Document:

e61059731ex10_3.htm

     

    
      AMENDMENT
NO. 2 TO RIGHTS AGREEMENT

       

       

      Amendment
No. 2, dated as of June 8, 2010 (the “Amendment”), between
Chindex International, Inc., a Delaware corporation (the “Company”), and
American Stock Transfer & Trust Company, LLC, as Rights Agent (the “Rights
Agent”).

       

      WHEREAS,
the Company and the Rights Agent entered into a Rights Agreement, dated as of
June 7, 2007;

       

      WHEREAS,
the Company and the Rights Agent entered into Amendment No. 1 to Rights
Agreement, dated as of November 4, 2007 (the aforesaid Rights Agreement, as so
amended, the “Rights
Agreement”);

       

      WHEREAS,
the Company intends to enter into a certain Stock Purchase Agreement with Fosun
Industrial Co., Limited (the “Investor”) and
Shanghai Fosun Pharmaceutical (Group) Co., Ltd (the “Warrantor”) and a
certain Stockholder Agreement with the Investor and the Warrantor (the foregoing
agreements, the “Securities
Agreements”); and

       

      WHEREAS,
the Company desires to further amend the Rights Agreement as set forth herein
and to direct the Rights Agent to execute this Amendment in accordance with
Section 28 of the Rights Agreement;

       

      NOW,
THEREFORE, in consideration of the premises and mutual agreements set forth in
the Rights Agreement and this Amendment, the parties hereby agree as
follows:

       

      1.           Amendment to Definition of Acquiring Person. Section
1(a) of the Rights Agreement is hereby amended to add the following sentence at
the end thereof:

       

      Notwithstanding
anything to the contrary in this Agreement, neither the Investor nor any of its
Affiliates or Associates shall be, or shall be deemed to be, an Acquiring Person
solely by virtue of (x) the execution and delivery of the Securities Agreements
or any agreements, arrangements or understandings entered into by the Company or
the Investor as expressly contemplated by the Securities Agreements if such
agreements, arrangements or understandings are in accordance with the terms and
conditions of the respective Securities Agreements or (y) the consummation of
the transactions contemplated by the Securities Agreements upon the terms and
conditions of the respective Securities Agreements (each of the events set forth
in the foregoing clauses (x) and (y), an “Additional Exempt
Event”).

       

      2.           New
Definitions.  Section 1 of the Rights Agreement is hereby
amended to add the following defined terms at the end thereof:

       

      (hh)           “Additional Exempt
Event” shall have the meaning set forth in Section 1(a)
hereof.

      
        
           

        

        
           

          
            

          

        

        
          Page
2  

        

      

       

      (ii)           “Securities
Agreements” shall mean (i) the Stock Purchase Agreement, dated as of June
14, 2010, by and between the Company and the Investor and (ii) the Stockholder
Agreement, dated as of such date, by and between the Company and the Investor,
each as it may be amended or supplemented from time to time.

       

      3.           Amendment to Section
13(a).  The last sentence of Section 13(a) of the Rights
Agreement is hereby amended and restated to read as follows:

       

      Notwithstanding
anything to the contrary in this Agreement, the provisions of this Section 13
and Section 14 hereof shall not apply to any Exempt Event or Additional Exempt
Event.

       

      4.           Amendment to Section
31.  The last sentence of Section 31 of the Rights Agreement is
hereby amended and restated to read as follows:

       

      Notwithstanding
the foregoing, nothing in this Agreement shall be construed to give any holder
of Rights or any other Person any legal or equitable rights, remedy or claim
under this Agreement in connection with any Exempt Event or Additional Exempt
Event.

       

      5.           Directions to Rights Agent;
Officer’s Certificate.  The Company hereby directs the Rights
Agent, in accordance with the terms of Section 28 of the Rights Agreement, to
execute this Amendment in its capacity as Rights Agent.  The
undersigned officer of the Company, being duly authorized on behalf of the
Company, hereby certifies on behalf of the Company that (a) he holds the office
set forth under his name on the signature page hereto and (b) this Amendment is
in compliance with Section 28 of the Rights Agreement.

