Document:

Exhibit
10.2

 

 

 

SECURITIES
PURCHASE AGREEMENT

 

DATED AS
OF SEPTEMBER 7, 2005

 

BETWEEN

 

MQ
ASSOCIATES, INC.

 

AND

 

MQ
INVESTMENT HOLDINGS II, LLC

 

 

 

 

	
  ARTICLE I

  	
  DEFINED TERMS; RULES OF
  CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Rules of Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  PURCHASE AND SALE OF
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Authorization of Issuance of
  Purchased Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Sale of Purchased Securities
  at the Closing

  	
   

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Issuance of Purchased
  Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Purchase Price

  	
   

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Use of Proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  CLOSING

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Closing

  	
   

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Closing Deliverables

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  REPRESENTATIONS AND
  WARRANTIES ABOUT THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Organization, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Capitalization

  	
   

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Authorization, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Execution; Enforceability

  	
   

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  No Conflict; Consents

  	
   

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  No Additional Representations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REPRESENTATIONS AND
  WARRANTIES OF THE PURCHASER

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Organization, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Authorization of the
  Documents

  	
   

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  No Conflict; Consents

  	
   

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  Litigation

  	
   

  
	
   

  	
   

  	
   

  
	
  5.5

  	
  Investment Representations

  	
   

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  AWARENESS OF PUBLIC FILINGS;
  NON-RELIANCE ON FINANCIAL STATEMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONDITIONS TO CLOSING

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Conditions to Purchaser’s
  Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Conditions to the Company’s
  Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  COVENANTS OF THE COMPANY AND
  THE PURCHASER

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Repurchase of Purchased
  Securities

  	
   

  

 

i

 

	
  7.2

  	
  Purchase Price; Dispute
  Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Specific Performance;
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Successors and Assigns

  	
   

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Entire Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  8.6

  	
  Amendments, Modifications
  and Waivers

  	
   

  
	
   

  	
   

  	
   

  
	
  8.7

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  8.8

  	
  Third Party Reliance

  	
   

  
	
   

  	
   

  	
   

  
	
  8.9

  	
  Submission to Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  
	
  8.10

  	
  Information

  	
   

  
	
   

  	
   

  	
   

  
	
  8.11

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  8.12

  	
  Counterparts; Facsimile
  Signatures

  	
   

  

 

ii

 

EXECUTION
VERSION

 

SECURITIES PURCHASE AGREEMENT
dated as of September 7, 2005, between MQ
ASSOCIATES, INC., a Delaware corporation (the “Company”) and MQ INVESTMENT HOLDINGS II, LLC, a Delaware
limited liability company (the “Purchaser”).

 

WHEREAS, the
Company, indirectly through its wholly-owned subsidiary MedQuest, Inc., a
Delaware corporation (“MedQuest”), is in the business of providing
fixed-site outpatient single and multi-modality diagnostic imaging services
(the “Business”).

 

WHEREAS, the
Company desires to issue and sell to the Purchaser, and the Purchaser desires
to purchase from the Company, (a) 20,000,000 shares of Series A
Preferred Stock (as defined herein) and (b) a warrant to purchase an
aggregate amount of 3,000,000 shares of Common Stock (as defined herein), in
each case, on the terms and subject to the conditions provided herein.

 

NOW THEREFORE,
in consideration of the foregoing and the covenants, agreements,
representations and warranties contained in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

ARTICLE I

DEFINED TERMS; RULES OF CONSTRUCTION

 

1.1                               Defined
Terms.

 

As used in this
Agreement, the following definitions apply:

 

“2002 Notes” means
MedQuest’s 117/8% Senior Subordinated Notes due 2012 under
the 2002 Notes Indenture.

 

“2002 Notes Indenture”
means the Indenture for the 117/8% Senior Subordinated
Notes due 2012 dated as of August 15, 2002, among MedQuest, the Company,
the Subsidiary Guarantors party thereto and Wachovia Bank, National
Association, as trustee, as amended, supplemented or modified from time to
time.

 

“2004 Notes” means
the Company’s 121/4% Senior Discount Notes due 2012 issued under the 2004 Notes Indenture.

 

“2004
Notes Indenture” means the Indenture for the 121/4% Senior Discount Notes due 2012 dated as of August 24,
2004, between the Company and Wachovia Bank, National Association, as trustee,
as amended, supplemented or modified from time to time.

 

“Affiliate” of any
specified Person means any other Person, directly or indirectly, controlling or
controlled by or under direct or indirect common control with such specified

 

 

Person. For the purposes of this definition, “control”
when used with respect to any Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Agreement” has
the meaning given to such term in Section 1.2.

 

“Alternate FMV”
means the fair market value per Warrant or share of Common Stock issuable upon
the exercise thereof, as determined in good faith by a qualified appraiser of
national stature selected by the Purchaser (the “Purchaser Appraiser”).

 

“Bank Consent”
means the Fourth Waiver and Third Amendment to Credit Agreement, to be entered
into among the Company, MedQuest, the lenders party
thereto and Wachovia Bank, National Association, as administrative agent.

 

“Board” means the
Board of Directors of the Company or any committee thereof duly authorized to
act on behalf of the Board of Directors.

 

“Board FMV” has
the meaning given to such term in Section 7.2(b).

 

“Business” has the
meaning given to such term in the recitals to this Agreement.

 

“Business Day”
means any day that is not (a) a Saturday, Sunday, or legal holiday or (b) a
day on which banks are not required to be open in New York, New York.

 

“Certificate of Increase”
means the Certificate of Increase with respect to 20,000,000 additional shares
of Series A Redeemable Preferred Stock of the
Company, to be newly filed with the Secretary of State of the State of Delaware.

 

“Charter” means
the Fourth Amended and Restated Certificate of Incorporation of the Company, as
amended, modified, supplemented or restated from time to time.

 

“Closing” has the
meaning set forth in Section 3.1.

 

“Closing Date”
means the date on which the Closing occurs.

 

“Commission” means
the Securities and Exchange Commission or any other Federal agency at the time
administering the Securities Act.

 

“Common Stock”
means the Company’s common stock, par value $0.001 per share.

 

“Company” has the
meaning given to such term in the caption to this Agreement.

 

“Consent Solicitation”
means the Consent Solicitation Statement dated July 29, 2005 in respect of
the 2002 Notes and the 2004 Notes.

