-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EULVlxbSEZq1xiTv22APW8Je3cLpt/cqIPosgsmbH95pF0wlJAK9tTOurODVE4hT +jsPsWwdugV8JPUcO+QsdA== 0000950123-10-008323.txt : 20100203 0000950123-10-008323.hdr.sgml : 20100203 20100203161601 ACCESSION NUMBER: 0000950123-10-008323 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20100203 DATE AS OF CHANGE: 20100203 GROUP MEMBERS: BARRY A POSNER GROUP MEMBERS: RICHARD M SMITH GROUP MEMBERS: STANLEY G ROSENBAUM SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: BioScrip, Inc. CENTRAL INDEX KEY: 0001014739 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DRUG STORES AND PROPRIETARY STORES [5912] IRS NUMBER: 050489664 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-49459 FILM NUMBER: 10570871 BUSINESS ADDRESS: STREET 1: 100 CLEARBROOK ROAD CITY: ELMSFORD STATE: NY ZIP: 10523 BUSINESS PHONE: 914 460 1600 MAIL ADDRESS: STREET 1: 100 CLEARBROOK ROAD CITY: ELMSFORD STATE: NY ZIP: 10523 FORMER COMPANY: FORMER CONFORMED NAME: MIM CORP DATE OF NAME CHANGE: 19960516 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: FRIEDMAN RICHARD H CENTRAL INDEX KEY: 0001033096 FILING VALUES: FORM TYPE: SC 13D MAIL ADDRESS: STREET 1: C/O MIM CORP STREET 2: P O BOX 3689 CITY: PEACE DALE STATE: RI ZIP: 02883 SC 13D 1 y81926sc13d.htm SC 13D sc13d
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
§ 240.13d-2(a)
(Amendment No. ___)*
BioScrip, Inc.
 
(Name of Issuer)
Common Stock, $.0001 par value
 
(Title of Class of Securities)
09069N108
 
(CUSIP Number)
Barry A. Posner
Executive Vice President, Secretary and General Counsel
BioScrip, Inc.
100 Clearbrook Road,
Elmsford NY 10523
914-460-1600
 
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
Cc:
E. William Bates, II
King & Spalding LLP
1185 Avenue of the Americas
New York, NY 10036
(212) 556-2100
January 24, 2010
 
(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 §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box: o
     NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 15 Pages)
     
*   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 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 (the “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).
 
 


 

                     
CUSIP No.
 
09069N108 
13D Page  
  of   
15 

 

           
1   NAMES OF REPORTING PERSONS

Richard H. Friedman
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  00
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States of America
       
  7   SOLE VOTING POWER
     
NUMBER OF   2,411,944
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   3,329,499*
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   2,411,944
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  3,329,499*
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  þ**
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  7.9%*
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN
     
* See discussion in Items 4 and 5 of this Statement on Schedule 13D. As more fully described in the responses to Items 4 and 5 of this Statement on Schedule 13D, beneficial ownership of the above referenced shares of Common Stock is being reported hereunder solely because the Reporting Persons and certain other beneficial owners of Common Stock named herein may be deemed to have beneficial ownership of such shares as a result of the Voting Agreement described below. Neither the filing of this Statement on Schedule 13D nor any of its contents shall be deemed to constitute an admission by any Reporting Person that, except as set forth herein, it is the beneficial owner of any shares of Common Stock for purposes of Section 13(d) of the Act, or for any other purpose, and such beneficial ownership thereof is expressly disclaimed.
 
** See footnotes 1 - 4 in Item 5 (a) - (b).


 

                     
CUSIP No.
 
09069N108 
13D Page  
  of   
15 

 

           
1   NAMES OF REPORTING PERSONS

Richard M. Smith
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  00
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States of America
       
  7   SOLE VOTING POWER
     
NUMBER OF   155,000
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   3,329,499*
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   155,000
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  3,329,499*
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  þ**
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  7.9%*
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN
     
* See discussion in Items 4 and 5 of this Statement on Schedule 13D. As more fully described in the responses to Items 4 and 5 of this Statement on Schedule 13D, beneficial ownership of the above referenced shares of Common Stock is being reported hereunder solely because the Reporting Persons and certain other beneficial owners of Common Stock named herein may be deemed to have beneficial ownership of such shares as a result of the Voting Agreement described below. Neither the filing of this Statement on Schedule 13D nor any of its contents shall be deemed to constitute an admission by any Reporting Person that, except as set forth herein, it is the beneficial owner of any shares of Common Stock for purposes of Section 13(d) of the Act, or for any other purpose, and such beneficial ownership thereof is expressly disclaimed.
 
