Document:

Transaction Fee and Advisory Services Agreement

  
 Exhibit 10.17

 EXECUTION 
 TRANSACTION FEE AND ADVISORY SERVICES AGREEMENT 
 This TRANSACTION FEE AND
ADVISORY SERVICES AGREEMENT is dated as of May 7, 2010 (this “Agreement”) and is by and among C.P. Atlas Holdings, Inc., a Delaware corporation (“Holdings”), C.P. Atlas Intermediate Holdings, LLC, a Delaware
limited liability company and wholly owned subsidiary of Holdings (“Intermediate Holdings”), American Renal Holdings Inc., a Delaware corporation (the “Company”) and Centerbridge Advisors, LLC (the
“Advisor”). 
 BACKGROUND 
 1. Holdings has entered into that certain Contribution and Merger Agreement, dated as of March 22, 2010, by and among Holdings, Intermediate Holdings, C.P. Atlas Acquisition Corp. (“Merger
Sub”), the Company, certain stockholders of the Company parties thereto and Wachovia Capital Partners GP I, LLC, as may be amended, restated, supplemented or otherwise modified from time to time (the “Merger Agreement”).

 2. In accordance with the Merger Agreement, Merger Sub is merging with and into the Company (the “Merger”),
with the Company surviving the Merger as an indirect wholly owned subsidiary of Holdings. 
 3. Centerbridge Capital Partners,
L.P. (“Centerbridge”) and other funds or entities affiliated with or under common management with it are making an investment in Holdings (the “Equity Financing”) in connection with the Merger. 

4. The cash payments arising in connection with the Merger will be financed in part by the Equity Financing, in part by certain Rollover
Shares (as defined in the Merger Agreement) held by stockholders of the Company immediately prior to the Merger, and in part by debt financing arranged by the Advisor through Merger Sub and/or the Company (such financings, together with the Merger,
the Equity Financing and related transactions are collectively referred to as the “Transactions”). 
 5. The
Advisor has used its expertise to provide substantial financial and structural analysis, due diligence investigations, corporate strategy, and other advice and assistance in connection with the Transactions, from which the Company is expected to
benefit and is the basis upon which the Advisor will be paid a fee in consideration thereof. 
 6. The Advisor has expertise in
the areas of finance, strategy, investment, acquisitions and other matters relevant to the Company and its business. 
 7. The
Company desires to avail itself and its subsidiaries of the Advisor’s expertise in providing financial and structural analysis, due diligence investigations, corporate strategy, and other advice and assistance, which the Company believes will
be beneficial to it and its subsidiaries, and the Advisor wishes to provide the services to the Company as set forth in this Agreement in consideration of the payment of the fees described below. 

  
 8. Therefore, in
consideration of the premises and agreements contained herein and of other good and valuable consideration, the sufficiency of which are hereby acknowledged, the parties agree as follows (capitalized terms used and not defined herein shall have the
meanings given such terms in the Stockholders Agreement dated the date hereof (the “Stockholders Agreement”) among Holdings, Centerbridge, Centerbridge Capital Partners SBS, L.P. and Centerbridge Capital Partners Strategic, L.P. and
the other holders of Common Stock (as defined below) party thereto): 
 AGREEMENT 

SECTION 1. Transaction Fee. In consideration of the financial and structural analysis, due diligence investigations,
corporate strategy, and other advice and assistance in connection with the Transactions provided by the Advisor and its Advisor Designees (as defined below), on the Closing Date (as defined in the Merger Agreement), the Company will pay the Advisor
an aggregate transaction fee in the amount of $4,000,000 (the “Transaction Fee”), together with all Out-of-Pocket Expenses of the Advisor, its affiliates and its Advisor Designees as contemplated by Section 5 incurred by the
Advisor, its affiliates and its Advisor Designees prior to the Closing Date for services rendered by the Advisor and its Advisor Designees in connection with the consummation of the Transactions. 

SECTION 2. Appointment. The Company hereby engages the Advisor to provide the services described in Section 3 (the
“Services”) on the terms and subject to the conditions of this Agreement. 
 SECTION 3. Services.

 (a) The Advisor agrees that, until the earlier of the Termination Date (as defined below) or the date upon which the Lump Sum
Payment (as defined below) is payable, it will provide to the Company, by and through itself, its affiliates and/or such respective officers, employees, representatives and third parties (collectively hereinafter referred to as the “Advisor
Designees”) as the Advisor in its sole discretion may designate from time to time, advisory and consulting services in relation to the affairs of the Company and its subsidiaries, including, without limitation: 

 

	 	•	 	 advice regarding the structure, terms, conditions and other provisions, distribution and timing of debt and equity offerings and advice regarding
relationships with the Company and its subsidiaries’ lenders and bankers, 

  

	 	•	 	 advice regarding the strategy of the Company, 

  

	 	•	 	 advice regarding dispositions and/or acquisitions, and 

 

	 	•	 	 such other advice directly related or ancillary to the above advisory services as may be reasonably requested by the Company;

 (b) It is expressly agreed that the services to be performed under this Agreement will not include any
investment banking or other financial advisory services which may be provided by the Advisor or any of its affiliates or Advisor Designees in connection with any actual or potential acquisition, divestiture, financing, refinancing, recapitalization
or other transaction involving Holdings or any of its subsidiaries. The Advisor or its Advisor Designees may be entitled to receive compensation, in addition to any fees paid under this Agreement, for providing services of the type specified in the
preceding sentence by mutual agreement of Holdings or such subsidiary, on the one hand, and the Advisor or its affiliates or Advisor Designees, on the other hand; provided, that (i) the Advisor or any Advisor Designee shall only be
entitled to receive such compensation that is reasonable and customary and (ii) all such compensation shall be deemed included as part of any Contingent Fees that are payable pursuant to Section 4(h). 

