UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 9)*
INAMED Corporation
(Name of Issuer)
Common Stock, Par Value $ .01
(Title of Class of Securities)
453235103
(CUSIP NUMBER)
Donald K. McGhan
3800 Howard Hughes Pkwy., Suite 1800, Las Vegas, NV 89109 (702) 791-2910 (Name,
address and telephone number of person authorized to receive notices and
communications)
February 17, 1999
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [ ]. A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
NOTE: Six copies of this statement, including all exhibits, shoudl be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934
("Act") or otherwise subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act (however, see the Notes).
<PAGE>
13D
CUSIP No. 453235103
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Donald K. McGhan
- --------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
(b) [X]
- --------------------------------------------------------------------------------
(3) SEC USE ONLY
- --------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
PF & OO
- --------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER
635,604
SHARES ---------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY -0-
---------------------------------------------------------
OWNED BY (9) SOLE DISPOSITIVE POWER
635,604
EACH ---------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
REPORTING -0-
---------------------------------------------------------
PERSON WITH
- --------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,134,132
- --------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
- --------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.69%
- --------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
13D
CUSIP No. 453235103
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Shirley M. McGhan
- --------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
(b) [X]
- --------------------------------------------------------------------------------
(3) SEC USE ONLY
- --------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
PF & OO
- --------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER
207,310
SHARES --------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY -0-
--------------------------------------------------------
OWNED BY (9) SOLE DISPOSITIVE POWER
207,310
EACH --------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
REPORTING -0-
--------------------------------------------------------
PERSON WITH
- --------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
207,310
- --------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
- --------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.81%
- --------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
13D
CUSIP No. 453235103
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
McGhan Management Corporation
- --------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
(b) [X]
- --------------------------------------------------------------------------------
(3) SEC USE ONLY
- --------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada, USA
- --------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES ---------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY 87,485
---------------------------------------------------------
OWNED BY (9) SOLE DISPOSITIVE POWER
-0-
EACH ---------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
REPORTING 87,485
---------------------------------------------------------
PERSON WITH
- --------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
87,485
- --------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
- --------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.77%
- --------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
13D
CUSIP No. 453235103
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
McGhan Management Limited Partnership
- --------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
(b) [X]
- --------------------------------------------------------------------------------
(3) SEC USE ONLY
- --------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada, USA
- --------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES ----------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY 197,280
----------------------------------------------------------
OWNED BY (9) SOLE DISPOSITIVE POWER
-0-
EACH ----------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
REPORTING 197,280
----------------------------------------------------------
PERSON WITH
- --------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
197,280
- --------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
- --------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.72%
- --------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
13D
CUSIP No. 453235103
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
International Integrated Industries L.L.C.
- --------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
(b) [X]
- --------------------------------------------------------------------------------
(3) SEC USE ONLY
- --------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada, USA
- --------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES ----------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY 346,453
----------------------------------------------------------
OWNED BY (9) SOLE DISPOSITIVE POWER
-0-
EACH ----------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
REPORTING 346,453
----------------------------------------------------------
PERSON WITH
- --------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
346,453
- --------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
- --------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.03%
- --------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
13D
CUSIP No. 453235103
- --------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Medical Device Alliance Inc.
- --------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
(b) [X]
- --------------------------------------------------------------------------------
(3) SEC USE ONLY
- --------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada, USA
- --------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER
-0-
SHARES ----------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY 660,000
----------------------------------------------------------
OWNED BY (9) SOLE DISPOSITIVE POWER
-0-
EACH ----------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
REPORTING 660,000
----------------------------------------------------------
PERSON WITH
- --------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
660,000
- --------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
- --------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.77%
- --------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
This Amendment No. 9 to the statement on Schedule 13D filed on behalf of Donald
K. McGhan, Shirley M. McGhan, International Integrated Industries, L.L.C.,
McGhan Management Corporation, McGhan Management Limited Partnership, and
Medical Device Alliance Inc. (collectively the "Reporting Persons") dated
October 10, 1985, as amended by Amendment No. 1 filed on August 28, 1991,
Amendment No. 2 filed on January 24, 1994, Amendment No. 3 filed on August 30,
1994, Amendment No. 4 filed on January 27, 1997, Amendment No. 5 filed on May
23, 1997, Amendment No. 6 filed on July 14, 1997, Amendment No. 7 filed on
January 15, 1998, and Amendment No. 8 filed on February 24, 1999 (the "Schedule
13D"), relates to the common stock of Inamed Corporation, a Delaware corporation
(the "Company"). Capitalized terms used but not otherwise defined herein shall
have the meanings ascribed to such terms in the Schedule 13D. The Schedule 13D
is hereby amended and supplemented as follows:
ITEM 1. Security and Issuer.
No Change.
ITEM 2. Identity and Background.
No Change.
ITEM 3. Source and Amount of Funds or Other Consideration.
