Document:

Asset_Purchase_Agreement_Bay_Walk-In

Exhibit 10.1
ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is entered into as of June 12, 2014 (the “Effective Date”) by and among BAY WALK-IN CLINIC, INC., a Florida corporation (“Seller”), SHARON E. STONE, an individual resident of the State of Florida (“Owner” and together with Seller, collectively, “Seller Parties.”) and ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Buyer”).

A.Seller  operates an urgent care and occupational medicine business (the “Business”) from premises located at 2306 Highway 77, Panama City, Florida 32405, (the “Highway 77 Center”) and 8811 Front Beach Road, Panama City Beach, Florida 32407 (the “Front Beach Center” and together with the Highway 77 Center, the “Centers”); and

B.Seller Parties desires to sell and assign to Buyer, and Buyer desires to purchase and assume from Seller Parties, certain assets and liabilities used in the operation of the Business, on the terms and subject to the conditions described in this Agreement. 

NOW, THEREFORE, in consideration of the premises and mutual promises made herein, and in consideration of the representations, warranties and covenants contained herein, the parties agree as follows:

Article 1 
SALE AND PURCHASE
1.1    Purchased Assets.  Subject to the terms and conditions of this Agreement, Seller Parties shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from Seller Parties, all of Seller Parties’ right, title and interest in and to the following assets (collectively, the “Purchased Assets”):
(a)All tangible and intangible property used or held for use in the operation of the Business, whether or not such property is located at the Centers, including all furniture, fixtures, instruments, inventory, office supplies, medical supplies, signage, leasehold improvements, general equipment, medical equipment, computer hardware, computer software, telecommunications equipment, telephone and fax numbers, post office boxes, advertising and marketing materials, business plans and other items of tangible and intangible personal property owned by Seller Parties or, to the extent assignable, leased or licensed by Seller Parties, together with any express or implied warranty by the manufacturer, seller or lessor of any item or component part thereof, to the extent such warranties may be assigned without consent or any requisite consent is obtained, and all maintenance records and other documents related thereto (which property shall include, by way of illustration and without limitation all property described in Schedule 1.1(a));

(b)    All accounts receivable attributable to goods sold (including Pharmaceutical Inventory (as defined in Section 1.1(d)) or services rendered in the operation of the Business prior to the Closing Date (the “Accounts Receivable”), whether proceeds from the Accounts Receivable are to be deposited, transferred or paid to a lockbox, deposit account, or any other account under the control of either Seller Party or their Affiliates (as defined in Section 2.14(a), which shall be transferred in accordance with the terms and conditions set forth in the Transition Services Agreement (as defined in Section 5.1(d));
(c)    All books and records, including all information relating to the medical history, examination, diagnosis or treatment of any patient treated in the operation of the Business (the “Patient Records”), of Seller Parties created or maintained in connection with the Business whether stored in hard copy, electronic or any other medium; provided that the Patient Records shall be transferred and assigned in accordance with the provisions set forth in Section 4.3;
(d)    All prescription drugs, devices and other items of inventory the ownership of which is reserved to licensed individuals or entities (the “Pharmaceutical Inventory”), which shall be transferred in accordance with the provisions set forth in Section 4.3;
(e)    To the extent assignable, all permits, licenses, approvals, certificates, consents and other authorizations by any governmental authority issued to or held by Seller and pertaining to the Purchased Assets, the Centers or the Business including those listed on Schedule 1.1(e) (the “Permits”); 
(f)    All contracts, leases, licenses, purchase orders, commitments, or other binding arrangements of any of the Seller Parties relating to the Business, whether written or oral, and all rights therein and thereunder (the “Contracts”) that are assignable and are designated by Buyer prior to Closing on Schedule 1.1(f) (the “Assumed Contracts”);
(g)    All intellectual property, web pages, URLs, blogs, social media pages and accounts, email addresses, domain names, websites and content contained therein, trademarks, trade names, business names, service marks, mascots, emblems, logos, letterheads, trade secrets and copyrights as listed on Schedule 1.1(g);
(h)    All advance payments, prepayments, prepaid expenses, and deposits made by Seller relating to the Purchased Assets, the Centers or the Business; and
(i)    All goodwill associated with the Business, the Centers and the Purchased Assets. 
1.2    Excluded Assets.  Notwithstanding anything in this Agreement to the contrary, the following assets, properties, contracts, agreements, rights and interests of Seller Parties (collectively, the “Excluded Assets”) are excluded from the Purchased Assets and shall remain the property of Seller Parties after Closing:
(a)    All cash and cash equivalents;

(b)    All real property, leases thereto and improvements thereon, which shall include all rights, title, and interest to the billboard located at the Highway 77 Center;
(c)    All employee benefit plans of Seller Parties and all assets attributable thereto;
(d)    Seller Parties’ corporate seals, organizational documents, minute books, stock books, tax returns, and all other books of account or other records having to do with the corporate organization of Seller Parties;
(e)    Seller’s tax identification number and provider numbers;
(f)    All Contracts related to the Business to which any Seller Party is a party and which are not among the Assumed Contracts; and
(g)    All rights that accrue or will accrue to Seller Parties under this Agreement and any other agreement, instrument or certificate executed and delivered in connection with the transactions contemplated by this Agreement (collectively, the “Transaction Documents”).
1.3    Assumed Liabilities.  Buyer shall assume, pay, fulfill, perform or otherwise discharge when due and in accordance with the applicable terms, the following debts, liabilities, obligations, expenses, taxes, contracts or commitments of Seller Parties whether the same are known or unknown, choate or inchoate, disclosed or undisclosed, matured or unmatured, accrued, absolute or contingent (“Liabilities”) relating to the Business or the Purchased Assets (collectively, the “Assumed Liabilities”): 
(a)    All Liabilities relating to or arising from any of the Assumed Contracts, but only to the extent such Liabilities do not relate to or arise from (i) a breach or failure to perform when due any of the terms of the Assumed Contracts prior to the Closing Date or (ii) any action, omission or occurrence taking place prior to the Closing Date;  
(b)    All Liabilities for accrued but unused sick, personal and vacation days of Seller’s employees named on the Retained Worker List (as defined in Section 4.2(a)) as of the Closing Date, which Liabilities are set forth on Schedule 1.3(b) (the “PTO Accrual”).

1.4    Retained Liabilities.  Buyer shall not assume, and Seller Parties shall pay, perform and discharge when due, any and all Liabilities of any Seller Party (including any Liability arising under this Agreement) other than the Assumed Liabilities (collectively, the “Retained Liabilities”).  If any of the Retained Liabilities are not timely paid, or if Buyer determines that Seller Parties’ failure to pay any such Retained Liability will impair or impede Buyer’s conduct of the Business or otherwise adversely affect Buyer or the Business, then Buyer or any of its Affiliates may elect, at any time on or after the Closing Date, to make such payments directly to the party to whom payment is due.  Upon making such payment and in addition to any other rights or remedies Buyer may have in this Agreement at law or in equity, Buyer may seek direct reimbursement from any Seller Party for the full amount of such payment, in addition to any other rights or remedies Buyer may have in this Agreement at law or in equity. Notwithstanding the foregoing, Buyer shall timely pay, and Buyer shall not be entitled to seek direct reimbursement from Seller Parties, an aggregate amount of up to $50,000 of Accounts Payable (as defined in Section 1.4(d)), excluding any payroll payments due to Seller's employees that accrued prior to the Closing Date.  Without limiting the generality of the foregoing, the following Liabilities of Seller Parties (to the extent not among the Assumed Liabilities) shall constitute Retained Liabilities:
(a)    Liabilities of any type whatsoever (whether in tort, contract or otherwise) relating to or arising from actions, omissions or occurrences taking place prior to the Closing Date (except for the Accounts Payable), including with respect to the provision of (or failure to provide) professional medical or health care services;
(b)    Liabilities existing as of the Closing Date under any Contract (including any Assumed Contract), whether or not such Contract has been disclosed to Buyer and whether such Liability relates to any breach or failure to perform when due any term of such Contract;
(c)    Liabilities for indebtedness of any of the Seller Parties, including (i) indebtedness for borrowed money, whether or not evidenced in writing and whether secured, or unsecured, (ii) obligations under conditional sale or other title retention agreements relating to purchased property, (iii) capital lease obligations, (iv) guarantees of any such indebtedness referred to in clauses (i)-(iii) of any other individual or entity;
(d)    All trade payables, notes payable, accounts payable or similar Liabilities (the “Accounts Payable”), which Accounts Payable, as of the Closing Date, are set forth on Schedule 1.4(d); 
(e)    Liabilities relating to or arising from the Excluded Assets;
(f)    Liabilities for federal, state or local income, excise, sales, use, property, franchise or other taxes, including all Liabilities for the payment of any taxes imposed by law on any Seller Party arising at any time from or by reason of the transactions set forth in this Agreement and the other Transaction Documents (collectively, the “Transactions”); 
(g)    Liabilities for all compensation and employee benefits to any Service Provider (as defined in Section 2.15(a)) including unpaid payroll expenses, bonuses, sick, personal or vacation time, earned or accrued prior to Closing Date other than the PTO Accrual;

(h)    Liabilities arising from any Seller Party’s failure to provide timely notice or to obtain any third-party consent required prior to or in connection with the execution and delivery of any Transaction Document or the consummation of any of the Transactions; 
(i)    Liabilities resulting from any violation (or alleged violation) by any Seller Party of any law, statute, code, ordinance, regulation or rule, including any of the Health Care Laws (as defined in Section 2.9), of any court or other governmental authority of competent jurisdiction and authority, at any time that relate to or arise from the Purchased Assets, the Centers or the operation of the Business prior to the Closing Date; and 
(j)    Liabilities, damages, obligations, overpayments, false claims, penalties, fines, assessments, repayments, recoupments, offsets, recoveries, adjustments or similar liabilities of Seller due or that may become due to any federal or state governmental agency, commercial insurer, employer, patient or any other third party that relate to or arise from the provision of, billing for,  or failure to provide professional medical or health care services prior to the Closing Date.
1.5    Purchase Price.  The aggregate consideration for the sale, assignment, transfer and delivery of the Purchased Assets, subject to the prorations and adjustments described herein, is $2,200,000 (as adjusted, the “Purchase Price”).  The Purchase Price shall be paid as follows:
(a)    At Closing, Buyer shall pay to Seller by wire transfer of immediately available funds an amount calculated as follows (the “Cash Purchase Price”): (i) the Purchase Price, minus (ii) the PTO Accrual, minus (iii) the initial principal balance of the Notes (as defined in Section 1.5(c)).  The amounts to be paid, and the accounts to which payment shall be made, pursuant to this Section 1.5(a) shall be as set forth in Schedule 1.5(a).
(b)    The amount of $700,000 shall be paid at Closing by delivery of the following three promissory notes each by Buyer in favor of Seller (collectively, the “Notes”): 
(i)    A promissory note in the amount of $200,000 (as may be adjusted pursuant to Section 1.6 and after Closing, pursuant to Section 6.9) in substantially the form attached as Exhibit A (“Note A”).  Simple interest shall accrue on the outstanding principal balance of Note A at the rate of 5% per annum.  The outstanding balance of principal and interest shall be paid in the following two installments: (A) a payment in the amount of $110,000 shall be due and payable on the first anniversary of the Closing Date, and (B) the remaining balance of principal and interest shall be satisfied, in full, on the second anniversary of the Closing Date.
(ii)    A promissory note in the amount of $200,000 (as may be adjusted pursuant to Section 1.6 and after Closing, pursuant to Section 6.9) in substantially the form attached as Exhibit B (“Note B”).  Simple interest shall accrue on the outstanding principal balance of Note B at the rate of 5% per annum.  The outstanding balance of principal and interest of Note B shall be paid in 24 equal, monthly installments, with the first installment becoming due and payable on the final day of the first full calendar month immediately following the Closing Date, and successive installments on the final day of each of the 23 successive calendar months thereafter.  

(iii)    A non-interest bearing promissory note in the amount of $300,000 (as may be adjusted after Closing, pursuant to Section 6.9) in substantially the form attached as Exhibit C (“Note C”).  The outstanding principal balance of Note C shall be paid in 30 equal, monthly installments of $10,000, with the first installment becoming due and payable on the final day of the first full calendar month immediately following the Closing Date, and successive installments on the final day of each of the 29 successive calendar months thereafter.  
1.6    Purchase Price Adjustment.  The Purchase Price shall be decreased, if at all, as follows:
(a)    by the amount $300,000 exceeds the aggregate proceeds from the Accounts Receivable collected during the period (the “Adjustment Period”) commencing on the Closing Date and ending at the close of business on the 60th day after Closing (the excess, if any, being the “Purchase Price Adjustment”).   Within 15 days after the expiration of the Adjustment Period, Buyer shall prepare and deliver to Seller Parties a statement setting forth the amount of the Purchase Price Adjustment and a schedule of the collected Accounts Receivable during the Adjustment Period in support of Buyer’s calculation of the Purchase Price Adjustment.  Upon delivery of such statement, the outstanding balances of (a) Note A and (b) to the extent the outstanding balance of Note A is insufficient to offset the full amount of the Purchase Price Adjustment, Note B, both without the consent or further action by any party, by the amount of the Purchase Price Adjustment;
(b)    by the amount the difference between $187,094 and the balance of accounts receivable reflected on the Audited Financial Statements (as defined in Section 2.11) exceeds $30,000.
1.7    Lease and Purchase Option.  At Closing, Buyer and Seller shall enter into a Lease and Purchase Option Agreement in substantially the form of Exhibit D (the "Lease and Purchase Option Agreement"), pursuant to which Buyer (i) shall lease the real property upon which the Centers are situated (the “Premises”) on a triple-net basis, at a lease rate between $21 and $25 per square feet, and for an initial term of ten years commencing on the Closing Date; and (ii) Seller shall grant Buyer an option to purchase the Premises at any time after the third anniversary of the Closing Date and before the termination date of the Lease and Purchase Option Agreement.  The purchase price for the Premises shall either be (x) the fair market value of the Premises (as determined by a commercial real estate appraiser mutually agreeable to Buyer and Seller) as of the date the option is exercised or (y) if Seller or Owner receives a bona fide, third-party offer to purchase the Premises, which Seller and Owner desire to accept, the purchase price shall be equal to that offered by the third-party offeror. 

1.8    Prorations. At Closing, Buyer and Seller Parties shall prorate, as of the Closing Date, all amounts in which Buyer will become obligated to pay after Closing, and that relate in whole or in part to any period prior to Closing, including any applicable taxes, real estate and personal property lease payments and all other expenses (regardless when due) relating to or arising from the operation or ownership of the Business, the Centers, and the Purchased Assets.  Unless the actual amount to be prorated is immediately available, such expenses shall be apportioned between Seller and Buyer based on the number of days of the applicable tax or billing period up to the Closing Date and the number of days of such period after the Closing Date.  Notwithstanding the foregoing, the Retained Liabilities shall be the exclusive obligation and liability of Seller.
1.9    Allocation of Purchase Price.  The Purchase Price shall be allocated among the Purchased Assets for all purposes in the manner set forth in Schedule 1.9.  Buyer shall prepare and furnish to Seller Parties an initial proposal of the purchase price allocation, and each of the parties shall make all appropriate tax and other filings, including but not limited to IRS Form 8594, on a basis consistent with such allocation.  No party shall take any position (whether in audits, tax returns or otherwise) inconsistent with such allocation unless required to do so by applicable law. 
1.10    Closing.  The purchase and sale of the Purchased Assets and the assumption of the Assumed Liabilities (“Closing”) shall occur at a mutually agreed upon date and time, at the offices of Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, 420 20th Street North, Birmingham, AL 35203 (whether in person, through the delivery on or prior to Closing of originally executed documents or scanned copies of originally executed documents to the satisfaction of both parties); provided that all conditions precedent and other matters required to be completed as of Closing, including those identified in Article 5, have been or will be completed on such date.  Closing shall be deemed to occur and shall be effective as of 12:01 a.m., Dallas, Texas time on the date the Closing occurs (the “Closing Date”).  All events occurring at Closing shall be deemed to occur simultaneously.  
1.11    Seller Parties’ Closing Deliveries.  At Closing, Seller Parties shall deliver, or cause to be delivered, to Buyer:
(a)    A Bill of Sale in substantially the form of Exhibit E, duly executed by each of the Seller Parties;
(b)    A duly executed counterpart to the Lease and Purchase Option Agreement;
(c)    A counterpart to a Consulting Agreement, duly executed by Owner in substantially the form attached as Exhibit F (the “Consulting Agreement”); 
(d)    A counterpart to an Assignment and Assumption Agreement, duly executed by Seller Parties (the “Assignment Agreement”) in substantially the form of Exhibit G;
(e)    A duly executed counterpart to the Lease and Purchase Option Agreement; 
(f)    A duly executed counterpart to a Noncompetition Agreement among Owner, Seller and Buyer (the “Noncompetition Agreement”) in substantially the form of Exhibit H;

(g)    A Closing Certificate in substantially the form of Exhibit I (a “Closing Certificate”) certifying that, among other things, all of the representations, warranties, covenants and agreements of Seller Parties contained in this Agreement are true, correct and not breached as of the Closing Date;
(h)    Evidence reasonably satisfactory to Buyer of the release of all liens, security interests, conditions, claims, charges, or restrictions of any kind relating to or encumbering the Purchased Assets or the Business (but excluding the Permitted Liens (as defined in Section 2.5) and as set forth on Schedule 1.11(h) (the “Liens”); 
(i)    Copies of all consents, authorizations, waivers, and approvals from all governmental and other third parties (under any Contract or otherwise) necessary for Seller Parties to execute, deliver and perform their obligations under this Agreement and the other Transaction Documents and to consummate the Transactions, each of which is set forth on Schedule 1.11(i); 
(j)    Copies of such officers’ certificates, good standing certificates, corporate approval documents, incumbency certificates and other customary closing documents as Buyer may reasonably request; and
(k)    Evidence satisfactory to Buyer confirming that the aggregate cash collected at the Centers in the 12-month period ending within five days prior to the Closing Date is at least 90% of the average cash collected at the Centers during the same period in the immediately preceding 12-month period; provided that for purposes of calculating the aggregate cash collected in both periods, all funds received on account of patients whose treatment was paid in whole or in part by a federal or state government program (i.e., Medicare, Medicaid, TRICARE, etc.) shall be disregarded.  
1.12    Buyer’s Closing Deliveries. At Closing, Buyer shall deliver to Seller Parties:
(a)    The Cash Purchase Price; 
(b)    The Notes, duly executed by Buyer;
(c)    A duly executed counterpart to the Lease and Purchase Option Agreement;
(d)    A duly executed counterpart to the Consulting Agreement; 
(e)    A duly executed counterpart to the Assignment Agreement.
(f)    A duly executed counterpart to the Noncompetition Agreements; and
(g)    A Closing Certificate certifying that, among other things, all of the representations, warranties, covenants and agreements of Buyer contained in this Agreement are a true, correct and not breached as of the Closing Date.

1.13    Nonassignable Contracts and Authorizations.  If any Assumed Contract is not capable of being assigned or transferred without the consent or waiver of a third party (including a governmental authority), and such consent or waiver has not been given, or if such assignment or transfer or attempted assignment or transfer would constitute a breach thereof or a violation of any law, decree, order, regulation or other governmental edict, this Agreement shall not constitute an assignment or transfer thereof, or an attempted assignment or transfer of any such Assumed Contract.  Notwithstanding the foregoing, Seller Parties shall be responsible for and shall take any and all commercially reasonable action, at their sole expense, to obtain the consent, approval or waiver of any third party required to assign or transfer an Assumed Contract to Buyer.
ARTICLE 2 
REPRESENTATIONS AND WARRANTIES OF SELLER PARTIES
Each Seller Party, jointly and severally, makes the following representations and warranties to Buyer:

2.1    Organization; Qualification.  Seller is a Florida corporation duly incorporated, validly existing and in good standing under the laws of the State of Florida.  Seller is qualified to do business and is in good standing in the State of Florida and in each other jurisdiction in which the nature of the Business or the character of its assets make such qualification necessary.  Seller has all requisite power and authority to own, operate, lease and license, as the case may be, the Purchased Assets, and to operate the Business as presently conducted.  
2.2    Ownership.  Owner is the sole owner of Seller, and except for the securities owned by Owner, there are no issued or outstanding securities, profit-sharing interests or voting interests of Seller, or any agreements, warrants or options to purchase or acquire any securities in Seller. 
2.3    Authority.  Seller Parties have all requisite power and authority to execute, deliver and perform their respective obligations under each of the applicable Transaction Documents and to consummate the Transactions.  The execution and delivery of, and performance under, the Transaction Documents and the consummation of the Transactions have been duly authorized by the appropriate persons and governing bodies, as applicable, and no other action, approval or consent on the part of any of the Seller Parties or any third party is necessary to consummate the Transactions or to execute, deliver or perform Seller Parties’ obligations set forth in the Transaction Documents.
2.4    Execution and Binding Effect.  This Agreement has been duly and validly executed and delivered by Seller Parties and constitutes, and the other Transaction Documents upon execution and delivery by Seller Parties, as the case may be, will constitute (assuming, in each case, the due and valid authorization, execution and delivery thereof by the other party thereto), legal, valid and binding obligations of Seller Parties, as applicable, enforceable against such party or parties in accordance with their respective terms except as such enforceability may be limited by applicable law or equitable principles. 

2.5    Purchased Assets.  The Purchased Assets include all of the tangible and intangible assets used or held for use in the operation of the Business.  The Purchased Assets are in good operating condition and repair, and are adequate for the uses to which they are being put, and neither the Centers nor any item of tangible personal property among the Purchased Assets is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost.  Seller Parties have good, clear, indefeasible, valid and marketable title to, a valid leasehold interest in, or a valid and enforceable license or right to use, as the case may be, the Purchased Assets, and at Closing, Buyer will acquire good and marketable title to, a valid leasehold interest in, or a valid and enforceable license or right to use, as the case may be, the Purchased Assets, free and clear of all Liens other than those described on Schedule 2.5 (the “Permitted Liens”).
2.6    Consents and Approvals.  Except as set forth in Schedule 1.11(i), no consent, approval, waiver, authorization or other action of or by any governmental or other third party, is required to execute, deliver or perform the obligations under the Transaction Documents or to consummate the Transactions, including the purchase, sale and transfer of the Purchased Assets.
2.7    Litigation.  Except as set forth in Schedule 2.7, there is no action, lawsuit, administrative proceeding, condemnation, arbitration, investigation or other proceeding (each, a “Legal Proceeding”) pending, threatened against or affecting any Seller Party, the Purchased Assets, the Centers or the Business, at law or in equity, before any court, administrative or arbitrative panel, or governmental or regulatory agency or authority, and no basis for any Legal Proceeding exists that could affect any Seller Party, the Purchased Assets, the Centers or the Business.
2.8    Contracts.  Schedule 2.8 contains the party names, effective date and a brief description of each Contract (whether written or oral), each of which has been delivered to Buyer (to the extent in writing) or disclosed and described in reasonable detail to Buyer (to the extent oral).  Except as otherwise indicated on Schedule 2.8, (a) all of the Contracts are valid, binding and enforceable in accordance with their respective terms and are in full force and effect, (b) no default or alleged default by Seller Parties or any other party to the Contracts exists, and no event or condition has occurred which with notice or lapse of time, or both, would constitute a default under any of the Contracts, and (c) no Seller Party has any indication of the intention of any party to the Contracts to cancel, terminate or amend any of the Contracts or reason to believe any such action is contemplated by any such party.

2.9    Compliance With Laws.  With respect to the Centers, the Purchased Assets, the Business, and Service Providers, Seller Parties are in compliance with all applicable state and federal laws, ordinances, regulations, rules, orders, injunctions, decrees or other requirements of any court or federal, state, county, municipal or other governmental department, commission, board, bureau, agency or instrumentality (including, without limitation, civil rights laws, fire codes, confidentiality laws, record and document maintenance laws, zoning ordinances, building, occupancy and use restrictions, and public and occupational health and safety codes), including all applicable state and federal health care laws, rules, regulations, ordinances and orders (collectively, the “Health Care Laws”), including those relating to the payment or receipt of illegal remuneration, (such as 42 U.S.C. § 1320a-7b(b) (the “Anti-Kickback Statute”), 42 U.S.C. 1395nn (the “Stark Law”), 42 U.S.C. § 1320a-7a, 42 U.S.C. § 1320a-7b(a), 42 U.S.C. § 1320a-7b(c), the administrative False Claims Act (42 U.S.C. § 1320a-7b(a)), the Civil False Claims Act (31 U.S.C. § 3729, et seq.), the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d, et seq.), as amended, (“HIPAA”) ownership custody and retention of the Patient Records and the Pharmaceutical Inventory, the splitting of medical fees with nonlicensed persons, and the supervision of and delegation of authority to advanced practice nurses, nurse practitioners, and physician assistants.  Except as described in Schedule 2.9, no Seller Party has received any notice of (a) any violation of any such laws, ordinances, regulations, rules, orders, injunctions, decrees or other requirements within the last six (6) years, or (b) any pending (or present intent of any governmental agency or authority to pursue any) inspection or audit relating to any such laws, ordinances, regulations, rules, orders, injunctions, decrees or other requirements.
2.10    Environmental Matters.  To Seller Parties’ knowledge, no action or omission by or on behalf of either Seller Party has resulted in either Seller Party’s or the Centers’ material noncompliance with any applicable statutes, laws, rules, regulations and binding governmental determinations relating to environmental, health and safety matters (including, without limitation, those relating to toxic or hazardous substances), including, without limitation, the Clean Air Act, the Clean Water Act, the Solid Waste Management Act (as amended by the Resource Conservation and Recovery Act), the Comprehensive Environmental Response, Compensation and Liability Act (as amended by the Superfund Amendments and Reauthorization Act), the Emergency Planning and Community Right-to-Know Act, the Toxic Substances Control Act and the Occupational Safety and Health Act.  To Seller Parties’ knowledge, no conditions or circumstances exist with respect to the Centers, the Business or the Purchased Assets that could give rise to any remedial action under, or impose any liability on Seller Parties or Buyer with respect to, any statute, law, rule, regulation or binding governmental determination regarding any environmental, health or safety matters.

2.11    Financial Condition.  Schedule 2.11 contains (i) audited financial statements of Seller consisting of the balance sheet of the Business as of December 31, 2013 and the related statements of income and cash flow for such period (the “Audited Financial Statements”), and unaudited financial statements consisting of the balance sheet of the Business as of December 31 in each of the years 2011 and 2012 and the related statements of income and cash flow for each such period as well as the statements of income and cash flow for the current-year-to-date ("Unaudited Financial Statements" and together with the Audited Financial Statements, collectively, the “Year-End Financial Statements”). Within fifteen (15) days after the close of each calendar month after the Effective Date and before the Closing Date, Seller shall prepare and deliver unaudited financial statements consisting of a balance sheet and the related statement of profit and loss as of the end of each such calendar month (the “Interim Financial Statements” and together with the Year-End Financial Statements, the “Financial Statements”).  The Financial Statements (a) do and will fairly present in all material respects, in accordance with GAAP, applied on a consistent basis (except as may be indicated in the related notes and schedules thereto), the financial position of Seller as of the respective dates thereof and the results of operations of Seller for the respective periods therein, and (b) are and will be true, complete and correct in all material respects as of the respective dates and for the respective periods above stated.
2.12    Undisclosed Liability.   No Liability exists affecting the Business, the Centers or the Purchased Assets other than (a) as reflected on the balance sheet included in the most recent Financial Statements and (b) which constitutes an Account Payable incurred after the date of the most recent Interim Financial Statement.
2.13    Accounts Receivable. The Accounts Receivable (a) as of the Closing Date are as set forth on Schedule 2.13; (b) have arisen from bona fide transactions involving the sale of goods or the rendering of services in the ordinary course of Seller Parties’ operation of the Business, consistent with past practice; (c) constitute only valid, undisputed claims of Seller not subject to claims of set-off or other defenses or counterclaims; and (d) subject to a reserve for bad debts shown on the Interim Financial Statements or, with respect to Accounts Receivable arising after the date of the most recently submitted Interim Financial Statements, on the accounting records of the Business, are collectible in full within 90 days after billing. The reserve for bad debts shown on the Interim Financial Statements or, with respect to Accounts Receivable arising after the date of the most recently submitted Interim Financial Statements, on the accounting records of the Business, have been determined in accordance with GAAP, consistently applied, subject to normal year-end adjustments and the absence of disclosures normally made in footnotes.

2.14    Service Providers.  
(a)    Schedule 2.14(a) contains (i) a current, correct and complete list of the names of all individuals and entities employed or engaged (as independent contractors) by Seller Parties in connection with the Business (collectively, the “Service Providers”); (ii) a summary of each Service Provider’s current compensation rate, along with any annual bonus, additional compensation or other benefits (whether current or deferred) promised, accrued, or payable to each such Service Provider for services rendered or to be rendered through the period ending as of the Closing Date and an explanation of the applicable formula or calculation method used to arrive at such bonus or additional compensation; and (iii) a list of all Service Providers that have given notice to any Seller Party of a present intention to terminate such Service Provider’s relationship with the applicable Seller Party.  Seller Parties have delivered to Buyer copies of all written agreements between any Seller Party or any of their Affiliates and any Service Provider as of the Closing Date and all employee or contractor manuals, materials, policies, procedures and work-related rules applicable to employees or independent contractors providing services to the Business. For purpose of this Agreement, the term “Affiliate” shall have the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act of 1934, as amended. 
(b)    All employees are employed on an “at will” basis, and no Seller Party is a party to any oral (express or implied) or written employment agreements, consulting agreements, or other agreements that contains any severance or termination pay obligations.  Each Service Provider has been correctly classified and treated (for withholding and all other purposes) as an employee or independent contractor, as the case may be, and no Service Provider classified by any Seller Party as an independent contractor is entitled to overtime, benefits, or compensation of any kind, under any benefit plan of any Seller Party.  Each employee classified as “exempt” from overtime under the Fair Labor Standards Act and any applicable state laws governing wages, hours, and overtime pay has been properly classified as such, and each non “exempt” employee has been properly classified in accordance therewith and has been paid overtime wages consistent with applicable law. There are no actions pending or, to the knowledge of Seller Parties, threatened against any Seller Party by or with any governmental authority or arbitrator in connection with the employment of any current or former Service Provider, including any claim relating to unfair labor practices, employment discrimination, harassment, retaliation, equal pay, wage and hours or any other employment related matter arising under applicable laws.
2.15    Absence of Certain Changes.  Except as set forth on Schedule 2.15, since the date of the Audited Financial Statements, Seller Parties have operated the Business in the ordinary course, consistent with past practice and except as set forth on Schedule 2.15, Seller Parties have not: 
(a)    Paid any expense (including any capital expenditure) or incurred any Liability relating to the Business (other than for professional services rendered in connection with the Transactions) in excess of $5,000 or which could reasonably be expected to exceed $5,000, other than in the ordinary course of operating the Business, consistent with past practice; 
(b)    Sold, transferred or contracted to sell or transfer any Purchased Asset, other than in the ordinary course of operating the Business, consistent with past practice;

(c)    Mortgaged, pledged or subjected to any lien, charge or other encumbrance any of the Purchased Assets or the equity of Seller; 
(d)    Except for normal annual increases consistent as to timing and amount with past practice, granted, paid, or promised to pay any bonus or increase in the salary or rate of pay of any Service Provider;
(e)    Except for the Transaction Documents, entered into any contract or transaction other than in the ordinary course of operating the Business, consistent with past practice; 
(f)    Authorized, declared, or paid any dividends or distributions, in cash or in kind, or otherwise transferred any assets to any Seller Party or any third party on account of rights in or to securities of Seller; 
(g)    Issued any shares, membership interests or other securities, profit-sharing interest or voting interest in Seller, or any agreements, warrants or options to purchase or acquire any equity interest in Seller; or 
(h)    Experienced, and Seller Parties do not reasonably expect to experience, any damage, destruction, loss (whether or not covered by insurance) or other material adverse change (including the loss or termination of any patient, customer or supplier) that had or may have, individually or in the aggregate, a material adverse effect on the Purchased Assets, the Business, the Centers or the financial condition of any Seller Party. 
2.16    Taxes.  Each Seller Party has timely filed all tax returns required to be filed by it in the past three (3) years and timely made all payments of taxes, including any interest, penalty or addition thereto, (whether or not reflected on any such tax return) with respect to income taxes, real and personal property taxes, sales taxes, use taxes, employment taxes, excise taxes and all other taxes due and payable on or before the Closing Date.  All such tax returns are complete and accurate in all respects and each properly reflects the transactions consummated and the relevant taxes for the periods covered by such tax returns in accordance with applicable tax law.  No Seller Party has any outstanding tax liability, except for taxes attributable to the portion of the tax year immediately preceding the Closing Date, which tax is not yet due and payable.  No Seller Party has received any notice that any tax deficiency or delinquency has been asserted against or in connection with the Business, the Centers or the Purchased Assets.  There are no pending or threatened audits relating to taxes of any Seller Party, and no Seller Party is currently the beneficiary of any waiver of any statute of limitations in respect of taxes nor of any extension of time within which to file any tax return or to pay any tax assessment or deficiency.  There are no Liens relating to taxes on or threatened against any of the Purchased Assets, the Centers or the Business.  All taxes required by law to have been withheld or collected by Seller have been timely withheld or collected and, to the extent required, have been timely remitted to the proper governmental authority.  No Seller Party has been a party to any tax allocation or sharing agreement or a member of any affiliated group of corporations filing a consolidated federal income tax return.
2.17    Clinical Trials.  During the period Seller has operated the Business, no clinical trials or research procedures or studies involving patients have been performed at the Centers.

2.18    Brokers.  Except for Audientis, LLC, no broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of any Seller Party.
2.19    No Misrepresentations.  The representations and warranties made by Seller Parties in this Agreement are true, complete and correct in all respects as of the Effective Date and the Closing Date.  No representation or warranty by any Seller Party in this Agreement (including the statements made in the Schedules to this Agreement) or any other Transaction Document contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained herein or therein, in light of the circumstances in which they are made, not misleading. 
2.20    Knowledge. Certain of the representations set forth in this Agreement are qualified by the “knowledge” of Seller Parties.  For purposes of this Agreement, Seller Parties’ “knowledge” shall mean the knowledge of each Seller Party and their respective officers, directors, members, stockholders and any of their respective Affiliates, after due and reasonable inquiry, and Seller Parties shall be responsible for all facts which each Seller Party and their respective officers, directors, members, stockholders and all of their respective Affiliates knows or should have known as a result of such inquiry.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer makes the following representations and warranties to Seller Parties:

3.1    Organization.  Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Florida.  
3.2    Authority.  Buyer has all requisite power and authority to execute, deliver and perform its obligations under each of the applicable Transaction Documents and to consummate the Transactions.  The execution and delivery of, and performance under, the Transaction Documents and the consummation of the Transactions have been duly authorized by Buyer, and no other action, approval or consent on the part of Buyer or any third party is necessary to consummate the Transactions or execute, deliver or perform Seller Parties’ obligations set forth in the Transaction Documents.
3.3    Execution and Binding Effect.  This Agreement has been duly and validly executed and delivered by Buyer and constitutes, and upon execution and delivery by Buyer the other Transaction Document to which Buyer is a party will constitute (assuming, in each case, the due and valid authorization, execution and delivery thereof by the other party thereto), legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their respective terms except as such enforceability may be limited by applicable law or equitable principles.

3.4    Brokers. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Buyer.
3.5    No Misrepresentations.  The representations and warranties made by Buyer in this Agreement are true, complete and correct in all respects as of the Effective Date and the Closing Date.  No representation or warranty by Buyer in this Agreement or any other Transaction Document contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained herein or therein, in light of the circumstances in which they are made, not misleading. 
ARTICLE 4
COVENANTS
4.1    Access to Information; No Waiver.  For separate consideration, the receipt and sufficiency of which is acknowledged by Seller Parties, from the Effective Date until Closing, Seller Parties shall (a) afford Buyer and the directors, officers, employees, consultants, financial advisors, counsel, brokers, and accountants (collectively, “Representatives”) of Buyer full and free access to inspect all properties, assets, premises, books and records, Contracts and other documents and data that Buyer or its Representatives deem relevant to their investigation and review of the Business, the Centers and the Purchased Assets; (b) furnish Buyer and its Representatives with such financial, operating and other data and information related to the Business as Buyer or any of its Representatives may reasonably request; and (c) instruct the Representatives of Seller Parties to cooperate with Buyer and its Representatives in their investigation and review of the Business, the Centers and the Purchased Assets. Any investigation pursuant to this Section 4.1 shall be conducted in such a manner as not to unreasonably interfere with the conduct of the Business. No investigation by Buyer or its Representatives or information furnished by Seller Parties or their Representatives to Buyer or its Representatives shall operate as a waiver or otherwise affect any representation, warranty or agreement given or made by Seller Parties in this Agreement or the other Transaction Documents.

4.2    Retained Service Providers.  
(a)    Prior to the Closing Date, Buyer shall have the right to interview any Service Provider at mutually agreeable times and locations for post-Closing employment with, or engagement by, Buyer. To the maximum extent permissible under applicable law, Seller Parties shall provide Buyer with reasonable access to Seller’s personnel and all company records related to such personnel (including those relating to performance reviews, disciplinary actions, and grievances) for the purpose of preparing for and conducting interviews with the designated Service Providers.  Buyer shall deliver to Seller Parties, no later than three (3) days before the Closing Date, a list of the Service Providers that Buyer, in its sole discretion, intends to employ or engage after the Closing Date (the “Retained Worker List”).  Buyer shall negotiate in good faith to offer employment to Lana Woodham and Khatool Wahabzai.  As soon as reasonably practicable after Buyer’s delivery of the Retained Worker List, Seller Parties shall assist Buyer in good faith with Buyer's efforts to enter into letter agreements or written employment agreements (if employment is offered) or independent contractor agreements (if an engagement is offered) in forms satisfactory to Buyer with the Service Providers named on the Retained Worker List.
(b)    As of the Closing Date, Seller Parties shall (i) terminate the employment or engagement, as the case may be, of all Service Providers named on the Retained Worker List, (ii) terminate the active participation of all employees named on the Retained Workers List in all of Seller Parties’ employee benefit plans and (iii) cause each of Seller Parties’ employee benefit plans to comply with all applicable laws (including the applicable provisions of the Employee Retirement Income Security Act of 1974, as amended and the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”)) in connection with the termination of such individuals' service relationship with the applicable Seller Party as of the Closing Date.  Seller Parties shall retain the exclusive obligation under COBRA for qualifying events occurring on or before the Closing Date.
(c)    Except for the PTO Accrual, Seller Parties shall promptly pay the full amount of any accrued but unpaid salary, wage, benefit, bonus, sick leave, insurance, employment tax or similar Liability payable to any Service Provider on account of services performed before the Closing Date.  Seller Parties acknowledge that the purpose and intent of this covenant is to assure that Buyer, except with respect to the PTO Accrual, Buyer will have no Liability whatsoever at any time with respect to any of the Service Providers with respect to periods up to and immediately prior to the Closing Date.

4.3    Patient Records; Pharmaceutical Inventory.  At Closing, and in accordance with applicable state and federal laws and regulations, Seller Parties shall (a) transfer and assign the Patient Records and the Pharmaceutical Inventory to the person(s) or entity designated by Buyer, which person(s) or entity shall be authorized in the State of Florida to own and maintain custody of the Patient Records and the Pharmaceutical Inventory, and (b) take all other action and make all applicable filings in order to comply with applicable law regarding the ownership, custody and transfer of Patient Records and Pharmaceutical Inventory.  Except with the prior written consent of Buyer, Seller Parties shall not disclose, deliver or transmit to Buyer, any Representative or any of their Affiliates, any item constituting “protected health information” under HIPAA, including pursuant to Buyer’s diligence request in connection with the Transactions.  At all times prior to Closing, Seller Parties shall exercise due care in, and shall comply with all applicable state and federal laws and regulations with respect to the retention, maintenance, confidentiality, privacy, security, access and reproduction of the Patient Records, including HIPAA and the other Health Care Laws.  All costs incurred in connection with the transfer of the Patient Records and compliance with all laws applicable thereto shall be divided equally between Buyer and the Seller Parties.
4.4    Conduct Prior to Closing. From the Effective Date until the Closing Date, except as otherwise provided in this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld or delayed), Seller Parties shall conduct the Business in the ordinary course, consistent with past practice, and shall use their reasonable best efforts to maintain and preserve intact the Business, the Centers and Purchased Assets and the relationships with the Service Providers, patients, employers, lenders, suppliers, regulators and others having commercial relationships with the Business.  Without limiting the foregoing, from the Effective Date until the Closing Date, Seller Parties shall, in a manner consistent with past practices: 
(a)    Preserve and maintain each of the Permits;
(b)    Pay the debts, taxes and other obligations of the Business when due; 
(c)    Bill for goods sold and services rendered, and collect accounts receivable on account thereof;
(d)    Maintain the Centers and tangible assets of the Business in the same condition as they were on the Effective Date, subject to reasonable wear and tear; 
(e)    Maintain the Contracts in full force and effect without modification, and timely perform all obligations thereunder;
(f)    Maintain the books and records of the Business;
(g)    Comply with all laws applicable to the Centers, the Business and the ownership or use of the Purchased Assets;

(h)    Not take any action, commit to take any action, or permit any action to be taken that could reasonably be anticipated to (i) cause any of the changes, events or conditions requiring disclosure in Schedule 2.15 as of the Closing Date to occur or (ii) prevent any Seller Party from performing or cause any Seller Party not to perform one or more covenants required hereunder to be performed by such Seller Party; and
(i)    Promptly notify Buyer of any fact, circumstance, event or action the existence, occurrence or taking of which has had, or could reasonably be expected to have, individually or in the aggregate, a material adverse effect on the Purchased Assets or the Business.  
4.5    Public Announcement.  Neither Seller Parties, Buyer nor any of their Affiliates shall make, or permit any agent or Affiliate to make, any public statements, including any press release or public statement with respect to the Transactions this Agreement or the other Transaction Documents without the prior written consent of the other (which consent will not be unreasonably withheld or delayed) except as required by applicable law or the requirements of any applicable stock exchange based on the reasonable advice of counsel.  
4.6    Consents.  Buyer and each of the Seller Parties shall use their reasonable best efforts to give all notices to, and obtain all consents from, all third parties as described in Schedule 1.11(i).
4.7    Name Change.  Promptly (and in no event later than ten days) after the Closing Date, Seller shall execute and file with the Florida Secretary of State documentation in substantially the form of Exhibit J to change Seller’s entity name to a name distinct from the tradename of the Business.  
4.8    Restrictive Covenants.  Each Seller Party acknowledges (i) the covenants set forth in the Noncompetition Agreements are an essential part of this Agreement and that, but for the agreement of each of them to comply with such covenants, Buyer would not have entered into this Agreement, (ii) that the covenants contained in the Noncompetition Agreements are a condition precedent to Buyer’s entering into this Agreement, and (iii) that the restrictions set forth in the Noncompetition Agreements are reasonable and necessary to protect the legitimate business interests of Buyer after Closing and the goodwill being purchased by Buyer.
4.9    Transfer Taxes. All transfer, documentary, sales, use, stamp, registration, and other such taxes and fees (including any penalties and interest) incurred in connection with the Transactions, this Agreement and the other Transaction Documents (including any real property transfer tax and any other similar tax) shall be borne and paid by Seller Parties when due. Seller Parties shall, at their own expense, timely file any tax return or other document required to be filed or reported in connection with the Transaction. Notwithstanding the foregoing, each of the Transaction Documents, including the Note, shall be executed and delivered at the location designated in this Agreement for Closing.

