Exhibit 10.1
EXECUTION COPY
US ONCOLOGY HOLDINGS,
INC.
$425,000,000 Senior Unsecured
Floating Rate Toggle Notes Due 2012
Purchase Agreement
New York, New York
March 1, 2007
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Citigroup
Global Markets Inc.
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Morgan
Stanley & Co. Incorporated
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Wachovia
Capital Markets, LLC
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As
Representatives of the Initial Purchasers
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c/o Citigroup
Global Markets Inc.
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390 Greenwich
Street
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New York, New
York 10013
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Ladies and Gentlemen:
US Oncology Holdings, Inc., a
corporation organized under the laws of Delaware (the “
Issuer ”), which is the parent of US Oncology, Inc., a
corporation organized under the laws of Delaware (the “
Company ”), proposes to issue and sell to the several
parties named in Schedule I hereto (the “ Initial
Purchasers ”), for whom you (the “
Representatives ”) are acting as representatives,
$425,000,000 principal amount of its Senior Unsecured Floating Rate
Toggle Notes Due 2012 (the “ Securities ”). The
Securities are to be issued under an indenture (the “
Indenture ”), to be dated as of March 13, 2007,
between the Issuer and LaSalle Bank National Association, as
trustee (the “ Trustee ”). The Securities have
the benefit of a Registration Rights Agreement (the “
Registration Rights Agreement ”), dated as of the date
hereof, between the Issuer and the Initial Purchasers, pursuant to
which the Issuer has agreed to register the Securities under the
Act subject to the terms and conditions therein specified. To the
extent there are no additional parties listed on Schedule I
other than you, the term Representatives as used herein shall mean
you as the Initial Purchasers, and the terms Representatives and
Initial Purchasers shall mean either the singular or plural as the
context requires. The use of the neuter in this Agreement shall
include the feminine and masculine wherever appropriate. Certain
terms used herein are defined in Section 17 hereof.
The sale of the Securities to the
Initial Purchasers will be made without registration of the
Securities under the Act in reliance upon exemptions from the
registration requirements of the Act.
In connection with the sale of the
Securities, the Issuer has prepared a preliminary offering
memorandum, dated March 1, 2007 (as amended or supplemented at
the date thereof, including any and all exhibits thereto, the
“ Preliminary Memorandum ”), and a final
offering memorandum, dated March 1, 2007 (as amended or
supplemented at the Execution Time, including any and all exhibits
thereto, the “ Final Memorandum ”). Each of the
Preliminary Memorandum and the Final Memorandum sets forth certain
information concerning the Issuer and its subsidiaries and the
Securities. The Issuer hereby confirms that it has authorized the
use of the Disclosure Package, the Preliminary Memorandum and the
Final Memorandum, and any amendment or supplement thereto, in
connection with the offer and sale of the Securities by the Initial
Purchasers. Any reference herein to the Preliminary Memorandum or
the Final Memorandum shall be deemed to refer to and include the
documents stated to be incorporated by reference therein which were
filed under the Exchange Act on or before the issue date of the
Preliminary Memorandum or the Final Memorandum, as the case may be;
and any reference herein to the terms “amend”,
“amendment” or “supplement” with respect to
the Preliminary Memorandum or the Final Memorandum shall be deemed
to refer to and include the filing of any document under the
Exchange Act after the issue date of the Preliminary Memorandum or
the Final Memorandum, as the case may be, deemed to be incorporated
therein by reference.
1. Representations and
Warranties . The Issuer represents and warrants to each Initial
Purchaser as set forth below in this Section 1.
(a) The Preliminary Memorandum, at
the date thereof, did not contain any untrue statement of a
material fact or omit to state any material fact necessary to make
the statements therein, in the light of the circumstances under
which they were made, not misleading. At the Execution Time and on
the Closing Date (as defined in Section 3 hereof), the Final
Memorandum did not, and will not (and any amendment or supplement
thereto, at the date thereof and at the Closing Date, will not),
contain any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading; provided , however , that the Issuer
makes no representation or warranty as to the information contained
in or omitted from the Preliminary Memorandum or the Final
Memorandum, or any amendment or supplement thereto, in reliance
upon and in conformity with information furnished in writing to the
Issuer by or on behalf of the Initial Purchasers through the
Representatives specifically for inclusion therein, it being
understood and agreed that the only such information furnished by
or on behalf of any Initial Purchaser consists of the information
described as such in Section 8(b) hereof.
