is entitled to
be indemnified as authorized by this Article.

 

SECTION
4.  INSURANCE.  The corporation shall have power to purchase and maintain
insurance on behalf of any officer, director, employee or agent of the
Corporation against any liability asserted against or incurred by the officer,
director, employee or agent in such capacity or arising out of such person’s
status as such whether or not the corporation would have the power to indemnify
the officer, or director, employee or agent against such liability under the
provisions of this Article.

 

ARTICLE VII

AMENDMENTS

 

These bylaws may be altered, amended or repealed either by approval of
a majority of the outstanding shares entitled to vote or by the
approval of the Board; provided however that after the issuance of shares, a
bylaw specifying or changing a fixed number of directors or the maximum or
minimum number or changing from a fixed to a flexible Board or vice versa may
only be adopted by the approval by an affirmative vote of not less than
two-thirds of the corporation’s issued and outstanding shares entitled to vote.

 

18

 

CERTIFICATE OF PRESIDENT

 

THIS IS TO
CERTIFY that I am the duly elected, qualified and acting president of BIOPLEXUS
CORPORATION and that the above and foregoing. 
Bylaws, constituting a true original copy were duly adapted as  the Bylaws of said corporation on  June 16 1993, by the Directors of said
corporation.

 

IN WITNESS
WHEREOF, I have hereunto set my hand.

Dated:  June 16 1993

 

	
   

  	
  /s/ Donald
  K. McGhan

  	
   

  
	
   

  	
   President

  
	
   

  	
   DONALD K. McGHAN

  

 

19

 

Annex 3

 

 

ACTION
BY BOARD OF DIRECTORS

 

OF

 

BIOPLEXUS
CORPORATION

 

BY
UNANIMOUS WRITTEN CONSENT

 

The undersigned,
being all of the Directors of BIOPLEXUS CORPORATION, a Nevada corporation (the
“Company”), and acting pursuant to Section 78.315 of the Nevada Revised
Statutes, hereby consent in writing to the adoption of the following actions in
lieu of a special meeting of the Board of Directors:

 

GUARANTEE AND
COLLATERAL AGREEMENT

 

WHEREAS,
INAMED Corporation (“Inamed”) intends to enter into that certain Credit
Agreement dated as of February 1, 2000 (the “Credit Agreement”), by and
among Inamed, the Lenders, Bear Stearns Corporate Lending Inc., as Syndication
Agent ( in such capacity, the “Syndication Agent”), Bear, Stearns &
Co. Inc., as sole lead arranger and sole book manager (the “Arranger” )
and the Administrative Agent;

 

WHEREAS,
pursuant to the terms of the Credit Agreement, the Company, as a subsidiary of
Inamed, is required to guaranty all of Inamed’s obligations under the Credit
Agreement (the “Obligations”, as defined under the Credit Agreement), by
entering into that certain Guarantee and Collateral Agreement (the “Guarantee
and Collateral Agreement”) dated of even date with the Credit Agreement, a
copy of which has been presented to the Board;

 

WHEREAS, pursuant to the terms and conditions of the Credit Agreement,
the Company, as a subsidiary of Inamed, is required to secure payment and
performance of the Obligations, also by entering into that same Guarantee and
Collateral Agreement (as defined above), whereby the Company would grant to
Administrative Agent, for the benefit of the Administrative Agent and the
Lenders, a perfected, first priority Lien on all of its right, title and
interest in all of its personal property, including but not limited to all
capital stock of its domestic

 

 

subsidiaries, 65% of the
capital stock of its foreign subsidiaries, accounts, fixtures, contract rights,
intellectual property, licences, material property, etc.

 

WHEREAS, the
Board of Directors of the Company has determined that in order to give effect
to the Credit Agreement, it is advisable and in the best interests of the
Company that the Company enter into the Guarantee and Collateral Agreement and
each of the transactions contemplated thereby;

 

NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors deems it advisable and
in the best interests of the Company to enter into the Guarantee and Collateral
Agreement and any other documents contemplated thereby and such documents
hereby are authorized and approved, with such changes thereto as the Chairman,
the President, any Vice President or the Secretary of the Company (the “proper
officers”) may approve, such approval to be conclusively evidenced by such
officer’s or officers’ execution and delivery thereof;

 

RESOLVED
FURTHER, that the proper officers of the Company be, and each of them hereby
is, authorized, empowered and directed, in the name and on behalf of the
Company, to enter into the Guarantee and Collateral Agreement, substantially on
the terms and conditions as presented and described to the Board, with such
changes thereto as the proper officers may approve, such approval to be
conclusively evidenced by such officer’s or officers’ execution and delivery
thereof; and

 

RESOLVED
FURTHER, that the proper officers of the Company be, and each of them hereby
is, authorized and directed to enter into such other agreements, documents,
promissory notes, and instruments with respect to any of the foregoing, in such
form and on such terms and conditions as may be agreed to by the proper
officers of the Company, Administrative Agent and the Lenders, and to take such
other actions with respect to the foregoing as may be required by
Administrative Agent and the Lenders; and that the proper officers of the
Company be, and each of them hereby is, authorized, directed and empowered, in
the name and on behalf of the Company, to execute and deliver such other
agreements, documents, promissory notes, deeds of trust, mortgages and other
instruments and to perform all other acts as such officers shall approve in
connection with any of the above, the execution of such agreements, documents,
promissory notes and other instruments or the taking of any such actions to be
conclusive evidence of such approval.

 

2

 

GENERAL
AUTHORIZATIONS

 

RESOLVED, that
the officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to do or
cause to be done all such other acts or things, and to execute and deliver, or
cause to be executed and delivered, all such other documents, instruments,
agreements, notes, undertakings, guarantees and certificates of any kind and
nature whatsoever, as such officer or officers may deem necessary or
appropriate to effectuate or carry out the purposes and intent of the foregoing
resolutions; all such other actions to be performed in such manner, and all
such other documents, instruments, agreements, notes, undertakings, guarantees
and certificates to be executed and delivered in such form, as the officer or
officers performing or executing the same shall approve, such officer’s or
officers’ approval thereof to be conclusively evidenced by the performance of
any such other action or the execution and delivery of any such other
documents, instruments, agreements, notes, undertakings and certificates; and

 

RESOLVED
FURTHER, that all acts and things previously done by any of the officers of the
Company, on or prior to the date hereof, in the name and on behalf of the
Company, in connection with the transactions contemplated by the foregoing
resolutions, are in all respects ratified, approved, confirmed and adopted as
the acts and deeds by and on behalf of the Company.

 

* * *

 

3

 

This Unanimous
Written Consent may be executed in
one or more counterparts, each of which shall be considered as an
original.  The Secretary of the Company
shall file this Unanimous Written Consent in the minute book of the Company and
it shall become part of the records of the Company.

 

Dated:  February 1, 2000

 

	
   

  	
  /s/ Richard
  G. Babbitt

  	
   

  
	
   

  	
  Richard G.
  Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   Ilan K. Reich

  

 

4

 

Annex 4

 

 

 

SECRETARY OF STATE

[SEAL OF STATE OF NEVADA]

STATE OF NEVADA

 

 

CERTIFICATE OF EXISTENCE

WITH STATUS IN GOOD STANDING

 

I, DEAN HELLER, the duly
elected and qualified Nevada Secretary of State, do hereby certify that I am,
by the laws of said State, the custodian of the records relating to filings by
corporations, limited-liability companies, limited partnerships,
limited-liability partnerships and business trusts pursuant to Title 7 of the
Nevada Revised Statutes which are either presently in a status of good standing
or were in good standing for a time period subsequent of 1976 and am the proper
officer to execute this certificate.

 

I further certify that the
records of the Nevada Secretary of State, at the date of this certificate,
evidence, BIOPLEXUS
CORPORATION, as a corporation duly organized under the laws of
Nevada and existing under and by virtue of the laws of the State of Nevada
since June 4, 1993, and is in good standing in this state.

 

	
   

  	
  IN WITNESS
  WHEREOF, I have hereunto set my hand and affixed the Great Seal of State, at
  my office, in Carson City, Nevada, on January 21, 2000.

  
	
   

  	
   

  	
   

  
	
  [SEAL]

  	
   

  	
  /s/ Dean Heller

  
	
   

  	
   

  	
  Secretary of State

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Certification Clerk

  
				

 

 

COLLAGEN AESTHETICS, INC.

 

SECRETARY’S CERTIFICATE

 

Reference is
hereby made to the Credit Agreement, dated as of  February 1, 2000 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Inamed Corporation
(the “Borrower"), the Lenders, Bear Stearns Corporate Lending Inc.,
as Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent. 
Capitalized terms used herein and not otherwise defined shall have the
meanings assigned in the Credit Agreement. 
This certificate is being delivered pursuant to Section 5.1(g) of the
Credit Agreement.

 

I, David E.
Bamberger, hereby certify that I am the Secretary of COLLAGEN AESTHETICS, INC.
(the “Company”), and as such have access to the Company’s corporate records and
am familiar with the matters therein con­tained and herein certified, and that:

 

1.             Attached hereto as Annex 1 are
true, correct and complete copies of (i) the Certificate of Incorporation of
the Company, as filed with the Secretary of State of the State of Delaware on
October 10, 1986, (ii) the Certificate of Merger, as filed with the Secretary
of State of the State of Delaware on June 13, 1988, (iii) the Certificate of
Ownership, as filed with the Secretary of State of the State of Delaware on
October 1, 1990, (iv) the Certificate of Ownership, as filed with the Secretary
of State of the State of Delaware on June 18, 1992, (v) the Certificate of
Correction, as filed with the Secretary of State of the State of Delaware on
June 26, 1992 and (vi) the Certificate of Amendment, as filed with the
Secretary of State of the State of Delaware August 13, 1998.

 

2.             Attached hereto as Annex 2 is a
true, correct and complete copy of the By-laws of the Company as presently in
effect on and as of the date hereof, which By-laws are in full force and effect
in said form without modification, amendment, rescission or repeal in any
respect.

 

3.             Attached hereto as Annex 3 is a
true, correct and complete copy of resolutions adopted by unanimous written
consent in lieu of a meeting in accordance with applicable laws and the
Articles of Incorporation and By-laws of

 

 

the Company, and such
resolutions (i) were duly adopted by the Board of Directors of the Company and
are in full force and effect on and as of the date hereof, not having been in
any way amended, altered or repealed, and (ii) constitute the only resolutions
of the Board of Directors of the Company relating to the subject matter of the
Credit Agreement, the other Loan Documents and the transactions contemplated
thereby.

 

4.             Attached hereto as Annex 4 is (i) a
true, correct and complete copy of a certificate from the Office of the
Secretary of State of the State of Delaware indicating that the Company is a
corporation existing under and by virtue of the laws of the State of Delaware
and is in good standing.

 

5.             There are no consents, licenses or
approvals required in connection with the execution, delivery and performance
by the Company or the validity and enforceability against the Company of the
Loan Documents to which it is a party.

 

[Remainder of page intentionally left blank.]

 

2

 

6.             The following persons are duly
qualified and acting officers of the Company, each of whom is authorized to
sign any of the Loan Documents to which the Company is a party, and each of
whom is duly elected to the office set forth opposite his respective name; the
signature appearing opposite the name of each such officer is his authentic
signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K.
  Reich

  	
  PRESIDENT

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   

  	
   

  
	
  David E.
  Bamberger

  	
  SECRETARY

  	
  /s/ David E.
  Bamberger

  	
   

  
					

 

IN WITNESS
WHEREOF, the undersigned has executed this Secretary’s Certificate as of the 1
day of February, 2000.

 

	
   

  	
  /s/ David E.
  Bamberger

  	
   

  
	
   

  	
   David E. Bamberger

  
	
   

  	
   Secretary

  

 

I, Ilan K.
Reich, President of the Company, hereby certify that David E. Bamberger is the
duly elected Secretary of the Company and that the signature appearing above is
his genuine signature.

 

	
   

  	
  /s/ Ilan K.
  Reich

  	
   

  
	
   

  	
   Ilan K. Reich

  
	
   

  	
   President

  

 

3

Annex 1

 

 

State of Delaware

 

Office of the
Secretary of State

 

I, EDWARD J. FREEL, SECRETARY OF STATE OF THE
STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF
THE CERTIFICATE OF INCORPORATION OF “COLLAGEN SUBSIDIARY, INC.”, FILED IN THIS
OFFICE ON THE TENTH DAY OF OCTOBER, A.D. 1986, AT 10 O’CLOCK A.M.

 

	
   

  	
   

  	
   

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2104191    8100

  	
   

  	
  AUTHENTICATION: 

  	
  0218055

  
	
   

  	
   

  	
   

  
	
  001039509

  	
   

  	
  DATE: 

  	
  01-26-00

  

 

 

CERTIFICATE OF INCORPORATION

 

OF

 

COLLAGEN SUBSIDIARY, INC.

 

1.             The name of the
corporation is Collagen Subsidiary, Inc. (the “Corporation”).

 

2.             The address of the
Corporation’s registered office in the State of Delaware is Corporation Trust
Center, 1209 Orange Street, in the City of Wilmington, County of New
Castle.  The name of its registered
agent at such address is The Corporation Trust Company.

 

3.              The nature of the
business or purposes to be conducted or promoted by the Corporation is to
engage in any lawful act or activity for which corporations may be organized
under the General Corporation Law of Delaware.

 

4.             (a)           The Corporation is authorized to
issue two classes of shares to be designated, respectively, “Preferred Shares”
and “Common Shares.” The number of shares of Preferred Shares authorized to be
issued is Five Million (5,000,000) and the number of shares of Common Shares
authorized to be issued is Twenty Eight Million Nine Hundred Fifty Thousand
(28,950,000).  The Preferred Shares and
the Common Shares shall each have a par value of $.01 per share.

 

(b)           The shares of Preferred Shares may be
issued from time to time in one or more series.  The Board of Directors of the Corporation is authorized, by
filing a certificate pursuant to the applicable law of the State of Delaware,
to:  (i) establish from time to time the
number of shares to be included in each such series; (ii) fix the voting
powers, designations, powers, preferences and relative, participating, optional
or other rights of the shares of each such series and the qualifications,
limitations or restrictions thereof, including but not limited to the fixing or
alteration of the dividend rights, dividend rate, conversion rights, conversion
rate, voting rights, rights and terms of redemption (including sinking fund
provisions), the redemption price or prices, and the liquidation preferences of
any wholly unissued series of shares of Preferred Shares; and (iii) increase or
decrease the number of shares of any series subsequent to the issue of shares
of that series, but not below the number of shares of such series then
outstanding.  In case the number of
shares of any series shall be so decreased, the number of shares constituting
such decrease shall resume the status which they had prior to the adoption of
the resolution originally fixing the number of shares of such series.

 

 

(c)       The
shares of Common Shares shall be issued in two series.  The first series of Common Shares shall be
designated Common Stock and shall consist of Twenty Eight Million Five Hundred
Thousand (28,500,000) shares with the rights, preferences, privileges and
restrictions granted or imposed in paragraph (d) below.  The second series of Common Shares shall be
designated Series C Common Stock and shall consist of Four Hundred Fifty Thousand
(450,000) shares with the rights, preferences, privileges and restrictions
granted or imposed in paragraph (d) below.

 

(d)       The
rights, preferences, privileges and restrictions granted to or imposed upon the
Common Stock and the Series C Common Stock and the holders thereof are as
follows:

 

(1)     Dividends
and Other Changes.

 

(aa)     No dividends may be
declared or paid with respect to any share of Series C Common Stock, except
share dividends in Series C Common Stock in proportion to any share dividend on
Common Stock payable in Common Stock.

 

(bb)    No stock split, stock
combination or dividend payable in shares of any series of Common Shares to
holders of shares of such series shall be effected as to any series of Common
Shares without an equivalent and proportionate split, combination or dividend
with respect to all other series of Common Shares.

 

(2)     Liquidation
Preference.

 

(aa)     In the event of any
liquidation, dissolution or winding up of the Corporation, the cash or other
assets available for distribution (if any) to the shareholders of the Corporation,
after payment to the holders of Preferred Shares of any liquidation preference
to which they are entitled, shall be distributed ratably to the holders of
Common Shares, with the holder of each share of Series C Common Stock to
receive one-tenth the amount to be distributed to the holder of each share of
Common Stock until the holder of each share of Series C Common Stock shall have
received an amount equal to $.67 per share of Series C Common Stock (adjusted
for stock splits and recombinations), and thereafter all remaining cash  or other amounts available for
distribution shall be distributed ratably among the holders of Common Stock.

 

(bb)    If the consideration
received by the Corporation in such liquidation, dissolution or winding up is
other than cash or indebtedness, its value will be deemed to be its fair market
value as determined by the Board of Directors of the Corporation.

 

2

 

(3)     Convecrsion
Rights of Series C Common Stock.

 

(aa)     The shares of Series C
Common Stock shall not be convertible into shares of Common Stock, except as
provided below.  Upon the occurrence of
any of the following events, each share of Series C Common Stock shall
automatically be converted into one share of Common Stock:

 

(i)     immediately after the end
of any four consecutive fiscal quarters in which the Corporation and its
subsidiaries realize revenues from continuing operations of at least
$30,000,000 and net operating income of at least $10,000,000 (as shown on the
Corporation’s unaudited (or audited, if available) consolidated financial
statements for such periods).  “Net
operating income” shall mean net sales of the Corporation less (i) costs of
goods sold as reflected on the Corporation’s unaudited (or audited, if
available) financial statements (which includes manufacturing,  allocated overhead expenses, quality
assurance, quality control and products liability insurance); (ii) general and
administrative expenses; (iii) marketing expenses; and (iv) an amount equivalent
to 5% of net sales as an allowance for research and development expenses; or

 

(ii)    immediately prior to the
consummation of any merger or consolidation of the Corporation with or into
another corporation or the sale of all or substantially all the assets of the
Corporation to another person or entity or other form of reorganization, in
which shareholders of the Corporation are to receive cash or other securities
or property with a fair market value (as determined by the Corporation’s Board
of Directors) of at least $100,000,000 in exchange for their shares of the
Corporation; or

 

(iii)   immediately after the
acquisition by any person (directly or indirectly) in any transaction or series
of transactions  of  more than 50% of the voting power of the
voting securities of the Corporation then outstanding, provided that the total
fair market value of all voting securities of the Corporation then outstanding
(as determined by the Corporation’s Board of Directors) is at least
$100,000,000 at such time.  “Person”
shall mean any person, firm, association or company of affiliates or
subsidiaries thereof or other person or entity which controls, is controlled by
or is under common control with the designated party.  “Control” shall mean ownership of voting securities entitled to
elect a majority of the authorized number of directors or a majority interest
in profits, as the case may be.  “Voting
securities” shall mean Common Shares and any other securities of the
Corporation entitled to vote generally for the election of directors.

 

3

 

(bb)    The conversion of shares
of Series C Common Stock hereunder shall be effected by notice given by the
Corporation to the holders of Series C Common Stock that an event of conversion
described in Article 4, Paragraph (d) (3) (aa) has occurred and by the
surrender at the office of the Corporation or any transfer agent for the Series
C Common Stock of the certificate therefor, in such form and accompanied by
such documents, if any, as the Corporation may require.  The Corporation shall, as soon as
practicable thereafter, issue and deliver at such office to such holder of
Series C Common Stock a certificate or certificates for the number of shares of
Common Stock to which such holder shall be entitled as aforesaid.  Such conversion shall be deemed to have been
made immediately prior to the close of business on the date of occurrence of
the applicable event of conversion described in Article 4, Paragraph (d) (3)
(aa) or the date of the surrender of the shares of Series C Common Stock to be
converted, whichever is the later to occur, and the person or persons entitled
to receive the shares of Common Stock issuable upon such conversion shall be
treated for all purposes as the record holder or holders of such shares of
Common Stock on such date.

 

(cc)     No fractional shares
shall be issuable upon conversion, and the number of shares of Common Stock to
be issued shall be rounded down to the nearest whole share.  If any fractional interest in a share of
Common Stock would, except for the provisions of this subparagraph, be
deliverable upon conversion of  any
of the Series C Common Stock, the Corporation shall pay to the holder of such
converted stock an amount in cash equal to the current market value of such
fractional interest, as determined by the Corporation’s Board of Directors.

 

(dd)    The Corporation shall at
all times reserve and keep available out of its authorized but unissued shares
of Common Stock solely for the purpose of effecting the conversion of the
shares of Series C Common Stock such number of shares of its Common Stock as
shall from time to time be sufficient to effect the conversion of all
outstanding shares of Series C Common Stock, and, if at any time the number of
authorized but unissued shares of Common Stock shall not be sufficient to
effect the conversion of all then outstanding shares  of the Series C Common Stock, the Corporation will take
such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purpose.

 

(ee)     Any notice required by
the provisions of this Article 4, Paragraph (d)(3) to be given to the holders
of shares of Series C Common Stock shall be deemed given if deposited in the
United States mail, first class postage prepaid, and addressed to 

 

4

 

each holder of
record at his address appearing on the books of the Corporation.

 

(4)     Voting
Rights.

 

On all matters
submitted to a vote of the holders of the Corporation’s Common Shares, each
share of Common Stock shall entitle the holder thereof to one vote and each
share of Series C Common Stock shall entitle the holder thereof to one tenth of
one vote.  The holders of Series C
Common Stock shall vote together with holders of Common Stock on all matters,
except as may otherwise be required by law.

 

5.              The name and
mailing address of the incorporator are as follows:

 

Craig W. Johnson                                                                 Two
Palo Alto Square

Palo Alto, California 94306

 

6.              The Corporation is
to have perpetual existence.

 

7.              In furtherance and
not in limitation of the powers conferred by statute, the Board of Directors is
expressly authorized to make, alter, amend or repeal the By-Laws of the
Corporation.

 

8.              The number of
directors which will constitute the whole Board of Directors of the Corporation
shall be as specified in the By-Laws of the Corporation.

 

9.              At all elections
of directors of the Corporation, and subject to the provisions of the By-Laws
of the Corporation, each holder of stock or of any class or classes or of a
series or series thereof shall be entitled to as many votes as shall equal the
number of votes which (except for such provision as to cumulative voting) he
would be entitled to cast for the election of directors with respect to his
shares of stock multiplied by the number of directors to be elected by him, and
he may cast all of such votes for a single director or may distribute them
among the number to be voted for, or for any two or more of them as he may see
fit.

 

10.            Meetings of
stockholders may be held within or without the State of Delaware, as the
By-Laws may provide. The books of the Corporation may be kept (subject to any
provision contained in  the
statutes) outside the State of Delaware at such place or places as may be
designated from time to time by the Board of Directors or in the By-Laws of the
Corporation.

 

5

 

11.            To the fullest
extent permitted by the Delaware General Corporation Law as the same exists or
as may hereafter be amended, a director of the Corporation shall not be
personally liable to the Corporation or its stockholders for monetary damages
for breach of fiduciary duty as a director. 
Neither any amendment nor repeal of this Article 11, nor the adoption of
any provision of this Certification of Incorporation inconsistent with this
Article 11, shall eliminate or reduce the effect of this Article 11 in respect
of any matter occurring, or any cause of action, suit or claim that, but for
this Article 11, would accrue or arise, prior to such amendment, repeal or
adoption of an inconsistent provision.

 

12.            Advance notice of
new business and stockholder nominations for the election of directors shall be
given in the manner and to the extent provided in the By-Laws of the
Corporation.

 

13.            The Corporation
reserves the right to amend, alter, change or repeal any provision contained in
this Certificate of Incorporation, in the manner now or hereafter prescribed by
statute, and all rights conferred upon stockholders herein are granted subject
to this reservation.

 

I, THE
UNDERSIGNED, being the incorporator hereinbefore named, for the purpose of
forming a corporation pursuant to the General Corporation Law of the State of
Delaware, do make this certificate, hereby declaring and certifying that this
is my act and deed and the facts herein stated are true, and accordingly have
hereunto set my hand this 8th day of October, 1986.

 

	
   

  	
   

  	
  /s/ Craig W.
  Johnson

  
	
   

  	
   Craig W. Johnson

  

 

6

 

State of Delaware

 

Office of the
Secretary of State

________________________

 

I, EDWARD J.
FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE
ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF MERGER, WHICH MERGES:

 

“COLLAGEN
CORPORATION”, A CALIFORNIA CORPORATION,

 

WITH AND INTO
“COLLAGEN SUBSIDIARY, INC.” UNDER THE NAME OF “COLLAGEN CORPORATION”, A
CORPORATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF DELAWARE, AS
RECEIVED AND FILED IN THIS OFFICE THE TWELFTH DAY OF FEBRUARY, A.D. 1987, AT 10
O’CLOCK A.M.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2104191   8100M

  	
   

  	
  AUTHENTICATION:

  	
  0218056

  
	
   

  	
   

  	
   

  
	
  001039509

  	
   

  	
  DATE:

  	
  01-26-00

  
					

 

 

1

 

CERTIFICATE OF MERGER

 

OF

 

COLLAGEN CORPORATION

A CALIFORNIA CORPORATION

 

INTO

 

COLLAGEN SUBSIDIARY, INC.

A DELAWARE CORPORATION

 

The undersigned corporation does hereby certify:

 

FIRST:      That
the name and state of incorporation of each of the constituent corporations of
the merger are as follows:

 

	
  NAME

  	
   

  	
  STATE OF INCORPORATION

  	
   

  
	
  Collagen Corporation

  	
   

  	
  California

  	
   

  
	
  Collagen Subsidiary, Inc.

  	
   

  	
  Delaware

  	
   

  

 

SECOND:  That an Agreement and Plan of Merger (the “Merger
Agreement”) between the parties to the merger has been approved, adopted,
certified, executed and acknowledged by each of the con­stituent corporations
in accordance with the requirements of subsection (c) of Section 252 of the
General Corporation Law of the State of Delaware and that the effective time of
the merger shall be noon eastern standard time on the day on which this
Certificate is filed with the Secretary of State of the State of Delaware.

 

THIRD:  That the name of the
surviving corporation of the merger shall be Collagen Subsidiary, Inc., a
Delaware corporation which name shall be changed to Collagen Corporation.

 

FOURTH:  That the Certificate of
Incorporation of Collagen Subsidiary, Inc., a Delaware corporation, shall be
the certificate of incorporation of the surviving corporation except that
Article FIRST be amended to read as follows:

 

FIRST:         The name of the corporation is

Collagen Corporation

 

 

FIFTH: 
That the executed Merger Agreement is on file at the principal place of
business of the surviving corporation. 
The address of said principal place of business is 2500 Faber Place,
Palo Alto, California 94303.

 

SIXTH: 
That a copy of the Merger Agreement will be furnished by the surviving
corporation, on request and without cost, to any stockholder of any constituent
corporation.

 

SEVENTH: 
That the authorized capital stock of Collagen Corporation, a California
corporation, is 28,500,000 shares of Common Stock, no par value, 450,000 shares
of Series C Common Stock, no par value, 300,000 shares of undesignated Common
Shares, and 5,000,000 shares of undesignated Preferred Shares, no par value.

 

	
   

  	
  COLLAGEN
  SUBSIDIARY, INC.

  
	
   

  	
   A
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ William
  W. Jaeger

  
	
   

  	
   

  	
   

  	
   William W. Jaeger,

  
	
   

  	
   

  	
   

  	
   Vice President - Finance and Administration

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  /s/ Craig W.
  Johnson

  	
   

  	
   

  
	
   Craig W. Johnson, Secretary

  	
   

  
					

 

2

 

State of Delaware

 

Office of the
Secretary of State

 

I, EDWARD J.
FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE
ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF OWNERSHIP, WHICH
MERGES:

 

“COLLAGEN
RESEARCH CORPORATION”, A DELAWARE CORPORATION,

 

WITH AND INTO
“COLLAGEN CORPORATION” UNDER THE NAME OF “COLLAGEN CORPORATION”, A CORPORATION
ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF DELAWARE, AS RECEIVED AND
FILED IN THIS OFFICE THE FIRST DAY OF OCTOBER, A.D. 1990, AT 10:01 O’CLOCK A.M.

 

	
   

  	
   

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2104191     8100M

  	
   

  	
  AUTHENTICATION:
  

  	
  0218058

  
	
   

  	
   

  	
   

  
	
  001039509

  	
   

  	
  DATE:

  	
  01-26-00

  

 

 

1

 

CERTIFICATE OF OWNERSHIP AND MERGER

 

Howard D. Palefsky and Craig W.
Johnson certify that:

 

1.                                      They are the
President and Secretary, respectively, of Collagen Corporation, a Delaware
corporation.

 

2.                                       This Corporation
owns all the outstanding shares of Collagen Research Corporation, a Delaware
corporation.

 

3.                                        The Board of
Directors of this Corporation duly adopted the following resolution on August
10, 1990:

 

RESOLVED: That this Corporation merge Collagen
Research Corporation, a Delaware corporation and its wholly owned subsidiary
corporation (“CRC”), into itself and assume all of CRC’s obligations pursuant
to Section 253 of the Delaware Corporation Law.

 

RESOLVED FURTHER: That the President and the
Secretary of this Corporation be and they hereby are directed to make, execute
and acknowledge a Certificate of Ownership and Merger setting forth a copy of
the resolution to merge CRC into this corporation and to assume said
subsidiary’s liabilities and obligations and the date of adoption thereof, and
to file the same in the office of the Secretary of State of Delaware and a
certified copy thereof in the Office of the Recorder of Deeds of the County of
Delaware in which this Corporation is located.

 

We further declare under penalty of perjury under the laws of the State
of Delaware that the matters set forth in this Certificate are true and correct
of our own knowledge.

 

 

IN WITNESS
WHEREOF, this Corporation has caused its corporate seal to be affixed and this
certificate to be signed by Howard D. Palefsky, its President and Craig W.
Johnson, its Secretary, this 24th day of September , 1990.

 

	
   

  	
  COLLAGEN
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  /s/ Howard
  D. Palefsky

  
	
   

  	
   Howard
  D. Palefsky, President

  
	
   

  	
   

  
	
   

  	
  ATTEST: 
  

  	
  /s/ Craig W.
  Johnson

  
	
   

  	
   Craig W. Johnson, Secretary

  
			

 

 

State of Delaware

 

Office of the
Secretary of State

________________________

 

I, EDWARD J.
FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE
ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF OWNERSHIP, WHICH
MERGES:

 

“ORCON
SCIENCES, INC.”, A MASSACHUSETTS CORPORATION,

 

WITH AND INTO
“COLLAGEN CORPORATION” UNDER THE NAME OF “COLLAGEN CORPORATION”, A CORPORATION
ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF DELAWARE, AS RECEIVED AND
FILED IN THIS OFFICE THE THIRTIETH DAY OF JUNE, A.D. 1988, AT 10 O’CLOCK A.M.

 

	
   

  	
  /s/ Edward
  J. Freel

  
	
  [SEAL]

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  
	
  2104191     8100M

  	
  AUTHENTICATION: 

  	
  0218057

  
	
  001039509

  	
  DATE:

  	
  01-26-00

  

 

 

1

 

CERTIFICATE OF OWNERSHIP

 

OF COLLAGEN CORPORATION

 

James T.
McKinley and Craig W. Johnson certify that:

 

1.   They are the Vice President–Finance and
Administration and Secretary, respectively, of Collagen Corporation, a Delaware
corporation.

 

2.   The corporation owns 100 percent of the
outstanding shares of Orcon Sciences, Inc., a corporation organized under the
laws of the Commonwealth of Massachusetts.

 

3.   The following resolution was duly adopted by
the Board of Directors of the corporation at a meeting held on June 27, 1988:

 

RESOLVED:               That the corporation shall
merge into itself Orcon Sciences, Inc., its wholly-owned subsidiary
corporation, and shall assume all of the liabilities of said subsidiary
corporation, effective on or about June 30, 1988.

 

	
  COLLAGEN
  CORPORATION 

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
  By:  

  	
  /s/ James T. McKinley

  	
   

  	
   

  
	
   

  	
   James T. McKinley

  	
   

  	
   

  
	
   

  	
   Vice President – Finance and Administration

  
	
   

  	
   

  	
  Dated: June
  27, 1988

  
	
  ATTEST:

  
	
   

  
	
  /s/ Craig W.
  Johnson

  	
   

  
	
   Craig W. Johnson

  
	
   Secretary

  
									

 

 

State of Delaware

 

Office of the
Secretary of State

________________________

 

I, EDWARD J.
FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE
ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF OWNERSHIP, WHICH
MERGES:

 

“COLLAGEN
INTERNATIONAL SALES CORPORATION”, A CALIFORNIA CORPORATION,

 

WITH AND INTO
“COLLAGEN CORPORATION” UNDER THE NAME OF “COLLAGEN CORPORATION”, A CORPORATION
ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF DELAWARE, AS RECEIVED AND
FILED IN THIS OFFICE THE EIGHTEENTH DAY OF JUNE, A.D. 1992, AT 2 O’CLOCK P.M.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2104191     8100M

  	
   

  	
  AUTHENTICATION: 

  	
  0218059

  
	
   

  	
   

  	
   

  
	
  001039509

  	
   

  	
  DATE:

  	
  01-26-00

  
					

 

 

1

 

CERTIFICATE OF OWNERSHIP AND MERGER

 

Howard D.
Palefsky and Craig W. Johnson certify that:

 

1.             They are the President and the
Secretary, respectively, of Collagen Corporation, a Delaware corporation.

 

2.             This corporation owns all the
outstanding shares of Collagen International Sales, Inc., a California
corporation.

 

3.             The Board of Directors of this
corporation duly adopted the following resolution on June 5, 1992:

 

“RESOLVED:     That this
corporation merge Collagen International Sales, Inc., a California corporation,
its wholly-owned subsidiary corporation, into itself and assume all its
obligations pursuant to Section 253 of the Delaware Corporations Code and
Section 1110 of the California Corporations Code.”

 

We further
declare under penalty of perjury under the laws of the States of Delaware and
California that the matters set forth in this certificate are true and correct
of our own knowledge.

 

Date: June 5 , 1992

 

	 
	
  /s/ Howard D.
  Palefsky

  
	
   

  	
   Howard D. Palefsky, President

  
	
   

  	
   

  
	 
	
  /s/ Craig W.
  Johnson

  
	
   

  	
   Craig W. Johnson, Secretary

  

 

 

State of Delaware

 

Office of the
Secretary of State

________________________

 

I, EDWARD J. FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY
CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF
CORRECTION OF “COLLAGEN CORPORATION”, FILED IN THIS OFFICE ON THE TWENTY-SIXTH
DAY OF JUNE , A.D. 1992, AT 1 O’CLOCK P.M.

 

	
   

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2104191    8100

  	
   

  	
  AUTHENTICATION: 

  	
  0218060

  
	
   

  	
   

  	
   

  
	
  001039509

  	
   

  	
  DATE : 

  	
  01-26-00

  

 

 

1

 

CERTIFICATE OF CORRECTION

FILED TO CORRECT A CERTAIN ERROR IN

THE CERTIFICATE OF OWNERSHIP AND MERGER OF

COLLAGEN INTERNATIONAL SALES CORPORATION,

A CALIFORNIA CORPORATION,

WITH COLLAGEN CORPORATION,

A DELAWARE CORPORATION,

ON JUNE 18, 1992

 

Collagen
Corporation, a corporation organized and existing under and by virtue of the
General Corporation Law of the State of Delaware,

 

DOES HEREBY
CERTIFY:

 

1.             The
name of the corporation is Collagen Corporation.

 

2.             That
a Certificate of Ownership and Merger for the above corporation was filed by
the Secretary of State of Delaware on June 18, 1992 and that said Certificate requires
correction as permitted by Section 103 of the General Corporation Law of the
State of Delaware.

 

3.             The
inaccuracy or defect of said Certificate to be corrected is as follows:  the name of the California corporation being
merged into Collagen Corporation was stated improperly on the original
Certificate.

 

4.             Article
2 of the Certificate is corrected to read as follows:

 

“This corporation owns all the outstanding shares of Collagen
International Sales Corporation, a California corporation.”

 

 

5.             Article
3 of the Certificate is corrected to read as follows:

 

“The Board of
Directors of this corporation duly adopted the following resolution on June 5,
1992:

 

RESOLVED:        That
this corporation merge Collagen International Sales Corporation, a California corporation,
its wholly-owned subsidiary corporation, into itself and assume all its
obligations  pursuant  to Section 253 of the Delaware
Corporations Code and Section 1110 of the California Corporations Code.”

 

IN WITNESS
WHEREOF, said Collagen Corporation has caused this Certificate to be signed by
Howard D. Palefsky, its President, and attested by Craig W. Johnson, its
Secretary, this 24th day of June, 1992.

 

	
   

  	
   

  	
  COLLAGEN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Howard
  D. Palefsky

  
	
   

  	
   

  	
   Howard D. Palefsky, President 

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Craig W.
  Johnson

  	
   

  	
   

  
	
   Craig W. Johnson, Secretary

  	
   

  	
   

  

 

2

 

State of Delaware

 

Office of the
Secretary of State

________________________

 

I, EDWARD J. FREEL, SECRETARY OF STATE OF THE
STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF
THE CERTIFICATE OF AMENDMENT OF “COLLAGEN CORPORATION”, CHANGING ITS NAME FROM
“COLLAGEN CORPORATION” TO “COLLAGEN AESTHETICS, INC.”, FILED  IN THIS
OFFICE ON THE THIRTEENTH DAY OF AUGUST, A.D. 1998, AT 9 O’CLOCK A.M.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2104191     8100

  	
   

  	
  AUTHENTICATION: 

  	
  0218061

  
	
   

  	
   

  	
   

  
	
  001039509

  	
   

  	
  DATE:

  	
   01-26-00

  

 

 

1

 

 

CERTIFICATE OF AMENDMENT OF

 

CERTIFICATE OF INCORPORATION

 

OF

 

COLLAGEN CORPORATION

 

The undersigned hereby certifies that:

 

1.             He
is the duly elected and acting President and Chief Executive Officer of
Collagen Corporation, a Delaware corporation.

 

2.             The
Certification of Incorporation of this corporation was originally filed with
the Secretary of State of Delaware on October 10, 1986.

 

3.             Pursuant
to Section 242 of the General Corporation Law of the State of Delaware, this
Certificate of Amendment of Certificate of Incorporation amends Article I of
this corporation’s Certificate of Incorporation to read in its entirety as
follows:

 

“The name of this corporation is Collagen
Aesthetics, Inc.”

 

4.             The
foregoing Certificate of Amendment has been duly adopted by this corporation’s
Board of Directors and stockholders in accordance with the applicable
provisions of the General Corporation Law of the State of Delaware.

 

Executed at Palo Alto, California, August 13,
1998.

 

	
    

  	
  /s/ Gary S. Petersmayer

  	
   

  
	
   

  	
   Gary S. Petersmayer,

  
	
   

  	
   President
  and Chief Executive Officer

  

 

 

State of Delaware

 

Office of the
Secretary of State

________________________

 

I, EDWARD J.
FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE
ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF OWNERSHIP, WHICH
MERGES:

 

“INAMED
ACQUISITION CORPORATION”, A DELAWARE CORPORATION,

 

WITH AND INTO
“COLLAGEN AESTHETICS, INC.” UNDER THE NAME OF “COLLAGEN AESTHETICS, INC.”, A
CORPORATION ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF DELAWARE, AS
RECEIVED AND FILED IN THIS OFFICE THE FIRST DAY OF SEPTEMBER, A.D. 1999, AT
10:30 O’CLOCK A.M.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2104191     8100M

  	
   

  	
  AUTHENTICATION: 

  	
  0218062

  
	
   

  	
   

  	
   

  
	
  001039509

  	
   

  	
  DATE:

  	
   01-26-00

  

 

 

1

 

CERTIFICATE OF OWNERSHIP AND MERGER

MERGING

INAMED ACQUISITION CORPORATION

WITH AND INTO

COLLAGEN AESTHETICS, INC.

 

 

Under Section 253 of the General Corporation
Law

 

 

Pursuant to the provisions of Section 253 of the General Corporation
Law of the State of Delaware (the “GCL”), Inamed Acquisition Corporation, a
Delaware corporation (this “Corporation”) and a wholly owned subsidiary of  Inamed Corporation, a Delaware corporation
(“Parent”), does hereby certify:

 

FIRST:  That this Corporation is
organized and validly existing under the GCL.

 

SECOND:  That this Corporation
owns more than ninety percent (90%) of the outstanding shares of common stock,
par value $.01 per share, of Collagen Aesthetics, Inc., a Delaware corporation
(“Collagen”), and there are no shares of any other class outstanding other than
said common stock.

 

THIRD:  That this Corporation,
by the following resolutions of its Board of Directors duly adopted pursuant to
Section 141 of the GCL by unanimous written consent in lieu of a meeting dated
September 1, 1999, determined to and authorized the merger of itself with and
into Collagen on the conditions set forth in such resolutions, with Collagen to
continue as the surviving corporation. Such resolutions are set forth below and
have not been modified or rescinded and remain in full force and effect on the
date hereof:

 

RESOLVED, that pursuant to Section 253 of the GCL, this Corporation
shall merge (the “Merger”) with and into Collagen Aesthetics, Inc., a Delaware
corporation (“Collagen”), with Collagen to continue as the surviving
corporation (the “Surviving Corporation”), and that Collagen shall assume all
of the debts, liabilities and obligations of this Corporation.

 

RESOLVED, that the Merger shall be effective (the “Effective Time”)
upon the filing of a duly executed Certificate of Ownership and Merger with the
Secretary of State of the State of Delaware in accordance with the GCL.

 

RESOLVED, that the terms and conditions of the Merger are as follows:

 

 

1.             Each share of
common stock, par value $.01 per share, of Collagen (the “Collagen Shares”)
that is outstanding immediately prior to the Effective Time (other than
Collagen Shares held by Parent or any of its subsidiaries, which Collagen
Shares will be cancelled with no payment with respect thereto, and other than
Collagen Shares, if any, held by stockholders who perfect their appraisal
rights under the GCL) shall be converted into a right to receive in cash $16.25
per Collagen Share payable to the holder thereof, without interest thereon,
upon surrender of the certificate representing such Collagen Share.

 

2.            Each
share of common stock, par value $.01 per share, of this Corporation
outstanding immediately prior to the Effective Time shall be converted into and
become one share of common stock of the Surviving Corporation with the same
rights, powers and privileges as the shares so converted and shall constitute
the only outstanding shares of capital stock of the Surviving Corporation.

 

3.             All options to
purchase Collagen Shares pursuant to any arrangement adopted by the Collagen
Board of Directors to provide options, warrants or other rights to purchase
capital stock of the Company then outstanding shall be subject to the
provisions of the Agreement and Plan of Merger,  dated July 31, 1999, among Parent, this
Corporation and Collagen (the “Merger Agreement”).

 

4.             At the Effective
Time, the Surviving Corporation shall  continue its existence under the laws of the
GCL.  The Merger shall have the effects
specified in Section 259 of the GCL. 
The name of the Surviving Corporation shall continue to be “Collagen
Aesthetics, Inc.”

 

5.             Pursuant to Section
4.01 of the Merger Agreement, at the Effective Time and without any further
action on the part of this Corporation or Collagen, the Certificate of
Incorporation of this Corporation, as in effect at the Effective Time, shall be
the Certificate of Incorporation of the Surviving Corporation until amended in
accordance with applicable law, provided that, at the Effective Time, Article
First of such certificate shall be amended to read as follows: “The name of the
corporation is Collagen Aesthetics, Inc.”

 

6.             Pursuant to Section
4.02 of the Merger Agreement, at the Effective Time and without any further
action on the part of this Corporation or  Collagen, the bylaws of this Corporation, as
in effect at the Effective Time, shall be the bylaws of the Surviving
Corporation until amended in accordance with applicable law.

 

7.             Pursuant to Section
4.03 of the Merger Agreement, from and after the Effective Time, until
successors are duly elected or appointed

 

2

 

and qualified
in accordance with applicable law, the directors of this Corporation at the
Effective Time shall be the directors of the Surviving Corporation and the
officers of the Corporation at the Effective Time shall be the officers of the
Surviving Corporation.

 

8.             At and after the
Effective Time, holders of certificates which immediately prior to the
Effective Time represented issued and outstanding Collagen Shares (the
“Certificates”) shall cease to have any rights as stockholders of Collagen
except for the right to surrender such Certificates in exchange for the payment
provided pursuant hereto or the right to perfect their rights to receive
payment of the fair value of their Collagen Shares pursuant to Section 262 of
the GCL.  No transfer of Collagen Shares
outstanding immediately prior to the Effective Time shall be made on the stock
transfer books of the Surviving Corporation after the Effective Time.  If, after the Effective Time, Certificates
formerly representing Collagen Shares are presented to the Surviving
Corporation, they shall be cancelled and exchanged for the consideration set
forth herein, subject to applicable law.

 

RESOLVED, that the proposed Merger be submitted to the sole stockholder
of this Corporation and that upon receiving the written consent of such
stockholder the proposed Merger shall be approved.

 

RESOLVED, that the Surviving Corporation shall notify each stockholder
of record of Collagen within ten days after the Effective Time that the Merger
has become effective.

 

RESOLVED, that the appropriate officers be, and each hereby is,
authorized and directed, in the name and on behalf of this Corporation to make
and execute a Certificate of Ownership and Merger as required by Section 253 of
the GCL, and to cause the same to be filed with the Secretary of State of
Delaware and a certified copy thereof to be recorded in the office of the
Recorder of Deeds of New Castle County, and to do all acts and things
whatsoever, whether within or without the State of Delaware, which may be in
any way necessary or proper to affect the Merger.

 

FOURTH:  That the sole
stockholder of this Corporation has approved the Merger by unanimous written
consent in lieu of a meeting dated September 1, 1999, pursuant to Section 228
of the GCL.

 

FIFTH:  That this  Certificate of
Ownership and Merger shall become effective upon filing with the Secretary of
State of the State of Delaware in accordance with the GCL.

 

3

 

IN WITNESS
WHEREOF, this Corporation has caused this certificate to be signed by Ilan K.
Reich, its President, this 1st day of September, 1999.

 

	
   

  	
   INAMED
  ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ilan K.
  Reich

  
	
   

  	
   

  	
   Ilan K. Reich

  
	
   

  	
   

  	
   President

  

 

4

 

Annex 2

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  
	
  Office and Records

  	
   

  
	
   

  	
  Section
  1.1

  	
  Delaware
  Officer

  
	
   

  	
  Section
  1.2

  	
  Other
  Offices

  
	
   

  	
  Section
  1.3

  	
  Books
  and Records

  
	
  ARTICLE II

  	
   

  
	
  Stockholders

  	
   

  
	
   

  	
  Section
  2.1

  	
  Annual
  Meeting

  
	
   

  	
  Section
  2.2

  	
  Special
  Meetings

  
	
   

  	
  Section
  2.3

  	
  Notice of Meetings

  
	
   

  	
  Section
  2.4

  	
  Quorum

  
	
   

  	
  Section
  2.5

  	
  Voting

  
	
   

  	
  Section
  2.6

  	
  Proxies

  
	
   

  	
  Section
  2.7

  	
  List of Stockholders

  
	
   

  	
  Section
  2.8

  	
  Written Consent of Stockholders in Lieu of
  Meeting

  
	
  ARTICLE
  III

  	
   

  
	
  Directors

  	
   

  
	
   

  	
  Section
  3.1

  	
  Number of Directors

  
	
   

  	
  Section
  3.2

  	
  Election and Term of Directors

  
	
   

  	
  Section
  3.3

  	
  Vacancies and Newly Created Directorships

  
	
   

  	
  Section
  3.4

  	
  Resignation

  
	
   

  	
  Section
  3.5

  	
  Removal

  
	
   

  	
  Section
  3.6

  	
  Meetings

  
	
   

  	
  Section
  3.7

  	
  Quorum
  and Voting

  
	
   

  	
  Section
  3.8

  	
  Written Consent of Directors in Lieu of a
  Meeting

  
	
   

  	
  Section
  3.9

  	
  Compensation

  
	
   

  	
  Section
  3.10

  	
  Committees of the Board of Directors

  
	
  ARTICLE IV

  	
   

  
	
  Officers, Agents and Employees

  
	
   

  	
  Section
  4.1

  	
  Appointment and Term of Office

  
	
   

  	
  Section
  4.2 

  	
  Resignation and Removal

  
	
   

  	
  Section
  4.3

  	
  Compensation and Bond

  
	
   

  	
  Section
  4.4 

  	
  Chairman of the Board

  
	
   

  	
  Section
  4.5

  	
  President

  
	
   

  	
  Section
  4.6

  	
  Vice
  Presidents

  
	
   

  	
  Section
  4.7

  	
  Treasurer

  
	
   

  	
  Section
  4.8

  	
  Secretary

  
	
   

  	
  Section
  4.9

  	
  Assistant Treasurers

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
  Section
  4.10 

  	
  Assistant Secretaries

  
	
   

  	
  Section
  4.11 

  	
  Delegation of Duties

  
	
  ARTICLE V

  	
   

  
	
  Indemnification and Insurance

  
	
   

  	
  Section
  5.1

  	
  Right to Indemnification

  
	
   

  	
  Section
  5.2

  	
  Right to Advancement of Expenses

  
	
   

  	
  Section
  5.3

  	
  Right of Indemnitee to Bring Suit

  
	
   

  	
  Section
  5.4

  	
  Non-exclusivity of Rights

  
	
   

  	
  Section
  5.5

  	
  Insurance

  
	
   

  	
  Section
  5.6 

  	
  Indemnification of Employees and Agents of
  the Corporation

  
	
   

  	
  Section
  5.7

  	
  Contract
  Rights

  
	
  ARTICLE VI

  	
   

  
	
  Common
  Stock

  	
   

  
	
   

  	
  Section
  6.1

  	
  Certificates

  
	
   

  	
  Section
  6.2

  	
  Transfers of Stock

  
	
   

  	
  Section
  6.3

  	
  Lost, Stolen of Destroyed Certificates

  
	
   

  	
  Section
  6.4

  	
  Stockholder Record Date

  
	
  ARTICLE
  VII

  	
   

  
	
  Seal

  	
   

  	
   

  
	
   

  	
  Section
  7.1

  	
  Seal

  
	
  ARTICLE
  VIII

  	
   

  
	
  Waiver
  of Notice

  	
   

  
	
   

  	
  Section
  8.1

  	
  Waiver
  of Notice

  
	
  ARTICLE IX

  	
   

  
	
  Checks, Notes, Drafts, Etc.

  
	
   

  	
  Section
  9.1

  	
  Checks, Notes, Drafts, Etc.

  
	
  ARTICLE X

  	
   

  
	
  Amendments

  	
   

  
	
   

  	
  Section
  10.1

  	
  Amendments

  

 

 

BYLAWS

 

OF

 

INAMED ACQUISITION
CORPORATION

 

ARTICLE I

 

Office and Records

 

Section 1.1  Delaware Office.  The principal office of the Corporation in
the State of Delaware shall be located in the City of Wilmington, County of New
Castle, and the name and address of its registered agent is The Corporation
Trust Company, 1209 Orange Street, Wilmington, Delaware.

 

Section 1.2  Other Offices.  The Corporation may have such other offices,
either within or without the State of Delaware, as the Board of Directors may
designate or as the business of the Corporation may from time to time require.

 

Section 1.3  Books and Records.  The books and records of the Corporation may
be kept at the Corporation’s principal executive offices or at such other
locations outside the State of Delaware as may from time to time be designated
by the Board of Directors.

 

ARTICLE II

 

Stockholders

 

Section 2.1  Annual Meeting.  Except as otherwise provided in Section 2.8
of these Bylaws, an annual meeting of stockholders of the Corporation shall be
held at such time and date in each year as the Board of Directors, the Chairman
of the Board, if any, or the President may from time to time determine.  The annual meeting in each year shall be
held at

 

 

such place within or without the State of Delaware as may be fixed by
the Board of Directors, or if not so fixed, at 10:00 A.M., local time, at the
principal executive offices of the Corporation.

 

Section 2.2  Special Meetings.  A special meeting of the holders of stock of
the Corporation entitled to vote on any business to be considered at any such
meeting may be called only by the Chairman of the Board, if any, or the
President or any Vice President, and shall be called by the Chairman of the
Board, if any, or the President or the Secretary when directed to do so by
resolution of the Board of Directors or at the written request of directors
representing a majority of the total number of directors which the Corporation
would at the time have if there  were
no vacancies (the “Whole Board”).  Any
such request shall state the purpose or purposes of the  proposed meeting.  The Board of Directors may designate the
place of meeting for any special meeting of stockholders, and if no such
designation is made, the place of meeting shall be the principal executive
offices of the Corporation.

 

Section 2.3  Notice of Meetings.  Whenever stockholders are required or
permitted to take any action at a meeting, unless notice is waived as provided
in  Section
8.1 of these Bylaws, a written notice of the meeting shall be given which shall
state the place, date and hour of the meeting, and, in the case of a special
meeting,  the purpose or purposes
for which the meeting is called.

 

Unless otherwise provided by law, and except as to any
stockholder duly waiving notice, the written notice of any meeting shall be
given personally or by mail, not less than ten nor more than sixty (60) days
before the date of the meeting to each stockholder entitled to vote

 

2

 

at such meeting.  If mailed,
notice shall be deemed  given when
deposited in the mail, postage prepaid, directed to the stockholder at his or
her address as it appears on the records of the Corporation.

 

When a meeting is adjourned to another time or place,
notice need not be given of the adjourned meeting if the time and place thereof
are announced at the meeting at which the adjournment is taken.  At the adjourned meeting the Corporation may
transact any business which might have been transacted at the original
meeting.  If, however, the adjournment
is for more than thirty (30) days, or if after the adjournment a new record
date is fixed for the adjourned meeting, a notice of the adjourned meeting
shall be given to each stockholder of record entitled to vote at the meeting.

 

Section 2.4  Quorum. 
Except as otherwise provided by law or by the Certificate of
Incorporation or by these Bylaws, at any meeting of stockholders the holders of
a majority of the outstanding stock entitled to vote thereat, either present or
represented by proxy, shall constitute a quorum for the transaction of any
business, but the stockholders present, although less than a quorum, may
adjourn the meeting to another time or place and, except as provided in the
last paragraph of Section 2.3 of these Bylaws, notice need not be given of the
adjourned meeting.

 

Section 2.5  Voting. 
Whenever directors are to be elected at a meeting, they shall be elected
by a plurality of the votes cast at the meeting by the holders of stock
entitled to vote.  Whenever any corporate
action, other than the election of directors, is to be taken by

 

3

 

vote of stockholders at a meeting, such corporate action shall, except
as otherwise required by law or by the Certificate of Incorporation or by these
Bylaws, be authorized by the affirmative vote of the holders of a majority of
the shares of stock present or represented by proxy and entitled to vote with
respect to such corporate action.

 

Except as otherwise provided by law, or by the Certificate
of Incorporation, each holder of record of stock of the Corporation entitled to
vote on any matter at any meeting of stockholders shall be entitled to one vote
for each share of such stock standing in the name of such holder on the stock
ledger of the Corporation on the record date for the determination of the
stockholders entitled to vote at the meeting.

 

Upon the demand of any stockholder entitled to vote,
the vote for directors or the vote on any other matter at a meeting shall be by
written ballot, but otherwise the method of voting and the manner in which
votes are counted shall be discretionary with the presiding officer at the
meeting.

 

Section 2.6  Proxies. 
Each stockholder entitled to vote at a meeting of stockholders or to
express consent or dissent to corporate action in writing without a meeting may
authorize another person or persons in act for him or her by proxy, but no such
proxy shall be voted or acted upon after three years from its date, unless the
proxy provides for a longer period. 
Every proxy shall be signed by the stockholder or by his duly authorized
attorney.

 

Section 2.7  List of Stockholders.  The officer who has charge of the stock
ledger of the Corporation shall prepare and make, at least ten (10) days before
every meeting of

 

4

 

stockholders, a complete
list of the stockholders entitled to vote at the meeting, arranged in
alphabetical order, and showing the address of each stockholder and the number
of shares registered in the name of each stockholder.  Such list shall be open to the examination of any stockholder,
for any purpose germane to the meeting, during ordinary business hours, for a
period of at least ten (10) days prior to the meeting, either at a place within
the city where the meeting is to be held, which place shall be specified in the
notice of the meeting, or, if not so specified at the place where the meeting
is to be held.  The list shall also be
produced and kept at the time and place of the meeting during the whole time
thereof, and may be inspected by any stockholder who is present.

 

The stock ledger shall be the only evidence as to who
are the stockholders entitled to examine the stock ledger, the list required by
this Section at the books of the Corporation, or to vote in person or by proxy
at any meeting of stockholders.

 

Section 2.8  Written Consent of
Stockholders in Lieu of Meeting. 
Any action required by the General Corporation Law of the State of
Delaware (the “GCL”) to be taken at any annual or special meeting of
stockholders of the Corporation, or any action which may be taken at any annual
or special meeting of the stockholders, may be taken without a meeting, without
prior notice and without a vote, if a consent in writing, setting forth the action
so taken, shall be signed by the holders of outstanding stock having not less
than the minimum number of votes that would be necessary to authorize or take
such action at a meeting at which all shares entitled to vote thereon were
present and voted.  Prompt  written notice of the taking of the
corporate action without a meeting by less than unanimous written consent shall
be given to

 

5

 

those stockholders who have not consented in writing.  Any such written consent may be given by one
or any number of substantially concurrent written instruments of substantially
similar tenor signed by such stockholders, in person or by attorney or proxy
duly appointed in writing, and filed with the Secretary or an Assistant
Secretary of the Corporation.  Any such
written consent shall be effective as of the effective date thereof as
specified therein, provided that such date is not more than sixty (60) days
prior to the date such written consent is filed as aforesaid, or, if no such
date is so specified, on the date such written consent is filed as aforesaid.

 

ARTICLE III

 

Directors

 

Section 3.1  Number of Directors.  The Board of Directors shall consist of two
(2) directors until changed as provided in this Section.  The number of directors may be changed at
any time and from time to time by vote at a meeting or by written consent of
the holders of stock entitled to vote on the election of directors, or by a
resolution of the Board of Directors passed by a majority of the Whole Board,
except that no decrease shall shorten the term of any incumbent director unless
such director is specifically removed pursuant to Section 3.5 of these Bylaws
at the time of such decrease.

 

Section 3.2  Election and Term of Directors.  Directors shall be elected annually, by
election at the annual meeting of stockholders or by written consent of the
holders of stock entitled to vote thereon in lieu of such meeting.  If the annual election of directors is not
held on the date designated therefor, the directors shall cause such election
to be held as soon

 

6

 

thereafter as
convenient.  Each director shall hold
office from the time of his or her election and qualification until his
successor is elected and qualified or until his or her earlier resignation, or
removal.

 

Section 3.3  Vacancies and Newly
Created Directorships. 
Vacancies and newly created directorships resulting from any increase in
the authorized number of directors may be filled by election at a meeting of
stockholders or by written consent of the holders of stock entitled to vote
thereon in lieu of a meeting.  Except as
otherwise provided by law, vacancies and such newly created directorships may
also be filled by a majority of the directors then in office, although less
than quorum, or by a sole remaining director.

 

Section 3.4  Resignation.  Any director may resign at any time upon written notice to the
Corporation.  Any such resignation shall
take effect at the time specified therein or, if the time be not specified,
upon receipt thereof, and the acceptance of such resignation, unless required
by the terms thereof, shall not be necessary to make such resignation
effective.

 

Section 3.5  Removal. 
Any or all of the directors may be removed at any time, with or without
cause, by vote at a meeting or by written consent of the holders of stock
entitled to vote on the election of directors.

 

7

 

Section 3.6  Meetings. 
Meetings of the Board of Directors, regular or special may be held at
any place within or without the State of Delaware.  Members of the Board of Directors, or of any committee designated
by the Board of Directors, may participate in a meeting of the Board of
Directors or such committee by means of conference telephone or similar
communications equipment by means of which all persons participating in the
meeting can hear each other, and participation in a meeting by such means shall
constitute presence in person at such meeting. 
An annual meeting of the Board of Directors shall be held after each
annual election of directors.  If such
election occurs at an annual meeting of stockholders, the annual meeting of the
Board of Directors shall be held at the same place and immediately following
such meeting of stockholders, and no further notice thereof need be given other
than this Bylaw.  If an annual election
of directors occurs by written consent in lieu of the annual meeting of
stockholders, the annual meeting of the Board of Directors shall take place as
soon after such written consent is duly filed with the Corporation as is
practicable, either at the next regular meeting of the Board of Directors or at
a special meeting. The Board of Directors may fix times and places for
additional regular meetings of the Board of Directors and no notice of such
meetings need be given.  A special
meeting of the Board of Directors shall be held whenever called by the Chairman
of the Board, if any, or by the President or by at least one-third of the
directors for the time being in office, at such time and place as shall be
specified in the notice or waiver thereof. 
Notice of each special meeting shall be given by the Secretary or by a
person calling the meeting to each director by mailing the same, postage prepaid,
not later than the second day before the meeting, or personally or by
telegraphing or telephoning the same not later than the day before the meeting.

 

8

 

Section 3.7  Quorum and Voting. A whole number
of directors equal to at least a majority of the Whole Board shall constitute a
quorum for the transaction of business, but if there be less than a quorum at
any meeting of the Board of Directors, a majority of the directors present may
adjourn the meeting from time to time, and no further notice thereof need be
given other than announcement at the meeting which shall be so adjourned.  Except as otherwise provided by law, by the
Certificate of Incorporation, or by these Bylaws, the vote of a majority of the
directors present at a meeting at which a quorum is present shall be the act of
the Board of Directors.

 

Section 3.8  Written Consent of
Directors in Lieu of a Meeting. Any action required or permitted to be
taken at any meeting of the Board of Directors or of any committee thereof may
be taken without a meeting if all members of the Board of Directors or of such
committee, as the case may be, consent thereto in writing, and the writing or
writings are filed with the minutes of proceedings of the Board of Directors or
such committee.

 

Section 3.9  Compensation. Directors may receive
compensation for services to the Corporation in their capacities as directors
or otherwise in such manner and in such amounts as may be fixed from time to
time by the Board of Directors.

 

Section 3.10  Committees of the Board of
Directors. The Board of Directors may from time to time, by resolution
passed by majority of the Whole Board, designate one or more committees, each
committee to consist of one or more directors of the Corporation.

 

9

 

The Board of Directors may designate one or more directors as alternate
members of any committee, who may replace any absent or disqualified member at
any meeting of the committee.  The
resolution of the Board of Directors may, in addition or alternatively, provide
that in the absence or disqualification of a member of a committee, the member
of members thereof present at any meeting and not disqualified from voting,
whether or not he, she or they constitute a quorum, may unanimously appoint
another member of the Board of Directors to act at the meeting in the place of
any such absent or disqualified member. 
Any such committee, to the extent provided in the resolution of the
Board of Directors, shall have and may exercise all the powers and authority of
the Board of Directors in the management of the business and affairs of the
Corporation, and may authorize the seal of the Corporation to be affixed to all
papers which may require it, except as otherwise provided by law.  Unless the resolution of the Board of
Directors expressly so provides, no such committee shall have the power or
authority to declare a dividend or to authorize the issuance of stock.  Any such committee may adopt rules governing
the method of calling and time and place of holding its meetings.  Unless otherwise provided by the Board of
Directors, a majority of any such committee (or the member thereof, if only
one) shall constitute a quorum for the transaction of business, and the vote of
a majority of the members of such committee present at a meeting at which a
quorum is present shall be the act of such committee.  Each such committee shall keep a record of its acts and
proceedings and shall report thereon to the Board of Directors whenever
requested so to do.  Any or all members
of any such committee may be removed, with or without cause, by resolution of
the Board of Directors, passed by a majority of the whole Board.

 

10

 

ARTICLE IV

 

Officers, Agents and Employees

 

Section 4.1  Appointment and Term of Office.  The officers of the Corporation may include
a President, a Secretary and a Treasurer, and may also include a Chairman of
the Board, one or more Vice Presidents, one or more Assistant Secretaries and
one or more Assistant Treasurers.  All
such officers shall be appointed by the Board of Directors or by a duly
authorized committee thereof, and shall each have such powers and duties as generally
pertain to their respective offices, subject to the specific provisions of this
Article IV, together with such other powers and duties as from time to time may
be conferred by the Board of Directors or any committee thereof.  Any number of such offices may be held by
the same person, but no officer shall execute, acknowledge or verify any
instrument in more than one capacity. 
Except as may be prescribed otherwise by the Board of Directors or a
committee thereof in a particular case, all such officers shall hold their
offices at the pleasure of the Board of Directors for an unlimited term and
need not be reappointed annually or at any other periodic interval.  The Board of Directors may appoint, and may
delegate power to appoint, such other officers, agents and employees as it may
deem necessary or proper, who shall hold their offices or positions for such
terms, have such authority and perform such duties as may from time to time be
determined by or pursuant to authorization of the Board of Directors.

 

Section 4.2  Resignation and Removal. Any
officer may resign at any time upon written notice to the Corporation.  Any officer, agent or employee of the
Corporation may be removed by the Board of Directors, or by a duly authorized
committee thereof, with or

 

11

 

without cause at any time.  The
Board of Directors or such a committee thereof may delegate such power of
removal as to officers, agents and employees not appointed by the Board of
Directors or such a committee.  Such
removal shall be without prejudice to a person’s contract rights, if any, but
the appointment of any person as an officer, agent or employee of the
Corporation shall not of itself create contract rights.

 

Section 4.3  Compensation and Bond.  The compensation of the officers of the
Corporation shall be fixed by the Board of Directors, but this power may be
delegated to any officer in respect of other officers under his or her
control.  The Corporation may secure the
fidelity of any or all of its officers, agents or employees by bond or
otherwise.

 

Section 4.4  Chairman of the Board. The
Chairman of the Board, if there be one, shall preside at all meetings of
stockholders and of the Board of Directors, and shall have such other powers
and duties as may be delegated to him or her by the Board of Directors.

 

Section 4.5  President. The President shall be the
chief executive officer of the Corporation. 
In the absence of the Chairman of the Board (or if there be none), he or
she shall preside at all meetings of the stockholders and of the Board of
Directors.  He or she shall have general
charge of the business affairs of the Corporation.  He or she may employ and discharge employees and agents of the
Corporation, except such as shall be appointed by the Board of Directors, and
he or she may delegate these powers. 
The President may vote the stock or other securities of any other
domestic or foreign corporation of any type or kind which may at

 

12

 

any time be owned by the Corporation, may execute any stockholders’ or
other consents in respect thereof any may in his or her discretion delegate
such powers by executing proxies, or otherwise, on behalf of the
Corporation.  The Board of Directors by
resolution from time to time may confer like powers upon any other person or
persons.

 

Section 4.6  Vice Presidents.  Each Vice President shall have such powers
and perform such duties as the Board of Directors or the President may from
time to time prescribe.  In the absence
or inability to act of the President, unless the Board of Directors shall
otherwise provide, the Vice President who has served in that capacity for the
longest time and who shall be present and able to act, shall perform all the
duties and may exercise any of the powers of the President.

 

Section 4.7  Treasurer. The Treasurer shall have
charge of all funds and securities of the Corporation, shall endorse the same
for deposit or collection when necessary and deposit the same to the credit of
the Corporation in such banks or depositaries as the Board of Directors may
authorize.  He or she may endorse all
commercial documents requiring endorsements for or on behalf of the Corporation
and may sign all receipts and vouchers for payments made to the Corporation.  He or she shall have all such further powers
and duties as generally are incident to the position of Treasurer or as may be
assigned to him or her by the President or the Board of Directors.

 

13

 

Section 4.8  Secretary. The Secretary shall record all
the proceedings of the meetings of the stockholders and directors in a book to
be kept for that purpose and shall also record therein all action taken by
written consent of the stockholders or directors in lieu of a meeting.  He or she shall attend to the giving and
serving of all notices of the Corporation. 
He or she shall have custody of the seal of the Corporation and shall
attest the same by his or her signature whenever required.  He or she shall have charge of the stock
ledger and such other books and papers as the Board of Directors may direct,
but he or she may delegate responsibility for maintaining the stock ledger to
any transfer agent appointed by the Board of Directors.  He or she shall have all such further powers
and duties as generally are incident to the position of Secretary or as may be
assigned to him or her by the President or the Board of Directors.

 

Section 4.9  Assistant  Treasurers. In the
absence or inability to act of the Treasurer, any Assistant Treasurer may
perform all the duties and exercise all the powers of the Treasurer.  An Assistant Treasurer shall also perform
such other duties as the Treasurer or the Board of Directors may assign to him
or her.

 

Section 4.10  Assistant Secretaries. In the
absence or inability to act of the Secretary, any Assistant Secretary may
perform all the duties and exercise all the powers of the Secretary.  An Assistant Secretary shall also perform
such other duties as the Secretary or the Board of Directors may assign to him
or her.

 

14

 

Section 4.11  Delegation of Duties. In case of
the absence of any officer of the Corporation, or for any other reason that the
Board of Directors may deem sufficient, the Board of Directors may confer for
the time being the powers or duties, or any of them, of such officer upon any
other officer or upon any director.

 

ARTICLE V

 

Indemnification and Insurance

 

Section 5.1  Right to Indemnification.
Each person who was or is made a party or is threatened to be made a party to
or is otherwise involved in any action, suit or proceeding, whether civil,
criminal, administrative or investigative (hereinafter a “proceeding”), by
reason of the fact that he or she or a person of whom he or she is the legal
representative is or was a director or an officer of the Corporation or is of
was serving at the request of the Corporation as a director, officer, employee
or agent of any other corporation or of a partnership, joint venture, trust or
other enterprise, including service with respect to any employee benefit plan
(hereinafter an “indemnitee”), whether the basis of such proceeding is alleged
action in an official capacity as a director, officer, employee or agent or in
any other capacity while serving as a director, officer, employee or agent,
shall be indemnified and held harmless by the Corporation to the fullest extent
authorized by the GCL, as the same exists or may hereafter be amended (but, in
the case of any such amendment, only to the extent that such amendment permits
the Corporation to provide broader indemnification rights than said law
permitted the Corporation to provide prior to such amendment), against all
expense, liability and loss (including, without limitation, attorneys’ fees,
judgments, fines, excise taxes or penalties under

 

15

 

the Employee Retirement Income Security Act of 1974, as amended, and
amounts paid or to be paid in settlement) reasonably incurred by such
indemnitee in connection therewith; provided, however, that
except as provided in Section 5.3 with respect to proceedings seeking to
enforce rights to indemnification, the Corporation shall indemnify any such
indemnitee seeking indemnification in connection with a proceeding (or part
thereof) initiated by such indemnitee only if such proceeding (or part thereof)
was authorized by the Board of Directors.

 

Section 5.2  Right to Advancement of
Expenses. The right to indemnification conferred in Section 5.1 shall
include the right to be paid by the Corporation the expenses (including
attorneys’ fees) incurred in defending any such proceeding in advance of its
final disposition (hereinafter an “advancement of expenses”); provided, however,
that, if the GCL requires, an advancement of expenses incurred by an indemnitee
in his or her capacity as a director or officer (and not in any other capacity
in which service was or is rendered by such indemnitee, including, without
limitation, service to an employee benefit plan) shall be made only upon
delivery to the Corporation of an undertaking (hereinafter an “undertaking”),
by or on behalf of such indemnitee, to repay all amounts so advanced if it
shall ultimately be determined by final judicial decision from which there is
no further right to appeal (hereinafter a “final adjudication”) that such
indemnitee is not entitled to be indemnified for such expenses under this
Section 5.2 or otherwise.

 

Section 5.3  Right of Indemnitee to Bring
Suit. If a claim under Section 5.1 or Section 5.2 is not paid in full
by the Corporation within thirty (30) days after a

 

16

 

written claim has been received by the Corporation, except in the case
of a claim for an advancement of expenses, in which case the applicable period
shall be twenty (20) days, the indemnitee may at any time thereafter bring suit
against the Corporation to recover the unpaid amount of the claim.  If successful in whole or in part in any
such suit, or in a suit brought by the Corporation to recover an advancement of
expenses pursuant to the terms of an undertaking, the indemnitee shall be
entitled to be paid also the expense of prosecuting or defending such
suit.  In (i) any suit brought by the
indemnitee to enforce a right to indemnification hereunder (but not in a suit
brought by the indemnitee to enforce a right of an advancement of expenses) it
shall be a defense that, and (ii) in any suit brought by the Corporation to
recover an advancement of expenses pursuant to the terms of an undertaking, the
Corporation shall be entitled to recover such expenses upon a final
adjudication that, the indemnitee has not met any applicable standard for
indemnification set forth in the GCL. 
Neither the failure of the Corporation (including its Board of
Directors, independent legal counsel or stockholders) to have made a
determination prior to the commencement of such action that indemnification of
the indemnitee is proper in the circumstances because the indemnitee has met
the applicable standard of conduct set forth in the GCL, nor an actual
determination by the Corporation (including its Board of Directors, independent
legal counsel or stockholders) that the indemnitee has not met such applicable
standard of conduct, shall create a presumption that the indemnitee has not met
the applicable standard of conduct or, in the case of such a suit brought by
the indemnitee, be a defense to such suit. 
In any suit brought by the indemnitee to enforce a right to
indemnification or to an advancement of expenses hereunder, or brought by the
Corporation to recover an advancement of expenses pursuant to the terms of an
undertaking the burden of proving that the indemnitee is

 

17

 

not entitled to be indemnified, or to such advancement of expenses, under
this Article V or otherwise shall be on the Corporation.

 

Section 5.4  Non-Exclusivity of Rights.
The right to indemnification and the advancement of expenses conferred in this
Article V shall not be exclusive of any other right which any person may have
or hereafter acquire under any statute, provision of the Certificate of
Incorporation, provision of these Bylaws, agreement, vote of stockholders or
disinterested directors or otherwise.

 

Section 5.5  Insurance. The Corporation may maintain
insurance, at its expense, to protect itself and any director, officer,
employee or agent of the Corporation or another corporation, partnership, joint
venture, trust or other enterprise against any expense, liability or loss,
whether or not the Corporation would have the power to indemnify such person
against such expense, liability or loss under the GCL.

 

Section 5.6  Indemnification of
Employees and Agents of the Corporation. The Corporation may, to the
extent authorized from time to time by the Board of Directors, grant rights to
indemnification, and rights to the advancement of expenses, to any employee or
agent of the Corporation to the fullest extent of the provisions of this
Article V with respect to the indemnification and advancement of expenses of
directors and officers of the Corporation.

 

18

 

Section 5.7  Contract Rights. The rights to
indemnification and to the advancement of expenses conferred in Section 5.1 and
Section 5.2 shall be contract rights and such rights shall continue as to an
indemnitee who has ceased to be a director, officer, employee or agent and
shall inure to the benefit of the indemnitee’s heirs, executors and
administrators.

 

ARTICLE VI

 

Common Stock

 

Section 6.1  Certificates. Certificates for stock
of the Corporation shall be in such form as shall be approved by the Board of
Directors and shall be signed in the name of the Corporation by the Chairman of
the Board, if any, or the President or a Vice President, and by the Treasurer
or an Assistant Treasurer, or the Secretary or an Assistant Secretary.  Such certificates may be sealed with the
seal of the Corporation or a facsimile thereof.  Any of or all the signatures on a certificate may be a
facsimile.  In case any officer,
transfer agent or registrar who has signed or whose facsimile signature has
been placed upon a certificate shall have ceased to be such officer, transfer
agent or registrar before such certificate is issued, it may be issued by the
Corporation with the same effect as if he or she were such officer, transfer
agent or registrar at the date of issue.

 

Section 6.2  Transfers of Stock. Transfers of
stock shall be made only upon the books of the Corporation by the holder, in
person or by duly authorized attorney, and on the surrender of the certificate
or certificates for the same number of shares, properly endorsed.  The Board of Directors shall have the power
to make all such rules and regulations,

 

19

 

not inconsistent with the Certificate of Incorporation and these Bylaws
and the GCL, as the Board of Directors may deem appropriate concerning the
issue, transfer and registration of certificates for stock of the
Corporation.  The Board of Directors may
appoint one or more transfer agents or registrars of transfers, or both, and
may require all stock certificates to bear the signature of either or both.

 

Section 6.3  Lost, Stolen or Destroyed
Certificates. The Corporation may issue a new stock certificate in the
place of any certificate theretofore issued by it, alleged to have been lost,
stolen or destroyed, and the Corporation may require the owner of the lost,
stolen or destroyed certificate or his or her legal representative to give the
Corporation a bond sufficient to indemnify it against any claim that may be
made against it on account of the alleged loss, theft or destruction of any
such certificate or the issuance of any such new certificate.  The Board of Directors may require such
owner to satisfy other reasonable requirements as it deems appropriate under
the circumstances.

 

Section 6.4  Stockholder Record Date. In
order that the Corporation may determine the stockholders entitled to notice of
or to vote at any meeting of stockholders or any adjournment thereof, or to
express consent to corporate action in writing without a meeting, or entitled
to receive payment of any dividend or other distribution or allotment of any
rights, or entitled to exercise any rights in respect of any change, conversion
or exchange of stock, or for the purpose of any other lawful action, the Board
of Directors may fix a record date, which record date shall not precede the
date on which the resolution fixing the record date is adopted by

 

20

 

the Board of Directors, and which shall not be more than sixty nor less
than ten (10) days before the date of such meeting, nor more than sixty (60)
days prior to any other action.

 

If no record date is fixed by the Board of Directors,
(1) the record date for determining stockholders entitled to notice of or to
vote at a meeting of stockholders shall be at the close of business on the day
next preceding the date on which notice is given, or, if notice is waived, at
the close of business on the day next preceding the day on which the meeting is
held, (2) the record date for determining stockholders entitled to express
consent to corporate action in writing without a meeting, when no prior action
by the Board of Directors is necessary, shall be at the close of business on the
day on which the first written consent is expressed by the filing thereof with
the Corporation as provided in Section 2.8 of these Bylaws, and (3) the record
date for determining stockholders for any other purpose shall be at the close
of business on the day on which the Board of Directors adopts the resolution
relating thereto.

 

A determination of stockholders of record entitled to
notice of or to vote at a meeting of stockholders shall apply to any
adjournment of the meeting; provided, however, that the Board of
Directors may fix a new record date for the adjourned meeting.

 

Only such stockholders as shall be stockholders of
record on the date so fixed shall be entitled to notice of, and to vote at,
such meeting and any adjournment thereof, or to give such consent, or to
receive payment of such dividend or other distribution, or to exercise such
rights in respect of any such change, conversion or exchange of stock, or to
participate in such action, as the case may be, notwithstanding any transfer of
any stock on the books of the Corporation after my record date so fixed.

 

21

 

ARTICLE VII

 

Seal

 

Section 7.1  Seal. The seal of the Corporation shall be
circular in form and shall bear, in addition to any other emblem or device
approved by the Board of Directors, the name of the Corporation, the year of
its incorporation and the words “Corporate Seal” and “Delaware”.  The seal may be used by causing it or a
facsimile thereof to be impressed or affixed or in any other manner reproduced.

 

ARTICLE VIII

 

Waiver of Notice

 

Section 8.1  Waiver of Notice. Whenever notice
is required to be given to any stockholder or director of the Corporation under
any provision of the GCL or the Certificate of Incorporation or these Bylaws, a
written waiver thereof, signed by the person or persons entitled to notice,
whether before or after the time stated therein, shall be deemed equivalent to
the giving of such notice.  In case of a
stockholder, such waiver of notice may be signed by such stockholder’s attorney
or proxy duly appointed in writing. 
Attendance of a person at a meeting shall constitute a waiver of notice
of such meeting, except when the person attends a meeting for the express
purpose of objecting at the beginning of the meeting, to the transaction of any
business because the meeting is not lawfully called or convened.  Neither the business to be transacted at,
nor the purpose of, any regular or special meeting of the stockholders, directors
or members of a committee of directors need be specified in any written waiver
of notice.

 

22

 

ARTICLE IX

 

Checks, Notes, Drafts, Etc.

 

Section 9.1  Checks, Notes, Drafts, Etc.
Checks, notes, drafts, acceptances, bills of exchange and other orders or
obligations for the payment of money shall be signed by such officer or
officers or person or persons as the Board of Directors or a duly authorized
committee thereof may from time to time designate.

 

ARTICLE X

 

Amendments

 

Section 10.1  Amendments. These Bylaws or any
of them may be altered or repealed, and new Bylaws may be adopted, by the
stockholders by vote at a meeting or by written consent without a meeting.  The Board of Directors shall also have power,
by a majority vote of the Whole Board, to alter or repeal any of these Bylaws,
and to adopt new Bylaws.

 

23

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

COLLAGEN AESTHETICS, INC.

 

BY UNANIMOUS WRITTEN CONSENT

 

The undersigned, being
all of the Directors of COLLAGEN AESTHETICS, INC., a Delaware corporation (the
“Company”), and acting
pursuant to Section 141 of the Delaware General Corporation Law, hereby consent
in writing to the adoption of the following actions in lieu of a special
meeting of the Board of Directors:

 

GUARANTEE
AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED
Corporation (“Inamed”) intends to enter into that certain Credit
Agreement dated as of February 1, 2000 (the “Credit Agreement”), by and
among Inamed, the Lenders, Bear Stearns Corporate Lending Inc., as Syndication
Agent (in such capacity, the “Syndication Agent”), Bear, Stearns &
Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent;

 

WHEREAS, pursuant to the
terms of the Credit Agreement, the Company, as a subsidiary of Inamed, is
required to guaranty all of Inamed’s obligations under the Credit Agreement
(the “Obligations”, as defined under the Credit Agreement), by entering
into that certain Guarantee and Collateral Agreement (the “Guarantee and
Collateral Agreement”) dated of even date with the Credit Agreement, a copy
of which has been presented to the Board;

 

WHEREAS, pursuant to the
terms and conditions of the Credit Agreement, the Company, as a subsidiary of
Inamed, is required to secure payment and performance of the Obligations, also
by entering into that same Guarantee and Collateral Agreement (as defined
above), whereby the Company would grant to Administrative Agent, for the
benefit of the Administrative Agent and the Lenders, a perfected, first
priority Lien on all of its right, title and interest in all of its personal
property, including but not limited to all capital stock of its domestic

 

subsidiaries, 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licences, material
property, etc.

 

WHEREAS, the Board of
Directors of the Company has determined that in order to give effect to the
Credit Agreement, it is advisable and in the best interests of the Company that
the Company enter into the Guarantee and Collateral Agreement and each of the
transactions contemplated thereby;

 

NOW, THEREFORE, BE IT
RESOLVED, that the Board of Directors deems it advisable and in the best
interests of the Company to enter into the Guarantee and Collateral Agreement
and any other documents contemplated thereby and such documents hereby are
authorized and approved, with such changes thereto as the Chairman, the
President, any Vice President or the Secretary of the Company (the “proper
officers”) may approve, such approval to be conclusively evidenced by such
officer’s or officers’ execution and delivery thereof;

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to enter into
the Guarantee and Collateral Agreement, substantially on the terms and
conditions as presented and described to the Board, with such changes thereto
as the proper officers may approve, such approval to be conclusively evidenced
by such officer’s or officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized
and directed to enter into such other agreements, documents, promissory notes,
and instruments with respect to any of the foregoing, in such form and on such
terms and conditions as may be agreed to by the proper officers of the Company,
Administrative Agent and the Lenders, and to take such other actions with
respect to the foregoing as may be required by Administrative Agent and the
Lenders; and that the proper officers of the Company be, and each of them
hereby is, authorized, directed and empowered, in the name and on behalf of the
Company, to execute and deliver such other agreements, documents, promissory
notes, deeds of trust, mortgages and other instruments and to perform all other
acts as such officers shall approve in connection with any of the above, the
execution of such agreements, documents, promissory notes and other instruments
or the taking of any such actions to be conclusive evidence of such approval.

 

2

 

GENERAL
AUTHORIZATIONS

 

RESOLVED, that the
officers of the Company be, and each of them hereby is, authorized, empowered
and directed, in the name and on behalf of the Company, to do or cause to be
done all such other acts or things, and to execute and deliver, or cause to be
executed and delivered, all such other documents, instruments, agreements,
notes, undertakings, guarantees and certificates of any kind and nature
whatsoever, as such officer or officers may deem necessary or appropriate to
effectuate or carry out the purposes and intent of the foregoing resolutions;
all such other actions to be performed in such manner, and all such other
documents, instruments, agreements, notes, undertakings, guarantees and
certificates to be executed and delivered in such form, as the officer or
officers performing or executing the same shall approve, such officer’s or
officers’ approval thereof to be conclusively evidenced by the performance of
any such other action or the execution and delivery of any such other
documents, instruments, agreements, notes, undertakings and certificates; and

 

RESOLVED FURTHER, that
all acts and things previously done by any of the officers of the Company, on
or prior to the date hereof, in the name and on behalf of the Company, in
connection with the transactions contemplated by the foregoing resolutions, are
in all respects ratified, approved, confirmed and adopted as the acts and deeds
by and on behalf of the Company.

 

* * *

 

3

 

This Unanimous Written
Consent may be executed in one or more counterparts, each of which shall be
considered as an original.  The
Secretary of the Company shall file this Unanimous Written Consent in the
minute book of the Company and it shall become part of the records of the
Company.

 

	
  Dated: 
  February 1, 2000

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E. Bamberger

  
	
   

  	
   

  
	
    

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  

 

4

 

 

Annex 4

 

 

State of Delaware

 

Office of the Secretary of State

________________________

 

I, EDWARD J.
FREEL, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THAT
“COLLAGEN AESTHETICS, INC.” IS DULY INCORPORATED UNDER THE LAWS OF THE STATE OF
DELAWARE AND IS IN GOOD STANDING AND HAS A LEGAL CORPORATE EXISTENCE NOT HAVING
BEEN CANCELLED OR DISSOLVED SO FAR AS THE RECORDS OF THIS OFFICE SHOW AND IS
DULY AUTHORIZED TO TRANSACT BUSINESS.

 

THE FOLLOWING
DOCUMENTS HAVE BEEN FILED:

 

CERTIFICATE OF
INCORPORATION, FILED THE TENTH DAY OF OCTOBER, A.D. 1986, AT 10 O’CLOCK A.M.

 

CERTIFICATE OF
MERGER, CHANGING ITS NAME FROM “COLLAGEN SUBSIDIARY, INC.” TO “COLLAGEN
CORPORATION”, FILED THE TWELFTH DAY OF FEBRUARY, A.D. 1987, AT 10 O’CLOCK A.M.

 

CERTIFICATE OF
OWNERSHIP, FILED THE THIRTIETH DAY OF JUNE, A.D. 1988, AT 10 O’CLOCK A.M.

 

CERTIFICATE OF
OWNERSHIP, FILED THE FIRST DAY OF OCTOBER, A.D. 1990, AT 10:01 O’CLOCK A.M.

 

CERTIFICATE OF
OWNERSHIP, FILED THE EIGHTEENTH DAY OF JUNE, A.D. 1992, AT 2 O’CLOCK P.M.

 

CERTIFICATE OF
CORRECTION, FILED THE TWENTY-SIXTH DAY OF JUNE, A.D. 1992, AT 1 O’CLOCK P.M.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of
  State

  
	
   

  	
   

  	
   

  
	
  2104191    
  8310

  	
   

  	
  AUTHENTICATION: 

  	
  0233301

  
	
   

  	
   

  	
   

  
	
  001053425

  	
   

  	
   

  	
  DATE:

  	
  02-02-00

  
					

 

 

1

 

CERTIFICATE OF
AMENDMENT, CHANGING ITS NAME FROM “COLLAGEN CORPORATION” TO “COLLAGEN AESTHETICS,
INC.”, FILED THE THIRTEENTH DAY OF AUGUST, A.D. 1998, AT 9 O’CLOCK A.M.

