Document:

Exhibit 10.1

Exhibit 10.1

STOCK PURCHASE AGREEMENT

by and among

Rural Hospital Acquisition, LLC, as Seller

One Cura Wellness Trust, Inc., as Buyer

RHA Anadarko, LLC

and

RHA Stroud, LLC

Dated: April 1, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1
	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2
	 
	 
	 	 	 	 
	PURCHASE AND SALE OF SHARES
	 	 	4	 
	Section 2.1 Basic Transaction
	 	 	4	 
	Section 2.2 Purchase Price; Buyer’s Deliveries at Closing
	 	 	4	 
	Section 2.3 Closing
	 	 	5	 
	Section 2.4 Seller’s Deliveries at Closing
	 	 	5	 
	Section 2.5 No Representations and Warranties
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3
	 
	 
	 	 	 	 
	PRE-CLOSING COVENANTS
	 	 	6	 
	Section 3.1 General
	 	 	6	 
	Section 3.2 Notices and Consents
	 	 	6	 
	Section 3.3 Operation of Business
	 	 	6	 
	Section 3.4 Access
	 	 	7	 
	Section 3.5 Exclusivity
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 4
	 
	 
	 	 	 	 
	POST-CLOSING COVENANTS
	 	 	7	 
	Section 4.1 General
	 	 	7	 
	Section 4.2 Litigation Support
	 	 	7	 
	Section 4.3 Confidentiality
	 	 	8	 
	Section 4.4 Employment Agreement
	 	 	8	 
	Section 4.5 Staff Leasing Agreement
	 	 	8	 
	Section 4.6 Management Services Agreement
	 	 	8	 
	Section 4.7 Tax Matters
	 	 	8	 
	Section 4.8 Tax Allocations
	 	 	9	 
	Section 4.9 Interim Cost Reports
	 	 	9	 
	Section 4.10 Approval as Federally Qualified Health Centers
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 5
	 
	 
	 	 	 	 
	CONDITIONS TO OBLIGATION TO CLOSE
	 	 	9	 
	Section 5.1 Conditions to Buyer’s Obligation
	 	 	9	 
	Section 5.2 Conditions to Seller’s Obligation
	 	 	10	 

 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 6
	 
	 
	 	 	 	 
	TERMINATION
	 	 	11	 
	Section 6.1 Termination of Agreement
	 	 	11	 
	Section 6.2 Effect of Termination
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 7
	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	12	 
	Section 7.1 Press Releases and Public Announcements
	 	 	12	 
	Section 7.2 No Third-Party Beneficiaries
	 	 	12	 
	Section 7.3 Entire Agreement
	 	 	12	 
	Section 7.4 Succession and Assignment
	 	 	12	 
	Section 7.5 Counterparts
	 	 	12	 
	Section 7.6 Headings
	 	 	12	 
	Section 7.7 Notices
	 	 	13	 
	Section 7.8 Governing Law
	 	 	13	 
	Section 7.9 Amendments and Waivers
	 	 	13	 
	Section 7.10 Severability
	 	 	14	 
	Section 7.11 Expenses
	 	 	14	 
	Section 7.12 Construction
	 	 	14	 
	Section 7.13 Incorporation of Exhibits and Disclosure Schedule
	 	 	14	 

 

-ii-

 

EXHIBITS

	 	 	 
	Exhibit A — Anadarko Note
	 	 
	Exhibit B — Stroud Note
	 	 
	Exhibit C — Employment Agreement
	 	 
	Exhibit D — Staff Leasing Agreement
	 	 
	Exhibit E — Management Services Agreement

	 	 
	Exhibit F — Allocation Statement
	 	 

 

-iii-

 

STOCK PURCHASE AGREEMENT

This STOCK PURCHASE AGREEMENT (this “Agreement”) is entered into as of April 1, 2011,
by and among ONE CURA WELLNESS TRUST, INC., a California not-for-profit corporation
(“Buyer”), RHA ANADARKO, LLC, an Oklahoma limited liability company (“RHA
Anadarko”), RHA STROUD, LLC, an Oklahoma limited liability company (“RHA Stroud”), and
RURAL HOSPITAL ACQUISITION LLC, an Oklahoma limited liability company (“Seller”). Buyer,
RHA Anadarko, RHA Stroud and Seller are referred to individually as a “Party” and
collectively as the “Parties.”

R E C I T A L S

Seller currently owns all of the issued and outstanding Shares of RHA Anadarko, which are
designated as preferred and common shares (the “Anadarko Shares”).

Seller currently owns all of the issued and outstanding Shares of RHA Stroud, which are
designated as preferred and common shares (the “Stroud Shares”). The Anadarko Shares and
the Stroud Shares are sometimes collectively referred to herein as the “Shares.”

Buyer desires to purchase and acquire all of the Shares from Seller, and Seller desires to
sell, transfer and convey to Buyer, the Shares, all in accordance with terms and conditions set
forth in this Agreement.

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

ARTICLE 1

DEFINITIONS

“Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated
under the Securities Exchange Act.

“Agreement” has the meaning set forth in the preamble above.

“Allocation Statement” has the meaning set forth in Section 4.8.

“Anadarko Note” has the meaning set forth in Section 2.2(a) below.

“Anadarko Shares” has the meaning set forth in the Recitals.

“Buyer” has the meaning set forth in the preamble above.