       

      6.           Miscellaneous.  The
term “Agreement” as used in the Rights Agreement shall be deemed to refer to the
Rights Agreement as amended hereby.  In accordance with the
resolutions adopted by the Company’s Board of Directors, this Amendment is
effective as of the time at which such resolutions were so
adopted.  Except as set forth in this Amendment, the Rights Agreement
shall remain in full force and effect and shall be otherwise unaffected
hereby.  This Amendment may be executed in any number of counterparts,
and each of such counterparts shall for all purposes be deemed an original, but
all such counterparts shall together constitute but one and the same instrument,
it being understood that counterparts may be delivered by facsimile or
..pdf.  Headings of the several Sections of the Amendment are inserted
for convenience only and shall not control or affect the meaning or construction
of any of the provisions hereof.

      
        
           

        

        
           

          
            

          

        

        
          Page
3  

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed as of the day and year first above written.

      

      

      
        	 
      	
                CHINDEX
      INTERNATIONAL, INC.

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:

              	 
      /s/ Roberta Lipson
	 
      	 
      	
                Name:

              	
                Roberta
      Lipson

              
	 
      	 
      	
                Title:

              	
                Chief
      Executive Officer and President

              

      

      

      

      
        	 
      	
                AMERICAN
      STOCK TRANSFER AND TRUST COMPANY, LLC, as Rights Agent

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:

              	 
      /s/ Herbert J. Lemmer
	 
      	 
      	
                Name:

              	
                Herbert
      J. Lemmer

              
	 
      	 
      	
                Title:

              	
                General
      CounselUnassociated Document

Exhibit 10.1

 

SETTLEMENT AGREEMENT AND GENERAL RELEASE

 

 

This Settlement Agreement and Release (the “Settlement Agreement”) is entered into as a document under seal as of May 3, 2010, by and between Crystal Rock Holdings, Inc., f/k/a Vermont Pure Holdings, Ltd. (“Vermont Pure”), on the one hand, and Cozen O’Connor LLP (“Cozen”) and Kevin F. Berry (“Berry”) (collectively referred to herein as “the Cozen Parties”) on the other.  (Each signatory to this Agreement is referred to herein as a “Party”, and all signatories are referred to collectively as “the Parties.”)

 

RECITALS

 

WHEREAS, Vermont Pure has filed suit against Cozen and Berry in Massachusetts Superior Court, C.A. No. 06-1814-BLS, and Cozen and Berry have brought certain counterclaims against Vermont Pure (“the Massachusetts State Court Action”);

 

WHEREAS, the Cozen Parties and Vermont Pure deny any and all liability as alleged in the Massachusetts State Court Action but wish to resolve their outstanding claims against each other;

 

NOW, THEREFORE, in consideration of the recitals, covenants, releases and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

 

  

1

  

 

AGREEMENT

 

1.           Action amended:  No later than five business days from execution hereof, Vermont Pure will deliver to counsel for Cozen a fully executed Joint Stipulated Motion to Amend Complaint (“Joint Stipulation”)  in the Massachusetts State Court Action in the form attached hereto as Exhibit A.  The Joint Stipulation shall be held in escrow by counsel for Cozen until Vermont Pure’s receipt of payment as set forth in paragraph 3 below, at which time Cozen may immediately cause it to be filed.

 

2.           Action dismissed:  Upon Vermont Pure’s receipt of payment as set forth in paragraph 3 below, and no later than 3 business days following the filing of the Joint Stipulation, Vermont Pure and the Cozen Parties will cause the Massachusetts State Court Action to be dismissed with prejudice as to the claims between Vermont Pure and the Cozen Parties, by executing and filing a joint stipulation of dismissal in the form attached hereto as Exhibit B.

 

3.           Payment:  By May 14, 2010, the Cozen Parties shall cause the sum of $3.5 million to be paid to Vermont Pure, by check made out to Crystal Rock Holdings, Inc. and delivered to Vermont Pure at the following address:

 

David Jurasek, Controller

Crystal Rock Holdings, Inc.

