Document:

Exhibit 10.3

 

TRANSACTION ACCOMMODATION
AGREEMENT

 

This TRANSACTION ACCOMMODATION AGREEMENT (the “Agreement”), dated as of March 21, 2005, is entered
into by International Integrated Incorporated, a British Virgin Islands
corporation (“Company”), MediCor
Ltd., a Delaware corporation (“MediCor”)
and Hutchison International, Inc., a Louisiana corporation (“Hutchison”).

 

Recitals

 

WHEREAS Company and Hutchison have entered into that
certain Asset Purchase Agreement, dated April 19, 2002 (as amended
pursuant to Amendment No. 1 to Asset Purchase Agreement dated as of November 20,
2002 and Amendment No. 2 to Asset Purchase Agreement dated as of October 16,
2003, the “Original Agreement”).

 

WHEREAS Company and Hutchison are concurrently
herewith entering into certain agreements with Biosil
Limited (the “Biosil Agreements”).

 

WHEREAS Company and Hutchison desire in this Agreement
to make certain amendments and supplements to the Original Agreement to
accommodate the transactions contemplated in the Biosil
Agreements.

 

Agreement

 

NOW, THEREFORE, in consideration of the foregoing and
of the covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.             ISSUANCE OF COMMON STOCK; PROMISSORY NOTE

 

1.1           Common Stock.  On or before March 25, 2005, MediCor shall issue to Hutchison or its assignees 366,667
shares of MediCor’s common stock, par value $.001 per
share (the “Common Shares”).  MediCor will
register such shares in MediCor’s first registration
statement on Form S-3 filed with the Securities and Exchange
Commission to register shares of its common stock for resale by holders
thereof.  The Common Shares shall
substitute and replace the shares of stock of MediCor
issuable under the Original Agreement, which shares
shall no longer be issuable.

 

1.2           Promissory Note.  Concurrently herewith, Company shall issue to
Hutchison a promissory note in the principal amount of $250,000, payable on or
before March 25, 2005 (the “Note”).

 

1.3           Put Right.  For the period commencing on the 30th
day following the date MediCor’s common stock is
listed on the American Stock Exchange (or May 15, 2005 if such listing has
not occurred by such date) and ending on the 20th day thereafter,
Hutchison may put to MediCor 33,333 of the Common
Shares at an aggregate price of $250,000. 
If so put, the closing of the purchase shall occur no later than the
fifth business day following the date Hutchison gives MediCor
notice of exercise of the put.

 

1.4           Stock Re-Valuation.  If the common stock of MediCor
has a value of less than $7.50 per share as calculated using the stock
valuation period and methodology set forth in the Original Agreement (the “Calculated Value”), then MediCor
shall issue to Hutchison additional shares of MediCor
common stock such that the aggregate value of the shares so issued, when added
to 333,334 shares, with

 

 

all such shares being valued at
the Calculated Value, equals $2,500,000.  
Such issuance shall occur within five business days of the end of the
period used to calculate the Calculated Value.

 

1.5           Indemnity.   Company agrees to indemnify and hold
harmless Hutchison, and each and all of its directors, officers, employees and
agents, from and against any and all costs, expenses, liabilities, claims and
obligations arising from or connected with the Biosil
Agreements.  The directors, officers,
employees and agents of Hutchison shall be express third-party beneficiaries of
this indemnity.

 

1.6           Closing.  The Closing under the Original Agreement
shall occur on the date hereof.  Except as otherwise provided in this Agreement, the parties shall
make the Closing deliveries as soon as practicable.

