As filed with the Securities and Exchange Commission on AugustJuly 12, 19982001
                                                   Registration No. 333-_____
================================================================================333-

===============================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                           --------------------------

                                    FORM S-3
                             REGISTRATION STATEMENT
                                      Under
                           The Securities Act ofUNDER
                           THE SECURITIES ACT OF 1933
                           --------------------------

                                 MIM CORPORATION
             (Exact name of registrant as specified in its charter)

                 Delaware                                  05-0489664
     (State or other jurisdiction of                    (I.R.S. Employer
      incorporation or organization)                  Identification No.)

                                 One Blue Hill Plaza
                           Pearl River,MIM Corporation
                               100 Clearbrook Road
                            Elmsford, New York 1096510523
                                 (914) 735-3555460-1600
    (Address, including zip code, and telephone number, including area code,
                  of registrant's principal executive offices)

                                 Richard H. Friedman
                            Chairman of the Board and
                             Chief Executive OfficerBarry A. Posner
                                 MIM Corporation
                               One Blue Hill Plaza
                           Pearl River,100 Clearbrook Road
                            Elmsford, New York 1096510523
                                 (914) 735-3555460-1600
            (Name, address, including zip code, and telephone number,
                   including area code, of agent for service)

                              Copies requested to:

                              Robert E. William Bates, II
                                 King Jr.
                               Rogers & Wells LLP
                                 200 ParkSpalding
                           1185 Avenue of the Americas
                            New York, New York 1016610036
                                 (212) 878-8000556-2100
                           --------------------------

            Approximate date of commencement of proposed sale to the public: From
time to time after the effective date of this Registration Statement as determined by
market conditions. 

                                   ----------Statement.

            If the only securities being registered on this Formform are being
offered pursuant to dividend or interest reinvestment plans, please check the
following box: |_|box. [ ]

            If any of the securities being registered on this Formform are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box. |X|

                                   ----------

[x] If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ] If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ] If delivery of the prospectus is expected to be made pursuant to Rule 434, please check the following box. [ ] CALCULATION OF REGISTRATION FEE ================================================================================================================================
=================================================================================================================================== Proposed Maximum Proposed OfferingMaximum Maximum Title of Each Class of SecuritiesShares Amount to beTo Be Aggregate Price Aggregate Amount of to beOf To Be Registered Registered Per Unit(1)Share (1) Offering Price(1)Price (1) Registration Fee - ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------- --------------------- ---------------------- -------------------- Common Stock,stock, par value $.0001......... 2,323,053 shares $4.0938 $9,510,114.37 $2,805.48 ================================================================================================================================
$.0001 per share................................. 2,697,947 $6.11 $16,484,456.17 $4,121.11 ========================================== ================= ===================== ====================== ===================== (1) Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(c). The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. ===================================================================================================================================
4 Subject to Completion, Dated July 12, 2001 PROSPECTUS MIM CORPORATION --------------------------- 2,697,947 Shares of Common Stock (par value $.0001 per Share) --------------------------- This prospectus relates to the offering from time to time of up to 2,697,947 shares of common stock of MIM Corporation by one of our stockholders. We will not receive any of the proceeds from the sale of the shares being offered. We are registering these shares, but the registration fee. Calculated pursuantof such shares does not necessarily mean that any of such shares will be offered or sold by the selling stockholder. The selling stockholder from time to Rule 457(c)time may offer and sell the shares directly to purchasers or through agents, underwriters or dealers on terms to be determined at the time of sale. If required, the names of any agents, underwriters or dealers and any other required information will be set forth in an accompanying prospectus supplement. The common stock is listed on the basisNasdaq National Market under the symbol "MIMS." On July 11, 2001, the last sale price of the average of the high and low prices in consolidated tradingour common stock as reported on the National Association of Security Dealers Automated Quotation Stock Market'sNasdaq National Market was $6.11 per share. Investing in the common stock involves certain risks. See "Risk Factors" beginning on August 6, 1998. The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall filepage 3 for a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a)discussion of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. ================================================================================ these risks. The information contained in this Prospectusprospectus is not complete and may be changed. The Selling Security Holdersselling stockholder may not sell these securities nor may they accept offers to buy these securities until the related registration statement which we filed with the Securities and Exchange Commission becomesis effective. This Prospectusprospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where suchthe offer or sale is not permitted. Subject to completion, dated August 12, 1998 PROSPECTUS 2,323,053 Shares MIM CORPORATION Common Stock ------------------- This Prospectus relates to the 2,323,053 shares of our Common Stock which the entities and people described under "Selling Security Holders" may offer from time to time on The Nasdaq Stock Market's National Market ("Nasdaq"), where our Common Stock is listed for trading under the symbol "MIMS," in other markets where our Common Stock is traded, in negotiated transactions or in a combination of such methods of sale. They will sell the Common Stock at prices which are current when the sales take place or at other prices to which the parties agree. The respective Selling Security Holders will pay any brokerage fees or commissions relating to sales by them. See "Method of Sale." The Selling Security Holders received the shares to which this Prospectus relates in transactions which were exempt from registration. The registration of their shares does not necessarily mean that any or all of the Selling Security Holders will sell their shares. We will not receive any of the proceeds of sales by the Selling Security Holders. We are paying the costs of preparing and filing the Registration Statement of which this Prospectus is a part. On August 10, 1998, the last reported sale price of the Common Stock on Nasdaq was $4.00 per share. See "Risk Factors" beginning on page 4 for a discussion of certain factors you should consider before you invest in our Common Stock. - ----------------------------------------------------------------------------------------------------------- Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities and they have not determined ifor passed upon the accuracy or adequacy of this Prospectus is truthful or complete.prospectus. Any representation to the contrary is a criminal offense. - -------------------------------------------------------------------------------- ---------------------------------------------- The date of this Prospectusprospectus is ______________, 1998July 12, 2001. We have not authorized anyone to give any information or to make any representation which is not contained in this Prospectus or in a document incorporated by reference into this Prospectus. If anyone gives any information or makes any representation which is not contained in, or incorporated into, this Prospectus, you must not rely upon it as having been authorized by us or by anyone acting on our behalf. This Prospectus is not an offer to sell, or a solicitation of an offer to buy, our securities by any person in any jurisdiction in which it is unlawful for that person to make such an offer or solicitation. No matter when you receive this Prospectus or purchase securities to which it relates, you must not assume it is correct at any time after its date. ----------------------- TABLE OF CONTENTS Page ----About This Prospectus................................................. 1 Where You Can Find More Information................................... 1 MIM Corporation....................................................... 3 Risk Factors.......................................................... 3 Special Note Regarding Forward-Looking Statements..................... 9 Use of Proceeds....................................................... 10 Selling Stockholder................................................... 10 Plan of Distribution.................................................. 10 Validity of Common Stock.............................................. 12 Experts............................................................... 12 ABOUT THIS PROSPECTUS This prospectus is part of a registration statement that we filed with the Securities and Exchange Commission using a "shelf" registration process. Under this shelf process, one of our stockholders, which we refer to as the selling stockholder, may sell up to an aggregate of 2,697,947 shares of common stock in one or more offerings. You should read this prospectus and any applicable prospectus supplement provided to you together with the additional information described under the heading "Where You Can Find More Information." The registration statement that contains this prospectus (including the exhibits to the registration statement) contains additional information about our company and the securities offered under this prospectus. That registration statement can be read at the SEC web site or at the SEC offices mentioned under the heading "Where You Can Find More Information." WHERE YOU CAN FIND MORE INFORMATION ....................................... 2 INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE ........................... 3 FORWARD-LOOKING INFORMATION ............................................... 3 RISK FACTORS .............................................................. 4 THE COMPANY ............................................................... 9 USE OF PROCEEDS ........................................................... 9 SELLING SECURITY HOLDERS .................................................. 9 METHOD OF SALE ............................................................ 10 DESCRIPTION OF CAPITAL STOCK .............................................. 11 LEGAL MATTERS ............................................................. 