Document:

February 1, 2006 

 

Morgan Joseph & Co. Inc. 

600 Fifth Avenue, 19th Floor 

New York, New York 10020 

 

	
            Re:   
 	
            Echo Healthcare Acquisition Corp.  
 

 

Ladies and Gentlemen: 

 

Reference is made to the Registration Statement (the “Registration Statement”) and any amendments thereto on Form S-1, (File No. 333-126650), filed with the Securities and Exchange Commission pursuant to which Echo Healthcare Acquisition Corp. (“ Company ”) has registered its initial public offering (“IPO”) of units (“ Units ”) consisting of one share of common stock, par value $.0001 per share (“Common Stock”) and one warrant (“Warrant”), each to purchase one share of Common Stock.  Each of the shares of Common Stock and Warrants may trade separately on or after the 90th day after the date of the effective date of the Registration Statement unless Morgan Joseph & Co., Inc. (“Morgan Joseph”), as the representative of the several underwriters, determines that an earlier date is acceptable.

 

The undersigned hereby agrees with Morgan Joseph & Co. Inc. that on the date hereof he will enter into an agreement or plan in accordance with the guidelines specified by Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with an independent broker-dealer (the “Broker”) registered under Section 15 of the Exchange Act which is neither affiliated with the Company, Morgan Joseph nor part of the underwriting or selling group, pursuant to which the Broker will purchase up to the dollar amount of Warrants indicated next to each of the undersigned’s names below in the public marketplace for each of the undersigned’s respective accounts  during the Applicable Period provided that:
(i) the purchase price per Warrant shall not exceed $1.20, and (ii) the aggregate purchase price for the Warrants purchased by each of the undersigned shall not exceed the amount set forth adjacent to the undersigned’s signature on this Agreement. The “Applicable Period ” is the 40 trading days beginning on the later of (i) 60 days after the end of the “restricted period” in accordance with Regulation M as promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, and (ii) the day on which the Warrants begin separate trading.  The undersigned shall instruct the Broker to fill such order in such amounts and at such times as the Broker may determine, in its sole discretion, during the Applicable Period. 

 

The “restricted period” as defined in Regulation M will end upon the effective date of the Registration Statement. Under Regulation M, the restricted period could end at a later date if the underwriter were to exercise the over-allotment option. In such event, the restricted period would not end until the underwriter distributed such securities or placed them in its investment account. However, the underwriters have agreed that they may only exercise the over-allotment option to cover the net syndicate short position, if any, resulting from the initial distribution and therefore the restricted period will end upon the closing of this offering.

 

 

As of the date hereof, the undersigned represents and warrants that he is not aware of any material nonpublic information concerning the Company or any securities of the Company and is entering into this agreement in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1. The undersigned agrees that while this agreement is in effect, the undersigned shall comply with the prohibition set forth in Rule 10b5-1(c)(1)(i)(C) against entering into or altering a corresponding or hedging transaction or position with respect to the Company's securities. The undersigned further agrees that he shall not, directly or indirectly, communicate any material nonpublic information relating to the Company or the Company's securities to any employee of Morgan Joseph or the Broker. The undersigned has not, and shall not attempt to exercise, any influence over how, when or whether
to effect purchases of Warrants pursuant to this agreement or the plan or agreement with the Broker.

The undersigned shall instruct the Broker to make, keep, and produce promptly upon request a daily time-sequenced schedule of all Warrant purchases made pursuant to this agreement, on a transaction-by-transaction basis, including (i) size, time of execution, price of purchase; and (ii) the exchange, quotation system, or other facility through which the Warrant purchase occurred.

The undersigned may notify Broker that all or part of the Warrant purchase contemplated hereby will be made by an affiliate of the undersigned (or another person or entity introduced to Broker by the undersigned (such affiliate or other person or entity, a “Designee”)) who (or which) has an account at Broker and, in such event, Broker will make such purchase on behalf of said Designee; provided, however, that the undersigned hereby agrees to make payment of the purchase price of such purchase in the event that the Designee fails to make such payment. 

