Document:

Exhibit 4.2

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.  THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a) INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, (b) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE.  NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.

 

 

97/8% SENIOR SUBORDINATED NOTES DUE 2017

 

No.

 

	
 
    	
CUSIP NO.
    
	
 
    	
ISIN NO.
    

 

RADIATION THERAPY SERVICES, INC.

 

promises to pay to                    or registered assigns, the principal sum set forth on the Schedule of Exchanges of Interests in the Global Note attached hereto on April 15, 2017.

 

Interest Payment Dates:   April 15 and October 15.

 

Record Dates:   April 1 and October 1.

 

Dated:                   

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its duly authorized officer.

 

	
 
    	
RADIATION THERAPY SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
This   is one of the Global Notes referred to in
    	
 
    
	
the   within-mentioned Indenture:
    	
 
    
	
 
    	
 
    
	
WELLS   FARGO BANK, NATIONAL
    	
 
    
	
ASSOCIATION,   as Trustee
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:                                       ,   2011
    	
 
    
			

 

 

(Back of Note)

 

97/8% SENIOR SUBORDINATED NOTES DUE 2017

 

Capitalized terms used herein shall have the meanings assigned to them in this Indenture referred to below unless otherwise indicated.

 

1.                                       Interest.  Radiation Therapy Services, Inc., a Florida corporation (the “Company”), promises to pay interest on the principal amount of this Note at 97/8% per annum until maturity and shall pay Additional Interest, if any, as provided in Section 5 of the Registration Rights Agreement.  The Company shall pay interest semi-annually on April 15 and October 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”).  Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from April 20, 2010; provided, however, that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be October 15, 2010.  The Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time at a rate equal to the then applicable interest rate on the Notes to the extent lawful; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Interest, if any (without regard to any applicable grace periods), from time to time at the same rate to the extent lawful.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

 

2.                                       Method of Payment.  The Company shall pay interest on the Notes (except defaulted interest) to the Persons in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on the April 1 or October 1 next preceding the Interest Payment Date, even if such Notes are cancelled after such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of this Indenture with respect to defaulted interest.  The Notes shall be payable as to principal, premium, if any, and interest and Additional Interest, if any, at the office or agency of the Company maintained for such purpose, or, at the option of the Company, payment of principal, premium, if any, and interest and Additional Interest, if any, may be made by check mailed to the Holders at their addresses set forth in the Security Register; provided, however, that payment by wire transfer of immediately available funds shall be required with respect to principal of and interest and Additional Interest, if any, and premium, if any, on, all Global Notes and all other Notes the Holders of which shall have provided wire transfer instructions to the Company or the Paying Agent.  Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

3.                                       Paying Agent and Registrar.  Initially, Wells Fargo Bank, National Association, the Trustee under this Indenture, shall act as Paying Agent and Registrar.  The Company may change any Paying Agent or Registrar without notice to any Holder.  The Company or any of its Subsidiaries may act in any such capacity.

 

4.                                       Indenture.  The Company issued the Notes under an Indenture dated as of April 20, 2010 (“Indenture”) among the Company, the guarantors party thereto (the “Guarantors”) and the Trustee.  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code Sections 77aaa-77bbbb).  The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms.  To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

 

5.                                       Optional Redemption.

 

(a)                                  Except as set forth in clauses (b) and (c) below, the Notes are not redeemable before April 15, 2014. Thereafter, the Company may redeem the Notes at its option, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as percentages of the principal amount thereof) plus accrued and unpaid interest, if any, thereon to the applicable redemption date if redeemed during the twelve-month period commencing on April 15 of the year set forth below:

 

 

	
Year
    	
 
    	
Percentage
    	
 
    
	
2014  
    	
 
    	
104.938
    	
%
    
	
2015  
    	
 
    	
102.469
    	
%
    
	
2016 and thereafter  
    	
 
    	
100.000
    	
%
    

 

(b)                                 At any time on or prior to April 15, 2014, the Notes may also be redeemed or purchased (by the Company or any other Person) in whole or in part, at the Company’s option, at a price equal to 100% of the principal amount thereof plus the Applicable Premium as of, and accrued but unpaid interest, if any, to, the date of redemption or purchase (the “Redemption Date”) (subject to the right of Holders of record on the Regular Record Date to receive interest due on the relevant Interest Payment Date). Such redemption or purchase may be made upon notice mailed by first-class mail to each Holder’s registered address, not less than 30 nor more than 60 days prior to the Redemption Date. The Company may provide in such notice that payment of such price and performance of the Company’s obligations with respect to such redemption or purchase may be performed by another Person. Any such redemption, purchase or notice may, at the Company’s discretion, be subject to the satisfaction of one or more conditions precedent.

 

(c)                                  At any time, or from time to time, on or prior to April 15, 2013, the Company may, at its option, use the net cash proceeds of one or more Equity Offerings to redeem up to 35% of the principal amount of the Notes at a redemption price of 109.875% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to the Redemption Date; provided that:

 

(i)                                     at least 65% of the principal amount of Notes originally issued under this Indenture remains outstanding immediately after any such redemption, and

 

(ii)                                  the Company makes such redemption not more than 90 days after the consummation of any such Equity Offering.

 

(d)                                 Any notice to holders of Notes of such a redemption shall include the appropriate calculation of the redemption price, but need not include the redemption price itself.  The actual redemption price, calculated as described above, shall be set forth in an Officers’ Certificate delivered to the Trustee no later than two business days prior to the redemption date.

 

(e)                                  Any prepayment pursuant to this paragraph shall be made pursuant to the provisions of Sections 3.01 through 3.06 of the Indenture.

 

6.                                       Mandatory Redemption.  The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes.

 

7.                                       Repurchase at Option of Holder.

 

(a)                                  Upon the occurrence of a Change of Control, Article 3 and Section 4.15 of the Indenture shall apply to the extent applicable.

 

(b)                                 If the Company or one of its Restricted Subsidiaries consummates any Asset Sales, Article 3 and Section 4.12 of the Indenture shall apply to the extent applicable.

 

8.                                       Notice of Redemption.  Notice of redemption shall be mailed at least 30 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address.  Notes in denominations larger than $2,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed.  On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption.

 

9.                                       Denominations, Transfer, Exchange.  The Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000.  This Note shall represent the aggregate principal amount of outstanding Notes from time to time endorsed hereon and the aggregate principal amount of Notes 

 

 

represented hereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  The transfer of Notes may be registered and Notes may be exchanged as provided in this Indenture.  The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by this Indenture.  The Company need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part.  Also, the Company need not exchange or register the transfer of any Notes for a period beginning at the opening of business 15 days before the day of any selection of Notes for redemption, or during the period between a record date (including a Regular Record Date) and the next succeeding Interest Payment Date.

 

10.                                 Persons Deemed Owners.  The registered Holder of a Note may be treated as its owner for all purposes.

 

11.                                 Amendment, Supplement and Waiver.  The Indenture, the Guarantees or the Notes may be amended or supplemented as provided in the Indenture.

 

12.                                 Defaults and Remedies.  Each of the following is an Event of Default under this Indenture:   (a) the failure to pay interest on any notes when the same becomes due and payable and the default continues for a period of 30 days (whether or not such payment shall be prohibited by the subordination provisions of this Indenture); (b) the failure to pay the principal on any notes, when such principal becomes due and payable, at maturity, upon redemption or otherwise (including the failure to make a payment to purchase notes tendered pursuant to a Change of Control Offer or a Net Proceeds Offer) (whether or not such payment shall be prohibited by the subordination provisions of this Indenture); (c) a default in the observance or performance of any other covenant or agreement contained in this Indenture 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 notes (except in the case of a default with respect to Section 5.01 of the Indenture, which will constitute an Event of Default with such notice requirement but without such passage of time requirement); (d) 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 30 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 30-day period described above has elapsed), aggregates $15.0 million or more at any time; (e) one or more judgments in an aggregate amount in excess of $15.0 million, net of any amount covered by insurance issued by a reputable and creditworthy insurer, 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; (f) certain events of bankruptcy affecting the Company or any of its Significant Subsidiaries; or (g)  any Guarantee of a Significant Subsidiary ceases to be in full force and effect or any Guarantee of a Significant Subsidiary is declared to be null and void and unenforceable or any Guarantee of a Significant Subsidiary is found to be invalid or any Guarantor that is a Significant Subsidiary denies its liability under its Guarantee (other than by reason of release of a Guarantor in accordance with the terms of this Indenture).

 

If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable.  Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency described in this Indenture, all outstanding Notes shall become due and payable without further action or notice.  Holders may not enforce this Indenture or the Notes except as provided in this Indenture.  The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal or interest or Additional Interest) if it determines that withholding notice is in their interest.  The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences under this Indenture, except a continuing Default or Event of Default (i) in the payment of the principal of, premium, if any, or interest on, the Notes and (ii) in respect of a covenant or provision which under this Indenture cannot be modified or amended without the consent of the Holder of each Note affected by such modification or amendment.

 

 

The Company is required to deliver to the Trustee annually a statement regarding compliance with this Indenture, and the Company is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

 

13.                                 Subordination.  Payment of principal, interest and premium and Additional Interest, if any, on the Notes is subordinated to the prior payment of Senior Debt on the terms provided in this Indenture.

 

14.                                 Trustee Dealings With Company.  Subject to certain limitations, the Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if it were not Trustee.

 

15.                                 No Recourse Against Others.  No past, present or future director, officer, employee, incorporator or stockholder of the Company or of any Guarantor, as such, shall have any liability for any obligations of the Company or any Guarantor under this Indenture, the Notes, the Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and releases all such liability.

 

16.                                 Authentication.  This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

17.                                 Abbreviations.  Customary abbreviations may be used in the name of a Holder or an assignee, such as:   TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

18.                                 Additional Rights of Holders of Restricted Global Notes and Restricted Definitive Notes.  In addition to the rights provided to Holders of Notes under this Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes that are Initial Notes shall have all the rights set forth in the Registration Rights Agreement, dated as of April 20, 2010, between the Company and the parties named on the signature pages thereto or, in the case of Additional Notes, Holders of Restricted Global Notes and Restricted Definitive Notes shall have the rights set forth in one or more registration rights agreement, if any, among the Company and the other parties thereto, relating to rights given by the Company to the purchasers of any Additional Notes.

 

19.                                 CUSIP Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

The Company shall furnish to any Holder upon written request and without charge a copy of this Indenture.  Requests may be made to:

 

Radiation Therapy Services, Inc.
 2270 Colonial Boulevard
 Fort Myers, Florida  33907
 Attention:   Kerrin E. Gillespie
 Telecopier No.:   (239) 931-7380

 

20.                                 Governing Law.  The internal law of the State of New York shall govern and be used to construe this Note without giving effect to applicable principals of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby.

 

 

Option of Holder to Elect Purchase

 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.12 or 4.15 of this Indenture, check the box below:

 

o  Section 4.12

 

o  Section 4.15

 

If you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.12 or Section 4.15 of this Indenture, state the amount you elect to have purchased:

 

	
$
    
	
 
    
	
Date:  
    	
 
    	
 
    	
Your Signature:
    	
 
    
	
 
    	
(Sign exactly as your name appears on the Note)
    
	
 
    	
Tax Identification No.:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SIGNATURE GUARANTEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signatures   must be guaranteed by an “eligible guarantor institution” meeting the   requirements of the Registrar, which requirements include membership or   participation in the Security Transfer Agent Medallion Program (“STAMP”) or   such other “signature guarantee program” as may be determined by the   Registrar in addition to, or in substitution for, STAMP, all in accordance   with the Securities Exchange Act of 1934, as amended.
    

 

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

(I) or (we) assign and transfer this Note to

 

	
 
    
	
(Insert assignee’s social   security or other tax I.D. no.)
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type assignee’s   name, address and zip code)
    
	
 
    
	
and irrevocably appoint
    	
 
    
	
as agent to transfer this Note on the books of the   Company. The agent may substitute another to act for him.
    
	
 
    
	
 
    
	
Date:
    	
 
    	
 
    
	
 
    
	
 
    	
Your Signature:
    	
 
    
	
 
    	
 
    	
(Sign   exactly as your name appears on the face of this Note)
    
	
 
    
	
 
    	
 
    
	
 
    	
Signature Guarantee: 
    	
 
    	
 
    
	
 
    	
 
    	
*
    	
 
    
	
 
    
	    

    
	
* Participant in a   recognized Signature Guarantee Medallion Program.
    
									

 

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The initial principal amount of this Global Note is                       ($       ). The following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made:

 

	
Date of Exchange
    	
 
    	
Amount of decrease 
   in Principal Amount 
   of this Global Note
    	
 
    	
Amount of increase 
   in Principal Amount 
   of this Global Note
    	
 
    	
Principal Amount of 
   this Global Note 
   following such decrease 
   (or increase)
    	
 
    	
Signature of authorized 
   signatory of 
   Trustee or Note CustodianExhibit 10.1

 

EXECUTION COPY

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

BY AND AMONG

 

RADIATION THERAPY SERVICES INTERNATIONAL, INC.,

 

RADIATION THERAPY SERVICES, INC.,

 

MAIN FILM B.V.,

 

RADIATION THERAPY INVESTMENTS, LLC,

 

AND

 

ALEJANDRO DOSORETZ

 

 

Dated as of March 1, 2011

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Definitions
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Transaction
    	
 
    	
12
    
	
 
    	
 
    	
2.1
    	
 
    	
Sale and Purchase
    	
 
    	
12
    
	
 
    	
 
    	
2.2
    	
 
    	
Purchase Price
    	
 
    	
12
    
	
 
    	
 
    	
2.3
    	
 
    	
Earnout
    	
 
    	
12
    
	
 
    	
 
    	
2.4
    	
 
    	
New Projects
    	
 
    	
14
    
	
 
    	
 
    	
2.5
    	
 
    	
Withholding Taxes
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Closing
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Representations and Warranties of Seller
    	
 
    	
16
    
	
 
    	
 
    	
4.1
    	
 
    	
Authorization of Transaction
    	
 
    	
16
    
	
 
    	
 
    	
4.2
    	
 
    	
Non-Contravention as to Seller
    	
 
    	
17
    
	
 
    	
 
    	
4.3
    	
 
    	
Brokers’ Fees
    	
 
    	
17
    
	
 
    	
 
    	
4.4
    	
 
    	
Capitalization
    	
 
    	
17
    
	
 
    	
 
    	
4.5
    	
 
    	
Seller Expenses
    	
 
    	
17
    
	
 
    	
 
    	
4.6
    	
 
    	
Related Party Payments
    	
 
    	
17
    
	
 
    	
 
    	
4.7
    	
 
    	
Indebtedness
    	
 
    	
18
    
	
 
    	
 
    	
4.8
    	
 
    	
Lock Box
    	
 
    	
18
    
	
 
    	
 
    	
4.9
    	
 
    	
Organization, Qualification and Authority
    	
 
    	
18
    
	
 
    	
 
    	
4.10
    	
 
    	
Title to the Assets
    	
 
    	
18
    
	
 
    	
 
    	
4.11
    	
 
    	
Subsidiaries
    	
 
    	
18
    
	
 
    	
 
    	
4.12
    	
 
    	
Financial Statements
    	
 
    	
18
    
	
 
    	
 
    	
4.13
    	
 
    	
Accounts Receivable
    	
 
    	
19
    
	
 
    	
 
    	
4.14
    	
 
    	
Absence of Certain Changes
    	
 
    	
19
    
	
 
    	
 
    	
4.15
    	
 
    	
Certain Payments
    	
 
    	
20
    
	
 
    	
 
    	
4.16
    	
 
    	
Non-Contravention as to the Group Companies; Required   Consents
    	
 
    	
20
    
	
 
    	
 
    	
4.17
    	
 
    	
Legal Matters
    	
 
    	
21
    
	
 
    	
 
    	
4.18
    	
 
    	
Compliance with Applicable Law
    	
 
    	
21
    
	
 
    	
 
    	
4.19
    	
 
    	
Taxes
    	
 
    	
22
    
	
 
    	
 
    	
4.20
    	
 
    	
Environmental Matters
    	
 
    	
22
    
	
 
    	
 
    	
4.21
    	
 
    	
Agreements
    	
 
    	
23
    
	
 
    	
 
    	
4.22
    	
 
    	
Third Party Reimbursement
    	
 
    	
24
    
	
 
    	
 
    	
4.23
    	
 
    	
Inspections and Investigations
    	
 
    	
24
    
	
 
    	
 
    	
4.24
    	
 
    	
Rates and Reimbursement Appeals
    	
 
    	
25
    
	
 
    	
 
    	
4.25
    	
 
    	
Licenses
    	
 
    	
25
    
	
 
    	
 
    	
4.26
    	
 
    	
Insurance
    	
 
    	
25
    
	
 
    	
 
    	
4.27
    	
 
    	