12 EXPERTS ................................................................... 12 ----------------------- WHERE YOU CAN FIND MORE INFORMATION We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance with those requirements, we file annual, quarterly and special reports, proxy statements and other information with the Securities and Exchange Commission (the "Commission").SEC. Our SEC filings are available to the public over the Internet at the SEC's web site at http://www.sec.gov. You may also read and copy those reports and proxy statements and any other informationdocument we file with the CommissionSEC at theits public reference facilities maintained by the Commission at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, and at the Regional Offices of the Commission located at 7 World Trade Center, New York, New York 10048 and Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661. You may also obtain copies of that information from the Commission's Public Reference Section at 450 Fifth Street, N.W., Washington, D.C. 20549,20549. You can also obtain copies of the documents at prescribed rates.rates by writing to the Public Reference Section of the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the CommissionSEC at 1-800- SEC-03301-800-SEC-0330 for further information on the operation of the public reference rooms. The Commission maintains a web site that contains reports, proxy and information statements and other information regarding registrants, including MIM 2 Corporation, that file electronically with it. You may access the Commission's web site at "http://www.sec.gov".facilities. Our Common Stock is listed for trading on Nasdaq. You maySEC filings are also read any such reports, proxy statements and other information filed or to be filed by usavailable at the officesoffice of the Nasdaq National Association of Securities Dealers,Market, Inc., Market Listing Section, at 1735 K Street, N.W., Washington, D.C. 20006. We have filed with the Commission a Registration Statement on Form S-3 (the "Registration Statement") under the Securities Act of 1933, as amended (the "Securities Act"). This Prospectus is a part of the Registration Statement. This Prospectus does not contain all the information contained in the Registration Statement because we have omitted certain parts of the Registration Statement in accordance with the rules and regulations of the Commission. For further information, we refer you20006-1506. The SEC allows us to the Registration Statement, which you may read and copy at, or obtain from, the Commission or Nasdaq in the manner described above. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE We incorporate by reference into this Prospectusprospectus the following documents whichinformation that we previously filedfile with the CommissionSEC, which means that we disclose important information to you by referring to these documents and the information contained therein. The information incorporated by reference is an important part of this prospectus and the accompanying prospectus supplement. In addition, any information that we file with the SEC subsequent to the date of this prospectus will automatically update this prospectus. We incorporate by reference the documents listed below and any filings that we make with the SEC 1 under the File Number 1-11993. (a) Our Annual Report on Form 10-K for the fiscal year ended December 31, 1997, as amended on Form 10-K/A filed on April 30, 1998 and Form 10-K/A filed on August 5, 1998. (b) Our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1998, as amended on Form 10-Q/A filed on August 5, 1998 and Form 10-Q/A filed on August 6, 1998. (c) Our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1998. (d) All other reports we have filed pursuant to Sectionsections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act sinceof 1934 after the initial filing of the registration statement that contains this prospectus and prior to the time that the selling stockholder sells all of the common stock offered by this prospectus: o Annual Report on Form 10-K for fiscal year ended December 31, 1997. When we file documents in accordance with Sections 13(a), 13(c), 14 and 15(d)2000. o Quarterly Report on Form 10-Q for the period ended March 31, 2001. o The description of the Exchange Act between the date of this Prospectus and the time we file a post-effective amendment to thecommon stock included in our Registration Statement reportingon Form 8-A/A dated May 20, 1999. You may request a copy of these filings (other than an exhibit to a filing unless that all the securities which are the subject of the Registration Statement have been sold or deregistering any securities which have not been sold, those documents we file will be incorporated into this Prospectus and will be a part of it beginning on the date those documents are filed. If any document which we file changes anything said in this Prospectus or in an earlier document whichexhibit is incorporated into this Prospectus, the later document will modify or supersede what is said in this Prospectus or the earlier document. We will provide, without charge, at the written or oral request of anyone to whom this Prospectus is delivered, copies of the documentsspecifically incorporated by reference in this Prospectus, other than exhibitsinto that filing) at no cost, by writing to those documents which are not specifically incorporated by reference. Requests should be directed to:or telephoning us at the following address: MIM Corporation One Blue Hill Plaza, Pearl River,100 Clearbrook Road Elmsford, New York 10965, Attention: Corporate Secretary (Telephone:10523 (914) 735-3555, ext. 2229). FORWARD-LOOKING INFORMATION Certain460-1600 Attn: General Counsel You should only rely on the information both included and incorporated by reference or set forth in this Prospectus may contain forward-looking statements withinprospectus or any applicable prospectus supplement. We have not authorized anyone else to provide you with different information. We are only offering these securities in states where the meaningoffer is permitted. You should not assume that the information in this prospectus or the applicable prospectus supplement is accurate as of Section 27Aany date other than the dates on the front of such documents. 2 MIM CORPORATION We are a pharmacy benefit management, specialty pharmaceutical and fulfillment/e-commerce organization that partners with healthcare providers and sponsors to control prescription drug costs. Our pharmacy benefit products and services use clinically sound guidelines to ensure cost control and quality care. Our specialty pharmaceutical division specializes in serving the chronically ill afflicted with life threatening diseases and genetic impairments. Our fulfillment and e-commerce pharmacy specializes in serving individuals that require long-term maintenance medications. Our online pharmacy, www.MIMRx.com, develops private label websites to offer affinity groups and healthcare providers innovative and customized health information services and products on the Internet for the benefit of their members. We are incorporated under the laws of the Securities ActState of Delaware. Our principal executive offices are located at 100 Clearbrook Road, Elmsford, New York 10523, and Section 21E of the Exchange Act, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of our company to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations 3 are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," estimate," "believe," "intend" or "project" or the negative thereof or other variations thereon or comparable terminology. Factors which could have a material adverse effect on the operations and future prospects of our company include, but are not limited to, changes in: economic conditions generally and the pharmaceutical market specifically, legislative/regulatory changes, availability of capital, interest rates, competition, supply and demand for our services and general accounting principles, policies and guidelines applicable to our company. You are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties. These risks and uncertainties should be considered in evaluating any forward-looking statements contained or incorporated by reference herein. We do not undertake any obligations to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events and circumstances.telephone number is (914) 460-1600. RISK FACTORS Before you invest in shares of our Common Stock, you should be aware that there are various risks, including those described below. You should carefully consider carefully these riskthe following factors together with all of theand other information included or incorporated by reference in this Prospectusprospectus before you decidedeciding to purchaseinvest in shares of common stock. We face substantial competition in our Common Stock. This section includes or refers to certain forward-looking statements; you should refer to the explanation of the qualifications and limitations on such forward-looking statements discussed above. Dependence on RxCare Relationship RxCare of Tennessee, Inc. ("RxCare"), a pharmacy services administrative organization owned by the Tennessee Pharmacists Association and representing approximately 1,600 retail pharmacies, initially retained us in 1993 to assist in obtaining health plan pharmaceutical benefit business for Tennessee pharmacies and related services, including pharmacy benefit design and pricing. In January 1994, the State of Tennessee instituted its TennCare(TM) state health program ("TennCare") by contracting with plan sponsors to provide mandated health services to Medicaid eligible Tennessee residents on a capitated basis. In turn, certain of these plan sponsors contracted with RxCare to provide TennCare-mandated pharmaceutical benefits to their TennCare beneficiaries through RxCare's network of retail pharmacies, in most cases on a corresponding capitated basis. Over time, substantially all of these contracts have been restructured or renewed under fee-for-service pricing arrangements. Since January 1994, we have been providing a broad range of pharmacy benefit management services with respect to RxCare's TennCare and private pharmaceutical benefit businesses under an agreement with RxCare formalized in March 1994 and thereafter amended (the "RxCare Contract"). We assist RxCare in designing and marketing its pharmacy benefit management services, and perform essentially all of RxCare's obligations under its pharmacy benefit contracts with health plan sponsors, pay certain amounts to RxCare and are compensated by sharing with RxCare in the profit, if any, from activities under RxCare's contracts with the sponsors. As of December 31, 1997, we had contracts to service eight TennCare sponsors with 1.2 million members under the RxCare Contract. RxCare's contracts with Tennessee Primary Care Network, Inc., Tennessee Health Partnership, Tennessee Behavioral Health, Inc. and Blue Cross and Blue Shield of Tennessee ("BCBS-TN") accounted for approximately 21%, 13%, 10% and 10%, respectively, of our revenues in 1997. While we believe that each of these contracts will be renewed, we cannot assure you that all or any one of these contracts will be renewed at all or on terms as favorable as those currently in effect. The failure to so renew all or any of these contracts on terms at least as favorable as those currently in effect could have a material adverse effect on our business and results of operations. 