4.10    Post-Closing Insurance Coverage.  On or before the Closing Date, Seller Parties shall, at their sole cost and expense, (a) obtain or maintain, as the case may be, (b) satisfy all premium obligations relating to, and (c) name Buyer as an additional insured on, one or more insurance policies that extend for at least three years after the Closing Date and cover Liabilities arising from or relating to the operation of the Business prior to the Closing Date, including professional liability and general liability consistent with that maintained prior to the Closing Date.
4.11    Payment of Expenses.  Except with respect to the audit of the Audited Financial Statements, which shall be paid by Buyer, Buyer and Seller Parties shall bear their own expenses, including legal and accounting expenses, incurred in connection with the negotiation and implementation Transactions.
4.12    Post-Closing Collections.  Seller Parties shall promptly, and in no event later than five days after receipt, turn over to Buyer any collections received by Seller on account of the Accounts Receivable or of any other goods sold (including Pharmaceutical Inventory) or services rendered in the operation of the Business prior to or after Closing. 
4.13    Updates to Schedules.  Buyer and each Seller Party, as applicable, shall promptly supplement and amend their respective Schedules to this Agreement to reflect those events and circumstances, if any, that occur between the Effective Date and the Closing Date, which, if existing or known on the Effective Date (or occurring on or before the Effective Date) would have been required to be set forth or described in the Schedules or which are necessary to correct any information in the Schedules that has been rendered inaccurate or incomplete by such events or circumstances.  Supplementation or amendment of a Schedule by Buyer or any Seller Party based upon events or circumstances that occur between the Effective Date and Closing will not, solely as a result of such supplementation or amendment, give rise to a claim for Losses (as defined in Section 6.2) by the non-supplementing party.
4.14    No-Shop.  Buyer contemplates the expenditure of substantial sums of time and money in connection with legal, accounting, financial, and due diligence review to be performed in conjunction with the Transactions.  For purposes of inducing Buyer to execute this Agreement, from the Effective Date until the Closing Date, Seller Parties and their Representatives (collectively, “Covered Persons”) shall not directly or indirectly, solicit or entertain offers from, negotiate with, or in any manner encourage, discuss, accept or consider any proposal of any person relating to a purchase, investment, affiliation, joint venture, management arrangement or lease of all or a material part of the Business, the Centers or the Purchased Assets (a “Prohibited Transaction”).  If a Covered Person receives an unsolicited written offer or inquiry relating to a Prohibited Transaction, Seller Parties shall (a) promptly notify Buyer, by telephone and thereafter by written confirmation, of such communication and disclose the terms of such communication, (b) notify the party making the unsolicited offer of the existence of this Agreement (but not the terms of this Agreement or the identity of Buyer) and put such party on notice that further communication shall be treated as tortious interference with this Agreement, and (c) reject the unsolicited offer or inquiry.

4.15    Termination.  This Agreement may be terminated (a) by the mutual written agreement of Buyer and Seller Parties, (b) by Buyer or Seller Parties, if the terminating party is not then in material breach of any provision of this Agreement and there has been a material breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by the other party in this Agreement and such breach, inaccuracy or failure (x) has not been cured by the breaching party within ten days of the non-breaching party’s delivery of written notice of such breach, inaccuracy or failure to perform or (y) would render satisfaction of the conditions to Closing set forth in this Agreement impossible.
4.16    Further Assurances.  Each party to this Agreement, from and after Closing, upon the reasonable request of any other party hereto and without further consideration, shall (a) execute and deliver to the requesting party such documents and further assurances and (b) take such other actions (without cost to the requesting party) in order to carry out the purposes and intentions of this Agreement and the other Transaction Documents.
ARTICLE 5 
CONDITIONS TO CLOSING
5.1    Seller Parties Conditions.  Seller Parties’ obligation to close the Transactions shall be subject to the satisfaction of each of the following conditions on or prior to the Closing Date, unless specifically waived in writing by Seller Parties in whole or in part at or prior to Closing:
(a)    Buyer shall have duly performed, satisfied and complied with all agreements, covenants and conditions required by this Agreement (including Buyer’s obligation to duly execute (to the extent required) and deliver the certificates, agreements and other documents set forth in Section 1.11) and each of the other Transaction Documents to be performed, satisfied or complied with by Buyer prior to or on the Closing Date;
(b)    All of the representations, warranties, covenants and agreements of Buyer contained in this Agreement shall be true, correct and not breached as of the Effective Date and the Closing Date; 
(c)    The provisions of all Exhibits and Schedules attached to this Agreement that were not attached on the Effective Date, or to the extent updated by Buyer after the Effective Date, shall be acceptable to Seller Parties in their reasonable discretion; and 
(d)    Buyer, Seller, Owner, and Steven J. Saul, M.D. (“Dr. Saul”) shall have entered into a Transition Services Agreement in substantially the form attached as Exhibit K (the “Transition Services Agreement”). 

5.2    Buyer Conditions.  Buyer’s obligation to close the Transactions shall be subject to the satisfaction of each of the following conditions on or prior to the Closing Date, unless specifically waived in writing by Buyer, in whole or in part, at or prior to Closing:
(a)    Seller Parties shall have duly performed, satisfied and complied with all agreements, covenants and conditions required by this Agreement (including Seller Parties’ obligation to duly execute (to the extent required) and deliver the certificates, agreements and other documents set forth in Section 1.10) and each of the other Transaction Documents to be performed, satisfied or complied with by Seller Parties prior to or on the Closing Date;
(b)    All of the representations, warranties, covenants and agreements of Seller Parties contained in this Agreement shall be true, correct and not breached as of the Effective Date and the Closing Date;
(c)    Buyer shall have obtained all permits, licenses, approvals, certificates, consents and other authorizations by any governmental authority Buyer deems necessary, in its reasonable discretion, to consummate the Transactions and conduct the non-clinical aspects of the Business after Closing; 
(d)    Buyer, Seller, Owner and Dr. Saul, shall have entered into the Transition Services Agreement; 
(e)    Buyer shall have entered into either employment agreements or independent contractor agreements with the medical director of the Business immediately prior to the Closing Date and each other physician, advanced practice nurse, nurse practitioner, and physician assistant (collectively, the “Clinical Providers”) named in the Retained Worker List, which agreements shall become effective simultaneously with the termination of the Transition Services Agreement; 
(f)    Each individual other than the Clinical Providers named on the Retained Worker List shall have accepted employment with or engagement as an independent contractor by Buyer, which employment or engagement shall become effective as of the Closing Date; 
(g)    An audit of the Audited Financial Statements shall have been completed, and the results of such audit shall be reasonably satisfactory to Buyer;
(h)    There shall not have been any Lien on, or material adverse change in or to the Purchased Assets, the Business or the Centers from the date of the Audited Financial Statements; and  
(i)    The provisions of all Exhibits and Schedules attached to this Agreement that were not attached at the Effective Date or to the extent updated by Seller Parties after the Effective Date shall be acceptable to Buyer in its reasonable discretion.

ARTICLE 6 
INDEMNIFICATION
6.1    Survival.  Except with respect to the Fundamental Representations (as defined  below), which shall survive indefinitely, the representations and warranties in this Agreement shall survive Closing and shall remain in full force and effect for a period of three (3) years.  All covenants and agreements of the parties contained herein shall survive Closing indefinitely until fully performed or satisfied unless otherwise explicitly specified herein. The term “Fundamental Representations” means the representations of Seller Parties set forth in Sections 2.1, 2.2, 2.3, 2.4, 2.5, 2.9, 2.10, 2.15, 2.16, 2.19 and 2.20 and the representations of Buyer set forth in Sections 3.1, 3.2, 3.3, 3.4 and 3.5.  Notwithstanding the foregoing, any claims asserted in good faith, with reasonable specificity (to the extent known at such time), and in writing and in accordance with the procedures set forth in Section 6.8, from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not be barred by the expiration of the relevant representation or warranty and any such claims shall survive until finally resolved.
6.2    Indemnification by Seller Parties.  Subject to the limitations set forth in this Article 6, each of the Seller Parties shall, jointly and severally, indemnify and defend Buyer and its Affiliates and their respective Representatives (collectively, the “Buyer Indemnified Parties”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all liabilities, losses, damages, claims, actions, suits, demands, causes of action, costs, expenses, interest, awards, judgments and penalties of any nature whatsoever (including, without limitation, reasonable legal costs and expenses) (“Losses”), arising or resulting from:
(a)    Any inaccuracy in or breach of any of the representations or warranties of Seller Parties contained in this Agreement, or any other Transaction Document, as of the Effective Date and as of the Closing Date;
(b)    Any breach or non-fulfillment of any covenant, agreement or obligation to be performed by any Seller Party pursuant to this Agreement or any other Transaction Document prior to Closing; 
(c)    Any Excluded Asset, any Retained Liability, or any Loss incurred by Buyer as a result of Seller Parties performance, or any employees or agents thereof, under the Transition Services Agreement; 
(d)    Any Third Party Claim (as defined in Section 6.8(b)) based upon, resulting from or arising from operation of the Business, properties, assets or Liabilities (except as expressly assumed herein) of any Seller Party or any of their Affiliates conducted, existing or arising on or prior to the Closing Date;

(e)    Buyer’s inability to enter into contracts under Buyer’s tax identification number with governmental and commercial payors (collectively, “Payors”) within 120 days after  the Closing Date that (i) collectively comprise at least 90% of Seller’s Collections (as defined below) in the 12-month period ending on the Effective Date, and (ii) provide for financial reimbursement at payment rates comparable to or more favorable than those the applicable Seller Party, as applicable, has been during such period entitled to receive under its contract with such Payor. The term “Seller’s Collections” shall mean all cash collections of Seller Parties (including those assigned to Seller Parties from any Clinical Provider) attributable to professional medical and other healthcare services rendered in the operation of the Business, but excluding all amounts received (i) directly from a patient, (ii) on account of goods sold (including Pharmaceutical Inventory) to a patient, and (iii) from an employer for services rendered to its employee.  A list of the Payors that made payments comprising Seller’s Collections, and the amount of Seller’s Collections attributable to each Payor shall be set forth on Schedule 6.2(e); or 
(f)    Any comparative decrease in the “transition period collections” of the Business, calculated as the positive difference between (i) the revenue collected between the Closing Date and the date the Transition Services Agreement is terminated, and (ii) the revenue collected during the same period in the immediately preceding calendar year.  For purposes of determining the revenue collected in clauses (i) and (ii), only amounts received on account of patients whose treatment was or will be covered in whole or in part by a federal or state government program (i.e., Medicare, Medicaid, TRICARE, etc.) shall be disregarded from the calculation.  If the amount described in clause (i) is greater than that of clause (ii), Seller Parties shall have no indemnification obligation under this Section 6.2(f).
6.3    Indemnification by Buyer.  Subject to the limitations set forth in this Article 6, Buyer shall indemnify and defend Seller Parties and their Affiliates and their respective Representatives (collectively, the “Seller Indemnified Parties”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses arising or resulting from:
(a)    Any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement, or any other Transaction Document, as of the Effective Date and as of the Closing Date;
(b)    The breach of any covenant or agreement by Buyer in this Agreement or in any other Transaction Document or the failure to perform any obligation to be performed by Buyer in this Agreement or in any other Transaction Document; or
(c)    Any Assumed Liability.

6.4    Limitation of Liability.  Except for Losses arising as a result of any inaccuracy in or breach of any Fundamental Representation of Seller Parties (as described in Section 6.1), for which Seller Parties’ liability shall be unlimited, the maximum aggregate liability of Seller Parties to all Buyer Indemnified Parties for all Losses to which such persons are entitled to seek indemnification under Section 6.2(a) shall be an amount equal to the Purchase Price. Except for Losses arising as a result of any inaccuracy in or breach of any Fundamental Representation of Buyer (as described in Section 6.1), for which Buyer’s liability shall be unlimited, the maximum aggregate liability of Buyer to all Seller Indemnified Parties for all Losses to which such persons are entitled to seek indemnification under Section 6.3(a) shall be an amount equal to the Purchase Price.  Nothing contained herein shall limit or restrict any party’s right to maintain or recover any amounts in connection with any action or claim based upon fraud, intentional misstatement, willful misconduct or under any provision of this Agreement or the other Transaction Documents not expressly limited by this Section 6.4.
6.5    Exclusive Remedy. In the absence of fraud, intentional misstatement, or willful misconduct, the indemnification provisions set forth in this Article 6 will be the sole and exclusive remedy and recourse for Losses to which the Buyer Indemnifies Parties and Seller Indemnifies Parties are entitled to seek indemnification under Sections 6.2(a) and 6.3(a).
6.6    Materiality.  Notwithstanding anything in this Agreement to the contrary, for purposes of determining the amount of any Losses that are the subject matter of an indemnification claim, each representation or warranty contained in this Agreement is to be read without regard and without giving effect to any materiality, material adverse effect or similar standard or qualification contained in such representation or warranty (as if such standard or qualification were deleted from such representation and warranty).
6.7    Other Matters.  Any liability for indemnification under this Article 6 shall be determined without duplication of recovery by multiple parties and by reason of the state of facts giving rise to such liability constituting a breach of more than one representation, warranty, covenant or agreement.  The amount of any Losses for which indemnification is entitled under this Article 6 shall be reduced by any amounts recovered by the indemnified party (or any other person or entity that receives payment on account of amounts payable to the indemnified party) under insurance policies or any other source.

6.8    Notice; Indemnification Procedures.
(a)    Any party seeking indemnification under this Article 6 shall give the party from whom indemnification is being sought notice of any matter which such indemnified party has determined to give rise to or to potentially give rise to a right of indemnification under this Agreement as soon as practicable after the party entitled to indemnification becomes aware of any fact, condition or event that may give rise to Losses for which indemnification may be sought under this Article 6; provided, however, that no delay on the part of the indemnified party in notifying the indemnifying party shall relieve the indemnifying party from any obligation hereunder unless (and then solely to the extent) the indemnifying party thereby is materially prejudiced by such delay.  Notwithstanding anything in this Agreement to the contrary, the parties shall only be obligated for those Losses to which the indemnified party has given the indemnifying party written notice thereof prior to the expiration of the applicable survival period, if any, set forth in Section 6.1.
(b)    The liability of an indemnifying party under this Article 6 with respect to Losses arising out of claims of any third party that are subject to indemnification in this Article 6 (“Third Party Claims”) shall be governed by and contingent on the following additional terms and conditions:
(i)    if any third party notifies any indemnified party with respect to a Third Party Claim, then the indemnified party shall give the indemnifying party notice of such Third Party Claim within 20 days of the receipt by the indemnified party of such notice; provided, however, that no delay on the part of the indemnified party in notifying the indemnifying party shall relieve the indemnifying party from any indemnification obligation hereunder unless (and then solely to the extent) the indemnifying party thereby is materially prejudiced by such delay.
(ii)    The indemnifying party will have the right to assume and control the defense of the Third Party Claim in a diligent manner at its expense and with counsel of the indemnifying party’s choice (subject to the reasonable satisfaction of the indemnified party), so long as the indemnifying party gives notice of its intention to do so to the indemnified party within 30 days of the receipt of notice of such Third Party Claim from the indemnified party.
(iii)    If the indemnifying party assumes the defense of a Third Party Claim, (A) the indemnified party may retain separate co-counsel at its sole cost and expense and participate in the defense of the Third Party Claim, and (B) the indemnifying party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the written consent of the indemnified party, unless such judgment or settlement (x) includes an unconditional written release by the claimant or plaintiff of the indemnified party from all liability in respect of such Third Party Claim, and (y) does not impose equitable remedies or material obligations on the indemnified party other than financial obligations for which such indemnified party will be indemnified hereunder.  No Third Party Claim which is being defended in good faith by the indemnifying party in accordance with the terms of this Agreement shall be settled by the indemnified party, nor shall the indemnified party consent to the entry of any judgment with respect thereto, without the written consent of the indemnifying party.

(iv)    In the event that the indemnifying party does not assume the defense of a Third Party Claim, (A) the indemnified party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to, the Third Party Claim in any manner it reasonably and in good faith may deem appropriate (and the indemnified party need not consult with, or obtain any consent from, the indemnifying party in connection therewith), (B) the indemnifying party will reimburse the indemnified party promptly and periodically for the reasonable costs of defending against the Third Party Claim (including reasonable attorneys’ fees and expenses), and (C) the indemnifying party will remain responsible for any Losses the indemnified party may suffer arising out of or resulting from the Third Party Claim to the fullest extent provided under this Article 6.
(v)    Each of the indemnifying party and the indemnified party shall cooperate with the other in the defense of a Third Party Claim and make available all witnesses, pertinent records, materials and information in such party’s possession or under such party’s control relating to such Third Party Claim as is reasonably requested by the other party.
6.9    Buyer Remedy.  Should any Buyer Indemnified Party be entitled to (a) indemnification, (b) direct reimbursement for payment of Retained Liabilities, or (c) any other obligation hereunder, then, in addition to any other legal or equitable right or remedy which such Buyer Indemnified Party may have, Buyer may offset the amount due Seller under Note A and Note B to the extent necessary to satisfy any amount described in clauses (a), (b) and (c).  The ordering rules applicable to the offset of Note A and Note B for the Purchase Price Adjustment set forth in the Section 1.6, shall apply to any offsets pursuant to this Section 6.9.
6.10    Tax Treatment of Indemnification.  All indemnification obligations satisfied under this Agreement, whether in cash or by offset, shall be treated by the parties as an adjustment to the purchase price for federal and state tax purposes, unless otherwise required by law.
ARTICLE 7
MISCELLANEOUS
7.1    Waiver.  No failure to exercise, and no delay in exercising, any right, remedy, power or privilege under this Agreement by any party shall operate as a waiver of such right, remedy, power or privilege, nor shall any single or partial exercise of any right, remedy, power or privilege under this Agreement preclude any other or further exercise of such right, remedy, power or privilege.  Any waiver under this Agreement must be in writing, signed by the waiving party.

7.2    Severability. If any term or provision of this Agreement or any other Transaction Document is determined to be invalid, illegal or unenforceable by any court, agency or tribunal of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or any other Transaction Document or invalidate or render unenforceable such term or provision in any other jurisdiction.  Unless expressly provided otherwise in this Agreement or any of the other Transaction Documents, the parties to the applicable Transaction Document shall negotiate in good faith to modify such Transaction Document so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the Transactions be consummated as originally contemplated to the greatest extent possible.
7.3    Amendment; Assignment. This Agreement may not be amended except by an instrument in writing signed by Buyer and Seller Parties.  This Agreement and all provisions hereof shall be binding upon and inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations herein shall be assigned by any party hereto without the prior written consent of the other party; provided, however, that Buyer may assign this Agreement or delegate the performance of its obligations to a subsidiary or Affiliate of Buyer or without the consent of Seller Parties so long as such assignment or delegation, in no way limits, diminishes or alters the nature or extent of Seller Parties’ rights, interests, or remedies herein.  Notwithstanding anything in this Agreement to the contrary, expressed or implied, this Agreement is not intended to confer any rights or remedies on any person other than the parties and their respective successors and permitted assigns.
7.4    Entire Agreement.  Except as otherwise provided in this Agreement, this Agreement and the other Transaction Documents set forth the entire understanding of the parties with respect to the subject matter hereof and thereof and this Agreement and the other Transaction Documents supersedes all prior agreements concerning the subject matter hereof and thereof.  No party is relying upon any statement or representation of any other party except as expressly set forth herein and each party is relying on its own judgment in connection with the execution of this Agreement and the other Transaction Documents and the consummation of the Transactions.
7.5    Notices. All notices, claims, certificates, requests, demands and other communications pursuant to this Agreement or any other Transaction Document shall be in writing and shall be deemed to have been duly given to Buyer or to all Seller Parties, as the case may be, (a) when delivered, if delivered by hand; (b) one business day after transmitted, if transmitted by a nationally-recognized overnight courier service, (c) when sent by facsimile, if sent by facsimile transmission which is confirmed; or (d) three business days after mailing, if mailed by registered or certified mail, postage prepaid, return receipt requested, and in each case to the parties at the following addresses (or at such other address for such party as shall be specified in a notice given in accordance with this Section 7.5):
    

If to Seller Parties:    Sharon E. Stone
402 Palmetto Court
Lynn Haven, Florida  32444

with copy to, which shall not constitute notice to Seller Parties:

Pope & Barloga, P.A.
P.O. Box 1609
Panama City, FL  32402 
Attention: H. Cranston Pope                  

If to Buyer:        ACSH Urgent Care of Florida, LLC 
5429 LBJ Freeway, Suite 850
Dallas, Texas  75240
Attention:  Matthew D. Thompson, CFO
                
with copy to, which shall not constitute notice to Buyer:

Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C.
420 20th Street North, Suite 1400
Birmingham, Alabama 35203
Attention:  Adam S. Winger

7.6    Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida without regard to its provisions concerning conflicts or choice of law.
7.7    Waiver of Jury Trial. THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING FROM OR RELATING TO THE TRANSACTIONS, THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION DOCUMENTS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THE TRANSACTIONS, THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION DOCUMENTS SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

7.8    Costs of Enforcement.  If Buyer or any Seller Party files suit or other action to enforce the terms of this Agreement or to obtain performance as required in this Agreement, then the prevailing party in any such suit or action will be entitled to recover all reasonable costs, including reasonable attorneys’ fees and costs, from the non-prevailing party as part of any judgment in such suit or action.  The term “prevailing party” will mean the party in whose favor final judgment after appeal (if any) is rendered with respect to the claims asserted in the complaint.
7.9    Schedules and Exhibits; Usage.  All Schedules and Exhibits attached hereto are hereby incorporated in this Agreement as if set forth in full herein and, unless otherwise defined therein, all terms used in any Schedule or Exhibit shall have the meanings assigned to such terms in this Agreement.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  Unless otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time may be amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.  
7.10    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including .pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and shall be valid and effective for all purposes.
7.11    No Requirement To Refer.  Notwithstanding anything contained herein, nothing in this Agreement shall be construed to induce, encourage, solicit or reimburse the referral of any patients or business, including any patients or business funded in whole or part by federal or state government programs (i.e., Medicare, Medicaid, TRICARE, etc.) or to limit the freedom of any patient of Seller, Buyer or any of their Affiliates to choose the hospital, healthcare facility or physician from whom such patient will receive medical services.  The parties acknowledge that there is no requirement under this Agreement or any other agreement between the parties that Seller or any of their Affiliates refer patients or business to Buyer, any medical practice, walk-in clinic or urgent care clinic managed by Buyer or its Affiliates. No payment made under this Agreement will be in return for the referral of patients or business, including those paid in whole or part by federal or state government programs.  The parties acknowledge that none of the benefits granted Seller Parties or any of their Affiliates hereunder are conditioned on any requirement that any such person make referrals to, be in a position to make or influence referrals to, or otherwise generate business for Buyer, any medical practice, walk-in clinic or urgent care clinic managed by Buyer or any of their Affiliates.
7.12    Fair Value.  Buyer and Seller Parties acknowledge that the terms of this Agreement have been negotiated at arms’ length and that the Purchase Price constitutes fair value for the Purchased Assets.

[Signature page follows]

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized representatives of Buyer and each of the Seller Parties as of the Effective Date.

BUYER:    

ACSH URGENT CARE OF FLORIDA, LLC,
a Florida limited liability company

By: /s/ Matthew D. Thompson          
Name:  Matthew D. Thompson
Title:    Chief Financial Officer

OWNER:

Sign: /s/ Sharon E. Stone                  
Print:  Sharon E. Stone
 

SELLER:
    
BAY WALK-IN CLINIC, INC.,
a Florida corporation

By: /s/ Sharon E. Stone                  
Name:  Sharon E. Stone
Title:    President

PROMISSORY NOTE A

$200,000                                        [CLOSING DATE]

FOR VALUE RECEIVED, ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Borrower”), hereby promises to pay to BAY WALK-IN CLINIC, INC., a Florida corporation (“Lender”) at [LENDER ADDRESS] or at such other place as may be designated in writing by Lender, from time to time (the “Lender Address”) the principal sum of $200,000, together with interest on the unpaid balance thereof at the rate, on the terms and subject to the conditions set forth herein.
This Promissory Note A (this “Note”) is delivered by Borrower pursuant to and in accordance with the terms and conditions of that certain Asset Purchase Agreement dated as of June 12, 2014, by and among Borrower, Sharon E. Stone, an individual resident of the State of Florida,  (“Owner”), and Lender (the “Purchase Agreement”).  Capitalized terms used and not otherwise defined in this Note shall have the meanings ascribed to such term in the Purchase Agreement.
In lieu of Lender receiving Note payments and distributing such payments to Owner, Lender has requested that all Note payments be made directly to Owner.
1.Interest Rate.  The unpaid principal balance of the Note shall bear simple interest at a fixed interest rate of five percent (5%) per annum (the “Interest Rate”).  In no event shall the amount of interest due or payable under this Note exceed the maximum rate of interest allowed by applicable law, as amended from time to time.  If any payment of interest or in the nature of interest would, under applicable law, cause the foregoing interest rate limitation to be exceeded, then the excess payment shall be credited as a payment of principal, unless Borrower notifies Lender that Borrower desires to have the excess sum returned to Borrower. 
2.Payment of Principal and Interest.  If not sooner prepaid pursuant to the terms of this Note, the principal and accrued interest shall be paid in two installments.  The first payment in the amount of $110,000 shall be due and payable one year from the date of this Note and the final payment of $105,000 shall be due and payable two years from the date of this Note (the "Maturity Date").
3.Prepayment.  The principal amount of this Note may be prepaid in full or in part at any time without penalty.  Any such prepayment shall be first applied to accrued but unpaid interest, and the balance, if any, to principal.  
4.Method of Payment.  Payments made pursuant to this Note shall be made in cash or immediately available funds to Owner on behalf of Lender at the Lender Address, or to such other address as Lender may designate to Borrower in writing from time to time or by electronic or wire transfer to an account designated by Lender in writing.  By Lender’s acceptance of this Note, Lender acknowledges that Borrower has been directed by Lender to make all payments under this Note directly to Owner on behalf of Lender, and that upon satisfaction of all payments pursuant to this Note, Borrower's obligations to Lender under this Note shall be deemed satisfied in full.  Upon such satisfaction, Lender shall deliver this Note to Buyer with an indication on the face of the Note that the Note has been paid in full.

5.Adjustment of Principal. Pursuant to Section 1.6 of the Purchase Agreement, the principal amount of this Note shall be increased or decreased, as the case may be, by the Purchase Price Adjustment in accordance with the process set forth in the Purchase Agreement.  Such principal adjustment shall be effective for all purposes as of (a) the date the Post-Closing Statement is delivered to Seller Parties if no Objection Statement is timely delivered by Seller Parties, and (b) the date all disputes concerning the Post-Closing Calculation are finally resolved if an Objection Statement is timely delivered in accordance with Section 1.6 of the Purchase Agreement.
6.Offset by Borrower.  Borrower may offset amounts owed to Borrower by any Seller Party under any of the Transaction Documents against any amount owed to Lender by Borrower under this Note, whether or not such amounts are currently due under this Note. 
7.Applicable Law.  This Note shall be governed by, and construed and enforced under, the laws of the State of Florida (without regard to the principles thereof governing conflicts of laws), and any action or proceeding arising hereunder, and each Seller Party and Borrower submits (and waives all rights to object) to non-exclusive personal jurisdiction in Bay County, Florida, for the enforcement of any and all obligations hereunder.
8.Execution and Delivery.  Notwithstanding anything to the contrary set forth herein, this Note shall be executed and delivered at the location designated for Closing in the Purchase Agreement.
9.Headings.  The headings of the sections, subsections, paragraphs and subparagraphs of this Note are used only for convenience of reference and shall not be considered in construing the contents of this Note.
10.Severability.  No determination by any court, agency or other governing body that any provision of this Note is invalid or unenforceable in any instance shall affect the validity or enforceability of (a) any other such provision or (b) such provision in any circumstance not controlled by such determination.  Each such provision shall be valid and enforceable to the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.
11.Waiver of Jury Trial.  EACH OF BORROWER AND EACH SELLER PARTY BY ITS ACCEPTANCE HEREOF, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH BORROWER OR HOLDER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS NOTE.  IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE.  THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY BORROWER UPON CONSULTATION WITH COUNSEL OF BORROWER’S CHOICE.  BORROWER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. 
12.Modification.  This Note may be modified, amended, discharged or waived only by an agreement in writing signed by Borrower and Lender.

13.Not a Negotiable Instrument.  This Note shall not be deemed to be a negotiable instrument, and the rights and obligations under this Note may not be assigned or delegated by Borrower or any Seller Party without the other party’s prior written consent.
14.Relationship.  Nothing contained in this Note shall be deemed or construed to create a partnership, tenancy-in-common, joint tenancy, joint venture or co-ownership by or between Borrower and any Seller Party. 

[Signature Page Follows]

IN WITNESS WHEREOF, the undersigned has executed this Note in favor of Lender as of [CLOSING DATE].

                            

BORROWER:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            

       EXHIBIT B

PROMISSORY NOTE B

$200,000                                        [CLOSING DATE]

FOR VALUE RECEIVED, ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Borrower”), hereby promises to pay to BAY WALK-IN CLINIC, INC., a Florida corporation (“Lender”) at [LENDER ADDRESS] or at such other place as may be designated in writing by Lender, from time to time (the “Lender Address”) the principal sum of $200,000 on the terms and subject to the conditions set forth herein.
This Promissory Note B (this “Note”) is delivered by Borrower pursuant to and in accordance with the terms and conditions of that certain Asset Purchase Agreement dated as of June 12, 2014, by and among Borrower, Sharon E. Stone, an individual resident of the State of Florida,  (“Owner”), and Lender (the “Purchase Agreement”).  Capitalized terms used and not otherwise defined in this Note shall have the meanings ascribed to such term in the Purchase Agreement.
In lieu of Lender receiving Note payments and distributing such payments to Owner, Lender has requested that all Note payments be made directly to Owner.
1.Interest Rate.  The unpaid principal balance of the Note shall bear simple interest at a fixed interest rate of five percent (5%) per annum (the “Interest Rate”).  In no event shall the amount of interest due or payable under this Note exceed the maximum rate of interest allowed by applicable law, as amended from time to time.  If any payment of interest or in the nature of interest would, under applicable law, cause the foregoing interest rate limitation to be exceeded, then the excess payment shall be credited as a payment of principal, unless Borrower notifies Lender that Borrower desires to have the excess sum returned to Borrower. 
2.Payment.  The outstanding balance of principal and interest of the Note shall be paid in 24 equal, monthly installments of $              (each, a “Payment”)., with the first Payment becoming due and payable on the final day of the first full calendar month immediately following the date of this Note, and successive installments on the final day of each of the 23 successive calendar months thereafter.  
3.Prepayment.  The principal amount of this Note may be prepaid in full or in part at any time without penalty.  Upon any unscheduled reduction of principal, and at the request of the Borrower, (i) Lender shall substitute a new amortization schedule for the remainder of the applicable 24-month term, and (ii) this Note shall be surrendered to the Borrower in exchange for a substitute note, which shall set forth the revised principal amount and amortization table as of the date of surrender but shall otherwise be identical to this Note.

       EXHIBIT B

4.Method of Payment.  Payments made pursuant to this Note shall be made in cash or immediately available funds to Owner on behalf of Lender, and delivered to the Lender Address, or to such other address as Lender may designate to Borrower in writing from time to time or by electronic or wire transfer to an account designated by Lender in writing.  By Lender’s acceptance of this Note, Lender acknowledges that Borrower has been directed by Lender to make all payments under this Note directly to Owner on behalf of Lender, and that upon satisfaction of all payments pursuant to this Note to Owner, Borrower's obligations to Lender under this Note shall be deemed satisfied in full.  Upon such satisfaction, Lender shall deliver this Note to Buyer with an indication on the face of the Note that the Note has been paid in full.
5.Adjustment of Principal. Pursuant to Section 1.6 of the Purchase Agreement, the principal amount of this Note shall be increased or decreased, as the case may be, by the Purchase Price Adjustment in accordance with the process set forth in the Purchase Agreement.  Such principal adjustment shall be effective for all purposes as of (a) the date the Post-Closing Statement is delivered to Seller Parties if no Objection Statement is timely delivered by Seller Parties, and (b) the date all disputes concerning the Post-Closing Calculation are finally resolved if an Objection Statement is timely delivered in accordance with Section 1.6 of the Purchase Agreement.
6.Offset by Borrower.  Borrower may offset amounts owed to Borrower by any Seller Party under any of the Transaction Documents against any amount owed to Lender by Borrower under this Note, whether or not such amounts are currently due under this Note; provided that any offset to this Note shall be made only after the outstanding balance of Promissory Note A, dated as of the date hereof and delivered to Lender in connection with the Closing, is reduced to zero.
7.Applicable Law.  This Note shall be governed by, and construed and enforced under, the laws of the State of Florida (without regard to the principles thereof governing conflicts of laws), and any action or proceeding arising hereunder, and each Seller Party and Borrower submits (and waives all rights to object) to non-exclusive personal jurisdiction in Bay County, Florida, for the enforcement of any and all obligations hereunder.
8.Execution and Delivery.  Notwithstanding anything to the contrary set forth herein, this Note shall be executed and delivered at the location designated for Closing in the Purchase Agreement.
9.Headings.  The headings of the sections, subsections, paragraphs and subparagraphs of this Note are used only for convenience of reference and shall not be considered in construing the contents of this Note.
10.Severability.  No determination by any court, agency or other governing body that any provision of this Note is invalid or unenforceable in any instance shall affect the validity or enforceability of (a) any other such provision or (b) such provision in any circumstance not controlled by such determination.  Each such provision shall be valid and enforceable to the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.

       EXHIBIT B

11.Waiver of Jury Trial.  EACH OF BORROWER AND EACH SELLER PARTY BY ITS ACCEPTANCE HEREOF, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH BORROWER OR HOLDER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS NOTE.  IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE.  THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY BORROWER UPON CONSULTATION WITH COUNSEL OF BORROWER’S CHOICE.  BORROWER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. 
12.Modification.  This Note may be modified, amended, discharged or waived only by an agreement in writing signed by Borrower and Lender.
13.Not a Negotiable Instrument.  This Note shall not be deemed to be a negotiable instrument, and the rights and obligations under this Note may not be assigned or delegated by Borrower or any Seller Party without the other party’s prior written consent.
14.Relationship.  Nothing contained in this Note shall be deemed or construed to create a partnership, tenancy-in-common, joint tenancy, joint venture or co-ownership by or between Borrower and any Seller Party. 

[Signature Page Follows]

       EXHIBIT B

IN WITNESS WHEREOF, the undersigned has executed this Note in favor of Lender as of [CLOSING DATE].

                            

BORROWER:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            

       EXHIBIT C

PROMISSORY NOTE C

$300,000                                        [CLOSING DATE]

FOR VALUE RECEIVED, ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Borrower”), hereby promises to pay to BAY WALK-IN CLINIC, INC., a Florida corporation (“Lender”) at 408 Palmetto Court, Lynn Haven, FL 32444 or at such other place as may be designated in writing by Lender, from time to time (the “Lender Address”) the principal sum of $300,000 on the terms and subject to the conditions set forth herein.
This Promissory Note (this “Note”) is delivered by Borrower pursuant to and in accordance with the terms and conditions of that certain Asset Purchase Agreement dated as of June 12, 2014, by and among Borrower, Sharon E. Stone, an individual resident of the State of Florida,  (“Owner”), and Lender (the “Purchase Agreement”).  Capitalized terms used and not otherwise defined in this Note shall have the meanings ascribed to such term in the Purchase Agreement.
In lieu of Lender receiving Note payments and distributing such payments to Owner, Lender has requested that all Note payments be made directly to Owner.
1.Interest and Payment.  This Note shall be non-interest bearing, and shall be repaid in 30 equal monthly installments of $10,000 (each, a “Payment”).  The first Payment shall be due and payable on the final day of the first full calendar month following the date of this Note, and each successive installment shall be due and payable on the final day of each calendar month for 29 successive months thereafter.  The principal amount of this Note may be prepaid in full or in part at any time prior to the Maturity Date without penalty.  
2.Method of Payment.  Payments made pursuant to this Note shall be made in cash or immediately available funds to Owner on behalf of Lender, and delivered to the Lender Address, or to such other address as Lender may designate to Borrower in writing from time to time or by electronic or wire transfer to an account designated by Lender in writing.  By Lender’s acceptance of this Note, Lender acknowledges that Borrower has been directed by Lender to make all payments under this Note directly to Owner on behalf of Lender, and that upon satisfaction of all payments pursuant to this Note to Owner, Borrower's obligations to Lender under this Note shall be deemed satisfied in full.  Upon such satisfaction, Lender shall deliver this Note to Buyer with an indication on the face of the Note that the Note has been paid in full.
3.Offset by Borrower.  Borrower may offset amounts owed to Borrower by any Seller Party under any of the Transaction Documents against any amount owed to Lender by Borrower under this Note, whether or not such amounts are currently due under this Note; provided that any offset to this Note shall be made only after the outstanding balances of first Promissory Note A and then Promissory Note B, dated as of the date hereof and delivered to Lender in connection with the Closing, are reduced to zero. 
4.Applicable Law.  This Note shall be governed by, and construed and enforced under, the laws of the State of Florida (without regard to the principles thereof governing conflicts of laws), and any action or proceeding arising hereunder, and each Seller Party and Borrower submits (and waives all rights to object) to non-exclusive personal jurisdiction in Bay County, Florida, for the enforcement of any and all obligations hereunder.

       EXHIBIT C

5.Execution and Delivery.  Notwithstanding anything to the contrary set forth herein, this Note shall be executed and delivered at the location designated for Closing in the Purchase Agreement.
6.Headings.  The headings of the sections, subsections, paragraphs and subparagraphs of this Note are used only for convenience of reference and shall not be considered in construing the contents of this Note.
7.Severability.  No determination by any court, agency or other governing body that any provision of this Note is invalid or unenforceable in any instance shall affect the validity or enforceability of (a) any other such provision or (b) such provision in any circumstance not controlled by such determination.  Each such provision shall be valid and enforceable to the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.
8.Waiver of Jury Trial.  EACH OF BORROWER AND EACH SELLER PARTY BY ITS ACCEPTANCE HEREOF, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH BORROWER OR HOLDER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS NOTE.  IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE.  THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY BORROWER UPON CONSULTATION WITH COUNSEL OF BORROWER’S CHOICE.  BORROWER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. 
9.Modification.  This Note may be modified, amended, discharged or waived only by an agreement in writing signed by Borrower and Lender.
10.Not a Negotiable Instrument.  This Note shall not be deemed to be a negotiable instrument, and the rights and obligations under this Note may not be assigned or delegated by Borrower or any Seller Party without the other party’s prior written consent.
11.Relationship.  Nothing contained in this Note shall be deemed or construed to create a partnership, tenancy-in-common, joint tenancy, joint venture or co-ownership by or between Borrower and any Seller Party. 

[Signature Page Follows]

       EXHIBIT C

IN WITNESS WHEREOF, the undersigned has executed this Note in favor of Lender as of [CLOSING DATE].

                            

BORROWER:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            

       EXHIBIT D

LEASE AGREEMENT

THIS LEASE AGREEMENT made and entered into this     day of June, 2014, ("Lease Date") by and between the Parties named in Section 1.0 which Parties in consideration of their mutual covenants herein set forth do hereby agree as herein specified. 

