Document:

Asset Purchase Agreement

 

EXHIBIT 10.1

ASSET PURCHASE AGREEMENT

Dated as of May 10, 2006

Among

CONTINUCARE CORPORATION

and

THE OTHER PARTIES LISTED ON THE SIGNATURE PAGES HERETO

 

 

ASSET PURCHASE AGREEMENT

     ASSET PURCHASE AGREEMENT, dated as of May 10, 2006, among Continucare Corporation, a Florida
corporation (“CNU”) CNU Blue 1, Inc., a Florida corporation and a wholly-owned subsidiary
of CNU (“Buyer”), CNU Blue 2, LLC, a Florida limited liability company and a wholly-owned
subsidiary of Buyer (“Buyer LLC”), Miami Dade Health and Rehabilitation Services, Inc., a
Florida corporation (“MDHRS”), Miami Dade Health Centers, Inc., a Florida corporation
(“MDHC”), West Gables Open MRI Services, Inc., a Florida corporation (“West Dade”),
Kent Management Systems, Inc. (“Kent”), Pelu Properties, Inc., a Florida corporation
(“Pelu”), Peluca Investments, LLC, a Florida limited liability company owned by the Owners
(“Peluca”), and Miami Dade Health Centers One, Inc., a Florida corporation (“MDHC
One”, and, collectively with MDHRS, MDHC, West Dade, Kent, Pelu and Peluca, the
“Sellers”), MDHC Red, Inc., a Florida corporation (“Retain”), and each of the
shareholders of each Seller listed on the signature pages hereto (the “Owners”).

     WHEREAS, Sellers are engaged in the business of providing primary health care services and the
selected specialty health care services set forth on Schedule A at five clinical locations
in Miami-Dade County, Florida, and related transportation, diagnostic and administrative support
services (the “Business”); and

     WHEREAS, Buyer is a wholly-owned subsidiary of CNU and Buyer LLC is wholly-owned by Buyer and
is a disregarded entity for federal income tax purposes under Code Section 7701; and

     WHEREAS, Sellers desire to sell, and the Owners desire to cause Sellers to sell to Buyer, and
Buyer desires to purchase from Sellers, on a going concern basis, substantially all of the assets,
properties and business of the Business, all on the terms and subject to the conditions set forth
herein; and

     WHEREAS, immediately after the foregoing transactions, Retain shall assume all of the Excluded
Liabilities from Sellers and thereafter each Seller other than Pelu and Peluca shall merge with and
into Buyer LLC with Buyer LLC as the surviving entity of such mergers (the “Merger”); and

     WHEREAS, contemporaneous with the execution and delivery of this Agreement, certain
shareholders of CNU have entered into agreements (the “Voting Agreements”) to vote their
respective shares of CNU Common Stock in favor of the issuance of the CNU Shares pursuant to this
Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
it is hereby agreed among Sellers, Retain, the Owners, Buyer, Buyer LLC, and CNU as follows:

 

 

ARTICLE I

DEFINITIONS

     1.1. Definitions. In this Agreement, the following terms have the meanings specified
or referred to in this Section 1.1 and shall be equally applicable to both the singular and
plural forms.

     “Accounting Firm” has the meaning set forth in Section 3.2(d).

     “Adjusted EBITDA” has the meaning set forth in Section 7.13.

     “Affiliate” means, with respect to any Person, any other Person who is a Family Member
of such Person or which directly or indirectly controls, is controlled by or is under common
control with such Person.

     “Agreed Adjustments” has the meaning set forth in Section 3.2(c).

     “Agreement and Plan of Merger” means the Agreement and Plan of Merger relating to the
Merger substantially in the form of Exhibit A, as the same may be amended as a result of
any determination pursuant to Section 7.5.

     “Articles of Merger” has the meaning specified in Section 2.5(c).

     “Assumed Liabilities” has the meaning specified in Section 2.3.

     “Auditor” means Moore, Stephens, Lovelace, P.A..

     “Balance Sheet” means the unaudited combined balance sheet of Sellers as of the
Balance Sheet Date included in Schedule 5.4.

     “Balance Sheet Date” means December 31, 2005.

     “Business” has the meaning specified in the recitals to this Agreement.

     “Business Day” means any day that is neither a Saturday, nor a Sunday nor a day on
which state or federally chartered banking institutions in New York, New York are not required to
be open.

     “Business Property” means any real or personal property, plant, building, facility,
structure, equipment or unit, or other asset owned, leased or operated by any Seller in the conduct
of the Business.

     “Buyer” has the meaning specified in the first paragraph of this Agreement.

     “Buyer Ancillary Agreements” means all agreements, instruments and documents being or
to be executed and delivered by Buyer or Buyer LLC under this Agreement or in connection herewith.

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     “Buyer Group Member” means CNU and its Affiliates and their respective successors and
assigns.

     “Buyer LLC” has the meaning specified in the first paragraph of this Agreement.

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. §§ 9601 et seq.

     “Claim Notice” has the meaning specified in Section 8.3(a).

     “Closing” means the closing of the transfer of the Purchased Assets from Sellers to
Buyer and Buyer’s assumption of the Assumed Liabilities.

     “Closing Date” has the meaning specified in Section 4.1.

     “Closing Date Cash Payment” has the meaning specified in Section 3.1.

     “Closing Date Working Capital” has the meaning specified in Section 3.3(a).

     “CNU SEC Documents” has the meaning specified in Section 6.5.

     “CNU Common Stock” means the common stock, par value $.0001 per share, of CNU.

     “CNU Shares” means 20,000,000 shares of CNU Common Stock. If, between the date of
this Agreement and the Closing Date, CNU shall effect any reclassification, recapitalization, stock
split, combination, or exchange of the CNU Common Stock, or a stock dividend or dividend payable in
any other securities shall be declared with a record date occurring within such period, or any
similar event shall have occurred, then the CNU Shares shall be appropriately adjusted to give
effect to such reclassification, recapitalization, stock split, combination, or exchange, dividend
or other event.

     “COBRA Beneficiary” has the meaning specified in Section 7.4(g).

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Copyrights” means United States and foreign copyrights and mask works (as defined in
17 U.S.C. § 901), whether registered or unregistered, and pending applications to register the
same.

     “Court Order” means any judgment, order, award or decree of any foreign, federal,
state, local or other court or tribunal and any award in any arbitration proceeding.

     “Encumbrance” means any lien (statutory or other), claim, charge, security interest,
mortgage, deed of trust, pledge, hypothecation, assignment, conditional sale or other title
retention agreement, preference, priority or other security agreement or preferential

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arrangement of any kind or nature, and any easement, encroachment, covenant, restriction,
right of way, defect in title or other encumbrance of any kind.

     “Environmental Laws” means any federal, state or local law, statute, ordinance, rule
or regulation governing pollution, contamination, protection of the environment, human health or
safety, or safety of employees, sanitation or any matters relating to emissions, discharges,
disseminations, releases or threatened releases of Hazardous Materials into the air (indoor and
outdoor), surface water, groundwater, soil, land surface or subsurface, buildings, facilities, real
or personal property or fixtures or otherwise arising out of, relating to, or resulting from the
manufacture, processing, distribution, use, treatment, storage, disposal, transport, handling,
release or threatened release of Hazardous Materials (collectively “Environmental Matters”) as the
same have been or may be amended from time to time, including, without limitation, CERCLA and any
common law cause of action providing any right or remedy relating to Environmental Matters, and all
applicable judicial and administrative decisions, order and decrees relating to Environmental
Matters.

     “Escrow Agent” means the escrow agent serving under the Escrow Agreement.

     “Escrow Agreement” means the Escrow Agreement substantially in the form of Exhibit
B.

     “Escrow Funds” has the meaning specified in Section 4.2.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Excluded Assets” has the meaning specified in Section 2.2.

     “Excluded Liabilities” has the meaning specified in Section 2.4.

     “Excluded Real Property” has the meaning specified in Section 2.2(b).

     “Expenses” means any and all direct out-of-pocket expenses incurred in connection with
investigating, defending or asserting any claim, action, suit or proceeding incident to any matter
indemnified against hereunder (including court filing fees, court costs, arbitration fees or costs,
witness fees, and reasonable fees and disbursements of legal counsel, investigators, expert
witnesses, consultants, accountants and other professionals); provided, however,
that for purposes of computing the amount of Expenses incurred by any Person, there shall be
deducted an amount equal to the amount of any insurance proceeds, indemnification payments,
contribution payments or reimbursements actually received by such Person or any of such Person’s
Affiliates from Persons other than a Seller Group Member or a Buyer Group Member, as the case may
be, in connection with such Expenses or the circumstances giving rise thereto.

     “Family Member” means any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, and shall include adoptive relationships.

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     “FBCA” means the Florida Business Corporation Act, as amended.

     “GAAP” means United States generally accepted accounting principles, consistently
applied from period to period.

     “Governmental Body” means any foreign, federal, state, local or other governmental
authority or regulatory body.

     “Governmental Permits” has the meaning specified in Section 5.9.

     “Hazardous Materials” means any pollutants, contaminants, toxic or hazardous or
extremely hazardous substances, materials wastes, constituents, compounds, chemicals, natural or
manmade elements or forces (including petroleum or any by-products or fractions thereof, any form
of natural gas, lead, asbestos and asbestos-containing materials (“ACMs”), polychlorinated
biphenyls (“PCBs”) and PCB-containing equipment, radon and other radioactive elements,
ionizing radiation, electromagnetic field radiation and other non-ionizing radiation, infections,
carcinogenic, mutagenic, or etiologic agents, pesticides, defoliants, explosives, flammables,
corrosives and urea formaldehyde foam insulation that are designated as such or regulated by, or
form the basis of liability under, any Environmental Laws.

     “Income Tax” means any Tax relating to net income, gross income, gross receipts or
windfall profit, however characterized.

     “Indemnified Party” has the meaning specified in Section 8.3.

     “Indemnitor” has the meaning specified in Section 8.3.

     “Instrument of Assignment” means the Instrument of Assignment in form and substance
reasonably satisfactory to CNU and Sellers’ Representation.

     “Instrument of Assumption” means the Instrument of Assumption in the form of
Exhibit C.

     “Intellectual Property” means Copyrights, Patent Rights, Trademarks and Trade Secrets.

     “IRS” means the Internal Revenue Service.

     “Knowledge” means (a) when used with respect to Sellers, the knowledge after diligent
inquiry of one or more of the Owners or the persons identified on Schedule 1.1(a) and (b)
when used with respect to Buyer or CNU, the knowledge after diligent inquiry of one or more of
Richard C. Pfenniger, Jr., Fernando Fernandez and Gemma Rosello.

     “Leased Real Property” has the meaning specified in Section 5.11.

     “Loss(es)” means any and all losses, costs, obligations, liabilities, settlement
payments, awards, judgments, fines, penalties, damages, deficiencies or other charges;
provided, however, that for purposes of computing the amount of Loss(es) incurred
by any Person, there

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shall be deducted an amount equal to the amount of any insurance proceeds, indemnification
payments, contribution payments or reimbursements actually received by such Person or any of such
Person’s Affiliates from Persons other than a Seller Group Member or a Buyer Group Member, as the
case may be, in connection with such Loss(es) or the circumstances giving rise thereto; and,
provided, further, however, that “Loss(es)” shall not include any incidental, consequential or
punitive damages or claims for loss of value.

     “Material Adverse Effect” means any effect, change, event, circumstance or condition
which when considered with all other effects, changes, events, circumstances or conditions has
materially and adversely affected or could reasonably be expected to materially and adversely
affect the results of operations, financial condition, assets, liabilities, business or prospects
of CNU and its subsidiaries or the Business, as the case may be, in each case, taken as a whole,
provided, however, that “Material Adverse Effect” shall not include any effect, change, event,
circumstance or condition arising out of or attributable to general economic conditions or events,
circumstances, changes or effects affecting the securities markets.

     “Merger” has the meaning specified in the fourth recital to this Agreement.

     “Owners” has the meaning specified in the first paragraph of this Agreement.

     “Owned Real Property” has the meaning specified in Section 5.10.

     “Owner Employment Agreements” means, collectively, the Employment Agreements, each in
the form of Exhibits D-1, D-2 and D-3, between CNU and each of the Owners.

     “Patent Rights” means United States and foreign patents, provisional patent
applications, patent applications, continuations, continuations-in-part, divisions, reissues,
patent disclosures, industrial designs, inventions (whether or not patentable or reduced to
practice) or improvements thereto.

     “Permitted Encumbrances” means (a) liens for Taxes and other governmental charges and
assessments which are not yet due and payable, (b) liens of landlords and liens of carriers,
warehousemen, mechanics and materialmen and other similar liens imposed by law arising in the
ordinary course of business for sums not yet due and payable, (c) other liens or imperfections on
property which do not adversely affect title to, detract from the value of, or impair the existing
use of, the property affected by such lien or imperfection and (d) the liens listed on Schedule
5.17.

     “Person” means any individual, corporation, partnership, joint venture, limited
liability company, association, joint-stock company, trust, unincorporated organization or
Governmental Body.

     “Physician Employment Agreement” means, collectively, the employment agreements in
CNU’s standard form between CNU and each of the physician employees of the Business (other than Dr.
Cruz).

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     “Pro Rata Liability” means for any indemnifiable claim, one-third multiplied by the
amount of Losses and Expense arising from such claim.

     “Purchase Price” has the meaning specified in Section 3.1.

     “Purchased Assets” has the meaning specified in Section 2.1.

     “RCRA” means the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et
seq.

“Real Property” has the meaning specified in Section 5.11.

     “Real Property Lease” means the First Amendment to the Lease for the Excluded Real
Property between Cruz & Cruz Partnership and MDHRS substantially in the form of Exhibit E.

     “Receivables” has the meaning specified in Section 2.1(c).

     “Registration Rights Agreement” means the Registration Rights Agreement in the form of
Exhibit F.

     “Release” means any release, spill, emission, leaking, pumping, injection, deposit,
disposal, discharge, dispersal, leaching or migration of Hazardous Materials into the indoor or
outdoor environment or into or out of any Business Property, including the movement of Hazardous
Materials through or in the air, soil, surface water, groundwater or Business Property.

     “Remedial Action” means actions required to (i) clean up, remove, treat or in any
other way address Hazardous Materials in the indoor or outdoor environment; (ii) prevent the
Release or threatened Release or minimize the further Release of Hazardous Materials or (iii)
investigate and determine if a remedial response is needed and to design such a response and
post-remedial investigation, monitoring, operation and maintenance and care.

     “Requirements of Law” means any foreign, federal, state and local laws, statutes,
regulations, rules, codes or ordinances enacted, adopted, issued or promulgated by any Governmental
Body (including those pertaining to electrical, building, zoning, environmental and occupational
safety and health requirements) or common law.

     “Retain” has the meaning specified in the first paragraph of this Agreement.

     “Second Instrument of Assumption” means in instrument of Assumption in the form of
Exhibit G.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Seller” has the meaning specified in the first paragraph of this Agreement.

     “Seller Agreements” has the meaning specified in Section 5.21.

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     “Seller Ancillary Agreements” means all agreements, instruments and documents being or
to be executed and delivered by any Seller, Retain or any Owner under this Agreement or in
connection herewith.

     “Seller Excluded Representations” has the meaning specified in Section
8.5(a)(i).

     “Seller Group Member” means Sellers and their respective Affiliates and the Owners and
their respective successors and assigns.

     “Seller’s Compensation Commitments” has the meaning specified in Section
5.18(b).

     “Seller’s ERISA Plans” has the meaning specified in Section 5.18(d).

     “Seller’s Non-ERISA Plans” has the meaning specified in Section 5.18(a).

     “Seller’s Representative” has the meaning specified in Section 9.19.

     “Shareholders’ Meeting” has the meaning specified in Section 7.10.

     “Software” means computer software programs and software systems, including all
databases, compilations, tool sets, compilers, higher level or “proprietary” languages, related
documentation and materials, whether in source code, object code or human readable form.

     “Straddle Period” means any taxable year or period beginning on or before and ending
after the Closing Date.

     “Tax” (and, with correlative meaning, “Taxable”) means: (i) any federal,
state, local or foreign net income, gross income, gross receipts, windfall profit, severance,
property, production, sales, use, license, excise, franchise, employment, payroll, withholding,
alternative or add-on minimum, ad valorem, value-added, transfer, stamp, or environmental
(including taxes under Code Section 59A) tax, or any other tax, custom, duty, governmental fee or
other like assessment or charge of any kind whatsoever, together with any interest or penalty,
addition to tax or additional amount imposed by any Governmental Body; and (ii) any liability for
the payment of amounts with respect to payments of a type described in clause (i) as a result of
being a member of an affiliated, consolidated, combined or unitary group, or as a result of any
obligation under any Tax Sharing Arrangement or Tax indemnity agreement.

     “Tax Return” means any return, report or similar statement required to be filed with
respect to any Taxes (including any attached schedules), including, any information return, claim
for refund, amended return or declaration of estimated Tax.

     “Tax Sharing Arrangement” means any written or unwritten agreement or arrangement for
the allocation or payment of Tax liabilities or payment for Tax benefits with respect to a
consolidated, combined or unitary Tax Return which Tax Return includes any Seller.

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     “Trademarks” means United States, state and foreign trademarks, service marks, trade
names, Internet domain names, designs, logos, slogans and general intangibles of like nature,
whether registered or unregistered, and pending registrations and applications to register the
foregoing.

     “Trade Secrets” means confidential ideas, trade secrets, know-how, developments,
concepts, methods, processes, formulae, technology, algorithms, models, reports, data, databases,
customer lists, supplier lists, mailing lists, business plans, or other proprietary information.

     “Trailing Payments” means all monthly payments received by CNU or any of its
subsidiaries relating to the Business during the fourteen day period commencing the day after the
Closing Date from the third-party payors listed on Schedule 1.1(b), which payments are
consistent with the ordinary course of the Business prior to the Closing Date.

     “Transfer” has the meaning specified in Section 7.6(a).

     “Transferring Employees” has the meaning specified in Section 7.4(a).

     “Warehouse Lease” means the lease substantially in the form of Exhibit I.

     “Working Capital” means the excess of the amount of the current assets of the Business
as of a given date over the amount of the current liabilities of the Business as of such date, each
as calculated in accordance with GAAP; provided, however, that, for purposes of calculating Working
Capital of Sellers, current assets of the Business that are Excluded Assets and current liabilities
of the Business that are Excluded Liabilities shall be disregarded.

     1.2. Interpretation. For purposes of this Agreement, (i) the words “include,”
“includes” and “including” shall be deemed to be followed by the words “without limitation,” (ii)
the word “or” is not exclusive and (iii) the words “herein”, “hereof”, “hereby”, “hereto” and
“hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references
herein: (i) to Articles, Sections, Exhibits and Schedules mean the Articles and Sections of, and
the Exhibits and Schedules attached to, this Agreement; (ii) to an agreement, instrument or other
document means such agreement, instrument or other document as amended, supplemented and modified
from time to time to the extent permitted by the provisions thereof and by this Agreement; and
(iii) to a statute means such statute as amended from time to time and includes any successor
legislation thereto and any regulations promulgated thereunder. The Schedules and Exhibits
referred to herein shall be construed with and as an integral part of this Agreement to the same
extent as if they were set forth verbatim herein. Titles to Articles and headings of Sections are
inserted for convenience of reference only and shall not be deemed a part of or to affect the
meaning or interpretation of this Agreement.

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ARTICLE II

PURCHASE AND SALE

     2.1. Purchased Assets. Upon the terms and subject to the conditions of this
Agreement, on the Closing Date, Sellers shall sell, transfer, assign, convey and deliver to Buyer,
and Buyer shall purchase from Sellers, on a going concern basis, free and clear of all Encumbrances
(except for Permitted Encumbrances), all of the business and operations of Business and the
goodwill associated therewith and all of the assets and properties of Sellers of every kind and
description, wherever located, real, personal or mixed, tangible or intangible, used in the conduct
of the Business and which are transferable by Sellers, as the same shall exist on the Closing Date
(herein collectively called the “Purchased Assets”), including, all right, title and
interest of Sellers in, to and under the following, as the same shall exist on the Closing Date
(other than the Excluded Assets):

     (a) all of the assets reflected on the Balance Sheet, except for Excluded Assets and
except for those assets disposed of or converted into cash after the Balance Sheet Date;

     (b) the real estate listed or described in Schedule 5.10 other than the
Excluded Real Property;

     (c) all accounts receivable of the Business outstanding as of the Closing Date and,
except as provided in Section 2.2(h), all rights of the Business to any refund,
repayment, recoupment or collection from any other Person outstanding or existing as of the
Closing Date (including, without limitation, related party accounts receivable owed by one
of the Sellers to another Seller or any subsidiary of one or more Sellers as of the Closing
Date, amounts due from any third-party payor, or amounts payable in respect of any
contestation or other right of recovery) regardless of whether such right relates to periods
prior to the Closing Date (collectively, the “Receivables”);

     (d) the Governmental Permits listed in Schedule 5.9;

     (e) the real estate leases and leasehold improvements listed or described in
Schedule 5.11;

     (f) the equipment, vehicles, furniture and other personal property listed or referred
to in Schedule 5.13;

     (g) the personal property leases listed in Schedule 5.14;

     (h) the Copyrights, Patent Rights and Trademarks (and all goodwill associated
therewith), and the agreements, contracts, licenses, sublicenses, assignments and
indemnities, listed in Schedule 5.15;

     (i) the contracts, agreements or understandings listed or described in Schedule
5.20;

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     (j) the real property and all improvements thereto listed or described in Schedule
5.10;

     (k) all Trade Secrets and other proprietary or confidential information;

     (l) the Software listed in Schedule 5.15;

     (m) all of Sellers’ rights, claims or causes of action against third parties relating
to the assets, properties, business or operations of any Seller arising out of transactions
occurring prior to the Closing Date;

     (n) all publications, know-how, developments, models, databases, computer files,
training programs, inventories, books and records (including all data and other information
stored on discs, tapes or other media) of Sellers, including sales, advertising and
marketing materials;

     (o) all telephone, telex and telephone facsimile numbers, Internet sites and addresses
and other directory listings utilized by any Seller in the conduct of the Business; and

     (p) all of Sellers’ right, title and interest in and to the name “Miami Dade Health
Centers” and all derivations thereof.