Intellectual Property
    	
 
    	
25
    
	
 
    	
 
    	
4.28
    	
 
    	
Licensure
    	
 
    	
26
    
	
 
    	
 
    	
4.29
    	
 
    	
Books and Records
    	
 
    	
26
    
	
 
    	
 
    	
4.30
    	
 
    	
Real Property and Vehicles
    	
 
    	
26
    

 

i

 

	
 
    	
 
    	
4.31
    	
 
    	
The Facilities
    	
 
    	
27
    
	
 
    	
 
    	
4.32
    	
 
    	
Compensation
    	
 
    	
27
    
	
 
    	
 
    	
4.33
    	
 
    	
Employee Benefit Matters
    	
 
    	
28
    
	
 
    	
 
    	
4.34
    	
 
    	
Labor Relations
    	
 
    	
28
    
	
 
    	
 
    	
4.35
    	
 
    	
Financial Guaranties
    	
 
    	
28
    
	
 
    	
 
    	
4.36
    	
 
    	
Affiliate Transactions
    	
 
    	
28
    
	
 
    	
 
    	
4.37
    	
 
    	
Bank Accounts
    	
 
    	
28
    
	
 
    	
 
    	
4.38
    	
 
    	
Customers; Suppliers and Facility Mandates
    	
 
    	
29
    
	
 
    	
 
    	
4.39
    	
 
    	
Absence of Undisclosed Liabilities
    	
 
    	
29
    
	
 
    	
 
    	
4.40
    	
 
    	
True and Correct Representations and Warranties and   Statements of Facts
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Representations and Warranties of Buyers
    	
 
    	
30
    
	
 
    	
 
    	
5.1
    	
 
    	
Organization of Buyer
    	
 
    	
30
    
	
 
    	
 
    	
5.2
    	
 
    	
Authorization of Transaction
    	
 
    	
30
    
	
 
    	
 
    	
5.3
    	
 
    	
Non-Contravention
    	
 
    	
30
    
	
 
    	
 
    	
5.4
    	
 
    	
Brokers’ Fees
    	
 
    	
30
    
	
 
    	
 
    	
5.5
    	
 
    	
Capitalization
    	
 
    	
30
    
	
 
    	
 
    	
5.6
    	
 
    	
Additional Representations
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Conditions Precedent
    	
 
    	
30
    
	
 
    	
 
    	
6.1
    	
 
    	
Obligations of Buyers
    	
 
    	
30
    
	
 
    	
 
    	
6.2
    	
 
    	
Obligations of Seller
    	
 
    	
31
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Delivery of Documents
    	
 
    	
32
    
	
 
    	
 
    	
7.1
    	
 
    	
Delivery of Buyer’s Documents
    	
 
    	
32
    
	
 
    	
 
    	
7.2
    	
 
    	
Seller’s Closing Deliveries
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Indemnification
    	
 
    	
33
    
	
 
    	
 
    	
8.1
    	
 
    	
Indemnification of Buyers
    	
 
    	
33
    
	
 
    	
 
    	
8.2
    	
 
    	
Indemnification of Seller
    	
 
    	
34
    
	
 
    	
 
    	
8.3
    	
 
    	
Survival
    	
 
    	
34
    
	
 
    	
 
    	
8.4
    	
 
    	
Manner of Calculation
    	
 
    	
34
    
	
 
    	
 
    	
8.5
    	
 
    	
Limitations on Indemnification Obligations
    	
 
    	
34
    
	
 
    	
 
    	
8.6
    	
 
    	
Notice and Opportunity to Defend
    	
 
    	
35
    
	
 
    	
 
    	
8.7
    	
 
    	
Payment
    	
 
    	
36
    
	
 
    	
 
    	
8.8
    	
 
    	
Indemnification Rights
    	
 
    	
36
    
	
 
    	
 
    	
8.9
    	
 
    	
No Double-Recovery
    	
 
    	
37
    
	
 
    	
 
    	
8.10
    	
 
    	
Letter Agreement
    	
 
    	
37
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Restrictive Covenants
    	
 
    	
37
    
	
 
    	
 
    	
9.1
    	
 
    	
Restrictive Covenants
    	
 
    	
37
    
	
 
    	
 
    	
9.2
    	
 
    	
Reasonableness of Restrictive Covenants
    	
 
    	
38
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Disclosure of Information
    	
 
    	
38
    
	
 
    	
 
    	
10.1
    	
 
    	
Confidential Information
    	
 
    	
38
    
	
 
    	
 
    	
10.2
    	
 
    	
Injunctive Relief
    	
 
    	
39
    

 

ii

 

	
 
    	
 
    	
10.3
    	
 
    	
Other Remedies
    	
 
    	
39
    
	
 
    	
 
    	
10.4
    	
 
    	
Survival
    	
 
    	
39
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Directors and Officers
    	
 
    	
39
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
Further Assurances
    	
 
    	
39
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
Miscellaneous
    	
 
    	
39
    
	
 
    	
 
    	
13.1
    	
 
    	
Notices
    	
 
    	
39
    
	
 
    	
 
    	
13.2
    	
 
    	
Entire Agreement
    	
 
    	
41
    
	
 
    	
 
    	
13.3
    	
 
    	
Transfer Taxes
    	
 
    	
41
    
	
 
    	
 
    	
13.4
    	
 
    	
Waivers and Amendments
    	
 
    	
41
    
	
 
    	
 
    	
13.5
    	
 
    	
Governing Law
    	
 
    	
41
    
	
 
    	
 
    	
13.6
    	
 
    	
Consent to Jurisdiction and Services of Process
    	
 
    	
41
    
	
 
    	
 
    	
13.7
    	
 
    	
Waiver of Jury Trial
    	
 
    	
41
    
	
 
    	
 
    	
13.8
    	
 
    	
Savings Clause
    	
 
    	
42
    
	
 
    	
 
    	
13.9
    	
 
    	
Construction of Certain Terms and Phrases
    	
 
    	
42
    
	
 
    	
 
    	
13.10
    	
 
    	
Applicable Currency
    	
 
    	
42
    
	
 
    	
 
    	
13.11
    	
 
    	
Exhibits and Schedules
    	
 
    	
42
    
	
 
    	
 
    	
13.12
    	
 
    	
Headings
    	
 
    	
42
    
	
 
    	
 
    	
13.13
    	
 
    	
Expenses
    	
 
    	
42
    
	
 
    	
 
    	
13.14
    	
 
    	
Assignment
    	
 
    	
42
    
	
 
    	
 
    	
13.15
    	
 
    	
Reproductions
    	
 
    	
42
    
	
 
    	
 
    	
13.16
    	
 
    	
Counterparts
    	
 
    	
43
    
	
 
    	
 
    	
13.17
    	
 
    	
Public Announcements
    	
 
    	
43
    
	
 
    	
 
    	
13.18
    	
 
    	
Affiliate Transaction
    	
 
    	
43
    

 

iii

 

Exhibits

 

	
Exhibit A
    	
-
    	
Target   Companies; 338 Entities; Purchased Interests
    
	
Exhibit B
    	
-
    	
Amended   and Restated Operating Agreement
    
	
Exhibit C
    	
-
    	
Amended   and Restated Employment Agreement
    
	
Exhibit D
    	
-
    	
Earnout   Projects
    
	
Exhibit E
    	
-
    	
Escrow   Agreement
    
	
Exhibit F
    	
-
    	
Contribution   Agreement
    
	
Exhibit G
    	
-
    	
New   Projects
    
	
Exhibit H
    	
-
    	
Transaction   Steps
    
	
Exhibit I
    	
-
    	
Incentive   Equity Subscription Agreement
    
	
Exhibit J
    	
-
    	
Form of   Legal Opinion
    
	
Exhibit K
    	
-
    	
Agreed   Financial Information
    
	
 
    	
 
    	
 
    

 

Schedules

 

	
Schedule   B
    	
-
    	
The   Facilities
    
	
Schedule   4.4
    	
-
    	
Capitalization
    
	
Schedule   4.7
    	
-
    	
Closing   Indebtedness
    
	
Schedule   4.9
    	
-
    	
Organization,   Qualification and Authority
    
	
Schedule   4.10
    	
-
    	
Title   to the Assets
    
	
Schedule   4.11
    	
-
    	
Subsidiaries
    
	
Schedule   4.12
    	
-
    	
Financial   Statements
    
	
Schedule   4.14
    	
-
    	
Absence   of Certain Changes
    
	
Schedule   4.16(b)
    	
-
    	
Non   Contravention as to the Group Companies; Required Consents
    
	
Schedule   4.17
    	
-
    	
Legal   Matters
    
	
Schedule   4.18(a)
    	
-
    	
Compliance   with Applicable Law; General
    
	
Schedule   4.18(b)
    	
-
    	
Compliance   with Applicable Law; Permits
    
	
Schedule   4.19
    	
-
    	
Taxes
    
	
Schedule   4.20
    	
-
    	
Environmental   Matters
    
	
Schedule   4.21
    	
-
    	
Agreements
    
	
Schedule   4.22
    	
-
    	
Third   Party Reimbursement
    
	
Schedule   4.23
    	
-
    	
Inspections   and Investigations
    
	
Schedule   4.25
    	
-
    	
Licenses
    
	
Schedule   4.26
    	
-
    	
Insurance
    
	
Schedule   4.27
    	
-
    	
Intellectual   Property
    
	
Schedule   4.29
    	
-
    	
Books   and Records
    
	
Schedule   4.30(a)
    	
-
    	
Real   Property and Vehicles
    
	
Schedule   4.30(a)(ii)
    	
-
    	
Real   Property and Vehicles
    
	
Schedule   4.30(b)
    	
-
    	
Real   Property and Vehicles
    
	
Schedule   4.30(c)
    	
-
    	
Real   Property and Vehicles
    
	
Schedule   4.30(c)(ii)
    	
-
    	
Real   Property and Vehicles
    
	
Schedule   4.32(a)
    	
-
    	
Compensation
    
	
Schedule   4.32(b)
    	
-
    	
Compensation
    
	
Schedule   4.32(c)
    	
-
    	
Compensation
    

 

iv

 

	
Schedule   4.32(d)
    	
-
    	
Compensation
    
	
Schedule   4.33
    	
-
    	
Employee   Benefit Matters
    
	
Schedule   4.34
    	
-
    	
Labor   Relations
    
	
Schedule   4.35
    	
-
    	
Financial   Guaranties
    
	
Schedule   4.36
    	
-
    	
Affiliate   Transactions
    
	
Schedule   4.37
    	
-
    	
Bank   Accounts
    
	
Schedule   4.38(a)
    	
-
    	
Customer;   Suppliers and Facility Mandates
    
	
Schedule   4.38(b)
    	
-
    	
Customer;   Suppliers and Facility Mandates
    
	
Schedule   4.39
    	
-
    	
Absence   of Undisclosed Liabilities
    

 

v

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT (the “Agreement”), dated as of March 1, 2011, by and among Radiation Therapy Services International, Inc., a Florida corporation (“Buyer”), Main Film B.V., a Dutch B.V. (“Dutch Buyer”, together with Buyer, “Buyers”), Radiation Therapy Services, Inc., a Delaware corporation (“RTS”), Radiation Therapy Investments, LLC, a Delaware limited liability company (“RTI”), Alejandro Dosoretz, an individual and citizen of the Republic of Argentina (“Seller”) and Claudia Elena Kaplan Browntein de Dosoretz, an individual and citizen of the Republic of Argentina who is the spouse of Seller (“Spouse”). Buyer and Seller shall be individually referred to in this Agreement as a “Party” and, collectively, as the “Parties”.

 

RECITALS

 

A.            Seller, Buyer and certain other persons are party to that certain Membership Interest Purchase Agreement (the “Original Purchase Agreement”), effective as of January 1, 2009, pursuant to which, among other things, Buyer acquired thirty three percent (33%) of the outstanding membership interests of Medical Developers, LLC, a Florida limited liability company (the “Company”) and nineteen percent (19%) of Clínica de Radioterapia La Asunción S.A. (“CRLA”) from Seller and certain other parties to the Original Purchase Agreement.

 

B.            The Company and its Subsidiaries (the “Companies”, together with CRLA, the “Group Companies”) are engaged in the business (the “Business”) of owning and operating, either individually or together with other individuals or entities not Affiliated with the Group Companies, radiation therapy facilities located in certain countries, including Argentina, Bolivia, Costa Rica, El Salvador, Guatemala, Dominican Republic, and Mexico, each of which is listed in Schedule B to this Agreement (collectively, the “Facilities”).

 

C.            The Seller owns the Equity Interests (the “Purchased Interests”) of certain of the Group Companies (the “Target Companies”), in each case, as set forth on Exhibit A hereto.

 

D.            This Agreement contemplates a transaction in which Buyers will purchase from Seller, and Seller will sell to Buyers, the Purchased Interests in return for cash and Common Stock.

 

E.             Contemporaneously with the consummation of the purchase by Buyers of the Purchased Interests, (a) the Company’s Operating Agreement, dated as of January 1, 2009, will be amended and restated in the form attached hereto as Exhibit B (the “Amended and Restated Operating Agreement”) and (b) the Employment Agreement (the “Employment Agreement”) between Vidt Centro Médico S.A. and Seller, dated as of January 1, 2009, will be amended and restated in the form attached hereto as Exhibit C (the “Amended and Restated Employment Agreement”).

 

F.             Spouse joins this Agreement solely to confirm her consent to the Transactions and the resultant disposition of Seller’s property, as may be required by applicable Law.

 

NOW, THEREFORE, in consideration of the promises and the representations, warranties, covenants, and agreements contained herein, and for other good and valuable

 

 

consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

 

1.             Definitions. As used in this Agreement, the following defined words and terms shall have the definitions and meanings indicated below:

 

“338 Entities” means those Target Companies with a “yes” marked opposite their name under the column labeled “338 Entity” on Exhibit A.

 

“Accountant Arbitrator” is defined in Section 2.3(d).

 

“Affiliate” shall mean, as to any “Person” (as hereinafter defined), any other Person which, directly or indirectly, controls, or is controlled by, or is under common control with, such Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a Person, whether through the ownership of securities or partnership or other ownership interests, by contract (including through the exercise of rights under administrative services agreements, and transition agreement and stock pledges) or otherwise.

 

“Agreement” means this Membership Interest Purchase Agreement, the Schedules, the Exhibits, and the Disclosure Schedule, and the certificates and certifications delivered in accordance herewith, as the same are amended from time to time.

 

“Amended and Restated Employment Agreement” has the meaning ascribed to it in the recitals of this Agreement.

 

“Amended and Restated Operating Agreement” has the meaning ascribed to it in the recitals of this Agreement.

 

“Business” has the meaning ascribed to it in the recitals of this Agreement.

 

“Business Day” means a day other than Saturday, Sunday or any day on which banks located in the State of Florida are authorized or obligated to close.

 

“Buyer” is defined in the Preamble of this Agreement.

 

“Buyers” is defined in the Preamble of this Agreement.

 

“Buyer Indemnitees” is defined in Section 8.1.

 

“Cap” is defined in Section 8.5(c).

 

“Capital Interest” is defined in Section 2.4(a).

 

“Cash Escrow Amount” is defined in Section 2.2(c).

 

“Cash Portion of the Purchase Price” is defined in Section 2.2(a).

 

2

 

“Class A Units” has the meaning ascribed to such term in the RTI LLC Agreement.

 

“Class B Units” has the meaning ascribed to such term in the RTI LLC Agreement.

 

“Class C Units” has the meaning ascribed to such term in the RTI LLC Agreement.

 

“Closing” is defined in Section 3.

 

“Closing Date” is defined in Section 3.

 

“Closing Date Cash Payment” is defined in Section 2.2(c)

 

“CRLA” has the meaning ascribed to it in the recitals of this Agreement.

 

“Code” means the United States Internal Revenue Code of 1986, as amended, and any successor statute thereto, as interpreted or as otherwise modified by the rules and regulations issued thereunder, in each case as in effect from time to time, with any references to specific sections of the Code construed also to refer to any predecessor or successor sections thereof.

 

“Common Stock” means common stock, par value $0.01 per share, of Radiation Therapy Services Holdings, Inc.

 

“Common Stock Consideration” is defined in Section 2.2(a).

 

“Companies” has the meaning ascribed to it in the recitals of this Agreement.

 

“Company” has the meaning ascribed to it in the recitals of this Agreement.

 

“Competing Business” is defined in Section 9.1(b).

 

“Computer Licenses” is defined in Section 4.25.

 

“Computer Software” is defined in Section 4.25.

 

“Confidential Information” is defined in Section 10.1.

 

“Contribution Agreement” is defined in Section 2.2(e).

 

“DDJ Note Purchase Agreement” means that certain Note Purchase Agreement, dated as of the date hereof, by and among DDJ Capital Management, LLC, RTS and the other parties named therein.