1050 Buckingham St.

Watertown CT 06795

4.           General Releases:  Subject only to the provisions of this Agreement:

 

(a)           Vermont Pure, for itself and all of its respective parent companies, subsidiaries, division, affiliates, predecessors, successors, assigns, and all companies owned or controlled by them, together with their representatives, agents, heirs, executors and administrators, in consideration of the mutual promises made herein, do hereby release and forever discharge the Cozen Parties and all of their respective affiliates, predecessors, successors, assigns, and all companies owned or controlled by them, and each of their past and present partners, agents, attorneys, officers, directors, shareholders, servants, employees, representatives, agents, heirs, executors, administrators, and insurers (including specifically Twin City Fire Insurance Company) from any and all claims, potential claims, demands, attorney’s fees, costs, causes of action, actions, suits, debts, sums of money, damages, and causes of action of every kind or nature, whether known or unknown, suspected or unsuspected, whether arising in law or equity, that they now have or have at any time heretofore had against them, including without limitation all claims which have been asserted or could have been asserted in the Massachusetts State Court Action.

 

  

2

  

 

(b)           Cozen, for itself and all of its respective affiliates, predecessors, successors, assigns, and all companies owned or controlled by them, and Berry, together with his representatives, agents, heirs, executors and administrators, in consideration of the mutual promises made herein, do hereby mutually release and forever discharge the Vermont Pure Parties and all of their respective parent companies, subsidiaries, divisions, affiliates, predecessors, successors, assigns, and all companies owned or controlled by them, and each of their past and present officers, agents, attorneys, officers, directors, shareholders, servants, employees, representatives, counsel, agents, heirs, and executors (including, without limitation, Ross Rapaport, Peter Baker, and Jeffrey Williams) from any and all claims, potential claims, demands, attorney’s fees, costs, causes of action, actions, suits, debts, sums of money, damages, and causes of action of every kind or nature, whether known or unknown, suspected or unsuspected, whether arising in law or equity, that they now have or have at any time heretofore had against them, including without limitation all claims which have been asserted or could have been asserted in the Massachusetts State Court Action.

 

5.           No Admission of Liability:  The Parties acknowledge that this Settlement Agreement is given in settlement of disputed claims and is not, and shall not be construed as, an admission of liability, or as an admission of the truthfulness of any of the factual allegations made by either Party.  All Parties expressly deny all liability.

 

6.           Confidentiality:  Subject only to the provisions of Paragraph 7 below, the Parties expressly agree that neither they nor any person or organization acting on their behalf will, at any time, directly or indirectly, except as expressly authorized in writing by the non-disclosing party, publicize, divulge or disclose to any person, entity, or media representative, the terms of this Settlement Agreement and the matters released herein, except (a) as required by law or by tax authorities; (b) a Party may disclose this Settlement Agreement to a legal advisor, accountant, or auditor to the extent necessary to receive professional advice; and (c) a party may state that the claims in the action were settled without admission of liability by any party.

 

  

3

  

 

7.           Vermont Pure public disclosure:  The parties acknowledge that Vermont Pure is a public company with a class of equity securities registered under the Securities Exchange Act of 1934 (the “Exchange Act”), and that accordingly Vermont Pure is required to disclose certain material transactions.  As required by the Exchange Act, Vermont Pure will file a Current Report on Form 8-K with the Securities and Exchange Commission (“SEC”) in connection with execution and delivery of this Settlement Agreement, which Form 8-K will contain the language set forth in Exhibit C hereto.  Further, Vermont Pure will, as required by the Exchange Act, file this Settlement Agreement with the SEC as an exhibit to its Quarterly Report on Form 10-Q for the Quarter ending April 30, 2010, which is required to be filed on or before June 14, 2010.  It is further understood that related disclosures will occur in portions of Vermont Pure’s Form 10-Q and Form 10-K reports filed after the date hereof, and related disclosures may be required to be made in other filings of Vermont Pure under the Exchange Act, the Securities Act of 1933, or other federal securities laws, in accordance with the disclosure requirements under such laws.  Vermont Pure will endeavor to keep the substance of such disclosures consistent with Exhibit C, and will make them no more specific than Exhibit C, unless otherwise required by law.

 

8.           Non-disparagement:  Vermont Pure’s officers and members of its board of directors will not disparage the Cozen Parties, and the Cozen Parties will not disparage Vermont Pure, its officers, or members of its board of directors.