		
	SECTION 1.
	PARTIES.  The Parties under this Lease are:

5.1Landlord:
Bay Walk-In Clinic, Inc., a Florida corporation (or its successors in interest)
402 Palmetto Court
Lynn Haven, Florida  32444
                            
               
1.2Tenant:
ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

		
	SECTION 2.
	PREMISES.

2.1The Landlord hereby leases to the Tenant and the Tenant hereby rents from the Landlord the two premises located at 2306 Highway 77, Panama City, Florida 32405 (the “Highway 77 Center”) and 8811 Front Beach Road, Panama City Beach, Florida 32407 (the “Front Beach Center” and together with the Highway 77 Center, collectively the “Premises”), which are more specifically described in Exhibit "A" which is attached hereto and made a part hereof for all purposes.
2.2As to any existing structure included therein, the Premises leased hereby extend to the interior faces of all walls.
2.3For purposes of this Agreement, the term “Premises” shall not include the billboard standing at the Highway 77 location and all rights in and to such billboard, the terms of rental thereof and proceeds from the rental thereof shall be reserved to the Landlord.
2.4Except as expressly agreed to in writing by the Landlord, the Tenant agrees to accept the Premises "As Is" as of the Commencement Date, and Tenant agrees and represents that it has inspected the Premises and found them suitable for the operation of its Business as described in paragraph 5.1, below, except for any modifications or improvements which the Tenant shall make at its own sole cost and expense.  Landlord shall not have any responsibility to make any improvements or modifications to the Premises whatsoever except as may be specifically agreed to in writing between the Landlord and Tenant.
SECTION 3.RENT.
3.1Annual Rent.  Tenant agrees to pay the Landlord the Annual Rent during the Initial Term (defined below) as follows:  the sum of One Hundred Twenty Thousand and no/100ths Dollars ($120,000.00), which amount shall be payable in equal monthly installments of Ten Thousand and No/100ths Dollars ($10,000.00) each, with the first payment being due on the Commencement Date (defined below), and each subsequent payment being due on the 1st day of each month thereafter during the Initial Term.  If the Commencement Date falls on a date other than the first day of any calendar month, rent for that month shall be pro-rated accordingly.  

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3.2Increase in Annual Rent.  Annual Rent after the first 36 months shall be adjusted and shall apply for the next 36 months as follows: the Annual Rent shall be adjusted by multiplying the Annual Rent for the immediately preceding Lease Year by the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor, Bureau of Labor Statistics (or comparable index replacing the same) from the figure as it exists at the start of the lease to the end of the 36th month.  The total resulting from the aforesaid computation shall be added to the Annual Rent for the preceding Lease Year and the resulting amount shall be the Annual Rent for the following 36 months and 1/12th thereof shall be the Monthly Installments.  This adjustment shall be repeated at that end of the 72nd month.
3.3State Rent Sales and Use Taxes. In addition to all payments of Annual Rent and all other charges, during the Initial Term and any Renewal Term of this Lease, Tenant shall pay any and all taxes assessed by the State of Florida that are applicable to rentals or charges specified in this Lease.  In the event the appropriate taxing authority requires that any such tax and/or assessment be collected by Landlord for or on behalf of such taxing authority, said tax payments shall be paid to Landlord with and when the applicable tax and/or assessment is due.  Said tax shall be at the legally prevailing rate.
3.4Property Taxes.  In addition to payment of Annual Rent and all other charges, during the Initial Term and any Renewal Term of this Lease, Tenant shall pay its proportionate share of the ad valorem taxes levied against the commercial center property owned by the Landlord of which the Premises comprise a part in an amount equal to a percentage calculated by comparing Tenant’s gross square footage to the total square footage of Landlord’s commercial center property.
SECTION 4.LEASE TERM AND COMMENCEMENT DATE.
4.1Term.  The term of this Lease (the "Initial Term") shall commence on June     , 2014, which shall be the "Commencement Date" of the Lease, and the initial Term shall end at 12:00 midnight, EST, on              , 2024.
SECTION 5.TENANT'S USE, BUSINESS NAME & OPERATIONAL STANDARD.
5.1Tenant agrees to use the Premises solely for the operation of a Business particularly described as follows: PROFESSIONAL OR NON-PROFESSIONAL HEALTHCARE SERVICES.  Tenant shall not sell merchandise or provide services that are not normally and customarily sold or provided by businesses in Tenant's type of Business.
5.2Tenant further agrees to conduct its Business upon the Premises pursuant to the following standards: 
A.To keep the Premises adequately illuminated. To keep the Premises continuously open for Business during such reasonable and normal hours as may be set by the Tenant.
B.To operate its Business pursuant to the reasonable standards of its Business category, maintaining sufficient personnel to service its trade.   
C.Omitted.
D.Not to display any merchandise, solicit business or distribute advertising material, nor in any manner use any part of the Premises for purposes other than for their intended use and not to obstruct any part thereof.   
E.Not to display any banners, pennants, searchlights, window signs, balloons, or similar temporary advertising media on the exterior or outdoor areas of the Premises without the Landlord's prior consent, which shall not be unreasonably withheld.   
F.Not to commit waste in or upon the Premises.   

       EXHIBIT D

G.Not to use the Premises, or permit the same to be used in any manner: that is in violation of law; constitutes a nuisance; for lodging purposes; that would constitute an extra‐hazardous use or violate any insurance policy of Landlord.  Landlord represents and warrants that Tenant's use of the Premises for the Business will not violate this paragraph 5.2(G).
H.To keep all garbage and refuse inside the building located on the Premises in reasonable containers, and to place the same outside the building in the containers and on the Premises or in such other area as designated by the Landlord for collection.  Tenant agrees not to burn or permit any burning of said garbage and refuse on the Premises.   
I.To take no action that would violate Landlord's contracts, if any, affecting the Premises, or cause any work stoppage, picketing or cause any manner or interference with Landlord.  Landlord represents and warrants that Tenant's use of the Premises for the Business will not violate Landlord's contracts as referenced herein.
J.To abide by and observe all reasonable, non-discriminatory rules and regulations established from time to time by Landlord and such reasonable, non-discriminatory rules and regulations as may be required by the Landlord's insurance carrier.
K.Not to keep on or in the Premises any laboratory animals, radioactive or other hazardous materials of any kind; provided, however, if Tenant's Business requires Tenant to bring onto the Premises substances which are included in the definition of “hazardous material,” but which are permitted by law to be stored for use and used in connection with Tenant’s Business, Tenant may bring reasonable amounts of such substances onto the Premises for said lawful use, but Tenant shall be solely responsible for the proper storage, use and off-site disposal of such substances.
L.Tenant agrees that it will not sell, distribute, display or offer for sale any item or service which, in Landlord's good faith judgment, is inconsistent with the quality of operation of the Premises and adjoining properties of Landlord or which may tend to injure or detract from the moral character or image of the Premises or those properties within such community, except that Tenant shall be allowed to sell, display and offer for sale items that are normally and customarily sold or provided by stores or businesses in Tenant's type of Business so long as such items are sold, displayed or offered in compliance with all federal, State and local laws, rules and regulations.
SECTION 6.UTILITIES.
6.1Tenant shall pay for all regular, monthly charges for water and sewer and ordinary garbage service to the Premises.  Tenant shall pay for natural gas, electric services and all other utilities supplied to the Premises, including without limitation any costs associated with medical waste or other specialized garbage or waste disposal.  
6.2In no event shall Landlord be liable for the quality, quantity, failure or interruption of any utility services, including water, sewer and garbage, to the Premises.  Notwithstanding the foregoing, in the event of a failure or interruption of utility services which prevents Tenant from reasonably operating its business from the Premises as a result of any willful act or negligence of Landlord or its agents, employees or contractors, and such failure or interruption continues for forty-eight (48) consecutive hours or more, then Annual Rent and other charges payable by Tenant pursuant to the terms of this Lease shall equitably abate after the expiration of such forty-eight (48) hour period and for each day thereafter during which Tenant is unable to reasonably conduct its business in the Premises due to such failure or interruption.
SECTION 7.TENANT'S WORK, FIXTURES & SIGNS.
7.1Any work (including alterations and other improvements) undertaken in the Premises by Tenant shall consist of new or like-new material installed in a workmanlike manner and in 

       EXHIBIT D

compliance with all applicable laws and regulations and shall be performed only by contractors or subcontractors who have complied with the Tenant insurance standards specified in Section 9 hereof.  Said work shall be at Tenant's sole risk and expense and Tenant shall promptly pay all laborers, contractors and materialmen performing such work and furnishing material therefore for Tenant.  Tenant agrees to indemnify and save Landlord harmless of and from all expenses, liens, claims or damages to either persons or property, including, without limitation, the Premises, stemming in any manner from such work.  If any lien be filed by virtue of Tenant's work, Tenant shall cause the same to be discharged of record by payment, bond, order of court, or otherwise as required by law within thirty (30) days after notice by Landlord.  If Tenant fails to have any such lien discharged within such thirty (30) day period, Landlord may, at Landlord's option, and upon ten (10) days' notice to Tenant, cause such discharge and Tenant shall reimburse Landlord all its costs and expenses expended thereof upon billing for same.  All such work including, without limitation, floor covering, lighting, ventilating, heating and air conditioning equipment, wall coverings and store fronts (but exclusive of Tenant’s personal property, equipment and trade fixtures) shall, upon termination of this Lease, attach to the freehold and become and remain Landlord's property. Tenant agrees not to undertake any Tenant work without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, except that Tenant shall be permitted to make nonstructural improvements or renovations costing less than $50,000.00 during any Lease Year without Landlord’s consent.  Tenant shall not commence any improvement to the Premises without having previously submitted to the Landlord the plans and specifications and the name of the general contractor to perform the work.  The Landlord shall have a period of ten (10) days after such submission to approve or disapprove the plans and specifications and the contractor, and the Tenant shall be notified of such approval or disapproval.  In the event Landlord shall have failed to act within the ten (10) day period, then the plans and specifications shall be deemed to have been approved.
7.2All trade fixtures and equipment installed by Tenant in the Premises shall be new or completely reconditioned and shall along with Tenant's merchandise remain the personal property of Tenant.  Tenant may, at the expiration of the Term, remove all its personal property that is removable without injury to or defacement of the Premises, provided all rent and any other charges due hereunder have been paid in full and Tenant is not otherwise in default under this Lease, and further provided that any damage to the Premises resulting from such removal shall be simultaneously repaired at Tenant's expense.  Tenant agrees that all Tenant's personal property located or kept in or upon the Premises shall be at the Tenant's sole risk and/or those claiming under Tenant.  Landlord shall not be responsible to Tenant for any loss that may be occasioned by the acts or omissions of persons occupying any space adjacent to or adjoining Tenant's Premises, or liable to Tenant for any loss resulting to Tenant, or any of Tenant's property, caused in any manner whatsoever.  
7.3Tenant agrees that it will not use, display or erect any signs without first obtaining Landlord's prior written approval, which approval will not be unreasonably withheld, conditioned or delayed.  Tenant agrees to install all of said signs in conformance with applicable government regulations and to keep the same in a good state of repair and save Landlord harmless from any damages stemming from the installation, maintenance, existence or removal of the same and shall repair any damage which may have been caused by said installation, existence, maintenance or removal.  Upon vacating the Premises, Tenant agrees to remove all signs and simultaneously repair any damage to the Premises caused by such removal.  

       EXHIBIT D

7.4NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL NOT BE LIABLE FOR PAYMENT FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO TENANT, OR TO ANYONE HOLDING ANY OF THE LEASED PREMISES THROUGH OR UNDER THE TENANT OR OTHERWISE, AND THAT NO MECHANIC'S, CONSTRUCTION OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN AND TO THE LEASED PREMISES OR ANY PART THEREOF.
SECTION 8.MAINTENANCE OF PREMISES.
8.1Landlord agrees to keep and maintain in good order and repair, at its own cost, the roof and other exterior portions of the Premises.  Landlord shall not be responsible for damage caused by any act or negligence of Tenant, its employees, agents, licensees or contractors.  Landlord further agrees to perform repair and maintenance work on structural portions of the Premises, including, without limitation, footings and foundation, floor slab, structural walls, and columns and beams of the Premises, all plumbing and sewage facilities, and heating, ventilation, air conditioning and electrical equipment.
8.2Tenant agrees at Tenant's expense, to keep and maintain in good order and repair, including replacements, all portions of the Premises not specifically designated above as Landlord's obligation, including, without limitation, the exterior and interior portions of all doors, door hardware and operators, windows, window hardware, plate glass, show cases surrounding the Premises, interior walls, floors, ceiling, and all interior building appliances and similar equipment.  
8.3During the term of this Lease, Tenant shall, at Tenant's cost, make any changes or alterations in the Premises that may be necessary to cause said Premises to conform to all governmental and insurance underwriters’ requirements.  
8.4If Tenant refuses or neglects to commence within thirty (30) days written notice from Landlord and complete any of the foregoing promptly and adequately thereafter, Landlord may, but shall not be required to, make or complete said repairs and Tenant shall pay the cost thereof to Landlord upon Landlord billing Tenant for same. 
SECTION 9.INSURANCE & INDEMNITY.
9.1Tenant agrees to provide prior to commencing any Tenant work in or upon the Premises and to keep in force during the Term, comprehensive, general and motor vehicle liability insurance including, without limitation, bodily injury, personal and property damage relating to the Premises on an occurrence basis in the minimum amount of $1,000,000.00, and adequate fire, extended coverage and all risk insurance on Tenant's personal property.  Tenant agrees to deliver to Landlord before Tenant takes possession of the Premises or undertakes any Tenant Work in or upon the Premises and thereafter at least fifteen (15) days prior to the expiration of such policies, either duplicate originals or certified true copies of all insurance policies procured by Tenant in compliance with its obliga-tions hereunder.  All of the aforesaid insurance shall be written by one or more responsible insurance companies authorized to do business in the State of Florida (such insurance may be carried under a blanket policy covering the Premises and any other of Tenant's offices) and shall name Landlord and Tenant as insureds, as their interests may appear, and shall contain endorsements that: (a) such insurance may not be canceled or amended with respect to Landlord (or its designees), except upon fifteen (15) days' notice to Landlord (and such designees) by the insurance company; and (b) expressly waives any right to subrogation by Tenant and Tenant's insurance company against Landlord. 

       EXHIBIT D

9.2Tenant shall indemnify and save harmless Landlord from any claims in connection with any injury or damage caused to any person or property arising out of Tenant's use or occupancy of the Premises unless caused in part by the negligence of Landlord or its agents.  The provisions of this section shall be applicable until the Lease terminates and Tenant has vacated the Premises. 
SECTION 10TAXES.
10.1Tenant agrees to pay, when due, all taxes assessed against Tenant's personal property.  Tenant shall pay for all license fees, occupational taxes and other governmental charges assessed by reason of Tenant's use or occupancy of the Premises, including, without limitation, any rental or occupancy taxes and any other taxes arising out of the operation of Tenant's Business or occupancy of the Premises.
SECTION 11FIRE OR OTHER CASUALTY.
11.1Should the Premises or any part thereof be damaged or destroyed by fire or other casualty covered by insurance policies applicable to the Premises, Landlord shall, except as otherwise provided herein, and to the extent it recovers proceeds from such insurance, repair and/or rebuild the same with reasonable diligence.  Landlord's obligation to rebuild or repair is subject to the written consent of Landlord's first mortgagee who has a prior right to such insurance proceeds and shall be limited to the condition originally provided by Landlord as of the Commencement Date.  Landlord shall not be obligated to repair, rebuild, or replace any property belonging to Tenant or any improvements to the Premises furnished by or for Tenant.  If Tenant is unable to use all or any portion of the Premises by reason of such damage or destruction or the repair thereof, or if there is any interference with access to the Premises, or there is any other adverse impact on Tenant's Business by reason of such damage or destruction or the repair thereof, then the Annual Rent and other charges shall be abated (during such period Tenant is unable to open for business) or proportionately reduced (during such period as Tenant is able to open for business but is unable to use any portion of the Premises) according to the extent of the interference with tenant's use thereof.  Unless this Lease is terminated by Landlord as hereinafter provided, Tenant shall repair, redecorate and refixture the Premises and restock the contents thereof in a manner and to at least a condition equal to that existing prior to such damage or destruction.
11.2Notwithstanding anything to the contrary contained in this section or elsewhere in this Lease, Landlord, at its option, may terminate this Lease on thirty (30) days notice to Tenant, so long as Landlord terminates the Leases for similarly situated tenants, given within one hundred twenty (120) days after the occurrence of any damage or destruction if: (a) the Premises be damaged or destroyed as a result of a risk which is not covered by Landlord's insurance; (b) the Premises be damaged and the cost to repair the same shall exceed fifty percent (50%) of the then replacement cost of the Premises; (c) the building now located upon and constituting a part of the Premises shall be damaged to the extent of fifty percent (50%) or more of the then replacement cost thereof (whether the Premises be damaged or not).  
11.3Notwithstanding anything contained in this section to the contrary, if Tenant is deprived of the use of all or substantially all of the Premises or if Tenant’s ingress and egress to the Premises is destroyed, by reason of such damage or destruction and such damage or destruction occurs during the last two (2) years of the Term, then Tenant shall have the right to terminate this lease with no further obligations hereunder, effective as of the date of such damage or destruction, by giving notice of such election to the landlord within thirty (30) days after the occurrence of such damage or destruction.  Furthermore Tenant  shall have the right to terminate this lease with no 

       EXHIBIT D

further obligation hereunder in the event Landlord fails to restore the Premises within one hundred eighty (180) days of the casualty.
SECTION 12CONDEMNATION.
12.1If the entire Premises has been appropriated or taken under the power of eminent domain by any public or quasi‐public authority, or conveyance made in lieu thereof (all such procedures being herein collectively called "Condemnation"), this Lease will terminate and expire as of the date of such taking.  The parties will thereupon be released from any further liability hereunder (except for obligations existing on the effective date of such termination or which by their nature or otherwise expressly herein survive such termination).  
12.2Should a portion of the Premises be taken by Condemnation and the part remaining, if any, after such Condemnation is, in either party's reasonable opinion, not reasonably suitable for the business specified in Paragraph 5.1 for which the Premises were leased, this Lease shall terminate upon possession of the Premises by the Condemnation authority and rent and any other monies shall be accounted for between the Parties as of the date of said possession.
12.3Should a portion of the Premises be taken by Condemnation and the part remaining, if any, after such Condemnation is, in Landlord's reasonable opinion, reasonably suitable for said Business, then Landlord, at its own expenses shall, upon receipt of the Condemnation award, restore the remaining portion of the Premises and the Annual Rent shall be proportionately adjusted if the interior area of the Premises is changed.  Said restoration shall be subject to the written consent of Landlord's first mortgagee, if any, who has a prior right to such award; limited to the condition originally provided by Landlord as of the Commencement Date; and, limited in cost to the net proceeds of the Condemnation award received and retained by Landlord for the Premises.  Notwithstanding the forgoing, in the event a Condemnation materially prohibits or inhibits Tenant's reasonable use of the Premises for a period in excess of ninety (90) days, Tenant shall have the right to terminate this Lease with no further obligation hereunder.
12.4All compensation paid for any of the said takings shall belong to and be the property of Landlord without participation by Tenant or any deduction therefrom for any present or future estate of Tenant.  Tenant is not prohibited from claiming such award as may be allowed for loss of its business or personal property, provided that such claim does not diminish or adversely affect Landlord's award or that of any mortgagees or underlying ground lessors.
12.5Landlord shall promptly give Tenant notice of the receipt of any initial notice Landlord receives regarding any Condemnation action. 
SECTION 13LANDLORD'S FINANCING.
13.1Tenant agrees, provided Tenant's rights under this Lease are recognized and not disturbed, upon Landlord's request, to subordinate this Lease, in written form, as shall be desired by Landlord and any extensions thereof, to any other method of financing or refinancing now or hereafter in force against the land and/or buildings, of which the Premises are a part, or against any building hereafter placed upon said land, and to all advances made, or hereafter to be made, upon the security thereof.  Tenant further agrees upon Landlord's request, to execute, acknowledge and deliver to Landlord a written statement in form requested by Landlord, certifying that this Lease is unmodified and in full force and effect (or, if there have been modifications, that this Lease is in full force and effect as modified and stating the modification), the dates to which all rents hereunder have been paid in advance, if any, and that there are then existing no setoffs or defenses against the enforcement of the agreements of this Lease on the part of tenant to be performed (or, if any specifying same), it being intended that any such statement delivered as aforesaid may be relied upon by any 

       EXHIBIT D

prospective purchaser, mortgagee or financier of the Premises, or any part thereof.  If Tenant does not, within thirty (30) days of Landlord's request as aforesaid, execute and deliver such instruments, then Tenant hereby irrevocably appoints Landlord as attorney‐in‐fact for Tenant with full power and authority to execute and deliver the same in the name of the Tenant.   
13.2If the holder of any mortgage covering the Premises shall have given prior notice to Tenant that it is the holder of such mortgage and such notice includes the address to which notices to such mortgagee are to be sent, then Tenant agrees to give to the said holder of such mortgage notice simultaneously with any notice given to Landlord to correct any default of Landlord and agrees that the said holder of such mortgage shall have the right, within thirty (30) days after receipt of said notice, to commence correction of such default and diligently prosecute completion thereof before Tenant may take any action under this Lease by reason of such default.  
13.3If Landlord, or any successor in interest, shall be a non‐incorporated entity, there shall be no personal liability on any individual or member of such non‐incorporated entity in respect to any of the agreements of this Lease.  Tenant shall look solely to the equity of Landlord in the leased Premises and the rents, issues and profits derived therefrom for the satisfaction of the remedies of Tenant in the event of a breach by Landlord.  Tenant shall, in the event of the sale or assignment of Landlord's interest in the Premises, or in the event of any proceedings brought for the foreclosure of any mortgage covering the Premises, attorn to and recognize such purchaser or mortgagee as Landlord under this Lease provided Tenant’s rights under this Lease are recognized and not disturbed by such mortgagee, and in any such events, Landlord named herein shall not thereafter be liable as a Party under this Lease. 
SECTION 14TENANT'S DEFAULT, WAIVER & ATTORNEYS' FEES.
14.1All billings referred to in this Lease shall be due to the billing Party within thirty (30) days of such billing.  All monetary obligations of whatever nature payable by Tenant to Landlord under this Lease shall, for the purpose of this Section be payable as and construed to be rent.  Should Tenant fail to pay any such rents or other monetary obligations when due, then interest shall accrue from and after the due date at the rate of eight percent (8%) per annum together with a late charge of Twenty-five Dollars ($25.00) for each charge or item to cover Landlord's extra expense involved in collecting such delinquency.  All rights and remedies of Landlord specified herein are cumulative and none shall exclude any other rights or remedies allowed by law or equity.   
14.2Tenant agrees that if Tenant: 
a.Fails or refuses to pay any rent, or other monies payable as rent, proportionate shares or otherwise, under this Lease, at the specified time and place and such default should continue for more than five (5) days after written notice from Landlord; or,   
b.Fails or refuses to keep and perform any of the other Tenant agreements of this Lease and such default shall continue more than thirty (30) days after Notice thereof by Landlord to Tenant (provided, however, if the cause of such default involves matters reasonably requiring more than thirty (30) days to correct or cure, Tenant will be deemed in compliance with the Notice so long as Tenant has commenced appropriate corrective action within the thirty (30) days and is diligently prosecuting completion thereof);    

Then and in the event of any of the above, Landlord may re‐enter and take possession of the Premises, remove Tenant's personal property therefrom and store the same at Tenant's expense, and re-let the Premises or any part thereof on such terms, conditions and rentals as Landlord may deem proper, and apply the proceeds that may be obtained from said re-letting, after deduction of all re-letting 

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costs, including without limitation, charges for said removal and storage, remodeling and repairs, leasing commissions and legal fees, to the rents reserved hereunder which may remain unpaid; or, at Landlord's option, Landlord may terminate and cancel this Lease, in which event Tenant agrees to promptly pay to Landlord all of the aforesaid re-letting costs and all accrued rent unpaid on the date of such termination.  
14.3No waiver of any agreement of this Lease or of the breach thereof shall be taken to constitute a waiver of any subsequent breach of such agreement, nor to justify or authorize the non‐observance of any other occasion of the same or any other agreement hereof nor shall the acceptance of rent by Landlord at any time when Tenant is in default be construed as a waiver of such default or of Landlord's right to terminate this Lease on account of such default; nor shall any waiver or indulgence granted by Landlord to tenant, be taken as an estoppel against Landlord.  It is expressly understood that if at any time Tenant shall be in default hereunder, an acceptance by Landlord of rent during the continuance of such default or the failure on the part of Landlord promptly to avail itself of such other rights or remedies as Landlord may have, shall not be construed as a waiver of such default, but Landlord may at any time thereafter, if such default continues, terminate this Lease on account of such default in the manner herein provided.   
14.4In the event court action relating to this Lease is brought by either Party against the other, the prevailing Party shall be entitled to recover from the non-prevailing Party reasonable attorneys' fees, costs and expenses incurred in such action, including without limitation any appeals or bankruptcy actions, the amount thereof to be fixed by the court. 
SECTION 15BANKRUPTCY OR INSOLVENCY.
15.1.If at any time prior to the Commencement Date or during the Term, there shall be filed by or against Tenant in any court pursuant to any statute either of the United States or of any state, a petition in bankruptcy or insolvency or for reorganization or arrangement, or for the appointment of a receiver or trustee of all or a portion of Tenant's property, or if Tenant makes an assignment for the benefit or creditors or if there is an assignment by operation of law, or if Tenant makes application to Tenant's creditors to settle or compound or extend the time for payment of Tenant obligations, or if any execution or attachment shall be levied upon any of Tenant's property or the Premises are taken or occupied or attempted to be taken or occupied by someone other than Tenant, then this Lease may be terminated and declared null and void at the sole option of Landlord.  Upon the happening of Tenant's bankruptcy, insolvency, or any of the contingencies herein enumerated, and whether or not Landlord elects to terminate this Lease, Landlord may apply any security deposit under this Lease to any arrears in rent and a judicial stay shall not have the effect of terminating this option.  In the event of a judicial stay or an order of any court authorizing Tenant, Receiver, Debtor‐in-Possession, Trustee, Examiner, Assignee for the Benefit of Creditors, or any other person to remain in possession of the Premises, Landlord shall be entitled be paid a total sum in exchange for such use and occupation in the amount of the rent and other charges reserved in this Lease, or the fair market value of the Premises, whichever is higher.  The acceptance by the Landlord of rent for use and occupation shall not be deemed an election to affirm or agree to the assumption of the Lease.  Failure of Landlord to elect to terminate this Lease during any one of the proceedings or contingencies herein set forth, shall not be deemed a waiver of that right in the same or any future proceedings.  The exercise of the option to terminate the Lease shall not defeat the Landlord's right to damages for all losses sustained.  
SECTION 16ASSIGNMENT & SUBLETTING.

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16.1Any reference in this Lease to sub‐tenants, licensees, heirs, executors, administrators, successors and assigns notwithstanding, Tenant agrees not to assign this Lease or to sublet the whole or any part of the Premises, or to permit any other person to occupy same or any part thereof (each such event or circumstance, a "Transfer") without the prior express written consent of Landlord, which consent may not be unreasonably withheld.  Any assignment or sub‐letting, even with Landlord's consent shall not relieve Tenant from liability for payment of rent or from the obligation to keep and be bound by the agreements of this Lease.  The acceptance of rent from any other person shall not be deemed to be a waiver of any of the agreements of this Lease or to be consent to the assignment for the benefit of creditors or by operation of law and shall not be effective to the benefit of creditors or by operation of law and shall not be effective to transfer any rights to any assignee without prior consent of Landlord.  In the event Tenant wishes to assign this Lease and Landlord consents to such assignment Landlord may charge a reasonable fee, not to exceed One Thousand and No/100 Dollars ($1,000.00) to help offset any costs Landlord may have in preparing such assignment, or in examining the information, financial statements, operating history, references, etc., necessary to effectuate same.  
16.2The following shall constitute a Transfer requiring Landlord's consent: if Tenant is a non‐publicly traded corporation and at any time during the Term any part or all of the corporate shares of Tenant shall be transferred by sale, assignment, inheritance, operation of law or other disposition so as to result in a change in the present effective voting control of Tenant by the persons owning a majority of said corporate shares on the Lease Date.  Notwithstanding the foregoing, Landlord shall not unreasonably withhold consent to the sale, assignment or transfer of ownership interests in the Tenant corporation which would change the present effective voting control of the Tenant so long as such transfer is to one or more immediate family members of the current holders of effective voting control of the Tenant.Tenant hereby represents and warrants to Landlord that as of the Lease Date, the majority of the corporate shares of Tenant, and effective voting control of Tenant corporation, is held by Sharon E. Stone.
16.3Provided that Tenant is not in material or monetary default beyond any applicable notice and cure period under this Lease, Tenant shall have the right, without Landlord's consent, to make a Transfer to (a) a parent entity which wholly owns Tenant, (b) a wholly-owned subsidiary of Tenant or its parent, (c) a corporation or entity resulting from the consolidation or merger or other reorganization of Tenant into or with any other corporation, or (d) an entity acquiring all or substantially all of the assets of Tenant, or all or substantially all of the outstanding capital stock of Tenant (each a "Permitted Transfer").  Any Permitted Transfer pursuant to this Section 13.5 shall be subject to the following conditions: (i) Tenant shall provide Landlord with written notice of any such Transfer; (ii) Tenant shall remain fully and primarily liable for the performance of all of the terms required to be performed by Tenant hereunder throughout the Lease Term (except in the event of a merger or consolidation through which Tenant ceases to exist as a matter of law); (iii) any such Transfer shall be subject to all of the terms, covenants and conditions of this Lease and such transferee shall expressly assume the obligations of Tenant under the Lease in a written document reasonably acceptable to Landlord; and (iv) a copy of the fully executed Transfer document shall be delivered to Landlord at least thirty (30) days after the effective date of the Permitted Transfer.  No such event or transaction shall affect or allow any change in any term or provision of this lease (including, without limitation, any amount payable hereunder) nor shall any such event or transaction allow Landlord to terminate this Lease.  Additionally, subject to Section 16.2 above, no consent of Landlord shall be required with respect to (i) an offering of Tenant’s or Tenant's parent company's stock to 

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the public pursuant to a registered securities offering, or (ii) the transfer of Tenant’s or Tenant's parent company's stock on a national securities exchange.
SECTION 17TITLE, QUIET ENJOYMENT & ACCESS TO PREMISES.
17.1Landlord warrants that Landlord has lawful title and right to execute this Lease and agrees, if Tenant shall perform all of Tenant's agreements herein specified, Tenant shall, subject to the terms and conditions of this Lease, have the peaceable and quiet enjoyment and possession of the Premises without any manner or hindrance from Landlord or any persons lawfully claiming through Landlord.
17.2Tenant agrees that Landlord and its agents, upon reasonable advance notice, may inspect the Premises at any reasonable time during business hours and that Landlord may make such repairs or improvements to the Premises or any part of the Premises that Landlord is required to make pursuant to the terms of this Lease.  Tenant further agrees that during sixty (60) days preceding the termination of the term of this Lease, Landlord or its agents shall have the right to show the Premises to potential tenants, and to place various notices on the Premises offering the Premises to such tenants. 
SECTION 18NO OPTION OR BROKER.
18.1Submission of this Lease for examination does not constitute a reservation of or option for the Premises and this Lease becomes effective as a Lease only upon execution and delivery thereof by Landlord to Tenant.   
18.2Except as set forth hereinafter, each Party warrants that there was no broker instrumental in consummating this Lease, and that no conversations or prior negotiations were had with any broker concerning the leasing of the Premises: Each Party agrees to hold the other Party harmless against any claims for brokerage commissions arising out of any conversations or negotiations had by it with any broker. 
SECTION 19SURRENDER OF PREMISES & HOLDING OVER.
19.1Tenant agrees to deliver up and surrender to Landlord possession of the Premises upon termination of this Lease, in as good condition and repair as the same shall be at the Term commencement or may have been put by Landlord during the continuance thereof ‐ ordinary wear and tear excepted.  Nothing herein shall be construed as relieving Tenant of any of its maintenance, repair or replacement obligations under this Lease.  If Tenant shall hold over or otherwise remain in possession of all or any part of the Premises after the expiration of the Term or fail to completely remove its personal property, then Tenant shall be deemed a tenant of the Premises from month to month, notwithstanding any law to the contrary, subject to all of the terms and provisions hereof, except only as to the Term which will have terminated and the Annual Rent at the time of such termination shall be 150% of the Annual Rent. 
SECTION 20NOTICE & REASONABLE CONSENT.
20.1Any notice that either Party may desire or be required to give under this Lease shall be effective only if in writing and delivered personally to the other Party (or upon an officer or general partner of the other Party if such Party is not an individual) or sent by express 24‐hour guaranteed courier or by registered or certified mail of the United States Postal Service, return receipt requested, addressed to the other Party at the address as specified in Section 1.0 (or to such other address or person as either Party may, by notice to the other, specify).  Unless otherwise specified, notices shall be deemed given when received, but if delivery is not accepted, notices shall be deemed given on the earlier of the date delivery is refused or the third day after the same is 

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deposited with such courier or United States Postal Service.  Communications, statements and payments shall be similarly addressed.  
20.2Whenever this Lease specifies that either Party has the right of consent, said consent shall be effective only if in writing and signed by the consenting Party and shall not be unreasonably withheld or delayed. 
SECTION 21PARTIES:  RELATIONSHIP & DEFINITION.
21.1Nothing in this Lease shall be deemed or construed so as to create the relationship of principal and agent, partner-ship, joint venture or of any association between the Parties, it being agreed that neither the computation of rent nor any other Lease provision nor any act of the Parties shall be deemed to create any relationship between the Parties other than that of Landlord and Tenant.  
21.2The words "Landlord" and "Tenant" shall mean each Party named as the Landlord or Tenant in Section 1.0 and if there shall be more than one, any notice required or permitted by this Lease may be given by or to any one thereof, and shall have the same force and effect as if given by or to all thereof.  The use of the neuter singular pronoun to refer to either Party shall be deemed a proper reference even though such Party may be an individual, partnership, corporation, trust, or a group of two or more of any of the same.  The necessary grammatical changes required to make the provisions of this Lease apply in the plural tense where there is more than one, as aforesaid, and to either corporations, partnerships, individuals, trustees, males or females, shall in all instances, be assumed as though in each case fully expressed. 
SECTION 22LEGAL CONSTRUCTION & FORCE MAJEURE.
22.1This Lease shall be construed in accordance with the applicable laws of the State where the Premises are located.  In interpreting this Lease, there shall be no inference, by operation of law or otherwise, that any provision of this Lease shall be construed against either Party.  The intent or meaning of any phrase or word capitalized and/or defined in this Lease is consistent with its intent or meaning when initially capitalized or defined.  In the event any provision of this Lease conflicts with any applicable law, such conflict shall not affect other provisions of this Lease which can be given effect without such conflicting provision.  The Section and Paragraph numbers and captions are inserted only as such matter of convenience and in no way define or limit the scope or intent of such Sections, Para-graphs or this Lease.  
22.2If either Party shall be delayed or prevented from the performance of any act required by this Lease by reason of strikes, utility failures, restrictive laws, riot, acts of God or other similar reasons not the fault of the non-performing Party, the performance time for such act shall be extended for a period equivalent to the period of such delay.  The provisions of this Paragraph shall not operate to excuse Tenant from prompt payment of rent or other charges hereunder. 
SECTION 23ENTIRE AGREEMENT & PROVISIONS BINDING.
23.1This Lease and any incorporated exhibits contain all the agreements between the Parties and cannot be modified in any manner other than by agreement signed by the Parties.  
23.2The agreement herein shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the Parties.  Each agreement, term and provision of this Lease shall be construed to be a promise, covenant and condition. 
SECTION 24SPECIAL LEASE PROVISIONS.
24.1This Lease shall constitute an exclusive use to the holder hereof; and this duly authorizes Tenant to operate, maintain and carry on an urgent care facility in the Building and Premises subject to the other terms and restrictions of this Lease.  

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24.2It is expressly recognized and understood by the parties to this Lease that Section 6204 of the Omnibus Budget Reconciliation Act of 1989, as amended (hereinafter referred to as the “Stark Law”), specifically prohibits a physician from making a referral to a clinical laboratory (for which referral the Medicare and Medicaid Programs would otherwise pay) if the physician (or a member of the physician’s immediate family) has a financial arrangement with such clinical laboratory.  It is further recognized by the parties hereto that the self-referral prohibition of the Stark Law and any regulations so implementing the Stark Law will affect the parties hereto, except to the extent the parties are otherwise specifically exempt from or outside the scope of, the Stark Law and its regulations.  The parties hereto agree that the terms and conditions of this Lease must at all times comply with the requirements of the Stark Law and any regulations implementing the Stark Law.  If at any time Landlord fails to so comply with the provisions and exceptions of the Stark Law, Tenant may terminate this Lease immediately provided, however, that the Landlord shall have twenty (20) days from the date Landlord discovers that it has unintentionally violated this provision to conform the Lease with the “leased space” exception of the Stark Law.
24.3Landlord hereby certifies that: (1) the Landlord (including but not limited to partners, shareholders or other investors of Landlord) is not a physician, dentist, osteopath, podiatrist, optometrist or chiropractor (collectively “practitioner”) (or immediate family member thereof who is a practitioner or group of practitioners) who has an ownership or investment interest in the building in which the Premises is located.  Landlord covenants and agrees that Landlord shall notify Tenant within five (5) days of any change in the facts relating to this certification.
24.4As required by the general industry standard 29 CFR 1910.1001, effective October 11, 1994, (the “Standard”) all Building owners must provide information regarding the location of asbestos hazards within this Building to employers-tenants.  Landlord has disclosed this information to Tenant.  Landlord shall indemnify and hold Tenant harmless from all loss and expense arising out of any failure by Landlord to comply with all of its obligations under the Standard.  This indemnification shall survive the termination of this Lease.
24.5No Requirement To Refer.  Notwithstanding anything contained herein to the contrary, nothing in this Agreement shall be construed to induce, encourage, solicit or reimburse the referral of any patients or business, including any patients or business funded in whole or part by federal or state government programs (i.e., Medicare, Medicaid, TRICARE, etc.) or to limit the freedom of any patient of Landlord or Tenant or any of their Affiliates to choose the hospital, healthcare facility or physician from whom such patient will receive medical services.  The parties acknowledge that there is no requirement under this Agreement or any other agreement between the parties that Landlord or any of its Affiliates refer patients or business to Tenant, any medical practice, walk-in clinic or urgent care clinic managed by Tenant or its Affiliates. No payment made under this Agreement will be in return for the referral of patients or business, including those paid in whole or part by federal or state government programs.  The parties acknowledge that none of the benefits granted Landlord or any of their Affiliates hereunder are conditioned on any requirement that any such person make referrals to, be in a position to make or influence referrals to, or otherwise generate business for Tenant, any medical practice, walk-in clinic or urgent care clinic managed by Tenant or any of their Affiliates. For purpose of this Agreement, the term “Affiliate” shall have the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act of 1934, as amended.
24.6Fair Value.  Landlord and Tenant acknowledge that the terms of this Agreement have been negotiated at arms’ length and that the Purchase Price constitutes fair value for the Purchased 

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Assets.
SECTION 25OPTION TO PURCHASE.
25.1Any time after the first 30 months of the Initial Term, and so long as the Lease is in effect, Tenant shall have the option to purchase for cash and upon the terms and conditions provided in a Purchase and Sale Agreement substantially in the form attached hereto as Exhibit "B", the Highway 77 Center and/or the Front Beach Center for a price to be determined by an appraisal conducted by a competent appraiser to be chosen by Tenant and Landlord.  The Parties agree that the purchase and sale shall be substantially upon the terms and conditions.
25.2If at any time during the term of this Lease Landlord shall receive a bona fide third-party offer from any party to purchase the Highway 77 Center and/or the Front Beach Center, subject to the terms and conditions of this Lease, which offer Landlord proposes to accept, Landlord shall notify Tenant of its intention to accept such offer and shall deliver to Tenant a copy of such offer in which all the terms and provisions of the offer are made known to Tenant.  Tenant shall have the right within thirty (30) days thereafter to accept in writing the terms of such offer.  If Tenant shall not so elect within such period, Landlord may then enter into a Purchase and Sale Agreement with such third party upon the terms and conditions set forth in such offer and may sell the Highway 77 Center and/or the Front Beach Center to such party free and clear of this right of first refusal; provided, however, if the transaction shall not occur within six (6) months of the time the offer shall have been delivered to Tenant, then this right of first refusal shall automatically be revived.

[SPACE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment and Lease effective as of the date first above written, each acknowledging receipt of an executed copy hereof. 

Signed, sealed & delivered
in the presence of:
LANDLORD

BAY WALK-IN CLINIC, INC.,
a Florida corporation

By:                        
Name:                    
Title:                    

TENANT    

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            

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STATE OF FLORIDA
COUNTY OF BAY

The foregoing instrument was acknowledged before me this              day of                       , 2014, by Sharon E. Stone, as President of BALK WALK-IN CLINIC, INC., who: (notary must check applicable box)

is personally known to me.

produced a current Florida driver's license as identification.

produced                                    as identification.

                                                                       
(SEAL)                                                                                       
(Print Name)
Notary Public
Commission #                                                
My Commission Expires:                             
STATE OF FLORIDA
COUNTY OF BAY

The foregoing instrument was acknowledged before me this           day of                         , 2014, by                                        , as                       of ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company, who: (notary must check applicable box)

is personally known to me.

produced a current Florida driver's license as identification.

produced                                    as identification.