(b) The Disclosure Package, as of
the Execution Time, does not contain any untrue statement of a
material fact or omit to state any material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The preceding sentence
does not apply to statements in or omissions from the Disclosure
Package based upon and in conformity with information furnished in
writing to the Issuer by any Initial Purchaser through the
Representatives specifically for inclusion therein, it
being
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understood and agreed that the only
such information furnished by or on behalf of any Initial Purchaser
consists of the information described as such in Section 8(b)
hereof.
(c) None of the Issuer, its
Affiliates, or any person acting on its or their behalf (other than
the Initial Purchasers, as to whom the Issuers make no
representation) has, directly or indirectly, made offers or sales
of any security, or solicited offers to buy any security, under
circumstances that would require the registration of the Securities
under the Act.
(d) None of the Issuer, its
Affiliates, nor any person acting on its or their behalf (other
than the Initial Purchasers, as to whom the Issuers make no
representation) has: (i) engaged in any form of general
solicitation or general advertising (within the meaning of
Regulation D) in connection with any offer or sale of the
Securities or (ii) engaged in any directed selling efforts
(within the meaning of Regulation S) with respect to the
Securities, and each of them has complied with the offering
restrictions requirements of Regulation S.
(e) The Securities satisfy the
eligibility requirements of Rule 144A(d)(3) under the
Act.
(f) Neither the Issuer nor any of
its subsidiaries is, and, after giving effect to the offering and
sale of the Securities and the application of the proceeds thereof
as described in the Disclosure Package and the Final Memorandum,
none of the foregoing will be, an “investment company”
within the meaning of the Investment Company Act without taking
account of any exemption arising out of the number of holders of
the Issuer’s or any such subsidiary’s securities, as
applicable.
(g) Neither the Issuer nor any of
its subsidiaries has paid or agreed to pay to any person any
compensation for soliciting another to purchase any securities of
the Issuer or any of its subsidiaries, as applicable (except as
contemplated in this Agreement).
(h) Neither the Issuer nor any of
its subsidiaries has taken, directly or indirectly, any action
designed to or that has constituted or that might reasonably be
expected to cause or result, under the Exchange Act or otherwise,
in the stabilization or manipulation of the price of any security
of the Issuer or any of its subsidiaries to facilitate the sale or
resale of the Securities.
(i) The information provided by the
Issuer pursuant to Section 5(j) hereof will not, at the date
thereof, contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not
misleading.
(j) The Issuer has been duly
incorporated and is validly existing as a corporation in good
standing under the laws of Delaware with full corporate power and
authority to own or lease, as the case may be, and to operate its
properties and conduct its business as described in the Disclosure
Package and the Final Memorandum, and is duly qualified to do
business as a foreign corporation and is in good standing under the
laws of each jurisdiction that requires such
qualification.
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(k) The Issuer does not own any
material assets or other property other than all of the capital
stock of the Company and does not engage in any business other than
activities incidental thereto.
(l) The Company has been duly
incorporated and is validly existing as a corporation in good
standing under the laws of Delaware with full corporate power and
authority to own or lease, as the case may be, and to operate its
properties and conduct its business as described in the Disclosure
Package and the Final Memorandum, and is duly qualified to do
business as a foreign corporation and is in good standing under the
laws of each jurisdiction which requires such qualification. Each
Subsidiary has been duly organized and is validly existing and in
good standing under the laws of the jurisdiction in which it is
organized with full power and authority to own or lease, as the
case may be, and to operate its properties and conduct its business
as described in the Disclosure Package and the Final Memorandum,
and except as would not have a material adverse effect on the
condition (financial or otherwise), prospects, earnings, business
or properties of the Issuer and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business (a “ Material Adverse Effect ”) is duly
qualified to do business and is in good standing under the laws of
each jurisdiction that requires such qualification.
