<PAGE>
SCHEDULE 13D
(Rule 13d-101)
Information to be included in Statements Filed Pursuant to Rule 13d-1(a) and
Amendments Thereto Filed Pursuant to Rule 13d-2(a)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Under the Securities Exchange Act of 1934
(Amendment No. ____)*
MediChem Life Sciences, Inc.
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
584662-10-0
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(CUSIP Number)
Robert W. Daly
36 Washington Street, Suite 170, Wellesley Hills, MA 02481-1904
(781) 237-6910
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
October 31, 2000
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(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 that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box. [_]
Note. Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Rule 13d-7 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 in the remainder of this cover page shall not be
deemed to be "filed" for the purpose 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).
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SCHEDULE 13D
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CUSIP NO. 584662-10-0 PAGE 2 OF 10 PAGES
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NAME OF REPORTING PERSON/I.R.S. IDENTIFICATION NOS. OF ABOVE
1 PERSONS (ENTITIES ONLY)
MedEquity Investors, LLC
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
2
(See Instructions) (b) [X]
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SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC, AF, SC
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e)
5
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Massachusetts
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SOLE VOTING POWER
7
NUMBER OF
6,373,525 Shares
SHARES -------------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 423,870 Shares
-------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
6,373,525 Shares
PERSON -------------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
423,870 Shares
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
6,797,395 Shares
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
(See Instructions)
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
26.7%
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TYPE OF REPORTING PERSON (See Instructions)
14
OO
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<PAGE>
SCHEDULE 13D
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CUSIP NO. 584662-10-0 PAGE 3 OF 10 PAGES
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NAME OF REPORTING PERSON/I.R.S. IDENTIFICATION NOS. OF ABOVE
1 PERSONS (ENTITIES ONLY)
Robert W. Daly
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
2
(See Instructions) (b) [X]
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SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
AF, SC, PF
--------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e)
5
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States of America
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SOLE VOTING POWER
7
NUMBER OF
6,797,395 Shares
SHARES -------------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0 Shares
-------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
6,797,395 Shares
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0 Shares
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
0 Shares
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
(See Instructions) X
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.0%
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TYPE OF REPORTING PERSON (See Instructions)
14
IN
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<PAGE>
SCHEDULE 13D
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CUSIP NO. 584662-10-0 PAGE 4 OF 10 PAGES
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NAME OF REPORTING PERSON/I.R.S. IDENTIFICATION NOS. OF ABOVE
1 PERSONS (ENTITIES ONLY)
Peter R. Gates
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
2
(See Instructions) (b) [X]
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SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
AF, SC, PF
--------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e)
5
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States of America
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SOLE VOTING POWER
7
NUMBER OF
0 Shares
SHARES -------------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 6,797,395 Shares
-------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0 Shares
PERSON -------------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
6,797,395 Shares
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
0 Shares
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
(See Instructions) X
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.0%
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TYPE OF REPORTING PERSON (See Instructions)
14
IN
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<PAGE>
SCHEDULE 13D
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CUSIP NO. 584662-10-0 PAGE 5 OF 10 PAGES
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NAME OF REPORTING PERSON/I.R.S. IDENTIFICATION NOS. OF ABOVE
1 PERSONS (ENTITIES ONLY)
Peachtree Medichem Partners, LLC
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
2
(See Instructions) (b) [X]
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
AF, SC
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e)
5
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
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SOLE VOTING POWER
7
NUMBER OF
2,342,028 Shares
SHARES -------------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0 Shares
-------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
2,342,028 Shares
PERSON -------------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0 Shares
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
2,342,028 Shares
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
(See Instructions)
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
9.2%
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TYPE OF REPORTING PERSON (See Instructions)
14
OO
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<PAGE>
SCHEDULE 13D
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CUSIP NO. 584662-10-0 PAGE 6 OF 10 PAGES
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NAME OF REPORTING PERSON/I.R.S. IDENTIFICATION NOS. OF ABOVE
1 PERSONS (ENTITIES ONLY)
ChaseMedichem Partners, LLC
--------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
2
(See Instructions) (b) [X]
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
AF, SC
--------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e)
5
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
--------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
4,031,497 Shares
SHARES -------------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0 Shares
-------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
4,031,497 Shares
PERSON -------------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0 Shares
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
4,031,497 Shares
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
(See Instructions)
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
15.8%
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TYPE OF REPORTING PERSON (See Instructions)
14
OO
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<PAGE>
ITEM 1. SECURITY AND ISSUER.
This statement on Schedule 13D (this "Statement") of MedEquity Investors,
LLC, a Delaware limited liability company ("MedEquity"), relates to the common
stock, par value $.01 per share (the "Common Stock"), of MediChem Life Sciences,
Inc., a Delaware corporation (the "Company"), which has its principle executive
offices at 12305 South New Avenue, Lemont, Illinois 60439.
