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STOCK PURCHASE AGREEMENT




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TABLE OF CONTENTS
 ARTICLE I DEFINITIONS; CONSTRUCTION
    
    
    11.1
    
    
    Definitions
    
    
    11.2
    
    
    Construction
    
    
    6ARTICLE II PURCHASE AND SALE
    
    
    62.1
    
    
    Purchase and Sale of Shares
    
    
    62.2
    
    
    Purchase Price
    
    
    62.3
    
    
    Working Capital Adjustment
    
    
    7ARTICLE III THE CLOSING
    
    
    93.1
    
    
    Closing
    
    
    93.2
    
    
    Closing Deliveries of Purchaser
    
    
    93.3
    
    
    Closing Deliveries of the Shareholders
    
    
    10ARTICLE IV SHAREHOLDERS REPRESENTATIONS AND WARRANTIES
    
    
    114.1
    
    
    Organization
    
    
    114.2
    
    
    Authorization
    
    
    114.3
    
    
    Validity; Binding Effect
    
    
    114.4
    
    
    Noncontravention
    
    
    124.5
    
    
    Capital Structure
    
    
    124.6
    
    
    Financial Statements
    
    
    124.7
    
    
    Title to and Sufficiency of Assets
    
    
    134.8
    
    
    Tax Matters
    
    
    144.9
    
    
    Litigation; Claims
    
    
    144.10
    
    
    Legal Compliance
    
    
    154.11
    
    
    Environmental Laws and Regulations
    
    
    174.12
    
    
    Permits
    
    
    174.13
    
    
    Material Contracts
    
    
    174.14
    
    
    Labor and Employment Matters
    
    
    194.15
    
    
    Employee Benefits
    
    
    194.16
    
    
    Intellectual Property
    
    
    204.17
    
    
    Affiliate Transactions
    
    
    204.18
    
    
    Brokers Fees
    
    
    204.19
    
    
    Warranty
    
    
    204.20
    
    
    Customers; Suppliers
    
    
    20ARTICLE V PURCHASERS REPRESENTATIONS AND WARRANTIES
    
    
    215.1
    
    
    Organization of Purchaser
    
    
    215.2
    
    
    Authorization
    
    
    215.3
    
    
    Validity; Binding Effect
    
    
    215.4
    
    
    Noncontravention
    
    
    215.5
    
    
    Brokers Fees
    
    
    215.6
    
    
    Financing
    
    
    21ARTICLE VI COVENANTS PENDING CLOSING
    
    
    22
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6.1
    
    
    General
    
    
    226.2
    
    
    Notices and Consents
    
    
    226.3
    
    
    Due Diligence
    
    
    226.4
    
    
    The Companys Operation of Business Prior to Closing
    
    
    226.5
    
    
    Governmental Permits and Approvals and Third Party Consent
    
    
    s       236.6
    
    
    Press Releases
    
    
    236.7
    
    
    Update to Schedules
    
    
    236.8
    
    
    Certain Actions
    
    
    236.9
    
    
    No Solicitation
    
    
    24ARTICLE VII CONDITIONS PRECEDENT
    
    
    247.1
    
    
    The Purchasers Conditions Precedent
    
    
    247.2
    
    
    The Shareholders Conditions Precedent
    
    
    25ARTICLE VIII INDEMNIFICATION
    
    
    258.1
    
    
    Indemnification by the Shareholders
    
    
    258.2
    
    
    Indemnification by Purchaser
    
    
    268.3
    
    
    Limitations on Indemnity
    
    
    268.4
    
    
    Third Party Claims
    
    
    27ARTICLE IX ADDITIONAL COVENANTS
    
    
    279.1
    
    
    General
    
    
    27ARTICLE X TERMINATION
    
    
    2810.1
    
    
    Termination Events
    
    
    2810.2
    
    
    Effect of Termination
    
    
    28ARTICLE XI MISCELLANEOUS
    
    