     2.2. Excluded Assets. Notwithstanding the provisions of Section 2.1, the
Purchased Assets shall not include the following (herein referred to as the “Excluded
Assets”):

     (a) any Seller’s rights, claims or causes of action against third parties relating to
the Business which might arise in connection with the discharge by such Seller of the
Excluded Liabilities;

     (b) the real estate listed in Schedule 2.2(b) (the “Excluded Real
Property”);

     (c) all minute books and stock transfer books of each Seller;

     (d) each Seller’s employee benefit agreements, plans or arrangements listed in
Schedule 5.18(a) or Schedule 5.18(d) or otherwise maintained by any Seller
on behalf of persons employed by any Seller.

     (e) all refunds of any Tax which any Seller is entitled to receive pursuant to
Section 7.2;

     (f) all rights of the Sellers and the Owners under this Agreement and the Ancillary
Agreements;

     (g) all books and records (including all data and other information stored on discs,
tapes and other media) of any Seller relating to: (i) Taxes, except as required pursuant to
Section 7.2, and (ii) the Excluded Assets;

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     (h) all rights of Sellers in and to any final retroactive Medicare Risk Adjustment
payments with respect to Humana for the 2004 plan year; and

     (i) those assets identified on Schedule 2.2(i).

     2.3 Assumed Liabilities. On the Closing Date, Buyer shall deliver to Sellers the
Instrument of Assumption pursuant to which Buyer shall assume and agree to discharge the following
obligations and liabilities of Sellers in accordance with their respective terms and subject to the
respective conditions thereof:

     (a) all liabilities and obligations of Sellers reflected on the Balance Sheet (and all
related party liabilities owed by one Seller to another Seller or any subsidiary of one or
more Sellers as of the Closing Date whether or not such liabilities are included on the
Balance Sheet) or incurred since the date of the Balance Sheet in the ordinary course of
business of the Business consistent with past practices to be paid or performed after the
Closing Date including any such liabilities or obligations incurred under (i) the contracts,
licenses, agreements or understandings listed or described in Schedule 5.15 or
5.20 (ii) the real estate leases listed in Schedule 5.11 and (iii) the
personal property leases listed in Schedule 5.14 and other agreements with respect
to the Business not required by the terms of Section 5.20 to be listed in a Schedule
to this Agreement; provided, however, that notwithstanding the foregoing or
anything herein to the contrary, Buyer shall not assume any liabilities and obligations of
any Seller that, but for a breach or default or violation of applicable Requirements of Law
by any Seller or any Owner, would have been paid, performed or otherwise discharged on or
prior to the Closing Date or to the extent the same arise out of any such breach or default;
and

     (b) all liabilities in respect of Taxes for which Buyer is liable pursuant to
Section 7.2;

     (c) any liabilities in respect of the lawsuits, claims, suits, proceedings or
investigations set forth in Schedule 5.22;

     (d) any payables and other liabilities or obligations of any Seller to any of its
employees or Affiliates (other than an Owner) set forth in Schedule 5.18(b); and

     (e) all liabilities applicable to the Business pursuant to the Worker Adjustment and
Retraining Notification Act, effective on February 4, 1989 and as amended from time to time
(the “Warn Act”), resulting from a termination of one or more employees after the
Closing.

All of the foregoing liabilities and obligations to be assumed by Buyer hereunder are referred to
herein as the “Assumed Liabilities.

     2.4 Excluded Liabilities. Buyer shall not assume or be obligated to pay, perform or
otherwise discharge any liability or obligation of any Seller, direct or indirect, known or
unknown, absolute or contingent, not expressly assumed by Buyer pursuant to the Instrument of
Assumption (all such liabilities and obligations not being assumed being herein called the

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     “Excluded Liabilities”) and none of the following shall be Assumed Liabilities for
purposes of this Agreement:

     (a) any liabilities in respect of Taxes for which any Seller is liable pursuant to
Section 7.2;

     (b) any payables and other liabilities or obligations of any Seller to any Owner or
other shareholder of any Seller;

     (c) any costs and expenses incurred by Sellers or Owners incident to its negotiation
and preparation of this Agreement and its performance and compliance with the agreements and
conditions contained herein;

     (d) any liabilities or obligations in respect of any Excluded Assets;

     (e) subject to Section 2.3, any liabilities and obligations related to,
associated with or arising from (i) the occupancy, operation, use or control of any of the
Business Property prior to the Closing Date or (ii) the operation of the Business prior to
the Closing Date, in each case incurred or imposed by any Requirements of Laws, including
liabilities and obligations related to, or arising from, any Release of any Hazardous
Materials on, at or from the Business Property, including all facilities, improvements,
structures and equipment thereon, surface water thereon or adjacent thereto and soil or
groundwater thereunder, or any conditions whatsoever on, under or in the vicinity of such
real property, but only to the extent that any such liabilities or obligations are not
included within the Assumed Liabilities; and

     (f) those liabilities and obligations described on Schedule 2.4.

     2.5 Subsequent Transactions. Immediately following the Closing

     (a) Sellers will distribute the portion of the Purchase Price received by Sellers on
the Closing Date to Owners.

     (b) Retain will deliver to Sellers the Second Instrument of Assumption pursuant to
which Retain shall assume and agree to discharge all obligations and liabilities of Sellers
whether absolute or contingent, asserted or unasserted, known or unknown, liquidated or
nonliquidated (other than the Assumed Liabilities) in accordance with their respective terms
and subject to the respective conditions thereof, including, without limitation, all of the
Excluded Liabilities.

     (c) Each Seller (other than Pelu and Peluca) and Buyer LLC shall thereafter effect the
Merger pursuant to the terms and conditions of the Agreement and Plan of Merger by filing
properly executed Articles of Merger or other appropriate documents with the Secretary of
State of the State of Florida in accordance with the laws of the State of Florida.

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ARTICLE III

PURCHASE PRICE

     3.1. Purchase Price. The purchase price for the Purchased Assets (the “Purchase
Price”) shall be equal to:

     (a) An amount in cash equal to $5,000,000 paid at closing as provided in Section
4.2 as the same may be adjusted pursuant to Section 3.3(f) (the “Closing Date Cash
Payment”); plus

     (b) The CNU Shares; plus

     (c) An amount in cash equal to $1,000,000 paid on the first anniversary of the Closing
Date to Owners in the proportions the Sellers’ Representative may specify in writing to CNU
not less than five (5) business days prior to the first anniversary of the Closing Date;
plus

     (d) Any consideration payable to Sellers or Owners under Section 3.2, 3.3 and
3.4.

     3.2. PIP Receivables. As of the Balance Sheet Date, certain Receivables of the
Business arising from fee-for-service personal injury claims had been fully reserved against in the
Seller Financial Statements (the “Reserved PIP Receivables”). A true, correct and complete
itemized list of the Reserved PIP Receivables as of the date hereof is attached hereto as
Schedule 3.2. In addition to the Purchase Price, CNU will pay to Owners fifty percent of
all payments received by CNU or any of its subsidiaries on account of any Reserved PIP Receivables
during three years from and after the Closing Date. Any payment pursuant to this Sections
3.2 shall be an adjustment to the Purchase Price.

     3.3. Trailing Payments.

     (a) Within fifteen (15) days after the Closing Date Buyer shall (at its own cost)
prepare and deliver to Sellers’ Representative a schedule of the Trailing Payments
identifying the payor, the amount paid, and the date on which such payment was received (the
“Trailing Payments Schedule”). Further, within seventy-five (75) days after the
Closing Date, Buyer shall (at its own cost) prepare, in accordance with GAAP, a calculation
of the Working Capital of Sellers as of the Closing Date (the “Closing Date Working
Capital”) and shall deliver to the Sellers’ Representative: (i) such calculation, and
(ii) Buyer’s determination of the Closing Date Working Capital.

     (b) Promptly following receipt of Buyer’s written calculation of the Closing Date
Working Capital, Sellers and Owners may review the calculation of the Closing Date Working
Capital and the Trailing Payments Schedule and, within twenty (20) days after the date of
such receipt, Sellers’ Representative may deliver to Buyer a certificate (signed by the
Sellers’ Representative) setting forth each of Sellers’ and Owners’ objections to Buyer’s
calculation of the Closing Date Working Capital and/or the Trailing Payments Schedule (the
“Unresolved Objections”), together with a reasonably complete

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and detailed list of the reasons therefor and calculations which, in Sellers’ and
Owner’s view, are necessary to eliminate such Unresolved Objections. If the Sellers’ and
Owners’ Representative does not so object within such twenty (20) day period, Buyer’s
calculation of the Closing Date Working Capital and the Trailing Payments Schedule shall be
final and binding for purposes of this Agreement but shall not limit the representations,
warranties, covenants and agreements of the parties set forth elsewhere in this Agreement.

     (c) If the Sellers’ Representative so objects within such twenty (20) day period, Buyer
and the Sellers’ Representative shall use their reasonable efforts to resolve by written
agreement (the “Agreed Adjustments”) the Unresolved Objections and, if the Sellers’
Representative and Buyer so resolve all the Unresolved Objections, Buyer’s calculation of
the Closing Date Working Capital and/or the Trailing Payments Schedule, as adjusted by the
Agreed Adjustments, shall be final and binding for purposes of this Agreement but shall not
limit the representations, warranties, covenants and agreements of the parties set forth
elsewhere in this Agreement.

     (d) If any Unresolved Objections are not resolved by the Agreed Adjustments within the
twenty (20) day period next following such twenty (20) day period, then Buyer and the
Sellers’ Representative shall submit the remaining Unresolved Objections that have not been
resolved by the Agreed Adjustments to an independent national accounting firm acceptable to
both the Sellers’ Representative and Buyer, and such firm (“Accounting Firm”) shall
be directed by Buyer and the Sellers’ Representative to resolve such remaining Unresolved
Objections (based solely on the presentations by Buyer and by the Sellers’ Representatives
as to whether such remaining Unresolved Objection has been determined in a manner consistent
with this Agreement) as promptly as reasonably practicable and to deliver written notice to
each of Buyer and the Sellers’ Representative setting forth its resolution of such remaining
Unresolved Objections. Buyer’s calculation of the Closing Date Working Capital and the
Trailing Payments Schedule, after giving effect to any Agreed Adjustments and to such
resolution by the Accounting Firm, shall be final and binding as the calculation of the
Closing Date Working Capital and the Trailing Payments Schedule for purposes of this
Agreement but shall not limit the representations, warranties, covenants and agreements of
the parties set forth elsewhere in this Agreement.

     (e) The parties hereto shall make available to Buyer, the Sellers’ Representative and,
if applicable, the Accounting Firm, such books, records and other information as any of the
foregoing may reasonably request to prepare or review the Buyer’s calculation of the Closing
Date Working Capital, the Trailing Payments Schedule or any Unresolved Objections submitted
to the Accounting Firm. The fees and expenses of the Accounting Firm hereunder shall be
paid 50% by Buyer and 50% by Sellers; provided, however, in the event the Accounting Firm
determines that Buyer’s calculation of the Closing Date Working Capital or the amount of the
Trailing Payments reflected on the Trailing Payments Schedule (each as modified by any
Agreed Adjustments) is more than 20% less than the amount of the Closing Date Working
Capital or the amount of the Trailing Payments determined by the Accounting Firm after

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resolving all Unresolved Objections, then Buyer shall pay 100% of the fees and expenses
of the Accounting Firm.

     (f) Within seven (7) days after such determination, Buyer shall pay Owners in such
proportions as the Sellers’ Representative may advise Buyer and CNU in writing, an amount of
cash equal to the lesser of (i) the amount of the Closing Date Working Capital, or (ii)
$2,000,000, or (iii) the amount of the Trailing Payments. Any payment pursuant to this
Section 3.3(f) shall be an adjustment to the Purchase Price.

     3.4. Homestead Capital Expenditures. In addition to the Closing Date Cash Payment, on
the Closing Date Buyer will pay Sellers an amount in cash equal to the amount of all documented,
out-of-pocket capital expenditures arising from the construction and build-out of Peluca’s
Homestead, Florida, facility incurred by Sellers in accordance with the terms of Schedule
7.6. Any payment pursuant to this Section 3.4 shall be an adjustment to the Purchase
Price.

ARTICLE IV

CLOSING

     4.1. Closing Date. The Closing shall be consummated at 10:00 A.M., Miami, Florida,
local time, on the last Business Day of the month in which all conditions precedent to the parties’
respective obligations hereunder have been satisfied or waived by all parties entitled to assert
the benefit of such conditions; provided that all conditions which had not previously been waived
by all parties entitled to assert the benefit of such conditions continue to be satisfied on the
last Business Day of such month, at the offices of Stearns Weaver Miller Weissler Alhadeff &
Sitterson, P.A., Miami, Florida, or at such other date, time or place as may be agreed upon by CNU
and Sellers. The Closing shall be deemed to be effective and title to the Purchased Assets and the
Purchase Price shall be deemed to pass to Buyer and Sellers, respectively, as of 11:59 P.M. on such
date, and such time and date are sometimes referred to herein as the “Closing Date.”

     4.2. Payment on the Closing Date. At Closing (a) Buyer shall pay Sellers the Closing
Date Cash Payment by (i) wire transfer of immediately available funds to Pelu to the account in the
United States and in an amount agreed to in writing by CNU and Sellers’ Representative at least two
business days prior to the Closing (which amount shall not be less than their good faith estimate
of the fair market value of the Purchased Assets of Pelu); provided that if CNU and Sellers’
Representative do not so agree than the amount shall be an amount equal to the appraised value of
the real property owned by Pelu as specified in an appraisal thereof obtained by CNU at its expense
prior to the Closing from an appraiser reasonably acceptable to Sellers’ Representative, (ii) wire
transfer of immediately available funds to Peluca to the account in the United States and in an
amount agreed to in writing by CNU and Sellers’ Representative in writing to Buyer at least two
business days prior to the Closing (which amount shall not be less than their good faith estimate
of the fair market value of the Purchased Assets of Peluca, it being understood that in no event
will the aggregate amount allocated to Pelu and Peluca pursuant to clause (i) above and this clause
(ii) exceed the amount of the Closing Date

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Cash Payment); provided that if CNU and Sellers’ Representative do not so agree than the
amount shall be an amount equal to the appraised value of the real property owned by Peluca as
specified in an appraisal thereof obtained by CNU at its expense prior to the Closing from an
appraiser reasonably acceptable to Sellers’ Representative, and (iii) wire transfer any balance of
the Closing Date Cash Payment in immediately available funds to Sellers to the account(s) in the
United States in the proportions specified by Sellers’ Representative in writing to Buyer at least
two business days prior to the Closing, and (b) CNU shall issue and deliver to Sellers by (i)
depositing 1,500,000 of the CNU Shares (the “Escrow Shares”) into escrow with the Escrow
Agent to be held and disbursed as provided in the Escrow Agreement, and (ii) delivering to Sellers,
in the proportions specified to CNU in writing by the Sellers’ Representative not less than ten
(10) business days prior to the Closing Date, certificates representing the balance of the CNU
Shares.

     4.3. Buyer’s Additional Deliveries. At Closing Buyer shall deliver to Seller all the
following, all of which shall be in form and substance reasonably acceptable to Owners:

     (a) a copy of the respective Articles of Incorporation of CNU and Buyer and the
Articles of Organization of Buyer LLC, certified as of a recent date by the Secretary of
State of the State of Florida;

     (b) a certificate of good standing of each of CNU, Buyer and Buyer LLC, issued as of a
recent date by the Secretary of State of the State of Florida;

     (c) a certificate of the secretary or an assistant secretary of each of CNU, Buyer, and
Buyer LLC, dated the Closing Date, in form and substance reasonably satisfactory to Sellers,
as to (i) the by-laws of CNU or Buyer or Operating Agreement of Buyer LLC, as applicable;
(ii) the resolutions of the Board of Directors of each of CNU and Buyer or Board of Managers
of Buyer LLC, as applicable authorizing the execution and performance of this Agreement and
the transactions contemplated hereby; and (iii) incumbency and signatures of the officers of
CNU, Buyer or Buyer LLC, as applicable executing this Agreement and any Buyer Ancillary
Agreement;

     (d) a certificate, dated the Closing Date and signed by CNU’s Chief Executive Officer,
certifying the satisfaction of the conditions set forth in Sections 4.7(a),
(b), and (c).

     (e) the Instrument of Assumption duly executed by Buyer;

     (f) the Owner Employment Agreements duly executed by CNU;

     (g) the Physician Employment Agreements duly executed by CNU;

     (h) the Registration Rights Agreement duly executed by CNU;

     (i) the Escrow Agreement duly executed by CNU;

     (j) the Agreement and Plan of Merger duly executed by Buyer LLC;

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     (k) the Articles of Merger duly executed by Buyer LLC; and

     (l) all consents, waivers or approvals obtained by CNU and Buyer with respect to the
Purchased Assets or the consummation of the transactions contemplated by this Agreement.

     4.4. Deliveries of Sellers and Owners. At Closing Sellers and the Owners shall
deliver to Buyer all the following all of which shall be reasonably acceptable to CNU:

     (a) a copy of the Articles of Incorporation [or Organization] of each Seller certified
as of a recent date by the Secretary of State of the State of Florida;

     (b) a certificate of good standing of each Seller issued as of a recent date by the
Secretary of State of the State of Florida;

     (c) a certificate of the secretary or an assistant secretary of each Seller and Retain,
dated the Closing Date, in form and substance reasonably satisfactory to CNU, as to (i) no
amendments to the Articles of Incorporation of such Seller or Retain since a specified date;
(ii) the by-laws of such Seller or Retain; (iii) the resolutions of the board of directors
of such Seller or Retain and of the shareholders of Seller or Retain authorizing the
execution and performance of this Agreement and the Seller Ancillary Agreements and the
transactions contemplated hereby and thereby; and (iv) incumbency and signatures of the
officers of such Seller or Retain executing this Agreement and any Seller Ancillary
Agreement;

     (d) the Instrument of Assignment duly executed by Seller;

     (e) the Owner Employment Agreements duly executed by each party thereto (other than
CNU);

     (f) the Physician Employment Agreements duly executed by each physician (other than Dr.
Cruz) who is employed by Seller on the Closing Date or who serves the Business as an
independent contractor on the Closing Date;

     (g) certificates of title or origin (or like documents) with respect to any vehicles or
other equipment included in the Purchased Assets for which a certificate of title or origin
is required in order to transfer title;

     (h) special warranty deeds in form and substance reasonably satisfactory to CNU
transferring title to each parcel of real property listed or described in Schedule
5.10 to Buyer;

     (i) all consents, waivers or approvals obtained by Sellers with respect to the
Purchased Assets or the consummation of the transactions contemplated by this Agreement
together with any amendments to any Seller Agreement that may be obtained pursuant to
Section 7.16;

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     (j) an assignment, in recordable form, with respect to each of the leases of real
estate described in Schedule 5.11, duly executed by the applicable Seller and in
form and substance reasonably satisfactory to Buyer;

     (k) the Registration Rights Agreement duly executed by each party thereto (other than
CNU);

     (l) the Escrow Agreement duly executed by each party thereto (other than CNU);

     (m) the Real Property Lease executed by each party thereto;

     (o) the Second Instrument of Assumption duly executed by all parties thereto;

     (p) the Agreement and Plan of Merger duly executed by all parties thereto (other than
Buyer LLC);

     (q) the Articles of Merger duly executed by all parties thereto (other than Buyer LLC);

     (r) the Warehouse Lease duly executed by all parties thereto; and

     (s) such other bills of sale, assignments and other instruments of transfer or
conveyance as Buyer may reasonably request or as may be otherwise necessary to evidence and
effect the sale, assignment, transfer, conveyance and delivery of the Purchased Assets to
Buyer free and clear of all Encumbrances other than Permitted Encumbrances.

In addition to the above deliveries, Seller shall take all steps and actions as Buyer may
reasonably request or as may otherwise be necessary to put Buyer in actual possession or control of
the Purchased Assets.

     4.5. Mutual Conditions Precedent. The respective obligations of the parties to
consummate the transactions contemplated by this Agreement are subject to the satisfaction at or
prior to the Closing of the following conditions.

     (a) All consents, approvals, orders or authorizations of, or registrations, declarations
or filings with, any Governmental Body required by or with respect to CNU, Buyer, any Seller
or any Owner in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby shall have been obtained or made,
including, without limitation, those set forth on Schedule 5.3 or Schedule
6.2.

     (b) This Agreement, and the transactions contemplated by this Agreement shall, if
necessary, have received the requisite approval and authorization of the shareholders of CNU
in accordance with applicable Requirements of Law and the Articles of Incorporation and
Bylaws of CNU.

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     (c) No Requirement of Law shall have been enacted or promulgated which prohibits the
consummation of the transactions contemplated by this Agreement; and there shall be no order
or injunction of a court of competent jurisdiction in effect precluding consummation of the
transactions contemplated by this Agreement.

     (d) No action, suit or proceeding shall be pending before any Governmental Body wherein
an unfavorable judgment, order, decree, stipulation or injunction would (1) prevent
consummation of any of the transactions contemplated by this Agreement, or (2) cause any of
the transactions contemplated by this Agreement to be rescinded following consummation, and
no such judgment, order, decree, stipulation or injunction shall be in effect.

     (e) There shall not have occurred and be continuing: (1) any suspension of trading in
the CNU Common Stock on the American Stock Exchange, or (2) a declaration of banking
moratorium by federal or New York authorities, or (3) any suspension of payments in respect
of banks in the United States that regularly participate in the market in loans to large
corporations, in each case which would prevent the acceptance for payment or the payment for
CNU Shares accepted for payment hereunder.

