<PAGE> 1
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UNITED STATES OMB Number: 3235-0145
SECURITIES AND EXCHANGE COMMISSION Expires: October 31, 1997
WASHINGTON, D.C. 20549 Estimated average burden hours
per response.......... 14.90
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SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. ___________)*
OCCUPATIONAL HEALTH + REHABILITATION INC
----------------------------------------------------------------
(Name of Issuer)
Common Stock, $.001 par value per share
----------------------------------------------------------------
(Title of Class of Securities)
674617-10-5
----------------------
(CUSIP Number)
Kevin J. Dougherty Andrew E. Taylor, Jr.
The Venture Capital Fund of New Testa, Hurwitz & Thibeault, LLP
England III, L.P. 125 High Street
160 Federal Street, 23rd Floor Boston, MA 02110
Boston, MA 02110 617-248-7000
----------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
June 6, 1996
----------------------------------------------------------------
(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 /X/. (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, should 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 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).
Page 1 of 18 Pages
<PAGE> 2
SCHEDULE 13D
- --------------------- ------------------
CUSIP NO. 674617-10-5 PAGE 2 OF 18 PAGES
- --------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON THE VENTURE CAPITAL FUND OF NEW ENGLAND III, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
115,636
-----------------------------------------------------------------
NUMBER OF 8. SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 115,636
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
115,636
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES / /
CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 3
SCHEDULE 13D
- --------------------- ------------------
CUSIP NO. 674617-10-5 PAGE 3 OF 18 PAGES
- --------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON FH & CO. III, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
(DE)
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
115,636
-----------------------------------------------------------------
NUMBER OF 8. SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 115,636
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
115,636
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES / /
CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 4
SCHEDULE 13D
- --------------------- ------------------
CUSIP NO. 674617-10-5 PAGE 4 OF 18 PAGES
- --------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON RICHARD A. FARRELL
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
US
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 8. SHARED VOTING POWER
SHARES
BENEFICIALLY 115,636
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
115,636
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
115,636
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES / /
CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 5
SCHEDULE 13D
- --------------------- ------------------
CUSIP NO. 674617-10-5 PAGE 5 OF 18 PAGES
- --------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON HARRY J. HEALER JR.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
US
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 8. SHARED VOTING POWER
SHARES
BENEFICIALLY 115,636
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
115,636
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
115,636
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES / /
CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 6
SCHEDULE 13D
- --------------------- ------------------
CUSIP NO. 674617-10-5 PAGE 6 OF 18 PAGES
- --------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON KEVIN J. DOUGHERTY
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
US
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 8. SHARED VOTING POWER
SHARES
BENEFICIALLY 115,636
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
115,636
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
115,636
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES / /
CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 7
SCHEDULE 13D
- --------------------- ------------------
CUSIP NO. 674617-10-5 PAGE 7 OF 18 PAGES
- --------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON WILLIAM C. MILLS, III
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
US
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 8. SHARED VOTING POWER
SHARES
BENEFICIALLY 115,636
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
115,636
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
115,636
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES / /
CERTAIN SHARES*
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON *
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 8
Item 1. SECURITY AND ISSUER:
-------------------
This Statement relates to the common stock, par value $0.001 per share
of Occupational Health + Rehabilitation Inc, a Delaware corporation (the
"Issuer"), whose principal executive offices are located at 175 Derby
Street, Suite 36, Hingham, Massachusetts 02043.
Item 2. IDENTITY AND BACKGROUND:
-----------------------
FILING PERSON 1: Venture Capital Fund of New England III, L.P. (the
"Fund") is a Delaware limited partnership the principal
business of which is venture capital investing. The
Fund's principal business and office address is 160
Federal Street, 23rd Floor, Boston, MA 02110. During
the last five years the Fund has not been convicted in
a criminal proceeding or been a party to a civil
proceeding of a judicial or administrative body of
competent jurisdiction as a result of which the Fund
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.
FILING PERSON 2: FH & Co. III, L.P. (the "GPLP") is a Delaware limited
partnership the principal business of which is to serve
as the sole general partner of the Fund. The GPLP's
principal business and office address is 160 Federal
Street, 23rd Floor, Boston, MA 02110. During the last
five years the GPLP has not been convicted in a
criminal proceeding or been a party to a civil
proceeding of a judicial or administrative body of
competent jurisdiction as a result of which the GPLP
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.
FILING PERSONS 3, 4, 5 AND 6: Richard A. Farrell ("Farrell"), Harry J.
Healer Jr. ("Healer"), Kevin J. Dougherty ("Dougherty")
and William C. Mills, III ("Mills") share the principal
business/office address of the Fund and the GPLP.