                                                                       
(SEAL)                                                                                       
(Print Name)
Notary Public
Commission#                                                 
My Commission Expires:                              

THIS INSTRUMENT PREPARED BY:  H. CRANSTON POPE of POPE & BARLOGA, P.A., 736 Jenks Avenue, Panama City, Florida 32401
    

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EXHIBIT "A"
(Description of Premises)

Highway 77 Center 

Front Beach Center

    

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EXHIBIT "B"
(Form of Purchase and Sale Agreement)

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PURCHASE and sale AGREEMENT
THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made and entered into by and between ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company, or its affiliate or assign ("Buyer"), and BAY WALK-IN CLINIC, INC., a Florida corporation (or its successors in interest) ("Seller").

WITNESSETH:
For the covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:

1.Sale and Purchase.  Subject to and in accordance with the terms of this Agreement, Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, certain real property located at 2306 Highway 77, Panama City, Florida 32405 (the “Highway 77 Center”) and/or 8811 Front Beach Road, Panama City Beach, Florida 32407 (the “Front Beach Center”), as more particularly described on Exhibit A attached hereto, together with all improvements including the buildings thereon, rights, easements, interests, privileges, tenements and hereditaments appurtenant thereto (collectively, the "Property").

2.Purchase Price.  At the closing and consummation of the transaction contemplated by this Agreement (the "Closing"), Buyer shall pay Seller the sum of ______________________________ and 00/100 Dollars ($___________________) for the Property (the "Purchase Price"), in immediately available funds, less the amount of any credits or adjustments provided for herein.

3.Earnest Money.  Within five (5) business days after the Effective Date (hereinafter defined in Section 22), Buyer shall deliver to ________________________________ (the "Title Company"), ___________________________________________, the sum of One Hundred and No/100 Dollars ($100.00), which amount, plus any interest earned thereon, is referred to as the "Earnest Money."  The Earnest Money shall be credited against the Purchase Price at Closing.  In the event that this Agreement shall be terminated during the Inspection Period, the Earnest Money shall be refunded, in whole or in part, in accordance with Section 4 below.

4.Inspection.  
(a)For purposes of this Agreement, the term "Inspection Period" shall mean and refer to the period commencing on the Effective Date and expiring at 11:59 p.m. central time on the date that is one hundred twenty (120) days after the Effective Date.  Buyer and Buyer’s agents and third party consultants shall have access to the Property to conduct all inspections.  Inspections conducted by Buyer may include, but are not limited to, evaluation of: (i) current zoning and required rezoning for intended use, (ii) soil conditions, (iii) environmental conditions, (iv) traffic impact, (v) utility availability, (vi) storm water retention, (vii) archaeological considerations, (viii) servitudes, (ix) endangered species, (x) wetlands, (xi) flood zone, (xii) buffer/setback requirements, (xiii) fire access requirements, (xiv) access, (xv) survey, (xvi) local building ordinances and restrictions, (xvii) signage rights, and any other matter Buyer deems relevant.  The discovery of hazardous materials 

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or releases, title defects, unsafe conditions, etc., and the reporting of same and the incursion of fines or costs by Seller to remedy same shall not give rise to a claim by Seller against Buyer for all or any portion of such fines or costs.  Notwithstanding the foregoing, Buyer may extend the Inspection Period for two additional periods of sixty (60) days each upon the payment of an additional earnest money deposit of One Hundred and No/100 Dollars ($100.00) to the Title Company at the time each such extension is requested, which additional earnest money deposits shall be non-refundable (except as expressly provided in this Agreement) and shall be applied towards the Purchase Price at Closing.
(b)Buyer may terminate this Agreement for any reason, in its sole and absolute discretion, by giving written notice to Seller on or before the date the Inspection Period expires.  In the event that this Agreement shall be terminated by Buyer during the Inspection Period, the Earnest Money shall be immediately refunded to Buyer in full. 
5.Title and Survey.  During the Inspection Period, Buyer shall order a commitment for an ALTA Owner’s Extended Coverage Policy of Title Insurance (Form 2006) from an agent of Title Company selected by Buyer, showing the status of title to the Property (the "Commitment").  Buyer may also order a current ALTA survey of the Property (the "Survey") certified to Buyer, Seller and the Title Company.  The Commitment shall be in the amount of the Purchase Price and shall commit to insure the Buyer has good and marketable fee simple absolute title to the Property.  If Buyer has any objections to the status of title to the Property (including, but not limited to, the exceptions and requirements set forth in the Commitment) or to matters shown on the Survey (collectively, "Title & Survey Objections"), Buyer shall give Seller written notice of the same on or before the expiration of the Inspection Period.  Seller agrees to use its best efforts to cure the Title & Survey Objections to Buyer’s satisfaction prior to Closing; provided, except as otherwise expressly provided herein, Seller shall not be required to incur any out-of-pocket costs to cure the Title & Survey Objections.  Seller shall satisfy all of the requirements set forth on Schedule B, Section 1 of the Commitment at or prior to Closing (which, by way of example, includes the delivery of the deed, release of any liens, payment of any outstanding taxes and delivery of affidavits).  If Seller fails to cure any of the Title & Survey Objections to Buyer’s satisfaction, as determined by Buyer in its sole and absolute discretion, by the date the Closing is scheduled to occur under Section 11, then Buyer may, in addition to any other remedies available hereunder or at law or in equity, (i) terminate this Agreement by giving written notice to Seller prior to Closing and receive a return of the Earnest Money, or (ii) waive the uncured Title & Survey Objections.  Nothing herein shall be deemed to modify or limit Seller’s obligations under Section 7 below.  
6.Due Diligence Materials.  Within two (2) days following the Effective Date, to the extent in Seller's possession or control or otherwise readily accessible to Seller, Seller shall deliver to Buyer copies of all studies, surveys and other reports related to the Property, including but not limited to those items described on Exhibit B attached hereto (collectively, the "Due Diligence Materials").

7.Representations and Warranties.  As of the Effective Date and the Closing, Seller represents and warrants to Buyer that: (i) Seller has all power and authority required for it to enter into this Agreement and perform its obligations hereunder; (ii) Seller’s execution and performance of this Agreement does not conflict with or violate any governmental order, judgment, writ, enactment or decree or any contract, agreement or other instrument; (iii) there are no pending or 

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threatened lawsuits or similar proceedings that could have an adverse effect on the Property or Seller’s ability to perform its obligations hereunder; (iv) there are no pending or threatened governmental actions or proceedings (including, but not limited to, eminent domain proceedings, zoning changes, plans to modify adjacent roads, reroute traffic or close a curb cut, or proposed assessments) that will affect the Property; (v) Seller has good and marketable fee simple absolute title to the Property; (vi) there are no tenants or occupants of the Property; (vii) there are no leases, licenses or other occupancy agreements encumbering the Property; (viii) no hazardous substances have been discharged, released, disposed of, incorporated into or allowed to escape on the Property by Seller or others, at Seller’s direction, or, to Seller’s actual knowledge, by any other person or entity; (ix) there are no cemeteries, burial grounds, matters of archeological significance, protected flora or fauna, special flood hazard areas (as defined by FEMA), flood prone areas, sinkholes, or wetlands on the Property; (x) no portion of the Property has been used as a junkyard or dump, no fill material (soil, gravel or other) has been placed on Property, and no debris (organic or inorganic) has been buried on the Property; (xi) there are no material inaccuracies or omissions in the information regarding the Property that Seller has furnished to Buyer; and (xii) Seller is not aware of any fact, event or circumstance that could have a material adverse effect on the Property.  The representations and warranties set forth in this section shall survive the Closing and the delivery of any deed conveying the Property to Buyer.
8.Monetary Liens.  At or prior to Closing, Seller shall cause all liens, monetary judgments, mortgages, deeds of trust, deeds to secure debt, security interests and other similar encumbrances affecting the Property (collectively "Monetary Liens") to be released and discharged.  In the event Seller fails to cause all Monetary Liens to be released and discharged by Closing, Buyer may, in addition to any of the other remedies available hereunder, at law or in equity, take all actions necessary to cause such Monetary Liens to be released and discharged and offset the cost thereof against the Purchase Price.
9.Management and Cooperation.  Between the Effective Date and the Closing, Seller shall not (i) cause or permit any waste or damage to occur to the Property, (ii) make any changes, alterations or additions to the Property, or (iii) enter into any covenant, condition, restriction, easement, lease or other agreement which affects or could affect the Property.  Seller covenants and agrees to cooperate with, assist and join in Buyer’s efforts to obtain permits, licenses, variances, zoning changes, and other governmental consents that Buyer deems necessary or desirable for its use or development of the Property. 
10.Conditions to Closing.  Buyer’s obligation to purchase the Property from Seller is contingent upon all of the following conditions being satisfied at the time the Closing is scheduled to occur:
(i)Each representation and warranty made by Seller herein being true, complete and accurate as of the Effective Date and as of the Closing, and Seller not having defaulted under or breached any of the terms of this Agreement;
(ii)Buyer obtaining a revised copy of the Commitment (the "Updated Commitment") that (A) has been updated to Closing, (B) commits to insure that Buyer has a good and marketable fee simple absolute estate in the Property, (C) contains no requirements that must be satisfied before a title insurance policy will be issued based thereon, (D) is free of the standard exceptions, (E) contains no new exceptions, and (F) contains any endorsements reasonably requested by Buyer;

       EXHIBIT D

(iii)No material or adverse change occurring in the physical condition of Property, the environmental condition of the Property, or title to the Property between the Effective Date and the Closing; and
(iv)No lawsuit or similar proceeding that is adverse to the Property, or Buyer’s intended use thereof, having been instituted or threatened, and no law, rule, regulation, code, zoning change, tax, ordinance, investigation or other action that is adverse to the Property, or Buyer’s intended use thereof, having been adopted or proposed by any governmental authority.
If any of the other conditions set forth above are not satisfied as of the time the Closing is scheduled to take place, Buyer may, at its sole option and in addition to any other remedies available hereunder or at law or in equity, terminate this Agreement by giving written notice to Seller and receive a return of the Earnest Money, postpone the Closing for thirty (30) days to allow such conditions to be satisfied, or waive the unsatisfied condition; provided the provisions of this section shall continue to apply if the Closing is postponed pursuant hereto and no waiver of such conditions shall be deemed to have been made unless expressly set forth in a writing signed by Buyer.
  
11.Closing.  Subject to the other terms of this Agreement, the Closing shall occur on a date (the "Closing Date") of which Buyer may notify Seller at least five (5) days in advance, but within thirty (30) days following the expiration of the Inspection Period, subject to satisfaction of the conditions of Closing specified in Section 10.  The Closing shall take place in escrow through the Title Company.  At the Closing, Buyer's attorney shall prepare and Seller shall deliver the following items to Buyer, properly executed and notarized and in form and substance acceptable to Buyer:
(a)A statutory warranty deed conveying a good and marketable fee simple absolute estate in the Property to Buyer, containing the legal description of the Property as shown on the Survey, together with (A) all rights, easements, interests, privileges, tenements and hereditaments appurtenant to the Property, and (B) all of Seller’s right, title and interest, whether now or hereafter acquired, in the land lying beneath the roads, streets, highways, avenues and alleys adjoining the Property.  The Property shall be conveyed to Buyer subject only to the matters shown in the Commitment to which Buyer does not object, or matters to which Buyer has initially objected but subsequently waived such objection.

(b)Recorded or recordable releases terminating and releasing all Monetary Liens.

(c)An owner’s affidavit for purposes of having the exceptions for mechanics’ and materialmen’s liens, the rights of parties in possession and unrecorded matters deleted from the Updated Commitment, and any other documents, certificates and indemnity agreements that the title company requires to issue the Updated Commitment.

(d)All other documents reasonably requested by Buyer to carry out the transaction contemplated by this Agreement, including, but not limited to, an IRS §1445 Certificate, which certifies that Seller is not a foreign person for U.S. income tax purposes.

       EXHIBIT D

12.Closing Costs and Prorations.  Each of the parties shall pay any attorneys’ fees that it incurs in connection with the transaction contemplated by this Agreement.  Seller shall pay the cost of owner's title policy, the cost of any transfer taxes, stamp taxes, all recording fees, cost of the Commitment.  Buyer and Seller shall each pay one-half of any escrow fees, any loan policy or endorsements, any costs incurred in connection with the Survey, all other costs associated with Buyer's due diligence and inspection activities.  Seller shall pay any charges incurred in connection with clearing title, including without limitation, any prepayment or release fees.  The payment of assessments (general and special, public and private) and real property taxes levied against the Property shall be prorated at Closing on a calendar year basis.  Seller shall be responsible for all taxes owed for the period prior to Closing, including any delinquent taxes and any "roll back" taxes.  
13.Default. 
(a)Buyer’s Default.  If Buyer fails to purchase the Property from Seller in breach of this Agreement, and without fault on the part of Seller, and does not cure such failure within ten (10) business days after receiving written notice of the same from Seller, then Seller may, as its sole and exclusive remedy, terminate this Agreement and receive the Earnest Money as full and agreed upon liquidated damages. SELLER AGREES THAT SAID LIQUIDATED DAMAGES ARE REASONABLE GIVEN EXISTING CIRCUMSTANCES, INCLUDING, WITHOUT LIMITATION, THE RANGE OF HARM THAT IS FORESEEABLE AND THE ANTICIPATION THAT PROOF OF DAMAGES WOULD BE COSTLY AND IMPRACTICAL.  SELLER ACKNOWLEDGES THAT IT UNDERSTANDS THIS SECTION AND SPECIFICALLY WAIVES AND RELINQUISHES ALL OTHER REMEDIES THAT WOULD OTHERWISE BE AVAILABLE AT LAW OR EQUITY ON ACCOUNT OF BUYER’S FAILURE TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT.
(b)Seller’s Default.  In the event the sale contracted for herein is not consummated due to default on the part of the Seller, then the Buyer may, in addition to all other remedies available at law, elect to (i) terminate this Agreement and receive a return of the Earnest Money, or (ii) seek specific performance of this Agreement.  In the event that Buyer elects to terminate this Agreement pursuant to this Section 13(b), in addition to the return of the Earnest Money, Seller shall be obligated upon demand to reimburse Buyer for Buyer's actual reasonable, third-party, out-of-pocket costs incurred in connection with the transaction.  Seller's obligations under this Section 13(b) shall survive the termination of this Agreement.
14.Condemnation.  If there is an actual or threatened taking of all or any portion of the Property by eminent domain prior to Closing, then Buyer may, at its option, (i) terminate this Agreement by written notice to Seller and receive a return of the Earnest Money, or (ii) proceed with the Closing without a reduction in the Purchase Price, in which case Buyer shall have the right to control all matters related to such taking (including, but not limited to, the negotiation, contest and settlement of condemnations awards) and, at Closing, Seller shall tender to Buyer all awards which it has received on account of such taking and assign to Buyer all of Seller’s right, title and interest in and to any unpaid awards payable on account of such taking.  If such assignment is prohibited or would impair recovery, then, in lieu thereof, Seller shall tender to Buyer all amounts paid on account of such taking as soon as it receives the same.  Seller covenants and agrees to provide prompt notice to Buyer of any notice of actual or threatened taking of all or any portion of the Property.  The provisions of this Section 14 regarding Seller’s obligation to tender insurance and condemnation awards to Buyer shall, if applicable, survive the Closing and the delivery of the deed conveying the Property to Buyer.

       EXHIBIT D

15.Zoning, Permits and Approvals.  Buyer is to have until the expiration of the Inspection Period to receive all authorizations and permits, including, without limitation, for curb cut(s) (any such applications for curb cuts shall be at Buyer’s expense), signs, lot split, lot combination, re-platting of the Property,  building and renovation approvals, permits, zoning and subdivision interpretations and confirmations, and all variances, set-backs, utility permits, water rights for both the Property and such other real property as is necessary to facilitate the development of the Property (as determined by Buyer in its sole discretion), authorizations and easements necessary for Buyer’s intended use of the Property, approval of any existing declaration, covenants or other burdens or encumbrances affecting the development or use of the Property (collectively, the “Approvals”).  Seller shall, upon request by Buyer, execute any and all documentation in support of such application for said Approvals.  If Buyer has not received or is denied or refused any such Approvals necessary to assure Buyer that the Property is suitable for Buyer’s intended use of the Property, as determined in Buyer’s sole and absolute discretion, or if the necessary Approvals are granted subject to any conditions that Buyer deems unacceptable in its sole and absolute discretion on or before such date, or if adequate utilities and related facilities, including, without limitation, water, stormwater and sanitary sewage disposal, telephone service and energy sources to service the Property and improvements thereto for Buyer’s intended use and/or easements therefor are not available to the satisfaction of Buyer, then Buyer may, by furnishing written notice to Seller and Title Company prior to the expiration of the Inspection Period, terminate this Agreement without owing any liability to Seller, and receive a return of the Earnest Money.  
If subdivision, lot splitting, lot combination or replatting of the Property is required by any applicable governmental authority as a part of the permitting process or Approvals or as is necessary for Buyer to develop and use the Property (in Buyer’s sole discretion), then Seller shall cooperate with the subdivision, lot splitting, lot combination or re-platting required at Buyer’s expense at least thirty (30) days prior to the Closing.  Seller agrees to execute any documents reasonably required and to support Buyer’s efforts to procure any necessary site plan approvals or zoning changes or re-subdivisions or any other governmental or quasi-governmental approvals to allow for Buyer’s development of the Property.  
16.Notices. All notices, consents and other communications (collectively, "Notices") which may be or are required to be given by Seller or Buyer hereunder shall be properly given only if made in writing and sent to the address set forth below by hand delivery, U.S. Certified Mail (Return Receipt Requested), or nationally recognized overnight delivery service.  Such Notices shall be deemed received, (i) if delivered by hand, on the date of delivery, or (ii) if sent by U.S. Mail or overnight delivery service, on the date the same is deposited with the applicable carrier.  
For Seller:        Bay Walk-In Clinic, Inc.
402 Palmetto Court
Lynn Haven, Florida  32444

For Buyer:        ACSH Urgent Care of Florida, LLC 
5429 LBJ Freeway, Suite 850
Dallas, Texas  75240
Attention:  Matthew D. Thompson, CFO
                

       EXHIBIT D

with a copy to, which shall not constitute notice to Buyer:

Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C.
420 20th Street North, Suite 1400
Birmingham, Alabama 35203
Attention:  Adam S. Winger

Either party may change its address for Notices by giving written notice to the other party in accordance with this provision.  Notices may be given by Seller, Buyer, or their respective counsel. 

17.Broker.  Buyer and Seller each represents and warrants that neither party has engaged or dealt with any broker, brokerage firm, listing agent or finder in connection with the transaction contemplated by this Agreement.  Buyer agrees to indemnify, defend and hold harmless Seller from and against all suits, actions, costs, damages, liabilities and expenses (including, but not limited to, reasonable attorneys’ fees, litigation expenses and court costs) arising out of any claim for a commission, fee or other compensation made by a broker with whom it has dealt.  Seller agrees to indemnify, defend and hold harmless Buyer from and against all suits, actions, costs, damages, liabilities and expenses (including, but not limited to, reasonable attorneys’ fees, litigation expenses and court costs) arising out of any claim for a commission, fee or other compensation made by a broker with whom it has dealt.  The provisions of this section shall survive the termination of this Agreement.

18.Construction of Agreement.  Each of the parties hereto has agreed to the use of the particular language of this Agreement, and any question regarding the meaning of this Agreement shall not be resolved by any rule providing for construction against the party who caused the uncertainty to exist or against the draftsman.  No provision granting Buyer the right to terminate this Agreement shall be construed to limit the remedies available to Buyer as a result of Seller’s default under or breach of the terms hereof.  This Agreement (i) constitutes the entire agreement and understanding of Buyer and Seller with respect to the subject matter hereof and supersedes all prior agreements, understandings, letters, negotiations and discussions, whether oral or written, of the parties, and (ii) may be amended only by a written instrument executed by Buyer and Seller.  In the event any provision hereof shall be prohibited by or invalidated under applicable law, the remaining provisions of this Agreement shall remain fully effective.  No waiver of any provision of this Agreement shall be deemed to have been made unless expressed in writing and signed by the party charged therewith.  No delay or omission in the exercise of any remedy accruing upon the breach of this Agreement shall impair such remedy or be construed as a waiver of such breach.  The waiver by Seller or Buyer of any breach shall not be deemed a waiver of any other breach of the same or any other provision hereof. The captions and headings contained herein are for convenience and reference only, and they shall not be deemed to define, modify or add to the meaning of any provision of this Agreement.  This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  Buyer may freely assign this Agreement; provided no such assignment shall result in Buyer being released from its obligations and liabilities hereunder.  If any date specified in this Agreement for the performance of an obligation, the giving of a notice, or the expiration of a time period falls on a Saturday, Sunday, or bank holiday, 

       EXHIBIT D

then this Agreement shall be automatically revised so that such date falls on the next occurring business day.  FOR PURPOSES OF THIS AGREEMENT, TIME SHALL BE CONSIDERED OF THE ESSENCE.  This Agreement shall be governed by and construed under the laws of the State of Florida. 
19.Attorneys’ Fees.  If any legal proceeding is commenced related to this Agreement, the prevailing party in such legal proceeding shall be entitled to recover its reasonable attorneys’ fees, court costs and litigation expenses from the non-prevailing party therein.
20.Waiver of Jury Trial.  SELLER AND BUYER HEREBY EXPRESSLY WAIVE THEIR RIGHT TO A TRIAL BY JURY OF ANY CLAIM (I) ARISING UNDER THIS AGREEMENT, OR (II) RELATED TO THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING.  SELLER OR BUYER MAY FILE AN ORIGINAL OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE FOREGOING WAIVER.
21.Exhibits.  Buyer and Seller hereby acknowledge and agree that all exhibits referenced in this Agreement are attached hereto and incorporated herein.
22.Effective Date.  For purposes hereof, the term "Effective Date" shall mean the date the last of the parties executes this Agreement, as set forth in the signature blocks below.
23.Counterparts and Facsimile/Portable Document Format Execution.  This Agreement may be executed and delivered, by facsimile and portable document format and/or in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument and shall become a binding Agreement when one or more of the counterparts have been signed by each of the parties and delivered to the other party.

[SIGNATURES APPEAR ON FOLLOWING PAGE.]
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the dates set forth below.
	
				
	BUYER:

	 

	ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company

	 
	 

	By:
	 

	Name:
	 

	Date:
	 

       EXHIBIT D

	
				
	SELLER:

	 

	BAY WALK-IN CLINIC, INC., a Florida corporation

	 
	 

	By:
	 

	Name:
	 

	Date:
	 

       EXHIBIT D

EXHIBIT A

DESCRIPTION of Property

       EXHIBIT D

EXHIBIT B

DUE DILIGENCE MATERIALS

Copies of real estate tax assessments, bills, appraisals, appeals, and other materials related to the Property’s assessment for real estate tax purposes for the current year and the preceding two (2) years;
Copies of all governmental (local, state, federal or related agencies) notices affecting the Property, including but not limited to, any special assessments, notification of non-compliance, intent to change the Property’s legal status, use restrictions, change in zoning, etc.;
Environmental notices related to the Property;
Evidence of current zoning classification and development entitlements approved for the Property (i.e. density, allowed uses, design restrictions, etc.); 
Licenses, permits, and other governmental approvals, regulations, or restrictions relating to the Property;
Copies of any and all other special agreements related to or ongoing obligations of the Property (i.e. neighborhood agreements, offsite parking, air rights, subsurface rights, etc.);
List of any pending or threatened litigation related to the Property;
As-built drawings or survey showing roads, underground utilities, utility servitudes, rights of way around or on the Property, to the extent in Seller’s possession;
To the extent all utilities are not readily available on site, a map and/or survey illustrating the existing location of all utilities;
Copies of the most recent studies or reports regarding conditions of the Property, including (i) Phase I Environmental Report, (ii) geotechnical report, (iii) endangered species report, (iv) archaeological report, (v) wetlands delineations, (vi) boundary survey, (vii) topographical survey; (viii) flood map, and (ix) other reports affecting the Property that Seller has in its possession;
Utility availability letters, to the extent in Seller’s possession, or, if not in Seller’s possession, a list of providers for gas, electric, cable/phone/internet, water, and sewer;
Copy of current title policy for the Property to the extent in Seller's possession;
Copies of easement agreements affecting the Property; and
Any restrictions, covenants, or other usage conditions or building standards applicable to the Property.

       EXHIBIT E

BILL OF SALE
1.Sale and Transfer of Purchased Assets.  For good and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, and as contemplated by that certain Asset Purchase Agreement dated as of June 12, 2014, by and among ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Buyer”), BAY WALK-IN CLINIC, INC., a Florida corporation, and SHARON E. STONE an individual resident of the State of Florida (collectively “Seller Parties”) (the “Purchase Agreement”), Seller Parties hereby sell, assign, transfer, convey and deliver to Buyer, effective as of 12:01 a.m. Dallas, Texas time  on [CLOSING DATE], all of Seller Parties' right, title and interest in and to the Purchased Assets. Capitalized terms used and not defined herein shall have the meaning ascribed thereto in the Purchase Agreement. 
2.Terms of the Purchase Agreement.  The terms and conditions of the Purchase Agreement, including, without limitation, the representations, warranties, covenants, agreements and indemnities are incorporated herein by this reference.  
3.Further Assurances.  Seller Parties for their selves and their successors and assigns, hereby covenant and agree that, at any time and from time to time upon the written request of Buyer, Seller Parties will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be reasonably required by Buyer in order to assign, transfer, set over, convey, assure and confirm unto and vest in Buyer, its successors and assigns, title to the Purchased Assets. 

[Signature Page Follows]

       EXHIBIT E

IN WITNESS WHEREOF, Seller Parties have duly executed this Bill of Sale as of [CLOSING DATE].

SELLER PARTIES:

BAY WALK-IN CLINIC, INC.,
 a Florida corporation

By:                            
Name:                            
Title:                            

SHARON E. STONE

Sign:                             
Print: Sharon E. Stone

       EXHIBIT F

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (“Agreement”) is made and entered into as of [CLOSING DATE] (the “Effective Date”), by and between ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Company”), and SHARON E. STONE a resident of the State of Florida (“Consultant”).
RECITALS:
A.Pursuant to that certain Asset Purchase Agreement dated as of June 12, 2014 by and among Consultant, Bay Walk-in Clinic, Inc., a Florida corporation (collectively “Seller Parties”) and Buyer (the “Purchase Agreement”), on the Effective Date, Seller Parties sold, transferred and assigned, and Buyer purchased, substantially all of the assets used or held for use in connection with the operation of the Business.  Capitalized terms used and not defined herein shall have the meaning ascribed thereto in the Purchase Agreement. 
B.Consultant, as a former owner of the Business, has specialized knowledge regarding the operation of the Business.
C.Company desires to engage Consultant, as an independent contractor, to provide the consulting, advisory and other services requested by Buyer relating to the post-Closing transition of the Business (the “Services”).
NOW THEREFORE, in consideration of the Purchase Price paid to Seller Parties pursuant to the Purchase Agreement, the covenants, warranties and mutual agreements herein set forth, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties do hereby agree as follows:
1.Retention and Engagement.     Company hereby retains and engages Consultant, as an independent contractor, to provide the Services on an as-needed basis, and Consultant hereby accepts such retention and engagement each on the terms and conditions provided herein.
2.Term.    The term of this Agreement (the "Term") shall commence on the Effective Date and unless sooner terminated as provided herein, shall remain in full force and effect for a term of 30 months.
3.Duties.  During the Term, Consultant shall perform the Services and all other services and tasks as the Company may, from time to time, reasonably request, and shall serve as a general advisor and consultant on matters pertaining to the Business.  Consultant shall devote Consultant's best efforts and such time as may be necessary to perform the Services in such a manner that results in the uninterrupted operation of the Business in a manner materially consistent with that conducted by the Seller Parties prior to the closing of the transactions under the Purchase Agreement. Notwithstanding the generality of the foregoing, the parties anticipate that the fulfillment of Consultant’s obligations hereunder will require approximately four hours per month.  Consultant acknowledges that Consultant is not authorized to bind the Company in any manner in connection with the performance of Consultant's duties hereunder.  Consultant shall perform her duties hereunder in accordance with all applicable local, state and federal laws, rules and regulations.

       EXHIBIT F

4.Relationship.  The Services shall be performed by Consultant as an independent contractor and not as an employee.  The manner and means by which Consultant performs the Services will be at the sole discretion and under the sole control of Consultant. This Agreement is not intended to create, and shall not be deemed to create, a partnership, joint venture or joint undertaking, nor the relationship of employer/employee between the parties.
5.Expenses; Benefits.  Company shall not be obligated to reimburse Consultant for any out-of-pocket expenses incurred by Consultant in performing the Services unless such expenses are approved by Company, in writing, prior to Consultant’s incurrence of such expenses.  No benefit provided by Company to its employees, including but not limited to, workers compensation insurance, unemployment insurance, employee medical insurance, retirement, profit sharing, overtime, bonus, vacation, holiday pay or other employee benefits shall be available to Consultant by virtue of this Agreement.
6.Representations and Warranties.  Consultant represents and warrants to Company as follows: (a) Consultant is not bound by any agreement or arrangement which would preclude Consultant from entering into this Agreement or from fully performing the Services, (b) Consultant has not been suspended, excluded from participation, debarred or sanctioned under any governmental reimbursement program (including Medicare and Medicaid), or any government licensing agency, and (c) Consultant has never been charged with or convicted of a criminal offense related to health care.
7.Termination.  Notwithstanding any provision herein to the contrary, this Agreement may be terminated in accordance with the provisions of this Section 7.
(a)This Agreement shall terminate immediately upon Consultant's death or inability for any reason whatsoever to effectively render the Services.  
(b)Either party may terminate this Agreement immediately upon the material breach of this Agreement by the other.
(c)Upon termination of this Agreement for any reason, Consultant shall:
(i)immediately return all Company property to Company, which property shall include, without limitation, all equipment, keys, access cards and business records;
(ii)cooperate with Company in the defense of any claims or suits for acts or omissions occurring during Consultant’s engagement by Company;
(iii)cooperate with Company as may be necessary to ensure uninterrupted care of patients; and
(iv)not be entitled to keep or preserve records or charts of the Company or any patient of the Company.

       EXHIBIT F

8.Non-Competition; Non-Solicitation.      From the Effective Date and continuing until the second anniversary of the termination of this Agreement, (but in no event longer than five years after the Closing Date) (the "Covered Period"), Consultant shall not, directly or indirectly, for Consultant's own benefit or for that of others, within a radius of 25 miles of the Center or any other urgent care, occupational care or walk-in medical center that Company (or any of its Affiliates) opens, acquires, manages or commits to open (whether or not such commitment is binding), acquire or manage at any time prior to or during the term of this Agreement (each a “Protected Center”) (i) call upon, solicit, divert or take away, any patients, customers or clients seen or treated at any Protected Center, (ii) hire, attempt to hire, contact or solicit with respect to hiring, any employee or independent contractor employed or engaged by Buyer within the 24 month period immediately preceding the expiration of the Covered Period, (iii) provide services as an expert consultant or as an expert witness in any matter adverse to Company or any of its Affiliates without first obtaining the approval of Company, and (iv) own any interest in, lease, operate, manage, perform services for, extend credit to or otherwise participate in (e.g., as a medical director, owner, lender, employee, officer, consultant or contractor) any urgent care, occupational care or walk-in medical business within a 25 mile radius of a Protected Center.    The foregoing is not intended nor shall it be interpreted to prohibit Consultant from referring any patient for any goods or services to any health care center that in Consultant’s independent medical judgment is in the best interests of such patient.
9.Dispute Resolution.  All controversies, claims, issues and other disputes arising out of or relating to this Agreement or the breach of this Agreement (collectively, the "Disputes") shall be subject to the applicable provisions of this Paragraph.
(a)All Disputes shall be settled by arbitration in Bay County, Florida, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association.  Any disagreement as to whether a particular Dispute is subject to arbitration under this Paragraph shall be decided by arbitration in accordance with the provisions of this Paragraph.  Judgment upon any award rendered by the arbitrator in any such arbitration may be entered in any court having jurisdiction thereof.  The arbitrator(s) shall have the power to grant all legal and equitable relief and remedies and award compensatory damages as provided for by law but shall not award any damages other than, or in excess of, compensatory damages.  Nothing contained herein shall prohibit or restrict either party's right to seek equitable relief from a court including, without limitation, injunctive relief.
(b)The parties desire to avoid the time and expense related to a jury trial of any Dispute in the event that the arbitration provisions of subparagraph (a) are declared by a court of law to be unenforceable for any reason.  Therefore, the parties, for themselves and their successors and assigns, hereby waive trial by jury of any Dispute.  The parties acknowledge that this waiver is knowingly, freely, and voluntarily given, is desired by all parties and is the best interests of all parties.
(c)The parties shall share equally the fees and expenses of any arbitrator(s) and the costs of any facility used in connection with such dispute resolution procedures.

       EXHIBIT F

10.Confidentiality.  Consultant agrees to maintain and hold as confidential and to not disclose the terms of this Agreement or any confidential or proprietary information that Consultant may be provided before or during the Term to any other person (with the exception of Consultant’s legal counsel), unless disclosure thereof is required by law or otherwise authorized by this Agreement or consented to in writing by Company.  With respect to any patient or medical record information regarding Company's patients, Consultant shall comply with all federal and state laws and regulations, and all bylaws, rules, regulations, and policies of the Company regarding the confidentiality of such information, including, without limitation, all applicable provisions and regulations of the Health Insurance Portability and Accountability Act of 1996, as amended (“HIPAA”).  Consultant acknowledges that Consultant will be considered a "business associate" of the Company, as such term is defined under HIPAA, and accordingly, Consultant shall execute and be bound by the provisions of the Business Associate Privacy, Security, and HITECH Addendum attached hereto as Exhibit A and incorporated herein.
11.General Provisions.
(a)Governing Law.  This Agreement shall be governed, interpreted, construed and enforced according to the laws of the State of Florida.
(b)Binding Effect.  This Agreement shall be binding on, and shall inure to the benefit of each of the parties hereto and their respective heirs, devisees, executors, administrators, legal representatives, successors and assigns, and no person or entity shall acquire or have any right under or by virtue of this Agreement except as expressly provided herein.
(c)Notices.  Any notice, demand, waiver or consent required or permitted hereunder shall be in writing and shall be given by hand delivery, by prepaid registered or certified mail, with return receipt requested, or by a national overnight courier service, addressed as follows  

If to Consultant:         Sharon E. Stone
________________________
________________________
________________________

If to Company:        ACSH URGENT CARE OF FLORIDA, LLC
5429 LBJ Freeway, Suite 850
Dallas, Texas  75240
Attention:  Matthew D. Thompson

(d)Assignment.  Consultant shall not sell, assign, transfer or delegate any right or obligation under this Agreement to any person or entity without the express prior written consent of the Company.  The Company may assign this Agreement at its discretion without further action or consent of Consultant.
(e)Survival.  The representations and warranties, covenants, and agreements of the parties contained in this Agreement shall survive the expiration of this Agreement.
(f)Headings.  The headings of the Paragraphs of this Agreement are inserted for convenience and general reference only, shall not be construed as part of this Agreement and shall in no way be construed as defining, limiting or affecting the scope or intent of the provisions of this Agreement.

       EXHIBIT F

(g)Waiver.  No consent or waiver, expressed or implied, by any party with respect to any breach or default by any other party in the performance of any other party’s obligations hereunder shall be deemed or construed to be a consent or waiver with respect to any other breach or default in the performance of the same or any other obligation of such other party hereunder.  A party’s failure to complain of any act or failure to act of any other party or to declare any other party in default, irrespective of how long such failure continues, shall not constitute a waiver by such party of any rights hereunder.  The giving of consent by a party in any one instance shall not limit or waive the necessity of obtaining such party's consent in any future instance.  Any consent required to be given hereunder shall be in writing unless otherwise provided herein.
(h)Severability of Provisions.  The provisions of this Agreement shall be severable, and if any provision shall be invalid, void or unenforceable in whole or in part for any reason, the remaining provisions shall remain in full force and effect.
(i)Further Assurances.  Each party hereto agrees to do all acts and things and to make, execute and deliver such written instruments as shall from time to time be reasonably required to carry out the terms and provisions of this Agreement.
(j)Counterpart and Facsimile Execution.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including .pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
(k)Attorneys’ Fees.  If Company is required to engage an attorney to enforce any part of this Agreement, or if Consultant breaches any of the provisions or covenants contained in this Agreement, then Consultant shall pay the reasonable attorneys’ fees and expenses actually incurred by Company in enforcing this Agreement or resulting from such breach.
(l)Entire Agreement.   This Agreement contains the entire agreement and understanding of the parties and supersedes all prior agreements and understandings of the parties, oral or written, with respect to the subject matter hereof.  This Agreement may be modified only by an agreement in writing executed by all of the parties hereto.  No amendment, modification, termination or waiver of compliance with any provision of this Agreement will be valid or effective unless in writing and signed by the parties hereto.

[Signature Page Follows]

       EXHIBIT F

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

COMPANY:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            

CONSULTANT:

Sign:                             
Print:  Sharon E. Stone

       EXHIBIT F

Exhibit A

Business Associate Privacy, Security, and HITECH Addendum

See attached.

       EXHIBIT F

BUSINESS ASSOCIATE PRIVACY, SECURITY, AND HITECH ADDENDUM

This Business Associate Privacy, Security, and HITECH Addendum (this “Addendum”) is made and entered into as of [CLOSING DATE] by and between ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Covered Entity”), and SHARON E. STONE, a resident of the State of Florida ("Business Associate") (each a “Party” and, collectively, the “Parties”). 
RECITALS:
A.    Covered Entity and Business Associate have entered into the Consulting Agreement dated as of the Effective Date as defined therein (the “Agreement”); 
B.    Pursuant to the Agreement, Business Associate provides certain consulting and advisory services to Covered Entity, including services requiring Business Associate to have access to Protected Health Information (as defined below);
C.    The services provided by Business Associate to Covered Entity cause Business Associate to be considered a “business associate” as defined and governed by the Health Insurance Portability and Accountability Act of 1996 (the "HIPAA Act”), as amended by the Health Information Technology for Economic and Clinical Health Act under the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, (the “HITECH Act”) and these Acts' implementing regulations found at 45 C.F.R. Parts 160, 162 and 164, as may be amended from time to time and the regulations commonly known as the "Enforcement Rule" found at 68 Fed. Reg. 18895 and 71 Fed. Reg. 8390, as may be amended from time to time (all statutes and regulations referenced in this clause shall be collectively referred to herein as “HIPAA” for ease of reference.); and
D.    Covered Entity and Business Associate desire to modify the Agreement to include certain provisions required by HIPAA.
NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and the provision of Protected Health Information by Covered Entity to Business Associate under the Agreement in reliance on this Addendum, the Parties agree as follows:  
1.Definitions. For purposes of this Addendum, the terms below shall have the meanings given to them in this Section.  The terms used in this Addendum that are not otherwise defined shall have the meaning assigned to those terms in HIPAA and its corresponding guidance(s).  To the extent HIPAA is amended, this Addendum shall be modified automatically (with regard to the Addendum's defined terms and undefined terms) to correspond to the meaning of terms as defined in HIPAA.  
(a)“Administrative Safeguards” means the administrative actions, and policies and procedures, to manage the selection, development, implementation, and maintenance of security measures to protect Electronic PHI and to manage the conduct of Covered Entity’s workforce in relation to the protection of that information.
(b)“Availability” means the property that data or information is accessible and useable upon demand by an authorized person.

       EXHIBIT F

(c)“Breach of Unsecured PHI” shall have the meaning given to the terms "Breach" and "Unsecured Protected Health Information" in 45 C.F.R. § 164.402, as may be amended from time to time. 
(d)“Confidentiality” means the property that data or information is not made available or disclosed to unauthorized persons or processes.
(e)“Covered Entity” shall have the meaning given to that term in 45 C.F.R. § 160.103, as may be amended.
(f)“Data Aggregation” shall mean, with respect to PHI created or received by Business Associate in its capacity as the business associate of Covered Entity, the combining of such PHI by Business Associate with the PHI received by Business Associate in its capacity as a business associate of another Covered Entity, to permit data analyses that relate to the Health Care Operations (defined below) of the respective Covered Entity(s).  The meaning of “data aggregation” in this Addendum shall be consistent with the meaning given to that term in the HIPAA Privacy Rule at 45 C.F.R. § 164.501.  
(g)“Designated Record Set” shall mean a group of Records maintained by or for the Covered Entity that: (a) consists of medical records and billing records about individuals maintained by or for the Covered Entity; (b) consists of the enrollment, payment, claims adjudication, and case or medical management record systems maintained by or for a health plan; or (c) consists of Records used, in whole or part, by or for the Covered Entity to make decisions about individuals.  As used herein, the term “Record” shall mean any item, collection or grouping of information that includes PHI and is maintained, collected, used or disseminated by or for a health care provider.  The meaning of Designated Record Set in this Addendum shall be consistent with the meaning given to that term at 45 C.F.R. § 164.501.  
(h)“De-Identify” shall mean to alter the PHI such that the resulting information meets the requirements described in 45 C.F.R. § 164.514(a) and (b).
(i)“Effective Date” means the effective date of the Agreement.
(j)“Electronic Media” means (1) Electronic storage media including memory devices in computers (hard drives) and any removable/transportable digital memory medium, such as magnetic tape or disk, optical disk, or digital memory card; or (2) Transmission media used to exchange information already in electronic storage media.  Transmission media include, for example the internet (wide-open), extranet (using internet technology to link a business with information accessible only to collaborating parties), leased lines, dial-up lines, private networks, and the physical movement of removable/transportable electronic storage media.  
(k)“Electronic Protected Health Information or Electronic PHI” means Protected Health Information as defined by this Addendum that is transmitted by or maintained in Electronic Media.
(l)“Health Care Operations” shall have the meaning given to that term at 45 C.F.R. § 164.501.
(m)“HHS” shall mean the U.S. Department of Health and Human Services.
(n)“HIPAA Privacy Rule” shall mean the regulations and applicable subparts found at 45 C.F.R. parts 160 and 164, as may be amended from time to time. 
(o)“HIPAA Security Rule” shall mean the regulations and applicable subparts found at 45 C.F.R. parts 160, and 164, as may be amended from time to time. 