** See footnotes 1 - 4 in Item 5 (a) - (b).


 

                     
CUSIP No.
 
09069N108 
13D Page  
  of   
15 

 

           
1   NAMES OF REPORTING PERSONS

Barry A. Posner
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  00
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States of America
       
  7   SOLE VOTING POWER
     
NUMBER OF   384,388
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   3,329,499*
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   384,388
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  3,329,499*
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  þ**
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  7.9%*
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN
     
* See discussion in Items 4 and 5 of this Statement on Schedule 13D. As more fully described in the responses to Items 4 and 5 of this Statement on Schedule 13D, beneficial ownership of the above referenced shares of Common Stock is being reported hereunder solely because the Reporting Persons and certain other beneficial owners of Common Stock named herein may be deemed to have beneficial ownership of such shares as a result of the Voting Agreement described below. Neither the filing of this Statement on Schedule 13D nor any of its contents shall be deemed to constitute an admission by any Reporting Person that, except as set forth herein, it is the beneficial owner of any shares of Common Stock for purposes of Section 13(d) of the Act, or for any other purpose, and such beneficial ownership thereof is expressly disclaimed.
 
** See footnotes 1 - 4 in Item 5 (a) - (b).


 

                     
CUSIP No.
 
09069N108 
13D Page  
  of   
15 

 

           
1   NAMES OF REPORTING PERSONS

Stanley G. Rosenbaum
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)   o 
  (b)   þ 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  00
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States of America
       
  7   SOLE VOTING POWER
     
NUMBER OF   378,167
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   3,329,499*
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   378,167
       
WITH 10   SHARED DISPOSITIVE POWER
     
    0
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  3,329,499*
     
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  þ**
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  7.9%*
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN
     
* See discussion in Items 4 and 5 of this Statement on Schedule 13D. As more fully described in the responses to Items 4 and 5 of this Statement on Schedule 13D, beneficial ownership of the above referenced shares of Common Stock is being reported hereunder solely because the Reporting Persons and certain other beneficial owners of Common Stock named herein may be deemed to have beneficial ownership of such shares as a result of the Voting Agreement described below. Neither the filing of this Statement on Schedule 13D nor any of its contents shall be deemed to constitute an admission by any Reporting Person that, except as set forth herein, it is the beneficial owner of any shares of Common Stock for purposes of Section 13(d) of the Act, or for any other purpose, and such beneficial ownership thereof is expressly disclaimed.
 
** See footnotes 1 - 4 in Item 5 (a) - (b).


 

         
CUSIP No. 09069N108   13D   Page 6 of 15
Item 1. Security and Issuer.
The class of equity securities to which this Schedule 13D relates is the Common Stock, par value $.0001 per share (the “Common Stock”) of BioScrip, Inc., a Delaware corporation (the “Issuer”). The address of the Issuer’s principal executive offices is 100 Clearbrook Road, Elmsford NY 10523.
Item 2. Identity and Background.
(a) - (c) and (f) This Schedule 13D is being filed on behalf of Richard H. Friedman, Richard M. Smith, Barry A. Posner and Stanley G. Rosenbaum (together, the “Reporting Persons”).
Richard H. Friedman is Chief Executive Officer and Chairman of the Board of Directors of the Issuer. His business address is 100 Clearbrook Road, Elmsford NY 10523. He is a citizen of the United States of America.
Richard M. Smith is President and Chief Operating Officer of the Issuer. His business address is 100 Clearbrook Road, Elmsford NY 10523. He is a citizen of the United States of America.
Barry A. Posner is Executive Vice President, Secretary and General Counsel of the Issuer. His business address is 100 Clearbrook Road, Elmsford NY 10523. He is a citizen of the United States of America.
Stanley G. Rosenbaum is Executive Vice President, Chief Financial Officer and Treasurer of the Issuer. His business address is 100 Clearbrook Road, Elmsford NY 10523. He is a citizen of the United States of America.
     (d) - (e) During the last five years, none of the Reporting Persons (i) has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) been 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 the

 


 