SECTION 4. Fees. 
 (a) Advisory Services Fee. In consideration of the services contemplated by Section 3, the Company hereby agrees to pay to the Advisor, commencing on the Closing Date, an aggregate per annum
advisory services fee in respect of each fiscal year from and including fiscal year 2010 (for which a pro-rated amount shall be assessed as described below) (the “Advisory Services Fee”) equal to: 

(I) the greater of: 

  
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	 	(i)	an amount equal to the greater of (x) $550,000 and (y) the most current prior year’s Advisory Services Fee (as finally determined pursuant to this
Section 4) (if available); and 

  

	 	(ii)	an amount per annum equal to 1.25% of that fiscal year’s EBITDA (as set forth on Annex A), minus 

(II) the Personnel Expense Deduction (as defined below), if any. 
 The Advisory Services Fee shall be payable on the Closing Date in accordance with paragraph (d) below, and thereafter quarterly, beginning on January 1 of each year. Each date on which the
Advisory Services Fee is payable (including the Closing Date and the date upon which a Lump Sum Payment (as defined below) but excluding the date of any EBITDA Adjustment Payment (as defined below)) is referred to as a “Payment
Date”. The amount payable on each Payment Date in each fiscal year shall be calculated at the beginning of such year based on an assumed Advisory Services Fee of an amount equal to the greater of (x) $550,000 and (y) the most
current prior year’s Advisory Services Fee (as finally determined pursuant to this Section 4) (if available), and shall be subject to a true-up adjustment as set forth in Section 4(c) below. On any Payment Date, the aggregate amount
of the Advisory Services Fee then payable (calculated for this purpose without regard to clause (II) above) shall be reduced by the amount of Personnel Expense Deduction paid by the Company from and including the immediately preceding Payment Date
through the day immediately preceding such Payment Date. The Advisory Services Fee payments shall be non-refundable. 
 (b) The
Advisory Services Fee will accrue and be payable (as described in paragraph (a) above) on a quarterly basis through the last day of the quarter in which the Termination Date occurs. 

(c) At the end of each fiscal year (including fiscal year 2010), a determination of EBITDA for such ended fiscal year shall be made
following the completion of audited financial statements of the Company (but in any event no later than March 31 of the following fiscal year). Promptly following the determination of EBITDA for such ended fiscal year (as described in the
preceding sentence) or promptly following termination of this Agreement, the Company shall pay the Advisor a true-up payment so that, after giving effect to such payment, the Advisor is in the same position it would have been in if the payments made
by the Company to the Advisor on the Payment Date occurring in the immediately preceding fiscal year was based on the actual EBITDA for such ended fiscal year (any such payment an “EBITDA Adjustment Payment”). Such EBITDA Adjustment
Payment will also be made on the Termination Date with respect to the Advisor based on the best information regarding then-current and prior year EBITDA then available. 
 (d) The Company shall pay to the Advisor on the Closing Date an aggregate amount of $357,500, representing a pro rata portion of $550,000 (in respect of the Advisory Services Fee) for fiscal year 2010
calculated from May 7, 2010 through December 31, 2010. Promptly following the determination of EBITDA for fiscal year 2010, the Company shall pay the Advisor a pro rata portion of any EBITDA Adjustment Payment that may be payable for
fiscal year 2010. 
 (e) “Termination Date” means the earliest of (i) the tenth anniversary of the date
hereof, (ii) the first date on which Centerbridge owns less than 20% of the outstanding shares of common stock, par value $0.01 per share, of Holdings (“Common Stock”) and (iii) such date as may be specified in writing by
the Advisor. 
 (f) “Personnel Expense Deduction” means, with respect to a Payment Date, the total amount paid
by the Company in respect of the costs of retaining Centerbridge personnel serving in non-director management or similar non-director capacities with respect to the Company as directed by the Advisor. The Company shall pay or cause to be paid any of
the foregoing amounts to such personnel and at such times as directed by the Advisor. 