(m) All the outstanding shares of
capital stock of the Company and each Subsidiary are duly
authorized, validly issued and fully paid and nonassessable; all
outstanding shares of capital stock of the Company and each
Subsidiary are owned by the Issuer, either directly or through
wholly-owned subsidiaries, free and clear of any perfected security
interest or any other security interests, claims, liens or
encumbrances other than any of the foregoing to secure loans under
the credit agreement, dated August 20, 2004 (the “
Existing Credit Facility ”), among the Issuer, the
Company, the lenders party thereto, JPMorgan Chase Bank, N.A.
(formerly JPMorgan Chase Bank), as administrative agent and
collateral agent, Wachovia Bank, National Association, as
syndication agent, and Citicorp North America, Inc., as
documentation agent, as amended through the date hereof.
(n) The Issuer has all requisite,
power and authority to execute and deliver each of this Agreement,
the Registration Rights Agreement and the Indenture and to perform
its respective obligations hereunder and thereunder, and all
corporate action required to be taken by it for the due and proper
authorization, execution and delivery of each of this Agreement,
the Registration Rights Agreement and the Indenture, and the
consummation of the transactions contemplated hereby and thereby,
has been duly and validly taken.
(o) This Agreement has been duly
authorized, executed and delivered by the Issuer; the Indenture has
been duly authorized by the Issuer, and, assuming due
authorization, execution and delivery thereof by the Trustee, when
executed and
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delivered by the Issuer, will
constitute a legal, valid and binding instrument enforceable
against the Issuer, in accordance with its terms (subject, as to
the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting
creditors’ rights generally from time to time in effect and
to general principles of equity); the Securities have been duly
authorized by the Issuer, and, when executed and authenticated in
accordance with the provisions of the Indenture, and delivered to
and paid for by the Initial Purchasers, will have been duly
executed and delivered by the Issuer and will constitute the legal,
valid and binding obligations of the Issuer entitled to the
benefits of the Indenture (subject, as to the enforcement of
remedies, to applicable bankruptcy, insolvency, moratorium or other
laws affecting creditors’ rights generally from time to time
in effect and to general principles of equity); and the
Registration Rights Agreement has been duly authorized by the
Issuer and, when executed and delivered by the Issuer, will
constitute a legal, valid and binding instrument enforceable
against the Issuer, in accordance with its terms (subject, as to
the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting
creditors’ rights generally from time to time in effect and
to general principles of equity), provided that no representation
is made with respect to Section 6 thereof.
(p) No consent, approval,
authorization, filing with or order of any court or governmental
agency or body is required in connection with the transactions
contemplated herein or in the Indenture or the Registration Rights
Agreement, except (i) such as have been obtained or will be
obtained under the Act and the Trust Indenture Act in connection
with the transactions contemplated by the Registration Rights
Agreement and (ii) such as may be required under the blue sky
or securities laws of any jurisdiction in connection with the
transactions contemplated by this Agreement and the Registration
Rights Agreement.
(q) Neither the Issuer nor any of
its subsidiaries is in violation or default of (i) any
provision of its charter or bylaws; (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note
agreement, loan agreement or other agreement, obligation,
condition, covenant or instrument to which it is a party or bound
or to which any of its property is subject; or (iii) any
statute, law, rule, regulation, judgment, order or decree
applicable to it of any court, regulatory body, administrative
agency, governmental body, arbitrator or other authority having
jurisdiction over it or any of its properties, except in the case
of clauses (ii) and (iii), for such violations and defaults as
would not have a Material Adverse Effect.
(r) Neither the execution and
delivery of the Indenture, this Agreement or the Registration
Rights Agreement, the issuance and sale of the Securities, nor the
consummation of any other of the transactions herein or therein
contemplated, nor the fulfillment of the terms hereof or thereof
will conflict with, result in a breach or violation of, or
imposition of any lien, charge or encumbrance upon any property or
assets of the Issuer or any of its subsidiaries pursuant to,
(i) their respective charters or by-laws; (ii) the terms
of any indenture, contract, lease, mortgage, deed of trust, note
agreement, loan agreement or other agreement, obligation,
condition, covenant
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or instrument to which any of them
is a party or bound or to which any of their respective properties
is subject; or (iii) any statute, law, rule, regulation,
judgment, order or decree applicable to any of them of any court,
regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over any of them
or any of their respective properties except, in the case of
(ii) and (iii) above, for such conflicts, breaches,
violations or impositions as would not have a Material Adverse
Effect.