         
CUSIP No. 09069N108   13D   Page 7 of 15
person from future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation of such laws.
Item 3. Source and Amount of Funds or Other Consideration.
     On January 24, 2010, the Reporting Persons, Critical Homecare Solutions Holdings, Inc., a Delaware corporation (“CHS”), and Kohlberg Investors V, L.P., a Delaware limited partnership (the “Stockholders’ Representative”), entered into a common stock voting agreement (the “Voting Agreement”) with respect to the shares of Common Stock beneficially owned by the Reporting Persons.
     The Reporting Persons did not pay any monetary consideration to the Issuer in connection with the execution and delivery of the Voting Agreement. For a description of the Voting Agreement, see Item 4 below, which description is incorporated by reference in the response to this Item 3.
     The Voting Agreement is filed as Exhibit 99.2 and is incorporated herein by reference.
Item 4. Purpose of Transaction.
     (a) - (j)
Voting Agreement
     The Voting Agreement was entered into as a condition to the willingness of CHS and the Stockholders’ Representative to enter into the agreement and plan of merger (the “Merger Agreement”) by and among the Issuer, Camelot Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Issuer (the “Merger Sub”), CHS, the Stockholders’ Representative, Kohlberg Partners V, L.P., a Delaware limited partnership, Kohlberg Offshore Investors V, L.P., a Delaware limited partnership, Kohlberg TE Investors V, L.P., a Delaware limited partnership, KOCO Investors V, L.P., a Delaware limited partnership, Robert Cucuel, Mary Jane Graves, Nitin Patel, Joey Ryan, Blackstone Mezzanine Partners II L.P., a Delaware limited partnership, Blackstone Mezzanine Holdings II L.P., a Delaware limited partnership, and S.A.C. Domestic Capital Funding, Ltd., a Cayman Islands limited company (collectively, including the Stockholders’ Representative, the “Target Stockholders”). Pursuant to the Voting Agreement, each of the Reporting Persons agreed that:
  at any time that the Issuer conducts a meeting of, or otherwise seeks a vote or consent of, the holders of the Common Stock for the purpose of approving and adopting the Merger (as defined below), the other transactions contemplated by the Merger Agreement and the actions required in furtherance thereof, such Reporting Person will vote, or provide a consent with respect to, the shares of Common Stock owned by such Reporting Person:
  o   in favor of the Merger, the other transactions contemplated by the Merger Agreement and the actions required in furtherance thereof, which includes the

 


 

         
CUSIP No. 09069N108   13D   Page 8 of 15
      issuance of Common Stock and Warrants (as defined below) in connection with the Merger; and
 
  o   against any action or agreement that would compete with, impede, delay or interfere with the approval of the Merger and the other transactions contemplated by the Merger Agreement; and
  that at the first annual meeting of the holders of Common Stock following the closing of the Merger for the purpose of the election of directors to the Board of Directors of the Issuer, such Reporting Person will vote the shares of Common Stock owned by such Reporting Person in favor of each of the two individuals designated by the Stockholders’ Representative pursuant to the terms of the stockholders’ agreement, dated as of January 24, 2010, by and among the Issuer, the Target Stockholders and Colleen Lederer.
The Reporting Persons have agreed not to transfer any shares of Common Stock so long as the Voting Agreement is in effect, except as permitted under the Voting Agreement. The Voting Agreement will terminate upon the earliest to occur of (a) the completion of the first annual meeting of the holders of Common Stock following the closing of the Merger and (b) the termination of the Merger Agreement in accordance with its terms.
Merger Agreement
     The Merger Agreement provides that, upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), CHS will be merged with and into Merger Sub (the “Merger”). As a result of the Merger, the separate corporate existence of the CHS will cease and Merger Sub will continue as the surviving corporation of the Merger and a wholly owned subsidiary of the Issuer. In connection with the Merger, pursuant to the terms of the Merger Agreement, the Issuer is paying a total purchase price of $343,200,000 for the acquisition of CHS as follows:
  Cash of $110,000,000 (which will be subject to increase if net indebtedness of CHS at the Effective Time is less than $132,000,000 and decrease if net indebtedness of CHS at the Effective Time is greater than $132,000,000);
  the repayment of net indebtedness of CHS (approximately $132,000,000 at December 31, 2009, subject to adjustment as described above);
  approximately 12,655,600 shares of Common Stock having an aggregate value of $98,966,792 based on the Issuer’s closing stock price of $7.82 on January 22, 2010, the last trading day prior to execution of the Merger Agreement (which will be subject to increase if net indebtedness of CHS at the Effective Time is less than $132,000,000), and assuming that no Options have been exercised between the date of the Merger Agreement and the closing of the Merger and that CHS’s expenses in connection with the Merger are $10,000,000 and the net indebtedness is $132,000,0000; and

 


 