     4.6 Conditions Precedent to the Obligations of CNU and Buyer. The respective
obligations of CNU and Buyer to consummate the transactions contemplated by this Agreement are
subject to the satisfaction at or prior to the Closing of the following conditions:

     (a) The representations and warranties of Sellers and the Owners set forth in this
Agreement that are qualified by materiality shall have been true and correct as of the date
of this Agreement and shall be true and correct as of the Closing Date as if made on and as
of the Closing Date, and the representations and warranties of Sellers and the Owners
contained in this Agreement that are not so qualified shall have been true and correct in
all material respects as of the date of this Agreement and shall be true and correct in all
material respects as of the Closing Date as if made on and as of the Closing Date except for
those representations and warranties which address matters only as of a particular date
(which shall remain true and correct as of such date).

     (b) Sellers and the Owners shall have in all material respects performed all
obligations and complied in all material respects with all covenants required by this
Agreement to be performed or complied with by it at or prior to the Closing Date.

     (c) From the date of this Agreement to the Closing Date, there shall not have been any
event or development which results in a Material Adverse Effect upon the Business.

     (d) The Adjusted EBITDA as reflected on the audited Seller Financial Statements shall
be at least $6,000,000.

     (e) Sellers shall have delivered to CNU all written consents, assignments, waivers,
authorizations or other certificates reasonably necessary to consummate the transactions
contemplated hereby, including, without limitation, the approval of

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applicable Governmental Bodies, together with any amendments to any Seller Agreement
that may be obtained pursuant to Section 7.16.

     (f) Sellers shall have received an unqualified opinion on the audited Seller Financial
Statements from the Auditor, and the Seller Financial Statements shall not have been
adjusted in any material respect from the form in which such Seller Financial Statements
were previously provided to CNU and Buyer as a result of the audit.

     (g) No action, suit or proceeding shall be pending before any Governmental Body wherein
an unfavorable judgment, order, decree, stipulation or injunction would affect adversely in
the reasonable judgment of CNU the right of Buyer and CNU to own, operate or control any
material portion of the assets and operations of the Business following the consummation of
the transaction contemplated by this Agreement, and no such judgment, order, decree,
stipulation or injunction shall be in effect.

     (h) CNU shall have obtained an ALTA Title Insurance Commitment (Florida Current
Edition) from a nationally recognized title insurance company licensed to write title
insurance in the State of Florida selected by CNU(the “Title Commitment”) and
policies of title insurance shall have been issued under the Title Commitment at the Closing
reflecting no Encumbrances other than Permitted Encumbrances.

     4.7 Conditions Precedent to the Obligations of Sellers and Owners. The respective
obligations of Sellers and Owners to consummate the transactions contemplated by this Agreement are
subject to the satisfaction at or prior to the Closing of the following conditions.

     (a) The representations and warranties of Buyer and CNU set forth in this Agreement
that are qualified by materiality shall have been true and correct as of the date of this
Agreement and shall be true and correct as of the Closing Date as if made on and as of the
Closing Date, and the representations and warranties of Buyer and CNU contained in this
Agreement that are not so qualified shall have been true and correct in all material
respects as of the date of this Agreement and shall be true and correct in all material
respects as of the Closing Date as if made on and as of the Closing Date except, in each
case, for those representations and warranties which address matters only as of a particular
date (which shall remain true and correct or true and correct in all material respects, as
applicable, as of such date).

     (b) Each of Buyer and CNU shall have in all material respects performed all obligations
and complied with in all material respects all covenants required by this Agreement to be
performed or complied with by it at or prior to the Closing Date.

     (c) From the date of this Agreement to the Closing Date, there shall not have been any
event or development which results in a Material Adverse Effect upon CNU.

     (d) Luis Cruz, M.D. shall have been appointed to the Board of Directors of CNU.

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     (e) Owners shall have been released from any personal guaranties of any indebtedness of
the Business included in the Assumed Liabilities that are identified on Schedule
5.27 as guaranteed by one or more of the Owners.

     (f) CNU policies of directors and officers’ insurance as in effect on the date hereof
shall continue to be in full force and effect on the Closing Date or CNU shall have
substituted policies of directors’ and officers’ insurance with terms and conditions that,
taken as a whole, are not materially less favorable to CNU’s directors and officers which
substitute policies shall be in full force and effect on the Closing Date.

     (g) No action, suit or proceeding shall be pending before any Governmental Body wherein
an unfavorable judgment, order, decree, stipulation or injunction would in the reasonable
judgment of Owners impose material limitations on the ability of Owners to acquire or hold,
or exercise full rights of ownership of, any CNU Shares, including the right to vote such
CNU Shares on all matters properly presented to the shareholders of CNU.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF SELLERS

AND THE OWNERS 

     As an inducement to Buyer and CNU to enter into this Agreement and to consummate the
transactions contemplated hereby, each Seller and each Owner jointly and severally represents and
warrants to Buyer and CNU and agree as set forth in this Article V, subject in each case to the
exceptions and limitations specifically set forth therein:

     5.1. Organization of Sellers. Each Seller and Retain is a corporation duly organized,
validly existing and in good standing under the laws of the State of Florida. Each Seller and
Retain is duly qualified to transact business and is in good standing in the State of Florida,
which is the only jurisdiction in which the ownership or leasing of their respective assets or
their conduct of the Business requires such qualification. No other jurisdiction has demanded,
requested or otherwise indicated that any Seller is required so to qualify on account of the
ownership or leasing of their respective assets or their respective conduct of the Business. Each
Seller and Retain has full power and authority to own or lease and to operate and use their
respective assets and to carry on the Business as now conducted. The Owners own all of the issued
and outstanding capital stock of each Seller and Retain in the respective proportions set forth in
Schedule 5.1.

     True and complete copies of the Articles of Incorporation and bylaws of each Seller and Retain
and all amendments thereto have been delivered to Buyer.

     5.2. Subsidiaries and Investments. Except as set forth on Schedule 5.2, no Seller,
directly or indirectly, (i) owns, of record or beneficially, any outstanding voting securities or
other equity interests in any corporation, partnership, joint venture or other entity or (ii)
controls any corporation, partnership, joint venture or other entity. Except for MD HRS, MDMC and
MDMC One, no Owner or Seller owns any interest in any Person the name of which

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includes or which does business under the name “Miami Dade Health Centers” or any derivation
thereof.

     5.3. Authority of Seller.

     (a) Each Seller and Retain has full power and authority to execute, deliver and perform
this Agreement and all of the Seller Ancillary Agreements to be executed, delivered and
performed by such Seller or Retain. The execution, delivery and performance of this
Agreement and such Seller Ancillary Agreements by such Seller or Retain have been duly
authorized and approved by such Seller’s or Retain’s board of directors and the shareholders
of Seller or Retain and do not require any further authorization or consent of Seller or
Retain or their respective shareholders. This Agreement has been duly authorized, executed
and delivered by each Seller and Retain and is the legal, valid and binding obligation of
each Seller and Retain enforceable in accordance with its terms, and each of the Seller
Ancillary Agreements to be executed, delivered and performed by Sellers or Retain has been
or will be duly authorized by each Seller or Retain and is, or upon execution shall be, a
legal, valid and binding obligation of each Seller or Retain enforceable in accordance with
its terms, except as such enforceability may be subject to the laws of general application
relating to bankruptcy, insolvency and the relief of debtors and rules of law governing
specific performance, injunctive relief or other equitable remedies.

     (b) Each Owner has the legal right, power and capacity to execute, deliver and perform
this Agreement and all of the Seller Ancillary Agreements to be executed, delivered and
performed by such Owner. The execution, delivery and performance of this Agreement and each
such Seller Ancillary Agreement by such Owner do not require any further authorization or
consent of any Seller or Retain, or any other Owner. This Agreement has been duly executed
and delivered by each Owner and is the legal, valid and binding obligation of such Owner
enforceable in accordance with its terms, and each of the Seller Ancillary Agreements to be
executed, delivered and performed by such Owner is, or upon execution shall be, a legal,
valid and binding obligation of such Owner enforceable in accordance with its terms, except
as such enforceability may be subject to the laws of general application relating to
bankruptcy, insolvency and the relief of debtors and rules of law governing specific
performance, injunctive relief or other equitable remedies.

     (c) Except as set forth in Schedule 5.3, neither the execution and delivery of
this Agreement or any of the Seller Ancillary Agreements, the consummation of any of the
transactions contemplated hereby or thereby nor compliance with or fulfillment of the terms,
conditions and provisions hereof or thereof will:

     (i) conflict with, result in a breach of the terms, conditions or provisions of, or
constitute a default, an event of default or an event creating rights of acceleration,
termination or cancellation or a loss of rights under, or result in the creation or
imposition of any Encumbrance upon any of the Purchased Assets, under (A) the Articles of
Incorporation or the bylaws of any Seller or Retain, (B) any Seller Agreement, (C) any other
material note, instrument, agreement, mortgage, lease, license, franchise, permit or

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other authorization, right, restriction or obligation to which any Seller or Retain or
any Owner is a party or any of the Purchased Assets is subject or by which any Seller,
Retain or any Owner is bound, (D) any Court Order to which any Seller, Retain or any Owner
is a party or any of the Purchased Assets is subject or by which any Seller, Retain or any
Owner is bound, or (E) any Requirement of Law generally recognized as applicable to any
Seller, Retain, any Owner or the Purchased Assets; or

     (ii) require the approval, consent, authorization or act of, or the making by any
Seller, Retain or any Owner of any declaration, filing or registration with, any Person or
Governmental Body.

     5.4. Financial Statements.

     (a) Attached as Schedule 5.4 are true and complete copies of (a) the combined
balance sheets of the Sellers as of December 31, 2003, 2004, and 2005, and the combined
statements of income, cash flows and retained earnings of the Sellers for the years then
ended, including any related notes (collectively, the “Seller Financial
Statements”). Except as indicated on Schedule 5.4, the Seller Financial
Statements fairly present in all material respects Sellers’ combined financial condition,
assets, liabilities, equity and the results of their operations at the dates and for the
periods specified in those statements in accordance with GAAP consistently applied with
prior periods.

     (b) The Sellers maintain a system of internal accounting controls that is sufficient,
to the Knowledge of Sellers, to provide reasonable assurance that: (a) transactions are
executed in accordance with management’s general or specific authorization; (b) transactions
are recorded as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain accountability for assets; (c) access to assets is permitted only in
accordance with management’s general or specific authorization; and (d) the recorded
accountability for inventory is compared with existing inventory at reasonable intervals and
appropriate action is taken with respect to any differences, it being acknowledged by Buyer
and CNU that Sellers have not (i) heretofore been subject to the provisions of the
Sarbanes-Oxley Act of 2002 or (ii) engaged consultants or undertaken procedures customarily
undertaken by public companies subject to the Sarbanes-Oxley Act of 2002.

     5.5. Operations Since Balance Sheet Date.

     (a) Except as set forth in Schedule 5.5, since the Balance Sheet Date, there
has been

     (i) no material adverse change in the Purchased Assets nor any Material Adverse Effect
on the Business and, to the Knowledge of Sellers, no fact or condition exists or is
contemplated or threatened which would reasonably be expected to cause such a change or
effect in the future;

     (ii) no material reduction in the amount of Sellers’ Working Capital through the date
of this Agreement or in the amount of cash held by Sellers through the date of this
Agreement; and

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     (iii) no damage, destruction, loss or claim, whether or not covered by insurance, or
condemnation or other taking adversely affecting any material portion of the Purchased
Assets or the Business.

     (b) Except as set forth in Schedule 5.5, since the Balance Sheet Date, Sellers
have conducted the Business only in the ordinary course of business consistent with past
practice; provided that nothing herein shall prohibit any of the Sellers from distributing,
selling, transferring or otherwise dealing with any or all of the Excluded Assets or
assuming, satisfying or otherwise dealing with the Excluded Liabilities; provided that no
such distribution, sale, transfer, assumption, satisfaction or dealing could reasonably be
expected to: (i) create or result in any liability or obligation of any Buyer Group Member
or any liability or obligation that would be an Assumed Liability, (ii) cause any
representation or warranty of Sellers and the Owners set forth herein to be untrue or
incorrect, (iii) violate the terms of any covenant or obligation of Sellers or Owners
hereunder, or (iv) cause any of the conditions to the Closing not to be satisfied. Without
limiting the generality of the foregoing, since the Balance Sheet Date, except as set forth
in Schedule 5.5, no Seller has:

     (i) sold, leased (as lessor), transferred or otherwise disposed of (including any
transfers from any Seller to any Owner or to any of their respective Affiliates), or
mortgaged or pledged, or imposed or suffered to be imposed any Encumbrance on, any of the
assets reflected on the Balance Sheet or any assets acquired by any Seller after the Balance
Sheet Date, except for personal property sold or otherwise disposed of for fair value in the
ordinary course of the Business consistent with past practice and except for Permitted
Encumbrances;

     (ii) cancelled any debts owed to or claims held by such Seller (including the
settlement of any claims or litigation) other than in the ordinary course of the Business
consistent with past practice;

     (iii) created, incurred, assumed or guaranteed any indebtedness for borrowed money or
entered into, as lessee, any capitalized lease obligations (as defined by GAAP);

     (iv) accelerated or delayed collection of notes or accounts receivable generated by the
Business in advance of or beyond their regular due dates or the dates when the same would
have been collected in the ordinary course of the Business consistent with past practice;

     (v) delayed or accelerated payment of any account payable or other liability of the
Business beyond or in advance of its due date or the date when such liability would have
been paid in the ordinary course of the Business consistent with past practice;

     (vi) made any payment of cash or distribution of assets to any Owner or any of their
respective Affiliates through the date of this Agreement, other than in the ordinary course
of the Business consistent with past practice;

     (vii) instituted any increase in any compensation payable to any employee of such
Seller or in any profit-sharing, bonus, incentive, deferred compensation, insurance,

25

 

pension, retirement, medical, hospital, disability, welfare or other benefits made
available to employees of such Seller, other than in the ordinary course of the Business
consistent with past practice;

     (viii) prepared or filed any Tax Return inconsistent with past practice or, on any such
Tax Return, taken any position, made any election, or adopted any method that is
inconsistent with positions taken, elections made or methods used in preparing or filing
similar Tax Returns in prior periods (including positions, elections or methods which would
have the effect of deferring income to periods for which Buyer is liable pursuant to
Section 7.2(a) or accelerating deductions to periods for which a Seller is liable
pursuant to Section 7.2(a));

     (ix) made any material change in the accounting principles and practices used by such
Seller from those applied in the preparation of the Balance Sheet and the related statements
of income and cash flow for the period then ended;

     (x) declared or paid any dividends on or made any other distributions (whether in cash,
stock or property) in respect of any of its capital stock, or split, combined or
reclassified any of its capital stock or issued or authorized the issuance of any other
securities in respect of, in lieu of or in substitution for shares of capital stock of such
Seller;

     (xi) redeemed, repurchased or otherwise acquire, directly or indirectly, recapitalized
or reclassified any shares of its capital stock;

     (xii) issued, delivered or sold or authorized or proposed the issuance, delivery or
sale of, any shares of its capital stock of any class or securities convertible into, or
subscriptions, rights, warrants or options to acquire, or entered into other agreements or
commitments of any character obligating it to issue any such shares or other convertible
securities;

     (xiii) caused, permitted or proposed any amendments to its Articles of Incorporation or
bylaws;

     (xiv) made any capital expenditure involving more than $25,000;

     (xv) taken any other action which could reasonably be expected to cause any of the
conditions to the Closing, not to be satisfied; or

     (xvi) agreed to do any of the foregoing.

     5.6. No Undisclosed Liabilities. Except as set forth on the Balance Sheet or in
Schedule 5.6, no Seller is subject to any liability (including unasserted claims, whether
known or unknown), whether absolute, contingent, accrued or otherwise, which is not shown or which
is in excess of amounts shown or reserved for in the Balance Sheet, other than immaterial
liabilities incurred after the Balance Sheet Date in the ordinary course of the Business consistent
with past practice to Persons other than Affiliates of any Seller or any Owner, and to Sellers’
Knowledge

26

 

there is no reasonable basis for assertion against any Seller of any such liability,
commitment or obligation.

     5.7. Taxes. Except as set forth in Schedule 5.7:

     (a) Each Seller has filed all Tax Returns required to be filed by any applicable
Requirement of Law prior to the date hereof. All such Tax Returns were (and as to Tax
Returns not filed as of the date hereof, will be) true, complete and correct in all material
respects and filed on a timely basis. Each Seller has paid all Taxes that are due and
payable, or claimed or asserted by any taxing authority to be due and payable, from such
Seller for the periods covered by the Tax Returns.

     (b) No jurisdiction (whether within or without the United States) in which a Seller has
not filed a specific Tax Return has asserted that such Seller is required to file such Tax
Return in such jurisdiction. Schedule 5.7 lists all states and nations in which a
Seller files any Tax Returns and indicates in the case of Income Tax or franchise tax
filings whether such filings are made on a consolidated, combined or unitary basis and the
state allocation factors for the most recent taxable year for which filings have been made.

     (c) Each Seller has established (and until the Closing Date will maintain) on its books
and records reserves adequate to pay all Taxes not yet due and payable and such reserves are
clearly identified as reserves for current Taxes.

     (d) There are no Tax Encumbrances upon the assets of any Seller except Encumbrances for
Taxes not yet due.

     (e) Each Seller has complied (and until the Closing Date will comply) with all
applicable laws, rules, and regulations relating to the payment and withholding of Taxes
(including withholding and reporting requirements under Code §§1441 through 1464, 3401
through 3406, 6041 and 6049 and similar provisions under any other laws) and has, within the
time and in the manner prescribed by all applicable Requirements of Law, withheld from
employee wages and paid over to the proper Governmental Bodies all required amounts.

     (f) No Seller has requested (and no request has been made on its behalf) any extension
of time within which to file any Tax Return which extension is currently effective. No
Seller has executed any outstanding waivers or comparable consents regarding the application
of the statute of limitations for any Taxes or Tax Returns (and no extensions have been
executed on their behalf). The statute of limitations for the assessment of all Taxes has
expired for all applicable Tax Returns of each seller through December 31, 2001.

     (g) No deficiency for any Taxes has been suggested, proposed, asserted or assessed
against any Seller that has not been resolved and paid in full. No audits or other
administrative proceedings or court proceedings are presently pending or to the Knowledge of
Sellers threatened with regard to any Taxes or Tax Returns of the Seller and all prior
adjustments of federal Tax liability resulting from the resolution of any audit

27

 

or proposed deficiency have been reported to appropriate state and local taxing
authorities and all resulting Taxes payable to state and local taxing authorities have been
paid.

     (h) There is no power of attorney currently in force with respect to any Tax matter
involving any Seller.

     (i) No Seller has received any written ruling of a taxing authority relating to Taxes,
or any other written and legally binding agreement with a taxing authority relating to
Taxes.

     (j) Each Seller has made available (or, in the case of Tax Returns to be filed on or
before the Closing Date, will make available) to Buyer and CNU complete and accurate copies
of all Tax Returns and associated work papers filed by or on behalf of each Seller for all
taxable years ending on or prior to the Closing Date.

     (k) No agreement as to indemnification for, contribution to, or payment of Taxes exists
between any Seller and any other Person, including pursuant to any tax sharing agreement,
lease agreement, purchase or sale agreement, partnership agreement or any other agreement.

     (l) No Seller has any liability for Taxes of any Person under Treasury Regulation
1.1502-6 (or any similar provision of any state, local or foreign law), or as a transferee
or successor, or by contract or otherwise.

     (m) No Seller is or has been a “distributing corporation” or a “controlled corporation”
within the meaning of Code section 355.

     (n) No Seller is a party to any agreement, contract, or arrangement that would result,
separately or in the aggregate, in the payment of any “excess parachute payments” within the
meaning of Code Section 280G or in the disallowance of any deductions pursuant to Code
Section 162(m).

     (o) No property of any Seller is property that such Seller or any party to this
transaction is or will be required to treat as being owned by another person pursuant to the
provisions of Code Section 168(f)(8) (as in effect prior to its amendment by the Tax Reform
Act of 1986) or is “tax-exempt use property” or “tax-exempt bond financed property” within
the meaning of Code Section 168,

     (p) No Seller is required to include in income any adjustment pursuant to Code §481(a)
by reason of a voluntary change in accounting method initiated by such Seller, and the IRS
has not proposed an adjustment or change in accounting method. No income of any Seller that
economically accrued prior to the Closing will be recognized as taxable income after the
Closing as a result of such Seller having been a party to an installment sale, an open
transaction or otherwise.

     (q) Each Seller which is a corporation has continuously since its incorporation
qualified as an C Corporation for federal income tax purposes except for Pelu which is an

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S Corporation within the meaning of Code Section 1361 and will continue to be treated
as an S Corporation until the Closing. Each state in which each Seller is required to file
tax returns respects such Seller’s status as a C or S Corporation, as applicable, and
conforms to the federal Income Tax treatment of S Corporations.

     (r) No Seller has participated in or cooperated with any international boycott with in
the meaning of Code section 999.

     (s) Other than Pelu, no Seller is a United States real property holding corporation
within the meaning of Code section 897(c)(2).

     (t) Each Seller has disclosed on its federal Income Tax Return all positions taken
therein that could give rise to a substantial understatement of federal Income Tax within
the meaning of Code section 6662. No Seller has engaged in any reportable transactions that
were required to be disclosed pursuant to Treasury Regulation section 1.6011-4. No sales
Taxes, use Taxes, real estate transfer Taxes or other similar Taxes will be imposed on the
transfer of the Purchased Assets or the assumption of the Assumed Liabilities pursuant to
this Agreement; or subject to a so-called “TRAC lease” under Section 7701(h) of the Code (or
any predecessor provision).

     5.8. Availability of Assets.

     (a) Except as set forth in Schedule 5.8 and except for the Excluded Assets, the
Purchased Assets constitute all the assets used in the Business (including all books,
records, computers and computer programs and data processing systems) and, taken as a whole,
are in good operating condition and repair (subject to normal wear and tear) and serviceable
condition and are, to the Knowledge of Sellers, suitable for the uses for which they are
being used.