(s) PricewaterhouseCoopers LLP, who
have certified certain financial statements of the Issuer and the
Company and its consolidated subsidiaries and delivered their
report with respect to the audited consolidated financial
statements included in the Disclosure Package and the Final
Memorandum, are independent public accountants with respect to the
Issuer and the Company within the meaning of the Act and the
applicable published rules and regulations thereunder.
(t) The consolidated historical
financial statements of the Issuer and the Company and its
consolidated subsidiaries included in the Disclosure Package and
the Final Memorandum present fairly in all material respects the
financial condition, results of operations and cash flows of the
Issuer and the Company as of the dates and for the periods
indicated, comply as to form with the applicable accounting
requirements of the Act and have been prepared in conformity with
generally accepted accounting principles applied on a consistent
basis throughout the periods involved (except as otherwise noted
therein); the financial information set forth under the captions
“Offering Memorandum Summary—Summary of Historical
Consolidated Financial Information” and
“Capitalization” in the Preliminary Memorandum and the
Final Memorandum fairly present in all material respects, on the
basis stated in the Preliminary Memorandum and the Final
Memorandum, the information included therein.
(u) The Issuer and each of its
subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with
management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset
accountability; (iii) access to assets is permitted only in
accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any
differences.
(v) Since the date of the most
recent financial statements included in the Disclosure Package and
the Final Memorandum (exclusive of any amendment or supplement
thereto), there has been no material adverse change in the
condition (financial or otherwise), prospects, earnings, business
or properties of the Issuer and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business, except as set forth in or contemplated by the Disclosure
Package and the Final Memorandum (exclusive of any amendment or
supplement thereto).
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(w) No action, suit or proceeding by
or before any court or governmental agency, authority or body or
any arbitrator involving the Issuer or any of its subsidiaries or
any of their property is pending or, to the best knowledge of the
Issuer, threatened that (i) could reasonably be expected to
have a material adverse effect on the performance of this
Agreement, the Indenture or the Registration Rights Agreement, or
the consummation of any of the transactions contemplated hereby or
thereby; or (ii) could reasonably be expected to have a
Material Adverse Effect except in the case of clauses (i) and
(ii) as set forth in or contemplated in the Disclosure Package
and the Final Memorandum (exclusive of any amendment or supplement
thereto).
(x) Each of the Issuer and its
subsidiaries has filed all non-U.S., U.S. federal, state and local
tax returns that are required to be filed or has requested
extensions thereof (except in any case in which the failure so to
file would not have a Material Adverse Effect, and except as set
forth in or contemplated in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto)) and
has paid all taxes required to be paid by it and any other
assessment, fine or penalty levied against it, to the extent that
any of the foregoing is due and payable, except for any such
assessment, fine or penalty that is currently being contested in
good faith or as would not have a Material Adverse Effect and
except as set forth in or contemplated in the Disclosure Package
and the Final Memorandum (exclusive of any amendment or supplement
thereto).
(y) No labor problem or dispute with
the employees of the Issuer or any of its subsidiaries exists or is
threatened or imminent, and the Issuer is not aware of any existing
or imminent labor disturbance by the employees of any of its or its
subsidiaries’ principal suppliers, contractors or customers,
except, in each case, as would not have a Material Adverse Effect
and except, in each case, as set forth in or contemplated in the
Disclosure Package and the Final Memorandum (exclusive of any
amendment or supplement thereto).