         
CUSIP No. 09069N108   13D   Page 9 of 15
  warrants representing the right to purchase, in the aggregate, 3,400,945 shares of Common Stock, having a $10.00 per share strike price and a five year term (the “Warrants”).
The Issuer will assume and adopt the Critical Homecare Solutions Holdings, Inc. 2006 Equity Incentive Plan, as amended (the “Stock Option Plan”), at the closing of the Merger. With respect to the right to purchase the shares of common stock, $0.001 par value, of CHS under the Stock Option Plan (the “Options”) held by the top five executives of CHS, approximately 35% of such Options will convert into options exercisable for Common Stock under the Stock Option Plan assumed by the Issuer at the closing of the Merger, and all remaining Options will be cashed out at the Effective Time.
     The Merger and the other transactions contemplated by the Merger Agreement are subject to various closing conditions, including approval by the Issuer’s stockholders of the issuance of Common Stock and Warrants in connection with the Merger Agreement, the accuracy of representations and warranties and compliance with covenants, receipt of tax opinions with respect to the tax-free nature of the transaction, receipt of regulatory approvals and receipt of financing and other customary closing conditions. In addition, a condition to CHS’s obligation to close is that the closing sales price of Common Stock for the ten trading days immediately before the scheduled closing date not be less than $5.2151. The Company has entered into a commitment letter with Jefferies Finance LLC with respect to the financing of the transactions contemplated by the Merger Agreement. The Merger is expected to close on or about March 31, 2010.
     The Issuer will call and hold a special meeting of the stockholders as promptly as practicable to approve and adopt the issuance of Common Stock and Warrants.
     Shares of Common Stock totaling 2,696,516 will be deposited into escrow and will be available to satisfy any indemnity to the Issuer (the “Escrow Fund”). The representations and warranties of the Target Stockholders, CHS and the Issuer will survive for 18 months following the closing date of the Merger, except that specified representations and warranties, including organization, due authority, capitalization and broker fees (the “Specified Representations”), will survive for their applicable statute of limitations. The tax indemnity (which includes CHS’s and its subsidiaries’ taxes due for any taxable period ending on or before the closing date of the Merger (the “Pre-Closing Taxes”)) will also survive for the applicable statute of limitations. The Issuer will be indemnified for losses related to, among other things, (i) breaches of the representations and warranties of CHS and Target Stockholders; (ii) breaches of covenants and agreements of CHS and Target Stockholders; and (iii) the Pre-Closing Taxes. Except with respect to the Specified Representations and the tax indemnity, among other things, the indemnity is subject to a deductible of $1,500,000 for aggregate losses. Except for the Specified Representations, Pre-Closing Taxes, intentional or willful breaches by CHS, and any breaches by the Target Stockholders of any covenants made by CHS or Target Stockholders in the Merger Agreement, the indemnity losses will be recoverable solely from the Escrow Fund.

 


 

         
CUSIP No. 09069N108   13D   Page 10 of 15
     The Merger Agreement may be terminated on or prior to the Effective Time by, among other things: (i) mutual written consent of the Issuer and Kohlberg; (ii) either the Issuer or Kohlberg if the closing date has not occurred on or before June 30, 2010; or (iii) the Stockholders’ Representative or the Issuer if the Common Stock and Warrants issuance proposal has been submitted to the Issuer stockholders for adoption by written consent or at a duly convened special meeting of stockholders (or adjournment or postponement thereof) and the approval of the Issuer stockholders was not obtained.
Item 5. Interest in Securities of the Issuer.
     (a) - (b) As of the filing date of this Statement on Schedule 13D, as a result of the Voting Agreement, each Reporting Person may be deemed to have beneficial ownership (within the meaning of Rule 13d-3 under the Act) and shared power to vote or direct the vote of up to the following:
                                                 
                                            Shared
                                    Sole   power to
            Percent of shares of   Sole   Shared   power to   dispose of
            Common   power to   power to   dispose or   or
    Shares of   Stock outstanding   vote or   vote or   direct the   direct the
Reporting   Common   pursuant to Rule   direct   direct   disposition   disposition
Person   Stock   13d-3(d)(1)(5)   the vote   the vote   of   of
Richard H. Friedman
  2,411,944(1)   5.8%(1)   2,411,944     3,329,499     2,411,941     0  
Richard M. Smith
  155,000(2)   0.4%(2)   155,000     3,329,499     155,000     0  
Barry A. Posner
  384,388 (3)   0.9%(3)   384,388     3,329,499     384,388     0  
Stanley G. Rosenbaum
  378,167(4)   0.9%(4)   378,167     3,329,499     378,167     0  
 
(1)   Includes 1,395,865 shares issuable upon exercise of the vested portion of options held by Mr. Friedman. Excludes 225,000 shares subject to the unvested portion of options held by Mr. Friedman. Includes 250,000 shares of Common Stock owned by the Richard H. Friedman Grantor Retained Annuity Trust, of which Mr. Friedman is the trustee.
 
(2)   Includes 35,000 shares issuable upon exercise of the vested portion of options held by Mr. Smith. Excludes 70,000 shares subject to the unvested portion of options held by Mr. Smith.
 