 

“Deductible” is defined in Section 8.5(a).

 

“Designated Representatives” is defined in Section 10.1.

 

“Disclosure Schedule” means the record delivered to Buyer by Seller herewith and dated as of the date hereof and attached hereto, containing all lists, descriptions, exceptions, and other

 

3

 

information and materials as are required to be included therein by Seller pursuant to this Agreement.

 

“Dollars” shall mean U.S. dollars as defined in Section 13.10.

 

“Due Date” is defined in Section 8.7.

 

“Dutch Buyer” is defined in the Preamble of this Agreement.

 

“Earnout Date” is defined in the definition of “Earnout Payment”.

 

“Earnout Payment” means an aggregate amount equal to the sum for all Earnout Projects of the following amount for each Earnout Project: the product of (a) 4.5, multiplied by (b) the EBITDA of such Earnout Project for the trailing 6-month period ending on the last day of the month immediately preceding the eighteen month anniversary of the Closing (the “Earnout Date”), multiplied by (c) 2, multiplied by (d) the Earnout Percentage for such Earnout Project.

 

“Earnout Percentage” means, for each Earnout Project, the percentage set forth opposite the name of each Earnout Project Owner on Exhibit D under the heading “Earnout Percentage”.

 

“Earnout Project Owner” means the Group Companies listed on Exhibit D under the heading “Earnout Project Owner”.

 

“Earnout Projects” means the radiation oncology centers set forth on Exhibit D under the heading “Earnout Projects”.

 

“EBITDA” means with respect to any Person, the earnings of such Person before interest, income tax, depreciation, and amortization, determined from an income statement of such Person prepared in accordance with GAAP consistently applied, calculated in each instance called for under this Agreement in U.S. dollars by converting all non-U.S. currencies into U.S. dollars at the exchange rates published by the Wall Street Journal (on its website) as of 11:59 p.m. Eastern Standard Time on the last Business Day prior to date upon which the calculation is required to be made pursuant to the terms of this Agreement; provided, that, if Seller notifies the board of directors of such Person that a transaction to be entered into by such Person is a related party transaction, then “EBITDA” shall be increased for purposes of determining the amount of (i) the Earnout Payment, (ii) the New Projects Purchase Price or the (iii) the New Projects Put Price, if such Person enters into such transaction relating to the Earnout Projects or the New Projects, as applicable, on terms and conditions that negatively impact EBITDA, unless it has been approved by each of the boards of directors of such Person and the Company.

 

“Employment Agreement” has the meaning ascribed to it in the recitals of this Agreement.

 

“Equity Interests” shall mean, with respect to any Person, any capital stock or other equity interests issued by such Person (including, membership interests, partnership interests or other ownership or proprietary interests or the right to share in the earnings of such Person), and includes any options, warrants or other securities or rights issued by such Person that are directly

 

4

 

or indirectly convertible into, or exercisable or exchangeable for, capital stock or other equity interests of such Person.

 

“Escrow Agent” is defined in Section 2.2(d).

 

“Escrow Agreement” is defined in Section 2.2(d).

 

“Escrow Funds” means the Escrow Amount plus any interest accrued thereon while in the possession of the Escrow Agent pursuant to the Escrow Agreement.

 

“Escrow Release Date” means April 30, 2012.

 

“Facilities” has the meaning ascribed to it in the recitals of this Agreement.

 

“Final Determination Date”  is defined in Section 2.3(b).

 

“Financial Statements” is defined in Section 4.12.

 

“Financial Statements Deductible” is defined in Section 8.5(b).

 

“Fundamental Representations” means the representations and warranties set forth in Section 4.1 (Authorization of Transaction), Section 4.3 (Brokers’ Fees), Section 4.4 (Capitalization), Section 4.5 (Seller Expenses), Section 4.6 (Related Party Payments), Section 4.7 (Indebtedness), Section 4.8 (Lock Box), Section 4.9 (Organization, Qualification and Authority), Section 4.11 (Subsidiaries), Section 4.18 (Compliance with Law), Section 4.19 (Taxes), Section 4.20 (Environmental Matters), Section 4.33 (Employee Benefit Matters) and 4.36 (Affiliate Transactions).

 

“GAAP” means generally accepted accounting principles in the United States.

 

“General Survival Date” is defined in Section 8.3.

 

“Governmental or Regulatory Authority” shall mean any (a) court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the Republic of Argentina, the United States of America, the Republic of Guatemala, the Dominican Republic, the Republic of Mexico, the Republic of Costa Rica, the Republic of El Salvador, and the Oriental Republic of Uruguay, and any other foreign country or any domestic or foreign state, county, city or other political subdivision of any kind; or (b) body exercising, or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal.

 

“Group Companies” has the meaning ascribed to it in the recitals of this Agreement.

 

“Hazardous Substance” shall include, without limitation, gasoline, oil and other petroleum products, explosives, radioactive materials, and related and similar materials, and any other substance or material defined as a hazardous, toxic or polluting substance or material by any Laws, including asbestos and asbestos-containing materials.

 

5

 

“Incentive Equity Subscription Agreement” is defined in Section 7.1(b).

 

“Indebtedness” means, with respect to any Person, all obligations of such Person (a) for borrowed money or with respect to deposits or advances of any kind (including amounts by reason of overdrafts and amounts owed by reason of letters of credit), (b) evidenced by notes, bonds, debentures or similar instruments, (c) for the deferred purchase price of goods or services (other than trade payables incurred in the ordinary course of business), (d) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, (d) for the payment of money relating to any lease that is required to be classified as a capitalized lease obligation in accordance with GAAP, (e) any and all amounts owed by any Person to any of its equityholders, directors or officers or any of their respective Affiliates (other than the Company and its direct or indirect Subsidiaries or parent entities), other than any amounts owed to such Persons in their capacity as an employee of any Group Company, or (f) all guarantees by such Person.

 

“Indemnifying Party” is defined in Section 8.6.

 

“Indemnitee” is defined in Section 8.6.

 

“Interim Date” is defined in Section 4.14.

 

“IRS” means the United States Internal Revenue Service.

 

“Knowledge” means, with respect to any Person, (a) the actual knowledge of such Person (including the actual knowledge of the officers, directors, managers, and advisors of such Person if an entity); and (b) the knowledge which reasonably would have been acquired by such Person,  in each case after such Persons have made due and diligent inquiry as to the matters which are the subject of the statements which are “known” or made to the “knowledge” of any Person.

 

“Law” means all statutes, laws, rules, regulations, ordinances, Orders, and other pronouncements having the effect of law of the Republic of Argentina, any other country or any domestic or foreign state, county, city or other political subdivision or of any Governmental or Regulatory Authority.

 

“Leakage” means:

 

(a)           any dividend or distribution of profits or assets declared, any payments in lieu of any dividend or distribution, paid or made, or agreed to be declared, paid or made, or any repurchase, redemption or return of any Equity Interests capital or loan capital or interest paid or agreed to be paid, in each case by any Group Company;

 

(b)           any payments made (including bonuses, loan repayments, management, monitoring, service or directors’ fees, charges or other compensation or fees), or agreed to be made by any Group Company to or for the benefit of (or assets, rights, values or benefits transferred to or liabilities or obligations assumed, indemnified, or incurred by any member of the Group Companies) any Seller Party;

 

6

 

(c)           the waiver, or agreement to waive (whether conditional or not), by any Group Company, of any amount owed to such Group Company by any Seller Party;

 

(d)           any management incentive payments, bonus or other payment of any nature payable in connection with or as a result of the transactions contemplated hereunder, paid or made, or agreed to be paid or made, in each case, by any Group Company to any Seller Party;

 

(e)           any Tax arising as a result of or in connection with (a) through (d) (inclusive) above;

 

(f)            any agreement between any Group Company and any Seller Party in connection with (a) through (e) (inclusive) above.

 

“Leased Real Property” is defined in Section 4.30(b).

 

“Liens” means all claims, mortgages, pledges, liens, charges, security interests, restrictions, easements, liabilities, claims, encumbrances or adverse interests of every nature whatsoever.

 

“Lock Box Date” is defined in Section 4.8.

 

“Losses” is defined in Section 8.1.

 

“Material Agreements” is defined in Section 4.21(a).

 

“Material Customers” is defined in Section 4.38(a).

 

“Material Suppliers” is defined in Section 4.38(b).

 

“New Projects” is defined in Section 2.4(a).

 

“New Projects Aggregate Interest” is defined in Section 2.4(c).

 

“New Projects Entity” is defined in Section 2.4(a).

 

“New Projects Entity Organizational Documents” is defined in Section 2.4(a).

 

“New Projects Enterprise Value” means an amount for each New Project equal to the product of (a) 5.0, multiplied by (b) the EBITDA of such New Project  for the trailing 6-month period ending on the last day of the month immediately preceding the month the New Project Option is exercised (the “New Projects Valuation Date”), multiplied by (c) 2.

 

“New Projects Interest” is defined in Section 2.4(a).

 

“New Projects Option” is defined in Section 2.4(c).

 

“New Projects Option Exercise Notice” is defined in Section 2.4(c).

 

7

 

“New Projects Purchase Price” means an amount equal to the sum for all of the New Projects of an amount for each New Project equal to the amount that would be distributed to Seller if the New Projects Enterprise Value of such New Project were distributed on the New Projects Valuation Date to the equity holders of such New Project in accordance with the New Project Entity Organizational Documents of such New Project after establishing reserves (made in accordance with GAAP) for all expenses and liabilities (excluding Indebtedness to the extent such Indebtedness does not relate to such New Project or is in the form of a guarantee by a New Project Entity of borrowings that do not relate to such New Project) of such New Project.

 

“New Projects Put Exercise Notice” is defined in Section 2.4(d).

 

“New Projects Put Price” is defined in Section 2.4(d).

 

“New Projects Put Right” is defined in Section 2.4(d).

 

“New Projects Valuation Date” is defined in the definition of “New Projects Enterprise Value”.

 

“Non-338 Entities” means those Target Companies with a “no” marked opposite their name under the column labeled “338 Entity” on Exhibit A.

 

“Notes” means senior subordinated notes of RTS bearing interest at the rate of 9.875% per annum, maturing on April 15, 2017 and which are pari passu to RTS’ outstanding 97/8% senior subordinated notes due 2017.

 

“Order” means any writ, judgment, decree, injunction or similar order or ruling of any Governmental or Regulatory Authority (in each such case whether preliminary or final).

 

“Original Purchase Agreement” has the meaning ascribed to it in the recitals of this Agreement.

 

“Owned Real Property” means all land, together with all buildings, structures, improvements, and fixtures located thereon, including all electrical, mechanical, plumbing and other building systems, fire protection, security and surveillance systems, telecommunications, computer, wiring, and cable installations, utility installations water distribution systems, and landscaping, together with all easements and other rights and interests appurtenant thereto (including air, oil, gas, mineral, and water rights), owned by any Group Company.

 

“Party” is defined in the Preamble of this Agreement.

 

“Permits” means all licenses, certificates, variances, certifications, permits, approvals, franchises, notices, and authorizations to do business issued by any Governmental or Regulatory Authority.

 

“Payment Restriction” is defined in Section 2.4(d).

 

“Payor Programs” is defined in Section 4.23.

 

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“pdf” is defined in Section 13.16.

 

“Permitted Leakage” means (i) any payments made to Seller pursuant to and in accordance with the Employment Agreement, (ii) bonus payments to be made to employees and officers of the Group Companies in an amount not to exceed an aggregate of $140,000, and (iii) any payments made to Buyer or its Affiliates (other than the Seller Parties).

 

“Person” means any natural person, corporation, general partnership, limited partnership, proprietorship, limited liability company, limited liability partnership, business trust, business organization, joint stock company, trust, association, joint venture, or other entity or enterprise of whatever nature, or Governmental or Regulatory Authority.

 

“PII” is defined in Section 4.18(c).

 

“Pre-Closing Taxes” means (i) all Taxes (or the non-payment thereof) of any Seller Party attributable to any period; (ii) all Taxes (or the non-payment thereof) of any Group Company attributable to any Pre-Closing Tax Period; (iii) all Taxes (or the non-payment thereof) of any member of an affiliated, consolidated, combined or unitary group of which Seller or any Group Company is or was a member on or prior to the Closing Date, including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar state, local, or non-United States law or regulation, and (iv) all Taxes (or the non-payment thereof) of any Person (other than any Group Company) imposed on or in respect of any of Buyer or any Group Company as a transferee or successor, by contract or pursuant to any law, rule or regulation, which Taxes relate to an event or transaction occurring before the Closing; provided, however, Pre-Closing Taxes shall not include any Taxes that are the responsibility of Buyer by virtue of its pre-closing ownership interest in the Group Companies.

 

“Pre-Closing Tax Period” means any taxable period or portion thereof ending on or before the Closing Date.  In the case of a taxable period that begins on or before the Closing Date and ends after the Closing Date, the Taxes allocable to the Pre-Closing Tax Period shall be determined based on a deemed closing of the books at the end of the Closing Date, in the case of income, profits, sales, employment and other Taxes readily apportionable between periods and, in the case of all other Taxes, in proportion to the number of days in the taxable period on and before the Closing Date.

 

“Preferred Units” has the meaning ascribed to such term in the RTI LLC Agreement.

 

“Profits Interest” is defined in Section 2.4(a).

 

“Purchase Price” means $20,800,000.

 

“Purchased Interests” has the meaning ascribed to it in the recitals of this Agreement.

 

“Reimbursement Agreements” is defined in Section 4.22.

 

“Related Party Payments” means any and all amounts owed by any Person to any of its equityholders, directors or officers or any of their respective Affiliates (other than the Company

 

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and its direct or indirect Subsidiaries or parent entities), other than any amounts owed to such Persons in their capacity as an employee of any Group Company.

 

“RTI” is defined in the Preamble of this Agreement.

 

“RTI LLC Agreement” means that certain Second Amended and Restated LLC Agreement of RTI, dated as of March 25, 2008.

 

“RTI Securityholders Agreement” means that certain Amended and Restated Securityholders Agreement of RTI, dated as of March 25, 2008.

 

“RTI Units” means the Class A Units, the Class B Units, the Class C Units and the Preferred Units.

 

“RTS” is defined in the Preamble of this Agreement.

 

“Seller” is defined in the Preamble of this Agreement.

 

“Seller Expenses” means (i) all fees, commissions, costs and expenses incurred by the Company or any Group Company on behalf of Seller or its Affiliates in connection with, related to or arising from the consummation of the Transactions (including the legal, accounting, investment banking and brokerage fees), (ii) any obligations or liability, whether contingent or otherwise, owed by any Group Company or the Company to any other Person (including employees) under any severance policy or contract, non-competition, consulting or similar arrangements or any severance required to be paid pursuant to applicable Law, in each case, which are triggered in whole or in part by the Transactions, (iii) any change-of-control or similar payment or increased cost of the Company or any Group Company which is triggered in whole or in part by the Transactions, (iv) any Transfer Taxes payable by the Company, any Group Company, or Seller in connection with the Transactions, and (v) any fees, costs or other expenses associated with the obtainment of any consents or notifications required in connection with the Transactions; provided, however, Seller Expenses shall not include expenses related to any legal, accounting, investment banking or brokerage fees payable to any Person retained by Buyer.

 

“Seller Indemnitees” is defined in Section 8.2.

 

“Seller Party” means Seller or any holder of Equity Interests of any Group Company (other than Buyer), any family member of such Persons (immediate or otherwise, and including any members of such Persons’ family by marriage) and any of their respective Affiliates, in each case, including any nominee, trustee or agent or any other Person receiving monies on behalf of any such Person.

 

“Service Area” is defined in Section 9.1(b).

 

“Spouse” is defined in the Preamble of this Agreement.

 

“Subsidiary” means with respect to any Person, any corporation, limited liability company, partnership, association, or other business entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of

 

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any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof or (b) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons own a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or shall be or control any managing director or general partner of such business entity (other than a corporation). The term “Subsidiary” shall include all Subsidiaries of such Subsidiary.

 

“Target Companies” has the meaning ascribed to it in the recitals of this Agreement.

 

“Tax” or “Taxes” means (i) any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Section 59A of the Code), customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed, whether by statutory or contractual provision, to the Tax liability of any other Person, (ii) any liability for or in respect of the payment of any amount of a type described in clause (i) of this definition as a result of being a member of an affiliated, combined, consolidated, unitary or other group for Tax purposes; and (iii) any liability for or in respect of the payment of any amount described in clauses (i) or (ii) of this definition as a transferee or successor, by contract or otherwise.

 

“Tax Returns” means any tax return, declaration, report, claim for refund, or information return or statement relating to Taxes arising, accruing, or for which an obligation to file exists, which shall be filed with any and all appropriate taxing authorities, revenue collection authorities, and such other appropriate Governmental or Regulatory Authority.