(z) (i) The Issuer and each of
its subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as
are prudent and customary in the businesses in which they are
engaged; (ii) all policies of insurance and fidelity or surety
bonds insuring the Issuer or any of its subsidiaries, or any of
their respective businesses, assets, employees, officers and
directors are in full force and effect; (iii) the Issuer and
each of its subsidiaries are in compliance with the terms of such
policies and instruments, and there are no claims by any of the
Issuer or any of its subsidiaries under any such policy or
instrument as to which any insurance company is denying liability
or defending under a reservation of rights clause, except in the
case of clauses (i), (ii) and (iii), as would not have a
Material Adverse Effect; neither the Issuer nor any of its
subsidiaries has been refused any insurance coverage sought or
applied for; and neither the Issuer nor any of its subsidiaries has
any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary
to continue its business at a cost that would not have a Material
Adverse Effect except as set forth in or contemplated in the
Disclosure Package and the Final Memorandum (exclusive of any
amendment or supplement thereto).
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(aa) The Company is not prohibited,
directly or indirectly, from paying any dividends to the Issuer,
from making any other distribution on such subsidiary’s
capital stock, from repaying to the Issuer any loans or advances to
such subsidiary from the Issuer or from transferring any of such
subsidiary’s property or assets to the Issuer, except as
described in or contemplated in the Disclosure Package and the
Final Memorandum (exclusive of any amendment or supplement
thereto).
(bb) Except as would not have a
Material Adverse Effect, the Issuer and each of its subsidiaries
possess all licenses, certificates, permits and other
authorizations issued by the appropriate U.S. federal, state or
non-U.S. regulatory authorities necessary to conduct their
respective businesses, and neither the Issuer nor any of its
subsidiaries has received any notice of proceedings relating to the
revocation or modification of any such certificate, authorization
or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would have a Material
Adverse Effect, except as set forth in or contemplated in the
Disclosure Package and the Final Memorandum (exclusive of any
amendment or supplement thereto).
(cc) The Issuer and each of its
subsidiaries are (i) in compliance with any and all applicable
non-U.S., U.S. federal, state and local laws and regulations
relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants
or contaminants (“ Environmental Laws ”);
(ii) have received and are in compliance with all permits,
licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; and
(iii) have not received notice of any actual or potential
liability under any Environmental Laws, except where such
non-compliance with Environmental Laws, failure to receive or
comply with required permits, licenses or other approvals, or
liability would not, individually or in the aggregate, have a
Material Adverse Effect. Except as set forth in or contemplated in
the Disclosure Package and the Final Memorandum (exclusive of any
amendment or supplement thereto), neither the Issuer nor any of its
subsidiaries has been named as a “potentially responsible
party” under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, or similar
state laws.
(dd) (i) The minimum funding
standard under Section 302 of the Employee Retirement Income
Security Act of 1974, as amended, and the regulations and published
interpretations thereunder (“ ERISA ”), has been
satisfied by each “pension plan” (as defined in
Section 3(2) of ERISA) which has been established or
maintained by the Issuer and/or one or more of its subsidiaries,
and the trust forming part of each such plan which is intended to
be qualified under Section 401 of the Code is so qualified;
(ii) the Issuer and each of its subsidiaries has fulfilled its
obligations, if any, under Section 515 of ERISA;
(iii) neither the Issuer nor any of its subsidiaries maintains
or is required to contribute to a “welfare plan” (as
defined in Section 3(1) of ERISA) which provides retiree or
other post-employment welfare
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benefits or insurance coverage
(other than “continuation coverage” (as defined in
Section 602 of ERISA)); (iv) each pension plan and
welfare plan established or maintained by the Issuer and/or one or
more of its subsidiaries is in compliance in all material respects
with the currently applicable provisions of ERISA; and
(v) neither the Issuer nor any of its subsidiaries has
incurred or could reasonably be expected to incur any withdrawal
liability under Section 4201 of ERISA, any liability under
Section 4062, 4063 or 4064 of ERISA, or any other liability
under Title IV of ERISA except, in the case of clauses (i),
(ii), (iii), (iv) and (v), as would not have a Material
Adverse Effect.