     (b) Schedule 5.8 sets forth a description of all material services provided by
Sellers or any Affiliate of Sellers utilizing either (i) assets not included in the
Purchased Assets or (ii) employees not listed in Schedule 5.18(j) and the manner in
which the costs of providing such services have been allocated to the Business.

     5.9. Governmental Permits.

     (a) Each Seller owns, holds or possesses all material licenses, franchises, permits,
privileges, immunities, approvals and other authorizations from a Governmental Body which
are necessary to entitle such Seller to own or lease, operate and use its respective
Purchased Assets and to carry on and conduct the Business as currently conducted by such
Seller (collectively, the “Governmental Permits”). Schedule 5.9 sets forth
a list and brief description of each Governmental Permit. Complete and correct copies of
all of the Governmental Permits have heretofore been delivered or made available to Buyer by
Sellers.

     (b) Except as set forth in Schedule 5.9, (i) each Seller has fulfilled and
performed in all material respects its obligations under each of the Governmental Permits,
and no event has occurred or condition or state of facts exists which constitutes

29

 

or, after notice or lapse of time or both, would constitute a material breach or
default under any such Governmental Permit or which permits or, after notice or lapse of
time or both, would permit revocation or termination of any such Governmental Permit, or
which would reasonably be expected to adversely affect the rights of any Seller under any
such Governmental Permit; (ii) no notice of cancellation, of default or of any dispute
concerning any Governmental Permit, or of any event, condition or state of facts described
in the preceding clause, has been received by, or is known to, any Seller or any Owner; and
(iii) each of the Governmental Permits is valid, subsisting and in full force and effect.

     5.10. Real Property. Attached as Schedule 5.10 is a true and complete list
and legal description of each parcel of real property owned by any Seller and used in or relating
to the Business, except for the Excluded Real Property listed on Schedule 2.2. Complete
and correct copies of any current policies of title insurance, surveys and recorded documents with
respect to each such parcel of real property listed on Schedule 5.10 (collectively, the
“Real Property”) have hereto been delivered to Buyer.

     5.11. Real Property Leases. Schedule 5.11 sets forth a list and brief
description of each lease or similar agreement (showing the parties thereto, annual rental,
expiration date, renewal and purchase options, if any, the improvements thereon, the uses being
made thereof, and the location of the real property covered by such lease or other agreement) under
which any Seller is lessee of, or holds or operates, any real property owned by any third Person
and used in or relating to the Business (the “Leased Real Property” and, together with the
Owned Real Property, the “Real Property”). Except as set forth in Schedule 5.11,
Seller has the right to quiet enjoyment of all the Leased Real Property for the full term of the
lease or similar agreement (and any renewal option related thereto) relating thereto, and the
leasehold or other interest of such Seller in the Leased Real Property is not subject or
subordinate to any Encumbrance except for Permitted Encumbrances. Complete and correct copies of
any title opinions, surveys and appraisals in Sellers’ possession or any policies of title
insurance currently in force and in the possession of any Seller with respect to each parcel of
Leased Real Property have heretofore been delivered by Seller to Buyer.

     5.12. Condemnation. To the Knowledge of Sellers, neither the whole nor any part of
the Real Property or the Business is subject to any pending suit for condemnation or other taking
by any public authority, and, to the Knowledge of Sellers, no such condemnation or other taking is
threatened or contemplated.

     5.13. Personal Property. Schedule 5.13 contains a list of all equipment,
vehicles, furniture and other personal property owned by any Seller having an original cost of
$25,000 or more and used in or relating to the Business.

     5.14. Personal Property Leases. Schedule 5.14 contains a list and description
of each lease or other agreement or right, whether written or oral (showing in each case the annual
rental, the expiration date thereof and a brief description of the property covered), under which
any Seller is lessee of, or holds or operates, any machinery, equipment, vehicle or other tangible
personal property owned by a third Person.

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     5.15. Intellectual Property; Software.

     (a) Schedule 5.15 contains a list and description (showing in each case the
registered or other owner, expiration date and registration or application number, if any)
of all Copyrights, Patents and Trademarks owned by, licensed to or used by Seller.

     (b) Schedule 5.15 contains a list and description (showing in each case any
owner, licensor or licensee) of all Software owned by, licensed to or used by any Seller;
provided that Schedule 5.15 does not list mass market Software licensed to
Seller that is available in consumer retail stores or otherwise commercially available and
subject to “shrink-wrap” or “click-through” license agreements.

     (c) Schedule 5.15 contains a list and description of all agreements, contracts,
licenses, sublicenses, assignments and indemnities to which any Seller is a party which
relate to (i) any Copyrights, Patent Rights or Trademarks listed in Schedule 5.15,
(ii) any Trade Secrets owned by, licensed to or used by any Seller or (iii) any Software
listed in Schedule 5.15 (collectively, the “Software Agreements”).

     (d) Except as disclosed in Schedule 5.15, Sellers either: (i) own the entire
right, title and interest in and to the Intellectual Property included in the Purchased
Assets, free and clear of any Encumbrance (other than Permitted Encumbrances), or (ii) have
the perpetual, royalty-free right to use the same and to use all Software listed in
Schedule 5.15.

     5.16. Accounts Receivable. All Receivables have arisen from bona fide transactions by
Sellers in the ordinary course of the Business consistent with past practice. Except for
Receivables collected since the Balance Sheet Date, all Receivables reflected in the Balance Sheet
are good and collectible in the ordinary course of the Business at the aggregate recorded amounts
thereof, net of any applicable allowance for doubtful accounts reflected in the Balance Sheet.

     5.17. Title to Property. Except for (a) liens for Taxes and other governmental
charges and assessments which are not yet due and payable, (b) liens of landlords and liens of
carriers, warehousemen, mechanics and materialmen and other similar liens imposed by law arising in
the ordinary course of business for sums not yet due and payable, (c) other liens or imperfections
on property which do not adversely affect title to, detract from the value of, or impair the
existing use of, the property affected by such lien or imperfection and (d) as set forth on
Schedule 5.17, Sellers have good and marketable title to all of the Purchased Assets, free
and clear of all Encumbrances. Upon delivery to Buyer on the Closing Date of the instruments of
transfer contemplated by Section 4.4, Sellers will thereby transfer to Buyer good and
marketable title to the Purchased Assets, subject to no Encumbrances, except for Permitted
Encumbrances.

     5.18. Employees and Related Agreements; ERISA.

     (a) Schedule 5.18(a) sets forth a list of each retirement, savings, thrift,
deferred compensation, severance, stock ownership, stock purchase, stock option,
performance, bonus, incentive, vacation or holiday pay, hospitalization or other medical,
disability, life or other insurance, or other welfare, retiree welfare or benefit plan,
policy,

31

 

trust, understanding or arrangement of any kind, whether written or oral, to which
Seller is a party or by which it is bound or pursuant to which it may be required to make
any payment at any time, other than plans of the type described in Section 5.18(d)
(“Sellers’ Non-ERISA Plans”).

     (b) Schedule 5.18(b) sets forth a list of each (i) employee collective
bargaining agreement, and (ii) agreement, commitment, understanding, plan, policy or
arrangement of any kind, whether written or oral, with or for the benefit of any current or
former officer, director, employee, subcontractor or consultant (including each employment,
compensation, deferred compensation, severance, supplemental pension, life insurance,
termination or consulting agreement or arrangement and any agreements or arrangements
associated with a change in control), to which Seller is a party or by which it is bound or
pursuant to which it may be required to make any payment at any time, other than Sellers’
Non-ERISA Plans and other than plans of the type described in Section 5.18(d)
(“Sellers’ Compensation Commitments”).

     (c) Copies of all written Seller’s Non-ERISA Plans and Sellers’ Compensation
Commitments and of all related insurance and annuity policies and contracts and other
documents with respect to each Sellers’ Non-ERISA Plan and Seller’s Compensation Commitment
have been delivered or made available to Buyer. Schedules 5.18(a) and
5.18(b), respectively, contain a description of all oral Sellers’ Non-ERISA Plans
and Seller’s Compensation Commitments.

     (d) Schedule 5.18(d) sets forth a list of each “employee pension benefit plan”
(as such term is defined in Section 3(2) of ERISA) and each “employee welfare
benefit plan” (as such term is defined in Section 3(1) of ERISA) covering any employee or
former employee of Seller (collectively, “Sellers’ ERISA Plans”). Except as set
forth in Schedule 5.18(d), (i) Seller has never maintained any employee pension
benefit plan and (ii) Seller has never been required to contribute to any “multiemployer
plan” (as such term is defined in Section 3(37) of ERISA).

     (e) Seller has delivered or made available to Buyer, with respect to each Sellers’
ERISA Plan, correct and complete copies, where applicable, of (i) all plan documents and
amendments, trust agreements and insurance and annuity contracts and policies, (ii) with
respect to any ERISA Plan designed to comply with Section 401(a) of the Code, the most
recent IRS determination letter, (iii) the Annual Reports (Form 5500 Series) and
accompanying schedules and actuarial reports, as filed, for the most recently completed
three plan years, (iv) the summary plan description currently in use and any other summary
plan description in use at any time since January 1, 2003, (v) discrimination testing
reports performed during the last two plan years and a description of any corrective action
taken in response to any such reports and (vi) copies of correspondence from the IRS, the
Department of Labor or the Pension Benefit Guaranty Corporation regarding any plan audit or
investigation or any intent to conduct a plan audit or investigation.

     (f) Each Sellers’ ERISA Plan which is intended to qualify under Section 401(a) of the
Code has received a favorable determination letter from the IRS that such

32

 

Plan is so qualified under the Code; and to the Knowledge of Sellers, no circumstance
exists that might cause such Plan to cease being so qualified.

     (g) Each Sellers’ ERISA Plan complies in all material respects, and has been
administered to comply in all material respects, with all Requirements of Law, and there has
been no notice issued by any Governmental Body questioning or challenging such compliance,
and there are no actions, suits or claims (other than routine claims for benefits) pending
or, to the Knowledge of Seller, threatened involving any such Plan or the assets of any such
Plan.

     (h) Seller has no obligations under any of Sellers’ Non-ERISA Plans, Seller’s
Compensation Commitments or Sellers’ ERISA Plans or otherwise to provide health or death
benefits to or in respect of former employees of Seller, except as specifically required by
the continuation requirements of Part 6 of Title I of ERISA.

     (i) Seller has no liability of any kind whatsoever, whether direct, indirect,
contingent or otherwise, (i) on account of any violation of the health care requirements of
Part 6 of Title I of ERISA or Section 4980B of the Code, (ii) under Section 502(i) or
Section 502(l) of ERISA or Section 4975 of the Code, (iii) under Section 302 of ERISA or
Section 412 of the Code or (iv) under Title IV of ERISA. Assuming that each of Seller’s
ERISA Benefit Plans that is subject to Title IV of ERISA were terminated as of the Closing
Date, Seller would have no liability under Title IV of ERISA as a result of such
termination.

     (j) Schedule 5.18(j) contains: (i) a list of all employees of each Seller as
of January 1, 2006; (ii) the positions, service dates, position dates, and, if any, leave
status (including a designation, if applicable, of the type of leave and whether the leave
is paid or unpaid) of each such employee; (iii) the then current annual compensation of, and
a description of the fringe benefits (other than those generally available to employees of
each Seller) provided by each Seller to any such employees; (iv) a list of all present or
former employees of each Seller paid in excess of $50,000 in calendar year 2005 who have
terminated or given notice of their intention to terminate their relationship with any
Seller since January 1, 2006; (v) a list of any increase, effective after January 1, 2006,
in the rate of compensation of any employees or commission salespersons; and (vi) a list of
all substantial changes in job assignments of, or arrangements with, or promotions or
appointments of, any employees or commission salespersons whose compensation as of January
1, 2006 was in excess of $50,000 per annum.

     (k) Except as set forth in Schedule 5.18(k), (i) to the Knowledge of Sellers,
no employee, officer, director or Affiliate of any Seller has any direct or indirect
interests in the business of competitors, suppliers or customers of any Seller, and (ii)
there are no situations with respect to the Business that involved or involves (A) the use
of any corporate funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to political activity; (B) the making of any direct or indirect unlawful
payments to government officials or others from corporate funds or the establishment or
maintenance of any unlawful or unrecorded funds; (C) the violation of any of the provisions
of The Foreign Corrupt Practices Act of 1977, or any rules or regulations

33

 

promulgated thereunder; or (D) the receipt of any illegal discounts or rebates or any
other violation of the antitrust laws.

     5.19. Employee Relations. Except as set forth in Schedule 5.19, Sellers have
complied in all material respects with all applicable Requirements of Law relating to prices,
wages, hours, discrimination in employment and collective bargaining and to the operation of the
Business and is not liable for any arrears of wages or any Taxes or penalties for failure to comply
in any material respect with any of the foregoing. Sellers’ relations with employees of the
Business are satisfactory. No Seller is a party to, and the Business is not affected by or, to the
Knowledge of Sellers threatened with, any dispute or controversy with a union or with respect to
unionization or collective bargaining involving the employees of the Business. No Seller is
adversely affected by any dispute or controversy with a union or with respect to unionization or
collective bargaining involving any customer of the Business. Schedule 5.19 sets forth a
description of any union organizing or election activities involving any non-union employees of the
Business that have occurred since January 1, 2001 or, to the Knowledge of the Sellers, are
threatened as of the date hereof. No Seller has Knowledge that any employee of the Business will
terminate his or her employment as a result of the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby.

     5.20. Contracts. Except as set forth in Schedule 5.20 and except for any of
the following that can be cancelled or terminated by a Seller without penalty or premium on not
more than thirty (30) days’ notice, no Seller is a party to or bound by:

     (a) any contract for the purchase, sale or lease of real property;

     (b) any contract for the purchase of services, materials, supplies or equipment which
involved the payment of more than $25,000 in 2005, which Sellers anticipate will involve the
payment of more than $25,000 in 2006 or which extends beyond January 1, 2007;

     (c) any contract for the sale of goods or services which involved the payment of more
than $25,000 in 2005, which Sellers anticipate will involve the payment of more than $25,000
in 2006 or which extends beyond January 1, 2007;

     (d) any contract for the purchase, licensing or development of Software to be used by
any Seller, except for mass market software licensed to a Seller that is available in
consumer retail stores or otherwise commercially available and subject to “shrink-wrap” or
“click-through” license agreements;

     (e) any consignment, distributor, dealer, manufacturers representative, sales agency,
advertising representative or advertising or public relations contract;

     (f) any guarantee of the obligations of patients, suppliers, third party payors,
officers, directors, employees, Owners, Affiliates or others;

     (g) any agreement which provides for, or relates to, the incurrence or guarantee by any
Seller of debt for borrowed money (including, without limitation, any interest rate or
foreign currency swap, cap, collar, hedge or insurance agreements, or

34

 

options or forwards on such agreements, or other similar agreements for the purpose of
managing the interest rate and/or foreign exchange risk associated with its financing);

     (h) any contract not made in the ordinary course of the Business consistent with past
practice;

     (i) any contract or agreement which provides for a most favored pricing provision for
any patient, supplier or third party payor of any Seller;

     (j) any contract which limits or restricts where any Seller may conduct the Business;

     (k) any partnership agreements, joint venture agreements or strategic alliance
agreements; or

     (l) any other contract, agreement, commitment, understanding or instrument which is
material to any Seller or to the Business.

     5.21. Status of Contracts. Except as set forth in Schedule 5.21, each of the
leases, contracts and other agreements listed in Schedules 5.11, 5.14,
5.15, 5.18 and 5.20 (collectively, the “Seller Agreements”)
constitutes a valid and binding obligation of the parties thereto and, to the Knowledge of Sellers,
is in full force and effect and (except as set forth in Schedule 5.3) may be transferred to
Buyer pursuant to this Agreement and will continue in full force and effect thereafter, in each
case without breaching the terms thereof or resulting in the forfeiture or impairment of any rights
thereunder and without the consent, approval or act of, or the making of any filing with, any other
party. Each Seller has fulfilled and performed in all material respects its respective obligations
under each of the Seller Agreements, and no Seller is in, or alleged by any other party thereto to
be in, breach or default in any material respect under, nor is there or is there alleged to be any
basis for termination of, any of the Seller Agreements and, to the Knowledge of Sellers, no other
party to any of the Seller Agreements has breached or defaulted thereunder in any material respect,
and, to the Knowledge of Sellers, no event has occurred and no condition or state of facts exists
which, with the passage of time or the giving of notice or both, would constitute such a default or
breach by Sellers or by any such other party. No Seller is currently renegotiating any of the
Seller Agreements or paying damages in lieu of performance thereunder. Complete and correct copies
of each of the Seller Agreements have heretofore been delivered or made available to Buyer.
Sellers have provided Buyer and CNU with true, correct and complete copies of all written reports,
audits and compliance investigations conducted by or on behalf of any party to any Seller Agreement
regarding Sellers’ compliance with the requirements of such Seller Agreement or applicable
Requirements of Law.

     5.22. No Violation, Litigation or Regulatory Action. Except as set forth in
Schedule 5.22:

     (a) the Purchased Assets and their current uses comply in all material respects with
all applicable Requirements of Law and Court Orders;

     (b) Sellers have complied in all material respects with all Requirements of Law and
Court Orders which are applicable to the Purchased Assets or the Business and

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no Seller nor any Owner has been excluded or debarred from providing services to a
Governmental Body or to any customer that participates in a program sponsored by a
Governmental Body;

     (c) there are no lawsuits, claims, suits, proceedings or investigations pending or, to
the Knowledge of Sellers, threatened against or affecting any Seller nor, to the Knowledge
of Sellers, is there any basis for any of the same, and there are no lawsuits, suits or
proceedings pending in which any Seller is the plaintiff or claimant;

     (d) there is no action, suit or proceeding pending or, to the Knowledge of Sellers,
threatened which questions the legality or propriety of the transactions contemplated by
this Agreement; and

     (e) no Seller nor any of the Purchased Assets are subject to any Court Order.

     5.23. Environmental Matters. Except as set forth in Schedule 5.23:

     (a) to the Knowledge of Sellers, no Seller nor any of the present Business Property or
operations, or the past Business Property or operations, is subject to any on-going
investigation by, order from or agreement with any Person (including without limitation any
prior owner or operator of Business Property) respecting (i) any Environmental Law, (ii) any
Remedial Action or (iii) any claim of Losses and Expenses arising from the Release or
threatened Release of Hazardous Materials into the environment;

     (b) no Seller is subject to any judicial or administrative proceeding, order, judgment,
decree or settlement alleging or addressing a violation of or liability under any
Environmental Law;

     (c) no Seller has: (A) reported a Release of a Hazardous Material; (B) filed a notice
related to the presence, generation, transportation or release of any Hazardous Material
pursuant to any Environmental Laws; (C) filed notice, pursuant to any Environmental Laws,
indicating the generation of any regulated Hazardous Material; or (D) filed any notice under
any applicable Requirements of Laws reporting a substantial violation of any applicable
Requirements of Laws;

     (d) to the Knowledge of Sellers, there is not now nor has there ever been, on or in any
Business Property: (A) any treatment, recycling, storage or disposal of any Hazardous
Material that requires or required a Governmental Permit; or (B) any above ground or
underground storage tank or surface impoundment or landfill or waste pile.

     (e) to the Knowledge of Sellers, there is not now nor has there ever been on or in any
Business Property any polychlorinated biphenyls (PCB) used in pigments, hydraulic oils,
electrical transformers or other equipment;

     (f) no Seller nor any Owner has received any written notice or claim to the effect that
it is or may be liable to any Person as a result of the Release or threatened Release of
Hazardous Materials; and

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     (g) to the Knowledge of Sellers, any asbestos-containing material which is on or part
of any Business Property is in good repair according to the current standards and practices
governing such material, and its presence or condition does not violate any currently
applicable Requirements of Laws.

     5.24. Insurance. Schedule 5.24 sets forth a list and brief description of all
policies of insurance maintained, owned or held by any Seller on the date hereof. Each Seller has
complied in all material respects with each of such insurance policies and has not failed to give
any notice or present any claim thereunder in a due and timely manner. Sellers have delivered or
made available to Buyer correct and complete copies of the most recent inspection reports, if any,
received from insurance underwriters as to the condition of the Purchased Assets.

     5.25. Regulation.

     (a) As of the date of this Agreement, each of MDHC, MDHRS and West Dade, as required,
is (i) certified for participation or enrollment in the Medicare and Medicaid programs; (ii)
has a current and valid provider contract with the Medicare and Medicaid programs; and (iii)
is in substantial compliance with the conditions of participation of those programs. Except
as otherwise set forth in Schedule 5.25, no Seller has received notice from the
regulatory authorities which enforce the statutory or regulatory provisions in respect of
either the Medicare or the Medicaid program of any pending or threatened investigations, and
to Sellers’ Knowledge, no investigations or surveys are pending or threatened. No Seller is
a party to, or the beneficiary of, any agreement, contract, understanding or business
venture with any provider or referral source which violates the Medicare/Medicaid Fraud and
Abuse amendments or any regulations thereunder adopted by the U.S. Department of Health and
Human Services or any regulations adopted by any other federal or state agency.

     (b) No Seller nor, to the Knowledge of Sellers, any physician or other health care
professional employee of the Business has engaged in any activities which are prohibited
under 42 U.S.C. § 1320a-7b, or the regulations promulgated thereunder pursuant to such
statutes, or related state or local statutes or regulations, or which are prohibited by
rules of professional conduct, including the following: (a) knowingly and willfully making
or causing to be made a false statement or representation of a fact in any application for
any benefit or payment; (b) knowingly and willfully making or causing to be made any false
statement or representation of a fact for use in determining rights to any benefit or
payment; (c) failing to disclose knowledge by a claimant of the occurrence of any event
affecting the initial or continued right to any benefit or payment on its own behalf or on
behalf of another, with intent to fraudulently secure such benefit or payment; and (d)
knowingly and willfully soliciting or receiving any remuneration (including any kickback,
bribe, or rebate), directly or indirectly, overtly or covertly, in cash or in kind or
offering to pay or receive such remuneration: (A) in return for referring an individual to a
Person for the furnishing or arranging for the furnishing of any item or service for which
payment may be made in whole or in part by Medicare or Medicaid; or (B) in return for
purchasing, leasing, or ordering or arranging for or recommending purchasing, leasing, or
ordering any good, facility, service or item for which payment may be made in whole or in
part by Medicare or Medicaid. Each Seller has at all times complied with the

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applicable Requirements of Law which prohibit physicians who have an ownership,
investment or beneficial interest in certain health care facilities from referring patients
to such facilities for the provisions of designated and other health services. Each Seller
has filed all reports required to be filed pursuant to any applicable Requirement of Law
regarding compensation arrangements and financial relationships between a physician and an
entity to which the physician refers patients.