 

“Credit Agreement”
means the Amended and
Restated Credit Agreement dated as of September 3, 2003, among the Company,
MedQuest, the lenders party thereto, Chase Lincoln
First Commercial Corporation, as Syndication Agent, Wachovia Bank, National
Association

 

2

 

(“Wachovia”) and
General Electric Capital Corporation, as Co-Documentation Agents, and Wachovia,
as Administrative Agent, as may be amended, modified, supplemented, renewed,
refunded, replaced, restated or refinanced (in whole or in part) from time to
time.

 

“Dispute Notice” has
the meaning given to such term in Section 7.2(b).

 

“Documents” means
this Agreement and any and all agreements and documents executed and delivered
in connection therewith.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder, all as the same shall be
in effect from time to time.

 

“Fair Market Value”
means the fair market value of the Warrants or the Common Stock issuable upon
the exercise thereof, as finally determined pursuant to Section 7.2.

 

“Fundamental Documents”
means the documents by which any Person (other than an individual) establishes
its legal existence or which govern its internal affairs. The Fundamental
Documents of the Company as of the date hereof are the Charter and the by-laws
of the Company.

 

“Lien” means any
mortgage, pledge, security interest, encumbrance, restriction, lien or charge
of any kind (including any conditional sale or other title retention agreement
or lease in the nature thereof).

 

“Material Adverse
Effect” has the meaning given to such term in Section 4.1.

 

“MedQuest” has the
meaning given to such term in the caption.

 

“Neutral Appraiser”
has the meaning given to such term in Section 7.2(b).

 

“Person” shall be
construed as broadly as possible and shall include an individual or natural
person, a partnership (including a limited liability partnership), a
corporation, an association, a joint stock company, a limited liability
company, a trust, a joint venture, an unincorporated organization and a
governmental authority.

 

“Preferred Shares”
means the shares of Series A Preferred Stock to
be purchased pursuant to this Agreement.

 

“Premium” has the
meaning given to such term in Section 7.2(a).

 

“Purchased Securities”
has the meaning given to such term in Section 2.1.

 

“Purchaser Appraiser”
has the meaning given to such term in the definition of “Alternate FMV”.

 

“Purchaser” has
the meaning given to such term in the caption.

 

3

 

“Registration Rights
Agreement” means the Registration Rights Agreement dated as of August 15,
2002 among the Company, the stockholders and other securityholders of the
Company party thereto, as amended, modified, supplemented or restated from time
to time.

 

“Repurchase Notice”
has the meaning given to such term in Section 7.1.

 

“Securities Act”
means the Securities Act of 1933, as amended, or any successor Federal statute,
and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect from time to time.

 

“Series A
Preferred Stock” means the Company’s Series A
Redeemable Preferred Stock, par value $0.001 per share.

 

“Series B
Preferred Stock” means the Company’s Series B Redeemable Preferred
Stock, par value $0.001 per share.

 

“Stockholders’
Agreement” means the Stockholders’ Agreement dated as of August 15,
2002, among the Company and the stockholders of the Company party thereto, as
amended, modified, supplemented or restated from time to time.

 

“Subsidiary” or “subsidiary”
means, with respect to any Person, any other Person of which more than fifty
percent (50%) of the shares of stock or other interests entitled to vote in the
election of directors or comparable Persons performing similar functions
(excluding shares or other interests entitled to vote only upon the failure to
pay dividends thereon or other contingencies) are at the time owned or
controlled, directly or indirectly through one or more Subsidiaries, by such
Person.  Unless the context otherwise
requires, the term “Subsidiary” means a Subsidiary of the Company.

 

“Warrant” means
the warrant to purchase Common Stock issued pursuant to this Agreement.

 

1.2                               Rules of
Construction.

 

The term this “Agreement”
means this agreement together with all schedules and exhibits hereto, as the
same may from time to time be amended, modified, supplemented or restated in
accordance with the terms hereof.  The use in this Agreement of the term “including” means “including,
without limitation.”  The words “herein,”
“hereof,” “hereunder” and other words of similar import refer to this Agreement
as a whole, including the schedules and exhibits, as the same may from time to
time be amended, modified, supplemented, or restated, and not to any particular
section, subsection, paragraph, subparagraph or clause contained in this
Agreement. All references to sections, schedules, exhibits and annexes mean the
sections of this Agreement and the schedules, exhibits and annexes attached to
this Agreement, except where otherwise stated.  The title of and the section and
paragraph headings in this Agreement are for convenience of reference only and
shall not govern or affect the interpretation of any of the terms or provisions
of this Agreement.  The use herein of the
masculine, feminine or neuter forms shall also denote the other forms, as in
each case the context may require or permit.  Where specific language is used to clarify by
example a general statement contained herein, such specific language shall not
be deemed to modify, limit or restrict in any manner the construction of the

 

4

 

general
statement to which it relates.  The
language used in this Agreement has been chosen by the parties to express their
mutual intent, and no rule of strict construction shall be applied against
any party.  Unless expressly provided
otherwise, the measure of a period of one month or year for purposes of this
Agreement shall be that date of the following month or year corresponding to
the starting date, provided that if no corresponding date exists, the measure
shall be that date of the following month or year corresponding to the next day
following the starting date.  For
example, one month following February 18 is March 18, and one month
following March 31 is May 1.

 

ARTICLE II

PURCHASE AND SALE OF SECURITIES

 

2.1                               Authorization
of Issuance of Purchased Securities.

 

Subject to the terms and
conditions hereof, the Company has authorized the issuance and sale to the
Purchaser of (a) 20,000,000 shares of Series A Preferred Stock and (b) a
Warrant to purchase 3,000,000 shares of Common Stock ((a) and (b) collectively,
the “Purchased Securities”).  Each
Purchased Security shall be comprised of an investment unit of one share of Series A Preferred Stock and a Warrant for the purchase of 0.15
shares of Common Stock.

 

2.2                               Sale
of Purchased Securities at the Closing.

 

At the Closing,
subject to the satisfaction or waiver of the conditions set
forth in Article VI, the Company shall issue and sell to the
Purchaser, and the Purchaser shall purchase from the Company, the Purchased
Securities.

 

2.3                               Issuance
of Purchased Securities.

 

All Purchased Securities
issued at the Closing shall be (i) validly issued, fully paid and
non-assessable and shall be issued free and clear of any Liens whatsoever and
with no restrictions (in each case other than pursuant to the Documents) on the
voting rights thereof (other than as set forth in the Stockholders’ Agreement
or the Registration Rights Agreement) or any other incidents of record and
beneficial ownership pertaining thereto and (ii) entitled to the rights
and subject to the obligations of each of the Stockholders’ Agreement and the
Registration Rights Agreement.

 

2.4                               Purchase
Price.

 

(a)                                  As
payment for the Purchased Securities, the Purchaser shall pay to the Company a
price per Purchased Security equal to $1.00, for an aggregate amount equal to $20,000,000.