 

CERTIFICATE OF
OWNERSHIP, FILED THE FIRST DAY OF SEPTEMBER, A.D. 1999, AT 10:30 O’CLOCK A.M.

 

AND I DO HEREBY
FURTHER CERTIFY THAT THE AFORESAID CERTIFICATES ARE THE ONLY CERTIFICATES ON
RECORD OF THE AFORESAID CORPORATION.

 

AND I DO HEREBY
FURTHER CERTIFY THAT THE FRANCHISE TAXES HAVE BEEN PAID TO DATE.

 

AND I DO HEREBY
FURTHER CERTIFY THAT THE ANNUAL REPORTS HAVE BEEN FILED TO DATE.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of
  State

  
	
   

  	
   

  	
   

  
	
  2104191    
  8310

  	
   

  	
  AUTHENTICATION: 

  	
  0233301

  
	
   

  	
   

  	
   

  
	
  001053425

  	
   

  	
   

  	
  DATE: 

  	
  02-02-00

  
					

 

2

 

COLLAGEN AESTHETICS
INTERNATIONAL, INC.

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made to the Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise modified
from time to time,  the “Credit
Agreement”), among Inamed Corporation (the “Borrower”), the Lenders,
Bear Stearns Corporate Lending Inc., as Syndication Agent (in such capacity,
the “Syndication Agent”). Bear, Stearns & Co. Inc., as sole lead
arranger and sole book manager (the “Arranger”) and the Administrative
Agent.  Capitalized terms used herein
and not otherwise defined shall have the meanings assigned in the Credit
Agreement. This certificate is being delivered pursuant to Section 5.1(g) of
the Credit Agreement.

 

I, David E. Bamberger, hereby certify that I am the
Secretary of Collagen Aesthetics International, Inc. (the “Company”), and as
such have access to the Company’s corporate records and am familiar with the
matters therein contained and herein certified, and that:

 

1.         Attached hereto as Annex 1 is a true, correct and complete
copy of the Certificate of Incorporation of the Company, as filed with the
Secretary of State of the State of Delaware on December 8, 1998.

 

2.         Attached hereto as Annex 2 is a true, correct and complete
copy of the By-laws of the Company as presently in effect  on and as of the date hereof, which
By-laws are in full force and effect in said form without modification,
amendment, rescission or repeal in any respect.

 

3.         Attached hereto as Annex 3 is a true, correct and complete
copy of resolutions adopted by unanimous written consent in lieu of a meeting
in accordance with applicable laws and the Certificate of  Incorporation and By-laws of the Company,
and such resolutions (i) were duly adopted by the Board of Directors of the
Company and are in full force and effect on and as of the date hereof, not
having been in any way amended, altered or repealed, and (ii) constitute the
only resolutions of the Board of Directors of the Company relating to the
subject matter of the Credit Agreement, the other Loan Documents and the
transactions contemplated thereby.

 

 

4.         Attached hereto as Annex 4 is a true, correct and complete
copy of a certificate from the Office of the Secretary of State of the State of
Delaware indicating that the Company (i) is in good standing, (ii) has a legal
corporate existence not having been cancelled or dissolved, (iii) is duly
authorized to transact business and (iv) has paid all franchise taxes to date.

 

5.         There are no consents, licenses or approvals required in
connection with the execution, delivery and performance by the Company or the
validity and enforceability against the Company of the Loan Documents to which
it is a party.

 

6.         The following persons are duly qualified and acting officers
of the Company, each of whom is authorized to sign any of the Loan Documents to
which the Company is a party, and each of whom is duly elected to the office
set forth opposite his respective name; the signature appearing opposite the
name of each such officer is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  PRESIDENT

  	
  /s/

  	
  Ilan K. Reich

  	
   

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/

  	
  David E. Bamberger

  	
   

  

 

IN WITNESS WHEREOF, the
undersigned has executed this Secretary’s Certificate as of the 1 day of
February,  2000.

 

	
    

  	
  /s/ David E. Bamberger 

  
	
   

  	
  David E. Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K. Reich,
President of the Company, hereby certify that David E. Bamberger is the duly
elected Secretary of the Company and that the signature appearing above is his
genuine signature.

 

	
    

  	
  /s/ Ilan K. Reich 

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  President

  

 

3

 

Annex I

 

C.A.

International

 

 

State of Delaware

 

Office of the Secretary of State

________________________

 

I, EDWARD J. FREEL,
SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS
A TRUE AND CORRECT COPY OF THE CERTIFICATE OF INCORPORATION OF “COLLAGEN
INTERNATIONAL, INC.”, FILED IN THIS OFFICE ON THE SIXTEENTH DAY OF OCTOBER,
A.D. 1990, AT 10 O’CLOCK A.M.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of
  State

  
	
   

  	
   

  	
   

  
	
  2243951     
  8100

  	
   

  	
  AUTHENTICATION: 

  	
  0217822

  
	
   

  	
   

  	
   

  
	
  001039261

  	
   

  	
  DATE:

  	
   01-26-00

  

 

1

 

CERTIFICATE OF
INCORPORATION

 

OF

 

COLLAGEN INTERNATIONAL,
INC.

 

1.         The name of the corporation is Collagen International, Inc.
(the “Corporation”).

 

2.         The address of the Corporation’s registered office in the
State of Delaware is Corporation Trust Center, 1209 Orange Street, in the City
of Wilmington, County of New Castle, Delaware 19801. The name of its registered
agent at such address is The Corporation Trust Company.

 

3.         The nature of the business or purposes to be conducted or
promoted by the Corporation is to engage in any lawful act or activity for
which corporations may be organized under the General Corporation Law of
Delaware.

 

4.         The corporation is authorized to issue one class of shares
to be designated “Common Stock.” The number of shares of Common Stock
authorized to be issued is One Thousand (1,000).  The Common Stock shall have a par value of $.01 per share.

 

5.         The name and mailing address of the incorporator are as
follows:

 

Robert P. Ruscher

Wilson, Sonsini,
Goodrich & Rosati, P.C.

Two Palo Alto
Square

Palo Alto,
California 94306

 

6.          The Corporation is to have perpetual existence.

 

7.         In furtherance and not in limitation of the powers conferred
by statute, the Board of Directors is expressly authorized to make, alter,
amend or repeal the Bylaws of the Corporation, but the stockholders may make
additional Bylaws and may alter or repeal any Bylaw whether adopted by them or
otherwise.

 

8.         The number of directors which will constitute the whole
Board of Directors of the Corporation shall be as specified in the Bylaws of
the Corporation.

 

9.         At all elections of directors of the Corporation, and subject
to the provisions of the Bylaws of the Corporation, each holder of stock or of
any class or classes or of a series or series thereof shall be entitled to as
many votes as shall equal the number of votes which (except for such provision
as to cumulative

 

 

voting) he would be entitled to cast for the election
of directors with respect to his shares of stock multiplied by the number of
directors to be elected by him, and he may cast all of such votes for a single
director or may distribute them among the number to be voted for, or for any
two or more of them as he may see fit.

 

10.       Meetings of stockholders may be held
within or without the State of Delaware, as the Bylaws may provide. The books
of the Corporation may be kept (subject to any provision contained in the
statutes) outside the State of Delaware at such place or places as may be
designated from time to time by the Board of Directors or in the Bylaws of the
Corporation.

 

11.       (a) 
To the fullest extent permitted by the Delaware General Corporation Law
as the same exists or as may hereafter be amended, a director of the
Corporation shall not be personally liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director.

 

(b)  The corporation shall indemnify to the full
extent permitted by law any person made or threatened to be made a party to an
action or proceeding, whether criminal, civil, administrative or investigative,
by reason of the fact that he, his testator or intestate is or was a director, officer
or employee of the corporation or any predecessor of the corporation or serves
or served any other enterprise as a director, officer or employee at the
request of the corporation or any predecessor of the corporation.

 

(c)  Neither any amendment nor repeal of this
Article 11, nor the adoption of any provision of this Certification of
Incorporation inconsistent with this Article 11, shall eliminate or reduce the
effect of this Article 11 in respect of any matter occurring, or any cause of
action, suit or claim that, but for this Article 11, would accrue or arise,
prior to such amendment, repeal or adoption of an inconsistent provision.

 

12.       Advance notice of new business and
stockholder nominations for the election of directors shall be given in the manner
and to the extent provided in the Bylaws of the Corporation.

 

13.       The Corporation reserves the right to
amend, alter, change or repeal any provision contained in this Certificate of
Incorporation, in the manner now or hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this
reservation.

 

I, THE UNDERSIGNED, being
the incorporator hereinbefore named, for the purpose of forming a corporation
pursuant to the General

 

2

 

Corporation Law of the State of Delaware, do make this Certificate,
hereby declaring and certifying that this is my act and deed and the facts
herein stated as true, and accordingly have hereunto set my hand this 15th day
of October, 1990.

 

	
     

  	
  /s/ Robert P. Ruscher

  
	
   

  	
  Robert P. Ruscher

  
	
   

  	
   

  

 

3

 

State of Delaware

 

Office of the Secretary of State

________________________

 

I, EDWARD J. FREEL,
SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS
A TRUE AND CORRECT COPY OF THE CERTIFICATE OF AMENDMENT OF “COLLAGEN
INTERNATIONAL, INC.”, CHANGING ITS NAME FROM “COLLAGEN INTERNATIONAL, INC.” TO
“COLLAGEN AESTHETICS INTERNATIONAL, INC.”, FILED IN THIS OFFICE ON THE SIXTEENTH
DAY OF OCTOBER, A.D. 1998, AT 4 O’CLOCK P.M.

 

	
   

  	
     

  	
  /s/ Edward J. Freel 

  
	
  [SEAL]

  	
   

  	
  Edward J. Freel, Secretary of
  State

  
	
   

  	
   

  	
   

  
	
  2243951    
  8100

  	
   

  	
  AUTHENTICATION: 

  	
  0217821

  
	
   

  	
   

  	
   

  
	
  001039261

  	
   

  	
  DATE:

  	
  01-26-00

  

 

1

 

CERTIFICATE
OF AMENDMENT OF

 

CERTIFICATE
OF INCORPORATION

 

OF

 

COLLAGEN
INTERNATIONAL, INC.

 

The undersigned hereby
certifies that:

 

1.         He is the duly elected and acting President and Chief
Executive Officer of Collagen International, Inc., a Delaware corporation.

 

2.         The Certificate of Incorporation of this corporation was
originally filed with the Secretary of State of Delaware on October 16, 1990.

 

3.         Pursuant to Section 242 of the General Corporation Law of
the State of Delaware, this Certificate of Amendment of Certificate of
Incorporation amends Article I of this corporation’s Certificate of
Incorporation to read in its entirety as follows:

 

“The name of this
corporation is Collagen Aesthetics International, Inc.”

 

4.         The foregoing Certificate of Amendment has been duly adopted
by this corporation’s Board of Directors and stockholders in accordance with
the applicable provisions of the General Corporation Law of the State of
Delaware.

 

Executed at Palo Alto,
California, October 5, 1998.

 

	
   

  	
  /s/ Gary S. Petersmeyer

  
	
   

  	
  Gary S. Petersmeyer,

  
	
   

  	
  President and Chief Executive Officer

  

 

 

 

Annex 2

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I – CORPORATE OFFICES

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1 

  	
  REGISTERED OFFICE

  
	
   

  	
  1.2

  	
  OTHER OFFICES

  
	
   

  	
   

  	
   

  
	
  ARTICLE II – MEETINGS
  OF STOCKHOLDERS

  
	
   

  
	
   

  	
  2.1

  	
  PLACE OF MEETINGS

  
	
   

  	
  2.2

  	
  ANNUAL MEETING 

  
	
   

  	
  2.3

  	
  SPECIAL MEETING 

  
	
   

  	
  2.4

  	
  NOTICE OF
  STOCKHOLDERS’ MEETINGS 

  
	
   

  	
  2.5

  	
  ADVANCE NOTICE
  OF STOCKHOLDER NOMINEES 

  
	
   

  	
  2.6

  	
  MANNER OF
  GIVING NOTICE; AFFIDAVIT OF NOTICE 

  
	
   

  	
  2.7

  	
  QUORUM
  

  
	
   

  	
  2.8

  	
  ADJOURNED MEETING; NOTICE

  
	
   

  	
  2.9

  	
  CONDUCT OF BUSINESS

  
	
   

  	
  2.10

  	
  VOTING

  
	
   

  	
  2.11

  	
  WAIVER OF NOTICE

  
	
   

  	
  2.12

  	
  STOCKHOLDER
  ACTION BY WRITTEN CONSENT WITHOUT A MEETING 

  
	
   

  	
  2.13

  	
  RECORD
  DATE FOR STOCKHOLDER NOTICE; VOTING; GIVING 
  CONSENTS

  
	
   

  	
  2.14

  	
  PROXIES

  
	
   

  	
  2.15

  	
  LIST OF
  STOCKHOLDERS ENTITLED TO VOTE

  
	
   

  	
   

  	
   

  
	
  ARTICLE III – DIRECTORS

  
	
   

  
	
   

  	
  3.1

  	
  POWERS
  

  
	
   

  	
  3.2

  	
  NUMBER OF DIRECTORS

  
	
   

  	
  3.3

  	
  ELECTION,
  QUALIFICATION AND TERM OF OFFICE OF DIRECTORS

  
	
   

  	
  3.4

  	
  RESIGNATION AND VACANCIES

  
	
   

  	
  3.5

  	
  PLACE OF
  MEETINGS; MEETINGS BY TELEPHONE

  
	
   

  	
  3.6

  	
  REGULAR MEETINGS

  
	
   

  	
  3.7

  	
  SPECIAL MEETINGS; NOTICE

  
	
   

  	
  3..8

  	
  QUORUM
  

  
	
   

  	
  3.9

  	
  WAIVER OF NOTICE

  
	
   

  	
  3.10

  	
  BOARD
  ACTION BY WRITTEN CONSENT WITHOUT A MEETING

  
	
   

  	
  3.11

  	
  FEES AND
  COMPENSATION OF DIRECTORS 

  
	
   

  	
  3.12

  	
  APPROVAL OF LOANS TO
  OFFICERS

  
	
   

  	
  3.13

  	
  REMOVAL OF DIRECTORS

  
	
   

  	
  3.14

  	
  CHAIRMAN OF THE
  BOARD OF DIRECTORS 

  

 

i

 

	
  ARTICLE IV – COMMITTEES

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  COMMITTEES OF DIRECTORS

  
	
   

  	
  4.2

  	
  COMMITTEE MINUTES

  
	
   

  	
  4.3

  	
  MEETINGS AND ACTION
  OF COMMITTEES

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V – OFFICERS

  
	
   

  
	
   

  	
  5.1

  	
  OFFICERS

  
	
   

  	
  5.2

  	
  APPOINTMENT OF OFFICERS

  
	
   

  	
  5.3

  	
  SUBORDINATE OFFICERS 

  
	
   

  	
  5.4

  	
  REMOVAL AND
  RESIGNATION OF OFFICERS

  
	
   

  	
  5.5

  	
  VACANCIES IN OFFICES

  
	
   

  	
  5.6

  	
  CHIEF EXECUTIVE OFFICER

  
	
   

  	
  5.7

  	
  PRESIDENT

  
	
   

  	
  5.8

  	
  VICE PRESIDENTS

  
	
   

  	
  5.9

  	
  SECRETARY

  
	
   

  	
  5.10

  	
  CHIEF FINANCIAL OFFICER

  
	
   

  	
  5.11 

  	
  REPRESENTATION
  OF SHARES OF OTHER CORPORATIONS

  
	
   

  	
  5.12

  	
  AUTHORITY AND DUTIES
  OF OFFICERS

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI – INDEMNITY 

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  THIRD PARTY ACTIONS 

  
	
   

  	
  6.2

  	
  ACTIONS
  BY OR IN THE RIGHT OF THE CORPORATION

  
	
   

  	
  6.3

  	
  SUCCESSFUL DEFENSE

  
	
   

  	
  6.4

  	
  DETERMINATION OF CONDUCT

  
	
   

  	
  6.5

  	
  PAYMENT OF EXPENSES IN
  ADVANCE

  
	
   

  	
  6.6

  	
  INDEMNITY NOT EXCLUSIVE

  
	
   

  	
  6.7

  	
  INSURANCE INDEMNIFICATION

  
	
   

  	
  6.8

  	
  THE CORPORATION

  
	
   

  	
  6.9

  	
  EMPLOYEE BENEFIT PLANS

  
	
   

  	
  6.10

  	
  CONTINUATION
  OF INDEMNIFICATION AND ADVANCEMENT OF EXPENSES

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII – RECORDS
  AND REPORTS

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  MAINTENANCE AND
  INSPECTION OF RECORDS 

  
	
   

  	
  7.2

  	
  INSPECTION BY DIRECTORS

  
	
   

  	
  7.3

  	
  ANNUAL STATEMENT TO
  STOCKHOLDERS

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII – GENERAL MATTERS

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  CHECKS

  
	
   

  	
  8.2

  	
  EXECUTION
  OF CORPORATE CONTRACTS AND INSTRUMENTS

  

 

ii

 

 

	
   

  	
  8.3

  	
  STOCK
  CERTIFICATES; PARTLY PAID SHARES

  
	
   

  	
  8.4

  	
  SPECIAL DESIGNATION
  ON CERTIFICATES

  
	
   

  	
  8.5

  	
  LOST CERTIFICATES

  
	
   

  	
  8.6

  	
  CONSTRUCTION; DEFINITIONS

  
	
   

  	
  8.7

  	
  DIVIDENDS

  
	
   

  	
  8.8

  	
  FISCAL YEAR

  
	
   

  	
  8.9

  	
  SEAL

  
	
   

  	
  8.10

  	
  TRANSFER OF STOCK

  
	
   

  	
  8.11

  	
  STOCK TRANSFER AGREEMENTS

  
	
   

  	
  8.12

  	
  REGISTERED STOCKHOLDERS

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX – AMENDMENTS

  

 

iii

 

BY-LAWS

 

OF

 

COLLAGEN INTERNATIONAL,
INC.

 

ARTICLE I

 

CORPORATE OFFICES

 

1.1          REGISTERED OFFICE

 

The registered office of
the corporation shall be in the City of Wilmington, County of New Castle, State
of Delaware.  The name of the registered
agent of the corporation at such location is The Corporation Trust Company.

 

1.2          OTHER OFFICES

 

The board of directors
may at any time establish other offices at any place or places where the
corporation is qualified to do business.

 

ARTICLE II

 

MEETINGS OF STOCKHOLDERS

 

2.1           PLACE OF MEETINGS

 

Meetings of stockholders
shall be held at any place, within or outside the State of Delaware, designated
by the board of directors. In the absence of any such designation,
stockholders’ meetings shall be held at the registered office of the
corporation.

 

2.2          ANNUAL MEETING

 

The annual meeting  of stockholders
shall be held each year on a date and at a time designated by the board of
directors.  At the meeting, directors
shall be elected and any other proper business may be transacted.

 

2.3          SPECIAL MEETING

 

A special meeting of the
stockholders may be called at any time by the board of directors, or by the
chairman of the board, or by the president or by one or more stockholders
holding shares in the aggregate entitled to cast not less than ten percent of
the votes at that meeting.

 

 

If a special meeting is called by any person or
persons other than the board of directors, the request shall be in writing,
specifying the time of such meeting and the general nature of the business
proposed to be transacted, and shall be delivered personally or sent by
registered mail or by telegraphic or other facsimile transmission to the
chairman of the board, the president, any vice president, or the secretary of
the corporation.  No business may be
transacted at such special meeting otherwise than specified in such
notice.  The officer receiving the
request shall cause notice to be promptly given to the stockholders entitled to
vote, in accordance with the provisions of Sections 4 and 5 of this Article II,
that a meeting will be held at the time requested by the person or persons
calling the meeting, not less than thirty five (35) nor more than sixty  (60) days after the receipt of the
request.  If the notice is not given
within twenty (20) days after the receipt of the request, the person or persons
requesting the meeting may give the notice. Nothing contained in this paragraph
of this Section 3 shall be construed as limiting, fixing, or affecting the time
when a meeting of stockholders called by action of the board of directors may
be held.

 

2.4           NOTICE OF STOCKHOLDERS’ MEETINGS

 

All notices of meetings with stockholders shall be in
writing and shall be sent or otherwise given in accordance with Section 2.5 of
these by-laws not less than ten (10) nor more than sixty (60) days before the
date of the meeting to each stockholder entitled to vote at such meeting.  The notice shall specify the place, date,
and hour of the meeting, and, in the case of a special meeting, the purpose or
purposes for which the meeting is called.

 

2.5           ADVANCE NOTICE OF STOCKHOLDER
NOMINEES

 

Only persons who are nominated in accordance with the
procedures set forth in this Section 2.5 shall be eligible for election as
Directors.  Nominations of persons for
election to the Board of Directors of the Corporation may be made at a meeting
of stockholders by or at the direction of the Board of Directors or by any
stockholder of the corporation entitled to vote for the election of Directors
at the meeting who complies with the notice procedures set forth in this
Section 2.5. Such nominations, other than those made by or at the direction of
the Board of Directors, shall be made pursuant to timely notice in writing to
the Secretary of the corporation.  To be
timely, a stockholder’s notice shall be delivered to or mailed and received at
the principal executive offices of the corporation not less than sixty (60)
days nor more than ninety (90) days prior to the meeting; provided, however,
that in the event that less than sixty (60) days’ notice or prior public
disclosure of the date of the meeting is given or made to stockholders, notice
by the stockholder to be timely must be so

 

2

 

received not later than the close of business on the 10th day following
the day on which such notice of the date of the meeting was mailed or such
public disclosure was made.  Such
stockholder’s notice shall set forth (a) as to each person whom the stockholder
proposes to nominate for election or re-election as a Director, (i) the name,
age, business address and residence address of such person, (ii) the principal
occupation or employment of such person, (iii) the class and number of shares
of the corporation which are beneficially owned by such person and (iv) any
other information relating to such person that is required to be disclosed in
solicitations of proxies for election of Directors, or is otherwise required,
in each case pursuant to Regulation 14A under the Securities Exchange Act of
1934, as amended (including without limitation such person’s written consent to
being named in the proxy statement as a nominee and to serving as a Director if
elected); and (b) as to the stockholder giving the notice (i) the name and
address, as they appear on the corporation’s books, of such stockholder and
(ii) the class and number of shares of the corporation which are beneficially
owned by such stockholder.  At the
request of the Board of Directors any person nominated by the Board of
Directors for election as a Director shall furnish to the Secretary of the
corporation that information required to be set forth in  a stockholder’s notice of nomination
which pertains to the nominee.  No
person shall be eligible for election as a Director of the corporation unless
nominated in accordance with the procedures set forth in  this Section 2.5. The Chairman of the
meeting shall, if the facts warrant, determine and declare to the meeting that
a nomination was not made in accordance with the procedures prescribed by the
By-Laws, and if he should so determine, he shall so declare to the meeting and
the defective nomination shall be disregarded.

 

2.6           MANNER OF GIVING NOTICE; AFFIDAVIT OF
NOTICE

 

Written notice of any
meeting of stockholders, if mailed, is given when deposited in the United
States mail, postage prepaid, directed to the stockholder at his address as it
appears on the records of the corporation. 
An affidavit of the secretary or an assistant secretary or of the
transfer agent of the corporation that the notice has been given shall, in the
absence of fraud, be prima facie evidence of the facts stated therein.

 

2.7           QUORUM

 

The holders of a majority
of the stock issued and outstanding and entitled to vote thereat, present in
person or represented by proxy, shall constitute a quorum at all meetings of
the stockholders for the transaction of business except as otherwise provided
by statute or by the certificate of incorporation. If, however, such quorum is
not present or represented at any meeting

 

 

3

 

of the stockholders, then either (i) the Chairman of the meeting or
(ii) the stockholders entitled to vote thereat, present in person or
represented by proxy, shall have power to adjourn the meeting from time to
time, without notice other than announcement at the meeting, until a quorum is
present or represented. At such adjourned meeting at which a quorum is present
or represented, any business may be transacted that might have been transacted
at the meeting as originally noticed.

 

2.8           ADJOURNED MEETING; NOTICE

 

When a meeting is
adjourned to another time or place, unless these by-laws otherwise require,
notice need not be given of the adjourned meeting if the time and place thereof
are announced at the meeting at which the adjournment is taken. At the
adjourned meeting the corporation may transact any business that might have
been transacted at the original meeting. If the adjournment is for more than
thirty (30) days, or if after the adjournment a new record date is fixed for
the adjourned meeting, a notice of the adjourned meeting shall be given to each
stockholder of record entitled to vote at the meeting.

 

2.9           CONDUCT OF BUSINESS

 

The Chairman of any meeting
of stockholders shall determine the order of business and the procedure at the
meeting, including such regulation of the manner of voting and the conduct of
business.

 

2.10         VOTING

 

The stockholders entitled
to vote at any meeting of stockholders shall be determined in accordance with
the provisions of Section 2.14 of these by-laws, subject to the provisions of
Sections 217 and 218 of the General Corporation Law of Delaware (relating to
voting rights of fiduciaries, pledgors and joint owners of stock and to voting
trusts and other voting agreements).

 

Except as provided in the
last paragraph of this Section 2.10, or as may be otherwise provided in the
certificate of incorporation, each stockholder shall be entitled to one vote
for each share of capital stock held by such stockholder.

 

At a stockholders’
meeting at which directors are to be elected, each stockholder shall be
entitled to cumulate votes (i.e., cast for any candidate a number of votes
greater than the number of votes which such stockholder normally is entitled to
cast) if the candidates’ names have been properly placed in nomina­tion (in
accordance with these by-laws) prior to commencement of the voting and the
stockholder requesting cumulative voting has

 

4

 

given notice prior to commencement of the voting of the stockholder’s
intention to cumulate votes.  If
cumulative voting is properly requested, each holder of stock, or of any class
or classes or of a series or series thereof, who elects to cumulate, votes
shall be entitled to as many votes as equals the number of votes which (absent
this provision as to cumulative voting) he would be entitled to cast for the
election of directors with respect to his shares of stock multiplied by the
number of directors to be elected by him, and he may cast all of such votes for
a single director or may distribute them among the number to be voted for, or
for any two or more of them, as he may see fit.

 

2.11         WAIVER OF NOTICE

 

Whenever notice is
required to be given under any provision of the General Corporation Law of
Delaware or of the certificate of incorporation or these by-laws, a written
waiver thereof, signed by the person entitled to notice, whether before or
after the time stated therein, shall be deemed equivalent to notice. Attendance
of a person at a meeting shall constitute a waiver of notice of such meeting,
except when the person attends a meeting for the express purpose of objecting,
at the beginning of the meeting, to the transaction of any business because the
meeting is not lawfully called or convened. Neither the business to be
transacted at, nor the purpose of, any regular or special meeting of the
stockholders need be specified in any written waiver of notice unless so
required by the certificate of incorporation or these by-laws.

 

2.12         STOCKHOLDER ACTION BY WRITTEN
CONSENT WITHOUT A MEETING

 

Unless otherwise provided
in the certificate of incorporation, any action required by this chapter to be
taken at any annual or special meeting of stockholders of the corporation, or
any action that may be taken at any annual or special meeting of such
stockholders, may be taken without a
meeting, without  prior
notice, and without a vote if a consent in writing, setting forth the action so
taken, is signed by the holders of outstanding stock having not less than the
minimum number of votes that would be necessary to authorize or take such
action at a meeting at which all shares entitled to vote thereon were present
and voted.

 

Prompt notice of the
taking of the corporate action without a meeting by less than unanimous written
consent shall be given to those stockholders who have not consented in
writing.  If the action which is
consented to is such as would have required the filing of a certificate under any
section of the General Corporation Law of Delaware if such action had been
voted on by stockholders at a meeting thereof, then the certificate filed under
such section shall state, in lieu of any statement required by such section
concerning any vote of stockholders, that written notice

 

 

5

 

and written consent have been given as provided in Section 228 of the
General Corporation Law of Delaware.

 

2.13         RECORD DATE FOR STOCKHOLDER NOTICE;
VOTING; GIVING CONSENTS

 

In order that the
corporation may determine the stockholders entitled to notice of or to vote at
any meeting of stockholders or any adjournment thereof, or entitled to express
consent to corporate action in writing without a meeting, or entitled to
receive payment of any dividend or other distribution or allotment of any
rights, or entitled to exercise any rights in respect of any change, conversion
or exchange of stock or for the purpose of any other lawful action, the board
of directors may fix, in advance, a record date, which shall not be more than
sixty (60) nor less than ten (10) days before the date of such meeting, nor
more than sixty (60) days prior to any other action.

 

If the board of directors
does not so fix a record date:

 

(i)           The record date for determining
stockholders entitled to notice of or to vote at a meeting of stockholders
shall be at the close of business on the day next preceding the day on which
notice is given, or, if notice is waived, at the close of business on the day next
preceding the day on which the meeting is held.

 

(ii)           The record date for determining
stockholders entitled to express consent to corporate action in writing without
a meeting, when no prior action by the board of directors is necessary, shall
be the day on which the first written consent is expressed.

 

(iii)          The
record date for determining stockholders for any other purpose shall be at the
close of business on the day on which the board of directors adopts the
resolution relating thereto.

 

A determination of
stockholders of record entitled to notice of or to vote at a meeting of
stockholders shall apply to any adjournment of the meeting; provided, however,
that the board of directors may fix a new record date for the adjourned
meeting.

 

2.14         PROXIES

 

Each stockholder entitled
to vote at a meeting of stockholders or to express consent or dissent to
corporate action in writing without a meeting may authorize another person or
persons to act for him by a written proxy, signed by the stockholder and filed with
the secretary of the corporation, but no such proxy shall be voted or acted
upon after three (3) years from its date, unless the

 

6

 

proxy provides for a longer period. A proxy shall be deemed signed if the
stockholder’s name is placed on the proxy (whether by manual signature,
typewriting, telegraphic transmission or otherwise) by the stockholder or the
stockholder’s attorney-in-fact. The revocability of a proxy that states on its
face that it is irrevocable shall be governed by the provisions of Section
212(c) of the General Corporation Law of Delaware.

 

2.15         LIST OF STOCKHOLDERS ENTITLED TO VOTE

 

The officer who has
charge of the stock ledger of a corporation shall prepare and make, at least
ten (10) days before every meeting of stockholders, a complete list of the
stockholders entitled to vote at the meeting, arranged in alphabetical order,
and showing the address of each stockholder and the number of shares registered
in the name of each stockholder. Such list shall be open to the examination of
any stockholder, for any purpose germane to the meeting, during ordinary
business hours, for a period of at least ten (10) days prior to the meeting,
either at a place within the city where the meeting is to be held, which place
shall be specified in the notice of the meeting, or, if not so specified, at
the place where the meeting is to be held. The list shall also be produced and
kept at the time and place of the meeting during the whole time thereof, and
may be inspected by any stockholder who is present. Such list shall
presumptively determine the identity of the stockholders entitled to vote at
the meeting and the number of shares held by each of them.

 

ARTICLE III

 

DIRECTORS

 

3.1           POWERS

 

Subject to the provisions
of the General Corporation Law of Delaware and any limitations in the
certificate of incorporation or these by-laws relating to action required to be
approved by the stockholders or by the outstanding shares, the business and
affairs of the corporation shall be managed and all corporate powers shall be
exercised by or under the direction of the board of directors.

 

3.2           NUMBER OF DIRECTORS

 

The Board of Directors
shall consist of three (3) persons until changed by a proper amendment of this
Section 3.2.

 

No reduction of the
authorized number of directors shall have the effect of removing any director
before that director’s term of office expires.

 

7

 

3.3          ELECTION, QUALIFICATION AND TERM OF
OFFICE OF DIRECTORS

 

Except as provided in
Section 3.4 of these by-laws, directors shall be elected at each annual meeting
of stockholders to hold office until the next annual meeting. Directors need
not be stockholders unless so required by the certificate of incorporation or
these by-laws, wherein other qualifications for directors may be prescribed.
Each director, including a director elected to fill a vacancy, shall hold
office until his successor is elected and qualified or until his earlier
resignation or removal.

 

Elections of directors
need not be by written ballot.

 

3.4          RESIGNATION AND VACANCIES

 

Any director may resign
at any time upon written notice to the attention of the Secretary of the
corporation.  When one or more directors
so resigns and the resignation is effective at a future date, a majority of the
directors then in office, including those who have so resigned, shall have
power to fill such vacancy or vacancies, the vote thereon to take effect when
such resignation or  resignations shall  become effective, and each director so
chosen shall hold office as provided in this section in the filling of other
vacancies.

 

Unless otherwise provided
in the certificate of incorporation or these by-laws:

 

(i)            Vacancies and newly created
directorships resulting from any increase in the authorized number of directors
elected by all of the stockholders having the right to vote as a single class
may be filled by a majority of the directors then in office, although less than
a quorum, or by a sole remaining director.

 

(ii)              Whenever the holders of any class
or classes of stock or series thereof are entitled to elect one or more
directors by the provisions of the certificate of incorporation, vacancies and
newly created directorships of such class or classes or series may be filled by
a majority of the directors elected by such class or classes or series thereof
then in office, or by a sole remaining director so elected.

 

If at any time, by reason
of death or resignation or other cause, the corporation should have no
directors in office, then any officer or any stockholder or an executor,
administrator, trustee or guardian of a stockholder, or other fiduciary
entrusted with like responsibility for the person or estate of a stockholder,
may call a special meeting of stockholders in accordance with the provisions of
the certificate of incorporation or these by-laws, or

 

8

 

may apply to the Court of Chancery for a decree summarily ordering an
election as provided in Section 211 of the General Corporation Law of Delaware.

 

If, at the time of
filling any vacancy or any newly created directorship, the directors then in
office constitute less than a majority of the whole board (as constituted
immediately prior to any such increase), then the Court of Chancery may, upon
application of any stockholder or stockholders holding at least ten (10)
percent of the total number of the shares at the time outstanding having the
right to vote for such directors, summarily order an election to be held to
fill any such vacancies or newly created directorships, or to replace the
directors chosen by the directors then in office as aforesaid, which election
shall be governed by the provisions of Section 211 of the General Corporation
Law of Delaware as far as applicable.

 

3.5          PLACE OF MEETINGS; MEETINGS BY
TELEPHONE

 

The board of directors of
the corporation may hold meetings, both regular and special, either within or
outside the State of Delaware.

 

Unless otherwise
restricted by the certificate of incorporation or these by-laws, members of the
board of directors, or any committee designated by the board of directors, may
participate in a meeting of the board of directors, or any committee, by means
of conference telephone or similar communications equipment by means of which
all persons participating in the meeting can hear each other, and such
participation in a meeting shall constitute presence in person at the meeting.

 

3.6          REGULAR MEETINGS

 

Regular meetings of the
board of directors may be held without notice at such time and at such place as
shall from time to time be determined by the board.

 

3.7          SPECIAL MEETINGS; NOTICE

 

Special meetings of the
board of directors for any purpose or purposes may be called at any time by the
chairman of the board, the president, any vice president, the secretary or any
two (2) directors.

 

Notice of the time and
place of special meetings shall be delivered personally or by telephone to each
director or sent by first-class mail or telegram, charges prepaid, addressed to
each director at that director’s address as it is shown on the records of the
corporation. If the notice is mailed, it shall be deposited

 

9

 

in the United States mail at least four (4) days before the time of the
holding of the meeting. If the notice is delivered personally or by telephone
or by telegram, it shall be delivered personally or by telephone or to the
telegraph company at least forty-eight (48) hours before the time of the
holding of the meeting.  Any oral notice
given personally or by telephone may be communicated either to the director or
to a person at the office of the director who the person giving the notice has
reason to believe will promptly communicate it to the director. The notice need
not specify the purpose or the place of the meeting, if the meeting is to be
held at the principal executive office of the corporation.

 

3.8           QUORUM

 

At all meetings of the
board of directors, a majority of the authorized number of directors shall
constitute a quorum for the transaction of business and the act of a majority
of the directors present at any meeting at which there is a quorum shall be the
act of the board of directors, except as may be otherwise specifically provided
by statute or by the certificate of incorporation. If a quorum is not present
at any meeting of the board of directors, then the directors present thereat
may adjourn the meeting from time to time, without notice other than
announcement at the meeting, until a quorum is present.

 

A meeting at which a
quorum is initially present may continue to transact business notwithstanding
the withdrawal of directors, if any action taken is approved by at least a
majority of the required quorum for that meeting.

 

3.9           WAIVER OF NOTICE

 

Whenever notice is
required to be given under any provision of the General Corporation Law of
Delaware or of the certificate of incorporation or these by-laws, a written
waiver thereof, signed by the person entitled to notice, whether before or
after the time stated therein, shall be deemed equivalent to notice. Attendance
of a person at a meeting shall constitute a waiver of notice of such meeting,
except when the person attends a meeting for the express purpose of objecting,
at the beginning of the meeting, to the transaction of any business because the
meeting is not lawfully called or convened. Neither the business to be
transacted at, nor the purpose of, any regular or special meeting of the
directors, or members of a committee of directors, need be specified in any written
waiver of notice unless so required by the certificate of incorporation or
these by-laws.

 

10

 

3.10         BOARD ACTION BY WRITTEN CONSENT
WITHOUT A MEETING

 

Unless otherwise
restricted by the certificate of incorporation or these by-laws, any action
required or permitted to be taken at any meeting of the board of directors, or
of any committee thereof, may be taken without a meeting if all members of the
board or committee, as the case may be, consent thereto in writing and the
writing or writings are filed with the minutes of proceedings of the board or
committee.

 

3.11         FEES AND COMPENSATION OF DIRECTORS

 

Unless otherwise
restricted by the certificate of incorporation or these by-laws, the board of
directors shall have the authority to fix the compensation of directors.

 

3.12         APPROVAL OF LOANS TO OFFICERS

 

The corporation may lend
money to, or guarantee any obligation of, or otherwise assist any officer or
other employee of the corporation or of its subsidiary, including any officer
or employee who is a director of the corporation or its subsidiary, whenever,
in the judgment of the directors, such loan, guaranty or assistance may
reasonably be expected to benefit the corporation. The loan, guaranty or other
assistance may be with or without interest and may be unsecured, or secured in
such manner as the board of directors shall approve, including, without
limitation, a pledge of shares of stock of the corporation. Nothing in this
section contained shall be deemed to deny, limit or restrict the powers of
guaranty or warranty of the corporation at common law or under any statute.

 

3.13         REMOVAL OF DIRECTORS

 

Unless otherwise
restricted by statute, by the certificate of incorporation or by these by-laws,
any director or the entire board of directors may be removed, with or
without-cause, by the holders of a majority of the shares then entitled to vote
at an election of directors; provided, however, that, so long as shareholders
of the corporation are entitled to cumulative voting, if less than the entire
board is to be removed, no director may be removed without cause if the votes
cast against his removal would be sufficient to elect him if then cumulatively
voted at an election of the entire board of directors.

 

No reduction of the
authorized number of directors shall have the effect of removing any director
prior to the expiration of such director’s term of office.

 

11

 

3.14        CHAIRMAN OF THE BOARD OF DIRECTORS

 

The corporation may also
have, at the discretion of the board of directors, a chairman of the board of
directors who shall not be considered an officer of the corporation.

 

ARTICLE IV

 

COMMITTEES

 

4.1           COMMITTEES OF DIRECTORS

 

The board of directors
may, by resolution passed by a majority of the whole board, designate one or
more committees, with each committee to consist of one or more of the directors
of the corporation. The board may designate one or more directors as alternate
members of any committee, who may replace any absent or disqualified member at
any meeting of the committee.  In the
absence or disqualification of a member of a committee, the member or members
thereof present at any meeting and not disqualified from voting, whether or not
he or they constitute a quorum, may unanimously appoint another member of the
board of directors to act at the meeting in the place of any such absent or
disqualified member. Any such committee, to the extent provided in the
resolution of the board of directors or in the by-laws of the corporation,
shall have and may exercise all the powers and authority of the board of
directors in the management of the business and affairs of the corporation, and
may authorize the seal of the corporation to be affixed to all papers that may
require it; but no such committee shall have the power or authority to (i)
amend the certificate of incorporation (except that a committee may, to the
extent authorized in the resolution or resolutions providing for the issuance
of shares of stock adopted by the board of directors as provided in Section
151(a) of the General Corporation Law of Delaware, fix the designations and any
of the preferences or rights of such shares relating to dividends, redemption,
dissolution, any distribution of assets of the corporation or the conversion
into, or the exchange of such shares for, shares of any other class or classes
or any other series of the same or any other class or classes of stock of the
corporation or fix the number of shares of any series of stock or authorize the
increase or decrease of the shares of any series), (ii) adopt an agreement of
merger or consolidation under Sections 251 or 252 of the General Corporation
Law of Delaware, (iii) recommend to the stockholders the sale, lease or
exchange of all or substantially all of the corporation’s property and assets,
(iv) recommend to the stockholders a dissolution of the corporation or a
revocation of a dissolution, or (v) amend the by-laws of the corporation; and,
unless the board resolution establishing the committee, the by-laws or the
certificate of incorporation

 

12

 

expressly so provide, no such committee shall have the power or
authority to declare a dividend, to authorize the issuance of stock, or to adopt
a certificate of ownership and merger pursuant to Section 253 of the General
Corporation Law of Delaware.

 

4.2          COMMITTEE MINUTES

 

Each committee shall keep
regular minutes of its meetings and
report the same to the board of directors when required.

 

4.3          MEETINGS AND ACTION OF COMMITTEES

 

Meetings
and actions of committees shall be governed by, and held and taken in
accordance with, the provisions of Article III of these by-laws, Section 3.5
(place of meetings and meetings by telephone), Section 3.6 (regular meetings),
Section 3.7 (special meetings and notice), Section 3.8 (quorum), Section 3.9
(waiver of notice), and Section 3.10 (action without a meeting), with such
changes in the context of those by-laws as are necessary to substitute the
committee and its members for the board of directors and its members; provided,
however, that the time of regular meetings of committees may be determined
either by resolution of the board of directors or by resolution of the
committee, that special meetings of committees may also be called by resolution
of the board of directors and that notice of special meetings of committees
shall also be given to all alternate members, who shall have the right to
attend all meetings of the committee. The board of directors may adopt rules
for the government of any committee not inconsistent with the provisions of
these by-laws.

 

ARTICLE V

 

OFFICERS

 

5.1          OFFICERS

 

The
officers of the corporation shall be a chief executive officer, a president, a
secretary, and a chief financial officer. The corporation may also have, at the
discretion of the board of directors, one or more vice presidents, one or more
assistant secretaries, one or more assistant treasurers, and any such other
officers as may be appointed in accordance with the provisions of Section 5.3
of these by-laws.  Any number of offices
may be held by the same person.

 

5.2          APPOINTMENT
OF OFFICERS

 

The
officers of the corporation, except such officers as may be appointed in
accordance with the provisions of Sections 5.3 or

 

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5.5 of these by-laws, shall be appointed by the board of directors,
subject to the rights, if any, of an officer under any contract of employment.

 

5.3           SUBORDINATE OFFICERS

 

The board of directors
may appoint, or empower the chief executive officer or the president to
appoint, such other officers and agents as the business of the corporation may
require, each of whom shall hold office for such period, have such authority,
and perform such duties as are provided in these by-laws or as the board of
directors may from time to time determine.

 

5.4           REMOVAL AND RESIGNATION OF OFFICERS

 

Subject to the rights, if
any, of an officer under any contract of employment, any officer may be
removed, either with or without cause, by an affirmative vote of the majority
of the board of directors at any regular or special meeting of the board or,
except in the case of an officer chosen by the board of directors, by any
officer upon whom such power of removal may be conferred by the board of
directors.

 

Any officer may resign at
any time by giving written notice to the corporation. Any resignation shall
take effect at the date of the receipt of that notice or at any later time
specified in that notice; and, unless otherwise specified in that notice, the
acceptance of the resignation shall not be necessary to make it effective. Any
resignation is without prejudice to the rights, if any, of the corporation
under any contract to which the officer is a party.

 

5.5           VACANCIES IN OFFICES

 

Any vacancy occurring in
any office of the corporation shall be filled by the board of directors.

 

5.6           CHIEF EXECUTIVE OFFICER

 

Subject to such
supervisory powers, if any, as may be given by the board of directors to the
chairman of the board, the chief executive officer of the corporation shall,
subject to the control of the board of directors, have general supervision,
direction, and control of the business and the officers of the corporation. He
shall preside at all meetings of the stockholders and, in the absence or
nonexistence of a chairman of the board, at all meetings of the board of
directors. He shall have the general powers and duties of management usually
vested in the office of chief executive officer of a corporation and shall have
such other powers

 

14

 

and duties as may be prescribed by the board of directors or these
by-laws.

 

5.7          PRESIDENT

 

Subject to such
supervisory powers, if any, as may be given by the board of directors to the
chairman of the board or the chief executive officer, the president shall have
general supervision, direction, and control of the business and other officers
of the corporation. He shall have the general powers and duties of management  usuallyvested in the office of president of a corporation and shall have
such other powers and duties as may be prescribed by the board of directors or
these by-laws.

 

5.8                VICE PRESIDENTS

 

In the absence or
disability of the chief executive officer and president, the vice presidents,
if any, in order of their rank as fixed by the board of directors or, if not
ranked, a vice president designated by the board of directors, shall perform
all the duties of the president and when so acting shall have all the powers
of, and be subject to all the restrictions upon, the president. The vice
presidents shall have such other powers and perform such other duties as from
time to time may be prescribed for them respectively by the board of directors,
these by-laws, the president or the chairman of the board.

 

5.9          SECRETARY

 

The secretary shall keep
or cause to be kept, at the principal executive office of the corporation or
such other place as the board of directors may direct, a book of minutes of all
meetings and actions of directors, committees of directors, and stockholders.
The minutes shall show the time and place of each meeting, the names of those
present at directors’ meetings or committee meetings, the number of shares
present or represented at stockholders’ meetings, and the proceedings thereof.

 

The secretary shall keep,
or cause to be kept, at the principal executive office of the corporation or at
the office of the corporation’s transfer agent or registrar, as determined by
resolution of the board of directors, a share register, or a duplicate share
register, showing the names of all stockholders and their addresses, the number
and classes of shares held by each, the number and date of certificates
evidencing such shares, and the number and date of cancellation of every
certificate surrendered for cancellation.

 

The secretary shall give,
or cause to be given, notice of all meetings of the stockholders and of the
board of directors required

 

15

 

to be given by law or by these by-laws. He shall keep the seal of the
corporation, if one be adopted, in safe custody and shall have such other
powers and perform such other duties as may be prescribed by the board of
directors or by these by-laws.

 

5.10        CHIEF FINANCIAL OFFICER

 

The
chief financial officer shall keep and maintain, or cause to be kept and
maintained, adequate and correct books and records of accounts of the
properties and business transactions of the corporation, including accounts of
its assets, liabilities, receipts, disbursements, gains, losses, capital
retained earnings, and shares.
The books of account shall at all reasonable times be open to inspection by any
director.

 

The
chief financial officer shall deposit all moneys and other valuables in the
name and to the credit of the corporation with such depositories as may be
designated by the board of directors. He shall disburse the funds of the
corporation as may be ordered by the board of directors, shall render to the
president and directors, whenever they request it, an account of all his
transactions as chief financial officer and of the financial condition of the
corporation, and shall have other powers and perform such other duties as may
be prescribed by the board of directors or the by-laws.

 

5.11         REPRESENTATION OF SHARES OF OTHER CORPORATIONS

 

The
chairman of the board, the chief executive officer, the president, any vice
president, the chief financial officer, the secretary or assistant secretary of
this corporation, or any other person authorized by the board of directors or
the chief executive officer or the president or a vice president, is authorized
to vote, represent, and exercise on behalf of this corporation all rights
incident to any and all shares of any other corporation or corporations
standing in the name of this corporation. The authority granted herein may be
exercised either by such person directly or by any other person authorized to
do so by proxy or power of attorney duly executed by such person having the
authority.

 

5.12         AUTHORITY AND DUTIES OF OFFICERS

 

In
addition to the foregoing authority and duties, all officers of the corporation
shall respectively have such authority and perform such duties in the
management of the business of the corporation as may be designated from time to
time by the board of directors or the stockholders.

 

16

 

ARTICLE VI

 

INDEMNITY

 

6.1          THIRD PARTY ACTIONS

 

The corporation shall
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending, or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative (other than an action by or in
the right of the corporation) by reason of the fact that he is or was a
director, officer, employee or agent of the corporation, or is or was serving
at the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture trust or other enterprise,
against expenses (including attorneys’ fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation, and, with respect, to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. The termination of any
action, suit or proceeding by judgment, order, settlement, conviction, or upon
a plea of nolo  contendere or its equivalent, shall not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interest of the corporation, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his conduct was unlawful.

 

6.2          ACTIONS BY OR IN THE RIGHT OF THE
CORPORATION

 

The corporation shall
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action or suit by or in the right of
the corporation to procure a judgment in its favor by reason of the fact that
he is or was a director, officer, employee or agent of corporation, or is or
was serving at the request of the corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise against expenses (including attorneys’ fees) actually and reasonably
incurred by him in connection with the defense or settlement of such action or
suit if he acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the corporation and except that no
indemnification shall be made in respect of any claim, issue or matter as to
which such person shall have been adjudged to be liable to the corporation
unless and only to the extent that the Delaware Court of Chancery or the court
in which such action or suit was brought shall determine upon application that,
despite the adjudication of liability but in view

 

17

 

of all the circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the Delaware Court of
Chancery or such other court shall deem proper.

 

6.3          SUCCESSFUL DEFENSE

 

To the extent that a
director, officer, employee or agent of the corporation has been successful on
the merits or otherwise in defense of any action, suit or proceeding referred
to in Sections 6.1 and 6.2, or in defense of any claim, issue or matter
therein, he shall be indemnified against expenses (including attorneys’ fees)
actually and reasonably incurred by him in connection therewith.

 

6.4          DETERMINATION OF CONDUCT

 

Any indemnification under
Sections 6.1 and 6.2 (unless ordered by a court) shall be made by the
corporation only as authorized in the specific case upon a determination that
the indemnification of the director, officer, employee or agent is proper in
the circumstances because he has met the applicable standard of conduct set
forth in Sections 6.1 and 6.2. Such determination shall be made (1) by the
Board of Directors or the Executive Committee by a majority vote of a quorum
consisting of directors who were not parties to such action, suit or proceeding
or (2) or if such quorum is not obtainable or, even if obtainable, a quorum of
disinterested directors so directs, by independent legal counsel in a written
opinion, or (3) by the stockholders.

 

6.5          PAYMENT OF EXPENSES IN ADVANCE

 

Expenses incurred in
defending a civil or criminal action, suit or proceeding shall be paid by the
corporation in advance of the final disposition of such action, suit or
proceeding upon receipt of an undertaking by or on behalf of the director,
officer, employee or agent to repay such amount if it shall ultimately be
determined that he is not entitled to be indemnified by the corporation as
authorized in this Article VI.

 

6.6           INDEMNITY NOT EXCLUSIVE

 

The indemnification and
advancement of expenses provided or granted pursuant to the other subsections
of this section shall not be deemed exclusive of any other rights to which
those seeking indemnification or advancement of expenses may be entitled under
any by-law, agreement, vote of stockholders or disinterested directors or
otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office.

 

18

 

6.7          INSURANCE INDEMNIFICATION

 

The corporation shall
have the power to purchase and maintain insurance on behalf of any person who
is or was a director, officer, employee or agent of the corporation, or is or
was serving at the request of the corporation, as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise against any liability asserted against him and incurred by him in
any such capacity, or arising out of his status as such, whether or not the
corporation would have the power to indemnify him against such liability under
the provisions of this Article VI.

 

6.8          THE CORPORATION

 

For purposes of this
Article VI, references to “the corporation” shall include, in addition to the
resulting corporation, any constituent corporation (including any constituent
of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its
directors, officers, and employees or agents, so that any person who is or was
a director, office, employee or agent of such constituent corporation, or is or
was serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, shall stand in the same position under and subject
to the provisions of this Article VI (including, without limitation the
provisions of Section 6.4) with respect to the resulting or surviving
corporation as he would have with respect to such constituent corporation if
its separate existence had continued.

 

6.9          EMPLOYEE BENEFIT PLANS

 

For purposes of this
Article VI, references to “other enterprises” shall include employee benefit
plans; references to “fines” shall include any excise taxes assessed on a
person with respect to an employee benefit plan; and references to “serving at
the request of the corporation” shall include any service as a director,
officer, employee or agent of the corporation which imposes duties on, or
involves services by, such director, officer, employee, or agent with respect
to an employee benefit plan, its participants, or beneficiaries; and a person
who acted in good faith and in a manner he reasonably believed to be in the
interest of the participants and beneficiaries of an employee benefit plan
shall be deemed to have acted in a manner “not opposed to the best interests of
the corporation” as referred to in this Article VI.

 

19

 

6.10         CONTINUATION OF INDEMNIFICATION
AND ADVANCEMENT OF EXPENSES

 

The indemnification and
advancement of expenses provided by, or granted pursuant to, this Article VI
shall, unless otherwise provided when authorized or ratified, continue as to a
person who has ceased to be a director, officer, employee or agent and shall
inure to the benefit of the heirs, executors and administrators of such a person.

 

ARTICLE VII

 

RECORDS AND REPORTS

 

7.1           MAINTENANCE AND INSPECTION OF RECORDS

 

The corporation shall,
either at its principal executive offices or at such place or places as
designated by the board of directors, keep a record of its stockholders listing
their names and addresses and the number and class of shares held by each
stockholder, a copy of these by-laws as amended to date, accounting books, and
other records.

 

Any stockholder of
record, in person or by attorney or other agent, shall, upon written demand
under oath stating the purpose thereof, have the right during the usual hours
for business to inspect for any proper purpose the corporation’s stock ledger,
a list of its stockholders, and its other books and records and to make copies
or extracts therefrom. A proper purpose shall mean a purpose reasonably related
to such person’s interest as a stockholder. In every instance where an attorney
or other agent is the person who seeks the right to inspection, the demand
under oath shall be accompanied by a power of attorney or such other writing
that authorizes the attorney or other agent to so act on behalf of the
stockholder. The demand under oath shall be directed to the corporation at its
registered office in Delaware or at its principal place of business.

 

7.2           INSPECTION BY DIRECTORS

 

Any director shall have
the right to examine the corporation’s stock ledger, a list of its
stockholders, and its other books and records for a purpose reasonably related
to his position as a director. The Court of Chancery is hereby vested with the
exclusive jurisdiction to determine whether a director is entitled to the
inspection sought. The Court may summarily order the corporation to permit the
director to inspect any and all books and records, the stock ledger, and the
stock list and to make copies or extracts therefrom. The Court may, in its
discretion, prescribe

 

20

 

any limitations or conditions with reference to the inspection, or
award such other and further relief as the Court may deem just and, proper.

 

7.3          ANNUAL STATEMENT TO STOCKHOLDERS

 

The board of directors
shall present at each annual meeting, and at any special meeting of the
stockholders when called for by vote of the stockholders, a full and clear statement
of the business and condition of the corporation.

 

ARTICLE VIII

 

GENERAL MATTERS

 

8.1          CHECKS

 

From time to time, the
board of directors shall determine by resolution which person or persons may
sign or endorse all checks, drafts, other orders for payment of money, notes or
other evidences of indebtedness that are issued in the name of or payable to
the corporation, and only the persons so authorized shall sign or endorse those
instruments.

 

8.2          EXECUTION OF CORPORATE CONTRACTS
AND INSTRUMENTS

 

The board of directors,
except as otherwise provided in these by-laws, may authorize any officer or
officers, or agent or agents, to enter into any contract or execute any
instrument in the name of and on behalf of the corporation; such authority may
be general or confined to specific instances. Unless so authorized or ratified
by the board of directors or within the agency power of an officer, no officer,
agent or employee shall have any power or authority to bind the corporation by
any contract or engagement or to pledge its credit or to render it liable for
any purpose or for any amount.

 

8.3          STOCK CERTIFICATES; PARTLY PAID
SHARES

 

The shares of a
corporation shall be represented by certificates, provided that the board of
directors of the corporation may provide by resolution or resolutions that some
or all of any or all classes or series of its stock shall be uncertificated
shares. Any such resolution shall not apply to shares represented by a
certificate until such certificate is surrendered to the corporation.
Notwithstanding the adoption of such a resolution by the board of directors,
every holder of stock represented by certificates and upon request every holder
of uncertificated shares shall be entitled to have a certificate signed by, or
in the name of the corporation by the chairman or vice-chairman of the board of

 

21

 

directors, or the chief executive officer or the president or
vice-president, and by the chief financial officer  or an assistant treasurer, or the secretary or an assistant
secretary of such corporation representing the number of shares registered in
certificate form. Any or all of the signatures on the certificate, may be a
facsimile. In case any officer, transfer agent or registrar who has signed or
whose facsimile signature has been placed upon a certificate has ceased to be
such officer, transfer agent or registrar before such certificate is issued, it
may be issued by the corporation with the same effect as if he were such
officer, transfer agent or registrar at the date of issue.

 

The corporation may issue
the whole or any part of its shares as partly paid and subject to call for the
remainder of the consideration to be paid therefor. Upon the face or back of
each stock certificate issued to represent any such partly paid shares, upon
the books and records of the corporation in the case of uncertificated partly
paid shares, the total amount of the consideration to be paid therefor and the
amount paid thereon shall be stated. Upon the declaration of any dividend on
fully paid shares, the corporation shall declare a dividend upon partly paid
shares of the same class, but only upon the basis of the percentage of the
consideration actually paid thereon.

 

8.4           SPECIAL DESIGNATION ON CERTIFICATES

 

If the corporation is
authorized to issue more than one class of stock or more than one series of any
class, then the powers, the designations, the preferences, and the relative,
participating, optional or other special rights of each class of stock or series
thereof and the qualifications, limitations or restrictions of such preferences
and/or rights shall be set forth in full or summarized on the face or back of
the certificate that the corporation shall issue to represent such class or
series of stock; provided, however, that, except as otherwise provided in
Section 202 of the General Corporation Law of Delaware, in lieu of the
foregoing requirements there may be set forth on the face or back of the
certificate that the corporation shall issue to represent such class or series
of stock a statement that the corporation will furnish without charge to each
stockholder who so requests the powers, the designations, the preferences, and
the relative, participating, optional or other special rights of each class of
stock or series thereof and the qualifications, limitations or restrictions of
such preferences and/or rights.

 

8.5           LOST CERTIFICATES

 

Except as provided in
this Section 8.5, no new certificates for shares shall be issued to replace a
previously issued certificate unless the latter is surrendered to the
corporation and

 

22

 

cancelled at the same time. The corporation may issue a new certificate
of stock or uncertificated shares in the place of any certificate theretofore
issued by it, alleged to have been lost, stolen or destroyed, and the
corporation may require the owner of the lost, stolen or destroyed certificate,
or his legal representative, to give the corporation a bond sufficient to
indemnify it against any claim that may be made against it on account of the
alleged loss, theft or destruction of any such certificate or the issuance of
such new certificate or uncertificated shares.

 

8.6          CONSTRUCTION; DEFINITIONS

 

Unless the context
requires otherwise, the general provisions, rules of construction, and
definitions in the Delaware General Corporation Law shall govern the
construction of these by-laws. Without limiting the generality of this
provision, the singular number includes the plural, the plural number includes
the singular, and the term “person” includes both a corporation and a natural
person.

 

8.7          DIVIDENDS

 

The directors of the
corporation, subject to any restrictions contained in (i) the General
Corporation Law of Delaware or (ii) the certificate of incorporation, may
declare and pay dividends upon the shares of its capital stock. Dividends may
be paid in cash, in property, or in shares of the corporation’s capital stock.

 

The directors of the
corporation may set apart out of any of the funds of the corporation available
for dividends a reserve or reserves for any proper purpose and may abolish any
such reserve. Such purposes shall include but not be limited to equalizing
dividends, repairing or maintaining any property of the corporation, and meeting
contingencies.

 

8.8          FISCAL YEAR

 

The fiscal year of the
corporation shall be fixed by resolution of the board of directors and may be changed by the board of
directors.

 

8. 9          SEAL

 

The corporation may adopt
a corporate seal, which may be altered at pleasure, and may use the same by
causing it or a facsimile thereof, to be impressed or affixed or in any other
manner reproduced.

 

23

 

8.10         TRANSFER OF STOCK

 

Upon surrender to the
corporation or the transfer agent of the corporation of a certificate for
shares duly endorsed or accompanied by proper evidence of succession,
assignation  or  authority to transfer, it shall be the
duty of the corporation to issue a new certificate to the person entitled
thereto, cancel the old certificate, and record the transaction in  its books.

 

8.11         STOCK TRANSFER AGREEMENTS

 

The corporation shall
have power to enter into and perform any agreement with any number of
stockholders of any one or more classes of stock of the corporation to restrict
the transfer of shares of stock of the corporation of any one or more classes
owned by such stockholders in any manner notprohibited by the General Corporation Law of Delaware.

 

8.12         REGISTERED STOCKHOLDERS

 

The corporation shall be
entitled to recognize the exclusive right of a person registered on its books
as the owner of shares to receive dividends and to vote as such owner, shall be
entitled to hold liable for calls and assessments the person registered on its
books as the owner of shares, and shall not be bound to recognize any equitable
or other claim to or interest in such share or shares on the part of another
person, whether or not it shall have express or other notice thereof, except as
otherwise provided by the laws of Delaware.

 

ARTICLE IX

 

AMENDMENTS

 

The by-laws of the
corporation may be adopted, amended or repealed by the stockholders entitled to
vote; provided, however, that the corporation may, in its certificate of
incorporation, confer the power to adopt, amend or repeal by-laws upon the
directors. The fact that such power has
been  so conferred upon the
directors shall not divest the stockholders of the power, nor limit their power
to adopt, amend or repeal by-laws.

 

24

 

CERTIFICATE OF
ADOPTION OF BY-LAWS

 

OF

 

COLLAGEN
INTERNATIONAL, INC.

 

Adoption by Incorporator

 

The undersigned person
appointed in the Certificate of Incor poration to act as the Incorporator of
Collagen International, Inc. hereby adopts the foregoing By-laws, comprising
twenty-four (24) pages, as the By-Laws of the corporation.

 

Executed effective
as of the 16th day of October, 1990.

 

	
    

  	
  /s/ Robert P. Ruscher

  
	
   

  	
  Robert P. Ruscher, Incorporator

  

 

25

 

Annex 3

 

 

ACTION
BY BOARD OF DIRECTORS

 

OF

 

COLLAGEN
AESTHETICS INTERNATIONAL, INC.

 

BY
UNANIMOUS WRITTEN CONSENT

 

The undersigned, being
all of the Directors of Collagen Aesthetics International, Inc., a Delaware
corporation (the “Company”), and acting pursuant to Section 141 of the
Delaware General Corporation Law, hereby consent in writing to the adoption of
the following actions in lieu of a special meeting of the Board of Directors:

 

GUARANTEE
AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED
Corporation (“Inamed”)  intends to enter into that certain Credit
Agreement dated as of February 1, 2000 (the “Credit Agreement”), by and
among Inamed, the Lenders, Bear Stearns Corporate Lending Inc., as Syndication
Agent (in such capacity, the “Syndication Agent"), Bear, Stearns
& Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent;

 

WHEREAS, pursuant to the
terms of the Credit Agreement, the Company, as a subsidiary of Inamed, is
required to guaranty all of Inamed’s obligations under the Credit Agreement
(the “Obligations”, as defined under the Credit Agreement), by entering
into that certain Guarantee and Collateral Agreement dated of even date with
the Credit Agreement (the “Guarantee and Collateral Agreement”), a copy
of which has been presented to the Board;

 

WHEREAS, pursuant to the
terms and conditions of the Credit Agreement, the Company, as a subsidiary of
Inamed, is required to secure payment and performance of the Obligations, also
by entering into that same Guarantee and Collateral Agreement (as defined
above), whereby the Company would grant to Administrative Agent, for the
benefit of the Administrative Agent and the Lenders, a perfected, first
priority Lien on all of its right, title and interest in all of its personal property,
including but not limited to all capital stock of its domestic

 

 

subsidiaries, 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licences, material
property, etc.

 

WHEREAS, the Board of
Directors of the Company has determined that in order to give effect to the
Credit Agreement, it is advisable and in the best interests of the Company that
the Company enter into the Guarantee and Collateral Agreement and each of the
transactions contemplated thereby;

 

NOW, THEREFORE, BE IT
RESOLVED, that the Board of Directors deems it advisable and in the best
interests of the Company to enter into the Guarantee and Collateral Agreement
and any other documents contemplated thereby and such documents hereby are
authorized and approved, with such changes thereto as the Chairman, the
President, any Vice President or the Secretary of the Company (the “proper
officers”) may approve, such approval to be conclusively evidenced by such
officer’s or officers’ execution and delivery thereof;

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to enter into
the Guarantee and Collateral Agreement, substantially on the terms and
conditions as presented and described to the Board, with such changes thereto
as the proper officers may approve, such approval to be conclusively evidenced
by such officer’s or officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized
and directed to enter into such other agreements, documents, promissory notes,
and instruments with respect to any of the foregoing, in such form and on such
terms and conditions as may be agreed to by the proper officers of the Company,
Administrative Agent and the Lenders, and to take such other actions with
respect to the foregoing as may be required by Administrative Agent and the
Lenders; and that the proper officers of the Company be, and each of them
hereby is, authorized, directed and empowered, in the name and on behalf of the
Company, to execute and deliver such other agreements, documents, promissory
notes, deeds of trust, mortgages and other instruments and to perform all other
acts as such officers shall approve in connection with any of the above, the
execution of such agreements, documents, promissory notes and other instruments
or the taking of any such actions to be conclusive evidence of such approval.

 

2

 

GENERAL
AUTHORIZATIONS

 

RESOLVED, that the
officers of the Company be, and each of them hereby is, authorized, empowered
and directed, in the name and on behalf of the Company, to do or cause to be
done all such other acts or things, and to execute and deliver, or cause to be
executed and delivered, all such other documents, instruments, agreements,
notes, undertakings, guarantees and certificates of any kind and nature
whatsoever, as such officer or officers may deem necessary or appropriate to
effectuate or carry out the purposes and intent of the foregoing resolutions;
all such other actions to be performed in such manner, and all such other
documents, instruments, agreements, notes, undertakings, guarantees and
certificates to be executed and delivered in such form, as the officer or
officers performing or executing the same shall approve, such officer’s or
officers’ approval thereof to be conclusively evidenced by the performance of
any such other action or the execution and delivery of any such other
documents, instruments, agreements, notes, undertakings and certificates; and

 

RESOLVED FURTHER, that
all acts and things previously done by any of the officers of the Company, on
or prior to the date hereof, in the name and on behalf of the Company, in
connection with the transactions contemplated by the foregoing resolutions, are
in all respects ratified, approved, confirmed and adopted as the acts and deeds
by and on behalf of the Company.

 

***

 

3

 

This Unanimous Written Consent may be executed in one
or more counterparts, each of which shall be considered as an original. The
Secretary of the Company shall file this Unanimous Written Consent in the
minute book of the Company and it shall become part of the records of the
Company.

 

	
  Dated: February 1, 2000

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  /s/ David E. Bamberger

  	 

	
   

  	
  David E. Bamberger

  	 

	
   

  	
   

  	 

	
   

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
  Ilan K. Reich

  
				

 

4

 

Annex 4

 

 

State of Delaware

 

Office of the
Secretary of State

_________________________

 

I, EDWARD J. FREEL, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY THAT “COLLAGEN AESTHETICS INTERNATIONAL, INC.” IS
DULY INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN GOOD
STANDING AND HAS A LEGAL CORPORATE EXISTENCE NOT HAVING BEEN CANCELLED OR
DISSOLVED SO FAR AS THE RECORDS OF THIS OFFICE SHOW AND IS DULY AUTHORIZED TO
TRANSACT BUSINESS.

 

THE FOLLOWING DOCUMENTS HAVE BEEN FILED:

 

CERTIFICATE OF INCORPORATION, FILED THE SIXTEENTH DAY
OF OCTOBER, A.D. 1990, AT 10 O’CLOCK A.M.

 

CERTIFICATE OF AMENDMENT, CHANGING ITS NAME FROM
“COLLAGEN INTERNATIONAL, INC.” TO “COLLAGEN AESTHETICS INTERNATIONAL, INC.”,
FILED THE SIXTEENTH DAY OF OCTOBER, A.D. 1998, AT 4 O’CLOCK P.M.

 

AND I DO HEREBY FURTHER CERTIFY THAT THE AFORESAID
CERTIFICATES ARE THE ONLY CERTIFICATES ON RECORD OF THE AFORESAID CORPORATION.

 

AND I DO HEREBY FURTHER CERTIFY THAT THE ANNUAL
REPORTS HAVE BEEN FILED TO DATE.

 

AND I DO HEREBY FURTHER CERTIFY THAT THE FRANCHISE
TAXES

 

	
   

  	
  /s/ Edward J. Freel

  
	
   

  	
  Edward J. Freel, Secretary of
  State

  
	
   

  	
  [SEAL]

  	
   

  
	
  2243951 8310

  	
  AUTHENTICATION:

  	
  0217820

  
	
  001039261

  	
   

  	
  DATE:

  	
  01-26-00

  
					

 

1

 

State of Delaware

 

Office of the
Secretary of State

 

 

HAVE BEEN PAID TO DATE.

 

	
   

  	
  /s/ Edward J. Freel

  
	
   

  	
  Edward J. Freel, Secretary of
  State

  
	
   

  	
  [SEAL]

  	
   

  
	
  2243951 8310

  	
  AUTHENTICATION:

  	
  0217820

  
	
  001039261

  	
   

  	
  DATE:

  	
  01-26-00

  
					

 

2

CUI CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made to the Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Inamed
Corporation (the “Borrower”), the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co. Inc., as sole lead arranger and sole book manager (the
“Arranger”) and the Administrative Agent. Capitalized terms used herein
and not otherwise defined shall have the meanings assigned in the Credit
Agreement. This certificate is being delivered pursuant to Section 5.1(g) of
the Credit Agreement.

 

I, David E. Bamberger, hereby certify that I am the
Secretary of CUI CORPORATION (the “Company”), and as such have access to the
Company’s corporate records and am familiar with the matters therein contained
and herein certified, and that:

 

1.       Attached hereto as Annex I are true, correct and complete
copies of (i) the Articles of Incorporation of CUI ACQUISITION CORPORATION, as
filed with the Secretary of State of the State of California on March 8, 1989,
(ii) the Agreement of Merger Between Cox-Uphoff Corp. and CUI ACQUISITION
CORPORATION, as filed with the Secretary of State of the State of California on
May 25, 1989 and (iii) the Certificate of Amendment of Articles of
Incorporation of CUI ACQUISITION CORPORATION, changing its name to “CUI CORPORATION,” as filed with the Secretary of State of
the State of California on May 25, 1989.

 

2.       Attached hereto as Annex 2 is a true, correct and complete
copy of the By-laws of the Company as presently in effect on and as of the date
hereof, which By-laws are in full force and effect in said form without
modification, amendment, rescission or repeal in any respect.

 

3.       Attached hereto as Annex 3 is a true, correct and complete
copy of resolutions adopted by unanimous written consent in lieu of a meeting
in accordance with applicable laws and the Articles of Incorporation and
By-laws of the Company, and such resolutions (i) were duly adopted by the Board
of Directors

 

 

of the Company and are in full force and effect on and as of the date
hereof, not having been in any way amended, altered or repealed, and (ii)
constitute the only resolutions of the Board of Directors of the Company
relating to the subject matter of the Credit Agreement, the other Loan
Documents and the transactions contemplated thereby.

 

4.       Attached hereto as Annex 4 is (i) a true, correct and complete
copy of a certificate from the Office of the Secretary of State of the State of
California indicating that the Company is authorized to exercise all its
corporate powers, rights and privileges and is in good legal standing and (ii)
a certificate from the Franchise Tax Board of the State of California
indicating that the Company is in good standing [and has an unpaid liability of
$397.00 for income year ended 2/98].

 

5.       There are no consents, licenses or approvals required in
connection with the execution, delivery and performance by the Company or the
validity and enforceability against the Company of the Loan Documents to which
it is a party.

 

6.       The following persons are duly qualified and acting officers
of the Company, each of whom is authorized to sign any of the Loan Documents to
which the Company is a party, and each of whom is duly elected to the office
set forth opposite his respective name; the signature appearing opposite the
name of each such officer is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  PRESIDENT

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/ David E. Bamberger

  

 

IN WITNESS WHEREOF, the undersigned has executed this
Secretary’s Certificate as of the 1 day of February 2000.

 

	
   

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E.
  Bamberger

  
	
   

  	
   Secretary

  

 

2

 

I, IIan K. Reich, President of the Company, hereby
certify that David E. Bamberger is the duly elected Secretary of the Company
and that the signature appearing above is his genuine signature.

 

	
   

  	
  /s/ IIan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  President

  

 

3

 

Annex I

 

CUI CORPORATION

 

 

[LOGO OF STATE OF CALIFORNIA]

 

State of
California

 

SECRETARY
OF STATE 

 

I, BILL
JONES, Secretary of State of the State of California, hereby certify:

 

That on the 8th day of March, 1989, CUI
CORPORATION

 

became
incorporated under the laws of the State of California by filing its Articles
of Incorporation in this office.

 

That
all documents amendatory and/or supplementary thereto (including Agreements of
Merger, Restated Articles of Incorporation and Certificates of Determination of
Preferences, if any), recorded in this office for said corporation are as
follows:

 

	
  DOCUMENT

  	
   

  	
   

  	
   

  	
  FILED

  	
   

  
	
   

  AGREEMENT OF MERGER 

  	
   

  	
   

  May 25, 1989

  
	
  Merged in: COX-UPHOFF
  CORP., a California corporation.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE OF AMENDMENT

  	
   

  	
  May 25, 1989

  
	
  Name changed from:   CUI ACQUISITION CORPORATION

  	
   

  	
   

  

 

 

	
  [SEAL]

  	
  IN WITNESS
  WHEREOF, I execute this certificate and affix the Great Seal
  of the State of California this 24th day of January, 2000.

  
	
   

  	
   

  
	
   

  	
  /s/ Bill Jones

  
	
   

  	
  Secretary
  of State

  

 

 

[LOGO OF STATE OF CALIFORNIA]

 

State of
California

 

[SEAL]

 

SECRETARY
OF STATE

 

I, BILL
JONES, Secretary of State of the State of California, hereby
certify:

 

That the attached
transcript of 4 page(s) was prepared by and in this office from the record on
file, of which it purports to be a copy, and that it is full, true and correct.

 

	
   

  	
  IN WITNESS
  WHEREOF, I execute this certificate and affix the Great
  Seal of the State of California this day of 

  
	
   

  	
   

  
	
   

  	
  Jan 24 2000

  
	
   

  	
   

  
	
  [SEAL]

  	
  /s/ Bill Jones

  
	
   

  	
  Secretary of State

  

 

 

 

AGREEMENT OF MERGER

BETWEEN

COX-UPHOFF CORP.

AND

CUI ACQUISITION
CORPORATION

 

This Agreement of Merger (the “Agreement”) is entered
into between CUI ACQUISITION CORPORATION, a California corporation (herein, the
“Surviving Corporation”), and COX-UPHOFF CORP., a California corporation
(herein, the “Merging Corporation”).

 

1.  The Merging
Corporation shall be merged into the Surviving Corporation.

 

2.  Each
outstanding share of the Merging Corporation shall be converted to 4.5 shares
of Inamed Corporation, a Florida corporation and the parent of the Surviving
Corporation.

 

3.  The
outstanding shares of the Surviving Corporation shall remain outstanding and
are not affected by the merger.

 

4.  The Merging
Corporation shall, from time to time, as and when requested by the Surviving
Corporation, execute and deliver all such documents and instruments and take
all such action necessary or desirable to evidence or carry out this merger.

 

5.  This
Agreement has been executed pursuant to the Acquisition Agreement dated May 15,
1989.

 

6.  The effect
of the merger and the effective date of the merger are as prescribed by law.

 

In Witness Whereof, the parties have executed this
Agreement this 24th day of May, 1989.

 

	
   

  	
  COX-UPHOFF CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  CUI ACQUISITIONCORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Secretary

  

 

 

 

ARTICLES OF INCORPORATION

OF

CUI ACQUISITION
CORPORATION

a California Corporation

 

ARTICLE I

 

The name of this corporation is CUI ACQUISITION
CORPORATION.

 

ARTICLE II

 

The purpose of the corporation is to engage in any
lawful act or activity for which a corporation may be organized under the
General Corporation Law of California other than the banking business, the trust
company business, or the practice of a profession permitted to be incorporated
by the California Corporations Code.

 

ARTICLE III

 

The name and address in this state of the
corporation’s initial agent for service of process is:

 

Michael D. Farney

1035 Cindy Lane

Carpinteria, CA 93013

 

ARTICLE IV

 

The total number of shares which the corporation is
authorized to issue is one hundred thousand (100,000).

 

1

 

ARTICLE V

 

The liability of the directors of the corporation for
monetary damages shall be eliminated to the fullest extent permissible under
California law.

 

ARTICLE VI

 

The corporation is authorized to provide
indemnification of agents (as defined in Section 317 of the California
Corporations Code) through bylaw provisions, agreements with agents, vote of
shareholders or disinterested directors or otherwise, in excess of the
indemnification otherwise permitted by Section 317 of the California
Corporations Code, subject only to the applicable limits set forth in Section
204 of the California Corporations Code with respect to actions for breach of
duty to the corporation and its shareholders.

 

	
  Dated:   3-7-89 
  

  	
   

  
	
   

  	
  /s/ J. Robert Andrews

  
	
   

  	
  J. Robert Andrews, Incorporator

  

 

2

 

CERTIFICATE OF APPROVAL

 

OF

 

AGREEMENT OF MERGER

 

CLARK L. POOL and JAMES E. COX, JR. certify that:

 

1.  They are the President and the Secretary, respectively, of
COX-UPHOFF CORP., a California corporation (the “Corporation”).

 

2.  The Agreement of Merger in the form attached was duly approved by
the Board of Directors and Shareholders of the Corporation.

 

3.  The Shareholder approval was by the holders of one hundred percent
(100%) of the outstanding shares of the Corporation.

 

4.   There is only one (1) class of shares and the number of shares
outstanding is 194,144.

 

We further declare, under penalty of perjury under the
laws of the State of California that the matters set forth in this Certificate
are true and correct of our own knowledge.

 

	
  MAY 24 1989

  	
   

  
	
   

  	
  /s/ Clark L. Pool

  
	
   

  	
  CLARK L. POOL, President

  
	
   

  	
   

  
	
   

  	
  /s/ James E. Cox, Jr.

  
	
   

  	
  JAMES E. COX, JR., Secretary

  

 

 

CERTIFICATE OF APPROVAL

 

OF

 

AGREEMENT OF MERGER

 

DONALD K. McGHAN and
MICHAEL D. FARNEY certify that:

 

1.   They are the President and the Secretary, respectively, of CUI
ACQUISITION CORPORATION, a California corporation (the “Corporation”).

 

2.   The Agreement of Merger in the form attached hereto was duly
approved by the Board of Directors and Shareholders of the Corporation.

 

3.   The Shareholder approval was by the holders of one hundred percent
(100%) of the outstanding shares of the Corporation. No vote of the
shareholders of Inamed Corporation the parent of the corporation is required.

 

4.   There is only one (1) class of shares and the number of shares
outstanding is one hundred thousand (100,000).

 

We further declare, under
penalty of perjury under the laws of the State of California that the matters
set forth in this Certificate are true and correct of our own knowledge.

 

	
  MAY 24 1989

  	
   

  
	
   

  	
  /s/ Donald K. McGhan

  
	
   

  	
  DONALD K. McGHAN, President

  
	
   

  	
   

  
	
   

  	
  /s/ Michael D. Farney

  
	
   

  	
  MICHAEL D. FARNEY, Secretary

  

 

 

 

CERTIFICATE OF AMENDMENT

 

OF

 

ARTICLES OF INCORPORATION

 

DONALD K. McGHAN and MICHAEL D. FARNEY certify that:

 

1.   They are the President and the Secretary, respectively, of CUI
ACQUISITION CORPORATION, a California Corporation.

 

2.   Article I of the Articles of Incorporation of this corporation is
amended to read as follows:

 

“The name of this corporation is CUI CORPORATION.”

 

3.   The foregoing Amendment of Articles of Incorporation has been duly
approved by the Board of Directors.

 

4.   The foregoing Amendment of Articles of Incorporation has been duly
approved by the required vote of shareholders in accordance with Section 902 of
the Corporations Code. The total number of outstanding shares of the
Corporation is one hundred thousand (100,000). The number of Shares voting in
favor of the Amendment equaled or exceeded the vote required. The percentage
vote required was more than 50%.

 

We further declare, under penalty of perjury, under
the laws of the State of California that the matters set forth in this
Certificate are true and correct of our own knowledge.

 

	
  Dated:   May
  24th, 1989

  	
   

  
	
   

  	
  /s/ Donald K. McGhan

  
	
   

  	
  DONALD K. McGHAN, President

  
	
   

  	
   

  
	
   

  	
  /s/ Michael D. Farney

  
	
   

  	
  MICHAEL D. FARNEY, Secretary

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  

 

 

Annex 2

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I

  	
   

  
	
   

  	
  OFFICES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 1.

  	
  Principal Offices 

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.

  	
  Other Offices

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
  MEETINGS OF SHAREHOLDERS

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 1.

  	
  Place of Meetings

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.

  	
  Annual Meeting

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 3.

  	
  Special meeting 

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.

  	
  Notice
  of Shareholders’ Meetings

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  5.

  	
  Manner
  of Giving Notice; Affidavit of Notice

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.

  	
  Quorum

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  7.

  	
  Adjourned
  Meeting; Notice

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  8.

  	
  Voting

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  9.

  	
  Waiver
  of Notice or Consent by Absent Shareholders

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  10.

  	
  Shareholder
  Action by Written Consent Without a Meeting

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  11.

  	
  Record
  Date for Shareholder Notice, Voting, and Giving Consents,

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 12.

  	
  Proxies

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 13.

  	
  Inspectors of
  Election

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
  DIRECTORS

  
	
   

  	
   

  
	
   

  	
  Section
  1.

  	
  Powers

  

 

i

 

	
   

  	
  Section
  2.

  	
  Number
  and Qualification of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  3.

  	
  Election
  and Term of Office of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 4.

  	
  Vacancies

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  5.

  	
  Place
  of Meetings and Meetings by Telephone

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 6.

  	
  Annual Meeting

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 7.

  	
  Other Regular
  Meetings

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 8.

  	
  Special Meetings

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  9.

  	
  Quorum

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 10.

  	
  Waiver of Notice

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 11.

  	
  Adjournment

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 12.

  	
  Notice of
  Adjournment

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 13.

  	
  Action Without
  Meeting

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  14.

  	
  Fees and
  Compensation of Directors

  
	
   

  	
   

  
	
  ARTICLE
  IV

  
	
   

  	
  COMMITTEES

  
	
   

  	
   

  	
   

  
	
   

  	
  Section l.

  	
  Committees of
  Directors

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.

  	
  Meetings
  and Action of Committees

  
	
   

  	
   

  
	
  ARTICLE
  V

  
	
   

  	
  OFFICERS

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 1.

  	
  Officers

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.

  	
  Election of Officers

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 3.

  	
   Subordinate Officers

  

 

ii

 

	
   

  	
  Section
  4.

  	
  Removal
  and Resignation of Officers

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 5.

  	
  Vacancies in Offices

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 6.

  	
  Chairman of the
  Board

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 7.

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 8.

  	
  Vice Presidents

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 9.

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 10.

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
  INDEMNIFICATION OF
  DIRECTORS, OFFICERS, EMPLOYEES AND OTHER AGENTS

  
	
   

  	
   

  
	
   

  	
  Section 1.

  	
  Agents, Proceedings and Expenses

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.

  	
  Actions
  Other than by the Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 3.

  	
  Actions by the
  Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 4.

  	
  Successful
  Defense by Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 5.

  	
  Required Approval

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 6.

  	
  Advance of Expenses

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 7.

  	
  Other Contractual
  Rights

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 8.

  	
  Limitations

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 9.

  	
  Insurance

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  10.

  	
  Fiduciaries
  of Corporate Employee Benefit Plan

  

 

iii

 

	
  

  ARTICLE VII

  
	
   

  	
  RECORDS AND REPORTS

  
	
   

  	
   

  
	
   

  	
  Section
  1.

  	
  Maintenance
  and Inspection of Share Register

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.

  	
  Maintenance
  and Inspection of Bylaws

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  3.

  	
  Maintenance
  and Inspection of Other Corporate Records

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 4.

  	
  Inspection by
  Directors

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 5.

  	
  Annual Report
  to Shareholders

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 6.

  	
  Financial Statements

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  7.

  	
  Annual
  Statement of General Information

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
  GENERAL CORPORATE MATTERS

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  1.

  	
  Record
  Date for Purposes Other than Notice and Voting

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.

  	
  Checks, Drafts, Evidences of
  Indebtedness

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  3.

  	
  Corporate
  Contracts and Instruments; How Executed

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 4.

  	
  Certificates for
  Shares

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 5.

  	
  Lost Certificates

  
	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.

  	
  Representation
  of Shares of Other Corporations

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 7.

  	
  Construction
  and Definitions

  
					

 

iv

 

	
  ARTICLE IX

  
	
   

  	
  AMENDMENTS

  
	
   

  	
   

  
	
   

  	
  Section 1.

  	
  Amendment by
  Shareholders

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.

  	
  Amendment by
  Directors

  
	
   

  	
   

  	
   

  

 

CERTIFICATE

 

v

 

BYLAWS

 

OF

 

CUI ACQUISITION
CORPORATION

 

ARTICLE I

 

OFFICES

 

Section 1. Principal Offices.
The board of directors shall fix the location of the principal executive office
of the corporation at any place within or outside the State of California. If
the principal executive office is located outside this state, and the
corporation has one or more business offices in this state, the board of
directors shall fix and designate a principal business office in the State of
California.

 

Section 2. Other Offices. The board of directors may at any
time establish branch or subordinate offices at any place or places where the
corporation is qualified to do business.

 

ARTICLE II

MEETINGS OF SHAREHOLDERS

 

Section 1.  Place
of Meetings. Meetings of shareholders shall be held at
any place within or outside the State of California designated by the board of
directors. In the absence of any such designation, shareholders’ meetings shall
be held at the principal executive office of the corporation.

 

Section 2.  Annual
Meeting. The annual meeting of shareholders shall be held
each year on a date and at a time designated by the board of directors.  The initial annual meeting must be held
within fifteen (15) months after the organization of the corporation, and each
succeeding annual meeting must be held within fifteen (15) months after the
preceding meeting. At each annual meeting directors shall be elected, and any
other proper business may be transacted.

 

Section 3.  Special Meeting.

 

(a)  A special
meeting of the shareholders may be called at any time by the board of
directors, or by the chairman of the board, or by the president, or by one or
more shareholders holding shares in the aggregate entitled to cast not less
than ten percent (10%) of the votes at that meeting.