     (c) Schedule 5.25 lists and describes all plans and other efforts of the
Business with respect to the practice locations to comply with the Health Insurance
Portability and Accountability Act of 1996 (“HIPAA”), including the final regulations
promulgated thereunder, whether such plans and efforts have been put in place or are in
process. Schedule 5.25 includes, but is not limited in any manner whatsoever, to any
privacy compliance plan of the Business in place or in development, and any plans, analyses
or budgets relating to information systems including but not limited to necessary purchases,
upgrades or modifications to effect HIPAA compliance.

     5.26. Securities Law Matters. Each of the Owners and each Seller acknowledges that
(a) he or it has been furnished with such documents, materials and information as he, she or it
deems necessary or appropriate for evaluating an investment in CNU (including, without limitation,
all reports filed by CNU under Section 13 or 15(d) of the Exchange Act since June 30, 2005, CNU’s
Annual Report to Shareholders for the fiscal year ended June 30, 2005, CNU’s proxy statement dated
October 28, 2005 and the description of CNU’s common stock contained in the Registration Statement
on Form 8-A filed by CNU with the Securities and Exchange Commission on September 14, 1996) and
confirms that he, she or it has made such further investigation of CNU as was deemed appropriate to
evaluate the merits and risks of this investment and (b) he or it has had the opportunity to ask
questions of, and receive answers from, the directors and officers of CNU and persons acting on
CNU’s behalf, concerning the terms and conditions of the offering of the CNU Shares. Each Seller
and each Owner is acquiring the CNU Shares solely for his or its own account for purposes of
investment, and no Seller or Owner has any intention of selling the CNU Shares in violation of the
federal securities laws or any applicable state securities laws or the Registration Rights
Agreement; provided that, notwithstanding the foregoing, each Seller intends to distribute
the CNU Shares immediately prior to the Merger to its shareholders in compliance with federal
securities laws and any applicable state securities laws and as otherwise permitted by the
Registration Rights Agreement. Each of the Owners and each Seller is an “accredited investor” as
such term is defined in Rule 501(a) of Regulation D under the Securities Act and has such knowledge
and experience in financial and business matters that he is capable of evaluating the merits and
risks of an investment in the CNU Shares. Each of the Owners and each Seller understands that the
CNU Shares have not been registered under the Securities Act, or applicable state securities laws,
and are being issued in reliance on exemptions for private offerings contained in Sections 3(b) and
4(2) of the Securities Act and the provisions of Regulation D promulgated thereunder and in
reliance on exemptions from the registration requirements of certain state securities laws.
Because the CNU Shares have not been registered under the Securities Act or applicable state
securities laws, the CNU Shares may not be re-offered or resold except through a valid and
effective registration statement or pursuant to a valid exemption from the registration
requirements under the Securities Act and applicable state securities laws. Each of the Owners and
each Seller is fully aware (i) of the restrictions on sale, transferability and assignment of the

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CNU Shares as described in this Agreement and the Registration Rights Agreement, (ii) that
each Seller and the Owners must bear the economic risk of the investment in CNU for an indefinite
period of time and (iii) that because the sale of the CNU Shares has not been registered, an
investment in the CNU Shares may not be readily liquidated. Each of the Owners and each Seller
acknowledges that each certificate representing the CNU Shares shall bear a legend with respect to
the restrictions described in this Section 5.26 and the Registration Rights Agreement.

     5.27.  Related Party Transactions. Except as set forth on Schedule 5.27, no
Owner, nor any Seller nor any of their respective directors or officers, nor, to the Knowledge of
Sellers, any employee of any Seller (a) owns, directly or indirectly, any interest or has made any
investment in any Person which is a competitor, potential competitor, or supplier of any Seller or
any third-party payor with which any Seller has a business relationship; (b) owns, directly or
indirectly, in whole or in part, any property, asset or right, real, personal or mixed, tangible or
intangible which is utilized in the operation of the Business as presently conducted but which is
not included within the Purchased Assets; or (c) has an interest or investment in or is, directly
or indirectly, a party to any Seller Agreement or other arrangement or relationship (whether or not
in writing) pertaining or relating to the Business. Schedule 5.27 also identifies each
liability or other item of indebtedness owed by any Seller included in the Assumed Liabilities the
repayment of which is personally guaranteed by any Owner

     5.28. No Finder. No Seller nor any Owner nor any Person acting on their behalf has
paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or
on account of the transactions contemplated by this Agreement for which Buyer or CNU would be
liable after the Closing.

     5.29. Disclosure. None of the representations or warranties of Sellers or any Owner
contained herein, none of the information contained in the Schedules referred to in Article
V, and none of the other written information or documents furnished to Buyer or any of its
representatives by any Seller or any Owner or their representatives pursuant to the terms of this
Agreement, is false or misleading in any material respect or omits to state a fact herein or
therein necessary to make the statements herein or therein not misleading in any material respect.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF BUYER, BUYER LLC AND CNU

     As an inducement to Sellers and the Owners to enter into this Agreement and to consummate the
transactions contemplated hereby, Buyer, Buyer LLC and CNU hereby jointly and severally represent
and warrant to Sellers and the Owners and agree as follows:

     6.1. Organization of Buyer, Buyer LLC and CNU. Each of Buyer, Buyer LLC and CNU is a
corporation or limited liability company as applicable duly organized, validly existing and in good
standing under the laws of the State of Florida and has full power and authority to own or lease
and to operate and use its respective properties and assets and to carry on its respective business
as now conducted.

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     6.2. Authority of Buyer, Buyer LLC and CNU.

     (a) Each of Buyer, Buyer, LLC and CNU has full power and authority to execute, deliver
and perform this Agreement and all of the Buyer Ancillary Agreements. The execution,
delivery and performance of this Agreement and the Buyer Ancillary Agreements by Buyer,
Buyer LLC and CNU have been duly authorized and approved by Buyer’s and CNU’s board of
directors or board of managers, as applicable, and, except for the approval of CNU’s
shareholders, do not require any further corporate authorization or consent of Buyer, Buyer
LLC or CNU. This Agreement has been duly authorized, executed and delivered by Buyer, Buyer
LLC and CNU and is a legal, valid and binding agreement of Buyer, Buyer LLC or CNU
enforceable in accordance with its terms, and each of the Buyer Ancillary Agreements has
been or will be duly authorized by Buyer, Buyer LLC and CNU and is, or upon execution will
be, a legal, valid and binding obligation of Buyer, Buyer LLC and CNU enforceable in
accordance with its terms, except as such enforceability may be subject to the laws of
general application relating to bankruptcy, insolvency and the relief of debtors and rules
of law governing specific performance, injunctive relief or other equitable remedies.

     (b) Except as set forth in Schedule 6.2, neither the execution and delivery of
this Agreement or any of the Buyer Ancillary Agreements the consummation of any of the
transactions contemplated hereby or thereby, nor compliance with or fulfillment of the
terms, conditions and provisions hereof or thereof will:

     (i) conflict with, result in a material breach of the terms, conditions or provisions
of, or constitute a default, an event of default or an event creating rights of
acceleration, termination or cancellation or a loss of rights under (A) the Articles of
Incorporation, Articles of Organization or Bylaws or Operating Agreement of Buyer, Buyer LLC
or CNU, (B) any material note, instrument, agreement, mortgage, lease, license, franchise,
permit or other authorization, right, restriction or obligation to which Buyer, Buyer LLC or
CNU is a party or any of its properties is subject or by which Buyer, Buyer LLC or CNU is
bound, (C) any Court Order to which Buyer, Buyer LLC or CNU is a party or by which it is
bound or (D) any Requirement of Law affecting Buyer, Buyer LLC or CNU; or

     (ii) require the approval, consent, authorization or act of, or the making by Buyer,
Buyer LLC or CNU of any declaration, filing or registration with, any Person.

     6.3. No Finder. Neither Buyer, Buyer LLC nor CNU nor any Person acting on their
behalf has paid or become obligated to pay any fee or commission to any broker, finder or
intermediary for or on account of the transactions contemplated by this Agreement for which any
Seller or any Owner would be liable after the Closing.

     6.4. Capital Stock of Buyer. Subject in all respects to the terms and conditions of
this Agreement and the consummation of the transactions contemplated by this Agreement in
accordance within the terms and conditions of this Agreement, the CNU Shares to be issued pursuant
to this Agreement (i) will be duly authorized, validly issued, fully paid and non-assessable and
not subject to preemptive rights created by statute, or by CNU’s Articles of

40

 

Incorporation or bylaws, and (ii) will, when issued, be listed on the American Stock Exchange.
CNU has reserved for issuance a sufficient number of authorized and unissued shares of its common
stock to complete the transactions contemplated by this Agreement. Other than (w) pursuant to any
applicable Requirements of Law, (x) this Agreement, (y) any agreement, arrangement or understanding
to which any Seller or any Owner may be a party, or (z) as a result of any Seller or any Owner
being an Affiliate of CNU at any time, there are no restrictions upon the resale of the CNU Shares
by any Seller or any Owner. Except for this Agreement or as disclosed in the CNU SEC Documents,
CNU has no commitments to issue any capital stock prior to the Closing.

     6.5. SEC Filings; Financial Statements.

     (a) CNU has delivered or made available to Sellers accurate and complete copies of each
report and definitive proxy statement filed by CNU with the Securities and Exchange
Commission under the Exchange Act since June 30, 2004 (the “CNU SEC Documents”).
All statements, reports, schedules, forms and other documents required to have been filed by
CNU with the Securities and Exchange Commission under the Exchange Act since June 30, 2004
have been so filed. As of the time it was filed with the Securities and Exchange Commission
(or, if amended or superseded by a filing prior to the date of this Agreement, then on the
date of such filing): (i) each of the CNU SEC Documents complied in all material respects
with the applicable requirements of the Exchange Act; and (ii) none of the CNU SEC Documents
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 the
light of the circumstances under which they were made, not misleading.

     (b) The consolidated financial statements of CNU contained in the CNU SEC Documents:
(i) complied as to form in all material respects with the published rules and regulations of
the Securities and Exchange Commission applicable thereto; (ii) were prepared in accordance
with GAAP throughout the periods covered (except as may be indicated in the notes to such
financial statements and, in the case of unaudited statements, as permitted by Form 10-Q of
the Securities and Exchange Commission, and except that unaudited financial statements may
not contain footnotes and are subject to normal and recurring year-end audit adjustments
which will not, individually or in the aggregate, be material in amount); and (iii) fairly
present the consolidated financial position of CNU and its consolidated subsidiaries as of
the respective dates thereof and the consolidated results of operations of CNU and its
consolidated subsidiaries for the periods covered thereby.

     6.6. Absence of Changes. Since December 31, 2005, there has been no Material Adverse
Effect on CNU, nor, except as disclosed in the CNU SEC Documents, has CNU;

     (a) conducted its business other than in the ordinary course of business consistent
with past practice;

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     (b) made any material change in the accounting principles and practices used by CNU;

     (c) declared or paid any dividends on or made any other distributions (whether in cash,
stock or property) in respect of any of its capital stock, or split, combined or
reclassified any of the CNU Common Stock or issued or authorized the issuance of any other
securities in respect of, in lieu of or in substitution for shares of CNU Common Stock;

     (d) other than upon the exercise of securities that are exercisable or exchangeable for
or convertible into shares of CNU Common Stock, issued, delivered or sold or authorized or
proposed the issuance, delivery or sale of, any shares of CNU Common Stock of any class or
securities convertible into, or subscriptions, rights, warrants or options to acquire, or
entered into other agreements or commitments of any character obligating it to issue any
such shares or other convertible securities;

     (e) caused, permitted or proposed any amendments to its Articles of Incorporation or
bylaws;

     (f) created, incurred, assumed or guaranteed any indebtedness for borrowed money or
entered into, as lessee, any capitalized lease obligations (as defined by GAAP) other than
in the ordinary course of business consistent with past practices;

     (g) taken any other action which could reasonably be expected to cause any of the
conditions to the Closing not to be satisfied; or

     (h) agreed to do any of the foregoing.

     6.7. No Action, Suit or Proceedings. Except as set forth in the CNU SEC Documents,
there is no action, suit or proceeding pending against CNU, Buyer or Buyer LLC or, to the Knowledge
of CNU, threatened which questions the legality or propriety of the transactions contemplated by
this Agreement.

     6.8. No Violation, Litigation or Regulatory Action. Except as set forth in the CNU
SEC Documents or Schedule 6.8:

     (a) CNU, Buyer and Buyer, LLC have complied in all material respects with all
Requirements of Law and Court Orders which are applicable to their business and neither CNU,
Buyer nor Buyer, LLC has been excluded or debarred from providing services to a Governmental
Body or to any customer that participates in a program sponsored by a Governmental Body;

     (b) there are no lawsuits, claims, suits, proceedings or investigations pending or, to
the Knowledge of CNU and Buyer, threatened against or affecting CNU, and Buyer nor, to the
Knowledge of CNU and Buyer, is there any basis for any of the same, and there are no
lawsuits, suits or proceedings pending in which CNU, Buyer or Buyer, LLC is the plaintiff or
claimant; and

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     6.9 Employee Relations. Except as set forth in the CNU SEC Documents or Schedule
6.9, CNU and Buyer have complied in all material respects with all applicable Requirements of
Law relating to prices, wages, hours, discrimination in employment and collective bargaining and to
the operation of their business and are not liable for any arrears of wages or any Taxes or
penalties for failure to comply in any material respect with any of the foregoing. CNU and Buyer’s
relations with employees of their business are satisfactory. Neither CNU nor Buyer is a party to,
and their business is not affected by or, to the Knowledge of CNU and Buyer threatened with, any
dispute or controversy with a union or with respect to unionization or collective bargaining
involving the employees of the Business. Neither CNU nor Buyer is adversely affected by any
dispute or controversy with a union or with respect to unionization or collective bargaining
involving any customer of their business. Schedule 6.9 sets forth a description of any
union organizing or election activities involving any non-union employees of their business that
have occurred since January 1, 2001 or, to the Knowledge of CNU and Buyer, are threatened as of the
date hereof.

     6.10 Regulation.

     (a) As of the date of this Agreement, each of CNU, Buyer and all of its other
subsidiaries and affiliates, to the extent applicable, as required, is (i) certified for
participation or enrollment in the Medicare programs; (ii) has a current and valid provider
contract with the Medicare programs; and (iii) is in substantial compliance with the
conditions of participation of those programs. Except as otherwise set forth in the CNU SEC
Documents or Schedule 6.10, none of such parties has received notice from the
regulatory authorities which enforce the statutory or regulatory provisions in respect of
either the Medicare program of any pending or threatened investigations, and to CNU’s and
Buyer’s Knowledge, no investigations or surveys are pending or threatened. None of such
parties is a party to, or the beneficiary of, any agreement, contract, understanding or
business venture with any provider or referral source which violates the Medicare/Medicaid
Fraud and Abuse amendments or any regulations thereunder adopted by the U.S. Department of
Health and Human Services or any regulations adopted by any other federal or state agency.

     (b) Neither of CNU, Buyer, its other subsidiaries and affiliates, nor, to the Knowledge
of CNU, any physician or other health care professional employee of their business has
engaged in any activities which are prohibited under 42 U.S.C. § 1320a-7b, or the
regulations promulgated thereunder pursuant to such statutes, or related state or local
statutes or regulations, or which are prohibited by rules of professional conduct, including
the following: (i) knowingly and willfully making or causing to be made a false statement
or representation of a fact in any application for any benefit or payment; (ii) knowingly
and willfully making or causing to be made any false statement or representation of a fact
for use in determining rights to any benefit or payment; (iii) failing to disclose knowledge
by a claimant of the occurrence of any event affecting the initial or continued right to any
benefit or payment on its own behalf or on behalf of another, with intent to fraudulently
secure such benefit or payment; and (iv) knowingly and willfully soliciting or receiving any
remuneration (including any kickback, bribe, or rebate), directly or indirectly, overtly or
covertly, in cash or in kind or offering to pay or receive such remuneration: (A) in return
for referring an individual to a Person for the

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furnishing or arranging for the furnishing of any item or service for which payment may
be made in whole or in part by Medicare; or (B) in return for purchasing, leasing, or
ordering or arranging for or recommending purchasing, leasing, or ordering any good,
facility, service or item for which payment may be made in whole or in part by Medicare. CNU
and Buyer have at all times complied with the applicable Requirements of Law which prohibit
physicians who have an ownership, investment or beneficial interest in certain health care
facilities from referring patients to such facilities for the provisions of designated and
other health services. Each of CNU, Buyer and all of its other subsidiaries and affiliates,
as may be applicable, has filed all reports required to be filed pursuant to any applicable
Requirement of Law regarding compensation arrangements and financial relationships between a
physician and an entity to which the physician refers patients.

     6.11. Insurance. CNU has delivered or made available to Sellers correct and complete
copies of the policies of directors’ and officers’ insurance maintained, owned or held by CNU on
the date hereof. CNU has complied in all material respects with its policies of directors’ and
officers’ insurance and has not failed to give any notice or present any claim thereunder in a due
and timely manner.

     6.12. Disclosure. None of the representations or warranties of CNU, Buyer and Buyer
LLC contained herein, none of the information contained in the Schedules referred to in Article
VI, and none of the other written information or documents furnished to Sellers, Owners or any
of their representatives by CNU, Buyer or Buyer LLC or their representatives pursuant to the terms
of this Agreement, is false or misleading in any material respect or omits to state a fact herein
or therein necessary to make the statements herein or therein not misleading in any material
respect.

ARTICLE VII

ADDITIONAL AGREEMENTS

     7.1. Covenant Not to Compete or Solicit Business.

     (a) In furtherance of the sale of the Purchased Assets and the Business to Buyer and
CNU hereunder by virtue of the transactions contemplated hereby and more effectively to
protect the value and goodwill of the Purchased Assets and the Business so sold, each Seller
and each Owner covenants and agrees that, for a period ending on the fifth anniversary of
the Closing Date, neither such Seller or such Owner nor any of their respective Affiliates
will:

     (i) directly or indirectly anywhere in West Palm Beach, Broward, Miami-Dade,
Hillsborough or Pinellas County, Florida, (whether as principal, agent, consultant,
independent contractor, partner or otherwise) own, manage, operate, control, participate in,
perform services for, or otherwise carry on, a business the same as the Business or
competitive with CNU’s business of providing primary health care services and physician
practice management services or competitive with any other line of business that CNU may
engage in or pursue at any time that any Owner is either employed by or serving on

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the Board of Directors of CNU (it being understood by the parties hereto that the
Business is not limited to any particular region of the aforementioned counties and that
such business may be engaged in effectively from any location in any of such counties),
other than on behalf of or for the benefit of Buyer or CNU;

     (ii) induce or attempt to persuade any employee, consultant, agent or customer of any
Seller to terminate such employment, consulting, agency or business relationship in order to
enter into any such relationship on behalf of any other business organization in competition
with the Business;

     (iii) conduct business under or own any interest in any Person the name of which
includes or which does business under the name “Miami Dade Health Centers” or any derivation
thereof; or

provided, however, that (A) nothing set forth in this Section 7.1
shall prohibit any Seller or any Owner or their respective Affiliates from owning not in
excess of 5% in the aggregate of any class of capital stock of any corporation if such stock
is publicly traded and listed on any national or regional stock exchange or on the NASDAQ
national market and (B) no Owner shall be responsible for any breach of this Section
7.1 by any other Owner. In addition, each Seller and each Owner covenants and agrees
that it will not, and will not permit any of its Affiliates to, divulge or make use of any
trade secrets or other confidential information of the Business other than to disclose such
secrets and information to Buyer or CNU, (ii) as otherwise required by any Requirement of
Law or judicial process; provided that, to the extent reasonably practicable the affected
Sellers or Owners shall first provide CNU with notice of such Requirement of Law or judicial
process and an opportunity to seek a protective order maintaining the confidentiality of
such information, or (iii) in connection with professional services rendered to the Sellers
or Owners provided the recipient of such information has a bona fide need to know such
information in connection with such professional services and is bound to a duty of
confidentiality with respect to disclosure of such information.

     (b) If any Seller or any Owner or any Affiliate of any Seller or such Owner violates
any of its obligations under this Section 7.1, Buyer and CNU may each proceed
against it in law or in equity for such damages or other relief as a court may deem
appropriate. Each Seller and each Owner acknowledges that a violation of this Section
7.1 may cause Buyer and CNU irreparable harm which may not be adequately compensated for
by money damages. Each Seller and each Owner therefore agrees that in the event of any
actual or threatened violation of this Section 7.1, Buyer and CNU shall be entitled,
in addition to other remedies that either of them may have, to a temporary restraining order
and to preliminary and final injunctive relief against such Seller or such Owner or such
Affiliate of such Seller or such Owner to prevent any violations of this Section
7.1, without the necessity of posting a bond. The prevailing party in any action
commenced under this Section 7.1 shall also be entitled to receive reasonable
attorneys’ fees and court costs. It is the intent and understanding of each party hereto
that if, in any action before any court or agency legally empowered to enforce this
Section 7.1, any term, restriction, covenant or promise in this Section 7.1
is found to be unreasonable and for that reason unenforceable, then such term, restriction,
covenant or

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promise shall be deemed modified to the extent necessary to make it enforceable by such
court or agency to the maximum extent permitted by applicable Requirements of Law.