“Closing” has the meaning set forth in Section 2.3 below.

“Closing Date” has the meaning set forth in Section 2.3 below.

 

-1-

 

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

“Companies” means RHA Anadarko and RHA Stroud, collectively.

“Confidential Information” means any information concerning the business and affairs
of the Companies not already generally available to the public.

“Debt” means: (a) any indebtedness for borrowed money; (b) any unpaid interest and
bank fees owing on any such indebtedness; (c) any obligations in respect of capitalized leases
(calculated in accordance with GAAP) and obligations for the deferred purchase price of goods or
services (other than trade payables incurred in the Ordinary Course of Business); (d) any
obligations in respect of banker’s acceptances or letters of credit; and (e) all indebtedness or
obligations of the types referred to in the preceding clauses (a) through (d) of any other Person
secured by any Lien on any assets of either of the Companies, even though the Companies have not
assumed or otherwise become liable for the payment thereof, but excluding customer deposits and
interest payable thereon in the Ordinary Course of Business; (f).

“Employment Agreement” has the meaning set forth in Section 4.4 below.

“Existing Notes” has the meaning set forth in Section 2.2(c) below.

“First Physicians Realty Group” has the meaning set forth in Section 2.2(c) below.

“GAAP” means United States generally accepted accounting principles as in effect from
time to time, consistently applied.

“Lien” means any mortgage, pledge, lien, encumbrance, charge, or other security
interest, other than: (a) liens for Taxes not yet due or payable or for Taxes that either of the
Companies are contesting in good faith through appropriate proceedings in a timely manner, in each
case for which adequate reserves have been established, and (b) liens of landlords, carriers,
warehousemen, workmen, repairmen, mechanics, materialmen and similar liens arising in the Ordinary
Course of Business and not incurred in connection with the borrowing of money, all of which do not
individually, or in the aggregate, affect the value of either of the Companies’ assets or interfere
with the conduct of the business of either of the Companies.

“Management Services Agreement” has the meaning set forth in Section 4.6 below.

“Material Adverse Effect” or “Material Adverse Change” means any effect or
change that individually or in the aggregate would be materially adverse to the business, assets
(including intangible assets), liabilities, or financial condition or results of operations of
either of the Companies, or to the ability of any Party to consummate timely the transactions
contemplated hereby; provided that none of the following shall be deemed to constitute, and none of
the following shall be taken into account in determining whether there has been, a Material Adverse
Effect or Material Adverse Change: (a) any adverse change, event, development, or effect arising
from or relating to: (1) financial, banking, or securities markets (including any disruption
thereof and any decline in the price of any security or any market index), (2) changes in United
States laws, rules, regulations, orders, or other binding directives issued by any governmental
authority, to the extent such change, event, development or effect described in this clause does
not directly impair or render either of the Companies substantially inoperative, (3) the
industry in which Seller operates and the United States economy as a whole, to the extent such
change, event, development or effect described in this clause does not directly impair or render
either of the Companies substantially inoperative or have a disproportionate effect on the
Companies, or (4) the taking of any action contemplated by this Agreement and the other agreements
contemplated hereby; and (b) any adverse change in or effect on either of the Companies that is
cured by Seller before the earlier of (1) the Closing Date and (2) the date on which this Agreement
is terminated by Buyer pursuant to Section 6.1 hereof.

 

-2-

 

“Ordinary Course of Business” means the ordinary course of business consistent with
past custom and practice.

“New Notes” means the Anadarko Note and the Stroud Note, collectively.

“Party” or “Parties” has the meaning set forth in the preamble above.

“Permit” means any license, franchise, consent, permit, certificate, certificate of
occupancy, order, authorization, approval or registration with any domestic or foreign governmental
body.

“Person” means an individual, a partnership, a corporation, limited liability company,
an association, a joint stock company, a trust, a joint venture, an unincorporated organization,
any other business entity, or a governmental entity (or any department, agency, or political
subdivision thereof).

“Pre-Closing Tax Periods” has the meaning set forth in Section 4.7(a) below.

“Purchase Price” means the New Notes and the cancellation of the Existing Notes.

“RHA Anadarko” has the meaning set forth in the preamble above.

“RHA Stroud” has the meaning set forth in the preamble above.

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

“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Seller” has the meaning set forth in the preamble above.

“Shares” has the meaning set forth in the recitals above.

“Staff Leasing Agreement” has the meaning set forth in Section 4.5 below.

“Straddle Tax Periods” has the meaning set forth in Section 4.7(b) below.

“Stroud Note” has the meaning set forth in Section 2.2(b) below.

“Stroud Shares” has the meaning set forth in the Recitals.

 

-3-

 

“Subsidiaries” 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
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
partnership or other similar ownership interest 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 owns 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 manager, management board,
managing director or general partner of such business entity (other than a corporation). The term
“Subsidiaries” shall include all Subsidiaries of such Subsidiaries.

“Tax” or “Taxes” means any federal, state, local, or foreign income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall
profits, environmental (including taxes under Code §59A), 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.

“Tax Return” means any return, declaration, report, claim for refund, or information
return or statement relating to Taxes, including any schedule or attachment thereto, and including
any amendment thereof.