       EXHIBIT F

(p)“Information System” means an interconnected set of information resources under the same direct management control that shares common functionality. A system normally includes hardware, software, information, data, applications, communications, and people.
(q)“Integrity” means the property that data or information have not been altered or destroyed in an unauthorized manner.
(r)“Physical Safeguards” means physical measures, policies, and procedures to protect a Covered Entity’s electronic information systems and related buildings and equipment, from natural and environmental hazards, and unauthorized intrusion.
(s)“Protected Health Information or PHI” shall mean information created, transmitted or maintained in any form or medium on behalf of Covered Entity, including demographic information collected from an individual, that 
(i)is created or received by a health care provider, health plan, employer, or health care clearinghouse; and
(ii)relates to the past, present, or future physical or mental health or condition of an individual; the provision of health care to an individual; or the past, present, or future payment for the provision of health care to an individual, and (a) identifies the individual or (b) with respect to which there is a reasonable basis to believe the information can be used to identify the individual.
The meaning of Protected Health Information or PHI in this Addendum shall be consistent with the meaning given to that term in the HIPAA Privacy Rule and HIPAA Security Rule.  
(t)“Required by Law” shall have the meaning given that term in 45 C.F.R. § 164.103. 
(u)“Security Incident” means the successful unauthorized access, use, disclosure, modification, or destruction of information or interference with system operations in an information system. 
(v)“Technical Safeguards” means the technology and the policy and procedures for its use that protect Electronic PHI and control access to it. 
2.Use and Disclosure of PHI.  
(a)Except as otherwise provided in this Addendum, Business Associate may use or disclose PHI as reasonably necessary to provide the services described in the Agreement, or as otherwise permitted or required of Business Associate by this Addendum or as Required by Law, provided that, such disclosure does not violate HIPAA. 
(a)Except as otherwise limited by this Addendum, Business Associate may perform Data Aggregation services for the Covered Entity to the extent such services are required in the Agreement.  

       EXHIBIT F

(b)Except as otherwise limited by this Addendum, Covered Entity authorizes Business Associate to use the PHI in its possession for the proper management and administration of Business Associate’s business and to carry out its legal responsibilities.  Business Associate may disclose PHI for its proper management and administration, provided that (i) such disclosures are Required by Law; or (ii) Business Associate obtains, in writing, prior to making any disclosure to a third party (a) reasonable assurances from such third party that the PHI will be held confidential as provided under this Addendum and used or further disclosed only as Required by Law or for the purpose for which it was disclosed to such third party; and (b) an agreement from such third party to notify Business Associate immediately of any breaches of the confidentiality of the PHI or Breach of Unsecured PHI. 
(c)Business Associate shall not use or disclose PHI in a manner other than as provided in this Addendum, as allowed by HIPAA, or as Required by Law.  Business Associate will not use or disclose PHI in any manner that would violate applicable laws or regulations, including, without limitation, HIPAA, as may be amended from time to time.
(d)Upon request, Business Associate shall make available to Covered Entity any of Covered Entity’s PHI that Business Associate, or any of Business Associate's agents or subcontractors, have in their possession.
(e)Business Associate agrees to comply with HIPAA minimum necessary requirements at 45 C.F.R. § 164.502(b), as may be amended for time to time.  
3.Safeguards Against Misuse of PHI.  Business Associate shall use appropriate safeguards to prevent the use or disclosure of PHI other than as provided by this Addendum in compliance with HIPAA. Business Associate specifically agrees to comply with the HIPAA Privacy and Security Rules that are applicable to Business Associate.  Business Associate agrees to take reasonable steps to ensure that the actions or omissions of its employees or agents do not cause Business Associate to breach the terms of this Addendum. Business Associate shall implement Administrative, Physical, and Technical Safeguards that reasonably and appropriately protect the Confidentiality, Integrity, and Availability of the Electronic PHI that Business Associate creates, receives, maintains, or transmits on behalf of Covered Entity in compliance with the HIPAA Security Rule. 
4.Monitoring and Reporting Disclosures and Breaches of PHI.  Business Associate agrees to and represents and warrants that it will exercise reasonable diligence to detect a Breach of Unsecured PHI and to report to Covered Entity any Breach of Unsecured PHI.  Specifically, Business Associate shall report to Covered Entity in writing any unauthorized use or disclosure of PHI, including but not limited to the following:  (1) any Security Incident involving Electronic PHI of which it becomes aware, and/or (2) any potential Breach of Unsecured PHI.  Business Associate agrees to report any such unauthorized use or disclosure within twenty-four (24) hours of becoming aware of such use or disclosure and agrees to provide such report in the manner and with the content required by HIPAA and Covered Entity.  Subject to indemnification provisions noted herein, Business Associate agrees that it shall be the sole decision of Covered Entity to correspond with or notify individuals regarding potential or actual Breaches of Unsecured PHI, unless Covered Entity directs Business Associate to make such correspondences or notices.   

       EXHIBIT F

5.HIPAA HITECH Compliance.  Notwithstanding additional provisions specifically required by this Addendum, as of the date and in the manner required of business associates by law, Business Associate agrees to and represents and warrants that it will comply with all privacy and security requirements of HIPAA including the HITECH Act (codified at 42 U.S.C. §§ 17921 - 17954) requirements that apply to business associates, and Business Associate also agrees to comply with all regulations issued to implement HIPAA and/or HITECH Act statutory requirements. 
6.Mitigation of Disclosures of PHI.  Business Associate shall mitigate, to the greatest extent practicable, any harmful effect that is known to Business Associate of any use or disclosure of PHI by Business Associate or its agents or subcontractors in violation of the requirements of this Addendum.  
7.Agreements with Agents or Subcontractors.  Business Associate agrees not to subcontract out any services involving the disclosure of PHI without the express written consent of Covered Entity.  Business Associate shall ensure that any of its agents or subcontractor that have access to or to which Business Associate provides PHI agree in writing to comply with HIPAA, this Addendum and comply as otherwise required by law.
8.Access to PHI by Individuals. 
a.Upon request, Business Associate agrees to furnish Covered Entity with PHI maintained in a Designated Record Set in the time, manner, form and format designated by Covered Entity to allow Covered Entity to comply with 45 C.F.R. § 164.524. 
b.In the event any individual (or personal representative) requests access to the individual’s PHI directly from Business Associate, Business Associate within five (5) business days of request, shall forward such request to Covered Entity.  Business Associate shall respond to the individual's request only upon direction by Covered Entity.  The decision to disclose PHI requested by an individual or a personal representative shall be determined solely by the Covered Entity. 
9.Amendment of PHI. 
a.Upon request and instruction from Covered Entity, Business Associate shall amend PHI or a Record about an individual in a Designated Record Set that is maintained by, or otherwise within the possession of, Business Associate as directed by Covered Entity in accordance with procedures established by 45 C.F.R. § 164.526.  Any request by Covered Entity to amend such information shall be completed by Business Associate within fifteen (15) business days of Covered Entity’s request.
b.In the event any individual requests that Business Associate amend such individual’s PHI or Record in a Designated Record Set, Business Associate within five (5) business days, shall forward such request to Covered Entity.  Any amendment of, or decision not to amend, the PHI or Record as requested by an individual shall be determined by the Covered Entity. 
10.Accounting of Disclosures.  
a.Business Associate shall make available information related to such disclosures as would be required for Covered Entity to respond to a request for an accounting of disclosures in accordance with 45 C.F.R. § 164.528.  At a minimum, upon request, Business Associate shall furnish Covered Entity the following: (i) the date of disclosure of PHI; (ii) the name of the entity or person who received PHI, and, if known, the address of such entity or person; (iii) a brief description of the PHI disclosed; and (iv) a brief statement of the purpose of the disclosure, which includes the reason for such disclosure.

       EXHIBIT F

b.Business Associate shall document any disclosures of PHI made by Business Associate, in the same manner required of Covered Entity by 45 C.F.R. § 164.528, as may be amended from time to time.  Business Associate hereby agrees to implement an appropriate recordkeeping system to enable it to comply with the requirements of this Section.  Business Associate agrees to retain such records for a minimum of six (6) years.
c.Business Associate shall furnish to Covered Entity (or to the individual requestor only upon Covered Entity's direction) information collected in accordance with this Section, in the time and manner designated by the Covered Entity, to permit Covered Entity to comply with 45 C.F.R. § 164.528, as may be amended from time to time. 
d.In the event an individual delivers the request for an accounting directly to Business Associate, Business Associate shall within five (5) days forward such request to Covered Entity.  Covered Entity shall determine the manner for preparing and delivering any accounting requested.  
11.Request for Restrictions/Confidential Communications.  Business Associate agrees to comply with any restriction to the use or disclosure of PHI or confidential communications that Covered Entity has agreed to in accordance with 45 C.F.R. § 164.522 (a) and (b), or as otherwise required of a Covered Entity by HIPAA. Business Associate agrees to comply with an individual's request for restriction of disclosure to the individual's health plan for purposes of payment or health care operations, if the PHI to be disclosed pertains solely to a health care item or service for which Covered Entity (or other covered entity) has been paid out of pocket in full, to the extent required by HIPAA. 
12.Availability of Books and Records.  Business Associate shall make available its internal practices, books, agreements, records, and policies and procedures relating to the use and disclosure of PHI to Covered Entity and, upon request, to HHS for purposes of determining compliance with HIPAA and this Addendum.  Notwithstanding the foregoing, prior to any such disclosure to HHS or any other federal or state agency, Business Associate shall notify Covered Entity immediately of such request and shall furnish Covered Entity with copies of such request and Business Associate's response.  Covered Entity and Business Associate agree to work together in responding to such request. 
13.Term and Termination  
a.This Addendum shall become effective on the Effective Date and shall continue in effect until all obligations of the Parties have been met under the Agreement and under this Addendum. 
b.Covered Entity may terminate immediately this Addendum, the Agreement, and any other related agreements if the Covered Entity makes a determination that the Business Associate has breached a material term of this Addendum. 

       EXHIBIT F

c.Upon termination of the Agreement for any reason, all PHI maintained by Business Associate shall be returned to Covered Entity (or other party upon Covered Entity direction) by Business Associate in the manner and format required by Covered Entity.  Business Associate shall not retain any copies of such information.  This provision shall apply to PHI in the possession of Business Associate’s agents and subcontractors.  If return of the PHI is not feasible, Business Associate shall furnish Covered Entity notification, in writing, of the conditions that make return infeasible.  Upon sole determination by Covered Entity that return or destruction of the PHI is infeasible, Business Associate agrees to extend the protections of this Addendum to such information for as long as Business Associate retains such information and limit further uses and disclosures to those purposes that make the return or destruction of the information not feasible.   This Section shall survive any termination of this Addendum.  
14.Effect of Addendum.
a.To the extent the Parties have previously entered into a business associate relationship relative to the Agreement and such relationship continues to exists, in any manner through a stand-alone business associate agreement, business associate terms/provisions/sections incorporated into the Agreement, a business associate amendment/addendum/appendix, surviving termination obligations or any other contracting mechanism that obligated Business Associate as a business associate (collectively referred to as "BA Terms"),  this Addendum hereby supersedes, updates and replaces any such BA Terms or business associate obligations.
b.This Addendum is a part of and subject to the terms of the Agreement, except that to the extent any terms of this Addendum conflict with any term of the Agreement, the terms of this Addendum shall govern.  In the event of inconsistency between the provisions of this Addendum and mandatory provisions of HIPAA, as amended, or their interpretation by any court or regulatory agency with authority over either Party hereto, HIPAA, as interpreted by such court or agency, shall control.  Where the provisions of this Addendum are different than those mandated by HIPAA, but are nonetheless permitted by such rules as interpreted by courts or agencies, the provisions of this Addendum shall control.
c.Except as expressly stated herein or as provided by law, this Addendum shall not create any rights in favor of any third party.
15.No Agency Relationship.  Parties expressly agree that no agency relationship is created by this Addendum or the Agreement with regard to Business Associate's HIPAA obligations.
16.Secure PHI; Encryption of PHI.  Business Associate agrees to secure PHI in compliance with the safe harbors set forth in HHS Guidance “Specifying the Technologies and Methodologies that Render PHI Unusable, Unreadable, or Indecipherable,” published in 74 Fed. Reg. 19006 (Apr. 27, 2009), as may be amended from time to time and HHS Certified Electronic Records Technology Standards, Implementation Specifications and Certification Criteria at 45 C.F.R. Part 170.

       EXHIBIT F

17.Indemnification.  Business Associate hereby agrees to indemnify, defend, and hold harmless Covered Entity, its officers, employees, and agents from and against any and all claims, losses, damages, costs, expenses, liabilities, assessments, judgments, or deficiencies of any nature whatsoever, including, without limitation, reasonable attorneys’ fees and other costs and expenses, suit, action, or proceeding, which may arise out of, result from, or constitute any Breach of any Unsecured PHI, or breach of contract, representation, warranty, or covenant contained in this Addendum. Business Associate further agrees to indemnify and hold harmless Covered Entity from any liability for claims for damages or injury against Covered Entity that are caused by or result from negligent acts or omissions by Business Associate in the performance of its HIPAA duties and obligations, together with all costs and expenses, including reasonable attorneys’ fees.
18.Insurance.  Business Associate agrees to carry and warrants and represents that it does carry liability insurance to cover expenses (including but not limited to Breach of Unsecured PHI notification expenses, fraud alert expenses, mitigation of damages expenses, consultant fees, investigation/litigation costs, legal costs, etc.) associated with a Breach of Unsecured PHI and other HIPAA violations.  Business Associate shall provide proof of such insurance upon request.
19.Marketing and Fundraising.  Business Associate agrees to comply with the HIPAA requirements and prohibitions regarding marketing and fundraising - including any opt-out requirements.
20.Policies and Procedures; Training; Documentation.  Business Associate agrees to develop policies and procedures to comply with HIPAA, to train its workforce on such policies, and to document such compliance, to the extent required by HIPAA.   Business Associate agrees to maintain documentation as required by law. 
21.Overseas Data and Cloud Computing.  Business Associate agrees not to store or otherwise outsource PHI outside of the United States of America and agrees not to use cloud computing models, without notification and prior consent of Covered Entity.
22.Representation and Warranty.   Business Associate represents and warrants that it is compliance with the regulatory requirements of this Addendum.  Business Associate expressly acknowledges that it will be subject to the Enforcement Rule and both criminal and civil penalties for violations of this Addendum or HIPAA.
23.Regulatory References.  A reference in this Addendum to a section in the HIPAA means a reference to the provision as in effect or as amended.
24.Sale of PHI.  Business Associate agrees not to sell PHI or de-identified data to any third party. 
25.Notices.  All notices, requests and demands or other communications to be given hereunder to a Party shall be made via first class mail, registered or certified or express courier to such Party’s address given below: 
If to Business Associate:    Sharon E. Stone
________________________
________________________
________________________

If to Covered Entity:        ACSH URGENT CARE OF FLORIDA, LLC
5429 LBJ Freeway, Suite 850
Dallas, Texas  75240
Attention:  Matthew D. Thompson

       EXHIBIT F

                
26.Amendments; Waiver.   Except as otherwise provided herein, this Addendum may not be modified, nor shall any provision be waived or amended, except in writing duly signed by authorized representatives of the Parties.  The Parties agree to modify this Addendum as necessary for Covered Entity to comply with HIPAA.  A waiver with respect to one event shall not be construed as continuing, or as a bar to or waiver of any right or remedy as to subsequent events. 

[Signature Page Follows]

       EXHIBIT F

IN WITNESS WHEREOF, this Addendum is executed by the Parties as of the Effective Date.

            
COVERED ENTITY:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            

BUSINESS ASSOCIATE:        

    
Sign:                             
Print:  Sharon E. Stone

       EXHIBIT G

ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”), is made and entered into as of [CLOSING DATE] (the “Closing Date”), by and between ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company, ("Buyer") and BAY WALK-IN CLINIC, INC., a Florida corporation, and SHARON E. STONE an individual resident of the State of Florida (collectively “Seller Parties”)

RECITALS:
A.Buyer and Seller Parties are parties to that certain Asset Purchase Agreement dated as of the Effective Date (the “Purchase Agreement”).  Capitalized terms used and not defined herein shall have the meaning ascribed thereto in the Purchase Agreement.
B.Subject to the terms and conditions of the Purchase Agreement, Seller Parties have agreed to assign all of their respective right, title and interest in, to and under the Assumed Contracts, to Buyer, and Buyer has agreed to assume and perform certain Liabilities under the Assumed Contracts as set forth herein. 
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do agree as follows:
1.Assignment and Assumption of Assumed Contracts.  Seller Parties, to the extent permitted by applicable law, hereby assign to Buyer all of Seller Parties' right, title and interest in, to and under the Assumed Contracts and Buyer hereby assumes and agrees to pay, perform, fulfill and otherwise discharge when due all Liabilities relating to or arising from an Assumed Contract, but only to the extent such Liabilities do not relate to or arise from (i) a breach or failure to perform when due any of the terms of the Assumed Contracts prior to the Closing Date or (ii) any action, omission or occurrence taking place prior to the Closing Date and resulting in any Liability under such Assumed Contracts.  
2.No Other Assumption.  Buyer does not assume any of the Retained Liabilities.
3.Binding Effect.  This Agreement shall bind and inure to the benefit of parties hereto and their respective successors and permitted assigns.  No provision of this Agreement is intended to, or shall, confer any third party beneficiary or other rights or remedies upon any person other than the parties hereto.
4.Governing Law.  This Agreement, and any and all claims arising hereunder, shall be governed by, and construed in accordance with, the laws of the State of Florida, without giving effect to principles of conflicts of laws.
5.Further Assurances.  Buyer and Seller Parties shall execute and deliver all such other instruments and agreements and take all such further actions as may be reasonably required to carry out the transactions contemplated by this Agreement.

       EXHIBIT G

6.Execution by Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including .pdf) or other transmission method approved by the receiving party, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

[Signature Page Follows]
    

       EXHIBIT G

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Closing Date.

BUYER:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            
    

SELLER PARTIES:

BAY WALK-IN CLINIC, INC.,
 a Florida corporation

By:                            
Name:                            
Title:                            

SHARON E. STONE

Sign:                             
Print: Sharon E. Stone

       EXHIBIT H

NONCOMPETITION AND CONFIDENTIALITY AGREEMENT
This NONCOMPETITION AND CONFIDENTIALITY AGREEMENT (the “Agreement”), dated effective as of [CLOSING DATE] (the "Effective Date"), is by and between ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Buyer”), and SHARON E. STONE, a resident of the State of Florida (“Owner”).
RECITALS:
A.Pursuant to that certain Asset Purchase Agreement dated as of June 12, 2014 by and among Buyer, Owner and Bay Walk-in Clinic, Inc., a Florida corporation (collectively, "Seller Parties") (the “Purchase Agreement”), on the Effective Date, Seller Parties sold, transferred and assigned, and Buyer purchased, substantially all of the assets used or held for use in connection with the operation of the Business.  Capitalized terms used and not defined herein shall have the meaning ascribed thereto in the Purchase Agreement. 
B.As a condition to Buyer’s entering into the Purchase Agreement, Buyer has required that Owner, among other things, (1) enter into this Agreement, and (2) agree to provide consulting services to Buyer as an independent contractor in order to assist Buyer in the post-Closing operation of the Business ("Consulting Arrangement"),
C.Owner has intimate knowledge of the Business which knowledge, if exploited, directly or indirectly, by Owner in contravention of this Agreement, would seriously, adversely and irreparably affect the ability of the Buyer to realize the benefits of its acquisition and protect and secure, among other things, (1) certain trade secrets of the Business; (2) valuable confidential and professional information of the Business; (3) relationships with existing patients; (4) and the goodwill associated with the Business and Purchased Assets.
NOW THEREFORE, in consideration of the Purchase Price paid to Seller Parties for the Purchased Assets, the covenants, warranties and mutual agreements herein set forth, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties do hereby agree as follows:
1.Acknowledgements.    Owner acknowledges that the covenants contained in this Agreement are an essential part of the Purchase Agreement and that, but for Owner’s agreement to comply with such covenants, Buyer would not have entered into the Purchase Agreement. Owner further acknowledges that the terms and provisions of this Agreement are incorporated by reference into the Purchase Agreement.  

       EXHIBIT H

2.Non-competition; Non-Solicitation.    From the Effective Date and continuing until the third anniversary of the termination of Consulting Arrangement, (but in no event longer than seven years after the Closing Date) (the "Covered Period"), Owner shall, directly or indirectly, for Owner's own account or for others, within a radius of 25 miles of the Centers or any other urgent care, occupational care or walk-in medical center that Buyer or any of its Affiliates opens, acquires, manages or commits (whether or not such commitment is binding) to open, acquire, or manage at any time prior to or during the term of the Consulting Arrangement (each a “Protected Center”) (i) call upon, solicit, divert or take away, any patients, customers or clients seen or treated at any Protected Center, (ii) hire, attempt to hire, contact or solicit with respect to hiring, any employee or independent contractor employed or engaged by Buyer within the 24-month period immediately preceding the expiration of the Covered Period, or (iii) own any interest in, lease, operate, manage, perform services for, extend credit to or otherwise participate in (e.g., as a medical director, owner, lender, employee, officer, consultant or contractor) any urgent care, occupational care or walk-in medical business within a 25 mile radius of a Protected Center.  The foregoing is not intended nor shall it be interpreted to prohibit Owner from referring any patient for any goods or services to any health care center that in Owner’s independent medical judgment is in the best interests of such patient. 
3.Confidentiality.  Owner will hold and keep confidential all Confidential Information (as defined below) to which Owner, at any time shall have become informed, and that Owner will not, directly or indirectly, disclose any Confidential Information to any person, firm, corporation or entity, or use the same, or permit the same to be disclosed or used.  “Confidential Information” as used herein means proprietary information directly relating to Seller Parties or developed exclusively by Seller Parties or developed for the use of Seller Parties or the Business and may include, without limitation, the following types of information regarding Seller Parties or the Business existing as of the date hereof:  corporate information, including business information, plans, strategies, tactics, or policies; marketing information, including strategies, tactics, methods, customer and patient lists, prospects, and market research data; financial data or forecasts; policies or procedures; know-how and ideas; operational information, including trade secrets; and technical information, including designs, drawings and specifications.  Confidential Information is limited to that information which is not generally known to the public (other than as a result of unauthorized disclosure by Seller Parties) or within the industry in which Business is operated. 
4.Non-Disparagement.     Owner will not in any way, directly or indirectly, make any statements, written or verbal, that are defamatory, derogatory, or disparaging about, or that may adversely affect the Business, Buyer or its Affiliates, or any of their shareholders, officers, directors, members, owners, employees, personnel, agents or representatives (collectively, the “Buyer Entities”).  This includes, but is not limited to, making such statements on any internet site, blog or social media page, including Facebook, Google Plus, MySpace, Twitter, LinkedIn, or any other internet site, electronic medium, or any other forum or medium.  This prohibition applies to statements made under false names, anonymously, or through third parties or other business entities.  The terms “derogatory” or “disparaging” as used in this Agreement are intended by the parties to have the broadest possible meaning and are to include any utterances or writings by Owner or at Owner’s instruction, whether or not Owner believes or is of the opinion that such utterances or writings are correct or true, which could be reasonably regarded as tending to deprecate, discredit, demean, lower or diminish the regard or reputation of or otherwise adversely affect the Business or the Buyer Entities as a result.

       EXHIBIT H

5.Compliance.    Owner acknowledges that Owner’s compliance with the terms of this Agreement is necessary for Buyer to realize the benefits of its acquisition and protect and secure, among other things, (1) trade secrets of the Business; (2) valuable confidential and professional information of the Business; (3) relationships with existing patients; and (4) the goodwill associated with the Business and Purchased Assets purchased by Buyer under the Purchase Agreement.  Further, Owner acknowledges and agrees that irreparable injury, for the which the remedy at law would be inadequate, will result to Buyer in the event of a breach of this Agreement.  Accordingly, Owner agrees that Buyer will be entitled, in addition to any other remedies and damages available, including reasonable attorney fees incurred in the enforcement of the covenants and restrictions contained in this Agreement, to an injunction to restrain the violation of the terms of this Agreement.
6.Reasonableness; Severability.  Owner acknowledges and agrees that the restrictions placed on Owner and the rights and remedies conferred on Buyer are reasonable in time, scope, and territory and are fully required to protect the legitimate business interests of Buyer without a disproportionate detriment to Owner.  If any provision of this Agreement shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid or unenforceable (i) such provision shall remain in force and effect to the maximum extent allowable, if any, and (ii) such judgment shall not affect, impair, or invalidate the remainder of this Agreement, but shall be confined in its operation to the provision of this Agreement directly involved in the controversy in which such judgment shall have been rendered, and (iii) and the enforceability or validity of the remaining provisions of this Agreement shall not be affected thereby.  If a court finds that any provision of this Agreement is invalid or unenforceable, but that modification of such provision will make it valid or enforceable, then such provision shall be deemed to be so modified.
7.Miscellaneous.  This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of Florida (without regard to the conflicts of laws principles thereof).  This Agreement embodies the entire agreement and understanding between Buyer and Owner with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and relating to the subject matter hereof.  Except as set forth in Section 6 of this Agreement, this Agreement may not be modified or amended or any term or provision hereof waived or discharged except in writing signed by the party against whom such amendment, modification, waiver, or discharge is sought to be enforced.  All of the terms of this Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of and be enforceable by the parties hereto, the Buyer Entities and their respective successors and assigns. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including .pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

[Signature Pages Follows]

       EXHIBIT H

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

BUYER:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:                            
Title:                            

OWNER:

Sign:                             
Print:  Sharon E. Stone

       EXHIBIT I

          CLOSING CERTIFICATE OF [PARTY1]

            [PARTY1] (“Party1”), hereby certifies, represents and warrants as of [CLOSING DATE] (the “Closing Date”) to [PARTY2] (“Party2”) as follows:
1.Each of the representations, warranties, covenants and agreements, which representations, warranties, covenants and agreements are incorporated herein as though set out in full herein, made by Party1 in that certain Asset Purchase Agreement dated as of April 30, 2014, by and among Party1 and Party2. (the “Purchase Agreement”) (a) were true and correct in all respects on and as of the effective date of the Purchase Agreement, and (b) are true, and correct in all respects, and not breached, as of the Closing Date.
2.Each covenant and obligation of Party1 to be performed prior to or at Closing pursuant to the Purchase Agreement has been performed and all conditions to Closing have been satisfied (unless expressly waived by Party2).
3.The undersigned acknowledges that this Closing Certificate is being delivered to Party2 pursuant to the Purchase Agreement and that Party2 will rely on this Closing Certificate in closing the transactions contemplated by the Purchase Agreement. 

[Signature Page Follows]
    

       EXHIBIT I

IN WITNESS WHEREOF, this Closing Certificate has been executed by [Party 1] as of the Closing Date.

                        
[PARTY 1]:
    

By:                             
Name:                            
Title:                                          

       EXHIBIT J

FLORIDA DEPARTMENT OF STATE
DIVISION OF CORPORATIONS

Attached is a form for filing Articles of Amendment to amend the articles of incorporation of a Florida Profit Corporation pursuant to section 607.1006, Florida Statutes. This is a basic amendment form and may not satisfy all statutory requirements for amending.

A corporation can amend or add as many articles as necessary in one amendment.

		
	•
	The original incorporators cannot be amended.

		
	•
	If amending the name of the corporation, the new name must be distinguishable on the records of the Florida Department of State. A preliminary search for name availability can be made through the Division’s website at www.sunbiz.org. You are responsible for any name infringement that may result from your corporate name selection.

		
	•
	If amending the registered agent, the new agent must sign accepting the appointment and state that he/she is familiar with the obligations of the position.

		
	•
	If amending/adding officers/directors, list titles and addresses for each officer/director.

		
	•
	If amending from a general corporation to a professional corporation, the purpose (specific nature of business) must be amended or added if not contained in the articles of incorporation.

If a section is not being amended, enter N/A or Not Applicable.
The document must be typed or printed and must be legible.

Pursuant to section 607.0123, Florida Statutes, a delayed effective date may be specified but may not be later than the 90th day after the date on which the document is filed.

Filing Fee            $35.00 (Includes a letter of acknowledgment)

Certified Copy (optional)    $8.75

Certificate of Status (optional)    $8.75

Send one check in the total amount made payable to the Florida Department of State.

Please include a letter containing your telephone number, return address and certification requirements, or complete the attached cover letter.
	
			
	Mailing Address
	 
	Street Address

	 
	 
	 

	Amendment Section

	 
	Amendment Section

	Division of Corporations

	 
	Division of Corporations

	P.O. Box 6327

	 
	Clifton Building

	Tallahassee, FL 32314

	 
	2661 Executive Center Circle

	 
	 
	Tallahassee, FL 32301

For further information you may call the Amendment Section at (850) 245-6050

CR2E011 (07/13)

       EXHIBIT J

COVER LETTER

TO:     Amendment Section
Division of Corporations

NAME OF CORPORATION:  Bay Walk-In Clinic, Inc.    

DOCUMENT NUMBER:  K16449    

The enclosed Articles of Amendment and fee are submitted for filing.

Please return all correspondence concerning this matter to the following:

H.Cranston Pope                                        
      Name of Contact Person

Pope & Barloga, P.A.                                    
Firm/Company

P.O. Box 1609                                        
      Address

Panama City, FL 32402                                    
         City/ State and Zip Code

hcp@popebarloga.com                                    
E-mail address: (to be used for future annual report notification)

For further information concerning this matter, please call:

Sharon E. Stone                                                              at  (    850    )     215-3030                
Name of Contact Person            Area Code & Daytime Telephone Number

Enclosed is a check for the following amount made payable to the Florida Department of State:
	
				
	$35 Filing Fee
	o$43.75 Filing Fee &
	o$43.75 Filing Fee &
	o$52.50 Filing Fee

	 
	Certificate of Status
	Certified Copy (Additional copy is enclosed)
	Certificate of Status Certified Copy (Additional Copy
is enclosed)

	
			
	Mailing Address
	 
	Street Address

	 
	 
	 

	Amendment Section

	 
	Amendment Section

	Division of Corporations

	 
	Division of Corporations

	P.O. Box 6327

	 
	Clifton Building

	Tallahassee, FL 32314

	 
	2661 Executive Center Circle

	 
	 
	Tallahassee, FL 32301

CR2E011 (07/13)

       EXHIBIT J

Articles of Amendment
to
Articles of Incorporation
of
Bay Walk-In Clinic, Inc.                            
(Name of Corporation as currently filed with the Florida Dept. of State)

K16449                                    
(Document Number of Corporation (if known)

Pursuant to the provisions of section 607.1006, Florida Statutes, this Florida Profit Corporation adopts the following amendment(s) to its Articles of Incorporation:

		
	A.
	If amending name, enter the new name of the corporation:

[Panama City Seller, Inc.]                                                
The new name must be distinguishable and contain the word “corporation,” “company,” or “incorporated” or the abbreviation “Corp.,” “Inc.,” or Co.,” or the designation “Corp,” “Inc,” or “Co”. A professional corporation name must contain the word “chartered,” “professional association,” or the abbreviation “P.A.”

		
	B.
	Enter new principal office address, if applicable:                                

(Principal office address MUST BE A STREET ADDRESS )
                                                        

                                                        

		
	C.
	Enter new mailing address, if applicable:                                    

(Mailing address MAY BE A POST OFFICE BOX)
                                                        

                                                        

		
	D.
	If amending the registered agent and/or registered office address in Florida, enter  the name of the new registered agent and/or the new registered office address:

Name of New Registered Agent                               

   
(Florida street address)

New Registered Office Address                            , Florida            
          (City)                                                               (Zip Code)

New Registered Agent’s Signature, if changing Registered Agent: 
I hereby accept the appointment as registered agent.  I am familiar with and accept the obligations of the position.

                                                        
Signature of New Registered Agent, if changing

Page 1 of 4

CR2E011 (07/13)

       EXHIBIT J

If amending the Officers and/or Directors, enter the title and name of each officer/director being removed and title, name, and address of each Officer and/or Director being added:
(Attach additional sheets, if necessary)
Please note the officer/director title by the first letter of the office title:
P = President; V= Vice President; T= Treasurer; S= Secretary; D= Director; TR= Trustee; C = Chairman or Clerk; CEO = Chief Executive Officer; CFO = Chief Financial Officer. If an officer/director holds more than one title, list the first letter of each office held. President, Treasurer, Director would be PTD.
Changes should be noted in the following manner. Currently John Doe is listed as the PST and Mike Jones is listed as the V. There is a change, Mike Jones leaves the corporation, Sally Smith is named the V and S. These should be noted as John Doe, PT as a Change, Mike Jones, V as Remove, and Sally Smith, SV as an Add.
Example:
   X Change        PT        John Doe

   X Remove        V        Mike Jones

   X Add            SV        Sally Smith

Type of Action        Title        Name                    Address
(Check One)

		
	1)
	c    Change                                                                        

c    Add                                                                        
c    Remove                                                                        
		
	2)
	c    Change                                                                        

c    Add                                                                        
c    Remove                                                                        
		
	3)
	c    Change                                                                        

c    Add                                                                        
c    Remove                                                                        
		
	4)
	c    Change                                                                        

c    Add                                                                        
c    Remove                                                                        
		
	5)
	c    Change                                                                        

c    Add                                                                        
c    Remove                                                                        
		
	6)
	c    Change                                                                        

c    Add                                                                        
c    Remove                                                                        

Page 2 of 4

CR2E011 (07/13)

       EXHIBIT J

		
	E.
	If amending or adding additional Articles, enter change(s) here:

(Attach additional sheets, if necessary).    (Be specific)

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

		
	F.
	If an amendment provides for an exchange, reclassification, or cancellation of issued shares, provisions for implementing the amendment if not contained in the amendment itself:

(if not applicable, indicate N/A)

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

                                                        

Page 3 of 4

CR2E011 (07/13)

       EXHIBIT J

The date of each amendment(s) adoption:                                , if other than the date this document was signed.

Effective date if applicable:   Date of filing.                                    
(no more than 90 days after amendment file date)

Adoption of Amendment(s)    (CHECK ONE)

x The amendment(s) was/were adopted by the shareholders. The number of votes cast for the amendment(s) by the shareholders was/were sufficient for approval.

c The amendment(s) was/were approved by the shareholders through voting groups. The following statement must be separately provided for each voting group entitled to vote separately on the amendment(s):

“The number of votes cast for the amendment(s) was/were sufficient for approval by

   .”
(voting group)

c  The amendment(s) was/were adopted by the board of directors without shareholder action and shareholder action was not required.

c The amendment(s) was/were adopted by the incorporators without shareholder action and shareholder action was not required.

Dated                                        

Signature                                    
(By a director, president or other officer - if directors or officers have not been selected, by an incorporator - if in the hands of a receiver, trustee, or other court appointed fiduciary by that fiduciary)

Sharon E. Stone                        
(Typed or printed name of person signing)

President                            
(Title of person signing)

Page 4 of 4

CR2E011 (07/13)

       EXHIBIT K

TRANSITION SERVICES AGREEMENT

This TRANSITION SERVICES AGREEMENT (the “Agreement”), dated effective as of [CLOSING DATE], (the "Effective Date"), is by and among ACSH URGENT CARE OF FLORIDA, LLC, a Florida limited liability company (“Buyer”), BAY WALK-IN CLINIC, INC., a Florida corporation (“Seller”), and SHARON E. STONE, an individual resident of the State of Florida (“Owner” and together with the Seller, collectively “Seller Parties”), and for the sole purpose of acknowledging this Agreement, STEVEN J. SAUL, M.D., an individual resident of the State of Florida (“Dr. Saul”).

       EXHIBIT K

RECITALS:
A.Pursuant to that certain Asset Purchase Agreement dated as of [EFFECTIVE DATE] by and among Buyer and Seller Parties (the “Purchase Agreement”), Buyer purchased substantially all of the assets used or held for use in connection with the operation of the Business.  Capitalized terms used and not defined herein shall have the meaning ascribed thereto in the Purchase Agreement. 
B.A material portion of the Seller’s revenue is derived from services rendered pursuant to contracts with Payors in which Dr. Saul is a party.  To increase the likelihood that such contracts remain effective and enforceable throughout the term of this Agreement, Buyer and Seller Parties desire for Dr. Saul to acknowledge this Agreement. 
C.As a condition to Buyer’s entering into the Purchase Agreement, Buyer required that Seller Parties, among other things, enter into this Agreement to avoid any post-Closing disruption to the Business.
NOW THEREFORE, in consideration of the Purchase Price paid to Seller Parties for the Purchased Assets, the covenants, warranties and mutual agreements herein set forth, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties do hereby agree as follows:
ARTICLE 1
OBLIGATIONS OF BUYER
(a)Services. Buyer shall perform all services relating to the general management and administration of the Business (the “Services”), including those relating to business planning, financial management, accounting and bookkeeping, administration, Patient Record maintenance, facilities management, and staffing and scheduling. The Services shall not include, and Buyer shall have no responsibility for, any clinical act required by law to be rendered by licensed healthcare professionals including the rendering of professional medical service to patients.  Nothing in this Agreement shall be interpreted to permit Buyer or any employee or agent of Buyer to perform any act requiring licensure under applicable state law or to in any way influence the professional medical judgment of any Clinical Provider.
(b)Space, Equipment, Personnel and Other Infrastructure.  Buyer shall furnish the space, equipment, personnel, the other infrastructure items set forth in this Section 1.2 below acquired or leased by Buyer pursuant to the Purchase Agreement, and such other items as Buyer and Seller Parties may mutually agree, are reasonably necessary to operate the Business.
(a)    Office Space and Utilities.  Buyer shall lease, license, procure or otherwise arrange for the provision of medical office space (the “Office Space”) to be used, which shall initially be the Centers, in connection with the Business (and all utility services related thereto); provided that Buyer may move, relocate or close either of the Centers from time to time in its sole discretion.
(b)    Equipment.  Buyer shall furnish all medical equipment, office equipment, fixtures and furnishings reasonably necessary for the operation of the Business (collectively, the “Equipment”).  Buyer at its sole cost and expense shall keep and maintain the Equipment in good order and repair, ordinary wear and tear excepted.  Seller Parties shall provide prompt written notice to Buyer of any Equipment which may be in need of repair or replacement.  The Equipment shall remain the sole property of Buyer, and Buyer shall be responsible for the payment of all personal property taxes, license fees, registration fees, assessments, charges, and 

       EXHIBIT K

taxes (municipal, state, and federal) which may now or hereafter be imposed upon the ownership, leasing, renting, sale, possession, or use of the Centers or the Equipment.
(c)    Non-Clinical, Support Personnel.  Buyer shall make available to Sellers each individual hired or engaged by Buyer in connection with the Transactions (which shall not include the Clinical Providers) (the “Support Personnel”).  The Support Personnel shall be subject to Buyer’s instruction and control, and shall act in accordance with Buyer's policies, procedures and performance standards.  Buyer shall be solely responsible for (i) scheduling of individual work hours for the Support Personnel, including with respect to overtime, weekends, holidays and vacations, and (ii) setting and paying the compensation and benefits of the Support Personnel (and withholding all applicable payroll taxes from such compensation and benefits).
(c)Supplies.  Buyer, upon consultation with Sellers, shall furnish all medical and office supplies reasonably necessary for the operation of the Business (“Supplies”).
(d)Right to Subcontract.  Buyer, without the consent of any Seller Party, may subcontract with one or more persons or entities, including any Affiliates of Buyer, to perform all or any portion of Buyer’s obligations in this Agreement.  
(e)Buyer’s Insurance.  Buyer shall obtain and maintain appropriate general liability insurance covering the Purchased Assets and all non-clinical aspects of the Business.

