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Title: |
Acquisition Agreement |
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Entities: |
DVI, Inc.; US Diagnostic, Inc.; Drinker Biddle & Reath LLP; Greenberg Traurig |
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Date: |
2002 |
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Size: |
Preview shows 70KB of 326KB total |
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Price: |
$99 |
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ID: |
#137059 |
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Start of Preview |
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ACQUISITION AGREEMENT
by and between
US DIAGNOSTIC INC.,
as Seller,
USD PAYMENT CORPORATION, INC., as an affiliate of Seller,
MEDICAL IMAGING CENTERS OF AMERICA, INC.,
MEDITEK INDUSTRIES, INC.,
MICA PACIFIC, INC.,
MICA CAL I, INC.,
MICA FLO I, INC.,
as Selling Subsidiaries,
and
DVI FINANCIAL SERVICES INC.,
as Purchaser
Dated as of September 12, 2002
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ARTICLE I |
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Section 1.1 |
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Section 1.2 |
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Section 1.3 |
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Section 1.4 |
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Section 1.5 |
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Section 1.6 |
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Section 1.7 |
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Section 1.8 |
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Section 1.9 |
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ARTICLE II |
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Section 2.1 |
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Section 2.2 |
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ARTICLE III |
REPRESENTATIONS AND WARRANTIES OF THE SELLER AND SELLING SUBSIDIARIES |
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Section 3.1 |
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Section 3.2 |
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Section 3.3 |
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Section 3.4 |
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Section 3.5 |
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Section 3.6 |
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Section 3.7 |
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Section 3.9 |
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Section 3.10 |
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Section 3.11 |
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Section 3.12 |
Sufficiency and Condition of Assets; Assets of USD Payment Corp |
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Section 3.13 |
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Section 3.14 |
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Section 3.15 |
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Section 3.16 |
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Section 3.17 |
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Section 3.18 |
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Section 3.19 |
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Section 3.20 |
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Section 3.21 |
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Section 3.22 |
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Section 3.23 |
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Section 3.24 |
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Section 3.25 |
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Section 3.26 |
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Section 3.27 |
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Section 3.28 |
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Section 3.29 |
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Section 3.30 |
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Section 3.31 |
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ARTICLE IV |
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Section 4.1 |
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Section 4.2 |
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Section 4.3 |
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Section 4.4 |
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Section 4.5 |
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Section 4.6 |
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ARTICLE V |
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Section 5.1 |
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Section 5.2 |
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Section 5.3 |
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Section 5.4 |
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Section 5.5 |
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Section 5.6 |
Approvals and Consents; Notification; Material Adverse Change |
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Section 5.7 |
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Section 5.8 |
Disclosure and Status of Material Contracts of Acquired Centers and Acquired Subsidiaries |
50 | |
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Section 5.9 |
50 | ||
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Section 5.10 |
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Section 5.11 |
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Section 5.12 |
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Section 5.13 |
Transition Services Agreement and Collection Services Agreement |
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Section 5.14 |
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ARTICLE VI |
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Section 6.1 |
Conditions Precedent to Obligations of the Seller, Selling Subsidiaries and the Purchaser |
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Section 6.2 |
Conditions Precedent to Obligations of the Seller and the Selling Subsidiaries |
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Section 6.3 |
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ARTICLE VII |
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Section 7.1 |
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Section 7.2 |
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Section 7.3 |
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Section 7.4 |
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Section 7.5 |
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ARTICLE VIII |
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Section 8.1 |
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Section 8.2 |
Claims Against Escrow Account other than for Indemnification |
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Section 8.3 |
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Section 8.4 |
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Section 8.5 |
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Section 8.6 |
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Section 8.7 |
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Section 8.8 |
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Section 8.9 |
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Section 8.10 |
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Section 8.11 |
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Section 8.12 |
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Section 8.13 |
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Section 8.14 |
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Section 8.15 |
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Section 8.16 |
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ARTICLE IX |
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TABLE OF SCHEDULES
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Schedule A |
Acquired Subsidiaries |
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Schedule B |