 

 

  

4

  

9.           Authority to Sign:  All Parties represent and warrant to the others that the individual executing this Settlement Agreement on such Party’s behalf is fully authorized to do so, is executing the Agreement willingly and knowingly, and, further, that such individual is fully authorized to bind the Party on whose behalf it is executing this Settlement Agreement to the terms of all releases of claims, undertakings and obligations of that Party as set forth in this Settlement Agreement.

 

10.           Choice of Law:  The Settlement Agreement shall be governed by and construed and enforced in accordance with the substantive and procedural laws of the Commonwealth of Massachusetts (without regard to the conflict of laws provisions thereof).

 

11.           Execution in Counterparts:  The Settlement Agreement may be executed in counterparts, which together shall comprise the executed Settlement Agreement.

 

12.           Amendments:  This Settlement Agreement may be modified, amended or supplemented only by a written instrument which specifically references this Settlement Agreement and is signed by all Parties.

 

13.           Each Party Represented by Counsel:  Each Party has been advised by its own legal counsel in negotiating this Settlement Agreement and, in executing this Settlement Agreement, and does not rely upon any representations, promises, or inducements made by any other Party or its representatives, with the sole exception of the promises and provisions set forth herein.  The fact that a Party or counsel for a party drafted any recital or provision of this Settlement Agreement shall not cause that recital or provision to be construed against the drafting Party.

 

14.           Entire Agreement:  This Settlement Agreement shall constitute the entire agreement of the Parties with respect to its subject matter and supersedes any prior or contemporaneous agreement, contract or understanding.  It shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

 

  

5

  

IN WITNESS WHEREOF, the Parties’ authorized representatives have duly executed this Agreement as an instrument under seal on the day and year first written above.

 

 

                                                                                     

 

 

	 	 	 	 
	 CRYSTAL ROCK HOLDINGS, INC.	 	 	 
	 f/k/a VERMONT PURE HOLDINGS LTD	 	 COZEN O’CONNOR LLP	 
	 	 	 	 
	 	 	 	 
	 By:  /s/ Peter K. Baker   	 	 By:  /s/ Cozen O’Connor LLP	 
	 Title: CEO	 	 Title: Co-Firm Counsel	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 KEVIN F. BERRY	 
	 	 	 /s/ Kevin F. Berry	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

    

 

 

 

 

  

6

  

EXHIBIT A

COMMONWEALTH OF MASSACHUSETTS

SUFFOLK, ss.

 

	 	 	 	 	 
	 VERMONT PURE HOLDINGS, LTD., 	 )	 SUPERIOR COURT	 	 
	 	 )	 DEPARTMENT	 	 
	 Plaintiff, 	 )	 	 	 
	 	 )	 	 	 
	 	 )	 	 	 
	 v.	 )	 Civil Action No. 06-1814 (BLS1)	 	 
	 	 )	 	 	 
	 	 )	 	 	 
	 KEVIN F. BERRY, and	 )	 	 	 
	 COZEN O’CONNOR (a professional corporation), 	 )	 	 	 
	 	 )	 	 	 
	 Defendants.	 )	 	 	 
	 	 	 	 	 

 

                                                                                  

NOTICE OF FILING AMENDED COMPLAINT

Pursuant to Rule 15(a) of the Massachusetts Rules of Civil Procedure, the Plaintiff, Vermont Pure Holdings, Ltd., files the attached Amended Complaint in the above-referenced action, with the written consent of the defendants, Kevin F. Berry and Cozen O’Connor.

Respectfully submitted,

DATED this ____ day of May, 2010                                          VERMONT PURE HOLDINGS, LTD.,

By Its Counsel,

Michael P. Boudett, BBO No. 558757

Foley Hoag LLP

155 Seaport Boulevard

Boston, Massachusetts 02210-2600

Tel:    (617) 832-1180

Fax:    (617) 832-7000

Jeffrey L. Williams, BBO No. 565378

Jorden Burt LLP

175 Powder Forest Drive, Suite 201

Simsbury, Connecticut  06089

Tel:   (860) 392-5000

Fax:  (860) 392-5058

  

7

  

The defendants hereby consent to Plaintiff filing the attached Amended Complaint.