ARTICLE 2
OBLIGATIONS OF SELLER PARTIES
2. 1Clinical Services. Seller Parties shall be solely responsible for all aspects of the diagnostic, therapeutic, and all other healthcare services required by law to be rendered by licensed healthcare professionals at the Centers. 
2. 2Transition Services.  Each Seller Party shall diligently perform all services reasonably requested by Buyer to transition the non-clinical aspects of the Business to Buyer (avoiding to the extent possible, any disruption or interruption to the Business).  Such services will include introducing Buyer, at Buyer’s request, to all vendors, suppliers, employer clients, and other parties with which Seller Parties maintain commercial relationships in connection with the Business.  The consideration payable to Seller Parties pursuant to this Agreement shall be the sole consideration for the services rendered by any Seller Party during the term of this Agreement. 
2. 3Election of Officers.  Sellers shall take all necessary action to cause for a designee of Buyer to be elected as an officer of each Seller.  In their capacity as officers, such designees shall have the power and authority to execute contracts and engage in all other activities related to the Business on behalf of Seller Parties in accordance with this Agreement.
2. 4Licensure.  Seller Parties shall maintain and timely update, as necessary, all federal, state and local licenses, registrations, permits and all other regulatory authorizations necessary or appropriate to perform Seller Parties’ obligations under this Agreement.
2. 5Clinical Provider Employment.  Except as Buyer may agree in writing, Seller Parties shall continue to employ and contract directly with all Clinical Providers named on the Retained Worker List on terms consistent in all respects with those existing immediately prior to the Effective Date.  Seller Parties shall perform all employee record keeping, payroll accounting, including social security and other payroll tax reporting and insurance for the Clinical Providers.  Notwithstanding the foregoing, Seller Parties acknowledge that (i) each Clinical Provider has entered into a written employment agreement with Buyer, which shall become effective immediately upon the termination of this Agreement, and (ii) such contract right is a valuable asset of Buyer, the interference with 

       EXHIBIT K

which will cause significant financial loss to Buyer; and (iii) each Seller Party is a party to a Noncompetition and Confidentiality Agreement with Buyer prohibiting the solicitation of any Clinical Provider for employment or engagement as an independent contractor.
2. 6Clinical Providers
(a)Staffing. Seller Parties shall provide a sufficient number of Clinical Providers during the Centers' regular business hours (as determined from time to time by Buyer upon consultation with Sellers) to meet the overall patient demands without causing any increase in patient wait times at the Centers.  
(b)Physician Qualifications. Seller Parties shall make reasonable efforts to ensure that, each physician among the Clinical Providers at all times during the term of this Agreement meets the following criteria: (i) is qualified and duly licensed to practice medicine in the State of Florida; (ii) holds participating provider status in the Medicare program; (iii) possesses customary narcotics and controlled substances numbers and licenses as required by all federal, state and local laws and regulations to prescribe, dispense and administer narcotics of a like nature to those prescribed, dispensed and administered at the Centers prior to the Effective Date; (iv) complies with applicable state medical licensing requirements pertaining to continuing medical education; (v) complies with any other reasonable requirements as set forth in Buyer’s policies and procedures, rules and regulations and made known to Seller Parties; and (vi) is appropriately credentialed and authorized to seek reimbursement under the Payor Contracts for services rendered.
(c)Clinical Provider Representations. Seller Parties represent and warrant that: (i) no Clinical Provider has ever had his or her license to provide professional healthcare services in any state suspended, revoked or restricted; (ii) no Seller Party or Clinical Provider has ever been reprimanded, sanctioned or disciplined by any licensing board or state or local medical society or specialty board; (iii) no Seller Party or Clinical Provider has ever been excluded from participation in, or sanctioned by, any state or federal health care program, including Medicare or Medicaid; and (iv) no Clinical Provider has ever been denied membership or reappointment of membership on the medical staff of any hospital and no hospital medical staff membership or clinical privileges of any Clinical Provider have ever been suspended, curtailed or revoked for a medical disciplinary cause or reason.  Seller Parties shall promptly notify Buyer upon the occurrence of any event or omission that reasonably could be anticipated to lead to any of the foregoing representations becoming untrue or incorrect.  
(d)Medical Reports.  Seller Parties shall cause the Clinical Providers to timely produce, review and sign a complete written medical report for each patient receiving services at the Centers sufficient to entitle Seller Parties to file complete claims for payment for the services rendered.  
(e)Payor Contracts.  Seller Parties shall maintain, and shall cause Dr. Saul to maintain, all contracts with Payors that are in effect as of the Effective Date.
2. 7Actions Requiring Buyer’s Consent.  Notwithstanding anything herein to the contrary, Seller Parties shall not perform or commit to perform any of the following actions without the prior written consent of Buyer:  
(a)the issuance, redemption, reclassification, recapitalization, transfer, exchange, merger, consolidation, or the consummation of any other action affecting or involving the ownership interests in Sellers or of any security convertible into units of ownership interests in Sellers; 
(b)the employment, engagement, or termination of the service relationship of 

       EXHIBIT K

any existing or new Clinical Provider; 
(c)the  grant, payment, or promise to pay any bonus or increase in the salary or rate of pay of any Service Provider except for normal annual increases consistent as to timing and amount with past practice;
(d)the distribution of any cash, property or assets of Sellers to Triage, Owner or to or to any other party on account of any outstanding securities of Sellers or any other Seller Party; 
(e)the sale, assignment, pledge, lease, exchange, transfer or other disposition of Sellers’ assets or the Purchased Assets, including without limitation a mortgage or other grant of a security interest or lien on any of Sellers’ assets or the Purchased Assets; 
(f)the consummation of any transaction (including the incurrence of indebtedness) or any series of related transactions, or the entering into of any contract, involving aggregate consideration in excess of $1,000; 
(g)the amendment to the organizational documents of Sellers except as may be required in the Purchase Agreement prior to or at Closing; 
(h)the dissolution or liquidation of Seller Parties; or
(i)the extension of any credit or the creation of any indebtedness to or from any Clinical Provider.
2. 8Insurance.  Seller Parties shall maintain professional liability insurance for all Clinical Providers covering the professional services rendered at the Centers at policy limits of not less than $1,000,000 for each occurrence and $3,000,000 in the annual aggregate (“Malpractice Insurance”).  Upon termination of this Agreement, Seller Parties shall either (a) purchase an extended reporting policy covering claims that relate to the professional services provided by the Clinical Providers prior to the termination of this Agreement (“tail policy”) at policy limits of not less than $1,000,000 for each occurrence and $3,000,000 in the annual aggregate, or (b) otherwise adequately provide and carry professional malpractice liability insurance covering claims relating to the professional services rendered prior to the termination of this Agreement.  Seller Parties further agree to provide, at the request of Buyer, evidence of such coverage reasonably satisfactory to Buyer, and to notify Buyer immediately in writing of the cancellation, modification or termination of such insurance coverage.  This Section 2.8 shall survive the termination of this Agreement. 

ARTICLE 3
FINANCIAL MATTERS
3.1Billing and Collection.  Buyer, on behalf of Seller (and indirectly, Dr. Saul), shall exercise reasonable efforts to bill and collect, or arrange for a third party to bill and collect, in a timely manner all professional and other fees attributable to services rendered or goods sold (including the Pharmaceutical Inventory) in the operation of the Business (a) prior to the Effective Date (the “Pre-Closing Receivables”) and (b) during the term of this Agreement (the “Post-Closing Receivables” and together with the Pre-Closing Receivables, collectively, the “Accounts Receivable”).  In connection therewith, Seller Parties hereby appoint Buyer (or its designee) as Seller Parties’ exclusive, true and lawful agent, and Buyer hereby accepts such appointment, for the purposes of billing and collecting the Accounts Receivable.  
3.2Accounts Receivable.  To the extent permitted by applicable law, Seller Parties shall take all necessary action to instruct the financial institutions in which proceeds from the Accounts 

       EXHIBIT K

Receivable are deposited (and shall take no action to limit or discontinue such instructions), to sweep all funds in such account or accounts, on a daily basis, to an account designated in writing by Buyer.  On a monthly basis and at such times as Buyer may reasonably request, Seller Parties shall furnish to Buyer an account statement evidencing all deposits and withdrawals made from such accounts during the applicable period.  Furthermore, to the extent permitted by applicable law, Seller Parties shall cause any proceeds from the Accounts Receivable (a) delivered directly to Seller Parties, (b) deposited into any bank account or lockbox not subject to the preceding instructions, or (c) collected for or on behalf of Seller Parties by any third party during or after the term of this Agreement to be promptly turned over to Buyer, and in any case within five days of receipt.
3.3Application of Payments.  As set forth in the Purchase Agreement, Pre-Closing Receivables shall be the sole and exclusive property of Buyer, and shall not be applied pursuant to this Section 3.3.  Buyer shall apply all funds received on account of the Post-Closing Receivables in the following order: 
(a)First, to pay any refunds, rebates, recoupments, offsets, overpayments, credit balances, returned checks, allowable discounts, contractual adjustments and any other necessary or appropriate amounts due to patients or Payors relating to or arising from the rendering or failure to render healthcare services during the term of this Agreement, and only to the extent such costs and expenses are not Retained Liabilities.
(b)Second, to pay all costs and expenses relating to the employment or engagement of the Clinical Providers, including the salary, bonus, benefits, payroll taxes, including malpractice insurance premiums payable to or on account of the Clinical Providers, but only to the extent such costs and expenses are not Retained Liabilities.  
(c)Third, to reimburse Buyer for all costs and expenses incurred after the Effective Date relating either to the Clinical Providers or the performance of healthcare services by the Clinical Providers at the Centers (but only to the extent such costs and expenses are not Retained Liabilities), including payment for all taxes, assessments, and licensing fees; Pharmaceutical Inventory; locum tenems costs; continuing medical education fees; costs incurred in connection with the Patient Records; the amount due and payable relating to any Advance (as defined in Section 3.4); costs to obtain and maintain in good standing, business and professional licenses, certificates and other necessary documentation to operate the clinical aspects of the Business in a manner consistent with past practices; all other operating expenses incurred in the clinical operation of the Business including those for or relating to electronic medical records, radiology overreads, and medical waste disposal.  
(d)Fourth, to a flat monthly office space license fee payable to Buyer (the “Office Space License Fee”), the cost of which shall be consistent with fair market value for the Office Space and as set forth on monthly invoices substantially in the form of Exhibit A attached hereto (the “Monthly Invoice”).  
(e)Fifth, to a flat, monthly furniture, furnishings and equipment rental fee payable to Buyer (the “Equipment Rental Fee”) in an amount consistent with fair market value for the Equipment and as set forth on the Monthly Invoice.  Seller Parties shall also pay any applicable taxes and other related amounts due in connection with the Equipment Rental Fee.
(f)Sixth, to the extent funds are available after application of subsections (a) through (e) above, to reimburse Buyer to the extent not already reimbursed pursuant to the provisions of Section 3.3 above for all direct and indirect costs and expenses incurred by Buyer in carrying out its obligations under this Agreement (in each case on an accrual basis), including all direct 

       EXHIBIT K

expenses, insurance premiums (other than the malpractice premiums), supply expenses, equipment purchase and lease expenses, leasehold improvement expenses, utilities, cable/internet related expenses, software expenses and services, medical waste disposal expenses, compensation for the Support Personnel, a reasonable allocation of Buyer’s executive management expense and other central overhead costs, security expenses, auditing and tax preparation fees and professional advisor fees, such as accountants and attorneys, and any working capital or additional loans and any other taxes, assessments, costs, fees and expenses incurred by Buyer (collectively, the “Buyer’s Expenses”).
(g)Seventh, to the extent funds are available after application of subsections (a) through (f) above, to pay Buyer a monthly management fee (the “Management Fee”) in an amount equal to the lesser of (i) the Flat Fee (as defined below) or (ii) an amount equal to Sellers’ Net Income (as defined below) for the applicable month.  The Management Fee shall be paid on a monthly basis within 30 days after the end of each calendar month. Buyer shall send in writing, electronically or otherwise the Monthly Invoices to Seller Parties. The parties agree that the Management Fee is fair and equitable, commercially reasonable and consistent with fair market value in exchange for the Services.  For purposes of this Agreement, the “Flat Fee” shall equal $________ and the term “Sellers’ Net Income” means all revenues generated by the Business (on an accrual basis) during the applicable month for which the Management Fee is owed less refunds, rebates, recoupments, offsets, overpayments, credit balances, returned checks, allowable discounts, contractual adjustments and any other necessary or appropriate adjustments due to patients or Payors and, for purposes of this Agreement, less the total payments and expenses actually paid by Seller Parties pursuant to Sections 3.3(a) through (f) above during such month.
3.4Deficit Funding. If at any time during the term of this Agreement, the proceeds from the Post-Closing Receivables are insufficient to satisfy Seller Parties’ payment or reimbursement obligations in this Agreement, Buyer shall advance the Practice an amount equal to such deficit (each, an “Advance”).  Each Advance shall be repaid pursuant to Section 3.3(c) of this Agreement unless mutually agreed by the parties.  
3.5Security Agreement.  To the extent permitted by applicable law, Seller Parties hereby grant to Buyer a security interest in all revenues, Accounts Receivable, contract rights and general intangibles of Seller Parties to secure all indebtedness and obligations of Seller Parties to Buyer arising under or in connection with this Agreement.  Seller Parties shall execute all documents and instruments necessary to evidence and perfect the foregoing security interest promptly upon presentment of such documents or instruments by Buyer.

       EXHIBIT K

ARTICLE 4
STANDARDS OF PRACTICE AND COMPLIANCE WITH LAW
4.1Standards of Practice.  Seller Parties shall operate and conduct all aspects of the Business for which it has responsibility in accordance with applicable law and professional and ethical standards.  Seller Parties shall act in a manner consistent with past practice to cause each Clinical Provider to: (a) interact in a courteous, positive and constructive manner with patients and the Support Personnel; (b) conduct all activities at the Center in compliance with applicable laws and regulations; (c) promote high standards of quality of care, business ethics and integrity; (d) maintain the confidentiality of patient information and protect confidential and proprietary information of Buyer; (e) conduct activities and relationships with others so as to avoid conflicts of interest, in appearance or fact; (f) conduct business transactions with suppliers, contractors, vendors and other third parties at arms-length and free from offers or solicitation of gifts and favors, or other improper inducements; and (g) exercise responsible and reasonable stewardship to preserve and protect the assets and commercial relationships of the Business and make productive and effective use of the resources located at the Center.
4.2Patient Privacy.  Buyer, as a business associate of Sellers, agrees to comply to the extent applicable with all applicable federal, state and local privacy and security laws, including without limitation the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and all implementing regulations issued pursuant thereto, as may be amended from time to time (45 CFR Parts 160-164).  Buyer shall comply with the HIPAA Business Associate Addendum attached hereto as Exhibit B and incorporated herein by reference.
4.3Patient Records and Pharmaceutical Inventory. The parties acknowledge that all Patient Records and Pharmaceutical Inventory was purchased by Buyer pursuant to the Purchase Agreement, and that upon compliance with the applicable rules and regulations pertaining to transfer of such Patient Records and Pharmaceutical Inventory, the Patient Records and Pharmaceutical Inventory shall be transferred to the person identified by Buyer in accordance with the terms of the Purchase Agreement.  The parties shall cooperate in good faith to (a) satisfy such rules and regulations as promptly as possible after the Effective Date, and (b) to cause for the ordinary and efficient transfer of the Patient Records and Pharmaceutical Inventory.  Subject to applicable patient privacy laws, Buyer shall permit Seller Parties to review and copy during and after the termination of this Agreement, at Seller Parties’ sole cost and expense, the Patient Records created prior to the termination of this Agreement, but only (a) during regular business hours, (b) upon reasonable prior written notice, and (c) to the extend required by applicable law.  Seller Parties acknowledge that any patient information reviewed or copied by Seller Parties shall be regarded as confidential in nature of Buyer, and shall be subject to the protections afforded in Article 6 below.  
4.4Discrimination.  Seller Parties shall not differentiate or discriminate in its provision of medical services to patients due to race, color, nation origin, ancestry, religion, sex, marital status, sexual orientation, age, or any other characteristics in violation of any applicable state, federal or local law, or the rules and regulations of Buyer, with respect to such matters. 
4.5Compliance with Health Care Fraud and Abuse Laws.  Neither Seller Parties nor Buyer, to the extent applicable, shall engage in any activity prohibited by any federal, state or local law or regulation relating to the referral or brokering of patients, including without limitation anti-kickback and self-referral prohibitions and limitations, as the same now exist or as they may be subsequently amended or revised.

       EXHIBIT K

4.6No Referrals Required.  Buyer shall neither have nor exercise any control or direction over the number, type, or recipient of patient referrals and nothing in this Agreement shall be construed as directing or influencing such referrals.  Nothing in this Agreement is to be construed to restrict the professional judgment of the Sellers or any Clinical Provider to use or to refer a patient to any medical practice or facility where necessary or desirable in order to provide proper and appropriate treatment or care to a patient or to comply with the wishes of the patient. No part of this Agreement is intended to induce, encourage, solicit, compensate for (either directly or indirectly, on either an in-cash or in-kind basis) or reimburse for referrals of any patients or business, including any patient or business funded in whole or in part by federal or state government programs (i.e., Medicare, Medicaid, TRICARE, etc.). The parties acknowledge that there is no requirement under this Agreement or any other agreement between the parties that any party refer patients or other business to another party or any of their respective Affiliates. No payment made under this Agreement shall be in return for the referral of patients or business, including those paid in whole or in part by federal or state health care programs.
4.7State Law Compliance.  The parties have made all reasonable efforts to ensure that this Agreement complies with the prohibitions against corporate practice of medicine and the splitting of medical fees with non-licensed persons in the State of Florida.  The parties acknowledge that such laws may change, be amended, or a different interpretation of such laws may become applicable and the parties intend to comply with such laws in the event of such occurrences.  Notwithstanding  anything in this Agreement to the contrary, Seller Parties and the Clinical Providers shall have the exclusive authority and control over all aspects of the Business constituting the practice of medicine, while Buyer shall have the sole authority to manage all other aspects of the Business.  Buyer shall not direct, control, attempt to control, influence, restrict or interfere with Sellers or any of the Clinical Providers exercise of independent clinical, medical or professional judgment in providing healthcare or medical related services.

ARTICLE 5
TERM AND TERMINATION
5.1Term.  The term of this Agreement (the “Term”) shall commence the Effective Date and shall continue until the occurrence of an event of termination described in Section 5.2 below.  The Term may be extended by a written agreement signed by both parties.
5.2Termination.  This Agreement shall terminate as follows:
(a)Mutual Consent.  This Agreement may be terminated at any time upon the mutual consent of the parties.
(b)Buyer Termination.  Buyer may terminate this Agreement at any time by delivery of written notice of its intent to terminate to Seller Parties.
(c)Dissolution or Bankruptcy.  This Agreement shall terminate automatically if Buyer or Seller is dissolved or if either Seller Party applies for or consents to the appointment of a receiver, trustee or liquidator of all or a substantial part of its assets, files a voluntary petition in bankruptcy which is not dismissed within 90 days, is adjudicated bankrupt, makes a general assignment for the benefit of its creditors, files a petition or answer seeking reorganization or arrangement with its creditors which filing is not dismissed within 90 days, or admits in writing its inability to pay its debts when due.
(d)Completion of Transition. This Agreement shall terminate automatically upon the delivery of written confirmation by Buyer to Seller Parties of the successful completion 

       EXHIBIT K

of each of the following: 
(i)Buyer’s entry into contracts (each, a “Payor Contract”) under Buyer’s taxpayer identification number with governmental and commercial payors (collectively, the “Payors”) that (A) collectively comprise at least 90% of all Sellers’ Collections (as defined below) in the 12-month period ending on the Effective Date and (B) provide for financial reimbursement at payment rates comparable to or better than those the applicable Seller Party is entitled to receive under such Seller Party’s contract with such Payor. The term “Sellers’ Collections” shall mean all cash collections of Seller Parties attributable to professional medical and other healthcare services rendered in the operation of the Business, but excluding all amounts received (X) directly from a patient, (Y) on account of goods sold to a patient, and (Z) from an employer for services rendered to its employee.  A list of the Payors that made payments comprising Sellers’ Collections, and the amount of Sellers’ Collections attributable to each Payor shall be set forth on Schedule 5.2(c);
(ii)Each Clinical Provider named in the Retained Worker List who accepted employment with or engagement by Buyer is appropriately credentialed (to the extent necessary) under each Payor Contract and is authorized to bill for services rendered thereunder; and
(iii)Buyer has obtained all permits, licenses, approvals, certificates, consents and other authorizations by any governmental authority it determines, in its sole discretion, to be necessary to independently operate the Business.
5.3Effect of Termination.  Upon termination of this Agreement, neither party shall have any further obligations under this Agreement, except that: (a) the parties’ obligations accruing prior to the date of termination shall survive the expiration or termination of this Agreement; (b) a final expense reconciliation shall be performed and agreed upon as promptly as possible after the termination; and (c) the parties’ obligations and covenants set forth in this Agreement that expressly continue beyond the term of this Agreement (including Seller Parties obligation to turn over proceeds received on account of Accounts Receivable) shall survive the expiration or termination of this Agreement, including, the obligations and covenants set forth in this Article 5.  Upon Buyer’s request, and subject to any written agreement to the contrary, Seller Parties’ license to occupy the Centers shall terminate and Seller Parties shall immediately vacate the Centers.

ARTICLE 6
MISCELLANEOUS
6.1Buyer’s Confidential Information.  Seller Parties acknowledge that during the course of their relationship with Buyer, Seller Parties may become acquainted with certain of Buyer’s Confidential Information (as defined below).  In recognition of the foregoing and in addition to any other requirements of confidentiality under applicable law, Seller Parties hereby agree to hold all Buyer’s Confidential Information in strict confidence during the term of this Agreement and for an additional five (5) years thereafter, by using the same degree of care, but in no event less than a reasonable standard of care, as Seller Parties use with respect to their own information of like importance, and shall use such Buyer’s Confidential Information solely in their performance under the terms of this Agreement.  For purposes of this Agreement, “Buyer’s Confidential Information” shall mean any and all information, know-how and data, technical or non-technical, whether written, oral, electronic, digital, graphic or otherwise of Buyer that is reasonably considered or treated as confidential and proprietary, and shall include, all  business methods; facilities and locations; billing 

       EXHIBIT K

policies, procedures, processes and records; any records, memoranda and correspondences dealing with the Business; financial, pricing and operational information, including all insurance records; internal memoranda, emails or correspondence; form agreements, checklists or compliance materials; contracts or agreements executed by or on behalf of Buyer with any person or entity; information regarding business relationships with any third party; suppliers, marketing, and other information, all relating to or useful in the Business and which have not been disclosed to the general public; this Agreement and any agreements contemplated hereby;  operational and business systems, policies and procedures;  business strategies; business opportunities; customer and patient lists and information; research and technical information; outcomes and related data; and intellectual property, know-how and trade secrets. 
6.2Trade Secrets; Exclusive Property of Buyer; Return of Documents; Survivability.  Seller Parties agree and acknowledge that the Buyer’s Confidential Information, as such may exist from time to time, constitutes valuable, confidential, special and unique assets of Buyer.  Nothing in this Agreement is intended to or shall be interpreted as diminishing or otherwise limiting Buyer’s rights under applicable law to protect its trade secrets and Buyer’s Confidential Information.  The documents relating to the business of Buyer, including all of Buyer’s Confidential Information, are and shall remain the exclusive property of Buyer.  Seller Parties shall return all such documents (including any copies thereof) to Buyer immediately upon the termination of this Agreement. Each Seller Party understands and agrees that its obligations and duties under this Article 6 shall survive the termination (for any reason) of this Agreement.  
6.3Remedies.  Seller Parties agree that a breach of this Article 6 by Seller Parties, their Affiliates and/or any of their officers, directors, governors, owners, employees, agents or representatives would cause irreparable damage and harm that could not be compensated for by monetary damages.  Accordingly, in the event of the breach or imminently threatened breach of this Article 6, Buyer, in addition to and not in limitation of its right to receive monetary damages or pursue other rights and remedies available under this Agreement or at law or in equity, shall be entitled to injunctive relief from a court of competent jurisdiction, without requirement of posting of bond or other surety or showing actual damages
6.4Dispute Resolution.  Except for equitable remedies, upon any disagreement, dispute or claim arising out of or relating to this Agreement (each, a “Dispute”), either party may deliver written notice (the “Dispute Notice”) to the other describing the nature of the Dispute.  Promptly following the delivery of the Dispute Notice, the parties shall meet and confer in good faith and use their reasonable best efforts to reach an agreement for the resolution of the Dispute.  If the parties are unable to resolve the Dispute within 30 days after delivery of the Dispute Notice, the Dispute shall be resolved by binding arbitration before one arbitrator pursuant to the then-applicable rules of the American Health Lawyers Association. Arbitration proceedings shall be held in Dallas, Texas.  The parties may, if they are able to do so, agree upon the arbitrator; otherwise, an arbitrator shall be selected in accordance with the American Health Lawyers Association Alternate Dispute Resolution Services Rules of Procedure for Arbitration. No one shall serve as arbitrator who is in any way financially interested in this Agreement or in the affairs of either party or its Affiliates. Each party shall pay its own expenses of arbitration and one-half of the expenses of the arbitrator. If any position by any party under this Agreement, or any defense or objection to such position, is deemed by the arbitrator to have been unreasonable, the arbitrator shall assess, as part of the award against the unreasonable party or reduce the award to the unreasonable party, all or part of the arbitration expenses (including reasonable attorneys’ fees) of the other party and of the arbitrator 

       EXHIBIT K

with respect to such unreasonable position.
6.5Responsibility For Own Acts; Cooperation By Parties In Defense.  Each party shall be responsible for its own acts or omissions in any and all claims, liabilities, injuries, suits, demands and expenses of all kinds which may result or arise out of any alleged malfeasances or neglect caused by or alleged to have been caused by either party, its employees or representatives, in the performance or omission of any act or responsibility of either party in this Agreement.  In the event a claim is made against both parties, it is the intent of both parties to reasonably cooperate in the defense of such claim and to cause their insurers to do the same.  However, both parties shall have the right to take any actions they believe necessary to protect their own interests.  This duty of each party to be responsible for its own acts is intended to be in addition to any common law rights to contribution or indemnification existing under applicable law which one party may have against the other.  
6.6Independent Contractors.  Seller Parties and Buyer are independent contractors, and as such they shall remain professionally and economically independent of the other.  Buyer and Seller Parties are not, and shall not be deemed to be, joint venturers, partners, employees or agents of each other.  Except as set forth herein or with the other party’s written consent, the parties shall have no authority to bind the other; and then only insofar as such authority is conferred herein or by such express written consent.  None of the parties nor any of their Affiliates, employees or agents shall have any claim under this Agreement or otherwise against any other party to this Agreement for workers’ compensation, unemployment compensation, vacation pay, sick leave, retirement benefits, Social Security benefits, disability insurance benefits, unemployment insurance benefits, or any other employee benefits solely by reason of this Agreement.  None of the parties shall withhold, on behalf of any other party or any of its employees, any sums for income tax, unemployment insurance, Social Security or any other purposes.
6.7Notices.  All notices, demands, requests, consents, reports, approvals or other communications which may be or are required to be given, served, or sent pursuant to this Agreement shall be in writing and shall be mailed in the manner set forth in the Purchase Agreement unless a different delivery or transmission method is expressly set forth for the particular communication in this Agreement. 
6.8Successors and Assigns.  All of the terms and provisions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto; provided, however, that no party hereto may assign any of its rights or delegate any of its duties under this Agreement without the prior written consent of the other party, except that Buyer may assign any of its rights or delegate any of its duties under this Agreement to any Affiliate of Buyer.
6.9Governing Law.  This Agreement, the rights and obligations hereunder, and any claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the State of Florida.
6.10Construction. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  Unless otherwise expressly provided herein, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time may be amended, modified or supplemented, including (in the case of agreements or instruments) by waiver 

       EXHIBIT K

or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.  
6.11Severability.  If any part of any provision of this Agreement or any other agreement, document or writing given pursuant to or in connection with this Agreement shall be invalid or unenforceable under applicable law, said part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining provisions of this Agreement.
6.12Amendment.  This Agreement may not be amended, altered or modified except by an instrument in writing duly executed by the parties hereto.
6.13Entire Agreement.  This Agreement, and the agreements, instruments and documents specifically executed or given in connection with this Agreement, constitute the entire agreement between the parties with respect to the subject matters described herein, and supersede all prior oral or written agreements, commitments or understandings with respect to the matters provided for herein. Notwithstanding the foregoing, if and to the extent any term or condition of this Agreement conflicts or is inconsistent with any terms or conditions of the Purchase Agreement, then the terms and conditions of the Purchase Agreement shall control.
6.14Headings.  Article headings and captions contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof.
6.15Waiver.  Any waiver of any term, covenant or condition of this Agreement by any party shall not be effective unless set forth in a writing signed by the party granting such waiver, and in no event shall any such waiver be deemed to be a continuing waiver or a waiver of any other term, covenant or condition of this Agreement.
6.16Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same agreement.  Signatures sent by facsimile or electronic transmission shall be deemed to be originals for all purposes of this Agreement.
6.17Additional Documents.  Each party agrees to execute any document or documents that may be requested from time to time by the other party to implement or complete such party’s or parties’ obligations pursuant to this Agreement and to otherwise cooperate fully with such other party in connection with the performance of such party’s or parties’ obligations under this Agreement.

[Signature page follows.]

       EXHIBIT K

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

BUYER:

ACSH URGENT CARE OF FLORIDA, LLC, 
a Florida limited liability company

By:                            
Name:    Matthew D. Thompson
Title:    Chief Financial Officer
    

SELLER PARTIES:

BAY WALK-IN CLINIC, INC.,
 a Florida corporation

By:                            
Name:    Sharon E. Stone
Title:                            

SHARON E. STONE

Sign:                             
Print: Sharon E. Stone

For the sole purpose of acknowledging this Agreement: 

Sign:                                                    
Print:  Steven J. Saul, M.D.exhibit_4-1.htm

Exhibit 4.1

 

 

 

 

 

GENERAL FINANCE CORPORATION

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Trustee

 

 

 

 

 

 

 

 

 

INDENTURE

 

 

Dated as of June 18, 2014

 

 

SENIOR DEBT SECURITIES

 

 

 

 

 

  

  

  

TABLE OF CONTENTS

 

Page

	
ARTICLE I

	
DEFINITIONS AND INCORPORATION BY REFERENCE 

	
1

 

	
  

	
Section 1.1.

	
Definitions 

	
1

 

	
  

	
Section 1.2.

	
Other Definitions 

	
6

 

	
  

	
Section 1.3.

	
Incorporation by Reference of Trust Indenture Act 

	
7

 

	
  

	
Section 1.4.

	
Rules of Construction 

	
7

 

	
ARTICLE II

	
THE SECURITIES 

	
8

 

	
  

	
Section 2.1.

	
Form, Dating and Terms 

	
8

 

	
  

	
Section 2.2.

	
Denominations 

	
11

 

	
  

	
Section 2.3.

	
Forms Generally 

	
11

 

	
  

	
Section 2.4.

	
Execution, Authentication, Delivery and Dating 

	
11

 

	
  

	
Section 2.5.

	
Registrar and Paying Agent 

	
13

 

	
  

	
Section 2.6.

	
Paying Agent to Hold Money in Trust 

	
14

 

	
  

	
Section 2.7.

	
Holder Lists 

	
14

 

	
  

	
Section 2.8.

	
Transfer and Exchange 

	
14

 

	
  

	
Section 2.9.

	
Mutilated, Destroyed, Lost or Wrongfully Taken Securities 

	
15

 

	
  

	
Section 2.10.

	
Outstanding Securities 

	
16

 

	
  

	
Section 2.11.

	
Cancellation 

	
16

 

	
  

	
Section 2.12.

	
Payment of Interest; Defaulted Interest 

	
16

 

	
  

	
Section 2.13.

	
Temporary Securities 

	
18

 

	
  

	
Section 2.14.

	
Persons Deemed Owners 

	
18

 

	
  

	
Section 2.15.

	
Computation of Interest 

	
18

 

	
  

	
Section 2.16.

	
Global Securities; Book-Entry Provisions 

	
18

 

	
  

	
Section 2.17.

	
CUSIP Numbers, Etc 

	
20

 

	
  

	
Section 2.18.

	
Original Issue Discount and Foreign-Currency Denominated Securities 

	
20

 

	
  

	
ARTICLE IIICOVENANTS21

 

	
  

	
Section 3.1.

	
Payment of Securities 

	
21

 

	
  

	
Section 3.2.

	
Reports 

	
21

 

	
  

	
Section 3.3.

	
Maintenance of Office or Agency 

	
21

 

	
  

	
Section 3.4.

	
Corporate Existence 

	
22

 

	
  

	
Section 3.5.

	
Compliance Certificate 

	
22

 

	
  

	
Section 3.6.

	
Statement by Officers as to Default 

	
22

 

	
  

	
Section 3.7.

	
Additional Amounts 

	
22

 

	
  

	
Section 3.8.

	
Calculation of Original Issue Discount 

	
23

 

	
  

	
ARTICLE IVSUCCESSORS23

 

	
  

	
Section 4.1.

	
Merger, Consolidation or Sale of Assets 

	
23

 

	
ARTICLE V

	
REDEMPTION OF SECURITIES 

	
24

 

	
  

	
Section 5.1.

	
Applicability of Article 

	
24

 

	
  

	
Section 5.2.

	
Election to Redeem; Notice to Trustee 

	
24

 

	
  

	
Section 5.3.

	
Selection by Trustee of Securities to Be Redeemed 

	
24

 

	
  

	
Section 5.4.

	
Notice of Redemption 

	
25

 

	
  

	
Section 5.5.

	
Deposit of Redemption Price 

	
26

 

	
  

	
Section 5.6.

	
Securities Payable on Redemption Date 

	
26

 

	
  

	
Section 5.7.

	
Securities Redeemed in Part 

	
26

 

	
  

	
ARTICLE VIDEFAULTS AND REMEDIES27

 

	
  

	
Section 6.1.

	
Events of Default 

	
27

 

	
  

	
Section 6.2.

	
Acceleration 

	
28

 

	
  

	
Section 6.3.

	
Other Remedies 

	
29

 

	
  

	
Section 6.4.

	
Waiver of Past Defaults 

	
30

 

	
  

	
Section 6.5.

	
Control by Majority 

	
30

 

	
  

	
Section 6.6.

	
Limitation on Suits 

	
30

 

	
  

	
Section 6.7.

	
Rights of Holders to Receive Payment 

	
31

 

	
  

	
Section 6.8.

	
Collection Suit by Trustee 

	
31

 

	
  

	
Section 6.9.

	
Trustee May File Proofs of Claim 

	
31

 

	
  

	
Section 6.10.

	
Priorities 

	
31

 

	
  

	
Section 6.11.

	
Undertaking for Costs 

	
32

 

	
  

	
ARTICLE VIITRUSTEE32

 

	
  

	
Section 7.1.

	
Duties of Trustee 

	
32

 

	
  

	
Section 7.2.

	
Rights of Trustee 

	
34

 

	
  

	
Section 7.3.

	
Individual Rights of Trustee 

	
35

 

	
  

	
Section 7.4.

	
Trustee’s Disclaimer 

	
35

 

	
  

	
Section 7.5.

	
Notice of Defaults 

	
35

 

	
  

	
Section 7.6.

	
Reports by Trustee to Holders 

	
36

 

	
  

	
Section 7.7.

	
Compensation and Indemnity 

	
36

 

	
  

	
Section 7.8.

	
Replacement of Trustee 

	
37

 

	
  

	
Section 7.9.

	
Successor Trustee by Merger 

	
38

 

	
  

	
Section 7.10.

	
Eligibility; Disqualification 

	
39

 

	
  

	
Section 7.11.

	
Preferential Collection of Claims Against Company 

	
39

 

	
  

	
ARTICLE VIIILEGAL DEFEASANCE AND COVENANT DEFEASANCE39

 

	
  

	
Section 8.1.

	
Option to Effect Legal Defeasance or Covenant Defeasance 

	
39

 

	
  

	
Section 8.2.

	
Legal Defeasance and Discharge 

	
39

 

	
  

	
Section 8.3.

	
Covenant Defeasance 

	
40

 

	
  

	
Section 8.4.

	
Conditions to Legal or Covenant Defeasance 

	
40

 

	
  

	
Section 8.5.

	
Deposited Cash and Government Securities to be Held in Trust; Other Miscellaneous Provisions 

	
42

 

	
  

	
Section 8.6.

	
Repayment to Company 

	
42

 

	
  

	
Section 8.7.

	
Reinstatement 

	
42

 

	
  

	
ARTICLE IXAMENDMENTS43

 

	
  

	
Section 9.1.

	
Without Consent of Holders 

	
43

 

	
  

	
Section 9.2.

	
With Consent of Holders 

	
44

 

	
  

	
Section 9.3.

	
Compliance with Trust Indenture Act 

	
46

 

	
  

	
Section 9.4.

	
Revocation and Effect of Consents and Waivers 

	
46

 

	
  

	
Section 9.5.

	
Notation on or Exchange of Securities 

	
46

 

	
  

	
Section 9.6.

	
Trustee To Sign Amendments 

	
47

 

	
ARTICLE X

	
[RESERVED] 

	
47

 

	
  

	
ARTICLE XISATISFACTION AND DISCHARGE47

 

	
  

	
Section 11.1.

	
Satisfaction and Discharge 

	
47

 

	
  

	
ARTICLE XIIMISCELLANEOUS48

 

	
  

	
Section 12.1.

	
Trust Indenture Act Controls 

	
48

 

	
  

	
Section 12.2.

	
Notices 

	
48

 

	
  

	
Section 12.3.

	
Communication by Holders with other Holders 

	
49

 

	
  

	
Section 12.4.

	
Certificate and Opinion as to Conditions Precedent 

	
49

 

	
  

	
Section 12.5.

	
Statements Required in Certificate or Opinion 

	
50

 

	
  

	
Section 12.6.

	
When Securities Disregarded 

	
50

 

	
  

	
Section 12.7.

	
Rules by Trustee, Paying Agent and Registrar 

	
50

 

	
  

	
Section 12.8.

	
Legal Holidays 

	
50

 

	
  

	
Section 12.9.

	
GOVERNING LAW; WAIVER OF JURY TRIAL 

	
51

 

	
  

	
Section 12.10.No Recourse Against Others51

 

	
  

	
Section 12.11.Successors51

 

	
  

	
Section 12.12.Multiple Originals51

 

	
  

	
Section 12.13.Severability51

 

	
  

	
Section 12.14.No Adverse Interpretation of Other Agreements51

 

	
  

	
Section 12.15.Table of Contents; Headings51

 

	
  

	
Section 12.16.Force Majeure51

 

	
  

	
Section 12.17.U.S.A. Patriot Act52

 

 

LEGAL_US_W # 78400525.2

708971587

  

  

  

CROSS-REFERENCE TABLE

 

	
TIA

Section

	  	
Indenture

Section

	
310(a)(1)

	  	
7.10

	
(a)(2)

	  	
7.10

	
(a)(3)

	  	
N.A.

	
(a)(4)

	  	
N.A.

	
(b)

	  	
7.8; 7.10

	
311(a)

	  	
7.11

	
(b)

	  	
7.11

	
312(a)

	  	
2.7

	
(b)

	  	
12.3

	
(c)

	  	
12.3

	
313(a)

	  	
7.6

	
(b)(1)

	  	
7.6

	
(b)(2)

	  	
7.6

	
(c)

	  	
7.6

	
(d)

	  	
7.6

	
314(a)

	  	
3.2; 3.5; 12.2

	
(b)

	  	
N.A.

	
(c)(1)

	  	
12.4

	
(c)(2)

	  	
12.4

	
(c)(3)

	  	
N.A.

	
(d)

	  	
N.A.

	
(e)

	  	
12.5

	
315(a)

	  	
7.1

	
(b)

	  	
7.5; 12.2

	
(c)

	  	
7.1

	
(d)

	  	
7.1

	
(e)

	  	
6.11

	
316(a)(last sentence)

	  	
12.6

	
(a)(1)(A)

	  	
6.5

	
(a)(1)(B)

	  	
6.4

	
(a)(2)

	  	
N.A.

	
(b)

	  	
6.7

	
317(a)(1)

	  	
6.8

	
(a)(2)

	  	
6.9

	
(b)

	  	
2.6

	
318(a)

	  	
12.1

N.A. means Not Applicable.

 

Note:  This Cross-Reference Table shall not, for any purpose, be deemed to be part of this Indenture.

 

 

 

  

  

  

THIS INDENTURE, dated as of June 18, 2014, is entered into by and between GENERAL FINANCE CORPORATION, a Delaware corporation (the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”).

 

W I T N E S S E T H :

 

WHEREAS, the Company may from time to time duly authorize the issue of its unsecured debentures, notes or other evidences of indebtedness to be issued in one or more series (the “Securities”) up to such principal amount or amounts as may from time to time be authorized in accordance with the terms of this Indenture;

WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to provide, among other things, for the authentication, delivery and administration of the Securities; and

WHEREAS, all things necessary to make this Indenture a valid indenture and agreement in accordance with its terms have been done;

NOW, THEREFORE:

In consideration of the premises and the purchases of the Securities by the holders thereof, the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective holders from time to time of the Securities as follows:

 

ARTICLE I                   

 

Definitions and Incorporation by Reference

 

Section 1.1. Definitions.

 

“Additional Amounts” means any additional amounts required by the express terms of a Security or by or pursuant to a Board Resolution, under circumstances specified therein or pursuant thereto, to be paid by the Company with respect to certain taxes, assessments or other governmental charges imposed on certain Holders and that are owing to those Holders.

 

 “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 purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise.  For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

 

“Bankruptcy Law” means Title 11, United States Code or any similar Federal or state law for the relief of debtors.

 

“Board of Directors” means:

 

	
  

	
(1)

	
with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board;

 

	
  

	
(2)

	
with respect to a partnership, the board of directors of the general partner of the partnership;

 

	
  

	
(3)

	
with respect to a limited liability company, the manager, managers, managing member or members or any controlling committee of managers or managing members thereof, as the case may be; and

 

	
  

	
(4)

	
with respect to any other Person, the board or committee of such Person serving a similar function.