(3)   Includes 334,262 shares issuable upon exercise of the vested portion of options held by Mr. Posner. Excludes 133,750 shares subject to the unvested portion of options held by Mr. Posner.
 
(4)   Includes 193,410 shares issuable upon exercise of the vested portion of options held by Mr. Rosenbaum. Excludes 146,874 shares subject to the unvested portion of options held by Mr. Rosenbaum.
 
(5)   Based on 40,420,776 shares of Common Stock outstanding as of January 29, 2010.

 


 

         
CUSIP No. 09069N108   13D   Page 11 of 15
In addition to the beneficial ownership of the Reporting Persons described herein, the Target Stockholders, as a result of the Voting Agreement, may be deemed to have beneficial ownership (within the meaning of Rule 13d-3 under the Act) and shared power to vote or direct the vote of 3,329,499 shares of Company Stock.
     (c) On December 8, 2009, Mr. Friedman, pursuant to a Rule 10b5-1 trading plan, exercised an option for 20,000 shares of Common Stock and sold those shares in the open market. The exercise price for this option was $5.80 and the sale price of the shares of Common Stock that were subject to this option was $8.0454. Except as set forth in this Item 5, the Reporting Persons have not effected any transactions in the Common Stock during the past 60 days.
     (d) - (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.
     The information set forth, or incorporated by reference in, Items 3 through 5 is hereby incorporated by reference.
     Below is a table setting forth the options grants to purchase Common Stock held by each of the Reporting Persons.
                                 
                    Shares    
                    Exercisable    
                    within 60    
            Shares   days of   Exercise
Name   Option Date   Plan   Outstanding   2/2/2010   Price
Friedman, Richard
                               
 
  11/28/2001   2001 Incentive Stock Plan   200,000     200,000     $12.20  
 
  1/2/2002   2001 Incentive Stock Plan   200,000     200,000     $17.80  
 
  1/2/2003   2001 Incentive Stock Plan   91,698     91,698     $  5.80  
 
  1/2/2004   2001 Incentive Stock Plan   200,000     200,000     $  7.03  
 
  1/3/2005   2001 Incentive Stock Plan   200,000     200,000     $  6.36  
 
  1/3/2006   2001 Incentive Stock Plan   200,000     200,000     $  7.54  
 
  1/2/2007   2001 Incentive Stock Plan   66,667     66,667     $  3.46  

 


 

         
CUSIP No. 09069N108   13D   Page 12 of 15
                                 
                    Shares    
                    Exercisable    
                    within 60    
            Shares   days of   Exercise
Name   Option Date   Plan   Outstanding   2/2/2010   Price
 
  1/2/2008   2001 Incentive Stock Plan   130,000     130,000     $  7.70  
 
  1/2/2008   2001 Incentive Stock Plan   70,000     70,000     $  7.70  
 
  4/29/2008   2008 Equity Incentive Plan   112,500     37,500     $  6.52  
 
  4/28/2009   2008 Equity Incentive Plan   150,000     0     $  2.73  
Smith, Richard M.
                               
 
  1/2/2009   2008 Equity Incentive Plan   105,000     35,000     $  2.27  
Posner, Barry A.
                               
 
  11/28/2001   2001 Incentive Stock Plan   70,000     70,000     $12.20  
 
  9/24/2003   2001 Incentive Stock Plan   75,000     75,000     $  7.95  
 
  7/1/2005   2001 Incentive Stock Plan   13,800     13,800     $  6.00  
 
  11/1/2006   2001 Incentive Stock Plan   158,587     158,587     $  2.47  
 
  4/29/2008   2008 Equity Incentive Plan   50,625     16,875     $  6.52  
 
  4/28/2009   2008 Equity Incentive Plan   100,000     0     $  2.73  
Rosenbaum, Stanley
                               
 
  11/1/2006   2001 Incentive Stock Plan   169,972     169,972     $  2.47  
 
  4/29/2008   2008 Equity Incentive Plan   70,312     23,438     $  6.52  
 
  4/30/2008   2008 Equity Incentive Plan   100,000     0     $  2.73  

 


 

         
CUSIP No. 09069N108   13D   Page 13 of 15
Item 7. Material to be filed as Exhibits.
     
Exhibit No.   Description
 
   
99.1
  Agreement and Plan of Merger, dated as of January 24, 2010, by and among BioScrip, Inc., Camelot Acquisition Corp., Critical Homecare Solutions Holdings, Inc., Kohlberg Investors V, L.P., Kohlberg Partners V, L.P., Kohlberg Offshore Investors V, L.P., Kohlberg TE Investors V, L.P., KOCO Investors V, L.P., Robert Cucuel, Mary Jane Graves, Nitin Patel, Joey Ryan, Colleen Lederer, Blackstone Mezzanine Partners II L.P., Blackstone Mezzanine Holdings II L.P., and S.A.C. Domestic Capital Funding, Ltd. (incorporated herein by reference to Exhibit 2.1 of BioScrip Inc.’s Current Report on Form 8-K filed January 27, 2010).
 