  
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 (g) Contingent
Fees. In further consideration for the Services, in connection with any significant acquisition, divestiture, sale of all or part of the business, business combination, financing, refinancing, recapitalization or similar transaction by Holdings
or any of its subsidiaries in which the Advisor plays a significant role, the Advisor or its Advisor Designees shall be entitled to receive upon consummation of (i) any such acquisition, disposition, sale, business combination, a fee equal to
(x) 1.0% of the aggregate enterprise value of the consideration or proceeds paid, payable, received or receivable in respect of the acquired, divested, sold, combined, financed, refinanced or recapitalized entity (calculated, on a consolidated
basis for such entity, as the sum of (1) the market value of its common equity (or the fair market value thereof if not publicly traded), (2) the value of its preferred stock (at liquidation value), (3) the book value of its minority
interests and (4) its aggregate long- and short-term debt, less its unrestricted cash), or (y) if such transaction is structured as an asset purchase or sale, 1.0% of the consideration or proceeds paid, payable, received or receivable in
respect of the assets acquired, disposed of or combined with plus liabilities assumed and (ii) any such financing, refinancing or recapitalization, a fee equal to 1.0% of the aggregate value of the securities subject to such financing,
refinancing or recapitalization (in each such case as described in (i) and (ii), the “Contingent Fee”). All amounts paid by the Company to the Advisor pursuant to this paragraph shall be made by wire transfer in same-day funds
on the date of the consummation of the relevant transaction to the respective bank accounts designated by the Advisor, and shall not be refundable under any circumstances. Notwithstanding anything herein to the contrary, in the event that both a
Contingent Fee and a Lump Sum Payment are payable hereunder, the Company shall pay the Advisor, without duplication, the greater of (x) the Contingent Fee then payable and (y) the Lump Sum Payment (as defined below) then payable and in no
event shall both the Contingent Fee and the Lump Sum Payment be payable in connection with the same transaction or related transaction. 
 (h) Early Termination. Notwithstanding anything to the contrary contained in this Agreement, Centerbridge may elect (i) at any time in connection with a Change of Control or an Initial Public
Offering or sale of all or substantially all of the shares of Common Stock of Holdings, or of Holdings’ businesses and assets (or at any time thereafter) (by the delivery of written notice to the Company (such notice, the
“Notice” and the date on which such Notice is delivered to the Company, the “Notice Date”)) or (ii) such earlier time as the Company and Centerbridge may mutually agree to cause the Advisor to receive, in lieu
of any remaining Advisory Services Fees and Contingent Fees payable by the Company under this Agreement, the Lump Sum Payment (as defined below), such amount to be paid on the date on which the Change of Control or an Initial Public Offering or sale
of shares, businesses or assets is consummated, or, if the Notice occurs subsequent to such date, as soon as practicable, but in no event later than 30 days subsequent to the Notice Date, or upon such other date as mutually agreed. The “Lump
Sum Payment” shall be a single lump sum cash payment equal to the sum of (A) the then present value of all then current and future Advisory Services Fees payable under this Agreement, assuming the Termination Date to be the tenth
anniversary hereof (using a discount rate equal to the yield to maturity on the Notice Date of the class of outstanding U.S. government bonds having a final maturity closest to the tenth anniversary of the date hereof (the “Discount
Rate”)) and Contingent Fees then payable (if any), and assuming further that each future annual Advisory Services Fee would equal the Advisory Services Fee paid (or payable) in respect of the then current fiscal year. The payments due to
the Advisor in respect of the Lump Sum Payment shall be calculated in accordance with Section 4(c) will be payable to the Advisor by wire transfer in same-day funds to the bank account designated by the Advisor, and shall not be refundable
under any circumstances. Following the payment of the Lump Sum Payment, the obligation of the Advisor to provide the Services hereunder, and the corresponding obligations of the Company to pay Advisory Services Fees, shall be terminated, but all
other provisions of this Agreement shall continue unaffected. For purposes of this Agreement, (1) “Change of Control” shall have the meaning as defined in the Credit Agreement entered into by Intermediate Holdings on the
Closing Date, and (2) an “Initial Public Offering” shall have the meaning set forth in the Stockholders Agreement. 

  
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 (i) Future
Services. In consideration for any Services provided to the Company from and after a Lump Sum Payment has been made, the Company shall pay to the Advisor reasonable compensation for such Services as agreed upon by the parties hereto. 