The undersigned agrees: (i) not to sell or transfer any of the Warrants purchased by him pursuant to this letter agreement until after the consummation a Business Combination (as defined in the Certificate of Incorporation of the Company); and (ii) the certificates for such Warrants shall contain a legend indicating such restriction on transferability.  Additionally, the Warrants will be non-redeemable so long as the Warrants are in the possession of the undersigned, or the undersigned’s permitted transferees.

 

 

	 Very
        truly yours, 
	  
	  
	  

	  
	            
	 Warrant
        Purchase 

	 ______________________
	  
	 Obligation
        

	 Joel
        Kanter
	  
	  
	  

	 Total
        
	  
	 $
        
	 300,000<P ALIGN="RIGHT"><DIV ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><B>Exhibit 10.24</B></FONT></DIV></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROMISSORY NOTE </FONT></H1>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Top>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$25,000.00</FONT></TD>
        <TD WIDTH=50% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>January 4, 2006<BR>Vienna, Virginia
</FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Echo Healthcare Acquisition Corp.
(the &#147;Maker&#148;) promises to pay to the order of Chicago Investments, Inc. (the
&#147;Payee&#148;) the principal sum of Twenty Five Thousand Dollars and No Cents
($25,000.00) in lawful money of the United States of America, on the terms and conditions
described below.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<B>Principal.&nbsp;</B>The
principal balance of this Note shall be repayable on the earlier of (i)           January
4, 2007 or (ii) the date on which Maker consummates an initial public           offering
of its securities.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<B>Interest.&nbsp;</B> No
interest shall accrue on the unpaid principal balance of this Note.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<B>Application
of Payments.</B> All payments shall be applied first to payment in full of any costs
incurred in the collection of any sum due under this Note, including (without limitation)
reasonable attorney&#146;s fees, then to the payment in full of any late charges and
finally to the reduction of the unpaid principal balance of this Note. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<B>Events of Default.</B>
&nbsp; The
following shall constitute Events of Default: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Failure
to Make Required Payments.</U> Failure by Maker to pay the           principal of this
Note within five (5) business days following the date when           due.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<U>Voluntary
Bankruptcy, Etc.</U> The commencement by Maker of a voluntary           case under the
Federal Bankruptcy Code, as now constituted or hereafter amended,           or any other
applicable federal or state bankruptcy, insolvency, reorganization,
          rehabilitation or other similar law, or the consent by it to the appointment of
          or taking possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or for any substantial part
of           its property, or the making by it of any assignment for the benefit of
          creditors, or the failure of Maker generally to pay its debts as such debts
          become due, or the taking of corporate action by Maker in furtherance of any of
          the foregoing.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<U>Involuntary
Bankruptcy, Etc.</U> The entry of a decree or order for           relief by a court
having jurisdiction in the premises in respect of Maker in an           involuntary case
under the Federal Bankruptcy Code, as now or hereafter           constituted, or any
other applicable federal or state bankruptcy, insolvency or           other similar law,
or appointing a receiver, liquidator, assignee, custodian,           trustee,
sequestrator (or similar official) of Maker or for any substantial part           of its
property, or ordering the winding-up or liquidation of its affairs, and           the
continuance of any such decree or order unstayed and in effect for a period           of
sixty (60) consecutive days.  </FONT></P>

<P ALIGN="CENTER"><DIV ALIGN="CENTER"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2" COLOR="#000000">&nbsp;<BR></FONT></DIV></P>