 

“Transactions” means the transactions contemplated by this Agreement and each of the other Transaction Documents.

 

“Transaction Documents” means this Agreement, the Amended and Restated Operating Agreement, the Amended and Restated Employment Agreement, and all other agreements and instruments as shall be necessary to effect the Transactions.

 

“Transfer Taxes” means any sales, stamp and transfer Taxes, deed Taxes, conveyance fees, recording charges and similar Taxes, fees and charges imposed as a result of the consummation of the Transactions.

 

“Units” is defined in Section 5.5.

 

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2.             Transaction.

 

2.1           Sale and Purchase.

 

(a)           Seller hereby sells, transfers and conveys to (i) Buyer, and Buyer hereby purchases from Seller, all right, title and interest in and to the Purchased Interests in the 338 Entities, free and clear of any and all Liens and (ii) Dutch Buyer, and Dutch Buyer hereby purchases from Seller, all right, title and interest in and to the Purchased Interests in the Non-338 Entities, free and clear of any and all Liens.

 

(b)           Seller’s wife hereby grants her consent, as stipulated by Section 1277 of the Argentine Civil Code and related regulations, to the Transactions contemplated herein.

 

2.2           Purchase Price.

 

(a)           The Purchase Price shall be comprised of the following consideration:  (i) $4,550,000 of the Purchase Price shall be paid by wire transfer of immediately available funds to such account(s) as Seller shall have designated in advance of the Closing Date (the “Cash Portion of the Purchase Price”) and (ii) $16,250,000 of the Purchase Price shall be paid in the form of 25 shares of Common Stock (the “Common Stock Consideration”).

 

(b)           Dutch Buyer will pay $4,332,671 of the Cash Portion of the Purchase Price and Buyer will pay the remainder of the Purchase Price, in each case, in the manner set forth in Section 2.2(c) below.

 

(c)           As consideration for the sale, assignment, conveyance, transfer, and delivery of the Purchased Interests, at the Closing, (x) Buyers shall pay to Seller an amount in cash (the “Closing Date Cash Payment”) equal to (i) the Cash Portion of the Purchase Price, minus (ii) $3,000,000 (the “Cash Escrow Amount”), and (y) Buyer shall transfer to Seller the Common Stock Consideration.

 

(d)           At the Closing, Buyer (on behalf of Dutch Buyer) shall deliver the Cash Escrow Amount by wire transfer of immediately available funds to an escrow account maintained by JPMorgan Chase Bank, N.A. (the “Escrow Agent”) pursuant to the terms and conditions of that certain Escrow Agreement (the “Escrow Agreement”) to be entered into at Closing by Buyer, Seller and the Escrow Agent in the form attached hereto as Exhibit E.

 

(e)           Immediately after the Closing, Seller shall contribute to RTI the Common Stock Consideration in exchange for 13,660.4486 Preferred Units and 258,955.1413 Class A Units pursuant to a Contribution Agreement (the “Contribution Agreement”) in the form attached hereto as Exhibit F.

 

2.3           Earnout.

 

(a)           In addition to the Purchase Price, Seller shall also be eligible to receive the Earnout Payment, if any.  The value of the Earnout Payment, if any, shall be (a) payable one-half in the form of Notes (with an issuance price for the Notes to Seller equal to the principal amount of such Notes) and one-half in the form of Preferred Units and Class A Units

 

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(in the same proportion and at the same issuance price as issued to Seller pursuant to the Contribution Agreement) and (b) made within 30 days after the Final Determination Date.

 

(b)           Buyer and Seller shall agree on the final determination of the amount of the Earnout Payment, if any, within 90 days after the Earnout Date and if Buyer and Seller are unable to agree upon the amount of the EBITDA used for the calculation of the Earnout Payment within such period, they shall submit such matter to be resolved by the Accountant Arbitrator (the date such final determination of the Earnout Payment is agreed upon by Buyer and Seller or determined by the Accountant Arbitrator, the “Final Determination Date”) in accordance with the dispute resolution procedures set forth in Section 2.3(d).  If the Earnout Payment as finally determined pursuant to this Section 2.3(b) is less than $1,500,000, then, prior to the fifteenth (15th) day following the Final Determination Date, Seller may give notice to Buyer to postpone the Earnout Date such that the Earnout Date will be the end of the month ending immediately prior to the thirtieth (30th) month anniversary of the Closing Date and such postponed Earnout Payment, if any, shall be calculated as though the Earnout Date were such delayed date and shall be payable on the same terms and conditions as the original Earnout Payment.

 

(c)           Any related party transactions relating to the Earnout Projects shall be entered into for a bona fide business purpose on terms and conditions that each of the boards of directors of Buyer and the Company reasonably concludes to be on terms and conditions as though such transactions were on an arms-length basis.

 

(d)           If Buyer and Seller are unable to agree on the final determination of the amount of the EBITDA used for the calculation of the Earnout Payment within 90 days after the Earnout Date, then Buyer and Seller shall (i) jointly select an accounting firm from among the four (4) largest accounting firms in the United States in terms of gross revenues or other nationally recognized (in the United States) accounting firm if the four largest firms are conflicted (the “Accountant Arbitrator”), which shall be required to act through independent members of its designated dispute resolution group who are not subject to any conflict of interest and (ii) each submit their calculation of the EBITDA used for the calculation of the Earnout Payment, along with supporting calculations and evidence thereof that such Party deems appropriate.  The Accountant Arbitrator shall be instructed (x) to determine the amount of the Earnout Payment based on the submissions of Buyer and Seller submitted to the Accountant Arbitrator, (y) that it is only to consider matters still in dispute between Buyer and Seller based solely on such written submissions by Seller, on the one hand, and Buyer, on the other hand, and their respective representatives and a voluntary rebuttal submission by each party, and shall not be by independent review and (z) to make its determinations based upon the accounting methods and practices specified in this Agreement.  All determinations by the Accountant Arbitrator shall be final and binding upon the Parties for purposes of this Agreement, absent fraud.  The Party (i.e., Buyer or Seller) whose asserted position as to the amount of the final determination of the amount of the Earnout Payment is farthest from the determination of the Accountant Arbitrator, shall pay the fees and expenses of the Accountant Arbitrator (and reimburse the other party for any fees and expenses of such party advanced to the Accountant Arbitrator in respect of such matter, if any).

 

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2.4           New Projects.

 

(a)           After the Closing, certain of the Group Companies will commence operation of certain new radiation oncology centers listed on Exhibit G (collectively, the “New Projects”).  For so long as Seller is employed by the Company and/or any of its Subsidiaries, Seller will have the right (to be exercised within ninety (90) days of the applicable board approval of a New Project) to invest 10% (or more than 10% if approved by Buyer) of the aggregate cost of one or more of any of the New Projects in exchange for a 10% equity ownership interest (subject to adjustment for any future equity interest issuances of such New Project) in such New Project(s) (for each New Project for which Seller has exercised his investment right, a “Capital Interest”).  With respect to each New Project in which Seller has acquired a Capital Interest, Seller shall be granted an additional interest, which when combined with such Capital Interest, will entitle him to (i) a return of his invested capital and (ii) 20% (subject to adjustment for any future equity interest issuances of such New Project) of the distributions and equity value of such New Project in excess of the amount of invested capital in such New Project and after establishing reserves (made in accordance with GAAP) for all expenses and liabilities of such New Project (for each New Project for which Seller holds a Capital Interest, a “Profits Interest”, together with the Capital Interest for such New Project, the “New Projects Interest”).  The Capital Interest, if any, will be issued to Seller in the same strip of securities as are directly or indirectly issued to Buyer and on the same economic terms as such securities that are directly or indirectly issued to Buyer. Each New Project Interest will be documented in the organizational documents (for each New Project Entity, the “New Project Entity Organizational Documents”) of a new entity (for each New Project, the “New Projects Entity”) formed to own such New Project. Seller will acquire the New Project Interest pursuant to a purchase agreement customary for transactions of a similar nature, which purchase agreement shall include customary representations and warranties of Seller for such a transaction.  Seller will also be party to such other ancillary documents of the New Project Entities as reasonably determined by Buyer at the time of formation of such New Project Entities.

 

(b)           The New Project Entity Organizational Documents of each New Project Entity shall (i) grant Seller pre-emptive rights (subject to customary carve-outs) with respect to future equity issuances by such New Project Entity to maintain the proportionate ownership interest represented by Seller’s initial Capital Interest in such New Project Entity, (ii) grant Seller customary tag-along rights with respect to future sales of equity interests in such New Project Entities by Buyer and (iii) provide that the New Projects Interest is not transferable by Seller without Buyer’s consent (other than for estate planning purposes).

 

(c)           Buyer shall have an option (the “New Projects Option”) to buy all of the New Projects Interest and any additional equity interests in the New Projects Owned directly or indirectly by Seller (collectively, the “New Projects Aggregate Interest”) from Seller for the New Projects Purchase Price at any time within the 90 day period following the three (3) year anniversary of the Closing Date, by presentation to Seller of written notice advising Seller of its election to exercise the New Projects Option (the “New Projects Option Exercise Notice”). Within thirty (30) days after the delivery of the New Projects Option Exercise Notice, Buyer and Seller shall work together in good faith to agree upon the calculation of the New Projects Purchase Price.  Within fifteen (15) days (or such later date as mutually agreed by Buyer and

 

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Seller) after the final determination of the New Projects Purchase Price (as mutually determined by Buyer and Seller or by the Accountant Arbitrator in accordance with Section 2.4(e)) Buyer and Seller shall execute a purchase agreement customary for transactions of a similar nature to formalize the purchase and sale of the New Projects Aggregate Interest, which shall include certain representations and warranties of Seller. In the event that Buyer and Seller cannot agree on the form of purchase agreement, the matter shall be submitted to Accountant Arbitrator in accordance with Section 2.4(f).  Seller agrees that Buyer may, in its sole discretion, exercise the New Projects Option indirectly by causing the applicable owner of the New Project Entity Affiliated with Buyer to acquire the New Projects Interest related to the New Project owned by such Person.

 

(d)           Seller shall have the right to sell the New Projects Aggregate Interest to Buyer (the “New Projects Put Right”) for an amount (the “New Project Put Price”) equal to the New Projects Purchase Price (calculated using the methodology set forth above, except that that the Enterprise Value will be calculated as if the New Projects Valuation Date were the last day of the month immediately preceding the month the New Projects Put Right is exercised); provided, that, the New Projects Put Price shall be payable (without interest) in equal installments over a three year period; provided, further, that at Buyer’s election (which shall be made in its sole discretion), Buyer may cause one or more of Affiliates to fund the New Projects Purchase Price on its behalf; provided, further, that the Buyer shall not be required to make any such payments for up to a two (2) year period if such payments would result in (x) a violation of any Law, or (y) a violation of the terms governing Buyer or any of its Affiliates set forth in any of their respective credit facilities (each of clauses (x) and (y), a “Payment Restriction”).  If such a Payment Restriction exists, Buyer shall use its commercially reasonable efforts to cause the third party to whom the obligation is owed giving rise to such Payment Restriction to waive such Payment Restriction so that such payment may be made or, if no third party is involved in such restriction, to otherwise eliminate such Payment Restriction; provided, that Buyer shall not have any obligation to make a payment to any party or to modify any agreement, contract or other arrangement in a manner that is adverse to such Person or any of its Affiliates in order to eliminate such restriction; provided, that, upon the waiver or elimination of all Payment Restrictions, Buyer shall promptly pay the New Projects Price to Seller in equal installments as set forth above.  Seller may exercise the New Projects Put Right for the New Projects Put Price at any time within the 90 day period following the five (5) year anniversary of the Closing Date, by presentation to Buyer of written notice advising Buyer of its election to exercise the New Projects Put Interest (the “New Projects Put Exercise Notice”). Within thirty (30) days after the delivery of the New Projects Put Exercise Notice, Buyer and Seller shall work together in good faith to agree upon the calculation of the New Projects Put Price.  Within fifteen (15) days (or such later date as mutually agreed by Buyer and Seller) after the final determination of the New Projects Purchase Price (as mutually determined by Buyer and Seller or by the Accountant Arbitrator in accordance with Section 2.4(e)) Buyer and Seller shall execute a purchase agreement customary for transactions of a similar nature to formalize the purchase and sale of the New Projects Interest, which shall include certain representations and warranties of Seller. In the event that Buyer and Seller cannot agree on the form of purchase agreement, the matter shall be submitted to Accountant Arbitrator in accordance with Section 2.4(f).  Seller agrees that Buyer may, in its sole discretion, acquire the New Projects Interest in connection with Seller’s exercise of the New Projects Put Right indirectly by causing the applicable owner of the New

 

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Project Entity Affiliated with Buyer to acquire the New Projects Interest related to the New Project owned by such Person.

 

(e)           If Buyer and Seller are unable to agree upon the amount of the calculation of the New Projects Enterprise Value for determining the New Projects Purchase Price or the New Projects Put Price in the applicable time periods set forth above in this Section 2.4, they shall submit such matter to be resolved by the Accountant Arbitrator in accordance with the dispute resolution procedures set forth in Section 2.3(d), with mechanics modified as necessary to give effect to the different disputes to be resolved pursuant to this Section 2.4.

 

(f)            If Buyer and Seller are unable to agree upon the form of the purchase agreement under Section 2.4(c) or (d) hereof, Buyer and Seller shall each submit their proposed form of purchase agreement to the Accountant Arbitrator selected in accordance with Section 2.3(d).  The Accountant Arbitrator shall be instructed to determine the form of the purchase agreement based upon the forms of agreement submitted by Buyer and Seller, that it is only to consider matters still in dispute between Buyer and Seller based solely on such written submissions by Buyer, on the one hand, and Seller, on the other hand, and their respective representatives.  All determinations by the Accountant Arbitrator shall be final and binding upon the Parties for purposes of this Agreement.  Buyer and Seller shall each pay one-half the fees and expenses of Accountant Arbitrator.

 

(g)           Any related party transactions relating to the New Project Entities shall be entered into for a bona fide business purpose on terms and conditions that each of the boards of directors of Buyer and the Company reasonably concludes to be on terms and conditions as though such transaction were on an arms-length basis.

 

2.5           Withholding Taxes. Buyers and their respective Affiliates shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable pursuant to this Agreement such amounts as may be required to be deducted or withheld therefrom under any provision of federal, state, local or non-United States Tax law or under any applicable legal requirement.  To the extent such amounts are so deducted or withheld, such amounts shall be treated for all purposes under this Agreement as having been paid to the Person to whom such amounts would otherwise have been paid.

 

3.             Closing. The closing of the Transactions (the “Closing”) shall take place immediately following the execution of this Agreement, beginning immediately after the time the last signature is affixed by the Parties and in the order set forth on Exhibit H. The date on which the Closing takes place is referred to herein as the “Closing Date.”

 

4.             Representations and Warranties of Seller. In order to induce Buyers to enter in this Agreement and to consummate the transactions contemplated by this Agreement, Seller hereby represents and warrants to Buyers as of the date hereof:

 

4.1           Authorization of Transaction. Seller has full power and authority to execute and deliver this Agreement and to perform his obligations hereunder. This Agreement constitutes the valid and legally binding obligation of Seller, enforceable in accordance with its terms and conditions. Seller need not give any notice to, make any filing with, or obtain any

 

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authorization, consent, or approval of any Governmental or Regulatory Agency in order to consummate the Transactions.

 

4.2           Non-Contravention as to Seller. Neither the execution and delivery of this Agreement, nor the consummation of the Transactions, will (a) violate any Law or Order to which Seller is subject (b) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Seller is a party or by which he is bound or to which any of his assets are subject, or (c) result in the imposition or creation of a Lien upon or with respect to any of the Purchased Interests.

 

4.3           Brokers’ Fees. Neither Seller, nor any Group Company or any of their respective Affiliates has any Liability to pay any fees or commissions to any broker, finder, or agent with respect to the Transactions.

 

4.4           Capitalization. Schedule 4.4 of the Disclosure Schedule sets forth for each Group Company (a) its name, jurisdiction of incorporation, jurisdiction of domicile and registration, (b) the number and description of authorized Equity Interests, (c) the number of issued and outstanding Equity Interests, the names of the holders thereof, and the number and description of Equity Interests held by each such holder, and (d) the number of Equity Interests held in treasury (if any).  Seller holds of record and owns beneficially the Purchased Interests, free and clear of any restrictions on transfer (other than any restrictions under the Securities Act and state securities laws), Taxes, Liens, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands. All of the issued and outstanding Equity Interests of each Group Company have been duly authorized and are validly issued, fully paid, and non-assessable. Except as set forth on Schedule 4.4 of the Disclosure Schedule, (i) there are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require any of the Group Companies to sell, transfer, or otherwise dispose of any Equity Interests or that could require any Group Companies to issue, sell, or otherwise cause to become outstanding any of its own Equity Interests, (ii) there are no outstanding stock appreciation, phantom stock, profit participation, or similar rights with respect to any Group Companies and (iii) there are no voting trusts, proxies, or other agreements or understandings with respect to the voting of any Equity Interests of any Group Companies.  The donations of stock made between Mr. Bernardo Dosoretz and Seller were legally made, and Seller and the other heirs of the donor have consented such donations and have resigned to any claim in such regard.