 

(b)                                 All
consideration payable pursuant to Section 2.4(a) shall be paid
in cash by wire transfer of immediately available funds to an account
designated by the Company from time to time.

 

5

 

2.5                               Use
of Proceeds.

 

All of the proceeds from
the sale of the Purchased Securities shall be used for the general corporate
purposes of the Company and its subsidiaries; provided, that,
notwithstanding the foregoing, the Company covenants and agrees to contribute
not less than eighteen million dollars ($18,000,000) of such proceeds to
MedQuest.

 

ARTICLE III

CLOSING

 

3.1                               Closing.

 

The closing (the “Closing”)
of the sale and issuance of the Purchased Securities pursuant to Section 2.2
shall, subject to the satisfaction or waiver of the applicable conditions set
forth in Article VI, take place on the date hereof at the offices
of O’Melveny & Myers LLP at 7 Times Square, New York, New York 10036,
or such other place agreed to by the Company and the Purchaser.

 

3.2                               Closing
Deliverables.

 

On the date of the Closing, (i) the Company shall deliver to the Purchaser
one or more stock certificates and warrant certificates, in each case registered
in the name of the Purchaser, representing the number of Purchased Securities purchased
by the Purchaser and (ii) the Purchaser shall deliver to the Company the
Purchase Price for the Purchased Securities.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES ABOUT THE COMPANY

 

The Company represents
and warrants to the Purchaser as follows:

 

4.1                               Organization,
Etc.

 

The Company has been duly
incorporated and is validly existing under the laws of its jurisdiction of
incorporation, is duly qualified to do business and is in good standing as a
foreign corporation in each jurisdiction in which the ownership or lease of
property or the conduct of its business requires such qualification, and has
all power and authority necessary to own or hold its properties and to conduct
the business in which it is engaged, except where the failure to so qualify or
have such power or authority would not, singularly or in the aggregate, have a
material adverse effect on the condition (financial or otherwise), results of
operations, business or prospects of the Company and its subsidiaries taken as
a whole (a “Material Adverse Effect”).

 

4.2                               Capitalization.

 

The authorized capital
stock of the Company immediately prior to the Closing is 385,000,000 shares,
consisting of:

 

6

 

(i)                                     195,000,000
duly authorized shares of Common Stock, par value $0.001 per share, of which 28,605,000
shares are duly and validly issued and outstanding;

 

(ii)                                  115,000,000
duly authorized shares of Class A Common Stock, par value $0.001 per
share, of which 72,100,000 shares are duly and validly issued and outstanding;
and

 

(iii)                               75,000,000
duly authorized shares of preferred stock, par value $0.001 per share, (A) 55,000,000
of which are designated Series A Redeemable Preferred Stock (including
such as were designated pursuant to the Certificate of Increase) and (B) 15,000,000
of which are designated Series B Preferred Stock, and 35,000,000 Series A
Redeemable Preferred Stock and 15,000,000 Series B Preferred Stock of
which are issued and outstanding.

 

In connection with this
Agreement, the Company will issue 20,000,000 additional shares of Series A Preferred Stock.

 

4.3                               Authorization,
Etc.

 

The Company has full
corporate right, power and authority to execute and deliver this Agreement and
the other Documents to which it is a party and to perform its obligations
hereunder and thereunder; and all requisite action required to be taken for the
due and proper authorization, execution and delivery of each of the Documents
to which the Company is a party and the consummation of the transactions
contemplated thereby have been duly and validly taken.

 

4.4                               Execution;
Enforceability.

 

This Agreement and each
of the other Documents have been duly executed and delivered by the Company and
constitute a valid and legally binding agreement of the Company, enforceable against
the Company in accordance with its terms, except to the extent that such
enforceability may be subject to (a) bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws affecting
creditors’ rights generally and (b) general equitable principles (whether
considered in a proceeding in equity or at law).

 

4.5                               No
Conflict; Consents.

 

Except as would not have
a Material Adverse Effect, the execution, delivery and performance by the
Company of each of the Documents to which it is a party and the consummation of
the transactions contemplated by the Documents do not (a) conflict with or
result in a breach or violation of any of the terms or provisions of, or
constitute a default under, or result in the creation or imposition of any Lien
upon any property or assets of the Company pursuant to, any material indenture,
mortgage, deed of trust, loan agreement or other material agreement or
instrument to which the Company is a party or by which the Company is bound or
to which any of the property or assets of the Company is subject, (b) result
in any violation of the provisions of the Fundamental Documents of the Company
or (c) result in any violation of any statute or any judgment, order,
decree, rule or regulation of any court or arbitrator or

 

7

 

governmental agency or body having jurisdiction over
the Company or any of its properties or assets (assuming compliance by the
Purchaser with its representations, warranties and agreements set forth in Section 5.5
hereof), and (d) (assuming compliance by the Purchaser with its
representations, warranties and agreements set forth in Section 5.5
hereof), no consent, approval, authorization or order of, or filing or
registration with, any such court or arbitrator or governmental agency or body
under any such statute, judgment, order, decree, rule or regulation is
required for the execution, delivery and performance by the Company of each of
the Documents to which it is a party and the consummation of the transactions
contemplated by the Documents, except for such consents, approvals,
authorizations, filings, registrations or qualifications (i) that shall
have been obtained or made on or prior to the date of the Closing or (ii) as
may be required under state or foreign securities and blue sky laws and the rules and
regulations of the National Association of Securities Dealers, Inc.

 

4.6                               No Additional Representations.

 

NEITHER THE
COMPANY NOR ANY OF ITS AFFILIATES IS MAKING ANY REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER WITH RESPECT TO THE COMPANY AND
ITS SUBSIDIARIES, INCLUDING ANY OF THE ASSETS, RIGHTS OR PROPERTIES OF THE
COMPANY OR ANY SUBSIDIARY, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
EXPRESSLY SET FORTH IN THIS ARTICLE IV, AND EXCEPT AS SET FORTH
EXPRESSLY IN THIS ARTICLE IV, THE CONDITION OF THE ASSETS,
PROPERTIES AND RIGHTS OF THE COMPANY AND EACH OF ITS SUBSIDIARIES SHALL BE “AS
IS” AND “WHERE IS.”