Acquired Centers |
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Schedule C |
Retained Centers |
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Schedule 1.2(b) |
Excluded Supply Contracts |
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Schedule 1.2(c) |
Excluded Maintenance Contracts |
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Schedule 1.2(e) |
Excluded Employment Related Contracts |
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Schedule 1.2(h) |
Real Property on which Retained Centers are Located |
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Schedule 3.2 |
Capitalization of Certain Subsidiaries |
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Schedule 3.4 |
Consents and Approvals |
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Schedule 3.6 |
Compliance with Applicable Laws |
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Schedule 3.7 |
Permits and Third-Party Licenses |
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Schedule 3.8(a) |
Compliance with Medicare and Medicaid |
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Schedule 3.8(b) |
Reimbursement for Medicare and Medicaid |
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Schedule 3.8(d) |
Certifications to Participate in Material Payor Programs |
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Schedule 3.8(e) |
Material Payor Participation |
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Schedule 3.8(f) |
Reimbursement for Material Payor Programs |
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Schedule 3.8(g) |
Accreditation |
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Schedule 3.8(h) |
Settlement or Corporate Integrity Agreements |
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Schedule 3.8(i) |
Medical Records |
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Schedule 3.8(j) |
Operations |
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Schedule 3.9 |
Regulatory Compliance |
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Schedule 3.10(a)(1) |
Assumed Contracts |
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Schedule 3.10(a)(2) |
All Other Contracts |
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Schedule 3.10(b) |
Cure Amount |
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Schedule 3.10(d) |
Current Government Contracts |
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Schedule 3.11(a) |
Financial Statements |
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Schedule 3.11(b) |
Undisclosed Liabilities |
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Schedule 3.12(a) |
Sufficiency and Condition of Assets |
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Schedule 3.12(b) |
Security Interests |
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Schedule 3.13(a) |
Supplies |
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Schedule 3.13(b) |
Accounts Receivable |
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Schedule 3.14(a) |
Material Adverse Changes |
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Schedule 3.14(a)(iv) |
MAC Contracts |
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Schedule 3.14(a)(v) |
MAC Specific Contracts |
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Schedule 3.14(b) |
Conduct of Business; Absence of Certain Other Changes and Events |
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Schedule 3.15 |
Title to Property |
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Schedule 3.16 |
Litigation |
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Schedule 3.17(a) |
Real Property |
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Schedule 3.17(b) |
Compliance with Zoning Laws |
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Schedule 3.17(c) |
Utilities |
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Schedule 3.17(d) |
Improvements |
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Schedule 3.18(a) |
Intellectual Property |
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Schedule 3.18(b) |
IP License Agreements |
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Schedule 3.18(c) |
Use and Infringement of Intellectual Property |
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Schedule 3.19(a) |
Employment and Labor Matters |
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Schedule 3.19(b) |
WARN Act |
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Schedule 3.19(c) |
Selected and Certain Other Employees |
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Schedule 3.19(d) |
Agreements Concerning Employees |
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Schedule 3.20(a) |
Employee Benefit Plans |
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Schedule 3.20(b) |
Employee Benefit Plans Compliance with Laws |
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Schedule 3.20(c) |
Seller Plans Compliance with Laws |
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Schedule 3.20(e) |
Liabilities to Employment Regulatory Bodies |
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Schedule 3.20(f) |
Filings in Respect of Seller Plans |
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Schedule 3.20(g) |
Severance Pay; Accelerated Vesting of Benefits |
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Schedule 3.20(h) |
COBRA |
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Schedule 3.20(i) |
Retiree Benefits |
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Schedule 3.21(a) |
Tax Returns |
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Schedule 3.21(b) |
Audits |
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Schedule 3.21(e) |
Tax Liens |
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Schedule 3.22 |
Environmental Compliance |
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Schedule 3.23 |
Substantial Payors and Suppliers |
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Schedule 3.25 |
Outstanding Guarantees or Pledges |
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Schedule 3.26 |
Transactions with Related Persons |
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Schedule 3.28 |
Insurance |
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Schedule 3.29 |
Tangible Personal Property |
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Schedule 5.4 |
Conduct of Business by Seller Entities Pending Closing |
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Schedule 5.8 |
Material Acquired Center/Subsidiary Contracts |
TABLE OF EXHIBITS
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Exhibit A |
Form of Bill of Sale |
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Exhibit B |
Form of Assignment and Assumption Agreement |
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Exhibit C |
Form of Bid Procedures Order |
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Exhibit D |
Form of Sale Approval Order |
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Exhibit E |
Bidding Procedures |
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Exhibit F |
Form of Escrow Agreement |
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Exhibit G |
Budget |
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Exhibit H |
Form of License Agreement |
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ACQUISITION AGREEMENT
THIS ACQUISITION AGREEMENT, dated as of September 12, 2002 (the Agreement), is made by and between (i) US Diagnostic Inc., a Delaware corporation (the Seller), (ii) USD Payment Corporation, Inc., a Florida corporation (USD Payment Corp.), (iii) Medical Imaging Centers of America, Inc., a California corporation, Meditek Industries, Inc., a Florida corporation, MICA Pacific, Inc., a California corporation, MICA Cal I, Inc., a California corporation, and MICA Flo I, Inc., a California corporation (collectively, the Selling Subsidiaries), and (iv) DVI Financial Services Inc., a Delaware corporation, or its designated wholly-owned subsidiary or Affiliate (the Purchaser). Capitalized terms used herein and not otherwise defined shall have the meanings set forth in Article IX.