(ee) The Issuer and its subsidiaries
own, possess, license or have other rights to use, on reasonable
terms, all patents, patent applications, trade and service marks,
trade and service mark registrations, trade names, copyrights,
licenses, inventions, trade secrets, technology, know-how and other
intellectual property (collectively, the “ Intellectual
Property ”) necessary for the conduct of the
Issuer’s and its subsidiaries’ business as now
conducted or as proposed in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto) to be
conducted, except as would not have a Material Adverse Effect.
Except as set forth in the Disclosure Package and the Final
Memorandum (exclusive of any amendment or supplement thereto) and
except as would not have a Material Adverse Effect, (i) to the
knowledge of the Issuer, there are no rights of third parties to
any such Intellectual Property; (ii) to the knowledge of the
Issuer, there is no infringement by third parties of any such
Intellectual Property; (iii) there is no pending or, to the
knowledge of the Issuer, threatened action, suit, proceeding or
claim by others challenging the Issuer’s or any of its
subsidiaries’ rights in or to any such Intellectual Property,
and the Issuer is unaware of any facts which would form a
reasonable basis for any such claim; (iv) to the knowledge of
the Issuer, there is no pending or threatened action, suit,
proceeding or claim by others challenging the validity or scope of
any such Intellectual Property, and the Issuer is unaware of any
facts which would form a reasonable basis for any such claim; and
(v) there is no pending or, to the knowledge of the Issuer,
threatened action, suit, proceeding or claim by others that the
Issuer or any of its subsidiaries infringes or otherwise violates
any patent, trademark, copyright, trade secret or other proprietary
rights of others, and the Issuer is unaware of any other fact which
would form a reasonable basis for any such claim.
(ff) None of the proceeds of the
sale of the Securities will be used, directly or indirectly, for
the purpose of purchasing or carrying any margin security, for the
purpose of reducing or retiring any indebtedness which was
originally incurred to purchase or carry any margin security or for
any other purpose which might cause any of the Securities to be
considered a “purpose credit” within the meanings of
Regulations T, U or X of the Board of Governors of the Federal
Reserve System of the United States.
(gg) Neither the Issuer nor the
Company has taken any action or omitted to take any action (such as
issuing any press release relating to any Securities without an
appropriate legend) which may result in the loss by any of the
Initial Purchasers
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of the ability to rely on any
stabilization safe harbor provided by the Financial Services
Authority under the Financial Services and Markets Act 2000 (the
“ FSMA ”). Each of the Issuer and the Company
have been informed of the guidance relating to stabilization
provided by the Financial Services Authority, in particular in
Section MAR 2 Annex 2G of the Financial Services
Handbook.
(hh) (i) None of the Issuer,
its subsidiaries or, to the knowledge of the Issuer, any director,
officer, agent, employee or Affiliate of the Issuer or any of its
subsidiaries is aware of or has taken any action, directly or
indirectly, that would result in a violation by such Persons of the
Foreign Corrupt Practices Act of 1977, as amended, and the rules
and regulations thereunder (the “ FCPA ”),
including, without limitation, making use of the mails or any means
or instrumentality of interstate commerce corruptly in furtherance
of an offer, payment, promise to pay or authorization of the
payment of any money, or other property, gift, promise to give, or
authorization of the giving of anything of value to any
“foreign official” (as such term is defined in the
FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the
FCPA; and (ii) the Issuer, its subsidiaries and, to the
knowledge of the Issuer, its Affiliates have conducted their
businesses in compliance with the FCPA and have instituted and
maintain policies and procedures designed to ensure, and which are
reasonably expected to continue to ensure, continued compliance
therewith, except in the case of clauses (i) and (ii), as
would not have a Material Adverse Effect.
(ii) (i) The operations of the
Issuer and its subsidiaries are and have been conducted at all
times in compliance with applicable financial recordkeeping and
reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of
all jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively,
the “ Money Laundering Laws ”); and (ii) no
action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Issuer or
any of its subsidiaries with respect to the Money Laundering Laws
is pending or, to the knowledge of the Issuer, threatened, except
in the case of clauses (i) and (ii), as would not have a
Material Adverse Effect.