 

2.             REPRESENTATIONS AND WARRANTIES

 

2.1           Representations and Warranties of
Company.  Company and MediCor hereby severally make the following representations
and warranties with respect to itself to and in favor of Hutchison as of the
date hereof:

 

2.1.1        Authorization and Enforcement.  (i)  It has
all requisite corporate power and authority to enter into and perform this
Agreement and each of the other documents related hereto (collectively, with
this Agreement, the “Transaction Documents”)
(ii) the execution and delivery of each of the Transaction Documents, and
the consummation by it of the transactions contemplated hereby and thereby,
including the issuance of the Common Shares (subject to necessary due
authorization by necessary board action), and no further consent or
authorization of it or its board of directors (or any committee or subcommittee
thereof) or stockholders is required, (iii) each of the Transaction
Documents to which it is a party and the Common Shares has been or will be duly
executed and delivered by it, (iv) each of the Transaction Documents
constitutes or, in the case of the Common Shares, upon issuance thereof as
provided in this Agreement, will constitute a valid and binding obligation of
it, enforceable against it in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of creditors’ rights and remedies or by
other equitable principles of general application, and (v) the Common
Shares will be duly authorized and, upon issuance thereof in accordance with
this Agreement, will be validly issued, fully paid and non-assessable, free and
clear of any and all liens, claims and encumbrances.

 

2.1.2        No Conflicts.  The execution, delivery and performance of
each of the Transaction Documents by it and the consummation by it of the
transactions contemplated hereby and thereby, including the issuance of the
Common Shares, will not:

 

(a)           conflict
with, or result in a default (or an event that would constitute a default but
for any requirement of notice or lapse of time or both) under, any document,
agreement or other instrument to which it is a party or by which it is bound,
or result in the creation or imposition of any lien, charge or encumbrance on
any of its properties pursuant to (i) any law or
regulation to which it or any of its property is subject, or (ii) any
judgment, order or decree to which it is bound or any of its property is
subject;

 

(b)           result in termination or any impairment of any permit,
license, franchise, contractual right or other authorization of it; or

 

(c)           violate any law, order, judgment, rule, regulation, decree
or ordinance to which it is subject or by which it is bound.

 

2

 

2.2           Representations and Warranties of
Hutchison.  Hutchison hereby makes
the following representations and warranties to and in favor of Company and MediCor as of the date hereof:

 

2.2.1        Authorization and Enforcement.  (i)  Hutchison
has all requisite power and authority to enter into and perform each of the
Transaction Documents, (ii) the execution and delivery of each of the
Transaction Documents, and the consummation by Hutchison of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
corporate action, and no further consent or authorization of Hutchison or its
directors (or any committee or subcommittee thereof) or shareholders is
required, (iii) each of the Transaction Documents to which it is a party
has been duly executed and delivered by Hutchison and (iv) each of the
Transaction Documents constitutes or will constitute a valid and binding
obligation of Hutchison, enforceable against Hutchison in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally the enforcement of creditors’ rights and remedies or
by other equitable principles of general application.  Notwithstanding the foregoing, except with
respect to the Biosil Agreements being signed and
delivered concurrently herewith, no representation or warranty is made by
Hutchison with respect to any agreements between Hutchison and Biosil.

 

2.2.2        No Conflicts.  To the knowledge of Hutchison without
additional inquiry, and except as contemplated in the Biosil
Agreements, the execution, delivery and performance of each of the Transaction
Documents by Hutchison and the consummation by Hutchison of the transactions
contemplated hereby and thereby will not:

 

(a)           conflict
with, or result in a default (or an event that would constitute a default but
for any requirement of notice or lapse of time or both) under, any document,
agreement or other instrument to which Hutchison is a party or by which
Hutchison is bound, or result in the creation or imposition of any lien, charge
or encumbrance on any of Hutchison’s properties pursuant to (i) any law or regulation to which Hutchison or any of
its property is subject, or (ii) any judgment, order or decree to which
Hutchison is bound or any of its property is subject;

 

(b)           result in termination or any impairment of any permit,
license, franchise, contractual right or other authorization of Hutchison; or

 

(c)           violate any law, order, judgment, rule, regulation, decree
or ordinance to which Hutchison is subject or by which Hutchison is bound.

 

Notwithstanding the foregoing, it is expressly agreed
that should it be determined that the undertakings contemplated give rise to an
event of default under the Biosil Agreements, which
is denied by both parties hereto, such shall not be deemed to be a breach of
any representation or warranty by Hutchison.