 

1

 

(b)  If a
special meeting is called by any person or persons other than the board of
directors, the request shall be in writing, specifying the time of such meeting
and the general nature of the business proposed to be transacted, and shall be
delivered personally or sent by registered mail or by telegraphic or other
facsimile transmission to the chairman of the board, any vice president, or the
secretary of the corporation. The officer receiving the request shall cause
notice to be promptly given to the shareholders entitled to vote, in accordance
with the provisions of Sections 4 and 5 of this Article II, that a meeting will
be held at the time requested by the person or persons calling the meeting, not
less than thirty-five (35) nor more than sixty (60) days after the receipt of
the request. If the notice is not given within twenty (20) days after receipt
of the request, the person or persons requesting the meeting may give the
notice.  Nothing contained in this paragraph of this
Section 3 shall be construed as limiting, fixing or affecting the time when a
meeting of shareholders called by action of the board of directors may be held.

 

Section 4.  Notice
of Shareholders’ Meetings.

 

(a)  All
notices of meetings of shareholders shall be sent or otherwise given in
accordance with Section 5 of this Article II not less than ten (10) nor more than sixty (60) days before the date of the
meeting. The notice shall specify the place, date and hour of the meeting and
(i) in the case of a special meeting, the general nature of the business to be
transacted, or (ii) in the case of the annual meeting, those matters which the
board of directors, at the time of giving the notice, intends to present for
action by the shareholders. The notice of any meeting at which directors are to
be elected shall include the name of any nominee or nominees whom, at the time
of the notice, management intends
to present for election.

 

(b)  If action
is proposed to be taken at any meeting for approval of (i) a contract or
transaction in which a director has a direct or indirect financial
interest, pursuant to Section 310 of the Corporations Code of
California, (ii) an amendment of the articles of incorporation, pursuant to Section 902
of that Code, (iii) a reorganization of the corporation, pursuant to Section
1201 of that Code, (iv) a voluntary dissolution of the corporation, pursuant to
Section 1900 of that Code, or (v) a distribution in dissolution other than in
accordance with the rights of outstanding preferred shares, pursuant to Section
2007 of that Code, the notice shall also state the general nature of that
proposal.

 

2

 

Section
5.  Manner of
Giving Notice; Affidavit of Notice.

 

(a)  Notice of
any meeting of shareholders shall be given either personally or by first-class
mail or telegraphic or other written communication, charges prepaid, addressed
to the shareholder at the address of that shareholder appearing on the books of
the corporation or given by the shareholder to the corporation for the purpose
of notice. If no such address appears on the corporation’s books or is given,
notice shall be deemed to have been given if sent to that shareholder by first-class
mail or telegraphic or other written communication to the corporation’s
principal executive office, or if published at least once in a newspaper of
general circulation in the county where that office is located. Notice shall be
deemed to have been given at the time when delivered personally or deposited in
the mail or sent by telegram or other means of written communication.

 

(b)  If any
notice addressed to a shareholder at the address of that shareholder appearing
on the books of the corporation is returned to the corporation by the United
States Postal Service marked to indicate that the United States Postal Service
is unable to deliver the notice to the shareholder at that address, all future
notices or reports shall be deemed to have been duly given without further
mailing if these shall be available to the shareholder on written demand of the
shareholder at the principal executive office of the corporation for a period
of one (1) year from the date of the giving of the notice.

 

(c)  An
affidavit of the mailing or other means of giving any notice of any
shareholders’ meeting shall be executed by the secretary, assistant secretary,
or any transfer agent of the corporation giving the notice, and shall be filed
and maintained in the minute book of the corporation.

 

Section 6.  Quorum. The
presence in person or by proxy of the holders of a majority of the shares
entitled to vote at any meeting of shareholders shall constitute a quorum for
the transaction of business. The shareholders present at a duly called or held
meeting at which a quorum is present may continue to do business until
adjournment, notwithstanding the withdrawal of enough shareholders to leave
less than a quorum, if any action taken (other than adjournment) is approved by
at least a majority of the shares required to constitute a quorum.

 

Section
7.  Adjourned
Meeting; Notice.

 

(a)  Any
shareholders’ meeting, annual or special, whether or not a quorum is present,
may be adjourned from time to time by the vote of the majority of the shares
represented at that meeting, either in person or by proxy, but in the absence
of a 

 

3

quorum, no other business may be transacted at that meeting, except as
provided in Section 6 of this Article II.

 

(b)  When any
meeting of shareholders, either annual or special, is adjourned to another time
or place, notice need not be given of the adjourned meeting if the time and
place are announced at a meeting at which the adjournment is taken, unless a
new record date for the adjourned meeting is fixed, or unless the adjournment
is for more than forty-five (45) days from the date set for the original
meeting, in which case the board of directors shall set a new record date.
Notice of any such adjourned meeting shall be given to each shareholder of
record entitled to vote at the adjourned meeting in accordance with the
provisions of Sections 4 and 5 of this Article II. At any adjourned meeting the
corporation may transact any business which might have been transacted at the
original meeting.

 

Section
8.  Voting.

 

(a)  The
shareholders entitled to vote at any meeting of shareholders shall be
determined in accordance with the provisions of Section 11 of this Article II,
subject to the provisions of Sections 702 to 704, inclusive, of the
Corporations Code of California (relating to voting shares held by a fiduciary,
in the name of a corporation, or in joint ownership). The shareholders’ vote
may be by voice vote or by ballot; provided, however, that any election for
directors must be by ballot if demanded by any shareholder before the voting
has begun. On any matter other than elections of directors, any shareholder may
vote part of the shares in favor of the proposal and refrain from voting the
remaining shares or vote them against the proposal, but, if the shareholder
fails to specify the number of shares which the shareholder is voting
affirmatively, it will be conclusively presumed that the shareholder’s
approving vote is with respect to all shares that the shareholder is entitled
to vote. If a quorum is present, the affirmative vote of the majority of the
shares represented at the meeting and entitled to vote on any matter (other
than the election of directors) shall be the act of the shareholders, unless
the vote of a greater number or voting by classes is required by California
General Corporation Law or by the articles of incorporation.

 

(b) At a shareholders’
meeting at which directors are to be elected, no shareholder shall be
entitled to cumulate votes (i.e., cast for any one or more candidates a number
of votes greater than the number of the shareholder’s shares) unless the
candidates’ names have been placed in nomination prior to commencement of the
voting and a shareholder has given notice prior to commencement of the voting
of the shareholder’s intention to cumulate votes. If any shareholder has given
such a notice, then

 

4

 

every shareholder entitled to vote may cumulate votes for candidates in
nomination and give one candidate a number of votes equal to the number of
directors to be elected multiplied by the number of votes to which that
shareholder’s shares are entitled, or distribute the shareholder’s votes on the
same principle among any or all of the candidates, as the shareholder thinks
fit. The candidates receiving the highest number of votes, up to the number of
directors to be elected, shall be elected.

 

Section
9.  Waiver of Notice or Consent by Absent Shareholders.

 

(a)  The
transactions of any meeting of shareholders, either annual or special, however
called and noticed, and wherever held, shall be as valid as though had at a
meeting duly held after regular call and notice, if a quorum be present either
in person or by proxy, and if, either before or after the meeting, each person
entitled to vote, who was not present in person or by proxy, signs a written
waiver of notice or a consent to a holding of the meeting, or an approval of
the minutes. The waiver of notice or consent need not specify either the
business to be transacted or the purpose of any annual or special meeting of
shareholders, except that if action is taken or proposed to be taken for
approval of any of those matters specified in the second paragraph of Section 4
of this Article II, the waiver of notice or consent shall state the general
nature of the proposal. All such waivers, consents or approvals shall be filed
with the corporate records or made a part of the minutes of the meeting.

 

(b)  Attendance
by a person at a meeting shall also constitute a waiver of notice of that
meeting, except when the person objects, at the beginning of the meeting, to
the transaction of any business because the meeting is not lawfully called or
convened, and except that attendance at a meeting is not a waiver of any right
to object to the consideration of matters required by law to be included in the
notice of the meeting, but not so included, if that objection is expressly made
at the meeting.

 

Section 10. Shareholder Action by Written Consent Without a Meeting.

 

(a)  Any action
which may be taken at any annual or special meeting of shareholders may be
taken without a meeting and without prior notice, if a consent in writing,
setting forth the action so taken, is signed by the holders of outstanding
shares having not less than the minimum number of votes that would be necessary
to authorize or take that action at a meeting at which all shares entitled to
vote on that action were present and voted. In the case of election of
directors, such a consent

 

5

 

shall be effective only if signed by the holders of all outstanding
shares entitled to vote for the election of directors; provided, however, that
a director may be elected at any time to fill a vacancy on the board of directors
that has not been filled by the directors, by the written consent of the
holders of a majority of the outstanding shares entitled to vote for the
election of directors. All such consents shall be filed with the secretary of
the corporation and shall be maintained in the corporate records. Any
shareholder giving a written consent, or the shareholder’s proxy holders, or a
transferee of the shares or a personal representative of the shareholder or
their respective proxy holders, may revoke the consent by a writing received by
the secretary of the corporation before written consents of the number of
shares required to authorize the proposed action have been filed with the
secretary.

 

(b)  If the
consents of all shareholders entitled to vote have not been solicited in
writing, and if the unanimous written consent of all such shareholders shall
not have been received, the secretary shall give prompt notice of the corporate
action approved by the shareholders without a meeting. This notice shall be
given in the manner specified in Section 5 of this Article II.  In the case of approval of (i) contracts or
transactions in which a director has a direct or indirect financial interest,
pursuant to Section 310 of the Corporations Code of California, (ii)
indemnification of agents of the corporation, pursuant to Section 317 of that
Code, (iii) a reorganization of the corporation, pursuant to Section 1201 of
that Code, and (iv) a distribution in dissolution other than in accordance with
the rights of outstanding preferred shares, pursuant to Section 2007 of that
Code, the notice shall be given at least ten (10) days before the consummation
of any action authorized by that approval.

 

Section
11.  Record Date
for Shareholder Notice, Voting, and Giving
Consents.

 

(a)  For purposes
of determining the shareholders entitled to notice of any meeting or to vote or
entitled to give consent to corporate action without a meeting, the board of
directors may fix, in advance, a record date, which shall not be more than
sixty (60) days nor less than ten (10) days before the date of any such meeting
nor more than sixty (60) days before any such action without a meeting, and in
this event only shareholders of record on the date so fixed are entitled to
notice and to vote or to give consents, as the case may be, notwithstanding any
transfer of any shares on the books of the corporation after the record date,
except as otherwise provided in the California General Corporation Law.

 

 

6

 

(b)  If the
board of directors does not so fix a record date:

 

(1)  The record
date for determining shareholders entitled to notice of or to vote at a meeting
of shareholders shall be at the close of business on the business day next
preceding the day on which notice is given or, if notice is waived, at the
close of business on the business day next preceding the day on which the
meeting is held.

 

(2)  The record
date for determining shareholders entitled to give consent to corporate action
in writing without a meeting, (i) when no prior action by the board has been
taken, shall be the day on which the first written consent is given, or (ii)
when prior action of the board has been taken, shall be at the close of
business on the day on which the board adopts the resolution relating to that
action, or the sixtieth (60th) day before the date of such other action,
whichever is later.

 

Section 12.  Proxies. Every person
entitled to vote for directors or on any other matter shall have the right to
do so either in person or by one or more agents authorized by a written proxy
signed by the person and filed with the secretary of the corporation. A proxy
shall be deemed signed if the shareholder’s name is placed on the proxy
(whether by manual signature, typewriting, telegraphic transmission, or otherwise) by the shareholder or the
shareholder’s attorney in fact. A validly executed proxy which does not state
that it is irrevocable shall continue in full force and effect unless (i)
revoked by the person executing it, before the vote pursuant to that proxy, by
a writing delivered to the corporation stating that the proxy is revoked, or by
a subsequent proxy executed by, or attendance at the meeting and voting in
person by, the person executing the proxy; or (ii) written notice of the death
or incapacity of the maker of that proxy is received by the corporation before
the vote pursuant to that proxy is counted; provided, however, that no proxy
shall be valid after the expiration of eleven (11) months from the date of the
proxy, unless otherwise provided in the proxy. The revocability of a proxy that
states on its face that it is irrevocable shall be governed by the provisions
of Sections 705(e) and 705(f) of the Corporations Code of California.

 

Section 13. Inspectors of
Election.

 

(a)  Before any
meeting of shareholders, the board of directors may appoint any persons other
than nominees for office to act as inspectors of election at the meeting or its
adjournment. If no inspectors of election are so appointed, the chairman of the
meeting may, and on the request of any shareholder or a shareholder’s proxy
shall, appoint inspectors of election at the meeting. The number of inspectors
shall be either one (1)

 

7

 

or three (3). If inspectors are appointed at a meeting on the request
of one (1) or more shareholders or proxies, the holders of a majority of shares
or their proxies present at the meeting shall determine whether one (1) or
three (3) inspectors are to be appointed. If any person appointed as inspector
fails to appear or fails or refuses to act, the chairman of the meeting may,
and upon the request of any shareholder or a shareholder’s proxy shall, appoint
a person to fill that vacancy.

 

(b)  These
inspectors shall:

 

(1)  Determine
the number of shares outstanding and the voting power of each, the shares
represented at the meeting, the existence of a quorum, and the authenticity,
validity, and effect of proxies;

 

(2)  Receive
votes, ballots, or consents;

 

(3)  Hear and
determine all challenges and questions in any way arising in connection with
the right to vote;

 

(4)  Count and
tabulate all votes or consents;

 

(5)  Determine
when the polls shall close;

 

(6)  Determine
the result; and

 

(7)  Do any
other acts that may be proper to conduct the election or vote with fairness to
all shareholders.

 

ARTICLE III

 

DIRECTORS

 

Section 1.  Powers.

 

(a)  Subject to the provisions of the
California General Corporation Law and any limitations in the articles of
incorporation and these bylaws relating to action required to be approved by
the shareholders or by the outstanding shares, the business and affairs of the
corporation shall be managed and all corporate powers shall be exercised by or
under the direction of the board of directors.

 

(b)  Without prejudice
to these general powers, and subject to the same limitations, the directors
shall have the power to:

 

(1)  Select and
remove all officers, agents, and employees of the corporation; prescribe any
powers and duties for them 

 

8

 

that are consistent with law, with the articles of incorporation, and
with these bylaws; fix their compensation; and require from them security for
faithful service.

 

(2)  Change the
principal executive office or the principal business office in the State of
California from one location to another; cause the corporation to be qualified
to do business in any other state, territory, dependency, or country and
conduct business within or without the State of California; and designate any
place within or without the State of California for the holding of any
shareholders’ meeting, or meetings, including annual meetings.

 

(3)  Adopt,
make, and use a corporate seal; prescribe the forms of certificates of stock;
and alter the form of the seal and certificates.

 

(4)  Authorize
the issuance of shares of stock of the corporation on any lawful terms, in
consideration of money paid, labor done, services actually rendered, debts or
securities cancelled, or tangible or intangible property actually received.

 

(5)  Borrow
money and incur indebtedness on behalf of the corporation, and cause to be
executed and delivered for the corporation’s purposes, in the corporate name,
promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations,
and other evidences of debt and securities.

 

Section 2.  Number
and Qualification of Directors. The authorized number of directors shall be
two (2) until changed by a duly adopted amendment to the articles of
incorporation or by an amendment to this bylaw adopted by the vote or written
consent of holders of a majority of the outstanding shares entitled to vote;
provided, however, that an amendment reducing the number of directors to a
number less than five (5) cannot be adopted if the votes cast against its
adoption at a meeting, or the shares not consenting in the case of action by
written consent, are equal to more than sixteen and two-thirds percent
(16-2/3%) of the outstanding shares entitled to vote.

 

Section 3.  Election and Term of Office
of Directors. Directors shall be elected at each annual meeting of
the shareholders to hold office until the next annual meeting. Each director,
including a director elected to fill a vacancy, shall hold office until the
expiration of the term for which elected and until a successor has been elected
and qualified.

 

9

 

Section 4.  Vacancies.

 

(a)  Vacancies
in the board of directors may be filled by a majority of the remaining
directors, though less than a quorum, or by a sole remaining director, except
that a vacancy created by the removal of a director by the vote or written
consent of the shareholders or by court order may be filled only by the vote of
a majority of the shares entitled to vote represented at a duly held meeting at
which a quorum is present, or by the written consent of holders of a majority
of the outstanding shares entitled to vote. Each director so elected shall hold
office until the next annual meeting of the shareholders and until a successor
has been elected and qualified.

 

(b)  A vacancy
or vacancies in the board of directors shall be deemed to exist in the event of
the death, resignation or removal of any director, or if the board of directors
by resolution declares vacant the office of a director who has been declared of
unsound mind by an order of court or convicted of a felony, or if the
authorized number of directors is increased, or if the shareholders fail, at
any meeting of shareholders at which any director or directors are elected, to
elect the number of directors to be voted for at that meeting.

 

(c)  The
shareholders may elect a director or directors at any time to fill any vacancy
or vacancies not filled by the directors, but any such election by written
consent shall require the consent of a majority of the outstanding shares
entitled to vote.

 

(d)  Any
director may resign effective on giving written notice to the chairman of the
board, the president, the secretary, or the board of directors, unless the
notice specifies a later time for that resignation to become effective. If the
resignation of a director is effective at a future time, the board of directors
may elect a successor to take office when the resignation becomes effective.

 

(e)  No
reduction of the authorized number of directors shall have the effect of removing any director before that director’s
term of office expires.

 

Section 5.  Place of Meetings and Meetings by
Telephone. Regular
meetings of the board of directors may be held at any place within or outside
the State of California that has been designated from time to time by
resolution of the board. In the absence of such a designation, regular meetings
shall be held at the principal executive office of the corporation. Special
meetings of the board shall be held at any place within or outside the State of
California that has been designated in the notice of

 

10

 

the meeting or, if not stated in the notice, or there is no notice, at
the principal executive office of the corporation. Any meeting, regular or
special, may be held by conference telephone or similar communication
equipment, so long as all directors participating in the meeting can hear one
another, and all such directors shall be deemed to be present in person at the
meeting.

 

Section 6.  Annual
meeting. Immediately following each annual meeting of
shareholders, the board of directors shall hold a regular meeting for the
purpose of organization, any desired election of officers, and the transaction
of other business. Notice of this meeting shall not be required.

 

Section 7.  Other Regular Meetings. Other regular meetings of the board
of directors shall be held without call at such time as shall from time to time
be fixed by the board of directors. Such regular meetings may be held without
notice.

 

Section 8.  Special
Meetings.

 

(a)  Special
meetings of the board of directors for any purpose or purposes may be called at
any time by the chairman of the board or the president or any vice president or
the secretary or any two directors.

 

(b)  Notice of
the time and place of special meetings shall be delivered personally or by
telephone to each director or sent

by first-class mail or telegram, charges prepaid, addressed to each
director at that director’s address as it is shown on the

records of the corporation. In case the notice is mailed, it shall be
deposited in the United States mail at least four (4) days before the time of
the holding of the meeting.  In case the
notice is delivered personally, or by telephone or telegram, it shall be
delivered personally or by telephone or to the telegraph company at least
forty-eight (48) hours before the time of the holding of the meeting. Any oral
notice given personally or by telephone may be communicated either to the
director or to a person at the office of the director who the person giving the
notice has reason to believe will promptly communicate it to the director. The
notice need not specify the purpose of the meeting. The notice need not specify
the place if the meeting is to be held at the principal executive office of the
corporation.

 

Section 9.  Quorum.
A majority of the authorized number of directors shall constitute a quorum for
the transaction of business, except to adjourn as provided in Section 11 of this
Article III. Every act or decision done or made by a majority of the directors
present at a meeting duly held at which a quorum is present shall be regarded
as the act of the board of directors, subject to the provisions of Section 310
of the Corporations Code

 

11

 

of California (as to approval of contracts or transactions in which a
director has a direct or indirect material financial interest), Section 311 of
that Code (as to appointment of committees), and Section 317(e) of that Code
(as to indemnification of directors). A meeting at which a quorum is initially
present may continue to transact business notwithstanding the withdrawal of
directors, if any action taken is approved by at least a majority of the
required quorum for that meeting.

 

Section 10.  Waiver
of Notice. The transactions of any meeting of the board
of directors, however called and noticed or wherever held, shall be as valid as
though had at a meeting duly held after regular call and notice if a quorum is
present and if either before or after the meeting, each of the directors not
present signs a written waiver of notice, a consent to holding the meeting or
an approval of the minutes. The waiver of notice or consent need not specify
the purpose of the meeting.  All such
waivers, consents, and approvals shall be filed with the corporate records or
made a part of the minutes of the meeting. Notice of a meeting shall also be
deemed given to any director who attends the meeting without protesting before
or at its commencement, the lack of notice to that director.

 

Section 11.  Adjournment. A majority of the directors present,
whether or not constituting a quorum, may adjourn any meeting to another time
and place.

 

Section 12.  Notice
of Adjournment. Notice of the time and place of holding
an adjourned meeting need not be given, unless the meeting is adjourned for
more than twenty-four (24) hours, in which case notice of the time and place
shall be given before the time of the adjourned meeting, in the manner
specified in Section 8 of this Article III, to the directors who were not
present at the time of the adjournment.

 

Section 13.  Action Without Meeting. Any action required or permitted to
be taken by the board of directors may be taken without a meeting, if all
members of the board shall individually or collectively consent in writing to
that action. Such action by written consent shall have the same force and
effect as a unanimous vote of the board of directors. Such written consent or
consents shall be filed with the minutes of the proceedings of the board.

 

Section 14.  Fees
and Compensation of Directors. Directors and members of
committees may receive such compensation, if any, for their services, and such
reimbursement expenses, as may be fixed or determined by resolution of the
board of directors. This Section 14 shall not be construed to preclude any
director from serving the corporation in any other capacity as an officer, 

 

12

 

agent, employee, or otherwise, and receiving compensation for those
services.

 

 

ARTICLE IV

 

COMMITTEES

 

Section 1. Committees of Directors.
The board of directors may, by resolution adopted by a majority of the
authorized number of directors, designate one or more committees, each
consisting of two or more directors, to serve at the pleasure of the board. The
board may designate one or more directors as alternate members of any
committee, who may replace any absent member at any meeting of the committee.
Any committee, to the extent provided in the resolution of the board, shall
have all the authority of the board, except with respect to:

 

(a)  The
approval of any action which, under the General Corporation Law of California,
also requires shareholders’ approval or approval of the outstanding shares;

 

(b)  The
filling of vacancies on the board of directors or in any committee;

 

(c)  The fixing
of compensation of the directors for serving on the board or on any committee;

 

(d)  The
amendment or repeal of bylaws or the adoption of new bylaws;

 

(e)  The
amendment or repeal of any resolution of the board of directors which by its
express terms is not so amendable or repealable;

 

(f)  A
distribution to the shareholders of the corporation, except at a rate or in a
periodic amount or within a price range determined by the board of directors;
or

 

(g)  The
appointment of any other committees of the board of directors or the members of
these committees.

 

Section 2.  Meetings and Action of Committees. Meetings and action of committees
shall be governed by, and held and taken in accordance with, the provisions of
Article III of these bylaws, Section 5 (place of meetings), Section 7 (regular
meetings), Section 8 (special meetings and notice), Section 9 (quorum), Section
10 (waiver of notice), Section 11 (adjournment), Section 12 (notice of
adjournment), and Section 13 (action without meeting), with such changes in the
context of those bylaws as are necessary to substitute the committee and its
members for the

 

13

 

board of directors and its members, except that the time of regular
meetings of committees may be determined either by resolution of the board of
directors or by resolution of the committee; special meetings of committees may
also be called by resolution of the board of directors; and notice of special
meetings of committees shall also be given to all alternate members, who shall
have the right to attend all meetings of the committee. The board of directors
may adopt rules for the government of any committee not inconsistent with the
provisions of these bylaws.

 

ARTICLE V

 

OFFICERS

 

Section 1.  Officers.
The officers of the corporation shall be a president, a secretary, and a chief
financial officer.  The corporation may
also have, at the discretion of the board of directors, a chairman of the
board, one or more vice presidents, one or more assistant secretaries, one or
more assistant treasurers, and such other officers as may be appointed in
accordance with the provisions of Section 3 of this Article V. Any number of
offices may be held by the same person.

 

Section 2.  Election of Officers. The officers of the corporation,
except such officers as may be appointed in accordance with the provisions of
Section 3 or Section 5 of this Article V,
shall be chosen by the board of directors, and each shall serve at the
pleasure of the board, subject to the rights, if any, of an officer under any
contract of employment.

 

Section 3.  Subordinate Officers. The board of directors may appoint,
and may empower the president to appoint, such other officers as the business
of the corporation may require, each of whom shall hold office for such period,
have such authority and perform such duties as are provided in the bylaws or as
the board of directors may from time to time determine.

 

Section 4.  Removal and Resignation of Officers.

 

(a)  Subject to
the rights, if any, of an officer under any contract of employment, any officer
may be removed, either with or without cause, by the board of directors, at any
regular or special meeting of the board, or, except in case of an officer
chosen by the board of directors, by any officer upon whom such power of
removal may be conferred by the board of directors.

 

(b)  Any
officer may resign at any time by giving written notice to the corporation. Any
resignation shall take effect at the date of the receipt of that notice or at
any later time

 

14

 

specified in that notice; and, unless otherwise specified in that notice,
the acceptance of the resignation shall not be necessary to make it effective.
Any resignation is without prejudice to the rights, if any, of the corporation
under any contract to which the officer is a party.

 

Section 5.  Vacancies
in Offices. A vacancy in any office because of death,
resignation, removal, disqualification or any other cause shall be filled in
the manner prescribed in these bylaws for regular appointments to that office.

 

Section 6.  Chairman
of the Board. The chairman of the board, if such an
officer be elected, shall, if present, preside at meetings of the board of
directors and exercise and perform such other powers and duties as may be from
time to time assigned to him by the board of directors or prescribed by the
bylaws. If there is no president, the chairman of the board shall in addition
be the chief executive officer of the corporation and shall have the powers and
duties prescribed in Section 7 of this Article V.

 

Section 7.  President. Subject to such supervisory powers,
if any, as may be given by the board of directors to the chairman of the board,
if there be such an officer, the president shall be the chief executive officer
of the corporation and shall, subject to the control of the board of directors,
have general supervision, direction, and control of the business and the
officers of the corporation. He shall preside at all meetings of the
shareholders and, in the absence of the chairman of the board, or if there be
none, at all meetings of the board of directors. He shall have the general
powers and duties of management usually vested in the office of president of a
corporation, and shall have such other powers and duties as may be prescribed
by the board of directors or the bylaws.

 

Section 8.  Vice Presidents. In the absence or disability of the
president, the vice presidents, if any, in order of their rank as fixed by the
board of directors or, if not ranked, a vice president designated by the board
of directors, shall perform all the duties of the president and when so acting
shall have all the powers of, and be subject to all the restrictions upon, the
president. The vice presidents shall have such other powers and perform such
other duties as from time to time may be prescribed for them respectively by
the board of directors or the bylaws, and the president, or the chairman of the
board.

 

Section 9.  Secretary.

 

(a)  The
secretary shall keep or cause to be kept, at the principal executive office or
such other place as the board of 

 

 

15

 

directors may direct, a book of minutes of all meetings and actions of
directors, committees of directors, and shareholders, with the time and place
of holding, whether regular or special, and, if special, how authorized, the
notice given, the names of those present at directors’ meetings or committee
meetings, the number of shares present or represented at shareholders’
meetings, and the proceedings.

 

(b)  The
secretary shall keep, or cause to be kept, at the principal executive office or
at the office of the corporation’s transfer agent or registrar, as determined
by resolution of the board of directors, a share register, or a duplicate share
register, showing the names of all shareholders and their addresses, the number
and classes of shares held by each, the number and date of certificates issued
for the same, and the number and date of cancellation of every certificate
surrendered for cancellation.

 

(c)  The
secretary shall give, or cause to be given, notice of all meetings of the
shareholders and of the board of directors required by the bylaws or by law to
be given, and he shall keep the seal of the corporation, if one be adopted, in
safe custody, and shall have such other powers and perform such other duties as
may be prescribed by the board of directors or by the bylaws.

 

Section 10.  Chief
Financial Officer.

 

(a)  The chief
financial officer shall keep and maintain, or cause to be kept and maintained,
adequate and correct books and records of accounts of the properties and
business transactions of the corporation, including accounts of its assets,
liabilities, receipts, disbursements, gains, losses, capital, retained
earnings, and shares. The books of account shall at all reasonable times be
open to inspection by any director.

 

(b)  The chief
financial officer shall deposit all moneys and other valuables in the name and
to the credit of the corporation with such depositories as may be designated by
the board of directors.  He shall
disburse the funds of the corporation as may be ordered by the board of
directors, shall render to the president and directors, whenever they request
it, an account of all of his transactions as chief financial officer and of the
financial condition of the corporation, and shall have other powers and perform
such other duties as may be prescribed by the board of directors or the bylaws.

 

16

 

ARTICLE VI

 

INDEMNIFICATION OF
DIRECTORS, OFFICERS, EMPLOYEES AND

OTHER
AGENTS

 

Section 1.  Agents,
Proceedings and Expenses. For the purposes of this Article, “agent” means
any person who is or was a director, officer, employee, or other agent of this
corporation, or is or was serving at the request of this corporation as a
director, officer, employee, or agent of another foreign or domestic
corporation, partnership, joint venture, trust or other enterprise, or was a
director, officer, employee, or agent of a foreign or domestic corporation
which was a predecessor corporation of this corporation or of another
enterprise at the request of such predecessor corporation; “proceeding” means
any threatened, pending or completed action or proceeding, whether civil,
criminal, administrative, or investigative; and “expenses” includes, without
limitation, attorneys' fees and any expenses of establishing a right to
indemnification under Section 4 or Section 5(b) of this Article.

 

Section 2.  Actions Other than by the Corporation. This corporation shall indemnify any
person who was or is a party, or is threatened to be made a party, to any proceeding
(other than an action by or in the right of this corporation to procure a
judgment in its favor) by reason of the fact that such person is or was an
agent of this corporation, against expenses, judgments, fines, settlements and
other amounts actually and reasonably incurred in connection with such
proceeding if that person acted in good faith and in a manner that person
reasonably believed to be in the best interests of this corporation and, in the
case of a criminal proceeding, had no reasonable cause to believe the conduct
of that person was unlawful. The termination of any proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendere or its
equivalent shall not, of itself, create a presumption that the person did not act
in good faith and in a manner which the
person reasonably believed to be in the best interests of this
corporation or that the person had reasonable cause to believe that the
person’s conduct was unlawful.

 

Section 3.  Actions by the Corporation. This corporation shall indemnify any
person who was or is a party, or is threatened to be made a party, to any
threatened, pending or completed action by or in the right of this corporation
to procure a judgment in its favor by reason of the fact that such person is or
was an agent of this corporation, against expenses actually and reasonably
incurred by that person in connection with the defense or settlement of that
action if that person acted in good faith, 

 

 

17

 

in a manner that person believed to be in the best interests of this
corporation and its shareholders. No indemnification shall be made under this
Section 3 for any of the following:

 

(a)  In respect
of any claim, issue or matter as to which that person shall have been adjudged
to be liable to this corporation in the performance of that person’s duty to
this corporation and its shareholders, unless and only to the extent that the
court in which such proceeding is or was pending shall determine upon application
that, in view of all the circumstances of the case, that person is fairly and
reasonably entitled to indemnity for the expenses and then only to the extent
that the court shall determine.

 

(b)  Of amounts
paid in settling or otherwise disposing of a threatened or pending action,
without court approval.

 

(c)  Of
expenses incurred in defending a pending action which is settled or otherwise
disposed of without court approval.

 

Section 4.  Successful Defense by Agent. To the extent that an agent of this corporation
has been successful on the merits in defense of any proceeding referred to in
Sections 2 or 3 of this Article, or in defense of any claim, issue, or matter
therein, the agent shall be indemnified against expenses actually and
reasonably incurred by the agent in connection therewith.

 

Section 5.  Required Approval. Except as provided in Section 4 of
this Article, any indemnification under this Article shall be made by this
corporation only if authorized in the specific case upon a determination that
indemnification of the agent is proper in the circumstances because the agent
has met the applicable standard of conduct set forth in Sections 2 or 3 of this
Article, by any of the following:

 

(a)  A majority
vote of a quorum consisting of directors who are not parties to the proceeding.

 

(b)  If such a
quorum of directors is not obtainable, by independent legal counsel in a
written opinion.

 

(c)  Approval
by the affirmative vote of a majority of the shares of this corporation
entitled to vote represented at a duly held meeting at which a quorum is
present (which shares voting affirmatively also constitute at least a majority
of the required quorum) or by the written consent of holders of a majority of
the outstanding shares entitled to vote. For this purpose, the shares owned by
the person to be indemnified shall not be considered entitled to vote thereon.

 

18

 

(d)  The court
in which the proceeding is or was pending, on application made by this
corporation or the agent or the attorney or other person rendering services in
connection with the defense, whether or not such application by the agent,
attorney, or other person is opposed by this corporation.

 

Section 6.  Advance
of Expenses. Expenses incurred in defending any
proceeding may be advanced by this corporation before the final disposition of
the proceeding on receipt of an undertaking by or on behalf of the agent to
repay the amount of the advance if it shall be determined ultimately that the
agent is not entitled to be indemnified as authorized in this Article.

 

Section 7.  Other
Contractual Rights. The indemnification provided herein
shall not be deemed to limit the right of this corporation to indemnify any
other person for any such expenses to the full extent permitted by law, nor
shall it be deemed exclusive of any other rights to which those seeking
indemnification may be entitled under any bylaw, agreement, vote of
shareholders or disinterested directors or otherwise, both as to action in an
official capacity and as to action in another capacity while holding such
office, to the extent such additional rights to indemnification are authorized
in the articles of this corporation. The rights to indemnity hereunder shall
continue as to a person who has ceased to be a director, officer, employee, or
agent and shall inure to the benefit of the heirs, executors, and
administrators of the person. Nothing contained in this Article shall affect any right to indemnification to
which persons other than directors and officers of this corporation or any
subsidiary hereof may be entitled by contract or otherwise.

 

Section 8.  Limitations. No indemnification or advance shall
be made under this Article, except as provided in Section 4 or Section 5(c), in
any circumstance where it appears:

 

(a)  That it
would be inconsistent with a provision of the articles, bylaws, a resolution of
the shareholders or an agreement in effect at the time of the accrual of the
alleged cause of action asserted in the proceeding in which the expenses were
incurred or other amounts were paid, which prohibits or otherwise limits
indemnification.

 

(b)  That it
would be inconsistent with any condition expressly imposed by a court in approving a settlement.

 

Section 9.  Insurance.
Upon and in the event of a
determination by the board of directors of this corporation to purchase such
insurance, this corporation shall purchase and maintain insurance on behalf of
any agent of the corporation against any liability asserted against or incurred
by the agent in such

 

19

 

capacity or arising out
of the agent’s status as such whether or not this corporation would have the
power to indemnify the agent against that liability under the provisions of
this section. The fact that this corporation owns all or a portion of the
shares of the company issuing a policy of insurance shall not render this
subdivision inapplicable if either of the following conditions are satisfied:
(1) if authorized in the articles of the corporation, any policy issued is
limited to the extent provided by subdivision (d) of Section 204 of the
California Corporations Code; or (2)(A) the company issuing the insurance
policy is organized, licensed, and operated in a manner that complies with the
insurance laws and regulations applicable to its jurisdiction of organization,
(B) the company issuing the policy provides procedures for processing claims
that do not permit that company to be subject to direct control of the
corporation that purchase that policy, and (C) the policy issued provides for
some manner of risk sharing between the issuer and purchaser of the policy, on
one hand, and some unaffiliated person or persons, on the other, such as by
providing for more than one unaffiliated owner of the company issuing the
policy or by providing that a portion of the coverage furnished will be
obtained from some unaffiliated insurer or reinsurer.

 

Section 10. Fiduciaries
of Corporate Employee Benefit Plan. This Article
does not apply to any proceeding against trustee, investment manager, or other
fiduciary of an employee benefit plan in that person’s capacity as such, even
though that person may also be an agent of the corporation as defined in
Section 1 of this Article. Nothing contained in this Article shall limit any
right to indemnification to which such a trustee, investment manager, or other
fiduciary may be entitled by contract or otherwise, which shall be enforceable
to the extent permitted by applicable law other than this Article.

 

ARTICLE VII

RECORDS
AND REPORTS

 

Section 1.  Maintenance and Inspection of Share
Register.

 

(a)  The
corporation shall keep at its principal executive office, or at the office of
its transfer agent or registrar, if either be appointed and as determined by
resolution of the board of directors, a record of its shareholders, giving the
names and addresses of all shareholders and the number and class of shares held
by each shareholder.

 

(b)  A
shareholder or shareholders of the corporation holding at least five percent
(5%) in the aggregate of the outstanding 

 

 

20

 

voting shares of the corporation may (i) inspect and copy the records
of shareholders’ names and addresses and shareholdings during usual business
hours on five days prior written demand on the corporation, and (ii) obtain
from the transfer agent of the corporation, on written demand and on the tender
of such transfer agent’s usual charges for such list, a list of the
shareholders’ names and addresses, who are entitled to vote for the election of
directors, and their shareholdings, as of the most recent record date for which
that list has been compiled or as of a date specified by the shareholder after
the date of demand. This list shall be made available to any such shareholder
by the transfer agent on or before the later of five (5) days after the demand
is received or the date specified in the demand as the date as of which the
list is to be compiled. The record of shareholders shall also be open to inspection
on the written demand of any shareholder or holder of a voting trust
certificate, at any time during usual business hours, for a purpose reasonably
related to the holder’s interests as a shareholder or as the holder of a voting
trust certificate. Any inspection and copying under this Section 1 may be made
in person or by an agent or attorney of the shareholder or holder of a voting
trust certificate making the demand.

 

Section 2.  Maintenance and Inspection of Bylaws.
The corporation shall keep at its principal executive office,
or if its principal executive office is not in the State of California, at its
principal business office in this state, the original or a copy of the bylaws
as amended to date, which shall be open to inspection by the shareholders at all reasonable times during office hours.
If the principal executive office of the corporation is outside the State of
California and the corporation has no principal business office  in this state, the Secretary shall, upon
the written request of any shareholder, furnish to that shareholder a copy of
the bylaws as amended to date.

 

Section 3.  Maintenance and Inspection of Other
Corporate Records.
The accounting books and
records and minutes of proceedings of the shareholders and the board of
directors and any committee or committees of the board of directors shall be
kept at such place or places designated
by the board of directors, or, in the absence of such designation, at
the principal executive office of the corporation. The minutes shall be kept in
written form and the accounting books and records shall be kept either in
written form or in any other form capable of being converted into written form.
The minutes and accounting books and records shall be open to inspection upon
the written demand of any shareholder or holder of a voting trust certificate,
at any reasonable time during usual business hours, for a purpose reasonably
related to the holder’s interests as a shareholder or as the holder of a voting
trust certificate. The inspection may be made in person 

 

 

21

 

or by an argent or
attorney, and shall include the right to copy and make extracts. These rights
of inspection shall extend to the records of each subsidiary corporation of the
corporation.

 

Section 4.  Inspection
by Directors. Every director shall have the absolute
right at any reasonable time to inspect all books, records, and documents of
every kind and the physical properties of the corporation and each of its
subsidiary corporations. This inspection by a director may be made in person or
by an agent or attorney and the right of inspection includes the right to copy
and make extracts of documents.

 

Section 5.  Annual Report to Shareholders. The annual report to shareholders
referred to in Section 1501 of the California General Corporation Law is
expressly dispensed with, but nothing herein shall be interpreted as
prohibiting the board of directors from issuing annual or other periodic
reports to the shareholders of the corporation as they consider appropriate.
Provided, however, that at such time as the corporation has one hundred (100)
or more shareholders, then, the board of directors shall cause an annual report
to be sent to the shareholders not later than one hundred twenty (120) days
after the close of the fiscal year adopted by the corporation. This report
shall be sent at least fifteen (15) days before the annual meeting of
shareholders to be held during the next fiscal year and in the manner specified
in Section 5 of Article II of these bylaws for giving notice to shareholders of
the corporation. The annual report shall contain a balance sheet as of the end
of the fiscal year and an income statement and statement of changes in
financial position for the fiscal year, accompanied by any report of
independent accountants or, if there is no such report, the certificate of an
authorized officer of the corporation that the statements were prepared without
audit from the books and records of the corporation.

 

Section 6.  Financial Statements.

 

(a)  A copy of any annual financial
statement and any income statement of the corporation for each quarterly period
of each fiscal year, and any
accompanying balance sheet of the corporation as of the end of each such
period, that has been prepared by the corporation shall be kept on file in the
principal executive office of the corporation for twelve (12) months and each
such statement shall be exhibited at all reasonable times to any shareholder
demanding an examination of any such statement or a copy shall be mailed to any
such shareholder.

 

(b)  If a
shareholder or shareholders holding at least five percent (5%) of the
outstanding shares of any class of stock of the corporation makes a written
request to the corporation for an income statement of the corporation for the
three (3)-month, six 

 

22

 

(6)-month or nine (9)-month period of the then current fiscal year
ended more than thirty (30) days before the date of the request, and a balance
sheet of the corporation as of the end of that period, the chief financial
officer shall cause that statement to be prepared, if not already prepared, and
shall deliver personally or mail that statement or statements to the person
making the request within thirty (30) days after the receipt of the request. If
the corporation has not sent to the shareholders its annual report for the last
fiscal year, this report shall likewise be delivered or mailed to the
shareholder or shareholders within thirty (30) days after the request.

 

(c)  The
corporation shall also, on the written request of any shareholder, mail to the
shareholder a copy of the last annual, semiannual or quarterly income statement
which it has prepared, and a balance sheet as of the end of that period.

 

(d)  The
quarterly income statements and balance sheets referred to in this section
shall be accompanied by the report, if any, of any independent accountants
engaged by the corporation or the certificate of an authorized officer of the
corporation that the financial statements were prepared without audit from the
books and records of the corporation.

 

Section 7.  Annual Statement of General Information.
The corporation shall file with the Secretary of State of the
State of California annually, on the prescribed form, a statement setting forth
the authorized number of directors, the names and complete business or
residence addresses of all incumbent directors, the names and complete business
or residence addresses of the chief executive officer, secretary, and chief
financial officer, the street address of its principal executive office or
principal business office in this state, and the general type of business
constituting the principal business activity of the corporation, together with
a designation of the agent of the corporation for the purpose of service of
process, all in compliance with Section 1502 of the Corporations Code of
California.

 

ARTICLE VIII

GENERAL
CORPORATE MATTERS

 

Section 1.  Record Date for Purposes Other than
Notice and Voting.

 

(a)  For purposes
of determining the shareholders entitled to receive payment of any dividend or
other distribution or allotment of any rights or entitled to exercise any
rights in respect of any other lawful action (other than action by shareholders
by

 

23

 

written consent without a meeting), the board of directors may fix, in
advance, a record date, which shall not be more than sixty (60) days before any
such action, and in that case only shareholders of record on the date so fixed
are entitled to receive the dividend, distribution, or allotment of rights or
to exercise the rights, as the case may be, notwithstanding any transfer of any
shares on the books of the corporation after the record date so fixed, except
as otherwise provided in the California General Corporation Law.

 

(b)  If the
board of directors does not so fix a record date, the record date for
determining shareholders for any such purpose shall be at the close of business
on the day on which the board adopts the applicable resolution or the sixtieth
(60th) day before the date of that action, whichever is later.

 

Section 2.  Checks,
Drafts, Evidences of Indebtedness. All checks, drafts, or other orders for
payment of money, notes or other evidences of indebtedness, issued in the name
of or payable to the corporation, shall be signed or endorsed by such person or
persons and in such manner as, from time to time, shall be determined by
resolution of the board of directors.

 

Section 3.  Corporate Contracts and Instruments; How
Executed. The board of directors, except as otherwise provided
in these bylaws, may authorize any officer or officers, agent or agents, to
enter into any contract or execute any instrument in the name of and on behalf
of the corporation, and this authority may be general or confined to specific
instances; and, unless so authorized or ratified by the board of directors or
within the agency power of an officer, no officer, agent, or employee shall
have any power or authority to bind the corporation by any contract or
engagement or to pledge its credit or to render it liable for any purpose or
for any amount.

 

Section 4.  Certificates for Shares. A certificate or certificates for
shares of the capital stock of the corporation shall be issued to each
shareholder when any of these shares are fully paid, and the board of directors
may authorize the issuance of certificates or shares as partly paid provided
that these certificates shall state the amount of the consideration to be paid
for them and the amount paid. All certificates shall be signed in the name of
the corporation by the chairman of the board or vice chairman of the board or
the president or vice president and by the chief financial officer or an
assistant treasurer or the secretary or any assistant secretary, certifying the
number of shares and the class or series of shares owned by the
shareholder.  Any or all of the
signatures on the certificate may be facsimile. In case any officer, transfer agent,
or registrar who

 

24

 

has signed or whose
facsimile signature has been placed on a certificate shall have ceased to be
that officer, transfer agent, or registrar before that certificate is issued,
it may be issued by the corporation with the same effect as if that person were
an officer, transfer agent, or registrar at the date of issue.

 

Section 5.  Lost
Certificates. Except as provided in this Section 5, no
new certificates for shares shall be issued to replace an old certificate
unless the latter is surrendered to the corporation and cancelled at the same
time. The board of directors may, in case any share certificate or certificate
for any other security is lost, stolen, or destroyed, authorize the issuance of
a replacement certificate on such terms and conditions as the board may
require, including provision for indemnification of the corporation secured by
a bond or other adequate security sufficient to protect the corporation against
any claim that may be made against it, including any expense or liability, on
account of the alleged loss, theft, or destruction of the certificate or the
issuance of the replacement certificate.

 

Section 6.  Representation of Shares of Other
Corporations. The
chairman of the board, the president, or any vice president, or any other
person authorized by resolution of the board of directors or by any of the
foregoing designated officers, is authorized to vote on behalf of the
corporation any and all shares of any other corporation or corporations,
foreign or domestic, standing in the name of the corporation. The authority
granted to these officers to vote or represent on behalf of the corporation any
and all shares held by the corporation in any other corporation or corporations
may be exercised by any of these officers in person or by any person authorized
to do so by a proxy duly executed by these officers.

 

Section 7.  Construction and Definitions. Unless the context requires
otherwise, the general provisions, rules of construction, and definitions in
the California General Corporation Law shall govern the construction of these
bylaws. Without limiting the generality of this provision, the singular number
includes the plural, the plural number includes the singular, and the term
“person” includes both a corporation and a natural person.

 

ARTICLE IX

AMENDMENTS

 

Section 1.  Amendment
by Shareholders. New bylaws may be adopted or these
bylaws may be amended or repealed by the vote or written consent of holders of
a majority of the outstanding shares entitled to vote; provided, however, that
if the articles 

 

25

 

of incorporation of the corporation set forth the number of authorized
directors of the corporation, the authorized number of directors may be changed
only by an amendment of the articles of incorporation.

 

Section 2.  Amendment by Directors. Subject to the rights of the
shareholders as provided in Section 1 of this Article IX, bylaws, other than a
bylaw or an amendment of a bylaw changing the authorized number of directors,
may be adopted, amended, or repealed by the board of directors.

 

26

 

CERTIFICATE

 

I, the undersigned, do
hereby certify:

 

(1)  That I am the Secretary of CUI ACQUISITION
CORPORATION, a California corporation; and

 

(2)  That the foregoing bylaws, consisting of
twenty-six (26) pages, constitute the bylaws of said corporation as duly
adopted on the date hereinafter set forth.

 

IN WITNESS WHEREOF, I
have hereunto subscribed my name this 31 day of March, 1989.

 

	
   

  	
  /s/ Michael D. Farney

  
	
   

  	
  Michael D. Farney, Secretary

  

 

 

Annex 3

 

 

ACTION BY BOARD OF
DIRECTORS

 

OF

 

CUI CORPORATION

 

BY UNANIMOUS WRITTEN CONSENT

 

The undersigned, being all of the members of the Board
of Directors of CUI CORPORATION, a California corporation (the “Company”),
acting pursuant to Section 307(8)(b) of the General Corporation Law of the
State of California, hereby consent in writing to the adoption of the following
actions in lieu of a special meeting of the Board of Directors:

 

GUARANTEE AND COLLATERAL

 

WHEREAS, INAMED
Corporation (“Inamed”) intends to enter into that certain Credit
Agreement dated as of February 1, 2000 (the “Credit Agreement”), by and
among Inamed, the Lenders, Bear Stearns Corporate Lending Inc., as Syndication
Agent (in such capacity, the “Syndication Agent”), Bear, Stearns &
Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent;

 

WHEREAS, pursuant to
the terms of the Credit Agreement, the Company as a subsidiary of Inamed, is
required to guaranty all of Inamed’s obligations under the Credit Agreement
(the “Obligations”, as defined under the Credit Agreement), by entering
into that certain Guarantee and Collateral Agreement (the “Guarantee and
Collateral Agreement”) dated of even date with the Credit Agreement, a copy
of which has been presented to the Board;

 

WHEREAS, pursuant to the terms and conditions of the
Credit Agreement, the Company, as a subsidiary of Inamed is required to secure
payment and performance of the Obligations, also by entering into that same
Guarantee and Collateral Agreement (as defined above), whereby the Company
would grant to Administrative Agent, for the benefit of the Administrative
Agent and the Lenders, a perfected, first priority Lien on all of its right,
title and interest in all of its personal property, including but not limited
to all capital stock of its domestic 

 

 

subsidiaries, 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licences, material
property, etc.

 

WHEREAS, the Board of Directors of the Company has
determined that in order to give effect to the Credit Agreement, it is
advisable and in the best interests of the Company that the Company enter into
the Guarantee and Collateral Agreement and each of the transactions
contemplated thereby;

 

NOW, THEREFORE, BE IT RESOLVED. that the Board of
Directors deems it advisable and in the best interests of the Company to enter
into the Guarantee and Collateral Agreement and any other documents
contemplated thereby and such documents hereby are authorized and approved,
with such changes thereto as the Chairman, the President, any Vice President or
the Secretary of the Company (the “proper officers”) may approve, such approval
to be conclusively evidenced by such officer’s or officers’ execution and
delivery thereof;

 

RESOLVED FURTHER, that the proper officers of the
Company be and each of them hereby is, authorized, empowered and directed, in
the name and on behalf of the Company, to enter into the Guarantee and
Collateral Agreement substantially on the terms and conditions as presented and
described to the Board, with such changes thereto as the proper officers may
approve, such approval to be conclusively evidenced by such officer’s or
officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized and directed to enter into
such other agreements, documents, promissory notes, and instruments with
respect to any of the foregoing, in such form and on such terms and conditions
as may be agreed to by the proper officers of the Company, Administrative Agent
and the Lenders, and to take such other actions with respect to the foregoing
as may be required by Administrative Agent and the Lenders; and that the proper
officers of the Company be, and each of them hereby is, authorized, directed
and empowered, in the name and on behalf of the Company, to execute and deliver
such other agreements, documents, promissory notes, deeds of trust, mortgages
and other instruments and to perform all other acts as such officers shall
approve in connection with any of the above the execution of such agreements,
documents promissory notes and other instruments or the taking of any such
actions to be conclusive evidence of such approval.

 

 

GENERAL AUTHORIZATIONS

 

RESOLVED, that the officers of the Company be, and
each of them hereby is, authorized, empowered and directed, in the name and on
behalf of the Company, to do or cause to be done all such other acts or things,
and to execute and deliver, or cause to be executed and delivered, all such
other documents, instruments, agreements, notes, undertakings, guarantees and
certificates of any kind and nature whatsoever, as such officer or officers may
deem necessary or appropriate to effectuate or carry out the purposes and
intent of the foregoing resolutions; all such other actions to be performed in
such manner, and all such other documents, instruments, agreements, notes,
undertakings, guarantees and certificates to be executed and delivered in such
form, as the officer or officers performing or executing the same shall
approve, such officer’s or officers’ approval thereof to be conclusively
evidenced by the performance of any such other action or the execution and
delivery of any such other document, instruments, agreements, notes,
undertakings and certificates; and

 

RESOLVED FURTHER, that all acts and things previously
done by any of the officers of the Company, on or prior to the date hereof, in
the name and on behalf of the Company, in connection with the transactions
contemplated by the foregoing resolutions, are in all respects ratified,
approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company.

 

* * *

 

 

This Unanimous Written Consent may be executed in one
or more counterparts, each of which shall be considered as an original.  The Secretary of the Company shall file this
Unanimous Written Consent in the minute book of the Company and it shall become
part of the records of the Company.

 

	
  Dated: February 1, 2000

  	
   

  
	
   

  	
  /s/ Richard G. Babbitt

  
	
   

  	
  Richard G. Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  

 

 

Annex 4

 

 

State of
California

 

SECRETARY
OF STATE

 

CERTIFICATE OF STATUS

DOMESTIC CORPORATION

 

[ILLEGIBLE]

 

 

FLOWMATRIX CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made to the Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Inamed Corporation
(the “Borrower”), the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”). Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent. Capitalized terms used herein and not otherwise
defined shall have the meanings assigned in the Credit Agreement. This
certificate is being delivered pursuant to Section 5. 1(g) of the Credit
Agreement.

 

I, David E. Bamberger, hereby certify that I am the
Secretary of FLOWMATRIX CORPORATION (the “Company”), and as such have access to
the Company’s corporate records and am familiar with the matters therein
contained and herein certified, and that:

 

1.             Attached
hereto as Annex 1 is a true, correct and complete copy of the Articles of
Incorporation of the Company, as filed with the Secretary of State of the State
of Nevada on June 4, 1993.

 

2.             Attached
hereto as Annex 2 is a true, correct and complete copy of the By–laws of
the Company as presently in effect on and as of the date hereof, which By-laws
are in full force and effect in said form without modification, amendment,
rescission or repeal in any respect.

 

3.             Attached
hereto as Annex 3 is a true, correct and complete copy of resolutions adopted
by unanimous written consent in lieu of a meeting in accordance with applicable
laws and the Articles of Incorporation and By-laws of the Company, and such
resolutions (i) were duly adopted by the Board of Directors of the Company and
are in full force and effect on and as of the date hereof, not having been in
any way amended, altered or repealed, and (ii) constitute the only resolutions
of the Board of Directors of the Company relating to the subject matter of the
Credit Agreement, the other Loan Documents and the transactions contemplated
thereby.

 

 

4.             Attached
hereto as Annex 4 is (i) a true, correct and complete copy of a certificate
from the Office of the Secretary of State of the State of Nevada indicating
that the Company is in good standing.

 

5.             There
are no consents, licenses or approvals required in connection with the
execution, delivery and performance by the Company or the validity and
enforceability against the Company of the Loan Documents to which it is a
party.

 

6.             The
following persons are duly qualified and acting officers of the Company, each
of whom is authorized to sign any of the Loan Documents to which the Company is
a party, and each of whom is duly elected to the office set forth opposite his
respective name; the signature appearing opposite the name of each such officer
is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  PRESIDENT

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/ David E. Bamberger

  

 

IN WITNESS WHEREOF, the undersigned has executed this
Secretary’s Certificate as of the 1 day of February, 2000.

 

	
   

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E. Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K. Reich, President of the Company, hereby
certify that David E. Bamberger is the duly elected Secretary of the Company
and that the signature appearing above is his genuine signature.

 

	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  President

  

 

3

 

Annex I

 

 

 

ARTICLES OF INCORPORATION

 

OF

 

FLOWMATRIX CORPORATION

 

I, the person hereinafter named as incorporator, for
the purpose of associating to establish a corporation, under the provisions and
subject to the requirements of Title 7, Chapter 78 of Nevada Revised Statutes,
and the acts amendatory thereof, and hereinafter sometimes referred to as the
General Corporation Law of the State of Nevada, do hereby adopt and make the
following Articles of Incorporation:

 

FIRST:  The name of the corporation (hereinafter
called the corporation) is FLOWMATRIX CORPORATION

 

SECOND:  The name of the corporation’s resident agent
in the State of Nevada is The Prentice-Hall Corporation System, Nevada, Inc.,
and the street address of the said resident agent where process may be served
on the corporation is 502 East John Street, Carson City 89706.

 

THIRD:  This corporation is authorized to issue two
classes of stock, designated Common Stock and Preferred Stock, respectively.
The number of shares of Common Stock which the corporation is authorized to
issue is Fifteen Thousand (15,000), all of which are of a par value of One
($1.00) dollar each. The number of shares of Preferred Stock which the
corporation is authorized to issue is Ten Thousand (10,000), all of which are
of a par value of One ($1.00) dollar each.

 

The Preferred Stock may be issued in one or more
series. The Board of Directors of the corporation is hereby authorized to
determine or alter the rights, preferences, privileges and restrictions granted
to or imposed on any wholly unissued class or series of Preferred Stock and to
fix and determine the number of shares and the designation of any series of
wholly unissued Preferred Stock.

 

No holder of any of the shares of any class of the
corporation shall be entitled as of right to subscribe for, purchase, or
otherwise acquire any shares of any class of the corporation which the
corporation proposes to issue or any rights or options which the corporation
proposes to grant for the purchase of shares of any class of the corporation or
for the purchase of any shares, bonds, securities, or obligations of the
corporation

 

1

 

which are convertible into or exchangeable for, or which carry any
rights, to subscribe for, purchase, or otherwise acquire shares of any class of
the corporation; and any and all of such shares, bonds, securities, or
obligations of the corporation, whether now or hereafter authorized or created,
may be issued, or may be reissued or transferred if the same have been reacquired and have treasury status, and any
and all of such rights and options may be granted by the Board of Directors to
such persons, firms, corporations, and associations, and for such lawful
consideration, and on such terms, as the Board of Directors in its discretion
may determine, without first offering the same, or any thereof, to any said
holder.

 

FOURTH:  The governing board of the corporation shall
be styled as a “Board of Directors”, and any member of said Board shall be
styled as a “Director.”

 

The number of members constituting the first Board of
Directors of the corporation is two (2); and the name and the post office box
or street address, either residence or business, of each of said members are as
follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  Donald K. McGhan

  	
   

  	
  3800 Howard Hughes Parkway, Suite 900

  Las Vegas, NV 89109

  
	
   

  	
   

  	
   

  
	
  Michael D. Farney

  	
   

  	
  3800 Howard Hughes Parkway, Suite 900

  Las Vegas, NV 89109

  

 

The number of directors of the corporation may be
increased or decreased in the manner provided in the Bylaws of the corporation;
provided, that the number of directors shall never be less than one. In the
interim between election of directors by stockholders entitled to vote, all
vacancies, including vacancies caused by an increase in the number of directors
and including vacancies resulting from the removal of directors by the
stockholders entitled to vote which
are not filled by said stockholders, may be filled by the remaining
directors, though less than a quorum.

 

FIFTH:  The name and the post office box or street
address, either residence or business, of the incorporator signing these
Articles of Incorporation are as follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  M. Ryan

  	
   

  	
  5670 Wilshire Blvd., Suite 750

  
	
   

  	
   

  	
  Los Angeles, CA 90036

  

 

2

 

SIXTH:  The corporation shall have perpetual
existence.

 

SEVENTH:  The personal liability of the directors of
the corporation is hereby eliminated to the fullest extent permitted by the
General Corporation Law of the State of Nevada, as the same may be amended and
supplemented.

 

EIGHTH:
The corporation shall, to the fullest extent permitted by the General
Corporation Law of the State of Nevada, as the same may be amended and
supplemented, indemnify any and all persons whom it shall have power to
indemnify under said Law from and against any and all of the expenses,
liabilities, or other matters referred to in or covered by said Law, and the
indemnification provided for herein shall not be deemed exclusive of any other
rights to which those indemnified may be entitled under any Bylaw, agreement,
vote of stockholders or disinterested directors or otherwise, both as to action
in his official capacity and as to action in another capacity while holding
such office, and shall continue as to a person who has ceased to be a director,
officer, employee, or agent and shall inure to the benefit of the heirs,
executors, and administrators of such a person.

 

NINTH:  The corporation may engage in any lawful
activity.

 

TENTH:  The corporation reserves the right to amend,
alter, change, or repeal any provision contained in these Articles of
Incorporation in the manner now or hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this
reservation.

 

IN WITNESS WHEREOF, I do hereby execute these Articles
of Incorporation on June 3, 1993.

 

	
   

  	
  /s/ M. Ryan

  
	
   

  	
  M. Ryan, Incorporator

  

 

3

 

	
  STATE OF CALIFORNIA

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
  COUNTY OF LOS ANGELES

  	
  )

  	
   

  

 

On June 3, 1993, before me, Jillaine E. Costelloe,
Notary Public, personally appeared M. Ryan, personally known to me to be the
person whose name is subscribed to the within instrument and acknowledged to me
that she executed the same in her authorized capacity, and that by her
signature on the instrument the person or the entity upon behalf of which the
person acted, executed the instrument.

 

WITNESS my hand and official seal.

 

[SEAL]

 

	
   

  	
   

  
	
  Signature

  	
  /s/ Jillaine E. Costelloe

  	
   

  

 

4

 

Annex 2

 

 

BYLAWS

 

OF

 

FLOWMATRIX CORPORATION

A Nevada Corporation

 

ARTICLE I

OFFICES

 

SECTION 1. 
PRINCIPAL EXECUTIVE OFFICE. The principal office of the Corporation is
hereby fixed in 3800 Howard Hughes Parkway, #900, Las Vegas, in the State of
Nevada.

 

SECTION 2. 
OTHER OFFICES. Branch or subordinate offices may be established by the
Board of Directors at such other places as may be desirable.

 

ARTICLE II

SHAREHOLDERS

 

SECTION 1. 
PLACE OF MEETING. Meetings of shareholders shall be held either at the
principal executive office of the corporation or at any other location within
or without the State of Nevada which may be designated by written consent of
all persons entitled to vote thereat.

 

SECTION 2. 
ANNUAL MEETINGS. The annual meeting of shareholders shall be held on such day and at such time as may be
fixed by the Board; provided,
however, that should said day fall upon
a Saturday, Sunday, or legal holiday observed by the Corporation at its
principal executive office, then any such meeting of shareholders shall be held
at the same time and place on the next day thereafter ensuing which is a full
business day. At such meetings, directors shall be elected by plurality vote
and any other proper business may be transacted.

 

1

 

SECTION 3. 
SPECIAL MEETINGS.  Special
meetings of the shareholders may be called for any purpose or purposes
permitted under Chapter 78 of Nevada Revised Statutes at any time by the Board,
the Chairman of the Board, the President, or by the shareholders entitled to
cast not less than twenty-five percent (25%) of the votes at such meeting. Upon
request in writing to the Chairman of the Board, the President, any
Vice-President or the Secretary, by any person or persons entitled to call a
special meeting of shareholders, the Secretary shall cause notice to be given
to the shareholders entitled to vote, that a special meeting will be held not
less than thirty-five (35) nor more than sixty (60) days after the date of the
notice.

 

SECTION 4. 
NOTICE OF ANNUAL OR SOCIAL MEETING. Written notice of each annual
meeting of shareholders shall be given not less than ten (10) nor more than
sixty (60) days before the date of the meeting to each shareholder entitled to
vote thereat. Such notice shall state
the place, date and hour of the
meeting and (i) in the case of a special meeting the general nature of
the business to be transacted, or (ii) in the case of the annual meeting, those
matters which the Board, at the time of the mailing of the notice, intends to
present for action by the shareholders, but, any proper matter may be presented
at the meeting for such action. The notice of any meeting at which directors
are to be elected shall include the names of the nominees intended, at the time
of the notice, to be presented by management for election.

 

Notice of a shareholders’ meeting shall be given either personally or
by mail or, addressed to the shareholder at the address of such shareholder
appearing on the books of the corporation or if no such address appears or is
given, by publication at least once in a newspaper of general circulation in
Clark County, Nevada.

 

2

 

An affidavit of mailing of any notice, executed by the Secretary, shall
be prima facie evidence of the giving of the notice.

 

SECTION 5. 
QUORUM. A majority of the shares entitled to vote, represented in person
or by proxy, shall constitute a quorum at any meeting of shareholders. If a
quorum is present, the affirmative vote of the majority of shareholders
represented and voting at the meeting on any matter, shall be the act of the
shareholders. The shareholders present at a duly called or held meeting at
which a quorum is present may continue to do business until adjournment,
notwithstanding withdrawal of enough shareholders to leave less than a quorum,
if any action taken (other than adjournment) is approved by at least a majority
of the number of shares required as noted above to constitute a quorum.
Notwithstanding the foregoing, (1) the sale, transfer and other disposition of
substantially all of the corporation’s properties and (2) a merger or
consolidation of the corporation shall require the approval by an affirmative
vote of not less than two-thirds (2/3) of the corporation’s issued and
outstanding shares.

 

SECTION 6. 
ADJOURNED MEETING AND NOTICE THEREOF. Any shareholders meeting, whether
or not a quorum is present, may be adjourned from time to time. In the absence
of a quorum (except as provided in Section 5 of this Article), no other
business may be transacted at such meeting.

 

It shall not be necessary to give any notice of the
time and place of the adjourned meeting or of the business to be transacted
thereat, other than by announcement at the meeting at which such adjournment is
taken; provided, however when a shareholders meeting is adjourned for more than
forty-five (45) days or, if after adjournment a new record date is fixed for
the adjourned meeting, notice of the adjourned meeting shall be 

 

3

 

given as in the case of an original meeting.

 

SECTION 7.  VOTING. The shareholders entitled to notice
of any meeting or to vote at such meeting shall be only persons in whose name
shares stand on the stock records of the corporation on the record date
determined in accordance with Section 8 of this Article.

 

SECTION 8.  RECORD DATE. The Board may fix, in advance,
a record date for the determination of the shareholders entitled to notice of a
meeting or to vote or entitled to receive payment of any dividend or other distribution,
or any allotment of rights, or to exercise rights in respect to any other
lawful action. The record date so fixed shall be not more than sixty (60) nor
less than ten (10) days prior to the date of the meeting nor more than sixty
(60) days prior to any other action. When a record date is so fixed, only
shareholders of record on that date are entitled to notice of and to vote at
the meeting or to receive the dividend, distribution, or allotment of rights,
or to exercise of the rights, as the case may be, notwithstanding any transfer
of shares on the books of the corporation after the record date. A
determination of shareholders of record entitled to notice of or to vote at a
meeting of shareholders shall apply to any adjournment of the meeting unless
the Board fixes a new record date for the meeting. The Board shall fix a new
record date if the meeting is adjourned for more than forty-five (45) days.

 

If no record date is fixed
by the Board, the record date f or determining shareholders entitled to notice
of or to vote at a meeting of shareholders shall be the close of business on
the business day next preceding the day on which notice is given or, if notice
is waived, at the close of business on the business day next preceding the day
on which notice is given. The record date for determining shareholders for any
purpose

 

4

 

other than as set in this Section 8 or Section 10 of this Article shall
be at the close of the day on which the Board adopts the resolution relating
thereto, or the sixtieth day prior to the date of such other action, whichever
is later.

 

SECTION 9. 
CONSENT OF ABSENTEES. The transactions of any meeting of shareholders,
however called and noticed, and wherever held, are as valid as though had at a
meeting duly held after regular call and notice, if a quorum is present either
in person or by proxy, and if, either before or after the meeting, each of the
persons entitled to vote not present in person or by proxy, signs a written
waiver of notice, or a consent to the holding of the meeting or an approval of
the minutes thereof. All such waivers, consents or approvals shall be filed
with the corporate records or made a part of the minutes of the meeting.

 

SECTION 10. 
ACTION WITHOUT MEETING. Any action which, under any provision of law,
may be taken at any annual or special meeting of shareholders, may be taken
without a meeting and without prior notice if a consent in writing, setting
forth the actions to taken, shall be signed by the holders of outstanding
shares having not less than the minimum number of votes that would be necessary
to authorize or take such action at a meeting at which all shares entitled to
vote thereon were present and voted. Unless a record date for voting purposes
be fixed as provided in Section 8 of this Article, the record date for
determining shareholders entitled to give consent pursuant to this Section 10,
when no prior action by the Board has been taken, shall be the day on which the
first written consent is given.

 

SECTION 11. 
PROXIES. Every person entitled to vote shares has the right to do so
either in person or by one or more persons authorized by a written proxy
executed by such shareholder and filed with the Secretary not less than five
(5) 

 

 

5

 

days prior to the meeting.

 

SECTION 12. 
CONDUCT OF MEETING.  The
President shall preside as Chairman at all meetings of the shareholders, unless
another Chairman is selected. The Chairman shall conduct each such meeting in a
businesslike and fair manner, but shall not be obligated to follow any
technical, formal or parliamentary rules or principles of procedure. The
Chairman’s ruling on procedural matters shall be conclusive and binding on all
shareholders, unless at the time of ruling a request for a vote is made by the
shareholders entitled to vote and represented in person or by proxy at the
meeting, in which case the decision of a majority of such shares shall be
conclusive and binding on all shareholders without limiting the generality of
the foregoing, the Chairman shall have all the powers usually vested in the
chairman of a meeting of shareholders.

 

ARTICLE III

DIRECTORS

 

SECTION 1.  POWERS. 
Subject to limitation of the Articles of Incorporation, of these bylaws,
and of actions required to be approved by the shareholders, the business and
affairs of the corporation shall be managed and all corporate powers shall be
exercised by or under the direction of the Board. The Board may, as permitted
by law, delegate the management of the day-to-day operation of the business of
the corporation to a management company or other persons or officers of the
corporation provided that the business and affairs of the corporation shall be
managed and all corporate powers shall be exercised under the ultimate
direction of the Board. Without prejudice to such general powers, it is hereby
expressly declared that the Board shall have the following powers:

 

(a)  To select and remove all of the officers, agents

 

6

 

and employees of the corporation, prescribe the powers and duties for
them as may not be inconsistent
with law, or with the Articles of Incorporation or by these bylaws, fix their
compensation, and require from them, if necessary, security for faithful
service.

 

(b)  To conduct, manage, and control the affairs
and business of the corporation and to make such rules and regulations
therefore not inconsistent with law, with the Articles of Incorporation or
these bylaws, as they may deem best.

 

(c)  To adopt, make and use a corporate seal, and
to prescribe the forms of certificates of stock and to alter the form of such
seal and such of certificates from time to time in their judgment they deem
best.

 

(d)  To authorize the issuance of shares of stock
of the corporation from time to time, upon such terms and for such
consideration as may be lawful.

 

(e)  To borrow money and incur indebtedness for
the purposes of the corporation, and to cause to be executed and delivered
therefor, in the corporate name, promissory notes, bonds, debentures, deeds of
trust, mortgages, pledges, hypothecation or other evidence of debt and
securities therefor.

 

SECTION 2.  NUMBER AND QUALIFICATION OF DIRECTORS. The
authorized number of directors shall be two (2)until changed by amendment of
the Articles or by a bylaw duly adopted by approval of the outstanding shares
amending this Section 2.

 

SECTION 3.  ELECTION AND TERM OF OFFICE. The directors
shall be elected at each annual meeting of shareholders but if any such annual
meeting is not held or the directors are not

 

7

 

elected thereat, the directors may be elected at any special meeting of
shareholders held for that purpose. Each director shall hold office until the
next annual meeting and until a successor has been elected and qualified.

 

SECTION 4. 
CHAIRMAN OF THE BOARD. At the regular meeting of the Board, the first
order of business will be to select, from its members, a Chairman of the Board
whose duties will be to preside over all board meetings until the next annual
meeting and until a successor has been chosen.

 

SECTION 5. 
VACANCIES. Any director may resign effective upon giving written notice
to the Chairman of the Board, the President, Secretary, or the Board, unless
the notice specified a later time for the effectiveness of such resignation. If
the resignation is effective at a future time, a successor may be elected to
take office when the resignation becomes effective.

 

Vacancies in the Board including those existing as a
result of a removal of a director, shall be filled by the shareholders at a
special meeting, and each director so elected shall hold office until the next
annual meeting and until such director’s successor has been elected and
qualified.

 

A vacancy or vacancies in the Board shall be deemed to
exist in case of the death, resignation or removal of any director or if the
authorized number of directors be increased, or if the shareholders fail, at
any annual or special meeting of shareholders at which any directors are
elected, to elect the full authorized number of directors to be voted for the
meeting.

 

The Board may declare vacant the office of a director
who has been declared of unsound mind or convicted of a felony by an order of
court.

 

8

 

The shareholders may elect a director or directors at
any time to fill any vacancy or vacancies. Any such election by written consent
requires the consent of a majority of the outstanding shares entitled to vote.
If the Board accepts the resignation of a director tendered to take effect at a
future time, the shareholder shall have power to elect a successor to take
office when the resignation is to become effective.

 

No reduction of the authorized number of directors
shall have the effect of removing any director prior to the expiration of the
director’s term of office.

 

SECTION 6. 
PLACE OF MEETING. Any meeting of the Board shall be held at any place
within or without the State of Nevada which has been designated from time to
time by the Board. In the absence of such designation meetings shall be held at
the principal executive office of the corporation.

 

SECTION 7. 
REGULAR MEETINGS. Immediately following each annual meeting of
shareholders the Board shall hold a regular meeting for the purpose of
organization, selection of a Chairman of the Board, election of officers, and
the transaction of other business. Call and notice of such regular meeting is
hereby dispensed with.

 

SECTION 8. 
SPECIAL MEETINGS. Special meetings of the Board for any purposes may be
called at any time by the Chairman of the Board, the President, or the
Secretary or by any two directors.

 

Special meetings of the Board shall be held upon at
least four (4) days written notice or forty-eight (48) hours notice given
personally or by telephone, telegraph, telex or other similar means of
communication. Any such notice shall be

 

9

 

addressed or delivered to each director at such director’s address as
it is shown upon the records of the Corporation or as may have been given to
the Corporation by the director for the purposes of notice.

 

SECTION 9.  QUORUM. A majority of the authorized number
of directors constitutes a quorum of the Board for the transaction of business,
except to adjourn as hereinafter provided. Every act or decision done or made
by a majority of the directors present at a meeting duly held at which a quorum
is present shall be regarded as the act of the Board, unless a greater number
be required by law or by the Articles of Incorporation. A meeting at which a
quorum is initially present may continue to transact business notwithstanding
the withdrawal of directors, if any action taken is approved by at least a
majority of the number of directors required as noted above to constitute a
quorum for such meeting.

 

SECTION 10.  PARTICIPATION IN MEETINGS BY CONFERENCE
TELEPHONE. Members of the Board may participate in a meeting through use of
conference telephone or similar communications equipment, so long as all
members participate in such meeting can hear one another.

 

SECTION 11.  WAIVER OF NOTICE. The transactions of any
meeting of the Board, however called and noticed or wherever held, are as valid
as though had at a meeting duly held after regular call and notice if a quorum
be present and if, either before or after the meeting, each of the directors
not present signs a written waiver of notice, a consent to holding such meeting
or an approval of the minutes thereof. All such waivers, consents or approvals
shall be filed with the corporate records or made part of the minutes of the
meeting.

 

SECTION 12.  ADJOURNMENT. A majority of the directors

 

10

 

present, whether or not a quorum is present,
may adjourn any directors' meeting to another time and place.   Notice of the time and place of holding an
adjourned meeting need not be given to absent directors if the time and place
be fixed at the meeting adjourned. If the meeting is adjourned for more than
forty-eight (48) hours, notice of any adjournment to another time or place
shall be given prior to the time of the adjourned meeting to the directors who
were not present at the time of adjournment.

 

SECTION 13.  FEES AND COMPENSATION. Directors and members
of committees may receive such compensation, if any, for their services, and
such reimbursement for expenses, as may be fixed or determined by the Board.

 

SECTION 14.  ACTION WITHOUT MEETING. Any action required
or permitted to be taken by the Board may be taken without a meeting if all
members of the Board shall individually or collectively consent in writing to
such action. Such consent or consents shall have the same effect as a unanimous
vote of the Board and shall be filed with the minutes of the proceedings of the
Board.

 

SECTION 15.  COMMITTEES. The board may appoint one or
more committees, each consisting of two or more directors, and delegate to such
committees any of the authority of the Board except with respect to:

 

(a)  The approval of any action which requires
shareholders’ approval or approval of the outstanding shares;

 

(b)  The filling of vacancies on the Board or on
any committees;

 

(c)  The fixing of compensation of the directors
for serving on the Board or on any committee;

 

(d)  The amendment or repeal of bylaws or the
adoption of new bylaws;

 

11

 

(e)  The
amendment or repeal of any resolution of the Board which by its express terms
is not so amendable or repealable by a committee of the board;

 

(f)  A
distribution to the shareholders of the Corporation;

 

(g)  The
appointment of other committees of the Board or the members thereof.

 

Any such committee must be appointed by resolution
adopted by a majority of the authorized number of directors and may be
designated an Executive Committee or by such other name as the Board shall
specify. The Board shall have the power to prescribe the manner in which
proceedings of any such committee shall be conducted. Unless the Board or such
committee shall otherwise provide, the regular or special meetings and other
actions of any such committee shall be governed by the provisions of this
Article applicable to meetings and actions of the Board. Minutes shall be kept
of each meeting of each committee.

 

ARTICLE IV

OFFICERS

 

SECTION 1. 
OFFICERS. The officers of the corporation shall be a president, a
secretary and a treasurer. The corporation may also have, at the discretion of
the Board, one or more vice-presidents, one or more assistant vice presidents,
one or more assistant secretaries, one or more assistant treasurers and such
other officers as may be elected or appointed in accordance with the provisions
of Section 3 of this Article.

 

SECTION 2. 
ELECTION. The officers of the corporation, except such officers as may
be elected or appointed in accordance with the provisions of Section 3 or
Section 5 of this

 

12

Article, shall be chosen annually by, and shall serve at the pleasure
of, the Board, and shall hold their respective offices until their resignation,
removal or other disqualification from service, or until their respective
successors shall be elected.

 

SECTION 3.  SUBORDINATE OFFICERS.  The Board may elect, and may empower the
President to appoint, such other officers as the business of the corporation
may require, each of whom shall hold office for such period, have such
authority, and perform such duties as are provided in these bylaws or as the
Board, or the President may from time to time direct.

 

SECTION 4.  REMOVAL AND RESIGNATION.  Any officer may be removed, either with or
without cause, by the Board of Directors at any time, or, except in the case of
an officer chosen by the Board, by any officer upon whom such power of removal
may be conferred by the Board.

 

Any officer may resign at
any time by giving written notice to the corporation.  Any such resignation shall take effect at the date of the receipt
of such notice or at any later time specified therein.  The acceptance of such resignation shall be
necessary to make it effective.

 

SECTION 5.  VACANCIES. 
A vacancy of any office because of death, resignation, removal,
disqualification, or any other cause shall be filled in the manner prescribed
by these bylaws for the regular election or appointment to such office.

 

SECTION 6.  PRESIDENT. 
The President shall be the chief executive officer and general manager
of the corporation.  The President shall
preside at all meetings of the shareholders and, in the absence of the Chairman
of the Board at all meetings of the Board. 
The president has the general powers and duties of management usually
vested in the chief executive officer and the 

 

 

13

 

general manager of a corporation and such other powers and duties as
may be prescribed by the Board.

 

SECTION 7.  VICE PRESIDENTS.  In the absence or disability of the President, the Vice
Presidents in order of their rank as fixed by the Board or, if not ranked, the
Vice President designated by the Board, shall perform all the duties of the
President, and when so acting shall have all the powers of, and be subject to
all the restrictions upon the President. 
The Vice Presidents shall have such other powers and perform such other
duties as from time to time may be prescribed for them respectively by the
President or the Board.

 

SECTION 8.  SECRETARY. 
The Secretary shall keep or cause to be kept, at the principal executive
offices and such other place as the Board may order, a book of minutes of all
meetings of shareholders, the Board, and its committees, with the time and
place of holding, whether regular or special, and, if special, how authorized,
the notice thereof given, the names of those present at Board and committee
meetings, the number of shares present or represented at shareholders’
meetings, and proceedings thereof.  The
Secretary shall keep, or cause to be kept, a copy of the bylaws of the
corporation at the principal executive office of the corporation.

 

The Secretary shall keep,
or cause to be kept, at the principal executive office, a share register, or a
duplicate share register, showing the names of the shareholders and their
addresses, the number and classes of shares held by each, the number and date
of certificates issued for the same, and the number and date of cancellation of
every certificate surrendered for cancellation.

 

The Secretary shall give,
or cause to be given, notice of all the meetings of the shareholders and of the
Board and any

 

14

 

committees thereof required by these bylaws
or by law to be given, shall keep the seal of the corporation in safe custody,
and shall have such other powers and perform such other duties as may be
prescribed by the Board.

 

SECTION 9.  TREASURER. 
The Treasurer is the chief financial officer of the corporation and
shall keep and maintain, or cause to be kept and maintained, adequate and
correct accounts of the properties and financial transactions of the
corporation, and shall send or cause to be sent to the shareholders of the
corporation such financial statements and reports as are by law or these bylaws
required to be sent to them.

 

The Treasurer shall deposit
all monies and other valuables in the name and to the credit of the corporation
with such depositories as may be designated by the Board.  The Treasurer shall disburse the funds of
the corporation as may be ordered by the Board, shall render to the President
and directors, whenever they request it, an account of all transactions as
Treasurer and of the financial conditions of the corporation, and shall have
such other powers and perform such other duties as may be prescribed by the
Board.

 

SECTION 10.  AGENTS. 
The President, any Vice-President, the Secretary or Treasurer may
appoint agents with power and authority, as defined or limited in their
appointment, for and on behalf of the corporation to execute and deliver, and
affix the seal of the corporation thereto, to bonds, undertakings,
recognizance, consents of surety or other written obligations in the nature
thereof and any said officers may remove any such agent and revoke the power
and authority given to him.

 

15

 

ARTICLE V

OTHER PROVISIONS

 

SECTION 1. 
DIVIDENDS.  The Board may from
time to time declare, and the corporation may pay, dividends on its outstanding
shares in the manner and on the terms and conditions provided by law, subject
to any contractual restrictions on which the corporation is then subject.

 

SECTION 2. 
INSPECTION OF BY-LAWS.  The
Corporation shall keep in its Principal executive Office the original or a copy
of these bylaws as amended to date which shall be open to inspection to shareholders
at all reasonable times during office hours. 
If the Principal Executive Office of the corporation is outside the
State of Nevada and the Corporation has no principal business office in such
State, it shall upon the written notice of any shareholder furnish to such
shareholder a copy of these bylaws as amended to date.

 

SECTION 3. 
REPRESENTATION OF SHARES OF OTHER CORPORATIONS.  The President or any other officer or
officers authorized by the Board or the President are each authorized to vote,
represent, and exercise on behalf of the Corporation all rights incident to any
and all shares of any other corporation or corporations standing in the name of
the Corporation.  The authority herein
granted may be exercised either by any such officer in person or by any other
person authorized to do so by proxy or power of attorney duly executed by said
officer.

 

ARTICLE VI

INDEMNIFICATION

 

SECTION 1.  INDEMNIFICATION IN
ACTIONS BY THIRD PARTIES.  Subject to
the limitations of law, if any, the corporation shall have the power to
indemnify any director,

 

16

 

officer, employee and agent of the corporation who was or is a party or
is threatened to be made a party to any proceeding (other than an action by or
in the right of to procure a judgement in its favor) against expenses,
judgments, fines, settlements and other amounts actually and reasonably
incurred in connection with such proceeding, provided that the Board shall find
that the director, officer, employee or agent acted in good faith and in a
manner which such person reasonably believed in the best interests of the
corporation and, in the case of criminal proceedings, had no reasonable cause
to believe the conduct was unlawful. 
The termination of any proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere shall not, of itself create a
presumption that such person did not act in good faith and in a manner which
the person reasonably believed to be in the best interests of the corporation
or that such person had reasonable cause to believe such person’s conduct was
unlawful.  

 

SECTION 2. 
INDEMNIFICATION IN ACTIONS BY OR ON BEHALF OF THE CORPORATION.  Subject to the limitations of law, if any,
the Corporation shall have the power to indemnify any director, officer,
employee and agent of the corporation who was or is threatened to be made a
party to any threatened, pending or completed legal action by or in the right
of the Corporation to procure a judgement in its favor, against expenses
actually and reasonable incurred by such person in connection with the defense
or settlement, if the Board of Directors determine that such person acted in
good faith, in a manner such person believed to be in the best interests of the
Corporation and with such care, including reasonable inquiry, as an ordinarily
prudent person would use under similar circumstances.

 

SECTION 3. 
ADVANCE OF EXPENSES.  Expenses
incurred in defending any proceeding may be advanced by the Corporation prior
to the final disposition of such proceeding upon receipt

 

17

 

of an undertaking by or on behalf of the officer, director, employee or
agent to repay such amount unless it shall be determined ultimately that the
officer or director is entitled to be indemnified as authorized by this
Article.

 

SECTION 4. 
INSURANCE.  The corporation shall
have power to purchase and maintain insurance on behalf of any officer,
director, employee or agent of the Corporation against any liability asserted
against or incurred by the officer, director, employee or agent in such
capacity or arising out of such person’s status as such whether or not the
corporation would have the power to indemnify the officer, or director,
employee or agent against such liability under the provisions of this Article.

 

ARTICLE VII

AMENDMENTS

 

These bylaws may be altered,
amended or repealed either by approval of a majority of the outstanding shares
entitled to vote or by the approval of the Board; provided however that after
the issuance of shares, a bylaw specifying or changing a fixed number of
directors or the maximum or minimum number or changing from a fixed to a
flexible Board or vice versa may only be adopted by the approval by an
affirmative vote of not less than two-thirds of the corporation’s issued and
outstanding shares entitled to vote.

 

18

 

CERTIFICATE OF PRESIDENT

 

THIS IS TO CERTIFY that I am the duly elected,
qualified and acting president of FLOWMATRIX CORPORATION and that the above and
foregoing Bylaws, constituting a true original copy were duly adapted as the
Bylaws of said corporation on JUNE 16, 1993, by the Directors of said
corporation. 

 

IN WITNESS WHEREOF, I have hereunto set my hand.  

Dated:  JUNE
15, 1993

 

	
   

  	
  /s/ DONALD K. McGHAN

  
	
   

  	
  President

  
	
   

  	
  DONALD K. McGHAN

  

 

19

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

FLOWMATRIX CORPORATION

 

BY UNANIMOUS WRITTEN CONSENT

 

The undersigned, being all of the Directors of
FLOWMATRIX CORPORATION, a Delaware corporation (the “Company”), and
acting pursuant to Section 78.315 of the Nevada Revised Statutes, hereby
consent in writing to the adoption of the following actions in lieu of a
special meeting of the Board of Directors:

 

GUARANTEE AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED Corporation (“Inamed”) intends
to enter into that certain Credit Agreement dated as of February 1, 2000 (the “Credit
Agreement”), by and among Inamed, the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co. Inc., as sole lead arranger and sole book manager (the
“Arranger”) and the Administrative Agent;

 

WHEREAS, pursuant to the terms of the Credit Agreement,
the Company, as a subsidiary of Inamed, is required to guaranty all of the
Borrowers’ obligations under the Credit Agreement (the “Obligations”, as
defined under the Credit Agreement), by entering into that certain Guarantee
and Collateral Agreement (the “Guarantee and Collateral Agreement”)
dated of even date with the Credit Agreement, a copy of which has been
presented to the Board;

 

WHEREAS, pursuant to the terms and conditions of the
Credit Agreement, the Company, as a subsidiary of Inamed, is required to secure
payment and performance of the Obligations, also by entering into that same
Guarantee and Collateral Agreement (as defined above), whereby the Company
would grant to Administrative Agent, for the benefit of the Administrative
Agent and the Lenders, a perfected, first priority Lien on all of its right,
title and interest in all of its personal property, including but not limited
to all capital stock of its domestic

 

 

subsidiaries, 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licences, material
property, etc.