     (c) Without limiting the generality of Section 7.1(a), the parties acknowledge
(i) that nothing contained herein is intended to prevent Dr. Luis Cruz from personally
practicing medicine anywhere in the State of Florida in a manner that does not violate
Section 7.1(a) and (ii) that none of the activities described on Schedule
7.1(c) shall be deemed to violate Section 7.1(a).

     7.2. Taxes.

     (a) Sellers and the Owners shall be liable for and pay, and shall indemnify Buyer and
CNU against, (i) all Income Taxes (whether assessed or unassessed) applicable to the
Business, the Purchased Assets and the Assumed Liabilities, in each case attributable to
taxable years or periods ending on and including or prior to the Closing Date, (ii) with
respect to any Straddle Period, all Income Taxes applicable to the Business for the portion
of such Straddle Period ending on and including the Closing Date and (iii) any Tax
applicable to the Business payable by Sellers or Owners by reason of the transactions
contemplated by this Agreement; provided, that Sellers and Owners shall not be liable to
any Income Taxes for which CNU or Buyer are liable under this Agreement. Buyer and CNU
shall be liable for and shall pay and shall indemnify each Seller and each Owner against all
Income Taxes (whether assessed or unassessed) applicable to the Business, the Purchased
Assets and the Assumed Liabilities that are attributable to taxable years or periods
beginning after the Closing Date and, with respect to any Straddle Period, the portion of
such Straddle Period beginning after the Closing Date; provided, that Buyer and CNU
shall not be liable for any Income Taxes for which any Seller or any Owner is liable under
this Agreement. For purposes of this Section 7.2, any Straddle Period shall be
treated on a “closing of the books” basis as two partial periods, one ending at the close of
the Closing Date and the other beginning on the day after the Closing Date. Buyer and CNU
shall assume and shall discharge and pay when due all Taxes other than Income Taxes payable
after the Closing Date.

     (b) Notwithstanding Section 7.2(a), any sales Tax, use Tax, real property
transfer Tax, documentary stamp Tax or similar Tax attributable to the sale or transfer of
the Business, the Purchased Assets or the Assumed Liabilities shall be paid one-half by
Sellers and one-half by Buyer. Buyer and Sellers each agree to timely sign and deliver such
certificates or forms as may be necessary or appropriate to establish an exemption from (or
otherwise reduce), or file Tax Returns with respect to, such Taxes.

     (c) Sellers or Buyer, as the case may be, shall provide reimbursement for any Tax paid
by one party all or a portion of which is the responsibility of the other party in
accordance with the terms of this Section 7.2. Within a reasonable time prior to
the payment of any said Tax, the party paying such Tax shall give notice to the other party
of the Tax payable and the portion which is the liability of each party, although failure to
do so will not relieve the other party from its liability hereunder.

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     (d) After the Closing Date, each Seller and each Owner and CNU shall (and cause their
respective Affiliates to):

     (i) assist the other party in preparing any Tax Returns which such other party is
responsible for preparing and filing;

     (ii) cooperate fully in preparing for any audits of, or disputes with taxing
authorities regarding, any Tax Returns of the Business or the Purchased Assets;

     (iii) make available to the other and to any taxing authority as reasonably requested
all information, records, and documents relating to Taxes of the Business or the Purchased
Assets;

     (iv) provide timely notice to the other in writing of any pending or threatened Tax
audits or assessments relating to Taxes of the Business or the Purchased Assets for taxable
periods for which the other may have a liability under this Section 7.2; and

     (v) furnish the other with copies of all correspondence received from any taxing
authority in connection with any Tax audit or information request with respect to any such
taxable period.

     (e) Notwithstanding anything to the contrary in this Agreement, the obligations of the
parties set forth in this Section 7.2 shall be unconditional and absolute and shall
remain in effect without limitation as to time.

     7.3. Discharge of Business Liabilities.

     (a) Retain and each Owner covenants and agrees that, from and after the Closing, it
will pay and discharge as and when due (except as disputed in good faith), and hold Buyer,
Buyer LLC, Sellers and CNU harmless from, each and every liability and obligation of Sellers
arising from events occurring on or prior to the Closing Date, excepting only the Assumed
Liabilities; it being understood and agreed that Buyer is assuming no liabilities or
obligations of Sellers other than the Assumed Liabilities.

     (b) CNU and Buyer covenant and agree that, from and after the Closing, they will pay
and discharge as and when due (except as disputed in good faith), and hold Retain and Owners
harmless from, each and every liability and obligation of CNU or Buyer arising from (i) the
Assumed Liabilities and (ii) the operation of the Business from and after the Closing,
except, in the case of clause (ii) above, to the extent of any Loss or Expense arising as a
result of any action or omission of any Owner after the Closing Date that constitutes gross
negligence or willful misconduct on the part of such Owner.

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     7.4. Employees and Employee Benefit Plans.

     (a) CNU shall hire all employees of the Business at time of Closing. Effective as of
the Closing Date, the employment by the Sellers of the employees of the Business shall
terminate, and each such employee shall be offered employment at will by CNU at a salary or
hourly rate not less than that indicated on Schedule 5.18(j); provided that any
physician employed by the Business shall be offered employment upon the terms and conditions
of such employee’s Physician Employment Agreement at a salary not less than that reflected
on Schedule 5.18(j). The Sellers and the Owners shall cooperate with CNU in the
orderly transfer of the employees of the Business to CNU. Notwithstanding anything set
forth herein to the contrary, (i) nothing in this Agreement shall create any obligation on
the part of the CNU to continue the employment of any employee for any period following the
Closing Date and (ii) nothing in this Agreement shall preclude CNU from altering, amending
or terminating any of its employee benefit plans, or the participation of any of its
employees in such plans, at any time; provided however, that CNU shall be liable for any
expenses, penalties, fines or other obligations of Sellers or Owners pursuant to the WARN
Act for CNU’s or Buyers termination of any such employee after the Closing Date.

     (b) To the extent permitted by the applicable insurance contracts or plans, all
employees who become employees of CNU (the “Transferring Employees”) and their
eligible dependents shall be covered by CNU’s medical, prescription drug, dental, vision,
flexible spending (with respect to medical and/or dependent care expenses), life and
accidental death and dismemberment plans on the Closing Date.

     (c) With respect to each Transferring Employee, Sellers shall retain the obligation and
liability for any workers’ compensation or similar workers’ protection claims with respect
to any such individual, which are the result of an injury or illness originating prior to
the Closing Date, regardless of whether such claim is asserted prior to, on or after the
Closing Date. Neither Buyer nor CNU shall assume or be obligated to pay, perform or
discharge any liability or obligation under any employee benefit plan of Sellers or their
Affiliates.

     (d) Sellers shall transfer to CNU on the Closing Date complete copies of the personnel
records of Transferring Employees.

     (e) Neither Buyer nor CNU shall have any liabilities: (i) related to the employees of
Sellers who do not become Transferring Employees through no fault of CNU or Buyer; or (ii)
related to Transferring Employees to the extent such liability arises from any action, event
or course of conduct of Sellers on or prior to the Closing Date, regardless of whether such
liability is asserted prior to, on or after the Closing Date;

     (f) CNU and Buyer shall be responsible for satisfying “continuation coverage”
requirements for all “group health plans” under Section 4980B of the Code, Part 6 of Title I
of ERISA and comparable state law with respect to each employee of Sellers who does not
become a Transferring Employee (and any spouse, dependents or beneficiary of such employee)
and with respect to each former employee of Sellers

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whose employment terminated before the Closing Date and any spouse, dependents or
beneficiary of such former employee (each such person entitled to “continuation coverage”, a
“COBRA Beneficiary”). To satisfy this obligation, CNU and Buyer shall use
commercially reasonable efforts to continue to maintain in effect all “group health plans”
that are in effect immediately prior to the Closing Date until such time as all rights to
“continuation coverage” for all COBRA Beneficiaries have ended under all applicable laws.

     (g) CNU and Buyer will treat an individual’s employment as an employee of a Seller the
same as employment as an employee by CNU or Buyer for purposes of satisfying any service
requirement to participate in any CNU or Buyer benefit arrangement and to determine the
extent to which a benefit earned under such a plan is non-forfeitable if such individual is
employed as an employee by a Seller at the Closing Date.

     (h) After the Closing and immediately prior to the execution of the Second Instrument
of Assumption, Sellers will terminate all Sellers’ Non-ERISA Plans and Sellers’ ERISA Plans.

     7.5. Collection of Trailing Payments. During the fourteen (14)-day period commencing
the day after the Closing Date, Buyer and CNU shall use all commercially reasonable efforts to
collect payments that would constitute Trailing Payments if collected during such fourteen (14)-day
period. The parties acknowledge that Buyer and CNU shall be collecting and holding such Trailing
Payments in trust for the benefit of the Owners as contemplated in Section 3.3 hereof.
Buyer and CNU will, upon receipt, deposit and, until paid to Owners, maintain all Trailing Payments
in a segregated interest-bearing account with a financial institution mutually agreeable to the
Sellers’ Representative and CNU. Neither Buyer, CNU nor any of its Affiliates shall take any
action that could reasonably be expected to delay, reduce, suspend, impede or otherwise prevent the
collection of the payments from the payors as set forth on Schedule 1.1(b) during the
14-day period commencing the day after the Closing Date; provided that the foregoing shall not
limit the ability of CNU, Buyer or any of their respective Affiliates to take any action or refrain
from taking any action unrelated to and not impacting the Trailing Payments. If the Sellers notify
CNU in writing no less than ten (10) days prior to the Closing Date that the Merger would adversely
affect or delay the collection of Trailing Payments, then the parties shall work together in good
faith to modify the Merger so as to mitigate any such adverse affect or delay, including without
limitation, by causing the Buyer to create one or more wholly-owned limited liability companies
which will be merged with and into the Sellers in a reorganization under Code Sections 368(a)(2)(E)
and 368(a)(1)(A) so that the Sellers are the surviving entities. Notwithstanding the foregoing,
neither CNU nor Buyer shall be obligated to take any action which would require a resolicitation of
proxies for the Special Meeting or an amendment or supplement to the Proxy Statement to be mailed
to CNU’s shareholders or, if the Special Meeting shall have already then occurred, require the
shareholders of CNU to approve such alternate structure for the Merger.

     7.6. Conduct of Business by Sellers Pending Closing. During the period from the date
of this Agreement and continuing until the earlier of the termination of this Agreement pursuant to
its terms and the Closing Date, Sellers and Owners agree, except as set

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forth in Schedule 7.6 or to the extent that CNU shall otherwise consent in writing, to
carry on its business in the usual, regular and ordinary course in substantially the same manner as
heretofore conducted, to pay timely its debts and Taxes, subject to good faith disputes over such
debts or Taxes, and on the same payment terms such debts and taxes have historically been paid, to
collect its receivables in the same manner and on the same terms such receivables have historically
been collected, to timely pay or perform other material obligations when due, and to use all
commercially reasonable efforts consistent with past practices and policies to preserve intact the
Sellers’ present business organizations, keep available the services of its present officers and
employees and preserve its relationships with patients, suppliers, third party payors and others
having business dealings with the Sellers, to the end that the Sellers’ goodwill and ongoing
businesses be unimpaired on the Closing Date. The Sellers shall promptly notify CNU of any
material event or occurrence not in the ordinary course of business of the Company. Except as
required by applicable Requirements of Law or GAAP or as expressly permitted by this Agreement or
as set forth in Schedule 7.6, the Sellers shall not, and the Owners shall cause the Sellers
not to, prior to the Closing Date or earlier termination of this Agreement pursuant to its terms,
without the prior written consent of CNU, which consent shall not be unreasonably withheld or
delayed:

     (a) sell, lease (as lessor), transfer or otherwise dispose of (including any transfers
from any Seller to any Owner or to any of their Affiliates), or mortgage or pledge, or
impose or suffer to be imposed any Encumbrance on, any of the assets reflected on the
Balance Sheet or any assets acquired by Sellers after the Balance Sheet Date, except for
personal property sold or otherwise disposed of for fair value in the ordinary course of the
Business consistent with past practice and except for Permitted Encumbrances and except for
the Excluded Assets; provided that no such, sale, lease, transfer, disposition, mortgage,
pledge, or Encumberance of Excluded Assets could reasonably be expected to: (i) create or
result in any liability or obligation of any Buyer Group Member or any liability or
obligation that would be an Assumed Liability, (ii) cause any representation or warranty of
Sellers and the Owners set forth herein to be untrue or incorrect, (iii) violate the terms
of any covenant or obligation of Sellers or Owners hereunder, or (iv) cause any of the
conditions to the Closing not to be satisfied;

     (b) cancel any debts owed to or claims held by such Seller (including the settlement of
any claims or litigation) other than in the ordinary course of the Business consistent with
past practice;

     (c) create, incur, assume or guarantee any indebtedness for borrowed money or entered
into, as lessee, any capitalized lease obligations (as defined by generally accepted
accounting principles) other than in the ordinary course of business consistent with past
practices but in no event in an amount greater than $100,000 whether individually or in the
aggregate;

     (d) accelerate or delay collection of Receivables generated by the Business in advance
of or beyond their regular due dates or the dates when the same would have been collected in
the ordinary course of the Business consistent with past practice;

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     (e) delay or accelerate payment of any account payable or other liability of the
Business beyond or in advance of its due date or the date when such liability would have
been paid in the ordinary course of the Business consistent with past practice;

     (f) except for distributions to Owners of any and all cash reflected on Sellers’ books
and records as owned by Sellers from time to time prior to the Closing Date, make
any payment of cash or distribution of assets to any Owner or any of their Affiliates, other
than in the ordinary course of the Business consistent with past practice; and other than
the sale, distribution, transfer or otherwise dealing with the Excluded Assets as the Owners
determine from time to time and at any time in their sole and absolute discretion; provided
that no such sale, distribution, transfer or dealing could reasonably be expected to: (i)
create or result in any liability or obligation of any Buyer Group Member or any liability
or obligation that would be an Assumed Liability, (ii) cause any representation or warranty
of Sellers and the Owners set forth herein to be untrue or incorrect, (iii) violate the
terms of any covenant or obligation of Sellers or Owners hereunder, or (iv) cause any of the
conditions to the Closing not to be satisfied;

     (g) institute or agree to institute any increase in any compensation payable to any
employee of such Seller or in any profit-sharing, bonus, incentive, deferred compensation,
insurance, pension, retirement, medical, hospital, disability, welfare or other benefits
made available to employees of such Seller, other than in the ordinary course of the
Business consistent with past practice and in an amount not to exceed $10,000;

     (h) prepare or filed any Tax Return inconsistent with past practice or, on any such Tax
Return, take any position, make any election, or adopt any method that is inconsistent with
positions taken, elections made or methods used in preparing or filing similar Tax Returns
in prior periods (including positions, elections or methods which would have the effect of
deferring income to periods for which Buyer is liable pursuant to Section 7.2(a) or
accelerating deductions to periods for which Seller is liable pursuant to Section
7.2(a));

     (i) make any material change in the accounting principles and practices used by Sellers
from those applied in the preparation of the Balance Sheet and the related statements of
income and cash flow for the period then ended;

     (j) enter into any agreement that would be a Seller Agreement if it existed on the date
of this Agreement or amend any Seller Agreement;

     (k) commence any litigation other than (1) for the routine collection of bills, or (2)
in such cases where such Seller in good faith determines that failure to commence suit could
result in the material impairment of a valuable aspect of the Business;

     (l) declare or pay any dividends on or make any other distributions (whether in cash,
stock or property) in respect of any of its capital stock, or split, combine or reclassify
any of its capital stock or issue or authorize the issuance of any other securities in
respect of, in lieu of or in substitution for shares of capital stock of such Seller;

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provided however, that nothing herein shall prevent the sale, distribution, transfer or
otherwise dealing with the Excluded Assets as the Owners determine from time to time and at
any time in their sole and absolute discretion ; provided that no such sale, distribution,
transfer or dealing could reasonably be expected to: (i) create or result in any liability
or obligation of any Buyer Group Member or any liability or obligation that would be an
Assumed Liability, (ii) cause any representation or warranty of Sellers and the Owners set
forth herein to be untrue or incorrect, (iii) violate the terms of any covenant or
obligation of Sellers or Owners hereunder, or (iv) cause any of the conditions to the
Closing not to be satisfied.

     (m) redeem, repurchase or otherwise acquire, directly or indirectly, recapitalize or
reclassify any shares of its capital stock;

     (n) issue, deliver or sell or authorize or propose the issuance, delivery or sale of,
any shares of its capital stock of any class or securities convertible into, or
subscriptions, rights, warrants or options to acquire, or enter into other agreements or
commitments of any character obligating it to issue any such shares or other convertible
securities;

     (o) cause, permit or propose any amendments to its Articles of Incorporation or bylaws;

     (p) make any capital expenditure involving more than $25,000;

     (q) take any action or omit to do any action which could reasonably be expected to
cause any of the conditions to the Closing, not to be satisfied; or

     (r) agree to do any of the foregoing.

     7.7. Conduct of Business by Buyer and CNU. Except as expressly provided for by this
Agreement, from and after the date of this Agreement and until the earlier of the termination of
this Agreement or the Closing Date, Buyer and CNU shall each carry on its respective business in
the usual, regular and ordinary course substantially in the same manner as heretofore carried on
and shall not enter into any agreement, arrangement or understanding with respect to any of the
foregoing and shall not take any action with would make or cause any of its representation and
warranties made herein to become inaccurate in any material respect. Without limiting the
generality of the foregoing, from the date of this Agreement until and until the earlier of the
termination of this Agreement or the Closing Date, CNU will not, directly or indirectly: (a)
increase its consolidated indebtedness for borrowed money by more than $10 million over the amount
of indebtedness reflected on CNU’s consolidated balance sheet as of December 31, 2005; provided,
however, that the unused portion of any lines of credit and other borrowings available to CNU shall
not be deemed to be indebtedness until actually drawn upon, or (b) issue, in one or more
transactions, a number of shares of CNU Common Stock or any securities convertible into, or
subscriptions, rights, warrants or options representing the right to acquire greater than 20% of
the number of shares of CNU Common Stock outstanding as of the date hereof or enter into any
agreement obligating it to do so.

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     7.8. Assignment or Enforcement of Certain Agreements. In furtherance of the sale of
the Purchased Assets and the Business to Buyer and CNU hereunder by virtue of the transactions
contemplated hereby and more effectively to protect the value and goodwill of the Purchased Assets
and the Business so sold, Sellers covenant and agree that, with respect to each Transferring
Employee, Sellers shall either (a) assign to Buyer all rights of such Seller pursuant to all
agreements, covenants or other obligations of such employee relating to noncompetition,
nonsolicitation of employees or clients and similar matters or (b) if such agreements, covenants or
obligations cannot be assigned to Buyer, then, upon Buyer’s request and at Buyer’s expense, enforce
such agreements, covenants and obligations to the maximum extent permitted by applicable law.

     7.9. Assignment of Uncollected Receivables. In the event that Buyer is unable to
collect one or more Receivables and Sellers or the Owners pay to Buyer amounts pursuant to
Section 8.1 based on inaccuracy or breach of the representations and warranties contained
in Section 5.16 related to such Receivable or Receivables, Buyer shall assign to such
Seller or Owner the uncollected portion of such Receivable or Receivables promptly after receiving
such payment (and such assignment shall be made free and clear of any liens or encumbrances created
by Buyer). Sellers or the Owners may collect such uncollected portion of such Receivable or
Receivables using only billing and collection practices applied by Sellers prior to the Closing in
the collection of its accounts receivable and shall not commence litigation in connection with such
collection without the prior written consent of Buyer, which consent shall not be unreasonably
withheld or delayed.

     7.10. Meeting of Shareholders. CNU shall, consistent with its Articles of
Incorporation and Bylaws, call and hold a meeting of its shareholders, as promptly as practicable
for the purpose of voting upon the approval of the issuance of the CNU Shares pursuant to this
Agreement (the “Shareholders’ Meeting”), and shall use all commercially reasonable efforts
to hold its Shareholders’ Meeting as soon as practicable. CNU shall (a) use all commercially
reasonable efforts to solicit from its shareholders proxies in favor of the approval of the
issuance of the CNU Shares pursuant to this Agreement, (b) take all other action necessary or
advisable to secure the vote or consent of CNU’s shareholders, as required by the FBCA to obtain
such approval, and (c) include in the Proxy Statement the recommendation of its Board of Directors
in favor of the approval of the issuance of the CNU Shares pursuant to this Agreement and not
withhold, withdraw or adversely modify such recommendation.

     7.11. Proxy Statement. As promptly as practicable after the date of this Agreement,
the CNU shall prepare and file with the SEC preliminary proxy materials relating to the
Shareholders’ Meeting (together with any definitive proxy materials and amendments thereof or
supplements thereto, the “Proxy Statement”). As promptly as practicable upon request, the
Sellers shall supply CNU with the information pertaining to Sellers, Owners or the Business
required by the Exchange Act for inclusion or incorporation by reference in the Proxy Statement,
which information shall not at the time the Proxy Statement is filed with the SEC, at the time the
Proxy Statement is mailed to CNU’s shareholders or at the time of the Shareholders’ Meeting,
contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, not misleading. If before the Closing
Date, any event or circumstance relating to the Sellers, the Owners, the Business or their
respective officers or directors, should be discovered by the Sellers that should be set forth in
an

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amendment or a supplement to the Proxy Statement, the Sellers shall promptly inform CNU and
CNU shall make appropriate amendments or supplements to the Proxy Statement. CNU will advise
Sellers, promptly after CNU receives notice thereof, of the receipt of any comments by the SEC on
the preliminary proxy materials, of any request by the SEC for the amendment or supplement of the
Proxy Statement or for additional information. As promptly as practicable following the resolution
of any SEC comments on the preliminary proxy materials, CNU shall mail the Proxy Statement to the
its shareholders.