    2911.1
    
    
    Assignment
    
    
    2911.2
    
    
    Notices
    
    
    2911.3
    
    
    Expenses; Attorneys Fees
    
    
    3011.4
    
    
    Governing Law; Forum
    
    
    3111.5
    
    
    Partial Invalidity
    
    
    3111.6
    
    
    Execution in Counterparts; Facsimile Signatures
    
    
    3111.7
    
    
    Entire Agreement; Amendments and Waivers
    
    
    3111.9
    
    
    No Third Party Beneficiary
    
    
    32
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ExhibitsExhibit A
    
    Working Capital Calculation ProceduresExhibit B
    
    Form of Employment Agreement  SchneiderExhibit C
    
    Form of Consulting Agreement  KurtinExhibit D
    
    Form of Consulting Agreement  DefayExhibit E
    
    Promissory NoteExhibit F
    
    [Intentionally Omitted]Exhibit G
    
    Employee BonusesSchedulesSchedule 4.1(a)
    
    Foreign QualificationsSchedule 4.1(b)
    
    Company LocationsSchedule 4.4
    
    NoncontraventionSchedule 4.5
    
    CapitalizationSchedule 4.6(a)
    
    Financial StatementsSchedule 4.6(c)
    
    Undisclosed LiabilitiesSchedule 4.6(d)
    
    Material ChangesSchedule 4.6(e)
    
    Accounts ReceivableSchedule 4.7(a)
    
    Real Property/LeaseholdsSchedule 4.7(b)
    
    Permitted LiensSchedule 4.9
    
    Litigation; ClaimsSchedule 4.10(b)
    
    Shareholder Medicare/Medicaid ReimbursementSchedule 4.10(d)
    
    Medicare/Medicaid ReportsSchedule 4.10(e)
    
    Company RecordsSchedule 4.10(f)
    
    Health Care Compliance MattersSchedule 4.11
    
    Environmental MattersSchedule 4.12
    
    PermitsSchedule 4.13
    
    Material ContractsSchedule 4.14
    
    Labor and Employment MattersSchedule 4.15
    
    Employee BenefitsSchedule 4.16
    
    Intellectual PropertySchedule 4.17
    
    Affiliate TransactionsSchedule 4.18
    
    Brokers FeesSchedule 4.19
    
    WarrantiesSchedule 4.21(a)
    
    CustomersSchedule 4.21(b)
    
    Suppliers
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STOCK PURCHASE AGREEMENT
 Agreement Purchaser Company Shareholders
      DEFINITIONS; CONSTRUCTION
 Definitions Section 1.1
 AAA Section 11.4(b)
 Accounts Receivable Section 4.6(e)
 Acquisition Transactions Section 6.9
 Affiliate
 Agreement
 Balance Sheet Section 4.6(a)
 Base Working Capital




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Benefit Plans Section 4.15
 Business Day
 Closing Section 3.1
 Closing Date
 Closing Date Balance Sheet Section
2.3(a)(i)
 Closing Date Working Capital Section
2.3(a)(ii)
 Code
 Company
 Consulting Agreements Section 3.2(d)
 Current Assets Section 2.3(a)(ii)
 Current Liabilities Section 2.3(a)(ii)
 Customers Section 4.21(a)
 Deposit Amount
 Dispute Notice Section 2.3(b)
 Dispute Period Section 2.3(b)
 Employment Agreement Section 3.2(c)
 Environmental Laws
 ERISA
 ERISA Affiliate
 2




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Financial Statements Section 4.6(a)
 GAAP
 GLB Section 4.10(g)
 Hazardous Activity
 Hazardous Material
 HIPAA Section 4.10(g)
 Indebtedness
 Indemnified Person Section 8.4(a)
 Indemnifying Person Section 8.4(a)
 Independent Accountants
 Intellectual Property Section 4.16
 Intellectual Property Agreement Section
3.2(e)
 3




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IRS
 Labor and Employment Laws
 Laws
 Liens
 Losses Section 8.1
 Management
 Material Adverse Effect
 Material Contracts Section 4.13
 Medicare Laws
 Multiemployer Plan
 New Stock
 Note Section 2.2(b)
 Notice Section 11.2
 Notice Party Section 11.2
 Order Section 4.9
 4