(j) Non-Payment. Other than following or in connection with a Change of Control, prior to the date upon which the Lump Sum Payment
is payable, with the prior written approval of Centerbridge, the Company may defer the payment of any portion of the Advisory Services Fee, the Contingent Fee or the Lump Sum Payment to the extent necessary in order for the Company to remain in
compliance with the terms and conditions of the Credit Agreement. To the extent the Company does not pay any portion of the Advisory Services Fee, the Contingent Fee or the Lump Sum Payment for any reason, including in reliance on the preceding
sentence, or by reason of any prohibition on such payment pursuant to the terms of any agreement or indenture governing indebtedness of the Company or its subsidiaries, (x) any accrued but unpaid portion of the Advisory Services Fee, the
Contingent Fee or the Lump Sum Payment shall be paid to the Advisor in accordance with Section 4 on the earlier of (i) the first date on which the payment of such unpaid amount is permitted under such requirements or covenants, agreement
or indenture, to the extent permitted by such requirements or covenants, agreement or indenture, and (ii) total or partial liquidation, dissolution or winding up of the Company. Any portion of the Advisory Services Fee, the Contingent Fee or
the Lump Sum Payment not paid on the scheduled due date will bear interest, payable in cash on each scheduled due date, at an annual rate of interest equal to the Non-Payment Rate (as defined below), from the date due until paid. As used in this
Agreement, the term “Non-Payment Rate” means a rate per annum equal to the highest interest rate incurred or accrued by the Company and its subsidiaries in respect of any financial indebtedness determined at the date payment was
first due and not paid (the “First Date”), subject to adjustment on each one year anniversary of such First Date, any such adjustment to be retroactive to the First Date. The Non-Payment Rate will be calculated on the basis of a
360-day year. 
 (k) Other than as provided herein, it is hereby understood and agreed that the Company shall not be required to
pay any other equity holders of the Company any fees substantially similar to the Advisory Services Fee. 
 SECTION 5.
Reimbursements. In addition to the fees payable pursuant to this Agreement, on the date this Agreement first takes effect or on the date on which the closing of the Merger occurs, and thereafter as proper invoices with reasonable detail
of services provided are presented, the Company will pay directly or reimburse the Advisor and each of its Advisor Designees for their respective Out-of-Pocket Expenses (as defined below). For the purposes of this Agreement, the term
“Out-of-Pocket Expenses” means the reasonable out-of-pocket costs and expenses incurred by the Advisor and its respective Advisor Designees solely in connection with the Services provided under this Agreement (including, prior to the
Closing Date), including, without limitation and without duplication, (a) reasonable fees and disbursements of any independent professionals and organizations, including independent accountants, financial advisors, outside legal counsel,
consultants or other third party advisors, retained by the Advisor or any of its Advisor Designees; (b) costs of any outside services or independent contractors such as couriers, business publications, on-line financial services or similar
services, retained or used by the Advisor or any of its respective Advisor Designees, (c) transportation, per diem costs, or any similar expense not associated with the Advisor or its Advisor Designees’ ordinary operations and (d) all
reasonable out-of-pocket fees, costs and expenses incurred by the Advisor or its Advisor Designees (including those set forth in clauses (a) through (c) above) in connection with the investigation, consideration, entering into or
consummation of the Merger Agreement and the transactions contemplated thereby or incurred by the Advisor or its Advisor Designees for the benefit of Centerbridge in connection with the Merger Agreement and the transactions contemplated thereby. All
payments or reimbursements for Out-of-Pocket Expenses will be made by wire transfer in same-day funds to the bank account designated by the Advisor or its relevant Advisor Designee (if such Out-of-Pocket Expenses were incurred by the Advisor or its
Advisor Designees) promptly upon or as soon as practicable following request for reimbursement in accordance with this Agreement, or at the Advisor’s election to the account indicated to the Company by the relevant payee. 

  
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 SECTION 6.
Indemnification. The Company will indemnify and hold harmless, to the fullest extent permitted by law, the Advisor, its Advisor Designees and its partners (both general and limited), members (both managing and otherwise), stockholders,
officers, directors, advisory directors, managing directors, employees, agents, representatives and affiliates (as the term is defined in Rule 12b-2 promulgated under the Exchange Act, as in effect on the date hereof) (other than Holdings and its
subsidiaries) (and partners (both general and limited), members (both managing and otherwise), stockholders, officers, directors, advisory directors, managing directors, employees, agents, representatives and controlling persons thereof) (each such
person being an “Indemnified Party”) against any and all losses, claims, damages and liabilities (the “Liabilities”), related to, arising out of or in connection with the Services under this Agreement or the
engagement of the Advisor or its Advisor Designees pursuant to, and the performance by the Advisor and its Advisor Designees of the Services under this Agreement, whether or not pending or threatened, whether or not an Indemnified Party is a party,
whether or not resulting in any liability and whether or not such action, claim, suit, investigation or proceeding is initiated or brought by the Company, except for those Liabilities resulting from, relating to or arising out of the gross
negligence or willful misconduct by the Advisor or any of the Advisor Designees, but in each case, in connection with the provision of Services pursuant to this Agreement. The Company will reimburse any Indemnified Party for all reasonable costs and
expenses (including without limitation reasonable attorneys’ fees and any and all expenses incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim, and any and all amounts paid in any
settlement of any such claim or litigation) as they are incurred in connection with investigating, preparing, pursuing, defending or assisting in the defense of any action, claim, suit, investigation or proceeding for which the Indemnified Party
would be entitled to indemnification under the terms of the previous sentence, or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. The attorneys’ fees and other expenses of an Indemnified
Party shall be paid by the Company as they are incurred. Notwithstanding the foregoing, any of the foregoing amounts paid to an Indemnified Party shall be repaid to the Company to the extent it is finally determined that such Indemnified Party is
not entitled to indemnification. Such indemnification obligation shall be in addition to any liability that the Company may otherwise have to any other such Indemnified Party. The provisions of this Section 6 are intended to be for the benefit
of, and shall be enforceable by, each Indemnified Party and its respective successors, heirs and representatives. 
 SECTION
7. Accuracy of Information. The Company shall furnish or cause to be furnished to the Advisor such information as the Advisor or its Advisor Designees believe reasonably appropriate to their advisory and consulting services hereunder and
to comply with Securities and Exchange Commission or other applicable legal requirements relating to the beneficial ownership by the Stockholders of equity securities of the Company (all such information so furnished, the
“Information”). The Company recognizes and confirms that the Advisor (a) has and will use and rely primarily on the Information and on information available from generally recognized public sources in performing the Services
contemplated by this Agreement without having independently verified the same, (b) does not assume responsibility for the accuracy or completeness of the Information and such other information and (c) is entitled to rely upon the
Information without independent verification. 
 SECTION 8. Effective Date. This Agreement will become effective
as of the date hereof (the “Effective Date”). 
 SECTION 9. Term. The obligation to provide
Services shall continue through and until the earlier of (i) the Termination Date, or (ii) the date upon which the Lump Sum Payment is payable; provided, however, that the Company’s obligations pursuant to Sections 4, 5,
and 6 shall survive any such termination, and its obligation to pay any unpaid amounts that have otherwise become due and payable hereunder shall survive until such payments are made. 