ARTICLE 2

PURCHASE AND SALE OF SHARES

Section 2.1 Basic Transaction. On and at the Closing, subject to the terms and conditions of this Agreement, Buyer agrees to
purchase from Seller, and Seller agrees to sell to Buyer, all of the Shares, free and clear of all
Liens, other than the restrictions applicable to the Shares under the Securities Act.

Section 2.2 Purchase Price; Buyer’s Deliveries at Closing. Buyer agrees to deliver, or will cause the Companies to deliver, to Seller at Closing the
following:

(a) a promissory note in the amount of Five Million Two Hundred Fifty Thousand Dollars
($5,250,000) issued by RHA Anadarko to the Seller, the form of which is attached hereto as
Exhibit A (the “Anadarko Note”);

(b) a promissory note in the amount of Six Million Seven Hundred Fifty Thousand Dollars
($6,750,000) issued by RHA Stroud to the Seller, the form of which is attached hereto as
Exhibit B (the “Stroud Note”); and

 

-4-

 

(c) the originals of those certain Promissory Notes (the “Existing Notes”), issued by
First Physicians Realty Group, LLC, a Delaware limited liability company (“First Physicians
Realty Group”), in favor of RHA Anadarko and RHA Stroud, marked “paid in full.” Buyer agrees
that the cancellation and forgiveness of the Debt evidenced by the Existing Notes shall constitute
a portion of the consideration paid to Seller, through First Physicians Realty Group, Seller’s
Subsidiary, for the Shares;

(d) a letter agreement of release whereby all intercompany Debt and payables between and among
the Companies, the Seller and any of their Subsidiaries and/or Affiliates are canceled and
released, including, without limitation, the intercompany receivables owed by Seller to each of the
Companies, and the payables due from the Companies to First Physicians Capital Group, Inc. for
previous capital advances; and

(e) the various agreements, certificates, instruments, and documents referred to in Section
5.2 below.

Section 2.3 Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall
take place at the offices of Seller, commencing at 10:00 a.m. pacific standard time on the business
day following the satisfaction or waiver of all conditions of the Parties to consummate the
transactions contemplated hereby (other than conditions with respect to actions the respective
Parties will take at the Closing itself) or such other date as Buyer and Seller may mutually
determine (the “Closing Date”). All transactions contemplated herein to occur on and as of
the Closing Date shall be deemed to have occurred simultaneously and to be effective as of 11:59
p.m. on such date.

Section 2.4 Seller’s Deliveries at Closing. At the Closing, (a) Seller will deliver to Buyer the certificates representing all of the
Shares, with share powers executed in blank attached thereto; and (b) Seller will deliver to Buyer
the various agreements, certificates, instruments, and documents referred to in Section 5.1 below.

Section 2.5 No Representations and Warranties. Buyer acknowledges that the Shares are being sold “as-is”, without, except as expressly set
forth herein to the contrary, any warranties, express or implied, of any kind from Seller. Seller
expressly disclaims any representations and warranties with respect to the Shares or the Companies,
except as specifically set forth in this Agreement. Further, upon the Closing of the purchase of
the Shares, Buyer waives any claim it may have against Seller as to matters related to the Shares
or Seller. Upon Closing, Buyer shall assume the risk that adverse matters may not have been
revealed by Buyer’s investigations, and Buyer, upon Closing, shall be deemed to have waived,
relinquished and released Seller (and Seller’s officers, directors, shareholders, employees and
agents) from and against any and all claims, demands, causes of action (including causes of action
in tort), losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees)
of any and every kind or character, known or unknown, which Buyer might have asserted or alleged
against Seller (and Seller’s officers, directors, shareholders, employees and agents) at any time
by reason of or arising out of any latent or patent physical conditions, violations of any
applicable laws and any and all other acts, omissions, events, circumstances or matters regarding
the Shares and the Companies, except any such claim, demand, cause of action, loss, damage,
liability, cost or expense arising out of any breach by Seller of any representation or warranty
expressly set forth
in this Agreement or the documents executed at Closing pursuant to Article 5 hereof. The
provisions of this Section 2.5 shall survive Closing.

 

-5-

 

ARTICLE 3

PRE-CLOSING COVENANTS

The Parties agree as follows with respect to the period between the execution of this
Agreement and the Closing.

Section 3.1 General. Each of the Parties will use its best efforts to take and cause to be taken all action and to
do, or cause to be done, all things necessary, proper, or advisable in order to consummate and make
effective the transactions contemplated by this Agreement (including satisfaction, but not waiver,
of the closing conditions set forth in Article 7 below).

Section 3.2 Notices and Consents. Seller will cause each of the Companies to give any notices to third parties and to obtain
those third party consents and other items as may be required by Applicable Laws to be given or
obtained for the consummation of the transactions contemplated by this Agreement.

Section 3.3 Operation of Business. Until the Closing, Seller shall cause the Companies, unless Buyer shall otherwise consent in
writing or except as otherwise specifically contemplated by this Agreement:

(a) to operate only in the Ordinary Course of Business;

(b) not to amend or modify the articles of incorporation, bylaws, certificate of formation,
operating agreement or other organizational documents of either of the Companies;

(c) not to issue or sell any equity securities or any option, warrant or other right to
purchase or subscribe for equity securities or any obligation convertible into or exchangeable for
any of its equity securities or to make any changes (by split-up, combination, reorganization or
otherwise) in the outstanding Shares of either of the Companies;

(d) not to sell, lease, exchange or otherwise dispose of, or grant any Lien with respect to,
any of their material physical assets, except for dispositions of assets and inventories in the
Ordinary Course of Business;

(e) not to incur any material obligations for borrowed money or purchase money indebtedness,
or Debt (including, but not limited to, obligations relating to letters of credit) whether or not
evidenced by a note, bond, debenture or similar instrument;

(f) to collect their accounts receivable in the Ordinary Course of Business;

(g) not to pay accrued liabilities or accounts payable or prepay any expenses or other items,
each other than in the Ordinary Course of Business; and

 

-6-

 

(h) not to agree in writing or otherwise to take any action that would constitute a violation
of any of the foregoing.