 

2.2.3        Restricted Securities.  Hutchison understands and acknowledges that:

 

(a)           the
sale of the Common Shares has not been registered under the Securities Act of
1933, as amended (the “Securities Act”)
and the Common Shares must be held indefinitely unless the Common Shares are
subsequently registered under the Securities Act or an exemption from such
registration is available, MediCor being under the
obligation set forth in Section 1.1 above to register the Common Shares;
Hutchison is familiar with the provisions of Rule 144, promulgated under
the Securities Act, which, in substance, permits limited public resale of “restricted
securities” acquired, directly or indirectly from the issuer thereof, in a
non-public offering, subject to the satisfaction of certain conditions;

 

3

 

(b)           subject to registration as provided herein, the certificates
representing the Common Shares will be stamped with the following legend:

 

THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SAID REGISTRATION IS NOT REQUIRED.

 

(c)           MediCor will make a notation in its records and with any
transfer agent for its common stock of the aforementioned restrictions on
transfer and legends.

 

2.2.4        Accredited Investor Status;
Sophisticated Purchaser.  Hutchison
is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D under the Securities Act. 
Hutchison has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of an investment
in the Common Shares.

 

2.2.5        Information.  Hutchison has reviewed all of such
information relating to the business, finances and operations of MediCor as has been requested by Hutchison.

 

2.2.6        Investment Representation.  Hutchison is acquiring the Common Shares for
its own account and not with a view to distribution in violation of any
securities laws.  Hutchison has been
advised and understands that the Common Shares have not been registered under
the Securities Act or under the “blue sky” laws of any jurisdiction and the
Common Shares may be resold only if registered pursuant to the provisions of
the Securities Act or if an exemption from registration is available.

 

2.2.7        Reliance by MediCor.  Hutchison has been advised and understands
that the Common Shares are being or will be offered and issued in reliance on a
transactional exemption from the registration requirements of federal and state
securities laws and that Hutchison is relying upon the truth and accuracy of
the representations, warranties, agreements, acknowledgments and understandings
of Hutchison set forth in this Section 2.2 in order to determine
the applicability of such exemptions and the suitability of Hutchison to
acquire the Common Shares.

 

3.             CONDITIONS TO THE OBLIGATIONS OF COMPANY AND MEDICOR.  The
obligations hereunder of Company and of MediCor,
including issuance of the Note and issuance of the Common Shares, are subject
to Hutchison’s signing and delivery of the Biosil
Agreements and the following conditions. These conditions are for Company’s and
MediCor’s sole benefit and may be waived by Company
and MediCor at any time in their sole discretion.

 

3.1           Accuracy of Hutchison’s
Representations and Warranties.  The
representations and warranties of Hutchison will be true and correct in all
material respects.

 

3.2           Performance.  Hutchison shall have performed all agreements
and satisfied all conditions required to be performed or satisfied by it,
including the delivery of any necessary bills of sale, assignments or other
conveyance documents.

 

3.3           No Injunction.  No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental

 

4

 

authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

4.             CONDITIONS TO THE OBLIGATIONS OF HUTCHISON.  The obligation hereunder of Hutchison to
purchase the Common Shares is subject to satisfaction, of each of the
applicable conditions set forth below. 
These conditions are for the sole benefit of Hutchison and may be waived
by Hutchison at any time in its sole discretion.

 

4.1           Accuracy of Representations and
Warranties.  The representations and
warranties of Company and MediCor will be true and
correct in all material respects.

 

4.2           Performance.  Company and MediCor
shall each have performed all agreements and satisfied all conditions required
to be performed or satisfied by it, including the issuance and sale of the
Common Shares to Hutchison and the delivery of the certificates therefor and the issuance and delivery of the Note to
Hutchison.

 

4.3           No Injunction.  No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

5.             MISCELLANEOUS

 

5.1           Governing Law.  This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Delaware without regard
to the principles of conflict of laws.