KEVIN F. BERRY and COZEN O’CONNOR

By their counsel,

Edward P. Leibensperger

McDERMOTT WILL & EMERY, LLP

28 State Street

Boston, MA  02109-1807

Tel:  (617) 535-4000

Fax: (617) 535-3800

eleibensperger@mwe.com

Steven W. Kasten

Yurko, Salvesen & Remz, P.C.

One Washington Mall, 11th Floor

Boston, MA  02108-2603

Tel:  (617) 723-6900, ext. 12

Fax: (617) 723-6905

swk@bizlit.com

  

8

  

COMMONWEALTH OF MASSACHUSETTS

SUFFOLK, ss.

 

	 	 	 	 	 
	 VERMONT PURE HOLDINGS, LTD.,  	 )	 SUPERIOR COURT	 	 
	 	 )	 DEPARTMENT	 	 
	 Plaintiff,  	 )	 	 	 
	 	 )	 	 	 
	 v.	 )	 Civil Action No. 06-1814 (BLS1)	 	 
	 THOMAS M. SOBOL,   	 )	 	 	 
	 GARVE W. IVEY, JR.,  	 )	 	 	 
	 KEVIN F. BERRY,	 )	 	 	 
	 HAGENS BERMAN SOBOL SHAPIRO, LLP, 	
 )

 )

	 	 	 
	 IVEY & RAGSDALE (a partnership), and  	 )	 	 	 
	 COZEN O’CONNOR (a professional corporation	
 )

 )

	 	 	 
	 	 )	 	 	 
	 Defendants.	 )	 	 	 
	 	 	 	 	 

 

                                          

  

9

  

AMENDED COMPLAINT AND DEMAND FOR JURY TRIAL

 

NOW COMES the Plaintiff and complains against the Defendants as follows:

1.           Vermont Pure is a Delaware corporation with its principal place of business in Watertown, Connecticut.

2.           Defendant Thomas M. Sobol is an attorney residing in Essex County, Massachusetts.  Defendant Sobol is a Partner with Defendant Hagens Berman Sobol Shapiro, LLP.

3.           Defendant Hagens Berman Sobol Shapiro, LLP, formerly known as Hagens Berman, LLP (together, “HB”), is a limited partnership based in Seattle, Washington, with branch offices in Middlesex County, Massachusetts, California, Illinois, and Arizona.

4.           Defendant Garve W. Ivey, Jr. is an attorney residing in Alabama.  Defendant Ivey is a Partner with Defendant Ivey & Ragsdale.

5.           Defendant Ivey & Ragsdale (“I&R”) is a law partnership with usual places of business in Jasper, Alabama, and Birmingham, Alabama.

6.           Defendant Kevin F. Berry is an attorney and is a Shareholder of Defendant Cozen O’Connor.

7.           Defendant Cozen O’Connor (“Cozen”) is a national and international law firm based in Philadelphia, Pennsylvania, with twenty-four offices located in the United States and abroad.

8.           Jurisdiction is properly brought in this Court pursuant to Mass. Gen. Laws Chapter 223A §§ 2-3 (2006).

9.           Venue is proper in this Court pursuant to Mass. Gen. Laws Chapter 223 (2006) and Administrative Directive No. 03-1 (“Superior Court Business Litigation Session Extension and Expanded Venue”).

10.         In 2003, Vermont Pure retained the defendants to represent it in pursuing potential claims against Nestle Waters North America, arising from alleged false advertising of the nature and source of Poland Spring Natural Spring Water.  Defendants Sobol, HB, Ivey and I&R simultaneously represented Vermont Pure, three other water bottlers, and a consumer of Poland Spring water, Lori Ehrlich (the “Claimants”) in the Poland Spring Matter.  Cozen and Berry represented only Vermont Pure.

11.         As a result of the defendants’ failure to exercise reasonable care in the course of representing Vermont Pure during 2003, Vermont Pure lost an opportunity to effectuate a settlement with Nestle in which Vermont Pure would have received $8.91 million net of attorneys fees.