Section 3.4 Access. Seller will provide, and will cause the Companies to provide, to the employees, attorneys,
accountants or other authorized representatives of Buyer reasonable access during normal business
hours to the business, employees, real estate, facilities and books and records of the Companies,
so as to afford Buyer full opportunity to make such review, examination and investigation of the
Companies as Buyer determines is reasonably necessary in connection with the consummation of the
transactions contemplated hereby and during such period shall furnish, as promptly as practical, to
Buyer and its representatives any information they may reasonably request; provided,
however, that the foregoing right of access shall not be exercisable in such a manner as to
interfere unreasonably with the normal operations and business of the Companies.

Section 3.5 Exclusivity. Seller will not, and Seller will not cause or permit either of the Companies or any of their
respective officers, directors, managers or advisors to, directly or indirectly, solicit, initiate,
encourage, negotiate with, engage in discussions with, accept any proposal or offers from, or
provide any information or access to any Person relating to the acquisition of all or substantially
all of the equity securities or assets of either of the Companies (including any acquisition
structured as a merger, consolidation, or share exchange). Seller will advise Buyer as promptly as
possible of any inquiries or proposals with respect to such an acquisition and will provide Buyer
with the details thereof and their response thereto.

ARTICLE 4

POST-CLOSING COVENANTS

 The Parties agree as follows with respect to the period following the Closing.

 Section 4.1 General. In case at any time after the Closing any further action is necessary or advisable to carry
out the purposes of this Agreement, each of the Parties will take such further action (including
the execution and delivery of such further instruments and documents) as any other Party reasonably
may request, all at the sole cost and expense of the requesting Party (unless the requesting Party
is entitled to indemnification therefor under Article 8 below). Seller acknowledges and agrees
that from and after the Closing, Buyer will be entitled to possession of all documents, books,
records (including Tax records), agreements, and financial data of any sort relating to either of
the Companies.

Section 4.2 Litigation Support. In the event, and for so long as, any Party actively is contesting or defending against any
action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand in connection
with any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence,
event, incident, action, failure to act, or transaction on or prior to the Closing Date involving
either of the Companies, each of the other Parties will cooperate with it and its counsel in the
contest or defense, make available their personnel, and provide such testimony and access to their
books and records as shall be necessary in connection with the contest or defense, all at the sole
cost and expense of the contesting or defending Party
(provided that the foregoing shall not apply to actions or claims between the Parties or if
the contesting or defending Party is entitled to indemnification therefor under Article 8 below).

 

-7-

 

Section 4.3 Confidentiality.
For a period of three (3) years after the Closing Date, Seller will treat and hold as
confidential all of the Confidential Information, refrain from using any of the Confidential
Information, and deliver promptly to Buyer or destroy, at the request and option of Buyer, all
tangible embodiments (and all copies) of the Confidential Information that are in Seller’s
possession. In the event that Seller is requested or required pursuant to written or oral question
or request for information or documents in any legal proceeding, interrogatory, subpoena, civil
investigation demand, or similar process to disclose any Confidential Information, Seller will
notify Buyer promptly of the request or requirement so that Buyer may seek an appropriate
protective order or waive compliance with the provisions of this Section 4.3. The foregoing
provisions shall: (a) not apply to any Confidential Information that is generally available to the
public immediately prior to the time of disclosure unless such Confidential Information is so
available due to the actions of Seller, and (b) not prohibit the use of the Confidential
Information by Seller in the performance of its duties and obligations under the Management
Services Agreement.

Section 4.4 Employment Agreement.
Charles Eldridge will enter into an Executive Employment Agreement to act as Chief Executive
Officer of the Companies in the form of Employment Agreement attached hereto as Exhibit C
(the “Employment Agreement”).

Section 4.5 Staff Leasing Agreement.
Buyer agrees to cause the Companies to enter into a Staff Leasing Agreement whereby Seller,
through a Subsidiary, will lease to Buyer and the Companies the employees and other staff necessary
to provide services at the critical access hospitals of the Companies, in the form of Staff Leasing
Agreement attached hereto as Exhibit D (the “Staff Leasing Agreement”).

Section 4.6 Management Services Agreement.
Buyer agrees to cause the Companies to enter into a Management Services Agreement whereby
Seller, through Subsidiaries, will provide operational and management services to the Companies, in
the form of Management Services Agreement attached hereto as Exhibit E (the “Management
Services Agreement”).

Section 4.7 Tax Matters.

(a) Tax Periods Ending on or Before the Closing Date. Seller shall prepare or cause
to be prepared all Tax Returns with respect to the Companies relating to taxable periods ending on
or before the Closing Date (“Pre-Closing Tax Periods”). All such Pre-Closing Tax Period
Tax Returns shall be prepared in a manner consistent with prior practice (to the extent permitted
by law) of the Companies. Seller shall file all Pre-Closing Tax Period Tax Returns on or before
the due date, as extended by any proper extension.