 

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

 

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

 

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

 

5.5           Entire Agreement; Amendments;
Waivers.  This Agreement supersedes
all other prior oral or written agreements between the parties hereto, and this
Agreement and the instruments referenced herein (including the other
Transaction Documents) contain the entire understanding of the parties with
respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, none of the parties makes any representation,
warranty, covenant or undertaking with respect to such matters.  No provision of this Agreement may be amended
other than by an instrument in writing signed by the parties, and no provision
hereof may be waived other than by an instrument in writing signed by the party
against whom enforcement is sought.

 

5.6           Notices.  Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing, must be delivered by (i)

 

5

 

courier, mail or hand delivery or
(ii) facsimile, and will be deemed to have been delivered upon
receipt.  The addresses and facsimile
numbers for such communications shall be as delivered by each party in writing
at the closing.  Each party shall provide
five (5) days prior written notice to the other party of any change in
address, telephone number or facsimile number. 
Written confirmation of receipt (a) given by the recipient of such
notice, consent, waiver or other communication, (b) mechanically or
electronically generated by the sender’s facsimile machine containing the time,
date, recipient facsimile number and an image of all or part of the first page of
such transmission or (c) provided by a nationally recognized overnight
delivery service, shall be rebuttable evidence of
personal service, receipt by facsimile or receipt from a nationally recognized
overnight delivery service in accordance with clause (i) or
(ii) above, respectively.

 

5.7           Successors and Assigns.  Except as otherwise provided herein, this
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns, including any permitted assignee.  No party hereto shall not assign this
Agreement or any rights or obligations hereunder without the prior written consent
of the other parties, provided, however, that any such assignment shall not release the
assignor from its obligations hereunder unless such obligations are expressly
assumed by the assignee.

 

5.8           No Third-Party Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and
is not for the benefit of, nor may any provision hereof be enforced by, any
other person.

 

5.9           Survival.  The representations, warranties and
agreements of the parties contained in the Agreement shall survive the closing.

 

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

 

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

 

5.12         Remedies.  Each party shall have all rights and remedies
set forth in this Agreement and all rights and remedies which such parties have
been granted at any time under any other agreement or contract and all of the
rights which such parties have under any law. 
Any person having any rights under any provision of this Agreement shall
be entitled to enforce such rights specifically (without posting a bond or
other security), to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights granted by law.  Each party without prejudice may withdraw,
revoke or suspend its pursuit of any remedy at any time prior to its complete
recovery as a result of such remedy.

 

5.13         Fees and Expenses.  Each party shall pay its fees and expenses in
connection with the transactions contemplated by this Agreement.

 

6

 

IN
WITNESS WHEREOF, the undersigned parties have executed this Agreement, through
their duly authorized offices, as of the date first written above.

 

	
   

  	
  INTERNATIONAL INTEGRATED INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEDICOR
  LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HUTCHISON INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

7EXHIBIT 10.1(bv)

 

Non-employee Director Compensation

Effective April 27, 2005

 

	
  Annual
  Retainer (other than Chairman and Vice Chairman)

  	
   

  	
  $

  	
  26,000

  	
   

  
	
  Chairman Annual Retainer

  	
   

  	
  $

  	
  80,000

  	
   

  
	
  Vice Chairman Annual Retainer

  	
   

  	
  $

  	
  40,000

  	
   

  
	
  Committee Member Annual Retainer (including
  Chair)

  	
   

  	
  $

  	
  7,000

  	
   

  
	
  Board Meeting Fee

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Telephonic Board Meeting Fee

  	
   

  	
  $

  	
  750

  	
   

  
	
  Committee Meeting Fee

  	
   

  	
  None

  	
   

  
	
  Annual Equity Grant (1)

  	
   

  	
  1,500 shares of Restricted Stock

  	
   

  

 

(1)          The
Restricted Stock vests after three years, but the directors are entitled to
receive dividends and may exercise full voting rights with respect to the
Restricted Stock during the restricted period.

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]