4 The RxCare Contract expires on December 31, 1998. In total, this contract accounted for 84% of our revenues in 1997. Failure to renew this contract in total or on terms as favorable as those currently in effect could have a material adverse affect on our business and results of operations. The BCBS - TN risk-based contract was canceled effective March 31, 1997 and replaced with a non-risk (fee-for-service) clinical services agreement between us and a BCBS - TN affiliate. Limited Term of Material Agreements The RxCare Contract is scheduled to expire December 31, 1998 unless renewed in accordance with its terms. RxCare's contracts with plan sponsors typically have a one-year term and are subject to automatic renewal unless notice of termination is given. Those contracts are subject to earlier termination upon the occurrence of certain events, including a breach of the agreement which is not cured within 30 days of notice, insolvency or termination of the TennCare program or of a plan sponsor's contract with the State of Tennessee. RxCare's contracts with Tennessee Primary Care Network, Inc., Tennessee Health Partnership, Tennessee Behavioral Health, Inc. and BCBS - TN accounted for approximately 21%, 13%, 10% and 10%, respectively, of our revenues in 1997. We cannot guarantee that any of the foregoing contracts or the RxCare Contract will be continued or renewed in accordance with their respective terms. The loss of any of such contracts would have a material adverse effect on our business and results of operations. We Have Had Historical Accounting Losses; We May Experience Future Losses We had losses of approximately $13.5 million, $31.8 million, $6.8 million and $2.5 million in the years ended December 31, 1997, 1996, 1995 and 1994, respectively. These historical results are not indicative of future results, but we cannot assure you that we will not incur net losses in the future. Competitionindustries. The pharmacy benefit management business isindustry, which we refer to as the PBM industry, the prescription mail service and the specialty pharmaceutical businesses are highly competitive and many of our current and potential competitors have considerably greater financial, technical, marketing and other resources.resources than we do. The pharmacy benefit managementPBM business includes a number of large, well capitalizedwell-capitalized companies with nationwide operations and many smaller organizations typically operating on a local or regional basis. SomeOne of the larger organizations areis owned by or otherwise related to a brand name drug manufacturer and may have significant influence on the distribution of pharmaceuticals. Numerous insuranceWe also compete with several national and Blue Crossregional companies that primarily provide therapeutic pharmaceutical services to the chronically ill and Blue Shield plans,genetically impaired, many of which also have substantial financial resources. Some of these competitors have been in the specialty pharmaceutical industry considerably longer than we have and have secured long-term supply or distribution arrangements for prescription pharmaceuticals necessary to treat certain chronic disease states on price terms substantially more favorable than the terms currently available to us. As a result of such advantageous pricing, we may be unable to compete with these companies on particular prescription products or in particular disease states. Any change in our relationship with managed care organizations providing health and prescription benefits under Tennessee's state health program could reduce our profitability. Historically, a majority of our revenues have been derived from providing PBM services in the state of Tennessee to managed care organizations, or MCOs, participating in Tennessee's TennCare (R) program. The TennCare (R) program operates under a demonstration waiver from the United States Health Care Financing Agency, which is due to expire on 3 December 31, 2001. We provide our ongoing service to those MCOs under this demonstration waiver program. If the waiver is not renewed, or we are not chosen to continue to provide pharmacy benefits to enrollees of a successor program, then the failure to provide such services would have a material adverse effect on our financial position and results of operations. The ongoing funding for the TennCare (R) program has been the subject of significant discussion at various governmental levels since its inception. Should the funding sources for the TennCare (R) program change significantly, our ability to serve those customers could be impacted and would have a material adverse effect on our financial position and results of operations. Increases in the price of pharmaceuticals may reduce our revenues. Under capitated arrangements, we are responsible for increases in prescription costs, which adversely affects our gross profits. In such instances, we may be required to increase capitated contract rates on new contracts and upon renewal of existing capitated contracts. However, there can be no assurance that we will be successful in obtaining these rate increases. If we lose relationships with one or more key pharmaceutical manufacturers or if the payments we receive from pharmaceutical manufacturers decline, our business, profitability and growth prospects could suffer. We have contractual relationships with numerous pharmaceutical manufacturers that pay us rebate payments based on use of selected drugs by health plan members, as well as fees for other programs and services. We believe our business, profitability and growth prospects could suffer if: o we lose relationships with one or more key pharmaceutical manufacturers; o rebates decline due to our failure to meet market share or other thresholds; o legal restrictions are imposed on the ability of pharmaceutical manufacturers to offer formulary rebates or purchase our programs or services; or o pharmaceutical manufacturers choose not to offer formulary rebates or purchase our programs or services. Over the next few years, as patents expire covering many brand name drugs that currently have substantial market share, generic products will be introduced that may substantially reduce the market share of the brand name drugs. Historically, manufacturers of generic drugs have not offered formulary rebates on their drugs. If the use of newly-approved, brand name drugs added to our formulary, which is the list of preferred prescription drugs covered by a health plan, does not offset any decline in use of brand name drugs whose patents expire, our profitability could be reduced. If we lose pharmacy network affiliations, our business, profitability and growth prospects could suffer. Our contracts with retail pharmacies, which are non-exclusive, are generally terminable by either party on short notice. If one or more of the top pharmacy chains elects to terminate its relationship with us or if we are only able to continue our relationship on terms less favorable to us, our members' access to retail pharmacies and our business could suffer. In addition, some large retail pharmacy chains either own or have strategic alliances with PBMs or could attempt to acquire or enter into 4 these kinds of relationships with PBMs in the future. Ownership of, or alliances with, PBMs by retail pharmacy chains could have a material adverse effect on our relationships with these retail pharmacy chains and on our business, profitability and growth prospects. We are subject to heightened federal regulatory scrutiny, which could result in sanctions or penalties. As a participant in the healthcare industry, our operations and relationships are subject to extensive federal and state laws and regulations and enforcement by federal and state governmental agencies. There are significant uncertainties regarding the application of many of these legal requirements to our business, and we cannot provide any assurance that a regulatory agency charged with enforcement of any of these laws or regulations will not interpret them differently or, if there is an enforcement action brought against us, that our interpretation would prevail. In addition, there are numerous proposed health care laws and regulations at the federal and state levels, many of which could materially affect our ability to conduct our business or adversely affect our results of operations. We are unable to predict what additional federal or state legislation or regulatory initiatives may be enacted in the future relating to our business or the health care industry in general, or what effect any such legislation or regulations might have on us. Under a corporate integrity agreement we entered into with the Office of Inspector General or OIG, within the U.S. Department of Health and Human Services or HHS, we are subject to increased oversight by the OIG. Should the oversight procedures reveal credible evidence of any violation of federal law, we are required to report such potential violations to the OIG and the U.S. Department of Justice. We are therefore subject to increased regulatory scrutiny and, if we commit legal or regulatory violations, we may be subject to an increased risk of sanctions or penalties, including exclusion from participation in the Medicare or Medicaid programs. Subject to certain statutory and regulatory exceptions (including exceptions relating to certain managed care, discount, group purchasing and personal services arrangements), Federal law prohibits the payment or receipt of remuneration to induce, arrange for or recommend the purchase of health care items or services paid for in whole or in part by Medicare or state health care programs (including Medicaid programs or Medicaid waiver programs, such as TennCare (R)). Certain state laws may extend the prohibition to items or services that are paid for by private insurance and self-pay patients. Our arrangements with RxCare of Tennessee, Inc., a pharmacy services administrative organization owned by the Tennessee Pharmacists Association, and other pharmacy network administrators, drug chainsmanufacturers, marketing agents, brokers, health plan sponsors, pharmacies and others parties routinely involve payments to or from persons who provide or purchase, or recommend or arrange for the purchase of, items or services paid in part by the TennCare (R) program or by other programs covered by such laws. We carefully consider the importance of such "anti-kickback" laws when structuring our operations, and believe that we are in compliance with such laws. Violation of the Federal anti-kickback statute could subject us to criminal and/or civil penalties, including exclusion from Medicare and Medicaid (including TennCare (R)) programs or state-funded programs in the case of state enforcement. The federal anti-kickback law has been interpreted broadly by courts, the OIG and administrative bodies. Because of the federal statutes, broad scope, federal regulations establish certain safe harbors from liability. 