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Payors Section 4.10(d)
 Pension Plan
 Permits Section 4.12
 Person
 PHI Section 4.10(g)
 Position Statement Section 2.3(e)
 Post-Closing Delivery Section 2.3(a)
 Pre-Closing Company Transaction Expenses
 Purchaser
 Reports Section 4.10(d)
 Resolution Period Section 2.3(d)
 Restrictions
 Required Permits Section 6.5
 Shareholders
 5




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Stock Section 4.5
 Suppliers Section 4.21(b)
 Termination Date
 Third-Party Claim Section 8.4(a)
 Updated Schedules and Materials Section
6.7
 Working Capital plus plus minus Exhibit
A
 Construction
     PURCHASE AND SALE
 Purchase and Sale of Shares
 Purchase Price
 6




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(i)
    
    Fifteen Million Six Hundred Sixty-Eight Thousand Four Dollars
($15,668,400) minus the Deposit Amount in immediately available funds
due at Closing;(ii)
    
    Nine Hundred Eighty Six Thousand Four Hundred Dollars
($986,400) by delivery of the Subordinated Promissory Note, substantially in
the form attached hereto as Exhibit E (the Note); and(iii)
    
    the working capital adjustment, if any, pursuant to Section 2.3 below.
   Working Capital Adjustment
 Post-Closing Delivery Closing Date Working
Capital
 Dispute Period Dispute Notice
  7




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Resolution Period
 Position Statement provided however
  8




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less
  more
 Section 2.3(f)
 Section 2.3
 THE CLOSING
 Closing Closing
 Closing Deliveries of Purchaser
 Sections 2.2(a)
  Exhibit B Employment Agreement
 Exhibits C D Consulting
Agreements
 9




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Exhibit
G Bonus Retention Letters
   Closing Deliveries of the Shareholders
       10




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Closing Deliveries of the Company
 SHAREHOLDERS REPRESENTATIONS AND WARRANTIES
  Organization
 Schedule 4.1(a)
 Schedule 4.1(b)
  Authorization
 Validity; Binding Effect
 11




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Noncontravention Schedule 4.4
 Capital Structure
 Schedule 4.5 Stock
 Schedule 4.5
 Schedule 4.5
  Financial Statements
 Schedule 4.6(a) Balance
Sheet Financial Statements
 12




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Schedule 4.6(c)
 Schedule 4.6(d)
 Schedule 4.6(e) Accounts Receivable
  Title to and Sufficiency of Assets
 Schedule 4.7(a) 13
        Schedule 4.7(b)
  Tax Matters
 Litigation; Claims Schedule 4.9 Order
 14




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Schedule 4.9 Schedule 4.9
 Legal Compliance
  Schedule 4.10(b)
  Reports Payors Schedule 4.10(d) 15
        Schedule 4.10(e)
 Schedule 4.10(f)
 HIPAA GLB PHI
 16




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Environmental Laws and Regulations Schedule
4.11
    Permits Schedule 4.12 Permits Schedule 4.12
 Material Contracts Schedule 4.13 Material Contracts
    17




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Schedule 4.13 Section 6.5 Section 6.5
 18




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Labor and Employment Matters Schedule 4.14 Schedule
4.14
 Employee Benefits Schedule 4.15 Benefit Plans Schedule 4.15 Schedule 4.15 Schedule 4.15
 19




