Exhibit 10.1
SUBSCRIPTION
AGREEMENT
This Amended and
Restated Subscription Agreement (this “ Agreement
”) is dated as of September 10, 2008, among MBF
Healthcare Acquisition Corp. , a Delaware corporation (the
“ Company ”), and MBF Healthcare Partners, L.P.
(“ Purchaser ”).
WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act (as defined below) and
Rule 506 promulgated thereunder, the Company desires to issue
and sell to the Purchaser, and the Purchaser desires to purchase
from the Company certain securities of the Company, as more fully
described in this Agreement.
NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the
Purchasers agree as follows:
ARTICLE I
DEFINITIONS
1.1
Definitions . In addition to the terms defined elsewhere in
this Agreement, for all purposes of this Agreement, the following
terms shall have the meanings indicated in this
Section 1.1:
“ Action
” means any action, suit, inquiry, notice of violation,
proceeding (including any partial proceeding such as a deposition)
or investigation pending or threatened in writing against or
affecting the Company or any of its respective properties before or
by any court, arbitrator, governmental or administrative agency,
regulatory authority (federal, state, county, local or foreign),
stock market, stock exchange or trading facility.
“ Affiliate
” means any Person that, directly or indirectly through one
or more intermediaries, controls or is controlled by or is under
common control with a Person, as such terms are used in and
construed under Rule 144.
“ Aggregate
Investment Amount ” means an amount equal to
(i) $20,400,000 plus (ii) Remainder Amount
plus (iii) one-half of the Initial Shortfall Amount (if
any) plus (iv) the Secondary Shortfall Amount (if any)
multiplied by five-twelfths (5/12).
“ Business
Day ” means any day except Saturday, Sunday and any day
which shall be a federal legal holiday or a day on which banking
institutions in the State of New York are authorized or required by
law or other governmental action to close.
“ CHS
” has the meaning ascribed to such term in the definition of
the CHS Transaction.
“ CHS
Transaction ” means the purchase by the Company of all of
the issued and outstanding capital stock of Critical Homecare
Solutions Holdings, Inc., a Delaware corporation (“
CHS ”), pursuant to a Stock Purchase Agreement by and
among the Company, CHS, Kohlberg Investors V, L.P., a Delaware
limited partnership, as Sellers’ representative, and the
Purchasers (as amended and modified from time to time, the “
Stock Purchase Agreement ”).
“ Closing
” means the closing of the purchase and sale of the Shares
pursuant to Section 2.1.
“ Closing
Date ” means the date of the Closing, which date shall be
the same day upon which the closing of the CHS Transaction occurs,
following the satisfaction of each of the conditions applicable to
the Closing as set forth in Section 2.2 hereof.
“
Commission ” means the Securities and Exchange
Commission.
“ Common
Stock ” means the common stock of the Company,
$0.0001 par value per share.
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“ Disclosure
Package ” means (i) the Prospectus and
(ii) each “free writing prospectus” as defined in
Rule 405 promulgated under the Securities Act.
“ Exchange
Act ” means the Securities Exchange Act of 1934, as
amended.
“ Filing
Date ” means, with respect to the Registration Statement
required to be filed hereunder (i) the 30th calendar day
following the Closing Date with respect to the Shares and
(ii) the 30th calendar day following the issuance of any
Share Amount Shares.
“ Initial
Shortfall Amount ” means, if the funds necessary to
consummate the transactions contemplated by the Stock Purchase
Agreement as mutually determined by the Sellers’
Representative and the Company is greater than zero, the lesser of
(i) $6,000,000 and (ii) the amount of funds necessary to
consummate the transactions contemplated by the Stock Purchase
Agreement as mutually determined by the Sellers’
Representative and the Company.
“ Lien
” means any lien, charge, encumbrance, security interest,
right of first refusal, preemptive right or other restrictions of
any kind.
“ Material
Adverse Effect ” means a material adverse effect on the
business, results of operations, properties or assets of the
Company; provided , however , that “
Material Adverse Effect ” shall not include the impact
on such business, results of operations, properties or assets
arising out of or attributable to (i) effects or conditions
resulting from an outbreak or escalation of hostilities, acts of
terrorism, political instability or other national or international
calamity, crisis or emergency, or any governmental or other
response to any of the foregoing, in each case whether or not
involving the United States (in each case, that do not
disproportionately affect the Company relative to other businesses
in the industry in which the Company operates), (ii) effects
arising from changes in laws or GAAP, (iii) effects relating
to the announcement of the execution of this Agreement or the
transactions contemplated hereby, or (iv) effects resulting
from compliance with the terms and conditions of this Agreement or
the Stock Purchase Agreement by the Company.
“ Per Share
Purchase Price ” means the greater of: (i) the
average closing sales price of the Common Stock for the ten
consecutive Trading Days prior to the Closing Date or (ii) the
price at which a holder of Common Stock would be entitled to have a
single share of Common Stock converted, assuming (a) such
holder had voted against the CHS Transaction and elected to have
his shares of Common Stock converted pursuant to the terms of the
Company’s Amended and Restated Certificate of Incorporation
and (b) all other conditions precedent to such conversion had
occurred.