5 Safe harbors exist for certain properly reported discounts received from vendors, certain investment interest, and certain properly disclosed payments made by vendors to group purchasing organizations, as well as for other transactions or relationships. In late 1999, HHS adopted final rules revising the discount safe harbor to protect certain rebates. Because this revision is fairly recent, the guidance on how the safe harbor revision will be interpreted is not fully developed. Nonetheless, a practice that does not fall within a safe harbor is not necessarily unlawful, but may be subject to scrutiny and challenge. In the absence of an applicable exception or safe harbor, a violation of the statute may occur even if only one purpose of a payment arrangement is to induce patient referrals or purchases. Among the practices that have been identified by the OIG as potentially improper under the statute are certain "product conversion programs" in which benefits are given by drug manufacturers to pharmacists or physicians for changing a prescription (or recommending or requesting such a change) from one drug to another. Anti-kickback laws have been cited as a partial basis, along with state consumer protection laws, for investigations and multi-state settlements relating to financial incentives provided by drug manufacturers to retail pharmacies in connection with such programs. Certain governmental entities have commenced investigations of PBM companies and other companies having dealings with the PBM industry and have identified issues concerning selection of drug formularies, therapeutic substitution programs and discounts or rebates from prescription drug manufacturers. Additionally, at least one state has filed a lawsuit concerning similar issues against a health plan. To date, we have not been the subject of any such investigation or suit and have not received subpoenas or been requested to produce documents for any such investigation or suit. However, there can be no assurance that we will not receive subpoenas or be requested to produce documents in pending investigations or litigations in the future. We believe that we are in compliance with the legal requirements imposed by the anti-remuneration laws and regulations, and we believe that there are material and substantial differences between drug switching programs that have been challenged under these laws and the therapeutic interchange practices and formulary management programs offered by us to our customers. However, there can be no assurance that we will not be subject to scrutiny or challenge under such laws or regulations, or that any such challenge would not have a material adverse effect upon us. Pending and future litigation could materially affect our relationships with pharmaceutical manufacturers or subject us to significant monetary damages. Since 1993, retail pharmacies have filed over 100 separate lawsuits against pharmaceutical manufacturers, wholesalers and certain PBMs, challenging brand name drug pricing practices under various state and federal antitrust laws. The plaintiffs alleged, among other things, that the manufacturers had offered, and certain PBMs had knowingly accepted, discounts and rebates on purchases of brand name prescription drugs that violated the Federal Sherman Act and the Federal Robinson-Patman Act. Some manufacturers settled certain of these actions, including a Sherman Act case brought on behalf of a nationwide class of retail pharmacies. The class action settlements generally provided for commitments by the manufacturers in their discounting practices to retail pharmacies. The defendants who did not settle won the 6 Sherman Act class action on a directed verdict. With respect to the cases filed by plaintiffs who opted out of the class action, some drug manufacturers have settled certain of these actions, but such settlements are not part of the public record. The Robinson-Patman Act cases are still pending. We are not currently a party to any of these proceedings. To date, we do not believe any of these settlements have had a material adverse effect on our business. However, we cannot provide any assurance that the terms of the settlements will not materially adversely affect us in the future or that we will not be made a party to any separate lawsuit. In addition, we cannot predict the outcome or possible ramifications to our business of the Robinson-Patman Act cases. If legislative or regulatory initiatives restrict our ability to use patient identifiable medical information, our clinical programs and our business growth strategy based on these services could suffer. Through our health improvement programs, we help our health plan sponsor customers identify individuals who will most benefit from the programs. Governmental restrictions on the use of patient identifiable information may adversely affect our ability to conduct health improvement programs and medical outcome studies and could adversely affect our growth strategy based on these programs. Federal and state legislation has been proposed, and some state laws have been enacted, to restrict the use and disclosure of patient identifiable medical information. Legislation could be enacted in the future that severely restricts or prohibits our use of patient identifiable information, which could harm our business, profitability and growth prospects. In December 2000, HHS issued final regulations regarding the privacy of individually-identifiable health information pursuant to the Health Insurance Portability and Accountability Act of 1996, or HIPAA. This final rule on privacy applies to both electronic and paper records and imposes extensive requirements on the way in which health care providers, health plan sponsors and their business associates use and disclose protected information. The final rule gives patients significant rights to understand and control how their protected health information is used and disclosed. Direct providers, such as pharmacies, are required to obtain patient consents for treatment, payment and health care operations. For all uses or disclosures of protected information that do not involve treatment, payment or health care operations, the rule requires that all covered entities obtain a valid patient authorization. In most cases, use or disclosure of protected health information must be limited to the minimum amount necessary to achieve the purpose of the use or disclosure. Organizations subject to the rule will have approximately two years to comply with its provisions. In addition, HHS has proposed, but not yet finalized, regulations pursuant to HIPAA that govern the security of individually-identifiable health information. Sanctions for failing to comply with standards issued pursuant to HIPAA include criminal penalties and civil sanctions. Due to the complex and controversial nature of the privacy regulations, they may be subject to court challenge, as well as further legislative and regulatory actions that could alter their effect. We cannot at this time predict with specificity what impact the recently adopted final rule on the privacy of individually-identifiable health information, or the proposed rule on security of individually-identifiable health information may have on us. However, they will likely increase our burden of regulatory compliance with respect to our health improvement programs and other information-based products, and may reduce the amount of information we may use if patients do not consent to such use. There can be no assurance that the restrictions and duties imposed by the recently adopted final rule on the privacy of individually-identifiable health information, or the proposed rule on security of individually-identifiable health information, will not have a material adverse effect on our business, profitability and growth prospects. 7 Even without new legislation and beyond the final federal regulations, individual health plan sponsor customers could prohibit us from including their patients' medical information in our various databases of medical data. They could also have their own pharmacy benefit management capabilities. Dependence on Key Managementprohibit us from offering services that involve the compilation of such information. The loss of a key employee could cause our business to suffer. Our success is largely dependent on the services of Richard H. Friedman, our Chairman and Chief Executive Officer, and to a lesser extent, other key management personnel. We have an employment agreement with Mr. Friedman which provides for his continued employment. However, we cannot assure you that we will be able to retain his services or the services of any other key management personnel. The loss of the services of one or more of our senior management could have a material adverse effect uponcause our business, operating resultsprofitability and financial condition. Riskgrowth prospects to suffer. We have anti-takeover provisions that could delay or prevent a change in control, even if it would benefit stockholders. We have adopted anti-takeover provisions that could delay or prevent a third party from gaining control of Managing Growth Since we went publicus in Augusta transaction that our board of 1996, we have been attemptingdirectors has not negotiated and approved, even if such change in control would be beneficial to grow at a rapid pace. Rapid growth may strain our financial resources. Our ability to manage growth effectively will require that we continue to hire, train and manage additional employees. We cannot assure you that we will be able to continue to expand ourstockholders. These anti-takeover provisions could depress the market presence in current locations or successfully enter other markets. If we are unable to manage our growth effectively, our business and results of operations could be adversely affected. 5 Risk Associated with Expansion Our current strategy contemplates the continued growthprice of our company through mergerscommon stock. These anti-takeover provisions include: o change in control provisions in employment agreements with various executive officers; o restrictions on who may call a special meeting of stockholders; and acquisitions of other companies and business entities which engage in pharmaceutical benefit management services. However, any business acquisition involves inherent uncertainties, such as the effect on the acquired business of integration intoo a larger organization and the availability of management resources to oversee the operation of the acquired business. Potential obstacles to the successful integration of the acquired business include, among others, consolidating financial, accounting and managerial functions and eliminating operational overlaps between our businesses, and adding and integrating key personnel. Even though the acquired businesses may have been successful as independent companies prior to the merger or acquisition, we cannot assure you that their success will continue after the merger or acquisition. Significant Control by Management and Significant Stockholders As of July 30, 1998, our current executive officers and directors owned approximately 42.6%stockholders' rights plan. The trading price of our outstanding Common Stock. Giving effect to the issuance of 3,912,448 shares of Common Stock in the merger with Continental Managed Pharmacy Services, Inc., scheduled to be consummated in August 1998, and due to a scheduled change in management, our executive officers and directors will own approximately 11.5% (assuming no sales of shares by such persons subsequent to such date) after the merger. Together, after the merger, our executive officers and directors will have the power to influence the outcome of virtually all corporate actions requiring stockholder approval, including the election of directors. In addition, after the merger, John H. Klein (formerly Chief Executive Officer and Chairman of the Board of Directors) and E. David Corvese (formerly Vice Chairman of the Board of Directors) will beneficially own 20.2% and 16.0%, respectively,common stock is volatile. The trading price of our outstanding Common Stock (assuming no sales of shares by such persons subsequent to such date). As such, each, independently or together, will have the power to influence the outcome of virtually all corporate actions requiring stockholder approval, including the election of directors. Government Regulation Our current and planned businesses are subject to extensive federal and state laws and regulations. Subject to certain exceptions, federal law (the "Federal Anti-Kickback Statute") prohibits the payment or receipt of any remuneration, directly or indirectly, to induce, arrange for or recommend the purchase of health care items or services paid for in whole or in part by Medicare or state health care programs (including Medicaid and TennCare). In addition, certain state laws (including professional licensing laws prohibiting fee-splitting) contain similar provisions that may extend the prohibition to cover items or services that are paid for by private insurance and self-pay patients. We cannot assure you that our practices will be found to be protected by certain so-called "safe harbor" regulations, which provide insulation from prosecution under the Federal Anti-Kickback Statute, and in some instances it is clear that they are not so protected. We are also subject to various false claim, drug distribution, antitrust and consumer protection laws and maycommon stock could be subject to certainwide fluctuations in response to quarter-to-quarter variations in our operating results, government regulatory action, general conditions in the pharmaceutical industry, increased price competition, changes in earnings estimates by analysts or other laws,events or factors, many of which are beyond our control. In addition, the stock market has experienced extreme price and volume fluctuations. 