     7.12. Access to Information About Sellers. CNU may, from and after the date of this
Agreement to the Closing Date upon 48 hours prior notice, directly or through its representatives,
review the properties, books and records of Sellers and its financial and legal condition,
including all of the Purchased Assets, to the extent it deems necessary or advisable to familiarize
itself with the Business; this review will not, however, affect or limit the representations and
warranties made by Sellers or the Owners in this Agreement or the remedies of Buyer or CNU for
breaches of those representations and warranties. Sellers and the Owners will permit CNU and its
representatives to have, from the date of this Agreement to the Closing Date, full access to the
premises and to all the books and records of the Sellers, and will cause the representatives of the
Sellers to furnish CNU with financial and operating data and other information with respect to the
Business as CNU from time to time requests. Sellers and the Owners will deliver or cause to be
delivered to CNU additional instruments, documents, and certificates as CNU may reasonably request
for the purpose of (a) verifying the information set forth in this Agreement and on any Exhibit or
Schedule to this Agreement and, (b) consummating or evidencing the transactions contemplated by
this Agreement. After the execution of this Agreement, the Sellers shall cooperate with CNU in
developing post-Closing transition policies with respect to management information systems,
marketing, personnel, outsourcing, operations, regulatory matters, accounting and financial
reporting, including, without limitation, meeting regularly (at such times as shall be mutually
agreed upon by the Sellers and CNU) with on-site transition teams of CNU with respect to marketing,
management information systems, regulatory matters, accounting and financial reporting.

     7.13. Financial Statement Audit. Sellers have engaged the Auditor as their
independent auditors for the purpose of conducting an audit of the Seller Financial Statements (and
any financial statements of the Sellers as of and for periods ending on or after the Balance Sheet
Date for which CNU is required to include audited financial statements of the Sellers in its
filings with the SEC) and rendering an opinion thereon. The Auditor is registered with the Public
Company Accounting Oversight Board. Sellers and Owners shall work together in good faith with the
Auditor and cooperate with all of the Auditor’s reasonable requests in order to complete such
audit(s) as promptly as possible, and Sellers shall deliver to CNU such audited financial
statements and all unaudited interim financial statements of Sellers for any period since December
31, 2005, that are required to be included in the Proxy Statement as promptly as reasonably
possible but in no event later than August 1, 2006. Sellers and Owners shall cause the Auditor to
conduct such audit(s) in accordance with generally accepted auditing standards and the audit
standards adopted by the SEC and the Public Company Accounting Oversight Board. Sellers shall
advise the Auditor that the audited financial statements and the Auditor’s opinion thereon shall be
included or incorporated by reference in CNU’s filings with the SEC, including, without limitation
the Proxy Statement. The Auditor shall also perform a calculation of the Adjusted EBITDA. For
purposes of the foregoing, the “Adjusted EBITDA” shall be the

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combined earnings before interest, taxes, depreciation and amortization of the Sellers for the
year ended December 31, 2005, calculated in accordance with GAAP, as adjusted in the manner set
forth in Schedule 7.13.

     7.14. Exclusive Dealing. From the date of this Agreement until the earlier to occur
of the Closing Date or the valid termination of this Agreement, Sellers and the Owners will not
directly or indirectly initiate or engage in any discussions or negotiations with, or provide any
information to, any person, other than Buyer or CNU, concerning any purchase or option to purchase
the Business or the Purchased Assets or any merger, sale of substantial assets or similar
transaction involving any of the Sellers or take or permit to be taken any action that could
encourage any of the foregoing.

     7.15. Tax-Free Reorganization Treatment. To the extent consistent with the other
terms and conditions of this Agreement, Sellers, Owners, CNU and Buyer shall use all commercially
reasonable efforts to cause the transactions contemplated by this Agreement to be treated as a
“reorganization” within the meaning of Section 368(a)(1)(A) and 368(a)(2)(D) (or 368(a)(2)(E), if
applicable, pursuant to Section 7.5 hereof) of the Code to the maximum extent permissible
and shall not knowingly take or fail to take any action which action or failure to act would
jeopardize the qualification of the Merger as a “reorganization” within the meaning of Section 368
of the Code.

     7.16. Reasonable Efforts. So long as this Agreement has not been terminated, Sellers,
Owners, CNU and Buyer shall: (a) promptly obtain waivers, consents, permits and approvals, and
thereafter make any other submissions required under all applicable Requirements of Law in order to
consummate the transactions contemplated by this Agreement and (b) use their respective
commercially reasonable efforts to promptly take, or cause to be taken, all other actions and do,
or cause to be done, all other things necessary, proper or appropriate to consummate the
transactions contemplated by this Agreement. If requested by CNU, Sellers shall cooperate with CNU
in obtaining any amendment to any Seller Agreement that CNU may reasonably request.

ARTICLE VIII

INDEMNIFICATION

     8.1. Indemnification by Sellers and the Members. Each Owner agrees to indemnify and
hold harmless each Buyer Group Member from and against any and all Losses and Expense incurred by
such Buyer Group Member or arising from:

     (a) any breach by any Seller or any Owner of any of the covenants in thisAgreement or
in any Seller Ancillary Agreement;

     (b) any failure of any Seller or any Owner to perform any of the obligations in this
Agreement or in any Seller Ancillary Agreement;

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     (c) any breach of any warranty or the inaccuracy of any representation of any Seller or
any Owner contained in this Agreement or any Seller Ancillary Agreement or any certificate
delivered by or on behalf of any Seller or any Owner pursuant hereto;

     (d) the failure of any Seller to perform any Excluded Liability.

With respect to any breach or inaccuracy of Sections 4.4, 5.3, 7.1,
7.14, 9.2 or 9.3, each Owner shall be liable only for such Owner’s own
breach or inaccuracy of such Sections and, with respect to any breach of any covenant or obligation
herein or in any Seller Ancillary Agreement, each Owner shall be liable only for such Owner’s own
breach (it being understood that no Owner shall be liable for any other Owner’s breach or
inaccuracy of Sections 4.4, 5.3, 7.1, 7.14, 9.2 and
9.3 or of any other covenant or obligation herein or in any Seller Ancillary Agreement).

The obligation of the Owners to indemnify and hold harmless each Buyer Group Member under
Section 8.1(c)(other than with respect to any breach or inaccuracy of Section 5.3)
and (d) shall be several to the extent of their respective Pro Rata Liability; provided,
however, that for purposes of calculating an Owner’s Pro Rata Liability, such Owner and all of such
Owner’s Affiliates who are themselves Owners shall be deemed to be a single Owner and, as between
such Owner and such Owner’s Affiliates, the obligation to indemnify and hold harmless each Buyer
Group Member under Section 8.1(c)(other than with respect to any breach or inaccuracy of
Section 5.3) and (d) for such Owner’s Pro Rata Liability shall be joint and
several. Notwithstanding the foregoing it is understood and acknowledged that each Owner and all
of such Owners’s Affiliates will be jointly and severally responsible for the entire amount of all
Losses and Expense with respect to any breach of any covenant or obligation in this Agreement or in
any Seller Ancillary Agreement by such Owner or by any Affiliate of such Owner. Solely for
purposes of Owners’ indemnification obligations hereunder, Jose M. Garcia and Carlos Garcia shall
not be deemed to be Affiliates of each other.

     8.2. Indemnification by Buyer. Buyer and CNU agree to indemnify and hold harmless
each Seller Group Member from and against any and all Loss and Expense incurred by such Seller
Group Member in connection with or arising from:

     (a) any breach by Buyer or CNU of any of its covenants or agreements in this Agreement
or in any Buyer Ancillary Agreement;

     (b) any failure by Buyer or CNU to perform any of its obligations in this Agreement or
in any Buyer Ancillary Agreement;

     (c) any breach of any warranty or the inaccuracy of any representation of Buyer or CNU
contained in this Agreement or in any Buyer Ancillary Agreement or in any certificate
delivered by or on behalf of Buyer pursuant hereto; or

     (d) the failure of Buyer to perform any Assumed Liability.

Notwithstanding anything to the contrary contained in this Section 8.2 or elsewhere in this
Agreement, the parties agree that the maximum aggregate liability of CNU and Buyer for any claims
under Section 8.2(c) shall not exceed the amount of the Purchase Price.

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     8.3. Notice of Claims. Any Buyer Group Member or Seller Group Member (the
“Indemnified Party”) seeking indemnification hereunder shall give to the party obligated to
provide indemnification to such Indemnified Party (the “Indemnitor”) a notice (a “Claim
Notice”) describing in reasonable detail the facts giving rise to any claim for indemnification
hereunder and shall include in such Claim Notice (if then known or, if not then known, a reasonable
estimate thereof) the amount or the method of computation of the amount of such claim, and a
reference to the provision of this Agreement or any other agreement, document or instrument
executed hereunder or in connection herewith upon which such claim is based; provided, that
a Claim Notice in respect of any action at law or suit in equity by or against a third Person as to
which indemnification will be sought shall be given promptly after the action or suit is commenced;
provided further that failure to give such notice shall not relieve the Indemnitor
of its obligations hereunder except to the extent it shall have been prejudiced by such failure.

     8.4. Third Person Claims.

     (a) Subject to Section 8.4(b), the Indemnitor shall have the right to conduct
and control, through counsel reasonably satisfactory to the Indemnified Party, the defense,
compromise or settlement of any third Person claim, action or suit against such Indemnified
Party as to which indemnification will be sought by any Indemnified Party from any
Indemnitor hereunder, and in any such case the Indemnified Party shall cooperate in
connection therewith and shall furnish such records, information and testimony and attend
such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably
requested by the Indemnitor in connection therewith; provided, that the Indemnified
Party may participate, through counsel chosen by it and at its own expense, in the defense
of any such claim, action or suit as to which the Indemnitor has so elected to conduct and
control the defense thereof; and provided, further, that the Indemnitor
shall not, without the written consent of the Indemnified Party (which written consent shall
not be unreasonably withheld or delayed), pay, compromise or settle any such claim, action
or suit, unless such settlement involves only the payment of money damages, includes a
complete and unconditional release of the Indemnified Party and does not provide for any
action or affirmative refraining from any action on the part of the Indemnified Party.
Notwithstanding the foregoing, the Indemnified Party shall have the right to pay, settle or
compromise any such claim, action or suit with respect to itself and its Affiliates without
such consent, provided that in such event the Indemnified Party shall waive any
right to indemnity therefor hereunder unless such consent is unreasonably withheld. The
Indemnified Party shall not be entitled to assume the defense or settlement of any third
Person claim for which an Indemnified Party has indicated it intends to seek indemnity
hereunder unless the Indemnitor and the Indemnified Party agree that the Indemnified Party
shall so assume the defense or settlement, or unless the Indemnitor fails to actually assume
the defense of the third Person claim.

     (b) If any third Person claim, action or suit against any Indemnified Party where
Sellers and Owners are the Indemnitors, could have a Material Adverse Effect on the Business
or the Purchased Assets, then the Indemnified Party shall have the right to conduct and
control, through counsel reasonably satisfactory to the Indemnitor, the defense, compromise
or settlement of any such third Person claim, action or suit against

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such Indemnified Party as to which indemnification will be sought by any Indemnified
Party from any Indemnitor hereunder and in any such case the Indemnitor shall cooperate in
connection therewith and shall furnish such records, information and testimony and attend
such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably
requested by the Indemnified Party in connection therewith; provided, that the
Indemnitor may participate, through counsel chosen by it and at its own expense, in the
defense of any such claim, action or suit as to which the Indemnified Party has so elected
to conduct and control the defense thereof. Notwithstanding the foregoing, the Indemnified
Party shall have the right to pay, settle or compromise any such claim, action or suit with
respect to itself and its Affiliates, provided that in such event the Indemnified
Party shall waive any right to indemnity therefor hereunder unless the Indemnified Party
shall have sought the consent of the Indemnitor to such payment, settlement or compromise
and such consent was unreasonably withheld, in which event no claim for indemnity therefor
hereunder shall be waived.

     8.5. Limitations on Indemnification Obligations. (a) The obligations of Sellers and
the Owners pursuant to the provisions of Section 8.1 are subject to the following
limitations:

     (i) Sellers and the Owners shall be required to indemnify and hold harmless under
Section 8.1(c) with respect to Loss and Expense incurred by Buyer Group Members
(other than Loss and Expense incurred as a result of inaccuracies of the representations and
warranties contained in Sections 5.1, 5.2, 5.3, 5.7,
5.17 and 5.27 (the “Sellers Excluded Representations”), as to which
this subsection (i) shall have no effect) only if the aggregate amount of such Loss and
Expense exceeds $500,000; and then only to the extent such Loss and Expense exceeds
$500,000. Notwithstanding anything to the contrary contained in this Section 8.1 or
elsewhere in this Agreement, the parties agree that (A) the maximum aggregate liability of
all Owners for any claims under Section 8.1(c) (other than Loss and Expense incurred
as a result of inaccuracies of Seller Excluded Representations) shall not exceed one-half of
the amount of the Purchase Price, and (B) the maximum aggregate liability of each Owner for
any claims under Section 8.1(c) (other than Loss and Expense incurred as a result of
inaccuracies of Seller Excluded Representations) shall not exceed one-sixth of the amount of
the Purchase Price.

     (ii) The amount of any Loss or Expense for which indemnification is provided by Sellers
or any Owner under this Article VIII shall be net of any specific reserve
attributable to the subject matter of the related claim, as reflected on the portion of the
work papers to the Balance Sheet. In addition, to the extent any Loss or Expense arises in
respect of a breach of any representation and warranty as to Real Estate, such Loss or
Expense shall be reduced, dollar for dollar, by the amount of coverage paid to Buyer or any
of its Affiliate under any title insurance policy in respect of such Loss or Expense.

     (iii) the indemnification provided for in Section 8.1(c) shall terminate
eighteen (18) months after the Closing Date (and no claims shall be made by any Buyer Group
Member under Section 8.1(c) thereafter), except that the indemnification by Sellers
and the Owners shall continue as to: (A) the Seller Excluded Representations, which shall

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terminate 30 days after the expiration of the applicable statute of limitations and (B)
any Loss or Expense of which any Buyer Group Member has notified Sellers or the Owners in
accordance with the requirements of Section 8.3 on or prior to the date such
indemnification would otherwise terminate in accordance with this Section 8.5, as to
which the obligation of Sellers and the Owners shall continue until the liability of Sellers
and the Owners shall have been determined pursuant to this Article VIII, and Seller
and the Owners shall have reimbursed all Buyer Group Members for the full amount of any such
Loss and Expense determined to be payable to such Buyer Group Members in accordance with
this Article VIII.

     (b) The indemnification obligations of Buyer and CNU provided for in Section
8.2(c) shall terminate eighteen (18) months after the Closing Date (and no claims shall
be made by any Seller Group Member under Section 8.2(c) thereafter), except that the
indemnification by Buyer shall continue as to (A) the representations and warranties set
forth in Sections 6.1, 6.2, 6.3 and 6.4, as to all of which
no time limitation shall apply and (B) any Loss or Expense of which any Seller Group Member
has notified CNU in accordance with the requirements of Section 8.3 on or prior to
the date such indemnification would otherwise terminate in accordance with this Section
8.5, as to which the obligation of CNU shall continue until the liability of CNU shall
have been determined pursuant to this Article VIII, and CNU shall have reimbursed
all Seller Group Members for the full amount of such Loss and Expense in accordance with
this Article VIII. The maximum aggregate liability of CNU and Buyer for any claims
under Section 8.2(c) shall not exceed the amount of the Purchase Price.

     8.6. No Implied Representations. Buyer, CNU, Seller and the Owners acknowledge that,
except as expressly provided in this Agreement, no party hereto has made or is making any
representations or warranties whatsoever, implied or otherwise.

     8.7. Escrow Fund for Indemnification. At the Closing, the Owners shall deposit One
Million Five Hundred Thousand (1,500,000) CNU Shares (the “Escrowed Shares”) with the
Escrow Agent, who shall hold and disburse such Escrowed Shares in accordance with the terms of the
Escrow Agreement as partial security for any claims that any Buyer Group Member may assert against
any Owner pursuant to this Article VIII. If the Owners are found to be liable to any Buyer Group
Member in connection with a claim by a Buyer Group Member for indemnification under this Article
VIII, the Owners shall have the option of satisfying such claim from the Escrowed Shares or by
paying such claim in cash. If the claim is to be satisfied from the Escrowed Shares, the Sellers’
Representative shall so notify the Escrow Agent and the Escrowed Shares shall be valued at the
greater of (a) closing price of the CNU Common Stock on the Closing Date or (b) the closing price
of the CNU Common Stock on the date that the Escrowed Shares are released to the Buyer Group
Member.

     8.8. Exclusive Remedy. This Article VIII sets forth the exclusive remedies of all
parties, whether in contract or in tort, in connection with any breach of any of the
representations and warranties set forth herein.

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ARTICLE IX

GENERAL PROVISIONS

     9.1. Survival of Obligations. All representations, warranties, covenants and
obligations contained in this Agreement shall survive the consummation of the transactions
contemplated by this Agreement; provided, however, that, except as otherwise
provided in Article VIII, the representations and warranties contained in this Agreement
shall terminate eighteen (18) months after the Closing Date and the covenants in Section 7.1 shall
terminate five (5) years after the Closing Date. Except as otherwise provided herein, no claim
shall be made for the breach of any representation or warranty contained in this Agreement or under
any certificate delivered with respect thereto under this Agreement after the date on which such
representations and warranties terminate as set forth in this Section.

     9.2. Confidential Nature of Information. Each party agrees that it will treat in
confidence all documents, materials and other information which it shall have obtained regarding
the other party during the course of the negotiations leading to the consummation of the
transactions contemplated hereby (whether obtained before or after the date of this Agreement), the
investigation provided for herein and the preparation of this Agreement and other related
documents. Such documents, materials and information shall not be communicated to any third Person
(other than, in the case of Buyer or CNU, to its counsel, accountants, financial advisors or
lenders, and in the case of Sellers or any Owner, to its (or their) counsel, accountants or
financial advisors). The obligation of each party to treat such documents, materials and other
information in confidence shall not apply to any information which (i) is or becomes available to
such party from a source other than the other parties hereto, (ii) is or becomes available to the
public other than as a result of disclosure by such party or its agents, (iii) is required to be
disclosed under applicable law or judicial process, but only to the extent it must be disclosed, or
(iv) such party reasonably deems necessary to disclose to obtain any of the consents or approvals
contemplated hereby. Notwithstanding the foregoing, this Section 9.2 shall not apply to
Buyer or CNU after the Closing with respect to information relating to the Business.

     9.3. No Public Announcement. Neither Buyer, CNU, any Owner nor any Seller shall,
without the approval of CNU and Sellers, make any press release or other public announcement
concerning the transactions contemplated by this Agreement, except as and to the extent that any
such party shall be so obligated by law or the rules of any stock exchange. The foregoing shall
not preclude communications or disclosures necessary to implement the provisions of this Agreement
or to comply with the accounting and Securities and Exchange Commission disclosure obligations.

     9.4. Termination. This Agreement may be terminated and the transactions contemplated
by this Agreement may be abandoned at any time prior to the Closing Date (whether before or after
the approval of this Agreement by the CNU’s shareholders), only as follows:

     (a) by mutual written consent of the CNU and Sellers;

     (b) by CNU or Sellers:

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          (1) if there shall be any Requirement of Law enacted, promulgated or issued and
applicable to the transactions contemplated by this Agreement by any Governmental Entity
which would make consummation of the transactions contemplated by this Agreement illegal; or

          (2) if the Closing shall not have been consummated by the later of (A) October 31,
2006, (B) the last Business Day of the calendar month that includes the day that is 150 days
after the date on which the Sellers deliver to CNU copies of the audited financial
statements of Sellers for the year ended December 31, 2005, and (C) the last Business Day of
the calendar month that includes the day that is ninety (90) days after the date on which
the Sellers deliver to CNU all unaudited interim financial statements of Sellers for any
period since December 31, 2005 that are required to be included in the Proxy Statement;
provided, however, that the right to terminate this Agreement under this
Section 9.4(b)(2) shall not be available to: (i) any party whose failure, or whose
Affiliate’s failure, to fulfill any obligation under this Agreement has been the cause of,
or resulted in, the failure of the Closing to occur on or before such date or (ii) any Owner
if such Owner or any other Owner shall have failed to fulfill any obligation under this
Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or
before such date.

          (3) if CNU’s shareholders do not approve the issuance of the CNU Shares pursuant to
this Agreement at the Shareholders’ Meeting; or

          (4) if any Governmental Body shall have issued an order, decree or ruling or taken any
other action (which order, decree, ruling or other action the parties hereto shall use their
reasonable efforts to lift), which permanently restrains, enjoins or otherwise prohibits
consummation of the transactions contemplated by this Agreement and such order, decree,
ruling or other action shall have become final and non-appealable.

     (c) by CNU:

          (1) any Seller or any Owner shall have breached in any material respect any
representation, warranty, covenant or other agreement contained in this Agreement (other
than Section 7.13), which breach (A) cannot be or has not been cured, in all
material respects, within twenty (20) business days after the giving of written notice to
Sellers or (B) would result in the failure to satisfy a condition set forth in Sections
4.5 or 4.6;

          (2) if any Seller or any Owner (or any of these Affiliates) shall breach Section
7.13;

          (3) if the Auditor shall not render an unqualified opinion or the Seller Financial
Statements or shall require any material adjustments to the Seller Financial Statements from
the form previously provided to CNU and Buyer in order to render an unqualified opinion
thereon; or

          (4) if the Adjusted EBITDA is not at least $6,000,000.