<HR NOSHADE SIZE="5">
<PAGE>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<A NAME=A005></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<B>Remedies.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Upon
the occurrence of an Event of Default specified in Section 4(a),           Payee may, by
written notice to Maker, declare this Note to be due and payable,           whereupon the
principal amount of this Note, and all other amounts payable           thereunder, shall
become immediately due and payable without presentment,           demand, protest or
other notice of any kind, all of which are hereby expressly           waived, anything
contained herein or in the documents evidencing the same to the           contrary
notwithstanding.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Upon
the occurrence of an Event of Default specified in Sections 4(b) and           4(c), the
unpaid principal balance of, and all other sums payable with regard           to, this
Note shall automatically and immediately become due and payable, in all           cases
without any action on the part of Payee.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<B>Waivers.</B>
&nbsp;          Maker
and all endorsers and guarantors of, and sureties for, this Note waive
          presentment for payment, demand, notice of dishonor, protest, and notice of
          protest with regard to the Note, all errors, defects and imperfections in any
          proceedings instituted by Payee under the terms of this Note, and all benefits
          that might accrue to Maker by virtue of any present or future laws exempting
any           property, real or personal, or any part of the proceeds arising from any
sale of           any such property, from attachment, levy or sale under execution, or
providing           for any stay of execution, exemption from civil process, or extension
of time           for payment; and Maker agrees that any real estate that may be levied
upon           pursuant to a judgment obtained by virtue hereof, on any writ of execution
          issued hereon, may be sold upon any such writ in whole or in part in any order
          desired by Payee.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<B>Unconditional
Liability.</B> Maker hereby waives all notices in connection with the delivery,
acceptance, performance, default, or enforcement of the payment of this Note, and agrees
that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time,
renewal, waiver or modification granted or consented to by Payee, and consents to any and
all extensions of time, renewals, waivers, or modifications that may be granted by Payee
with respect to the payment or other provisions of this Note, and agree that additional
makers, endorsers, guarantors, or sureties may become parties hereto without notice to
them or affecting their liability hereunder.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<B>Notices.</B>&nbsp;
          Any notice called for hereunder shall be deemed properly given if (i) sent by
          certified mail, return receipt requested, (ii) personally delivered, (iii)
          dispatched by any form of private or governmental express mail or delivery
          service providing receipted delivery or (iv) sent by facsimile or (v) to the
          following addresses or to such other address as either party may designate by
          notice in accordance with this Section: </FONT></P>

<P ALIGN="CENTER"><DIV ALIGN="CENTER"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2" COLOR="#000000">2<BR></FONT></DIV></P>

<HR NOSHADE SIZE="5">
<PAGE>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to Maker:  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Echo Healthcare Acquisition Corp.<BR>
8000 Towers Crescent Drive<BR>
Suite 1300<BR>
Vienna, Virginia 22182<BR>
Attention: Joel Kanter, President<BR>
Facsimile: (515) 244-2346</FONT></P>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>with a copy to:  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Powell Goldstein LLP<BR>
One Atlantic Center, Fourteenth Floor<BR>
1201 W. Peachtree Street, NW<BR>
Atlanta, Georgia 30309-3488<BR>
Attention: Richard H. Miller, Esq.<BR>
Facsimile: (404) 572-6999 </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<A NAME=A010></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If to Payee:  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Chicago Investments, Inc.<BR>
8000 Towers Crescent Drive<BR>
Suite 1300<BR>
Vienna, Virginia 22182<BR>
Attention: Joel Kanter<BR>
Facsimile: (515) 244-2346 </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notice shall be deemed given on the
earlier of (i) actual receipt by the receiving party, (ii) the date shown on a facsimile
transmission confirmation, (iii) the date reflected on a signed delivery receipt, or (iv)
two (2) Business Days following tender of delivery or dispatch by express mail or
delivery service.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;<B>Construction.</B>&nbsp;THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE DOMESTIC,           INTERNAL
LAW, BUT NOT THE LAW OF CONFLICT OF LAWS, OF THE STATE OF DELAWARE.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;<B>Severability.</B>&nbsp;Any
provision contained in this Note which is prohibited or unenforceable in any
          jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
          such prohibition or unenforceability without invalidating the remaining
          provisions hereof, and any such prohibition or unenforceability in any
          jurisdiction shall not invalidate or render unenforceable such provision in any
          other jurisdiction.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>[Remainder of Page
Intentionally Left Blank]</B></FONT></P>

<P ALIGN="CENTER"><DIV ALIGN="CENTER"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2" COLOR="#000000">3<BR></FONT></DIV></P>

<HR NOSHADE SIZE="5">
<PAGE>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be
duly executed by its President the day and year first above written. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Level 5" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>ECHO HEALTHCARE ACQUISITION CORP.</B><BR>&nbsp;<BR></FONT></TD>
</TR>

<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: January 4, 2005</FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
By: /s/ Joel Kanter<BR>___________________________________<BR>&nbsp;<BR>Name: Joel Kanter<BR>Title: President </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>973455</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]