(b) Straddle Tax Periods. Buyer shall prepare or cause to be prepared and file or
cause to be filed all Tax Returns with respect to the Companies for taxable periods which begin
before the Closing Date and end after the Closing Date (“Straddle Tax Periods”). Buyer
shall provide such Straddle Tax Period Tax Returns to Seller thirty (30) days before the due date
thereof (in the case of income Tax Returns) and at least fifteen (15) days before the due date
thereof (in the case of all other Tax Returns), and to the extent attributable to the portion
of such Straddle Tax Period ending on the Closing Date, shall accept all reasonable comments of
Seller.

 

-8-

 

(c) Cooperation and Exchange of Information. Buyer, each of the Companies and Seller
will provide each other with such cooperation and information as any of them reasonably may request
of another in filing any Tax Return, amended Tax Return or claim for refund, determining a Tax
liability or a right to a refund of Taxes or participating in or conducting any audit or other
proceeding in respect of Taxes. Each such party shall make himself or its employees available on a
mutually convenient basis to provide explanations of any documents or information provided
hereunder. Each such party will make available and retain all Tax Returns, schedules and work
papers and all records or other documents relating to Tax matters of each of the Companies.

Section 4.8 Tax Allocations.
The Purchase Price (as adjusted for the liabilities of the Companies) shall be allocated in
accordance with the allocation methodology set forth in the allocation statement (the
“Allocation Statement”) attached to this Agreement as Exhibit F, which has been
prepared by the Parties in accordance with the Code. The Parties further agree to report this
transaction for income tax purposes in accordance with the Allocation Statement and each Party
agrees to act in accordance with such Allocation Statement in the course of any tax audit, tax
review or tax litigation concerning such Party and relating thereto.

Section 4.9 Interim Cost Reports.
Buyer and Seller agree to cooperate in good faith to prepare and file an interim cost report
for each of the critical access hospitals of the Companies as soon as reasonably practical after
the Closing Date. Seller shall prepare the first draft of such cost reports for review and
approval by Buyer.

Section 4.10 Approval as Federally Qualified Health Centers.
It is in best interest of the Parties for each of the critical access hospitals of the
Companies to be designated as Federally Qualified Health Centers. The parties will work in good
faith to secure such designation for both hospitals as soon as reasonably practical after the
Closing. The Parties shall share equally the costs and expenses associated with obtaining such
designations.

ARTICLE 5

CONDITIONS TO OBLIGATION TO CLOSE

Section 5.1 Conditions to Buyer’s Obligation.
The obligation of Buyer to consummate the transactions to be performed by it in connection
with the Closing is subject to satisfaction of the following conditions:

(a) Seller shall have performed and complied in all material respects with all agreements,
obligations and covenants required by this Agreement to be performed or complied with by Seller at
or prior to the Closing Date;

(b) There shall not be any injunction, judgment, order, decree, ruling, or charge in effect
preventing consummation of any of the transactions contemplated by this
Agreement or any action, suit or proceeding seeking to restrain, prevent, change or delay the
consummation of any of the transactions contemplated by this Agreement;

 

-9-

 

(c) The Parties shall have received the authorizations, consents, Permits, and approvals of
governments, governmental agencies and other Persons as may be required by Applicable Laws;

(d) The Companies shall have executed and delivered the Employment Agreement;

(e) Seller’s Subsidiary and the Companies shall have executed and delivered the Staff Leasing
Agreement;

(f) Seller’s Subsidiaries and the Companies shall have executed and delivered the Management
Services Agreement;

(g) The Seller shall have executed and delivered the letter agreement of release referenced in
Section 2.2(d);

(h) Seller and its appropriate officers, directors, employees and agents shall deliver a
written resignation from any board, manager or officer positions of the Companies effective as of
the Closing Date;

(i) Seller shall deliver the original corporate records and minute books of the Companies; and

(j) Seller shall deliver share certificates representing Buyer’s ownership of all of the
Shares, with share powers executed in blank attached thereto.

Buyer may waive any condition specified in this Section 5.1 if it executes a writing so stating at
or prior to the Closing.

Section 5.2 Conditions to Seller’s Obligation.
Seller’s obligation to consummate the transactions to be performed by them in connection with
the Closing are subject to satisfaction of the following conditions:

(a) Buyer shall have performed and complied in all material respects with all agreements,
obligations and covenants required by this Agreement to be performed or complied with by Buyer at
or prior to the Closing Date, including, without limitation, Buyer’s obligation to deliver the
Purchase Price pursuant to Section 2.2 of this Agreement;

(b) There shall not be any injunction, judgment, order, decree, ruling, or charge in effect
preventing consummation of any of the transactions contemplated by this Agreement or any action,
suit or proceeding seeking to restrain, prevent, change or delay the consummation of any of the
transactions contemplated by this Agreement;

 

-10-

 

(c) The Parties and each of the Companies shall have received all other material
authorizations, consents, and approvals of governments and governmental agencies as may be required
by Applicable Laws;

(d) The Companies shall have executed and delivered the New Notes;

(e) The Companies shall deliver to Seller the originals of the Existing Notes marked “paid in
full;”

(f) The Companies shall have executed and delivered the letter agreement of release referenced
in Section 2.2(d);

(g) The Companies shall have executed and delivered the Staff Leasing Agreement; and

(h) The Companies shall have executed and delivered the Management Services Agreement.