  
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 SECTION 10.
Permissible Activities. Nothing herein will in any way preclude the Advisor or its Advisor Designees (other than the Company or its subsidiaries and their respective employees) or its partners (both general and limited), members (both
managing and otherwise), officers, directors, employees, affiliates, agents or representatives from engaging in or investing in any business activities or from performing services for its or their own account or for the account of others, including
for companies that may be or are in competition with the (or any) business conducted by the Company. 
 SECTION 11.
Miscellaneous. 
 (a) This may be amended, modified or supplemented only in writing signed by the parties hereto. Any
party hereto may on behalf of itself only, (i) extend the time for the performance of any of the obligations or other acts of the other parties hereto and/or (ii) waive compliance by any other party with any of the agreements or conditions
contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party granting such waiver, but such waiver or failure to insist upon strict
compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or future failure. Any amendment, waiver or consent will be effective only in the specific instance and
for the specific purpose for which given. 
 (b) Any notices, demands, requests, waivers, or other communications required or
permitted hereunder under this Agreement shall be in writing, and shall be addressed as follows: 
  

					
	To the Company:	  	 American Renal Holdings Inc.
 66 Cherry Hill Drive
 Beverly, MA 01915

		  	 Facsimile:

Attention:
	 	 (978) 232-4015
 Chief
Executive Officer

		
	With a copy to:	  	 Centerbridge Capital Partners, L.P.
 375 Park Avenue, 12th Floor
 New York, NY 10152

		  	 Facsimile:

Attention:
	 	 (212) 672-5001
 Steven M.
Silver
 Jared S. Hendricks

		
	To the Advisor:	  	 Centerbridge Advisors, L.L.C.
 375 Park Avenue, 12th Floor
 New York, NY 10152

		  	 Facsimile:

Attention:
	 	 (212) 672-5001
 Steven M.
Silver

		
	With a copy to:	  	 Simpson Thacher & Bartlett LLP
 425 Lexington Avenue
 New York, NY 10019

		  	 Facsimile:

Attention:
	 	 (212) 455-2000
 Caroline B.
Gottschalk

 Unless otherwise specified herein, such notices or other communications shall be deemed to have been duly given:
(a) when delivered by hand (with written confirmation of receipt), (b) when transmitted via telecopy (or facsimile device) to the number set out above if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), (c) the day following the day (except if not a Business Day then the next Business Day) on which the same has been delivered prepaid to a reputable national overnight air courier service, or
(d) the third Business Day following the day on which the same is sent by registered or certified mail (postage prepaid, return receipt requested), in each case to the appropriate addresses set forth above (or to such other addresses as a party
may designate by notice to the other parties). 

  
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 (c) This Agreement and
the Stockholder Agreement (solely for purposes of paragraph 8 of the “Background” herein) sets forth the entire understanding and agreement of the parties hereto with respect to the subject matter hereof, and will supersede all previous
oral and written (and all contemporaneous oral) negotiations, commitments, agreements and understandings relating hereto. 
 (d)
This Agreement will be governed by, and construed in accordance with, the laws of the State of New York. 
 (e) Each of the
parties hereto (i) consents itself to the personal jurisdiction of the United States District Court for the Southern District of New York or the Supreme Court of the State of New York, in the Borough of Manhattan in the City of New York in the
event any dispute arises out of this Agreement or any of the transactions contemplated hereby, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, and
(iii) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated hereby in any court other than the United States District Court for the Southern District of New York or the Supreme Court of the
State of New York, in the Borough of Manhattan in the City of New York. By executing and delivering this Agreement, the parties irrevocably: (a) accept generally and unconditionally the exclusive jurisdiction and venue of the aforementioned
courts; (b) waive any objections which such party may now or hereafter have to the laying of venue of any of the aforesaid actions arising out of or in connection with this Agreement brought in the courts referred to in clause (a) above
and hereby further irrevocably waive and agree not to plead or claim in any such court that such action brought in any such court has been brought in an inconvenient forum; (c) agree that service of all process in any such action in any such
court may be made by registered or certified mail, return receipt requested, to such party at its address provided in accordance with Section 11(b); and (d) agree that service as provided in clause (c) above is sufficient to confer
personal jurisdiction over such party in any such action in any such court, and otherwise constitutes effective and binding service in every respect. 
 (f) The provisions of this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors. Subject to the next sentence, no Person other than the parties
hereto and their respective successors is intended to be a beneficiary of this Agreement. The parties acknowledge and agree that the Advisor Designees and the respective partners (both general and limited), members (both managing and otherwise),
officers, directors, employees, agents and representatives of the Advisor are third-party beneficiaries under Section 6 of this Agreement. The Advisor shall have the absolute right to assign this Agreement to its affiliate or affiliates.