8 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This prospectus may include or incorporate by reference forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, including various state insurance laws. While management believes that we arestatements regarding our expectations, hopes, beliefs, intentions or strategies regarding the future. These statements may be included in material compliance with all existing laws and regulations material to the operation ofinformation incorporated by reference above under "Where You Can Find More Information." Forward looking statements may include statements relating to: o our business manydevelopment activities; o sales and marketing efforts; o the status of material contractual arrangements including the laws and regulations affecting us are uncertain in their application and are subject to interpretation and change. Laws regulating health care businesses, and interpretations thereof, are undergoing rapid change. As controversies continue to arise in this area, for example, regardingnegotiation or re-negotiation of such arrangements; o future capital expenditures; o the effortseffects of plan sponsors and pharmacy benefit managers to limit formularies, alter drug choice and establish limited networks of participating pharmacies, we expect federal and state regulation and enforcement priorities in this area to increase, the impact of which we cannot currently predict. It is possible that we will be subject to scrutiny or challenge under one or more of these laws. Any such challenge, whether or not successful, could have a material adverse effect upon our business and results of operations. Violation 6 of the Federal Anti-Kickback Statute, for example, may result in criminal penalties, as well as exclusion from the Medicare and Medicaid (including TennCare) programs. Further, it is possible that we will not be able to obtain or maintain any of the regulatory approvals that may be required to operate our business, and the failure to do so could have a material adverse effectcompetition on our business and future operating performance; o the results, benefits and risks associated with integration of operations. In general,acquired companies; and o the likely outcome and the effect of legal proceedings on our mail service pharmacybusiness and operations and/or the resolution or settlement thereof. Investors are cautioned that any such forward looking statements are not guarantees of future performance and dispensing facilities are regulated byinvolve risks and uncertainties, and that actual results may differ materially from those possible results discussed in the lawsforward looking statements as a result of Ohio that impose certain license requirements and other regulations relating to the operation of pharmacies.various factors. These laws are administered by the Ohio Board of Pharmacy, which is empowered to impose sanctions, including license suspension or revocation for noncompliance. The lawsfactors include, among other things, provisions requiring pharmaciesrisks associated with risk-based or "capitated" contracts, increased government regulation related to the health care and pharmacists to be licensed, as well as provisions specifying who may writehealth insurance industries in general and dispense prescriptions, how prescriptions must be filled, what records must be maintained and when generic drugs may be substituted. While we believe that we are in substantial compliance with these laws, manymore specifically, pharmacy benefit management organizations, the existence of thecomplex laws and regulations affecting usrelating to our business, increased competition from our competitors, including competitors with greater financial, technical, marketing and other resources. Consequently, you should regard forward-looking statements only as our current plans, estimates and beliefs. We do not promise to notify you if we learn that our assumptions or projections are uncertainwrong for any reason. Before you decide to invest in their application and are subjectshares of common stock you should be aware that the factors we discuss in the "Risk Factors" section in this prospectus could cause our actual results to interpretation and change. Most other states into whichdiffer from what we mail pharmaceuticals also have laws governingstated in any forward-looking statements. 9 USE OF PROCEEDS The selling stockholder will receive all net proceeds from the operation of pharmacies and the dispensing of prescription drugs. In many cases, these laws include provisions which regulate out-of-state mail service pharmacies that mail drugs into the state. The regulations are administered by a state regulatory body (typically, a pharmacy board) which is empowered to impose sanctions, which may include license suspension or revocation for noncompliance. In those states where they exist, state laws regulating out-of-state pharmacies essentially are disclosure laws. Disclosure laws generally require that out-of-state pharmacies register with the local board of pharmacy, follow certain procedures and make certain disclosures, but generally permit the mail order pharmacy to operate in accordance with the lawssale of the state in which the pharmacy operations are located. We believe that we are in material compliance with all of these disclosure laws. To date, there have been no formal administrative or judicial efforts to enforce any such laws against us. In addition to the above-described laws and regulations, there are federal statutes and regulations which establish standards for all pharmacies concerning the labeling, packaging, advertising and adulteration of prescription drugs and the dispensing of "controlled" substances and prescription drugs. Federal Trade Commission and United States Postal Service regulations require mail order sellers to engage in truthful advertising, to stock a reasonable supply of drugs, fill mail orders within thirty (30) days and, if impossible, to inform the consumer of his or her right to a refund. We believe that we are in substantial compliance with all such requirements. Risk-Based ("Capitated") Agreements Approximately 53% of our revenue during 1997 and approximately 37% of our revenue for the first half of 1998 was derived from agreements through which we receive a pre-determined fee each month for each member enrolled in a particular health plan in return for providing certain covered pharmacy services to plan members; these agreements are known as "capitated" agreements. We generally negotiate the capitation fee for a particular plan (or subset of individuals within a plan) based upon a number of factors, including competitive conditions within a particular market and the expected costs of providing the covered pharmacy services. Expected costs are generally based on prior experience with similar groups and demographic data based on the population at large. Data with respect to prior experience may not be available and, if available, may not be a reliable indicator of the actual results for a particular plan. The cost of providing pharmacy services varies among plan participants and groups and is affected by many factors, including formulary design and compliance, generic substitution rate, drug utilization by persons covered under such arrangements, the effect of inflation on drug costs and the co-payment structure. During the early stages of a contract, the cost of providing pharmacy services typically exceeds the capitation fee, primarily due to the lag between the commencement of the contract and the full implementation of the formulary and our other cost and clinical management containment measures. We cannot assure you that the cost of providing pharmacy services will not exceed the capitation fee, either per member or per plan, throughout the entire contract term. 7 Professional Liability Risk The services provided by us may subject us to litigation and liability for damages. We believe that our insurance protection is adequate for our present and contemplated business operations. However, we cannot assure you that we will be able to obtain and maintain insurance coverage in the future or that such insurance coverage will be available on acceptable terms or will be adequate to cover any or all potential professional liability, product liability or other claims. A successful claim in excess of our insurance coverage could have a material adverse effect on our business and results of operations. Dependence on Information Systems We believe that our on-line claims processing (or adjudication) systems are an integral part of our business. We own our claims processing software and have an agreement to acquire all software upgrades to such software to ensure that we maintain a state-of-the-art claims processing system. Any significant interruption in service of our computer or telephone systems could adversely affect our ability to operate our business on a timely basis, and could adversely affect our relations with pharmacies and health plan sponsors. Under a contract with a third party, the third party guarantees that any disruption in our computer or telephone systems will be rectified within 48 hours of us notifying the third party. Although no assurance can be given, we believe that this disaster recovery arrangement is sufficient to prevent any disruption from having a material adverse effect on our business, financial condition or long-term operations. Effect of Certain Legal Proceedings On March 5, 1996, Pro-Mark Holdings, Inc., our wholly-owned subsidiary, was added as a third-party defendant in a proceeding in the Superior Court of the State of Rhode Island, and on September 16, 1996 the third-party complaint was amended to add MIM Corporation as a third-party defendant. The third-party plaintiffs, Medical Marketing Group, Inc. ("MMG"), PPI Holding, Inc. ("PPI Holding") and Payer Prescribing Information, Inc. ("PPI"), allege in the amended third-party complaint: (i) that we employed E. David Corvese (our former Vice Chairman) with knowledge of covenants not to compete in effect between Mr. Corvese and PPI, PPI Holding and MMG that prevented Mr. Corvese from competing in the area of the collection, analysis or marketing of data for the pharmaceutical or health care industries relating to physician practice demographics and the influence of managed care plans; (ii) that Mr. Corvese breached his employment agreement with PPI and his fiduciary duties to PPI by not devoting his full business time and attention to PPI from June 1993 through November 1993 (when his employment was terminated by PPI), and (iii) that we interfered with the contractual relationship between the parties and misappropriated MMG's and PPI's confidential information through our employment of Mr. Corvese. The amended third-party complaint seeks to enjoin us from using confidential information allegedly misappropriated from MMG and PPI and seeks an unspecified amount of compensatory and consequential damages, interest and attorneys' fees. We believe that the third-party plaintiff's allegations are without merit; however, loss of this litigation could have a material adverse effect on our business and results of operations. Possible Negative Effects of Preferred Stock We are authorized to issue 5,000,000 shares of preferredcommon stock. Our Board of Directors may from time to time fix the designation, rights and preferences of preferred stock (including voting, dividend, redemption and liquidation rights) without further stockholder action. Shares of preferred stock could be issued in the future with rights and preferences that could make the possible takeover of us or the removal of our management more difficult or could otherwise adversely impact the rights of holders of our Common Stock. 