International Integrated Industries, L.L.C. ("3I") reported owning 181,554
shares in Amendment No. 7 which included 16,052 shares that would result from
the conversion of notes and warrants to purchase 8,571 shares of common stock at
an exercise price of $7.50 per share. The Issuer subsequently issued 3I 470
additional shares as a result of the above referenced notes having a face value
of 103% upon conversion. 3I reported in Amendment No. 6 that it had purchased a
total of 12,425 shares a private transaction priced at $5.00 per share. On or
about June 24, 1997, 3I received all the original certificates but only received
properly executed stock powers for 2,425 of such shares. 3I never received the
executed stock powers for the other 10,000 shares. 3I has subsequently returned
the original certificate for 10,000 shares of common stock, thus canceling the
acquisition. As reported in Amendment No. 8, 3I owned on February 24, 1999,
346,453 shares of common Stock and warrants at $7.50 per share to purchase a
total of 8,571 shares of common stock.
2
<PAGE>
ITEM 4. Purpose of Transaction.
3I intends to continually review the Company's business affairs and financial
position and future prospects as well as conditions in the securities markets
and general economic and industrial conditions. Based on such evaluation and
review, and other factors (including, without limitation, the attitude of the
Board of Directors and management of the Company), 3I will continue to consider
various alternative courses of action and will in the future take such actions
as they determine appropriate under the circumstances existing from time to
time. To the extent consistent with the standstill agreement (the "Standstill
Agreement") entered into in connection with the Resolution which was previously
incorporated into this Schedule 13D by reference to Exhibit 99.3 to the
Company's Current Report on Form 8-K filed on July 14, 1998 (SEC File No.
001-09741), such actions may include seeking representation on the Board of
Directors of the Company making recommendations to members of management
concerning various business strategies, acquisitions, dividend policies and
other matters, seeking to acquire control of the Company through a proxy
solicitation, tender offer, exchange offer or otherwise, or such other actions
as the Reporting Person may deem appropriate. The Standstill Agreement presently
prohibits or restricts most such actions. To the extent consistent with the
Standstill Agreement, such actions may involve the purchase of additional shares
or, alternatively, may involve the sale of all or a portion of the shares held
by one or more of the Reporting Persons in the open market or in privately
negotiated transactions.
ITEM 5. Interest in Securities of the Issuer.
The following is added to Item 5:
(a) As of the date hereof Mr. McGhan beneficially owned 635,604 shares which he
believes to be 5.56% of the outstanding class of shares of the Issuer.
As of the date hereof, Mr. McGhan's wife, Shirley M. McGhan beneficially owned
207,310 shares of common stock directly in her own account which she believes to
be 1.81% of the outstanding class of shares of the Issuer.
Mr. McGhan disclaims beneficial ownership of the shares owned by Mrs. McGhan.
Mrs. McGhan disclaims beneficial ownership of the shares owned by Mr. McGhan.1
As of the date hereof McGhan Management Corporation beneficially owned 87,485
shares of common stock which it believes to be 0.77% of the outstanding class of
shares of the Issuer.
McGhan Management Corporation engaged in the following transactions in the
Company's common stock since the filing of Amendment No. 8.:
February 17, 1999.................Sold 500 shares at $13.500/share
February 23, 1999.................Sold 1,000 shares at $13.000/share
March 4, 1999.....................Sold 1,000 shares at $13.000/share
March 4, 1999.....................Sold 1,000 shares at $13.250/share
March 5, 1999.....................Sold 1,500 shares at $13.250/share
March 8, 1999.....................Sold 1,000 shares at $13.250/share
March 10, 1999....................Sold 1,000 shares at $13.500/share
March 10, 1999....................Sold 1,000 shares at $14.250/share
March 10, 1999....................Sold 1,000 shares at $14.125/share
As of the date hereof, McGhan Management Limited Partnership beneficially owned
197,280 shares of common stock which it believes to be 1.72% of the outstanding
class of the stock of the issuer.
As of the date hereof, 3I beneficially owned 346,453 shares of common stock,
which it believes to be 3.03% of the entire outstanding class of shares of the
Issuer excluding 3I's beneficial ownership of warrants to purchase 8,571 shares
of common stock at an exercise price of $7.50 per share.
3
<PAGE>
As of the date hereof, Medical Device Alliance Inc. owned 660,000 shares which
it believes to be 5.77% of the entire outstanding class of shares of the Issuer.
Such beneficial ownership is calculated pursuant to Rule 13d-3 and excludes
MDA's beneficial ownership of a warrant to purchase 260,000 shares of common
stock at an exercise price of $12.40 per share. Such warrant may only be
exercised, for so long as such exercise would not cause all Reporting Persons to
own in aggregate more than 20% of the outstanding common stock of the issuer.
The warrant is not, therefore, presently exercisable, nor would it be
exercisable within 60 days of the date hereof. The warrant expires at 5:00 p.m.
Pacific Daylight Time of July 8, 2002.