On October 31, 2000, the Company consummated its initial public offering of
6,400,000 shares of Common Stock (the "Initial Public Offering") for $7.00 per
share, less underwriting discounts and commissions. The disclosure in this
Statement reflects the completion of the Initial Public Offering.
ITEM 2. IDENTITY AND BACKGROUND.
(a), (b), (c) and (f). This Statement is being filed by MedEquity,
ChaseMedichem Partners, LLC, a Delaware limited liability company
("ChaseMedichem"), Peachtree Medichem Partners, LLC, a Delaware limited
liability company ("Peachtree"), Robert W. Daly ("Mr. Daly") and Peter R. Gates
("Mr. Gates"). MedEquity, ChaseMedichem, Peachtree, Mr. Daly and Mr. Gates are
collectively referred to herein as the "Reporting Persons."
Mr. Daly, a citizen of the United States of America, is a Managing Director
and the sole Managing Member of MedEquity, as well as the sole Managing Member
of MedEquity Partners (defined below). Mr. Gates, a citizen of the United States
of America, is a Managing Director of MedEquity, and Non-managing Member of
MedEquity and MedEquity Partners. Mr. Gates is also a director of the Company.
MedEquity is the sole Managing Member of ChaseMedichem and Peachtree, and an
affiliate of MedEquity Investors Partners, LLC, a Massachusetts limited
liability company ("MedEquity Partners"). The Reporting Persons all have their
business address at 16 Laurel Avenue, Suite 150, Wellesley Hills, MA 02481-1904.
(d) and (e). During the past five years, none of the Reporting Persons has
been (i) convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors) or (ii) a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree, or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws, or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The shares beneficially owned by MedEquity are held by ChaseMedichem,
Peachtree and MedEquity Partners, and were purchased by those entities with
funds from working capital, investments by affiliates and the Class B Preferred
Proceeds (as defined below).
On June 14, 1999, ChaseMedichem purchased 195,183.18 shares, Peachtree
purchased 113,388.28 shares and MedEquity Partners purchased 20,521.51 shares of
Class A preferred stock ("Class A Preferred") of MCR Holdings, Inc.
("Holdings"), an Illinois corporation and predecessor in interest to the
Company. Consideration for such purchases totaled $8,599,835.20, $4,995,924.80
and $904,184.54 for ChaseMedichem, Peachtree and MedEquity Partners,
respectively.
Immediately prior to the Merger (defined below) and the Initial Public
Offering, shares of Class A Preferred converted automatically and in a manner
consistent with Holdings' articles of incorporation. Shares of Class A Preferred
converted into shares of Holdings' Class A common stock ("Class A Common") and
Class B 5% redeemable preferred stock ("Class B Preferred"), and shares of Class
B Preferred were redeemed automatically for an aggregate of $7,500,000 (the
"Class B Preferred Proceeds"). Holdings then merged with the Company (the
"Merger") and each share of Class A Common was exchanged for 18.65557 shares of
Common Stock. The Merger resulted in ChaseMedichem, Peachtree and MedEquity
Partners holding 3,641,253 shares, 2,115,322 shares and 382,840 shares of Common
Stock, respectively.
In addition to shares owned prior to the Initial Public Offering,
ChaseMediChem, Peachtree and MedEquity Partners purchased 390,244 shares,
226,706 shares and 41,030 shares, respectively, of Common Stock in the Initial
Public Offering (the
<PAGE>
"Offering Shares"). The Offering Shares were purchased through the underwriters
at the Initial Public Offering price of $7.00 per share. Each entity funded its
purchase of the Offering Shares from its portion of the Class B Preferred
Proceeds.
ITEM 4. PURPOSE OF TRANSACTION.
Each of the Reporting Persons acquired the shares of Common Stock
beneficially owned by it for the purpose of investment.
Other than Mr. Gates in his capacity as a Director of the Company, the
Reporting Persons do not have any present plans or proposals that relate to or
would result in any of the following (although the Reporting Persons reserve the
right to develop such plans or proposals or any other plans relating to the
Company and to take action with respect thereto): (i) the acquisition by any
person of additional securities of the Company, or the disposition of securities
of the Company; (ii) an extraordinary corporate transaction, such as a merger,
reorganization, or liquidation, involving the Company or any of its
subsidiaries; (iii) a sale or transfer of a material amount of assets of the
Company or any of its subsidiaries; (iv) any change in the present board of
directors or management of the Company, including any plans or proposals to
change the number or term of directors or to fill any existing vacancies on the
board; (v) any material change in the present capitalization or dividend policy
of the Company; (vi) any other material change in the Company's business or
corporate structure; (vii) changes in the Company's certificate of
incorporation, bylaws, or instruments corresponding thereto or other actions
that may impede the acquisition of control of the Company by any person; (viii)
causing a class of securities of the Company to be delisted from a national
securities exchange or to cease to be authorized to be quoted in an inter-dealer
quotation system of a registered national securities association; (ix) a class
of equity securities of the Company becoming eligible for termination of
registration pursuant to Section 12(g)(4) of the Securities Exchange Act of
1934, as amended; or (x) any action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF ISSUER.