 (g) This Agreement may be executed by one or more parties to this Agreement on any number of separate counterparts (including
by facsimile), and all of said counterparts taken together will be deemed to constitute one and the same instrument. 
 (h) Any
provision of this Agreement that is prohibited or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction will not invalidate or render unenforceable such provision in any other jurisdiction. 
 [Remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF,
the undersigned have executed, or have caused to be executed, this Agreement on the date first written above. 
  

					
	C.P. ATLAS HOLDINGS, INC.
		
	By:	 	/s/ Jared S. Hendricks
		 	Name:	 	Jared S. Hendricks
		 	Title:	 	Co-President
	
	AMERICAN RENAL HOLDINGS, INC.
		
	By:	 	/s/ Joseph A. Carlucci
		 	Name:	 	Joseph A. Carlucci
		 	Title:	 	Chief Executive Officer
	
	CENTERBRIDGE ADVISORS, LLC
		
	By:	 	 Centerbridge Partners, L.P.,
 its sole member

		
	By:	 	 Centerbridge Partners Holdings, LLC,
 its general partner

		
	By:	 	/s/ Steven M. Silver
		 	Name:	 	Steven M. Silver
		 	Title:	 	Authorized Person

 [Transaction Fee
and Advisory Services Agreement Signature Page] 

  

  
 Annex A

 Consolidated EBITDA 
 Capitalized terms used in this Annex A and not defined herein or elsewhere in this Agreement shall have the meanings given such terms in the Indenture dated May 7, 2010, governing the Company’s
8.375% Senior Secured Notes due 2016 (the “Indenture”). 
 “Consolidated EBITDA” means, with
respect to any specified Person for any period, Consolidated Net Income for such Person for such period plus 
 (a) without
duplication and to the extent deducted in determining such Consolidated Net Income for such period, the sum of: 

(i) consolidated interest expense (and solely for purposes of calculating the Fixed Charge Coverage Ratio, other Fixed
Charges) of the Company and its Restricted Subsidiaries for such period and, to the extent not reflected in such total interest expense, increased by payments made in respect of Hedging Obligations or other derivative instruments entered into for
the purpose of hedging interest rate risk, minus any payments received in respect of such Hedging Obligations or other derivative instruments, 
 (ii) consolidated tax expense of the Company and its Restricted Subsidiaries based on income, profits or capital, including state, franchise, capital and similar taxes and withholding taxes paid or
accrued during such period, 
 (iii) all amounts attributable to depreciation and amortization expense of the
Company and its Restricted Subsidiaries for such period, 
 (iv) any Non-Cash Charges for such period,

 (v) costs associated with the Transactions made or incurred by the Company and its Restricted Subsidiaries in
connection with the Transactions for such period that are paid, accrued or reserved for within 365 days of the consummation of the Transactions, 
 (vi) any restructuring charges (including restructuring costs related to acquisitions after the Issue Date and to closure or consolidation of facilities) for such period and any “Specified
Payments” as defined in Schedule 11.2(a)(vi) to the Merger Agreement made during such period, 
 (vii) any
unusual or nonrecurring fees, cash charges and other cash expenses for such period (A) made or incurred by the Company and its Restricted Subsidiaries in connection with any acquisition or investment not prohibited by the Indenture, including
severance, relocation and facilities closing costs, including any earnout payments, whether or not accounted for as such, that are paid, accrued or reserved for within 365 days of such transaction, or (B) incurred in connection with the
issuance of Equity Interests or Indebtedness, 
 (viii) cash expenses incurred during such period in connection
with an acquisition not prohibited by the Indenture to the extent that such expenses are reimbursed in cash during such period pursuant to indemnification provisions of any agreement relating to such transaction, 

  
 (ix)
periodic management fees that are permitted by Section 3.8(b)(xiii)(ii) of the Indenture, 
 (x) cash
expenses incurred during such period in connection with extraordinary casualty events to the extent such expenses are reimbursed in cash by insurance during such period, and 

(xi) the amount of any minority interest expense consisting of Restricted Subsidiary income attributable to minority
equity interests of third parties in any non-Wholly Owned Restricted Subsidiary to the extent the Indebtedness owed by such Restricted Subsidiary is included in the Indebtedness of the Company; minus 

(b) without duplication and, in the case of clause (ii) below, to the extent included in determining such Consolidated Net Income,

 (i) any cash payments made during such period in respect of Non-Cash Charges described in clause (a)(iv) taken
in a prior period or taken in such period, 
 (ii) any non-cash items of income for such period (other than the
accrual of revenue or recording of receivables in the ordinary course of business); 
 provided that (I) in no event shall any
charge, expense or loss relating to write-downs, write-offs or reserves with respect to current assets be added back and (II) the aggregate amount added back pursuant to clauses (vi) and (vii) shall not exceed 10% of Consolidated EBITDA
(calculated before giving effect to such clauses) for any period. 