 

WHEREAS, the Board of Directors of the Company has
determined that in order to give effect to the Credit Agreement, it is
advisable and in the best interests of the Company that the Company enter into
the Guarantee and Collateral Agreement and each of the transactions
contemplated thereby;

 

NOW, THEREFORE, BE IT RESOLVED, that the Board of
Directors deems it advisable and in the best interests of the Company to enter
into the Guarantee and Collateral Agreement and any other documents
contemplated thereby and such documents hereby are authorized and approved,
with such changes thereto as the Chairman, the President, any Vice President or
the Secretary of the Company (the “proper officers”) may approve, such
approval to be conclusively evidenced by such officer’s or officers’ execution
and delivery thereof;

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized, empowered and directed, in
the name and on behalf of the Company, to enter into the Guarantee and
Collateral Agreement, substantially on the terms and conditions as presented
and described to the Board, with such changes thereto as the proper officers
may approve, such approval to be conclusively evidenced by such officer’s or
officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized and directed to enter into
such other agreements, documents, promissory notes, and instruments with
respect to any of the foregoing, in such form and on such terms and conditions
as may be agreed to by the proper officers of the Company, Administrative Agent
and the Lenders, and to take such other actions with respect to the foregoing
as may be required by Administrative Agent and the Lenders; and that the proper
officers of the Company be, and each of them hereby is, authorized, directed
and empowered, in the name and on behalf of the Company, to execute and deliver
such other agreements, documents, promissory notes, deeds of trust, mortgages
and other instruments and to perform all other acts as such officers shall
approve in connection with any of the above, the execution of such agreements,
documents, promissory notes and other instruments or the taking of any such
actions to be conclusive evidence of such approval.

 

2

 

GENERAL AUTHORIZATIONS

 

RESOLVED, that the officers of the Company be, and
each of them hereby is, authorized, empowered and directed, in the name and on
behalf of the Company, to do or cause to be done all such other acts or things,
and to execute and deliver, or cause to be executed and delivered, all such
other documents, instruments, agreements, notes, undertakings, guarantees and
certificates of any kind and nature whatsoever, as such officer or officers may
deem necessary or appropriate to effectuate or carry out the purposes and
intent of the foregoing resolutions; all such other actions to be performed in
such manner, and all such other documents, instruments, agreements, notes,
undertakings, guarantees and certificates to be executed and delivered in such
form, as the officer or officers performing or executing the same shall approve,
such officer’s or officers’ approval thereof to be conclusively evidenced by
the performance of any such other action or the execution and delivery of any
such other documents, instruments, agreements, notes, undertakings and
certificates; and

 

RESOLVED FURTHER, that all acts and things previously
done by any of the officers of the Company, on or prior to the date hereof, in
the name and on behalf of the Company, in connection with the transactions
contemplated by the foregoing resolutions, are in all respects ratified,
approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company.

 

* * *

 

3

 

This Unanimous Written Consent may be executed in one
or more counterparts, each of which shall be considered as an Original.  The Secretary of the Company shall file this
Unanimous Written Consent in the minute book of the Company and it shall become
part of the records of the Company.

 

	
  Dated: 
  February 1, 2000

  	
   

  
	
   

  	
  /s/ Richard G. Babbitt

  
	
   

  	
  Richard G. Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  

 

4

 

Annex 4

 

 

SECRETARY
OF STATE

 

 

STATE OF
NEVADA

 

CERTIFICATE OF EXISTENCE

WITH STATUS IN GOOD STANDING

 

I, DEAN HELLER, the duly elected and qualified Nevada
Secretary of State, do hereby certify that I am, by the laws of said State, the
custodian of the records relating to filings by corporations, limited-liability
companies, limited partnerships, limited-liability partnerships and business
trusts pursuant to Title 7 of the Nevada Revised Statutes which are either
presently in a status of good standing or were in good standing for a time
period subsequent of 1976 and am the proper officer to execute this
certificate.

 

I further certify that the records of the Nevada
Secretary of State, at the date of this certificate, evidence, FLOWMATRIX
CORPORATION, as a corporation duly organized under the laws of
Nevada and existing under and by virtue of the laws of the State of Nevada
since June 4, 1993, and is in good standing in this state.

 

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the Great Seal of State, at my office, in Carson City, Nevada, on
January 21, 2000.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Dean Heller

  
	
   

  	
   

  	
  Secretary of State

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Certification Clerk

  
	
   

  	
   

  	
   

  

 

 

INAMED DEVELOPMENT
COMPANY

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made to the Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Inamed Corporation
(the “Borrower”), the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
First Union National Bank, as the Administrative Agent (in such capacity, the “Administrative
Agent”) and GMAC Commercial Credit LLC, as Documentation Agent (in such
capacity, the “Documentation Agent”), providing for $107,500,000 in
loans.  Capitalized terms used herein and
not otherwise defined shall have the meanings assigned in the Credit
Agreement.  This certificate is being
delivered pursuant to Section 5.1(g) of the Credit Agreement.

 

I, David E. Bamberger, hereby certify that I am the
Secretary of INAMED DEVELOPMENT COMPANY (the “Company”), and as such
have access to the Company’s corporate records and am familiar with the matters
therein contained and herein certified, and that:

 

1.             Attached
hereto as Annex 1 is a true, correct and complete copy of the Articles of Incorporation
of the Company, as filed with the Secretary of State of the State of California
on September 11, 1986.

 

2.             Attached
hereto as Annex 2 is a true, correct and complete copy of the By-laws of the
Company as presently in effect on and as of the date hereof, which By-laws are
in full force and effect in said form without modification, amendment,
rescission or repeal in any respect.

 

3.             Attached
hereto as Annex 3 is a true, correct and complete copy of resolutions adopted
by unanimous written consent in lieu of a meeting in accordance with applicable
laws and the Articles of Incorporation and By-laws of the Company, and such
resolutions (i) were duly adopted by the Board of Directors of the Company and
are in full force and effect on and as of the date hereof, not having been in
any way amended, altered or repealed, and (ii) constitute the only resolutions
of the Board of Directors of the Company relating to the subject matter of the
Credit Agreement, the other Loan Documents and the transactions contemplated
thereby.

 

4.             Attached
hereto as Annex 4 is (i) a true, correct and complete copy of a certificate
from the Office of the Secretary of State of the State of California indicating
that the Company is authorized to exercise all its corporate powers, rights and
privileges and is in good legal standing and (ii) a certificate from the
Franchise Tax Board of the State of California indicating that the Company is
in good standing and has no unpaid liability.

 

 

5.             There
are no consents, licenses or approvals required in connection with the
execution, delivery and performance by the Company or the validity and
enforceability against the Company of the Loan Documents to which it is a
party.

 

6.             The
following persons are duly qualified and acting officers of the Company, each
of whom is authorized to sign any of the Loan Documents to which the Company is
a party, and each of whom is duly elected to the office set forth opposite his
respective name:  the signature appearing
opposite the name of each such officer is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  PRESIDENT

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/ David E. Bamberger

  

 

IN WITNESS WHEREOF, the undersigned has executed this
Secretary’s Certificate as of the 1st day of February, 2000.

 

	
   

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E. Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K. Reich, President of the Company, hereby
certify that David E. Bamberger is the duly elected Secretary of the Company
and that the signature appearing above is his genuine signature.

 

	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  President

  

 

3

 

Annex 1

 

 

STATE OF
CALIFORNIA

 

[LOGO]

 

SECRETARY
OF STATE

 

CERTIFICATE OF FILING

 

I, BILL JONES, Secretary of State of the State of California, hereby
certify:

 

That on the 11th day of September, 1986, INAMED DEVELOPMENT
COMPANY became incorporated under the laws of the State of
California by filing its Articles of Incorporation in this office and that said
Articles of Incorporation were duly recorded.

 

Further, that said Articles of Incorporation constitutes the only
document on file in this office, that no documents amendatory and/or
supplementary thereto (including Agreements of Merger, Restated Articles of
Incorporation and Certificates of Determination of Preferences) have been filed
to date.

 

 

 

	
   

  	
  IN WITNESS WHEREOF, I execute this certificate and
  affix the Great Seal of the State of California this day of January 31, 2000.

  
	
   

  	
   

  
	
  [SEAL]

  	
  /s/ BILL JONES

  
	
   

  	
  BILL JONES

  
	
   

  	
  Secretary of State

  

 

 

STATE OF
CALIFORNIA

 

[LOGO]

 

SECRETARY
OF STATE

 

I, BILL JONES, Secretary of State of the State of
California, hereby certify:

 

That the attached
transcript of 2 page(s) was prepared by and in this office from the record on
file, of which it purports to be a copy, and that it is full, true and correct.

 

 

	
   

  	
  IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of
  California this day of

  
	
   

  	
   

  
	
   

  	
  Jan 31, 2000

  
	
   

  	
   

  
	
  [SEAL]

  	
  /s/ BILL JONES

  	
   

  
	
   

  	
  BILL JONES

  
	
   

  	
  Secretary of State

  

 

 

ARTICLES OF INCORPORATION

OF

INAMED DEVELOPMENT
COMPANY

 

One:  The name of this corporation is:

 

INAMED DEVELOPMENT
COMPANY

 

Two:  The purpose of this corporation is to engage
in any lawful act or activity for which a corporation may be organized under
the General Corporation Law of California other than the banking business, the
trust company business or the practice of a profession permitted to be
incorporated by the California Corporations Code.

 

Three:  The name and address in the State of
California of this corporation’s initial agent for service of process are:

 

Ms. Lynn Dempsey

5511 Ekwill

Santa Barbara, CA 93111

 

Four:  This corporation is authorized to issue
20,000 shares, all of which shall be of one class.

 

IN WITNESS WHEREOF, for the purpose of forming this
corporation under the General Corporation Law of the State of California, the
undersigned has executed these Articles of Incorporation this 11th day of
September, 1986.

 

	
   

  	
  /s/ Carol A. Pfaffmann

  
	
   

  	
  Carol A. Pfaffmann

  

 

 

 

September 5, 1986

 

Office of the Secretary of State

State of California

Suite 4001

107 S. Broadway

Los Angeles, CA 90012

 

Gentlemen:

 

INAMED Corporation, a Florida corporation qualified to do business in
California, hereby allows INAMED Development Company to use the name “INAMED”
in its corporate name.

 

	
   

  	
   

  	
  INAMED Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  President and Chief

  
	
   

  	
   

  	
  Financial Officer

  

 

 

 

Annex 2

 

 

BYLAWS

OF

INAMED DEVELOPMENT
COMPANY

 

Table of Contents

 

	
  Article 1

  	
   

  	
  Offices

  
	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Principal Office

  
	
  1.2

  	
   

  	
  Other Offices

  
	
   

  	
   

  	
   

  
	
  Article 2

  	
   

  	
  Meetings of Shareholders

  
	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Place of Meetings

  
	
  2.2

  	
   

  	
  Annual Meetings

  
	
  2.3

  	
   

  	
  Special Meetings

  
	
  2.4

  	
   

  	
  Notice of Meetings

  
	
  2.5

  	
   

  	
  Manner of Giving Notice

  
	
  2.6

  	
   

  	
  Quorum

  
	
  2.7

  	
   

  	
  Adjournment

  
	
  2.8

  	
   

  	
  Voting

  
	
  2.9

  	
   

  	
  Waiver of Notice and
  Consent

  
	
  2.10

  	
   

  	
  Action Without Meeting

  
	
  2.11

  	
   

  	
  Record Date

  
	
  2.12

  	
   

  	
  Proxies

  
	
  2.13

  	
   

  	
  Inspectors of Election

  
	
   

  	
   

  	
   

  
	
  Article 3

  	
   

  	
  Directors

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Powers

  
	
  3.2

  	
   

  	
  Number

  
	
  3.3

  	
   

  	
  Election and Term of Office

  
	
  3.4

  	
   

  	
  Removal

  
	
  3.5

  	
   

  	
  Vacancies

  
	
  3.6

  	
   

  	
  Place of
  Meetings and Meetings by Telephone

  
	
  3.7

  	
   

  	
  Regular Meetings

  
	
  3.8

  	
   

  	
  Special Meetings

  
	
  3.9

  	
   

  	
  Quorum

  
	
  3.10

  	
   

  	
  Contents of Notice
  and Waiver of Notice

  
	
  3.11

  	
   

  	
  Adjournment

  
	
  3.12

  	
   

  	
  Action Without Meeting

  
	
  3.13

  	
   

  	
  Fees and Compensation

  
	
   

  	
   

  	
   

  
	
  Article 4

  	
   

  	
  Committees

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Committees of Directors

  
	
  4.2

  	
   

  	
  Meetings and Action

  

 

 

i

 

	
  Article 5

  	
   

  	
  Officers

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Officers

  
	
  5.2

  	
   

  	
  Election

  
	
  5.3

  	
   

  	
  Other Officers

  
	
  5.4

  	
   

  	
  Removal and Resignation

  
	
  5.5

  	
   

  	
  Vacancies

  
	
  5.6

  	
   

  	
  Chairman
  of the Board

  
	
  5.7

  	
   

  	
  President

  
	
  5.8

  	
   

  	
  Vice Presidents

  
	
  5.9

  	
   

  	
  Secretary

  
	
  5.10

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  Article 6

  	
   

  	
  Indemnification of Directors, Officers,
  Employees and Other Agents

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Indemnification

  
	
  6.2

  	
   

  	
  Advance of Expenses

  
	
  6.3

  	
   

  	
  Other Contractual Rights

  
	
  6.4

  	
   

  	
  Insurance

  
	
   

  	
   

  	
   

  
	
  Article 7

  	
   

  	
  Certain Loans and
  Guarantees

  
	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Shareholder Approval

  
	
  7.2

  	
   

  	
  Security

  
	
  7.3

  	
   

  	
  Exceptions

  
	
   

  	
   

  	
   

  
	
  Article 8

  	
   

  	
  Records and Reports

  
	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Maintenance
  and Inspection of Share Register

  
	
  8.2

  	
   

  	
  Maintenance
  and Inspection of Bylaws

  
	
  8.3

  	
   

  	
  Maintenance
  and Inspection of Other Corporate Records

  
	
  8.4

  	
   

  	
  Inspection
  by Directors

  
	
  8.5

  	
   

  	
  Annual
  Reports

  
	
  8.6

  	
   

  	
  Financial
  Statements

  
	
   

  	
   

  	
   

  
	
  Article 9

  	
   

  	
  General Matters

  
	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Record Date for Purposes Other
  Than Notice and Voting

  
	
  9.2

  	
   

  	
  Checks,
  Drafts, Evidences of Indebtedness

  
	
  9.3

  	
   

  	
  Corporate Contracts and
  Instruments; How Executed

  
	
  9.4

  	
   

  	
  Certificates for Shares

  
	
  9.5

  	
   

  	
  Lost Certificates

  
	
  9.6

  	
   

  	
  Representation of Shares of
  Other Corporations

  
	
  9.7

  	
   

  	
  Construction and
  Definitions

  
	
   

  	
   

  	
   

  
	
  Article 10

  	
   

  	
  Amendments

  
	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Shareholders

  
	
  10.2

  	
   

  	
  Board
  of Directors

  

 

 

ii

 

BYLAWS

 

OF

 

INAMED DEVELOPMENT
COMPANY

 

Article 1

Offices

 

1.1    Principal Office.  The board of directors shall fix the location of the principal
executive office of the corporation at any place within or outside the State of
California.  If the principal executive
office is located outside the State of California, and the corporation has one
or more business offices in the State of California, the board of directors
shall likewise fix and designate a principal business office in the State of
California.

 

1.2      Other Offices.  The corporation may also establish offices
at such other places, both within and outside the State of California, as the
board of directors may from time to time determine or the business of the
corporation may require.

 

Article 2

Meetings of Shareholders

 

2.1      Place of Meetings.  Meetings of shareholders shall be held at
any place within or outside the State of California designated by the board of
directors.  In the absence of any such
designation, shareholders’ meetings shall be held at the principal executive
office of the corporation.

 

2.2      Annual Meetings.  The annual meeting of shareholders shall be
held on the first Monday of March in each year at 10:00 o’clock, a.m., or such
other date or time as may be fixed by the board of directors; provided,
however, that should said day fall upon a legal holiday, such annual meeting of
shareholders shall be held at the same time on the next succeeding day which is
a full business day.  At such meeting,
directors shall be elected and any other proper business may be transacted.

 

2.3      Special
Meetings.  A special
meeting of the shareholders may be called at any time by the board of
directors, the chairman of the board, the president, or one or more
shareholders holding in the aggregate shares entitled to cast not less than ten
percent of the votes at any such meeting. 
If a special meeting is called by any one other than the board of
directors, the request shall be in writing, specifying the time of the meeting
and the general nature of the business proposed to be transacted, and shall be
delivered personally or sent by registered mail or by telegraphic or other
facsimile transmission to the chairman of the board, the president, any vice
president or

 

 

 

the secretary of the corporation. 
The officer receiving such request forthwith shall cause notice to be
given to the shareholders entitled to vote, in accordance with the provisions
of Sections 2.4 and 2.5, that a meeting will be held at the time requested by
the person or persons calling the meeting, not less than 35 nor more than 60
days after the receipt of the request. 
If the notice is not given within 20 days after receipt of the request,
the person or persons requesting the meeting may give the notice.  Nothing contained in this 

Section 2.3 shall be construed as limiting, fixing or affecting the time when a
meeting of shareholders called by action of the board of directors may be held.

 

2.4      Notice of
Meetings.  All notices of
meetings of shareholders shall be sent or otherwise given in accordance with
Section 2.5 not less than ten nor more than 60 days before the date of the
meeting being noticed.  The notice shall
specify the place, date and hour of the meeting and (a) in the case of a
special meeting, the general nature of the business to be transacted, or (b) in
the case of the annual meeting, those matters which the board of directors, at
the time of giving the notice, intends to present for action by the
shareholders.  The notice of any meeting
at which directors are to be elected shall include the name of any nominee or
nominees whom, at the time of the notice, the board intends to present for
election.

 

If action is proposed to
be taken at any meeting for approval of (i) a contract or transaction in which
a director has a direct or indirect financial interest, pursuant to Section 310
of the California Corporations Code (the “Code”), (ii) an amendment of the
articles of incorporation, pursuant to Section 902 of the Code, (iii) a
reorganization of the corporation, pursuant to Section 1201 of the Code, (iv) a
voluntary dissolution of the corporation, pursuant to Section 1900 of the Code,
or (v) a distribution in dissolution other than in accordance with the rights
of outstanding preferred shares, pursuant to Section 2007 of the Code, the
notice shall also state the general nature of such proposal.

 

2.5      Manner
of Giving Notice.  Notice
of any meeting of shareholders shall be given personally or by first-class mail
or telegraphic or other written communication, charges prepaid, addressed to the shareholder at the
shareholder’s address appearing on the books of the corporation or given by the
shareholder to the corporation for the purpose of notice.  If no such address appears on the
corporation’s books or is given, notice shall be deemed to have been given if
sent to that shareholder by first-class mail or telegraphic or other written
communication to the corporation’s principal executive office, or if published
at least once in a newspaper of general circulation in the county in which the
principal executive office is located. 
Notice shall be deemed to have been given when delivered personally or
deposited in the mail or sent by telegram or other means of written
communication.

 

2

 

If any notice addressed
to a shareholder at the address of such shareholder appearing on the books of
the corporation is returned to the corporation by the United States Postal
Service marked to indicate that the Service is unable to deliver the notice to
the shareholder at such address, all future notices or reports shall be deemed
to have been duly given without further mailing if the same shall be available
to the shareholder upon written demand at the principal executive office of the
corporation for a period of one year from the date of the giving of such notice
or report to all other shareholders.

 

An affidavit of the
mailing or other means of giving any notice of any shareholders’ meeting may be
executed by the secretary, assistant secretary or any transfer agent of the
corporation, and shall be filed and maintained in the minute book of the
corporation.

 

2.6  Quorum.  Unless otherwise provided in the articles of
incorporation, the presence in person or by proxy of the holders of a majority
of the shares entitled to vote at any meeting of shareholders shall constitute
a quorum for the transaction of business. 
The shareholders present at a duly called or held meeting at which a
quorum is present may continue to do business until adjournment,
notwithstanding the withdrawal of enough shareholders to leave less than a
quorum, if any action taken (other than adjournment) is approved by at least a
majority of the shares required to constitute a quorum.

 

2.7  Adjournment.  Any shareholders’ meeting, annual or special,
whether or not a quorum is present, may be adjourned from time to time by the
vote of a majority of the shares represented at such meeting, either in person
or by proxy, but, in the absence of a quorum, no other business may be
transacted at such meeting, except as provided in Section 2.6.

 

When any meeting
of shareholders, annual or special, is adjourned to another time or place,
notice need not be given of the adjourned meeting if the time and place thereof
are announced at a meeting at which the adjournment is taken, unless a new
record date for the adjourned meeting is fixed, or unless the adjournment is
for more than 45 days from the date set for the original meeting, in which case
the board of directors shall set a new record date.  Notice of any such adjourned meeting shall be given to each
shareholder of record entitled to vote at the adjourned meeting in accordance
with the provisions of Sections 2.4 and 2.5. 
At any adjourned meeting, the corporation may transact any business
which might have been transacted at the original meeting.

 

2.8  Voting.  The shareholders entitled to notice of and
to vote at any meeting of shareholders shall be determined in accordance with
the provisions of Section 2.11, subject to the provisions of Sections 702 to
704 of the Code (relating to voting shares held by a fiduciary, in the name of
a corporation, or in

 

3

 

the names of two or more persons).  The vote may be by voice vote or by ballot;
provided, however, that any election for directors must be by ballot if
demanded by a shareholder at the meeting and before the voting begins.  Any shareholder entitled to vote on any
matter (other than elections of directors) may vote part of the shares in favor
of the proposal and refrain from voting the remaining shares or vote them
against the proposal, but, if the shareholder fails to specify the number of
shares such shareholder is voting affirmatively, it will be conclusively
presumed that the shareholder’s approving vote is with respect to all shares
such shareholder is entitled to vote. 
If a quorum is present, the affirmative vote of the majority of the
shares represented at the meeting and entitled to vote on any matter (other
than the election of directors) shall be the act of the shareholders, unless
the vote of a greater number or voting by classes is required by the Code or
the articles of incorporation.

 

At a shareholders’
meeting involving the election of directors, no shareholder shall be entitled
to cumulate votes on behalf of any candidate for director (i.e., cast
for any candidate a number of votes greater than the number of votes which such
shareholder normally is entitled to cast) unless such candidate or candidates’
names have been placed in nomination prior to the voting and the shareholder
has given notice prior to the voting of the shareholder’s intention to cumulate
votes.  If any shareholder has given
such notice, every shareholder entitled to vote may cumulate votes for
candidates in nomination and give one candidate a number of votes equal to the
number of directors to be elected multiplied by the number of votes to which
such shareholder’s shares are normally entitled, or distribute the
shareholder’s votes on the same principle among as many candidates as the
shareholder thinks fit.  The candidates
receiving the highest number of affirmative votes, up to the number of
directors to be elected, shall be elected; votes against the director and votes
withheld shall have no legal effect.

 

2.9  Waiver
of Notice and Consent.  The  transactions of any meeting
of shareholders, annual or special,
however called and noticed, and
wherever held, shall be as valid as though they had occurred at a
meeting duly held after regular call and notice, if a quorum is present either in person or by proxy, and if, either
before or after the meeting, each person entitled to vote, who was not present
in person or by proxy, signs a written waiver of notice, or a consent to a
holding of the meeting, or an approval of the minutes thereof.  Neither the waiver of notice nor the consent
to holding of the meeting nor the approval of the minutes thereof need specify
either the business to be transacted or the purpose of any annual or special
meeting of shareholders, except that if action is taken or proposed to be taken
for approval of any matters specified in the second paragraph of Section 2.4,
the waiver of notice or the consent to the holding of the meeting and the
approval of the minutes thereof shall state the general nature

 

4

 

of the proposal.  All such
waivers, consents or approvals shall be filed with the corporate records or
made a part of the minutes of the meeting.

 

Attendance of a person at
a meeting shall also constitute a waiver of notice of and presence at such
meeting, except when the person objects, at the beginning of the meeting, to
the transaction of any business because the meeting is not lawfully called or
convened, and except that attendance at a meeting is not a waiver of any right
to object to the consideration of matters not included in the notice of such
meeting if such objection is  expressly
made at the meeting.

 

2.10  Action
Without Meeting.  Unless
otherwise provided in the articles of incorporation, any action which may be
taken at any annual or special meeting of shareholders may be taken without a meeting
and without prior notice, if a consent in writing, setting forth the action so
taken, is signed by the holders of outstanding shares having not less than the
minimum number of votes that would be necessary to authorize or take such
action at a meeting at which all shares entitled to vote thereon were present
and voted.  In the case of election of
directors, such consent shall be effective only if signed by the holders of all
outstanding shares entitled to vote for the election of directors; provided, however, that a director may be
elected at any time to fill a vacancy on the board of directors not filled by
the directors, by the written consent of the holders of a majority of the
outstanding shares entitled to vote for the election of directors.  All such consents shall be filed with the
secretary of the corporation and shall be maintained in the corporate records.  Any shareholder giving a written consent, or the shareholder’s proxy
holder, or a transferee of the shares or a personal representative of the
shareholder or their respective proxy holders, may revoke the consent by a
writing received by the secretary of the corporation prior to the time that
written consents of the number of shares required to authorize the proposed
action have been filed with the secretary.

 

Unless the consents of
all shareholders entitled to vote have been solicited in writing, the secretary
shall give prompt notice of any corporate action approved by the shareholders
without a meeting by less than unanimous written consent to those shareholders
entitled to vote who have not consented in writing.  Such notice shall be given in the manner specified in Section 2.5. 
In the case of approval of (a) contracts or transactions in which a
director has a direct or indirect financial interest, pursuant to Section 310
of the Code, (b) indemnification of agents of the corporation, pursuant to
Section 317 of the Code, (c) a reorganization
of the corporation, pursuant to Section 1201 of the Code, or (d) a
distribution in dissolution other than in accordance with the rights of outstanding preferred shares,
pursuant to Section 2007 of the Code, such notice shall be given at least ten
days before the consummation of the action authorized by any such approval.

 

5

 

2.11  Record Date.  For purposes of determining the shareholders
entitled to notice of any meeting or to vote or entitled to give consent to corporate action without a
meeting, the board of directors may fix, in advance, a record date, which shall
not be more than 60 days nor less than ten days prior to the date of the
meeting nor more than 60 days prior to the action without a meeting, and in
such case only shareholders of record at the close of business on the date so
fixed are entitled to notice and to vote or to give consents, as the case may
be, notwithstanding any transfer of any shares on the books of the corporation
after the record date, except as otherwise provided in the California General
Corporation Law.

 

If the board of directors does not so fix a record
date:

 

(a) The record date for determining shareholders
entitled to notice of or to vote at a meeting of shareholders shall be at the
close of business on the business day next preceding the day on which notice is
given or, if notice is waived, at the close of business on the business day
next preceding the day on which the meeting is held.

 

(b) The record date for determining shareholders entitled
to give consent to corporate action in writing without a meeting, (i) when no
prior action by the board has been taken, shall be the day on which the first
written consent is given, or (ii) when prior action of the board has been taken, shall be at the close of business on the
day on which the board adopts the resolution relating thereto, or the sixtieth
day prior to the date of such other action, whichever is later.

 

2.12  Proxies.  Every person entitled to vote for directors
or on any other matter shall have the right to do so either in person or by one
or more agents authorized by a written proxy signed by the person and filed
with the secretary of the corporation. 
A proxy shall be deemed signed if the shareholder’s name is placed on
the proxy (whether by manual signature, typewriting, telegraphic transmission
or otherwise) by the shareholder or the shareholder’s attorney in fact.  A validly executed proxy which does not
state that it is irrevocable shall continue in full force and effect unless (a)
revoked by the person executing it, prior to the vote pursuant thereto, by a
writing delivered to the corporation stating that the proxy is revoked or by a
subsequent proxy which is executed by the person executing the prior proxy and
is presented to the meeting, or as to any meeting by attendance at such meeting
and voting in person by the person executing the proxy; or (b) written notice
of the death or incapacity of the maker of the proxy is received by the
corporation before the vote pursuant thereto is counted; provided, however,
that no such proxy shall be valid after the expiration of eleven months from
the date of the proxy, unless otherwise provided in the proxy.  The revocability of a proxy that states on its
face that it is irrevocable shall be governed by the provisions of Section
705(e) and (f) of the Code.

 

6

 

2.13  Inspectors
of Election.  Before any meeting
of shareholders, the board of directors may appoint any persons (other than
nominees for office) to act as inspectors of election at the meeting or any
adjournments thereof.  If inspectors of
election are not so appointed, the chairman
of the meeting may, and on the request of any shareholder or a
shareholder’s proxy shall, appoint inspectors of election at the meeting.  The number of inspectors shall be either one
or three.  If inspectors are appointed
at a meeting on the request of one or more shareholders or proxies, the
majority of shares represented in person or by proxy shall determine whether
one or three inspectors are to be appointed. 
If any person appointed as inspector fails to appear or refuses to act,
the chairman of the meeting may, and upon the request of any shareholder or a
shareholder’s proxy shall, appoint a person to replace the one who so failed or
refused.  If there are three inspectors
of election, the decision, act or certificate of a majority of them is
effective in all respects as the decision, act or certificate of all.  Any report or certificate made by the
inspectors of election is prima facie evidence of the facts stated therein.

 

Article 3

Directors

 

3.1    Powers. 
Subject to the provisions of the California General Corporation Law and
any limitations in the articles of incorporation and these bylaws relating to action
required to be approved by the shareholders or by the outstanding shares, the
business and affairs of the corporation shall be managed and all corporate
powers shall be exercised by or under the direction of the board of directors.

 

3.2  Number.  The authorized number of directors shall be
three until changed by an amendment to the articles of incorporation or, if
permitted by Section 212 of the Code, by an amendment to this bylaw, duly
adopted by the vote or written consent of holders of a majority of the
outstanding shares entitled to vote; provided, however, that an amendment
reducing the number of directors to a number less than five cannot be adopted if the votes cast against  its
adoption at a meeting, or the shares not consenting in the case of action by
written con­sent, are equal to more than 16-2/3% of the outstanding shares
entitled to vote.

 

3.3  Election
and Term of Office.  Directors
shall be elected at each annual meeting of the shareholders to hold office
until the next annual meeting.  Each
director, including a director elected to fill a vacancy, shall hold office
until the expiration of the term for which elected and until a successor has
been elected and qualified.

 

7

 

3.4  Removal.  Any or all of the directors may be removed
by order of court pursuant to Section 304 of the Code, or by the shareholders
pursuant to the provisions of Section 303 of the Code.

 

3.5  Vacancies.  Vacancies in the board of directors may be
filled by a majority of the remaining directors, though less than a quorum, or
by a sole remaining director, except that a vacancy created by the removal of a
director may be filled only by the vote of a majority of the shares entitled to
vote represented at a duly held meeting at which a quorum is present, or by the
written consent of holders of a majority of the outstanding shares entitled to
vote.  Each director so elected shall
hold office until the next annual meeting of the  shareholders and until a successor has
been elected and qualified.

 

A vacancy or vacancies in
the board of directors shall be deemed to exist in the case of the death,
resignation or removal of any director, or if the board of directors by
resolution declares vacant the office of a director who has been declared of unsound mind by
an order of court or who has been convicted of a felony, or if the authorized
number of directors is increased, or if the shareholders fail, at any meeting
of shareholders at which any director or directors are elected, to elect the
number of directors to be voted for at that meeting.

 

The shareholders may
elect a director or directors at any time to fill any vacancy or vacancies not
filled by the directors, but any such election by written consent other than to
fill a vacancy created by removal shall require the consent of a majority of
the outstanding shares entitled to vote.

 

Any director may resign effective upon giving written
notice to the chairman of the board, the president, the secretary or the board
of directors, unless the notice specifies a later time for the effectiveness of
such resignation.  If the resignation of
a director is effective at a future time, the board of directors may elect a successor  to
take office when the resignation becomes effective.

 

No reduction of the authorized number of directors
shall have the effect of removing any director prior to the expiration of his
or her term of office.

 

3.6  Place
of Meetings and Meetings by Telephone. 
Regular meetings of the board of directors may be held at any place
within or outside the State of California that has been designated from time to
time by resolution of the board.  In the
absence of such designation, regular meetings shall be held at the principal
executive office of the corporation. 
Special meetings of the board shall be held at any place within or
outside the State of California that has been designated in the notice of the
meeting or, if not stated in the notice or if there is no notice, at the
principal executive office of the corporation. 
Any

 

8

 

meeting, regular or special, may be held by conference telephone or
similar communication equipment, so long as all directors participating can
hear one another, and all such directors shall be deemed to be present in
person at such meeting.

 

3.7  Regular Meetings.  Immediately following each annual meeting of shareholders, the
board of directors shall hold a regular meeting for the purpose of
organization, any desired election of officers and the transaction of other
business.  Other regular meetings of the
board of directors shall be held without call at such time as shall from time
to time be fixed by the board of directors. 
Notice of regular meetings shall not be required.

 

3.8  Special Meetings.  Special meetings of the board of directors
for any purpose or purposes may be called at any time by the chairman of the
board or the president or any vice president or the secretary or any two
directors.

 

Notice of the time and
place of special meetings shall be delivered to each director personally or by
telephone or sent by first-class mail or telegram, charges prepaid, addressed
to each director at his or her address as it is shown on the records of the
corporation.  In case the notice is
mailed, it shall be deposited in the United States mail at least four days
prior to the time of the holding of the meeting.  In case such notice is delivered personally or by telephone or
telegraph, it shall be delivered personally or by telephone or to the telegraph
company at least 48 hours prior to the time of the holding of the meeting.  Any oral notice given personally or by
telephone may be communicated either to the director or to a person at the
office of the director who the person giving the notice has reason to believe
will promptly communicate it to the director. 
The notice need not specify the purpose of the meeting and it need not
specify the place if the meeting is to be held at the principal executive
office of the corporation.

 

3.9  Quorum.  A majority of the authorized number of
directors shall constitute a quorum for the transaction of business, except to
adjourn as hereinafter provided.  Every
act or decision done or made by a majority of the directors present at a meeting
duly held at which a quorum is present shall be regarded as the act of the
board of directors, subject to the provisions of Section 310 of the Code
(approval of contracts or transactions in which a director has a direct or
indirect material financial interest), Section 311 of the Code (appointment of
committees ), and Section 317(e) of the Code (indemnification of
directors).  A meeting at which a quorum
is initially present may continue to transact business notwithstanding the
withdrawal of directors, if any action taken is approved by at least a majority
of the required quorum for such meeting.

 

3.10  Contents
of Notice and Waiver of Notice. 
The waiver of notice or consent need not specify the purpose of the
meeting nor the business to be transacted thereat.  All such

 

9

 

waivers, consents and approvals shall be filed with the corporate
records or made a part of the minutes of the meeting.  Notice of a meeting need not be given to any director who signs a
waiver of notice or a consent to holding the meeting or an approval of the
minutes thereof, whether before or after the meeting, or who attends the
meeting without protesting, prior thereto or at its commencement, the lack of
notice to that director.

 

3.11  Adjournment.  A majority of the directors present, whether
or not constituting a quorum, may adjourn any meeting to another time and
place.  Notice of the time and place of
holding an adjourned meeting need not be given, unless the meeting is adjourned
for more than 24 hours, in which case notice of such time and place shall be
given prior to the time of the adjourned meeting, in the manner specified in
Section 3.8, to the directors who were not present at the time of the
adjournment.

 

3.12  Action
Without Meeting.  Any action
required or permitted to be taken by the board of directors may be taken
without a meeting, if all members of the board shall individually or
collectively consent in writing to such action.  Such action by written consent shall have the same force and
effect as a unanimous vote of the board of directors.  The written consent or consents shall be filed with the minutes
of the proceedings of the board.

 

3.13  Fees and
Compensation.  Directors and
members of committees may receive such compensation, if any, for their services,
and such reimbursement of expenses, as may be fixed or determined by resolution
of the board of directors.  Nothing
contained herein shall be construed to preclude any director from serving the
corporation in any other capacity as an officer, agent, employee, or otherwise,
and receiving compensation for such service.

 

Article 4

Committees

 

4.1  Committees
of Directors.  The board of
directors may, by resolution adopted by a majority of the authorized number of
directors, designate one or more committees, each consisting of two or more
directors, to serve at the pleasure of the board.  The board may designate
oneor more directors as alternate members of any committee, who may
replace any absent member at any meeting of the committee.  The appointment of members or alternate
members of a committee requires the vote of a majority of the authorized number
of directors.  Any such committee, to
the extent provided in the resolution of the board, may have all the authority
of the board, except with respect to:

 

(a) the approval of any action, which, under the
California General Corporation Law, also requires shareholders’ approval or
approval of the outstanding shares;

 

10

 

(b) the filling of vacancies on the board of directors
or in any committee;

 

(c) the fixing of compensation of the directors for
serving on the board or on any committee;

 

(d) the amendment or repeal of bylaws or the adoption
of new bylaws;

 

(e) the amendment or repeal of any resolution of the
board of directors which by its express terms is not so amendable or
repealable;

 

(f) a distribution to the shareholders of the
corporation, except at a rate, in a periodic amount or within a price range set
forth in the articles of incorporation or determined by the board of directors;
or

 

(g) the appointment of any other committees of the
board of directors or the members thereof.

 

4.2    Meetings and Action.  Meetings and action of committees shall be
governed by, and held and taken in accordance with, the provisions of Sections
3.6 (place of meetings and meetings by telephone), 3.7 (regular meetings), 3.8
(special meetings), 3.9 (quorum), 3.10 (contents of notice and waiver of
notice), 3.11 (adjournment) and 3.12 (action without meeting), with such changes
in the context of those bylaws as are necessary to substitute the committee and
its members for the board of directors and its members, except that: the time
of regular meetings of committees may be determined by resolution of the board
of directors as well as the committee; special meetings of committees may also
be called by resolution of the board of directors; and notice of special
meetings of committees shall also be given to all alternate members, who shall
have the right to attend all meetings of the committee.  The board of directors may adopt rules for
the government of any committee not inconsistent with the provisions of these
bylaws.

 

Article 5

Officers

 

5.1  Officers.  The officers of the corporation shall be a
president, a secretary and a chief financial officer.  The corporation may also have, at the discretion of the board of
directors, a chairman of the board, one or more vice presidents, one or more
assistant secretaries, one or more assistant treasurers, and such other
officers as may be appointed in accordance with the provisions of Section
5.3.  Any number of offices may be held
by the same person.

 

5.2  Election.  The officers of the corporation, except such
officers as may be appointed in accordance with the provisions of Section 5.3
or 5.5, shall be chosen by the board of

 

11

 

directors, and each shall serve at the pleasure of the board, subject
to the rights, if any, of an officer under any contract of employment.

 

5.3  Other Officers. 
The board of directors may appoint, and may empower the president to
appoint, such other officers as the business of the corporation may require,
each of whom shall hold office for such period, have such authority and perform
such duties as are provided in the bylaws or as the board of directors may from
time to time determine.

 

5.4  Removal and
Resignation.  Subject to the
rights, if any, of any officer under any contract of employment, any officer
may be removed, either with or without cause, by the board of directors or,
except in case of an officer chosen by the board of directors, by any officer
upon whom such power of removal may be conferred by the board of directors.

 

Any officer may resign at any time by giving written
notice to the corporation.  Any such
resignation shall take effect at the date of the receipt of such notice or at
any later time specified therein; and, unless otherwise specified therein, the
acceptance of such resignation shall not be necessary to make it effective.  Any such resignation is without prejudice to the rights, if any, of the
corporation under any contract to which the officer is a party.

 

5.5  Vacancies.  A vacancy in any office because of death,
resignation, removal, disqualification or any other cause shall be filled in
the manner prescribed in these bylaws for regular appointments to such office.

 

5.6  Chairman of
the Board.  The chairman of the
board, if such an officer be elected, shall, if present, preside at meetings of
the board of directors and exercise and perform such other powers and duties as
may be from time to time assigned to him or her by the board of directors or
prescribed by the bylaws.  If there is
no president, the chairman of the board shall in addition be the chief
executive officer of the corporation and shall have the powers and duties
prescribed in Section 5.7.

 

5.7  President.  Subject to such supervisory powers, if any,
as may be given by the board of
directors to the chairman of the board, if there be such an officer, the
president shall be the chief executive officer of the corporation and shall,
subject to the control of the board of directors, have general supervision,
direction and control of the business and the officers of the corporation.  He or she shall preside at all meetings of
the shareholders and, in the absence of the chairman of the board, or if there
be none, at all meetings of the board of directors.  He or she shall have the general powers and duties of management
usually vested in the office of president of a corporation and shall have such
other powers and duties as may be prescribed by the board of directors.

 

12

 

5.8  Vice Presidents.  In the absence or disability of the
president, the vice presidents, if any, in order of their rank as fixed by the
board of directors or, if not ranked, a vice president designated by the board
of directors, shall perform all the duties of the president, and when so acting
shall have all the powers of, and be subject to all the restrictions upon, the
president.  The vice presidents shall
have such other powers and perform such other duties as from time to time may
be prescribed for them respectively by the board of directors and the president
or the chairman of the board.

 

5.9  Secretary.  The secretary shall keep, or cause to be
kept, at the principal executive office or such other place as the board of
directors may direct, a book of minutes of all meetings and actions of
directors, committees of directors and shareholders, with the time and place of
holding, whether regular or special, and, if special, how authorized, the
notice thereof given, the names of those present at directors’ and committee
meetings, the number of shares present or represented at shareholders’
meetings, and the proceedings thereof.

 

The secretary shall keep, or cause to be kept, at the
principal executive office or at the office of the corporation’s transfer agent
or registrar, a share register, or a duplicate share register, showing the
names of all shareholders and their addresses, the number and classes of shares
held by each, the number and date of certificates issued for the same, and the
number and date of cancellation of every certificate surrendered for
cancellation.

 

The secretary shall give, or cause to be given, notice
of all meetings of the shareholders and of the board of directors required by
the bylaws or by law to be given, and he or she shall keep the seal of the
corporation, if one be adopted, in safe custody, and shall have such other
powers and perform such other duties as may be prescribed by the board of
directors.

 

5.10  Chief
Financial Officer.  The chief financial officer shall keep and
maintain, or cause to be kept and maintained, adequate and correct books and
records of accounts of the properties and business transactions of the corporation, including accounts of its
assets, liabilities, receipts, disbursements, gains, losses, capital, retained earnings and shares.

 

The chief financial officer shall deposit, or cause to
be deposited, all moneys and other valuables in the name and to the credit of
the corporation with such depositaries as may be designated by the board of
directors.  He or she shall disburse, or
cause to be disbursed, the funds of the corporation as may be ordered by the
board of directors, shall render to the president and directors, whenever they
request it, an account of all financial transactions and of the financial
condition of the corporation, and shall have such other powers and perform such
other duties as may be prescribed by the board of directors.

 

13

 

Article 6

Indemnification of Directors,
Officers, Employees and Other Agents

 

6.1  Indemnification.  The corporation shall, to the maximum extent
permitted by the California General Corporation Law, have power to indemnify
each of its agents against expenses, judgments, fines, settlements and other
amounts actually and reasonably incurred in connection with any proceeding
arising by reason of the fact any such person is or was an agent of the
corporation.  For purposes of this
Article 6, an “agent” of the corporation includes any person who is or was a
director, officer, employee or other agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, or was a director, officer, employee or agent of a corporation
which was a predecessor corporation of the corporation or of another enterprise
at the request of such predecessor corporation.

 

6.2  Advance of
Expenses.  Expenses incurred in
defending any proceeding may be advanced by this corporation prior to the final
disposition of such proceeding upon receipt of an undertaking by or on behalf
of the agent to repay such amount unless it shall be determined ultimately that
the agent is entitled to be indemnified as authorized in this Article 6.

 

6.3  Other
Contractual Rights.  Nothing
contained in this Article shall affect any right to indemnification to which
persons other than directors and officers of this corporation or of any
subsidiary of this corporation may be entitled by contract or otherwise.

 

6.4  Insurance.  Upon and in the event of a determination by
the board of directors of this corporation to purchase such insurance, this
corporation shall purchase and maintain insurance  on  behalf of any agent of the corporation
against any liability asserted against or incurred by the agent in such
capacity or arising out of the agent’s status as such whether or not this corporation would have the power  to
indemnify the agent against such liability.

 

Article 7

Certain Loans and Guarantees

 

7.1  Shareholder
Approval.  Except as otherwise
provided in this Article 7, the corporation shall not make any loan of money or
property to, or guarantee the obligation of, any director or officer of the
corporation or of its parent corporation, if any, unless the transaction, or an
employee benefit plan authorizing the loan or guarantee after disclosure of the
right under such a plan to include officers or directors, is approved by a
majority of the shareholders entitled to act thereon (without

 

14

 

counting any shares owned by any officer or director eligible to
participate in the plan or transaction that is subject to approval).

 

7.2  Security.  The corporation shall not make any loan of
money or property to, or guarantee the obligation of, any person upon the
security of shares of the corporation or of its parent corporation, if any, if
the corporation’s recourse in the event of default is limited to the security
for the loan or guarantee, unless (a) the loan or guarantee is adequately
secured without considering such shares, or (b) the loan or guarantee is
approved by a majority of the shareholders entitled to act thereon (without
counting any shares owned by any officer or director eligible to participate in
the plan or transaction that is subject to approval).

 

7.3  Exceptions.  The provisions of Section 7.1 do not apply to:

 

(a) Any advance of money to a director or officer of
the corporation or of its parent corporation, if any, for any expenses
reasonably anticipated to be incurred in the performance of the duties of the
director or officer, provided that in the absence of the advance the director
or officer would be entitled to be reimbursed for the expenses by the
corporation, its parent corporation, if any, or any subsidiary corporation;

 

(b) The payment of premiums in whole or in part by the
corporation on a life insurance policy on the life of a director or officer, so
long as repayment to the corporation of the amount of premiums so paid is
secured by the proceeds of the policy and its cash surrender value; or

 

(c) Any transaction, plan, or agreement permitted
under Section 408 of the Code.

 

Article 8

Records and Reports

 

8.1  Maintenance
and Inspection of Share Register. 
The corporation shall keep at its principal executive office, or at the
office of its transfer agent or registrar, if either be appointed, a record of
its shareholders, giving the names and addresses of all shareholders and the
number and class of shares held by each shareholder.

 

A shareholder or shareholders of the corporation
holding at least five percent in the aggregate of the outstanding voting shares
of the corporation may (a) inspect and copy the records of shareholders’ names
and addresses and shareholdings during usual business hours upon five days’
prior written demand upon the corporation, or (b) obtain from the transfer
agent of the corporation, upon written demand and upon the tender of the
transfer agent’s usual charges for such list, a list of the

 

15

 

shareholders’ names and addresses, who are entitled to vote for the
election of directors, and their shareholdings, as of the most recent record
date for which such list has been compiled or as of a date specified by the
shareholder subsequent to the date of demand. 
The list shall be made available to that shareholder on or before the
later of five days after the demand is received or the date specified therein
as the date as of which the list is to be compiled.  The record of shareholders shall also be open to inspection upon
the written demand of any shareholder or holder of a voting trust certificate,
at any time during usual business hours, for a purpose reasonably related to
such holder’s interests as a shareholder or as the holder of a voting trust
certificate.  Any inspection and copying
under this Section 8.1 may be made in person or by an agent or attorney of the
shareholder or holder of a voting trust certificate making such demand.

 

8.2  Maintenance
and Inspection of Bylaws.  The
corporation shall keep at its principal executive office, or if its principal
executive office is not in the State of California, at its principal business
office in that State, the original or a copy of the bylaws as amended to date,
which shall be open to inspection by the shareholders at all reasonable times
during office hours.  If the principal
executive office of the corporation is outside the State of California and the
corporation has no principal business office in that State, the Secretary
shall, upon the written request of any shareholder, furnish to such shareholder
a copy of the bylaws as amended to date.

 

8.3  Maintenance
and Inspection of Other Corporate Records.  The accounting books and records and minutes of proceedings of
the shareholders and the board of directors and any committee or committees of
the board of directors shall be kept at such place or places designated by the
board of directors or, in the absence of such designation, at the principal
executive office of the corporation. 
The minutes shall be kept in written form and the accounting books and
records shall be kept either in written form or in any other form capable of
being converted into written form.  Such
minutes and accounting books and records shall be open to inspection upon the
written demand of any shareholder or holder of a voting trust certificate, at
any reasonable time during usual business hours, for a purpose reasonably
related to the holder’s interests as a shareholder or as the holder of a voting
trust certificate.  The inspection may
be made in person or by an agent or attorney, and shall include the right to copy
and make extracts.  The foregoing rights
of inspection shall extend to the records of each subsidiary of the
corporation.

 

8.4  Inspection
by Directors.  Every director
shall have the absolute right at any reasonable time to inspect all books,
records and documents of every kind and the physical properties of the
corporation and each subsidiary corporation. 
Such inspection by a director may be made in person or by agent or
attorney and the right of inspection includes the right to copy and make
extracts.

 

16

 

8.5  Annual Reports.  The annual report to shareholders referred
to in Section 1501 of the Code is expressly dispensed with, but nothing herein
shall be interpreted as prohibiting the board of directors from issuing annual
or other periodic reports to the shareholders of the corporation as they may
deem appropriate.

 

If no annual report meeting the requirements of
Section 1501(a) of the Code has been delivered or mailed by the corporation to
the shareholders covering the immediately preceding fiscal year, the
corporation shall deliver or mail such financial statements and other
information requested by a shareholder relating to the immediately preceding
fiscal year as such shareholder may be entitled to receive pursuant to Section
1501(c) or other provisions of the Code.

 

8.6  Financial
Statements.  A copy of any
annual financial statement and any income statement of the corporation for each
quarterly period of each fiscal year, and any accompanying balance sheet of the
corporation as of the end of each such period, that has been prepared by the
corporation shall be kept on file in the principal executive office of the
corporation for 12 months.

 

If a shareholder or shareholders holding at least five
percent of the outstanding shares of any class of stock of the corporation makes a written request to
the corporation for an income statement of the corporation for the
three-month, six-month or nine-month period of the then current fiscal year
ended more than 30 days prior to the date of the request, and a balance sheet
of the corporation as of the end of such period, the chief financial officer
shall cause such statement or statements to be prepared, if not already
prepared, and shall deliver personally or mail such statement or statements to
the person making the request within 30 days after the receipt of such
request.  If the corporation has not
sent to the shareholders its annual report for the last fiscal year, this
report shall likewise be delivered or mailed to such shareholder or
shareholders within 30 days after such request.

 

Article 9

General Matters

 

9.1  Record Date
for Purposes Other Than Notice and Voting.  For purposes of determining the shareholders
entitled to receive payment of any dividend or other distribution or allotment
of any rights, or entitled to exercise any rights in respect of any other
lawful action (other than action by shareholders by written consent without a
meeting), the board of directors may fix, in advance, a record date, which
shall not be more than 60 days prior to any such action, and in such case only
shareholders of record on the date so fixed are entitled to receive the
dividend, distribution or allotment of rights or to exercise the rights, as the
case may be, notwithstanding any transfer of any

 

17

 

shares on the books of the corporation after the record date so fixed,
except as otherwise provided in  the
California General Corporation Law.

 

If the board of directors does not so fix a record
date, the record date for determining shareholders for any such purpose shall
be at the close of business on the date on which the board adopts the
resolution relating thereto, or the sixtieth day prior to the date of such
action, whichever is later.

 

9.2  Checks, Drafts,
Evidences of Indebtedness.  All
checks, drafts or other orders for payment of money, notes or other evidences
of indebtedness, issued in the name of or payable to the corporation, shall be
signed or endorsed by such person or persons and in such manner as, from time
to time, shall be determined by resolution of the board of directors.

 

9.3  Corporate
Contracts and Instruments; How Executed.  The board of directors, except as otherwise
provided in these bylaws, may authorize any officer or officers, agent or
agents, to enter into any contract or execute any instrument in the name of and
on behalf of the corporation, and such authority may be general or confined to
specific instances; and, unless so authorized or ratified by the board of
directors or within the agency power of an officer, no officer, agent or
employee shall have any power or authority to bind the corporation by any
contract or engagement or to pledge its credit or to render it liable for any
purpose or for any amount.

 

9.4  Certificates
for Shares.  A certificate or
certificates for shares of the capital stock of the corporation shall be issued
to each shareholder when any such shares are fully paid, and the board of
directors may authorize the issuance of certificates or shares as partly paid
provided that such certificates shall state the amount of the consideration to
be paid therefor and the amount paid thereon. 
All certificates shall be signed in the name of the corporation by the
chairman of the board or vice chairman of the board or the president or vice
president and by the chief financial officer or an assistant treasurer or the
secretary or any assistant secretary, certifying the number of shares and the
class or series of shares owned by the shareholder.  Any or all of the signatures on the certificate may be
facsimile.  In case any officer, transfer agent or registrar who has signed or
whose facsimile signature has been placed upon a certificate has ceased to be
such officer, transfer agent or registrar before such certificate is issued, it
may be issued by the corporation with the same effect as if such person were an
officer, transfer agent or registrar at the date of issue.

 

9.5  Lost
Certificates.  Except as
provided in this Section 9.5, no new certificates for shares shall be issued in
lieu of an old certificate unless the latter is surrendered to the corporation
and cancelled.  The board of directors
may, in case any share certificate or certificate for any other security is
lost,

 

18

 

stolen or destroyed, authorize the issuance of a new certificate in
lieu thereof, upon such terms and conditions as the board may require,
including provision for indemnification of the corporation secured by a bond or
other adequate security sufficient to protect the corporation against any claim
that may be made against it, including any expense or liability, on account of
the alleged loss, theft or destruction of such certificate or the issuance of a
replacement certificate.

 

9.6  Representation
of Shares of Other Corporations.  The chairman of the board, the president, or any vice president,
or any other person authorized by resolution of the board of directors or by
any of the foregoing designated officers, is authorized to vote on behalf of
the corporation any and all shares of any other corporation or corporations,
foreign or domestic, standing in  the
name of the corporation.  The authority
granted to said officers to vote or represent on behalf of the corporation any
and all shares held by the corporation in any other corporation or corporations
may be exercised by any such officer in person or by any person authorized to
do so by a proxy duly executed by said officer.

 

9.7  Construction
and Definitions.  Unless the
context requires otherwise, the general provisions, rules of construction, and definitions in the
California General Corporation Law shall govern the construction of these
bylaws.  Without limiting the generality
of the foregoing, the singular number includes the plural, the plural number includes the singular, and the
term “person” includes both a corporation and a natural person.  All references in these bylaws to the
California General Corporation Law or to sections of the Code shall be deemed
to be to such Law or sections as they may be amended and in effect and, if
renumbered, to such renumbered provisions at the time of any action taken under
the bylaws.  References to Articles and
Sections are to Articles and Sections of these bylaws unless the context
expressly indicates otherwise.

 

Article 10

Amendments

 

10.1  Shareholders.  New bylaws may be adopted or these
bylaws may be amended or repealed by the vote or written consent of holders of
a majority of the outstanding shares entitled to vote; provided, however, that
if the articles of incorporation set forth the number of authorized directors
of the corporation, the authorized number of directors may be changed only by
an amendment of the articles of incorporation.

 

10.2  Board of
Directors.  Subject to the
rights of the shareholders to adopt, amend or repeal bylaws as provided in
Section 10.1, bylaws, other than a bylaw amendment changing the authorized number
of directors, may be adopted, amended or repealed by the board of
directors.

 

19

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

INAMED DEVELOPMENT COMPANY

 

BY UNANIMOUS WRITTEN CONSENT

 

The undersigned, being all of the members of the Board
of Directors of INAMED DEVELOPMENT COMPANY, a California corporation (the “Company”),
acting pursuant to Section 307(8)(b) of the General Corporation Law of the
State of California, hereby
consent in writing to the adoption of the following actions in lieu of a special meeting of the Board of
Directors:

 

GUARANTEE AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED Corporation (“Inamed”) intends
to enter into that certain Credit Agreement dated as of February 1, 2000 (the “Credit
Agreement”), by and among Inamed, the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co.  Inc., as sole
lead arranger and sole book manager (the “Arranger”) and the
Administrative Agent;

 

WHEREAS, pursuant to the terms of the Credit Agreement
the Company, as a subsidiary of Inamed, is required to guaranty all of Inamed’s
obligations under the Credit Agreement (the “Obligations”,  as
defined under the Credit Agreement), by entering into that certain Guarantee
and Collateral Agreement (the “Guarantee and Collateral Agreement”)
dated of even date with the Credit Agreement, a copy of which has been
presented to the Board;

 

WHEREAS, pursuant to the terms and conditions of the
Credit Agreement, the Company, as a subsidiary of Inamed, is required to secure
payment and performance of the Obligations, also by entering into that same
Guarantee and Collateral Agreement (as defined above), whereby the Company
would grant to Administrative Agent, for the benefit of the Administrative
Agent and the Lenders, a perfected, first priority Lien on all of its right,
title and interest in all of its personal property, including but not limited
to all capital stock of its
domestic

 

 

subsidiaries, 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licences, material
property, etc.

 

WHEREAS, the Board of Directors of the Company has
determined that in order to give effect to the Credit Agreement, it is
advisable and in the best interests of the Company that the Company enter into
the Guarantee and Collateral Agreement and each of the transactions
contemplated thereby;

 

NOW, THEREFORE, BE IT RESOLVED, that the Board of
Directors deems it advisable and in the best interests of the Company to enter
into the Guarantee and Collateral Agreement and any other documents
contemplated thereby and such documents hereby are authorized and approved,
with such changes thereto as the Chairman, the President, any Vice President or
the Secretary of the Company (the “proper officers”) may approve, such
approval to be conclusively evidenced by such officer’s or officers’ execution
and delivery thereof;

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized, empowered and directed, in
the name and on behalf of the Company, to enter into the Guarantee and
Collateral Agreement, substantially on the terms and conditions as presented
and described to the Board, with such changes thereto as the proper officers
may approve, such approval to be conclusively evidenced by such officer’s or
officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized and directed to enter into
such other agreements, documents, promissory notes, and instruments with
respect to any of the foregoing, in such form and on such terms and conditions
as may be agreed to by the proper officers of the Company, Administrative Agent
and the Lenders, and to take such other actions with respect to the foregoing as
may be required by Administrative Agent and the Lenders; and that the proper
officers of the Company be, and each of them hereby is, authorized, directed
and empowered, in the name and on behalf of the Company, to execute and deliver
such other agreements, documents, promissory notes, deeds of trust, mortgages
and other instruments and to perform all other acts as such officers shall
approve in connection with any of the above, the execution of such agreements,
documents, promissory notes and other instruments or the taking of any such
actions to be conclusive evidence of such approval.

 

 

GENERAL AUTHORIZATIONS

 

RESOLVED, that the officers of the Company be, and
each of them hereby is, authorized, empowered and directed, in the name and on
behalf of the Company, to do or cause to be done all such other acts or things,
and to execute and deliver, or cause to be executed and delivered, all such
other documents, instruments, agreements, notes, undertakings, guarantees and
certificates of any kind and nature whatsoever, as such officer or officers may
deem necessary or appropriate to effectuate or carry out the purposes and
intent of the foregoing resolutions; all such other actions to be performed in
such manner, and all such other documents, instruments, agreements, notes,
undertakings, guarantees and certificates to be executed and delivered in such
form, as the officer or officers performing or executing the same shall
approve, such officer’s or officers’ approval thereof to be conclusively
evidenced by the performance of any such other action or the execution and
delivery of any such other documents, instruments, agreements, notes,
undertakings and certificates; and

 

RESOLVED FURTHER, that all acts and things previously
done by any of the officers of the Company, on or prior to the date hereof, in
the name and on behalf of the Company, in connection with the transactions
contemplated by the foregoing resolutions, are in all respects ratified,
approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company.

 

* * *

 

 

This Unanimous Written Consent may be executed in one or more counterparts, each of which shall
be considered as an original.  The
Secretary of the Company shall file this Unanimous Written Consent in the
minute book of the Company and it shall become part of the records of the
Company.

 

	
  Dated: February 1, 2000

  	
   

  
	
   

  	
  /s/ Richard G. 
  Babbitt

  
	
   

  	
  Richard G. Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  

 

 

Annex 4

 

 

State of
California

 

[LOGO]

 

SECRETARY OF STATE

 

CERTIFICATE OF STATUS

DOMESTIC CORPORATION

 

I
BILL JONES, Secretary of State of the State of California, hereby certify:

 

That
on the 11th day of September
1986 INAMED DEVELOPMENT COMPANY became incorporated under the laws of the State of
California by filing its Articles of Incorporation in this office; and

 

That
no record exists in this office of a certificate of dissolution of said
corporation nor of a court order declaring dissolution thereof, nor of a merger
or consolidation which terminated its existence, and

 

That
said corporation’s corporate powers, rights and privileges are not suspended on
the records of this office; and

 

That
according to the records of this office the said corporation is authorized to
exercise all its corporate powers, rights and privileges and is in good legal
standing in the State of California; and

 

That
no information is available in this office on the financial condition, business
activity or practices of this corporation.

 

 

	
   

  	
  IN WITNESS WHEREOF, I execute this

  Certificate and affix the Great Seal of

  the State of California this day of

  
	
   

  	
   

  
	
   

  	
  January 31, 2000

  
	
  [SEAL]

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bill Jones

  
	
   

  	
  Secretary
  of State

  

 

[LOGO]

STATE OF CALIFORNIA

FRANCHISE TAX BOARD

PO Box 942857

Sacramento, CA 94257

In Reply Refer to:357JL

Date                     :01/31/2000

 

[STAMP]

 

	
  Corporation Name

  	
  :INAMED DEVELOPMENT COMPANY

  	
   

  
	
  Corporation Number

  	
  :1385729

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  X

  	
  1.

  	
  The above named corporation is in good standing with
  this agency.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Information on record with this agency indicates the
  above corporation is not qualified to transact business in California.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  The above corporation was incorporated or qualified
  on

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  The above corporation has an unpaid liability of
  $        for income year ended

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Our records do not show that the above corporation
  filed franchise tax returns for the income years

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.

  	
  The above corporation was       effective

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.

  	
  The above corporation’s current address on record
  with this agency is:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.

  	
  We have no current information on the above corporation.

  	
   

  

 

 

	
  Comments:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Representative

  

 

TELEPHONE ASSISTANCE

 

Our regular toll-free telephone service is available from 7:00 a.m.
until 8:00 p.m. Monday through Friday from the first working day in January
through April 15.  The best times to
call are between 7:00 and 10:00 in the morning and between 6:00 and 8:00 in the
evening.  Service is also available from
8:00 a.m. through 6.00 p.m. on the two Saturdays prior to April 15. After April
15, service is available Monday through Friday, between 8:00 a.m. and 5:00 p.m.

 

From within the United
States, call                                                         1-800-852-5711

From outside the United
States, call (not toll free)                              1-916-845-6500

For hearing impaired with
TDD, call                                                       1-800-822-6268

 

 

INAMED INTERNATIONAL
CORP.

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made to the Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Inamed Corporation
(the “Borrower ”), the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent. 
Capitalized terms used herein and not otherwise defined shall have the
meanings assigned in the Credit Agreement. 
This certificate is being delivered pursuant to Section 5.1(g) of the
Credit Agreement.

 

I, David E. 
Bamberger, hereby certify that I am the Secretary of INAMED
International Corp. (the “Company”), and as such have access to the Company’s
corporate records and am familiar with the matters therein contained and herein
certified, and that:

 

1.             Attached
hereto as Annex 1 is a true, correct and complete copy of the Certificate of
Incorporation of the Company, as filed with the Secretary of State of the State
of Delaware on December 8, 1998.

 

2.             Attached
hereto as Annex 2 is a true, correct and complete copy of the By-laws of the
Company as presently in effect on and as of the date hereof, which By-laws are
in full force and effect in said form without modification, amendment, rescission or repeal in any respect.

 

3.             Attached
hereto as Annex 3 is a true, correct and complete copy of resolutions adopted
by unanimous written consent in lieu of a meeting in accordance with applicable
laws and the Certificate of Incorporation and By-laws of the Company, and such
resolutions (i) were duly adopted by the Board of Directors of the Company and
are in full force and effect on and as of the date hereof, not having been in
any way amended, altered or repealed, and (ii) constitute the only resolutions
of the Board of Directors of the Company relating to the subject matter of the
Credit Agreement, the other Loan Documents and the transactions contemplated
thereby.

 

 

4.             Attached
hereto as Annex 4 is a true, correct and complete copy of a certificate from
the Office of the Secretary of State of the State of Delaware indicating that
the Company (i) is in good standing, (ii) has a legal corporate existence not
having been cancelled or dissolved, (iii) is duly authorized to transact
business and (iv) has paid all franchise taxes to date.

 

5.             There
are no consents, licenses or approvals required in connection with the
execution, delivery and performance by the Company or the validity and
enforceability against the Company of the Loan Documents to which it is a
party.

 

6.             The
following persons are duly qualified and acting officers of the Company, each
of whom is authorized to sign any of the Loan Documents to which the Company is
a party, and each of whom is duly elected to the office set forth opposite his
respective name; the signature appearing opposite the name of each such officer
is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  EXECUTIVE VICE

  PRESIDENT

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/ David E. Bamberger

  
	
   

  	
   

  	
   

  

 

IN WITNESS WHEREOF, the undersigned has executed this
Secretary’s Certificate as of the 1 day of February, 2000.

 

	
   

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E. Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K. Reich, Executive Vice President of the
Company, hereby certify that David E. Bamberger is the duly elected Secretary
of the Company and that the signature appearing above is his genuine signature.

 

	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  Executive Vice President

  

 

3

 

Annex 1

 

 

State of Delaware

 

Office of the Secretary of State

 

 

I, EDWARD J. FREEL, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE
CERTIFICATE OF INCORPORATION OF “INAMED INTERNATIONAL CORP.”, FILED IN THIS
OFFICE ON THE EIGHTH DAY OF DECEMBER, A.D. 1998, AT 3 O’CLOCK P.M.

 

	
   

  	
   

  	
  /s/ Edward J. Freel

  
	
   

  	
  [SEAL]

  	
  Edward
  J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2975829   
  8100

  	
   

  	
  AUTHENTICATION: 0217785

  
	
  001039246

  	
   

  	
  DATE: 01-26-00

  	
   

  

 

1

 

CERTIFICATE
OF INCORPORATION

 

OF

 

INAMED
International Corp.

 

FIRST:  The name of the Corporation is: INAMED
International Corp. (the “Corporation”).

 

SECOND:  The registered office of the corporation and
registered agent in the State of Delaware
is to be located at 9 East Loockerman Street, Dover, Delaware 19901.  The name of its registered agent is National
Corporate Research, Ltd., in Kent County.

 

THIRD:  The nature of the business, and the objects
and purposes proposed to be transacted, promoted and carried on, are to do any
lawful act or thing for which a corporation may be organized under the General
Corporation Law of the State of Delaware (the “GCL”).

 

FOURTH:  The aggregate number of shares of stock
which the Corporation shall have authority to issue is One Thousand (1,000)
with a par value of one cent ($.01) per share, all of which shall be designated
“Common Stock”.

 

FIFTH:  The name and mailing address of the
incorporator is:

 

Marc E. Sailer

c/o Olshan Grundman Frome & Rosenzweig LLP

505 Park Avenue

New York, New York 10022

 

SIXTH:  A.  A
director of the Corporation shall not be personally liable to the Corporation
or its stockholders for monetary damages for breach of fiduciary duty as a
director, except for liability (i) for any breach of the directors’ duty of
loyalty to the Corporation or its stockholders, (ii) for acts or omissions not
in good faith or which involve intentional misconduct or a knowing violation of
law, (iii) under Section 174 of the 3CL, or (iv) for any transaction from which
the director derived an improper personal benefit.  If the GCL is amended to authorize corporate action further
eliminating or limiting the personal liability of directors, then the liability
of a director of the Corporation shall
beeliminated or limited to the fullest extent permitted by the GCL, as
so amended.  Any repeal or modification
of this Paragraph A by the stockholders of the Corporation shall not adversely
affect any right or protection of a director of the Corporation with respect to
events occurring prior to the time of such repeal or modification.

 

 

 

B.  (1)  Each person who was or is made a party or is
threatened to be made a party to or is involved in any action, suit, or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter a “proceeding”,) , by reason of the fact that he or she or a
person of whom he or she is the legal representative is or was a director,
officer, employee or agent of the Corporation or is or was serving at the
request of the Corporation, as a director, officer or employee or agent of
another corporation or of a partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, whether
the basis of such proceeding is alleged action in an official capacity as a
director, officer, employee or agent or in any other capacity while serving as
a director, officer, employee or agent, shall be indemnified and held harmless
by the Corporation to the fullest extent authorized by the GCL as the same
exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such
amendment permits the Corporation to provide broader indemnification rights
than said law permitted the Corporation to provide prior to such amendment),
against all expense, liability and loss (including attorneys’ fees, judgments,
fines, ERISA excise taxes or penalties and amounts paid or to be paid in
settlement) reasonably incurred or suffered by such person in connection
therewith and such indemnification shall continue as to a person who has ceased
to be a director, officer, employee or agent and shall inure to the benefit of
his or her heirs, executors and administrators; provided, however, that except as provided in paragraph (2)
of this Paragraph B with respect to proceedings seeking to enforce rights to
indemnification, the Corporation shall indemnify any such person seeking
indemnification in connection with a proceeding (or part thereof) initiated by
such person only if such proceeding (or part thereof) was authorized by the
Board of Directors of the corporation. 
The right to indemnification conferred in this Paragraph B shall be a
contract right and shall include the right to be paid by the Corporation the
expenses incurred in defending any such proceeding in advance of its final
disposition; provided, however, that if the GCL requires, the payment of such expenses
incurred by a director or officer in his or her capacity as a director or
officer (and not in any other capacity) in which service was or is rendered by
such person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of a proceeding, shall be made only upon delivery to
the Corporation of an undertaking by or on behalf of such director or officer
to repay all amounts so advanced if it shall ultimately be determined that such
director or officer is not entitled to be indemnified under this Paragraph B or
otherwise.

 

(2)  If a claim
under paragraph (1) of this Paragraph B is not paid in full by the Corporation
within thirty

 

2

 

days after a written claim has been received by the Corporation, the
claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the c1aim and,
if successful in whole or in part, the claimant shall be entitled to be paid
also the expense of prosecuting such
claim.  It shall be a defense to
any such action (other than an action brought to enforce a claim for expenses
incurred in defending any proceeding in advance of its final disposition where
the required undertaking, if any is required, has been tendered to the
Corporation) that the claimant has not met the standards of conduct which make
it permissible under the GCL for the Corporation to indemnify the claimant for
the amount claimed but the burden of proving such defense shall be on the
Corporation.  Neither the failure of the
Corporation (including its Board of Directors, independent legal counsel or
stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is proper in the circumstances
because he or she has met the applicable standard of conduct set forth it the
GCL, nor an actual determination by the Corporation (including its Board of
Directors, independent legal counsel or stockholders) that the claimant has not
met such applicable standard of conduct, shall be a defense to the action or
create a presumption that the claimant has not met the applicable standard of
conduct.

 

(3)  The right
to indemnification and the payment of expenses incurred in defending a
proceeding in advance of its final disposition conferred in this Paragraph B
shall not be exclusive of any other right which any person may have or
hereafter acquire under any statute, provision of the certificate of
incorporation, By-Laws, agreement, vote of stockholders or disinterested
directors or otherwise.

 

(4)  The
Corporation may maintain insurance, at its expense, to protect itself and any
director, officer, employee or agent of the Corporation or another corporation,
partnership, joint venture, trust or other enterprise against any expense,
liability or loss, whether or not the Corporation would have the power to
indemnify such person against such expense, liability or loss under the GCL.

 

(5)  The
Corporation may, to the extent authorized from time to time by the Board of
Directors, grant rights to indemnification, and rights to be paid by the
Corporation for the expenses incurred in defending any proceeding in advance of
its' final disposition, to any agent of the Corporation to the fullest extent
of the provisions of this Paragraph B with respect to the indemnification and
advancement of expenses of directors, officers and employees of the
Corporation.

 

3

 

SEVENTH:  In furtherance and not in limitation of the
powers conferred by law or in this Certificate of Incorporation, the Board of
Directors (and any committee of the Board of Directors) is expressly
authorized, to the extent permitted by law, to take such action or actions as the
Board or such committee may determine to  be reasonably necessary or desirable
to (A) encourage any person to enter into negotiations with the Board of
Directors and management of the Corporation with respect to any transaction
which may result in a change in control of the Corporation which is proposed or
initiated by such person or (B) contest or oppose any such transaction which
the Board of Directors or such committee determines to be unfair, abusive or
otherwise undesirable with respect to the Corporation and its business, assets
or properties or the stockholders of the Corporation, including, without
limitation, the adoption of plans or the issuance of rights, options, capital
stock, notes, debentures or other evidences of indebtedness or other securities
of the Corporation, which rights, options, capital stock, notes, evidences of
indebtedness and other securities (i) may be exchangeable for or convertible
into cash or other securities on such terms and conditions  as
may be determined by the Board or such committee and (ii) may provide for the
treatment of any holder or class of holders thereof designated by the Board of
Directors or any such committee in respect of the terms, conditions, provisions
and rights of such securities which is different from, and unequal to, the terms,
conditions, provisions and rights applicable to all other holders thereof.

 

EIGHTH:  The Corporation reserves the right to amend,
alter, change or repeal any provision contained in this Certificate of
Incorporation, and any other provisions authorized by the laws of the State of
Delaware at the time in force may be added or inserted, subject to the
limitations set forth in this Certificate of Incorporation and in the manner
now or hereafter provided herein by statute, and all rights, preferences and
privileges of whatsoever nature conferred upon stockholders, directors or any
other persons whomsoever by and pursuant to this Certificate of Incorporation
in its present form or as amended are granted subject to the rights reserved in
this Article EIGHTH.

 

IN WITNESS WHEREOF, I have hereunto set my hand this 8th
day of December, 1998.

 

	
   

  	
  /s/ Marc E. Bailer

  
	
   

  	
  Marc E. Bailer

  
	
   

  	
  Sole Incorporator

  

 

4

 

Annex 2

 

 

	
   

  

 

BY-LAWS

 

OF

 

INAMED INTERNATIONAL
CORP.

 

AS ADOPTED ON

 

DECEMBER 8, 1998

	
   

  

 

 

ARTICLE 1.

 

STOCKHOLDERS

 

SECTION 1.1  Annual
Meetings.  An annual meeting of
stockholders to elect directors and transact such other business as may
properly be presented to the meeting shall be held at such place as the Board
of Directors may from time to time fix, if that day shall be a legal holiday in
the jurisdiction in which the meeting is to be held, then on the next day not a
legal holiday or as soon thereafter as may be practical, determined by the
Board of Directors.

 

SECTION 1.2  Special
Meetings.  A special meeting of
stockholders may be called at any time by two or more directors or the Chairman
of the Board or the President and shall be called by any of them or by the
Secretary upon receipt of a written request to do so specifying the matter or
matters, appropriate for action at such a meeting, proposed to be presented at
the meeting and signed by holders of record of a majority of the shares of
stock that would be entitled to be voted on such matter or matters if the
meeting were held on the day such request is received and the record date for
such meeting were the close of business on the preceding day.  Any such meeting shall be held at such time
and at such place, within or without the State of Delaware, as shall be
determined by the body or person calling such meeting and as shall be stated in
the notice of such meeting.

 

SECTION 1.3  Notice
of Meeting.  For each meeting of
stockholders written notice shall be given stating the place, date and hour
and, in the case of a special meeting, the purpose or purposes for which the
meeting is called.  Except as otherwise
provided by Delaware law, the written notice of any meeting shall be given not
less than 10 or more than 60 days before the date of the meeting to each
stockholder entitled to vote at such meeting. 
If mailed, notice shall be deemed to be given when deposited in the
United States mail, postage prepaid, directed to the stockholder at his address
as it appears on the records of the Corporation.

 

 

SECTION 1.4  Quorum.  Except as otherwise required by Delaware law
or the Certificate of Incorporation, the holders of record of a majority of the
shares of stock entitled to be voted present in person or represented by proxy
at a meeting shall constitute a quorum for the transaction of business at the
meeting, but in the absence of a quorum the holders of record present or
represented by proxy at such meeting may vote to adjourn the meeting from time
to time, without notice other than announcement at the meeting, until a quorum
is obtained.  At any such adjourned
session of the meeting at which there shall be present or represented the
holders of record of the requisite number of shares, any business may be
transacted that might have been transacted at the meeting as originally called.

 

SECTION 1.5  Chairman
and Secretary at Meeting.  At each
meeting of stockholders the Chairman of the Board, or in his absence the person
designated in writing by the Chairman of the Board, or if no person is so
designated, then a person designated by the Board of Directors, shall preside
as chairman of the meeting; if no person is so designated, then the meeting
shall choose a chairman by plurality vote. 
The Secretary, or in his absence a person designated by the chairman of
the meeting, shall act as secretary of the meeting.

 

SECTION 1.6  Voting;
Proxies.  Except as otherwise
provided by Delaware law or the Certificate of Incorporation, and subject to
the provisions of Section 1.10:

 

(a)  Each stockholder shall at every meeting of
the stockholders be entitled to one vote for each share of capital stock held
by him.

 

(b)  Each stockholder entitled to vote at a
meeting of stockholders or to express consent or dissent to corporate action in
writing without a meeting may authorize another person or persons to act for
him by proxy, but no such proxy shall be voted or acted upon after three years
from its date, unless the proxy provides for a longer period.

 

(c)  Directors shall be elected by a plurality
vote.

 

(d)  Each matter, other than election of
directors, properly presented to any meeting shall be decided by a majority of
the votes cast on the matter.

 

(e)  Election of directors and the vote on any
other matter presented to a meeting shall be by written ballot only if so
ordered by the chairman of the meeting or if so requested by any stockholder
present or represented by proxy at the meeting entitled to vote in such
election or on such matter, as the case may be.

 

SECTION 1.7  Adjourned
Meetings.  A meeting of stockholders
may be adjourned to another time or place as provided in Section 1.4.  Unless the Board of Directors fixes a new
record date, stockholders of record for an adjourned meeting shall be as
originally determined for the meeting from which the adjournment was
taken.  If the adjournment is for more
than 30 days, or if after the adjournment a new record date is fixed for the
adjourned meeting, a notice of the

 

2

 

adjourned meeting shall be given to each stockholder of record entitled
to vote.  At the adjourned meeting any
business may be transacted that might have been transacted at the meeting as
originally called.

 

SECTION 1.8  Consent
of Stockholders in Lieu of Meeting. 
Any action that may be taken at any annual or special meeting of
stockholders may be taken without a meeting, without prior notice and without a
vote, if a consent in writing, setting forth the action so taken, shall be
signed by the holders of outstanding stock having not less than the minimum
number of votes that would be necessary to authorize or take such action at a
meeting at which all shares entitled to vote thereon were present and
voted.  Notice of the taking of such
action shall be given promptly to each stockholder that would have been
entitled to vote thereon at a meeting of stockholders and that did not consent
thereto in writing.

 

SECTION 1.9  List
of Stockholders Entitled to Vote. 
At least 10 days before every meeting of stockholders a complete list of
the stockholders entitled to vote at the meeting, arranged in alphabetical
order and showing the address of each stockholder and the number of shares
registered in the name of each stockholder, shall be prepared and shall be open
to the examination of any stockholder for any purpose germane to the meeting,
during ordinary business hours, for a period of at least 10 days prior to the
meeting, at a place within the city where the meeting is to be held.  Such list shall be produced and kept at the
time and place of the meeting during the whole time thereof and may be
inspected by any stockholder who is present.

 

SECTION 1.10  Fixing
of Record Date.  In order that the
Corporation may determine the stockholders entitled to notice of or to vote at
any meeting of stockholders or any adjournment thereof, or to express consent
to corporate action in writing without a meeting, or entitled to receive
payment of any dividend or other distribution or allotment of any rights, or
entitled to exercise any rights in respect of any change, conversion or
exchange of stock or for the purpose of any other lawful action, the Board of
Directors may fix, in advance, a record date, which shall not be more than 60
or less than 10 days before the date of such meeting, nor more than 60 days
prior to any other action.  If no record
date is fixed, the record date for determining stockholders entitled to notice
of or to vote at a meeting of stockholders shall be at the close of business on
the day next preceding the day on which notice is given, or, if notice is
waived, at the close of business on the day next preceding the day on which the meeting is held; the record date
for determining stockholders entitled to express consent to corporate action in
writing without a meeting, when no prior action by the Board of Directors is necessary, shall be the day on which the
first written consent is expressed; and the
record date for any other purpose shall be at the close of business on
the day on which the Board of Directors adopts the resolution relating thereto.

 

3

 

ARTICLE 2.

 

DIRECTORS

 

SECTION 2.1  Number;
Term of Office; Qualifications; Vacancies. 
The number of the directors constituting the entire Board of Directors
shall be the number, not more than 15, fixed from time to time by a majority of
the total number of directors which the Corporation would have, prior to any
increase or decrease, if there were no vacancies, provided, however, that no
decrease shall shorten the term of an incumbent director.  Directors shall be elected at the annual
meeting of stockholders to hold office, subject to Sections 2.2 and 2.3, until
the next annual meeting of stockholders and until their respective successors
are elected and qualified.  Vacancies
and newly created directorships resulting from any increase in the authorized
number of directors may be filled by a majority of the directors then in
office, although less than a quorum, or by the sole remaining director, and the
directors so chosen shall hold office, subject to Sections 2.2 and 2.3, until
the next annual meeting of stockholders and until their respective successors
are elected and qualified.

 

SECTION 2.2  Resignation.  Any director of the Corporation may resign
at any time by giving written notice of such resignation to the Board of
Directors or the Secretary of the Corporation. 
Any such resignation shall take effect at the time specified therein or,
if no time be specified, upon receipt thereof by the Board of Directors or one
of the above-named officers; and, unless specified therein, the acceptance of
such resignation shall not be necessary to make it effective.  When one or more directors shall resign from
the Board of Directors effective at a future date, a majority of the directors
then in office, including those who have so resigned, shall have power to fill
such vacancy or vacancies, the vote thereon to take effect when such
resignation or resignations shall become effective, and each director so chosen
shall hold office as provided in these By-Laws in the filling of other
vacancies.

 

SECTION 2.3  Removal.  Any one or more directors may be removed,
with or without cause, by the vote or written consent of the holders of a
majority of the shares entitled to vote at an election of directors.

 

SECTION 2.4  Regular
and Annual Meetings; Notice. 
Regular meetings of the Board of Directors shall be held at such time
and at such place, within or without the State of Delaware, as the Board of Directors may from time to time
prescribe.  No notice need be given of
any regular meeting, and a notice, if given, need not specify the purposes
thereof.  A meeting of the Board of
Directors may be held without notice immediately after an annual meeting of
stockholders at the same place as that at which such meeting was held.

 

SECTION 2.5  Special
Meetings; Notice.  A special meeting
of the Board of Directors may be called at any time by the Board of Directors,
the Chairman of the Board or the President and shall be called by any one of
them or by the Secretary upon receipt of a written request to do so specifying
the matter or matters, appropriate for action at such a meeting, proposed to be
presented at the meeting and signed by at least two directors.  Any such meeting shall be held at such

 

4

 

time and at such place, within or without the State of Delaware, as
shall be determined by the body or person calling such meeting.  Notice of such meeting stating the time and
place thereof shall be given (a) by deposit of the notice in the United States
mail, first class, postage prepaid, at least seven days before the day fixed
for the meeting addressed to each director at his address as it appears on the
Corporation’s records or at such other address as the director may have
furnished the Corporation for that purpose, or (b) by delivery of the notice
similarly addressed for dispatch by telegraph, cable or radio or by delivery of
the notice by telephone or in person, in each case at least 24 hours before the
time fixed for the meeting.

 

SECTION 2.6  Presiding
Officer and Secretary at Meetings. 
Each meeting of the Board of Directors shall be presided over by the
Chairman of the Board or in his absence by such member of the Board of
Directors as shall be chosen at the meeting. 
The Secretary, or in his absence an Assistant Secretary, shall act as
secretary of the meeting, or if no such officer is present, a secretary of the
meeting shall be designated by the person presiding over the meeting.

 

SECTION 2.7  Quorum.  Three directors shall constitute a quorum
for the transaction of business, but in the absence of a quorum a majority of
those present (or if only one be present, then that one) may adjourn the
meeting, without notice other than announcement at the meeting, until such time
as a quorum is present.  The vote of the
majority of the directors present at a meeting at which a quorum is present
shall be the act of the Board of Directors.

 

SECTION 2.8  Meeting
by Telephone.  Members of the Board
of Directors or of any committee thereof may participate in meetings of the
Board of Directors or of such committee by means of conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other, and such participation shall constitute presence
in person at such meeting.

 

SECTION 2.9  Action
Without Meeting.  Unless otherwise
restricted by the Certificate of Incorporation, any action required or
permitted to be taken at any meeting of the Board of Directors or of any
committee thereof may be taken without a meeting if all members of the Board of
Directors or of such committee, as the case may be, consent thereto in writing
and the writing or writings are filed with the minutes of proceedings of the
Board of Directors or of such committee.

 

SECTION 2.10  Committees
of the Board.  The Board of
Directors may, by resolution passed by the whole Board of Directors, designate
one or more other committees, each such committee to consist of one or more
directors as the Board of Directors may from time to time determine.  Any such committee, to the extent provided
in such resolution or resolutions, shall have and may exercise the powers and
authority of the Board of Directors in the management of the business and
affairs of the Corporation, but no such committee shall have such power of
authority in reference to amending the Certificate of Incorporation, adopting
an agreement of merger or consolidation, recommending to the stockholders the
sale, lease or exchange of all or substantially all of the Corporation’s
property and assets, recommending to the stockholders a dissolution of the
Corporation or a revocation of a dissolution, or amending the By-Laws; and
unless the resolution

 

5

 

shall expressly so provide, no such committee shall have the power or
authority to declare a dividend or to authorize the issuance of stock.  In the absence or disqualification of a
member of a committee, the member or members thereof present at any meeting and
not disqualified from voting, whether or not he or they constitute a quorum,
may unanimously appoint another member of the Board of Directors to act at the
meeting in the place of any such absent or disqualified member.  Each such committee shall have such name as
may be determined from time to time by the Board of Directors.

 

SECTION 2.11  Compensation.  No director shall receive any stated salary
for his services as a director or as a member of a committee but shall receive
such sum, if any, as may from time to time be fixed by the action of a majority
of the stockholders.