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The Purchaser represents
and warrants as follows:

 

5.1                               Organization,
Etc.

 

The Purchaser has been
duly formed and is validly existing and is in good standing under the laws of
its jurisdiction of formation, is duly qualified to do business and is in good
standing in each jurisdiction in which its ownership or lease of property or
the conduct of its businesses requires such qualification, and has all
organizational power and authority necessary to own or hold its properties and
to conduct the businesses in which it is engaged, except in each case where the
failure to so qualify or have such power or authority could not reasonably be
expected to adversely affect the ability of the Purchaser to perform its
material obligations under this Agreement.

 

5.2                               Authorization
of the Documents.

 

The Purchaser has all
requisite limited liability company power and authority to execute, deliver and
perform the Documents to which it is a party and the transactions contemplated
thereby, and the execution, delivery and performance by the Purchaser of the
Documents to

 

8

 

which
it is a party have been duly authorized by all requisite action by the
Purchaser.  This Agreement has been duly
executed and delivered by the Purchaser and this Agreement constitutes and,
when executed and delivered by the Purchaser (assuming the due authorization,
execution and delivery by the other parties thereto) each other Document to
which the Purchaser is a party, will constitute a valid and binding obligation
of the Purchaser, enforceable against the Purchaser in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws and subject to general principles
of equity.

 

5.3                               No
Conflict; Consents.

 

Except as would not have
a Material Adverse Effect, the execution, delivery and performance by the
Purchaser of each of the Documents to which the Purchaser is a party and the
consummation of the transactions contemplated by such Documents will not: (a) result
in any violation of the provisions of the Fundamental Documents of the
Purchaser, as applicable; (b)(i) conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under,
or result in the creation or imposition of any Lien upon any property or assets
of the Purchaser pursuant to, any material indenture, mortgage, deed of trust,
loan agreement or other material agreement or instrument to which the Purchaser
is a party or by which the Purchaser is bound or to which any of the property
or assets of the Purchaser is subject or (ii) result in any violation of
any statute or any judgment, order, decree, rule or regulation of any
court or arbitrator or governmental agency or body having jurisdiction over the
Purchaser; or (c) require the consent, approval, authorization or order
of, or filing or registration with, any such court or arbitrator or
governmental agency or body under any such statute, judgment, order, decree, rule or
regulation is required for the execution, delivery and performance by the
Purchaser of the Documents to which the Purchaser is a party and the
consummation of the transactions contemplated hereby, except for such consents,
approvals, authorizations, orders, filings, registrations or qualifications (i) that
shall have been obtained or made on or prior to the date hereof, (ii) as
may be required under state or foreign securities and blue sky laws and the rules and
regulations of the National Association of Securities Dealers, Inc. or (iii) which
the failure to obtain the same could not reasonably be expected to adversely
affect the ability of the Purchaser to perform its material obligations under
the Documents to which the Purchaser is a party.

 

5.4                               Litigation.

 

There are no legal or
governmental proceedings pending to which the Purchaser is a party or of which
any of its property or assets is the subject that question the validity or
enforceability of this Agreement or any action taken or to be taken by the Purchaser
pursuant hereto; and to the knowledge of the Purchaser, no such proceedings are
threatened or contemplated by governmental authorities or threatened by others.

 

5.5                               Investment
Representations.

 

(a)                                  The
Purchaser is acquiring the Purchased Securities for its own account, for
investment and not with a view to the distribution thereof in violation of the
Securities Act or applicable state securities laws;

 

9

 

(b)                                 The
Purchaser (i) understands that (A) the Purchased Securities have not
been registered under the Securities Act or applicable state securities laws by
reason of their issuance by the Company in a transaction exempt from the
registration requirements of the Securities Act and applicable state securities
laws and (B) the Purchased Securities must be held by the Purchaser
indefinitely unless a subsequent disposition thereof is registered under the
Securities Act and applicable state securities laws or is exempt from such
registration and (ii) has had the opportunity to ask questions of, and
receive answers from, the Company and its management relating to the business
and financial condition of the Business, including as provided in Section 5.6(II);

 

(c)                                  The
Purchaser further understands that the exemption from registration afforded by Rule 144
(the provisions of which are known to the Purchaser) promulgated under the
Securities Act depends on the satisfaction of various conditions, and that, if
applicable, Rule 144 may afford the basis for sales of Purchased
Securities in limited amounts;

 

(d)                                 The
Purchaser has not employed any broker or finder in connection with the
transactions contemplated by this Agreement; and

 

(e)                                  The
Purchaser is an “accredited investor” (as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act). The Purchaser has such
knowledge and experience in financial and business matters that it is capable
of evaluating the risks and merits of this investment. The Purchaser’s
representations in this subsection shall in no way limit the
enforceability of any representations made by the Company in any of the Documents
to which it is a party.

 

5.6                               AWARENESS
OF PUBLIC FILINGS; NON-RELIANCE ON FINANCIAL STATEMENTS.

 

THE PURCHASER ACKNOWLEDGES AND
AGREES THAT IT HAS READ AND IS FAMILIAR WITH THE COMPANY’S DISCLOSURE IN
CURRENT REPORTS ON FORM 8-K FILED WITH THE COMMISSION ON FEBRUARY 15,
2005 AND THEREAFTER, AND WITH ALL OF THE COMPANY’S OTHER PUBLIC FILINGS AND, IN
ACCORDANCE WITH SUCH DISCLOSURE, THE PURCHASER (I) IS NOT RELYING ON THE COMPANY’S
PREVIOUSLY-ISSUED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31,
2003, 2002, 2001 AND 2000, AND EACH OF THE QUARTERLY PERIODS ENDED MARCH 31,
JUNE 30 AND SEPTEMBER 30, 2004, 2003 AND 2002 AND (II) IS AWARE OF AND
HAS HAD ACCESS TO, AND OPPORTUNITY TO ASK QUESTIONS OF, AND RECEIVE ANSWERS
FROM, THE COMPANY CONCERNING ALL OF THE INFORMATION SET FORTH IN ALL SUCH
PUBLIC FILINGS AND/OR ANY OTHER COMPANY MATTERS.

 

10

 

ARTICLE VI

CONDITIONS TO CLOSING

 

6.1                               Conditions
to Purchaser’s Obligations.

 

The obligation of the Purchaser
to purchase and pay for the Purchased Securities at the Closing is subject to
the satisfaction of the following conditions precedent (unless waived by the Purchaser):

 

(a)                                  The
Company shall have duly issued and delivered to the Purchaser the certificates
for the Purchased Securities pursuant to Section 3.2;

 

(b)                                 The
Purchaser shall have received a certificate from the Secretary or an Assistant
Secretary of the Company, dated as of the Closing Date, certifying (i) that
true and complete copies of the Fundamental Documents of the Company as in
effect on such date are attached thereto, (ii) as to the incumbency and
genuineness of the signatures of each Person executing this Agreement and the
other Documents on behalf of the Company and (iii) the genuineness of the
resolutions (attached thereto) of the Board or committee thereof authorizing
the execution, delivery and performance of this Agreement and the other
Documents to which the Company is a party and the consummation of the
transactions contemplated hereby and thereby;

 

(c)                                  Each
of the Documents shall be in full force and effect and no material term or
condition thereof shall have been amended, waived or otherwise modified without
the prior written consent of the Purchaser; and

 

(d)                                 The receipt
of all third party and governmental consents and approvals necessary for the
consummation of all transactions contemplated herein, or any necessary
modifications of third party agreements, including, but not limited to, Board
and stockholder consents and approvals.