8 No Intention to Pay Dividends We presently intend to retain all earnings, if any, to support the operation and expansion of our business and do not anticipate paying cash dividends in the foreseeable future. THE COMPANY We are a pharmacy benefit management organization that provides a broad range of services to the pharmaceutical health care industry and employers. We promote the cost-effective delivery of pharmacy benefits to plan members and the public. We target organizations involved in three key industry segments: o sponsors of public and private health plans (such as HMOs and other managed care organizations, long-term care facilities such as nursing homes and assisted living facilities, and employers); o retail pharmacies; and o pharmaceutical manufacturers and distributors. We offer services providing financial benefits to each of them. We specifically target small to medium sized HMOs, self-funded groups and third party administrators (who in turn market to self-funded groups on our behalf). We work with plan sponsors and local health care professionals on both a risk (e.g., fixed cost per plan participant or "capitated") and non-risk (e.g., a price per prescription submitted or "fee-for-service") basis to design, implement and manage innovative pharmacy benefit management programs to control pharmacy costs under the plans. Our programs promote the clinically appropriate substitution of generic drugs and less expensive bio-equivalent brand name drugs for equivalent but more expensive brand name drugs. Our principal executive offices are located at One Blue Hill Plaza, Pearl River, New York 10965 (Telephone Number: (914) 735-3555). Unless the context otherwise requires, all references to "we," "us" or "our company" refers to MIM Corporation and its predecessors and subsidiaries. USE OF PROCEEDS We will not receive any of the proceeds from the sale of salesthe shares of Common Stockcommon stock offered by the Selling Security Holders.selling stockholder under this prospectus. SELLING SECURITY HOLDERS This Prospectus relates to possible sales by theSTOCKHOLDER The following Selling Security Holders: Percentage of Shares Owned Outstanding and Which Shares Owned Before Name May Be Sold Offering(1) ---- ----------- ----------- The Corvese Irrevocable Trust-1992 704,760 5.1% E. David Corvese(2)(3) 672,106(4) 4.9% Nancy P. Corvese(3) 672,106 4.9% The Corvese Family Trust-1994 195,782 1.4% The Peterson Family Trust-1994 78,299 * --------- Total 2,323,053 9 - ---------- * Less than 1%. (1) Represents the percentage of the outstanding shares of our Common Stocktable sets forth, as of July 30, 1998. (2) E. David Corvese served as our Vice Chairman until March 31, 1998. He had been on administrative leave from all of his responsibilities and duties with respect to our company since January 1, 1998. Mr. Corvese is not expected to be nominated or reelected as a director of our company at our 1998 Annual Meeting of Stockholders to be held on August 21, 1998. (3) E. David Corvese and Nancy Corvese are husband and wife. Accordingly, pursuant to11, 2001, the rulesidentity of the Commission, each may be deemed to beneficially ownselling stockholder, the number of shares of the other person. Each such person disclaims beneficial ownership of the sharescommon stock owned by the other person. (4) Asselling stockholder prior to this offering and the number of July 30, 1998, Mr. Corvese beneficially owned an additional 3,090,750 shares which are not covered by this Prospectus. In each instance, the shares which may be sold are the only shares of ourcommon stock whichoffered by the Selling Security Holders own on the date ofselling stockholder under this Prospectus (other than Mr. Corvese, who beneficially owned an additional 3,090,750 shares as of July 30, 1998).prospectus. Because the Selling Security Holdersselling stockholder may sell all, some or none of theirthe common stock offered under this prospectus, no estimate can be given as to the amount of common stock that will be held by the selling stockholder upon termination of the offering. See "Plan of Distribution."
Number of Shares Beneficially Owned Maximum Number of Name of Selling Stockholder Prior to the Offering Shares Being Offered - ----------------------------------- ------------------------------- --------------------------------- Livingston Group LLC*........... 2,697,947 2,697,947
- ------------- *A Schedule 13D filed on June 8, 2001 discloses that John Chay has sole voting and dispositive power over these shares. Three of our employees are members of Livingston Group LLC. In connection with our acquisition of all of the interests of American Disease Management Associates, LLC ("ADIMA"), the selling members of ADIMA formed Livingston Group LLC as a holding company to hold those shares of Common Stock,MIM issued as part of the consideration for the purchase of ADIMA. Under the terms of the purchase agreement, Livingston cannot sell any shares of MIM issued in connection with the purchase of ADIMA, until August 4, 2001, the one year anniversary of the closing date of the acquisition, unless we cannot estimatewaive this provision. At the actual numbertime of sharesthe acquisition, we entered into a registration rights agreement with Livingston Group LLC which will be offered pursuantis incorporated by reference as an exhibit to the registration statement, of which this Prospectus or the number (or percentage of outstanding shares) of shares to be held after the offering. METHODprospectus forms a part. PLAN OF SALEDISTRIBUTION This Prospectusprospectus relates to the possible offer and sale by the selling stockholder of up to 2,697,947 shares of common stock, par value $.0001 per share. The shares covered by this prospectus may be offered and sold from time to time by the Selling Security Holdersselling stockholder. The selling stockholder will act independently of theirus in making decisions with respect to the timing, manner and size of each sale. The selling stockholder may sell the shares being offered hereby on the Nasdaq Stock Market, or otherwise, at prices and under terms then prevailing, at prices related to the then current market price, or at negotiated prices. Registration of Common Stock. We have registered their shares for resale to provide them with freely tradeable securities. However, registration of theirthe shares does not necessarily mean that they will offer or sell any of their shares.the shares will be offered by the selling stockholder. 10 The selling stockholder has advised us that it is not a party to any agreement or other understanding to distribute the securities, directly or indirectly. Shares may be sold at any time and from time to time, when and if so determined by the selling stockholder, by one or more of the following means of distribution: o block trades in which the broker-dealer so engaged will attempt to sell such shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction; o purchases by a broker-dealer as principal and resale by such broker-dealer for its own account pursuant to this prospectus; o over-the-counter distributions in accordance with the rules of the NASD; o ordinary brokerage transactions and transactions in which the broker solicits purchasers; and o privately negotiated transactions. We will not receive any of the proceeds from the offering or sale of their shares.shares by the selling stockholder. We will bear all expenses in connection with the registration of the common stock except that the selling stockholder will pay all underwriting commissions and similar selling expenses, brokerage fees and transfer taxes as well as fees of its counsel. In connection with any distributions of the shares, the selling stockholder may enter into hedging transactions with broker-dealers or other financial institutions who may engage in short sales of our common stock in the course of hedging the positions they assume with the selling stockholder. The Selling Security Holders have informed us that theyselling stockholder also may (i) sell the common stock short and redeliver the shares to close out such short positions; (ii) enter into option or other transactions with broker-dealers or other financial institutions which require the delivery thereto of Common Stockthe shares offered hereby, which shares such broker-dealer or other financial institutions may resell pursuant to which this Prospectus relates from timeprospectus (as supplemented or amended to time on Nasdaq, where our Common Stock is listed for trading, inreflect such transaction); or (iii) pledge such shares to a broker-dealer or other markets where our Common Stock is traded, in negotiated transactionsfinancial institution, and, upon a default, such broker-dealer or in a combinationother financial institution, may effect sales of such methods of sale. They will sellpledged shares pursuant to this prospectus (as supplemented or amended to reflect such transaction). In addition, any such shares that qualify for sale pursuant to Rule 144 under the Common Stock at prices which are current whenSecurities Act may be sold under that Rule rather than pursuant to this prospectus. In effecting sales, brokers, dealers or agents engaged by the sales take place or atselling stockholder may arrange for other prices to which the parties agree. The respective Selling Security Holders may use underwriters, brokers or dealers to sellparticipate. Brokers, dealers or agents may receive commissions, discounts or concessions from the selling stockholder in amounts to be negotiated prior to the sale. Such brokers or dealers may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales, and any such commissions, discounts or concessions may be deemed to be underwriting discounts or commissions under the Securities Act. 11 In order to comply with the securities laws of certain states, the shares and will pay any brokerage feesmust be sold in such states only through registered or commissions relating to sales by them. Some sales may involve shareslicensed brokers or dealers. In addition, in which the Selling Security Holders have granted security interests and which are being sold as a result of foreclosure of those security interests. Somecertain states shares may alsonot be sold by other people or entities which receive the shares from one or more of the Selling Security Holders by gift, by operation of law (including the laws of descent and distribution) or by other transfers or assignments (including trust distributions). The Selling Security Holders have informed us thatunless they have not yet selected a specific planbeen registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirements is available and has been complied with. The rules and regulations in Regulation M under the Exchange Act provide that during the period that any person is engaged in the distribution (as defined therein) of distribution. Pursuant to the Separation Agreement dated as of March 31, 1998 among the company, E. David Corvese and each of the affiliates listed on the signature page thereto (together with E. David Corvese, the "Corvese Entities"), the Corvese Entitiescommon stock, such person generally may not without our prior consent, sell in the public market pursuant to this Prospectus in excess of 400,000purchase shares of our Common Stock during any month, or 150,000common stock. The selling stockholder may be subject to such regulation which may limit the timing of its purchases and sales of shares of our Common Stock during any week until suchthe common stock. At the time as E. David Corvese, together with any affiliates,a particular offer of shares is made, if required, a prospectus supplement will be distributed that will set forth the beneficial ownernumber of 10% or less of our outstanding shares of Common Stock (by sale or dilution). Webeing offered and the Selling Security Holdersterms of the offering, including the name of any underwriter, dealer or agent, the purchase price paid by any underwriter, any discount, commission and other item constituting compensation, any discount, commission or concession allowed or reallowed or paid to any dealer, and the proposed selling price to the public. We have agreed to indemnify each otherthe selling stockholder, and certain other people or entitiesany person controlling it, against certain liabilities, in connectionincluding liabilities under the Securities Act. The selling stockholder has agreed to indemnify us and certain related persons against certain liabilities, including liabilities under the Securities Act. We have agreed with the selling stockholder to keep the registration statement, of which this prospectus constitutes a part, effective until the earlier of the sale of all the shares of Common Stock. 