 

“Board Resolution” means a copy of a resolution certified by a Vice President, the Secretary or an Assistant Secretary of the applicable Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date of such certification, and delivered to the Trustee.

 

“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in the City of New York and Los Angeles or at a place of payment are authorized by law, regulation or executive order to remain closed. If a payment date is not a Business Day, payment may be made on the next succeeding day that is a Business Day, and no interest shall accrue for the intervening period.

 

“Capital Stock” means:

 

	
  

	
(1)

	
with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, including each class of Common Stock and Preferred Stock of such Person, and all options, warrants or other rights to purchase or acquire any of the foregoing; and

	
  

	
(2)

	
with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person, and all options, warrants or other rights to purchase or acquire any of the foregoing.

“Capitalized Lease Obligation” means, as to any Person, the obligations of such Person under a lease that are required to be classified and accounted for as capital lease obligations under GAAP and, for purposes of this definition, the amount of such obligations at any date shall be the capitalized amount of such obligations at such date, determined in accordance with GAAP, and the stated maturity thereof shall be the date of the last payment of rent or any other amount due under such lease.

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Company” has the meaning ascribed to it in the first introductory paragraph of this Indenture.

 

“Company Order” and “Company Request” mean, respectively, a written order or request signed in the name of the Company by two Officers of the Company, and delivered to the Trustee.

 

“Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

 

“Default” means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default.

 

“Depositary” means, with respect to the Securities of any series issuable or issued in whole or in part in global form, the Person specified pursuant to Section 2.1 hereof as the initial Depositary with respect to the Securities of that series, until a successor shall have been appointed and become such pursuant to the applicable provision of this Indenture, and thereafter “Depositary” shall mean or include that successor.

 

“Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debt.

 

“DTC” means The Depository Trust Company, its nominees and their respective successors and assigns, or such other depositary institution hereinafter appointed by the Company.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect from time to time in the United States.

 

“Global Securities” of any series means a Security of that series that is issued in global form in the name of the Depositary with respect thereto or its nominee.

 

“Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America for the payment of which obligations or guarantee the full faith and credit of the United States of America is pledged.

 

 “Holder” means a Person in whose name a Security is registered in the applicable Securities Register.

 

“Indebtedness” means, with respect to any Person, (i) the principal of and any premium and interest on (a) indebtedness of such Person for money borrowed and (b) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable; (ii) all Capitalized Lease Obligations of such Person; (iii) all obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations and all obligations under any title retention agreement (but excluding trade accounts payable arising in the ordinary course of business); (iv) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction (other than obligations with respect to letters of credit securing obligations (other than obligations described in (i) through (iii) above) entered into in the ordinary course of business of such Person to the extent such letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the third Business Day following receipt by such Person of a demand for reimbursement following payment on the letter of credit); (v) all obligations of the type referred to in clauses (i) through (iv) of other Persons and all dividends of other Persons for the payment of which, in either case, such Person is responsible or liable as obligor, guarantor or otherwise, (vi) all obligations of the type referred to in clauses (i) through (v) of other Persons secured by any Lien on any property or asset of such Person (whether or not such obligation is assumed by such Person), the amount of such obligation being deemed to be the lesser of the value of such property or assets or the amount of the obligation so secured; and (vii) any amendments, modifications, refundings, renewals or extensions of any indebtedness or obligation described as Indebtedness in clauses (i) through (vi) above.

“Indenture” means this Indenture as amended or supplemented from time to time by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental indenture, respectively. The term “Indenture” shall also include the terms of any particular series of Securities established as contemplated by Section 2.1.

 

“Interest Payment Date,” when used with respect to any Security, shall have the meaning assigned to that term in the Security as contemplated by Section 2.1.

 

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

 

       “Maturity” means, with respect to any Security, the date on which the principal of that Security or an installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity thereof, or by declaration of acceleration, call for redemption or otherwise.

 

 “Non-U.S. Person” means a person who is not a U.S. person, as defined in Regulation S.

 

“Obligations” means any principal, premium, if any, interest, penalties, fees, indemnifications, reimbursements, charges, damages and other liabilities payable under the documentation governing any indebtedness.

 

“Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, any Executive Vice President, Senior Vice President, or Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of such Person.

 

“Officers’ Certificate” means, with respect to any Person, a certificate signed by two Officers of the Person, at least one of whom shall be the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer or the Treasurer.

 

“Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable to the Trustee.  The counsel may be an employee of or counsel to the Company or any Subsidiary of the Company.

 

“Original Issue Discount Security” means any Security that provides for an amount less than the principal amount thereof to be due and payable on a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.

 

“Redemption Date” when used with respect to any Security to be redeemed, in whole or in part, means the date fixed for such redemption by or pursuant to this Indenture.

 

“Redemption Price” means, with respect to any Security to be redeemed, the price at which it is to be redeemed pursuant to this Indenture.

 

“Restricted Subsidiary” of any Person means any Subsidiary of such Person which at the time of determination is not an Unrestricted Subsidiary.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” has the meaning ascribed to it in the second introductory paragraph of this Indenture.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Securities Register” means the register of Securities, maintained by the Registrar, pursuant to Section 2.5.

 

“Security Custodian” means, with respect to Securities of a series issued in global form, the Trustee for Securities of that series, as custodian with respect to the Securities of that series, or any successor entity thereto.

 

“Stated Maturity” means, with respect to any installment of interest or principal on any series of indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such indebtedness as of the date of this Indenture, and will not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof.

 

“Subsidiary” with respect to any Person, means:

 

	
  

	
(1)

	
any corporation of which the outstanding Capital Stock having at least a majority of the votes entitled to be cast in the election of directors under ordinary circumstances shall at the time be owned, directly or indirectly, by such Person; or

	
  

	
(2)

	
any other Person of which at least a majority of the voting interest under ordinary circumstances is at the time, directly or indirectly, owned by such Person.

“TIA” or “Trust Indenture Act,” except as otherwise provided in Section 9.3, means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa 77bbbb), as in effect on the date hereof.

 

“Trust Officer” shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

“Trustee” means the Person named as such above until a successor replaces it in accordance with the applicable provisions of this Indenture, and thereafter “Trustee” means each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series means the Trustee with respect to Securities of that series.

 

“Unrestricted Subsidiary” of any Person means:

 

	
  

	
(1)

	
any Subsidiary of the Company that at the time of determination shall be or continue to be designated an Unrestricted Subsidiary by the Board of Directors of the Company in the manner provided below; and

 

	
  

	
(2)

	
any Subsidiary of an Unrestricted Subsidiary.

 

“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to vote generally in the election of the Board of Directors of such Person.

 

Section 1.2. Other Definitions.

 

	
Term

	
Defined in

Section

	
“Agent Members”                                                                                                

	
2.16

	
“Corporate Trust Office”                                                                                                

	
3.3

	
“Covenant Defeasance”                                                                                                

	
8.3

	
“Defaulted Interest”                                                                                                

	
2.12

	
“Event of Default”                                                                                                

	
6.1

	
“Exchange Rate”                                                                                                

	
2.18

	
“Legal Defeasance”                                                                                                

	
8.2

	
“Legal Holiday”                                                                                                

	
12.8

	
“Paying Agent”                                                                                                

	
2.5

	
“protected purchaser”                                                                                                

	
2.9

	
“Registrar”                                                                                                

	
2.5

	
“Special Interest Payment Date”                                                                                                

	
2.12(a)

	
“Special Record Date”                                                                                                

	
2.12(a)

	
“Surviving Entity”                                                                                                

	
4.1

Section 1.3. Incorporation by Reference of Trust Indenture Act

 

.  This Indenture is subject to the mandatory provisions of the TIA which are incorporated by reference in and made a part of this Indenture.  The following TIA terms have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Holder of a Security.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on any series of Securities means the Company and any other obligor on such series of Securities.

 

All other TIA terms used in this Indenture that are defined by the TIA, defined in the TIA by reference to another statute or defined by SEC rules promulgated under the TIA have the meanings assigned to them by such definitions.

 

Section 1.4. Rules of Construction

 

.  Unless the context otherwise requires:

 

(1) a term has the meaning assigned to it;

 

(2) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3) “or” is not exclusive;

 

(4) “including” means including without limitation;

 

(5) words in the singular include the plural and words in the plural include the singular;

 

(6) the principal amount of any noninterest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a balance sheet of the Company dated such date prepared in accordance with GAAP; and

 

(7) provisions apply to successive events and transactions.

 

                    ARTICLE II                      

 

The Securities

 

Section 2.1. Form, Dating and Terms.

 

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more series.  There shall be established in or pursuant to a Board Resolution, and set forth, or determined in the manner provided, in an Officers’ Certificate of the Company or in a Company Order, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series:

 

(1) the title of the Securities of the series (which shall distinguish the Securities of the series from the Securities of all other series);

 

(2) if there is to be a limit, the limit upon the aggregate principal amount of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 2.8, 2.9, 2.13, 2.16, 5.7 or 9.5 and except for any Securities that, pursuant to Section 2.4 or 2.16, are deemed never to have been authenticated and delivered hereunder); provided, however, that unless otherwise provided in the terms of the series, the authorized aggregate principal amount of such series may be increased before or after the issuance of any Securities of the series by a Board Resolution (or action pursuant to a Board Resolution) to such effect;

 

(3) whether any Securities of the series are to be issuable initially in temporary global form and whether any Securities of the series are to be issuable in permanent global form, as Global Securities or otherwise, and, if so, whether beneficial owners of interests in any such Global Security may exchange such interests for Securities of such series and of like tenor of any authorized form and denomination and the circumstances under which any such exchanges may occur, if other than in the manner provided in Section 2.16, and the initial Depositary and Security Custodian, if any, for any Global Security or Securities of such series;

 

(4) the manner in which any interest payable on a temporary Global Security on any Interest Payment Date will be paid if other than in the manner provided in Section 2.12;

 

(5) the date or dates on which the principal of and premium (if any) on the Securities of the series is payable or the method of determination thereof;

 

(6) the rate or rates, or the method of determination thereof, at which the Securities of the series shall bear interest, if any, whether and under what circumstances Additional Amounts with respect to such Securities shall be payable, the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest shall be payable and the record date for the interest payable on any Securities on any Interest Payment Date, or if other than provided herein, the Person to whom any interest on Securities of the series shall be payable;

 

(7) the place or places where, subject to the provisions of Section 3.3, the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series shall be payable;

 

(8) the period or periods within which, the price or prices (whether denominated in cash, securities or otherwise) at which and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have that option, and the manner in which the Company must exercise any such option, if different from those set forth herein;

 

(9) [Reserved]

 

(10) the obligation, if any, of the Company to redeem, purchase or repay Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices (whether denominated in cash, securities or otherwise) at which and the terms and conditions upon which Securities of the series shall be redeemed, purchased or repaid in whole or in part pursuant to such obligation;

 

(11) if other than denominations of $2,000 and any integral multiple of $1,000 in excess thereof, the denomination in which any Securities of that series shall be issuable;

 

(12) if other than Dollars, the currency or currencies (including composite currencies) or the form, including equity securities, other debt securities (including Securities), warrants or any other securities or property of the Company, or any other Person, in which payment of the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series shall be payable;

 

(13) if the principal of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of the series are to be payable, at the election of the Company or a Holder thereof, in a currency or currencies (including composite currencies) other than that in which the Securities are stated to be payable, the currency or currencies (including composite currencies) in which payment of the principal of, premium (if any) and interest on and any Additional Amounts with respect to Securities of such series as to which such election is made shall be payable, and the periods within which and the terms and conditions upon which such election is to be made;

 

(14) if the amount of payments of principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series may be determined with reference to any commodities, currencies or indices, values, rates or prices or any other index or formula, the manner in which such amounts shall be determined;

 

(15) if other than the entire principal amount thereof, the portion of the principal amount of Securities of the series that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 6.2;

 

(16) any additional means of satisfaction and discharge of this Indenture and any additional conditions or limitations to discharge with respect to Securities of the series pursuant to Article VIII or any modifications of or deletions from such conditions or limitations;

 

(17) any deletions or modifications of or additions to the Events of Default set forth in Section 6.1 or covenants of the Company set forth in Article III pertaining to the Securities of the series;

 

(18) any restrictions or other provisions with respect to the transfer or exchange of Securities of the series, which may amend, supplement, modify or supersede those contained in this Article II;

 

(19) if the Securities of the series are to be convertible into or exchangeable for capital stock, other debt securities (including Securities), warrants, other equity securities or any other securities or property of the Company, or any other Person, at the option of the Company or the Holder or upon the occurrence of any condition or event, the terms and conditions for such conversion or exchange;

 

(20) if applicable, that the Securities of the series, in whole or any specified part, shall not be defeasible pursuant to Section 8.2 or Section 8.3 or both such Sections, and, if such Securities may be defeased, in whole or in part, pursuant to either or both such Sections, any provisions to permit a pledge of obligations other than Government Securities (or the establishment of other arrangements) to satisfy the requirements of Section 8.4(1) for defeasance of such Securities and, if other than by a Board Resolution of the Company, the manner in which any election by the Company to defease such Securities shall be evidenced; and

 

(21) any other terms of the series (which terms shall not be prohibited by the provisions of this Indenture).

 

All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to above and (subject to Section 2.3) set forth, or determined in the manner provided, in the Officers’ Certificate or Company Order referred to above or in any such indenture supplemental hereto.

 

If any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action, together with such Board Resolution, shall be set forth in an Officers’ Certificate or certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate or Company Order setting forth the terms of the series.

 

Section 2.2. Denominations

 

.  The Securities of each series shall be issuable in such denominations as shall be specified as contemplated by Section 2.1.  In the absence of any such provisions with respect to the Securities of any series, the Securities of such series denominated in Dollars shall be issuable in denominations of $2,000 and any integral multiples of $1,000 thereof.

 

Section 2.3. Forms Generally

 

.  The Securities of each series shall be in fully registered form and in substantially such form or forms (including temporary or permanent global form) established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto.  The Securities may have notations, legends or endorsements required by law, securities exchange rule, the Company’s certificate of incorporation, bylaws or other similar governing documents, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company).  A copy of the Board Resolution establishing the form or forms of Securities of any series shall be delivered to the Trustee at or prior to the delivery of the Officers’ Certificate or Company Order contemplated by Section 2.4 for the authentication and delivery of such Securities.

 

The definitive Securities of each series shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the Officers executing such Securities, as evidenced by their execution thereof.

 

The Trustee’s certificate of authentication shall be in substantially the following form:

 

“This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Wells Fargo Bank, National Association, as Trustee

By:  _______________________________                                                              

Authorized Signatory”

Section 2.4. Execution, Authentication, Delivery and Dating

 

.  Two Officers of the Company shall sign the Securities on behalf of the Company by manual or facsimile signature.

 

If an Officer of the Company whose signature is on a Security no longer holds that office at the time the Security, is authenticated, the Security shall be valid nevertheless.

 

 A Security shall not be entitled to any benefit under this Indenture or be valid or obligatory for any purpose until authenticated by the manual signature of an authorized signatory of the Trustee, which signature shall be conclusive evidence that the Security has been authenticated under this Indenture.  Notwithstanding the foregoing, if any Security has been authenticated and delivered hereunder but never issued and sold by the Company, and the Company delivers such Security to the Trustee for cancellation as provided in Section 2.11, together with a written statement (which need not comply with Section 12.5 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.

 

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, and the Trustee shall authenticate and deliver such Securities for original issue upon a Company Order for the authentication and delivery of such Securities or pursuant to such procedures acceptable to the Trustee as may be specified from time to time by Company Order. Such order shall specify the amount of the Securities to be authenticated, the date on which the original issue of Securities is to be authenticated, the name or names of the initial Holder or Holders and any other terms of the Securities of such series not otherwise determined. If provided for in such procedures, such Company Order may authorize (1) authentication and delivery of Securities of such series for original issue from time to time, with certain terms (including, without limitation, the Maturity dates or dates, original issue date or dates and interest rate or rates) that differ from Security to Security and (2) may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly authorized agent, which instructions shall be promptly confirmed in writing.

 

If the form or terms of the Securities of the series have been established in or pursuant to one or more Board Resolutions as permitted by Section 2.1, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall receive (in addition to the Company Order referred to above and the other documents required by Section 12.4), and (subject to Section 7.1) shall be fully protected in conclusively relying upon:

 

(a)           an Officers’ Certificate of the Company setting forth the Board Resolution and, if applicable, an appropriate record of any action taken pursuant thereto, as contemplated by the last paragraph of Section 2.1; and

 

(b)           an Opinion of Counsel to the effect that:

 

(i)           the form of such Securities has been established in conformity with the provisions of this Indenture;

 

(ii)           the terms of such Securities have been established in conformity with the provisions of this Indenture;

 

(iii)           that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer or other similar laws in effect from time to time affecting the rights of creditors generally, and the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); and

 

(iv)           that all laws and requirements in respect of the execution and delivery by the Company of such Securities have been complied with.

 

If all the Securities of any series are not to be issued at one time, it shall not be necessary to deliver an Officers’ Certificate and Opinion of Counsel at the time of issuance of each such Security, but such Officers’ Certificate and Opinion of Counsel shall be delivered at or before the time of issuance of the first Security of the series to be issued.

 

The Trustee shall not be required to authenticate such Securities if the Trustee, being advised by counsel, determines that such action may not lawfully be taken or if the issuance of such Securities pursuant to this Indenture would affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner not reasonably acceptable to the Trustee.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. Unless limited by the terms of such appointment, any such authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Company, or an Affiliate of the Company.

 

Each Security shall be dated the date of its authentication.

 

Section 2.5. Registrar and Paying Agent

 

.  The Company shall maintain an office or agency for each series of Securities where Securities of such series may be presented for registration of transfer or for exchange (the “Registrar”) and an office or agency where Securities of such series may be presented for payment (the “Paying Agent”).  The Company shall cause each of the Registrar and the Paying Agent to maintain an office or agency in the United States of America.  The Registrar shall keep a register of the Securities and of their transfer and exchange (the “Securities Register”).  The Company may have one or more co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any additional paying agent.

 

The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent or co-registrar not a party to this Indenture, which shall incorporate the terms of the TIA.  The agreement shall implement the provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee of the name and address of each such agent.  If the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.7.  The Company or any of its Subsidiaries may act as Paying Agent, Registrar, co-registrar or transfer agent.

 

The Company initially appoints the Trustee as Registrar and Paying Agent for the Securities.

 

Section 2.6. Paying Agent to Hold Money in Trust

 

.  By no later than 11:00 a.m. (New York City time) on the date on which any amount or Additional Amounts, if any, in respect of any Security is due and payable, the Company shall deposit with the Paying Agent a sum sufficient in immediately available funds to pay such amount or Additional Amounts, if any, when due.  The Company shall require each Paying Agent (other than the Trustee) to agree in writing that such Paying Agent shall hold in trust for the benefit of the applicable Holders or the Trustee all money held by such Paying Agent for the payment of such amount and Additional Amounts, if any, on the applicable Securities and shall notify the Trustee in writing of any default by the Company in making any such payment.  If the Company or a Subsidiary acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund.  The Company at any time may require a Paying Agent (other than the Trustee) to pay all money held by it to the Trustee and to account for any funds disbursed by such Paying Agent.  Upon complying with this Section 2.6, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money delivered to the Trustee.  Upon any bankruptcy, reorganization or similar proceeding with respect to the Company, the Trustee shall serve as Paying Agent for the Securities.

 

Section 2.7. Holder Lists

 

.  The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders.  If the Trustee is not the Registrar with respect to a series of Securities, or to the extent otherwise required under the TIA, the Company shall furnish to the Trustee, in writing at least five Business Days before each interest payment date with respect to such series of Securities and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders of such series.

 

Section 2.8. Transfer and Exchange.

 

Except as set forth in Section 2.16 or as may be provided pursuant to Section 2.1, when Securities of any series are presented to the Registrar with the request to register the transfer of those Securities or to exchange those Securities for an equal principal amount of Securities of the same series of like tenor and of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements and the requirements of this Indenture for those transactions are met; provided, however, that the Securities presented or surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a written instruction of transfer in form reasonably satisfactory to the Registrar duly executed by the Holder thereof or by his attorney, duly authorized in writing, on which instruction the Registrar can conclusively rely.

 

To permit registrations of transfers and exchanges, the Company shall execute Securities  and the Trustee shall authenticate such Securities at the Registrar’s written request and submission of the Securities (other than Global Securities).  No service charge shall be made to a Holder for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than such transfer tax or similar governmental charge payable on exchanges pursuant to Section 2.13, 5.7 or 9.5).  The Trustee shall authenticate Securities in accordance with the provisions of Section 2.4.  Notwithstanding any other provisions of this Indenture to the contrary, the Company shall not be required to register the transfer or exchange of (a) any Security selected for redemption in whole or in part pursuant to Article V, except the unredeemed portion of any Security being redeemed in part or (b) any Security during the period beginning 15 Business Days before the mailing of notice of any offer to repurchase Securities of the series required pursuant to the terms thereof or of redemption of Securities of a series to be redeemed and ending at the close of business on the date of mailing.

 

Section 2.9. Mutilated, Destroyed, Lost or Wrongfully Taken Securities

 

.  If a mutilated Security is surrendered to the Registrar or if the Holder of a Security claims that the Security has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security with respect to such series if the requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Holder (a) satisfies the Company or the Trustee within a reasonable time after such Holder has notice of such loss, destruction or wrongful taking and the Registrar does not register a transfer prior to receiving such notification, (b) makes such request to the Company or Trustee prior to the Security being acquired by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any other reasonable requirements of the Trustee.  Such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar and any co-registrar from any loss which any of them may suffer if a Security is replaced, and, in the absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser, the Company shall execute and, upon a Company Order, the Trustee shall authenticate and make available for delivery, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or wrongfully taken Security, a new Security of like tenor and principal amount, bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or wrongfully taken Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security of such series, pay such Security.

 

Upon the issuance of any new Security under this Section 2.9, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) in connection therewith.

 

Every new Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost or wrongfully taken Security shall constitute an original additional contractual obligation of the Company and any other obligor upon the Securities of such series, whether or not the mutilated, destroyed, lost or wrongfully taken Security shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Securities of such series duly issued hereunder.

 

The provisions of this Section 2.9 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or wrongfully taken Securities.

 

Section 2.10. Outstanding Securities

 

.  Securities outstanding at any time are all Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those paid pursuant to Section 2.9 and those described in this Section 2.10 as not outstanding.  A Security ceases to be outstanding in the event the Company or a Subsidiary of the Company holds the Security, provided, however, that (i) for purposes of determining which are outstanding for consent or voting purposes hereunder, the provisions of Section 12.6 shall apply and (ii) in determining whether the Trustee shall be protected in making a determination whether the Holders of the requisite principal amount of outstanding Securities are present at a meeting of Holders of Securities for quorum purposes or have consented to or voted in favor of any request, demand, authorization, direction, notice, consent, waiver, amendment or modification hereunder, or relying upon any such quorum, consent or vote, only Securities which a Trust Officer of the Trustee actually knows to be held by the Company or an Affiliate of the Company shall not be considered outstanding.

 

If a Security is replaced pursuant to Section 2.9, it ceases to be outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a protected purchaser.

 

If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a Redemption Date or maturity date money sufficient to pay all amounts and Additional Amounts, if any, payable on that date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case may be, and the Paying Agent is not prohibited from paying such money to the Holders on that date pursuant to the terms of this Indenture, then on and after that date such Securities (or portions thereof) cease to be outstanding and interest on them ceases to accrue.

 

Section 2.11. Cancellation

 

.  The Company at any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment.  The Trustee and no one else shall cancel all Securities surrendered for registration of transfer, exchange, payment or cancellation and dispose of such Securities in accordance with its internal policies (subject to the record retention requirements of the Exchange Act), and certification of their cancellation shall be delivered to the Company promptly upon receipt by the Trustee of a Company Request.  The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation for any reason other than in connection with a transfer or exchange.

 

Section 2.12. Payment of Interest; Defaulted Interest

 

.  Unless otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, interest and Additional Amounts, if any, on any Security of such series which is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid to the Person in whose name such Security (or one or more predecessor Securities) is registered at the close of business on the regular record date for such interest at the office or agency of the Company maintained for such purpose pursuant to Section 2.8.

 

Unless otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, any interest and Additional Amounts, if any, on any Security of such series which is payable, but is not paid when the same becomes due and payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable to the Holder on the regular record date, and such defaulted interest and (to the extent lawful) interest on such defaulted interest at the rate provided for in the Securities therefor (such defaulted interest and interest thereon herein collectively called “Defaulted Interest”) shall be paid by the Company, at its election in each case, as provided in clause (a) or (b) below:

 

(a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities (or their respective predecessor Securities) are registered at the close of business on a Special Record Date (as defined below) for the payment of such Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security and the date (not less than 30 days after such notice) of the proposed payment (the “Special Interest Payment Date”), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a record date (the “Special Record Date”) for the payment of such Defaulted Interest, which date shall be not more than 15 days and not less than 10 days prior to the Special Interest Payment Date and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company of such Special Record Date, and in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date and Special Interest Payment Date therefor to be given in the manner provided for in Section 12.2, not less than 10 days prior to such Special Record Date.  Notice of the proposed payment of such Defaulted Interest and the Special Record Date and Special Interest Payment Date therefor having been so given, such Defaulted Interest shall be paid on the Special Interest Payment Date to the Persons in whose names the Securities (or their respective predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (b).

 

(b) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

(c) The Trustee shall not at any time be under any duty or responsibility to any Holder to determine the Defaulted Interest, or with respect to the nature, extent, or calculation of the amount of Defaulted Interest owed, or with respect to the method employed in such calculation of the Defaulted Interest.

 

Subject to the foregoing provisions of this Section 2.12, each Security delivered under this Indenture upon registration of, transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest and Additional Amounts, if any, each as accrued and unpaid, and to accrue, which were carried by such other Security.

 

Section 2.13. Temporary Securities

 

.  Until definitive Securities of any series are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities of such series.  Temporary Securities shall be substantially in the form of definitive Securities, but may have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Securities in exchange for temporary Securities.  Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities.

 

Section 2.14. Persons Deemed Owners

 

.  The Company, the Trustee, any Agent and any authenticating agent may treat the Person in whose name any Security is registered as the owner of that Security for the purpose of receiving payments of principal of, premium (if any) or interest on, or any Additional Amounts with respect to, that Security and for all other purposes.  None of the Company, the Trustee, any Agent or any authenticating agent shall be affected by any notice to the contrary.

 

Section 2.15. Computation of Interest

 

.  Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Section 2.16. Global Securities; Book-Entry Provisions

 

.  If Securities of a series are issuable in global form as a Global Security, as contemplated by Section 2.1, then, notwithstanding clause (11) of Section 2.1 and the provisions of Section 2.2, any such Global Security shall represent those of the outstanding Securities of that series as shall be specified therein and may provide that it shall represent the aggregate amount of outstanding Securities of that series from time to time endorsed thereon and that the aggregate amount of outstanding Securities of that series represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges, transfers or redemptions.  Any endorsement of a Global Security to reflect the amount, or any increase or decrease in the amount, of outstanding Securities of that series represented thereby shall be made by the Trustee (i) in such manner and upon instructions given by such Person or Persons as shall be specified in that Security or in a Company Order to be delivered to the Trustee pursuant to Section 2.4 or (ii) otherwise in accordance with written instructions or such other written form of instructions as is customary for the Depositary for that Security, from that Depositary or its nominee on behalf of any Person having a beneficial interest in that Global Security.  Subject to the provisions of Section 2.4 and, if applicable, Section 2.13, the Trustee shall deliver and redeliver any Security in permanent global form in the manner and upon written instructions given by the Person or Persons specified in that Security or in the applicable Company Order.  With respect to the Securities of any series that are represented by a Global Security, the Company authorizes the execution and delivery by the Depositary appointed with respect to that Global Security.  Any Global Security may be deposited with the Depositary or its nominee, or may remain in the custody of the Trustee or the Security Custodian therefor pursuant to a FAST Balance Certificate Agreement or similar agreement between the Trustee and the Depositary.  If a Company Order has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Security in global form shall be in writing but need not comply with Section 12.5 and need not be accompanied by an Opinion of Counsel.

 

Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary, or the Trustee or the Security Custodian as its custodian, or under that Global Security, and the Depositary may be treated by the Company, the Trustee or the Security Custodian and any agent of the Company, the Trustee or the Security Custodian as the absolute owner of that Global Security for all purposes whatsoever.  Notwithstanding the foregoing, (i) the registered holder of a Global Security of any series may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action that a Holder of Securities of that series is entitled to take under this Indenture or the Securities of that series and (ii) nothing herein shall prevent the Company, the Trustee or the Security Custodian or any agent of the Company, the Trustee, or the Security Custodian from giving effect to any written certification, proxy or other authorization furnished by the Depositary or shall impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a beneficial owner of any Security.

 

Notwithstanding Section 2.8, and except as otherwise provided pursuant to Section 2.1, transfers of a Global Security shall be limited to transfers of that Global Security in whole, but not in part, to the Depositary, its successors or their respective nominees.  Interests of beneficial owners in a Global Security may be transferred in accordance with the rules and procedures of the Depositary.  Securities of any series shall be transferred to all beneficial owners of a Global Security of that series in exchange for their beneficial interests in that Global Security if, and only if, either (1) the Depositary notifies the Company that it is unwilling or unable to continue as depositary for such Global Security or the Depositary ceases to be a clearing agency registered under the Exchange Act, at a time when the Depositary is required to be so registered in order to act as depositary, and, in either case, a successor depositary is not appointed by the Company within 90 days of such notice, (2) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of definitive Securities or (3) a Default or Event of Default has occurred and is continuing with respect to the Securities.

 

In connection with any transfer of a portion of the beneficial interests in a Global Security to beneficial owners pursuant to this Section 2.16, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of the Global Security in an amount equal to the principal amount of the beneficial interest in the Global Security to be transferred, and the Company shall execute and the Trustee on receipt of a Company Order for the authentication and delivery of Securities shall authenticate and deliver, one or more Securities of the same series of like tenor and amount.

 

In connection with the transfer of all the beneficial interests in a Global Security of any series to beneficial owners pursuant to this Section 2.16, the Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each  beneficial owner identified by the Depositary in exchange for its beneficial interest in the Global Security, an equal aggregate principal amount of Securities of that series of authorized denominations.

 

Neither the Company, nor the Trustee will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, Securities by the Depositary, or for maintaining, supervising or reviewing any records of the Depositary relating to those Securities, or for any other actions taken or not taken by the Depositary.  Neither the Company nor the Trustee shall be liable for any delay by the related Global Security Holder or the Depositary in identifying the beneficial owners, and each such Person may conclusively rely on, and shall be protected in conclusively relying on, instructions from that Global Security Holder or the Depositary for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the Securities to be issued).

 

The provisions of the last sentence of the third paragraph of Section 2.4 shall apply to any Global Security if that Global Security was never issued and sold by the Company and the Company delivers to the Trustee the Global Security together with written instructions (which need not comply with Section 12.5 and need not be accompanied by an Opinion of Counsel) with regard to the cancellation or reduction in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of the third paragraph of Section 2.4.

 

Notwithstanding the provisions of Sections 2.3 and 2.12, unless otherwise specified as contemplated by Section 2.1 with respect to Securities of any series, payment of principal of and premium (if any) and interest on and any Additional Amounts with respect to any Global Security shall be made to the Person or Persons specified therein.

 

Section 2.17. CUSIP Numbers, Etc

 

.  The Company in issuing the Securities of any series may use CUSIP numbers (if then generally in use) and, if so, the Trustee shall use CUSIP, ISIN and Common Code numbers in notices of redemption as a convenience to Holders of Securities of such series; provided, however, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities of such series or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities of such series, and any such redemption shall not be affected by any defect in or omission of such numbers.  The Company shall promptly notify the Trustee in writing of any change in the CUSIP, ISIN and Common Code numbers.

 

Section 2.18. Original Issue Discount and Foreign-Currency Denominated Securities

 

.  In determining whether the Holders of the required principal amount of outstanding Securities have concurred in any direction, amendment, supplement, waiver or consent, unless otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, (a) the principal amount of an Original Issue Discount Security of such series shall be the principal amount thereof that would be due and payable as of the date of that determination upon acceleration of the Maturity thereof pursuant to Section 6.2, and (b) the principal amount of a Security of such series denominated in a foreign currency shall be the Dollar equivalent, as determined by the Company by reference to the noon buying rate in The City of New York for cable transfers for that currency, as that rate is certified for customs purposes by the Federal Reserve Bank of New York (the “Exchange Rate”) on the date of original issuance of that Security, of the principal amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent, as determined by the Company by reference to the Exchange Rate on the date of original issuance of that Security, of the amount determined as provided in (a) above), of that Security.

 

                             ARTICLE III                                

 

Covenants

 

Section 3.1. Payment of Securities

 

.  The Company shall promptly pay no later than 10:00 a.m. New York City time the principal of, premium, if any, on, and interest and Additional Amounts, if any, on the Securities on the dates and in the manner provided in the Securities and in this Indenture.  Principal, premium, if any, interest and Additional Amounts, if any, shall be considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture immediately available funds sufficient to pay all principal, premium and interest and Additional Amounts, if any, then due and the Trustee or Paying Agent, as the case may be, is not prohibited from paying money to the Holders on that date pursuant to the terms of this Indenture.

 

The Company shall pay interest on overdue principal at the rate specified therefor in the Securities, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful.

 

Notwithstanding anything to the contrary contained in this Indenture, the Company may, to the extent it is required to do so by law, deduct or withhold income or other similar taxes imposed by the United States of America from principal or interest payments hereunder.

 

Section 3.2. Reports

 

.  So long as the Securities of any series are outstanding, the Company shall:

 

(1) furnish to the Trustee, within 15 days after the Company files the same with the SEC, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may from time to time by rules and regulations prescribe) which the Company files with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act; provided, however, that any such information, document or report filed with the SEC pursuant to its Electronic Data Gathering, Analysis and Retrieval (or EDGAR) system or any successor thereto shall be deemed to be filed with the Trustee; provided, however, that the Trustee shall have no responsibility whatsoever to determine whether such filing has occurred; and

 

(2) comply with the other provisions of TIA § 314(a).

 

Provided that, the delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee's receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company's compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

Section 3.3. Maintenance of Office or Agency

 

.  The Company will maintain in the United States of America an office or agency for any series of Securities where such Securities may be presented or surrendered for payment, where, if applicable, the Securities of that series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be served.  The designated corporate trust office of the Trustee at the address of the Trustee specified in Section 12.2 hereof, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the designated corporate trust office of any successor Trustee, or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company (the “Corporate Trust Office”) shall be such office or agency of the Company, unless the Company shall designate and maintain some other office or agency for one or more of such purposes.  The Company will give prompt written notice to the Trustee of any change in the location of any such office or agency.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

 

The Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind any such designation; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the United States of America for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and any change in the location of any such other office or agency.

 

Section 3.4. Corporate Existence

 

.  Subject to Article IV, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence.  This Section 3.4 shall not prohibit or restrict the Company from converting into a different form of legal entity.

 

Section 3.5. Compliance Certificate

 

.  The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of the Company an Officers’ Certificate, one of the signatories of which shall be the principal executive officer, the principal financial officer or the principal accounting officer of the Company, stating that in the course of the performance by the signers of their duties as Officers of the Company they would normally have knowledge of any Default or Event of Default and whether or not the signers know of any Default or Event of Default that occurred during such period.  If they do, the certificate shall describe the Default or Event of Default, its status and what action the Company is taking or proposes to take with respect thereto.  The Company also shall comply with TIA § 314(a)(4).

 

Section 3.6. Statement by Officers as to Default

 

.  So long as Securities of any series are outstanding, the Company shall deliver to the Trustee, as soon as possible and in any event within 5 Business Days after the Company becomes aware of the occurrence of any Event of Default or Default with respect to that series an Officers’ Certificate setting forth the details of such Event of Default or Default and the action which the Company is taking or proposes to take in respect thereof.

 

Section 3.7. Additional Amounts.

 

If the Securities of a series expressly provide for the payment of Additional Amounts, the Company will pay to the Holder of any Security of that series Additional Amounts as expressly provided therein. Whenever in this Indenture there is mentioned, in any context, the payment of the principal of or any premium or interest on, or in respect of, any Security of any series or the net proceeds received from the sale or exchange of any Security of any series, that mention shall be deemed to include mention of the payment of Additional Amounts provided for in this Section 3.7 to the extent that, in that context, Additional Amounts are, were or would be payable in respect thereof pursuant to the provisions of this Section 3.7, and express mention of the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where that express mention is not made.

 

Unless otherwise provided pursuant to Section 2.1 with respect to Securities of any series, if the Securities of a series provide for the payment of Additional Amounts, at least ten days prior to the first Interest Payment Date with respect to that series of Securities (or if the Securities of that series will not bear interest prior to Maturity, the first day on which a payment of principal and any premium is made), and at least ten days prior to each date of payment of principal and any premium or interest if there has been any change with respect to the matters set forth in the below-mentioned Officers’ Certificate, the Company shall furnish the Trustee and the Company’s principal Paying Agent or Paying Agents, if other than the Trustee, with an Officers’ Certificate instructing the Trustee and such Paying Agent or Paying Agents whether that payment of principal of and any premium or interest on the Securities of that series shall be made to Holders of Securities of that series who are United States Aliens without withholding for or on account of any tax, assessment or other governmental charge described in the Securities of that series. If any such withholding shall be required, then that Officers’ Certificate shall specify by country the amount, if any, required to be withheld on those payments to those Holders of Securities, and the Company will pay to that Paying Agent the Additional Amounts required by this Section. The Company covenants to indemnify the Trustee and any Paying Agent for and to hold them harmless against any loss, liability or expense reasonably incurred without negligence or bad faith on their part arising out of or in connection with actions taken or omitted by any of them in reliance on any Officers’ Certificate furnished pursuant to this Section 3.7.

 

Section 3.8. Calculation of Original Issue Discount.                                                                If the Securities are issued with original issue discount, the Company shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

 

 

                                ARTICLE IV                                

 

Successors

 

Section 4.1. Merger, Consolidation or Sale of Assets

 

.  The Company shall not consolidate or combine with or merge with or into or, directly or indirectly, sell, assign (excluding any assignment solely as collateral for security purposes under a credit facility but not any outright assignment upon the foreclosure of any such collateral), convey, lease, transfer or otherwise dispose of all or substantially all of its assets to any Person or Persons in a single transaction or through a series of related transactions, unless:

 

(1) the Company shall be the successor or continuing Person or, if the Company is not the successor or continuing Person, the resulting, surviving or transferee Person (the “Surviving Entity”) is a company organized and existing under the laws of the United States, any State thereof or the District of Columbia that expressly assumes all of the Company’s obligations under the Securities and this Indenture pursuant to a supplement hereto executed and delivered to the Trustee;

 

(2) immediately after giving effect to such transaction or series of related transactions, no Event of Default has occurred and is continuing; and

 

(3) the Company or the Surviving Entity shall have delivered to the Trustee an Officers’ Certificate and Opinion of Counsel stating that the transaction or series of related transactions and any supplement hereto complies with the terms of this Indenture and constitutes the legal, valid and binding obligation of the Company or the Surviving Entity, enforceable against it in accordance with its terms.

 

If any consolidation or merger or any sale, assignment, conveyance, lease, transfer or other disposition of all or substantially all of its assets occurs in accordance with the terms hereof, the Surviving Entity shall succeed to, and be substituted for, and may exercise every right and power of the Company under this Indenture with the same effect as if such Surviving Entity had been named as the Company. The Company shall (except in the case of a lease) be discharged from all obligations and covenants under this Indenture and any Securities issued hereunder, and may be liquidated and dissolved.

 

                 ARTICLE V                      

 

Redemption of Securities

 

Section 5.1. Applicability of Article

 

.  Redemption of Securities at the election of the Company or otherwise, as permitted or required by any provision of this Indenture, shall be made in accordance with such provision and (except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series) this Article V.

 

Section 5.2. Election to Redeem; Notice to Trustee

 

.  In case of any redemption of any series of Securities at the election of the Company, the Company shall notify the Trustee in writing at least 45 days prior to such Redemption Date (unless a shorter notice shall be satisfactory to the Trustee) and of the principal amount of Securities to be redeemed and shall deliver to the Trustee such documentation and records as shall enable the Trustee to select the Securities of such series to be redeemed pursuant to Section 5.3.

 

Section 5.3. Selection by Trustee of Securities to Be Redeemed

 

.  If fewer than all of the Securities of any series are to be redeemed at any time, the Trustee will, subject to applicable law, select Securities of any series for redemption as follows:

 

(1) if the Securities are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange on which the Securities are listed; or

 

(2) if the Securities are not listed on any national securities exchange, in accordance with the procedures of DTC.

 

Section 5.4. Notice of Redemption

 

.  Notice of redemption shall be given in the manner provided for in Section 12.2 not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, except that redemption notices may be given more than 60 days prior to a Redemption Date if such notice is issued in connection with a defeasance of the Securities or a satisfaction and discharge of this Indenture.  Notice of any redemption may, at the Company’s discretion, be subject to one or more conditions precedent.  The Trustee shall give notice of redemption in the Company’s name and at the Company’s expense; provided, however, that the Company shall deliver to the Trustee, at least 45 days prior to the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice at the Company’s expense and setting forth the information to be stated in such notice as provided in the following items.