Seller may waive any condition specified in this Section 5.2 if it executes a writing so stating at
or prior to the Closing.

ARTICLE 6

TERMINATION

Section 6.1 Termination of Agreement.
This Agreement may be terminated as provided below:

(a) Buyer and Seller may terminate this Agreement by mutual written consent at any time prior
to the Closing;

(b) Buyer may terminate this Agreement by giving written notice to Seller at any time prior to
the Closing if the Closing shall not have occurred on or before July 31, 2011, by reason of the
failure of any condition precedent under Section 5.1 hereof (unless the failure results primarily
from Buyer itself breaching any representation, warranty, or covenant contained in this Agreement);
and

(c) Seller may terminate this Agreement by giving written notice to Buyer at any time prior to
the Closing if the Closing shall not have occurred on or before July 31, 2011, by reason of the
failure of any condition precedent under Section 5.2 hereof (unless the failure results primarily
from Seller breaching any representation, warranty, or covenant contained in this Agreement).

Section 6.2 Effect of Termination.
If any Party terminates this Agreement pursuant to Section 6.1 above, all rights and
obligations of the Parties under this Agreement shall terminate without any liability of any Party
to any other Party (except for any liability of any Party then in breach).

 

-11-

 

ARTICLE 7

MISCELLANEOUS

Section 7.1 Press Releases and Public Announcements.
No Party shall issue any press release or make any public announcement relating to the subject
matter of this Agreement prior to the Closing without the prior written approval of Buyer and
Seller; provided, however, that any Party may make any public disclosure it
believes in good faith is required by applicable law (in which case the disclosing Party will use
its reasonable efforts to advise the other Parties prior to making the disclosure).

Section 7.2 No Third-Party Beneficiaries.
This Agreement shall not confer any rights or remedies upon any Person other than the Parties
and their respective successors and permitted assigns.

Section 7.3 Entire Agreement.
This Agreement (including the documents referred to herein) constitutes the entire agreement
among the Parties and supersedes any prior understandings, agreements, or representations by or
among the Parties, written or oral, to the extent they relate in any way to the subject matter
hereof.

Section 7.4 Succession and Assignment.
This Agreement shall be binding upon and inure to the benefit of the Parties named herein and
their respective successors and permitted assigns. No Party may assign either this Agreement or
any of its rights, interests, or obligations hereunder without the prior written approval of Buyer
and Seller.

Section 7.5 Counterparts.
This Agreement may be executed in one (1) or more counterparts (including by means of
facsimile or pdf), each of which shall be deemed an original but all of which together will
constitute one and the same instrument.

Section 7.6 Headings.
The section headings contained in this Agreement are inserted for convenience only and shall
not affect in any way the meaning or interpretation of this Agreement.

 

-12-

 

Section 7.7 Notices.
All notices, requests, demands, claims, and other communications hereunder will be in writing.
Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given:
(a) when delivered personally to the recipient, (b) one (1) business day after being sent to the
recipient by reputable overnight courier service (charges prepaid), electronic mail, or facsimile
transmission; or (c) four (4) business days after being mailed to the recipient by certified or
registered mail, return receipt requested and postage prepaid, and addressed to the intended
recipient as set forth below:

If to Seller or, prior to Closing, the Companies:

First Physicians Capital Group, Inc.

9663 Santa Monica Boulevard #959

Beverly Hills, California 90210

Attention: David Hirschhorn

Telecopy: (818) 337-7284

Copy to:

Duane Morris LLP

30 South 17th Street

Philadelphia PA 19103-4196

Attention: C. Mitchell Goldman, Esq.

Telecopy: (215) 689-2407

If to Buyer:

Copy to:

Any Party may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Parties notice in the manner
herein set forth.

Section 7.8 Governing Law.
This Agreement shall be governed by and construed in accordance with the domestic laws of the
State of Delaware without giving effect to any choice or conflict of law provision or rule (whether
of the State of Delaware or any other jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of Delaware.

Section 7.9 Amendments and Waivers.
No amendment of any provision of this Agreement shall be valid unless the same shall be in
writing and signed by Buyer and Seller. No waiver by any Party of any provision of this Agreement
or any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional
or not, shall be valid unless the same shall be in writing and signed by the Party making such
waiver nor shall such waiver be deemed to extend to any prior or subsequent default,
misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights
arising by virtue of any prior or subsequent such occurrence.

 

-13-

 

Section 7.10 Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in
any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

Section 7.11 Expenses.
Each of Buyer and Seller will bear its own costs and expenses (including legal fees and
expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

Section 7.12 Construction.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In
the event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise
favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this
Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed
also to refer to all rules and regulations promulgated thereunder, unless the context requires
otherwise. The word “including” shall mean including without limitation.

Section 7.13 Incorporation of Exhibits and Disclosure Schedule.
The Exhibits and Disclosure Schedule identified in this Agreement are incorporated herein by
reference and made a part hereof.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

 

-14-

 

IN WITNESS WHEREOF, each of the Parties hereto has executed this Stock Purchase Agreement as
of the date first above written.