Farrell, Healer, Dougherty and Mills are the four
general partners of the GPLP. During the last five
years, none of Farrell, Healer, Dougherty or Mills has
been convicted in a criminal proceeding or been a party
to a civil proceeding of a judicial or administrative
body of competent jurisdiction as a result of which he
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 Venture Capital Fund of New England III, L.P. (the "Fund") acquired
the securities of the Issuer through the conversion of securities of
Occupational Health + Rehabilitation Inc, a Delaware corporation
("OH+R"), into securities of the Issuer, formerly known as Telor
Ophthalmic Pharmaceuticals, Inc., in connection with the merger of OH+R
with and into the Issuer (the "Merger"). Upon the effectiveness of the
Merger, 816,667 shares of common stock of OH+R owned by the Fund were
converted into 115,636 shares of common stock of the Issuer.
Item 4. PURPOSE OF TRANSACTION:
----------------------
The purpose of the transaction was an investment in the Issuer.
Page 8 of 18 Pages
<PAGE> 9
Item 5. INTEREST IN SECURITIES OF THE ISSUER:
------------------------------------
On June 6, 1996, the aggregate number of shares of common Stock of the
Issuer beneficially owned by the Fund was 115,636, representing 7.9% of
the issued and outstanding shares of the Issuer's common stock (based on
information provided to the filing persons by the Issuer).
By virtue of its status as the Fund's sole general partner, the GPLP may
be deemed the beneficial owner of the 115,636 shares of the Issuer's
common stock owned by the Fund. By virtue of their status as general
partners of the GPLP, Farrell, Healer, Dougherty and Mills may also be
deemed the beneficial owners of the 115,636 shares of the Issuer's
common stock owned by the Fund. The GPLP and each of Farrell, Healer,
Dougherty and Mills disclaim beneficial ownership of any such shares
except to the extent of their actual individual pecuniary interest
therein.
Subject to the Voting Agreement attached hereto as EXHIBIT 1 (see Item
6, below), the Fund (through the GPLP) has sole power to vote (or direct
the vote) and to dispose (or direct the disposition) of the shares owned
by the Fund. Farrell, Healer, Dougherty and Mills, as general partners
of the GPLP, each have shared powers to vote (or direct the vote) and
dispose (or direct the disposition) of such shares.
The limited partners of the Fund, subject to the Fund's agreement of
limited partnership, also have a right to receive dividends from or
proceeds from the sale of, such shares.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
------------------------------------------------------------------------
SECURITIES OF THE ISSUER.
------------------------
In connection with the Merger Agreement, the Fund, certain of the
securityholders of OH+R prior to the Merger and certain of the
securityholders of the Issuer entered into a voting agreement (the
"Voting Agreement"), dated as of June 6, 1996. Pursuant to the terms of
the Voting Agreement, the parties thereto have agreed to vote all shares
of common stock of the Issuer owned by such person or entity to elect at
the 1996 annual meeting of the stockhholders of the Issuer the following
persons to the board of directors of the Issuer, each for a three year
term: (1) Mr. John C. Garbarino; (2) Mr. John K. Herdklotz, Ph.D., the
Issuer's Chairman of the Board, Acting Chief Executive Officer and
President, prior to the Merger; and (3) Angus M. Duthie, a director of
the Issuer who was a director of OH+R prior to the Merger.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
--------------------------------
A. Voting Agreement, dated as of June 6, 1996, by and among Telor
Ophthalmic Pharmaceuticals, Inc. ("Telor"), certain securityholders
of Occupational Health + Rehabilitation Inc and certain
securityholders of Telor.
Page 9 of 18 Pages
<PAGE> 10
SCHEDULE 13D
- --------------------- -------------------
CUSIP NO. 674617-10-5 PAGE 10 OF 18 PAGES
- --------------------- -------------------
SIGNATURE
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.
June 14, 1996 THE VENTURE CAPITAL FUND
____________________ OF NEW ENGLAND III, L.P.
Date
By: FH & Co. III, L.P.
Its: General Partner
By:/s/ KEVIN J. DOUGHERTY
------------------------------
General Partner
FH & CO. III, L.P.
By:/s/ KEVIN J. DOUGHERTY
------------------------------
General Partner
/s/ RICHARD A. FARRELL
---------------------------------
Richard A. Farrell
/s/ HARRY J. HEALER, JR.
---------------------------------
Harry J. Healer, Jr.
/s/ KEVIN J. DOUGHERTY
---------------------------------
Kevin J. Dougherty
/s/ WILLIAM C. MILLS, III
---------------------------------
William C. Mills, III
<PAGE> 11
Exhibit A
---------
Voting Agreement
----------------
This voting Agreement (this "Agreement") is entered into as of June 6,
1996, by and between Telor Ophthalmic Pharmaceuticals, Inc., a Delaware
corporation ("Telor"), the individuals and entities listed on Schedule A
attached hereto (the "OH+R Securityholders"), and the individuals and entities
listed on SCHEDULE B attached hereto (the "Telor Securityholders"). The "OH+R
Securityholders" and "Telor Securityholders" are sometimes referred to herein
collectively as the "Securityholders" and individually as a "Securityholder".