   
99.2
  Voting Agreement, dated as of January 24, 2010, by and among Critical Homecare Solutions Holdings, Inc., Kohlberg Investors V, L.P., Richard H. Friedman, Barry A. Posner, Richard M. Smith and Stanley G. Rosenbaum (incorporated herein by reference to Exhibit 10.2 of BioScrip Inc.’s Current Report on Form 8-K filed January 27, 2010).
 
   
99.3
  Amended and Restated 2001 Incentive Stock Plan (incorporated herein by reference to BioScrip Inc.’s definitive proxy statement for its 2003 annual meeting of stockholders filed April 30, 2003).
 
   
99.4
  2008 Equity Incentive Plan (incorporated herein by reference to Exhibit 99.1 of BioScrip Inc.’s Registration Statement on Form S-8 filed May 16, 2008).
 
   
99.5
  Form of Option Agreement for the Amended and Restated 2001 Incentive Stock Plan.
 
   
99.6
  Form of Stock Option Agreement under the 2008 Equity Incentive Plan (incorporated herein by reference to Exhibit 99.2 of BioScrip Inc.’s Registration Statement on Form S-8 filed May 16, 2008).
 
   
99.7
  Joint Filing Agreement, dated February 3, 2010, by and among Richard H. Friedman, Richard M. Smith, Barry A. Posner and Stanley G. Rosenbaum.

 


 

         
CUSIP No. 09069N108   13D   Page 14 of 15
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief, the undersigned parties certify that the information set forth in this statement is true, complete and correct.
Dated: February 3, 2010
         
     
  /s/ Richard H. Friedman    
  Richard H. Friedman   
     
 
     
  /s/ Richard M. Smith    
  Richard M. Smith   
     
 
     
  /s/ Barry A. Posner    
  Barry A. Posner   
     
 
     
  /s/ Stanley G. Rosenbaum    
  Stanley G. Rosenbaum   
     
 

 


 

         
CUSIP No. 09069N108   13D   Page 15 of 15
EXHIBIT INDEX
     
Exhibit No.   Description
 
   
99.1
  Agreement and Plan of Merger, dated as of January 24, 2010, by and among BioScrip, Inc., Camelot Acquisition Corp., Critical Homecare Solutions Holdings, Inc., Kohlberg Investors V, L.P., Kohlberg Partners V, L.P., Kohlberg Offshore Investors V, L.P., Kohlberg TE Investors V, L.P., KOCO Investors V, L.P., Robert Cucuel, Mary Jane Graves, Nitin Patel, Joey Ryan, Colleen Lederer, Blackstone Mezzanine Partners II L.P., Blackstone Mezzanine Holdings II L.P., and S.A.C. Domestic Capital Funding, Ltd. (incorporated herein by reference to Exhibit 2.1 of BioScrip Inc.’s Current Report on Form 8-K filed January 27, 2010).
 
   
99.2
  Voting Agreement, dated as of January 24, 2010, by and among Critical Homecare Solutions Holdings, Inc., Kohlberg Investors V, L.P., Richard H. Friedman, Barry A. Posner, Richard M. Smith and Stanley G. Rosenbaum (incorporated herein by reference to Exhibit 10.2 of BioScrip Inc.’s Current Report on Form 8-K filed January 27, 2010).
 
   
99.3
  Amended and Restated 2001 Incentive Stock Plan (incorporated herein by reference to BioScrip Inc.’s definitive proxy statement for its 2003 annual meeting of stockholders filed April 30, 2003).
 
   
99.4
  2008 Equity Incentive Plan (incorporated herein by reference to Exhibit 99.1 of BioScrip Inc.’s Registration Statement on Form S-8 filed May 16, 2008).
 
   
99.5
  Form of Option Agreement for the Amended and Restated 2001 Incentive Stock Plan.
 
   
99.6
  Form of Stock Option Agreement under the 2008 Equity Incentive Plan (incorporated herein by reference to Exhibit 99.2 of BioScrip Inc.’s Registration Statement on Form S-8 filed May 16, 2008).
 
   
99.7
  Joint Filing Agreement, dated February 3, 2010, by and among Richard H. Friedman, Richard M. Smith, Barry A. Posner and Stanley G. Rosenbaum.