 

ARTICLE 3.

 

OFFICERS

 

SECTION 3.1  Election;
Qualification.  The officers of the
Corporation shall be a Chairman of the Board, a President, one or more Vice
Presidents, a Secretary and a Treasurer, each of whom shall be selected by the
Board of Directors.  The Board of
Directors may elect a Controller, one or more Assistant Secretaries, one or
more Assistant Treasurers, one or more Assistant Controllers and such other
officers as it may from time to time determine.  Two or more offices may be held by the same person.

 

SECTION 3.2  Term
of Office.  Each officer shall hold
office from the time of his election and qualification to the time at which his
successor is elected and qualified, unless he shall die or resign or shall be
removed pursuant to Section 3.4 at any time sooner.

 

SECTION 3.3  Resignation.  Any officer of the Corporation may resign at
any time by giving written notice of such resignation to the Board of
Directors, the Chairman of the Board, the President or the Secretary of the
Corporation.  Any such resignation shall
take effect at the time specified therein or, if no time be specified, upon
receipt thereof by the Board of Directors or one of the above-named officers;
and, unless specified therein, the acceptance of such resignation shall not be
necessary to make it effective.

 

SECTION 3.4  Removal.  Any officer may be removed at any time, with
or without cause, by the vote of two directors if there are three directors or
less, or the vote of a majority of the whole Board of Directors if there are
more than three directors.

 

SECTION 3.5  Vacancies.  Any vacancy however caused in any office of
the Corporation may be filled by the Board of Directors.

 

SECTION 3.6  Compensation.  The compensation of each officer shall be
such as the Board of Directors may from time to time determine.

 

6

 

SECTION 3.7  Chairman
of the Board.  The Chairman of the
Board shall preside at all meetings of the Board of Directors and of the
shareholders, and shall have such powers and duties as generally pertain to the
office of Chairman of the Board, subject to the direction of the Board of
Directors.

 

SECTION 3.8  President.  The President shall be the chief executive
officer of the Corporation and shall have general charge of the business and
affairs of the Corporation, subject however to the right of the Board of
Directors to confer specified powers on officers and subject generally to the
direction of the Board of Directors.

 

SECTION 3.9  Vice
President.  Each Vice President
shall have such powers and duties as generally pertain to the office of Vice
President and as the Board of Directors or the President may from time to time
prescribe.  During the absence of the
president or his inability to act, the Vice President, or if there shall be
more than one Vice President, then that one designated by the Board of
Directors, shall exercise the powers and shall perform the duties of the
President, subject to the direction of the Board of Directors and the Executive
Committee, if any.

 

SECTION 3.10  Secretary.  The Secretary shall keep the minutes of all
meetings of stockholders and of the Board of Directors.  He shall be custodian of the corporate seal
and shall affix it or cause it to be affixed to such instruments as require
such seal and attest the same and shall exercise the powers and shall perform
the duties incident to the office of Secretary, subject to the direction of the
Board of Directors and the Executive Committee, if any.

 

SECTION 3.11  Other
Officers.  Each other officer of the
Corporation shall exercise the powers and shall perform the duties incident to
his office, subject to the direction of the Board of Directors and the
Executive Committee, if any.

 

ARTICLE 4.

 

CAPITAL STOCK

 

SECTION 4.1  Stock
Certificates.  The interest of each
holder of stock of the Corporation shall be evidenced by a certificate or
certificates in such form as the Board of Directors may from time to time prescribe.  Each
certificate shall be signed by or in the name of the Corporation by the Chairman of the Board, the President or a
Vice President  and by the Treasurer or an Assistant Treasurer or the Secretary or an
Assistant Secretary.  Any of or all the
signatures appearing on such certificate or certificates may be a
facsimile.  If any officer, transfer
agent or registrar who has signed or whose facsimile signature has been placed
upon a certificate shall have ceased to be such officer, transfer agent or
registrar before such certificate is issued, it may be issued by the
Corporation with the same effect as if he were such officer, transfer agent or
registrar at the date of issue.

 

7

 

SECTION 4.2  Transfer
of Stock.  Shares of stock shall be
transferable on the books of the Corporation pursuant to applicable law and
such rules and regulations as the Board of Directors shall from time to time
prescribe.

 

SECTION 4.3  Holders
of Record.  Prior to due presentment
for registration of transfer the Corporation may treat the holder of record of
a share of its stock as the complete owner thereof exclusively entitled to
vote, to receive notifications and otherwise entitled to all the rights and
powers of a complete owner thereof, notwithstanding notice to the contrary.

 

SECTION 4.4  Lost,
Stolen, Destroyed or Mutilated Certificates.  The Corporation shall issue a new certificate of stock to replace
a certificate theretofore issued by it alleged to have been lost, destroyed or
wrongfully taken, if the owner or his legal representative (i) requests
replacement, before the Corporation has notice that the stock certificate has
been acquired by a bona fide purchaser, (ii) files with the Corporation a bond
sufficient to indemnify the Corporation against any claim that may be made
against it on account of the alleged loss or destruction of any such stock
certificate or the issuance of any such new stock certificate; and (iii)
satisfies such other terms and conditions as the Board of Directors may from
time to time prescribe.

 

ARTICLE 5.

 

MISCELLANEOUS

 

SECTION 5.1  Indemnity.  The Corporation shall indemnify, subject to
the requirements of subsection (d) of this Section, any person who was or is a
party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the Corporation),
by reason of the fact that he is or was a director, officer, employee or agent
of the Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit or proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Corporation and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his conduct was
unlawful.  The termination of any
action, suit or proceeding by judgment, order; settlement, conviction or upon a
plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
Corporation and, with respect to any criminal action or proceeding, had
reasonable cause to believe that his conduct was unlawful.

 

(a)  The
Corporation shall indemnify, subject to the requirements of subsection (d) of
this Section, any person who was or is a party or is threatened to be made a
party to any threatened, pending or completed action or suit by or in the right
of the Corporation to procure a judgment in its favor by reason of the fact
that he is

 

8

 

or was a director, officer, employee or agent of the
Corporation or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys’
fees) actually and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
Corporation and except that no indemnification shall be made in respect of any claim,
issue or matter as to which such person shall have been adjudged to be liable
to the Corporation unless and only to the extent that the Court of Chancery of
the State of Delaware or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the Court of Chancery
of the State of Delaware or such other court shall deem proper.

 

(b)  To the
extent that a director, officer, employee or agent of the Corporation, or a
person serving in any other enterprise at the request of the Corporation, has
been successful on the merits or otherwise in defense of any action, suit or
proceeding referred to in subsection (a) and (b) of this Section, or in defense
of any claim, issue or matter therein, the Corporation shall indemnify him
against expenses (including attorneys’ fees) actually and reasonably incurred
by him in connection therewith.

 

(c)  Any
indemnification under subsections (a) and (b) of this Section (unless ordered
by a court) shall be made by the Corporation only as authorized in the specific
case upon a determination that indemnification of the director, officer,
employee or agent is proper in the circumstances because he has met the
applicable standard of conduct set
forth  in subsections (a) and (b) of this Section.  Such determination shall be made (1) by a
majority vote of the directors who are not parties to such action, suit or
proceeding, even though less than a quorum, or (2) if there are no such
directors, or if such directors so direct, by independent legal counsel in a
written opinion, or (3) by the Stockholders.

 

(d)  Expenses
incurred by a director, officer, employee or agent in defending a civil or
criminal action, suit or proceeding may be paid by the Corporation in advance
of the final disposition of such action, suit or proceeding as authorized by
the Board of Directors upon receipt of an undertaking by or on behalf of the
director, officer, employee or agent to repay such amount if it shall
ultimately be determined that he is not entitled to be indemnified by the
Corporation as authorized in this Section.

 

(e)  The
indemnification and advancement of expenses provided by or granted pursuant to,
the other subsections of this Section shall not limit the

 

9

 

Corporation from providing any other indemnification
or advancement of expenses permitted by law nor shall it be deemed exclusive of
any other rights to which those seeking indemnification may be entitled under
any by-law, agreement, vote of stockholders or disinterested directors or
otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office.

 

(f)  The
Corporation may purchase and maintain insurance on behalf of any person who is
or was a director, officer, employee or agent of the Corporation, or who is or
was serving at the request of the Corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise against any liability asserted against him and incurred by him in
any such capacity, or arising out of his status as such, whether or not the
Corporation would have the power to indemnify him against such liability under
the provisions of this Section.

 

(g)  The
indemnification and advancement of expenses provided by, or granted pursuant to
this section shall, unless otherwise provided when authorized or ratified,
continue as to a person who has ceased to be a director, officer, employee or
agent and shall inure to the benefit of the heirs, executors and administrators
of such a person.

 

(h)  For the
purposes of this Section, references to “the Corporation” shall include, in
addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which,
if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, employees or agents, so that any person who
is or was a director, officer, employee or agent of such constituent
corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, shall stand in the same
position under the provisions of this Section with respect to the resulting or
surviving corporation as he would have with respect to such constituent
corporation if its separate existence had continued.

 

(i)  This
Section 5.1 shall be construed to give the Corporation the broadest power
permissible by the Delaware General Corporation Law, as it now stands and as heretofore
amended.

 

SECTION 5.2  Waiver
of Notice.  Whenever notice is
required by the Certificate of Incorporation, the By-Laws or any provision of
the General Corporation Law of the State of Delaware, a written waiver thereof,
signed by the person entitled to notice, whether before or after the time
required for such notice, shall be deemed equivalent to notice.   Attendance of a person at a meeting shall
constitute a waiver of notice of such meeting, except when the person attends a
meeting for the express purpose of objecting, at the beginning of the meeting,
to the

 

10

 

transaction of any business because the meeting is not lawfully called
or convened.  Neither the business to be
transacted at, nor the purpose of, any regular or special meeting of the
stockholders, directors or members of a committee of directors need be
specified in any written waiver of notice.

 

SECTION 5.3  Fiscal
Year.  The fiscal year of the
Corporation shall start on such date as the Board of Directors shall from time
to time prescribe.

 

SECTION 5.4  Corporate
Seal.  The corporate seal shall be
in such form as the Board of Directors may from time to time prescribe, and the
same may be used by causing it or a facsimile thereof to be impressed or
affixed or in any other manner reproduced.

 

ARTICLE 6.

 

AMENDMENT OF BY-LAWS

 

SECTION 6.1  Amendment.  The By-Laws may be altered, amended or
repealed by the stockholders or by the Board of Directors by a majority vote.

 

11

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

INAMED INTERNATIONAL CORP.

 

BY
UNANIMOUS WRITTEN CONSENT

 

The undersigned, being all of the Directors of INAMED
International Corp., a Delaware corporation (the “Company”), and acting
pursuant to Section 141 of the Delaware General Corporation Law, hereby consent
in writing to the adoption of the following actions in lieu of a special
meeting of the Board of Directors:

 

GUARANTEE AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED Corporation (“Inamed”) intends
to enter into that certain Credit Agreement dated as of February 1, 2000 (the “Credit
Agreement”), by and among Inamed, the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication
Agent”).  Bear, Stearns & Co.
Inc., as sole lead arranger and sole book manager (the “Arranger”) and
the Administrative Agent;

 

WHEREAS, pursuant to the terms of the Credit
Agreement, the Company, as a subsidiary of Inamed, is required to guaranty all
of Inamed’s obligations under the Credit Agreement (the “Obligations”,
as defined under the Credit Agreement), by entering into that certain Guarantee
and Collateral Agreement (the “Guarantee and Collateral Agreement”)
dated of even date with the Credit Agreement, a copy of which has been presented
to the Board.

 

WHEREAS, pursuant to the terms and conditions of the
Credit Agreement, the Company, as a subsidiary of Inamed, is required to secure
payment and performance of the Obligations, also by entering into that same
Guarantee and Collateral Agreement (as defined above), whereby the Company
would grant to Administrative Agent, for the benefit of the Administrative
Agent and the Lenders, a perfected, first priority Lien on all of its right,
title and interest in all of its personal property, including but not limited
to all capital stock of its domestic

 

 

subsidiaries, 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licences, material
property, etc.

 

WHEREAS, the Board of Directors of the Company has
determined that in order to give effect to the Credit Agreement, it is
advisable and in the best interests of the Company that the Company enter into
the Guarantee and Collateral Agreement and each of the transactions
contemplated thereby;

 

NOW, THEREFORE, BE IT RESOLVED, that the Board of
Directors deems it advisable and in the best interests of the Company to enter
into the Guarantee and Collateral Agreement and any other documents
contemplated thereby and such documents hereby are authorized and approved,
with such changes thereto as the Chairman, the President, any Vice President or
the Secretary of the Company (the “proper officers”) may approve, such
approval to be conclusively evidenced by such officer’s or officers’ execution
and delivery thereof;

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized, empowered and directed, in
the name and on behalf of the Company, to enter into the Guarantee and
Collateral Agreement, substantially on the terms and conditions as presented
and described to the Board, with such changes thereto as the proper officers
may approve, such approval to be conclusively evidenced by such officer’s or
officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized and directed to enter into
such other agreements, documents, promissory notes, and instruments with
respect to any of the foregoing, in such form and on such terms and conditions
as may be agreed to by the proper officers of the Company, Administrative Agent
and the Lenders, and to take such other actions with respect to the foregoing
as may be required by Administrative Agent and the Lenders; and that the proper
officers of the Company be, and each of them hereby is, authorized, directed
and empowered, in the name and on behalf of the Company, to execute and deliver
such other agreements, documents, promissory notes, deeds of trust, mortgages
and other instruments and to perform all other acts as such officers shall
approve in connection with any of the above, the execution of such agreements,
documents, promissory notes and other instruments or the taking of any such
actions to be conclusive evidence of such approval.

 

2

 

GENERAL AUTHORIZATIONS

 

RESOLVED, that the officers of the Company be, and
each of them hereby is, authorized, empowered and directed, in the name and on
behalf of the Company, to do or cause to be done all such other acts or things,
and to execute and deliver, or cause to be executed and delivered, all such
other documents, instruments, agreements, notes, undertakings, guarantees and
certificates of any kind and nature whatsoever, as such officer or officers may
deem necessary or appropriate to effectuate or carry out the purposes and
intent of the foregoing resolutions; all such other actions to be performed in
such manner, and all such other documents, instruments, agreements, notes,
undertakings, guarantees and certificates to be executed and delivered in such
form, as the officer or officers performing or executing the same shall
approve, such officer’s or officers’ approval thereof to be conclusively
evidenced by the performance of any such other action or the execution and
delivery of any such other documents, instruments, agreements, notes,
undertakings and certificates; and

 

RESOLVED FURTHER, that all acts and things previously
done by any of the officers of the Company, on or prior to the date hereof, in
the name and on behalf of the Company, in connection with the transactions
contemplated by the foregoing resolutions, are in all respects ratified,
approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company.

 

* * *

 

3

 

 

This Unanimous Written Consent may be executed in one or more counterparts, each of
which shall be considered as an original.  The Secretary of the Company shall file this
Unanimous Written Consent in the minute book of the Company and it shall become part of the records
of the Company.

 

	
  Dated: 
  February 1, 2000

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard G. Babbitt

  
	
   

  	
  Richard G. Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
   

  
	
   

  	
  /s/ John E. Williams, M.D.

  
	
   

  	
  John E. Williams, M.D.

  
	
   

  	
   

  

 

4

 

Annex 4

 

 

State of Delaware

 

Office of the Secretary of State

 

I, EDWARD J. FREEL, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY THAT “INAMED INTERNATIONAL CORP.” IS DULY INCORPORATED
UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN GOOD STANDING AND HAS A LEGAL
CORPORATE EXISTENCE NOT HAVING BEEN CANCELLED OR DISSOLVED SO FAR AS THE
RECORDS OF THIS OFFICE SHOW AND IS DULY AUTHORIZED TO TRANSACT BUSINESS.

 

THE FOLLOWING DOCUMENTS HAVE BEEN FILED:

 

CERTIFICATE OF INCORPORATION, FILED THE EIGHTH DAY OF
DECEMBER, A.D. 1998, AT 3 O’CLOCK P.M.

 

AND I DO HEREBY FURTHER CERTIFY THAT THE AFORESAID
CERTIFICATES ARE THE ONLY CERTIFICATES ON RECORD OF THE AFORESAID CORPORATION.

 

AND I DO HEREBY FURTHER CERTIFY THAT THE FRANCHISE
TAXES HAVE BEEN PAID TO DATE.

 

	
   

  	
   

  	
  /s/ Edward J. Freel

  
	
   

  	
  [SEAL]

  	
   Edward J. Freel, Secretary of State

  
	
   

  	
   

  	
   

  
	
  2975829   
  8310

  	
   

  	
  AUTHENTICATION: 
  0217784

  
	
  001039246

  	
   

  	
                          DATE: 
  01-26-00

  

 

 

INAMED JAPAN, INC.

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made to the Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Inamed Corporation
(the “Borrower”), the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent. 
Capitalized terms used herein
and not otherwise defined shall have the meanings assigned in the Loan
Agreement.  This certificate is being
delivered pursuant to Section 5.1(g) of the Credit Agreement.

 

I, David E. Bamberger, hereby certify that I am the
Secretary of INAMED JAPAN, INC. (the “Company”), and as such have access to the
Company’s corporate records and am familiar with the matters therein contained
and herein certified, and that:

 

1.             Attached
hereto as Annex 1 is a true, correct and complete copy of the Articles of
Incorporation of the Company, as filed with the Secretary of State of the State
of Nevada on September 12, 1994.

 

2.             Attached
hereto as Annex 2 is a true, correct and complete copy of the By-laws of the
Company as presently in effect on and as of the date hereof, which By-laws are
in full force and effect in said form without modification, amendment,
rescission or repeal in any respect.

 

3.             Attached
hereto as Annex 3 is a true, correct and complete copy of resolutions adopted
by unanimous written consent in lieu of a meeting in accordance with applicable
laws and the Articles of Incorporation and By-laws of the Company, and such
resolutions (i) were duly adopted by the Board of Directors of the Company and
are in full force and effect on and as of the date hereof, not having been in
any way amended, altered or repealed, and (ii) constitute the only resolutions
of the Board of Directors of the Company relating to the subject matter of the
Credit Agreement, the other Loan Documents and the transactions contemplated
thereby.

 

 

4.             Attached
hereto as Annex 4 is (i) a true, correct and complete copy of a certificate
from the Office of the Secretary of State of the State of Nevada indicating
that the Company is in good standing.

 

5.             There
are no consents, licenses or approvals required in connection with the
execution, delivery and performance by the Company or the validity and
enforceability against the Company of the Loan Documents to which it is a
party.

 

6.             The
following persons are duly qualified and acting officers of the Company, each
of whom is authorized to sign any of the Loan Documents to which the Company is
a party, and each of whom is duly elected to the office set forth opposite his
respective name; the signature appearing opposite the name of each such officer
is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  PRESIDENT

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/ David E. Bamberger

  

 

IN WITNESS WHEREOF, the undersigned has executed this
Secretary’s Certificate as of the 1 day of February, 2000.

 

	
   

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E. Bamberger

  
	
   

  	
  Secretary

  

 

2

 

I, Ilan K. Reich, President of the Company, hereby
certify that David E. Bamberger is the duly elected Secretary of the Company and
that the signature appearing above is his genuine signature.

 

	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  President

  

 

3

 

Annex 1

 

Inamed Japan, Inc.

 

 

ARTICLES OF INCORPORATION

 

OF

 

INAMED JAPAN, INC.

 

 

I, the person hereinafter named as incorporator, for
the purpose of associating to establish a corporation, under the provisions and
subject to the requirements of Title 7, Chapter 78 of Nevada Revised Statutes,
and the acts amendatory thereof, and hereinafter sometimes referred to as the
General Corporation Law of the State of Nevada, do hereby adopt and make the
following Articles of Incorporation:

 

FIRST:  The name of the corporation (hereinafter
called the corporation) is INAMED JAPAN, INC.

 

SECOND:  The name of the corporation’s resident agent
in the State of Nevada is The Prentice-Hall Corporation System, Nevada, Inc.,
and the street address of the said resident agent where process may be served
on the corporation is 502 East John Street, Carson City 89706.  The mailing address and the street address
of the said resident agent are identical.

 

THIRD:  The number of shares the corporation is
authorized to issue is Twenty-Five Thousand (25,000), all of which are without
nominal or par value.  All such shares are
of one class and are designated as Common Stock.

 

FOURTH:  The governing board of the corporation shall
be styled as a “Board of Directors,” and any member of said Board shall be
styled as a “Director.”

 

The number of members constituting the first Board of
Directors of the corporation is Two (2); and the name and the post office box
or street address, either residence or business, of
each of said members are as follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  Donald McGhan

  	
   

  	
  3800 Howard Hughes Parkway, Suite 900

  Las Vegas, Nevada 89109

  
	
   

  	
   

  	
   

  
	
  Michael D.
  Farney

  	
   

  	
  3800 Howard Hughes Parkway, Suite 900

  Las Vegas, Nevada 89109

  

 

1

 

The number of directors of the corporation may be
increased or decreased in the manner provided in the Bylaws of the corporation;
provided, that the number of directors shall never be less than one.  In the interim between election of directors
by stockholders entitled to vote, all vacancies, including vacancies caused by
an increase in the number of directors and including vacancies resulting from the
removal of directors by the stockholders entitled to vote which are not filled
by said stockholders, may be filled by the remaining directors, though less
than a quorum.

 

FIFTH:  The name and the post office box or street
address, either residence or business, of the incorporator signing these
Articles of Incorporation is as follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  C. A. Ver Hoeve

  	
   

  	
  5670 Wilshire Boulevard, Suite 750

  Los Angeles, California 90036

  

 

SIXTH:  The Corporation shall have perpetual
existence.

 

SEVENTH:  The personal liability of the directors of
the corporation is hereby eliminated to the fullest extent permitted by the
General Corporation Law of the State of Nevada, as the same may be amended and
supplemented.

 

EIGHTH:  The corporation shall, to the fullest extent
permitted by the General Corporation Law of the State of Nevada, as the same
may be amended and supplemented, indemnify any and all persons whom it shall
have power to indemnify under said Law from and against any and all of the
expenses, liabilities, or other matters referred to in or covered by said Law,
and the indemnification provided for herein shall not be deemed exclusive of
any other rights to which those indemnified may be entitled under any Bylaw, agreement,
vote of stockholders or disinterested directors or otherwise, both as to action
in his official capacity and as to action in another capacity while holding
such office, and shall continue as to a person who has ceased to be a director,
officer, employee, or agent and shall inure to the benefit of the heirs,
executors, and administrators of such a person.

 

NINTH:  The corporation may engage in any lawful
activity.

 

2

 

TENTH:  The corporation reserves the right to amend,
alter, change, or repeal any provision contained in these Articles of
Incorporation in the manner now or hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this
reservation.

 

IN WITNESS WHEREOF, I do hereby execute these Articles
or Incorporation on September 9, 1994.

 

	
   

  	
   

  
	
   

  	
  /s/ C.A. Ver Hoeve

  
	
   

  	
  C. A. Ver Hoeve

  

 

 

3

 

CALIFORNIA
ALL–PURPOSE ACKNOWLEDGMENT

 

	
  State of

  	
  California

  	
   

  	
   

  	
   

  
	
  County of 

  	
  Los Angeles

  	
   

  	
   

  	
   

  
	
  On

  	
  9/9/94

  	
   

  	
  before me,

  	
  /s/ Mary Galstian, Notary Public

  
	
   

  	
  DATE

  	
   

  	
   

  	
   NAME, TITLE OF OFFICER-EG-JANE DOE NOTARY
  PUBLIC

  
	
  personally appeared

  	
  C.A.Ver Hoeve

  
	
   

  	
  NAME(S) OF SIGNER(S)

  	
   

  	
   

  
									

 

ý personally known to me - OR -  o
proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

 

	
   

  	
  WITNESS my hand and official seal

  
	
   

  	
   

  
	
  [SEAL]

  	
  /s/ Mary Galstian

  
	
   

  	
  SIGNATURE OF NOTARY

  

 

OPTIONAL

 

Though the data below is not required by law, it may prove valuable to
persons relying on the document and could prevent fraudulent reattachment of
this form

 

	
   

  	
   

  	
   

  
	
  CAPACITY
  CLAIMED BY SIGNER

  	
   

  	
  DESCRIPTION
  OF ATTACHED DOCUMENT

  
	
   

  	
   

  	
   

  
	
  o
  INDIVIDUAL

  	
   

  	
   

  
	
  o
  CORPORATE OFFICER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TITLE(S)

  	
   

  	
  TITLE OR TYPE OF DOCUMENT

  
	
   

  	
   

  	
   

  
	
  o
  PARTNER(S)                        o
  LIMITED

  	
   

  	
   

  
	
                                 o
  GENERAL

  	
   

  	
   

  
	
   

  	
   

  	
  NUMBER OF PAGES

  
	
  o
  ATTORNEY-IN-FACT

  	
   

  	
   

  
	
  o
  TRUSTEE(S) 

  	
   

  	
   

  
	
  o
  GUARDIAN/CONSERVATOR

  	
   

  	
   

  
	
  o
  OTHER

  	
   

  	
   

  
	
   

  	
   

  	
  DATE OF DOCUMENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNER IS REPRESENTING:

  	
   

  	
   

  
	
  NAME OF PERSONS OR ENTITIES

  	
   

  	
   

  
	
  I

  	
   

  	
  SIGNER(S) OTHER THAN
  NAMED ABOVE

  
	
   

  	
   

  	
   

  

 

 

Annex 2

 

 

BYLAWS

 

OF

 

INAMED JAPAN, INC.

 

(a Nevada corporation)

 

ARTICLE
I

 

STOCKHOLDERS

 

1.  CERTIFICATES
REPRESENTING  STOCK.  Every
holder of stock in the corporation shall be entitled to have a certificate
signed by, or in the name of, the corporation by the Chairman or Vice-Chairman
of the Board of Directors, if any, or by the President or a Vice-President and
by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant
Secretary of the corporation or by agents designated by the Board of Directors,
certifying the number of shares owned by him in the corporation and setting
forth any additional statements that may be required by the General Corporation
Law of the State of Nevada (General Corporation Law).  If any such certificate is countersigned or otherwise
authenticated by a transfer agent or transfer clerk or by a registrar other
than the corporation, a facsimile of the signature of any such officers or
agents designated by the Board may be printed or lithographed upon such
certificate in lieu of the actual signatures. 
If any officer or officers who shall have signed, or whose facsimile
signature or signatures shall have been used on any certificate or certificates
shall cease to be such officer or officers of the corporation before such
certificate or certificates shall have been delivered by the corporation, the
certificate or certificates may nevertheless be adopted by the corporation and
be issued and delivered as though the person or persons who signed such
certificate or certificates, or whose facsimile signature or signatures shall
have been used thereon, had not ceased to be such officer or officers of the
corporation.

 

Whenever the corporation shall be authorized to issue
more than one class of stock or more than one series of any class of stock, the
certificates representing stock of any such class or series shall set forth
thereon the statements prescribed by the General Corporation Law.  Any restrictions on the transfer or
registration of transfer of any shares of stock of any class or series shall be
noted conspicuously on the certificate representing such shares.

 

 

1

 

The corporation may issue a new certificate of stock
in place of any certificate theretofore issued by it, alleged to have been
lost, stolen, or destroyed, and the Board of Directors may require the owner of
any lost, stolen, or destroyed certificate, or his legal representative, to
give the corporation a bond sufficient to indemnify the corporation against any
claim that may be made against it on account of the alleged loss, theft, or
destruction of any such certificate or the issuance of any such new
certificate.

 

2.  FRACTIONAL
SHARE  INTERESTS.  The
corporation shall not be obliged to but may execute and deliver a certificate
for or including a fraction of a share. 
In lieu of executing and delivering a certificate for a fraction of a
share, the corporation may pay to any person otherwise entitled to become a
holder of a fraction of a share an amount in cash specified for such purpose as
the value thereof in the resolution of the Board of Directors, or other
instrument pursuant to which such fractional share would otherwise be issued,
or, if not specified therein, then as may be determined for such purpose by the
Board of Directors of the issuing corporation; or may execute and deliver
registered or bearer scrip over the manual or facsimile signature of an officer
of the corporation or of its agent for that purpose, exchangeable as therein
provided for full share certificates, but such scrip shall not entitle the
holder to any rights as a stockholder except as therein provided.  Such scrip may provide that it shall become
void unless the rights of the holders are exercised within a specified period
and may contain any other provisions or conditions that the corporation shall
deem advisable.  Whenever any such scrip
shall cease to be exchangeable for full share certificates, the shares that
would otherwise have been issuable as therein provided shall be deemed to be
treasury shares unless the scrip shall contain other provision for their
disposition.

 

3.  STOCK
TRANSFERS.  Upon compliance with
provisions restricting the transfer or registration of transfer of shares of
stock, if any, transfers or registration of transfers of shares of stock of the
corporation shall be made only on the stock ledger of the corporation by the
registered holder thereof, or by his attorney thereunto authorized by power of
attorney duly executed and filed with the Secretary of the corporation or with
a transfer agent or a registrar, if any, and on surrender of the certificate or
certificates for such shares of stock properly endorsed and the payment of all
taxes, if any, due thereon.

 

4.  RECORD
DATE  FOR  STOCKHOLDERS. 
For the purpose of determining the stockholders entitled to notice of or
to vote at any meeting of stockholders or any adjournment thereof, or to
express consent to corporate action in writing without a meeting, or entitled
to receive payment of any dividend or other distribution or the allotment of
any rights, or entitled to exercise any rights in respect of any change,
conversion, or exchange of stock or for the purpose of any other lawful action,
the directors may fix, in advance, a record date, which shall not be more than
sixty days nor less than ten days before the date of such meeting, nor more
than sixty days prior to any other action. 
If no record date is fixed, the record date for determining stockholders
entitled to notice of

 

 

2

 

or to vote at a meeting of stockholders shall be at the close of
business on the day next preceding the day on which notice is given, or, if
notice is waived, at the close of business on the day next preceding the day on
which the meeting is held; the record date for determining stockholders
entitled to express consent to corporate action in writing without a meeting,
when no prior action by the Board of Directors is necessary, shall be the day
on which the first written consent is expressed; and the record date for
determining stockholders for any other purpose shall be at the close of
business on the day on which the Board of Directors adopts the resolution relating
thereto.  A determination of
stockholders of record entitled to notice of or to vote at any meeting of
stockholders shall apply to any adjournment of the meeting; provided, however,
that the Board of Directors may fix a new record date for the adjourned
meeting.

 

5.  MEANING
OF  CERTAIN  TERMS. 
As used in these Bylaws in respect of the right to notice of a meeting
of stockholders or a waiver thereof or to participate or vote thereat or to
consent or dissent in writing in lieu of a meeting, as the case may be, the
term “share” or “shares” or “share of stock” or “shares of stock” or
“stockholder” or “stockholders” refers to an outstanding share or shares of
stock and to a holder or holders of record of outstanding shares of stock when
the corporation is authorized to issue only one class of shares of stock, and
said reference is also intended to include any outstanding share or shares of
stock and any holder or holders of record of outstanding shares of stock of any
class upon which or upon whom the Articles of Incorporation confers such rights
where there are two or more classes or series of shares of stock or upon which
or upon whom the General Corporation Law confers such rights notwithstanding
that the articles of incorporation may provide for more than one class or
series of shares of stock, one or more of which are limited or denied such
rights thereunder; provided, however, that no such right shall vest in the
event of an increase or a decrease in the authorized number of shares of stock
of any class or series which is otherwise denied voting rights under the
provisions of the Articles of Incorporation.

 

6.  STOCKHOLDER
MEEET1NGS.

 

- TIME. 
The annual meeting shall be held on the date and at the time fixed, from
time to time, by the directors, provided, that the first annua1 meeting shall
be held on a date within thirteen months after the organization of the
corporation, and each successive annual meeting shall be held on a date within
thirteen months after the date of the preceding annual meeting.  A special meeting shall be held on the date
and at the time fixed by the directors.

 

- PLACE. 
Annual meetings and special meetings shall be held at such place, within
or without the State of Nevada, as the directors may, from time to time, fix.

 

 

3

 

- CALL. 
Annual meetings and special meetings may be called by the directors or
by any officer instructed by the directors to call the meeting.

 

- NOTICE  OR  WAIVER  OF  NOTICE.  Notice of all meetings shall be in writing,
and signed by the President or a Vice-President, or the Secretary, or an
Assistant Secretary, or by such other person or persons as the directors must
designate.  The notice must state the
purpose or purposes for which the meeting is called and the time when, and the
place, where it is to be held.  A copy
of the notice must be either delivered personally or mailed postage prepaid to
each stockholder not less than ten nor more than sixty days before the meeting.  If mailed, it must be directed to the stockholder
at his address as it appears upon the records of the corporation.  Any stockholder may waive notice of any
meeting by a writing signed by him or his duly authorized attorney, either
before or after the meeting; and whenever notice of any kind is required to be
given under the provisions of the General Corporation Law, a waiver thereof in
writing and duly signed whether before or after the time stated therein, shall
be deemed equivalent thereto.

 

- CONDUCT  OF  MEETING.  Meetings of the stockholders shall be
presided over by one of the following officers in the order of seniority and if
present and acting - the Chairman of the Board, if any, the Vice-Chairman of
the Board, if any, the President, a Vice-President, or, if none of the
foregoing is in office and present and acting, by a chairman to be chosen by
the stockholders.  The Secretary of the
corporation, or in his absence, an Assistant Secretary, shall act as secretary
of every meeting, but if neither the Secretary nor an Assistant Secretary is present
the Chairman of the meeting shall appoint a secretary of the meeting.

 

- PROXY  REPRESENTATION.  Every stockholder may authorize another
person or persons to act for him by proxy in any manner described in, or
otherwise authorized by, the provisions of Section 78.355 of the General
Corporation Law.

 

- INSPECTORS. 
The directors, in advance of any meeting, may, but need not, appoint one
or more inspectors of election to act at the meeting or any adjournment
thereof.  If an inspector or inspectors
are not appointed, the person presiding at the meeting may, but need not,
appoint one or more inspectors.  In case
any person who may be appointed as an inspector fails to appear or act, the
vacancy may be filled by appointment made by the directors in advance of the
meeting or at the meeting by the person presiding thereat.  Each inspector, if any, before entering upon
the discharge of his duties, shall take and sign an oath faithfully to execute
the duties of inspector at such meeting with strict impartiality and according
to the best of his ability.  The
inspectors, if any, shall determine the number of shares of stock outstanding
and the voting power of each, the shares of stock represented at the meeting,
the existence of a quorum, the validity and effect of proxies, and shall
receive votes, ballots or consents, hear and determine all challenges and
questions arising in connection with the right to vote, count and tabulate all
votes, ballots or consents,

 

 

4

 

determine the result, and do such acts as are proper to conduct the
election or vote with fairness to all stockholders.  On request of the person presiding at the meeting, the inspector
or inspectors, if any, shall make a report in writing of any challenge, question
or matter determined by him or them and execute a certificate of any fact found
by him or them.

 

- QUORUM. 
Stockholders holding at least a majority of the voting power are
necessary to constitute a quorum at a meeting of stockholders for the transaction
of business unless the action to be taken at the meeting shall require a
greater proportion.  The stockholders
present may adjourn the meeting despite the absence of a quorum.

 

- VOTING. 
Each share of stock shall entitle the holder thereof to one vote.  In the election of directors, a plurality of
the votes cast shall elect.  Any other
action shall be authorized by stockholders who hold at least a majority of the
voting power and are present at a meeting at which a quorum is present, except
where the General Corporation Law, the Articles of Incorporation, or these
Bylaws prescribe a different percentage of votes and/or a different exercise of
voting power.  In the election of
directors, voting need not be by ballot; and, except as otherwise may be provided
by the General Corporation Law, voting by ballot shall not be required for any
other action.

 

7.  STOCKHOLDER
ACTION  WITHOUT  MEETINGS. 
Except as may otherwise be provided by the General Corporation Law, any
action required or permitted to be taken at a meeting of the stockholders may
be taken without a meeting if a written consent thereto is signed by
stockholders holding at least a majority of the voting power; provided that if
a different proportion of voting power is required for such an action at a
meeting, then that proportion of written consents is required.  In no instance where action is authorized by
written consent need a meeting of stockholders be called or noticed.  Any written consent shall be subject to the
requirements of Section 78.320 of the General Corporation Law and of any other
applicable provision of law.

 

ARTICLE II

 

DIRECTORS

 

1. FUNCTIONS  AND  DEFINITION.  The business and affairs of the corporation
shall be managed by the Board of Directors of the corporation.  The Board of Directors shall have authority
to fix the compensation of the members thereof for services in any
capacity.  The use of the phrase “whole
Board” herein refers to the total number of directors which the corporation would
have if there were no vacancies.

 

2. QUALIFICATIONS  AND  NUMBER.  Each director must be at least 18 years of
age.  A director need not be a
stockholder or a resident of the State of Nevada.  The initial Board of Directors shall consist of 2 persons.  Thereafter the number of

 

 

5

 

directors constituting the whole board shall be at least one.  Subject to the foregoing limitation and
except for the first Board of Directors, such number may be fixed from time to
time by action of the stockholders or of the directors, or, if the number is
not fixed, the number shall be.  The
number of directors may be increased or decreased by action of the stockholders
or of the directors.

 

3. ELECTION  AND  TERM.  Directors may be elected in the manner
prescribed by the provisions of Sections 78.320 through 78.335 of the General
Corporation Law of Nevada.  The first
Board of Directors shall hold office until the first election of directors by
stockholders and until their successors are elected and qualified or until their
earlier resignation or removal.  Any
director may resign at any time upon written notice to the corporation.  Thereafter, directors who are elected at an
election of directors by stockholders, and directors who are elected in the
interim to fill vacancies and newly created directorships, shall hold office
until the next election of directors by stockholders and until their successors
are elected and qualified or until their earlier resignation or removal.  In the interim between elections of
directors by stockholders, newly created directorships and any vacancies in the
Board of Directors, including any vacancies resulting from the removal of
director's for cause or without cause by the stockholders and not filled by
said stockholders, may be filled by the vote of a majority of the remaining
directors then in office, although less than a quorum, or by the sole remaining
director.

 

4. MEETINGS.

 

- TIME. 
Meetings shall be held at such time as the Board shall fix, except that
the first meeting of a newly elected Board shall be held as soon after its
election as the directors may conveniently assemble.

 

- PLACE. 
Meetings shall be held at such place within or without the State of
Nevada as shall be fixed by the Board.

 

- CALL. 
No call shall be required for regular meetings for which the time and
place have been fixed.  Special meetings
may be called by or at the direction of the Chairman of the Board, if any, the
Vice-Chairman of the Board, if any, of the President, or of a majority of the
directors in office.

 

- NOTICE  OR  ACTUAL  OR  CONSTRUCTIVE
WAIVER.  No notice shall be
required for regular meetings for which the time and place have been
fixed.  Written, oral, or any other mode
of notice of the time and place shall be given for special meetings in
sufficient time for the convenient assembly of the directors thereat.  Notice if any need not be given to a
director or to any member of a committee of directors who submits a written
waiver of notice signed by him before or after the time stated therein.

 

 

6

 

- QUORUM  AND  ACTION.  A majority of the whole Board shall
constitute a quorum except when a vacancy or vacancies prevents such majority,
whereupon a majority of the directors in office shall constitute a quorum provided,
that such majority shall constitute at least one-third of the whole Board.  A majority of the directors present, whether
or not a quorum is present, may adjourn a meeting to another time and place.  Except as the Articles of Incorporation or
these Bylaws may otherwise provide, and except as otherwise provided by the
General Corporation Law, the act of a majority of the directors present at a
meeting at which a quorum is present is the act of the Board.  The quorum and voting provisions herein
stated shall not be construed as conflicting with any provisions of the General
Corporation Law and these Bylaws which govern a meeting of directors held to
fill vacancies and newly created directorships in the Board or action of
disinterested directors.

 

Members of the Board or of any committee which may be
designated by the Board may participate in a meeting of the Board or of any
such committee, as the case may be, by means of a telephone conference or
similar method of communication by which all persons participating in the
meeting hear each other.  Participation
in a meeting by said means constitutes presence in person at the meeting.

 

- CHAIRMAN  OF  THE  MEETING.  The Chairman of the Board, if any and if
present and acting, shall preside at all meetings.  Otherwise, the Vice-Chairman of the Board, if any and if present
and acting, or the President, if present and acting, or any other director
chosen by the Board, shall preside.

 

5.  REMOVAL
OF  DIRECTORS.  Any or all
of the directors may be removed for cause or without cause in accordance with
the provisions of the General Corporation Law.

 

6.  COMMITTEES.  Whenever its number consists of two or more,
the Board of Directors may designate one or more committees which have such
powers and duties as the Board shall determine.  Any such committee, to the extent provided in the resolution or
resolutions of the Board, shall have and may exercise the powers and authority
of the Board of Directors in the management of the business and affairs of the
corporation and may authorize the seal or stamp of the corporation to be
affixed to all papers on which the corporation desires to place a seal or
stamp.  Each committee must include at
least one director.  The Board of
Directors may appoint natural persons who are not directors to serve on
committees.

 

7.  WRITTEN
ACTION.  Any action required or
permitted to be taken at a meeting of the Board of Directors or of any
committee thereof may be taken without a meeting if, before or after the
action, a written consent thereto is signed by all the members of the Board or
of the committee, as the case may be.

 

 

7

 

ARTICLE
III

 

OFFICERS

 

1.  The
corporation must have a President, a Secretary, and a Treasurer, and, if deemed
necessary, expedient, or desirable by the Board of Directors, a Chairman of the
Board, a Vice-Chairman of the Board, an Executive Vice-President, one or more
other Vice-Presidents, one or
more Assistant Secretaries, one or more Assistant Treasurers, and such other
officers and agents with such titles as the resolution choosing them shall
designate.  Each of any such officers
shall be chosen by the Board of Directors or chosen in the manner determined by
the Board of Directors.

 

2.  QUALIFICATIONS.  Except as may otherwise be provided in the
resolution choosing him, no officer other than the Chairman of the Board, if
any, and the Vice-Chairman of the Board, if any, need be a director.

 

Any person may hold two or more offices, as the
directors may determine.

 

3.  TERM
OF  OFFICE.  Unless
otherwise provided in the resolution choosing him, each officer shall be chosen
for a term which shall continue until the meeting of the Board of Directors
following the next annual meeting of stockholders and until his successor shall
have been chosen and qualified.

 

Any officer may be removed, with or without cause, by
the Board of Directors or in the manner determined by the Board.

 

Any vacancy in any office may be filled by the Board
of Directors or in the manner determined by the Board.

 

4.  DUTIES
AND  AUTHORITY.  All
officers of the corporation shall have such authority and perform such duties
in the management and operation of the corporation as shall be prescribed in
the resolution designating and choosing such officers and prescribing their
authority and duties, and shall have such additional authority and duties as
are incident to their office except to the extent that such resolutions or
instruments may be inconsistent therewith.

 

 

8

 

ARTICLE
IV

 

REGISTERED
OFFICE

 

The location of the initial registered office of the
corporation in the State of Nevada is the address of the initial resident agent
of the corporation, as set forth in the original Articles of Incorporation.

 

The corporation shall maintain at said registered
office a copy, certified by the Secretary of State of the State of Nevada, of
its Articles of Incorporation, and all amendments thereto, and a copy,
certified by the Secretary of the corporation, of these Bylaws, and all amendments
thereto.  The corporation shall also
keep at said registered office a stock ledger or a duplicate stock ledger,
revised annually, containing the names, alphabetically arranged, of all persons
who are stockholders of the corporation, showing their places of residence, if
known, and the number of shares held by them respectively or a statement
setting out the name of the custodian of the stock ledger or duplicate stock
ledger, and the present and complete post office address, including street and number,
if any, where such stock ledger or duplicate stock ledger is kept.

 

ARTICLE
V

 

CORPORATE
SEAL  OR  STAMP

 

The corporate seal or stamp shall be in such form as
the Board of Directors may prescribe.

 

ARTICLE
VI

 

FISCAL  YEAR

 

The fiscal year of the corporation shall be fixed, and
shall be subject to change, by the Board of Directors.

 

ARTICLE
VII

 

CONTROL
OVER  BYLAWS

 

The power to amend, alter, and repeal these Bylaws and
to make new Bylaws shall be vested in the Board of Directors subject to the
Bylaws, if any, adopted by the stockholders.

 

 

9

 

I HEREBY CERTIFY that the foregoing is a full, true,
and correct copy of the Bylaws of INAMED JAPAN, INC., a Nevada corporation, as
in effect on the date hereof.

 

WITNESS my hand and the seal or stamp of the
corporation.

 

	
  Dated:

  	
  October 5,

  	
   1994

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Michael D.Farney

  
	
   

  	
   

  	
  MICHAEL D.FARNEY Secretary of

  
	
   

  	
   

  	
  INAMED JAPAN, INC.

  

 

(SEAL)

 

 

10

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

INAMED
JAPAN, INC.

 

BY UNANIMOUS WRITTEN CONSENT

 

The undersigned, being all of the Directors of INAMED
JAPAN, INC., a Nevada corporation (the “Company”), and acting pursuant
to Section 78.315 of the Nevada Revised Statutes, hereby consent in writing to
the adoption of the following actions in lieu of a special meeting of the Board
of Directors:

 

GUARANTEE AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED Corporation (“Inamed”) intends
to enter into that certain Credit Agreement dated as of February 1, 2000
(the “Credit Agreement”), by and among Inamed, the Lenders.  Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent’).  Bear, Stearns & Co. Inc., as sole lead
arranger and sole book manager (the “Arranger”) and the Administrative
Agent;

 

WHEREAS, pursuant to the terms of the Credit
Agreement, the Company, as a subsidiary of Inamed, is required to guaranty all
of Inamed’s obligations under the Credit Agreement (the “Obligations”,
as defined under the Credit Agreement), by entering into that certain Guarantee
and Collateral Agree­ment (the “Guarantee and Collateral Agreement”)
dated of even date with the Credit Agreement, a copy of which has been
presented to the Board;

 

WHEREAS,
pursuant to the terms and conditions of the Credit Agreement, the Company, as a
subsidiary of Inamed, is required to secure payment and performance of the
Obligations, also by entering into that same Guarantee and Collateral Agreement
(as defined above), whereby the Company would grant to Administrative Agent,
for the benefit of the Administrative Agent and the Lenders, a perfected, first
priority Lien on all of its right, title and interest in all of its personal
property, including but not limited to all capital stock of its domestic
subsidiaries, 65% of the capital stock of its foreign subsidiaries, accounts,
fixtures, contract rights, intellectual property, licences, material property,
etc.

 

 

WHEREAS, the Board of Directors of the Company has
determined that in order to give effect to the Credit Agreement, it is
advisable and in the best interests of the Company that the Company enter into
the Guarantee and Collateral Agreement and each of the transactions
contemplated thereby:

 

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors
deems it advisable and in the best interests of the Company to enter into the
Guarantee and Collateral Agreement and any other documents contemplated thereby
and such documents hereby are authorized and approved, with such changes
thereto as the Chairman, the President, any Vice President or the Secretary of
the Company (the “proper officers”) may approve, such approval to be
conclusively evidenced by such officer’s or officers’ execution and delivery
thereof;

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized, empowered and directed, in
the name and on behalf of the Company, to enter into the Guarantee and
Collateral Agreement, substantially on the terms and conditions as presented
and described to the Board, with such changes thereto as the proper officers
may approve, such approval to be conclusively evidenced by such officer’s or
officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that the proper officers of the
Company be, and each of them hereby is, authorized and directed to enter into
such other agreements, documents, promissory notes, and instruments with
respect to any of the foregoing, in such form and on such terms and conditions
as may be agreed to by the proper officers of the Company, Administrative Agent
and the Lenders, and to take such other actions with respect to the foregoing
as may be required by Administrative Agent and the Lenders; and that the proper
officers of the Company be, and each of them hereby is, authorized, directed
and empowered, in the name and on behalf of the Company, to execute and deliver
such other agreements, documents, promissory notes, deeds of trust, mortgages
and other instruments and to perform all other acts as such officers shall
approve in connection with any of the above, the execution of such agreements,
documents, promissory notes and other instruments or the taking of any such
actions to be conclusive evidence of such approval.

 

2

 

GENERAL AUTHORIZATIONS

 

RESOLVED, that the officers of the Company be, and
each of them hereby is, authorized, empowered and directed, in the name and on
behalf of the Company, to do or cause to be done all such other acts or things,
and to execute and deliver, or cause to be executed and delivered, all such
other documents, instruments, agreements, notes, undertakings, guarantees and
certificates of any kind and nature whatsoever, as such officer or officers may
deem necessary or appropriate to effectuate or carry out the purposes and
intent of the foregoing resolutions; all such other actions to be performed in
such manner, and all such other documents, instruments, agreements, notes,
undertakings, guarantees and certificates to be executed and delivered in such
form, as the officer or officers performing or executing the same shall
approve, such officer’s or officers’ approval thereof to be conclusively
evidenced by the performance of any such other action or the execution and
delivery of any such other documents, instruments, agreements, notes,
undertakings and certificates; and

 

RESOLVED FURTHER, that all acts and things previously
done by any of the officers of the Company, on or prior to the date hereof, in
the name and on behalf of the Company, in connection with the transactions
contemplated by the foregoing resolutions, are in all respects ratified,
approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company.

 

* * *

 

3

 

This Unanimous Written Consent may be executed in one
or more counterparts, each of which shall be considered as an original.  The Secretary of the Company shall file this
Unanimous Written Consent in the minute book of the Company and it shall become
part of the records of the Company.

 

	
  Dated: 
  February 1, 2000

  	
   

  
	
   

  	
  /s/ Richard G. Babbitt

  
	
   

  	
  Richard G. Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  

 

4

 

Annex 4

 

 

SECRETARY
OF STATE

 

[THE GREAT SEAL OF THE
STATE OF NEVADA]

 

CERTIFICATE
OF EXISTENCE

(including
amendments)

 

I, DEAN HELLER, the duly elected and qualified Nevada Secretary of
State, do hereby certify that I am, by the laws of said State, the custodian of
the records relating to filings by corporations, limited–liability
companies, limited partnerships, limited–liability partnerships and
business trusts pursuant to Title 7 of the Nevada Revised Statutes which are
either presently in a status of good standing or were in good standing for a
time period subsequent of 1976 and am the proper officer to execute this
certificate.

 

I further certify that the records of the Nevada Secretary of State, at
the date of this certificate, evidence, INAMED JAPAN, INC., as a corporation duly
organized under the laws of Nevada and existing under and by virtue of the laws
of the State of Nevada since September 12, 1994, and is in good standing in
this state.

 

I FURTHER CERTIFY, that the above corporation has Articles of
Incorporation and no amendments on file in this office as of the date of this
certificate.

 

IN WITNESS WHEREOF, I
have hereunto set my hand and affixed the Great Seal of State, at my office, in
Carson City, Nevada, on January 31, 2000.

 

	
   

  	
  /s/ Dean Heller

  	
   

  
	
   

  	
  Secretary of State

  
	
  [SEAL]

  
	
   

  	
  By

  	
  /s/ [ILLELIGIBLE]

  	
   

  
	
   

  	
  Certification Clerk

  
				

 

 

[ILLEGIBLE
PAGE]

 

McGHAN MEDICAL
CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made to the Credit Agreement,
dated as of February 1, 2000 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Inamed Corporation
(the “Borrower”), the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
First Union National Bank, as the Administrative Agent (in such capacity, the “Administrative
Agent”) and GMAC Commercial Credit LLC, as Documentation Agent (in such
capacity, the “Documentation Agent”), providing for $107,500,000 in
loans.  Capitalized terms used herein
and not otherwise defined shall have the meanings assigned in the Credit
Agreement.  This certificate is being
delivered pursuant to Section 5.1(g) of the Credit Agreement.

 

I, David E. Bamberger, hereby certify that I am the
Secretary of McGHAN MEDICAL CORPORATION (the “Company”), and as such
have access to the Company’s corporate records and am familiar with the matters
therein contained and herein certified, and that:

 

1.             Attached
hereto as Annex 1 are true, correct and complete copies of (i) the Articles of
Incorporation of the Company, as filed with the Secretary of State of the State
of California on June 1, 1984, (ii) the Certificate of Amendment of Articles of
Incorporation of the Company, as filed with the Secretary of State of the State
of California on June 21, 1984, (iii) the Certificate of Determination of
preferences of Preferred Stock of the Company, as filed with the Secretary of
State on June 28, 1984, (iv) the Certificate of Amendment of Articles of
Incorporation of the Company, as filed with the Secretary of State of the State
of California on November 7, 1984, (v) the Certificate of Determination of
preferences of Preferred Stock of the Company, as filed with the Secretary of
State on November 7, 1984 and (vi) the Agreement of Merger by and between FA
MERGERCO and the Company, as filed with the Secretary of State of the State of
California on October 4, 1995.

 

2.             Attached
hereto as Annex 2 is a true, correct and complete copy of the By-laws of the
Company as presently in effect on and as of the date hereof, which By-laws are
in full force and effect in said form without modification, amendment,
rescission or repeal in any respect.

 

3.             Attached
hereto as Annex 3 is a true, correct and complete copy of resolutions adopted
by unanimous written consent in lieu of a meeting in accordance with applicable
laws and the Articles of Incorporation and By-laws of the Company, and such
resolutions (i) were duly adopted by the Board of Directors of the Company and
are in full force and effect on and as of the date hereof, not having been in
any way amended, altered or repealed, and (ii) constitute the only resolutions

 

 

of the Board of Directors of the Company relating to the subject matter
of the Credit Agreement, the other Loan Documents and the transactions
contemplated thereby.

 

4.             Attached
hereto as Annex 4 is (i) a true, correct and complete copy of a certificate
from the Office of the Secretary of State of the State of California indicating
that the Company is authorized to exercise all its corporate powers, rights and
privileges and is in good legal standing and (ii) a certificate from the
Franchise Tax Board of the State of California indicating that the Company is
in good standing and has no unpaid liability.

 

5.             There
are no consents, licenses or approvals required in connection with the
execution, delivery and performance by the Company or the validity and
enforceability against the Company of the Loan Documents to which it is a
party.

 

6.             The
following persons are duly qualified and acting officers of the Company, each
of whom is authorized to sign any of the Loan Documents to which the Company is
a party, and each of whom is duly elected to the office set forth opposite his
respective name; the signature appearing opposite the name of each such officer
is his authentic signature:

 

	
  NAME

  	
  OFFICE

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  EXECUTIVE VICE PRESIDENT

  	
  /s/ Ilan K. Reich

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/ David E. Bamberger

  

 

2

 

IN WITNESS WHEREOF, the undersigned has executed this
Secretary’s Certificate as of the 1st day of February, 2000.

 

	
   

  	
  /s/ David E. Bamberger

  
	
   

  	
  David E. Bamberger

  
	
   

  	
  Secretary

  

 

3

 

I, Ilan K. Reich, Executive Vice President of the
Company, hereby certify that David E. Bamberger is the duly elected Secretary
of the Company and that the signature appearing above is his genuine signature.

 

	
   

  	
  /s/ Ilan K. Reich

  
	
   

  	
  Ilan K. Reich

  
	
   

  	
  Executive Vice President

  

 

4

 

Annex 1

 

McGhan Medical Corp.

 

 

STATE OF CALIFORNIA

 

[SEAL]

 

SECRETARY OF STATE

 

I, BILL
JONES, Secretary of State of the State of California,
hereby certify:

 

That on
the 1st  day of June,
1984, MCGHAN MEDICAL CORPORATION  became incorporated under the laws of the State of
California by filing its Articles of Incorporation in this office.

 

That
all documents amendatory and/or supplementary thereto (including Agreements of
Merger, Restated Articles of Incorporation and Certificates of Determination of
Preferences, if any), of record in this office for said corporation are as
follows:

 

page 1 of 2

	
  DOCUMENT

  	
   

  	
  FILED

  
	
  CERTIFICATE OF AMENDMENT

  	
   

  	
  June 21, 1984

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE OF DETERMINATION

  	
   

  	
  June 28, 1984

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE OF AMENDMENT

  	
   

  	
  November 7, 1984

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE OF DETERMINATION

  	
   

  	
  November 7, 1984

  
	
   

  	
   

  	
   

  
	
  AGREEMENT OF MERGER

  	
   

  	
  October 4, 1985

  
	
  Merged in:  FA MERGERCO, a California corporation

  	
   

  	
   

  

 

 

 

STATE OF CALIFORNIA

 

[SEAL]

 

SECRETARY OF STATE

 

I, BILL JONES,  Secretary of State of the State of
California, hereby certify:

 

That the attached transcript of 37 page(s) was
prepared by and in this office from the record on file, of which it purports to
be a copy, and that it is full, true and correct.

 

IN WITNESS WHEREOF,  I
execute this certificate and affix the Great Seal of the State of
California this day of

	
   

  	
   

  
	
   

  	
  JAN 24 2000

  
	
  [SEAL]

  	
   

  
	
   

  	
  /s/ Bill Jones

  
	
   

  	
  Secretary of State

  

 

 

 

ARTICLES OF INCORPORATION

 

OF

 

McGHAN MEDICAL
CORPORATION

 

I

 

The name of this corporation is McGHAN MEDICAL
CORPORATION.

 

II

 

The purpose of this corporation is to engage in any
lawful  act
or activity for which a corporation, may be organized under the General
Corporation Law of California other than the banking business, the trust
company business or the practice of a profession permitted to be incorporated
by the California Corporations Code.

 

III

 

The name and address in the State of California of
this corporation’s initial agent for service of process are:

 

Donald K. McGhan

 

1351 Plaza Pacifica

 

Santa Barbara, California
93108

 

 

IV

 

This corporation is authorized to issue only one class
of shares of stock; and the total number of shares which this corporation is
authorized to issue is 5,000,000.

 

	
  DATED:  May
  25, 1984

  	
   

  
	
   

  	
  /s/ Rebecca Foster

  
	
   

  	
  Rebecca Foster

  

 

I declare that I am the person who executed the
foregoing Articles of Incorporation, which execution is my act and deed.

 

	
   

  	
  /s/ Rebecca Foster 

  
	
   

  	
  Rebecca Foster

  

 

 

CERTIFICATE OF AMENDMENT

OF

ARTICLES OF INCORPORATION

OF

McGHAN MEDICAL
CORPORATION

 

REBECCA FOSTER certifies that:

 

1.             She
is the sole incorporator of McGHAN MEDICAL CORPORATION, a California
corporation.

 

2.             She
hereby adopts the following amendment of the articles of incorporation of this
corporation:

 

Article IV is amended to read as follows:

 

(a)           This corporation is authorized to
issue two classes of capital stock designated “Common Stock” and “Preferred
Stock”, respectively.  The number of
shares of Common Stock authorized to be issued is 4,000 000, and the number of
shares of Preferred Stock authorized to be issued is 1,000,000.

 

(b)           The Preferred Stock may be divided
into such number of series as the Board of Directors may determine.  The Board of Directors may determine and
alter the rights, preferences, privileges and restrictions granted to or
imposed upon any wholly unissued series of Preferred Stock, and may fix the
number of shares and the designation of shares of any such series.  The Board of Directors, within the limits
and restrictions stated in any resolution of the Board of Directors originally
fixing the number of shares constituting any series of Preferred Stock, any
increase or decrease (but not being the number of shares of such series than
outstanding) the number of shares of such series subsequent to the issuance of
shares of such series.

 

3.             No
directors were named in the original articles of incorporation and none have
been elected.

 

4.             No
shares have been issued.

 

 

I further declare under penalty of perjury under the
laws of the State of California that the matters set forth in this Certificate
are true and correct of my own knowlege.

 

	
  Date:  June
  19, 1984

  	
   

  
	
   

  	
  /s/ Rebecca Foster

  
	
   

  	
  REBECCA FOSTER, Incorporator

  
	
   

  	
   

  

 

2

 

CERTIFICATE OF
DETERMINATION OF

PREFERENCES OF PREFERRED
STOCK OF

McGHAN MEDICAL
CORPORATION

 

The undersigned, DONALD K. McGHAN and WILLIAM R.
PEEPLES, do hereby certify as follows:

 

One:        They
are, respectively, the duly elected and acting President and Chief Financial
Officer of McGhan Medical Corporation, a California corporation.

 

Two:       Pursuant
to authority given by said corporation’s Articles of Incorporation, the Board
of Directors of said corporation has duly adopted the following recitals and
resolutions:

 

WHEREAS, the Articles of Incorporation of this
corporation provide for a class of shares known as  Preferred Stock, issuable
from time to time in one or more series; and

 

WHEREAS, the Board of Directors of this corporation is
authorized to determine or alter the rights, preferences, privileges and
restrictions granted to or imposed upon any wholly unissued series of Preferred
Stock, to fix the number of shares constituting any such series and to
determine the designation thereof; and

 

WHEREAS, this corporation has not issued any shares of
such Preferred Stock and the Board of Directors of this corporation desires,
pursuant to its authority as aforesaid, to determine and fix the rights,
preferences, privileges, and restrictions relating to the initial series of
said Preferred Stock and the number of shares constituting and the designation
of said series;

 

NOW, THEREFORE, BE IT RESOLVED, that the Board of
Directors hereby fixes and determines the designation of, the number of shares
constituting, and the rights, preferences, privileges and restrictions relating
to, said initial series of Preferred Stock as follows:

 

1.             Designation
and Amount.

 

The initial series of Preferred Stock shall be
designated "Series A Preferred Stock.” 
The number of shares constituting the Series A Preferred Stock shall be
500,000 shares.

 

 

2.             Dividends.

 

(a)  Right
to Dividends.  The holders of the
then outstanding Series A Preferred Stock shall be entitled to receive, when
and as declared by the Board, and out of any funds legally available therefor,
cash dividends at a rate of $0.32 per share per annum, before any dividend is
paid on Common Stock.  Such dividends
may be payable quarterly or otherwise as the Board may from time to time
determine.  The right to such dividends
on Series A Preferred Stock shall not be cumulative, and no right shall accrue
to holders of Series A Preferred Stock by reason of the fact that dividends on
said shares are not declared in any prior year, nor shall any undeclared or
unpaid dividend bear or accrue interest.

 

(b)  Priority.  Unless dividends on the Series A Preferred
Stock at the foregoing annual rate for the then current fiscal quarter shall
have been paid or declared and a sum sufficient for the payment thereof set
apart, (i) no dividend whatsoever (other than a dividend payable solely in
Common Stock) shall be paid or declared, and no distribution shall be made, on
any Common Stock, and (ii) no shares of Common Stock shall be purchased,
redeemed or acquired by the Company and no money shall be paid into or set
aside or made available for a sinking fund for the purchase, redemption or
acquisition thereof; provided, however, that this restriction shall not
apply to the repurchase of shares of Common Stock from directors, officers,
employees or consultants of the Company or any Subsidiary pursuant to
agreements under which the Company has the option to repurchase such shares
upon the occurrence of certain events including the termination of their
employment or consulting arrangement.

 

3.             Liquidation
Rights.

 

(a)  Preference
on Series  A Preferred Stock.  In the event of any liquidation, dissolution
or winding up of the Company, whether voluntary or involuntary, the holders of
each share of Series A Preferred Stock
then outstanding shall be entitled to be paid out of the assets of the
Company available for distribution to its shareholders, whether such assets are
capital, surplus or earnings, before any payment or declaration and setting
apart for payment of any amount shall be made in respect of the Common Stock,
an amount equal to $4.00 per share plus an amount equal to all declared and
unpaid dividends thereon to and including the date full payment shall be  tendered to the holders of the Series A Preferred Stock with respect to such
liquidation, dissolution or winding up and no more.  If upon any liquidation, dissolution or winding up of the
Company, whether voluntary or involuntary, the assets to be distributed to the
holders of the Series A Preferred Stock shall be insufficient to permit the
payment to such shareholders of the full preferential

 

2

 

amounts as aforesaid, then all of the assets of the Company to be
distributed shall be distributed ratably to the holders of the Series A
Preferred Stock.

 

(b)  Preference
on  Common Stock.  After the payment or distribution to the
holders of the Series A Preferred Stock of the full preferential amounts as
aforesaid, the holders of the Common Stock then outstanding shall be entitled to receive, out of any remaining
assets of the Company  available for
distribution to its shareholders, an amount equal to the full preferential
amount paid to the holders of the Series A Preferred Stock as aforesaid, which
amount shall be distributed ratably to the holders of Common Stock, based on
the number of shares of Common Stock held by each holder.  If any such remaining assets shall be
insufficient to permit the payment to the holders of Common Stock of the full
preferential amounts set forth in the preceding sentence, then all of such remaining assets shall be distributed
ratably to the holders of Common Stock, based on the number of shares of Common
Stock held by each holder.

 

(c)  Remaining
Assets.  After the payment or
distribution of the full preferential amounts set forth in paragraphs (a) and (b) above, all of the remaining  assets
available for distribution to shareholders shall be distributed ratably to the
holders of both the Series A Preferred Stock and the Common Stock, based upon
the number of shares of either class held by each holder.  For the purpose of this paragraph (c), no
distinction shall be made between shares of Series A Preferred Stock and shares
of Common Stock.

 

(d)  Reorganization.  A  consolidation or merger of the Company
with or into any other corporation or corporations or sale of all or
substantially all of the assets of the Company in which the shareholders of the
Company receive solely capital stock of the acquiring corporation (or of the
direct or indirect parent corporation of the acquiring corporation), except for
cash in lieu of fractional shares, shall not be deemed a liquidation,
dissolution or winding up of the Company as those terms are used in this
Section 3.

 

4.             Restriction
on Redemption.

 

The Company shall not have the right to call or redeem
any or all of the Series A Preferred Stock; and the Company, shall not purchase
or otherwise acquire for value any outstanding shares of Series A Preferred
Stock unless the Company makes an offer to all holders of Series A Preferred
Stock to purchase such stock from them pro rata, based on the number of shares
of Series A Preferred Stock held by each such holder, at the same per share
cash purchase price.

 

3

 

5.             Voting
Rights.

 

Each holder of shares of Series A Preferred Stock
shall be entitled to vote on all matters and, except as, otherwise expressly
provided herein, shall be entitled to the number of votes equal to the largest
number of full shares of Common Stock into which such shares of Series A
Preferred Stock could be converted, pursuant to the provisions of Section 6
hereof, at the record date for the determination of the shareholders entitled
to vote on such matters or, if no such record date is established, at the date
such vote is taken.  Except as otherwise
expressly provided herein or as required by law, the holders of Series A
Preferred Stock and holders on Common Stock shall vote together and not as
separate classes.

 

6.             Conversion.

 

The holders of Series A Preferred Stock shall have the
following conversion rights:

 

(a)  Right
to Convert.  Each share of Series A
Preferred Stock shall be convertible, at the option of the holder thereof, at
any time after the date of issuance of such share, at the office of the Company
or any transfer agent for the Preferred Stock or Common Stock, into fully paid
and nonassessable shares of Common Stock, at the Conversion Price (as hereinafter defined) in effect at
the time of conversion.

 

(b)  Conversion
Price.  Each share of Series A
Preferred Stock shall be convertible
into the number of shares of Common Stock which results from dividing the
Conversion Price per share in effect at the time of conversion into $4.00.  The initial Conversion Price per share shall
be $4.00.  Such initial Conversion Price
shall be subject to adjustment from time to time as provided below.

 

(c)  Mechanics
of Conversion.  Before any holder of
Series A Preferred Stock shall be entitled to convert the same into shares of
Common Stock, he shall surrender the certificate or certificates therefor, duly
endorsed, at the office of the Company or of any transfer agent for the
Preferred Stock or Common Stock, and shall give written notice to the Company
at such office that such holder elects to convert the same and shall state
therein the number of shares of Series A Preferred Stock being converted.  Thereupon, the Company shall promptly issue
and deliver at such office to such holder a certificate or certificates for the
number of shares of Common Stock to which such holder is entitled and shall
promptly pay in cash all declared and unpaid dividends or the shares of Series
A Preferred stock being converted to and including the time of conversion.  Such conversion shall be deemed to have been
made immediately

 

4

 

prior to the close of business on the date of such surrender of the
shares of Series A Preferred Stock to be converted, and the person entitled to
receive the shares of Common Stock issuable upon such conversion shall be
treated for all purposes as the record holder of such shares of Common Stock on
such date.

 

(d)  Adjustment
for Stock Splits and Combinations. 
If the Company at any time or from time to time after the original
issuance of the Series A Preferred Stock effects a subdivision of the
outstanding Common Stock, the Conversion Price then in effect immediately
before that subdivision shall be proportionately decreased, and conversely, if
the Company at any time or from time to time after the original issuance of the
Series A Preferred Stock combines the outstanding shares of Common Stock, the
Conversion Price then in effect immediately before the combination shall be
proportionately increased.  Any
adjustment under this paragraph (d) shall become effective at the close of business
on the date the subdivision or combination becomes effective.

 

(e)  Adjustment
for Certain Dividends and Distributions. 
In the event the Company at any time, or from time to time, after the
original issuance of the Series A Preferred Stock makes, or fixes a record date
for the determination of holders of Common Stock entitled to receive, a
dividend or other distribution payable in additional shares of Common Stock,
then and in each such event the Conversion Price then in effect shall be
decreased as of the time of such issuance or, in the event such a record date
is fixed, as of the close of business on such record date, by multiplying the
Conversion Price then in effect by a fraction (i) the numerator of which is the
total number of shares of Common Stock issued and outstanding immediately prior
to the time of such issuance or the close of business on such record date, and
(ii) the denominator of which shall be the total number of shares of Common
Stock issued and outstanding immediately prior to the time of such issuance or
the close of business on such record date plus the number of shares of Common
Stock issuable in payment of such dividend or distribution; provided,
however, that if such record date is fixed and such dividend is not fully paid
or if such distribution is not fully made on the date fixed therefor, the
Conversion Price shall be recomputed accordingly as of the close of business on
such record date and thereafter the Conversion Price shall be adjusted pursuant
to this paragraph (e) as of the time of actual payment of such dividend or
distribution.

 

(f)  Adjustments
for Other Dividends and Distributions. 
In the event the Company at any time or from time to time after the
original issuance of the Series A Preferred Stock makes, or fixes a record date
for the determination of holders of Common Stock entitled to receive, a
dividend or other

 

5

 

distribution payable in securities of the Company other than shares of
Common Stock, then in each such event provision shall be made so that the
holders of Series A Preferred Stock shall receive upon conversion thereof, in addition to the number of shares of
Common Stock receivable thereupon, the amount of securities of the Company
which they would have received had their Series A Preferred Stock been
converted into Common Stock on the date of such event and had they thereafter,
during the period from the date of such event to and including the Conversion
Date, retained such securities receivable by them as aforesaid during such
period, subject to all other adjustments called for during such period under
this Section 6  with respect to the
rights of the holders of the Series A Preferred Stock.

 

(g)  Adjustment
for Reclassification, Exchange and Substitution.  If the Common Stock issuable upon the conversion of the Series A
Preferred Stock is changed into the same or a different number of shares of any
class or classes of stock, whether by recapitalization, reclassification or
otherwise (other than a subdivision or combination of shares or stock dividend,
provided for elsewhere in this Section 6, or a merger or consolidation of the
Company with or into another corporation, or the sale of all or substantially
all the Company’s assets to
another person) then, and in any such event, each holder of Series A Preferred
Stock shall have the right thereafter to convert such stock into the kind and
amount of stock and other securities and property receivable upon such
reorganization, reclassification or other
change, by holders of the number of shares of Common Stock into which
such shares of Series A Preferred Stock might have been converted immediately
prior to such reorganization, reclassification or change, all subject to
further adjustment as provided herein.

 

(h)  Notices
of Record Date.  In the event of any
taking by the Company of a record of the holders of any class of securities for
the purpose of determining the holders there of who are entitled to receive any
dividend or other distribution, or to vote on or consent to any capital
reorganization of the Company, any reclassification or recapitalization of the
capital stock of the Company, any consolidation or merger involving the
Company, or any transfer of all or substantially all of the assets of the
Company to any other person or any voluntary or involuntary dissolution,
liquidation or winding up of the Company, the Company shall mail to each holder
of Series A Preferred Stock at least 20 days prior to the record date specified
therein, a notice specifying (i) the date on which any such record is to be
taken for the purpose of such dividend or distribution and a description of
such dividend or distribution, (ii) the date on which any such reorganization,
reclassification, transfer, con­solidation, merger, dissolution, liquidation or
winding up is expected to become effective, and (iii) the time, if any, that is

 

6

 

to be fixed, as to when the holders of record of Common Stock (or other
securities) shall be entitled to exchange their shares of Common Stock (or
other securities) for securities or other property deliverable upon such
reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding up.

 

(i)  Automatic
Conversion.

 

(1)  Each share
of Series A Preferred Stock shall automatically be converted into shares of
Common Stock based on the then effective Conversion Price immediately upon (i)
the closing of an underwritten public offering pursuant to an effective
Regulation A notification or a registration statement under the Securities Act
of 1933, as amended, covering the offering and sale of Common Stock for the
account of the Company in which the aggregate gross proceeds received by the
Company at the public offering price equals or exceeds $2,000,000, the public
offering price per share of which equals or exceeds $7.00 per share of Common
Stock (appropriately adjusted for subdivisions and combinations of shares of
Common Stock and dividends payable in shares of Common Stock) and the
obligation of the underwriters is that if any of the securities being offered
are purchased, all such securities must be purchased; (ii) the effective date
of (A) a consolidation or merger of the Company with or into another
corporation or corporations; (B) a consolidation or merger in which the Company
is a constituent corporation, it survives the consolidation or merger and its
shareholders receive capital stock of another corporation; or (C) a sale of all
or substantially all of the assets of the Company, provided, however,
that one of the other constituent corporations, the acquiring corporation or
the parent of any such corporation has at that time a class of securities
publicly traded on a national
securities  exchange or quoted on a national quotation system or
otherwise has a class of securities registered under Section 12 of the
Securities Exchange Act of 1934, as amended; or (iii) the payment and
satisfaction by the Company of all indebtedness owed by it to Minnesota Mining
and Manufacturing Company representing the deferred portion of the purchase
price for the Company’s purchase of certain assets associated with Minnesota
Mining and Manufacturing Company’s plastic surgery product lines.

 

(2)  Upon the
occurrence of the events specified in paragraph (1) above, the outstanding shares
of Series A Preferred Stock shall be converted
automatically without any further action by the holders of such shares and
whether or not the certificates representing such shares are surrendered to the Company or its
transfer agent; provided, however, that the Company shall not, be
obligated to issue certificates evidencing the shares of Common Stock issuable
upon such conversion unless

 

7

 

the certificates evidencing such shares of Series A Preferred Stock are
either delivered to the Company or its transfer agent as provided below, or the
holder notifies the Company or its transfer agent that such certificates have
been lost, stolen or destroyed and executes an agreement satisfactory to the
Company to indemnify the Company from any loss incurred by it in connection
with such certificates.  Upon the
occurrence of such automatic conversion of the Series A Preferred Stock, the
holders of Series A Preferred Stock shall surrender the certificates
representing such shares at the office of the Company or any transfer agent for
the Preferred Stock or Common Stock. 
Thereupon, there shall be issued and delivered to such holder promptly
at such office and in his name as shown on such surrendered certificate or certificates,
a certificate or certificates for the number of shares of Common Stock into
which the shares of Series A Preferred Stock surrendered were convertible on
the date on which such automatic conversion occurred and the Company shall
promptly pay, or cause to be paid, in cash all declared and unpaid dividends on
the shares of Series A Preferred Stock being converted.

 

(j)  Fractional
Shares.  No fractional shares of
Common Stock shall be issued upon conversion of Series A Preferred Stock.  In lieu of any fractional shares to which
the holder would otherwise be entitled, the Company shall pay cash equal to the
product of such fraction multiplied by the fair market value of one share of
the Company’s Common Stock on the date of conversion, as determined in good
faith by the Board.

 

(k)  Reservation
of Stock Issuable Upon Conversion. 
The Company shall at all times reserve and keep available out of its
authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of
the shares of the Series A
Preferred Stock such number of its shares of Common Stock as shall from time to
time be sufficient to effect the conversion of all outstanding shares of the Series A Preferred Stock; and if at
any time the number of authorized but unissued shares of Common Stock shall not
be sufficient to effect the conversion of all then outstanding shares of the
Series A Preferred Stock, the Company will take such corporate action as may be
necessary to increase its authorized but unissued shares of Common Stock to
such number of shares as shall be sufficient for such purpose.

 

(l)  Notices.  Any notice required by the provisions of
this Section 6 to be given to the holder of shares of the Series A Preferred
Stock shall be deemed given upon the earlier of actual receipt or 72 hours
after the same has been deposited
in the United States mail, by certified or registered

 

8

 

mail, return receipt requested, postage prepaid, and addressed to each
holder of record at his address appearing on the books of the Company.

 

7.             Restrictions
and Limitations.

 

(a)           So
long as any shares of Series A Preferred Stock remain outstanding, the Company
shall not, and shall not permit any Subsidiary to, without the vote or written consent by the holders of more than
50% of the then outstanding shares of Series A Preferred Stock —

 

(1)    Redeem,
purchase or otherwise acquire for value, any share or shares of Series A
Preferred Stock, except as otherwise permitted under Section 4;

 

(2)   
Purchase, redeem or otherwise acquire (or pay into or set aside for a
sinking fund for such purpose) any of the Common Stock; provided,
however, that this restriction shall not apply to the repurchase of shares of
Common Stock from directors, officers, employees or consultants of the Company
or any Subsidiary pursuant to agreements under which the Company has the option
to repurchase such shares upon the occurrence of certain events, including the
termination of their employment or consulting arrangement.

 

(3)   
Authorize or issue, or obligate itself to issue, any other equity
security senior to the Series A Preferred Stock as to redemption rights,
liquidation preferences, conversion rights, voting rights or otherwise;

 

(4)    Declare
or pay any dividends on or declare or make any other distribution, direct or
indirect (other than a dividend payable solely in shares of Common Stock), on
account of the Common Stock or set apart any sum for any such purpose, except
as otherwise permitted under Section 2(a); or

 

(5)    Increase
or decrease (other than by redemption or conversion) the total number of
authorized shares of Series A Preferred Stock.

 

(b)           The
Company shall not amend its Articles of Incorporation without the approval, by
vote or written consent, of the holders of more than 50% of the Series A
Preferred Stock if such amendment would change any of the rights, preferences,
privileges of or limitations provided for herein for the benefit of any shares
of the Series A Preferred Stock. 
Without limiting the generality of the next preceding sentence, the
Company will  not amend its Articles of
Incorporation without the approval by the holders of more than 50% of the
Series A Preferred Stock if such amendment would —

 

9

 

(1)    Reduce
the dividend rate on Series A Preferred Stock provided for herein, or cancel
declared and unpaid dividends, or change the relative seniority rights of the
holders of Series A Preferred Stock as to the payment of dividends in relation
to the holders of Common Stock of the Company;

 

(2)    Reduce
the amount payable to the holders of Series A Preferred Stock upon the
voluntary or involuntary liquidation, dissolution or winding up of the Company, or change the relative seniority of
the liquidation preferences of the holders of Series A Preferred Stock to the
rights upon liquidation of the holders of Common Stock of the Company;

 

(3)    Cancel
or modify the conversion rights provided for in Section 6 hereof; or

 

(4)   
Authorize any other equity security senior to the Series A Preferred
Stock.

 

8.             No
Reissuance of Series A Preferred Stock.

 

No share or shares of Series A Preferred Stock
acquired by the Company by reason of redemption, purchase, conversion or  otherwise shall be reissued,
and all such shares shall be cancelled, retired and eliminated from the shares
which the Company shall be authorized to issue.

 

9.             Definitions.

 

As used herein, the following words are defined as
follows:

 

(a)    “Board”
shall mean the Board of Directors of McGhan Medical Corporation.

 

(b)   
“Company” shall mean McGhan Medical Corporation.

 

(c)    “Common
Stock” shall mean the Common Stock of the Company.

 

(d)   
“Preferred Stock” shall mean the Preferred Stock of the Company.

 

(e)    “Series
A Preferred Stock” shall mean the Series A Preferred Stock designated herein.

 

10

 

(f)   
“Subsidiary” shall mean any corporation at least 50% of whose
outstanding voting stock is at the time owned directly or indirectly by the
Company or by one or more of its subsidiary corporations.

 

Three:  That the authorized number of shares of
Preferred Stock of this corporation is 1,000,000, and the number of shares
constituting Series A, none of which has been issued, is 500,000.

 

IN WITNESS WHEREOF, the undersigned have executed this
Certificate as of the 27th day of June, 1984.

 

	
   

  	
  /s/ Donald K. McGhan

  
	
   

  	
  DONALD K. McGHAN, President

  
	
   

  	
   

  
	
   

  	
  /s/ William R. Peeples

  
	
   

  	
  WILLIAM R. PEEPLES,

  
	
   

  	
  Chief Financial
  Officer

  

 

The undersigned, DONALD K. McGHAN and WILLIAM R.
PEEPLES, the President and Chief Financial Officer, respectively, of McGhan
Medical Corporation, each certifies under penalty of perjury that the matters
set out in the foregoing Certificate are true and correct.

 

Executed at Los Angeles, California as of June 27,
1984.

 

	
   

  	
   

  
	
   

  	
  /s/ Donald K. McGhan

  
	
   

  	
  DONALD K. McGHAN

  
	
   

  	
   

  
	
   

  	
  /s/ William R. Peeples

  
	
   

  	
  WILLIAM R. PEEPLES

  

 

11

 

CERTIFICATE OF AMENDMENT

 

OF

 

ARTICLES OF INCORPORATION

 

OF

 

McGHAN MEDICAL
CORPORATION

 

RICHARD A. COMPTON and WILLIAM R. PEEPLES certify that:

 

1.  They are
the Vice President and the Chief Financial Officer, respectively, of McGHAN
MEDICAL CORPORATION, a California corporation.

 

2.  Article IV
of the Articles of Incorporation of this corporation is amended to read as
follows:

 

IV

 

(a)  This corporation is authorized to issue two
classes of capital stock designated “Common Stock” and “Preferred Stock”,
respectively.  The number of shares of
Common Stock authorized to be issued is 5,000,000 and the number of shares of
Preferred Stock authorized to be issued is 1,500,000.

 

(b)  The Preferred Stock may be divided into such
number of series as the Board of Directors may determine.  The Board of Directors may determine and
alter the rights, preferences, privileges and restrictions granted to or
imposed upon any wholly unissued series of Preferred Stock, and may fix the
number of shares and the designation of shares of any such series.  The Board of Directors, within the limits
and restrictions stated in any resolution of the Board of Directors originally
fixing the number of shares constituting any series of Preferred Stock, may
increase or decrease (but not below the number of shares of such series then
outstanding) the number of shares of such series subsequent to the issuance of
shares of such series.

 

3.  The
foregoing amendment of Articles of Incorporation has been duly approved by the
Board of Directors.

 

4.  The
foregoing Amendment of Articles of Incorporation has been duly approved by the
required vote of shareholders in accordance with Section 902 of the
Corporations Code.  The total number of
outstanding shares of the corporation is 2,246,875 consisting of 1,777,000
shares of Common Stock and [ILLEGIBLE] shares of Series A Preferred Stock.  The number of shares voting in favor of the
amendment equaled or exceeded the vote required.  The percentage vote required was more than 50% of the

 

 

outstanding Common Stock and more than 50% of the outstanding  Series A Preferred Stock.

 

We further declare under penalty of perjury under the laws of the State
of California that the matters set forth in this Certificate are true and
correct of our own knowledge.

 

	
  DATE:  

  	
  November  6, 1984

  	
   

  
	
   

  	
  /s/ Richard A. Compton

  
	
   

  	
  Richard A. Compton

  
	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  /s/ William R. Peeples

  
	
   

  	
  William R. Peeples

  
	
   

  	
  Chief Financial Officer

  

 

2

 

CERTIFICATE OF
DETERMINATION OF

PREFERENCES OF PREFERRED
STOCK OF

McGHAN MEDICAL
CORPORATION

 

The undersigned, RICHARD A. COMPTON and WILLIAM R.
PEEPLES, do hereby certify as follows:

 

One:  They are, respectively, the duly elected and
acting Vice President and Chief Financial
Officer of McGhan Medical Corporation, a California corporation.

 

Two:  Pursuant to authority given by said
corporation’s Articles of Incorporation,
the Board of Directors of said corporation has duly adopted the
following recitals and resolutions:

 

WHEREAS, the Articles of Incorporation of this
corporation provide for a class of shares known as Preferred Stock, issuable
from time to time in one or more series; and

 

WHEREAS, the Board of Directors of this corporation is
authorized to determine or alter the rights, preferences, privileges and
restrictions granted to or imposed upon any wholly unissued series of Preferred
Stock, to fix the number of shares constituting any such series and to
determine the designation thereof;

 

WHEREAS, pursuant to a Certificate of Determination of
Preferences of Preferred Stock filed with the Secretary of State of the State
of California on June 28, 1984, this corporation designated an initial series
of Preferred Stock as “Series A Preferred Stock” and fixed the number of shares
at 500,000; and

 

WHEREAS, the Board of Directors of this corporation
desires, pursuant to its authority as aforesaid, to determine and fix the
rights, preferences, privileges, and restrictions relating to the second series
of said Preferred Stock and the number of shares constituting and the
designation of said series;

 

NOW, THEREFORE, BE IT RESOLVED, that the Board of
Directors hereby fixes and determines the designation of, the number of shares
constituting, and the rights, preferences, privileges and restrictions relating
to, said second series of Preferred Stock as follows:

 

1.             Designation
and Amount.

 

The second series of Preferred Stock shall be
designated “Series B Preferred Stock.” The number of shares constituting the
Series B Preferred Stock shall be 1,000,000 shares.

 

 

2.             Dividends.

 

(a)           Right
to Dividends.  The holders of the
then outstanding Series B Preferred Stock, in pari  passu with the
holders of the then outstanding Series A Preferred Stock, shall be entitled to
receive, when and as declared by the Board, and out of any funds legally
available therefor, cash dividends at a rate of $0.40 per share per annum,
before any dividend is paid on Common Stock. 
Such dividends may be payable quarterly or otherwise as the Board may
from time to time determine.  The right
to such dividends on Series B Preferred Stock shall not be cumulative, and no
right shall accrue to holders of Series B Preferred Stock by reason of the fact
that dividends on said shares are not declared in any prior year, nor shall any
undeclared or unpaid dividend bear or accrue interest.

 

(b)           Priority.  Unless dividends on the Series B Preferred
Stock at the foregoing annual rate for the then current fiscal quarter shall
have been paid or declared and a sum sufficient for the payment thereof set
apart, (i) no dividend whatsoever (other than a dividend payable solely in
Common Stock) shall be paid or declared, and no distribution shall be made, on
any Common Stock, and (ii) no shares of Common Stock shall be purchased,
redeemed or acquired by the Company and no money shall be paid into or set
aside or made available for a sinking fund for the purchase, redemption or
acquisition thereof; provided, however, that this restriction shall not
apply to the repurchase of shares of Common Stock from directors, officers,
employees or consultants of the Company or any Subsidiary pursuant to
agreements under which the Company has the option to repurchase such shares
upon the occurrence of certain events including the termination of their
employment or consulting arrangements.