 

4.5           Seller Expenses. No Group Company has any unpaid Seller Expenses, nor will any Group Company have any unpaid Seller Expense arising out of, or related to, the Transactions.

 

4.6           Related Party Payments. No Group Company has any unpaid Related Party Payments, nor will any Group Company have any unpaid Related Party Payments arising out of, or related to, the Transactions.

 

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4.7           Indebtedness. The Indebtedness of each Group Company as of the Closing Date is set forth on Schedule 4.7 of the Disclosure Schedule.

 

4.8           Lock Box. Since December 31, 2010 (the “Lock Box Date”), there has been no Leakage other than Permitted Leakage.

 

4.9           Organization, Qualification and Authority. Each of the Group Companies are duly organized, validly existing, and in good standing under the laws of the jurisdiction of their formation or incorporation. Each of the Group Companies are duly authorized to conduct business and are in good standing under the Laws of each country and jurisdiction where such qualification is required, except where the lack of such qualification would not have a material adverse effect on the Business. Each of the Group Companies are duly qualified and registered under applicable Law in each country where they operate or hold Equity Interests in a local company, except where the lack of such qualification would not have a material adverse effect on the Business. Each of the Group Companies have full corporate or limited liability company power and authority and all licenses, permits, and authorizations necessary to carry on the businesses in which they are engaged and to own and use the properties owned and used by them. Schedule 4.9 of the Disclosure Schedule lists the directors and officers (or their equivalent) of each Group Company. The minute books (containing the records of meetings of the members, stockholders, the board of directors, and the managers, or any committee thereof), and the stock certificate or membership interest books for each of the Group Companies are correct and complete. None of the Group Companies is in default under or in violation of any provision of its charter or bylaws or other organizational documents.

 

4.10         Title to the Assets. Each of the Group Companies has good and valid title to, or enforceable leasehold interests in or valid rights under contract to use, all the properties and assets owned or used by such Group Company (personal, tangible and intangible), including, without limitation (a) all the properties and assets reflected in the Financial Statements, and (b) all the properties and assets purchased or otherwise contracted for by the Group Companies since December 31, 2009 (except for properties and assets reflected in the Financial Statements or acquired or otherwise contracted for since the date of the Financial Statements that have been sold or otherwise disposed of in the ordinary course of business), in each case free and clear of all Liens, except for Liens set forth on Schedule 4.10 of the Disclosure Schedule. The property, plant and equipment of the Group Companies, whether owned or otherwise contracted for, are in a state of good maintenance and repair and are adequate and suitable in all material respects for the purposes for which they are presently being used.

 

4.11         Subsidiaries. Except for the Subsidiaries set forth in Schedule 4.11 of the Disclosure Schedule, none of the Group Companies owns or has any right to acquire, directly or indirectly, any outstanding capital stock of, or other equity interests in, any Person.

 

4.12         Financial Statements. Seller has delivered to Buyer copies of the last three audited financial statements of (i) the Companies on a consolidated basis, and (ii) CRLA (collectively, the “Financial Statements”). Except for the variations expressly noted in Schedule 4.12 of the Disclosure Schedule, all of the Financial Statements (w) have been prepared from the financial records of the applicable Group Companies in accordance with GAAP throughout the periods covered thereby, (x) present fairly, in all material respects, the financial

 

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condition of the applicable Group Companies as of such dates and the results of operations of the applicable Group Companies for such periods, (y) are correct and complete, and (z) are consistent with the books and records of the applicable Group Companies (which books and records are correct and complete).

 

4.13         Accounts Receivable.  All accounts receivable reflected on the Financial Statements (i) represent valid obligations arising from bona fide sales actually made or services actually performed in the ordinary course of business, and (ii) are not subject to valid counterclaims or setoffs except as recorded as accounts payable on the Financial Statements.

 

4.14         Absence of Certain Changes. Except as specifically set forth on Schedule 4.14 of the Disclosure Schedule, since December 31, 2010 (the “Interim Date”) none of the Group Companies have: (a) incurred any liability or obligation of any nature (whether accrued, absolute, contingent or otherwise), except in the ordinary course of business; (b) permitted any of their assets to be subjected to any Lien; (c) acquired, sold, transferred or otherwise disposed of any assets except in the ordinary course of business; (d) made any capital expenditure or commitment therefor which, individually or in the aggregate, exceeded $25,000; (e) declared or paid any dividends or made any distributions on any of their Equity Interests, or redeemed, purchased or otherwise acquired any of their Equity Interests or any Option, or other right to purchase or acquire any of their Equity Interests; (f) made any bonus or profit sharing distribution; (g) increased or prepaid their Indebtedness, except current borrowings under bank credit lines listed on Schedule 4.14 of the Disclosure Schedule in the ordinary course of business, or made any loan to any Person; (h) written down the value of any work-in-process, or written off as uncollectible any notes or accounts receivable, except write-downs and write-offs in the ordinary course of business, none of which, individually or in the aggregate, is material to the Group Companies; (i) granted any increase in the rate of wages, salaries, bonuses or other remuneration of (A) any employee who, whether as a result of such increase or prior thereto, receives aggregate compensation from the Group Companies at an annual rate of $25,000 or more, or (B) except in the ordinary course of business, of any other employee; (j) canceled or waived any claims or rights of material value; (k) made any change in any method of accounting procedures; (l) otherwise conducted the Business or entered into any transaction, except in the usual and ordinary manner and in the ordinary course of their business; (m) entered into, amended or terminated any Material Agreements; (n) entered into, renewed, extended or modified any lease for real property, or, except in the ordinary course of business, any lease of personal property; (o) agreed, whether or not in writing, to do any of the foregoing (except for transactions contemplated by this Agreement); (p) experienced or incurred any material and adverse effect on their assets, liabilities, prospects, results of operation, business or condition (financial or otherwise); (q) failed to preserve intact the present business organization and reputation of the Business, including any failure to: (1) keep the Business and the properties of the Group Companies substantially intact, including their present operations, physical facilities, assets, and working conditions, (2) keep available (subject to dismissals, resignations and retirements in the ordinary course of business consistent with past practice or otherwise not within the Group Companies’ control) the services of the employees of the Group Companies, (3) use commercially reasonable efforts to maintain the goodwill of patients, suppliers, lenders, and other individuals or entities to whom the Group Companies provide services or with whom the Group Companies otherwise have significant business relationships in connection with the Business, and (4) continue all current sales, marketing and promotional activities of the Group

 

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Companies relating to the Business, except to the extent required by applicable Law or for changes that are not material; or (r) failure to cause the books and records of the Group Companies to be maintained in the usual, regular and ordinary manner, such that the books and records accurately reflect the Company’s income, expenses, assets and liabilities, and (not permit; (s) caused or permitted any material change in any pricing, investment, accounting, financial reporting, inventory, credit, allowance or Tax practice or policy of any Group Company that would materially adversely affect the Business or the assets, or (t) made or changed any Tax election, changed an annual accounting period, adopted or changed any accounting method, filed any amended Tax Return, entered into any closing agreement, settled any Tax claim or assessment, surrendered any right to claim a refund of Taxes, consented to any extension or waiver of the limitation period applicable to any Tax claim or assessment, or taken any other similar action, or omitted to take any action relating to the filing of any Tax Return or the payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action or omission would have the effect of increasing the Tax liability of the any of the Group Companies for any period ending after the Closing Date or decreasing any Tax attribute of any of the Group Companies existing on the Closing Date.

 

4.15         Certain Payments. Neither Seller nor any of the Group Companies, or, to the Knowledge of Seller, any officer, authorized agent, employee, consultant or any other Person, while acting on behalf of the Group Companies, has, directly or indirectly used any funds of the Group Companies for any unlawful contribution, gift or other expense relating to political activity; made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns from corporate funds; established or maintained any unlawful or unrecorded fund of corporate monies or other assets; or made any false or fictitious entry on its books or records; made any bribe, rebate, payoff, influence payment, kickback, or other unlawful payment to any Person, private or public, regardless of form, whether in money, property, or services, to obtain favorable treatment in securing business or to obtain special concessions, or to pay for favorable treatment for business secured or for special concessions already obtained.  None of the Group Companies have participated in any illegal boycott or other similar illegal practices affecting any of their actual or potential customers

 

4.16         Non-Contravention as to the Group Companies; Required Consents.

 

(a)           Neither the execution and delivery of this Agreement, nor the consummation of the Transactions, will (a) violate any Law or Order to which any Group Company is subject, or any provision the charter, bylaws, or other governing documents of any Group Company, or (b) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to receive a payment, accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which any Group Company is a party or by which it is bound or to which any of its assets are subject, except where such conflict, breach, default, acceleration, or failure to give notice would not have a material adverse effect on the Business.

 

(b)           No consents, approvals or authorizations of, or filings with, any Governmental or Regulatory Authority or any other Person are required to be obtained by Group Company in connection with the execution and delivery of this Agreement and the

 

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consummation of the Transactions, except for the required consents set forth in Schedule 4.16(b) of the Disclosure Schedule and where the failure to obtain such consent, approval or authorization, or make such filing would not have a material adverse effect on the Business.

 

4.17         Legal Matters. Except as set forth in Schedule 4.17 of the Disclosure Schedule, there are no suits, actions, claims, investigations, administrative proceedings or other proceedings, criminal, civil, or quasi civil, pending or, threatened by or against the any Group Company. Seller has no Knowledge of any facts or circumstances that could reasonably be expected to give rise to any claim, investigation, administrative proceeding or other proceeding, criminal, civil, or quasi civil that would be required to be disclosed under this Section 4.17.

 

4.18         Compliance with Applicable Law.

 

(a)           General. Except as set forth on Schedule 4.18(a) of the Disclosure Schedule, none of the Group Companies, is in default under any, and each of the Group Companies have complied in all material respects with all Laws and Orders applicable to such Group Companies, including, without limitation, (i) all Laws and Orders related or incident to the licensure, credentialing and certification of providers of radiation therapy, physicians and health professionals, (ii) health and safety matters, (iii) employment and labor laws, and (iv) health laws and regulations, in each case, including, without limitation, any regulations related to any inter-consultation payments or arrangements of any Group Company. Seller does not have any Knowledge of any basis for assertion of any violation of the foregoing or for any claim for compensation or damages or otherwise arising out of any violation of the foregoing. Seller has not received any notification of any asserted present or past failure to comply with any of the foregoing that has not been satisfactorily responded to in the time period required thereunder.

 

(b)           Permits.  Set forth in Schedule 4.18(b) of the Disclosure Schedule is a complete and accurate list of all licenses, certificates, permits, approvals, franchises, notices and authorizations issued by any Governmental Agency (collectively, the “Permits”), held by the Group Companies that relate to the operation of the Facilities and the Business. The Permits set forth in Schedule 4.18(b) of the Disclosure Schedule are all the Permits required for the operation of the Facilities and the conduct of the Business of the Group Companies in its current form. All the Permits set forth in Schedule 4.18(b) of the Disclosure Schedule are in full force and effect. None of the Group Companies has engaged in any activity that would cause or permit revocation or suspension of any Permit, and no action or proceeding seeking to or contemplating the revocation or suspension of any Permit is pending or threatened. There are no existing defaults or events of default or events or state of facts which, with notice or lapse of time or both, would constitute a default by the any Group Company under any Permit. Seller does not have any Knowledge of any default or claimed or purported or alleged default or state of facts which with notice or lapse of time or both would constitute a default on the part of any party in the performance of any obligation to be performed or paid by any party under any Permit. Except as set forth in Schedule 4.18(b) of the Disclosure Schedule, the consummation of the Transactions will in no way affect the continuation, validity or the effectiveness of the Permits or require the consent of any Person.

 

(c)           Privacy and Security. All information or data collected by the Group Companies from their patients, or acquired by the Group Companies about consumers,

 

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including personally identifiable information and aggregate or anonymous information (collectively, “PII”), has been collected, has been and is being used and has been and is being held in compliance in all material respects with all Laws and Orders of any Governmental or Regulatory Authority. The Group Companies have stored and maintained PII in a secure manner, using commercially reasonable technical measures, to assure the integrity and security of the data and to prevent loss, alteration, corruption, misuse and unauthorized access to PII. The Group Companies destroyed or otherwise rendered irretrievable any records, whether electronic or paper-based, containing PII that the Group Companies sought to dispose of in the ordinary course of business. All third party access to PII has been subject to written confidentiality requirements. There has been no unauthorized access to or disclosure of PII. The transfer of PII hereunder complies with all applicable Laws and Orders relating to such transfer and with the Privacy Policy, contracts and other obligations in regard to PII. The Group Companies have not received any claims, notices or complaints regarding its information practices and processing of PII.

 

4.19         Taxes. Each Group Company has filed or caused to be filed on a timely basis all Tax Returns required to be filed by such Group Company prior to the Closing Date. All Tax Returns filed by or on behalf of the Group Companies are true, complete and correct in all respects. The Group Companies have timely paid all Taxes due and payable with respect to the periods covered by such Tax Returns (as reflected thereon), or otherwise owed by the Group Companies (whether or not shown or required to be shown on any Tax Return). There are no Tax liens on any of the properties or assets, real, personal or mixed, tangible or intangible, of any of the Group Companies. The Group Companies have not incurred any Tax liability (including, without limitation, related to stamp Taxes) other than in the ordinary course of business. No deficiency in Taxes for any period has been asserted by any taxing authority which remains unpaid at the date hereof (the results of any settlement being set forth on Schedule 4.19 of the Disclosure Schedule), and no written inquiries or notices have been received by the Group Companies from any taxing authority with respect to possible claims for Taxes. Seller has no reason to believe that such an inquiry or notice is pending or threatened or that there is a basis for any additional claims or assessments for Taxes. None of the Group Companies has agreed to the extension of the statute of limitations with respect to any Tax Return or Tax period.

 

4.20         Environmental Matters.

 

(a)           Except as set forth in Schedule 4.20 of the Disclosure Schedule, no Hazardous Substance is present or at any time has been stored, treated, released, disposed of or discharged on, about, from or affecting the Facilities during the period of any ownership, lease or occupancy thereof by any of the Group Companies, in any material amounts, except for products that have been used, maintained and disposed of in compliance with all applicable laws, rules and regulations and all applicable manufacturer instructions, and Seller does not have any Knowledge of any liability that is based upon or related to any environmental condition, and there is no reasonable basis for any such liability arising.

 

(b)           Except as set forth on Schedule 4.20 of the Disclosure Schedule, no Group Company has, nor to the Knowledge of Seller, has any prior or current owner, tenant or occupant of any part of the Facilities, received (i) any notification or advice from or given or been required to have given any report or notice to any Governmental or Regulatory Authority or

 

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any other Person whatsoever involving the use, management, handling, transport, treatment, generation, storage, spill, escape, seepage, leakage, spillage, emission, release, discharge, remediation or clean-up of any Hazardous Substance on or about any of the Facilities or caused by any of the Group Companies or any Affiliate thereof, or (ii) any complaint, order, citation or notice with regard to a Hazardous Substance or any other environmental health or safety matter affecting the Facilities, or any business or operations conducted thereat under any applicable Law.

 

4.21         Agreements.

 

(a)           Schedule 4.21 of the Disclosure Schedule contains a true, complete and accurate list of the following contracts and other agreements to which any Group Company is a party, or by or to which any of the Group Company’s assets or properties are bound or subject (in each case, whether written or oral and including all amendments thereto, collectively, the “Material Agreements”):

 

(i)            any agreement for the purchase or sale of materials, supplies, equipment, inventory, or services involving consideration in excess of $25,000.00;

 

(ii)           any agreement (or group of related agreements) under which any Group Company has created, incurred, assumed or guaranteed any Indebtedness, or any capitalized lease obligation, in excess of $25,000.00, or under which it has imposed a Lien on any of its assets, tangible or intangible;

 

(iii)          are contracts for the grant to any Person of any preferential rights to purchase any of the Group Company’s assets or properties;

 

(iv)          are leases of real or personal property with respect to the Business of any Group Company, which provide for lease payments in excess of $25,000.00 per year;

 

(v)           any agreement concerning confidentiality or noncompetition;

 

(vi)          any agreement for the employment of any individual on a full-time, part-time, consulting, or other basis providing gross annual compensation in excess of $50,000.00 or providing severance benefits;

 

(vii)         any agreement under which it has advanced or loaned any amount to any of its directors, officers, and employees outside the ordinary course of business;

 

(viii)        any collective bargaining agreement;

 

(ix)           any agreement concerning a partnership or joint venture;

 

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(x)            any profit sharing, stock option, stock purchase, stock appreciation, deferred compensation, severance, or other material plan or arrangement for the benefit of its current or former directors, officers, and employees; and

 

(xi)           any agreements that are otherwise material to the Business of any Group Company which do not fit into one of the aforementioned categories.