 

WHEREFORE, Plaintiff prays that judgment enter in favor of Plaintiff against Defendants, with the award of actual damages, plus interest, reasonable expenses, and such further relief as the Court deems just and proper.

 

JURY DEMAND

 

Plaintiffs hereby demands a trial by jury on all issues and causes of action raised in this Complaint which are appropriate fur jury consideration.

 

PLAINTIFF,

 

DATED this ____ day of May, 2010                                                VERMONT PURE HOLDINGS, LTD.,

By Its Counsel,

Michael P. Boudett, BBO No. 558757

Foley Hoag LLP

155 Seaport Boulevard

Boston, Massachusetts 02210-2600

Tel:    (617) 832-1180

Fax:    (617) 832-7000

Jeffrey L. Williams, BBO No. 565378

Jorden Burt LLP

175 Powder Forest Drive, Suite 201

Simsbury, Connecticut  06089

Tel:   (860) 392-5000

Fax:  (860) 392-5058

 

  

10

  

 

EXHIBIT B

COMMONWEALTH OF MASSACHUSETTS

 

SUFFOLK, ss.

	 	 	 	 
	 VERMONT PURE HOLDINGS, LTD.,  	 )	 SUPERIOR COURT	 
	 	 )	 DEPARTMENT	 
	 Plaintiff, 	 )	 	 
	 	 )	 	 
	 v.	 )	 Civil Action No. 06-1814 (BLS1)	 
	 	 )	 	 
	 	 )	 	 
	 KEVIN F. BERRY, and  	 )	 	 
	 COZEN O’CONNOR (a professional corporation),	 )	 	 
	 	 )	 	 
	 Defendants.	 )	 	 
	 	 	 	 

 

 

STIPULATION OF DISMISSAL

Plaintiff Vermont Pure Holdings, Ltd. and defendants Kevin F. Berry and Cozen O’Connor, P.C., being the sole remaining parties in this case, hereby stipulate to the dismissal of this action, and all claims and counterclaims between them, with prejudice, and with the parties to bear their own costs.

 

	
VERMONT PURE HOLDINGS, LTD.,

By Its Counsel,

 

 

Michael P. Boudett, BBO No. 558757

Foley Hoag LLP

155 Seaport Boulevard

Boston, Massachusetts 02210-2600

Tel:    (617) 832-1180

Fax:    (617) 832-7000

 

 

 

Jeffrey L. Williams, BBO No. 565378

Jorden Burt LLP

175 Powder Forest Drive, Suite 201

Simsbury, Connecticut  06089

Tel:   (860) 392-5000

Fax:  (860) 392-5058

 

	
KEVIN P. BERRY and COZEN O’CONNOR

By their counsel,

 

 

Edward P. Leibensperger

McDERMOTT WILL & EMERY, LLP

28 State Street

Boston, MA  02109-1807

Tel:  (617) 535-4000

Fax: (617) 535-3800

eleibensperger@mwe.com

 

 

Steven W. Kasten

Yurko, Salvesen & Remz, P.C.

One Washington Mall, 11th Floor

Boston, MA  02108-2603

Tel:  (617) 723-6900, ext. 12

Fax: (617) 723-6905

swk@bizlit.com

 

 

  

11

  

EXHIBIT C

 

 

We refer to the Company’s lawsuit filed in May 2006 in the Superior Court Department, County of Suffolk, Massachusetts, CA No. 06-1814, against three law firms and individual members thereof that had been representing the Company in litigation, as more fully described in Part I, Item 3 of our Annual Report on Form 10-K for the Year Ended October 31, 2009, and Part II, Item 1 of our Quarterly Report on Form 10-Q for the Quarter Ended January 31, 2010.  We incorporate both of those Items by reference here.

 

 

As previously reported, in July 2009 we entered into settlement agreements with some of the defendants in the lawsuit and settled the case in part, receiving at that time a payment of $3 million.

 

 

On May 3, 2010, the Company reached a settlement with all of the remaining defendants in the action, pursuant to which mutual releases have been executed.  The case is now concluded.  Pursuant to the settlement, the Company will receive a one-time payment of $3.5 million, which will be reflected in the quarter ending July 31, 2010.

 

 

 

 

 

 

12

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