  
 A-2fs11010ex10i_bluevictory.htm

Exhibit 10.1

 

ACT OF CREDIT SALE OF COMMON STOCK OF

HARDEE'S OF NEW IBERIA, INC.

 

This Agreement made as of July 14, 2010, is effective as of July 15, 2010, by and between:

 

CHARLES KENNETH LUKE (a/k/a KENNETH LUKE), (SS# XXX-XX-7020) and BARBARA ANNE TARVER LUKE (SS# XXX-XX-3262), husband and wife, living and abiding with one another, residents of Iberia Parish, Louisiana, whose present mailing address is 1400 Southport Blvd., New Iberia, Louisiana 70560; referred to as "Sellers";

 

BLUE VICTORY HOLDINGS, INC. (TIN XXXXX9633); a foreign corporation domiciled in Carson City, Nevada, authorized to do business in the State of Louisiana, with a mailing address of 4400 Ambassador Caffery Parkway, Suite A, Box 347, Lafayette, Louisiana 70508, represented by Seenu G. Kasturi, duly authorized by resolution, a certified copy attached referred to as "Purchaser";

 

RECITALS:

WHEREAS, there are presently 100 shares of issued and outstanding common stock of HARDEE'S OF NEW IBERIA, INC., a Louisiana corporation, principally located in Iberia Parish, Louisiana, with a mailing address of 101 East Admiral Doyle Drive, New Iberia, LA 70560; referred to as "Corporation".

WHEREAS, the Sellers are the owners of 100 shares of the issued and outstanding common stock of the Corporation.

WHEREAS, the Sellers desire to sell to Purchaser and Purchaser desires to buy the 100 issued and outstanding shares of the common stock of the Corporation.

NOW, THEREFORE, in consideration of the sale of stock by Sellers to Purchaser and all attendant goodwill, and the mutual benefits, premises and covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, and for the additional consideration of ONE HUNDRED THOUSAND AND NO/100 ($100,000.00) DOLLARS to Sellers, receipt which is hereby acknowledged, the parties hereto mutually covenant, contract and agree as follows:

 

  

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Agreements:

In consideration of the covenants, warranties and mutual agreements herein set forth, and in reliance upon the representation and warranties contained herein, the parties do hereby agree as follows:

1. Sales of Shares; Consideration.

1.01 Sale. Subject to all the terms and conditions of this Agreement, the Sellers hereby sell, assign, transfer, and deliver to Purchaser, and Purchaser hereby buys the 100 shares of common stock. These shares are evidenced by Stock Certificate Number 1 issued in the name of Charles Kenneth Luke representing 50 shares and Stock Certificate Number 2 issued in the name of Barbara Anne Tarver Luke representing 50 share which has been duly endorsed by Sellers and delivered to Purchaser, receipt of which is hereby acknowledged.

1.02 Purchase Price. In consideration of the sale of the

shares, and subject to the conditions hereinafter set forth, Buyer pays to Seller, receipt of which Sellers acknowledge receiving in the form of one Promissory note (hereinafter referred to as "Promissory note") dated July 14, 2010 payable to the order of the Sellers named above for the sum of ONE HUNDRED THOUSAND AND NO/100 ($100,000.00) DOLLARS with interest at five (5%) per cent per annum from July 15, 2010, until paid, payable on the following terms:

 

Payable in 20 consecutive quarterly installments at TWO THOUSAND THREE HUNDRED EIGHTY TWO AND 51/100 ($2,382.51) DOLLARS each, with a balloon payment due immediately after the 20th payment of SEVENTY FOUR THOUSAND FIVE HUNDRED FIFTY SIX AND 96/100 ($74,556.96) DOLLARS, the first installment commencing October 15, 2010, and due on the 15th day of each successive third month, out of which shall be deducted the amount of interest due and the balance to be applied to the liquidation on the principal and the final installment shall be for the balance of the principal and accrued interest due. Prepayment of the note may be made without penalty.

 

  

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2. Additional Consideration; Non-Competition

 

2.01.  Non-Competition. In consideration of the terms, covenants, conditions, agreements and Promissory Note of the Purchaser, during the term of the Promissory Note and for a period of two (2) years after the termination of the Promissory Note, Sellers will not directly or indirectly:

A) Enter into or attempt to enter into the restrictive business as defined below within a fifty (50) mile radius of the Hardee's location, 101 East Admiral Doyle Drive, New Iberia, Louisiana 70560 and also including all of the geographical areas of the following parishes, Iberia, Lafayette, St. Mary, St. Martin, Vermilion, St. Landry, Jefferson Davis, Evangeline and Acadia.