“ Person
” means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind.
“ Plan
” means that certain Rule 10b5-1 Purchase Plan, dated
May 15, 2007, by and among the Purchaser, the Company and
Wachovia Capital Markets, LLC.
“
Prospectus ” means the prospectus included in the
Registration Statement (including, without limitation, a prospectus
that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Shares covered
by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments,
and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.
“ Registration
Statement ” means the registration statement required to
be filed hereunder, including the Prospectus, amendments and
supplements to the registration statement or Prospectus, including
pre- and post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by
reference in the Registration Statement.
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“ Remainder
Amount ” means an amount equal to the funds remaining in
the Account (as such term is defined in the Plan) immediately after
the termination of the Plan.
“
Rule 144 ” means Rule 144 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be
amended from time to time, or, to the extent replaced, the
comparable successor thereto.
“
Rule 415 ” means Rule 415 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be
amended from time to time, or, to the extent replaced, the
comparable successor thereto.
“
Rule 424 ” means Rule 424 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be
amended from time to time, or, to the extent replaced, the
comparable successor thereto.
“ Secondary
Shortfall Amount ” means, if the Initial Shortfall Amount
is $6,000,000 the lesser of (i) $12,000,0000 and (ii) the
amount of funds necessary to consummate the transactions
contemplated by the Stock Purchase Agreement as mutually determined
by the Company and the Sellers’ Representative less
$6,000,000.
“ SEC
Reports ” shall have the meaning ascribed to such term in
Section 3.1(g).
“
Securities ” means the Shares.
“ Securities
Act ” means the Securities Act of 1933, as
amended.
“
Sellers’ Representative ” has the meaning
ascribed to such term in the Stock Purchase Agreement.
“ Shares
” means the shares of Common Stock issued or issuable to the
Purchasers pursuant to this Agreement.
“ Stock
Purchase Agreement ” has the meaning ascribed to such
term in the definition of CHS Transaction.
“ Trading
Day ” means (i) a day on which the Common Stock is
traded on a Trading Market, or (ii) if the Common Stock is not
listed or admitted for trading on a Trading Market, a day on which
the Common Stock is traded in the over-the-counter market is quoted
in the over-the-counter market as reported by the National
Quotation Bureau Incorporated (or any similar organization or
agency succeeding to its functions of reporting prices); provided,
that in the event that the Common Stock is not listed or quoted as
set forth in (i) or (ii) hereof, then Trading Day shall
mean a Business Day.
“ Trading
Market ” means the American Stock Exchange (“
AMEX ”) or, if the Company’s Common Stock is not
listed on AMEX, such other exchange or quotation system on which
the Common Stock is listed or quoted for trading on the date in
question.
“ Transaction
Documents ” means this Agreement, the Escrow Agreement
and any other documents or agreements executed in connection with
the transactions contemplated hereunder.
ARTICLE II
PURCHASE AND SALE
2.1 Closing;
Escrow. Subject to the terms and conditions set
forth in this Agreement, at the Closing the Company shall issue and
sell to the Purchaser, and the Purchaser shall purchase from the
Company, the Shares representing the Aggregate Investment Amount.
Promptly upon the satisfaction of each of the applicable conditions
set forth in Section 2.2, the Closing shall occur at the
offices of Akerman Senterfitt, One Southeast 3rd Avenue,
Suite 2500, Miami, Florida 33131 or at such other location or
time as the parties shall mutually agree.
2.2 Closing
Conditions .
(a) At the Closing,
the Company shall deliver or cause to be delivered to the Purchaser
a certificate evidencing a number of Shares registered in the name
of the Purchaser or a book-entry transfer of the Shares to the
Purchaser equal to Aggregate Investment Amount divided by the Per
Share Purchase Price.
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(b) The obligations
of each party at the Closing to consummate the transactions
contemplated at the Closing shall be subject to the satisfaction or
waiver of all of the conditions to closing the CHS Transaction set
forth in the Stock Purchase Agreement.
ARTICLE III
REPRESENTATIONS AND
WARRANTIES
3.1
Representations and Warranties of the Company
. The Company hereby makes the following representations
and warranties to the Purchaser:
(a)
Organization and Qualification. The Company is
an entity duly incorporated, validly existing and in good standing
under the laws of the State of Delaware, with the requisite power
and authority to own and use its properties and assets and to carry
on its business as currently conducted. The Company is not in
violation of any of the provisions of its certificate of
incorporation or bylaws. The Company is duly qualified to conduct
business and is in good standing as a foreign corporation in each
jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the
case may be, would not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect and
no Action has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification.