WHEREAS, the Seller is engaged (either directly or indirectly through one or more wholly-owned direct or indirect subsidiaries) in the business of operating 21 outpatient diagnostic imaging and related facilities (the Business);
WHEREAS, the Seller, along with certain of the Seller Debtor Entities, intends to file (the Bankruptcy Filing) voluntary petitions (the Petitions) for relief (the Bankruptcy Cases) under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. 101, et seq., as amended (the Bankruptcy Code) in the United States Bankruptcy Court for the Southern District of Florida (the Bankruptcy Court);
WHEREAS, the Seller and the Selling Subsidiaries intend to continue in the management and possession of their assets and businesses as debtors-in-possession in the Bankruptcy Cases pursuant to Sections 1107 and 1108 of the Bankruptcy Code and subject to the terms and conditions of this Agreement;
WHEREAS, the Business is conducted in the United States by the Seller and through various direct and indirect subsidiaries of the Seller;
WHEREAS, the Purchaser proposes to acquire all assets and properties of the Seller and its various subsidiaries related to the operations of the Business at the Acquired Centers (as defined below);
WHEREAS, in furtherance of its purposes, the Purchaser desires to purchase and acquire, and the Seller desires to sell, transfer, convey and assign or cause to be sold, transferred, conveyed and assigned, to the Purchaser (a) all of the equity interests and partnership interests (the Interests) in the direct and indirect subsidiaries of the Seller set forth on Schedule A (each an Acquired Subsidiary and collectively, the Acquired Subsidiaries, for the purpose of acquiring the 22 outpatient diagnostic imaging centers set forth on and located at the addresses listed on Schedule B (the Acquired Centers, which shall be deemed to include any imaging center location governed by the provisions of any contract between any Seller Entity and any member of the IDE Group entered into after December 21, 2001), and (b) all of the assets necessary, used or useable for the Purchasers operation of the Acquired Centers that may be held by any Seller Entity wherever located, including without limitation, those assets specifically
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designated in Sections 1.1(b)(i) through 1.1(d), all in the manner and subject to the terms and conditions set forth herein and in accordance with Sections 105, 363 and 365 of the Bankruptcy Code (together with the sale and purchase of the Acquired Assets and the assignment and assumption of the Assumed Liabilities, the Acquisition).
NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, and agreements set forth herein, the parties hereto agree as follows:
ARTICLE I
Section 1.1 Acquired Assets. On the terms and subject to the conditions set forth in this Agreement and subject to approval of the Bankruptcy Court pursuant to Sections 105, 363 and 365 of Bankruptcy Code, at the Closing, the Seller shall, and shall cause, as applicable, each of the Selling Subsidiaries, the Acquired Subsidiaries, and each Other Subsidiary, to sell, assign, transfer, convey, and deliver, or cause to be sold, assigned, transferred, conveyed and delivered, to the Purchaser, free and clear of all liens, claims and encumbrances of any nature except for Permitted Exceptions, and the Purchaser shall purchase and accept from the appropriate Seller Entity the following assets (the Acquired Assets), but excluding the Excluded Assets:
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