B) Induce or attempt to persuade any current or former employee, agent, manager, consultant, director or other participant in Purchasers' business to terminate such employment or other relationships in order to enter into any relationship with Sellers, any business organization in which Sellers are a participant in any capacity whatsoever, or any other business or organization in competition with Purchaser's business.

C) Use contacts, proprietary information, trade secrets, confidential information, customer list, mailing list, goodwill, or other intangible property used or useful in connection with Purchaser's business.

For the purposes of this Non-Competition Agreement restrictive business shall include, but is not limited to:

The ownership of, operation of, management of or participation in any capacity whatsoever in any entity of whatever nature or kind operated as a restaurant.

 

  

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2.02. Confidentiality. From and after the date hereof, Sellers shall keep confidential and not disclose to any person (other than their attorneys, accountants and advisers) or use (except in connection with transactions contemplated by this Agreement, the preparation of tax returns and proceedings relating to taxes) any non-public information relating to the Shares of stock, Assets, Goodwill and other properties which have been sold and conveyed to Purchaser pursuant to this Agreement.

3. Sellers Warranty

Sellers warrant to Purchaser:

3.01. Sellers are the sole owners of the stock being transferred;

3.02. No stock in the Corporation has ever been issued to any other persons or entities other than Sellers;

3.03. The Corporation does not have any By-Laws or Minutes; 

3.04. All shares being transferred have been paid for in full by Sellers;

3.05.The original stock certificates that were issued to Sellers were lost and replaced with the stock certificates being sold and if the original stock certificates are located same will be transferred and delivered to Purchaser at Seller's expense;

3.06.The only known debts of the Corporation are those listed on Exhibit "A" attached;

3.07. The only restaurant equipment of the Corporation are those described on Exhibit "B" attached;

3.08.There is no pending litigation, nor is there any threatened litigation against the Corporation;

3.09.All insurance policies for the Corporation are in effect, current, paid for and are occurrence based policies; and,

3.10. All taxes of whatever nature or kind due by the Corporation has been paid or will be paid up to the effective date.

 

  

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4. Authority to Certified Public Accountant

Sellers authorize and direct the Certified Public Accountant for the Corporation, BROUSSARD POCHE LEWIS & BREAUX to provide all records and tax returns of the Corporation to Purchaser, to discuss all records and tax returns of the Corporation with Purchaser and provide copies of all records and tax returns of the Corporation to Purchaser.

5. Cash Accounts

All cash accounts of the Corporation shall be retained and delivered to Sellers on the effective date.

6. Inventory

A. If the inventory on the effective date is over $10,000.00, Purchaser will pay Sellers the amount of the inventory over $10,000.00, but not to exceed an additional $15,000.00 maximum within 45 days after the effective date.

B. If the inventory on the effective date is less than $10,000.00, Sellers will credit the Promissory note of Purchaser for the amount less than $10,000.00, commencing with the date the first quarterly installment of the Promissory note is due until the credit is exhausted.

7. True Up

Within 45 days of the effective date, Sellers and Purchaser will execute, if necessary, a true up letter, adjusting all items as set forth in this Credit Sale of Common Stock.

8. Documents Requisite in the Premises

Sellers and Purchaser will execute any additional documents requisite in the premises to accomplish the objectives of this Credit Sale of Common Stock when called upon to do so.

9. Assumptions

The Promissory note may be assumed by an entity in which Purchaser is the majority owner; provided, Purchaser will not be released of any obligation under this Credit Sale of Common Stock should the Promissory note be assumed.

  

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10. Benefit.

This agreement shall be binding upon, and inure to the benefit of the respective successors and assigns of the Corporation, Purchaser and Sellers.

11. Construction.

This Agreement is being delivered and is intended to be performed in the State of Louisiana, and shall be construed under the laws of the State of Louisiana.

 

THUS SIGNED IN DUPLICATE ON July 14, 2010 at Lafayette, Lafayette Parish, Louisiana, in the presence of the undersigned Notary Public, qualified in said State and Parish, and the undersigned competent witnesses, who have signed with the parties after due reading of the whole.

 

WITNESSES:

 

 

	 /s/  James Desselle	 	 /s/ Charles Kenneth Luke
	 Signature	 	 CHALRES KENNETH LUKE (a/k/a Kenneth Luke)
	 	 	 
	 James Desselle	 	 /s/ Barbara Anne Tarver Luke
	 Printed name	 	 BARBARA ANNE TARVER LUKE
	 	 	 
	 /s/ Telles Mitchell	 	 BLUE VICTORY HOLDINGS, INC.
	 Signature	 	 
	 	 	 
	 Telles Mitchell 	 	 By: /s/ Seenu Kasturi
	 Printed Name	 	        SEENU G. KASTURI
	 	 	        President

 

 

	 	 /s/ Lewis H. Pitman, Jr.	 
	 	 NOTARY PUBLIC	 

 

 

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