 

3.             Liquidation
Rights.

 

(a)           Preference
on Series B Preferred Stock.  In the
event of any liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary, the holders of each share of Series B Preferred Stock
then outstanding shall be entitled to be paid out of the assets of the Company
available for distribution to its shareholders, whether such assets are
capital, surplus or earnings, before any payment or declaration and setting
apart for payment of any amount shall be made in respect of the Common Stock,
and in pari  passu with the holders of the then outstanding Series
A Preferred Stock, an amount equal to $5.00 per share plus an amount equal to
all declared and unpaid dividends thereon to and including the date full
payment shall be tendered to the holders of the Series B Preferred Stock with
respect to such liquidation, dissolution or winding up and no more.  If upon any liquidation, dissolution or
winding up of the company whether voluntary or involuntary, the assets to be

 

2

 

distributed to the holders of the Series B Preferred Stock shall be
insufficient to permit the payment to such shareholders of the full
preferential amounts as aforesaid, then all of the assets of the Company to be
distributed shall be distributed ratably to the holders of the Series A
Preferred Stock and Series B Preferred Stock.

 

(b)           Preference
on Common Stock.  After the payment
or distribution to the holders of the Preferred Stock of the full preferential
amounts to which they are entitled, the holders of the Common Stock then
outstanding shall be entitled to receive, out of any remaining assets  of the Company available for distribution
to its shareholders, an amount equal to the full preferential amount paid to
the holders of the Preferred Stock as aforesaid, which amount shall be
distributed ratably to the holders of Common Stock, based on the number of
shares of Common Stock held by each holder. 
If any such remaining assets shall
be insufficient to permit the payment to the holders of the Common Stock of the
full preferential amounts set forth in the preceding sentence, then all of such
remaining assets shall be distributed ratably to the holders of Common Stock,
based on the number of shares of Common Stock held by each holder.

 

(c)           Remaining
Assets.  After the payment or
distribution of the full preferential amounts set forth in paragraphs (a) and
(b) above, all of the remaining assets available for distribution to
shareholder shall be distributed ratably to the holders of the Preferred Stock
and the Common Stock, based upon the number of shares of each class held by
each holder.  For the purpose of this
paragraph (c), no distinction shall be made between shares of Preferred Stock
and shares of Common Stock.

 

(d)           Reorganization.  A consolidation or merger of the Company
with or into any other corporation or corporations or sale of all or
substantially all of the assets of the Company in which the shareholders of the
Company receive solely capital stock of the acquiring corporation (or of the
direct or indirect parent corporation of the acquiring corporation), except for
cash in lieu of fractional shares, shall not be deemed a liquidation,
dissolution or winding up of the Company as those terms are used in this
Section 3.

 

4.             Restriction
on Redemption.

 

The Company shall not have the right to call or redeem
any or all of the Series E Preferred Stock; and the Company shall not purchase
or otherwise acquire for value any outstanding shares of Series B Preferred
Stock unless the Company makes an offer to all holders of Preferred Stock to
purchase such stock from them pro rata, based on the number of shares held by
each

 

3

 

such holder, at the same per share cash purchase price; provided,
however, that the price per share of Class B Preferred Stock must be 125% of
the price per share of the Series A Preferred Stock.

 

5.             Voting
Rights.

 

Each holder of shares, of Series B Preferred Stock
shall be entitled to vote on all matters and, except as otherwise expressly
provided herein, shall be entitled to the number of votes equal to the largest
number of full shares of Common Stock into which such shares of Series B
Preferred Stock could be converted, pursuant to the provisions of Section 6
hereof, at the record date for the determination of the shareholders entitled
to vote on such matters or, if no such record date is established, at the date
such vote is taken.  Except as otherwise
expressly provided herein or as required by law, the holders of Preferred Stock
and the holders of Common Stock shall vote together and not as separate
classes.

 

6.             Conversion.

 

The holders of Series B Preferred Stock shall have the
following conversion rights:

 

(a)           Right
to Convert.  Each share of Series B
Preferred Stock shall be convertible, at the option of the holder thereof, at
any time after the date of issuance of such share, at the office of the Company
or any transfer agent for the Preferred Stock or Common Stock, into fully paid
and nonassessable shares of Common Stock, at the Conversion Price (as
hereinafter defined) in effect at the time of conversion.

 

(b)           Conversion
Price.  Each share of Series B
Preferred Stock shall be convertible into the number of shares of Common Stock
which results from dividing the Conversion Price per share in effect at the
time of conversion into $5.00.  The
initial Conversion Price per share shall be $5.00.  Such initial Conversion Price shall be subject to adjustment from
time to time as provided below.

 

(c)           Mechanics
of Conversion.  Before any holder of
Series B Preferred Stock shall be entitled to convert the same into shares of
Common Stock, he shall surrender the certificate or certificates therefor, duly
endorsed, at the office of the Company or of any transfer agent for the
Preferred Stock or Common Stock, and shall give written notice to the Company
at such office that such holder elects to convert the same and shall state
therein the number of shares of Series B Preferred Stock being converted.  Thereupon, the Company shall promptly issue
and deliver at such office to such holder a certificate or certificates for the
number of shares of Common Stock to which

 

4

 

such holder is entitled and shall promptly pay in cash all declared and
unpaid dividends on the shares of Series B Preferred Stock being converted to
and including the time of conversion. 
Such conversion shall be deemed to have been made immediately prior to
the close of business on the date of such surrender of the shares of Series B
Preferred Stock to be converted, and the person entitled to receive the shares
of Common Stock issuable upon such conversion shall be treated for all purposes
as the record holder of such shares of Common Stock on such date.

 

(d)             Adjustment for Stock Splits and
Combinations.  If the Company at any
time or from time to time after the original issuance of the Series B Preferred
Stock effects a subdivision of the outstanding Common Stock, the Conversion
Price then in effect immediately before that subdivision shall be
proportionately decreased, and conversely, if the Company at any time or from
time to time after the original issuance of the Series B Preferred Stock
combines the outstanding shares of Common Stock, the Conversion Price then in
effect immediately before the combination shall be proportionately
increased.  Any adjustment under this
paragraph (d) shall become effective at the close of business on the date the
subdivision or combination  becomes
effective.

 

(e)             Adjustment for Certain Dividends
and Distributions.  In the event the
Company at any time, or from time to time, after the original issuance of the
Series B Preferred Stock makes, or fixes a record date for the determination of
holders of Common Stock entitled to receive, a dividend or other distribution
payable in additional shares of Common Stock, then and in each such event the
Conversion Price then in effect shall be decreased as of the time of such
issuance or, in the event such a record date is fixed, as of the close of
business on such record date, by multiplying the Conversion Price then in
effect by a fraction (i) the numerator of which is the total number of shares
of Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date, and (ii) the denominator
of which shall be the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution; provided, however, that if
such record date is fixed and such dividend is not fully paid or if such
distribution is not fully made on the date fixed therefor, the Conversion Price
shall be recomputed accordingly as of the close of business on such record date
and thereafter the Conversion Price shall be adjusted pursuant to this
paragraph (e) as of the time of actual payment of such dividend or
distribution.

 

5

 

(f)             Adjustments for Other Dividends
and Distributions.  In the event the
Company at any time or from time to time after the original issuance of the
Series B Preferred Stock makes, or fixes a record date for the determination of
holders of Common Stock entitled to receive, a dividend or other distribution
payable in securities of the Company other than shares of Common Stock, then in
each such event provision shall be made so that the holders of Series B
Preferred Stock shall receive upon conversion thereof, in addition  to  the number of shares of Common Stock receivable thereupon,
the amount of securities of the Company which they would have received had
their Series B Preferred Stock been converted into Common Stock on  the date of such event and had they
thereafter, during the period from the date of such event to and including the
Conversion Date, retained such securities receivable by them as aforesaid
during such period, subject to all other adjustments called for during such
period under this Section 6 with respect to the rights of the holders of the
Series B Preferred Stock.

 

(g)            Adjustment for Reclassification,
Exchange an Substitution.  If the
Common Stock issuable upon  the
conversion of the Series B Preferred Stock is changed into the same or a different
number of shares of any class or classes of stock, whether by recapitalization,
reclassification or otherwise (other than a subdivision or combination of
shares or stock dividend, provided for elsewhere in this Section 6, or a merger
or consolidation of the Company with or into another corporation, or the sale
of all or substantially all the Company’s assets to another person) then, and
in any such event, each holder of Series B Preferred Stock shall have the right
thereafter to convert such stock into the kind and amount of stock and other
securities and property receivable upon such reorganization, reclassification
or other change, by holders of the number of shares of Common Stock into which
such shares of Series B Preferred Stock might have been converted immediately
prior to such reorganization, reclassification or change, all subject to
further adjustment as provided herein.

 

(h)             Notices of Record Date.  In the event of any taking by the Company of
a record of the holders of any  class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend or other distribution, or to vote on or consent to any
capital reorganization of the Company, any reclassification or recapitalization
of the capital stock of the Company, any consolidation or merger involving the
Company, or any transfer of all or substantially all of the assets of the
Company to any other person or any voluntary or involuntary dissolution,
liquidation or winding up of the Company, the Company shall mail to each holder
of Series B Preferred Stock at least 20 days prior to the record date specified
therein, a notice specifying (i) the date on which any such record is to be

 

6

 

taken for the purpose of such dividend or distribution and a
description of such dividend or distribution, (ii) the date on which any such
reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding up is expected to become effective, and (iii ) the time,
if any, that is to be fixed, as to when the holders of record of Common Stock
(or other securities) shall be entitled to exchange their shares of Common
Stock (or other securities) for securities or other property deliverable upon
such reorganization, reclassification, transfer, consolidation, merger,
dissolution, liquidation or winding up.

 

(i)              Automatic Conversion.

 

(1)         Each share of Series B Preferred Stock
shall automatically be converted into shares of Common Stock based on the then
effective Conversion Price immediately upon (i) the closing of an underwritten
public offering pursuant to an effective Regulation A notification or a
registration statement under the Securities Act of 1933, as amended, covering
the offering and sale of Common Stock for the account of the Company in which
the aggregate gross proceeds received by the Company at the public offering
price equals or exceeds $2,000,000, the public offering price per share of
which equals or exceeds $7.00 per share of Common Stock (appropriately adjusted
for sub-divisions and combinations of shares of Common Stock and dividends
payable in shares of Common Stock) and the obligation of the underwriters is
that if any of the securities being offered are purchased, all such securities
must be purchased; (ii) the effective date of (A) a consolidation or merger of
the Company with or into another corporation or corporations; (B) a
consolidation or merger in which the Company is a constituent corporation, it
survives the consolidation or merger and its shareholders receive capital stock
of another corporation; or (C) a sale of all or substantially all of the assets
of the Company, provided, however, that one of the other constituent
corporations, the acquiring corporation or the parent of any such corporation
has at that time a class of securities publicly traded on a national securities
exchange or quoted on a national quotation system or otherwise has a class of
securities registered under Section 12 of the Securities Exchange Act of 1934,
as amended; or (iii) the payment and satisfaction by the Company of all
indebtedness owed by it to Minnesota Mining and Manufacturing Company
representing the deferred portion of the purchase price for the Company’s
purchase of certain assets associated with Minnesota Mining and Manufacturing
Company’s plastic surgery product lines.

 

(2)         Upon the occurrence of the events
specified in paragraph (1) above, the outstanding shares of Series B Preferred
Stock shall be converted automatically without any

 

7

 

further action by the holders of such shares and whether or not the
certificates representing such shares are surrendered to the Company or its
transfer agent; provided, however, that the Company shall not be
obligated to issue certificates evidencing the shares of Common Stock issuable
upon such conversion unless the certificates evidencing such shares of Series B
Preferred Stock are either delivered to the Company or its transfer agent as
provided below, or the holder notifies the Company or its transfer agent that
such certificates have been lost, stolen or destroyed and executes an agreement
satisfactory to the Company to indemnify the Company from any loss incurred by
it in connection with such certificates. 
Upon the occurrence of such automatic conversion of the Series B
Preferred Stock, the holders of Series B Preferred Stock shall surrender the
certificates representing such shares at the office of the Company or any
transfer agent for the Preferred Stock or Common Stock.  Thereupon, there shall be issued and
delivered to such holder promptly at such office and in his name as shown on
such surrendered certificate or certificates, a certificate or certificates for
the number of shares of Common Stock into which the shares of Series B
Preferred Stock surrendered were convertible on the date on which such
automatic conversion occurred and the Company shall promptly pay, or cause to
be paid, in cash all declared and unpaid dividends on the shares of Series B
Preferred Stock being converted.

 

(j)              Fractional Shares.  No fractional shares of Common Stock shall
be issued upon conversion of Series B Preferred Stock.  In 1ieu of any fractional shares to which
the holder would otherwise be entitled, the Company shall pay cash equal to the
product of such fraction multiplied by the fair market value of one share of
the Company’s Common Stock on the date of conversion, as determined in good
faith by the Board.

 

(k)             Reservation of Stock Issuable
Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but
unissued shares of Common Stock, solely for the purpose of effecting the
conversion of the shares of the Series B Preferred Stock such number of its
shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the Series B Preferred Stock; and if at
any time the number of authorized but unissued shares of Common Stock shall not
be sufficient to effect the conversion of all then outstanding shares of the
Series B Preferred Stock, the Company will take such corporate action as may be
necessary to increase its authorized but unissued shares of Common Stock to
such number of shares as shall be sufficient for such purpose.

 

8

 

(1)         Notices.  Any notice required by the provisions of
this Section 6 to be given to the holder of shares of the Series B Preferred
Stock shall be deemed given upon the earlier of actual receipt or 72 hours after
the same has been deposited in the United States mail, by certified or
registered mail, return receipt requested, postage prepaid, and addressed to
each holder of record at his address appearing on the books of the Company.

 

7.             Restrictions
and Limitations.

 

(a)     So long as any shares of Series B Preferred
Stock remain outstanding, the Company shall not, and shall not permit any
Subsidiary to, without the vote or written consent by the holders of more than
50% of the then outstanding shares of Series B Preferred Stock —

 

(1)         Redeem, purchase or otherwise acquire
for value, any share or shares of Preferred Stock, except as otherwise
permitted under Section 4;

 

(2)         Purchase, redeem or otherwise acquire
(or pay into or set aside for a sinking fund for such purpose) any of the
Common Stock; provided, however, that this restriction shall not apply
to the repurchase of shares of Common Stock from directors, officers, employees
or consultants of the Company or any Subsidiary pursuant to agreements under
which the Company has the option to repurchase such shares upon the occurrence
or certain events, including the termination of their employment or consulting
arrangement.

 

(3)         Authorize or issue, or obligate itself
to issue, any other equity security senior to the Series B Preferred Stock as
to redemption rights, liquidation preferences, conversion rights, voting rights
or otherwise;

 

(4)         Declare or pay any dividends on or
declare or make any other distribution, direct or indirect (other than a
dividend payable solely in shares of Common Stock), on account of the Common
Stock or set apart any sum for any such purpose, except as otherwise permitted
under Section 2(a); or

 

(5)         Increase or decrease (other than by  redemption or conversion)
the total number of authorized shares of Series B Preferred Stock.

 

(b)    The Company shall not amend its Articles of Incorporation without  the
approval, by vote or written consent, of the holders of more than 50% of the
Series B Preferred Stock if such amendment would change any of the rights,
preferences, privileges of or limitations provided for herein for the benefit

 

9

 

of any shares of the Series B Preferred Stock.  Without limiting the generality of the next
preceding sentence, the Company will not amend its Articles of Incorporation
without the approval by the holders of more than 50% of the Series B Preferred
Stock if such amendment would —

 

(1)         Reduce the dividend rate on Series B
Preferred Stock provided for herein, or cancel declared and unpaid dividends,
or change the relative seniority rights of the holders of Series B Preferred
Stock as to the payment of dividends in relation to the holders of Common Stock
of the Company;

 

(2)         Reduce the amount payable to the
holders of Series B Preferred Stock upon the voluntary or involuntary
liquidation, dissolution or winding up of the Company, or change the relative
seniority of the liquidation preferences of the holders of Series B Preferred
Stock to the rights upon liquidation of the holders of Common Stock of the
Company;

 

(3)         Cancel or modify the conversion rights
provided for in Section 6 hereof; or

 

(4)         Authorize any other equity security
senior to the Series B Preferred Stock.

 

8.             No
Reissuance of Series B Preferred Stock.

 

No share or shares of Series B Preferred Stock
acquired by the Company by reason of redemption, purchase, conversion or
otherwise shall be reissued, and all such shares shall be cancelled, retired
and eliminated from the shares which the Company shall be authorized to issue.

 

9.             Definitions.

 

As used herein, the following words are defined as
follows:

 

(a)           “Board”
shall mean the Board of Directors of McGhan Medical Corporation.

 

(b)           “Company’
shall mean McGhan Medical Corporation.

 

(c)           “Common
Stock” shall mean the Common Stock of the Company.

 

(d)           “Preferred
Stock” shall mean the Preferred Stock of the Company.

 

10

 

(e)             “Series A Preferred Stock” shall
mean the Series A Preferred Stock designated in that certain Certificate of
Determination of Preferences of Preferred Stock filed by the Company with the
Secretary of State of the State of California on June 28, 1984.

 

(f)             “Series B Preferred Stock” shall
mean the Series B Preferred Stock designated herein.

 

(g)            “Subsidiary” shall mean any
corporation at least 50% of whose outstanding voting stock is at the time owned
directly or indirectly by the Company or by one or more of its subsidiary
corporations.

 

Three:              That the authorized number of
shares of Preferred Stock of this corporation is 1,500,000, the number of
shares constituting the Series A Preferred Stock is 500,000, of which 471,875
have been issued and are currently outstanding, and the number of shares
constituting the Series B Preferred Stock is 1,000,000, none of which has been
issued.

 

IN WITNESS WHEREOF, the
undersigned have executed this Certificate the 6th day of November, 1984.

 

	
   

  	
  /s/ Richard A. Compton

  	
   

  
	
   

  	
  RICHARD A. COMPTON,

  	
   

  
	
   

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  /s/ William R. Peeples

  	
   

  
	
   

  	
  WILLIAM R. PEEPLES,

  	
   

  
	
   

  	
  Chief Financial Officer

  
				

 

11

 

The undersigned, RICHARD
A. COMPTON and WILLIAM R. PEEPLES, the
Vice President and Chief Financial Officer, respectively, of McGhan Medical
Corporation, each certifies under penalty of perjury that the matters set out
in the foregoing Certificate are true and correct.

 

Executed at Carpinteria,
California as of November 6, 1984.

 

	
   

  	
  /s/ Richard A. Compton

  	
   

  
	
   

  	
  RICHARD A. COMPTON

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ William R. Peeples

  	
   

  
	
   

  	
  WILLIAM R. PEEPLES.

  	
   

  

 

12

 

 

AGREEMENT OF MERGER

 

 

 

PRELIMINARY STATEMENT

 

A.            Mergerco
was duly incorporated as a California corporation on August 9, 1985.  The authorized capital stock of Mergerco
consists of 1,000 shares of capital stock, of which 1,000 shares are issued and
outstanding and are owned by FIRST AMERICAN CORPORATION, a Florida corporation
(“FAC”).

 

B.            MMC
was duly incorporated as a California corporation on June 1, 1984.  MMC is authorized to issue 5,000,000 shares
of Common Stock, of which 1,823,165 shares are issued and outstanding, and
1,500,000 shares of Preferred Stock, of which 469,375 shares of Series A
Convertible Preferred Stock and 448,340 shares of Series B Convertible
Preferred Stock are issued and outstanding (Common Stock, Series A Convertible
Preferred Stock and Series B Convertible Preferred Stock being hereinafter
collectively referred to as the “MMC Shares”). 
Each outstanding MMC Share is entitled to one vote with respect to the
Merger (as hereinafter defined).  The
approval of the Merger requires the affirmative vote of the holders of a
majority of each class of the issued and outstanding MMC Shares, and of FAC as
the sole shareholder of Mergerco.

 

C.            FAC,
Mergerco and MMC have entered into an Agreement and Plan of Reorganization
dated as of August 1, 1985, setting forth certain representations, warranties
and agreements relating to the Merger.

 

D.            The
Boards of Directors of MMC, Mergerco and FAC deem the Merger desirable and in
the best interests of their respective shareholders and have approved the
Merger.  The Boards of Directors of MMC
and Mergerco have submitted the principal terms of the Merger to their
respective shareholders and received the requisite shareholder approval.

 

In consideration of the promises and of the mutual
covenants and agreements herein contained, the parties hereby agree that the
terms and conditions of the Merger [ILLEGIBLE]

 

 

but unpaid dividends thereon, into shares of FAC Common Stock and for
converting the outstanding shares of the capital stock of Mergerco into MMC
Shares are as follows:

 

1.        Merger of MMC and Mergerco.

 

(a)          At the Effective Time (as hereinafter
defined) Mergerco will be merged with and into MMC (the “Merger”).

 

(b)         The Merger shall not become effective
until, and shall become effective when this Agreement, together with
certificates of approval of  MMC and
Mergerco, shall have been duly executed and filed in accordance with the
California Corporations Code.  The time
and date when the Merger shall become effective as aforesaid is herein called
the “Effective Time” and such date is also referred to below as the “Closing
Date.”

 

2.        Effect of the Merger on Existence, Etc.  At the Effective Time, the separate
existence of Mergerco shall cease; MMC shall continue its separate existence
under the laws of the State of California and shall possess all of the rights,
powers and privileges and be subject to all of the restrictions, liabi­lities
and duties of Mergerco; the Articles of Incorporation and Bylaws of MMC as in
effect immediately prior to the Effective Time shall continue in  full force and effect until amended or
repealed; and the directors and officers of MMC immediately prior to the
Effective Time shall continue to  hold
their respective offices until their successors have been elected.

 

3.        Effect of the Merger on Capital Stock.

 

(a)          At the Effective Time, the 1,000
outstanding shares of capital stock of Mergerco, by virtue of the Merger and
without any action on the part of the holder of such stock, shall be cancelled and
shall cease to exist and shall be converted into the right to receive from MMC,
upon the surrender of the certificate representing
such share, a certificate representing 1,823,165 fully paid and
nonassessable shares of Common Stock of MMC.

 

(b)         At the Effective Time, each outstanding share of the Common Stock
of MMC, by virtue of the Merger and without any action on the part of the
holder of such share, shall be cancelled and shall cease to exist and shall be
converted into the right to receive, upon the surrender of the certificate
representing such share, a certificate representing two fully paid and
nonassessable shares of the $.01 par value Common Stock of FAC (“FAC Common
Stock”).

 

2

 

(c)          At the Effective Time, each
outstanding share of the Series A Convertible Preferred Stock of   MMC, together with all accrued but unpaid
dividends thereon, by virtue of the Merge­r and without any action on the part
of the holder of, such share, shall be cancelled and shall cease to exist and
shall be converted into the right to receive, upon the surrender of the  certificates representing such share, a
certificate representing two fully paid and nonassessable shares  of FAC Common Stock.

 

(d)          At the Effective Time, each
outstanding share of the Series B Convertible Preferred Stock of MMC together
with all accrued but unpaid dividends thereon, by virtue of the Merger and
without any action on the part of the holder of such share, shall be cancelled
and shall cease to exist and shall be converted into the right to receive, upon
the surrender of the certificate representing such share, a certificate
representing two fully paid and nonassessable shares of FAC Common Stock.

 

(e)          At the Effective Time, each holder of
a certificate representing MMC Shares shal1 cease to have any rights as a
shareholder of MMC and his or her sole 
right with respect to such corporation shall be to convert such shares
into FAC Common Stock, pursuant to paragraphs (b), (c), and (d) of this Section
3 or the right to exercise and receive payment in respect of such dissenters’
rights as may be provided under applicable law.  (The conversion of MMC Shares into FAC Common Stock, provided for
by this Section 3, shall be in full satisfaction of all rights pertaining to
such MMC Shares, except for any rights which the holders of such stock may have
as dissenting shareholders under the California Corporations Code.)

 

(f)           On the Closing Date, each holder of a
certi­ficate which before the Effective Time represented MMC Shares, other than
shares as to which a demand in respect of dissenters’ rights has been furnished
pursuant to applicable law, shall surrender such certificate, duly endorsed  or accompanied by a stock
power, and in proper form and order for transfer, to FAC or its agent and upon
such surrender shall be entitled to receive the certificates described in
paragraphs (b), (c), and (d) of this Section 3.  Until so surrendered, each such outstanding certificate which,
prior to the Effective Time of the Merger, represented validly issued and
outstanding MMC Shares shall, subject to the further provisions of this Section
3, be deemed for all corporate purposes to evidence the ownership of the number
of shares of FAC Common Stock into which such shares have been so converted
pursuant to paragraphs (b), (c), and (d) above.  Until any outstanding certificate representing MMC Shares shall
be surrendered, no dividend or distribution, if any, payable to the holder of
record of FAC Common Stock shall be paid to the holders of such outstanding
certificate but, upon surrender of such certificate, there shall be paid to the
holder of record of the shares of FAC Common Stock issued in exchange therefor
the

 

3

 

amount (without interest)
of any dividend or other distribution which has been declared and become
payable at any time at or after the Effective Time with respect to the shares
of FAC Common Stock.

 

(g)         If any certificate for shares of FAC
Common Stock is to be issued in a name other than that in which the MMC stock
certificate surrendered in exchange therefor is registered, it shall be a
condition of the issuance thereof that the certificate so surrendered shall be
properly endorsed and otherwise in proper form for transfer, and that the
person requesting such exchange shall pay any transfer or other taxes required
by reason of the issuance of a certificate for shares of FAC Common Stock in
any name other than that of the registered holder of the certificate surrendererd
or establish to the satisfaction of FAC that such tax has been paid or is not
payable.

 

(h)         Within ten (10) days after the approval
of the Merger by the shareholders of MMC, MMC shall have caused a notice to be
mailed to its shareholders entitled thereto, pursuant to the provisions of the
California Corporations Code, and such notice
shallcontain such information as is required by the California
Corporations Code.

 

(i)          After the Effective Time, there shall
be no transfers on the stock transfer records of MMC of the MMC Shares which
were outstanding immediately
prior to the Effective Time, except transfers in connection with the purchase
by MMC of shares held by dissenting shareholders.  Certificates representing MMC Shares which are presented for
transfer after the Effective Time (other than certificates representing shares
held by dissenting shareholders) shall be exchanged for certificates
representing shares of FAC Common Stock as herein provided.

 

(j)          After the Effective Time, FAC shall be
entitled to receive from MMC, upon request, a certificate or certificates
representing its ownership of all of  the
shares Common Stock of MMC to be issued pursuant to paragraph (a) of this
Section 3.

 

(k)         In the event any certificate
representing shares of the Capital Stock of MMC shall not be surrendered within
five years from the Closing Date, FAC, as agent for the holder of such
certificate, may sell the shares of FAC Common Stock which would have been
delivered in exchange for such certificate and may hold the proceeds of such
sale for such holder to be paid to him (without interest) on the surrender of
such certificate.  From the date of such
sale, the sole right of the holder of an unsurrendered certificate shall be to
collect upon the surrender of such certificate, the net sales proceeds (without
interest) held for his or her account.

 

4

 

4.        Notices.  Any notice or other communication required
or permitted hereunder shall be in writing, and shall be deemed to have been
given immediately if personally delivered or seventy-two hours later if placed
in the United States mail, registered or certified, postage prepaid, addressed
as follows:

 

If to MMC :

 

McGhan Medical
Corporation

700  Ward Drive

Santa Barbara, California
93111

Attention:  Donald K. McGhan

 

If to Mergerco or
FAC:

 

First American
Corporation

P.O. Box 136

West Chester,
Pennsylvania 19380

Attention:  Donald F. U. Goebert

 

5.        Governing Law. The validity, construction and interpretation
of this  Agreement shall be
governed  by the laws of

 

5

 

the State of California applicable to contracts made
and to be performed wholly within that state.

 

[ILLEGIBLE]

 

	
   

  	
  FA MERGERCO,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald W. Hayes

  	
   

  
	
   

  	
   

  	
  Ronald W. Hayes

  
	
   

  	
   

  	
  President and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  MCGHAN MEDICAL CORPORATION,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald K. McGhan

  	
   

  
	
   

  	
   

  	
  Donald K. McGhan, President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William R. Peeples

  	
   

  
	
   

  	
   

  	
  William R. Peeples, Assistant

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
						

 

6

 

CERTIFICATE OF
APPROVAL

OF

AGREEMENT OF
MERGER

 

RONALD W. HAYES certifies that:

 

1.             He
is the President and the Secretary of FA MERGERCO, a California corporation.

 

2.             The
Agreement of Merger  in the form
attached was duly approved by the Board of Directors and shareholders of the
corporation.

 

3.             The
shareholder approval was by the holders of 100% of the outstanding shares of
the corporation.

 

4.             There
is only one class of shares and the number of shares outstanding is 1,000.

 

5.             No
vote of the shareholders of the parent corporation was required.

 

I further declare under penalty of perjury under the
laws of the State of California that the matters set forth in this certificate
are true and correct of my own knowledge.

 

	
  Date: 
  September 25, 1985

  	
  /s/ Ronald W. Hayes

  
	
   

  	
  RONALD W. HAYES

  
	
   

  	
  President and Secretary

  

 

 

CERTIFICATE OF
APPROVAL

OF

AGREEMENT OF
MERGER

 

DONALD K. McGHAN
and T. JAN VARNER certify that:

 

1.             They
are the President and the Secretary, respectively, of McGHAN MEDICAL
CORPORATION, a California corporation.

 

2.             The
Agreement of Merger in the form attached was duly approved by the Board of
Directors and holders of the outstanding shares of each class entitled to vote
of the corporation.

 

3.             The
total number of shares of each class outstanding and entitled to vote on the
merger was 1,799,358 shares of Common Stock and 917,715 shares of Preferred
Stock of the corporation.

 

4.             The
shareholder approval was by the holders of 
98% of the Common Stock and 88% of the Preferred Stock of the
corporation.

 

5.             The
required shareholder percentage vote was more than 50% of each class of stock.

 

We further declare under penalty of perjury under the
laws of the State of California that the matters set forth in this certificate
are true and correct of our own knowledge.

 

	
  Date:  SEPT.
  25, 1985

  	
  /s/ Donald K. McGhan

  
	
   

  	
  DONALD K. McGHAN, President

  
	
   

  	
   

  
	
   

  	
  /s/ T. Jan Varner

  
	
   

  	
  T. JAN VARNER, Secretary

  

 

[SEAL OF OFFICE OF THE
SECRETARY OF STATE]

 

 

Annex 2

 

 

BYLAWS

 

OF

 

McGHAN MEDICAL
CORPORATION

 

ARTICLE
I

 

OFFICES

 

Section 1. 
PRINCIPAL OFFICE.  The board of
directors shall fix the location of the principal executive office of the
corporation at any place within or outside the State of California.  If the principal executive office is located
outside the State of California and the corporation has one or more business
offices in the State of California, the board of directors shall likewise fix
and designate a principal business office in the State of California.

 

Section 2. 
OTHER OFFICES.  The corporation
may also establish offices at such other places, both within and outside the
State of California, as the board of directors may from time to time determine
or the business of the corporation may require.

 

ARTICLE
II

 

MEETINGS OF SHAREHOLDERS

 

Section 1.  PLACE OF MEETINGS.  Meetings of shareholders shall be held at any place within or
outside the State of California designated by the board of directors.  In the absence of any such designation,
shareholders’ meetings shall be held at the principal executive office of the
corporation.

 

Section 2. 
ANNUAL MEETINGS.  The annual
meeting of shareholders shall be held on the 2nd Wed.  of April  in
each year at ten o’clock, A.M., or such other date or time as may be fixed by
the board of directors; provided, however, that should said day fall upon a
legal holiday, such annual meeting of shareholders shall be held at the same
time on the next succeeding day which is a full business day.  At such meeting, directors shall be elected
and any other proper business may be transacted.

 

Section 3. 
SPECIAL MEETINGS.  A special
meeting of the shareholders may be called at any time by the board of
directors, the chairman of the board, the president, or one or more
shareholders holding in the aggregate shares entitled to cast not less than 10%
of the votes at any such meeting.

 

If a special meeting is called by anyone other than
the board of directors, the request shall be in writing, specifying the time of
the meeting and the general nature of the business proposed to be transacted,
and shall be delivered personally or sent by registered mail or by telegraphic
or other facsimile transmission to the chairman of the board, the president,
any vice president or the secretary of the corporation.  The officer receiving such request forthwith
shall cause notice to be given to the shareholders entitled to vote, in
accordance with the provisions of Sections 4 and 5 of this Article II, that a
meeting will be held at the time requested by the person or persons calling the
meeting, not less than thirty-five (35) nor more than sixty (60) days after the
receipt of the request.  If the notice
is not given within twenty (20) days after receipt of the request, the person
or persons requesting the meeting may give the notice.  Nothing contained in this paragraph of this
Section 3 shall be construed as limiting, fixing or affecting the time when a
meeting of shareholders called by action of the board of directors may be held.

 

1

 

Section 4. 
NOTICE OF MEETINGS.  All notices
of meetings of shareholders shall be sent or otherwise given in accordance with
Section 5 of this Article II not less than ten (10) not more than sixty (60)
days before the date of the meeting being noticed.  The notice shall specify the place, date and hour of the meeting
and (i) in the case of a special meeting, the general nature of the business to
be transacted, or (ii) in the case of the annual meeting, those matters which
the board of directors, at the time of giving the notice, intends to present
for action by the shareholders.  The
notice of any meeting at which directors are to be elected shall include the
name of any nominee or nominees whom, at the time of the notice, management
intends to present for election.

 

If action is proposed to be taken at any meeting for
approval of (i) a contract or transaction in which a director has a direct or
indirect financial interest, pursuant to Section 310 of the California
Corporations Code (the “Code”), (ii) an amendment of the articles of
incorporation, pursuant to Section 902 of the Code, (iii) a reorganization of
the corporation, pursuant to Section 1201 of the Code, (iv) a voluntary
dissolution of the corporation, pursuant to Section 1900 of the Code, or (v) a
distribution in dissolution other than in accordance with the rights of
outstanding preferred shares, pursuant to Section 2007 of the Code, the notice
shall also state the general nature of such proposal.

 

Section 5. 
MANNER OF GIVING NOTICE.  Notice
of any meeting of shareholders shall be given personally or by first-class mail
or telegraphic or other written communication, charges prepaid, addressed to
the shareholder at the shareholder’s address appearing on the books of the corporation
or given by the shareholder to the corporation for the purpose of notice.  If no such address appears on the
corporation’s books or is given, notice shall be deemed to have been given if
sent to that shareholder by first-class mail or telegraphic or other written
communication to the corporation’s principal executive office, or if published
at least once in a newspaper of general circulation in the county in which the
principal executive office is located. 
Notice shall be deemed to have been given when delivered personally or
deposited in the mail or sent by telegram or other means of written
communication.

 

If any notice addressed to a shareholder at the
address of such shareholder appearing on the books of the corporation is
returned to the corporation by the United States Postal Service marked to
indicate that the Service is unable to deliver the notice to the shareholder at
such address, all future notices or reports shall be deemed to have been duly
given without further mailing if the same shall be available to the shareholder
upon written demand at the principal executive office of the corporation for a
period of one year from the date of the giving of such notice or report to all
other shareholders.

 

An affidavit of the mailing or other means of giving
any notice of any shareholders’ meeting shall be executed by the secretary,
assistant secretary or any transfer agent of the corporation, and shall be
filed and maintained in the minute book of the corporation.

 

Section 6. 
QUORUM.  Unless otherwise
provided in the articles of incorporation, the presence in person or by proxy
of the holders of a majority of the shares entitled to vote at any meeting of
shareholders shall constitute a quorum for the transaction of business.  The shareholders present at a duly called or
held meeting at which a quorum is present may continue to do business until
adjournment, notwithstanding the withdrawal of enough shareholders to leave
less than a quorum, if any action taken (other than adjournment) is approved by
at least a majority of the shares required to constitute a quorum.

 

2

 

Section 7.  ADJOURNMENT.  Any shareholders meeting, annual or special, whether or not a
quorum is present, may be adjourned from time to time by the vote of a majority
of the shares represented at such meeting, either in person or by proxy, but in
the absence of a quorum, no other business may be transacted at such meeting,
except as provided in Section 6 of this Article II.

 

When any meeting of
shareholders, annual or special, is adjourned to another time or place, notice
need not be given of the adjourned meeting if the time and place thereof are
announced at a meeting at which the adjournment is taken, unless a new record
date for the adjourned meeting is fixed, or unless the adjournment is for more
than forty-five (45) days from the date set for the original meeting, in which
case the board of directors shall set a new record date.  Notice of any such adjourned meeting shall
be given to each shareholder of record entitled to vote at the adjourned
meeting in accordance with the provisions of Sections 4 and 5 of this Article
II.  At any adjourned meeting, the
corporation may transact any business which might have been transacted at the
original meeting.

 

Section 8.  VOTING. 
The shareholders entitled to vote at any meeting of shareholders shall
be determined in accordance with the provisions of Section II of this Article
II, subject to the provisions of Sections 702 to 704, inclusive, of the Code
(relating to voting shares held by a fiduciary, in the name of a corporation or
in the names of two or more persons). 
The vote may be by voice vote or by ballot; provided, however, that any
election for directors must be by ballot if demanded by a shareholder at the
meeting and before the voting begins. 
Any shareholder entitled to vote on any matter (other than elections of
directors) may vote part of the shares in favor of the proposal and refrain
from voting the remaining shares or vote them against the proposal, but, if the
shareholder fails to specify the number of shares such shareholder is voting
affirmatively, it will be conclusively presumed that the shareholder’s
approving vote is with respect to all shares such shareholder is entitled to vote.  If a quorum is present, the affirmative vote
of the majority of the shares represented at the meeting and entitled to vote
on any matter (other than the election of directors) shall be the act of the
shareholders, unless the vote of a greater number or voting by classes is
required by the Code or the articles of incorporation.

 

At a shareholders’
meeting involving the election of directors, no shareholder shall be entitled
to cumulate votes on behalf of any candidate for director ( i.e., each shareholder
shall be entitled to cast for any one or more candidates no greater number of
votes than the number of shares held by such shareholder) unless such candidate
or candidates’ names have been placed in nomination prior to the voting and the
shareholder has given notice prior to the voting of the shareholder’s intention
to cumulate votes.  If any shareholder
has given such notice, every shareholder entitled to vote may cumulate votes
for candidates in nomination and give one candidate a number of votes equal to
the number of directors to be elected multiplied by the number of votes to
which such shareholder’s shares are entitled, or distribute the shareholder’s
votes on the same principle among as many candidates as the shareholder thinks
fit.  The candidates receiving the
highest number of votes, up to the number of directors to be elected, shall be
elected.

 

Section 9.  WAIVER OF NOTICE:  CONSENT;  The transactions
of any meeting of shareholders, annual or special, however called and noticed, and
wherever held, shall be as valid as though had at a meeting duly held after
regular call and notice, if a quorum is present either in person or by proxy,
and if, either before or after the meeting, each person entitled to vote, who
was not present in person or by proxy, signs a written waiver of notice, or a
consent to a holding of the meeting, or an approval of the minutes thereof. The
waiver of notice or consent need not specify either the business to be
transacted or the purpose of

 

3

 

any annual or special meeting of shareholders, except that if action is
taken or proposed to be taken for approval of any matters specified in the
second paragraph of Section 4 of this Article II, the waiver of notice or
consent shall state the general nature of the proposal.  All such waivers, consents or approvals
shall be filed with the corporate records or made a part of the minutes of the
meeting.

 

Attendance of a person at
a meeting shall also constitute a waiver of notice of such meeting, except when
the person objects, at the beginning of the meeting, to the transaction of any
business because the meeting is not lawfully called or convened, and except
that attendance at a meeting is not a waiver of any right to object to the consideration
of matters not included in the notice of such meeting if such objection is
expressly made at the meeting.

 

Section 10. ACTION
WITHOUT MEETING.  Unless otherwise
provided in the articles of incorporation, any action which may be taken at any
annual or special meeting of shareholders may be taken without a meeting and
without prior notice, if a consent in writing, setting forth the action so
taken, is signed by the holders of outstanding shares having not less than the
minimum number of votes that would be necessary to authorize or take such
action at a meeting at which all shares entitled to vote thereon were present
and voted.  In the case of election of
directors, such consent shall be effective only if signed by the holders of all
outstanding shares entitled to vote for the election of directors, provided
however, that a director may be elected at any time to fill a vacancy on the
board of directors not filled by the directors, by the written consent of the
holders of a majority of the outstanding shares entitled to vote for the
election of directors.  All such
consents shall be filed with the secretary of the corporation and shall be
maintained in the corporate records. 
Any shareholder giving a written consent, or the shareholder’s proxy
holder, or a transferee of the shares or a personal representative of the
shareholder or their respective proxy holders, may revoke the consent by a
writing received by the secretary of the corporation prior to the time that
written consents of the number of shares required to authorize the proposed
action have been filed with the secretary.

 

Unless the consents of
all shareholders entitled to vote have been solicited in writing, the secretary
shall give prompt notice of any corporate action approved by the shareholders
without a meeting by less than unanimous written consent to those shareholders
entitled to vote who have not consented in writing.  Such notice shall be given in the manner specified in Section 5
of this Article II.  In the case of
approval of (i) contracts or transactions in which a director has a direct or
indirect financial interest, pursuant to Section 310 of the Code, (ii)
indemnification of agents of the corporation, pursuant to Section 317 of the
Code, (iii) a reorganization of the corporation, pursuant to Section 1201 of
the Code, or iv) a distribution in dissolution other than in accordance with
the rights of outstanding preferred shares, pursuant to Section 2007 of the
Code, such notice shall be given at least ten (10) days before the consummation
of the action authorized by any such approval.

 

Section 11.  RECORD DATE.  For purposes of determining the shareholders entitled to notice
of any meeting or to vote or entitled to give consent to corporate action
without a meeting, the board of directors may fix, in advance, a record date,
which shall not be more than sixty (60) days nor less than ten (10) days prior
to the date of the meeting nor more than sixty (60) days prior to the action
without a meeting, and in such case only shareholders of record on the date so
fixed are entitled to notice and to vote or to give consents, as the case may
be, notwithstanding any transfer of any shares on the books of the corporation
after the record date, except as otherwise provided in the California General Corporation
Law.

 

4

 

If the board of directors
does not so fix a record date:

 

(a) The record date for
determining shareholders entitled to notice of or to vote at a meeting of
shareholders shall be at the close of business on the business day next
preceding the day on which notice is given or, if notice is waived, at the
close of business on the business day next preceding the day on which the
meeting is held.

 

(b) The record
date for determining shareholders entitled to give consent to corporate action
in writing without a meeting, (i) when no prior action by the board has been
taken, shall be the day on which the first written consent is given, or ( ii)
when prior action of the board has been taken, shall be at the close of
business on the day on which the board adopts the resolution relating thereto,
or the sixtieth (60th) day prior to the date of such other action, whichever is
later.

 

Section 12.  PROXIES. 
Every person entitled to vote for directors or on any other matter shall
have the right to do so either in person or by one or more agents authorized by
a written proxy signed by the person and filed with the secretary of the
corporation, A proxy shall be deemed signed if the shareholder’s name is placed
on the proxy (whether by manual signature, typewriting, telegraphic
transmission or otherwise) by the shareholder or the shareholder’s attorney in
fact.  A validly executed proxy which
does not state that it is irrevocable shall continue in full force and effect
unless (i) revoked by the person executing it, prior to the vote pursuant
thereto, by a writing delivered to the corporation stating that the proxy is
revoked or by a subsequent proxy executed by, or attendance at the meeting and
voting in person by, the person executing the proxy; or (ii) written notice of
the death or incapacity of the maker of the proxy is received by the
corporation before the vote pursuant thereto is counted; provided, however,
that no such proxy shall be valid after the expiration of eleven (11) months
from the date of the proxy, unless otherwise provided in the proxy.  The revocability of a proxy that states on
its face that it is irrevocable shall be governed by the provisions of Section
705(e) and (f) of the Code.

 

Section 13.  INSPECTORS OF ELECTION.  Before any meeting of shareholders, the
board of directors may appoint any persons (other than nominees for office) to
act as inspectors of election at the meeting or any adjournments thereof.  If inspectors of election are not so
appointed, the chairman of the meeting may, and on the request of any
shareholder or a shareholder’s proxy shall, appoint inspectors of election at
the meeting.  The number of inspectors
shall be either one (1) or three (3). 
If inspectors are appointed at a meeting on the request of one or more
shareholders or proxies, the majority of shares represented in person or by
proxy shall determine whether one (1) or three (3) inspectors are to be
appointed.  If any person appointed as
inspector fails to appear or refuses to act, the chairman of the meeting may,
and upon the request of any shareholder or a shareholder’s proxy shall, appoint
a person to replace the one who so failed or refused.  If there are three (3) inspectors or election, the decision, act
or certificate of a majority of them is effective in all respects as the
decision, act or certificate of all. 
Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated
therein.

 

ARTICLE
III

 

DIRECTORS

 

Section 1.  POWERS. 
Subject to the provisions of the California General Corporation Law and
any limitations in the articles of incorporation and these bylaws relating to
action

 

5

 

required to be approved by the shareholders or by the outstanding
shares, the business and affairs of the corporation shall be managed and all
corporate powers shall be exercised by or under the direction of the board of
directors.

 

Section 2.  NUMBER. 
The authorized number of directors shall be four (4), until changed by
an amendment to the articles of incorporation or, if permitted by Section 212
of the Code, by an amendment to this bylaw, duly adopted by the vote or written
consent of holders of a majority of the outstanding shares entitled to vote;
provided, however, that an amendment reducing the number of directors to a
number less than five (5) cannot be adopted if the votes cast against its
adoption at a meeting, or the shares not consenting in the case of action by
written consent, are equal to more than 16 2/3% of the outstanding
shares entitled to vote.

 

Section 3.  ELECTION AND TERM OF OFFICE.  Directors shall be elected at each annual
meeting of the shareholders to hold office until the next annual meeting.  Each director, including a director elected
to fill a vacancy, shall hold office until the expiration of the term for which
elected and until a successor has been elected and qualified.

 

Section 4.  REMOVAL. 
Any or all of the directors may be removed by order of court pursuant to
Section 304 of the Code, or by the shareholders pursuant to the provisions of
Section 303 of the Code.

 

Section 5.  VACANCIES. 
Vacancies in the board of directors may be filled by a majority of the
remaining directors, though less than a quorum, or by a sole remaining
director, except that a vacancy created by the removal of a director may be
filled only by the vote of a majority of the shares entitled to vote
represented at a duly held meeting at which a quorum is present, or by the
written consent of holders of a majority of the outstanding shares entitled to
vote.  Each director so elected shall
hold office until the next annual meeting of the shareholders and until a
successor has been elected and qualified.

 

A vacancy or vacancies in
the board of directors shall be deemed to exist in the case of the death,
resignation or removal of any director, or if the board of directors by
resolution declares vacant the office of a director who has been declared of
unsound mind by an order of court or who has been convicted of a felony, or if
the authorized number of directors is increased, or if the shareholders fail,
at any meeting of shareholders at which any director or directors are elected,
to elect the number of directors to be voted for at that meeting.

 

The shareholders may
elect a director or directors at any time to fill any vacancy or vacancies not
filled by the directors, but any such election by written consent shall require
the consent of a majority of the outstanding shares entitled to vote.

 

Any director may resign
effective upon giving written notice to the chairman of the board, the
president, the secretary or the board of directors, unless the notice specifies
a later time for the effectiveness of such resignation.  If the resignation of a director is
effective at a future time, the board of directors may elect a successor to
take office when the resignation becomes effective.

 

No reduction of the
authorized number of directors shall have the effect of removing any director
prior to the expiration of his or her term of office.

 

Section 6.  PLACE OF MEETINGS AND MEETINGS BY
TELEPHONE.  Regular meetings of the
board of directors may be held at any place within or outside the State of
California that has been designated from time to time by resolution of the
board.  In the absence of such
designation, regular meetings shall be held at the principal executive office
of the corporation.  Special meetings of
the board shall be held at any place within or

 

6

 

outside the State
of California that has been designated in the notice of the meeting or if not
stated in the notice or there is no notice, at the principal executive office
of the corporation.  Any meeting,
regular or special, may be held by conference telephone or similar communication
equipment, so long as all directors particpating can hear one another, and all
such directors shall be deemed to be present in person at such meeting.

 

Section 7.  REGULAR MEETINGS.  Immediately following each annual meeting of shareholders, the
board of directors shall hold a regular meeting for the purpose of
organization, any desired election of officers and the transaction of other
business.  Other regular meetings of the
board of directors shall be held without call at such time as shall from time
to time be fixed by the board of directors. 
Notice of regular meetings shall not be required.

 

Section 8.  SPECIAL MEETINGS.  Special meetings of the board of directors for any purpose or
purposes may be called at any time by the chairman of the board or the
president or any vice president or the secretary or any two directors.

 

Notice of the time and
place of special meetings shall be delivered to each director personally or by
telephone or sent by first-class mail or telegram, charges prepaid, addressed
to each director at his or her address as it is shown on the records of the
corporation.  In case the notice is
mailed, it shall be deposited in the United States mail at least four (4) days
prior to the time of the holding of the meeting.  In case such notice is delivered personally or by telephone or
telegraph, it shall be delivered personally or by telephone or to the telegraph
company at least forty-eight (48) hours prior to the time of the holding of the
meeting.  Any oral notice given
personally or by telephone may be communicated either to the director or to a
person at the office of the director who the person giving the notice has
reason to believe will promptly communicate it to the director.  The notice need not specify the purpose of
the meeting nor the place if the meeting is to be held at the principal
executive office of the corporation.

 

          Section 9. 
QUORUM.  A majority of the
authorized number of directors shall constitute a quorum for the transaction of
business, except to adjourn as hereinafter provided.  Every act or decision done or made by a majority of the directors
present at a meeting duly held at which a quorum is present shall be regarded
as the act of the board of directors, subject to the provisions of Section 310
of the Code (approval of contracts or transactions in which a director has a
direct or indirect material financial interest), Section 311 of the Code
(appointment of committees), and Section 317(e) of the Code (indemnification of
directors).  A meeting at which a quorum
is initially present may continue to transact business notwithstanding the
withdrawal of directors, if any action taken is approved by at least a majority
of the required quorum for such meeting.

 

Section 10.  WAIVER OF NOTICE; CONSENT.  The transactions of any meeting of the board
of directors, however called and noticed or wherever held, shall be as valid as
though had at a meeting duly held after regular call and notice if a quorum is
present and if, either before or after the meeting, each of the directors not
present signs a written waiver of notice, a consent to holding the meeting or
an approval of the minutes thereof.  The
waiver of notice or consent need not specify the purpose of the meeting.  All such waivers, consents and approvals
shall be filed with the corporate records or made a part of the minutes of the
meeting.  Notice of a meeting shall also
be deemed given to any director who attends the meeting without protesting,
prior thereto or at its commencement, the lack of notice to that director.

 

7

 

Section 11.  ADJOURNMENT.  A majority of the directors present, whether or not constituting
a quorum, may adjourn any meeting to another time and place.  Notice of the time and place of holding an
adjourned meeting need not be given, unless the meeting is adjourned for more
than twenty-four (24) hours, in which case notice of such time and place shall
be given prior to the time of the adjourned meeting, in the manner specified in
Section 8 of this Article III, to the directors who were not present at the
time of the adjournment.

 

Section 12.  ACTION WITHOUT MEETING.  Any action required or permitted to be taken
by the board of directors may be taken without a meeting, if all members of the
board shall individually or collectively consent in writing to such
action.  Such action by written consent
shall have the same force and effect as a unanimous vote of the board of
directors.  The written consent or
consents shall be filed with the minutes of the proceedings of the board.

 

Section 13.  FEES AND COMPENSATION.  Directors and members of committees may
receive such compensation, if any, for their services, and such reimbursement
of expenses, as may be fixed or determined by resolution of the board of
directors.  Nothing contained herein
shall be construed to preclude any director from serving the corporation in any
other capacity as an officer, agent, employee, or otherwise, and receiving
compensation for such service.

 

ARTICLE
IV

 

COMMITTEES

 

Section 1.  COMMITTEES OF DIRECTORS.  The board of directors may, by resolution
adopted by a majority of the authorized number of directors, designate one or
more committees, each consisting of two or more directors, to serve at the
pleasure of the board.  The board may
designate one or more directors as alternate members of any committee, who may
replace any absent member at any meeting of the committee.  Any such committee, to the extent provided
in the resolution of the board, may have all the authority of the board, except
with respect to:

 

(a) the approval of any
action which, under the California General Corporation Law, also requires
shareholders’ approval or approval of the outstanding shares;

 

(b) the filling of
vacancies on the board of directors or in any committee;

 

(c) the fixing of
compensation of the directors for serving on the board or on any committee;

 

(d) the amendment or
repeal or bylaws or the adoption of new bylaws;

 

(e) the amendment or
repeal of any resolution of the board of directors which by its express terms
is not so amendable or reapealable:

 

(f) a distribution to the
shareholders of the corporation, except at a rate or in a periodic amount or
within a price range determined by the board of directors; or

 

(g) the appointment of
any other committees of the board of directors or the members thereof.

 

Section 2.  MEETINGS AND ACTION.  Meetings and action of committees shall be
governed by, and held and taken in accordance with, the provisions of Article
III of these bylaws, Sections 6 (place of meetings and meetings by telephone),
7 (regular meetings), 8

 

8

 

(special meetings), 9 (quorums), 10 (waiver of notice), 11
(adjournment) and 12 (action without meeting), with such changes in the context
of those bylaws as are necessary to substitute the committee and its members
for the board of directors and its members, except that the time of regular
meetings of committees may be determined by resolution of the board of directors
as well as the committee; special meetings of committees may also be called by
resolution of the board of directors; and notice of special meetings of
committees shall also be given to all alternate members, who shall have the
right to attend all meetings of the committee. 
The board of directors may adopt rules for the government of any
committee not inconsistent with the provisions or these bylaws.

 

ARTICLE
V

 

OFFICERS

 

Section 1.  OFFICERS. 
The officers of the corporation shall be a president, a secretary and a
chief financial officer.  The
corporation may also have, at the discretion of the board of directors, a
chairman of the board, one or more vice presidents, one or more assistant
secretaries, one or more assistant treasurers. 
and such other officers as may be appointed in accordance with the
provisions of Section 3 of this Article V. 
Any number of offices may be held by the same person.

 

Section 2.  ELECTION. 
The officers of the corporation, except such officers as may be
appointed in accordance with the provisions of Section 3 or Section 5 of this
Article V, shall be chosen by the board of directors, and each shall serve at
the pleasure of the board subject to the rights, if any, of an officer under
any contract of employment.

 

Section 3.  OTHER OFFICERS.  The board of directors may appoint, and may empower the president
to appoint, such other officers as the business of the corporation may require,
each of whom shall hold office for such period, have such authority and perform
such duties as are provided in the bylaws or as the board of directors may from
time to time determine.

 

Section 4.  REMOVAL AND RESIGNATION.  Subject to the rights, if any, of any
officer under any contract of employment, any officer may be removed, either
with or without cause, by the board of directors or, except in case of an
officer chosen by the board of directors, by any officer upon whom such power
of removal may be conferred by the board of directors.

 

Any officer may resign at
any time by giving written notice to the corporation.  Any such resignation shall take effect at the date or the receipt
of such notice or at any later time specified therein, and, unless otherwise
specified therein, the acceptance of such resignation shall not be necessary to
make it effective.  Any such resignation
is without prejudice to the rights, if any, of the corporation under any
contract to which the officer is a party.

 

Section 5.  VACANCIES. 
A vacancy in any office because of death, resignation, removal,
disqualification or any other cause shall be filled in the manner prescribed in
these bylaws for regular appointments to such office.

 

Section 6.  CHAIRMAN OF THE BOARD.  The chairman of the board, if such an
officer be elected, shall, if present, preside at meetings of the board of
directors and exercise and perform such other powers and duties as may be from
time to time assigned to him or her by the board of directors or prescribed by
the bylaws.  If there is no president,
the chairman of the board shall in addition be the chief executive officer of
the corporation and shall have the powers and duties prescribed in Section 7 of
this Article V.

 

9

 

Section 7.  PRESIDEINT. 
Subject to such supervisory powers, if any, as may be given by the board
of directors to the chairman of the board, if there be such an officer, the
president shall be the chief executive officer of the corporation and shall,
subject to the control of the board of directors, have general supervision,
direction and control of the business and the officers of the corporation.  He or she shall preside at all meetings of
the shareholders and, in the absence of the chairman of the board, or if there
be none, at all meetings of the board of directors.  He or she shall have the general powers and duties of management
usually vested in the office of president of a corporation and shall have such
other powers and duties as may be prescribed by the board of directors or the
bylaws.

 

Section 8.  VICE PRESIDENTS.  In the absence or disability of the president, the vice
presidents, if any, in order of their rank as fixed by the board of directors
or, if not ranked, a vice president designated by the board of directors, shall
perform all the duties of the president, and when so acting shall have all the
powers of, and be subject to all the restrictions upon, the president.  The vice presidents shall have such other
powers and perform such other duties as from time to time may be prescribed for
them respectively by the board of directors or the bylaws and the president or
the chairman of the board.

 

Section 9.  SECRETARY. 
The secretary shall keep, or cause to be kept, at the principal
executive office or such other place as the board of directors may direct, a
book of minutes of all meetings and actions of directors, committees of
directors and shareholders; with the time and place of holding, whether regular
or special, and, if special, how authorized, the notice thereof given, the
names of those present at directors' and committee meetings, the number of
shares present or represented at shareholders’ meetings, and the proceedings
thereof.

 

The secretary shall keep,
or cause to be kept, at the principal executive office or at the office of the
corporation’s transfer agent or registrar, a share register, or a duplicate
share register, showing the names of all shareholders and their addresses, the
number and classes of shares held by each, the number and date of certificates
issued for the same, and the number and date of cancellation of every
certificate surrendered for cancellation.

 

The secretary shall give,
or cause to be given, notice of all meetings of the shareholders and of the
board of directors required by the bylaws or by law to be given, and he or she
shall keep the seal of the corporation, if one be adopted, in safe custody, and
shall have such other powers and perform such other duties as may be prescribed
by the board of directors or by the bylaws.

 

Section 10.  CHIEF FINANCIAL OFFICER.  The chief financial officer shall keep and
maintain, or cause to be kept and maintained, adequate and correct books and
records of accounts of the properties and business transactions of the
corporation, including accounts of its assets, liabilities, receipts,
disbursements, gains, losses, capital, retained earnings and shares.  The books of account shall at all reasonable
times be open to inspection by any director.

 

The chief financial
officer shall deposit, or cause to be deposited, all moneys and other valuables
in the name and to the credit of the corporation with such depositaries as may
be designated by the board of directors. 
He or she shall disburse, or cause to be disbursed, the funds of the
corporation as may be ordered by the board of directors, shall render to the
president and directors, whenever they request it, an account of all financial
transactions and of the financial condition of the corporation and shall have
such other powers and perform such other duties as may be prescribed by the
board of directors or the bylaws.

 

10

 

ARTICLE
VI

 

INDEMNIFICATION
OF DIRECTORS, OFFICERS, EMPLOYEES

AND
OTHER AGENTS

 

Section 1.  INDEMNIFICATION.  The corporation may, to the maximum extent permitted by the
California General Corporation Law, indemnify each of its agents against
expenses, judgments, fines, settlements and other amounts actually and
reasonably incurred in connection with any proceeding arising by reason of the
fact that any such person is or was an agent of the corporation.  For purposes of this Article VI, an “agent”
of the corporation includes any person who is or was a director, officer,
employee or other agent of the corporation, or is or was serving at the request
of the corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, or was a
director, officer, employee or agent of a corporation which was a predecessor
corporation of the corporation or of another enterprise at the request of such
predecessor corporation.

 

Section 2.  ADVANCE OF EXPENSES.  Expenses incurred in defending any
proceeding may be advanced by this corporation prior to the final disposition
of such proceeding upon receipt of an undertaking by or on behalf of the agent
to repay such amount unless it shall be determined ultimately that the agent is
entitled to be indemnified as authorized in this Article.

 

Section 3.  OTHER CONTRACTUAL RIGHTS.  Nothing contained in this Article shall
affect any right to indemnification to which persons other than directors and
officers of this corporation or any subsidiary hereof may be entitled by
contract or otherwise.

 

Section 4.  INSURANCE. 
Upon and in the event of a determination by the board of directors of
this corporation to purchase such insurance, this corporation shall purchase
and maintain insurance on behalf of any agent of the corporation against any
liability asserted against or incurred by the agent in such capacity or arising
out of the agent’s status as such whether or not this corporation would have
the power to indemnify the agent against such liability.

 

ARTICLE VII

 

RECORDS AND REPORTS

 

Section
1.  MAINTENANCE AND  INSPECTION
OF SHARE REGISTER.  The corporation
shall keep at its principal executive office, or at the office of its transfer
agent or registrar, if either be appointed, a record of its shareholders,
giving the names and addresses of all shareholders and the number and class of
shares held by each shareholder.

 

A shareholder or
shareholders of the corporation holding at least five percent (5%) in the
aggregate of the outstanding voting shares of the corporation may (i) inspect
and copy the records of shareholders’ names and addresses and shareholdings
during usual business hours upon five (5) days’ prior written demand upon the
corporation, or (ii) obtain from the transfer agent of the corporation, upon
written demand and upon the tender of the transfer agent’s usual charges for
such list, a list of the shareholders’ names and addresses, who are entitled to
vote for the election of directors, and their shareholdings, as of the most
recent record date for which such list has been compiled or as of a date
specified by the shareholder subsequent to the date of demand.  The list shall be made available to that
shareholder on or before the later of five (5) days after the demand is
received or the date

 

11

 

specified therein as the date as of which the list is to be
compiled.  The record or shareholders
shall also be open to inspection upon the written demand of any shareholder or
holder of a voting trust certificate, at any time during usual business hours, for
a purpose reasonably related to such holder’s interests as a shareholder or as
the holder of a voting trust certificate. 
Any inspection and copying under this Section may be made in person or
by an agent or attorney of the shareholder or holder of a voting trust
certificate making such demand.

 

Section 2.  MAINTENANCE AND INSPECTION OF BYLAWS.  The corporation shall keep at its principal
executive office, or if its principal executive office is not in the State, of
California, at its principal business office in that State, the original or a
copy of the bylaws as amended to date, which shall be open to inspection by the
shareholders at all reasonable times during office hours.  If the principal executive office of the
corporation is outside the State of California and the corporation has no
principal business office in that State, the Secretary shall, upon the written
request of any shareholder, furnish to such shareholder a copy of the bylaws as
amended to date.

 

Section 3.  MAINTENANCE AND INSPECTION OF OTHER
CORPORATE RECORDS.  The accounting books
and records and minutes of proceedings of the shareholders and the board of
directors and any committee or committees of the board of directors shall be
kept at such place or places designated by the board of directors, or, in the
absence of such designation, at the principal executive office of the
corporation.  The minutes shall be kept
in written form and the accounting books and records shall be kept either in
written form or in any other form capable of being converted into written
form.  Such minutes and accounting books
and records shall be open to inspection upon the written demand of any
shareholder or holder of a voting trust certificate, at any reasonable time
during usual business hours.  for a
purpose reasonably related to the holder’s interests as a shareholder or as the
holder of a voting trust certificate. 
The inspection may be made in person or by an agent or attorney, and
shall include the right to copy and make extracts.  The foregoing rights of inspection shall extend to the records of
each subsidiary of the corporation.

 

Section 4.  INSPECTION BY DIRECTORS.  Every director shall have the absolute right
at any reasonable time to inspect all books, records and documents of every
kind and the physical properties of the corporation and each subsidiary
corporation.  Such inspection by a
director may be made in person or by agent or attorney and the right of
inspection includes the right to copy and make extracts.

 

Section 5.  ANNUAL REPORTS.  The annual report to shareholders referred to in Section 1501 of
the Code is expressly dispensed with, but nothing herein shall be interpreted
as prohibiting the board of directors from issuing annual or other periodic
reports to the shareholders of the corporation as they deem appropriate.

 

Section 6.  FINANCIAL STATEMENTS.  A copy of any annual financial statement and
any income statement of the corporation for each quarterly period of each
fiscal year, and any accompanying balance sheet of the corporation as of the
end of each such period, that has been prepared by the corporation shall be
kept on file in the principal executive office of the corporation for twelve
(12) months and each such statement shall be exhibited at all reasonable times
to any shareholder demanding examination of any such statement or a copy shall
be mailed to any such shareholder.

 

If a shareholder or
shareholders holding at least five percent (5%) of the outstanding shares of
any class of stock of the corporation makes a written request to the
corporation for an income statement of the corporation for the three-month,
six-month or nine-month

 

12

 

period of the then
current fiscal year ended more than thirty (30) days prior to the date of the
request and a balance sheet of the corporation as of the end of such period,
the chief financial officer shall cause such statement or statements to be
prepared, if not already prepared, and shall deliver personally or mail such
statement or statements to the person
making the request within thirty (30) days after the receipt of such
request.  If the corporation has not
sent to the shareholders its annual report for the last fiscal year, this
report shall likewise be delivered or mailed to such shareholder or
shareholders  within thirty (30) days after such request.

 

The
corporation also shall, upon the written request of any shareholder, mail to
the shareholder a copy of the last annual, semi-annual or quarterly income
statement which it has prepared and a balance sheet as of the end of such
period.

 

The
quarterly income statements and balance sheets referred to in this section shall
be accompanied by the report thereon, if any, of any independent accountants
engaged by the corporation or the certificate of an authorized officer of the
corporation that such financial statements were prepared without audit from the
books and records of the corporation.

 

ARTICLE VIII

 

GENERAL MATTERS

 

Section
1.  RECORD DATE FOR PURPOSES OTHER THAN
NOTICE AND VOTING.  For purposes of
determining the shareholders entitled to receive payment of any dividend or
other distribution or allotment of any rights, or entitled to exercise any
rights in respect of any other lawful action (other than action by shareholders
by written consent without a meeting), the board of directors may fix, in
advance, a record date, which shall not be more than sixty (60) days prior to
any such action, and in such case only shareholders of record on the date so
fixed are entitled to receive the dividend, distribution or allotment of rights
or to exercise the rights, as the case may be, notwithstanding any transfer of
any shares on the books of the corporation after the record date so fixed,
except as otherwise provided in the California General Corporation Law.

 

If
the board of directors does not so fix a record date, the record date for
determining shareholders for any such purpose shall be at the close of business
on the date on which the board adopts the resolution relating thereto, or the
sixtieth (60th) day prior to the date of such action, whichever is later.

 

Section
2.  CHECKS, DRAFTS, EVIDENCES OF
INDEBTEDNESS.  All checks, drafts or
other orders for payment of money, notes or other evidences of indebtedness
issued in the name of or payable to the corporation, shall be signed or
endorsed by such person or persons and in such manner as, from time to time,
shall be determined by resolution of the board of directors.

 

Section
3.  CORPORATE CONTRACTS AND INSTRUMENTS;
HOW EXECUTED.  The board of directors,
except as otherwise provided in these bylaws, may authorize any officer or
officers, agent or agents, to enter into any contract or execute any instrument
in the name of and on behalf of the corporation, and such authority may be
general or confined to specific instances; and, unless so authorized or
ratified by the board of directors or within the agency power of an officer, no
officer, agent or employee shall have any power or authority to bind the
corporation by any contract or engagement or to pledge its credit or to render
it liable for any purpose or for any amount.

 

13

 

Section 4.  CERTIFICATES FOR SHARES.  A certificate or certificates for shares of
the capital stock of the corporation shall be issued to each shareholder when
any such shares are fully paid, and the board of directors may authorize the
issuance of certificates or shares as partly paid provided that such
certificates shall state the amount of the consideration to be paid therefor
and the amount paid thereon.  All
certificates shall be signed in the name of the corporation by the chairman of
the board or vice chairman of the board or the president or vice president and
by the chief financial officer or an assistant treasurer or the secretary or
any assistant secretary, certifying, the number of shares and the class or
series of shares owned by the shareholder. 
Any or all of the signatures on the certificate may be facsimile.  In case any officer, transfer agent or
registrar who has signed or whose facsimile signature has been placed upon a
certificate shall have ceased to be such officer, transfer agent or registrar
before such certificate is issued, it may be issued by the corporation with the
same effect as if such person were an officer, transfer agent or registrar at
the date of issue.

 

Section 5.  LOST CERTIFICATES.  Except as hereinafter in this Section provided, no new
certificates for shares shall be issued in lieu of an old certificate unless
the latter is surrendered to the corporation and cancelled.  The board of directors may, in case any
share certificate or certificate for any other security is lost, stolen or
destroyed, authorize the issuance of a new certificate in lieu thereof, upon
such terms and conditions as the board, may require, including provision for
indemnification of the corporation secured by a bond or other adequate security
sufficient to protect the corporation against any claim that may be made
against it, including any expense or liability, on account of the alleged loss,
theft or destruction of such certificate or the issuance of a replacement
certificate.

 

Section 6.  REPRESENTATION OF SHARES OF OTHER
CORPORATIONS.  The chairman of the
board, the president, or any vice president, or any other person authorized by
resolution of the board of directors or by any of the foregoing designated
officers, is authorized to vote on behalf of the corporation any and all shares
of any other corporation or corporations, foreign or domestic, standing in the
name of the corporation.  The authority
granted to said officers to vote or represent on behalf of the corporation any
and all shares held by the corporation in any other corporation or corporations
may be exercised by any such officer in person or by any person authorized to
do so by a proxy duly executed by said officer.

 

Section 7.  CONSTRUCTION AND DEFINITIONS.  Unless the context requires otherwise, the
general provisions, rules of construction, and definitions in the California
General Corporation Law shall govern the construction of these bylaws.  Without limiting the generality of the
foregoing, the singular number includes the plural, the plural number includes
the singular, and the term “person” includes both a corporation and a natural
person.  All references in these bylaws
to the California General Corporation Law or to sections of the Code shall be
deemed to be to such Law or sections as they may be amended and in effect and,
if renumbered, to such renumbered provisions at the time of any action taken
under the bylaws.

 

ARTICLE
IX

 

AMENDMENTS

 

Section 1.  AMENDMENT BY SHAREHOLDERS.  New bylaws may be adopted or these bylaws
may be amended or repealed by the vote or written consent of holders of a
majority of the outstanding shares entitled to vote; provided, however, that if
the articles of

 

14

 

incorporation of the corporation set forth the number of authorized
directors of the corporation, the authorized number of directors may be changed
only by an amendment of the articles of incorporation.

 

Section 2.  AMENDMENT BY DIRECTORS.  Subject to the rights of the share holders
to adopt, amend or repeal bylaws as provided in Section I of this Article IX,
bylaws, other than a bylaw amendment changing the authorized number of
directors, may be adopted, amended or repealed by the board of directors.

 

15

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

McGHAN MEDICAL CORPORATION

 

BY UNANIMOUS WRITTEN CONSENT

 

The undersigned, being
all of the members of the Board of Directors of McGHAN MEDICAL CORPORATION, a
California corporation (the “Company") acting pursuant to Section
307(8)(b) of the General Corporation Law of the State of California, hereby
consent in writing to the adoption of the following actions in lieu of a
special meeting of the Board of Directors:

 

GUARANTEE AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED
Corporation (“Inamed”) intends to enter into that certain Credit
Agreement dated as of February 1, 2000 (the “Credit Agreement”),
by and among Inamed, the Lenders. Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”). Bear.
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”)
and the Administrative Agent;

 

WHEREAS, pursuant to the
terms of the Credit Agreement, the Company, as a subsidiary of Inamed, is
required to guaranty all of Inamed’s obligations under the Credit Agreement
(the “Obligations”, as defined under the Credit Agreement), by entering
into that certain Guarantee and Collateral Agree­ment (the “Guarantee and
Collateral Agreement”) dated of even date with the Credit Agreement, a copy
of which has been presented to the Board;

 

WHEREAS, pursuant to the
terms and conditions of the Credit Agreement, the Company, as a subsidiary of
Inamed, is required to secure payment and performance of the Obligations, also
by entering into that same Guarantee and Collateral Agreement as defined
above), whereby the Company would grant to Administrative Agent, for the
benefit of the Administrative Agent and the Lenders, a perfected, first
priority Lien on all of its right, title and interest in all of its personal
property, including but not limited to all capital stock of its domestic

 

 

subsidiaries, 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licenses, material
property, etc.

 

WHEREAS, the Board of
Directors of the Company has determined that in order to give effect to the
Credit Agreement, it is advisable and in the best interests of the Company that
the Company enter into the Guarantee and Collateral Agreement and each of the
transactions contemplated thereby;

 

NOW, THEREFORE, BE IT
RESOLVED, that the Board of Directors deems it advisable and in the best
interests of the Company to enter into the Guarantee and Collateral Agreement
and any other documents contemplated thereby and such documents hereby are
authorized and approved, with such changes thereto as the Chairman, the
President, any Vice President or the Secretary of the Company (the “proper
officers”) may approve, such approval to be conclusively evidenced by such
officer’s or officers’ execution and delivery thereof;

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to enter into
the Guarantee and Collateral Agreement, substantially on the terms and
conditions as presented and described to the Board, with such changes thereto
as the proper officers may approve, such approval to be conclusively evidenced
by such officer’s or officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized
and directed to enter into such other agreements, documents, promissory notes,
and instruments with respect to any of the foregoing, in such form and on such
terms and conditions as may be agreed to by the proper officers of the Company,
Administrative Agent and the Lenders, and to take such other actions with
respect to the foregoing as may be required by Administrative Agent and the
Lenders; and that the proper officers of the Company be, and each of them
hereby is, authorized, directed and empowered, in the name and on behalf of the
Company, to execute and deliver such other agreements, documents, promissory
notes, deeds of trust, mortgages and other instruments and to perform all other
acts as such officers shall approve in connection with any of the above, the
execution of such agreements, documents, promissory notes and other instruments
or the taking of any such actions to be conclusive evidence of such approval.

 

 

GENERAL AUTHORIZATIONS

 

RESOLVED, that the officers of the Company be, and
each of them hereby is, authorized, empowered and directed, in the name and on
behalf of the Company, to do or cause to be done all such other acts or things,
and to execute and deliver, or cause to be executed and delivered, all such
other documents, instruments, agreements, notes, undertakings, guarantees and
certificates of any kind and nature whatsoever, as such officer or officers may
deem necessary or appropriate to effectuate or carry out the purposes and
intent of the foregoing resolutions; all such other actions to be performed in
such manner, and all such other documents, instruments, agreements, notes,
undertakings, guarantees and certificates to be executed and delivered in such
form, as the officer or officers performing or executing the same shall
approve, such officer’s or officers’ approval thereof to be conclusively
evidenced by the performance of any such other action or the execution and
delivery of any such other documents, instruments, agreements, notes,
undertakings and certificates; and

 

RESOLVED FURTHER, that all acts and things previously
done by any of the officers of the Company, on or prior to the date hereof, in
the name and on behalf of the Company, in connection with the transactions
contemplated by the foregoing resolutions, are in all respects ratified,
approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company.

 

* * *

 

 

This Unanimous Written
Consent may be executed in one or more counterparts, each of which shall be
considered as an original. The Secretary of the Company shall file this
Unanimous Written Consent in the minute book of the Company and it shall become
part of the record of the Company.

 

Dated: February 1, 2000

 

	
   

  	
  /s/ Richard G. Babbitt

  	
   

  
	
   

  	
   Richard G. Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
   Ilan K. Reich

  

 

 

Annex 4

 

 

STATE OF
CALIFORNIA

 

SECRETARY OF STATE

 

CERTIFICATE OF
STATUS

DOMESTIC
CORPORATION

 

[ILLEGIBLE]

 

 

MEDISYN TECHNOLOGIES
CORPORATION

 

SECRETARY’S CERTIFICATE

 

Reference is hereby made
to the Credit Agreement, dated as of February 1, 2000 (as amended. supplemented
or otherwise modified from time to time, the “Credit Agreement”), among
Inamed Corporation (the “Borrower“), the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co. Inc., as sole lead arranger and sole book manager (the
“Arranger”) and the Administrative Agent. Capitalized terms used herein
and not otherwise defined shall have the meanings assigned in the Credit
Agreement. This certificate is being delivered pursuant to Section 5.1(g) of
the Credit Agreement.

 

I, David E. Bamberger,
hereby certify that I am the Secretary of MEDISYN TECHNOLOGIES CORPORATION (the
“Company”), and as such have access to the Company’s corporate records and am
familiar with the matters therein contained and herein certified, and that:

 

1.             Attached hereto as Annex 1 are
true, correct and complete copies of (i) the Articles of Incorporation of
MEDISYN TECHNOLOGICAL CORPORATION, as filed with the Secretary of State of the
State of Nevada on December 1, 1992 and (ii) the Certificate of Amendment of
Articles of Incorporation of MEDISYN TECHNOLOGICAL CORPORATION, changing its
name to “MEDISYN TECHNOLOGIES CORPORATION,” as filed with the Secretary of
State of the State of Nevada on May 12, 1993.

 

2.             Attached hereto as Annex 2 is a
true, correct and complete copy of the By-laws of the Company as presently in
effect on and as of the date hereof, which By-laws are in full force and effect
in said form without modification, amendment, rescission or repeal in any
respect.

 

3.             Attached hereto as Annex 3 is a
true, correct and complete copy of resolutions adopted by unanimous written
consent in lieu of a meeting in accordance with applicable laws and the
Articles of Incorporation and By-laws of the Company, and such resolutions (i)
were duly adopted by the Board of Directors of the Company and are in full force
and effect on and as of the date hereof, not having been in any way amended,
altered or repealed, and (ii) constitute the only

 

 

resolutions of the Board of Directors of the Company relating to the
subject matter of the Credit Agreement, the other Loan Documents and the
transactions contemplated thereby.

 

4.             Attached hereto as Annex 4 is (i) a true, correct and
complete copy of a certificate from the Office of the Secretary of State of the
State of Nevada indicating that the Company is in good standing.

 

5.             There are no consents, licenses or approvals required in
connection with the execution, delivery and performance by the Company or the
validity and enforceability against the Company of the Loan Documents to which
it is a party.

 

6.             The following persons are duly qualified and acting
officers of the Company, each of whom is authorized to sign any of the Loan
Documents to which the Company is a party, and each of whom is duly elected to
the office set forth opposite his respective name; the signature appearing
opposite the name of each such officer is his authentic signature:

 

	
  NAME

  	
   

  	
  OFFICE

  	
   

  	
  SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
  Ilan K. Reich

  	
  PRESIDENT

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
   

  	
   

  
	
  David E. Bamberger

  	
  SECRETARY

  	
  /s/ David E. Bamberger

  	
   

  

 

IN WITNESS WHEREOF, the
undersigned has executed this Secretary’s Certificate as of the 1 day of
February, 2000.

 

	
   

  	
  /s/ David E. Bamberger

  	
   

  
	
   

  	
   David E. Bamberger

  
	
   

  	
   Secretary

  

 

2

 

I. Ilan K. Reich,
President of the Company, hereby certify that David E. Bamberger is the duly
elected Secretary of the Company and that the signature appearing above is his
genuine signature.

 

	
   

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
   Ilan K. Reich

  
	
   

  	
   President

  

 

3

 

Annex I

 

[ILLEGIBLE]

 

 

ARTICLES
OF  INCORPORATION

 

OF

 

MEDISYN TECHNOLOGICAL
CORPORATION

 

I, the person hereinafter named as incorporator, for
the purpose of associating to establish a corporation, under the provisions and
subject to the requirements of Title 7, Chapter 78 of Nevada Revised Statutes,
and the acts amendatory thereof, and hereinafter sometimes referred to as the
General Corporation Law of the State of Nevada, do hereby adopt and make the
following Articles of Incorporation:

 

FIRST:             The name of the corporation
(hereinafter called the corporation) is MEDISYN TECHNOLOGICAL CORPORATION.

 

SECOND:        The name of the corporation’s resident
agent in the State of Nevada is The Prentice-Hall Corporation System, Nevada,
Inc., and the street address of the said resident agent where process may be
served on the corporation is 502 East John Street, Carson City 89706.

 

THIRD:            This corporation is authorized to
issue two classes of stock, designated Common Stock and Preferred Stock,
respectively. The number of shares of Common Stock which the corporation is
authorized to issue is Fifteen Thousand (15,000), all of which are of a par
value of One ($1.00) dollar each. The number of shares of Preferred Stock which
the corporation is authorized to issue is Ten Thousand (10,000), all of which
are of a par value of One ($1.00) dollar each.

 

The Preferred Stock may
be issued in one or more series. The Board of Directors of the corporation is
hereby authorized to determine or alter the rights, preferences, privileges and
restrictions granted to or imposed on any wholly unissued class or series of
Preferred Stock and to fix and determine the number of shares and the
designation of any series of wholly unissued Preferred Stock.

 

No holder of any of the
shares of any class of the corporation shall be entitled as of right to
subscribe for, purchase, or otherwise acquire any shares of any class of the
corporation which the corporation proposes to issue or any rights or options
which the corporation proposes to grant for the purchase of shares of any class
of the corporation or for the purchase of any shares, bonds, securities, or
obligations of the corporation which are convertible into or exchangeable for,
or which carry any

 

1

 

rights, to subscribe for,
purchase, or otherwise acquire shares of any class of the corporation; and any
and all of such shares, bonds, securities, or obligations of the corporation,
whether now or hereafter authorized or created, may be issued, or may be
reissued or transferred if the same have been reacquired and have treasury
status, and any and all of such rights and options may be granted by the Board
of Directors to such persons, firms, corporations, and associations, and for
such lawful consideration, and on such terms, as the Board of Directors in its
discretion may determine, without first offering the same, or any thereof, to
any said holder.

 

FOURTH:
       The governing board of the
corporation shall be styled as a “Board of Directors”, and any member of said
Board shall be styled as a “Director.”

 

The number of members
constituting the first Board of Directors of the corporation is two (2); and
the names and the post office box or street addresses, either residence or business,
of each of said members are as follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  
	
  Donald K. McGhan

  	
   

  	
  3800 Howard Hughes Parkway, Suite 900 Las Vegas, NV
  89109

  
	
   

  	
   

  	
   

  
	
  Michael D. Farney

  	
   

  	
  3800 Howard Hughes Parkway, Suite 900 Las Vegas, NV
  89109

  

 

The number of directors
of the corporation may be increased or decreased in the manner provided in the
Bylaws of the corporation; provided, that the number of directors shall never
be less than one. In the interim between election of directors by stockholders
entitled to vote, all vacancies, including vacancies caused by an increase in
the number of directors and including vacancies resulting from the removal of
directors by the stockholders entitled to vote which are not filled by said
stockholders, may be filled by the remaining directors, though less than a
quorum.

 

FIFTH:             The name and the post office box or
street address, either residence or business, of the incorporator signing these
Articles of Incorporation are as follows:

 

	
  NAME

  	
   

  	
  ADDRESS

  	 

	
  M. Ryan

  	
   

  	
  5670 Wilshire Blvd., Ste. 750 Los Angeles, CA 90036

  

 

2

 

SIXTH:            The corporation shall have perpetual
existence.

 

SEVENTH:      The personal liability or the directors of
the corporation in hereby eliminated to the fullest extent permitted by, the
General Corporation Law of the State of Nevada, as the same may be amended and
supplemented.

 

EIGHTH:          The
corporation shall, to the fullest extent, permitted by the General Corporation
Law of the State of Nevada, as the same may be amended and supplemented,
indemnify any and all persons whom it shall have power to indemnify under said
Law from and against any and all of the expenses, liabilities, or other matters
referred to in or covered by said Law, and the indemnification provided for
herein shall not be deemed exclusive, of any other rights to which those indemnified
may be entitled under any Bylaw, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in his official
capacity and as to action in another capacity while holding such office, and
shall continue as to a person who has ceased to be a director, officer,
employee, or agent and shall inure to the benefit of the heirs, executors, and
administrators of such a person.

 

NINTH:            The corporation may engage in any
lawful activity.

 

TENTH:           The corporation reserves the right to
amend, alter, change, or repeal any provision contained in these Articles of
Incorporation in the manner now or hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this
reservation.

 

IN WITNESS WHEREOF, I do
hereby execute these Articles of Incorporation on November 30, 1992.

 

	
   

  	
  /s/ M. Ryan, Incorporator

  	
   

  
	
   

  	
   M. Ryan, Incorporator

  

 

3

 

	
  STATE OF CALIFORNIA

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF LOS ANGELES

  	
  )

  	
   

  

 

 

On this 30th day of
November, 1992, personally appeared before me, a Notary Public in and for the
State and County aforesaid, M. Ryan, known to me to be the person described in
and who executed the foregoing Articles of Incorporation, and who acknowledged
to me that she executed the same freely and voluntarily and for the uses and
purposes therein mentioned.

 

WITNESS my hand and
official seal, the day and year first above written.

 

	
   

  	
  /s/ Jillaine E. Costelloe

  	
   

  
	
   

  	
  Notary Public

  	
   

  

 

[SEAL]

 

(Notarial Seal)

 

4

 

CERTIFICATE
OF AMENDMENT

 

OF

 

ARTICLES
OF INCORPORATION

 

OF

 

MEDISYN
TECHNOLOGICAL CORPORATION

 

Pursuant to the
provisions of Nevada Revised Statutes, Title 7, Chapter 78, the undersigned
officers do hereby certify that:

 

FIRST:            The name of the Corporation in
MEDISYN TECHNOLOGICAL CORPORATION.

 

SECOND:       The Board of Directors of the Corporation
duly adopted the following resolutions on April 30, 1993:

 

RESOLVED:  That it is advisable in the judgment of the
Board of Directors of the Corporation that the name of the Corporation be
changed, and that, in order to accomplish the same, Article FIRST of the
Articles of Incorporation be amended to read as follows:

 

“FIRST:  The name of the corporation (hereinafter
called the corporation) is MEDISYN TECHNOLOGIES CORPORATION.

 

RESOLVED,
FURTHER:  That a
special meeting of stockholders having voting power be and it is hereby called
and that notice be given in the manner prescribed by the Bylaws of the
Corporation and by Nevada Revised Statutes, Title 7, Chapter 78, unless such
stockholders shall waive the notice of meeting in writing or unless all of such
stockholders shall dispense with the holding of a meeting and shall take action
upon the proposed amendment by a consent in writing signed by them.

 

RESOLVED,
FURTHER:  That, in the
event that the stockholders shall adopt the aforesaid proposed amendment by a
vote in favor thereof by at least a majority of the voting power or by a
written consent in favor thereof signed by all of them without a meeting, the
Corporation is hereby authorized to make by the hands of its President and by
its Secretary a certificate setting forth such amendment and to cause the same
to be filed pursuant to the provisions of Nevada Revised Statutes, Title 7,
Chapter 78.

 

1

 

THIRD:  That
the total number of outstanding shares having voting power of the Corporation
is five thousand (5,000), and the total number of votes entitled to be cast by
the holders of all of such outstanding shares is five thousand (5,000).

 

FOURTH:  The holders of all of the aforesaid total
number of outstanding shares having voting power, to wit, five thousand (5,000)
shares, dispensed with the holding of a meeting of stockholders and adopted the
amendment herein certified by a consent in writing signed by all of them.

 

EXECUTED this 7th day of May, 1993.