 

6.2                               Conditions
to the Company’s Obligations.

 

The obligation of the Company to issue the Purchased Securities to the
Purchaser at the Closing is subject to the satisfaction of the following
conditions precedent (unless waived by the Company):

 

(a)                                  The
Company shall have received payment from the Purchaser of the consideration set
forth in Section 2.4 in accordance with the terms thereof;

 

(b)                                 The
Purchaser shall have performed its obligations under, and shall have complied
with, all the covenants and agreements set forth in this Agreement and all
representations and warranties contained in Article V shall be true
and correct as of the date of the Closing;

 

11

 

(c)                                  Each
of the Documents shall be in full force and effect and no material term or
condition thereof shall have been amended, waived or otherwise modified without
the prior written consent of the Company; and

 

(d)                                 Each
of the Consent Solicitation and the Bank Consent shall be effective, or shall
become effective substantially simultaneous with the Closing, in each case in
accordance with its or their respective terms.

 

ARTICLE VII

COVENANTS OF THE COMPANY AND THE PURCHASER

 

7.1                               Repurchase
of Purchased Securities.

 

The Company and the Purchaser acknowledge and agree that, subject to Section 7.2,
from and after June 1, 2006, the Company shall have the right to cause the
Purchaser to sell to the Company any or all of the Purchased Securities then
held by the Purchaser.  If the Company
elects to exercise such repurchase rights, it shall provide the Purchaser
subject to such repurchase with notice (a “Repurchase Notice”) to such
effect and shall specify therein the (i) number of Purchased Securities
subject to such repurchase and (ii) with respect to any Warrant or share
of Common Stock issuable upon the exercise thereof, the Board FMV (as defined
herein) in accordance with Section 7.2(b).  The Purchaser shall provide representations
and agreements of the type specified in Section 2.6(b) of the
Stockholders’ Agreement in connection with any such sale or repurchase.  The Purchaser, in its capacity as a
Stockholder under the Stockholders’ Agreement hereby acknowledges that any
transfer of Purchased Securities pursuant to this Article VII shall
be a “Permitted Transfer” under the definition thereof in the Stockholders’
Agreement, pursuant to clauses (a)(v) and (b)(i), as applicable.

 

7.2                               Purchase
Price; Dispute Procedures.

 

(a)                                  Preferred
Share Purchase Price; Permitted Transfer. 
The purchase price per Preferred Share to be repurchased pursuant to Section 7.1
shall be equal to the sum of (i) $1.00 and (ii) the
Premium.  The “Premium” shall be
an amount in cash equal to the product of (A) 8% (calculated on a
per year basis or on any portion thereof, commencing on the date hereof and
assuming a year of 360 days) and (B) $1.00.  The purchase price per Warrant or share of
Common Stock issuable upon the exercise thereof to be repurchased shall be the
Fair Market Value.

 

(b)                                 Determination
of Warrant Fair Market Value; Dispute Procedures.  In connection with the distribution of any
Repurchase Notice, the Board shall determine the fair market value (the “Board
FMV”) of the Warrants or the Common Stock issuable upon the exercise
thereof.  Not later than fifteen (15)
days after its receipt of any Repurchase Notice, the Purchaser may dispute the Board
FMV contained therein by delivering to the Company notice to such effect and
therein setting forth the Purchaser’s Alternate FMV (a “Dispute Notice”).  If a Dispute Notice is timely delivered by the
Purchaser, each of the Company and the Purchaser shall, within ten days after
delivery of such Dispute Notice, (1) jointly conduct a lottery to select
from among the ‘Big Four’ national accounting firms (excluding, if applicable,
the Company’s

 

12

 

then-current independent auditor) or (2) solely
to the extent agreed to by each of the Company and the Purchaser, otherwise
agree on, in either case, a single accounting firm to act as a neutral
appraiser ((1) or (2), the “Neutral Appraiser”).  Each of the Purchaser and the Company agrees
to execute, if requested by the Neutral Appraiser, a reasonable engagement letter,
including providing customary indemnities. 
The Neutral Appraiser shall act as an arbitrator to determine the fair
market value of the Warrant or shares of Common Stock issuable upon the
exercise thereof.  The Company covenants
and agrees to provide the Neutral Appraiser with such financial and other
information reasonably requested by the Neutral Appraiser in connection with
its determination of fair market value, subject to the Neutral Appraiser’s
entry into a confidentiality agreement reasonably acceptable to the Company.  Not later than thirty (30) days after the
selection of the Neutral Appraiser, the Neutral Appraiser shall render its
decision on the fair market value of the Warrant or shares of Common Stock
issuable upon the exercise thereof; provided, that the Neutral Appraiser’s
proposed fair market value may not be (i) less than the lower of the Board
FMV and Alternate FMV or (ii) greater than the greater of the Board FMV
and Alternate FMV.  The fair market value
as determined by the Neutral Appraiser in accordance with the foregoing shall
be deemed to be the Fair Market Value, shall be set forth in writing and
delivered to each of the Company and the Purchaser, and shall be final, binding
and conclusive and non-appealable, other than for manifest error or fraud.

 

(c)                                  Fees
and expenses of the Neutral Appraiser engaged in accordance with the terms
hereof shall be borne pro rata as between the Company, on the one hand, and the
Purchaser, on the other hand, in proportion to the relationship between such
party’s proposed fair market value and the Fair Market Value, such that the
party with a proposed fair market value closer to the Fair Market Value shall
pay the lesser amount.

 

ARTICLE VIII

MISCELLANEOUS

 

8.1                               Further
Assurances.

 

The Company shall duly
execute and deliver, or cause to be duly executed and delivered, at its own
cost and expense, such further instruments and documents and to take all such
action, in each case as may be necessary or proper in the reasonable judgment
of the Purchaser to carry out the provisions and purposes of the Agreement and
the other Documents.