 

(b)           Seller has delivered to Buyer a correct and complete copy of each written Material Agreement (as amended to date) and a written summary setting forth the terms and conditions of each oral Material Agreement. With respect to each such Material Agreement: (i) the agreement is legal, valid, binding, enforceable, and in full force and effect; (ii) the agreement will continue to be legal, valid, binding, enforceable, and in full force and effect on identical terms following the consummation of the Transactions; (iii) no party is in breach or default, and no event has occurred that with notice or lapse of time would constitute a breach or default, or permit termination, modification, or acceleration, under the agreement; and (iv) no party has repudiated any provision of any such Material Agreement.

 

4.22         Third Party Reimbursement. Except as set forth on Schedule 4.22 of the Disclosure Schedule, complete copies of all third party reimbursement agreements relating to the operation of the Business of the Group Companies (the “Reimbursement Agreements”) that are currently in force have been delivered to Buyer prior to the execution of this Agreement. There are no facts or circumstances that could result in (a) the cancellation or non-renewal of any Reimbursement Agreement (except to the extent provided in a termination “without cause” provision); or (b) any retroactive adjustment by any payor under any Reimbursement Agreement.

 

4.23         Inspections and Investigations. Except as set forth and described in Schedule 4.23 of the Disclosure Schedule: (a) no right of any Group Company, nor the right of any licensed professional or other individual employed by or under contract with any Group Company, to receive reimbursements pursuant to any government program or private non-governmental program under which any Group Company directly or indirectly receives payments (“Payor Programs”) related to the Business has been terminated or otherwise adversely affected as a result of any investigation or action whether by any Governmental or Regulatory Authority or other third party; (b) none of Seller or any of the Group Companies has, during the past five (5) years, been the subject of any inspection, investigation, survey, audit, monitoring or other form of review by any Governmental or Regulatory Authority, trade association, professional review organization, accrediting organization or certifying agency based upon any alleged improper activity nor has any Group Company received any notice of deficiency during the past five (5) years in connection with the operations of the Business; and (c) there are not presently any noticed outstanding deficiencies or work orders related to the Business of the Group Companies of any Governmental or Regulatory Authority having jurisdiction over the Group Companies or the Business of the Group Companies or requiring conformity to any applicable agreement, statute, regulation, ordinance or bylaw, including but not limited to, the Payor Programs. Attached as part of Schedule 4.23 of the Disclosure Schedule are copies of all reports, correspondence, notices, and other documents relating to any matter described or referenced therein.

 

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4.24         Rates and Reimbursement Appeals. None of the Group Companies has any reimbursement or payment rate appeals, disputes or contested positions currently pending before any Governmental or Regulatory Authority or any administrator of any Payor Programs with respect to the Business of the Group Companies.

 

4.25         Licenses. The Group Companies do not produce or distribute any product, nor perform any service, under a proprietary license granted by another entity and has not licensed its rights in any current or planned products, designs or services to any other entities. Each Group Company has the right to use all computer software, including all property rights constituting part of that computer software, used in connection with the Business of such Group Company (the “Computer Software”). A list of all material written licenses pertaining to the Computer Software (other than over-the-counter “shrink-wrap” software licenses) is set forth in Schedule 4.25 of the Disclosure Schedule attached hereto (the “Computer Licenses”). The Computer Licenses are valid and enforceable by the applicable Group Companies and the use of the Computer Software and, the Computer Licenses do not infringe upon or conflict with the rights of any third party. The Group Companies have not granted any licenses to use the Computer Software or any sub-licenses with respect to any of the Computer Licenses.

 

4.26         Insurance. The Group Companies maintain insurance policies as set forth in Schedule 4.26 of the Disclosure Schedule. Such policies are in full force and effect and all premiums due thereon prior to or on the Closing Date have been paid in full. The Group Companies have complied with all material provisions of such policies. A complete list and brief description of the insurance policies, including limits of coverage, maintained by the Group Companies in connection with the Business is set forth in Schedule 4.26 of the Disclosure Schedule. There are no notices of any pending or, threatened termination or premium increases with respect to any of such policies. Except as set forth on Schedule 4.26 of the Disclosure Schedule, none of the Group Companies have had any casualty loss or occurrence that may give rise to any claim of any kind not covered by insurance and Seller does not have any Knowledge of any occurrence which may give rise to any claim of any kind not covered by insurance. Except as set forth on Schedule 4.26 of the Disclosure Schedule, no third party has filed any claim against any of the Group Companies for personal injury or property damage of a kind for which liability insurance is generally available which is not covered by such Group Companies’ insurance policies. All claims against the Group Companies that are covered by insurance have been reported to the insurance carrier on a timely basis.

 

4.27         Intellectual Property. Set forth in Schedule 4.27 of the Disclosure Schedule is a list and brief description of all of the material patents, registered and common law trademarks, service marks, trade names, copyrights and other similar rights of the Group Companies and applications for each of the foregoing. The Group Companies own, or have licensed through valid and enforceable licensing agreements, all right, title and interest in and to all such proprietary rights. No adverse claims have been made and no dispute has arisen with respect to any of said proprietary rights, and, the operations of the Business of the Group Companies and the use by the Group Companies of such proprietary rights do not involve infringement or claimed infringement of any patent, trademark, service mark, trade name, copyright, license or similar right.

 

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4.28         Licensure. Each individual employed by or contracted with any of the Group Companies to perform professional services is duly licensed to provide such services and is otherwise in compliance in all material respects with all applicable Laws relating to such professional licensure and otherwise meets the applicable qualifications to provide such professional services. Each individual now or formerly employed by or contracted with any Group Company to provide professional services was duly licensed to provide such services during all applicable periods when such employee or independent contractor provided such services on behalf of such Group Companies. Each Group Company is in compliance in all material respects with all applicable Laws relating to the corporate practice of the learned or licensed professions, and there are no claims, disputes, actions, suits, proceedings or investigations currently pending, filed, commenced or threatened against or affecting any Group Company relating to such laws and precedents.

 

4.29         Books and Records. Except as set forth on Schedule 4.29 of the Disclosure Schedule, the books and records of each Group Company are complete and correct, have been maintained in accordance with good business practices and accurately reflect the basis for the financial position and results of operations of the Group Companies set forth in the Financial Statements. All of such books and records, including true and complete copies of all written contracts, have been made available for inspection by Buyer and its representatives.

 

4.30         Real Property and Vehicles.

 

(a)           Schedule 4.30(a) of the Disclosure Schedule sets forth the address and description of each parcel of Owned Real Property as of the date of this Agreement and the name of the Person that owns such Owned Real Property. With respect to each parcel of Owned Real Property:

 

(i)            a Group Company has good and marketable indefeasible fee simple title, free and clear of all Liens;

 

(ii)           except as set forth in Schedule 4.30(a)(ii) of the Disclosure Schedule, none of the Group Companies has leased or otherwise granted to any Person the right to use or occupy such Owned Real Property or any portion thereof; and

 

(iii)          there are no outstanding options, rights of first offer or rights of first refusal to purchase such Owned Real Property or any portion thereof or interest therein.

 

(b)           A list and description of all real property leased to or by any of the Group Companies in connection with the Business or in which the Group Companies have any interest in connection with the Business, together with the name of the landlord and tenant under each such lease, is set forth in Schedule 4.30(b) of the Disclosure Schedule (the “Leased Real Property”). All leases for Leased Real Property provide for rental terms that are consistent with fair market value and are the result of arm’s length bargaining. The Leased Real Property is held subject to written leases or other agreements which are valid and effective in accordance with their respective terms and, there are no existing defaults or events of default, or events which

 

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with notice or lapse of time or both would constitute defaults thereunder on the part of a Group Company. Seller does not have any Knowledge of any default or claimed or purported or alleged default or state of facts which, with notice or lapse of time or both, would constitute a default on the part of any other party in the performance of any obligation to be performed or paid by such other party under any lease.

 

(c)           Schedule 4.30(c) of the Disclosure Schedule sets forth the description of each Owned Vehicle as of the date of this Agreement and the name of the Person that owns such Owned Vehicle. With respect to each Owned Vehicle:

 

(i)            a Group Company has good and marketable indefeasible fee simple title, free and clear of all Liens;

 

(ii)           except as set forth in Schedule 4.30(c)(ii) of the Disclosure Schedule, none of the Group Companies has leased or otherwise granted to any Person the right to use or occupy such Owned Vehicle; and

 

(iii)          there are no outstanding options, rights of first offer or rights of first refusal to purchase such Owned Vehicle.

 

4.31         The Facilities.

 

(a)           The buildings, appurtenances and fixtures comprising the Facilities are in good operating condition, normal wear and tear excepted, and are in the aggregate sufficient to satisfy the Business of the Group Companies.

 

(b)           The Facilities: (i) have physical access to public roads or access to public roads by means of a perpetual access easement, such access being sufficient to satisfy the current and reasonably anticipated transportation requirements of the Business of the Group Companies as presently conducted at such parcel; and (ii) are served by all utilities in such quantity and quality as are sufficient to satisfy the current sales levels and business activities as conducted at such location.

 

(c)           Neither Seller nor any of the Group Companies have received notice of any condemnation proceeding or special assessment with respect to any portion of the Facilities or any access thereto, and, to the Knowledge of Seller, no proceedings or special assessments are contemplated or pending by any governmental or regulatory authority.

 

4.32         Compensation.  Set forth in Schedule 4.32(a) of the Disclosure Schedule is a list of all agreements between each Group Company and each person or entity employed by or independently contracting with such Group Company in connection with the Business and set forth in Schedule 4.32(b) of the Disclosure Schedule is a list of all employees of the Group Companies and their respective positions, length of service, job categories, salaries, and accrued benefits. Except as set forth in Schedule 4.32(c) of the Disclosure Schedule, the Transactions will not result in any liability for severance pay to any employee or independent contractor of any Group Company. Except as set forth in Schedule 4.32(d) of the Disclosure Schedule, no Group Company has informed any employee or independent contractor providing services to

 

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such Group Company that such person will receive any increase in compensation or benefits or any ownership interest in any Group Company as a result of the Transactions.

 

4.33         Employee Benefit Matters.  Except as set forth on Schedule 4.33 of the Disclosure Schedule, none of the Group Companies is a party to a contract or any kind of special arrangement with their employees, establishing special remuneration or bonuses, deferred compensation, right to retirement, pension, stock purchase, option, special Indemnitees, or any agreement of any nature whereby any Group Company is bound to assume commitments other than those obligations established by Law or by the respective Collective Bargaining Labor Agreement.

 

4.34         Labor Relations.  Except as set forth on Schedule 4.34 of the Disclosure Schedule, there have been no violations of any Laws with respect to the employment of individuals by, or the employment practices or work conditions of, any Group Company, or the terms and conditions of employment, wages and hours. None of the Group Companies are engaged in any unfair labor practice or other unlawful employment practice and there are no outstanding charges of unfair labor practices or other employee-related complaints pending or threatened against any Group Company before any Governmental or Regulatory Authority. There is no strike, picketing, slowdown or work stoppage or organizational attempt pending or threatened against or involving the Business of the Group Companies.  Seller hereby represents and warrants that he has no right or claim for any reason or cause directly or indirectly related to any prior relationship, either on a labor basis or otherwise, with the Group Companies including, without limitation, seniority indemnification in case of termination of the employment relationship without cause.  For clarification purposes, it is acknowledged and agreed that Seller’s employment relationship will be considered for all legal purposes as starting on the date of the Amended and Restated Employment Agreement, without prejudice to any provision to the contrary of any Law.

 

4.35         Financial Guaranties.  Except as set forth on Schedule 4.35 of the Disclosure Schedule, none of Seller nor any of the Group Companies is a financial guarantor or otherwise is liable for any liability or obligation (including Indebtedness) of the Company or any of its Subsidiaries or of any other Person.

 

4.36         Affiliate Transactions.  Except for the Transaction Documents or as set forth on Schedule 4.36 of the Disclosure Schedule, no officer, director, equity holder or Affiliate of any Group Company or any individual related by blood, marriage or adoption to any such Person or any entity in which any such Person owns any beneficial interest, is a party to any Contract or transaction with any Group Company or has any interest in any assets used by any Group Company.

 

4.37         Bank Accounts.

 

Schedule 4.37 of the Disclosure Schedule sets forth with regard to each bank account, safety deposit box and lock box of each Group Company, the name of the institution where such account is maintained, the account number, a list of the authorized signatories and its purpose.  Other than the accounts listed on Schedule 4.37 of the Disclosure Schedule, no Group

 

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Company maintains any accounts, lockboxes or safe deposit boxes at any bank, trust company, savings institution, brokerage firm or other financial institution.

 

4.38         Customers; Suppliers and Facility Mandates

 

(a)           Schedule 4.38(a) of the Disclosure Schedule sets forth the top 20 customers of the Group Companies (based on the dollar amount of sales to such customers) for the 12-month period ended December 31, 2010 (the “Material Customers”).  Except as set forth on Schedule 4.38(a) of the Disclosure Schedule, (i) all Material Customers continue to be customers of the Group Companies and none of such Material Customers has materially reduced the dollar amount of its purchases from the Group Companies from the levels achieved during the 12-month period ended December 31, 2010, other than any reduction occurring in the ordinary course of business, (ii) no Material Customer has terminated its relationship with the Group Companies, nor, has the Company received notice that any Material Customer intends to do so; (iii) no Group Company is involved in any material claim, dispute or controversy with any Material Customer and (iv) no Group Company is involved in any claim, dispute or controversy with any of its other customers.  No Material Customer has reduced its reimbursement rates or payment rates, nor, has the Company received any notice that any Material Customer intends to do so.

 

(b)           Schedule 4.38(b) sets forth the top 20 suppliers of the Group Companies (based on the dollar amount of purchases from such suppliers) for the 12-month period ended December 31, 2010 (the “Material Suppliers”).  Except as set forth on Schedule 4.38(b), (i) all Material Suppliers continue to be suppliers of the Group Companies and none of such Material Suppliers has reduced materially the dollar amount of the materials or services provided to the Group Companies from the levels achieved during the 12-month period ended December 31, 2010, other than any reduction occurring in the ordinary course of business; (ii) no Material Supplier has terminated its relationship with the Group Companies, nor has the Group Companies received notice that any Material Supplier intends to do so; (iii)  no Group Company is involved in any claim, dispute or controversy with any Material Supplier; and (iv)  no Group Company is involved in any material claim, dispute or controversy with any of its other suppliers.

 

4.39         Absence of Undisclosed Liabilities.  None of the Group Companies have any liabilities or other obligations of any nature arising out of or relating to the Business except: (a) liabilities or other obligations as and to the extent reserved against as set forth in the Financial Statements; (b) liabilities or other obligations incurred after the Interim Date in the ordinary course of business consistent with past practice; (c) liabilities or other obligations that may become payable pursuant to this Agreement; or (d) as otherwise disclosed on Schedule 4.39 of the Disclosure Schedule.

 

4.40         True and Correct Representations and Warranties and Statements of Facts.  No representation or warranty made by Seller in this Agreement or in any of the other Transaction Documents is false or inaccurate in any material respect, and no statement of fact made by Seller herein or therein contains any untrue statement of fact or omits to state any fact of which Seller are aware that is necessary in order to make the statement not misleading in any material respect.

 

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5.             Representations and Warranties of Buyers.  In order to induce Seller to enter into this Agreement and to consummate the Transactions, Buyers represent and warrant to Seller, as of the date hereof:

 

5.1           Organization of Buyer.  Each Buyer is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization.

 

5.2           Authorization of Transaction.  Each Buyer has full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of each Buyer, enforceable in accordance with its terms and conditions. Neither Buyer needs to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any Governmental or Regulatory Agency in order to consummate the Transactions. The execution, delivery, and performance of this Agreement and all other Transaction Documents hereby have been duly authorized by each Buyer.

 

5.3           Non-Contravention.  Neither the execution and delivery of this Agreement, nor the consummation of the Transactions, will (a) violate any Law or Order to which either Buyer is subject, or any provision of its charter, bylaws, or other governing documents, or (b) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which either Buyer is a party or by which it is bound or to which any of its assets are subject.

 

5.4           Brokers’ Fees.  Neither Buyer has any Liability to pay any fees or commissions to any broker, finder, or agent with respect to the Transactions.