(a) MedEquity beneficially owns 6,797,395 shares of Common Stock, which is
26.7% of the class. Such shares are held directly by the following entities: (i)
ChaseMedichem holds 4,031,497 shares, or 15.8%; (ii) Peachtree holds 2,342,028
shares, or 9.2%; and (iii) MedEquity Partners holds 423,870 shares, or 1.7%. Mr.
Daly and Mr. Gates may each be deemed the beneficial owner of 6,797,395 shares
of Common Stock through their affiliations with MedEquity and MedEquity
Partners, although Mr. Daly and Mr. Gates disclaim beneficial ownership of such
securities, except to the extent of their pecuniary interest.
(b) MedEquity has sole power to direct the vote of 6,373,525 shares of
Common Stock on behalf of ChaseMedichem and Peachtree Medichem. MedEquity may be
deemed beneficial owner of 423,870 shares held and voted by MedEquity Partners,
due to their joint action in the initial investment. ChaseMedichem and Peachtree
have sole power to vote for 4,031,497 shares and 2,342,028 shares, respectively.
Mr. Daly has sole power to direct the vote of 6,797,395 shares on behalf of
MedEquity and MedEquity Partners, and Mr. Gates may be deemed to share voting
power with respect to such shares.
(c) On October 31, 2000, in connection with the Company's Initial Public
Offering, ChaseMediChem, Peachtree and MedEquity purchased 390,244 shares,
226,706 shares and 41,030 shares of Common Stock, respectively. Such shares of
Common Stock were purchased through the underwriters at the Initial Public
Offering price of $7.00 per share.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
As partial consideration for the underwriters' agreement to purchase and
undertake the Initial Public Offering, each of ChaseMedichem, Peachtree and
MedEquity Partners has delivered a letter agreement dated as of September 27,
2000 (the "Lock-up Agreements") to UBS Warburg LLC, Chase Securities, Inc. and
William Blair & Company, L.L.C., as representatives of the several underwriters
(the "Underwriters"), whereby each of ChaseMedichem, Peachtree and MedEquity
Partners has agreed not to, without the prior written consent of UBS Warburg
LLC, (i) sell, offer to sell, contract to sell, hypothecate, pledge, grant any
option to sell or otherwise dispose of, or file (or participate in the filing
of) a registration
<PAGE>
statement with the Securities and Exchange Commission (the "Commission") in
respect of, or establish or increase a put equivalent position or liquidate or
decrease a call equivalent position within the meaning of Section 16 of the
Securities Exchange Act of 1934, as amended, and the rules and regulations of
the Commission promulgated thereunder with respect to, any shares of Common
Stock or any securities convertible into or exercisable or exchangeable for
Common Stock, (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of
Common Stock or any securities convertible into or exercisable or exchangeable
for Common Stock, whether any such transaction is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise, or (iii) publicly
announce an intention to effect any transaction specified in clause (i) or (ii),
in the case of each of clauses (i), (ii) and (iii) for a period of 180 days
after the date of the final prospectus on October 26, 2000. The form of the
Lock-up Agreement is attached hereto as Exhibit 1.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit No. Description
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1. Form of Lock-Up Agreement, dated September 27, 2000, delivered by
each of ChaseMedichem Partners, Peachtree and MedEquity Partners
to the Underwriters
<PAGE>
Signature
---------
After reasonable inquiry and to the best of his knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete, and correct.
Dated: November 13, 2000 MedEquity Investors, LLC
By: /s/ Robert W. Daly
----------------------------
Name: Robert W. Daly
Title: Manager
ChaseMedichem Partners, LLC
By: MedEquity Investors, LLC
Its: Managing Member
By: /s/ Robert W. Daly
----------------------------
Name: Robert W. Daly
Title: Manager
Peachtree Medichem Partners, LLC
By: MedEquity Investors, LLC
Its: Managing Member
By: /s/ Robert W. Daly
----------------------------
Name: Robert W. Daly
Title: Manager
By: /s/ Robert W. Daly
----------------------------
Name: Robert W. Daly
By: /s/ Peter R. Gates
----------------------------
Name: Peter R. Gates