WHEREAS Telor and Occupational Health + Rehabilitation Inc, a Delaware
corporation ("OH+R"), are parties to that certain Agreement and Plan of Merger,
dated February 22, 1996, as amended on April 30, 1996 and May 10, 1996 (the
"Merger Agreement"), providing for the merger of OH+R with and into Telor, such
that Telor will be the surviving corporation, the separate corporate existence
of OH+R will cease, and the surviving corporation will continue under the name
"Occupational Health + Rehabilitation Inc" (the "Merger");
WHEREAS pursuant to the terms of the Merger Agreement, upon consummation of
the Merger, all shares of capital stock of OH+R and certain other equity
securities of OH+R will be converted into the right to receive shares of the
common stock, $.001 par value per share, of Telor ("Telor Stock");
WHEREAS as a condition to consummation of the Merger, the OH+R
Securityholders are required to enter into this Agreement; and
WHEREAS as a condition to consummation of the Merger, the Telor
Securityholders are required to enter into this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
1. Subject to consummation of the Merger, each Securityholder agrees that
such-Securityholder shall vote all shares of Telor Stock owned by such person or
entity to elect at the 1996 annual meeting of the stockholders of Telor (the
"1996 Meeting") the following persons to the Board of Directors of Telor, each
for a three (3) year term:
(a) the Chief Executive Officer of Telor upon consummation of the Merger,
who is expected to be John C. Garbarino;
(b) John K. Herdklotz, Ph.D., or, if he shall be unable or unwilling to
serve, a person designated by those persons designated as Telor
Principal Stockholders on SCHEDULE B; and
Page 11 of 18 Pages
<PAGE> 12
(c) Angus M. Duthie, or, if he shall be unable or unwilling to serve, a
person designated by those persons designated as the OH+R Principal
Stockholders on SCHEDULE A.
2. Telor agrees to use its reasonable best efforts to cause the nominees
designated pursuant to Section 1 to be included on the slate of directors and to
be recommended to the stockholders of Telor for election at the 1996 Meeting.
3. If any Securityholder shall fail to vote such Securityholder's shares of
Telor Stock as provided in this Agreement, without further action by such
Securityholder, the President of Telor shall be, and hereby is, irrevocably
constituted the attorney-in-fact and proxy of such Securityholder for the
purpose of voting and shall vote such shares at the 1996 Meeting as provided in
this Agreement and is hereby authorized to revoke any proxy providing for any
other vote of such shares on any proposal for the election of directors at such
1996 Meeting.
4. Each Securityholder represents and warrants that such Securityholder
owns beneficially and of record the shares of capital stock of OH + R, other
equity securities of OH + R and/or shares of Telor Stock set forth opposite the
name of such Securityholder on SCHEDULE A or SCHEDULE B, as the case may be.
5. The terms and provisions of this Agreement may be modified or amended
only by written agreement executed by (a) Telor, (b) holders of a majority of
the shares of capital stock of OH+R (on an as converted basis) or shares of
Telor Stock held by the OH+R Principal Stockholders, and (c) holders of a
majority of the shares of Telor Stock held by Telor Principal Stockholders,
provided, that no amendment shall increase any party's obligations without such
party's consent.
6. Each Securityholder acknowledges and agrees that the rights acquired by
Telor hereunder are unique and that irreparable damage would occur in the event
that any of the provisions of this Agreement to be performed by such
Securityholder were not performed in accordance with their specific terms or
were otherwise breached. Accordingly, in addition to any other remedy to which
Telor is entitled at law or in equity, Telor shall be entitled to an injunction
or injunctions to prevent breaches of this Agreement by each Securityholder and
to enforce specifically the terms and provisions hereof.
7. Each Securityholder represents and warrants that it is not a party to
any agreement or understanding, and the shares of capital stock of OH+R, other
equity securities of OH+R and/or shares of Telor Stock owned by such
Securityholder are not subject to any restriction, lien, order, judgment or
decree, which would limit or conflict with such Securityholder's obligations
hereunder.
Page 12 of 18 Pages
<PAGE> 13
8. This Agreement shall terminate upon the first to occur of (a) the
termination of the Merger Agreement or (b) immediately after the conclusion of
the 1996 Meeting.
9. Each Securityholder covenants not to sell or otherwise transfer any
shares of capital stock of OH+R, other equity securities of OH+R and/or shares
of Telor Stock owned by it between the date hereof and through and including the
date of the 1996 Meeting, unless the transferee agrees in writing to be bound by
the terms of this Agreement.