	 	 	 	 	 
	 	BUYER:

ONE CURA WELLNESS TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	RHA ANADARKO:

RHA ANADARKO, LLC,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	RHA STROUD:

RHA STROUD, LLC,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SELLER:

RURAL HOSPITAL ACQUISITION LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

-15-Exhibit 10.2

Exhibit 10.2

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES ACT, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR
QUALIFICATION OR AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT OR ANY SUCH STATE SECURITIES LAWS
THAT MAY BE APPLICABLE. THE SALE OR TRANSFER OF THIS NOTE IS SUBJECT TO CERTAIN RESTRICTIONS SET
FORTH IN THE NOTE.

SELLER NOTE

			
	 	 	 
	$5,250,000
	 	April 1, 2011

FOR VALUE RECEIVED, RHA Anadarko, LLC, an Oklahoma limited liability company (the
“Maker”), promises to pay to Rural Hospital Acquisition LLC, an Oklahoma limited liability
company (“Payee”) in lawful money of the United States of America, the principal sum of
Five Million Two Hundred Fifty Thousand Dollars ($5,250,000) (the “Principal Amount”),
together with interest on the unpaid principal balance, in each case in the amount and manner
provided below.

This Note has been executed and delivered pursuant to that certain Stock Purchase Agreement
dated as of April 1, 2011 (the “Purchase Agreement”), by and among One Cura Wellness Trust,
Inc., a California not-for-profit corporation (“Buyer”); Maker, RHA Stroud, LLC and Payee,
and is subject to the terms and conditions of the Purchase Agreement. Capitalized terms used in
this Agreement that are not otherwise defined have the meanings ascribed to them in the Purchase
Agreement.

1. Payments.

1.1 Principal. Subject to Section 5 below, the Principal Amount shall be due and
payable in full on March 31, 2021 (the “Due Date”).

1.2 Interest. Interest shall accrue on the unpaid Principal Amount from and including
the date hereof through and including the date on which any unpaid Principal Amount hereof is paid,
at a rate of ten percent (10%) per annum, compounding on an annual basis. Interest shall be
calculated on the basis of a 360-day year consisting of twelve 30-day months. However, if, and
for so long as, any Event of Default (as hereinafter defined) shall have occurred and be
continuing, the outstanding Principal Amount of this Note and, to the extent permitted by law,
overdue interest in respect of this Note, shall bear interest at a rate equal to fifteen percent
(15%) per annum, subject to any limitations on such interest of any applicable usury laws
(“Default Interest”).

 

 

 

1.3 Manner of Payment. Maker shall pay interest-only payments to Payee in an amount
to be calculated periodically by Payee on the 1st day of each calendar quarter during the term of
this Note (the first such payment being due on July 1, 2011), with a balloon payment of the entire
principal amount and any unpaid and accrued interest being due on the Due Date.
All payments of principal and interest on this Note shall be made by check or wire to the
Payee at 9663 Santa Monica Boulevard #959, Beverly Hills, California 90210 or at such other place
in the United States of America as Payee shall designate to the Maker in writing. Alternatively,
First Physicians Business Solutions, LLC, Payee’s Subsidiary, may withdraw funds from the Bank
Accounts of Maker pursuant to the Management Services Agreement between Maker and First Physicians
Business Solutions, LLC, dated as of even date herewith. If any payment of principal or interest
on this Note is due on a day which is not a business day, such payment shall be due on the next
succeeding business day, and such extension of time shall be taken into account in calculating the
amount of interest payable under this Note.

1.4 Prepayment. The Maker may, without premium or penalty, at any time and from time
to time, prepay all or any portion of the outstanding Principal Amount due under this Note,
provided that each such prepayment is accompanied by accrued interest on the amount of principal
prepaid calculated to the date of such prepayment.

2. Collateral. The entire Principal Amount, accrued interest and any other
obligations owing under this Note shall be secured by all of the tangible and intangible assets of
the Maker relating to its operation of that certain acute care hospital facility located at 1002 E.
Central, Anadarko, Oklahoma 73005 (the “Hospital”) as described in the Purchase Agreement,
including the license for such Hospital, pursuant to that certain Security Agreement (the
“Security Agreement”) in favor of Payee of even date herewith. In addition, upon an Event
of Default by Maker, Payee may elect to take ownership of all of the issued and outstanding equity
interests of the Maker pursuant to the pledge of such equity interests to Payee by Maker pursuant
to the Security Agreement.

3. Defaults.

3.1 Events of Default. The occurrence of any one or more of the following events
shall constitute an event of default hereunder (“Event of Default”):

(a) if the Maker shall fail to pay when due any payment of principal or interest on this Note;

(b) the occurrence of a default by Maker or its Affiliates, and the failure to cure such
default within the applicable cure period, if any, under any of the transaction documents described
in the Purchase Agreement, including, without limitation, the Management Services Agreement and the
Staff Leasing Agreement;

(c) if, pursuant to or within the meaning of the United States Bankruptcy Code or any other
federal or state law relating to insolvency or relief of debtors (a “Bankruptcy Law”),
Maker shall (i) commence a voluntary case or proceeding; (ii) consent to the entry of an order for
relief against it in an involuntary case; (iii) consent to the appointment of a trustee, receiver,
assignee, liquidator or similar official; (iv) make an assignment for the benefit of its creditors;
or (v) admit in writing its inability to pay its debts as they become due;