 

EX-99.5 2 y81926exv99w5.htm EX-99.5 exv99w5
Exhibit 99.5
NON-QUALIFIED STOCK OPTION AGREEMENT
     NON-QUALIFIED STOCK OPTION AGREEMENT made as of the       day of                      20      (the “Grant Date”), between BioScrip, Inc., a Delaware corporation (the “Company”), and                      (the “Awardee”).
     WHEREAS the Company desires to afford the Awardee an opportunity to purchase shares of common stock, $.0001 par value per share, of the Company (“Common Stock”) as hereinafter provided, in accordance with the provisions of the Company’s 2001 Incentive Stock Plan (as amended and restated as of the date hereof, the “Plan”), a copy of which has been provided to Awardee.
     NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration the legal sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereunder, agree as follows:
     1. Grant of Option. The Company hereby grants to the Awardee the right and option (the “Option”) to purchase all or any part of an aggregate of ___ shares of Common Stock (the “Shares”). The Option is in all respects limited and conditioned as hereinafter provided, and is subject to the terms and conditions of the Plan now in effect and as they may be amended from time to time, in accordance with the Plan (which terms and conditions are and automatically shall be incorporated herein by reference and made a part hereof and shall control in the event of any conflict with any other terms of this Option Agreement). It is intended that the Option granted hereunder be a non-qualified stock option (“NQSO”) and not an incentive stock option (“ISO”) as such term is defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).
     2. Purchase Price. The purchase price per share of the Shares under the Option shall be $      .
     3. Term. Unless earlier terminated pursuant to any provision of the Plan or of this Option Agreement, this Option shall expire on                           , 20      (the “Expiration Date”). This Option shall not be exercisable on or after the Expiration Date.
     4. Exercise of Option. This Option may be exercised as to one-third of the Shares (rounded to the nearest whole share) on each of the first three yearly anniversaries of the date hereof so that the Option shall be exercisable as to all Shares on the third such anniversary. Options that become exercisable in accordance with the foregoing shall remain exercisable, subject to the provisions contained in the Plan and in this Option Agreement (including without limitation Paragraph 8 below), until the expiration of the term of this Option as set forth in Paragraph 3 or until other termination of the Option.

 


 

     5. Method of Exercising Option. Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised upon written notice to the Company or the securities broker then designated by the Company, the form of such notice shall be provided by the Company upon request. Such notice shall state the election to exercise the Option and the number of shares with respect to which it is being exercised; shall be signed by the person or persons so exercising the Option; shall, if the Company so requests, be accompanied by the investment certificate referred to in Paragraph 6 hereof and shall be accompanied by payment of the full Option price of such shares.
     The Option price shall be paid to the Company:
     (a) In cash, or in its equivalent;
     (b) In Company Common Stock previously acquired by the Awardee, provided that if such shares of Common Stock were acquired through exercise of an ISO or NQSO or of an option under a similar plan, such shares have been held by the Awardee for a period of more than 12 months on the date of exercise;
     (c) In Company Common Stock newly acquired by the Optionee upon exercise of the Option; or
     (d) In any combination of (a), (b) and (c) above.
     In the event such Option price is paid, in whole or in part, with shares of Common Stock, the portion of the Option price so paid shall be equal to the “fair market value” on the date of exercise of the Option, as such “fair market value” is determined in Section 5(a) of the Plan, of the Common Stock surrendered in payment of such Option price.
     Upon receipt of such notice and payment, the Company, as promptly as practicable, shall deliver or cause to be delivered a certificate or certificates representing the shares with respect to which the Option is so exercised. The certificate or certificates for the shares as to which the Option shall have been so exercised shall be registered in the name of the person or persons so exercising the Option (or, if the Option shall be exercised by the Awardee and if the Awardee shall so request in the notice exercising the Option, shall be registered in the name of the Awardee and the Awardee’s spouse, jointly, with right of survivorship) and shall be delivered as provided above to or upon the written order of the person or persons exercising the Option. In the event the Option shall be exercised by any person or persons after the legal disability or death of the Awardee, such notice shall be accompanied by appropriate proof of the right of such person or persons to exercise the Option. All shares that shall be purchased upon the exercise of the Option as provided herein shall be fully paid and non-assessable by the Company.
     The foregoing provisions of this Section 5 to the contrary notwithstanding, this Option may be exercised in such other manner consistent with the Plan and applicable law as from time to time may be authorized in writing by the Company with respect to such “cashless” option exercise arrangements as the Company from time to time may maintain with securities brokers. Any such arrangements and written authorizations may be terminated at any time by the Company without notice to the Awardee.