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Intellectual Property Schedule 4.16 Intellectual
Property
 Affiliate Transactions Schedule 4.17
 Brokers Fees Schedule 4.18
 Warranty Schedule 4.19 Schedule 4.19 Schedule 4.19
 Intentionally Omitted
 Customers; Suppliers
 Schedule 4.21(a) Customers Schedule 4.20(a)
 Schedule 4.21(b) 20
      Suppliers
 PURCHASERS REPRESENTATIONS AND WARRANTIES
  Organization of Purchaser
 Authorization
 Validity; Binding Effect
 Noncontravention
 Brokers Fees
 Financing Section 2.2
 21
      COVENANTS PENDING CLOSING
  General
 Notices and Consents
 Due Diligence
 The Companys Operation of the Business Prior to Closing
   22
      Section 2.3
 Governmental Permits and Approvals and Third-Party Consents Required Permits
 Press Releases
 Update to Schedules Article IV Updated Schedules and Materials Section 7.1
 Certain Actions
 23
      No Solicitations Section 10.1 Acquisition Transactions
 CONDITIONS PRECEDENT
 The Purchasers Conditions Precedent
 Performance by the Company and the Shareholders Section 3.3
 Accuracy of Representations and Warranties
 No Injunction
 24
      No Material Adverse Effect
 Required Permits
 The Shareholders Conditions Precedent
 Performance by Purchaser Section 3.2
 Accuracy of Representations and Warranties
 No Injunction
 Required Permits
 Employee Bonuses Exhibit
G
 
 Indemnification by the Shareholders Section 8.3 Losses
 25
      Indemnification by Purchaser
 Limitations on Indemnity
 Section 8.1(a) provided however Section 8.3(a) Sections 4.5(a) 4.6(g) 4.8 Section 8.3(a) Sections 8.1(b) 8.1(c)
 provided however Section 4.5(a) Section 4.10 Section 4.8
 26
      Third-Party Claims
 Section 8.1 Section 8.2 Indemnified Person Third-Party Claim Indemnifying Person
 Section
8.4(a) Article VIII
 ADDITIONAL COVENANTS
 General Article VIII
 27
      TERMINATION
 Termination Events
  Section 7.1 Section 7.2
  Effect of Termination Section
10.1
 Termination Fee
 Section 7.1
 Section 7.2 28
        Section
7.1(a) 10.1(a)
 Section 10.1(b)(i) Section 7.1(e) Section 10.1(b)(ii) Section 7.2(d)
 MISCELLANEOUS
 Assignment
 Notices Notice Notice Party
 29
      If to Purchaser (or the
    
    Universal HealthCare Company LLCCompany, after Closing):
    
    10689 N. Pennsylvania St.Indianapolis, IN 46280Facsimile No.: 317-574-6227Attention: Ronald D. Hunterwith a copy to:Sommer BarnardOne Indiana Square, Suite 3500Indianapolis, IN 46204Facsimile No.: 317-713-3699Attention: Robert J. HicksIf to the Shareholders or
    
    Jon R. Kurtinthe Company (prior to
    
    12672 Caminito RadianteClosing:
    
    San Diego, CA 92130Facsimile No.: 858-793-7977with a copy to:Robert W. BlanchardBlanchard, Krasner & French, P.C.800 Silverado Street, Second FloorLa Jolla, Ca. 92037Facsimile No: 858 551-2434
 Section 11.2
 Expenses; Attorneys Fees
   30
      Governing Law; Forum
  AAA ) Section 11.4
 Partial Invalidity
 Execution in Counterparts; Facsimile Signatures
 Entire Agreement; Amendments and Waivers
 31
      No Third Party Beneficiary
  32
      Universal HealthCare Company LLC
    
    In-House Pharmacies, Inc.By:
    
    
    
    By:Ronald D. Hunter, its
    
    Printed:Title:Jon R. KurtinRalph M. Defay
      EXHIBIT G
 Employee Cash Bonuses
 Employee Name:
    
    Bonus:David W. Schneider
    
    $
    328,000.00Philip Curtis
    
    $
    328,000.00Michelle Darnelle
    
    $
    328,000.00Steve W. Kelso
    
    $
    164,000.00Naomi T. Peters
    
    $
    16,400.00Kathleen Pitcher
    
    $
    8,200.00
  Employee Name:
    
    Retention Bonus:David W. Schneider
    
    $
    328,000.00Philip Curtis
    
    $
    328,000.00Michelle Darnelle
    
    $
    328,000.00Steve W. Kelso
    
    $
    164,000.00Naomi T. Peters
    
    $
    16,400.00Kathleen Pitcher
    
    $
    8,200.00