(jj) There is and has been no
failure on the part of the Issuer, the Company and any of the
Issuer’s or the Company’s directors or officers, in
their capacities as such, to comply in all material respects with
any applicable provision of the Sarbanes Oxley Act of 2002 and any
applicable rules and regulations promulgated in connection
therewith (the “ Sarbanes Oxley Act
”).
(kk) None of the Issuer, any of its
subsidiaries or, to the knowledge of the Issuer, any director,
officer, agent, employee or Affiliate of the Issuer or any of its
subsidiaries is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S.
Department of the Treasury (“ OFAC ”); and the
Issuer will not directly or indirectly use the proceeds of the
offering of the Securities hereunder, or lend, contribute or
otherwise make available such proceeds to any
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subsidiary, joint venture partner or
other person or entity, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered
by OFAC.
(ll) The Disclosure Package and the
Final Memorandum, as of their respective dates, contain all of the
information that, if requested by a prospective purchaser of the
Securities, would be required to be provided to such prospective
purchaser pursuant to Rule 144A(d)(4) under the Securities
Act.
(mm) Each of the Issuer and its
subsidiaries has good and marketable title in fee simple to, or has
valid rights to lease or otherwise use, all items of real and
personal property that are material to the business of the Issuer
and its subsidiaries, in each case free and clear of all liens,
encumbrances, claims and defects and imperfections of title except
(i) those provided in connection with the Existing Credit
Facility, (ii) such as do not materially interfere with the
use made and proposed to be made of such property by the Issuer or
its subsidiaries or (iii) such as could not reasonably be
expected to have a Material Adverse Effect.
(nn) The statements in the
Preliminary Memorandum and the Final Memorandum under the headings
“Description of Certain Other Indebtedness”,
“Description of the Notes”, “Material Federal
U.S. Income Tax Considerations” and “Government
Regulation” fairly summarize the matters therein
described.
(oo) Assuming the accuracy of the
representations made by the Initial Purchasers herein, no
registration under the Act of the Securities is required for the
offer and sale of the Securities to or by the Initial Purchasers in
the manner contemplated herein, in the Disclosure Package and in
the Final Memorandum.
(pp) None of the Issuer, its
subsidiaries nor any of their respective officers, directors,
employees, or agents, acting alone or together, have:
(a) received, directly or indirectly, any rebates, payments,
commissions, promotional allowances or any other economic benefits,
regardless of their nature or type, from any customer, governmental
employee or other person with whom the Issuer or its subsidiaries
do or will do business directly or indirectly, or (b) directly
or indirectly, agreed to give any money, gift or similar benefit to
any customer, supplier, employee or agent of a customer or
supplier, or official or employee of any government agency,
governmental employee or other person who was, is or may be in a
position to help or hinder the business (or assist the Issuer or
any of its subsidiaries in connection with any actual or proposed
transaction) that, in the case of either clause (a) or clause
(b) above, might subject the Issuer or any of its subsidiaries
to any damage or penalty in any civil, criminal or governmental
litigation or proceeding, except as would not have a Material
Adverse Effect.
(qq) None of the Issuer, its
subsidiaries, nor any of their respective current or former
officers, directors, employees or agents (in their capacity as
such) and, to the knowledge of the Issuer, no persons who provide
professional services under agreements with the Issuer or any of
its subsidiaries have engaged in any activities
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which (i) are prohibited under
the federal Medicare and Medicaid statutes (which include, but are
not limited to, 42 U.S.C. §§ 1320a-7, 1320a-7a, 1320a-7b,
1395nn), the federal health plans administered by the Department of
Defense, the Federal False Claims Act (31 U.S.C. § 3729)
(including the regulations promulgated and advisory opinions and
other guidance provided pursuant to such federal statutes), related
state or local statutes or regulations or (ii) constitute
material violations of or material deficiencies under the standards
of any private accrediting organization from which the Issuer or
any of its subsidiaries seeks accreditation, except in the case of
clauses (i) and (ii), as would not have a Material Adverse
Effect.