10. This Agreement, together with the Standstill Agreement dated June 6,
1996 between Telor and certain of the Securityholders, embodies the entire
agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersedes all prior oral or written agreements and
understandings relating to the subject matter hereof. No statement,
representation, warranty, covenant or agreement of any kind not expressly set
forth in this Agreement shall affect, or be used to interpret, change or
restrict, the express terms and provisions of this Agreement.
11. This Agreement may be executed in one or more counterparts, and by
different parties hereto on separate counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same
instrument.
12. All capitalized terms used in this Agreement and not otherwise defined
herein shall have the same meaning in this Agreement and in the Merger
Agreement.
13. This Agreement and the rights and obligations of the parties hereunder
shall be construed in accordance with and governed by the law of the State of
Delaware, without giving effect to the conflict of law principles thereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as a
sealed instrument as of the day and date first above written.
TELOR OPHTHALMIC PHARMACEUTICALS, INC.
By:
-----------------------------------------
PRINCE VENTURE PARTNERS III LIMITED PARTNERSHIP
By: Prince Ventures, L.P., General Partner
By:
----------------------------------------
Page 13 of 18 Pages
<PAGE> 14
THE VENTURE CAPITAL FUND
OF NEW ENGLAND III, L.P.
By: FH & Co. III, L.P., Its General Partner
By:
-----------------------------------------
BANCBOSTON VENTURES, INC.
By:
-----------------------------------------
--------------------------------------------
John C. Garbarino
--------------------------------------------
Lynne M. Rosen
VENROCK ASSOCIATES
By:
-----------------------------------------
VENROCK ASSOCIATES II, L.P.
By:
-----------------------------------------
ASSET MANAGEMENT ASSOCIATES, 1989, L.P.
By:
-----------------------------------------
Page 14 of 18 Pages
<PAGE> 15
-16-
HAMBRO INTERNATIONAL VENTURE FUND II, L.P.
By:
-----------------------------------------
HAMBRO INTERNATIONAL VENTURE FUND `85
By:
-----------------------------------------
KKI-HAMBRO UNITED STATES INTERNATIONAL
VENTURE FUND
By:
-----------------------------------------
HIV-GEN INCORPORATED
By:
-----------------------------------------
--------------------------------------------
John K. Herdklotz, Ph.D.
--------------------------------------------
Craig C. Taylor
--------------------------------------------
Patrick F. Latterell
--------------------------------------------
Charles L. Dimmler, III
--------------------------------------------
Mark J. Gabrielson
--------------------------------------------
John F. Chappell
Page 15 of 18 Pages
<PAGE> 16
-17-
--------------------------------------------
Jane E. Rady
Page 16 of 18 Pages
<PAGE> 17
Schedule A
OH+R Securityholders
--------------------
PRINCE VENTURE PARTNERS III LIMITED PARTNERSHIP
THE VENTURE CAPITAL FUND OF NEW ENGLAND III, L.P.
BANCBOSTON VENTURES, INC.
JOHN C. GARBARINO
LYNNE M. ROSEN
OH+R Principal Stockholders
---------------------------
PRINCE VENTURE PARTNERS III LIMITED PARTNERSHIP
THE VENTURE CAPITAL FUND OF NEW ENGLAND III, L.P.
BANCBOSTON VENTURES, INC.
Page 17 of 18 Pages
<PAGE> 18
Schedule B
Telor Securityholders
---------------------
PRINCE VENTURE PARTNERS III LIMITED PARTNERSHIP
VENROCK ASSOCIATES
VENROCK ASSOCIATES II, L.P.
ASSET MANAGEMENT ASSOCIATES, 1989, L.P.
HAMBRO INTERNATIONAL VENTURE FUND II, L.P.
HAMBRO INTERNATIONAL VENTURE FUND '85
KKI-HAMBRO UNITED STATES INTERNATIONAL VENTURE FUND
HIV-GEN INCORPORATED
PATRICK F. LATTERELL
JOHN K. HERDKLOTZ, PH.D.
CRAIG C. TAYLOR
CHARLES L. DIMMLER, III
MARK J. GABRIELSON
JOHN F. CHAPPELL
JANE E. RADY
Telor Principal Stockholders
----------------------------
PRINCE VENTURE PARTNERS III, LIMITED PARTNERSHIP
VENROCK ASSOCIATES
VENROCK ASSOCIATES II, L.P.
ASSET MANAGEMENT ASSOCIATES, 1989, L.P.
HAMBRO INTERNATIONAL VENTURE FUND II, L.P.
HAMBRO INTERNATIONAL VENTURE FUND '85
KKI-HAMBRO UNITED STATES INTERNATIONAL VENTURE FUND
HIV-GEN INCORPORATED
Page 18 of 18 Pages
