Charles A. and Marian L. Derby, et al. - Page 27




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          (equipment, furniture, fixtures), inventory and supplies, records           
          (excluding patient records), licenses and permits to the extent             
          transferrable under applicable law, and any intangibles which               
          were part of the seller's medical practice.  Each seller retained           
          his/her (or its) cash and accounts receivable.  Each seller was             
          given "an equal and joint ownership interest" with SMF "in all              
          patient lists and patient medical records used in [the seller's             
          business]".  SMF agreed to assume contractual and lease                     
          liabilities.                                                                
               Article 1.04 of each APA provided:                                     
                    Seller and Buyer believe that the purchase price                  
               of the Assets is less than their fair market value.                    
               The difference between the purchase price and the fair                 
               market value of the Assets is referred to as the                       
               "contribution".  At the closing, Seller will                           
               irrevocably and unconditionally donate the Contribution                
               to Buyer to be used in furtherance of its charitable                   
               purposes.  If Seller chooses to claim a charitable                     
               contribution deduction for the Contribution, then,                     
               subject to the following conditions, Buyer, upon the                   
               written request of Seller, agrees to acknowledge                       
               receipt of the contributed property by executing Part                  
               IV (Donee Acknowledgment) of a properly completed IRS                  
               Form 8283 (Noncash Charitable Contribution) supplied by                
               Seller:  (a) Seller must obtain from a duly qualified                  
               independent third-party appraiser an appraisal (the                    
               "Appraisal") of the value of the Seller's Business that                
               complies with the standards of Rev. Rul. 59-60,                        
               including its later modification and amplifications;                   
               (b) the Appraisal must be made as of a date no more                    
               than sixty (60) days prior to the Closing Date (as                     
               defined in Section 7.01); (c) the claimed fair market                  
               value of Seller's charitable contribution must not                     
               exceed the Contribution, as determined by the                          
               Appraisal.                                                             









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Last modified: March 27, 2008