 

	
   

  	
  MEDISYN TECHNOLOGICAL CORPORATION,

  
	
   

  	
  a
  Nevada corporation

  
	
   

  	
   

  
	
  By

  	
    /s/ Donald
  K. McGhan

  	
   

  
	
   

  	
   Donald K. McGhan, President

  
	
   

  	
   

  
	
  By

  	
    /s/ Michael
  D. Farney

  	
   

  
	
   

  	
   Michael D. Farney, Secretary

  
				

 

ACKNOWLEDGEMENT

 

[SEAL]

	
  STATE OF NEVADA

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF CLARK

  	
  )

  

 

 

On May 7, 1993, personally appeared before
me, a Notary Public, for the State and County aforesaid, Donald K. McGhan,
President of Medisyn Technological Corporation, and Michael D. Farney,
Secretary of Medisyn Technological Corporation, who acknowledged that they
executed the above instrument.

 

	
   

  	
  /s/ Pamela L. Goodwill

  	
   

  
	
   

  	
  Notary 
  Public

  

[Notarial Seal]

 

2

 

Annex 2

 

 

BYLAWS

 

OF

 

MEDISYN TECHNOLOGICAL
CORPORATION

(a Nevada corporation)

 

ARTICLE I

 

STOCKHOLDERS

 

1. CERTIFICATES REPRESENTING STOCK.  Every holder of stock in the corporation
shall be entitled to have a certificate signed by, or in the name of, the
corporation by the Chairman or Vice-Chairman of the Board of Directors, if any,
or by the President or a Vice-President and by the Treasurer or an Assistant
Treasurer or the Secretary or an Assistant Secretary of the corporation or by
agents designated by the Board of Directors, certifying the number of shares
owned by him in the corporation and setting forth any additional statements
that may be required by the General Corporation Law of the State of Nevada
(General Corporation Law). If any such certificate is countersigned or
otherwise authenticated by a transfer agent or transfer clerk or by a registrar
other than the corporation, a facsimile of the signature of any such officers
or agents designated by the Board may be printed or lithographed upon such
certificate in lieu of the actual signatures. If any officer or officers who
shall have signed, or whose facsimile signature or signatures shall have been
used on any certificate or certificates shall cease to be such officer or officers
of the corporation before such certificate or certificates shall have been
delivered by the corporation, the certificate or certificates may nevertheless
be adopted by the corporation and be issued and delivered as though the person
or persons who signed such certificate or certificates, or whose facsimile
signature or signatures shall have been used thereon, had not ceased to be such
officer or officers of the corporation.

 

Whenever the corporation shall be authorized to issue
more than one class of stock or more than one series of any class of stock, the
certificates representing stock of any such class or series shall set forth
thereon the statements prescribed by the General Corporation Law. Any
restrictions on the transfer or registration of transfer of any shares of stock
of any class or series shall be noted conspicuously on the certificate
representing such shares.

 

 

The corporation may issue a new certificate of stock
in place of any certificate theretofore issued by it, alleged to have been lost,
stolen, or destroyed, and the Board of Directors may require the owner of any
lost, stolen, or destroyed certificate, or his legal representative, to give
the corporation a bond sufficient to indemnify the corporation against any
claim that may be made against it on account of the alleged loss, theft, or
destruction of any such certificate or the issuance of any such new
certificate.

 

2. FRACTIONAL SHARE INTERESTS.  The corporation shall not be obliged to but
may execute and deliver a certificate for or including a fraction of a share.
In lieu of executing and delivering a certificate for a fraction of a share,
the corporation may pay to any person otherwise entitled to become a holder of
a fraction of a share an amount in cash specified for such purpose as the value
thereof in the resolution of the Board of Directors, or other instrument
pursuant to which such fractional share would otherwise be issued, or, if not
specified therein, then as may be determined for such purpose by the Board of
Directors of the issuing corporation; or may execute and deliver registered or
bearer scrip over the manual or facsimile signature of an officer of the
corporation or of its agent for that purpose, exchangeable as therein provided
for full share certificates, but such scrip shall not entitle the holder to any
rights as a stockholder except as therein provided. Such scrip may provide that
it shall become void unless the rights of the holders are exercised within a
specified period and may contain any other provisions or conditions that the
corporation shall deem advisable. Whenever any such scrip shall cease to be
exchangeable for full share certificates, the shares that would otherwise have
been issuable as therein provided shall be deemed to be treasury shares unless the
scrip shall contain other provision for their disposition.

 

3. STOCK TRANSFERS.  Upon compliance with provisions restricting
the transfer or registration of transfer of shares of stock, if any, transfers
or registration of transfers of shares of stock of the corporation shall be
made only on the stock ledger of the corporation by the registered holder
thereof, or by his attorney thereunto authorized by power of attorney duly
executed and filed with the Secretary of the corporation or with a transfer agent
or a registrar, if any, and on surrender of the certificate or certificates for
such shares of stock properly endorsed and the payment of all taxes, if any,
due thereon.

 

4. RECORD DATE FOR
STOCKHOLDERS.  For the purpose of
determining the stockholders entitled to notice of or to vote at any meeting of
stockholders or any adjournment thereof, or to express consent to corporate
action in writing without a meeting, or entitled to receive payment of any
dividend or other distribution or the allotment of any rights, or entitled to
exercise any rights in respect of any change, conversion, or exchange of stock
or for the purpose of any other lawful action, the directors may fix, in
advance, a record date, which shall not be more than sixty days nor less than ten
days before the date of such meeting, nor more than sixty days prior to any
other action. If no record date is fixed, the record date for determining
stockholders entitled to notice of

 

 

or to vote at a meeting of stockholders shall be at the close of
business on the day next preceding the day on which notice is given, or, if
notice is waived, at the close of business on the day next preceding the day on
which the meeting is held; the record date for determining stockholders
entitled to express consent to corporate action in writing without a meeting,
when no prior action by the Board of Directors is necessary, shall be the day
on which the first written consent is expressed; and the record date for
determining stockholders for any other purpose shall be at the close of
business on the day on which the Board of Directors adopts the resolution
relating thereto. A determination of stockholders of record entitled to notice
of or to vote at any meeting of stockholders shall apply to any adjournment of
the meeting; provided, however, that the Board of Directors may fix a new
record date for the adjourned meeting.

 

5. MEANING OF CERTAIN TERMS.  As used in these Bylaws in respect of the
right to notice of a meeting of stockholders or a waiver thereof or to participate
or vote thereat or to consent or dissent in writing in lieu of a meeting, as
the case may be, the term “share” or “shares” or “share of stock” or “shares of
stock” or “stockholder” or “stockholders” refers to an outstanding share or
shares of stock and to a holder or holders of record of outstanding shares of
stock when the corporation is authorized to issue only one class of shares of
stock, and said reference is also intended to include any outstanding share or
shares of stock and any holder or holders of record of outstanding shares of
stock of any class upon which or upon whom the Articles of Incorporation
confers such rights where there are two or more classes or series of shares of
stock or upon which or upon whom the General Corporation Law confers such
rights notwithstanding that the articles of incorporation may provide for more
than one class or series of shares of stock, one or more of which are limited
or denied such rights thereunder: provided, however, that no such right shall
vest in the event of an increase or a decrease in the authorized number of
shares of stock of any class or series which is otherwise denied voting rights
under the provisions of the Articles of Incorporation.

 

6. STOCKHOLDER MEETINGS.

 

- TIME. The annual meeting shall be held on the
date and at the time fixed, from time to time, by the directors, provided, that
the first annual meeting shall be held on a date within thirteen months after
the organization of the corporation, and each successive annual meeting shall be
held on a date within thirteen months after the date of the preceding annual
meeting. A special meeting shall be held on the date and at the time fixed by
the directors.

 

- PLACE. Annual meetings and special meetings
shall be held at such place, within or without the State of Nevada, as the
directors may, from time to time, fix.

 

 

- CALL. Annual meetings and special meetings
may be called by the directors or by any officer instructed by the directors to
call the meeting.

 

- NOTICE OR WAIVER OF NOTICE. Notice of all
meetings shall be in writing and signed by the President or a Vice-President,
or the Secretary, or an Assistant Secretary, or by such other person or persons
as the directors must designate. The notice must state the purpose or purposes
for which the meeting is called and the time when, and the place, where it is
to be held. A copy of the notice must be either delivered personally or mailed
postage prepaid to each stockholder not less than ten nor more than sixty days
before the meeting. If mailed, it must be directed to the stockholder at his
address as it appears upon the records of the corporation.  Any stockholder may waive notice of any
meeting by a writing signed by him, or his duly authorized attorney, either
before or after the meeting; and whenever notice of any kind is required to be
given under the provisions of the General Corporation Law, a waiver thereof in
writing and duly signed whether before or after the time stated therein, shall
be deemed equivalent thereto.

 

- CONDUCT OF MEETING. Meetings of the
stockholders shall be presided over by one of the following officers in the
order of seniority and if present and acting - the Chairman of the Board, if
any, the Vice-Chairman of the Board, if any, the President, a Vice-President,
or, if none of the foregoing is in office and present and acting, by a chairman
to be chosen by the stockholders. The Secretary of the corporation, or in his
absence, an Assistant Secretary, shall act as secretary of every meeting, but
if neither the Secretary nor an Assistant Secretary is present the Chairman of
the meeting shall appoint a secretary of the meeting.

 

- PROXY REPRESENTATION. Every stockholder may
authorize another person or persons to act for him by proxy in any manner
described in, or otherwise authorized by, the provisions of Section 78.355 of
the General Corporation Law.

 

- INSPECTORS. The
directors, in advance of any meeting, may, but need not, appoint one or more
inspectors of election to act at the meeting or any adjournment thereof. If an
inspector or inspectors are not appointed, the person presiding at the meeting
may, but need not, appoint one or more inspectors. In case any person who may
be appointed as an inspector fails to appear or act, the vacancy may be filled
by appointment made by the directors in advance of the meeting or at the
meeting by the person presiding thereat. Each inspector, if any, before
entering upon the discharge of his duties, shall take and sign an oath
faithfully to execute the duties of inspector at such meeting with strict
impartiality and according to the best of his ability. The inspectors, if any,
shall determine the number of shares of stock outstanding and the voting power
of each, the shares of stock represented at the meeting, the existence of a
quorum, the validity and effect of proxies, and shall receive votes, ballots or
consents, hear and determine all challenges and questions arising in connection
with the right to vote, count and tabulate all votes, ballots or consents,

 

 

determine the result, and do such acts as are proper to conduct the
election or vote with fairness to all stockholders. On request of the person
presiding at the meeting, the inspector or inspectors, if any, shall make a
report in writing of any challenge, question or matter determined by him or
them and execute a certificate of any fact found by him or them.

 

- QUORUM. 
Stockholders holding at least a majority of the voting power are
necessary to constitute a quorum at a meeting of stockholders for the
transaction of business unless the action to be taken at the meeting shall
require a greater proportion. The stockholders present may adjourn the meeting
despite the absence of a quorum.

 

- VOTING. 
Each share of stock shall entitle the holder thereof to one vote. In the
election of directors, a plurality of the votes cast shall elect. Any other
action shall be authorized by stockholders who hold at least a majority of the
voting power and are present at a meeting at which a quorum is present, except
where the General Corporation Law, the Articles of Incorporation, or these
Bylaws prescribe a different percentage of votes and/or a different exercise of
voting power. In the election of directors, voting need not be by ballot; and,
except as otherwise may be provided by the General Corporation Law, voting by
ballot shall not be required for any other action.

 

7. STOCKHOLDER ACTION WTTHOUT MEETINGS.  Except as may otherwise be provided by the
General Corporation Law, any action required or permitted to be taken at a
meeting of the stockholders may be taken without a meeting if a written consent
thereto is signed by stockholders holding at least a majority of the voting
power; provided that if a different proportion of voting power is required for
such an action at a meeting, then that proportion of written consents is
required. In no instance where action is authorized by written consent need a
meeting of stockholders be called or noticed. Any written consent shall be
subject to the requirements of Section 78.320 of the General Corporation Law
and of any other applicable provision of law.

 

ARTICLE II

 

DIRECTORS

 

1. FUNCTIONS AND DEFINITION.  The business and affairs of the corporation
shall be managed by the Board of Directors of the corporation. The Board of
Directors shall have authority to fix the compensation of the members thereof
for services in any capacity. The use of the phrase “whole Board” herein refers
to the total number of directors which the corporation would have if there were
no vacancies.

 

2. QUALIFICATIONS AND
NUMBER.  Each director must be at
least 18 years of age. A director need not be a stockholder or a resident of
the State of Nevada. The initial Board of Directors shall consist of 2 persons.
Thereafter the number of

 

 

directors constituting the whole board shall be at least one, Subject
to the foregoing. Limitation and except for the first Board of Directors, such
number may be fixed from time to time by action of the stockholders or of the
directors, or, if the number is not fixed, the number shall be 2. The number of
directors may be increased or decreased by action of the stockholders or of the
directors.

 

3. ELECTION AND TERM.  Directors may be elected in the manner prescribed by the
provisions of Sections 78.320 through 78.335 of the General Corporation Law of
Nevada. The first Board of Directors shall hold office until the first election
of directors by stockholders and until their successors are elected and
qualified or until their earlier resignation or removal. Any director may
resign at any time upon written notice to the corporation. Thereafter,
directors who are elected at an election of directors by stockholders, and
directors who are elected in the interim to fill vacancies and newly created
directorships, shall hold office until the next election of directors by
stockholders and until their successors are elected and qualified or until
their earlier resignation or removal. In the interim between elections of
directors by stockholders, newly created directorships and any vacancies in the
Board of Directors, including any vacancies resulting from the removal of
directors for cause or without cause by the stockholders and not filled by said
stockholders, may be filled by the vote of a majority of the remaining
directors then in office, although less than a quorum, or by the sole remaining
director.

 

4. MEETINGS.

 

- TIME.  Meetings shall be held at such time as the
Board shall fix, except that the first meeting of a newly elected Board shall
be held as soon after its election as the directors may conveniently assemble.

 

- PLACE. 
Meetings shall be held at such place within or without the State of
Nevada as shall be fixed by the Board.

 

- CALL. 
No call shall be required for regular meetings for which the time and
place have been fixed. Special meetings may be called by or at the direction of
the Chairman of the Board, if any, the Vice-Chairman of the Board, if any, of
the President, or of a majority of the directors in office.

 

- NOTICE OR ACTUAL OR CONSTRUCTIVE WAIVER.  No notice shall be required for regular meetings
for which the time and place have been fixed. Written, oral, or any other mode
of notice of the time and place shall be given for special meetings in
sufficient time for the convenient assembly of the directors thereat. Notice if
any need not be given to a director or to any member of a committee of
directors who submits a written waiver of notice signed by him before or after
the time stated therein.

 

 

- QUORUM AND ACTION.  A majority of the whole Board shall constitute a quorum except
when a vacancy or vacancies prevents such majority, whereupon a majority of the
directors in office shall constitute a quorum, provided, that such majority
shall constitute at least one-third of the whole Board. A majority of the
directors present, whether or not a quorum is present, may adjourn a meeting to
another time and place. Except as the Articles of Incorporation or these Bylaws
may otherwise provide, and except as otherwise provided by the General
Corporation Law, the act of a majority of the directors present at a meeting at
which a quorum is present is the act of the Board. The quorum and voting
provisions herein stated shall not be construed as conflicting with any
provisions of the General Corporation Law and these Bylaws which govern a
meeting of directors held to fill vacancies and newly created directorships in
the Board or action of disinterested directors.

 

Members of the Board or of any committee which may be
designated by the Board may participate in a meeting of the Board or of any
such committee, as the case may be, by means of a telephone conference or
similar method of communication by which all persons participating in the
meeting hear each other. Participation in a meeting by said means constitutes
presence in person at the meeting.

 

- CHAIRMAN  OF
THE MEETING.  The Chairman of the
Board, if any and if present and acting, shall preside at all meetings.
Otherwise, the Vice-Chairman of the Board, if any and if present and acting, or
the President, if present and acting, or any other director chosen by the
Board, shall preside.

 

5. REMOVAL OF DIRECTORS.  Any or all of the directors may be removed
for cause or without cause in accordance with the provisions of the General
Corporation Law.

 

6. COMMITTEES. 
Whenever its number consists of two or more, the Board of Directors may
designate one or more committees which have such powers and duties as the Board
shall determine. Any such committee, to the extent provided in the resolution
or resolutions of the Board, shall have and may exercise the powers and authority
of the Board of Directors in the management of the business and affairs of the
corporation and may authorize the seal or stamp of the corporation to be
affixed to all papers on which the corporation desires to place a seal or
stamp. Each committee must include at least one director. The Board of
Directors may appoint natural persons who are not directors to serve on
committees.

 

7. WRITTEN ACTION.  Any action required or permitted to be taken
at a meeting of the Board of Directors or of any committee thereof may be taken
without a meeting if, before or after the action, a written consent thereto is
signed by all the members of the Board or of the committee, as the case may be.

 

 

ARTICLE III

 

OFFICERS

 

1. The corporation must have a President, a Secretary,
and a Treasurer, and, if deemed necessary, expedient, or desirable by the Board
of Directors, a Chairman of the Board, a Vice-Chairman of the Board, an
Executive Vice-President, one or more other Vice-Presidents, one or more
Assistant Secretaries, one or more Assistant Treasurers, and such other
officers and agents with such titles as the resolution choosing them shall
designate. Each of any such officers shall be chosen by the Board of Directors
or chosen in the manner determined by the Board of Directors.

 

2. QUALIFICATIONS.  Except as may otherwise be provided in the resolution choosing
him, no officer other than the Chairman of the Board, if any, and the
Vice-Chairman of the Board, if any, need be a director.

 

Any person may hold two or more offices, as the
directors may determine.

 

3. TERM OF OFFICE.  Unless otherwise provided in the resolution choosing him, each
officer shall be chosen for a term which shall continue until the meeting of the Board of Directors following the
next annual meeting of stockholders and until his successor shall have
been chosen and qualified.

 

Any officer may be removed, with or without cause, by
the Board of Directors or in the manner determined by the Board.

 

Any vacancy in any office may be filled by the Board
of Directors or in the manner determined by the Board.

 

4. DUTIES AND
AUTHORITY.  All officers of the
corporation shall have such authority and perform such duties in the management
and operation of the corporation as shall be prescribed in the resolution designating
and choosing such officers and prescribing their authority and duties, and
shall have such additional authority and duties as are incident to their office
except to the extent that such resolutions or instruments may be inconsistent
therewith.

 

 

ARTICLE IV

 

REGISTERED OFFICE

 

The location of the initial registered office of the
corporation in the State of Nevada is the address of the initial resident agent
of the corporation, as set forth in the original Articles of Incorporation.

 

The corporation shall
maintain at said registered office a copy, certified by the Secretary of State
of the State of Nevada, of its Articles of Incorporation, and all amendments
thereto, and a copy, certified by the Secretary of the corporation, of these
Bylaws, and all amendments thereto. The corporation shall also keep at said
registered office a stock ledger or a duplicate stock ledger, revised annually,
containing the names, alphabetically arranged, of all persons who are
stockholders of the corporation, showing their places of residence, if known,
and the number of shares held by them respectively or a statement setting out
the name of the custodian of the stock ledger or duplicate stock ledger, and
the present and complete post office address, including street and number, if
any, where such stock ledger or duplicate stock ledger is kept.

 

ARTICLE V

 

CORPORATE SEAL OR
STAMP

 

The corporate seal or stamp shall be in such form as
the Board of Directors may prescribe.

 

ARTICLE VI

 

FISCAL YEAR

 

The fiscal year of the corporation shall be fixed, and
shall be subject to change, by the Board of Directors.

 

ARTICLE VII

 

CONTROL OVER
BYLAWS

 

The power to amend, alter, and repeal these Bylaws and
to make new Bylaws shall be vested in the Board of Directors subject to the
Bylaws, if any, adopted by the stockholders.

 

 

CERTIFICATE OF
SECRETARY

 

KNOW ALL PERSONS BY THESE PRESENTS:

 

The undersigned,
Secretary of MEDISYN TECHNOLOGICAL CORPORATION, a Nevada corporation (the
“Corporation”), does hereby certify that the above and foregoing Bylaws were
duly adopted as the Bylaws of the Corporation at a meeting of the Board of
Directors duly held on December 21, 1992.

 

IN
WITNESS WHEREOF, the undersigned has subscribed his name and
affixed the seal of the Corporation on the date set forth below.

 

	
  December 21, 1992

  	
   

  	
  /s/ Michael D. Farney

  	
   

  
	
  Date

  	
   

  	
   Michael D. Farney, Secretary

  

 

 

Annex 3

 

 

ACTION BY BOARD OF DIRECTORS

 

OF

 

MEDISYN TECHNOLOGIES CORPORATION

 

BY UNANIMOUS WRITTEN CONSENT

 

The undersigned, being all of the Directors of MEDISYN
TECHNOLOGIES CORPORATION, a Nevada corporation (the “Company”), and
acting pursuant to Section 78.315 of the Nevada Revised Statutes, hereby
consent in writing to the adoption of the following actions in lieu of a
special meeting of the Board of Directors:

 

GUARANTEE AND COLLATERAL AGREEMENT

 

WHEREAS, INAMED Corporation (“Inamed”) intends
to enter into that certain Credit Agreement dated as of February 1, 2000 (the “Credit
Agreement”), by and among Inamed, the Lenders, Bear Stearns Corporate
Lending Inc., as Syndication Agent (in such capacity, the “Syndication Agent”),
Bear, Stearns & Co. Inc., as sole lead arranger and sole book manager (the
“Arranger”) and the Administrative Agent;

 

WHEREAS, pursuant to the terms of the Credit
Agreement, the Company, as a subsidiary of Inamed, is required to guaranty all
of Inamed’s obligations under the Credit Agreement (the “Obligations”,
as defined under the Credit Agreement), by entering into that certain Guarantee
and Collateral Agreement (the “Guarantee and Collateral Agreement”)
dated of even date with the Credit Agreement, a copy of which has been
presented to the Board;

 

WHEREAS, pursuant to the terms and conditions of the
Credit Agreement, the Company, as a subsidiary of Inamed, is required to secure
payment and performance of the Obligations, also by entering into that same
Guarantee and Collateral Agreement (as defined above), whereby the Company
would grant to Administrative Agent, for the benefit of the Administrative
Agent and the Lenders, a perfected, first priority Lien on all of its right,
title and interest in all of its personal property, including but not limited
to all capital stock of its domestic

 

 

subsidiariery 65% of the capital stock of its foreign subsidiaries,
accounts, fixtures, contract rights, intellectual property, licences, material
property, etc.

 

WHEREAS, the Board of Directors of the Company has
determined that in order to give effect to the Credit Agreement, it is
advisable and in the best interests of the Company that the Company enter into
the Guarantee and Collateral Agreement and each of the transactions
contemplated thereby:

 

NOW, THEREFORE, BE IT
RESOLVED, that the Board of Directors deems it advisable and in the best
interests of the Company to enter into the Guarantee and Collateral Agreement
and any other documents contemplated thereby and such documents hereby are
authorized and approved, with such changes thereto as the Chairman, the
President, any Vice President or the Secretary of the Company (the “proper
officers”) may approve, such approval to be conclusively evidenced by such
officer’s or officers’ execution and delivery thereof;

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized,
empowered and directed, in the name and on behalf of the Company, to enter into
the Guarantee and Collateral Agreement, substantially on the terms and
conditions as presented and described to the Board, with such changes thereto
as the proper officers may approve, such approval to be conclusively evidenced
by such officer’s or officers’ execution and delivery thereof; and

 

RESOLVED FURTHER, that
the proper officers of the Company be, and each of them hereby is, authorized
and directed to enter into such other agreements, documents, promissory notes,
and instruments with respect to any of the foregoing, in such form and on such
terms and conditions as may be agreed to by the proper officers of the Company,
Administrative Agent and the Lenders, and to take such other actions with
respect to the foregoing as may be required by Administrative Agent and the
Lenders; and that the proper officers of the Company be, and each of them
hereby is, authorized, directed and empowered, in the name and on behalf of the
Company, to execute and deliver such other agreements, documents, promissory
notes, deeds of trust, mortgages and other instruments and to perform all other
acts as such officers shall approve in connection with any of the above, the
execution of such agreements, documents, promissory notes and other instruments
or the taking of any such actions to be conclusive evidence of such approval.

 

2

 

GENERAL AUTHORIZATIONS

 

RESOLVED, that the
officers of the Company be, and each of them hereby is, authorized, empowered
and directed, in the name and on behalf of the Company, to do or cause to be
done all such other acts or things, and to execute and deliver, or cause to be
executed and delivered, all such other documents, instruments, agreements,
notes, undertakings, guarantees and certificates of any kind and nature
whatsoever, as such officer or officers may deem necessary or appropriate to
effectuate or carry out the purposes and intent of the foregoing resolutions;
all such other actions to be performed in such manner, and all such other
documents, instruments, agreements, notes, undertakings, guarantees and
certificates to be executed and delivered in such form, as the officer or
officers performing or executing the same shall approve, such officer’s or officers’
approval thereof to be conclusively evidenced by the performance of any such
other action or the execution and delivery of any such other documents,
instruments, agreements, notes, undertakings and certificates; and

 

RESOLVED FURTHER, that
all acts and things previously done by any of the officers of the Company, on
or prior to the date hereof, in the name and on behalf of the Company, in
connection with the transactions contemplated by the foregoing resolutions, are
in all respects ratified, approved, confirmed and adopted as the acts and deeds
by and on behalf of the Company.

 

* * *

 

3

 

This Unanimous Written Consent may be executed in one
or more counterparts, each of which shall be considered as an original. The
Secretary of the Company shall file this Unanimous Written Consent in the
minute book of the Company and it shall become part of the records of the
Company.

 

	
  Dated: 
  February 1, 2000

  	
   

  
	
   

  	
  /s/ Richard G. Babbitt

  	
   

  
	
   

  	
   Richard G. Babbitt

  
	
   

  	
   

  
	
   

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
   Ilan K. Reich

  

 

4

 

Annex 4

 

 

[SECRETARY OF
STATE OF NEVADA SEAL]

 

CERTIFICATE
OF EXISTENCE

(INCLUDING AMENDMENTS)

 

I, DEAN HELLER, the duly elected and qualified Nevada Secretary of State,
do hereby certify that I am, by the laws of said State, the custodian of the
records relating to filings by corporations, limited-liability companies,
limited partnerships, limited-liability partnerships and business trusts
pursuant to Title 7 of the Nevada Revised Statutes which are either presently
in a status of good standing or were in good standing for a time period
subsequent of 1976 and am the proper officer to execute this certificate.

 

I FURTHER CERTIFY, that the following is a list of all organizational
documents on file in this office for

 

MEDISYN TECHNOLOGIES CORPORATION

 

Articles of Incorporation for MEDISYN TECHNOLOGICAL CORPORATION filed
December 1, 1992.

 

Certificate of Amendment to Articles of Incorporation changing name to
MEDISYN TECHNOLOGIES CORPORATION filed May 12, 1993.

 

 

 

I further certify that the records of the Nevada Secretary of State, at
the date of this certificate, evidence, MEDISYN
TECHNOLOGIES CORPORATION, as a corporation duly organized under the
laws of Nevada and existing under and by virtue of the laws of the State of
Nevada since December 1, 1992, and is in good standing in this state.

 

	
   

  	
  IN WITNESS WHEREOF, I have hereunto set my hand and
  affixed the Great Seal of State, at my office, in Carson City, Nevada, on
  January 31, 2000.

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Dean Heller

  	
   

  
	
   

  	
   

  	
  Secretary of State

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By

  	
  /s/ [ILLEGIBLE]

  	
   

  	 

	
   

  	
   

  	
  Certification Clerk

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  
						

 

 

[ILLEGIBLE]

 

 

[SKADDEN, ARPS,
SLATE, MEGAHER & FLOW LLP LETTERHEAD]

 

February 1, 2000

 

First Union National Bank,

as Administrative Agent

201 South College Street, CP-23

Charlotte, North Carolina 28288-0680

and each of the Lenders

 

Re: INAMED Corporation
$107,500,000 Credit Agreement

 

Ladies and Gentlemen:

 

We have acted as special counsel to INAMED
Corporation, a Delaware corporation (the “Borrower”) and the
corporations listed on Annex I hereto (the “Subsidiary Guarantors”) in
connection with the preparation, execution and delivery of the Credit
Agreement, dated as of February 1, 2000 (the “Loan Agreement”), among
the Borrower, the lenders listed on the signature pages thereof as the Lenders,
Bear Steams & Co. Inc., as sole lead arranger and sole book manager (the “Lead
Arranger”), GMAC Commercial Credit LLC, as documentation agent (the “Documentation
Agent”), Bear Stearns Corporate Lending Inc., as syndication agent (the “Syndication
Agent”) and First Union National Bank, as administrative agent for the
Lenders (the “Administrative Agent”) and certain other agreements,
instruments and documents related to the Loan Agreement. This opinion is being
delivered pursuant to Section 5.1(h)(i) of the Loan Agreement.

 

In rendering the opinions set forth herein, we have
examined and relied on originals or copies of the following:

 

(a) the Loan Agreement;

 

(b) the Guarantee and Collateral Agreement dated as of
February 1, 2000, executed by the Borrower and each Subsidiary Guarantor (the “Guarantee
and Collateral Agreement”);

 

(c) unfiled, but signed copies of financing statements
naming “INAMED Corporation” as debtor and “First Union National Bank, as
Administrative Agent” as secured party, which we understand will be filed
within

 

 

ten (10) days of the transfer of the security interest in the Offices
of the Secretary of State of the State of California, the Secretary of State of
the State of New York and N.Y. County/City Register, New York (such filing
offices, the “Borrower Filing Offices” and such financing statements,
the “Borrower Financing Statements”);

 

(d) unfiled, but signed copies of financing
statements, each to be filed against a separate Subsidiary Guarantor, naming
such Subsidiary Guarantor as debtor and “First Union National Bank, as
Administrative Agent” as secured party, which we understand will be filed
within ten (10) days of the transfer of the security interest in the Office of
the Secretary of State of the State of California (such filing office, the “Guarantor
Filing Office” and such financing statements, the “Guarantor Financing
Statements”);

 

(e) the certificate of Ilan K. Reich, President of the
Borrower and President or Vice President of each of the Subsidiary Guarantors,
dated February 1, 2000, a copy of which is attached as Exhibit A hereto (the “Officer’s
Certificate”);

 

(f) certified copies of the Certificate or Articles of
Incorporation and By-Laws, each as amended to date, of the Borrower and each of
the Subsidiary Guarantors which is a California corporation (a “California
Guarantor”) or a Delaware corporation (a “Delaware Guarantor”);

 

(g) (i) certified copies of certain resolutions of the
Board of Directors of the Borrower and each of the Delaware Guarantors and
California Guarantors adopted on February 1, 2000;

 

(h) (i) a certificate dated February 1, 2000 from the
Office of the Secretary of State of the State of Delaware as to the good
standing of the Borrower and each Delaware Guarantor in such jurisdiction; and
(ii) certificates dated February 1, 2000 from the Office of the Secretary of
State of the State of California as to authorization to exercise corporate
powers, rights and privileges and the good legal standing of each of the
California Guarantors; and

 

2

 

(i) such other documents as we have deemed necessary
or appropriate as a basis for the opinions set forth below.

 

The documents described in clauses (a) and (b) above
shall hereinafter be referred to collectively as the “Transaction
Agreements.”

 

In our examination we have assumed the genuineness of
all signatures (other than those of the Borrower and the Subsidiary Guarantors)
including endorsements, the legal capacity of natural persons, the authenticity
of all documents submitted to us as originals, the conformity to original
documents of all documents submitted to us as certified or photostatic copies,
and the authenticity of the originals of such copies. As to any facts material
to this opinion which we did not independently establish or verify, we have
relied upon statements and representations of the Borrower and its officers and
other representatives and of public officials, including the facts set forth in
the Officer’s Certificates described above.

 

We express no opinion as to the laws of any
jurisdiction other than (i) the Applicable Laws, (ii) the General Corporation
Law of the State of Delaware, (iii) the California Corporations Code and (iv)
the Uniform Commercial Code of the State of New York and the State of
California as in effect on the date hereof.

 

Capitalized terms used herein and not otherwise
defined herein shall have the same meanings ascribed thereto in the Loan
Agreement. “Applicable Contracts” mean those agreements or instruments
set forth on Schedule I to the Officer’s Certificate. “Applicable Laws”
means those laws, rules and regulations of the State of New York and the United
States of America (including, without limitation, Regulations U and X of the
Federal Reserve Board) which, in our experience, are normally applicable to
transactions of the type contemplated by the Transaction Agreements, but
without our having made any special investigation as to the applicability of
any specific law, rule or regulation, and which are not otherwise the subject
of a specific opinion herein referring expressly to a particular law or laws. “Governmental
Approval” means any consent, approval, license, authorization or validation
of, or filing, recording or registration with, any Governmental Authority

 

3

 

pursuant to the Applicable Laws. “Governmental Authority” means
any United States or New York governmental, administrative or regulatory
authority or agency. “Applicable Orders” means those orders or decrees
of Governmental Authorities identified on Schedule II to the Officer’s
Certificate. Unless otherwise indicated, references to the “UCC” shall
mean the Uniform Commercial Code as in effect on the date hereof in the State
of New York and with respect to our opinions regarding the perfection and the
effect of perfection or non–perfection of the security interest granted
by the Borrower and each Guarantor contained in paragraphs 16 and 18, the
Uniform Commercial Code as in effect on the date hereof in the States of New
York and California. References to “Applicable States” shall mean the
States of New York and California. For purposes of this opinion letter, the
terms “Borrower Obligations”, “Guarantor Obligations” and “Obligations” shall
mean such term as defined in the Guarantee and Collateral Agreement; provided,
such definitions shall not include any obligations and liabilities of the
Borrower or any Guarantor to any Affiliate (as defined in the Credit Agreement)
of a Lender, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under any
Lender Hedge Agreement or any other document made, delivered or given in
connection with any Lender Hedge Agreement.

 

Based upon the foregoing and subject to the
limitations, qualifications, exceptions and assumptions set forth herein, we
are of the opinion that:

 

1.              The Borrower and each Delaware Guarantor is validly
existing and in good standing under the laws of the State of Delaware. Each of
the California Guarantors is authorized to exercise all its corporate powers,
rights and privileges and is in good legal standing under the laws of the State
of California.

 

2.              The Borrower and each Delaware Guarantor has the
corporate power and corporate authority under the laws of the State of Delaware
to (i) conduct its business as described in the Borrower’s Form 10–K
filed on March 29, 1999 and (ii) execute, deliver and perform all of its
obligations under the Transaction Agreements to which it is a party. The
execution and delivery of the Transaction

 

4

 

Agreements to which the Borrower and each Delaware Guarantor is a party
and the consummation by the Borrower and each Delaware Guarantor of the
transactions contemplated thereby have been duly authorized by all requisite
corporate action on the part of the Borrower and each Delaware Guarantor under
the laws of the State of Delaware. The Transaction Agreements to which the
Borrower and each Delaware Guarantor is a party have been duly executed and
delivered by the Borrower and each Delaware Guarantor.

 

3.              Each of the California Guarantors has the corporate
power and corporate authority under the laws of the State of California to (i)
conduct its business as described in the Borrower’s Form 10–K filed on
March 29, 1999 and (ii) execute, deliver and perform all of its obligations
under the Guarantee and Collateral Agreement. The execution and delivery of the
Guarantee and Collateral Agreement and the consummation by each of the
California Guarantors of the transactions contemplated thereby have been duly
authorized by all requisite corporate action on the part of each of the
California Guarantors, as applicable, under the laws of the State of
California. The Guarantee and Collateral Agreement has been duly executed and
delivered by each of the California Guarantors, as applicable, under the laws
of the State of California.

 

4.              Each of the Transaction Agreements constitutes the
valid and binding obligation under the laws of the State of New York of each
Borrower and Subsidiary Guarantor which is a party thereto, enforceable against
such Borrower or Subsidiary Guarantor, as applicable, in accordance with its
terms.

 

5.              The execution and delivery by the Borrower, the
Delaware Guarantors and the California Guarantors of the Transaction Agreements
(to the extent each is a party thereto) and the performance by the Borrower,
the Delaware Guarantors and the California Guarantors of their obligations
under the Transaction Agreements (to the extent each is a party thereto), each
in accordance with its terms, do not conflict with the Certificate or Articles
of Incorporation, as applicable, or By–Laws of the Borrower, of any of the
Delaware Guarantors or any of the California Guarantors. The execution and
delivery by the Borrower and the Subsidiary

 

5

 

Guarantors of the Transaction Agreements (to the extent each is a party
thereto) and the performance by the Borrower and the Subsidiary Guarantors of
their obligations under the Transaction Agreements (to the extent each is a
party thereto), each in accordance with its terms, do not, (i) constitute a
violation of or a default under any Applicable Contracts or (ii) cause the
creation of any security interest or lien (other than the liens granted under
or created by the Transaction Agreements) upon any of the property of the
Borrower or the Subsidiary Guarantors pursuant to any Applicable Contracts.

 

6.              Neither the execution, delivery or performance by the
Borrower or the Subsidiary Guarantors of the Transaction Agreements (to the
extent each is a party thereto) nor the compliance by the Borrower or the
Subsidiary Guarantors with the terms and provisions thereof will contravene any
Applicable Laws.

 

7.              No Governmental Approval, which has not been obtained
or taken and is not in full force and effect, is required to authorize or is
required in connection with the execution, delivery or performance (including,
without limitation, the grant of the security interests pursuant to the
Guarantee and Collateral Agreement) of the Transaction Agreements by the
Borrower or the Subsidiary Guarantors.

 

8.              Neither the execution, delivery or performance by the
Borrower and the Subsidiary Guarantors of their obligations under the
Transaction Agreements (to the extent each is a party thereto) nor compliance
by the Borrower and the Subsidiary Guarantors with the terms thereof will
contravene any Applicable Order.

 

9.              The Borrower is not, after giving effect to the
transactions contemplated by the Transaction Agreements and the application of
the net proceeds from the making of the Loan under the Loan Agreement (i) an
“investment company” required to register as such under the Investment Company
Act of 1940, as amended, or (ii) a “holding company,” or a “subsidiary company”
of a “holding

 

6

 

company,” or  an “affiliate” of
a “holding company” or of a “subsidiary company” or of a “holding company,”
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

 

10.            The provisions of the Guarantee and
Collateral Agreement are effective to create, in favor of the Administrative
Agent for the benefit of itself and the Lenders to secure all of the
Obligations (as defined in the Guarantee and Collateral Agreement), a valid
security interest (i) in the Borrower’s rights in the promissory note
identified on Schedule 2 to the Guarantee and Collateral Agreement (the “Pledged
Note”) and (ii) in the Borrower’s rights in the certificates identified on
Schedule 2 to the Guarantee and Collateral Agreement (the “Borrower Pledged
Securities” and, together with the Pledged Note, the “Borrower Pledged
Collateral”).

 

11.            Upon delivery of the Borrower
Pledged Securities to the Administrative Agent in the State of New York, the
security interest of the Administrative Agent for the benefit of itself and the
Lenders in the Borrower Pledged Securities will be perfected.

 

12             Upon delivery of the Pledged Note to the Administrative
Agent in the State of New York, the security interest of the Administrative
Agent for the benefit of itself and the Lenders in the Pledged Note will be
perfected.

 

13.            The provisions of the Guarantee and
Collateral Agreement are effective to create, in favor of the Administrative
Agent for the benefit of itself and the Lenders to secure all of the
Obligations (as defined in the Guarantee and Collateral Agreement), a valid
security interest in each Subsidiary Guarantor’s rights in the certificates
identified on Schedule 2 to the Guarantee and Collateral Agreement (the “Guarantor
Pledged Securities” and, together with the Borrower Pledged Securities, the
“Pledged Securities” and the Guarantor Pledged Securities, together with
the Borrower Pledged Collateral, the “Pledged Collateral”).

 

14.            Upon delivery of the Guarantor
Pledged Securities to the Administrative Agent in the State of New York, the
security interest of the

 

7

 

Administrative Agent for the benefit of itself and the Lenders in the
Guarantor Pledged Securities will be perfected.

 

15.            The provisions of the Guarantee and
Collateral Agreement are effective to create, in favor of the Administrative
Agent for the benefit of itself and the Lenders to secure all of the
Obligations (as defined in the Guarantee and Collateral Agreement), a valid
security interest in the Borrower’s rights in that portion of the Collateral
described therein which is subject to Article 9 of the UCC (the “Borrower
UCC Collateral”).

 

16.            The Borrower Financing Statements
are in appropriate form for filing in each of the Borrower Filing Offices. With
respect to that portion of the Borrower UCC Collateral as to which the filing of
a financing statement is a permissible method of perfection (the “Borrower
UCC Filing Collateral”), the security interest in favor of the
Administrative Agent for the benefit of itself and the Lenders in that portion
of the Borrower UCC Filing Collateral which is described in the Borrower
Financing Statements will be perfected upon filing of the Borrower Financing
Statements in the respective Borrower Filing Offices.

 

17.            The provisions of the Guarantee and
Collateral Agreement are effective to create, in favor of the Administrative
Agent for the benefit of itself and the Lenders to secure all of the
Obligations (as defined in the Guarantee and Collateral Agreement), a valid
security interest in each Subsidiary Guarantor’s rights in that portion of the Collateral
described therein which is subject to Article 9 of the UCC (the “Guarantor
UCC Collateral” and, together with the Borrower UCC Collateral, the “Collateral”).

 

18.            The Guarantor Financing Statements
are in appropriate form for filing in the Guarantor Filing Office. With respect
to that portion of the Guarantor UCC Collateral as to which the filing of a
financing statement is a permissible method of perfection (the “Guarantor
UCC Filing Collateral”), the security interest in favor of the Administrative
Agent for the benefit of itself and the Lenders in that portion of the
Guarantor UCC Filing Collateral which is described in

 

8

 

the Guarantor Financing Statements will be perfected upon filing of the
Guarantor Financing Statements in the Guarantor Filing Office.

 

Our opinions are subject
to the following assumptions and qualifications:

 

(a) enforcement may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally and by general
principles of equity (regardless of whether enforcement is sought in equity or
at law);

 

(b) we express no opinion
as to the effect on the opinion expressed herein of (i) the compliance or non–compliance
of the Administrative Agent or any party (other than the Borrower and the
Subsidiary Guarantors) to the Transaction Agreements with any state, federal or
other laws or regulations applicable to them or (ii) the legal or regulatory
status or the nature of the business of the Administrative Agent or the
Lenders;

 

(c) in rendering our
opinions expressed herein, we express no opinion as to the applicability or
effect of any fraudulent transfer or similar law on the Transaction Agreements
or any transactions contemplated thereby;

 

(d) we express no opinion
as to the enforceability of any rights to contribution or indemnification
provided for in the Transaction Agreements which are violative of the public
policy underlying any law, rule or regulation (including any federal or state
securities law, rule or regulation);

 

(e) enforcement of the
Guarantee and Collateral Agreement may be subject to the terms of instruments,
leases, contracts or other agreements between the Borrower, any of the
Subsidiary Guarantors and the other parties to such agreements, the rights of
such other parties and any claims or defenses of such other parties

 

9

 

against the Borrower or the Subsidiary Guarantors arising under or
outside such instruments, leases or contracts or other agreements.

 

(f) certain of the
remedial provisions, including waivers, with respect to the exercise of
remedies against the collateral contained in the Guarantee and Collateral
Agreement may be unenforceable in whole or in part, but the inclusion of such
provisions does not affect the validity of the Guarantee and Collateral
Agreement, taken as a whole, and the Guarantee and Collateral Agreement, taken
as a whole, together with applicable law, contains adequate provisions for the
practical realization of the benefits of the security interest created thereby;

 

(g) we express no opinion
with respect to any provision of the Loan Agreement to the extent it authorizes
or permits any party to the Loan Agreement or any purchaser of a participation
interest from any such party to set–off or apply any deposit, property or
indebtedness with respect to any participation interest;

 

(h) we express no opinion
as to any waiver of rights to assert the applicability of forum  non-conveniens
doctrine or any other such doctrine;

 

In rendering the
foregoing opinions, we have also assumed, with your consent, that:

 

(a) each of the
Subsidiary Guarantors which is a Nevada corporation (the “Nevada Guarantors”)
is validly existing and in good standing under the laws of the State of Nevada;

 

(b) each of the parties
to the Transaction Agreements (other than the Borrower, the Delaware Guarantors
and the California Guarantors) had or will have the power, corporate or other,
to enter into and perform all obligations thereunder and we have also assumed
the due authorization by all requisite action, corporate or other, and
execution and delivery by such parties of such documents and, with respect to
all such parties other than the Borrower and the Subsidiary Guarantors, the
validity and binding effect thereof;

 

10

 

(c) the execution,
delivery and performance by each of the Nevada Guarantors of any of their
respective obligations under the Transaction Documents does not and will not
conflict with, contravene, violate or constitute a default under the Articles
of Incorporation or Bylaws of such Nevada Guarantors;

 

(d) the execution,
delivery and performance of the obligations of the Borrower and each Subsidiary
Guarantor under the Transaction Agreements does not and will not conflict with,
contravene, violate or constitute a default under (i) any lease, indenture,
instrument or other agreement to which the Borrower or any of the Subsidiary
Guarantors is subject (other than the Applicable Contracts as to which we
express our opinion in paragraph 5 herein), (ii) any rule, law or regulation to
which the Borrower or any of the Subsidiary Guarantors is subject (other than
Applicable Laws as to which we express our opinion in paragraph 6 herein) or
(iii) any judicial or administrative order or decree of any governmental
authority (other than Applicable Orders as to which we express our opinion in
paragraph 8 herein); and

 

(e) no authorization,
consent or other approval of, notice to or filing with any court, governmental
authority or regulatory body (other than Governmental Approvals as to which we
express our opinion in paragraph 7 herein) is required to authorize or is
required in connection with the execution, delivery or performance by the
Borrower or any Subsidiary Guarantor of the Transaction Agreements to which it
is a party or the transactions contemplated thereby.

 

We understand that you
are separately receiving an opinion, with respect to certain of the foregoing
assumptions and certain other matters from David Bamberger, Esq., General
Counsel of the Borrower and the Subsidiary Guarantors, and we are advised that
such opinion contains qualifications. Our opinions herein stated are based on
the assumptions specified above and we express no opinion as to the effect on
the opinions herein stated of the qualifications contained in such other
opinion.

 

11

 

Our opinions with respect
to the security interest of the Administrative Agent for the benefit of itself
and the Lenders in the Collateral and the Pledged Collateral are subject to the
following qualifications:

 

(i) We have assumed that
the Borrower and each Subsidiary Guarantor, as applicable, owns, or with
respect to after–acquired property will own, the Collateral and the
Pledged Collateral, and we express no opinion as to the nature or extent of the
Borrower’s or any Guarantor’s rights in, or title to, any of the Collateral or
the Pledged Collateral and we note that with respect to any after-acquired
property, the security interest will not attach until the Borrower or
applicable Subsidiary Guarantor acquires ownership thereof.

 

(ii) In the case of
chattel paper, accounts or general intangibles, we call to your attention that
the security interest of the Administrative Agent for the benefit of itself and
the Lenders may be subject to the rights of account debtors, claims and
defenses of account debtors and the terms of agreements with account debtors.

 

(iii) Our opinions with
respect to the security interest of the Administrative Agent for the benefit of
itself and the Lenders are limited to Article 9 of the UCC, and such opinions
do not address (i) laws of jurisdictions other than the Applicable States, and
of the Applicable States except for Article 9 of the UCC, (ii) collateral of a
type not subject to Article 9 of the UCC, and (iii) what law governs perfection
or priority of the security interests granted in the collateral covered by this
opinion.

 

(iv) We express no opinion
with respect to proceeds of the Collateral.

 

(v) We express no opinion
whether the description “other property not otherwise described above” used in
Section 3 of the Guarantee and Collateral Agreement is an adequate description
for purposes of Section 9–203 or Section 9–401 of the UCC.

 

12

 

(vi) We express no
opinion with respect to the priority of the security interest of the
Administrative Agent for the benefit of itself and the Lenders in any of the
Collateral or the Pledged Collateral.

 

(vii) We call to your
attention that the issuers of certain of the Pledged Securities are organized
under the laws of Ireland, Hong Kong, the United Kingdom, Mexico, Japan and the
Netherlands, and we express no opinion as to the effect of the laws of Ireland,
Hong Kong, the United Kingdom, Mexico, Japan and the Netherlands on the
opinions herein stated. Our opinion with respect to the security interest of
the Administrative Agent for the benefit of itself and the Lenders in the
Pledged Securities is limited to the UCC and the laws of the jurisdiction of
the issuer of the securities may affect, among other things, whether the
security is characterized as a certificated security, the exercise of remedies
with respect to such security and the exercise of voting or other rights with
respect to such security.

 

(viii) We express no
opinion with respect to proceeds of, or distributions on the Pledged
Collateral.

 

(ix) We have assumed that
the Pledged Note is represented by only one original document.

 

(x) We express no opinion
with respect to the security interest of the Administrative Agent for the
benefit of itself and the Lenders in any of the following types of property:
(i) any option or similar obligation issued by a clearing corporation to its
participants; (ii) any commodity contract; (iii) an ownership interest
evidenced by certificates of stock or other instruments and a leasehold
evidenced by a proprietary lease, or either of the foregoing, from a
corporation or partnership formed for the purpose of cooperative ownership of
real estate; (iv) any interest in a trust, partnership or limited liability
company or (v) property of a type constituting financial assets (or a security
entitlement with respect thereto) not subject to Article 9 of the UCC.

 

13

 

(xi) In the case of
goods, we express no opinion regarding the security interest of the
Administrative Agent for the benefit of itself and the Lenders in any goods
which are (i) an accession to, or commingled or processed with other goods to
the extent that the security interest of the Administrative Agent for the
benefit of itself and the Lenders is limited by Section 9–314 or 9–315
of the UCC or (ii) subject to a certificate of title or a document of title.

 

(xii) We express no
opinion regarding the security interest of the Administrative Agent for the
benefit of itself and the Lenders in any items which are subject to a statute,
regulation or treaty of the United States of America which provides for a
national or international registration or a national or international
certificate of title for the perfection of a security interest therein or which
specifies a place of filing different from the place specified in the UCC for
filing to perfect such security interest.

 

(xiii) We express no
opinion regarding the security interest of the Administrative Agent for the
benefit of itself and the Lenders in any of the Collateral consisting of claims
against any government or governmental agency (including without limitation the
United States of America or any state thereof or any agency or department of
the United States of America or any state thereof).

 

(xiv) In the case of any
instrument, chattel paper, account or general intangible which is itself
secured by other property, we express no opinion with respect to the rights of
the Administrative Agent for the benefit of itself and the Lenders's in and to
such underlying property.

 

(xv) We have assumed that
the Borrower’s only place of business in New York is and will be located at
1120 Avenue of the Americas, 4th Floor, New York, New York 10036.

 

(xvi) We express no
opinion with respect to the security interest in any of the Collateral
consisting of goods which are or are to become fixtures, equipment used in
farming operations, or farm products, or accounts or general

 

14

 

intangibles arising from or relating to the sale of farm products by a
farmer, consumer goods, crops growing or to be grown, timber to be cut or
minerals or the like (including oil and gas), accounts subject to subsection 5
of Section 9–103 of the UCC.

 

(xvii) We express no
opinion regarding the security interest of the Administrative Agent for the
benefit of itself and the Lenders in any copyrights, patents, trademarks,
service marks or other intellectual property, the proceeds thereof, money due
or any rights (including accounts or general intangibles) with respect to the
lease, license or use thereof except to the extent Article 9 of the UCC may be
applicable to the foregoing and, without limiting the generality of the
foregoing, we express no opinion as to the effect of any federal laws relating
to copyrights, patents, trademarks, service marks or other intellectual property
on the opinions expressed herein.

 

(xviii) We advise you
that with respect to that portion of the Collateral and the Pledged Collateral
in which the Administrative Agent for the benefit of itself and the Lenders has
been granted a security interest by more than one agreement, a court may limit
the right of the Administrative Agent for the benefit of itself and the Lenders
to choose among the remedies otherwise given to it by such agreements with
respect to the Collateral and the Pledged Collateral.

 

(xix) We call to your
attention that the American Law Institute and the National Conference of
Commissioners on Uniform State Laws have approved a revised version of Article
9, with conforming amendments to Articles 1, 2, 2a, 4, 5, 6, 7 and 8, of the
Uniform Commercial Code (“Revised Article 9”), which substantially
changes the law governing the creation and perfection of security interests.
Revised Article 9 has been enacted in California and is expected to be
introduced in other states in the near future. Revised Article 9 will become
effective on July 1, 2001 in the State of California. The opinions set forth
herein are based solely on the law in effect on the date hereof;

 

15

 

accordingly, we express no opinion as to the effect of Revised Article
9 on the validity, perfection or priority of the security interest.

 

This opinion is being
furnished only to you (and Assignees) in connection with the Loan Agreement and
is solely for your benefit and is not to be used, circulated, quoted, relied
upon or otherwise referred to by any other person or for any other purpose
without our prior written consent.

 

Very truly yours,

 

16

 

Annex 1

 

Guarantors

 

California Corporations

BioEnterics Corporation

CUI CORPORATION

INAMED DEVELOPMENT COMPANY

McGHAN MEDICAL CORPORATION

 

Nevada Corporations

INAMED JAPAN, INC.

BIODERMIS CORPORATION

BIOPLEXUS CORPORATION

FLOWMATRIX CORPORATION

MEDISYN TECHNOLOGIES CORPORATION

 

Delaware Corporations

INAMED International Corp.

Collagen Aesthetics International, Inc.

Collagen Aesthetics, Inc.

 

 

Exhibit A

 

INAMED
Corporation

Inamed
Acquisition Corporation

 

Officer’s Certificate

 

I, Ilan K. Reich, am the President of INAMED
Corporation, a Delaware corporation (the “Borrower”) and the President
or the Vice President of each of the corporations set forth on Annex 1 hereto
(collectively, the “Guarantors”). 
I understand that pursuant to the Loan Agreement, dated as of February
1, 2000 (the “Loan Agreement”), among the Borrower, the lenders named on
the signature pages thereof as Lenders, Bear Stearns & Co. Inc., as sole
lead arranger and sole book manager (the “Lead Arranger”), GMAC
Commercial Credit LLC, as documentation agent (the “Documentation Agent”),
Bear Stearns Corporate Lending Inc., as syndication agent (the “Syndication
Agent”) and First Union National Bank, as administrative agent for the
Lenders (the “Administrative Agent”). 
Skadden, Arps, Slate, Meagher & Flom LLP is rendering an opinion
dated February 1, 2000 (the “Opinion”) to the Administrative Agent.  Capitalized terms used herein but not
otherwise defined shall have the meanings set forth in the Opinion.  I further understand that Skadden, Arps,
Slate, Meagher & Flom LLP is relying on this officer’s certificate and the
statements made herein in rendering such Opinion.

 

With regard to the foregoing, on behalf of the
Borrower and each of the Guarantors, I certify that:

 

1.             Set forth on Schedule I are all of the agreements
and instruments (other than the Transaction Agreements) to which the Borrower
or any Guarantor is a party or by which it or any of its assets are bound and
which are material to the business or financial condition of the Borrower or
any of the Guarantors.

 

2.             Set forth on Schedule II hereto are all of the
orders, judgments and decrees of any governmental authority which are
specifically applicable to the Borrower or any Guarantor.

 

3.             Set forth on Schedule III hereto are all
consents, approvals, licenses, authorizations or validations of, or filings,
recordings or registrations with any Governmental Authority required in
connection with the execution, delivery or performance of the Transaction
Agreements.

 

 

4.             Less than 25 percent of the assets of the Borrower on a consolidated
basis and on an unconsolidated basis consist of margin stock (as such term is
defined in Regulation U of the Board of Governors of the Federal Reserve
System).

 

5.             The Borrower and each of the Guarantors (a) is primarily
engaged, directly or through a wholly-owned subsidiary or subsidiaries, in a
business or businesses other than that of investing, reinvesting, owning,
holding or trading in securities, (b) is not engaged and does not propose to
engage in the business of issuing face-amount certificates of the installment
type, and has not been engaged in such business and does not have any such
certificate outstanding, and (c) is not engaged and does not propose to engage
in the business of investing, reinvesting, owning, holding or trading in securities,
and does not own or propose to acquire investment securities (as defined in
Section 3(a) of the Investment Company Act of 1940, as amended) having a value
exceeding 40 percent of the value of the Borrower’s total assets (exclusive of
government securities and cash items) on an unconsolidated basis.

 

6.             Neither the Borrower nor any of the Guarantors directly
or indirectly owns or operates facilities used for the generation, transmission
or distribution of electric energy for sale or facilities used for the
distribution at retail of natural or manufactured gas for heat, light or power
and neither the Borrower nor any of the Guarantors owns any interest in any
company which owns or operates such facilities.

 

7.             Neither the Borrower nor any of the Guarantors is a
person providing railroad transportation for compensation (a “rail carrier”) or
a person controlled by or affiliated with a rail carrier or a person providing
sleeping car transportation for compensation (a “sleeping car carrier”) or a
corporation organized to provide transportation by rail carrier or sleeping car
carrier.

 

8.             Neither the Borrower nor any of the Guarantors, directly
or indirectly, or through one or more intermediary companies, owns, controls or
holds with power to vote (a) 10% or more of the outstanding securities, such as
notes, drafts, stock, treasury stock, bonds, debentures, certificates of
interest or participation in any profit-sharing agreements or in oil, gas,
other mineral royalties or  leases,
collateral-trust certificates, preorganization certificates or subscriptions,
transferable shares, investment contracts, voting-trust certificates,
certificates of deposit for a security, receiver’s or trustee's certificates or
instruments commonly known as a “security” (including certificates of interest
or participation in, temporary or interim certificates for, receipt for,
guaranty of, assumption of liability on or warrants or right to subscribe to or
purchase any of the foregoing) presently entitling it to vote in the

 

 

2

 

direction or management of, or any such instrument issued under or
pursuant to any trust, agreement or arrangement whereby a trustee or trustees
or agent or agents for the owner or holder of such instrument is presently
entitled to vote in the direction or management of, any corporation,
partnership, association, joint-stock company, joint venture or trust that owns
or operates any electric utility facilities or gas utility facilities or (b)
any other interest, directly or indirectly, or through one or more intermediary
entities, in (i) any corporation, partnership association, joint-stock compay,
joint venture or trust that owns or operates any electric utility facilities or
gas utility facilities or (ii) any of the foregoing types of entities which
have received notice of the sort described in Paragraph 9 below.

 

9.             Neither the Borrower nor any of the Guarantors have
received notice that the Securities and Exchange Commission has determined, or
may determine, that the Borrower or any Guarantor exercises a controllling
influence over the management or direction of the policies of a gas utility
company or any electric utility company as to make it subject to the
obligations, duties and liabilities imposed upon holding companies by the
Public Utility Holding Company Act of 1935, as amended.

 

10.           The Borrower and each of the
California Guarantors conduct only the businesses described in the Borrower’s
Form 10-K for the fiscal year ended December 31, 1999.

 

IN WITNESS WHEREOF I have executed this certificate
this 31st day of January, 2000.

 

	
   

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
  Name: 

  	
  Ilan K. Reich

  
	
   

  	
  Title: 

  	
  President or Vice President, as

  
	
   

  	
   

  	
  appropriate

  
				

 

 

3

 

Schedule I

 

Material Agreements

 

1.                                       Heads
of Agreement for Plastic Surgery and Cosmetic Dermatology Tissue Engineered
Products between Advanced Tissue Sciences, Inc. and Inamed Corporation dated as
of May 10, 1999.

 

2.                                       Letter
Agreement Strategic Alliance between NovaMed Inc. and Inamed Corporation dated
as of March 25, 1999.

 

3.                                       Development
and Distribution Agreement between Collagen Corporation and Bard Urological
Division, C.R. Bard Inc., dated Aril 3, 1987, as amended.

 

4.                                       Assignment
and License Agreement between Collagen Corporation and Cohesion Technologies,
Inc., dated January 1, 1998.

 

5.                                       Collagen
Supply Agreement between Collagen Corporation and Cohesion Technologies, Inc.,
dated January 1, 1998.

 

6.                                       Second
Amended and Restated Hide Supply Agreement between Collagen Aesthetics, Inc.
and Ralphs Ranches, Inc. dba Prather Ranch, dated January 1, 1994.

 

7.                                       Manufacturing
and Technical Alliance Term Sheet between Inamed Corporation and NuSil
Corporation, dated November 21, 1998.

 

4

 

Schedule II

 

Orders, Judgments,
Decrees

 

None.

 

 

5

 

Schedule III

 

Governmental Approvals

 

None.

 

 

6

 

February 1, 2000

 

First Union National Bank,

as Administrative Agent

201 South College Street, 17th Floor

Charlotte, North Carolina 28288

 

Each of the Lenders

 

Re: INAMED Corporation $107,500,000 Credit
Agreement

 

Ladies and Gentlemen,

 

I am General Counsel of INAMED Corporation, a Delaware
corporation (the “Borrower”), and have acted as such in connection with
the preparation, execution and delivery of (i) the Credit Agreement, dated as
of February 1, 2000 (the “Credit Agreement”), among the Borrower, the
lenders listed on the signature pages thereof as the Lenders, Bear Stearns
& Co. Inc, as sole lead arranger and sole book manager (the “Lead
Arranger”), GMAC Commercial Credit LLC as documentation agent (the “Documentation
Agent”), Bear Stearns Corporate Lending Inc., as syndication agent (the “Syndication
Agent”) and First Union National Bank, as administrative agent for the
Lenders (the “Administrative Agent”), (ii) the Guarantee and Collateral
Agreement dated as of February 1, 2000, executed by the Borrower and each
Subsidiary Guarantor (the “Guarantee and Collateral Agreement”) and
(iii) certain other agreements, instruments and documents related to the Credit
Agreement.  This opinion is being
delivered pursuant to Section 5.1(h)(ii) of the Credit Agreement.  Capitalized terms used and not otherwise
defined herein shall have the same meanings herein as ascribed thereto in the
Credit Agreement.

 

In my examination I have assumed the genuineness of
all signatures (other than those of the Borrower and the Subsidiary
Guarantors), the legal capacity of natural persons, the authenticity of all
documents submitted to me as originals, the conformity to original documents of
all documents submitted to me as certified or photostatic copies, and the
authenticity of the originals of such copies.

 

 

First Union National Bank, as Administrative Agent

The Lenders

February 1, 2000

 

In rendering the opinions set forth herein, I have
examined and relied on originals or copies of the following:

 

(a) the Credit Agreement;

 

(b) the Guarantee and Collateral Agreement;

 

(c) the Articles of Incorporation of each Subsidiary
Guarantor which is a Nevada corporation (the “Nevada Guarantors”);

 

(d) the By-laws of each Nevada Guarantor; and

 

(e) such other documents as I have deemed necessary or
appropriate as a basis for the opinions set forth below.

 

The documents described in clauses (a) and (b) above
shall hereinafter be referred to collectively as the “Transaction
Agreements.”

 

Based upon the foregoing and subject to the
limitations, qualifications, exceptions and assumptions set forth herein, I am
of the opinion that:

 

1.     Each Nevada Guarantor is validly existing and in good standing
under the laws of the State of Nevada.

 

2.     Each Nevada Guarantor has the corporate power and corporate
authority to conduct its business as currently conducted and to execute,
deliver and perform all of its obligations under the Guarantee and Collateral
Agreement, and the execution and delivery by each Nevada Guarantor of the
Guarantee and Collateral Agreement, and the consummation by each Nevada
Guarantor of the transactoins contemplated thereby have been duly authorized by
all requisite corporate action on the part of each Nevada Guarantor.

 

3.     The Guarantee and Collateral Agreement has been duly executed
and delivered by each of the Nevada Guarantors party thereto.

 

4.     The execution, delivery and performance by each Nevada Guarantor
of its obligations under the Guarantee and Collateral Agreement does not and
will 

 

 

2

 

 

not conflict with, contravene, violate or constitute a default under
the Articles of Incorporation or By-laws of such Nevada Guarantor.

 

5.     To the best of my knowledge, there is no pending or threatened
action, suit or proceeding affecting the Borrower or any Subsidiary before any
court or other governmental authority or any arbitrator which affects the
Transaction Agreements or which may materially adversely affect the operations
or condition, financial or otherwise, of the Borrower or any Subsidiary or the
ability of the Borrower or any Subsidiary to perform its obligations under any
Transaction Agreement to which it is a party.

 

6.     The Borrower is the owner of the Collateral (as defined in the
Guarantee and Collateral Agreement) pledged by it in existence on the date
hereof, free and clear of any Lien except for the security interest created by
the Guarantee and Collateral Agreement and as permitted under the Credit
Agreement.  The Pledged Stock (as
defined in the Guarantee and Collateral Agreement) pledged by the Borrower has
been duly authorized and validly issued and are fully paid and nonassessable.

 

7.     Each Subsidiary Guarantor is the owner of (i) the Collateral (as
defined in the Guarantee and Collateral Agreement) pledged by it in existence
on the date hereof, free and clear of any Lien except for the security interest
created by the Guarantee and Collateral Agreement and as permitted under the
Credit Agreement.  The Pledged Stock (as
defined in the Guarantee and Collateral Agreement) pledged by the Subsidiary
Guarantors have been duly authorized and validly issued and are fully paid and
nonassessable.

 

 

3

 

This opinion is being
furnished only to you (and Assignees) and is solely for your benefit and is not
to be relied upon by any other Person or for any other purpose without my prior
written consent, except that Skadden, Arps, Slate, Meagher & Flom LLP is
entitled to rely on this opinion.  I am
not, and never have been, a member of the Nevada bar.

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ David E. Bamberger

  	
   

  
	
   

  	
   

  	
  David E. Bamberger

  
	
   

  	
   

  	
  General Counsel

  
				

 

 

4

 

Schedule A

 

Guarantors

 

California Corporations

BioEnterics Corporation

CUI CORPORATION

INAMED DEVELOPMENT COMPANY

McGHAN MEDICAL CORPORATION

 

Nevada Corporations

INAMED JAPAN, INC.

BIODERMIS CORPORATION

BIOPLEXUS CORPORATION

FLOWMATRIX CORPORATION

MEDISYN TECHNOLOGIES CORPORATION

 

Delaware Corporations

INAMED International Corp.

Collagen Aesthetics International, Inc.

Collagen Aesthetics, Inc.

 

 

5

 

SOLVENCY CERTIFICATE

 

I, the undersigned, the Chief Financial Officer of
Inamed Corporation, a Delaware corporation (the “Borrower”), do hereby
certify that

 

1.             This
Certificate is furnished pursuant to Section 5.1(k) of that certain Credit
Agreement dated as of February 1, 2000 (the “Credit Agreement”), by and
among the Borrower, the Lenders, Bear Stearns Corporate Lending Inc., as
Syndication Agent (in such capacity, the “Syndication Agent”), Bear,
Stearns & Co. Inc., as sole lead arranger and sole book manager (the “Arranger”),
First Union National Bank, as the Administrative Agent (in such capacity, the “Administrative
Agent”) and GMAC Commercial Credit LLC, as Documentation Agent (in such
capacity, the “Documentation Agent”), providing for $107,500,000 in
loans.  Unless otherwise defined herein,
capitalized terms used in this Certificate shall have the meanings set forth in
the Credit Agreement.

 

2.             For
purposes of this Certificate, the terms below shall have the following
definitions.

 

“Fair Value”

 

The amount at which the assets, in their entirely, of
(i) the Borrower or (ii) the Borrower and its Subsidiaries, taken as a whole,
as the case may be, would change hands between a willing buyer and willing
seller, within a commercially reasonable period of time, each having reasonable
knowledge of the relevant facts, with neither being under any compulsion to
act.

 

“Stated Liabilities”

 

The recorded liabilities (including contingent
liabilities that would be recorded in accordance with generally accepted
accounting principles, consistently applied (“GAAP”)) of (i) the
Borrower or (ii) the Borrower and its Subsidiaries, taken as a whole, as the
case may be, at the date hereof, together with the amount of all indebtedness
to be incurred pursuant to the Credit Agreement.

 

“Contingent Liabilities”

 

The estimated amount, as of the date hereof, of
liability, reasonably likely to result from pending litigation, asserted claims
and assessments, guaranties, uninsured risks and other contingent liabilities
of (i) the Borrower or (ii) the Borrower and its Subsidiaries, taken as a
whole, as the case may be, as of the date hereof after the issuance of all
Loans to be made on the Closing Date (including all fees and expenses related
thereto but exclusive of such Contingent Liabilities to the extent reflected in
Stated Liabilities).

 

1

 

3.             For
purpose of this Certificate, I, or other officers of the Borrower under my
direction and supervision, have performed the following procedures as of and
for the period set forth below.

 

(a)                                  I
have reviewed the financial statements of the Borrower and its Subsidiaries.

 

(b)                                 I
have made inquiries of certain other officials of the Borrower and its Subsidiaries
who have responsibility for financial and accounting matters regarding the
existence and amount of Contingent Liabilities associated with the business of
the Borrower and its Subsidiaries.

 

(c)                                  I
have knowledge of and have reviewed to my satisfaction the Loan Documents, the
documents to be executed in connection therewith, and the respective Schedules
and Exhibits thereto.

 

(d)                                 With
respect to Contingent Liabilities, I

 

1.                                       have
inquired of certain officials of the Borrower and its Subsidiaries who have
responsibility for legal, financial and accounting matters as to the existence
and estimated liability with respect to all Contingent Liabilities known to
them,

 

2.                                       have
confirmed with senior officers of the Borrower and its subsidiaries that (i) all
appropriate items were included in Stated Liabilities or Contingent Liabilities
and (ii) the amounts relating  thereto
were the maximum estimated amount of liability reasonably likely to result
therefrom as of the date hereof, and

 

3.                                       hereby
certify that all material Contingent Liabilities that may reasonably be
expected to arise from any pending litigation, asserted claims and assessments,
guaranties, uninsured risks and other Contingent Liabilities of (i) the
Borrower and (ii) the Borrower and its Subsidiaries, taken as a whole
(exclusive of such Contingent Liabilities to the extent reflected in Stated
Liabilities), have been considered in making the certification set forth in
paragraph 4 below, and with respect to each such Contingent Liability the estimated
amount of liability with respect thereto was used in making such certification.

 

2

 

(e)                                  I
have made inquiries of certain officers of the Borrower and its Subsidiaries
who have responsibility for financial reporting and accounting matters
regarding whether they were aware of any events or conditions that, as of the
date hereof, would cause (x) the Borrower or (y) the Borrower and its
Subsidiaries, taken as a whole, after the issuance of all Loans to be made on
the Closing Date, to have assets with a Fair Value less than the sum of Stated
Liabilities and Congingent Liabilities.

 

4.             Based
on and subject to the foregoing, I hereby certify it is my informed opinion
that as of the date hereof the Fair Value of the assets of each of (A) the
Borrower and (B) the Borrower and its Subsidiaries, taken as a whole, will
exceed its Stated Liabilities and Contingent Liabilities.

 

3

 

IN WITNESS WHEREOF, I have hereto set my hand this 1st
day of February, 2000

 

	
   

  	
  /s/ Michael Doty

  	
   

  
	
   

  	
  Name: 
  Michael Doty

  
	
   

  	
  Title:  Chief
  Financial Officer

  

 

4

 

Execution Copy

 

Ableco Finance LLC

450 Park Avenue, 28th
Floor

New York, New York 10022

 

February 1, 2000

 

INAMED CORPORATION

c/o Mr. Michael Doty

11 Penn Plaza

Suite 946

New York, New York 10001

 

Dear Mr. Doty:

 

Reference is made to the Loan Agreement, dated as of
September 1, 1999 (the “Bridge Loan Agreement”), among Inamed
Corporation, Inamed Acquisition Corporation (each, a “Borrower” and,
collectively, the “Borrowers”), the lenders from time to time parties
thereto (the “Lenders”) and Ableco Finance LLC, as administrative agent
(in such capacity, the “Agent”) for the Lenders.  Unless otherwise defined herein, all
capitalized terms used herein shall have the meanings ascribed to them in the
Bridge Loan Agreement.

 

We understand that you intend to enter into a
$107,500,000 Senior Secured Credit Agreement (the “New Credit Agreement”)
among Inamed Corporation, the several banks and other financial institutions or
entities identified therein, Bear, Stearns & Co. Inc. as sole lead arranger
and sole book manager, Bear Stearns Corporate Lending Inc., as syndication
agent, GMAC Commercial Credit LLC, as documentation agent and First Union
National Bank, as administrative agent. 
Without recourse and without any representation or warranty of any kind,
we hereby confirm that simultaneously with the funding of the loans under the
New Credit Agreement and the receipt of $78,754,427.02 of the proceeds thereof,
such amount to be paid by wire transfer of immediately available funds to the
parties set forth in Schedule A attached hereto and pursuant to the
instructions set forth in such Schedule A, provided that if such
funding and receipt occurs after 11:00 a.m. (New York City time) on the date
hereof, the additional amount  of
$27,510 shall be paid in accordance with Attachment 1 to Schedule A
(such funding and receipt in accordance with such Schedule A and, if
applicable, Attachment 1 thereto, being referred to herein as the “Payoff”
and the date of such funding and receipt being referred to herein as the “Payoff
Date”), all of the Obligations of the Borrowers to the Agent and the
Lenders under the Bridge Loan Agreement and the other Loan Documents shall be
terminated and satisfied in full (subject only to any provision therein
expressly providing for the survival thereof). 
On the Payoff Date, the Agent (on behalf of the Lenders) agrees to
release (but without recourse and without any represenation or warranty of any
kind), and upon consummation of the Payoff, hereby does release, all of its
security interests and liens created as security for the Obligations of the
Borrowers evidenced by the Security Documents. 
Simultaneously with such release, the

 

 

Borrowers (for themselves and each of the Guarantors) hereby release
the Agent and the Lenders from any duty, obligation or claim, directly or
indirectly, arising out of the Loan Documents (except as stated in the fourth
paragraph of this letter agreement).

 

We intend, on the Payoff Date and upon consummation of
the Payoff, to deliver to the administrative agent under the New Credit
Agreement (i) the UCC-3 termination statements listed in Schedule B
hereto, (ii) the stock certificates and promissory notes listed on Schedule
C hereto and (iii) a letter addressed to The Bank of New York, as
Securities Intermediary, substantially in the form attached hereto as Exhibit
I. In this regard, at the sole cost and expense of the Borrowers, we will
send a representative of the Agent to the closing of the New Credit Agreement,
who, following the consummation of the Payoff and payment in full of all legal
fees and expenses invoiced to the Borrowers and payable by the Borrowers under
the Bridge Loan Agreement (but without recourse and without representation or
warranty of any kind) will deliver all such UCC-3 termination statements, stock
certificates and promissory notes and the letter described above at such time.  We further agree that to facilitate the
closing of the New Credit Agreement and the repayment of the loans under the
Bridge Credit Agreement, we will make such UCC-3 termination statements (to the
extent delivered to the Agent prior to such time for signature), stock
certificates and promissory notes available for inspection by counsel to the
administrative agent under the New Credit Agreement at a reasonable time prior
to the Payoff.

 

We further agree, as promptly as practicable following
the Payoff Date, following your request and at your sole cost and expense, to
execute such other Uniform Commercial Code termination statements, termination
of assignments of trade marks and copyrights and other similar discharges and
release documents in the form prepared by you or your counsel (including, if
applicable, in recordable form) as are necessary to release the security
interests and financing statements and all other notices of security interests
and liens previously filed by the Agent or any Lender with respect to the
Obligations of the Borrowers, in each case without recourse and without any
representation or warranty of any kind.

 

Without recourse and without any representation or
warranty of any kind, we confirm that all the terms, provisions, covenants,
respresentations and warranties of the Borrowers and the other Loan Parties
under the Bridge Loan Agreement and the other Loan Documents shall not survive
termination of the Bridge Loan Agreement, but shall be deemed null and void in
all respects (other than those terms, provisions and covenants which by their
express terms survive repayment of the Obligations).

 

The effectiveness of this letter agreement is subject
to the conditions precedent that (i) the Agent shall have signed this letter
agreement, (ii) the Agent shall have received counterparts of this letter
agreement, duly executed by each Borrower and each Lender and (iii) the Payoff
shall have been made, and the parties set forth on Schedule A hereto
shall have received the proceeds thereof in accordance with such Schedule A
and, if applicable, Attachment 1 thereto not later than 2:00 p.m. (New
York City time) on February 1, 2000 

 

This letter agreement shall (i) be binding on each of
the Agent, the Lenders, the Borrowers and the other Loan Parties, and their respective
successors and assigns and (ii) inure to

 

 

2

 

the benefit of the Agent, the Lenders and the Borrowers and their
respective successors and assigns.

 

The Borrowers agree, jointly and severally, to pay all
costs and expense of the Agent in connection with the preparation, execution
and delivery of this letter agreement, the release documents executed in
connection herewith, and the performance of any other acts and the execution of
any other documents required to effect the release of any security granted to
the Agent, including, without limitation, the fees and disbursements of counsel
to the Agent.

 

This letter agreement may be executed in any number of
counterparts (including by telecopy) and by different parties hereto in
separate counterparts, each of which shall be deemed to be an original, but all
of which taken together shall constitute one and the same agreement.

 

This
letter agreement shall be governed by and construed in accordance with the law
of the State of New York.

 

Each of
the Borrowers, the Lenders and the Agent hereby irrevocably and unconditionally
waives any right to trial by jury in any action, proceeding or counterclaim
concerning this letter agreement.

 

 

3

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABLECO FINANCE LLC, as Agent under the

  
	
   

  	
  Bridge Loan Agreement and the other Loan

  
	
   

  	
  Documents

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COLLAGEN AESTHETICS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ilan K. Reich

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ilan K. Reich

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

4

 

	
  Acknowledged and Agreed:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Lenders:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABLECO FINANCE LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
  [ILLEGIBLE]

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A2 FUNDING L.P.

  
	
  By: 

  	
   A2 Fund
  Management LLC, 

  	 

	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/
  [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
  [ILLEGIBLE]

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANCORP INVESTMENTS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/
  [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
  [ILLEGIBLE]

  
	
   

  	
  Title:

  	
  Exec. V.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WILLIAM E. SIMON & SONS

  
	
   

  	
  SPECIAL
  SITUATION PARTNERS, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   William E.
  Simon & Sons

  
	
   

  	
   

  	
   

  	
   Special
  Situation Partners, LLC,

  
	
   

  	
   

  	
   

  	
   its General
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ John E.
  Klinge

  	 

	
   

  	
   

  	
  Name:

  	
  John E. Klinge

  
	
   

  	
   

  	
  Title: 

  	
  Authorized Signatory

  
																	

 

 

	
  CONTINENTAL CASUALTY
  COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Richard
  W. Dubberke

  	
  [SEAL]

  
	
   

  	
  Name:

  	
  Richard W. Dubberke

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FOOTHILL CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ Karen S.
  Sandler

  	
   

  
	
   

  	
  Name:

  	
  Karen S. Sandler

  
	
   

  	
  Title:

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BROWN & WILLIAMSON MASTER

  
	
   

  	
  RETIREMENT TRUST

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MacKay Shields LLC

  	
   

  
	
   

  	
   

  	
   

  	
  its Investment Advisor

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By :

  	
   /s/ Robert
  A. Nisi

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
  Robert A. Nisi

  
	
   

  	
   

  	
   

  	
   

  	
  Title: 

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MACKAY-SHIELDS DOMESTIC HEDGE FUND, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MacKay Shields LLC

  
	
   

  	
   

  	
   

  	
  its Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  
																		

 

 

	
   

  	
  EA CAYMAN UNIT TRUST-EA/MACKAY HIGH

  
	
   

  	
   

  	
  YIELD CAYMAN UNIT TRUST

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HIGHBRIDGE CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  POLICE OFFICERS PENSION SYSTEM OF THE

  
	
   

  	
  CITY OF HOUSTON

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
   

  	
   

  	
  its Investment Advisor

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By :

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
  Robert A. Nisi

  
	
   

  	
   

  	
   

  	
   

  	
  Title: 

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE 1199 HEALTH CARE EMPLOYEES PENSION FUND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
																			

 

 

	
   

  	
   

  	
  TEACHERS’ RETIREMENT SYSTEM OF LOUISIANA

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RETIREMENT SYSTEM OF THE CITY OF MEMPHIS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  MEZZACAPPA CAPITAL PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
   

  	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By :

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
  Robert A. Nisi

  
	
   

  	
   

  	
   

  	
   

  	
  Title: 

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE MAINSTAY FUNDS, on behalf of its High Yield

  
	
   

  	
  Corporate Bond Fund Series

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
																

 

 

	
   

  	
   

  	
  MACKAY-SHIELD OFFSHORE HEDGE FUND, LTD

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MAINSTAY VP SERIES FUND, INC., on behalf of its HIGH

  
	
   

  	
  YIELD CORPORATE BOND PORTFOLIO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEES RETIREMENT FUND OF THE CITY

  
	
   

  	
  OF FORT WORTH

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Mellon Bank, N.A., solely in its capacity as Trustee
  for the Employees Retirement Fund of the City of Fort Worth as Directed by
  MacKay Shields LLC, and not in its individual capacity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By :

  	
  /s/ Bernadette Rist

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
  BERNADETTE RIST

  
	
   

  	
   

  	
   

  	
   

  	
  Title: 

  	
  AUTHORIZED SIGNATORY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ANSCHUTZ FOUNDATION

  	
  The decision to participate in the investment, any
  representations made herein by the participant, and any actions taken
  hereunder by the participant has / have been met solely at the direction of
  the investment fiduciary who has 
  [ILLEGIBLE] investment discretion with respect to this  investment.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MacKay-Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
																				

 

 

	
   

  	
   

  	
  401K SAVINGS PLAN OF THE CHASE MANHATTAN

  
	
   

  	
   

  	
  BANK - HIGH YIELD BOND FUND

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  MacKay Shields LLC,

  	
   

  
	
   

  	
  its Investment Adviser

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert A. Nisi

  	
   

  
	
   

  	
  Name:

  	
  Robert A. Nisi

  
	
   

  	
  Title:

  	
  General Counsel

  
									

 

 

	
  [LOGO OF ACORD]

  	
  EVIDENCE
  OF PROPERTY INSURANCE

  	
   

  	
  DATE (MM/DD/YY)

  
	
   

  	
   

  	
   

  	
  02/02/00

  	
   

  
	
  THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW
  HAS BEEN ISSUED, IS IN FORCE AND CONVEYS ALL THE RIGHTS AND PRIVILEGES
  AFFORDED UNDER THE POLICY.

  
	
  PRODUCER:  MFCA

  	
   PHONE
 (A/C No. Ext). 805-965-0071

  	
   COMPANY

  	
  9FEDI

  
	
  MFC C & V Insurance Services

  	
  Federal Insurance Company

  
	
  P. O. Box 1469

  	
  A Division of Chubb

  
	
  Santa Barbara , CA 93102-0000

  	
  00000-0000

  
	
  CODE

  	
   SUB CODE

  	
   

  
	
  AGENCY

  CUSTOMER ID #  000705

  	
   

  
	
  INSURED

  	
  LOAN NUMBER

  	
   

  	
  POLICY NUMBER

  
	
  Inamed
  Corporation

  & its Subsidiaries

  700 Ward Drive

  Goleta, CA 93111-0000

  	
   

  	
  35354380

  
	
  EFFECTIVE DATE

  06/01/99

  	
  EXPIRATION DATE

  06/01/00

  	
    oCONTINUED UNTIL

  TERMINATED IF CHECKED 

  
	
  THIS REPLACES PRIOR EVIDENCE DATED:

  
	
  PROPERTY INFORMATION

  	
   

  
	
  LOCATION/DESCRIPTION

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Re:
  All Locations – see attached list

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVERAGE
  INFORMATION

  	
   

  	
   

  
	
  COVERAGE/PERILS/FORMS

  	
  AMOUNT OF INSURANCE

  	
  DEDUCTIBLE

  
	
  Property
  “Loss Limit” including Buildings,

  Business Personal Property, Tenant Improvements, EDP,

  Business Income

  

  

  

  

  

  	
  $22,500,000

  	
  $25,000

  
	
   

  	
   

  	
   

  
	
  REMARKS
  (Including Special Conditions)

  

  

  

  
	
  CANCELLATION
  10 Day Notice For Non-Payment of Premium

  
	
  THE POLICY IS
  SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY
  PERIOD.  SHOULD THE POLICY BE
  TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW 30
  DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY
  THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR
  AS REQUIRED BY LAW.

  
	
  ADDITIONAL
  INTEREST

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   o

  	
  MORTGAGE

  	
   o

  	
  ADDITIONAL
  INSURED

  
	
  NAME AND ADDRESS

  	
   ý

  	
  LOSS PAYEE

  	
   o

  	
   

  
	
  First
  Union National Bank

  as Administrative Agent

  201 S. College Street, l7th Floor

  Charlotte, NC 28288-

  	
  LOAN#

  
	
  AUTHORIZED REPRESENTATIVE

  
	
  ACORD
  27 [3/93]

  	
  /s/ [ILLEGIBLE]

  	
  ©ACORD
  CORPORATION 1993

  
																									

 

 

	
  POLICY NUMBER: 35354380

  	
   

  	
  COMMERCIAL PROPERTY

  

 

THIS
ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

 

LOSS
PAYABLE PROVISIONS

 

This endorsement modifies insurance provided under the following:

 

BUILDING AND
PERSONAL PROPERTY COVERAGE FORM

BUILDER’S RISK
COVERAGE FORM

CONDOMINIUM
ASSOCIATION COVERAGE FORM

CONDOMINIUM
COMMERCIAL UNIT-OWNERS COVERAGE FORM

STANDARD PROPERTY
POLICY

 

SCHEDULE

 

Provisions
Applicable

 

	
  Prem. 

  No. 

  	
   

  	
  Bldg.

  No. 

  	
   

  	
  Description

  of Property

  	
   

  	
  Loss Payee

  [Name & Address]

  	
   

  	
  Loss

  Payable

  	
   

  	
  Lender’s

  Loss Payable

  	
   

  	
  Contract

  Of Sale

  	
   

  
	
  Re: All Locations – see
  attached list

  	
   

  	
   

  	
  x

  	
   

  	
   

  	
   

  
																				

 

First
Union National Bank 

as Administrative Agent 

201 S. College Street, 17th Floor 

Charlotte, NC 28288

 

	
  A.

  	
  When this endorsement is attached to the STANDARD
  PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is
  replaced by the term Policy.

  	
   

  	
  B.

  	
  LOSS PAYABLE

  For Covered Property in which both you and a Loss Payee shown in the Schedule
  or in the Declarations have an insurable interest, we will:

  
	
  The following is added to the LOSS PAYMENT Loss
  Condition, as indicated in the Declarations or by an “X” in the Schedule:

  	
   

  	
   

  	
   

  1.  Adjust
  losses with you; and

  

 

	
  CP 12 18 07 88 

  	
  Copyright, Insurance
  Service Office Inc. 1983, 1987

  	
   

  

 

1

 

	
   

  	
  2.

  	
  Pay any claim for loss or damage jointly to you and
  the Loss Payee, as interests may appear.

  	
   

  	
   

  	
   

  	
  All of the terms of this coverage Part will then
  apply directly to the Loss Payee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  d.