10 DESCRIPTION OF CAPITAL STOCK Authorized Capital Stock Our authorized capital stock consists of 40,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. As of July 30, 1998, we had 13,822,000 shares of Common Stock issued and outstanding and no shares of Preferred Stock issued and outstanding. Our Common Stock is listed for trading on Nasdaq underor 90 days following the symbol "MIMS." The transfer agent and registrar for our Common Stock is American Stock Transfer and Trust Company. Common Stock The holders of our Common Stock are entitled to one vote for each share held of record on all matters submitted to the vote of stockholders, including the election of directors. The holders of our Common Stock do not have cumulative voting rights. Subject to any preferential rights held by holderseffective date of the Preferred Stock, the holders of our Common Stock are entitled to receive ratably such dividends asregistration statement. Agents, underwriters or dealers may be declared from time to time by our Board of Directors out of funds legally available therefor. In the event of our liquidation, dissolutionengage in transactions with or winding up, holders of our Common Stock will be entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preference of outstanding Preferred Stock, if any. Holders of our Common Stock do not have preemptive, conversion or redemption rights. All the issued and outstanding shares of our Common Stock are duly authorized, validly issued, fully paid and nonassessable. We have not declared or paid any dividends on our Common Stock since our inception and we have no present intention to do soperform services for us in the near future. Preferred Stock Our Boardordinary course of Directors, without further approval or action by the stockholders, is authorized to issue shares of Preferred Stock in one or more series and to fix as to any such series the dividend rate, redemption prices, preferences on liquidation or dissolution, sinking fund terms, if any, conversion rights, voting rights and any other preference or special rights and qualifications. Issuances of Preferred Stock may adversely affect the rights of holders of our Common Stock. Holders of Preferred Stock might, for example, be entitled to preference in distributions to be made to stockholders upon our liquidation, dissolution or winding up. In addition, holders of Preferred Stock might enjoy voting rights that limit, qualify or adversely affect the voting rights of holders of our Common Stock. Such rights of the holders of one or more series of Preferred Stock might include the right to vote as a class with respect to the election of directors, major corporate transactions or otherwise, or the right to vote together with the holders of our Common Stock with respect to any such matter. The holders of Preferred Stock might be entitled to cast multiple votes per share. The issuance of Preferred Stock could have the effect of delaying, deferring, or preventing a change in control of our company without further action by the stockholders. We have no present plans to issue any shares of Preferred Stock. Anti-Takeover Provisions Our Certificate of Incorporation and by-laws: (i) generally provide that only a majority of our Board of Directors shall have the authority to fill vacancies on the Board of Directors; (ii) provide that only directors, and not stockholders, may call a special meeting of stockholders; (iii) establish an advance notice procedure regarding stockholder proposals to be brought before an annual or special meeting; and (iv) authorize our Board of Directors to issue preferred stock without further stockholder approval. These provisions are designed to encourage any person who desires to take control of and/or acquire our company to enter into negotiations with our Board of Directors, thereby making more difficult a change in control of our company by means of a tender offer, a proxy contest or other non-negotiated means. In addition to encouraging any person intending to attempt a takeover of our company to negotiate with our Board of Directors, these provisions also curtail such person's 11 use of a dominant equity interest to control any negotiations with our Board of Directors. Under such circumstances, our Board of Directors may be better able to make and implement reasoned business decisions and protect the interest of all of our stockholders. LEGAL MATTERSbusiness. VALIDITY OF COMMON STOCK The validity of the securitiescommon stock offered by this Prospectushereby will be passed upon for us by Barry A. Posner, Esq., our Vice President, Secretary and General Counsel. Mr. Posner beneficially owns an aggregateCounsel of less than one percent of our Common Stock.the Company. EXPERTS TheOur consolidated financial statements and the related financial statement schedule of MIM Corporation and subsidiaries incorporated in this prospectus by reference in this Registration Statement from theto our Annual Report on Form 10-K for the fiscal year ended December 31, 19972000, have been audited by Arthur Andersen LLP, independent certified public accountants, as indicated in their report with respect thereto 12 and are included hereinin this document in reliance upon the authority of said firm as experts in giving said report.accounting and auditing. 13 ================================================================================ 2,697,947 Shares MIM CORPORATION Common Stock -------------------------- PROSPECTUS -------------------------- July 12, 2001 ================================================================================ PART II.II INFORMATION NOT REQUIRED IN THE PROSPECTUS Item 14. Other Expenses ofOf Issuance And Distribution SEC registration fee...................................... $ 4,121 Legal fees and Distribution The following table sets forth the estimated expenses in connection with the issuance and distribution of the securities being registered, other than underwriting discounts and commissions: Registration fee-- Securities and Exchange Commission ..... $ 2,805.48expenses................................... $20,000 Accounting fees and expenses ..............................expenses.............................. $20,000 Printing expenses......................................... $ 10,000.00(a) Legal fees and expenses ...................................5,000 Miscellaneous............................................. $ 30,000.00(a) Printing and engraving expenses ........................... $ 1,000.00(a) Miscellaneous ............................................. $ 15,000.00(a) Total ..................................................... ------------- $ 58,805.48 ============= - ---------- (a) Does not include expenses of preparing prospectus supplements and other expenses relating to offerings of particular securities.879 ------- Total........................................... $50,000 ======= Item 15. Indemnification ofOf Directors andAnd Officers Subsection (a) of Section 145 of the Delaware General Corporation Law (the "DGCL"law ("DGCL") empowersprovides that a company tocorporation may indemnify any director or officer, or former director or officer,person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding whether civil, criminal administrative or investigative (other than an action by or in the right of the company),corporation) by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding provided that such director or officerif he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the company,corporation, and, with respect to any criminal action or proceeding, provided that such director or officer had no reasonable cause to believe his or her conduct was unlawful. Subsection (b) of Section 145 of the DGCL empowersfurther provides that a company tocorporation similarly may indemnify any director or officer, or former director or officer,such person serving in any such capacity who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the companycorporation to procure a judgment in its favor, by reason of the fact that such person acted in any of the capacities set forth above, against expenses (including attorneys' fees) actually and reasonably incurred in connection with the defense or settlement of such action or suit provided that such director or officerif he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the company,corporation and except that no indemnification mayshall be made in respect of any claim, issue or matter as to which such director or officerperson shall have been adjudged to be liable to the companycorporation unless and only to the extent that the Delaware Court of Chancery or thesuch other court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such director or officerperson is fairly and reasonably entitled to indemnityindemnify for such expenses aswhich the Court of Chancery or such other court shall deem proper. Section 145102(b)(7) of the DGCL further provides thatpermits a corporation, in its certificate of incorporation, to limit or eliminate, subject to some statutory limitations, the liability of directors to the extentcorporation or its stockholders for monetary damages for breaches of fiduciary duty, except for liability (a) for any breach of the director's duty of loyalty to the corporation or its stockholders, (b) for acts or omissions not in good faith or which involve intentional misconduct or a directorknowing violation of law, (c) under Section 174 of the DGCL (relating to unlawful payment of dividends and unlawful stock purchase and redemption), or officer of a company has been successful in the defense of(d) for any action, suit or proceeding referred to in subsections (a) and (b) or in the defense of any claim, issue or matter therein, he or she shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by him or her in connection therewith; that indemnification provided for in Section 145 shall not be deemed exclusive of any other rights totransaction from which the indemnified party may be entitled; and that the company shall have power to purchase and maintain insurance on behalf of a director or officer of the company against any liability asserted against him or her or incurred by him or her in any such capacity or arising out of his or her status as such whether or not the company would have the power to indemnify him or her against such liabilities under Section 145. II-1derived an The eighth paragraph of the Registrant'simproper personal benefit. MIM's restated Certificate of Incorporation provides that no directorMIM's directors shall not be personally liable to the Registrantcompany or to its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability arising out of clauses (a) through (d) in the preceding paragraph. The Certificate of Incorporation and MIM's by-laws further provide that MIM shall indemnify its directors and officers to the fullest extent that Section 102(b)(7) ofpermitted by the DGCL, as amended from time to time (or any successor or additional provision), expressly provides that the liability of a director may not be eliminated or limited.DGCL. In addition, the RegistrantMIM maintains director and officer liability insurance policies. Item 16. Exhibits 5. Opinion of Counsel* 23. Consents (i) Barry A. Posner, Esq. (counsel)--included in Exhibit 5 (ii) Arthur Andersen LLP (accountants)* 24. Power of Attorney (included on the signature page hereto) - ---------- * Filed herewith.