 

5.5           Capitalization.  Each of Buyers, RTS and RTI represent and warrant to Seller that the authorized equity units of RTI consists of 10,283,955.1413 Class A Units, 526,262.5000 Class B Units, 967,848.8492 Class C Units and 546,182.2686 Preferred Units (collectively, the “Units”), of which 10,261,347.1413 Class A Units, 516,614.3368 Class B Units, 938,359.6682 Class C Units and 541,308.2661 Preferred Units are issued and outstanding, in each case, as of the Closing Date after giving effect to the transactions contemplated by the Transaction Documents.  All of the issued and outstanding Units have been duly authorized and are validly issued.

 

5.6           Additional Representations. Each of Buyers, RTS and RTI represent and warrant to Seller, as of the date hereof that the representations and warranties contained in Section 1 of the DDJ Note Purchase Agreement are true and correct in all material respects as though made as of the date of the DDJ Note Purchase Agreement.

 

6.             Conditions Precedent.

 

6.1           Obligations of Buyers.  The obligations of Buyers to enter into and complete the transaction contemplated by this Agreement and each of the other Transaction Documents is subject to the fulfillment on the Closing Date of the following conditions, any one or more of which may be waived by Buyers in their sole discretion:

 

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(a)           Representations and Warranties True as of Closing.  Each of the representations and warranties of Seller contained in this Agreement shall have been true and correct in all material respects (without duplication of any materiality qualifications included in such representations and warranties for the purposes of this Section 6.1(a)).

 

(b)           Compliance with Agreement.  Seller shall have performed and complied in all material respects with each of the agreements and covenants required by this Agreement to have been performed or complied with by him prior to or at the Closing.

 

(c)           Governmental Licenses, Permits and Approvals.  Any and all Permits and approvals from any Governmental or Regulatory Agency required for Buyer and/or Seller to lawfully enter into this Agreement or consummate the Closing of the Transactions shall have been obtained by such Party.

 

(d)           Authority and Third Party Consents.  Seller shall have obtained all consents and authorizations necessary to complete the Transactions. All consents, permits and approvals from parties to any Material Agreements which may be required in connection with the performance by Seller of his obligations under this Agreement and the other Transaction Documents, or to assure the continuance of such contracts or other agreements in full force and effect after the Closing Date (without any material breach by Seller and without giving any contracting party the right to terminate or modify) shall have been obtained by Seller.

 

(e)           Litigation.  No action, suit or proceeding shall have been instituted before any court or Governmental or Regulatory Agency or instituted or threatened by any Governmental or Regulatory Agency to restrain or prevent the carrying out of the Transactions or to seek damages in connection with such Transactions.

 

(f)            Documents Satisfactory.  All proceedings to be taken and all documents to be executed and delivered by Seller in connection with the consummation of the Transactions shall be reasonably satisfactory as to form and substance to Buyer and its counsel.

 

(g)           Closing Deliverables.  Buyer shall have received the closing deliverables to be received at Closing pursuant to Section 7.2 hereof.

 

6.2           Obligations of Seller.  The obligations of Seller to enter into and complete the Transactions is subject to the fulfillment on or prior to the Closing Date of the following conditions, any one or more of which may be waived by Seller in his sole discretion:

 

(a)           Closing Date Consideration. At the Closing, (x) Buyers shall pay to Seller an amount in cash equal to the Closing Date Cash Payment and (y) Buyer shall transfer to Seller the Common Stock Consideration, as specified in Section 2.2.

 

(b)           Escrow.  At the Closing, Buyer shall deliver the Escrow Amount by wire transfer of immediately available funds by overnight delivery to the Escrow Agent.

 

(c)           Representations and Warranties True as of Closing. Each of the representations and warranties of each Buyer contained in this Agreement shall have been true

 

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and correct in all material respects (without duplicating any materiality qualifications included in such representations and warranties for the purposes of this Section 6.2(a)).

 

(d)           Compliance with this Agreement. Each Buyer shall have performed and complied in all material respects with each of the agreements and covenants required by this Agreement to be performed or complied with by it prior to or at the Closing.

 

(e)           Closing Deliverables. Seller shall have received the closing deliverables to be received at Closing pursuant to Section 7.1 hereof.

 

7.             Delivery of Documents.

 

7.1           Delivery of Buyer’s Documents. At the Closing, Buyers shall deliver to Seller the following documents, any of which may be waived by Seller in his sole discretion:

 

(a)           a counterpart to the Contribution Agreement, duly executed by RTI;

 

(b)           a counterpart to a subscription agreement (the “Incentive Equity Subscription Agreement”) evidencing the issuance to Seller of the Class B Units and the Class C Units, in the form attached hereto as Exhibit I, duly executed by RTI;

 

(c)           a counterpart to the Amended and Restated Operating Agreement, duly executed by Buyer;

 

(d)           a counterpart to the Amended and Restated Employment Agreement, duly executed by the applicable Subsidiary(ies) of the Company; and

 

(e)           all such other documents, instruments and agreements deemed reasonably necessary by Seller or its counsel to effect the Transactions contemplated hereunder.

 

7.2           Seller’s Closing Deliveries. At the Closing, Seller shall deliver to Buyer the following documents, any of which may be waived by Buyer in its sole discretion:

 

(a)           (i) stock certificates of each Target Company, in the form suitable for transfer, evidencing transfer of the Purchased Interests, (ii) the appropriate notices of transfer and (iii) the entry in the stock ledgers of each Target Company acknowledging the transfer of the Purchased Interests;

 

(b)           evidence (in a form satisfactory to Buyer) of the waiver of any rights of first refusal or any other purchase rights of minority holders with respect to the Purchased Interests;

 

(c)           original copies of the incorporation documents and by-laws of each Target Company and the books and records of each Target Company;

 

(d)           a certification issued by an officer of each Group Company acknowledging the transfer of the Purchased Interests to Buyer;

 

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(e)           a counterpart to the Contribution Agreement, duly executed by Seller;

 

(f)            a joinder to the RTI LLC Agreement duly executed by Seller;

 

(g)           a joinder to the RTI Securityholders Agreement duly executed by Seller;

 

(h)           an IRS Form W-8BEN, duly executed by Seller;

 

(i)            a counterpart to the Amended and Restated Employment Agreement, duly executed by  Seller;

 

(j)            legal opinions from Seller’s counsel regarding each Group Company, substantially in the form annexed hereto as Exhibit J; and

 

(k)           all such other documents, instruments and agreements deemed reasonably necessary by Buyer or its counsel to effect the Transactions contemplated hereunder.

 

8.             Indemnification.

 

8.1           Indemnification of Buyers. Seller agrees to indemnify and hold harmless Buyers and their respective officers, directors, shareholders, employees, agents, representatives, and Affiliates (the “Buyer Indemnitees”) from and against all claims, suits, obligations, liabilities, damages and expenses, including, without limitation, reasonable attorneys’ fees incurred by the Buyer Indemnitees incurred in attempting to enforce this indemnity (“Losses”), based upon, arising out of or resulting from:

 

(a)           any breach of any of the representations and warranties made by Seller contained in this Agreement if such breach relates to (x) Seller or (y) any of the Target Companies (but only to the extent of Seller’s percentage ownership interest in the Target Companies prior to Closing), except as set forth in Section 8.1(b));

 

(b)           any breach of the representations and warranties made by Seller contained in Section 4.1 (Authorization of Transaction), Section 4.3 (Brokers’ Fees), Section 4.4 (Capitalization), Section 4.5 (Seller Expenses), Section 4.6 (Related Party Payments), Section 4.8 (Lock Box), and Section 4.36 (Affiliate Transactions);

 

(c)           any breach of any covenants or agreements made by Seller contained in this Agreement;

 

(d)           any Pre-Closing Taxes;

 

(e)           any and all claims of any third party for alleged liabilities or obligations of the Target Companies (but only to the extent of Seller’s percentage ownership interest in the Target Companies immediately prior to the Closing) as they relate to the Business related to or occurring during the period prior to the Closing; and

 

33

 

(f)            any and all claims of any third party, including without limitation, any former and present interest holder in any Target Company, related to the distribution of all or any portion of the Purchase Price or the Earnout Payment.

 

8.2           Indemnification of Seller. Buyers hereby agree to indemnify and hold harmless Seller and its officers, shareholders, employees, agents, representatives, and Affiliates, as applicable (the “Seller Indemnitees”) from and against all Losses based upon, arising out of or resulting from any breach of Buyers’ representations, warranties, covenants or agreements contained in Section 5.1-5.5 of this Agreement.  Buyers, RTS and RTI agree to indemnify and hold harmless the Seller Indemnitees from any material breach of Buyer’s representations and warranties contained in Section 5.6 of this Agreement (but, with respect to any particular Loss, only up to the extent of Seller’s percentage equity ownership interest in RTI immediately after Closing).  The Seller Indemnitees shall not be entitled to recover Losses pursuant to breaches any of Buyer’s representations and warranties contained in Sections 5.5 or 5.6 of this Agreement in the aggregate in excess of an amount equal to the sum of $16,250,000, plus the amount of the Earnout Payment then earned, other than Losses relating to fraud committed by Buyer or any of its Affiliates.

 

8.3           Survival.  The Parties agree that the representations and warranties of the Parties contained in this Agreement shall survive the Closing until the eighteen month anniversary of the Closing Date (the “General Survival Date”), except that the Fundamental Representations shall survive until the 30th day after the date on which the applicable statute of limitations expires.  Except as otherwise expressly set forth herein, each of the covenants set forth in this Agreement and the indemnification obligations of the Parties set forth in this Agreement shall survive the Closing for the applicable statute of limitations period governing the respective matters set forth therein.

 

8.4           Manner of Calculation.  For the purposes of determining whether there has been a breach of any representation or warranty and the amount of Loss related thereto, the representations and warranties set forth in this Agreement (other than those in Section 5.6)  shall be considered without regard to any materiality qualification (including terms such as “material” and “material adverse effect”) set forth therein.

 

8.5           Limitations on Indemnification Obligations.  The rights to indemnification pursuant to the provisions of this Agreement are subject to the following limitations:

 

(a)           the Buyer Indemnitees shall not be entitled to recover for any particular Loss pursuant to Section 8.1(a) (other than Losses relating to breaches of the Fundamental Representations) until the total amount of Losses (or series of related Losses) which the Buyer Indemnitees would recover under Section 8.1(a) exceeds $275,000 (the “Deductible”), and to the extent Losses claimed exceed the Deductible, the Buyer Indemnitees shall be entitled to recover all Losses in excess of the Deductible;

 

(b)           the Buyer Indemnitees shall not be entitled to recover for any particular Loss pursuant to Section 8.1(a) relating to breaches of Section 4.12 (Financial Statements) until the total amount of Losses (or series of related Losses) which the Buyer Indemnitees would recover under Section 8.1(a) exceeds $250,000 (the “Financial Statements Deductible”), and to

 

34

 

the extent Losses claimed exceed the Financial Statements Deductible, the Buyer Indemnitees shall be entitled to recover all Losses in excess of the Financial Statements Deductible.  The Parties acknowledge that they have engaged in extensive discussion together and in conjunction with the Company’s auditors regarding the calculation of EBITDA, the amount of accounts receivable, the allowance for doubtful accounts, and working capital, in each case, of the Group Companies and as set forth on the attached Exhibit K.  The Parties acknowledge their agreement with Exhibit K based upon the facts and circumstances as known at such time of agreement, and further acknowledge and agree that no indemnification claims can be made by Buyer (i) with respect to the matters set forth on Exhibit K, unless such indemnification claims are based on the development and/or disclosure of, facts and/or circumstances, which such facts and circumstances were not taken into account in the preparation of Exhibit K, thereby resulting in an error and/or omission with respect to the matters contained in Exhibit K and (ii) for any Losses solely arising from any restatements of the Financial Statements resulting from changes to applicable accounting rules or regulations or a change in interpretation of such accounting rules or regulations or a change in a policy or practice at Buyer or Buyer’s Affiliates election from historical policy or practice; and

 

(c)           the Buyer Indemnitees shall not be entitled to recover Losses pursuant to Section 8.1 in the aggregate in excess of an amount equal to forty percent (40%) of the Purchase Price (the “Cap”), other than Losses relating to (i) Pre-Closing Taxes, (ii) any breach of any covenant made by Seller in this Agreement, (iii) fraud committed by the Seller or any of its Affiliates or (iv) any breach of any Fundamental Representation.

 

8.6           Notice and Opportunity to Defend. If any Party (the “Indemnitee”) receives notice of any claim or the commencement of any action or proceeding with respect to which any other Party is obligated to provide indemnification (the “Indemnifying Party”) pursuant to Section 8.1 or 8.2, the Indemnitee shall promptly, (and in any event within five (5) Business Days after receiving notice of the claim) give the Indemnifying Party notice thereof; provided, however, that the failure to deliver such notice shall not be a condition precedent to any liability of the Indemnifying Party under the provisions for indemnification contained in this Agreement except to the extent the failure to deliver such notice prejudices the Indemnifying Party’s ability to defend such proceeding.  The Indemnifying Party may assume control of such defense; provided, that prior to the Indemnifying Party assuming control of such defense, it shall (x) demonstrate to the Indemnitee in writing such Indemnifying Party’s financial ability to provide full indemnification to the Indemnitee with respect to such proceeding (including the ability to post any bond required by the court or adjudicative body before which such Proceeding is taking place) and (y) agree in writing to be fully responsible for all Losses relating to such proceeding; provided, further, that: (a) the Indemnitee shall be entitled to participate in the defense of such claim and to employ counsel of its choice for such purpose at its own expense; and (b) the Indemnifying Party shall not be entitled to assume control of such defense without the prior written consent of the Indemnitee if (i) the claim for indemnification relates to or arises in connection with any criminal proceeding, action, indictment, allegation or investigation, (ii) the Indemnitee reasonably believes an adverse determination with respect to the Proceeding giving rise to such claim for indemnification would be materially detrimental to or materially injure the Indemnitee’s reputation or future business prospects, (iii) such claim seeks an injunction or equitable relief against the Indemnitee, (iv) a conflict of interest exists between the Indemnifying Party and the Indemnitee, or (v) the Indemnifying Party failed or is failing to

 

35

 

vigorously prosecute or defend such claim.  In any event, the Indemnitee, the Indemnifying Party and the Indemnifying Party’s counsel shall cooperate in the compromise of, or defense against, any such asserted liability; provided, however, that Indemnifying Party shall not compromise or settle any such matter without Indemnitee’s prior written consent. If the Indemnifying Party chooses to defend any claim, the Indemnitee shall make available to the Indemnifying Party any books, records or other documents within its control that are necessary or appropriate to such defense.

 

8.7           Payment.  The Indemnifying Party shall pay the Indemnitee the amount of established claims for indemnification within ten (10) days after the establishment thereof (the “Due Date”). Any amounts not paid by the Indemnifying Party when due under this Section 8.7 shall bear interest from the Due Date thereof until the date paid at a rate equal to three (3) points above the interest announced from time to time by Citibank, N.A. as its prime or base rate of interest. All payments after the Closing by the Seller to a Buyer Indemnified Party pursuant to this Section 8 shall be satisfied as follows: (i) first, from the Escrow Funds (to the extent funds from the Escrow Funds are sufficient) and Buyer and the Seller shall execute the necessary documents instructing the Escrow Agent to make the applicable payments, and (ii) second, paid by Seller in cash to Buyers; provided, that, if Seller fails to satisfy its cash payment obligations pursuant to this Section 8.7, Buyers may elect (in their sole discretion) to satisfy any such outstanding amounts by forfeiture of Preferred Units and Class A Units (in the same proportion and at the same issuance price implied by the Contribution Agreement).  On the Escrow Release Date, Buyer and Seller shall execute the necessary documents instructing the Escrow Agent to release to Seller an amount equal to the balance of the Escrow Funds minus the aggregate amount, if any, which any Buyer Indemnified Party has claimed under this Section 8 (to the extent such claims, if any, remain unresolved or are resolved but unpaid as of the Escrow Release Date).  To the extent there are any unresolved and/or unpaid claims as of the Escrow Release Date, Buyer and Seller shall execute the necessary documents instructing the Escrow Agent to make the applicable payment to the party entitled to such amounts upon resolution of such claims.  Seller shall take all action requested by Buyers in connection with the reduction and/or forfeiture of the Class A Units and Preferred Units and hereby irrevocably appoints Buyer (or its designee(s)) as its attorney-in-fact with full power to act on its behalf in connection therewith.  Notwithstanding anything to the contrary herein, in the LLC Agreement, the Contribution Agreement, or the Incentive Equity Subscription Agreement, Buyers and their Affiliates shall not have any obligation to make any payments or other distributions under the RTI Units so long as any indemnification claims are in dispute or payment thereof is outstanding.