2


 

     6. Shares to be Purchased for Investment. Unless the Company has theretofore notified the Awardee that a registration statement covering the shares to be acquired upon the exercise of the Option has become effective under the Securities Act of 1933 and the Company has not thereafter notified the Awardee that such registration is no longer effective, or unless counsel to the Company shall be otherwise satisfied that the Awardee would be permitted under applicable law to immediately resell shares acquired upon the exercise of the Option, it shall be a condition to any exercise of this Option that the shares acquired upon such exercise be acquired for investment and not with a view to distribution, and the person effecting such exercise shall submit to the Company a certificate of such investment intent, together with such other evidence supporting the same as the Company may request. The Company shall be entitled to restrict the transferability of the shares issued upon any such exercise to the extent necessary to avoid a risk of violation of the Securities Act of 1933 (or of any rules or regulations promulgated thereunder) or of any state laws or regulations. Such restrictions may, at the option of the Company, be noted or set forth in full on the share certificates.
     7. Non-Transferability of Option. This Option is not assignable or transferable, in whole or in part, by the Awardee otherwise than by the laws of descent and distribution, and during the lifetime of the Awardee the Option shall be exercisable only by the Awardee or by his guardian or legal representative.
     8. Termination of Employment. If the Awardee’s Employment with the Company and all Affiliates, as defined in the Plan, is terminated for any reason (including death or disability) prior to the Expiration Date of this Option as set forth in Paragraph 3, this Option may be exercised, to the extent of the number of shares with respect to which the Awardee could have exercised it on the date of such termination of Employment, or to any greater extent permitted by the Committee, by the Awardee (or, in case of Awardee’s disability, by the Awardee’s legal representative or, in case of Awardee’s death, by the Awardee’s estate, personal representative or beneficiary who acquired the right to exercise this Option by bequest or inheritance or by reason of Awardee’s death) at any time prior to thirty days following the date of termination of employment.
     9. Withholding of Taxes. The obligation of the Company to deliver shares of Common Stock upon the exercise of the Option shall be subject to applicable federal, state and local tax withholding requirements.
     If the exercise of this Option is subject to the withholding requirements of applicable federal tax laws, the Committee may permit the Awardee, subject to the provisions of the Plan and such additional withholding rules (the “Withholding Rules”) as shall be adopted by the Committee, to satisfy the minimum federal, state and local withholding tax, in whole or in part, by electing to have the Company withhold (or by returning to the Company) shares of Common Stock, which shares shall be valued, for this purpose, at their fair market value on the date of exercise of the Option (or, if later, the date on which the Optionee recognizes ordinary income with respect to such exercise) (the “Determination Date”). An election to use shares of Common Stock to satisfy tax withholding requirements must be made in compliance with and subject to the Withholding Rules, and the Committee may not withhold shares in excess of the number necessary to satisfy the minimum federal, state and local income tax withholding requirements. In the event shares of Common Stock acquired under the exercise of an ISO are used to satisfy such withholding

3


 

requirement, such shares of Common Stock must have been held by the Awardee for a period of not less than the holding period described in section 422(a)(1) of the Code on the Determination Date, or if such shares of Common Stock were acquired through exercise of an NQSO or of an option under a similar plan, such option was granted to the Awardee at least six months prior to the Determination Date.
     10. Governing Law. This Option Agreement shall be construed in accordance with, and its interpretation shall be governed by applicable federal law, and otherwise by the laws of the State of Delaware.
     IN WITNESS WHEREOF, the Company has caused this Non-Qualified Stock Option Agreement to be duly executed by its officers thereunto duly authorized, and the Awardee has hereunto set his hand and seal, all on the day and year first above written.
         
  BIOSCRIP, INC.
 
 
  By:      
    Barry A. Posner, Executive Vice President   
       
 
ACCEPTED AND AGREED TO:
 
 , Awardee

4

EX-99.7 3 y81926exv99w7.htm EX-99.7 exv99w7
Exhibit 99.7
JOINT FILING AGREEMENT
     Richard H. Friedman, Richard M. Smith, Barry A. Posner and Stanley G. Rosenbaum hereby agree to jointly file the Schedule 13D, and all amendments thereto, with the Securities and Exchange Commission with respect to the beneficial ownership by them of shares of Common Stock, par value $.0001 per share, of BioScrip, Inc.
Dated: February 3, 2010
         
     
  /s/ Richard H. Friedman    
  Richard H. Friedman   
     
 
     
  /s/ Richard M. Smith    
  Richard M. Smith   
     
 
     
  /s/ Barry A. Posner    
  Barry A. Posner   
     
 
     
  /s/ Stanley G. Rosenbaum    
  Stanley G. Rosenbaum   
     
 

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