(d) if a court of competent jurisdiction enters an order or decree under any Bankruptcy Law
that (i) is for relief against Maker in an involuntary case, (ii) appoints a trustee, receiver,
assignee, liquidator or similar official for Maker or substantially all of Maker’s
properties, or (iii) orders the dissolution of Maker, and in each case the order or decree is
not dismissed within 120 days;

 

-2-

 

(e) the revocation of any license which would have a material adverse effect on the operation
of the Hospital, or the certification of any portion of the Hospital for provider status under
Medicare or Medicaid, if applicable; (B) the closure of any portion of the Hospital except in
connection with a casualty or condemnation; or (C) if the Hospital or the Maker fails to maintain
its status as a properly licensed healthcare service provider and/or facility; provided, that if
the Maker intends to convert the status of the Hospital to a federally qualified health center, it
must obtain the prior written consent of the Payee to any such change of status;

(f) if the Maker is barred or excluded as a provider in Medicare or Medicaid or any other
government programs;

(g) if the Maker, or any of their officers, directors or key employees (i) are convicted of a
felony or other crime involving misappropriation, dishonesty, unethical business conduct or
disloyalty, or (ii) engage in fraud, breach of fiduciary duty, gross negligence or willful
misconduct.

3.2 Remedies. Upon the occurrence of an Event of Default, the unpaid Principal Amount
of this Note shall (i) become due and payable forthwith, without presentment, demand, notice,
protest or other requirement of any kind, all of which are expressly waived by Maker and (ii)
accrue Default Interest in the manner provided in Section 1.2. Upon the occurrence and during the
continuance of any Event of Default, Payee may exercise any and all rights and remedies available
to it at law or in equity, including, without limitation, the right to collect from Maker all sums
due under this Note or to exercise all of the rights, powers and remedies granted to Payee in the
Security Agreement.

4. No Additional Indebtedness. From and after the date hereof, until all amounts due
under this Note have been paid in full, Maker shall not incur any indebtedness other than customary
trade payables paid within ninety (90) days after they are incurred, unless approved by the Payee
in writing in advance.

5. Change in Control. Simultaneous with the occurrence of a “Change in Control,” the
Payee may, at its option, declare the entire unpaid Principal Amount, together with all accrued
interest thereon, immediately due and payable. For purposes of this Note, “Change in Control”
means the occurrence of any of the following events: (a) a merger or consolidation of the Maker
with or into another entity; (B) the sale, license or transfer of all or substantially all of the
properties and assets of the Maker or its subsidiaries; (C) any acquisition by any person of
beneficial ownership of a majority of the equity of the Maker (whether or not newly-issued shares
or equity interests) in a single transaction or a series of related transactions; (D) the
redemption or repurchase of equity interests representing a majority of the voting power of the
outstanding shares of equity of the Maker; or (E) any other change of control of more than fifty
percent (50%) of the outstanding voting power of the Maker.

 

-3-

 

6. Miscellaneous.

6.1 Amendments and Waiver. Neither this Note nor any provisions hereof may be
amended, except pursuant to a written instrument executed by the Maker and Payee. No waiver by
Payee or Maker of any right or remedy under this Note shall be effective unless in a writing signed
by Payee or Maker, as the case may be. Neither the failure nor any delay in exercising any right,
power or privilege under this Note will operate as a waiver of such right, power or privilege and
no single or partial exercise of any such right, power or privilege by Payee or Maker will preclude
any other or further exercise of such right, power or privilege or the exercise of any other right,
power or privilege.

6.2 Notices. Any notice required or permitted to be given hereunder shall be given in
accordance with Section 7.7 of the Purchase Agreement.

6.3 Severability. This Note and the Purchase Agreement constitute the entire
agreement among the parties related to the subject matter hereof and supersede any prior
understandings or agreements, by or among the parties to the extent they relate to the subject
matter hereof. If any provision of this Note is held invalid or unenforceable by any court of
competent jurisdiction, the other provisions of this Note will remain in full force and effect.
Any provision of this Note held invalid or unenforceable only in part or degree will remain in full
force and effect to the extent not held invalid or unenforceable.

6.4 Governing Law. Section 7.8 of the Purchase Agreement shall apply to the
Note.

6.5 Parties and Interest. This Note shall bind the Maker and Payee and their
permitted successors and assigns. Neither this Note, nor any of the rights or obligations
hereunder, may be assigned or transferred by Payee or the Maker without the express prior written
consent of the other.

6.6 No Third-Party Beneficiaries. This Note shall not confer any rights or remedies
upon any Person other than the Maker, Payee, and their respective successors and permitted assigns.

6.7 Construction. The Maker and Payee have participated jointly in the negotiation
and drafting of this Note. In the event an ambiguity or question of intent or interpretation
arises, this Note shall be construed as if drafted jointly by the parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement. The word “including” shall mean including without limitation.

 

-4-

 

IN WITNESS WHEREOF, the Maker has executed and delivered this Note as of the date first stated
above.

	 	 	 	 	 
	 	MAKER:

RHA ANADARKO, LLC

 	 
	 	By:  	 	 
	 	Its:	 	   

	 	 	 	 
	Accepted:

PAYEE:

RURAL HOSPITAL ACQUISITION LLC

 	 
	By:  	 	 
	Its:	  	 	 

 

-5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]