 

All notices of redemption shall state:

 

(1) the Redemption Date;

 

(2) the redemption price and the amount of accrued interest and Additional Amounts, if any, to the Redemption Date payable as provided in Section 5.6;

 

(3) if less than all outstanding Securities are to be redeemed, the identification of the particular Securities (or portion thereof) to be redeemed, as well as the aggregate principal amount of Securities to be redeemed and the aggregate principal amount of Securities to be outstanding after such partial redemption;

 

(4) in case any Securities are is to be redeemed in part only, the notice which relates to such Securities shall state that on and after the Redemption Date, upon surrender of such Securities, the Holder will receive, without charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed;

 

(5) that on the Redemption Date the redemption price (and accrued interest, if any, to the Redemption Date payable as provided in Section 5.6) will become due and payable upon each such Security, or the portion thereof, to be redeemed, and, unless the Company defaults in making the redemption payment, that interest and Additional Amounts, if any, on Securities (or the portions thereof) called for redemption will cease to accrue on and after said date;

 

(6) the place or places where such Securities are to be surrendered for payment of the Redemption Price and accrued interest, if any;

 

(7) the name and address of the Paying Agent;

 

(8) that Securities called for redemption (other than a Global Security) must be surrendered to the Paying Agent to collect the redemption price;

 

(9) the CUSIP, ISIN or Common Code number, and may state that no representation is made as to the accuracy or correctness of the CUSIP, ISIN or Common Code number, if any, listed in such notice or printed on the Securities; and

 

(10) the section of this Indenture and the paragraph of the Securities pursuant to which the Securities are to be redeemed.

 

Any redemption and notice thereof pursuant to this Indenture may, in the Company’s discretion, be subject to the satisfaction of one or more conditions.

 

Section 5.5. Deposit of Redemption Price

 

.  Not later than 10:00 a.m. New York City time on the Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 2.6) an amount of money sufficient to pay the redemption price of, and accrued interest and Additional Amounts, if any, on, all the Securities which are to be redeemed on that date.

 

Section 5.6. Securities Payable on Redemption Date

 

.  Notice of redemption having been given as aforesaid, unless the notice of redemption is subject to one or more conditions precedent which have not been satisfied, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the redemption price therein specified (together with accrued and unpaid interest and Additional Amounts, if any, to the Redemption Date), and from and after such date (unless the Company shall default in the payment of the redemption price and accrued interest and Additional Amounts, if any) such Securities shall cease to bear interest and Additional Amounts, if any.  Upon surrender of any such Security for redemption in accordance with said notice, such Security shall be paid by the Company at the redemption price, together with accrued and unpaid interest and Additional Amounts, if any, to the Redemption Date (subject to the rights of Holders of record on the relevant record date to receive interest and Additional Amounts, if any, due on an interest payment date that is on or prior to the Redemption Date).

 

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest and Additional Amounts, if any, from the Redemption Date at the rate borne by the Securities.

 

Section 5.7. Securities Redeemed in Part

 

.  Any Security which is to be redeemed only in part (pursuant to the provisions of this Article V) shall be surrendered at the office or agency of the Company maintained for such purpose pursuant to Section 2.5 (with, if the Company or the Trustee so require, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and make available for delivery to the Holder of such Security at the expense of the Company, a new Security or Securities, of any authorized denomination as requested by such Holder, in an aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered, provided that each such new Security will be in a principal amount of $1,000 or integral multiple thereof.  No Securities of $1,000 or less may be redeemed in part.

 

                            ARTICLE VI                                

 

Defaults and Remedies

 

Section 6.1. Events of Default

 

.  Unless either inapplicable to a particular series or specifically deleted or modified in or pursuant to the supplemental indenture, Board Resolution, Officers’ Certificate or Company Order establishing such series of Securities or in the form of Security for such series, each of the following constitutes an “Event of Default,” wherever used herein with respect to Securities of any series:

 

(1) the failure to pay any installment of interest or any Additional Amounts on any Security of that series when the same becomes due and payable and the default continues for a period of 30 days;

 

(2) the failure to pay the principal of or any premium on any Security of that series, when such principal becomes due and payable, at maturity, upon redemption or otherwise;

 

(3) a default in the observance or performance of any other covenant or agreement contained in this Indenture applicable to the Securities of that series or in the Securities of that series which default continues for a period of 60 days after the Company receives written notice specifying the default (and demanding that such default be remedied) from the Trustee or the Holders of at least 25% of the outstanding principal amount of the Securities of that series (except in the case of a default with respect to Section 4.1, which will constitute an Event of Default with such notice requirement but without such passage of time requirement);

 

(4) the failure to pay at final maturity (giving effect to any applicable grace periods and any extensions thereof) the stated principal amount of any Indebtedness of the Company or any Restricted Subsidiary of the Company, or the acceleration of the final stated maturity of any such Indebtedness (which acceleration is not rescinded, annulled or otherwise cured within 20 days of receipt by the Company or such Restricted Subsidiary of notice of any such acceleration) if the aggregate principal amount of such Indebtedness, together with the principal amount of any other such Indebtedness in default for failure to pay principal at final stated maturity or which has been accelerated (in each case with respect to which the 20-day period described above has elapsed), aggregates $10.0 million or more at any time;

 

(5) one or more judgments in an aggregate amount in excess of $10.0 million shall have been rendered against the Company or any of its Restricted Subsidiaries and such judgments remain undischarged, unpaid or unstayed for a period of 60 days after such judgment or judgments become final and non-appealable;

 

(6) the Company or any Subsidiary of the Company:

 

(i) commences a voluntary case under any Bankruptcy Law,

 

(ii) consents to the entry of an order for relief against it in an involuntary case,

 

(iii) consents to the appointment of a custodian or receiver of it or for all or substantially all of its property,

 

(iv) makes a general assignment for the benefit of its creditors, or

 

(v) admits in writing its inability to pay its debts as they become due; or

 

(7) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i) is for relief in an involuntary case against the Company or any Subsidiary of the Company;

 

(ii) appoints a custodian or receiver of the Company or any Subsidiary or for all or substantially all of the property of any of the foregoing;

 

(iii) orders the liquidation of the Company or any of its Subsidiaries;  and the order or decree remains unstayed and in effect for 60 consecutive days;

 

(8) the Company fails to deposit any sinking fund payment, when due, in respect of any Security of that series; or

 

(9) any other Event of Default provided in or pursuant to this Indenture with respect to Securities of that series.

 

Section 6.2. Acceleration

 

.  Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of such series, if any Event of Default with respect to any Securities of such series at the time outstanding (other than those of the type described in clause (6) or (7) of Section 6.1) occurs and is continuing, the Trustee may, and at the written direction of the Holders of at least 25% in aggregate principal amount of outstanding Securities of such series shall, declare the principal of all the Securities of that series, together with all accrued and unpaid interest and Additional Amounts, if any, and premium, if any, to be due and payable immediately by notice in writing to the Company and the Trustee specifying the respective Event of Default and that such notice is a notice of acceleration, and the same shall become immediately due and payable.

 

Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, in the case of an Event of Default with respect to such series specified in clause (6) or (7) of Section 6.1 hereof, all outstanding Securities of such series shall become due and payable immediately without further action or notice by the Trustee or the Holders.  Holders may not enforce this Indenture or the Securities except as provided in this Indenture.

 

Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, at any time after a declaration of acceleration with respect to the Securities of such series, the Holders of a majority in principal amount of the Securities of that series then outstanding (by written notice to the Trustee) may, on behalf of the Holders of all the Securities of that series, rescind and cancel such declaration and its consequences if:

 

(1) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction;

 

(2) all existing Defaults and Events of Default with respect to Securities of that series have been cured or waived except nonpayment of principal of or interest on the Securities of that series that has become due solely by reason of such declaration of acceleration;

 

(3) to the extent the payment of such interest is lawful, interest (at the same rate specified in the Securities of such series) on overdue installments of interest and Additional Amounts, if any, and overdue payments of principal which has become due otherwise than by such declaration of acceleration has been paid;

 

(4) the Company has paid the Trustee its compensation and reimbursed the Trustee for its expenses, disbursements and advances; and

 

(5) in the event of the cure or waiver of an Event of Default of the type described in clause (6) or (7) of Section 6.1, the Trustee has received an Officers’ Certificate and Opinion of Counsel that such Event of Default has been cured or waived.

 

Section 6.3. Other Remedies

 

.  If an Event of Default with respect to any series occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of (or premium, if any) or interest or Additional Amounts, if any, on the Securities of such series or to enforce the performance of any provision of the Securities of such series or this Indenture with respect to such series.

 

The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.  No remedy is exclusive of any other remedy.  All available remedies are cumulative.

 

Section 6.4. Waiver of Past Defaults

 

. Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, the Holders of a majority in principal amount of the then outstanding Securities of such series by written notice to the Trustee may, on behalf of the Holders of all the Securities of such series, (a) waive, by their consent (including, without limitation consents obtained in connection with a purchase of, or tender offer or exchange offer for, Securities of such series), an existing Default or Event of Default, with respect to such series and its consequences or compliance with any provisions except (i) a Default or Event of Default in the payment of the principal of, or premium, if any, or interest or Additional Amounts, if any, on a Security of such series or (ii) a Default or Event of Default in respect of a provision that under Section 9.2 cannot be amended without the consent of each Holder affected and (b) rescind any such acceleration with respect to the Securities of such series and its consequences if rescission would not conflict with any judgment or decree of a court of competent jurisdiction.  When a Default or Event of Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any consequent right.

 

Section 6.5. Control by Majority

 

.  With respect to Securities of any series, the Holders of a majority in principal amount of the outstanding Securities of such series may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or, subject to Sections 7.1 and 7.2, that the Trustee determines is unduly prejudicial to the rights of the other Holders or would involve the Trustee in personal liability.  Prior to taking any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking such action.

 

Section 6.6. Limitation on Suits

 

.  Subject to Section 6.7, a Holder of a Security of any series may not pursue any remedy with respect to this Indenture or the Securities of such series unless:

 

(1) such Holder has previously given to the Trustee written notice stating that an Event of Default is continuing with respect to such series;

 

(2) Holders of at least 25% in aggregate principal amount of the outstanding Securities of such series have requested in writing that the Trustee pursue the remedy;

 

(3) such Holders have offered to the Trustee security or indemnity satisfactory to it against any loss, liability or expense;

 

(4) the Trustee has not complied with such request within 60 days after receipt of the request and the offer of security or indemnity; and

 

(5) the Holders of a majority in principal amount of the outstanding Securities of such series have not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with such request within such 60-day period.

 

A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders).

 

Section 6.7. Rights of Holders to Receive Payment

 

.  Notwithstanding any other provision of this Indenture (including, without limitation, Section 6.6), the right of any Holder to receive payment of principal of, premium (if any) or interest or Additional Amounts, if any, when due on the Securities held by such Holder, on or after the respective due dates expressed in the Securities, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder.

 

Section 6.8. Collection Suit by Trustee

 

.  If an Event of Default specified in clauses (1) or (2) of Section 6.1 occurs and is continuing with respect to Securities of any series, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful) with respect to such series and the amounts provided for in Section 7.7.

 

Section 6.9. Trustee May File Proofs of Claim

 

.  The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the Holders allowed in any judicial proceedings relative to the Company, its Subsidiaries or its or their respective creditors or properties and, unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other amounts due the Trustee under Section 7.7.  To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.10. Priorities

 

.  If the Trustee collects any money or property pursuant to this Article VI, it shall pay out the money or property in the following order:

 

FIRST:  to the Trustee and its counsel for amounts due under this Indenture, including payment of all compensation, expenses and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection;

 

SECOND:  to Holders for amounts due and unpaid on the Securities in respect of which or for the benefit of which such money has been collected, for principal, premium, if any, and interest and Additional Amounts, if any, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal, premium, if any, and interest and Additional Amounts, if any, respectively; and

 

THIRD:  to the Company or to such other party as a court of competent jurisdiction may direct.

 

The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.10.  At least 15 days before such record date, the Company shall mail to each Holder and the Trustee a notice that states the record date, the payment date and amount to be paid.

 

Section 6.11. Undertaking for Costs

 

.  In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a suit by the Trustee, a suit by the Company, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in outstanding principal amount of the Securities of any series.

 

                            ARTICLE VII                                

 

Trustee

 

Section 7.1. Duties of Trustee

 

.  (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent Person would exercise or use under the circumstances in the conduct of such Person’s own affairs; provided that if an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise the rights or powers under this Indenture at the request or direction of any of the Holders unless such Holders have offered to the Trustee indemnity or security against loss, liability or expense satisfactory to the Trustee in its sole discretion.

 

(b) Except during the continuance of an Event of Default with respect to the Securities of any series:

 

(1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates, opinions or orders furnished to the Trustee and conforming to the requirements of this Indenture.  However, in the case of any such certificates or opinions which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such certificates and opinions to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(1) this paragraph does not limit the effect of paragraph (b) of this Section 7.1;

 

(2) the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(3) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5.

 

(d) Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.1.

 

(e) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.

 

(f) Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

(g) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers.

 

(h) Every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 7.1 and to the provisions of the TIA.

 

(i) Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the Company.

 

(j) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses (including reasonable attorneys’ fees and expenses) and liabilities that might be incurred by it in compliance with such request or direction.

 

Section 7.2. Rights of Trustee

 

.  Subject to Section 7.1:

 

(a) The Trustee may conclusively rely on any document (whether in its original or facsimile form) reasonably believed by it to be genuine and to have been signed or presented by the proper person.  The Trustee need not investigate any fact or matter stated in the document.

 

(b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate and/or an Opinion of Counsel.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officers’ Certificate and/or Opinion of Counsel.

 

(c) The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.

 

(d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within the rights or powers conferred upon it by this Indenture.

 

(e) The Trustee may consult with counsel of its selection, and the advice or opinion of counsel with respect to legal matters relating to this Indenture and the Securities shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

 

(f) The Trustee is not required to make any inquiry or investigation into facts or matters stated in any document but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit and, if the Trustee determines to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company personally or by agent, in which case the Company shall be responsible for the reasonable expenses of such investigation.

 

(g) The Trustee is not required to take notice and shall not be deemed to have notice of any Default or Event of Default hereunder with respect to any series of Securities, unless a Trust Officer of the Trustee has actual knowledge thereof or has received notice in writing of such Default or Event of Default from the Company or the Holders of at least 25% in aggregate principal amount of the Securities of such series then outstanding and such notice references the Securities and this Indenture, and in the absence of any such notice, the Trustee may conclusively assume that no such Default or Event of Default exists.

 

(h) The Trustee is not required to give any bond or surety with respect to the performance of its duties or the exercise of its powers under this Indenture.

 

(i) In the event the Trustee receives inconsistent or conflicting requests and indemnity from two or more groups of Holders of Securities, each representing less than the aggregate principal amount of Securities outstanding required to take any action thereunder, the Trustee, in its sole discretion may determine what action, if any, shall be taken.

 

(j) The Trustee’s immunities and protections from liability and its right to indemnification in connection with the performance of its duties under this Indenture shall extend to the Trustee’s officers, directors, agents, attorneys and employees and to the Trustee in each of its capacities hereunder.  Such immunities and protections and right to indemnification, together with the Trustee’s right to compensation, shall survive the Trustee’s resignation or removal, the discharge of this Indenture and final payments of the Securities.

 

(k) The permissive right of the Trustee to take actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

 

(l) The Trustee shall have no duty to inquire as to the performance of the Company’s covenants herein.

 

(m)           Any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution.

 

(n)           In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

(o)           The Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

 

Section 7.3. Individual Rights of Trustee

 

.  The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.  Any Paying Agent, Registrar, co-registrar or co-paying agent may do the same with like rights.  However, the Trustee must comply with Sections 7.10 and 7.11.

 

Section 7.4. Trustee’s Disclaimer

 

.  The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement of the Company in this Indenture or in any document issued in connection with the sale of the Securities or in the Securities other than the Trustee’s certificate of authentication.

 

Section 7.5. Notice of Defaults

 

.  If a Default or Event of Default with respect to the Securities of any series occurs and is continuing and if a Trust Officer has actual knowledge thereof, the Trustee shall mail to each Holder of a Security of such series notice of the Default or Event of Default within the later of 30 days after obtaining such knowledge and 90 days after it occurs, unless the Default was already cured or waived.  Except in the case of a Default or Event of Default in payment of principal of, premium, if any, or interest or Additional Amounts, if any, on any Security of any series, the Trustee may withhold the notice if it in good faith determines that withholding the notice is in the interests of Holders of such series.

 

Section 7.6. Reports by Trustee to Holders

 

.  Within 60 days after each May 15 beginning with the May 15 following the date of this Indenture and for so long as the Securities of any series remain outstanding, the Trustee shall mail to each Holder of Securities of such series a brief report dated as of such reporting date that complies with TIA § 313(a).  The Trustee also shall comply with TIA § 313(b).  The Trustee shall also transmit by mail all reports required by TIA § 313(c).

 

A copy of each report at the time of its mailing to Holders of Securities of any series shall be filed with the SEC and each stock exchange (if any) on which the Securities of such series are listed.  The Company agrees to notify promptly the Trustee in writing whenever the Securities of any series become listed on any stock exchange and of any delisting thereof.

 

Section 7.7. Compensation and Indemnity

 

.  The Company shall pay to the Trustee from time to time such compensation for its acceptance of this Indenture and services hereunder as the Company and the Trustee shall from time to time agree in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, costs of preparing and reviewing reports, certificates and other documents, costs of mailing of notices to Holders, in addition to the compensation for its services.  Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Trustee’s agents, counsel, accountants and experts.  The Company shall indemnify the Trustee against any and all losses, liabilities, damages, claims, penalties, fines or expenses (including reasonable attorneys’ and agents’ fees and expenses) (for purposes of this Section 7.7, “losses”) incurred by it in connection with the administration of this trust and the performance of its duties hereunder, including the costs and expenses of enforcing this Indenture (including this Section 7.7) and of defending itself against any claims (whether asserted by any Holder, the Company or otherwise), except to the extent such losses may be attributable to its negligence or willful misconduct as determined by a court of competent jurisdiction.  The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder.  The Company shall defend the claim and the Trustee shall provide reasonable cooperation at the Company’s expense in the defense.  The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel provided that the Company shall not be required to pay such fees and expenses if it assumes the Trustee’s defense, and, in the reasonable judgment of outside counsel to the Trustee, there is no conflict of interest between the Company and the Trustee in connection with such defense.  The Company shall not be under any obligation to pay for any written settlement without its consent, which consent shall not be unreasonably delayed, conditioned or withheld.  The Company need not reimburse any expense incurred by the Trustee through the Trustee’s own willful misconduct or gross negligence.

 

To secure the Company’s payment obligations in this Section 7.7, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee other than money or property held in trust to pay principal of, interest and Additional Amounts, if any, on particular Securities.

 

The Company’s payment obligations pursuant to this Section 7.7 shall survive the discharge of this Indenture, the resignation or removal of the Trustee and payment in full of the Securities.  When the Trustee incurs expenses after the occurrence of a Default specified in clauses (6) or (7) of Section 6.1 with respect to the Company, the expenses are intended to constitute expenses of administration under any Bankruptcy Law.

 

Section 7.8. Replacement of Trustee

 

.  The Trustee may resign at any time by so notifying the Company.  The Holders of a majority in principal amount of the then outstanding Securities of any series may remove the Trustee with respect to the Securities of such series by so notifying the Trustee and may appoint a successor Trustee.  The Company shall remove the Trustee if:

 

(1) the Trustee fails to comply with Section 7.10;

 

(2) the Trustee is adjudged bankrupt or insolvent;

 

(3) a receiver or other public officer takes charge of the Trustee or its property; or

 

(4) the Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns or is removed by the Company or by the Holders of a majority in principal amount of the then outstanding Securities of any series and such Holders of such series do not reasonably promptly appoint a successor Trustee, or if a vacancy exists in the office of the Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company shall promptly appoint a successor Trustee with respect to such series.

 

If a successor Trustee with respect to Securities of any series does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee or the Holders of at least 10% in principal amount of the then outstanding Securities of such series may petition, at the Company’s expense, any court of competent jurisdiction for the appointment of a successor Trustee with respect to Securities of such series.

 

If the Trustee with respect to the Securities of a series fails to comply with Section 7.10, unless the Trustee’s duty to resign is stayed as provided in TIA § 310(b), any Holder who has been a bona fide Holder of a Security of such series for at least six months may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to such series.

 

In case of the appointment of a successor Trustee with respect to all Securities, each such successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee, to the Company.  Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, power and duties of the retiring Trustee under this Indenture.  The successor Trustee shall mail a notice of its succession to Holders.  The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7.

 

In  case of the appointment of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more (but not all) series shall execute and deliver an indenture supplemental hereto in which each successor Trustee shall accept such appointment and that (1) shall confer to each successor Trustee all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall confirm that all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee.  Nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, and each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee.  Upon the execution and delivery of such supplemental indenture, the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee shall have all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates.  On request of the Company or any successor Trustee, such retiring Trustee shall transfer to such successor Trustee all property held by such retiring Trustee as Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates.  Such retiring Trustees shall, however, have the right to deduct its unpaid fees and expenses, including, without limitation, reasonable attorneys’ fees and expenses.

 

Notwithstanding the replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 shall continue for the benefit of the retiring Trustee.

 

So long as no Event of Default, or no event which is, or after notice or lapse of time, or both, would become, an Event of Default, shall have occurred and be continuing, and except with respect to a Trustee appointed by the act of the Holders of a majority in principal amount of then outstanding Securities of any series, if the Company shall have delivered to the Trustee (1) a Board Resolution appointing a successor Trustee, effective as of a date specified therein, and (2) an instrument of acceptance of such appointment, effective as of such date, by such successor Trustee, then the Trustee shall be deemed removed, the successor Trustee shall be deemed to have been appointed by the Company and such appointment shall be deemed to have been accepted as contemplated, all as of such date, and all other provisions of this Section 7.8 shall be applicable to such removal, appointment and acceptance except to the extent inconsistent with this subsection.

 

Section 7.9. Successor Trustee by Merger

 

.  If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee.  The predecessor Trustee shall have no liability for any action or inaction by any successor Trustee.

 

In case at the time such successor or successors by merger, conversion or consolidation to the Trustee shall succeed to the trusts created by this Indenture, any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture.

 

Section 7.10. Eligibility; Disqualification

 

.  The Trustee shall at all times satisfy the requirements of TIA § 310(a).  The Trustee shall have a combined capital and surplus of at least $50.0 million as set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met.

 

Section 7.11. Preferential Collection of Claims Against Company

 

.  The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

 

                                    ARTICLE VIII                                

 

Legal Defeasance and Covenant Defeasance

 

Section 8.1. Option to Effect Legal Defeasance or Covenant Defeasance

 

.  Unless otherwise designated pursuant to Section 2.1(20), the Securities of any series shall be subject to defeasance or covenant defeasance pursuant to Section 8.2 or 8.3, in accordance with any applicable requirements provided pursuant to Section 2.1 and upon compliance with the conditions set forth in this Article VIII.  The Company may, at its option and at any time, elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding Securities of any series so subject to defeasance or covenant defeasance. Any such election shall be evidenced by a Board Resolution of the Company or in another manner specified as contemplated by Section 2.1 for such Securities.

 

Section 8.2. Legal Defeasance and Discharge

 

.  Upon the Company’s exercise under Section 8.1 hereof of the option applicable to this Section 8.2 with respect to Securities of any series, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, be deemed to have been discharged from its Obligations with respect to all outstanding Securities of such series on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by the outstanding Securities with respect to such series, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.5 hereof and the other Sections of this Indenture referred to in clauses (a) through (e) below, and to have satisfied all its other obligations under the Securities  with respect to such series and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:  (a) the rights of Holders of outstanding Securities with respect to such series to receive, solely from the trust fund described in Sections 8.4 and 8.5 hereof, and as more fully set forth in such Section, payments in respect of the principal of, premium, if any, and interest and Additional Amounts, if any, on such Securities when such payments are due, (b) the Company’s Obligations with respect to such Securities under Article II and Sections 3.1 hereof, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s obligations in connection therewith, (d) the optional redemption provisions, if any, with respect to such Securities, and (e) this Article VIII.  If the Company exercises under Section 8.1 hereof the option applicable to this Section 8.2, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, payment of the Securities with respect to such series may not be accelerated because of an Event of Default.  Subject to compliance with this Article VIII, the Company may exercise its option under this Section 8.2 notwithstanding the prior exercise of its option under Section 8.3 hereof.

 

Section 8.3. Covenant Defeasance

 

.  Upon the Company’s exercise under Section 8.1 hereof of the option applicable to this Section 8.3 with respect to Securities of any series, the Company shall, with respect to such series of Securities, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, be released from its obligations under the covenants contained in Sections 3.2 and 3.3, with respect to the outstanding Securities of such series on and after the date the conditions set forth in Section 8.4 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Securities of such series shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders of such series (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Securities shall not be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means that, with respect to the outstanding Securities of such series, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.1 hereof, but, except as specified above, the remainder of this Indenture and such Securities shall be unaffected thereby.  If the Company exercises under Section 8.1 hereof the option applicable to this Section 8.3, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, payment of the Securities of such series may not be accelerated because of an Event of Default specified in clauses (4) (with respect to Sections 3.2 and 3.3), (6) and (7) of such Section 6.1.

 

Section 8.4. Conditions to Legal or Covenant Defeasance

 

.  The following shall be the conditions to the application of either Section 8.2 or 8.3 hereof to the outstanding Securities of any series.

 

In order to exercise Legal Defeasance or Covenant Defeasance with respect to the Securities of any series:

 

(1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of the Securities of such series, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars, and non-callable Government Securities, in amounts as will be sufficient, in the written opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants, to pay the principal of, and interest and Additional Amounts, if any, and premium, if any, on the outstanding Securities of such series on the stated date for payment or on the applicable Redemption Date, as the case may be, and the Company must specify whether the Securities of such series are being defeased to such stated date for payment or to a particular Redemption Date;

 

(2) in the case of Legal Defeasance, the Company must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that: (a) the Company has received from, or there has been published by, the Internal Revenue Service a ruling; or (b) since the date of this Indenture, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel will confirm that, the Holders of the outstanding Securities of such series will not recognize income, gain or loss for federal income tax law purposes as a result of such Legal Defeasance and shall be subject to federal income tax law in the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

(3) in the case of Covenant Defeasance, the Company must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that Holders of the outstanding Securities of such series shall not recognize income, gain or loss for federal income tax law purposes as a result of such Covenant Defeasance and shall be subject to federal income tax in the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

(4) no Default or Event of Default has occurred and be continuing with respect to the Securities of such series on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit);

 

(5) such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture) to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound;

 

(6) the Company must deliver to the Trustee an Officers’ Certificate stating that such deposit was not made by the Company with the intent of preferring the Holders of Securities of such series over the other creditors of the Company with the intent of defeating, hindering, delaying or defrauding creditors of the Company or others; and

 

(7) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.5. Deposited Cash and Government Securities to be Held in Trust; Other Miscellaneous Provisions

 

.  Subject to Section 8.6 hereof, all cash and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee), collectively for purposes of this Section 8.5, the “Trustee”) pursuant to Section 8.4 hereof in respect of the outstanding Securities of such series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities of such series and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of Securities of such series of all sums due and to become due thereon in respect of principal, premium, if any, interest and Additional Amounts, if any, but such cash and securities need not be segregated from other funds except to the extent required by law.

 

The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to Section 8.4 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Securities of such series.

 

Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the request of the Company any cash or non-callable Government Securities held by it as provided in Section 8.4 hereof which, in the opinion of a nationally recognized independent registered public accounting firm expressed in a written certification thereof delivered to the Trustee (which may be the certification delivered under clause (1) of Section 8.4 hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.6. Repayment to Company

 

.  Any cash or non-callable Government Securities deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any, on, or interest or Additional Amounts, if any, on, any Security of any series and remaining unclaimed for one year after such principal, premium, if any, or interest or Additional Amounts, if any, has become due and payable shall be paid to the Company on its request (unless an abandoned property law designates another Person) or (if then held by the Company) shall be discharged from such trust; and such Holder shall thereafter, as an unsecured creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such cash and securities, and all liability of the Company as Trustee thereof, shall thereupon cease.

 

Section 8.7. Reinstatement

 

.  If the Trustee or Paying Agent is unable to apply any cash or non-callable Government Securities in accordance with Section 8.2, 8.3 or 8.5 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the Securities of such series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.4 hereof until such time as the Trustee or Paying Agent is permitted to apply all such cash and securities in accordance with Section 8.2, 8.3 or 8.5 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any, on, or interest or Additional Amounts, if any, on, any Security of such series following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such series to receive such payment from the cash and securities held by the Trustee or Paying Agent.

 

                               ARTICLE IX                                

 

Amendments

 

Section 9.1. Without Consent of Holders

 

. Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, the Company and the Trustee may amend or supplement this Indenture or the Securities without notice to or consent of any Holder:

 

(1) to cure any ambiguity, defect or inconsistency;

 

(2) to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

(3) to establish the form or terms of Securities of any series as permitted by Section 2.1;

 

(4) to provide for the assumption of the Company’s obligations to Holders of Securities of any series in the case of a merger or consolidation or sale of all or substantially all of the Company’s properties or assets, as applicable;

 

(5) to comply with requirements of the SEC in order to maintain the qualification of this Indenture under the Trust Indenture Act;

 

(6) to make any change that would provide any additional rights or benefits to the Holders of Securities of any series or that does not materially adversely affect the legal rights under this Indenture of any such Holder;

 

(7) to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series), or to surrender any right or power herein conferred upon the Company;

 

(8) to add any additional Events of Default with respect to all or any series of the Securities (and, if any such Event of Default is applicable to less than all series of Securities, specifying the series to which such Event of Default is applicable);

 

(9) to change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become effective only when there is no outstanding Security of any series created prior to the execution of such amendment or supplemental indenture that is adversely affected in any material respect by such change in or elimination of such provision;

 

(10) to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities pursuant to Section 8.1; provided, however, that any such action shall not adversely affect the interest of the Holders of Securities of such series or any other series of Securities in any material respect;

 

(11) to secure the Securities of any series;

 

(12) to evidence and provide for the acceptance under this Indenture of a successor trustee; or

 

(13) to conform the text of this Indenture or any Securities to the description thereof in any prospectus or prospectus supplement of the Company with respect to the offer and sale of Securities of any series, to the extent that such provision is inconsistent with a provision of this Indenture or the Securities, as provided in an Officers’ Certificate.

 

After an amendment under this Indenture becomes effective, the Company is required to mail to the Holders of each Security affected thereby a notice briefly describing such amendment.  However, the failure to give such notice to all the Holders of each Security affected thereof, or any defect therein, will not impair or affect the validity of the amendment or supplemental indenture under this Section 9.1.

 

Section 9.2. With Consent of Holders

 

.  Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, except as provided below in this Section 9.2, the Company, and the Trustee may amend or supplement this Indenture with the consent (including consents obtained in connection with a purchase of, or a tender offer or exchange offer for, Securities) of the Holders of a majority in principal amount of the then outstanding Securities of each series affected by such amendment or supplement (acting as separate classes).

 

Upon the request of the Company, accompanied by a Board Resolution, and upon the filing with the Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt by the Trustee of the documents described in Section 9.5, the Trustee shall, subject to Section 9.6, join with the Company in the execution of such amendment or supplemental indenture.

 

Except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, the Holders of a majority in principal amount of the then outstanding Securities of one or more series or of all series affected by such waiver (acting as separate classes) may waive compliance in a particular instance by the Company with any provision of this Indenture with respect to Securities of such series (including waivers obtained in connection with a purchase of, or a tender offer or exchange offer for, Securities of such series).

 

However, except as otherwise provided as contemplated by Section 2.1 with respect to the Securities of any series, without the consent of each Holder affected, an amendment, supplement or waiver may not (with respect to any Securities held by a non-consenting Holder):

 

(1) reduce the principal amount of Securities whose Holders must consent to an amendment, supplement or waiver;

 

(2) reduce the principal of or change the fixed maturity of any Security or alter the provisions with respect to the redemption or repurchase of the Securities;

 

(3) reduce the rate of or change the time for payment of interest, including default interest on any Security;

 

(4) waive a Default or Event of Default in the payment of principal of, or interest or premium, or Additional Amounts, if any, on the Securities (except a rescission of acceleration of the Securities by the Holders of at least a majority in aggregate principal amount of the then outstanding Securities and a waiver of the payment default that resulted from such acceleration);

 

(5) make any Security payable in currency other than that stated in the Securities;

 

(6) make any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders of Securities to receive payments of principal of, or interest or premium, if any, on the Securities (other than as permitted in clause (7) below);

 

(7) waive a redemption payment with respect to any Security;

 

(8) impair the right of a Holder of Securities to institute suit for the enforcement of any payment on the Securities; or

 

(9) make any change in the preceding amendment, supplement and waiver provisions.

 

It shall not be necessary for the consent of the Holders under this Section 9.2 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance of the proposed amendment.

 

A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of any other series.

 

A consent to any amendment or waiver under this Indenture by any Holder of the Securities given in connection with a tender of such Holder’s Securities will not be rendered invalid by such tender.  After an amendment under this Section becomes effective, the Company shall promptly mail to Holders of each Security affected thereby a notice briefly describing such amendment. The failure to give such notice to all Holders of each Security affected thereby, or any defect therein, shall not impair or affect the validity of an amendment, supplemental indenture or waiver under this Section 9.2.

 

Section 9.3. Compliance with Trust Indenture Act

 

.  Every amendment or supplement to this Indenture or the Securities shall comply with the Trust Indenture Act of 1939 as then in effect.

 

Section 9.4. Revocation and Effect of Consents and Waivers

 

.  A consent to an amendment or a waiver by a Holder of a Security shall be in writing and bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security.  However, any such Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.  After an amendment or waiver becomes effective with respect to a series of Securities, it shall bind every Holder of Securities of such series.

 

For purposes of this Indenture, the written consent of the Holder of a Global Security shall be deemed to include any consent delivered by an Agent Member by electronic means in accordance with the Automated Tender Offer Procedures system or other customary procedures of, and pursuant to authorization by, DTC.

 

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. The Trustee may, but shall not be obligated to, fix a record date for the purpose of determining the Holders of Securities of any series entitled to join in the giving, making or taking of (i) any notice permit to Section 6.1(4) or otherwise of any Default, (ii) any declaration of acceleration pursuant to Section 6.2, (iii) any request to institute proceedings pursuant to Section 6.6(2), or (iv) any direction referred to in Section 6.5, in each case with respect to such series. If a record date is so fixed, then notwithstanding the second preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders after such record date.  No such consent shall become valid or effective more than 180 days after such record date.

 

Section 9.5. Notation on or Exchange of Securities

 

.  If an amendment changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee.  The Trustee may place an appropriate notation on the Security regarding the changed terms and return it to the Holder.  Alternatively, if the Company so determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms.  Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment.

 

Section 9.6. Trustee To Sign Amendments

 

.  The Trustee shall sign any amendment authorized pursuant to this Article IX if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee.  If it does, the Trustee may but need not sign it.  In signing such amendment the Trustee shall receive indemnity satisfactory to it and shall receive, and (subject to Sections 7.1 and 7.2) shall be fully protected in conclusively relying upon an Officers’ Certificate and an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Indenture, that such amendment is the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to customary exceptions, and that such amendment complies with the provisions hereof (including Section 9.3).

 

                   ARTICLE X                      

 

[Reserved]

 

 

                         ARTICLE XI                                

 

Satisfaction and Discharge

 

Section 11.1. Satisfaction and Discharge

 

.  This Indenture will be discharged and will cease to be of further effect as to all Securities of any series issued hereunder (except as to surviving rights of registration of transfer or exchange of such Securities and as otherwise specified hereunder), when:

 

(1) either:

 

(a)           all Securities of such series that have been authenticated, except lost, stolen or destroyed Securities that have been replaced or paid and Securities of such series for whose payment money has been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or

 

(b)           all Securities of such series that have not been delivered to the Trustee for cancellation have become due and payable or will become due and payable within one year by reason of the mailing of a notice of redemption or otherwise and the Company has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders of Securities of such series, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in amounts as will be sufficient without consideration of any reinvestment of interest, to pay and discharge the entire indebtedness on such Securities not delivered to the Trustee for cancellation for principal, premium, if any, and accrued interest and Additional Amounts, if any,  to the date of maturity or redemption;

 

(2) no Default or Event of Default with respect to such series has occurred and is continuing on the date of the deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit) and the deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound;

 

(3) the Company has paid or caused to be paid all sums payable by it hereunder with respect to such series and pursuant to Section 7.7;

 

(4) the Company has delivered irrevocable instructions to the Trustee hereunder to apply the deposited money toward the payment of such Securities at fixed maturity or the Redemption Date, as the case may be; and

 

(5) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, which state that all conditions precedent under this Indenture relating to the satisfaction and discharge of this Indenture with respect to such series have been satisfied.

 

                             ARTICLE XII                                

 

Miscellaneous

 

Section 12.1. Trust Indenture Act Controls

 

.  If any provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA, the provision required by the TIA shall control.

 

Section 12.2. Notices

 

.  Any notice or communication shall be in writing (including facsimile and electronic transmission in PDF format) and delivered in person, by telecopier or overnight air courier guaranteeing next day delivery or mailed by first-class mail addressed as follows:

 

if to the Company:

 

General Finance Corporation

39 East Union Street

Pasadena, California 91103

Attn: Christopher A. Wilson, General Counsel

Fax No.: (626) 795-8090

Email: notices@generalfinance.com

if to the Trustee:

 

Wells Fargo Bank, National Association

333 S. Grand Avenue

5th Floor, Suite 5A

Los Angeles, California 90071

Attn: Corporate Trust Services – Administrator for General Finance Corporation

Fax No: (213) 253-7598

The Company or the Trustee by notice to the others may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication mailed to a registered Holder shall be mailed to the Holder at the Holder’s address as it appears on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed.  The Registrar shall provide the Company with address information with respect to the Holders as promptly as practicable following the Company’s request therefor.  Any notice or communication shall also be mailed to any Person described in TIA § 3.13(c), to the extent required by the TIA.

 

Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders.  If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

 

Section 12.3. Communication by Holders with other Holders

 

.  Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the Securities.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 12.4. Certificate and Opinion as to Conditions Precedent

 

.  Upon any request or application by the Company to the Trustee to take or refrain from taking any action under this Indenture, the Company shall furnish to the Trustee:

 

(1) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 12.5 hereof) stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been fully complied with and satisfied; and

 

(2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 12.5 hereof) stating that, in the opinion of such counsel, all such conditions precedent have been fully complied with and satisfied.

 

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion as to such matters in one or several documents.

 

Any certificate or opinion of an Officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such Officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous.  Any such certificate or Opinion of Counsel may be based, and may state that it is so based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an Officer or Officers of the Company stating that the information with respect to such factual matters known to the Company, unless such counsel knows that the certificate or opinion or representations with respect to such matters are erroneous.

 

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

 

Section 12.5. Statements Required in Certificate or Opinion

 

.  Each certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture (except for the Certificate specified in Section 3.5) shall include:

 

(1) a statement that the individual making such certificate or opinion has read such covenant or condition;

 

(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(3) a statement that, in the opinion of such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(4) a statement as to whether or not, in the opinion of such individual, such covenant or condition has been complied with.

 

Section 12.6. When Securities Disregarded

 

.  In determining whether the Holders of the required principal amount of Securities of any series have concurred in any direction, waiver or consent, Securities owned by the Company or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company shall be disregarded and deemed not to be outstanding, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which a Trust Officer of the Trustee actually knows are so owned shall be so disregarded.  Also, subject to the foregoing, only Securities outstanding at the time shall be considered in any such determination.

 

Section 12.7. Rules by Trustee, Paying Agent and Registrar

 

.  The Trustee may make reasonable rules for action by, or a meeting of, Holders.  The Registrar and the Paying Agent may make reasonable rules for their functions.

 

Section 12.8. Legal Holidays

 

.  A “Legal Holiday” is a Saturday, a Sunday or other day on which commercial banking institutions are authorized or required to be closed in New York, New York and Los Angeles, California.  If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.  If a regular record date is a Legal Holiday, the record date shall not be affected.

 

Section 12.9. GOVERNING LAW; WAIVER OF JURY TRIAL

 

.  THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  EACH OF THE COMPANY, THE TRUSTEE AND THE HOLDERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 12.10. No Recourse Against Others

 

.  No director, manager, officer, employee, incorporator, member, partner, stockholder or other owner of Capital Stock of the Company, as such, will have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of, or by reason of such obligations or their creation.  Each Holder of Securities by accepting a Security waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Securities.

 

Section 12.11. Successors

 

.  All agreements of the Company in this Indenture and the Securities shall bind its successors.  All agreements of the Trustee in this Indenture shall bind its successors.

 

Section 12.12. Multiple Originals

 

.  The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this Indenture.  The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

Section 12.13. Severability

 

.  In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 12.14. No Adverse Interpretation of Other Agreements

 

.  This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Company or any Subsidiary or any other Person.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 12.15. Table of Contents; Headings

 

.  The table of contents, cross-reference sheet and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof.

 

Section 12.16. Force Majeure.  In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

Section 12.17. U.S.A. Patriot Act.  The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee.  The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

 

 

 

 

 

  

  

  

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

 

GENERAL FINANCE CORPORATION

 

By:             /s/ Charles E. Barrantes 

Name:             Charles E. Barrantes

Title:             Executive Vice President & Chief Financial Officer

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 

By:             /s/ Maddy Hall 

Name:             Maddy Hall

Title:             Vice President

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