3.1 -- Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Registration Statement on Form S-1, File No. 333-05327). 3.2 -- Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3(ii) to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 1998). 4.1 -- Amended and Restated Rights Agreement dated as of May 20, 1999, between the Registrant and American Stock Transfer and Trust Company (incorporated by reference to Exhibit 4.1 to Post-Effective Amendment No. 2 to the Registrant's Form 8-A/A dated May 20, 1999). 4.2 -- Purchase Agreement among American Disease Management Associates, L.L.C., its Members and Certain Related Partners, MIM Health Plans, Inc. and the Registrant, dated as of August 3, 2000 (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed August 10, 2000). 4.3 -- Registration Rights Agreement between the Registrant and Livingston Group LLC dated as of August 3, 2000 (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed August 10, 2000). 5.1 -- Opinion of Barry A. Posner. 23.1 -- Consent of Barry A. Posner (included as part of opinion filed as Exhibit 5.1). 23.2 -- Consent of Arthur Andersen LLP.
Item 17. Undertakings The undersigned Registrantregistrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:registration statement: (i) To include any prospectus required by Section 10(a)(3) of the Securities Act;Act of 1933; (ii) To reflect in the prospectus any facts or events arising after the effective date of this Registration Statementthe registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement.the registration statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20%20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective Registration Statement; andregistration statement; (iii) To include any material information with respect to the plan of distribution not previously disclosed in this Registration Statementthe registration statement or any material change to such information in the Registration Statement;registration statement; provided, however, that the undertakings set forth in paragraphs (a)(1)(i) and (a)(l)(ii) above shalldo not apply if the registration statement is on Form S-3, Form S-8 or Form F-3, and the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the Registrantregistrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this Registration Statement.the registration statement. (2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment willshall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time willshall be deemed to be the initial bona fide offering thereof. (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. II-2 (4) That,The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant'sregistrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in this Registration Statement will be deemed to be a new Registration Statement relating to the securities offered herein, and the offering of such securities at that time will be deemed to be the initial bona fide offering thereof. (5) That, (i) for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this Registration Statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this Registration Statement as of the time it was declared effective and (ii) for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectusregistration statement shall be deemed to be a new Registration Statementregistration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrantregistrant pursuant to the foregoing provisions described under Item 15 above, or otherwise, the Registrantregistrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrantregistrant of expenses incurred or paid by a director, officer or controlling person of the Registrantregistrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrantregistrant will, unless in the opinion of its counsel for the Registrant the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. II-3 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrantregistrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statementregistration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the Citycity of New York andElmsford, State of New York, on August 12, 1998.July 11, 2001. MIM CORPORATION By: /s/ Richard H. Friedman --------------------------------- Richard H. Friedman Chairman of the BoardBarry A. Posner --------------------------------------------- Barry A. Posner Vice President, Secretary and Chief Executive Officer POWER OF ATTORNEYGeneral Counsel Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities andindicated on the dates indicated. Each person whose signature appears below hereby constitutes and appoints11th day of July, 2001. SIGNATURE TITLE /s/ Richard H. Friedman as such person's trueChairman of the Board, Chief - --------------------------------------- Executive Officer and lawful attorney-in-factDirector Richard H. Friedman (Principal Executive Officer) /s/ Juliet A. Palmer (Principal Financial Officer and agent, with full power of substitution to sign for such person and in such person's name and capacity indicated below, any and all amendments to this Registration Statement, including post-effective amendments thereto, and to file the same with the Securities and Exchange Commission, hereby ratifying and confirming such person's signature as it may be signed by said attorney to any and all amendments. -----------------
Name Title Date ---- ----- ---- Chairman, Chief Executive August 12, 1998 /s/ Richard H. Friedman Officer and Director - -------------------------- (Principal Executive Officer) Richard H. Friedman Chief Financial Officer, August 12, 1998 Chief Operating Officer and /s/ Scott R. Yablon Director - -------------------------- (Principal Financial Officer) Scott R. Yablon /s/ Richard A. Cirillo - -------------------------- Richard A. Cirillo Director August 12, 1998 /s/ Martin Michael Kooper - -------------------------- Martin Michael Kooper Director August 12, 1998
S-1- --------------------------------------- Principal Accounting Officer) Juliet A. Palmer /s/ Richard A. Cirillo Director - --------------------------------------- Richard A. Cirillo /s/ Louis DiFazio Director - --------------------------------------- Louis DiFazio /s/ Harold J. Ford, Sr. Director - --------------------------------------- Harold J. Ford, Sr. /s/ Michael Kooper Director - --------------------------------------- Michael Kooper /s/ Louis A. Luzzi Director - --------------------------------------- Louis A. Luzzi /s/ Ronald K. Shelp Director - --------------------------------------- Ronald K. Shelp
Name Title Date ---- ----- ----EXHIBIT INDEX Exhibit Sequential No. Description Of Exhibits Page No. - ------------- ------------------------------------------------------------------------- -------- /s/ Louis DiFazio - -------------------------- Louis DiFazio Director3.1 -- Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Registration Statement on Form S-1, File No. 333-05327). 3.2 -- Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3(ii) to the Registrant's Quarterly Report on Form 10-Q for the period ended March 31, 1998). 4.1 -- Amended and Restated Rights Agreement dated as of May 20, 1999, between the Registrant and American Stock Transfer and Trust Company (incorporated by reference to Exhibit 4.1 to Post-Effective Amendment No. 2 to the Registrant's Form 8-A/A dated May 20, 1999). 4.2 -- Purchase Agreement among American Disease Management Associates, L.L.C., its Members and Certain Related Partners, MIM Health Plans, Inc. and the Registrant, dated as of August 12, 1998 /s/ Louis3, 2000 (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed August 10, 2000) 4.3 -- Registration Rights Agreement between the Registrant and Livingston Group LLC dated as of August 3, 2000 (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed August 10, 2000). 5.1 -- Opinion of Barry A. Luzzi - -------------------------- LouisPosner. 23.1 -- Consent of Barry A. Luzzi, Ph.D Director August 12, 1998Posner (included as part of opinion filed as Exhibit 5.1). 23.2 -- Consent of Arthur Andersen LLP.
S-2 INDEX TO EXHIBITS Exhibit No. Description --- ----------- 5. Opinion of Counsel* 23. Consents (i) Barry A. Posner, Esq. (counsel)--included in Exhibit 5 (ii) Arthur Andersen LLP (accountants)* 24. Power of Attorney (included on the signature page hereto) - ---------- * Filed herewith.