 

8.2                               Specific
Performance; Remedies.

 

Damages in the event of
breach of this Agreement or any other Document by the Company or the Purchaser
would be difficult, if not impossible, to ascertain, and it is therefore agreed
that the Company and the Purchaser, in addition to and without limiting any
other remedy or right it may have, will have the right to an injunction or
other equitable relief in any court of competent jurisdiction, enjoining any
such breach, and enforcing specifically the terms and provisions hereof and
thereof, and the Company and the Purchaser hereby waive any and all defenses each
may have on the ground of lack of jurisdiction or competence of the court to grant
such an injunction or other equitable relief. 
The existence of this right to specific performance

 

13

 

will
not preclude the Company or the Purchaser from pursuing any other rights and
remedies at law or in equity that the Company or the Purchaser may have.

 

8.3                               Successors
and Assigns.

 

(a)                                  Neither
the Company nor the Purchaser may assign any of its rights or obligations
hereunder without the prior written consent of the other party.

 

(b)                                 For
the avoidance of doubt, the Purchased Securities purchased hereunder shall be
subject to the terms and provisions of the Stockholders’ Agreement.

 

8.4                               Entire
Agreement.

 

This Agreement and the
other writings referred to herein or delivered pursuant hereto that form a part
hereof contain the entire agreement among the parties with respect to the
subject matter hereof and thereof and supersede all prior and contemporaneous
arrangements or understandings with respect thereto.

 

8.5                               Notices.

 

(a)                                  All
notices, claims, requests, demands or other communications that are required or
otherwise delivered hereunder shall be deemed to be sufficient and duly given
if contained in a written instrument (i) personally delivered or sent by
telecopier, (ii) sent by nationally-recognized overnight courier
guaranteeing next Business Day delivery or (iii) sent by first class,
registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

 

(i)                                     if to the Company, to:

 

MQ Associates, Inc.

4300 North Point Parkway

Alpharetta,
GA  30022

Attention:  Todd W. Latz

Telephone No.: (770)
300-0101

Telecopier No.: (678)
992-7538

 

with
copies to:

 

G. William Speer

1 Atlantic Center, 14th Floor

1201 W. Peachtree Street, NW

Atlanta, GA 30309

Telephone No.: (404) 572-6722

Telecopier No.: (404) 572-6999; and

 

(ii)                                  if to the Purchaser, to:

 

MQ Investment Holdings II, LLC

 

14

 

c/o
J.P. Morgan Partners, LLC

1221 Avenue of the Americas, 40th Floor

New York, New York 10020-1080

Attention: 
Official Notices Clerk

Telephone No.:
(212) 899-3400

Telecopier No.:
(212) 899-3401.

 

(b)                                 Any
notice, demand or request so delivered shall constitute valid notice under this
Agreement and shall be deemed to have been received (i) on the day of
actual delivery in the case of personal delivery, if delivered on a Business
Day (otherwise on the next Business Day), (ii) on the next Business Day
after the date when sent in the case of delivery by nationally-recognized
overnight courier, (iii) on the fifth Business Day after the date of
deposit in the U.S. mail in the case of mailing or (iv) upon receipt in
the case of a facsimile transmission if received on a Business Day (otherwise
on the next Business Day).  Any party
hereto may from time to time by notice in writing served upon the other as
aforesaid designate a different mailing address or a different Person to which
all such notices, demands or requests thereafter are to be addressed.

 

8.6                               Amendments,
Modifications and Waivers.

 

(a)                                  The
terms and provisions of this Agreement may not be modified or amended, nor may
any of the provisions hereof be waived, temporarily or permanently, except
pursuant to a written instrument executed by the Company and the Purchaser.

 

(b)                                 No
waiver by either party shall operate or be construed as a waiver of any
subsequent breach by the other party.

 

8.7                               Governing
Law.

 

THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK (WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS EXCEPT
TO THE EXTENT THAT THE NEW YORK CONFLICTS OF LAWS PRINCIPLES WOULD APPLY THE
APPLICABLE LAWS OF THE STATE OF THE COMPANY’S ORGANIZATION TO INTERNAL MATTERS
RELATING TO ENTITIES SUCH AS THE COMPANY ORGANIZED THEREUNDER).

 

8.8                               Third
Party Reliance.

 

No third party
(including, without limitation, any holder of capital stock of the Company) or
anyone acting on behalf of any Person other than the Purchaser, and each of
them and their respective successors and assigns, shall be a third party or
other beneficiary of such representations and warranties.  No such third party shall have any rights of
contribution against the Purchaser or the Company with respect to such
representations or warranties or any matter subject to or resulting in
indemnification under this Agreement or otherwise.

 

15

 

8.9                               Submission
to Jurisdiction.

 

Any legal action or
proceeding with respect to this Agreement may be brought in the courts of the
State of New York and the United States of America for the Southern District of
New York and, by execution and delivery of this Agreement, the Company hereby
accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts.  The Company hereby irrevocably waives, in
connection with any such action or proceeding, any objection, including,
without limitation, any objection to the venue or based on the grounds of forum
non conveniens, which it may now or hereafter have to the bringing of any such
action or proceeding in such respective jurisdictions.  The Company hereby irrevocably consents to the
service of process of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to it at its address as set forth herein.  Nothing herein shall affect the right of the
Purchaser to serve process in any other manner permitted by law or to commence
legal proceedings or otherwise proceed against the Company in any other
jurisdiction.

 

8.10                        Information.

 

The Purchaser assumes all
responsibility for being and keeping itself informed of the Company’s and its Subsidiaries’ financial condition and assets, and the
nature, scope and extent of the risks that the Purchaser assumes and incurs
hereunder.

 

8.11                        Severability.

 

It is the desire and
intent of the parties that the provisions of this Agreement be enforced to the
fullest extent permissible under the law and public policies applied in each
jurisdiction in which enforcement is sought.  Accordingly, in the event that any provision
of this Agreement would be held in any jurisdiction to be invalid, prohibited
or unenforceable for any reason, such provision, as to such jurisdiction, shall
be ineffective, without invalidating the remaining provisions of this Agreement
or affecting the validity or enforceability of such provision in any
jurisdiction.  Notwithstanding the
foregoing, if such provision could be more narrowly drawn so as to not be
invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of
such provision in any other jurisdiction.

 

8.12                        Counterparts;
Facsimile Signatures.

 

This Agreement may be
executed in any number of counterparts, and each such counterpart hereof shall
be deemed to be an original instrument, but all such counterparts together
shall constitute but one agreement.  Facsimile
counterpart signatures to this Agreement shall be acceptable and binding.