  	
  If we pay the Loss Payee for any loss or damage and

  
	
  C.

  	
  LENDER’S LOSS PAYABLE. 

  	
   

  	
   

  	
   

  	
  deny payment to you because of your acts or because 

  
	
   

  	
  1.

  	
  The Loss Payee shown in the Schedule or in the
  Declarations is a creditor (including a mortgage holder or trustee) with whom
  you have entered a contract for the sale of Covered Property, whose interest
  in that Covered Property is established by such written contracts as:

  	
   

  	
   

  	
   

  	
  you have failed
  to comply with the terms of this Coverage Part.

   

  	
   

  
	
  [1]

  	
  The Loss Payee’s rights will be transferred to us to
  the extent of the amount we pay; and

  
	
   

  	
   

  	
  a.

  	
  Warehouse receipts;

  	
   

  	
   

  	
   

  	
  [2]

  	
  The Loss Payee’s rights to recover the full 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  amounts of the Loss Payee’s claim will not be 

  
	
   

  	
   

  	
  b.

  	
  A contract for deed;

  	
   

  	
   

  	
   

  	
   

  	
  impaired.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
  Bills for lading; or

  	
   

  	
   

  	
  3.

  	
   

  	
  If we cancel this policy, we will give written .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  notice to the Loss Payee at least

  
	
   

  	
   

  	
  d.

  	
  Financing Statements.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  

  2.

  	
  

  For Covered Property in which both you and a Loss Payee have an insurable
  interest;

   

  	
   

  	
   

  	
   

  	
  a.

   

   

  b.

  	
  10 days before the effective date of cancellation if
  we cancel for your non­payment of premium; or 

  30 days before the effective date of cancellation if
  we cancel for any other reason.

  
	
   

  	
   

  	
  a.

  	
  We will pay for covered loss or damage to each Loss
  Payee in their order of precedence, as interests may appear.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  4.

  	
  If we do not renew this policy, we will give written
  notice to the Loss Payee at least 10 days before the expiration date of this
  policy. 

  
	
   

  	
   

  	
  b.

  	
  The Loss Payee has the right to receive loss payment
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  

  

  c.

  	
  even if the Loss Payee has started foreclosure or
  similar action on their Covered
  Property.

  If we deny your claim because of your acts or
  because you have failed to comply with the terms of the Coverage Part, the
  Loss Payee will still have the
  right to 

  receive loss payment if the Loss Payee;

  	
   

  	
  D.

  	
  CONTRACT OF SALE 

  1.     The Loss Payee shown in
  the Schedule or in the Declarations is a person or organization you have
  entered a contract with for the sale of Covered Property.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  

  [1]

  	
  

  Pays any premium due under this Coverage Part 

  at our request if you have failed to do so; and

  	
   

  	
   

  	
  2.

  	
  For Covered Property in which both you and the Loss
  Payee have an insurable interest we will:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  

  [2]

  

  

  

  [3]

  	
  

  Submits a signed, sworn proof of loss within 60 days after receiving notice
  from us of your failure to do so; and

  

  Has notified us of any change in ownership, occupancy or substantial change
  in risk known to the Loss Payee.

  	
   

  	
   

  	
   

  	
  a.

  b.

  	
  Adjust losses with you; and

  Pay any claim for loss or damage jointly to you and the Loss Payee, as
  interests may appear.

  
	
  

  3.

  	
  

  The following is added to the OTHER INSURANCE Condition:

  
	
  For Covered Property that is the subject of a
  contract of sale, the word “you” includes the Loss Payee.

  
																	

 

	
  CP 12 18 07 88

  	
  Copyright, Insurance
  Service Office, Inc. 1983, 1987

  	
   

  	
   

  

 

2

 

	
  [LOGO OF ACORD]

  	
  EVIDENCE
  OF PROPERTY INSURANCE

  	
   

  	
  DATE (MM/DD/YY)

  
	
   

  	
   

  	
   

  	
  02/02/00

  
	
  THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW
  HAS BEEN ISSUED, IS IN FORCE AND CONVEYS ALL THE RIGHTS AND PRIVILEGES
  AFFORDED UNDER THE POLICY.

  
	
  PRODUCER

  	
  MFCA

  	
   PHONE
 (A/C No. Ext): 805-965-0071

  	
   COMPANY

  	
  9ESSX

  
	
  MFC & V Insurance Services

  	
  Essex Insurance Company

  
	
  P.O. Box 1469

  	
   

  
	
  Santa Barbara , CA 93102-0000

  	
  CA
  00000-0000

  
	
  CODE

  	
  SUB CODE

  	
   

  
	
  AGENCY

  CUSTOMER ID #  000705

  	
   

  
	
  INSURED

  	
  LOAN NUMBER

  	
   

  	
  POLICY NUMBER

  
	
  Inamed
  Corporation

  & its Subsidiaries

  700 Ward Drive

  Goleta , CA 93111-0000

  	
   

  	
  MSP3615

  
	
   EFFECTIVE DATE
 05/26/99

  	
   EXPIRATION DATE
 06/01/00

  	
   oCONTINUED UNTIL

  TERMINATED IF CHECKED 

  
	
  THIS REPLACES PRIOR EVIDENCE DATED:

  
	
  PROPERTY INFORMATION

  	
   

  
	
  LOCATION/DESCRIPTION

  	
   

  
	
   

  	
   

  
	
  Re:
  All Locations – see attached list

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  COVERAGE
  INFORMATION

  	
   

  	
   

  
	
  COVERAGE/PERILS/FORMS

  	
  AMOUNT OF INSURANCE

  	
  DEDUCTIBLE

  
	
  Excess
  Property (excess of $22,500,000)

  includes Buildings, Business Personal Property,

  Tenant Improvements, EDP, Business Income

  * Per underlying policy

  

  

  

  

  

  	
  $25,000,000

  	
  *

  
	
  REMARKS
  (Including Special Conditions)

  

  

  

  

  
	
  CANCELLATION   10 Day Notice For Non-Payment of Premium

  
	
  THE POLICY IS
  SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY
  PERIOD.  SHOULD THE POLICY BE
  TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW 30
  DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY
  THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR
  AS REQUIRED BY LAW.

  
	
  ADDITIONAL
  INTEREST

  	
   

  	
   

  	
   

  	
   

  
	
  NAME AND ADDRESS

  	
   o

  	
  MORTGAGEE

  	
   o

  	
  ADDITIONAL
  INSURED

  
	
   

  	
   ý

  	
  LOSS PAYEE

  	
   o

  	
   

  
	
  First
  Union National Bank

  as Administrative Agent

  201 S. College Street, l7th Floor

  Charlotte, NC 28288-

  	
  LOAN#

  
	
  AUTHORIZED REPRESENTATIVE

  
	
  ACORD
  27 (3/93)

  	
  /s/ [ILLEGIBLE]

  	
  ©ACORD
  CORPORATION 1993

  
																			

 

 

	
  POLICY NUMBER: MSP3615

  	
   

  	
  COMMERCIAL PROPERTY

  

 

THIS
ENDORSEMENT CHANGES THE POLICY.  PLEASE
READ IT CAREFULLY.

 

LOSS
PAYABLE PROVISIONS

 

This endorsement modifies insurance provided under the following:

 

BUILDING AND
PERSONAL PROPERTY COVERAGE FORM

BUILDER’S RISK
COVERAGE FORM

CONDOMINIUM
ASSOCIATION COVERAGE FORM

CONDOMINIUM
COMMERCIAL UNIT–OWNERS COVERAGE FORM

STANDARD PROPERTY
POLICY

 

SCHEDULE

 

Provisions
Applicable

 

	
  Prem.

  	
   

  	
  Bldg.

  	
   

  	
  Description

  	
   

  	
  Loss Payee

  	
   

  	
  Loss

  	
   

  	
  Lender’s

  	
   

  	
  Contract

  	
   

  	 

	
  No.

  	
   

  	
  No.

  	
   

  	
  of Property

  	
   

  	
  [Name & Address]

  	
   

  	
  Payable

  	
   

  	
  Loss Payable

  	
   

  	
  Of Sale

  	
   

  	 

	
  

  Re: All Locations – see attached list 

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  
																					

 

First
Union National Bank

as Administrative Agent

201 S. College Street, 17th Floor

Charlotte, NC 28288-

 

 

 

 

 

 

	
  A.

  	
  When this endorsement is attached to the STANDARD
  PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is
  re-placed by the term Policy.

  	
  B.

  	
  LOSS PAYABLE

  For Covered Property in which both you and a Loss Payee shown in the Schedule
  or in the Declarations have an insurable interest, we will:

  
	
  The following is added to the LOSS PAYMENT Loss
  Condition, as indicated in the Declarations or by an “X’ in the Schedule:

  	
   

  	
   

  1.   Adjust
  losses with you; and

  

 

	
  CP 12 18 07 88 

  	
  Copyright, Insurance
  Service Office Inc. 1983, 1987

  	
   

  

 

1

 

	
   

  	
  2.

  	
  Pay any claim for loss or damage jointly to you and
  the Loss Payee, as interests may appear.

  	
   

  	
   

  	
   

  	
  All of the terms of this coverage Part will then
  apply directly to the Loss Payee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  d.

  	
  If we pay the Loss Payee for any loss or damage and

  
	
  C.

  	
  LENDER’S LOSS PAYABLE. 

  	
   

  	
   

  	
   

  	
  deny payment to you because of your acts or because 

  
	
   

  	
  1.

  	
  The Loss Payee shown in the Schedule or in the
  Declarations is a creditor (including a mortgage holder or trustee) with whom
  you have entered a contract for the sale of Covered Property, whose interest
  in that Covered Property is established by such written contracts as:

  	
   

  	
   

  	
   

  	
  you have failed
  to comply with the terms of this Coverage Part.

   

  	
   

  
	
  [1]

  	
  The Loss Payee’s rights will be transferred to us to
  the extent of the amount we pay; and

  
	
   

  	
   

  	
  a.

  	
  Warehouse receipts;

  	
   

  	
   

  	
   

  	
  [2]

  	
  The Loss Payee’s rights to recover the full 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  amounts of the Loss Payee’s claim will not be 

  
	
   

  	
   

  	
  b.

  	
  A contract for deed;

  	
   

  	
   

  	
   

  	
   

  	
  impaired.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
  Bills for lading; or

  	
   

  	
   

  	
  3.

  	
   

  	
  If we cancel this policy, we will give written .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  notice to the Loss Payee at least

  
	
   

  	
   

  	
  d.

  	
  Financing Statements.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  

  2.

  	
  

  For Covered Property in which both you and a Loss Payee have an insurable
  interest;

  	
   

  	
   

  	
   

  	
  a.

  

  b.

  	
  10 days before the effective date of cancellation if
  we cancel for your non­payment of premium; or 

  30 days before the effective date of cancellation if
  we cancel for any other reason.

  
	
   

  	
   

  	
  a.

  	
  We will pay for covered loss or damage to each Loss
  Payee in their order of precedence, as interests may appear.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  4.

  	
  If we do not renew this policy, we will give written
  notice to the Loss Payee at least 10 days before the expiration date of this
  policy. 

  
	
   

  	
   

  	
  b.

  	
  The Loss Payee has the right to receive loss payment
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  

  

  c.

  	
  even if the Loss Payee has started foreclosure or
  similar action on their Covered
  Property.

  If we deny your claim because of your acts or
  because you have failed to comply with the terms of the Coverage Part, the
  Loss Payee will still have the
  right to 

  receive loss payment if the Loss Payee;

  	
   

  	
  D.

  	
  CONTRACT OF SALE 

  1.     The Loss Payee shown in
  the Schedule or in the Declarations is a person or organization you have
  entered a contract with for the sale of Covered Property.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  

  [1]

  	
  

  Pays any premium due under this Coverage Part 

  at our request if you have failed to do so; and

  	
   

  	
   

  	
  2.

  	
  For Covered Property in which both you and the Loss
  Payee have an insurable interest we will:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  

  [2]

  

  

  

  [3]

  	
  

  Submits a signed, sworn proof of loss within 60 days after receiving notice
  from us of your failure to do so; and

  

  Has notified us of any change in ownership, occupancy or substantial change
  in risk known to the Loss Payee.

  	
   

  	
   

  	
   

  	
  a.

  b.

  	
  Adjust losses with you; and

  Pay any claim for loss or damage jointly to you and the Loss Payee, as
  interests may appear.

  
	
  

  3.

  	
  

  The following is added to the OTHER INSURANCE Condition:

  
	
  For Covered Property that is the subject of a
  contract of sale, the word “you” includes the Loss Payee.

  
																	

 

	
  CP 12 18 07 88 

  	
  Copyright, Insurance
  Service Office Inc. 1983, 1987

  	
   

  

 

2

 

	
  [LOGO OF ACORD]

  	
  EVIDENCE
  OF PROPERTY INSURANCE

  	
   

  	
  DATE (MM/DD/YY)

  
	
   

  	
   

  	
   

  	
  02/02/00

  
	
  THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW
  HAS BEEN ISSUED, IS IN FORCE AND CONVEYS ALL THE RIGHTS AND PRIVILEGES
  AFFORDED UNDER THE POLICY.

  
	
  PRODUCER

  	
  MFCA

  	
  PHONE

  (A/C No. Ext):  805-965-0071

  	
  COMPANY

  	
  9GESI

  
	
  MFC & V Insurance Services

  	
  General Star Indemnity

  
	
  P. O. Box 1469

  	
   

  
	
  Santa Barbara, CA 93102-0000

  	
  00000-0000

  
	
  CODE:

  	
  SUB CODE:

  	
   

  
	
  AGENCY

  CUSTOMER ID #  000705

  	
   

  
	
  INSURED

  	
  LOAN
  NUMBER

  	
   

  	
  POLICY
  NUMBER

  
	
  Inamed
  Corporation

  & its Subsidiaries

  700 Ward Drive

  Goleta , CA 93111-0000

  	
   

  	
  IPG366871

  
	
  EFFECTIVE DATE

  05/26/99

  	
  EXPIRATION DATE

  06/01/00

  	
        
  CONTINUED UNTIL 

  o  TERMINATED IF  CHECKED 

  
	
  THIS REPLACES PRIOR
  EVIDENCE DATED:

   

  
	
  PROPERTY INFORMATION

  	
   

  
	
  LOCATION/DESCRIPTION

  	
   

  
	
   

  	
   

  
	
  Re:
  All Locations – see attached list

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  COVERAGE
  INFORMATION

  	
   

  	
   

  
	
  COVERAGE/PERILS/FORMS

  	
  AMOUNT OF INSURANCE

  	
  DEDUCTIBLE

  
	
  Excess
  Property - (excess of $47,500,000) 

  includes Buildings, Business Personal Property, Tenant Improvements,
  EDP, Business Income  

  * Per underlying policy

  

  

  

  

  

  	
  $50,000,000

  	
  *

  
	
  REMARKS
  (Including Special Conditions)

  

  

  

  
	
  CANCELLATION
  10 Day Notice For Non-Payment of Premium

  
	
  THE POLICY IS
  SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD.
  SHOULD THE POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL
  INTEREST IDENTIFIED BELOW 30 DAYS WRITTEN NOTICE, AND WILL SEND
  NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN
  ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW.

  
	
  ADDITIONAL
  INTEREST

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  MORTGAGEE

  	
  o

  	
  ADDITIONAL
  INSURED

  
	
  NAME AND ADDRESS

  	
  ý

  	
  LOSS PAYEE

  	
  o

  	
   

  
	
  First
  Union National Bank

  as Administrative Agent

  201 S. College Street, l7th Floor

  Charlotte, NC 28288-

  	
  LOAN#

  
	
  AUTHORIZED REPRESENTATIVE

  
	
  ACORD
  27 (3/93)

  	
  /s/ [ILLEGIBLE]

  	
  ©ACORD
  CORPORATION 1993

  
																					

 

 

	
  POLICY NUMBER: IPG366871

  	
   

  	
  COMMERCIAL PROPERTY

  

 

THIS
ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

 

LOSS
PAYABLE PROVISIONS

 

This endorsement modifies insurance provided under the following:

 

BUILDING AND
PERSONAL PROPERTY COVERAGE FORM

BUILDER’S RISK
COVERAGE FORM

CONDOMINIUM
ASSOCIATION COVERAGE FORM

CONDOMINIUM
COMMERCIAL UNIT–OWNERS COVERAGE FORM

STANDARD PROPERTY
POLICY

 

SCHEDULE

 

Provisions
Applicable

 

	
  Prem.

  	
   

  	
  Bldg.

  	
   

  	
  Description

  	
   

  	
  Loss Payee

  	
   

  	
  Loss

  	
   

  	
  Lender’s

  	
   

  	
  Contract

  
	
  No.

  	
   

  	
  No.

  	
   

  	
  of Property

  	
   

  	
  [Name & Address]

  	
   

  	
  Payable

  	
   

  	
  Loss Payable

  	
   

  	
  Of Sale

  
	
   

  Re: All Locations - see attached
  list

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  X

  	
   

  	
   

  

 

First
Union National Bank

as Administrative Agent

201 S. College Street, 17th Floor

Charlotte, NC 28288–

 

 

 

 

	
  A.

  	
  When this endorsement is attached to the STANDARD
  PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement re–placed
  by the term Policy.

  	
  B.

  	
  LOSS PAYABLE

  For Covered Property in which both you and a Loss Payee shown in the Schedule
  or in the Declarations have an insurable interest, we will:

  
	
  The following is added to the LOSS PAYMENT Loss
  Condition, as indicated in the Declarations or by an “X’ in the Schedule:

  	
   

  	
  1.   Adjust
  losses with you; and

  

 

	
  CP 12 18 07 88

  	
   

  	
  Copyright, Insurance
  Service Office, Inc. 1983, 1987

  	
   

  	
   

  

 

1

 

	
   

  	
  2.

  	
  Pay any claim for loss or damage jointly to you and
  the Loss Payee, as interests may appear.

  	
   

  	
   

  	
   

  	
  All of the terms of this coverage Part will then
  apply directly to the Loss Payee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  d.

  	
  If we pay the Loss Payee for any loss or damage and

  
	
  C.

  	
  LENDER’S LOSS PAYABLE. 

  	
   

  	
   

  	
   

  	
  deny payment to you because of your acts or because 

  
	
   

  	
  1.

  	
  The Loss Payee shown in the Schedule or in the
  Declarations is a creditor (including a mortgage holder or trustee) with whom
  you have entered a contract for the sale of Covered Property, whose interest
  in that Covered Property is established by such written contracts as:

  	
   

  	
   

  	
   

  	
  you have failed
  to comply with the terms of this Coverage Part.

   

  	
   

  
	
  [1]

  	
  The Loss Payee’s rights will be transferred to us to
  the extent of the amount we pay; and

  
	
   

  	
   

  	
  a.

  	
  Warehouse receipts;

  	
   

  	
   

  	
   

  	
  [2]

  	
  The Loss Payee’s rights to recover the full 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  amounts of the Loss Payee’s claim will not be 

  
	
   

  	
   

  	
  b.

  	
  A contract for deed;

  	
   

  	
   

  	
   

  	
   

  	
  impaired.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c.

  	
  Bills for lading; or

  	
   

  	
   

  	
  3.

  	
   

  	
  If we cancel this policy, we will give written .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  notice to the Loss Payee at least

  
	
   

  	
   

  	
  d.

  	
  Financing Statements.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  

  2.

  	
  

  For Covered Property in which both you and a Loss Payee have an insurable
  interest;

   

  	
   

  	
   

  	
   

  	
  a.

  

  

  b.

  	
  10 days before the effective date of cancellation if
  we cancel for your non­payment of premium; or 

  30 days before the effective date of cancellation if
  we cancel for any other reason.

  
	
   

  	
   

  	
  a.

  	
  We will pay for covered loss or damage to each Loss
  Payee in their order of precedence, as interests may appear.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  4.

  	
  If we do not renew this policy, we will give written
  notice to the Loss Payee at least 10 days before the expiration date of this
  policy. 

  
	
   

  	
   

  	
  b.

  	
  The Loss Payee has the right to receive loss payment
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  

  

  c.

  	
  even if the Loss Payee has started foreclosure or
  similar action on their Covered
  Property.

  If we deny your claim because of your acts or
  because you have failed to comply with the terms of the Coverage Part, the
  Loss Payee will still have the
  right to 

  receive loss payment if the Loss Payee;

  	
   

  	
  D.

  	
  CONTRACT OF SALE 

  1.     The Loss Payee shown in
  the Schedule or in the Declarations is a person or organization you have
  entered a contract with for the sale of Covered Property.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  

  [1]

  	
  

  Pays any premium due under this Coverage Part 

  at our request if you have failed to do so; and

  	
   

  	
   

  	
  2.

  	
  For Covered Property in which both you and the Loss
  Payee have an insurable interest we will:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  

  [2]

  

  

  

  [3]

  	
  

  Submits a signed, sworn proof of loss within 60 days after receiving notice
  from us of your failure to do so; and

  

  Has notified us of any change in ownership, occupancy or substantial change
  in risk known to the Loss Payee.

  	
   

  	
   

  	
   

  	
  a.

  b.

  	
  Adjust losses with you; and

  Pay any claim for loss or damage jointly to you and the Loss Payee, as
  interests may appear.

  
	
  

  3.

  	
  

  The following is added to the OTHER INSURANCE Condition:

  
	
  For Covered Property that is the subject of a
  contract of sale, the word “you” includes the Loss Payee.

  
																	

 

	
  CP 12 18 07 88

  	
   

  	
  Copyright, Insurance
  Service Office, Inc. 1983, 1987

  	
   

  	
   

  

 

2

 

	
  ACORD

  	
  CERTIFICATE OF LIABILITY INSURANCE

  	
   

  	
   

  	
   

  	
  DATE (MM/DD/YY)

  02/02/00

  
	
  PRODUCER  MFCA

  	
   

  	
  THIS CERTIFICATE IS ISSUED AS A MATTER OF
  INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
  CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE
  POLICIES BELOW.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  MFC & V Insurance Services

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P. 0. Box 1469

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Santa Barbara, CA 93102-0000

  	
   

  	
   

  	
   

  	
  COMPANIES AFFORDING
  COVERAGE

  	
   

  
	
  805–965-0071

  	
   

  	
  COMPANY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  A

  	
  Federal Insurance Company

  
	
  INSURED   000705

  	
   

  	
   

  	
  COMPANY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  B

  	
  Safeco Insurance Company

  	
   

  	
   

  
	
  Inamed Corporation

  	
   

  	
  COMPANY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  & its Subsidiaries

  	
   

  	
  C

  	
  MEDMARC – Casualty Insurance
  Co.

  	
   

  	
   

  
	
  700 Ward Drive

  	
   

  	
  COMPANY

  	
   

  	
   

  
	
  Santa Barbara, CA 93111–

  	
   

  	
  D

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVERAGES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THIS IS TO CERTIFY THAT
  THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED
  ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM
  OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
  CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE
  POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND
  CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID
  CLAIMS.

  
	
   

  
	
  CO LTR

  	
  TYPE OF INSURANCE

  	
  POLICY NUMBER

  	
  POLICY EFFECTIVE DATE (MM/DD/YY)

  	
  POLICY EXPIRATION DATE (MM/DD/YY)

  	
  LIMITS

  
	
  A

  	
  GENERAL
  LIABILITY

  	
  35354380

  	
  06/01/99

  	
  06/01/00

  	
  GENERAL AGGREGATE

  	
  $

  	
  1,000,000

  
	
  ý

  	
  COMMERCIAL GENERAL
  LIABILITY

  	
  PRODUCTS – COMP/OP
  AGG

  	
  $

  	
   

  
	
  o

  	
  o CLAIMS MADE ý OCCUR

  	
  PERSONAL & ADV INJURY

  	
  $

  	
  1,000,000

  
	
  o

  	
  OWNER'S & CONTRACTOR’S
  PROT

  	
  EACH OCCURRENCE

  	
  $

  	
  1,000,000

  
	
  o

  	
   

  	
  FIRE DAMAGE (Any one fire)

  	
  $

  	
  1,000,000

  
	
  o

  	
   

  	
   

  	
   

  	
   

  	
  MED EXP (Any one person)

  	
  $

  	
  10,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
  AUTOMOBILE
  LIABILITY

  	
   

  	
   

  	
   

  	
  COMBINED SINGLE LIMIT

  	
  $

  	
  1,000,000

  
	
  ý

  	
  ANY AUTO

  	
  73242800

  	
  06/01/09

  	
  06/01/00

  	
  BODILY INJURY(Per Person)

  	
  $

  	
   

  
	
  ý

  	
  ALL OWNED AUTOS

  	
   

  	
   

  	
   

  	
  BODILY INJURY (Per
  accident)

  	
  $

  	
   

  
	
  ý

  	
  SCHEDULED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
  HIRED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
  PROPERTY DAMAGE

  	
  $

  
	
  ý

  	
  NON–OWNED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  o

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GARAGE
  LIABILITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AUTO ONLY – EA
  ACCIDENT

  	
  $

  	
   

  
	
   

  	
  o

  	
  ANY AUTO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OTHER THAN AUTO ONLY:

  	
  $

  	
   

  
	
   

  	
  o

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EACH ACCIDENT

  	
  $

  	
   

  
	
   

  	
  o

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AGGREGATE

  	
  $

  	
   

  
	
  A

  	
  EXCESS
  LIABILITY

  	
   

  	
  79754796

  	
   

  	
  06/01/99

  	
   

  	
  06/01/00

  	
  EACH OCCURRENCE

  	
  $

  	
  9,000,000

  
	
  ý

  	
  UMBRELLA FORM

  	
   

  	
   

  	
   

  	
  AGGREGATE

  	
  $

  	
  9,000,000

  
	
  o

  	
  OTHER THAN UMBRELLA FORM

  	
   

  	
   

  	
   

  	
  Excl. Products

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
  WORKERS
  COMPENSATION AND EMPLOYERS’ LIABILITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ý

  	
  WC   STATUTORY LIMITS

  	
  o OTHER

  	
   

  
	
  THE PROPRIETOR/

  PARTNERS/EXECUTIVE OFFICERS ARE

  	
  o INCL

  	
   

  	
  WC2199180

  	
   

  	
  05/10/99

  	
   

  	
  05/10/00

  	
   

  	
  EL EACH ACCIDENT

  	
  $

  	
  1,000,000

  
	
  o EXCL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EL DISEASE – POLICY
  LIMIT

  	
  $

  	
  1,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EL DISEASE – EA
  EMPLOYEE 

  	
  $

  	
  1,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
  OTHER

  	
   

  	
  98NV380004

  	
   

  	
  12/03/98

  	
   

  	
  02/07/00

  	
   

  	
  $10,000,000 Occur. & Aggregate

  
	
  Products – Completed
  Operations

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION OF
  OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS

  
	
  Re: All Locations - see attached
  list

  	
  Certificate Holder is named as
  Additional Insured to the General Liability per the attached form.

  
	
  CERTIFICATE HOLDER

  	
   

  	
  CANCELLATION 10 Day Notice For
  Non-Pavment of Premium

  
	
  First Union National Bank

  as Administrative Agent

  201 S. College Street, l7th Floor

  Charlotte, NC 28288-

  	
  SHOULD
  ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE
  THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO
  THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE
  SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS
  AGENTS OR REPRESENTATIVES.

  
	
   

  	
   

  	
   

  	
   

  	
  AUTHORIZED REPRESENTATIVE

  
	
  ACORD 25–S(1/95)

  	
   

  	
   

  	
   

  	
   

  	
  ©
  ACORD CORPORATION 1988

  
																																								

 

 

	
  POLICY NUMBER: 36354380
  

  	
   

  	
  COMMERCIAL PROPERTY
  LIABILITY

  

 

THIS
ENDORSEMENT CHANGES THE POLICY.  PLEASE
READ IT CAREFULLY.

 

ADDITIONAL
INSURED -

 

MORTGAGEE,
ASSIGNEE OR RECEIVER

 

This endorsement modifies insurance provided under the following:

 

COMMERCIAL GENERAL LIABILITY COVERAGE PART

 

SCHEDULE

Name of Person or
Organization:

 

First
Union National Bank

as Administrative Agent

201 S. College Street, 17th Floor

Charlotte, NC 28288

 

Designation of Premises:

 

Re:
All Locations - see attached list          Certificate Holder is named as
Additional Insured to the General Liability per the attached form.

 

entry appears above,
information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement.)

 

1.                WHO IS AN INSURED
(Section II) is amended to include as an insured the person(s) or
organization(s) shown in the Schedule but only with respect to their liability
as mortgagee, assignee, or receiver and arising out of the ownership,
maintenance, or use of the premises by you and shown in the Schedule.

 

2.                This insurance
does not apply to structural alterations, new construction and demolition
operations performed by or for that person or organization.

 

	
  CG 20 18 11 85

  	
   

  	
  Copyright, Insurance
  Service Office, Inc. 1984

  	
   

  	
   

  

 

 

IV. LOCATION SCHEDULE

 

	
  #

  	
  ADDRESS

  	
   

  	
  OCCUPANCY

  
	
  1)

  	
  1035 Cindy Lane

  Carpinteria, CA 93013

  	
  BioEnterics Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  2)

  	
  10760 Oak Shadow Avenue

  Las Vegas, NV 89144

  	
  Inamed Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
  3)

  	
  3753 Howard Hughes Pkwy #310

  Las Vegas, NV 89109

  	
  Leased to Others

  
	
   

  	
   

  	
   

  	
   

  
	
  4)

  	
  871 Grier Drive

  Las Vegas, NV 89119

  	
  ????

  
	
   

  	
   

  	
   

  	
   

  
	
  5)

  	
  1160 Mark Avenue

  Carpinteria, CA 93013

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  6)

  	
  5511 Ekwill Street

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  7)

  	
  5531 Ekwill Street

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  8)

  	
  5551 Ekwill Street

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  9)

  	
  5571 Ekwill Street

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  10)

  	
  5540 Ekwill St. (700 Ward Dr.)

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  11)

  	
  5520 Ekwill Street

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  12)

  	
  600 Pine Avenue

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  13)

  	
  460 Ward Drive

  Santa Barbara, CA 93111

  	
  McGhan Medical Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  14)

  	
  1125 Mark Avenue

  Carpinteria, CA 93013

  	
  BioEnterics

  

 

 

	
  15)

  	
  11 Penn Plaza, Suite 946

  New York, NY 10001

  	
  Inamed Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
  16)

  	
  71 S. Los Carneros Road

  Santa Barbara, CA 93111

  	
  Inamed Corporation

  

 

 

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

THIS
FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of the 21st day
of August, 2000 (this “Amendment”), is made among INAMED CORPORATION, a Delaware corporation (the “Borrower”),
the Required Lenders (as defined in the Credit Agreement referred to below),
and FIRST UNION NATIONAL BANK, as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).

 

RECITALS

 

A.            The Borrower, the Administrative Agent, certain banks and
other financial institutions or entities, Bear, Stearns & Co. Inc., as Lead
Arranger, GMAC Commercial Credit LLC, as Documentation Agent, and Bear Stearns
Corporate Lending Inc., as Syndication Agent, are parties to a Credit
Agreement, dated as of February 1, 2000 (the “Credit Agreement”), providing for
the availability of certain credit facilities to the Borrower upon the terms
and conditions set forth therein. Capitalized terms used herein without
definition shall have the meanings given to them in the Credit Agreement.

 

B.            The Borrower has requested an amendment to the Credit
Agreement, and the Required Lenders have agreed to make such amendment upon the
terms and conditions set forth herein.

 

STATEMENT
OF AGREEMENT

 

NOW, THEREFORE,
in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.            Definitions. 
The following defined term is hereby added to the Credit Agreement in
proper alphabetical order:

 

“First Amendment
Effective Date”  has the meaning
given to such term in the First Amendment to Credit Agreement dated as of
August 21, 2000 among the Borrower, the Administrative Agent and the Required
Lenders.

 

2.                                       Restricted
Payments.  Subsection (d) of Section
7.6 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“(d)         so long as no Default or Event of
Default shall have occurred and be continuing, the Borrower may purchase its
common stock; provided that the aggregate amount of such purchases of
the Borrower during any fiscal year may not exceed an amount equal to 25% of
Consolidated Domestic Net Income for the two immediately preceding fiscal years
of the Borrower; but provided  further that (x) subject to clauses
(y) and (z) below, the Borrower may make additional

 

 

purchases of its common stock in an aggregate amount
not exceeding $25,000,000 from and after the First Amendment Date during the
term of this Agreement; (y) in no event shall the Borrower effect purchases of
its common stock pursuant to this subsection (d) in an aggregate amount
exceeding $50,000,000 during the term of this Agreement, and (z) if
Consolidated Domestic Net Income is negative during any fiscal year, the
Borrower shall not be permitted to purchase its common stock pursuant to this
subsection (d) during the next succeeding fiscal year.”

 

3.             Representations and Warranties.  The Borrower hereby represents and warrants
as follows:

 

(a)           Each of the representations and
warranties contained in the Credit Agreement and in the other Loan Documents is
true and correct in all material respects on and as of the date hereof and will
be true and correct in all material respects on and as of the Amendment
Effective Date (as hereinafter defined) and after giving effect to this
Amendment with the same effect as if made on and as of such date (except to the
extent any such representation or warranty is expressly stated to have been
made as of a specific date).

 

(b)           On and as of the date hereof, no
Default or Event of Default has occurred and is continuing, and on and as of
the Amendment Effective Date and after giving effect to this Amendment, no
Default or Event of Default will have occurred and be continuing.

 

4.             Amendment Fee. 
As a condition to the effectiveness of this Amendment and in
consideration of the amendments effected hereby, the Borrower shall have paid
to the Administrative Agent, for the account of each Lender that has executed
and delivered this Amendment to the Administrative Agent by 12:00 p.m. on
August 21, 2000, a fee for such Lender equal to 0.125% of the sum of (i) such
Lender’s aggregate outstanding Term Loans, if any, plus (ii) such
Lender’s Revolving Commitment, if any.

 

5.             Effect of Amendment.  From and after the Amendment Effective Date, all references to
the Credit Agreement set forth in any other Loan Document or other agreement or
instrument shall, unless otherwise specifically provided, be references to the
Credit Agreement as amended by this Amendment and as may be further amended,
modified, restated or supplemented from time to time. This Amendment is limited
as specified and shall not constitute or be deemed to constitute an amendment,
modification or waiver of any provision of the Credit Agreement except as
expressly set forth herein. Except as expressly amended hereby, the Credit
Agreement shall remain in full force and effect in accordance with its terms.

 

6.             Governing Law. 
This Amendment shall be governed by and construed and enforced in
accordance with the laws of the State of New York (without regard to the
conflicts of law provisions thereof).

 

7.             Severability. 
To the extent any provision of this Amendment is prohibited by or
invalid under the applicable law of any jurisdiction, such provision shall be
ineffective only to the extent of such prohibition or invalidity and only in
any such jurisdiction, without prohibiting

 

2

 

or invalidating such provision in any other Jurisdiction or the
remaining provisions of this Amendment in any jurisdiction.

 

8.             Successors and Assigns.  This Amendment shall be binding upon, inure to the benefit of and
be enforceable by the respective successors and permitted assigns of the
parties hereto.

 

9.             Construction. 
The headings of the various sections and subsections of this Amendment
have been inserted for convenience only and shall not in any way affect the
meaning or construction of any of the provisions hereof.

 

10.           Counterparts; Effectiveness.  This Amendment may be executed in any number
of counterparts and by different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. This Amendment shall
become effective on the date (the “Amendment Effective Date”) upon which the
Administrative Agent shall have received (i) an executed counterpart hereof
from each of the Borrower and the Required Lenders and (ii) the fee required by
Section 4 hereof.

 

3

 

IN
WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed by their duly authorized officers as of the date first
above written.

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David E. Bamberger

  	
   

  
	
   

  	
   

  	
  David E. Bamberger

  
	
   

  	
  Title:

  	
  Senior Vice President and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST UNION NATIONAL BANK,
  as

  
	
   

  	
  Administrative Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  SVP

  	
   

  

 

4

 

	
   

  	
  ARCHIMEDES FUNDING III, LTD.

  
	
   

  	
  By ING Capital Advisors LLC, as Collateral Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

5

 

	
   

  	
  BEAR STEARNS CORPORATE LENDING INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vic Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Vic Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  

 

6

 

	
   

  	
  BLACK DIAMOND CLO 2000-1 LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Dyer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  DAVID DYER

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  

 

7

 

	
   

  	
  BLACK DIAMOND CLO 1998-1 LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John H. Cullinane

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John H. Cullinane

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  

 

8

 

	
   

  	
  FC-CBO II LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Collateral Manager

  	
   

  

 

9

 

	
   

  	
  FC-CBO III LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Collateral Manager

  	
   

  

 

10

 

	
   

  	
  FIRST DOMINION FUNDING I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Popp

  	
   

  
	
   

  	
   

  	
  Name:

  	
  JOHN G. POPP

  	
   

  
	
   

  	
   

  	
  Title:

  	
  MANAGING DIRECTOR

  	
   

  

 

11

 

	
   

  	
  FIRST DOMINION FUNDING II

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Popp

  	
   

  
	
   

  	
   

  	
  Name:

  	
  JOHN G. POPP

  	
   

  
	
   

  	
   

  	
  Title:

  	
  MANAGING DIRECTOR

  	
   

  

 

12

 

	
   

  	
  FOOTHILL CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. E. Stearns

  	
   

  
	
   

  	
   

  	
  Name:

  	
  M.E. STEARNS

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  	
   

  

 

13

 

	
   

  	
  GMAC COMMERCIAL CREDIT LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  SVP

  	
   

  

 

14

 

	
   

  	
  KZH ING-1 LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas Lucente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  NICHOLAS LUCENTE

  	
   

  
	
   

  	
   

  	
  Title:

  	
  AUTHORIZED AGENT

  	
   

  

 

15

 

	
   

  	
  KZH ING-2 LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas Lucente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  NICHOLAS LUCENTE

  	
   

  
	
   

  	
   

  	
  Title:

  	
  AUTHORIZED AGENT

  	
   

  

 

16

 

	
   

  	
  KZH ING-3 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nicholas Lucente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  NICHOLAS LUCENTE

  	
   

  
	
   

  	
   

  	
  Title:

  	
  AUTHORIZED  AGENT

  	
   

  
						

 

17

 

	
   

  	
  LONGHORN CDO (CAYMAN) LTD.

  
	
   

  	
  By Merrill Lynch Investment Managers, L.P.

  
	
   

  	
  As Investment Advisor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

18

 

	
   

  	
  MORGAN STANLEY DEAN WITTER PRIME
  INCOME TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sheila Finnerty

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sheila Finnerty

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  

 

19

 

	
   

  	
  NORTHWOODS CAPITAL, LIMITED

  
	
   

  	
  By Angelo, Gordon & Co., L.P., as Collateral
  Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

20

 

	
   

  	
  NORTHWOODS CAPITAL II, LIMITED

  
	
   

  	
  By Angelo, Gordon & Co., L.P., as Collateral
  Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

21

 

	
   

  	
  PACIFICA PARTNERS I, L.P.

  
	
   

  	
  By Imperial Credit Asset Management as its
  Investment 

  
	
   

  	
  Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean R. Walker

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sean R. Walker

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  

 

22

 

	
   

  	
  SEQUILS-ING I (HBDGM), LTD.

  
	
   

  	
  By ING Capital Advisors LLC, as Collateral Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

23

 

	
   

  	
  TORONTO DOMINION (NEW YORK), INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Title:

  	
  VICE PRESIDENT

  	
   

  

 

24

 

SECOND
AMENDMENT TO CREDIT AGREEMENT

AND
WAIVER

 

THIS
SECOND AMENDMENT TO CREDIT AGREEMENT AND WAIVER,  dated as of the 22nd day of November, 2000
(this “Amendment and Waiver”),  is made by and among INAMED CORPORATION, a Delaware corporation
(the “Borrower”), the Required Lenders (as defined in the Credit
Agreement referred to below), and FIRST UNION
NATIONAL BANK,  as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).

 

RECITALS

 

A.            The
Borrower, the Administrative Agent, certain banks and other financial
institutions or entities, Bear, Stearns & Co. Inc., as Lead Arranger, GMAC
Commercial Credit LLC, as Documentation Agent, and Bear Stearns Corporate Lending
Inc., as Syndication Agent, are parties to a Credit Agreement, dated as of
February 1, 2000 (the “Credit Agreement”), providing for the availability of
certain credit facilities to the Borrower upon the terms and conditions set
forth therein. Capitalized terms used herein without definition shall have the
meanings given to them in the Credit Agreement.

 

B.            The
Borrower has requested that the Administrative Agent and the Required Lenders
waive certain violations of the Credit Agreement resulting from an investment
by the Borrower and from the settlement of certain patent infringement
litigation, and has also requested that Section 7.7 of the Credit Agreement be
amended to accommodate a Capital Expenditure that the Borrower has committed to
make in connection with the settlement. The Administrative Agent and the
Lenders have agreed to effect such waivers and amendment upon the terms and
conditions set forth herein.

 

STATEMENT
OF AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

 

AMENDMENT

 

1.1           Amendment
to Section 7.7.  Section 7.7 of the
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Make or commit to make any Capital Expenditure,
except (i) Capital Expenditures of the Borrower and its Subsidiaries in the
ordinary course of business not exceeding (A) an aggregate amount of
$20,000,000 during the fiscal years of the Borrower ending December 31, 2000
and December 31, 2001,

 

 

provided
that no more than $15,000,000 of such amount shall be expended in either such
fiscal year and (B) $7,500,000 during any fiscal year of the Borrower occurring
thereafter, and (ii) a Capital Expenditure of the Borrower in the fiscal year
ending December 31, 2000, in an aggregate principal amount not exceeding
$30,000,000, in connection with the settlement of certain patent infringement
litigation among the Borrower, its subsidiary McGhan Medical Corporation and
Medical Products Development, Inc.”

 

ARTICLE
II

 

WAIVERS

 

2.1           Investment
in Reconstructive Technologies.  On
October 24, 2000, the Borrower invested $3,001,050 in Reconstructive
Technologies, Inc., a Delaware corporation (“RTI”), in exchange for
1,755,000 shares of preferred stock in RTI convertible into common stock
constituting 15% of the common stock of RTI (the “RTI Investment”), in
violation of Section 7.8 of the Credit Agreement. The Required Lenders hereby
waive any Default or Event of Default under Section 7.8 of the Credit Agreement
arising from the RTI Investment, provided that the Borrower delivers to
the Administrative Agent, within five (5) Business Days of the Amendment
Effective Date (as defined below), (i) stock certificates evidencing the
preferred stock received by the Borrower in connection with the RTI Investment,
together with undated assignments separate from certificate for each such
certificate, duly executed in blank; (ii) updated Schedules 2 and 6 to the Guarantee
and Collateral Agreement evidencing the pledge pursuant thereto to the
Administrative Agent, for the benefit of the Lenders, of such preferred stock
and of the intellectual property rights granted to the Borrower by RTI under
that certain License Agreement effective October 24, 2000 between RTI and the
Borrower (the “License Agreement”); and (iii) written consent by RTI to the
pledge of intellectual property rights described in clause (ii), which pledge
is expressly prohibited by Section 14.01 of the License Agreement absent
consent.

 

2.2           Settlement
Agreement with Medical Products Development. On September 30, 2000, the
Borrower executed an agreement with Medical Products Development, Inc. (“MPDI
and such agreement, the “MPDI Settlement”) pursuant to which the
Borrower agreed to pay $30,000,000 to MPDI in six installments in exchange for
title to certain patents and settlement of an action brought by MPDI against
the Borrower and its subsidiary McGhan Medical Corporation alleging
infringement of those patents. On October 16, 2000, pursuant to the terms of
the MPDI Settlement, the Borrower made the initial installment payment of
$6,000,000 and issued promissory notes to MPDI in the aggregate principal
amount of $24,000,000, representing the remaining amount of the settlement.
Such promissory notes constitute Indebtedness of the Borrower that is not
permitted by Section 7.2 of the Credit Agreement; and the commitment by the
Borrower to pay $30,000,000 for the patents, which the Borrower intends to
treat as capital assets, violates Section 7.7 of the Credit Agreement (as such
Section was in effect immediately prior to giving effect to the amendment set
forth in Section 1.1 above). The Required Lenders hereby waive any Default or
Event of Default under Section 7.2 and Section 7.7 of the Credit Agreement (as
such Section was in effect immediately prior to giving effect to the amendment
thereto set forth in Section 1.1 above) arising from the MPDI Settlement.

 

2

 

ARTICLE
III

 

REPRESENTATIONS
AND WARRANTIES

 

The Borrower hereby represents and warrants to the
Administrative Agent and the Lenders as follows:

 

3.1           Representations
and Warranties. After giving effect to this Amendment and Waiver, each of
the representations and warranties of the Borrower contained in the Credit
Agreement and in the other Credit Documents is true and correct on and as of
the date hereof with the same effect as if made on and as of the date hereof
(except to the extent any such representation or warranty is expressly stated
to have been made as of a specific date, in which case such representation or
warranty was true and correct as of such date).

 

3.2            No Default. After giving
effect to this Amendment and Waiver, no Default or Event of Default has
occurred and is continuing.

 

ARTICLE
IV

 

MISCELLANEOUS

 

4.1           Amendment
Fee. As a condition to the effectiveness of this Amendment and Waiver and
in consideration of the amendment and waivers effected hereby, the Borrower
shall have paid to the Administrative Agent, for the account of each Lender
that has executed and delivered this Amendment to the Administrative Agent by
12:00 p.m. on November 22, 2000, a fee for such Lender equal to 0.125% of the
sum of (i) such Lender’s aggregate outstanding Term Loans, if any, plus
(ii) such Lender’s Revolving Commitment, if any.

 

4.2           Counteparts;
Effectiveness. This Amendment and Waiver may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of
which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. This Amendment and
Waiver shall become effective on the date (the “Amendment Effective Date”) upon
which the Administrative Agent shall have received (i) an executed counterpart
hereof from each of the Borrower and the Required Lenders and (ii) the fee
required by Section 4.1 hereof.

 

4.3           Effect
of Amendment. From and after the Amendment Effective Date, all references
to the Credit Agreement set forth in any other Credit Document or other
agreement or instrument shall, unless otherwise specifically provided, be
references to the Credit Agreement as amended by this Amendment and Waiver and
as may be further amended, modified, restated or supplemented from time to
time. This Amendment and Waiver is limited as specified and shall not
constitute or be deemed to constitute an amendment, modification or waiver of
any provision of the Credit Agreement except as expressly set forth herein.
Except as expressly amended hereby, the Credit Agreement shall remain in full
force and effect in accordance with its terms.

 

3

 

4.4            Governing Law. This Amendment
shall be governed by and construed and enforced in accordance with the laws of
the State of New York.

 

4.5           Severability.
To the extent any provision of this Amendment and Waiver is prohibited by or
invalid under the applicable law of any jurisdiction, such provision shall be
ineffective only to the extent of such prohibition or invalidity and only in
any such jurisdiction, without prohibiting or invalidating such provision in
any other jurisdiction or the remaining provisions of this Amendment and Waiver
in any jurisdiction.

 

4.6           Successors
and Assigns. This Amendment and Waiver shall be binding upon, inure to the
benefit of and be enforceable by the respective successors and permitted
assigns of the parties hereto.

 

4.7           Construction.
The headings of the various sections and subsections of this Amendment and Waiver
have been inserted for convenience only and shall not in any way affect the
meaning or construction of any of the provisions hereof.

 

[remainder of page
intentionally left blank]

 

4

 

IN
WITNESS WHEREOF, the parties hereto have caused this
Amendment and Waiver to be executed by their duly authorized officers as of the
date first above written.

 

	
   

  	
  INAMED CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Doty

  	
   

  
	
   

  	
   

  	
  Name:

  	
  MICHAEL J. DOTY

  	
   

  
	
   

  	
   

  	
  Title:

  	
  SVP & CFO

  	
   

  

 

	
   

  	
  FIRST UNION NATIONAL BANK,  as

  
	
   

  	
  Administrative Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joyce Barry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joyce Barry

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
  and Managing Director

  	
   

  

 

	
   

  	
  ARCHIMEDES FUNDING III, LTD.

  
	
   

  	
  By ING Capital Advisors LLC, as Collateral Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President & Portfolio Manager

  	
   

  

 

	
   

  	
  BEAR STEARNS CORPORATE LENDING INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victor F. Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Victor F. Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  

 

	
   

  	
  BLACK DIAMOND CLO 2000-1 LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Dyer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Dyer

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

5

 

	
   

  	
  BLACK DIAMOND CLO 1998-1 LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  FC-CBO II LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mike McCarthy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mike McCarthy

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Manager

  	
   

  

 

	
   

  	
  FC-CBO III LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mike McCarthy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mike McCarthy

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Manager

  	
   

  

 

	
   

  	
  FIRST DOMINION FUNDING I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Popp

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John G. Popp

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  

 

	
   

  	
  FIRST DOMINION FUNDING II

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John G. Popp

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John G. Popp

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  

 

	
   

  	
  FOOTHILL CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. E. Stearns

  	
   

  
	
   

  	
   

  	
  Name:

  	
  M. E. Stearns

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  	
   

  

 

6

 

	
   

  	
  GMAC COMMERCIAL CREDIT LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Imperato

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Frank Imperato

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  

 

	
   

  	
  KZH ING-1 LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  KZH ING-2 LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  KZH ING-3 LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  MORGAN STANLEY DEAN WITTER PRIME
  INCOME TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PETER GEWIRTZ

  	
   

  
	
   

  	
   

  	
  Name:

  	
  PETER GEWIRTZ

  	
   

  
	
   

  	
   

  	
  Title:

  	
  VICE PRESIDENT

  	
   

  
						

 

	
   

  	
  NEEHMAN CLO, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President & Portfolio Manager

  	
   

  

 

7

 

	
   

  	
  NORTHWOODS CAPITAL LIMITED

  
	
   

  	
  By Angelo, Gordon & Co., L.P., as Collateral
  Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  NORTHWOODS CAPITAL II LIMITED

  
	
   

  	
  By Angelo, Gordon & Co., L.P., as Collateral
  Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  PACIFICA PARTNERS 1, L.P.

  
	
   

  	
  By Imperial Credit Asset Management as its
  Investment

  
	
   

  	
  Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean R. Walker

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sean
  R. Walker

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
						

 

	
   

  	
  SEQUILS-ING I (HBDGM), LTD.

  
	
   

  	
  By ING Capital Advisors LLC, as Collateral Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President & Portfolio Manager

  	
   

  
						

 

	
   

  	
  SWISS LIFE US RAINBOW LIMITED

  	 

	
   

  	
  By:

  	
  ING Capital Advisors LLC

  	
   

  	 

	
   

  	
   

  	
  as Investment Manager

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Helen Y. Rhee

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President & Portfolio Manager

  	
   

  
							

 

	
   

  	
  TORONTO DOMINION (NEW YORK), INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stacey Malek

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacey Malek

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
						

 

8

[PAGE ONE (1) IS MISSING]

 

 

provided,
that from and after the date which is six months after the Third Amendment
Effective Date, the Applicable Margin will be determined pursuant to the
Pricing Grid.

 

“Commitment”: as
to any Lender, the sum of the Aggregate Term Commitment and the Revolving
Commitment of such Lender.

 

“Facility”: each
of (a) the Aggregate Term Commitments and the Aggregate Term Loans made
thereunder (the “Aggregate Term Facility”) and (b) the Revolving
Commitments and the extensions of credit made thereunder (the “Revolving
Facility”, and together with the Aggregate Term Facility, the “Facilities”).

 

(b)           by deleting each reference to “Term
Loans” in the definitions of “Consolidated Fixed Charges”, “Excess Domestic
Cash Flow”, “Interest Period”, “Majority Facility Lenders”, “Reinvestment
Deferred Amount”, and “Required Lenders” and substituting in lieu thereof a
reference to “Aggregate Term Loans”.

 

(c)           by deleting the reference to “Term
Loans” and “Closing Date” in the definition of “Aggregate Exposure” and
substituting in lieu thereof a reference to “Aggregate Term Loans” and “Third
Amendment Effective Date”, respectively.

 

(d)           (i) by adding after the words “(e)
any other non-cash charges,” in the definition of “Consolidated EBITDA” the
following: “and (f) the cash restructuring charges of (1) $5,600,000 recorded
in the first quarter of the Borrower’s fiscal year ending December 31, 2001,
(2) up to $2,800,000 recorded in the period from the  Third Amendment Effective Date through the 12 month
anniversary thereof, and (3) $600,000 to be recorded in future periods,” and
(ii) by deleting the word “and” before the words “(e) any other non-cash
charges,” and substituting in lieu thereof, a comma.

 

(e)           by adding the following new
definitions in the proper alphabetical order:

 

“Additional Term
Commitment”: as to any Lender, the obligation of such Lender, if any, to
make an Additional Term Loan to the Borrower hereunder in a principal amount
not to exceed the amount set forth under the heading “Additional Term
Commitment” opposite such Lender’s name on Schedule 1.1B. The original
aggregate amount of the Additional Term Commitments is $25,000,000.

 

“Additional Term
Lender”: each Lender that has an Additional Term Commitment or is the
holder of an Additional Term Loan.

 

“Additional Term Loan”:
as defined in Subsection 2A.1.

 

“Additional Term
Percentage”: as to any Additional Term Lender at any time, the percentage
which such Lender’s Additional Term Commitment

 

2

 

then constitutes
of the Additional Term Commitment or, at any time after the Third Amendment
Effective Date, the percentage which the aggregate principal amount of such
Lender’s Additional Term Loans then outstanding constitutes of the aggregate
principal amount of the Additional Term Loans then outstanding).

 

“Aggregate Term
Commitment”: as to any Lender, its Term Commitment and Additional Term
Commitment.

 

“Aggregate Term Lender”:
a Term Lender or Additional Term Lender.

 

“Aggregate Term Loans”:
as to any Lender, its Term Loans and Additional Term Loans.

 

“Aggregate Term Note”:
as referred to in Exhibit G-1 hereto.

 

“Aggregate Term
Percentage”: collectively, the Term Percentage and the Additional Term
Percentage.

 

“ERP Expenditure
Amount”: as defined in Subsection 7.7 hereto.

 

“Permitted Purchase
Amount”: as defined in Subsection 7.6(b) hereto.

 

“Third Amendment”:
the Third Amendment, dated May 16, 2001, to this Agreement.

 

“Third Amendment
Effective Date”: the Third Amendment Effective Date under the Third
Amendment to this Agreement (which date is as of May 16, 2001).

 

2.2           Addition
of New Subsection. The Credit Agreement is hereby amended by adding a new
Section between Sections 2 and 3 to read in its entirety as follows:

 

“2A.1      Additional Term Commitments.
Subject to the terms and conditions hereof, each Additional Term Lender
severally agrees to make a term loan (an “Additional Term Loan”) to the
Borrower on the Third Amendment Effective Date in an amount equal to the amount
of the Additional Term Commitment of such Lender; provided that the
failure of any Lender to make any Additional Term Loan required to be made by
it shall not relieve any other Lender if its obligations to make an Additional
Term Loan hereunder. The Additional Term Loans may from time to time be
Eurodollar Loans or Base Rate Loans, as determined by the Borrower and notified
to the Administrative Agent in accordance with Subsections 2.A.2 and 2.12.

 

2A.2        Procedure for Additional Term Loan
Borrowing. The Borrower shall give the Administrative Agent irrevocable
written notice (which notice must be received by the Administrative Agent prior
to 10.00 A.M., Charlotte, North Carolina time, one Business Day prior to the
anticipated Third Amendment Effective Date) requesting that

 

3

 

the Additional
Term Lenders make the Additional Term Loans on the Third Amendment Effective
Date. The Additional Term Loans made on the Third Amendment Effective Date
shall initially be Base Rate Loans. Upon receipt of such notice the
Administrative Agent shall promptly notify each Additional Term Lender thereof.
Not later than 12:00 Noon, Charlotte, North Carolina time, on the Third
Amendment Effective Date each Additional Term Lender shall make available to
the Administrative Agent at the Funding Office an amount in immediately
available funds equal to the Additional Term Loan to be made by such Lender.
The Administrative Agent shall credit the account of the Borrower on the books
of such office of the Administrative Agent with the aggregate of the amounts
made available to the Administrative Agent by the Additional Term Lenders in
immediately available funds.

 

2A.3        Repayment of Additional Term Loans.
The Additional Term Loan of each Additional Term Lender shall mature in 15
consecutive quarterly installments, commencing on June 30, 2001, each of which
shall be in an amount equal to such Additional Term Lender’s Additional Term
Percentage multiplied by the amount set forth below opposite such installment.

 

	
  Installment

  	
   

  	
  Principal
  Amount

  	
   

  
	
  June 30, 2001

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  September 30, 2001

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  December 31, 2001

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  March 31, 2002

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  June 30, 2002

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  September 30, 2002

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  December 31, 2002

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  March 31, 2003

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  June 30, 2003

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  September 30, 2003

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  $

  	
  63,291.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  $

  	
  6,075,949.75

  	
   

  
	
  June 30, 2004

  	
   

  	
  $

  	
  6,075,949.75

  	
   

  
	
  September 30, 2004

  	
   

  	
  $

  	
  6,075,949.75

  	
   

  
	
  January 31, 2005

  	
   

  	
  $

  	
  6,075,949.75

  	
   

  

 

2A.4        Use of Proceeds. The proceeds of
the Additional Term Loans shall be used to refinance Revolving Loans, to make
Capital Expenditures, to provide for working capital needs, and to pay related
fees and expenses related to the Additional Term Loans and the Third
Amendment.”

 

2.3           Amendment to Subsections 2.10,
2.11 and 6.9.  Subsections 2.10,
2.11, and 6.9 of the Credit Agreement are hereby amended by deleting each
reference to “Term Loans” in each of such subsections and substituting in lieu
thereof a reference to “Aggregate Term Loans”.

 

4

 

2.4           Amendment to Subsection 2.17(b).
Subsection 2.17(b) of the Credit Agreement is hereby amended by deleting the
terms “Term Lenders” and “Term Loans” each time they appear in such subsection
and substituting in lieu thereof the terms “Aggregate Term Lenders” and
“Aggregate Term Loans”, respectively.

 

2.5           Amendment to Subsection 2.23.  Subsection 2.23 of the Credit Agreement is
hereby amended by deleting the term “Term Loans” each time it appears in such
subsection and substituting in lieu thereof the term “Aggregate Term Loans”.

 

2.6           Amendment
to Subsection 7.1(b).  Subsection
7.1 of the Credit Agreement is hereby amended by deleting paragraph (b) of such
subsection in its entirety and substituting in lieu thereof the following new
paragraph:

 

“(b) Consolidated
Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage
Ratio for any period of four consecutive fiscal quarters of the Borrower to be
less than 1.25 to 1.00, in the case of any such period ending on or prior to
December 31, 2002, and 1.50 to 1.00 thereafter.”

 

2.7           Amendments to Section 7.6.  Subsection 7.6 of the Credit Agreement is
hereby amended by:

 

(a)(i)   adding the words “until the first date
after December 3l, 2001 on which the Consolidated Leverage Ratio is less than
or equal to 1.24 to 1.00 and (ii) $15,000,000 thereafter.” after the reference
to the amount “$5,000,000” in paragraph (b) thereof; (ii) deleting the words “a
single purchase” in paragraph (b) thereof and substituting in lieu thereof the
words “aggregate purchases”; and (iii) by deleting the words “common stock or
common stock options” and substituting in lieu thereof the words “common stock,
common stock options or common stock warrants”;

 

(b)   deleting all the words following “so long
as no Default or Event of Default shall have occurred and be continuing,” in
paragraph (d) thereof and substituting in lieu thereof the words “(1) after the
Third Amendment Effective Date, the Borrower may purchase up to $5,00,000 of
its common stock (the “Permitted Purchase Amount”), provided that
on the date of any purchase, the Consolidated Leverage Ratio is less than or
equal to 1.80 to 1.00 on a pro forma basis; (2) six months after the Third
Amendment Effective Date, the Permitted Purchase Amount shall be increased by
$5,000,000 to a total of $10,000,000, provided that on the date
of any purchase that occurs after the six month anniversary of the Third
Amendment Effective Date, the Consolidated Leverage Ratio is less than or equal
to 1.50 to 1.00 on a pro forma basis (3) after December 31, 2001, the Permitted
Purchase Amount shall be increased to $25,000,000 minus the aggregate amount
spent by the Borrower to purchase its common stock from the First Amendment
Effective Date through (but not including) the Third Amendment Effective Date, provided
that the Consolidated Leverage Ratio is less than or equal to 1.24 to 1.00 on
December 31, 2001. Notwithstanding any of the foregoing, if on December 31,
2001, the Consolidated Leverage Ratio is greater than 1.24 to 1.00, the
Borrower may no longer purchase its common stock until the date on which the
Consolidated Leverage Ratio is less than or equal to 1.24 to 1.00.”

 

5

 

2.8           Amendment
to Section 7.7. Subsection 7.7 of the Credit Agreement is hereby amended by
deleting such subsection in its entirety and substituting in lieu thereof the
following new subsection:

 

"7.7  Capital Expenditures.  Make any Capital Expenditure, except Capital
Expenditures of the Borrower and its Subsidiaries in the ordinary course of
business not exceeding (i) an aggregate amount of $22,000,000 during the fiscal
year of the Borrower ending December 31, 2001; (ii) an aggregate amount of
$35,000,000 during the fiscal years of the Borrower ending December 31,2002 and
December 31, 2003, provided that no more than $22,000,000 of such amount
shall be expended in either such fiscal year, and (iii) an aggregate amount of
$11,000,000 during the fiscal year of the Borrower ending December 31, 2004; provided
further that, with respect to (i), (ii) and (iii) immediately above, (a) no
more than an aggregate amount of $16,000,000 shall be expended during the
fiscal years of the Borrower ending December 31, 2001 and December 31, 2002 for
Capital Expenditures relating to leasehold improvements and equipment with
respect to the Borrower's Los Cameros project Phase I through Phase III and
(b)(1) no more than an aggregate amount of $15,000,000 shall be expended during
the fiscal years of the Borrower ending December 31, 2001, December 31, 2002
and December 31, 2003 for Capital Expenditures relating to the installation and
development of the Borrower's Enterprise Resource Program (the "ERP
Expenditure Amount"); (2) no such Capital Expenditures relating to the
Borrower's Enterprise Resources Program in the United States shall be made
until the Borrower has received written approval from the U.S. Food and Drug
Administration that it may manufacture breast implants at its Los Cameros
Facility; and (3) the ERP Expenditure Amount outside of the United States shall
be limited to $3,000,000. To the extent that actual Capital Expenditures
relating to the Borrower's Los Cameros facility or its Enterprise Resource
Program are less than the applicable aggregate amounts set forth in provisos
(a) and (b)(1) to (i), (ii) and (iii) of this Section, the aggregate amounts
provided for in (ii) and (iii) of this Section will be reduced by such unused
amounts."

 

2.9           Amendments
to Subsection 7.8.  Subsection 7.8
of the Credit Agreement is hereby amended as follows:

 

(a)           by
amending and restating paragraph (k) thereof in its entirety to read as
follows: "(k) [intentionally omitted]" and 

(b)           by
deleting the reference to the amount “$1,000,000” in paragraph (n) and
substituting in lieu thereof a reference to the amount “$5,000,000”.

 

2.10         Amendment
to Subsection 10.1.  Subsection 10.
1 of the Credit Agreement is hereby amended by deleting the references to the
terms “Term Loan”, “Term Loans” and “Term Facility” each time they appear in
such subsection and substituting in lieu thereof, the terms “Aggregate Term
Loan”, “Aggregate Term Loans” and “Aggregate Term Facility” respectively.

 

2.11         Amendment
to Annex A.  Annex A of the Credit
Agreement is hereby amended by (a) deleting the reference to the term “Term
Loans” and substituting in lieu thereof

 

6

 

the term "Aggregate Term Loans" and (b) deleting the Pricing
Grid in its entirety and substituting in lieu thereof the following:

 

	
  Consolidated 

  Lcverage Ratio

  	
   

  	
  Applicable Margin 

  for Eurodollar 

  Loans

  	
   

  	
  Applicable 

  Margin for

  Base Rate

  Loans

  
	
   >
  1.50 to 1.00

  	
   

  	
  4.00%

  	
   

  	
  3.00%

  	
   

  
	
  < 1.50 to 1.00

  	
   

  	
  3.50%

  	
   

  	
  2.50%

  	
   

  

 

2.12         Amendment to Exhibit G-1 to the Credit Agreement.  Exhibit G- 1 of the Credit Agreement is
hereby amended by deleting the references to "Term Note", and
substituting in lieu thereof, a reference to “Aggregate Term Note”.

 

2.13         Addition of Schedule 1.1B to the Credit Agreement.  The Credit Amendment is hereby amended by
adding a new schedule thereto to be designated Schedule 1.1B and to read
in its entirety as set forth in Schedule 1.1B to this Amendment.

 

2.14         Consent.  The Required Lenders hereby consent (a) that
CUI Corporation shall no longer be a guarantor under the Guarantee and
Collateral Agreement and (b) to the transfer by Inamed International Corp. to
McGhan Medical B.V. ("McGhan Medical") of all of the Capital
Stock of McGhan Limited (the "Transfer") and agree that the
Transfer shall not be included for purposes of determining compliance with the
Dollar threshold in subsection 7.8(h).

 

2.15         Inactive
Status of CUI Corporation.  (A) The
Borrower covenants that (i) as of the date hereof, CUI Corporation no longer
conducts, transmits or otherwise engages in any business or other operations,
and does not own or lease any property or assets and does not have any Liens,
Indebtedness (except for monies owed to the California Franchise Board) or
Guarantee Obligations (other than under the Guarantee and Collateral Agreement
until the Third Amendment Effective Date) and (ii) it will not permit CUI
Corporation to conduct, transmit or otherwise engage in any business or other
operations, to own or lease any property or assets, or to create, assume, incur
or suffer to exist any Lien, Indebtedness or Guarantee Obligation. (B) The
Borrower covenants that any monies owed by CUI Corporation to the California
Franchise Board will be paid by the Borrower when due.

 

2.16         Passive
Holding Status of McGhan Medical. 
The Borrower covenants that it will not permit McGhan Medical to
conduct, transmit or otherwise engage in any business or other operations
(other than holding the capital stock of its Subsidiaries), to own or lease any
property (other than holding the capital stock of its Subsidiaries) or to
create, assume, incur or suffer to exist, any Lien, Indebtedness or Guarantee
Obligation.

 

7

 

[Page Missing]

 

8

 

Loan Party, dated the Third Amendment Effective Date, as to the
incumbency and signature of the officers of such Subsidiaries acknowledging and
consenting to this Amendment, which certificate shall be reasonably
satisfactory in form and substance to the Arranger and shall be executed by the
President or any Vice President and the Secretary or any Assistant Secretary of
each such Subsidiary.

 

(e)           Fees.  The Arranger, the Administrative Agent and
the Lenders shall have received the fees required to be received by them on or
prior to the Third Amendment Effective Date.

 

(f)            Legal Opinion. 
The Arranger and the Administrative Agent shall have received,
with a counterpart for each Lender, the following executed legal opinions:

 

(1)                                  the
executed legal opinion of Skadden, Arps, Slate, Meagher & Flom LLP, counsel
to the Loan Parties, substantially in the form of Exhibit A hereto;

 

(2)                                  the
executed legal opinion of David Bamberger, general counsel of the Loan Parties,
substantially in the form of Exhibit B hereto; and

 

(3)                                  the
executed legal opinions of such special and local counsel as may be required by
the Arranger and the Administrative Agent.

 

Each such legal opinion shall cover such matters incident to the
transactions contemplated by this Agreement as the Arranger and Administrative
Agent may reasonably require.

 

(g)           Updated
Ratings.  The Arranger shall have received
an updated rating for the Facilities from Standard & Poor's Ratings Group
and Moody's Investors Service, Inc. of at least BB- and Ba3, respectively.

 

(h)           Representations
and Warranties.  After giving effect
to this Amendment, each of the representations and warranties made by the
Borrower and the other Loan Parties in or pursuant to the Loan Documents shall
be true and correct in all material respects on and as of the Third Amendment
Effective Date, except to the extent such representations and warranties
expressly relate to an earlier date in which case such representations and
warranties shall be true and correct in all material respects as of such
earlier date.  The borrowing of the
Additional Term Loans by the Borrower shall constitute a representation and
warranty by the Borrower that this condition has been satisfied.

 

(i)            No
Default.  No Default or Event of
Default shall have occurred and be continuing on the Third Amendment Effective
Date.  The borrowing of the Additional
Term Loans by the Borrower shall constitute a representation and warranty by
the Borrower that this condition has been satisfied.

 

3.4           Continuing
Effect; No Other Amendments.  Except
as expressly amended hereby, all of the terms and provisions of the Credit
Agreement are and shall remain in full force and effect.  The amendments provided for herein are
limited to the specific subsections of the Credit Agreement specified herein
and shall not constitute an amendment of, or any indication of the Arranger's,
the Administrative Agent's or the Lender's willingness to amend, any other

 

9

 

provisions of the
Credit Agreement or the same subsection for any other date or time period
(whether or not such other provisions or compliance with such subsections for
another date or time period are affected by the circumstances addressed in this
Amendment).

 

3.5           Expenses.  The Borrower agrees to pay and reimburse the
Arranger and the Administrative Agent for all reasonable costs and
out-of-pocket expenses incurred by the Arranger and the Admistrative Agent,
respectively, in connection with the preparation and delivery of this
Amendment, including, without limitation, the reasonable fees and disbursements
of counsel to the Arranger.

 

3.6           Counterparts.  This Amendment may be executed in any number
of counterparts by the parties hereto
(including by facsimile transmission), each of which counterparts when so
executed shall be an original, but all the counterparts shall together
constitute one and the same instrument.

 

3.7           GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

3.8           Consent.  By
signature below, each of the Subsidiary Guarantors below acknowledges that the
Guarantee and Collateral Agreement remains in full force and effect, and that
the Third Amendment is fully enforceable under the Guarantee and Collateral
Agreement.

 

10

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be executed and delivered by their
respective duly authorized officers as of the date first above written.

 

	
   

  	
  INAMED CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
   

  	
  FIRST UNION NATIONAL
  BANK, as

  	
   

  
	
   

  	
  Administrative Agent
  and as a Lender

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joyce L. Barry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joyce L. Barry

  	
   

  
	
   

  	
   

  	
  Title:

  	
  SVP

  	
   

  

 

	
   

  	
  BEAR STEARNS CORPORATE
  LENDING INC.,

  
	
   

  	
  as Syndication Agent
  and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victor F.
  Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Victor F. Bulzacchelli

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  

 

11

 

	
   

  	
  ARCHIMEDES FUNDING III, LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ING Capital Advisors LLC,

  	
   

  
	
   

  	
   

  	
  as Collateral Manager

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Gorski

  	
   

  
	
   

  	
  Name:

  	
  STEVEN GORSKI

  	
   

  
	
   

  	
  Title:

  	
  VICE PRESIDENT
  &

  	
   

  
	
   

  	
   

  	
   

  	
  SENIOR CREDIT
  ANALYST

  	
   

  

 

	
   

  	
  NEMEAN CLO, LTD.

  	
   

  
	
   

  	
  By:

  	
  ING Capital Advisors LLC,

  	
   

  
	
   

  	
   

  	
  as Investment Manager

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Gorski

  	
   

  
	
   

  	
  Name:

  	
  STEVEN GORSKI

  	
   

  
	
   

  	
  Title:

  	
  VICE PRESIDENT
  &

  	
   

  
	
   

  	
   

  	
   

  	
  SENIOR CREDIT
  ANALYST

  	
   

  

 

	
   

  	
  SWISS
  LIFE US RAINBOW LIMITED

  	
   

  
	
   

  	
  By:

  	
  ING Capital Advisors LLC,

  	
   

  
	
   

  	
   

  	
  as Investment Manager

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Gorski

  	
   

  
	
   

  	
  Name:

  	
  STEVEN GORSKI

  	
   

  
	
   

  	
  Title:

  	
  VICE PRESIDENT
  &

  	
   

  
	
   

  	
   

  	
   

  	
  SENIOR CREDIT
  ANALYST

  	
   

  

 

	
   

  	
  SEQUILS-ING
  I (HBDGM), LTD.

  	
   

  
	
   

  	
  By:

  	
  ING Capital Advisors LLC,

  	
   

  
	
   

  	
   

  	
  as Collateral Manager

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Gorski

  	
   

  
	
   

  	
  Name:

  	
  STEVEN GORSKI

  	
   

  
	
   

  	
  Title:

  	
  VICE PRESIDENT
  &

  	
   

  
	
   

  	
   

  	
   

  	
  SENIOR CREDIT
  ANALYST

  	
   

  

 

12

 

	
   

  	
  ARCHIMEDES
  FUNDING III, LTD.

  
	
   

  	
  By:

  	
  ING Capital Advisors LLC, as Collateral Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  BLACK
  DIAMOND CLO 2000-1 LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Dyer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Dyer

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  

 

	
   

  	
  BLACK
  DIAMOND CLO 2000-1 LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John H. Cullinane

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John H.
  Cullinane

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  

 

	
   

  	
  FC-CBO
  II LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Walsh

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Walsh

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Collateral
  Manager

  	
   

  

 

	
   

  	
  FC-CBO
  III LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Walsh

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Walsh

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Collateral
  Manager

  	
   

  

 

13

 

	
   

  	
  FIRST DOMINION FUNDING I

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID H. LERNER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  DAVID H. LERNER

  	
   

  
	
   

  	
   

  	
  Title:

  	
  AUTHORIZED SIGNATORY

  	
   

  

 

	
   

  	
  FIRST DOMINION FUNDING II

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID H. LERNER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  DAVID H. LERNER

  	
   

  
	
   

  	
   

  	
  Title:

  	
  AUTHORIZED SIGNATORY

  	
   

  

 

	
   

  	
  FOOTHILL
  CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  FOOTHILL
  INCOME TRUST II L.P.

  
	
   

  	
  By:

  	
  FIT II EP, LLC, its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis R. Ashner

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Dennis R. Ashner

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  	
   

  

 

	
   

  	
  GMAC
  COMMERCIAL CREDIT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  KZH
  ING-1 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

14

 

	
   

  	
  KZH
  ING-2 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  KZH
  ING-3 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  MORGAN
  STANLEY DEAN WITTER PRIME

  
	
   

  	
  INCOME
  TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sheila A. Finnerry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sheila A. Finnerry

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  

 

	
   

  	
  NEMEAN
  CLO, LTD

  
	
   

  	
  By:

  	
  ING Capital Advisors LLC 

  	
   

  
	
   

  	
   

  	
  As Investment Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

	
   

  	
  NORTHWOODS
  CAPITAL, LIMITED

  
	
   

  	
  By:

  	
  Angelo, Gordon & Co., L.P., as Collateral
  Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

15

 

	
   

  	
  TORONTO-DOMINION (NEW YORK), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stacey Malek

  	
   

  
	
   

  	
   

  	
  Name:

  	
  STACEY MALEK

  	
   

  
	
   

  	
   

  	
  Title:

  	
  VICE PRESIDENT

  	
   

  

 

 

[Inamed Third Amendment
Signature Page]

 

16

 

Acknowledged and Consented to:

 

BIODERMIS CORPORATION

BIOENTERICS CORPORATION

BIOPLEXUS CORPORATION

AEI INC, FORMERLY
COLLAGEN AESTHETICS INTERNATIONAL, INC.

COLLAGEN AESTHETICS, INC.

FLOWMATRIX CORPORATION

INAMED DEVELOPMENT
COMPANY

INAMED INTERNATIONAL
CORP.

INAMED JAPAN, INC.

MCGHAN MEDICAL
CORPORATION

MEDISYN TECHNOLOGIES
CORPORATION

 

	
  By:

  	
  /s/ Michael J. Doty

  	
   

  
	
   

  	
  Name:

  	
  Michael J. Doty

  	
   

  
	
   

  	
  Title:

  	
  SENIOR VP & CFOEXHIBIT 10.5

 

Warrant No. 112

INAMED CORPORATION

 

EXECUTIVE OFFICER WARRANT

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT
OR DOCUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 
WITHOUT SUCH REGISTRATION, SUCH SECURITIES MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED AT ANY TIME WHATSOEVER, EXCEPT UPON DELIVERY TO THE COMPANY OF AN
OPTION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED
FOR SUCH TRANSFER OR THE SUBMISSION TO THE COMPANY TO THE EFFECT THAT ANY SUCH
TRANSFER WILL NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS OR ANY RULE OR REGULATION PROMULGATED
THEREUNDER.

 

                This
Warrant (the “Warrant”) is made and entered into at Las Vegas, Nevada on the
date hereinafter set forth by and between INAMED
CORPORATION, a Florida corporation (hereinafter called the
“Company”), and RICHARD G. BABBITT (hereinafter
called the “Holder”).

 

WHEREAS:

 

A.            The
Holder has concurrently herewith signed an Employment Agreement for the
position of President and Chief Executive Officer of the Company; and

 

B.            The
Company wishes to grant the Holder the Warrant which gives the Holder the
right, but not the obligation, to purchase stock in the Company as recognition
of the Holder’s valuable services as President and Chief Executive Officer of
the Company, and the Holder will, in consideration of the receipt of said
Warrant, agree to the terms, conditions and provisions set forth herein.

 

NOW, THEREFORE,
in consideration of the premises, it is agreed as follows:

 

1.             WARRANT. 
Subject to the conditions set forth herein, the Company hereby grants to
the Holder the right, privilege and option to purchase Four Hundred Thousand
(400,000) shares on the Company’s Common Stock (the “Warrant Shares”) at a
price per share (the “Strike Price”) of Three and 525/1000 Dollars ($3.525) in
the manner hereinafter provided, effective as of February 1, 1998 (the “Grant
Date”) to be vested as follows:

 

 

                (a)           Fifty percent (50%) on the first
anniversary of the commencement of the Term of Employment as defined in the
Employment Agreement; and

 

                (b)           Fifty percent (50%) on the second
anniversary of the commencement of the Term of Employment as defined in the
Employment Agreement;

 

unless the Warrant has been terminated
pursuant to the Section 3 hereof and provided,
however, that the Warrant, unless
it has expired or been earlier terminated, shall vest as to all Warrant Shares
(notwithstanding the price of the common stock) upon a change of control of the
Company.  For purposes of this Warrant,
a “change of control” shall be deemed to have occurred if:

 

                                (i)            Any “person” as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) (other than the Corporation, any trustee or other
fiduciary holding securities under an employee benefit plan of the Corporation,
or any corporation owned, directly or indirectly, by the stockholder of the
Corporation in substantially the same proportions as their ownership of stock
of the Corporation). is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the
Corporation representing 20% or more of the combined voting power of the
Corporation’s then outstanding securities;

 

                                (ii)           During any period of two consecutive
years (not including any period prior to the execution of this Agreement),
individuals who at the beginning of such period constitute the Board, and any new
director (other than a director designated by a person who has entered into an
agreement with the Corporation to effect a transaction described in clause (i),
(iii) or (iv) of this Section) whose election by the Board or nomination for
election by the Corporation’s stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved cease for any reason to constitute at least
a majority thereof;

 

                                (iii)          The stockholders of the Corporation
approve a merger or consolidation of the Corporation with any other
corporation, and than (a) a merger or consolidation which would result in the
voting securities of the Corporation outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than 50% of the combined
voting power of the voting securities of the Corporation or such surviving
entity outstanding immediately after such merger or consolidation or (b) a

 

2

 

merger or consolidation effected to implement
a recapitalization of the Corporation (or similar transaction) in which no
“person” (as hereinabove defined) acquires more than 20% of the combined voting
power of the Corporation’s then outstanding securities; or

 

                                (iv)          the stockholders of the Corporation
approve a plan of complete liquidation of the Corporation or an agreement for
the sale or disposition by the Corporation of all or substantially all of the
Corporation’s assets.

 

In the event of any split, combination,
reclassification, or any other extraordinary corporate transaction (including
the issuance of other warrants, options, or convertible securities in one or
more transactions during the term of this Warrant which would have the effect
of increasing the number of shares of Common Stock outstanding after January
30, 1998 by more than 10%), the Strike Price and the number of Warrant Shares
shall be appropriately adjusted.

 

                2.                             METHOD OF EXERCISE.  Warrant Shares purchased under this Warrant
shall, at the time of purchase, be paid for in full, either in cash or through
a “cashless” exercise, whereby in lieu of paying the exercise price in cash,
the Holder may elect to receive a number of shares of Common Stock equal to the
number of such shares originally issuable upon exercise less such number of
shares as have a then current trading price equal to in the aggregate to the
exercise price of the Warrant Shares (based on the average closing bid price of
the Common Stock for the five trading day period immediately prior to the date
of exercise).  To the extent that the
right to purchase Warrant Shares has accrued hereunder, this Warrant may be
exercised, from time to time, by written notice to the Company stating the
number of Warrant Shares with respect to which this Warrant is being exercised
and the time of delivery thereof, which shall be at least fifteen (15) days
after the giving of such notice, unless an earlier date shall have been
mutually agreed upon.  If requested by
the Company, Holder shall provide the Company with an opinion of counsel
satisfactory to the Company that the exercise of the Warrant and the issuance
of the Warrant Shares do not require registration under, and that any such
exercise and issuance will not be in violation of, the Securities Act of 1933,
as amended (“the Act”) or applicable state securities laws or any rule or
regulations promulgated thereunder.

 

                                At
the time specified in such notice, the Company shall, without transfers or
issue tax to the Holder, deliver to him by certified mail, a certificate or
certificates for such Warrant shares, against the payment by the Holder of the
Strike Price, in full, for the number of Warrants Shares to be delivered, by
certified or bank cashier’s check, or the equivalent thereof acceptable to the
Company or through a “cashless” exercise in accordance with the procedures in
the proceeding paragraph; provided,
however, that the time of such
delivery may be postponed by the company for such period as may be required for
it, with reasonable diligence, to comply with any requirements of any state or
federal

 

 

3

 

agency or any securities exchange.  If the Holder fails to accept delivery of
and pay for all or part of the number of Warrant Shares specified in the notice
given by the Holder, upon tender and delivery of said shares shall be
terminated.

 

                3.                             TERMINATION OF WARRANT.  Except as herein otherwise stated, this
Warrant, to the extent not theretofore exercised, shall expire at 5:00 p.m. Las
Vegas, Nevada time on January 31, 2008.

 

                4.                             REPRESENTATIONS AND WARRANTIES OF THE HOLDER.  The Holder hereby warrants and represents to
the Company, as of the date, hereof and as of the date or dates on which any
Warrant Shares are purchased hereunder, as follows:

 

                                                (a)           Holder is an Accredited Investor as
defined in Regulation D promulgated by the Securities and Exchange Commission
under the Act.

 

                                                (b)           Holder is, by reason of Holder’s
business of financial experience, capable of evaluating the merits and risks of
this investment and of protecting the Holder’s own interests in connection with
the Warrant.

 

                                                (c)           In deciding whether to acquire the
Warrant Shares, the Holder has relied, and will rely, exclusively upon
consultations with his legal, financial and tax advisors with respect to the
nature of the Warrant.

 

                                                (d)           Holder understands that neither the
Department of Corporations of the State of Nevada, one the Securities and Exchange
Commission, nor any other governmental agency having jurisdiction over the sale
and issuance of the Warrant Shares, will make any finding or determination
relating to the appropriateness for investment of the Warrant Shares, and that
none of them has or will recommend or endorse the Warrant Shares.

 

                                                (e)           The Holder represents that the
Warrant Shares will be purchased for Holder’s own account for investment and
will not be purchased with a view to the sale or distribution thereof, and that
the Holder has no intention of disturbing or reselling any portion of the
Warrant or the Warrant Shares which Holder is receiving or may purchase.  Holder acknowledges that the Warrant and the
Warrant Shares have not been registered under the Act, and must be held
indefinitely unless subsequently registered under the Act or an exemption for
such registration is available.  The
Holder also acknowledges that Holder is fully aware of the restrictions on
disposing of the Warrant Shares resulting from the provisions of the Act and
the General Rules and Regulations of the Securities and Exchange Commission
thereunder.  Holder further understands
that the Warrant Shares have not been, and will not be, qualified under
applicable state securities laws.

 

 

4

 

                                                (f)            Holder, if requested by the
Company’s underwriters from time to time, will execute “lock-up” agreements as
requested, relating to the Warrant and the Warrant Shares.

 

                                                (g)           Holder recognizes that “stop
transfer” instructions will be issued against any stock certificates under this
Warrant and that a restrictive legend that addresses acquisition for
investment, subject to Rule 144, will be placed on the stock certificate for
the securities.

 

                5.             RESTRICTIONS
ON ISSUANCE OF SHARES.  The
Company shall not be obligated to sell and issue any shares pursuant to this
Warrant, unless permission to issue said shares has first been obtained from
the Commissioner of Corporations of the State of Nevada, if required, and
further, unless the shares with respect to which this Warrant is exercised are,
at the time, effectively registered, or exempt from registration, under the
Securities Act of 1933, as amended.  The
Company may require an opinion of counsel acceptable to the Company to the
effect of any exemption.

 

                6.             TRANSFERABILITY
OF WARRANT; RIGHTS PRIOR TO EXERCISE.

During the Holder’s lifetime, the Warrant
hereunder shall be exercisable only by the Holder, or any guardian or legal
representative of the Holder in accordance with the Employment Agreement.  In the event of (a) any attempt by the
Holder to alienate, assign, pledge, hypothecate or otherwise dispose of the
Warrant, except as provided for herein, or (b) the levy of any attachment,
execution or similar process upon the rights or interest hereby conferred, the
Company may terminate the Warrant by notice to the Holder and it shall
thereupon become null and void.

 

Holder shall have no rights
as a shareholder of shares subject to this Warrant until payment of the Strike
Price pursuant to Section 2 and the delivery of such shares herein provided.

 

                7.             REGISTRATION
RIGHTS.  The Holder shall
have the same registration rights under Form S-8 or otherwise as may be
generally made available from time to time to officers and employees of the
Company.

 

                8.             SERVICE
NOT AFFECTED.  The granting
of the Warrant or its exercise shall not be constructed as granting to the
Holder any right with respect to the continuance of the Employment Period with
the Company.  Except as may otherwise be
limited by a written agreement between the Company and the Holder, the right of
the company to terminate as defined in the Employment Agreement is specifically
reserved by the company, as the Company or on behalf of the Company (whichever
the case may be), and acknowledged by the Holder.

 

                9.             BINDING
EFFECT.  This Warrant shall
be binding upon the heirs, executors, administrators and successors of the
parties hereto.

 

 

5

 

                                IN WITNESS WHEREOF, the parties have caused
this Warrant Agreement to be executed on this           day of               
, 1998

 

 

	
  “COMPANY”

  	
   

  	
  “HOLDER”

  
	
   

  	
   

  	
   

  
	
  INAMED
  CORPORATION

  	
   

  	
  RICHARD
  G. BABBITT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Carol A. Brennan

  	
   

  	
  Signature

  
	
  Corporate Secretary

  	
   

  	
   

  
	
   

  	
   

  	
  Social Security Number

  

 

	
  NUMBER OF WARRANTS: 
  Four Hundred Thousand (400,000) EXACTLY

  

 

	
  STRIKE PRICE:  Three
  and 525/1000 Dollars ($3.525) PER SHARE

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