(c) Mr. McGhan has the sole power to vote, or to direct the vote, and the sole
power to dispose, or to direct the disposition of the shares owned by him
directly, and disclaims any power to vote or direct the voting or to dispose of
any of the shares of common stock owned by Mrs. McGhan, subject to Nevada
Community Property laws as applicable.
Mr. McGhan is the Chairman of the Board and the majority shareholder of McGhan
Management Corporation and, as such, participates in voting on the directives
that the Board of Directors authorizes for the Secretary of McGhan Management
Corporation to act upon to vote, or to direct the vote, and to direct the
disposition of the shares owned by McGhan Management Corporation.
Mr. McGhan is the General Manager and the sole General Partner of McGhan
Management Limited Partnership and, as such, participates in decisions for
McGhan Management Limited Partnership to direct the disposition of the shares
owned by McGhan Management Limited Partnership.
Mr. McGhan is the Managing Member of International Integrated Industries, L.L.C.
and, as such, participates in voting on the directives that the Board of Members
authorizes for the Secretary of International Integrated Industries, L.L.C. to
act upon to vote, or to direct the vote, and to direct the disposition of the
shares owned by International Integrated Industries, L.L.C.
Mr. McGhan is a Director and Chairman of the Board, President and Chief
Executive Officer of MDA and, as such, participates in voting on the directives
that the Board of Directors authorize for the officers of MDA to act upon and
vote, or to direct a vote, and to direct the disposition of the shares owned by
MDA. Mr. McGhan does not have the power as a officer, director or Chairman to
direct such vote or disposition.
(c) The responses to Items 3 and 4 hereby incorporated by this reference.
4
<PAGE>
(d) Mr. McGhan has the sole power to receive or direct the receipt of dividends
from, or the proceeds from the sale of, the shares of common stock owned by him
directly and disclaims any power to receive or direct the receipt of dividends
or proceeds of sale relating to the shares of common stock owned by Mrs. McGhan.
The Board of Directors of McGhan Management Corporation has the authority to
direct the Secretary of McGhan Management Corporation to receive or direct the
receipt of dividends from, or the proceeds from the sale of, the shares of
common stock owned directly by McGhan Management Corporation. Mr. McGhan is the
Chairman of the Board and the majority Shareholder of McGhan Management
Corporation.
The General Manager and General Partner of McGhan Management Limited Partnership
has the authority to receive or direct the receipt of dividends from, or the
proceeds from the sale of, the shares of common stock owned directly by McGhan
Management Limited Partnership. Mr. McGhan is the sole General Partner of McGhan
Management Limited Partnership.
The Managing Member of International Integrated Industries, L.L.C. has the
authority to receive or direct the receipt of dividends from, or the proceeds
from the sale of, the shares of common stock owned directly by International
Integrated Industries, L.L.C. Mr. McGhan is the Managing Member of
International Integrated Industries, L.L.C.
The Board of Directors of MDA has the authority to direct the officers of MDA to
receive or direct the receipt of dividends from, or the proceeds from the sale
of, the shares of common stock owned directly by MDA. Mr. McGhan is President,
Chief Executive Office, a director and Chairman of the Board of MDA.
(e) Not applicable.
ITEM 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
See Exhibit 99.3 to the company's Current Report on From 8-K filed July 14, 1998
(SEC File No. 001-09741) which is incorporated herein by reference.
ITEM 7. Material to be Filed as Exhibits.
See Exhibit Index at page 9.
5
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
DATED: March 19, 1999
/s/ Donald K. McGhan
----------------------------------
Donald K. McGhan, Individually
/s/ Shirley M. McGhan
----------------------------------
Shirley M. McGhan, Individually
McGHAN MANAGEMENT CORPORATION
By: /s/ Donald K. McGhan
----------------------------------
Donald K. McGhan, Chairman
McGHAN MANAGEMENT LIMITED PARTNERSHIP
By: /s/ Donald K. McGhan
----------------------------------
Donald K. McGhan, General Partner
INTERNATIONAL INTEGRATED INDUSTRIES, L.L.C.
By: /s/ Donald K. McGhan
----------------------------------
Donald K. McGhan, Managing Member
MEDICAL DEVICE ALLIANCE INC.
By: /s/ Donald K. McGhan
----------------------------------
Donald K. McGhan
Chief Executive Officer and President
6
<PAGE>
Exhibit Index
Exhibit No. Description
- --------------- ----------------------
10.2 Standstill Agreement (incorporated by reference to Exhibit
99.3 to Form 8-K SEC File No. 001-09741, filed on July 14,
1998.
- --------
1 Does not include (a) 10,900 shares of which Nikki M. Moseley, a
Director and Officer of McGhan Management Corporation, a Limited Partner of
McGhan Management Limited Partnership, and daughter of Mr. McGhan is beneficial
owner; (b) 46,314 shares held of record by a Living Trust established for the
benefit of Nikki M. Moseley; and (c) 10,350 shares held of record by Garrett M.
Wilson, Mr. McGhan's grandson and Mrs. Moseley's son.
7
<PAGE>