 

*   *  
*   *   *

 

16

 

IN WITNESS WHEREOF,
the parties have duly executed this Securities Purchase Agreement as of the
date first above written.

 

 

	
   

  	
  MQ ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald C. Tomasso

  	
   

  
	
   

  	
   

  	
  Name: Donald C. Tomasso

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MQ
  INVESTMENT HOLDINGS II, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ben Edmands

  	
   

  
	
   

  	
   

  	
   Name: Benjamin B. Edmands

  
	
   

  	
   

  	
   Title: Director

  

 

 

[Signature page to SPA]Exhibit 10.1

 

Employment Agreement dated September 1, 2005,
between VantageMed Corporation and Mark Cameron.

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into by and between VantageMed
Corporation (the “Company”) and Mark Cameron (the “Employee”).  The
effective date of this Agreement is September 1, 2005 (the “Effective Date”).
This agreement supersedes all previous agreements between the parties,
including the offer of employment dated February 8, 2005, as the Chief
Information Officer for the Company.

 

1.                                       Position and
Duties.  Employee will be employed by the Company as its Chief Operating
Officer, reporting to the Company’s Chief Executive Officer. Employee
accepts employment with the Company on the terms and conditions set forth in
this Agreement, and Employee agrees to devote Employee’s full working time,
energy and skill to Employee’s duties at the Company and shall use his best
efforts to perform his duties.  These duties will include, but not be
limited to, those duties normally performed by a Chief Operating Officer, as
well as any other reasonable duties that may be assigned to Employee from time
to time.

 

2.                                       Term of
Employment.  Employee’s employment with the Company
started on February 8, 2005, and shall continue for a period of three (3) years
(the “Term”); provided, however, that the relationship may be terminated by
Employee or the Company pursuant to the provisions of Paragraphs 4 and 5
below.  Thereafter, subject to the provisions for termination in Paragraph
4, this Agreement shall be extended automatically for a term of one year (the “Renewal
Term”), unless:  (a) the Company or the Employee gives written termination
notice to the other party at least thirty days prior to either the termination
of the initial Term of employment or any Renewal Term established thereafter;
or (b) the Company and the Employee agree to a mutually acceptable date on
which to terminate this agreement.

 

3.                                       Compensation. 
Employee will be compensated by the Company for Employee’s services as follows:

 

(a)                                  Salary: 
Employee will be paid an annual salary of One Hundred Sixty Thousand Dollars in
U.S. currency ($160,000.00), less applicable withholding, in accordance with
the Company’s normal payroll procedures.  Employee’s salary will be
reviewed by the Board of Directors (the “Board”) from time to time, but no less
frequently than annually, and may be subject to adjustment based upon various
factors including, but not limited to, Employee’s performance and the Company’s
profitability.  Any adjustment to Employee’s salary shall be in the sole
discretion of the Board.

 

(b)                                 Bonus:  Employee will be eligible to receive a bonus of $50,000 to
$150,000, with a target bonus of $100,000 based on performance, including the
company’s financial performance, at the CEO’s discretion. Unless otherwise
specified in writing, such bonus payments(s) shall not be deemed to have been
earned or accrued until all of the time and performance conditions for the
bonus are met by Employee.

 

(c)                                  Benefits:  Employee
will have the right, on the same basis as other senior executives of the
Company, to participate in and to receive benefits under any Company medical,
life, long-term disability or other group insurance plans, as well as under the
Company’s business expense reimbursement and other policies.  Employee
will accrue three (3) weeks paid vacation annually and shall be compensated in
accordance with the Company’s vacation policy.  Vacation shall be taken at
a reasonable time or times so as not to negatively impact the operations of the
Company.  Employee may accrue a maximum of four weeks vacation.  At
that time, no further vacation shall be earned until Employee has used some
portion of his accrued vacation, thereby reducing the total amount below the
permitted maximum.

 

(d)                                 Stock Options: 
Employee will be granted an additional option to purchase 100,000 shares of the
Company’s common stock under the Company’s 1998 Stock Option/Stock Issuance
Plan, as amended and restated on November 22, 1999 (the “Stock Option Plan”) at
an exercise price equal to the fair market value of that stock on the Effective
Date (the “Option”).  The Option will be governed by and subject to the
terms and conditions of the Company’s standard form of stock option agreement
(which Employee will be required to sign in connection with the issuance of the
Option).

 

 

4.                                       Termination. 
Employee’s employment hereunder shall terminate upon the occurrence of any of
the following events:

 

(a)                                  Voluntary
Resignation.  Employee’s voluntary resignation upon thirty
(30) days’ written notice.  The Company may, in its sole discretion, elect
to waive all or any part of such notice period and accept Employee’s
resignation at an earlier date;

 

(b)                                 Death or
Disability.  Employee’s death or disability (meaning that
Employee is unable to perform Employee’s duties for three or more consecutive
months or four or more non-consecutive months in any one-year period as a
result of a physical and/or mental impairment);

 

(c)                                  Termination
with Cause.  The Company may terminate Employee’s
employment hereunder at any time prior to the end of the Term or any renewal
term for “Cause” as defined below.  For purposes of this Agreement, a
termination for “Cause” occurs upon the happening of any of the following
events:  (i) Employee pleads guilty to, or is convicted of any felony that
impairs Employee’s ability to perform his duties under this Agreement; 
(ii) Employee’s theft, dishonesty, fraud, or the intentional falsification of
any employment or Company records; (iii) Employee intentionally discloses any
of the Company’s confidential or proprietary information or otherwise
materially breaches the Company’s standard form of employee confidentiality and
assignment of inventions agreement; (iv) failure of Employee to satisfactorily
perform the duties of the office held by the Employee as reasonably determined
by the Board, and such failure is not cured within thirty (30) days after the
Employee receives notice thereof from the Board; (v) a material breach of this
Agreement or any other material agreement between Employee and the Company
which, if curable, is not cured within thirty (30) days after Company provides
Employee with written notice of such breach;

 

(d)                                 Termination
without Cause. The Company may terminate Employee’s employment
hereunder at any time prior to the end of the Term or any Renewal Term without
Cause and for any reason;

 

(e)                                  Termination for
Good Reason.  This Agreement shall terminate at Employee’s
option under the following circumstances: (i) the Company’s failure to perform
or observe any of the material terms or provisions of this Agreement, and the
continued failure of the Company to cure such default within thirty (30) days
after written demand for performance has been give to the Company by the
Employee, which demand shall describe specifically the nature of such alleged
failure to perform or observe such material terms or provisions; (ii) a
material reduction in the scope of the Employee’s responsibilities and duties;
or (iii) in the absence of a written agreement between the Company and
Employee, a material reduction in Employee’s base pay or incentive
compensation.