 

8.8           Indemnification Rights. The right of any Party to indemnification, reimbursement or other remedy based upon the representations, warranties, covenants and obligations contained herein shall not be affected by any investigation conducted with respect to, or any Knowledge acquired (or capable of being acquired) at any time, whether before or after the Closing Date, with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty, covenant or obligation, including — without limitation — by any report that may have been received by Buyers from Seller or resulting from Buyers’ due diligence procedures conducted with respect to the Group Companies.

 

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8.9           No Double-Recovery. Notwithstanding anything to the contrary herein, the Buyer Indemnitees shall not be entitled to recover for any particular Loss to the extent such Buyer Indemnitees have recovered such Loss from another Seller Party.

 

8.10         Letter Agreement. Notwithstanding anything to the contrary herein, (a) Buyer and its Affiliates shall not be restricted from or in any way limited (including by Section 8.5) in their ability to recover from Seller pursuant to that certain letter agreement between Seller (on behalf of the sellers in the Original Agreement) and RTS, dated as of January 29, 2010 (the “Letter Agreement”) and (b) the Buyer Indemnitees may make claims under the Letter Agreement without recovering from the Escrow Agreement or any other available security; provided, that notwithstanding the foregoing, the Buyer Indemnitees may in their sole discretion) make claims under this Agreement for the matters covered by the Letter Agreement.

 

9.             Restrictive Covenants.

 

9.1           Restrictive Covenants.  For a period of five (5) years following the Closing Date, Seller shall not, nor shall he permit any Person (alone or together with others) controlling, controlled by, Affiliated with or related to Seller to, directly or indirectly (including through ownership, management, operation, or control of any other Person, or participation in the ownership, management, operation or control of any other Person, or by being connected with or having any interest in, as a stockholder, agent, consultant or partner, any other Person):

 

(a)           make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, to any vendors, payors, referring physicians or any other third parties, or take any action which may, directly or indirectly, disparage any Group Company, their respective Affiliates or any of such Person’s officers, directors, employees, advisors, businesses, or reputations. Notwithstanding the foregoing, nothing in this Agreement shall preclude Seller from making truthful statements or disclosures that are required by applicable law, regulation or legal process;

 

(b)           engage in the ownership, operation, control, or management of radiation oncology facilities, or otherwise engage in the provision of radiation oncology services (whether as a separate business or in conjunction with any business or practice) (a “Competing Business”) anywhere in Latin America or the Caribbean or any other jurisdiction in the world that the Company or any of its Affiliates is operating or planning to operate (the “Service Area”);

 

(c)           have any interest, whether as owner, stockholder, member, partner, director, officer, consultant or otherwise, in any Competing Business in the Service Area; provided, however, that the foregoing restriction shall not prevent Seller from owning stock in any Competing Business listed on a national securities exchange or traded in the over-the-counter market provided that Seller does not own more than an aggregate of one percent (1%) of the stock of such entity; or

 

(d)           directly or indirectly employ or retain or attempt to employ or retain or knowingly arrange or solicit to have any other Person employ or retain, any employee, consultant or any Person who heretofore has been employed or retained by Group Company in

 

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connection with any aspect of the Business during the eighteen (18) month period prior to the Closing Date or anytime thereafter.

 

9.2           Reasonableness of Restrictive Covenants.  Seller acknowledges and agrees that Buyer and its Affiliates operate the Business internationally and therefore, the restrictive covenants contained herein have unique value to Buyers, the breach of which cannot be adequately compensated in an action of law. Seller further agrees that, in the event of the breach of the restrictive covenants contained herein, Buyers shall be entitled to obtain appropriate equitable relief, including, without limitation, a permanent injunction or similar court order enjoining Seller from violating any of such provisions, and that pending the hearing and the decision on the application for permanent equitable relief, Buyers shall be entitled to a temporary restraining order and a preliminary injunction. The prevailing Party shall be entitled to reimbursement from the other Party of its reasonable costs and expenses (including attorneys’ fees and disbursements) of, or related to, such action or proceeding. No such remedy shall be construed to be the exclusive remedy of Buyers and any and all such remedies shall be held and construed to be cumulative and not exclusive of any rights or remedies, whether at law or in equity, otherwise available under the terms of this Agreement, at common law, or under federal, state or local statutes, rules and regulations.  If any court of competent jurisdiction shall deem any of the restrictive covenants contained in this Section 9.2, or portion of any such covenants, too extensive or unenforceable, the other provisions of this Section 9.2 shall nevertheless stand and remain enforceable according to their terms. In such circumstance, the Parties expressly authorize the court to modify such covenants or offending portion thereof, so that the restrictions, limitations and scope of the restrictive covenants extend for the longest period, comprise the largest territory and are enforceable to the maximum permissible extent by law under the circumstances.  The provisions of this Section 9.2 shall survive the execution and delivery of this Agreement.

 

10.           Disclosure of Information.

 

10.1         Confidential Information. Each of the Parties hereto recognizes and acknowledges that (a) the Transaction (including the terms and existence of this Agreement and the other Transaction Documents) are highly confidential matters and (b) during the course of negotiations in connection with the transaction contemplated hereby each Party will grant access to, certain plans, systems, methods, designs, procedures, books and records relating to operations, personnel and practices, as well as records, documents and information concerning business activities, practices, procedures and other confidential information of the other Party (all of the foregoing, collectively, the “Confidential Information”), all of which constitute and will constitute valuable, special and unique assets of such Party’s business.  Seller agrees to treat Confidential Information as confidential, shall make all reasonable efforts to preserve its confidentiality, and shall not duplicate or disclose such Confidential Information, except in connection with the transaction contemplated hereby to advisors, attorneys, accountants, bankers, investment bankers, consultants and affiliates (the foregoing parties being referred to herein as “Designated Representatives”) Seller, in its reasonable discretion, shall deem necessary and which Designated Representatives shall agree to be bound by an obligation of confidentiality at least as restrictive as set forth herein. Except for such disclosure to Designated Representatives as may be necessary or appropriate and such public or other disclosures as may be required by court order or any state or federal law or regulation to which a Party is subject or in order to

 

38

 

defend litigation (in which case the disclosing Party shall provide the other Party with notice and a copy of the required disclosure a reasonable period of time in advance of such disclosure), the Parties agree to use all reasonable efforts to maintain in confidence the existence and terms of this Agreement and the Transaction and no Party shall issue any press release or public statement without the prior written consent of all other Parties.

 

10.2         Injunctive Relief. The Parties hereto acknowledge that the restrictions contained in Section 10.1, in view of the nature of the business in which the other Parties are engaged, are reasonable and necessary in order to protect the respective legitimate interests of such other Parties, and that any material violation thereof could result in irreparable injuries to such other Party. Each therefore acknowledges that, in the event of a breach or threatened breach of the provisions of this Section 10, the other Party shall be entitled to obtain from any court of competent jurisdiction, preliminary and permanent injunctive relief restraining the breaching Party from disclosing any such records, documents or information to any person, firm, corporation, association or other entity whatsoever or from using any thereof in any manner whatsoever.

 

10.3         Other Remedies. Nothing contained in Section 9 or this Section 10 shall be construed as prohibiting any Party hereto from pursuing any other remedies available to it for any such breach or threatened breach, including the recovery of damages.

 

10.4         Survival. The provisions of this Section 10 shall survive the execution and delivery of this Agreement.

 

11.           Directors and Officers. Seller agrees to take actions directed by Buyer to reconstitute the boards of directors slate of any of the Group Companies in the manner designated by Buyer. During the period during which Seller is eligible to earn the Earnout Payment or make investments in New Projects and for so long as Seller is an employee of the Group Companies (the “Eligibility Period”), if requested by Seller, Buyer will use commercially reasonable efforts to designate a representative of Seller as a member (or observer) of the board of directors of each Group Company requested by Seller for the Eligibility Period.

 

12.           Further Assurances.  Each of the Parties hereto shall, at the request of the other Party, furnish, execute and deliver such documents, instruments, certificates, notices and further assurances as counsel for the requesting Party shall reasonably deem necessary or desirable to effect complete consummation of this Agreement and the consummation of each of the Transaction Documents and to carry out the Transactions, or in connection with the preparation and filing of reports required or requested by any Governmental or Regulatory Authority.  At either Party’s request and upon reasonable notice, the other Party shall provide the requesting Party with access to all books and records related to the Business for purposes of review by any Governmental or Regulatory Authority having jurisdiction over Buyers or Seller.

 

13.           Miscellaneous.

 

13.1         Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be delivered personally, or sent by certified, registered or express air mail, postage prepaid, or sent by facsimile with receipt confirmed or electronic mail,

 

39

 

and shall be deemed given when so delivered personally, if delivered during normal business hours or if delivered after normal business hours, then the next Business Day after its delivery, or if mailed, two days after the date of mailing, as follows:

 

	
If   to Seller:
    	
Estudio Chehtman   Abogados 
   Av. Córdoba 1233 - Piso 6o 
   1055 Buenos Aires - Argentina 
   Tel./Fax: (5411) 4813-6565 
   Attention:  Dr. Eduardo Chehtman

 
    
	
With   a copy to:
    	
Shumaker, Loop & Kendrick, LLP
   Bank of America Plaza
   101 East Kennedy Boulevard, Suite 2800
   Tampa, FL 33602

Attention:  Darrell C. Smith
   Tel:  (813) 227-2226

Fax:    (813) 229-1660

Email:    dsmith@slk-law.com

 
    
	
If   to Buyers, RTI or RTS to:
    	
Radiation   Therapy Services International, Inc.
   2234 Colonial Boulevard
   Fort Myers, Florida 33907
   Attention:  Daniel E. Dosoretz, M.D.
   President and Chief Executive Officer
   E-Mail: ddosoretz@rtsx.com

 

-   and -

   Radiation Therapy Services, Inc.

1010   Northern Boulevard, Suite 314

Great   Neck, New York 11021

Attention:   Norton L. Travis, Esq.

Executive   Vice President and General Counsel
   E-Mail: ntravis@rtsx.com

 
    
	
With   a copy to:
    	
Kirkland &   Ellis LLP

601   Lexington Avenue
   New York, NY 10022

Attention:   Michael Movsovich; Hannah Kong

Tel:   (212) 446-4888; (212) 446-6492

Fax: (212) 446-6400
    
	
 
    	
E-Mail:
    	
michael.movsovich@kirkland.com;
    
	
 
    	
 
    	
hannah.kong@kirkland.com
    

 

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and   with a copy to:
    	
Brons & Salas

Maipú 1210 - Piso 5

(1006) Buenos Aires - Argentina

Attention:   Eduardo E. Represas

Tel   : (5411) 4891-2700

Fax : (5411) 4311-7025

E-Mail: erepresas@brons.com.ar
    

 

13.2         Entire Agreement.  This Agreement and each of the Transaction Documents (including the Exhibits and Schedules hereto and thereto) contains the entire agreement among the Parties with respect to the transactions contemplated hereby and supersedes all prior agreements, written or oral, with respect thereto.

 

13.3         Transfer Taxes.  All Transfer Taxes, together with any interest, penalties or additions to such Transfer Taxes, shall be borne by Seller, except that Transfer Taxes related to the Argentine stamp Tax arising as a result of this Transaction solely with respect to the sale of Equity Interests of Argentine entities shall be borne equally by Buyer and Seller.

 

13.4         Waivers and Amendments. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the Party waiving compliance. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies which any Party may otherwise have at law or in equity.

 

13.5         Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Florida without regard to its conflicts of law principles.

 

13.6         Consent to Jurisdiction and Services of Process. Any legal action, suit or proceeding arising under or related in any way to this Agreement, the relationship of the parties, the transactions leading to this Agreement or contemplated hereby, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties hereunder or related in any way to the foregoing may only be instituted in any state or federal court in the city of Fort Myers, Florida, and each party waives any objection which such party may now or hereafter have to the laying of the venue of any such action, suit or proceeding, and irrevocably submits to the jurisdiction of any such court in any such action, suit or proceeding.

 

13.7         Waiver of Jury Trial.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY PROCEEDING BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR ACTION OF ANY PARTY HERETO.

 

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13.8         Savings Clause. If any provision of this Agreement, or the application of any provision hereof to any person or circumstances, is held to be legally invalid, inoperative or unenforceable, then the remainder of this Agreement shall not be affected unless the invalid provision substantially impairs the benefit of the remaining portions of this Agreement to all of the Parties.

 

13.9         Construction of Certain Terms and Phrases. Unless the context of this Agreement otherwise requires: (a) words of any gender include each other gender; (b) words using the singular or plural number also include the plural or singular number, respectively; and (c) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement; (d) the term “Section” refers to the specified Section of this Agreement. Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified and (e) the use in this Agreement of the term “including” and other words of similar import mean “including, without limitation”.

 

13.10       Applicable Currency. All references in this Agreement to “$” or “dollars” shall mean U.S. dollars.

 

13.11       Exhibits and Schedules. The Exhibits and Schedules to this Agreement are incorporated hereby as a part of this Agreement as fully as if set forth in full herein.

 

13.12       Headings. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

13.13       Expenses. Except as set forth in Section 13.3, each Party shall bear its own expenses arising out of the negotiation and execution of the Transaction Documents and the consummation of the Transactions, including, without limitation, any and all filing fees, legal, accounting advisory and other professional fees and expenses incurred by such Party in connection therewith.

 

13.14       Assignment. This Agreement and all of the provisions hereof will be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by (a) Seller without the prior written consent of Buyer, or (b) Buyers without the prior written consent of Seller; provided, however, that Buyers, RTS and RTI shall have the right, without the consent of Seller, to assign all or any portion of its rights, duties and obligations under this Agreement and under any Transaction Document to (i) any Affiliate of either Buyer, (ii) any of its financing sources and (c) any third party who subsequently purchases all or a portion of the then existing assets of either Buyer or any of its Subsidiaries in a single transaction or series of related transactions; provided, that notwithstanding any such permitted assignment by either Buyer, RTS or RTI pursuant to clauses (i) or (ii) above, each Buyer, RTS and RTI, as applicable, will remain liable for the payment and performance of their obligations under this Agreement.

 

13.15       Reproductions. This Agreement and all Transaction Documents in the possession of any Party which relate hereto or thereto may be reproduced by such Party, and any such reproduction shall be admissible in evidence, with the same effect as the original itself, in

 

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any judicial or other administrative proceeding, whether the original is in existence or not. No Party will object to the admission in evidence of any such reproduction, unless the objecting Party reasonably believes that the reproduction does not accurately reflect the contents of the original and objects on that basis

 

13.16       Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute a single instrument. Delivery of a copy of a Transaction Document bearing an original signature by facsimile transmission (whether directly from one facsimile device to another by means of a dial-up connection or whether mediated by the worldwide web), by electronic mail in “portable document format” (“.pdf”) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signature.

 

13.17       Public Announcements. Seller and Buyers each agree (i) to consult with each other before issuing any press release or otherwise making any public statement with respect to the transactions contemplated by this Agreement, (ii) to provide to the other Party for review a copy of any such press release or public statement and (iii) to not issue any such press release or make any such public statement prior to such consultation and review and, unless such issuance is required by applicable Law, the receipt of the prior consent of Seller and Buyer, provided, however, that Buyers and its Affiliates may, without the consent of any other party, describe the transactions contemplated hereby to its current or prospective lenders or on its and any of its Affiliates’ password protected websites and in communications with, and marketing materials provided to, its and its Affiliates’ investors and after the Closing, to its and its Affiliates’ prospective investors.

 

13.18       Affiliate Transaction.  Seller agrees to provide Buyer with any information requested by Buyer with respect to the affiliate transactions set forth on Schedule 4.36 of the Disclosure Schedule and to take all action reasonably directed by Buyer with respect to such affiliate transactions to ensure that the terms and conditions thereof are on an arms length basis.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the Parties have executed this Membership Interest Purchase Agreement as of the date first above written in New York, New York, U.S.A.

 

 

	
 
    	
RADIATION   THERAPY SERVICES
    
	
 
    	
INTERNATIONAL,   INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kerrin E. Gillespie
    
	
 
    	
Name:
    	
Kerrin   E. Gillespie
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RADIATION   THERAPY SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kerrin E. Gillespie
    
	
 
    	
Name:
    	
Kerrin   E. Gillespie
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RADIATION   THERAPY INVESTMENTS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Erin L. Russell
    
	
 
    	
Name:
    	
Erin   L. Russell
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MAIN   FILM B.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kerrin E. Gillespie
    
	
 
    	
Name:
    	
Kerrin   E. Gillespie
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Alejandro Dosoretz
    
	
 
    	
Alejandro   Dosoretz
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Claudia Elena Kaplan Browntein de   Dosoretz
    
	
 
    	
Claudia Elena Kaplan Browntein de Dosoretz

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