(b)
Authorization; Enforcement. Other than the Buyer
Stockholder Approval (as such term is defined in the Stock Purchase
Agreement), the Company has all requisite corporate power and
authority, and has taken all requisite corporate action to enter
into and to consummate the transactions contemplated by each of the
Transaction Documents and otherwise to carry out its obligations
thereunder. The execution and delivery of each of the Transaction
Documents by the Company and the consummation by it of the
transactions contemplated thereby have been duly authorized by all
necessary action on the part of the Company and no further action
is required by the Company in connection therewith, except for the
Buyer Stockholder Approval. Each Transaction Document has been (or
upon delivery will have been) duly executed by the Company and,
when delivered in accordance with the terms hereof, will constitute
the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except as limited by
(i) applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting
enforcement of creditors’ rights generally and
(ii) general principles of equity.
(c) No
Conflicts. Other than the Buyer Stockholder
Approval, the execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated thereby do not and will
not (i) conflict with or violate any provision of the
Company’s certificate of incorporation or bylaws, or
(ii) conflict with, or constitute a default (or an event that
with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time
or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company debt or otherwise) or other
understanding to which the Company is a party or by which any
property or asset of the Company is bound or affected, or
(iii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any
court or governmental authority to which the Company is subject
(including federal and state securities laws and regulations), or
by which any property or asset of the Company is bound or affected;
except in the case of clause (iii), such as would not, individually
or in the aggregate, reasonably be expected to be material to the
business or the operation of the Company or materially impair the
Company’s ability to consummate the transaction contemplated
hereby.
(d) Filings,
Consents and Approvals. Other than the Buyer
Stockholder Approval, the Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or
make any filing or registration with, any court or other federal,
state, local or other governmental authority or other Person in
connection with the execution, delivery and performance by the
Company of the Transaction
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Documents, other than (i) the
filing of Form D with the Commission and such filings required
by state securities laws, which the Company will promptly and
timely make, and (ii) such other filings as may be required
following the Closing Date under the Securities Act and the
Exchange Act.
(e) Issuance of
the Securities. The Shares have been duly
authorized and, when issued and paid for in accordance with the
Transaction Documents, will be duly and validly issued, fully paid
and nonassessable, free and clear of all Liens and preemptive
rights. The Company has reserved from its duly authorized capital
stock all of the Shares issuable pursuant to this
Agreement.
(f)
Capitalization. The capitalization of the
Company conforms as to legal matters to the description thereof
contained in the Company’s most recent periodic report filed
with the Commission at least two Business Days prior to the date
hereof. No securities of the Company are entitled to preemptive or
similar rights, and no Person has any right of first refusal,
preemptive right, right of participation, or any similar right to
participate in the transactions contemplated by the Transaction
Documents. The Company has no authorized or outstanding bonds,
debentures, notes or other indebtedness the holders of which have
the right to vote (or convertible into, exchangeable for, or
evidencing the right to subscribe for or acquire securities having
the right to vote). All of the outstanding shares of capital stock
of the Company are validly issued, fully paid and nonassessable,
have been issued in compliance with all federal and state
securities laws, and none of such outstanding shares was issued in
violation of any preemptive rights or similar rights to subscribe
for or purchase securities. In connection with the CHS Transaction,
on the Closing Date, the Company will issue shares of common stock
pursuant to private transactions and such shares shall be sold at a
price per share no less than the Per Share Purchase Price. Other
than the Buyer Stockholder Approval, no further approval or
authorization of any stockholder, the Board of Directors of the
Company or others is required for the issuance and sale of the
Shares. Except as disclosed in the SEC Reports, there are no
stockholders agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to
which the Company is a party or, to the knowledge of the Company,
between or among any of the Company’s
stockholders.
(g) SEC
Reports; Financial Statements. The Company has
filed all reports, registrations, schedules, forms, statements and
other documents required to be filed by it under the Securities Act
and the Exchange Act, including pursuant to Section 13(a) or
15(d) thereof, or with any Governmental Authority, for the twelve
months preceding the date hereof (or such shorter period as the
Company was required by law to file such reports) (the foregoing
materials being collectively referred to herein as the “
SEC Reports ”) on a timely basis or has timely filed a
valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act
and the rules and regulations of the Commission promulgated
thereunder, and the rules and regulations of any other Governmental
Authority with which the SEC Reports were made or should have been
made, and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they
were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with
the rules and regulations of the Commission with respect thereto as
in effect at the time of filing. Such financial statements have
been prepared in accordance with generally accepted accounting
principles applied on a consistent basis during the periods
involved (“ GAAP ”), except as may be otherwise
specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material
respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of
operations and cash flows for the periods then ended, subject, in
the case of unaudited statements, to normal, immaterial, year-end
audit adjustments.
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3.2
Representations and Warranties of the Purchasers
. The Purchaser hereby represents and warrants to the
Company as follows:
(a)
Organization; Authority. The Purchaser is
(i) an entity duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization to
enter into and to consummate the transactions contemplated by the
applicable Transaction Documents and otherwise to carry out its,
his or her obligations thereunder. The execution, delivery and
performance by the Purchaser of the transactions contemplated by
this Agreement has been duly authorized by all necessary
partnership action, on the part of the Purchaser. This Agreement
has been duly executed by the Purchaser, and when delivered by the
Purchaser in accordance with terms hereof, will constitute the
valid and legally binding obligation of the Purchaser,
enforceable
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