 

Termination
under this subparagraph (e) shall be effective upon the delivery by Employee to
the Company of a Notice of Intended Termination (the “Notice”) at least fifteen
(15) business days prior to termination by Employee.  The Notice shall
state with particularity the basis of such termination.  The Company shall
have fifteen (15) business days after receipt of such Notice to remedy the facts
and circumstances underlying the termination.  Employee shall make a good
faith determination immediately after such fifteen (15) day period whether such
facts and circumstances have been remedied and shall communicate Employee’s
determination in writing to the Company.

 

5.                                       Benefits upon
Termination.  Employee shall receive the following
benefits upon the termination of his employment hereunder pursuant to the terms
hereunder:

 

(a)                                  In the event
Employee’s employment is terminated pursuant to paragraph 4 (a), (b), (c), or
at the end of the Term or any Renewal Term, Employee shall receive all
compensation accrued under Paragraph 3 which is unpaid as of the date of
termination. Employee shall not receive any other compensation from the Company
other than that earned under Paragraph 3 through the date of Employee’s
termination.

 

(b)                                 In the event
Employee’s employment is terminated pursuant to paragraph 4(d) or (e) prior to
the end of the initial Term and any Renewal Term and if Employee signs a
general release of all claims, known and unknown, Employee may have against the
Company arising out of his employment or termination of employment, in a form
satisfactory to the Company, Employee shall receive the following:

 

 

(i) 
A severance payment equal to 9 months’ salary at Employee’s then current
salary, less applicable withholding, in accordance with the Company’s normal
payroll schedule through the applicable severance period.

 

(ii) 
In addition to the severance payment, the Company shall pay the premiums to
continue Employee’s group health insurance coverage under COBRA for the period
that Employee is receiving the severance payment; provided, however, that from
and after the first date that Employee first commences other employment or
provides services as a consultant or other self-employed individual, the
Company, at its option, may eliminate or otherwise reduce payment of the COBRA
premiums to the extent the Employee receives health benefits from such other
employment or self-employment.

 

6.                                       Confidential
and Proprietary Information.   As a condition
of Employee’s employment, Employee agrees to sign the Company’s standard form
of employee confidentiality and assignment of inventions agreement.

 

7.                                       Dispute
Resolution.  Any dispute arising out of, or relating to,
the rights or obligations of the parties under this Agreement shall be
conclusively determined by binding arbitration.  The arbitration shall be
conducted as follows:

 

(a) 
Binding Arbitration.  Any dispute between the parties shall be
submitted to, and conclusively determined by, binding arbitration in accordance
with this paragraph.  The provisions of this paragraph shall not preclude
any party from seeking injunctive or other provisional or equitable relief in
order to preserve the status quo of the parties pending resolution of the
dispute, and the filing of any action seeking injunctive or other provisional
relief shall not be construed as a waiver of that party’s arbitration
rights.  A single arbitrator in accordance with the then-existing
employment rules of the American Arbitration Association shall conduct the
arbitration.  The arbitrator, whose decision shall be final and binding,
shall be selected in accordance with the rules of the American Arbitration
Association.

 

(b) 
Location of Arbitration.  Any arbitration hearing shall be
conducted in the county in which venue would be proper for an initiation of a
civil action arising out of the dispute.

 

(c) 
Applicable Law.  The arbitration of any dispute shall be governed
by the California Arbitration Act (California Code of Civil Procedure 
§ 1280, et  seq.) and minimum due process requirements
established by the California Supreme Court in Armendariz
v. Foundation Health Psychcare Services, Inc., 24 Cal.4th 83 (2000).

 

(d) 
Limitation on Scope of Arbitrator’s Award or Decision.  The parties
to this Agreement agree that if the arbitrator finds any disputed claim to be
meritorious, the arbitrator shall have the authority to order legal and/or
equitable relief appropriate to the claim.

 

(e) 
Attorney’s Fees.  Each party shall initially bear its/his own
attorney’s fees.  However, the parties to this Agreement agree that the
arbitrator, in his or her discretion, may award to the prevailing party the
reasonable attorney’s fees incurred by the party in participating in the
arbitration process.

 

8.                                       Representation
by Counsel.  The parties have carefully read this
Agreement and the contents hereof are known and understood by all
parties.  The parties have each had the opportunity to receive independent
legal advice from attorneys of their choice with respect to the advisability of
executing this Agreement.  The parties acknowledge that they have executed
this Agreement after independent investigation and without fraud, duress, or
undue influence.

 

9.                                       Notices.  For
purposes of this Agreement, notices and other communications provided for in
this Agreement shall be in writing and shall be delivered personally or sent by
United States certified mail, return receipt requested, postage prepaid,
addressed as follows:

 

 

	
  If
  to Employee:

  
	
   

  
	
   

  	
  Mark
  Cameron

  1 Tranquil

  Newport Coast, CA 92657

  
	
   

  
	
  If
  to Company:

  
	
   

  
	
   

  	
  Chairman
  of the Audit Committee

  
	
   

  	
  VantageMed
  Corporation

  
	
   

  	
  11060
  White Rock Road

  
	
   

  	
  Suite
  210

  
	
   

  	
  Rancho
  Cordova, CA  95670

  

 

10.                                 Severability.  If any
provision of this Agreement is deemed invalid, illegal or unenforceable, such
provision shall be modified so as to make it valid, legal and enforceable, and
the validity, legality and enforceability of the remaining provisions of this
Agreement shall not in any way be affected.

 

11.                                 Assignment.  
In view of the personal nature of the services to be performed under this
Agreement by Employee, Employee cannot assign or transfer any of Employee’s
obligations under this Agreement.

 

12.                                 Entire
Agreement.   This Agreement and the agreements
referred to above constitute the entire agreement between Employee and the
Company regarding the terms and conditions of Employee’s employment, and they
supersede all prior negotiations, representations or agreements between
Employee and the Company regarding Employee’s employment, whether written or
oral.

 

13.                                 Modification.  
This Agreement may only be modified or amended by a supplemental written
agreement signed by Employee and an authorized representative of the Company.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year written below.

 

	
   

  	
  VantageMed
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Philip D. Ranger

  	
   

  
	
  Date: September
  1, 2005

  	
  By:
  Philip D. Ranger

  
	
   

  	
  Its: 
  Chief Financial Officer

  
	
   

  	
   

  
	
  Date:
  September 1, 2005

  	
  /s/
  Mark Cameron

  	
   

  
	
   

  	
  Mark
  Cameron

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]