(rr) None of the Issuer, its
subsidiaries nor any of their respective current or former officers
or directors has (a) had any civil monetary penalty assessed
against it under Section 1128(h) of the Social Security Act or
any regulations promulgated thereunder; (b) been excluded from
participation under the Medicare program or state health care
program as defined in Section 1128(h) of the Social Security
Act or any regulation thereunder or a federal health care program
as defined in Section 1128B(f) of the Social Security Act; or
(c) been convicted of any of the categories of offenses as
described in Section 1128(a) and (b)(1), (2) and
(3) of the Social Security Act or any regulations promulgated
thereunder, except in the case of clauses (a), (b) or (c), as
would not have a Material Adverse Effect.
(ss) Except as would not have a
Material Adverse Effect, to the extent the Issuer or any of its
subsidiaries is a “covered entity” within the meaning
of the Health Insurance Portability and Accountability Act of 1996
(“ HIPAA ”) or the Issuer or any of its
subsidiaries are subject to or covered by the so-called
“Administrative Simplification” provisions of HIPAA,
the Issuer and its subsidiaries are HIPAA Compliant. For purposes
hereof, “HIPAA Compliant” shall mean that the Issuer or
its subsidiaries, as the case may be, is or will be in compliance
in all material respects with each of the applicable requirements
of the so-called “Administrative Simplification”
provisions of HIPAA on and as of each date that any part thereof,
or any final rule or regulations thereunder, becomes effective in
accordance with its or their terms, as the case may be.
(tt) Except as would not have a
Material Adverse Effect, the Issuer and each of its subsidiaries
that bills the Medicare program is in compliance with the
conditions of participation imposed by the Social Security Act and
the Secretary of Health and Human Services. Except as would not
have a Material Adverse Effect, the Issuer and its subsidiaries, as
the case may be, have a Medicare provider or supplier agreement and
a Medicare provider or supplier number in force covering each
location at which the Issuer and its subsidiaries, as the case may
be, accepts Medicare patients. In addition, except as would not
have a Material Adverse Effect, the Issuer and its subsidiaries
have a Medicaid provider agreement and Medicaid provider number in
force in each state in which the Issuer or its subsidiaries bills
the Medicaid program.
Any certificate signed by any
officer of the Issuer and delivered to the Representatives or
counsel for the Initial Purchasers in connection with the offering
of the Securities shall be deemed a representation and warranty by
the Issuer, as to matters covered thereby, to each Initial
Purchaser.
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2. Purchase and Sale .
Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Issuer agrees
to sell to each Initial Purchaser, and each Initial Purchaser
agrees, severally and not jointly, to purchase from the Issuer, at
a purchase price of 97.500% of the principal amount thereof, plus
accrued interest, if any, from March 1, 2007 to the Closing
Date, the principal amount of Securities set forth opposite such
Initial Purchaser’s name in Schedule I
hereto.
3. Delivery and Payment .
Delivery of and payment for the Securities shall be made at
10:00 A.M., New York City time, on March 13, 2007,
or at such time on such later date (not later than March 19,
2007) as the Representatives shall designate, which date and time
may be postponed by agreement between the Representatives and the
Issuer or as provided in Section 9 hereof (such date and time
of delivery and payment for the Securities being herein called the
“ Closing Date ”). Delivery of the Securities
shall be made to the Representatives for the respective accounts of
the several Initial Purchasers against payment by the several
Initial Purchasers through the Representatives of the purchase
price thereof to or upon the order of the Issuer by wire transfer
payable in same-day funds to the account specified by the Issuer.
Delivery of the Securities shall be made through the facilities of
The Depository Trust Company unless the Representatives shall
otherwise instruct.
4. Offering by Initial
Purchasers . (a) Each Initial Purchaser acknowledges that
the Securities have not been and will not be registered under the
Act and may not be offered or sold, except pursuant to an exemption
from, or in a transaction not subject to, the registration
requirements of the Act.
(b) Each Initial Purchaser,
severally and not jointly, represents and warrants to and agrees
with the Issuer that:
(i) it has not offered or sold, and
will not offer or sell, any Securities (x) as part of their
distribution at any time or (y) otherwise until 40 days after
the later of the commencement of the offering and the date of
closing of the offering except:
(A) to those it reasonably believes
to be