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     (d) by Sellers:

          (1) if CNU or Buyer shall have breached in any material respect any of their respective
representations, warranties, covenants or other agreements contained in this Agreement,
which breach (A) cannot be or has not been cured, in all material respects, within twenty
(20) business days after the giving of written notice to CNU, or (B) would result in the
failure to satisfy a condition set forth in Sections 4.5 or 4.7 or;

          (2) if any of the Voting Agreements shall be terminated;

          (3) if the Board of Directors of CNU shall withhold or withdraw its recommendation of
the issuance of the CNU Shares pursuant to this Agreement or modify its recommendation of
the issuance of the CNU shares pursuant to this Agreement in a manner adverse to Sellers or
Owners; or

          (4) if since the date of this Agreement, there has been a change in the Code, final or
temporary Treasury Regulations promulgated under Code Section 368, published pronouncements
of the Internal Revenue Service having the same force and effect as final or temporary
Treasury Regulations promulgated under Code Section 368, case law applying Code Section 368,
or other relevant binding legal authority relating to Code Section 368 (collectively
“Change in Tax Law”), that (i) would apply to a transaction consummated subsequent
to such Change in Tax Law notwithstanding the existence of a binding written agreement with
respect to such transaction, and (ii) would reasonably be expected to result in (A) the
imposition of tax on gain realized with respect to the CNU Shares issued hereunder, or (B) a
material increase in the tax liability of the Owners or Sellers resulting from the
transactions contemplated herein as compared to the tax liability that would have arisen in
the absence of such Change in Tax Law.

     (e) In the event of a valid termination of this Agreement pursuant to this Section
9.4, this Agreement shall become void and of no further force and effect, and there shall be no
liability or obligation on the part of CNU, Buyer, any Seller or any Owner or any of their
respective officers or directors or Affiliates under this Agreement except as set forth in (1) the
provisions of Section 9.2 relating to the obligations of the parties to keep confidential
and not to use certain information obtained from the other party, (2) the provisions of
Sections 6.15 and Article 9, or (3) any liability a terminating party may suffer as
a result of another’s willful or intentional breach of this Agreement.

     9.5. Notices. All notices or other communications required or permitted hereunder
shall be in writing and shall be deemed given or delivered when delivered personally or by fax with
automatic confirmation (with a copy via other means specified herein) or two (2) business days
after being sent by registered or certified mail or by private courier or express delivery service
addressed as follows:

     If to Buyer or CNU, to:

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	                    	 	Continucare Corporation

7200 Corporate Center Drive, Suite 600

Miami, FL 33126

Attention: Chief Executive Officer

Fax: (305) 500-2104

     with a copy (which shall not constitute notice), to:

			

			
		 	Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

150 West Flagler Street, Suite 2200

Miami, FL 33130

Attention: Geoffrey MacDonald, Esq.

Fax: (305) 789-3395

     If to any Seller or any Member, to:

			

			
		 	Miami Dade Health Centers, Inc.

3233 Palm Avenue

4th Floor

Hialeah, FL 33012

Attention: Jose M. Garcia, CEO

Fax: 305-642-3142

     with a copy (which shall not constitute notice), to:

			

			
		 	Sandra Greenblatt, P.A.

One Biscayne Tower, Suite 3500

2 South Biscayne Boulevard

Miami, FL 33131

Attention: Sandra P. Greenblatt, Esq.

Fax: (305) 577-9951

or to such other address as such party may indicate by a notice delivered to the other party
hereto.

     9.6. Successors and Assigns. (a) The rights of either party under this Agreement
shall not be assignable by such party hereto without the written consent of the other (which
consent shall not be unreasonably withheld or delayed); provided that Buyer and CNU may assign any
of its rights hereunder to a wholly-owned subsidiary of CNU, but no such assignment shall relieve
it of its obligations hereunder. Notwithstanding the foregoing, Sellers shall be permitted to make
distributions to the Owners after the Closing Date of the Purchase Price without the consent of
Buyer or CNU, subject to compliance with Section 7.6.

     (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their successors and permitted assigns. The successors and permitted assigns hereunder
shall include without limitation, in the case of any party hereto, any permitted assignee as
well as the successors in interest to such permitted assignee

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     (whether by merger, liquidation (including successive mergers or liquidations) or
otherwise. Nothing in this Agreement, expressed or implied, is intended or shall be
construed to confer upon any Person other than the parties and successors and assigns
permitted by this Section 9.6 any right, remedy or claim under or by reason of this
Agreement.

     9.7. Access to Records after Closing. For a period of seven years after the Closing
Date, Sellers and its representatives shall have reasonable access to all of the books and records
of Sellers transferred to Buyer hereunder to the extent that such access may reasonably be required
by Sellers in connection with matters relating to or affected by the operations of Sellers prior to
the Closing Date. Such access shall be afforded by Buyer upon receipt of reasonable advance notice
and during normal business hours. Sellers shall be solely responsible for any costs or expenses
incurred by it pursuant to this Section 9.7. If Buyer shall desire to dispose of any of
such books and records prior to the expiration of such seven (7) year period, Buyer shall, prior to
such disposition, give Sellers a reasonable opportunity, at Sellers’ expense, to segregate and
remove such books and records as Sellers may select.

     For a period of seven years after the Closing Date, Buyer and CNU and their representatives
shall have reasonable access to all of the books and records relating to the Business which Sellers
or any of their Affiliates may retain after the Closing Date. Such access shall be afforded by
Sellers and their Affiliates upon receipt of reasonable advance notice and during normal business
hours. Buyer and CNU shall be solely responsible for any costs and expenses incurred by them
pursuant to this Section 9.7. If Sellers or any of their Affiliates shall desire to
dispose of any of such books and records prior to the expiration of such six-year period, Seller
shall, prior to such disposition, give Buyer and CNU a reasonable opportunity, at Buyer’s expense,
to segregate and remove such books and records as Buyer and CNU may select.

     9.8. Entire Agreement; Amendments. This Agreement and the Exhibits and Schedules
referred to herein and the documents delivered pursuant hereto contain the entire understanding of
the parties hereto with regard to the subject matter contained herein or therein, and supersede all
prior agreements, understandings or letters of intent between or among any of the parties hereto.
This Agreement shall not be amended, modified or supplemented except by a written instrument signed
by an authorized representative of each of Buyer, CNU, Sellers and Owners.

     9.9. Interpretation. Wherever possible, each provision hereof shall be interpreted in
such manner as to be effective and valid under applicable law, but in case any one or more of the
provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such provision shall be ineffective to the extent, but only to the extent, of such
invalidity, illegality or unenforceability without invalidating the remainder of such invalid,
illegal or unenforceable provision or provisions or any other provisions hereof, unless such a
construction would be unreasonable.

     9.10. Waivers. Any term or provision of this Agreement may be waived, or the time for
its performance may be extended, by the party entitled to the benefit thereof, or by Seller if the
Members are entitled to the benefit thereof. Any such waiver shall be validly and sufficiently
authorized for the purposes of this Agreement if, as to any party, it is authorized in

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writing by an authorized representative of such party. The failure of any party hereto to
enforce at any time any provision of this Agreement shall not be construed to be a waiver of such
provision, nor in any way to affect the validity of this Agreement or any part hereof or the right
of any party thereafter to enforce each and every such provision. No waiver of any breach of this
Agreement shall be held to constitute a waiver of any other or subsequent breach.

     9.11. Expenses. Each party hereto will pay all costs and expenses incident to its
negotiation and preparation of this Agreement and to its performance and compliance with all
agreements and conditions contained herein on its part to be performed or complied with, including
the fees, expenses and disbursements of its counsel and accountants; provided however that all
costs and expenses of Sellers shall be borne by Owners.

     9.12. Execution in Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be considered an original instrument, but all of which shall be
considered one and the same agreement, and shall become binding when one or more counterparts have
been signed by each of the parties hereto and delivered to each of Sellers and Buyer.

     9.13. Enforcement of Agreement. In the event of an action at law or in equity between
the parties hereto to enforce any of the provisions hereof, the unsuccessful party to such
litigation or proceeding shall pay to the successful party all costs and expenses, including
reasonable attorneys’ fees, incurred therein by such successful party on trial and appeal as
adjudged by the court, and if such successful party or parties shall recover judgment in any such
action or proceeding, such costs, expenses and attorneys’ fees may be included as part of such
judgment.

     9.14. Further Assurances. On the Closing Date Sellers and each Owner shall (i)
deliver to Buyer such other bills of sale, deeds, endorsements, assignments and other good and
sufficient instruments of conveyance and transfer, in form reasonably satisfactory to Buyer and its
counsel, as Buyer may reasonably request or as may be otherwise reasonably necessary to vest in
Buyer all the right, title and interest of Sellers in, to or under any or all of the Purchased
Assets, and (ii) take all steps as may be reasonably necessary to put Buyer in actual possession
and control of all the Purchased Assets. From time to time following the Closing, Sellers and each
Owner shall execute and deliver, or cause to be executed and delivered, to Buyer such other
instruments of conveyance and transfer as Buyer may reasonably request or as may be otherwise
necessary to more effectively convey and transfer to, and vest in, Buyer and put Buyer in
possession of, any part of the Purchased Assets, and, in the case of licenses, certificates,
approvals, authorizations, agreements, contracts, leases, easements and other commitments included
in the Purchased Assets (a) which cannot be transferred or assigned effectively without the consent
of third parties which consent has not been obtained prior to the Closing, to cooperate with Buyer
at its request in endeavoring to obtain such consent promptly, and if any such consent is
unobtainable, to use its commercially reasonable efforts to secure to Buyer the benefits thereof in
some other manner, or (b) which are otherwise not transferable or assignable, to use its best
efforts jointly with Buyer to secure to Buyer the benefits thereof in some other manner (including
the exercise of the rights of Sellers thereunder). Notwithstanding anything in this Agreement to
the contrary, this Agreement shall not constitute an agreement to assign any license, certificate,
approval, authorization, agreement, contract, lease, easement or other

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commitment included in the Purchased Assets if an attempted assignment thereof without the
consent of a third party thereto would constitute a breach thereof. After the Closing, if Sellers
receive any payment, refund or other amount which is a Purchased Asset or is otherwise properly due
and owing to Buyer, Seller will promptly remit or will cause to be remitted, such amount to Buyer.
After the Closing, if Buyer or CNU receives any payment, refund or other amount which is related to
claims (including workers’ compensation), litigation, insurance or other matters for which Sellers
are responsible hereunder, which is an Excluded Asset or which is otherwise properly due and owing
to Sellers, Buyer or CNU will promptly remit, or cause to be remitted, such amount to Seller.

     9.15. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws (as opposed to the conflicts of law provisions) of the State of Florida.

     9.16. Time is of the Essence. With respect to all dates and time periods set forth or
referred to in this Agreement, time is of the essence.

     9.17. Sellers’ Representative.

     (a) Jose M. Garcia is hereby constituted and appointed as agent for and on behalf of
the Sellers and the Owners (the “Sellers’ Representative”) to give and receive
notices and communications, to agree to, negotiate, enter into settlements and compromises
of, and demand arbitration and comply with orders of courts and awards of arbitrators with
respect to such claims, and to take all actions necessary or appropriate in the judgment of
the Sellers’ Representative for the accomplishment of the foregoing. Such agency may be
changed b a unanimous vote of the Owners upon not less that ten Business Days’ prior written
notice to CNU. In the event of the death or disability (for more than 40 days) of the
Sellers’ Representative or his resignation as Sellers’ Representative and until a successor
Sellers’ Representative shall be appointed as provided above, Carlos Garcia shall act as the
Sellers’ Representative pending the appointment of the successor Sellers’ Representative.
No bond shall be required of the Sellers’ Representative and the Sellers’ Representative
shall receive no compensation for his/her services. Notices or communications to or from
the Sellers’ Representative shall constitute notice to or from each of the Sellers and each
of the Owners. In connection with this Agreement, any Seller Ancillary Agreement, and any
instrument, agreement or document relating hereto or thereto, and in exercising or failing
to exercise all or any of the powers conferred upon the Sellers’ Representative hereunder or
thereunder, the Sellers’ Representative shall incur no responsibility whatsoever to any
Seller or any Owner by reason of any error in judgment or other act or omission performed or
omitted hereunder or thereunder or any other agreement, instrument or document, excepting
the only responsibility for any act or failure to act which represents fraud, willful
misconduct, or gross negligence. The Sellers’ Representative shall be indemnified, jointly
and severally, by the Sellers and the Owners against all Losses of any nature whatsoever,
arising out of or in connection with any claim or proceeding relating to the acts or
omissions of the Sellers’ Representative in his capacity as such hereunder or pursuant to
any Seller Ancillary Agreement.

66

 

     (b) A decision, act, consent or instruction of the Sellers’ Representative shall
constitute a decision of all Sellers and all Owners and shall be final, binding and
conclusive upon each such Seller an each such Owner, and CNU and Buyer may rely upon any
such decision, act consent, or instruction of the Sellers’ Representative as being the
decision, act, consent or instruction of each Seller and each Owner. CNU and Buyer is
hereby relieved from any liability to any person for any acts done by it in accordance with
such decision, act, consent or instruction of the Sellers’ Representative.

[REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY]

67

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.

	 	 	 	 	 
	 	CONTINUCARE CORPORATION

 	 
	 	By:  	/s/ Richard C. Pfenniger, Jr.
 	 
	 	 	Name:  	Richard C. Pfenniger, Jr. 	 
	 	 	Its: Chief Executive Officer 	 
	 
	 	CNU BLUE 1, INC.

 	 
	 	By:  	/s/ Richard C. Pfenniger, Jr.
 	 
	 	 	Name:  	Richard C. Pfenniger, Jr. 	 
	 	 	Its: President 	 
	 
	 	CNU BLUE 2, LLC

 	 
	 	By:  	/s/ Richard C. Pfenniger, Jr.
 	 
	 	 	Name:  	Richard C. Pfenniger, Jr. 	 
	 	 	Its: Manager 	 
	 
	 	MIAMI DADE HEALTH AND REHABILITATION SERVICES, INC

 	 
	 	By:  	/s/ Jose Garcia
 	 
	 	 	Name:  	Jose Garcia 	 
	 	 	Its: President 	 
	 
	 	MIAMI DADE HEALTH CENTERS, INC.

 	 
	 	By:  	/s/ Jose Garcia
 	 
	 	 	Name:  	Jose Garcia 	 
	 	 	Its: President 	 
	 
	 	WEST GABLES OPEN MRI SERVICES, INC.

 	 
	 	By:  	/s/ Jose Garcia
 	 
	 	 	Name:  	Jose Garcia 	 
	 	 	Its: President 	 

68

 

	 	 	 	 	 

	 	 	 	 	 
	 	KENT MANAGEMENT SYSTEMS, INC.

 	 
	 	By:  	/s/ Jose Garcia
 	 
	 	 	Name:  	Jose Garcia 	 
	 	 	Its: President 	 
	 
	 	MIAMI DADE, HEALTH CENTERS ONE, INC.

 	 
	 	By:  	/s/ Jose Garcia
 	 
	 	 	Name:  	Jose Garcia 	 
	 	 	Its: President 	 
	 
	 	PELU PROPERTIES, INC.

 	 
	 	By:  	/s/ Luis Cruz
 	 
	 	 	Name:  	Luis Cruz 	 
	 	 	Its: President 	 
	 
	 	PELUCA INVESTMENTS, LLC

 	 
	 	By:  	/s/ Luis Cruz
 	 
	 	 	Name:  	Luis Cruz 	 
	 	 	Its: Manager 	 
	 
	 	MDHC RED, INC.

 	 
	 	By:  	/s/ Jose Garcia
 	 
	 	 	Name:  	Jose Garcia 	 
	 	 	Its: President 	 
	 
	 	 	 
	 	                                           /s/ Jose M. Garcia
 	 
	 	Jose M. Garcia 	 
	 	 	 
	 
	 	 	 
	 	                                           /s/ Carlos Garcia
 	 
	 	Carlos Garcia 	 
	 	 	 
	 
	 	 	 
	 	                                           /s/ Luis Cruz
 	 
	 	Luis Cruz 	 
	 	 	 

69

 

	 	 	 	 	 

	 	 	 	 	 
	 	LUIS CRUZ CHILDREN’S
IRREVOCABLE
 TRUST A

 	 
	 	By:  	/s/ Luis Cruz
 	 
	 	 	Name:  	Luis Cruz 	 
	 	 	Trustee 	 
	 
	 	LUIS CRUZ CHILDREN’S IRREVOCABLE
 TRUST B

 	 
	 	By:  	/s/ Luis Cruz
 	 
	 	 	Name:  	Luis Cruz 	 
	 	 	Trustee 	 
	 
	 	LUIS CRUZ CHILDREN’S IRREVOCABLE
 TRUST C

 	 
	 	By:  	/s/ Luis Cruz
 	 
	 	 	Name:  	Luis Cruz 	 
	 	 	Trustee 	 
	 
	 	LUIS CRUZ CHILDREN’S IRREVOCABLE
 TRUST D

 	 
	 	By:  	/s/ Luis Cruz
 	 
	 	 	Name:  	Luis Cruz 	 
	 	 	Trustee 	 
	 

70

 

EXHIBIT A

AGREEMENT AND PLAN OF MERGER

     THIS
AGREEMENT AND PLAN OF MERGER (the “Agreement”) made and entered into this ___ day of
___, 2006 by and between Miami Dade Health and Rehabilitation Services, Inc, a Florida
corporation (“MDHRS”), Miami Dade Heath Centers, Inc., a Florida corporation (“MDHC”), West Gables
Open MRI Services, Inc., a Florida corporation (“West Dade”), Kent Management Systems, Inc., a
Florida corporation (“Kent”), Miami Dade Heath Centers One, Inc., a Florida corporation (“MDHC
One”), (collectively, the “Constituent Entities”) and CNU Blue 2, LLC, a Florida limited liability
company (“Acquisition” or the “Surviving Entity”).

W I T N E S S E T H:

     WHEREAS, MDHRS is a corporation duly organized and existing under and by virtue of the laws of
the State of Florida;

     WHEREAS, MDHC is a corporation duly organized and existing under and by virtue of the laws of
the State of Florida;

     WHEREAS, West Dade is a corporation duly organized and existing under and by virtue of the
laws of the State of Florida;

     WHEREAS, Kent is a corporation duly organized and existing under and by virtue of the laws of
the State of Florida;

     WHEREAS, MDHC is a corporation duly organized and existing under and by virtue of the laws of
the State of Florida;

     WHEREAS, the Surviving Entity is a limited liability company duly organized and existing under
and by virtue of the laws of the State of Florida and will be wholly owned by CNU Blue 1, Inc., a
Florida corporation (the “Buyer”) and a wholly-owned subsidiary of Continucare Corporation, a
Florida corporation (“CNU”); and

     WHEREAS, pursuant to duly authorized action by their respective Board of Directors and sole
shareholder and Management Committee and member, as applicable, the Constituent Entities and the
Surviving Entity have determined that they shall merger (the “Merger”) upon the terms and
conditions and in the manner set forth in this Agreement in accordance with Section 607.1108 of the
Florida Business Corporation Act and Section 608.438 of the Florida Limited Liability Company Act;

     NOW THEREFORE, in consideration of the mutual premises herein contained, the Constituent
Entities and the Surviving Entity hereby agree as follows:

A-1

 

     1. MERGER. The Constituent Entities and the Surviving Entity agree that the
Constituent Entities shall be merged into Acquisition, as a single and surviving entity upon the
terms and conditions set forth in this Agreement and that Acquisition, shall continue under the
laws of the State of Florida as the surviving entity.

     2. EFFECTIVE DATE OF MERGER. The Merger shall be effective at 12:00 a.m. on
_________ ___, 2006 or the Merger shall become effective upon the acceptance and filing of
the Articles of Merger with the Secretary of State of the State of Florida (the “Effective Date”).

     3. SURVIVING ENTITY. On and after the Effective Date of the Merger:

          a. Acquisition shall be the surviving entity, and shall continue to exist as a limited
liability company under the laws of the State of Florida, with all of the rights and obligations of
such Surviving Entity as are provided by the Florida Limited Liability Company Act. Immediately
following the Merger, Acquisition shall be wholly owned by Buyer and Buyer shall be wholly-owned by
CNU.

          b. The Constituent Entities shall cease to exist, and their respective property shall become
the property of the Acquisition as the surviving entity.

          c. The Surviving Entity shall remain a member managed limited liability company. The name and
address of the sole member of Acquisition is:

	 	 	 
	CNU Blue 1, Inc.

	 	7200 Corporate Center Drive
	 

	 	Suite 600
	 

	 	Miami, Florida 33126

     4. TERMS AND CONDITIONS OF THE MERGER. The terms and conditions of the Merger are as
follows:

          a. Operating Agreement. The Operating Agreement of the Surviving Entity shall continue on and
after the Effective Date as the Operating Agreement of the Surviving Entity.

     5. MANNER AND BASIS OF CONVERTING SHARES AND MEMBERSHIP INTERESTS OF THE CONSTITUENT
ENTITIES. The issued and outstanding shares and rights to acquire shares of each of the
respective merging corporations and the membership interests of each of the respective merging
limited liability companies shall be converted as follows:

          a. Each and every share of the common stock of MDHRS and each right to acquire shares of
common stock or other securities of MDHRS shall be canceled and no longer be issued or outstanding,
and no membership interests in the Surviving Entity will be issued in respect thereof.

A-2

 

          b. Each and every share of the common stock of MDHC and each right to acquire shares of common
stock or other securities of MDHC shall be canceled and no longer be issued or outstanding, and no
membership interests in the Surviving Entity will be issued in respect thereof.

          c. Each and every share of the common stock of West Dade and each right to acquire shares of
common stock or other securities of West Dade shall be canceled and no longer be issued or
outstanding, and no membership interests in the Surviving Entity will be issued in respect thereof.

          d. Each and every share of the common stock of Kent and each right to acquire shares of common
stock or other securities of Kent shall be canceled and no longer be issued or outstanding, and no
membership interests in the Surviving Entity will be issued in respect thereof.

          e. Each and every share of the common stock of MDHC One and each right to acquire shares of
common stock or other securities of MDHC One shall be canceled and no longer be issued or
outstanding, and no membership interests in the Surviving Entity will be issued in respect thereof.

          g. The Buyer, as the sole member of Acquisition immediately following the Merger, shall remain
the sole member of the Surviving Entity.

     6. APPROVAL. The Merger contemplated by this Agreement has previously been submitted
to and approved by the respective Board of Directors and Shareholder or Management Committee and
Member, as the case may be of the Constituent Entities and the Surviving Entity. Subsequent to the
execution of this Agreement by the duly authorized officers of the each of Constituent Entities and
the Surviving Entity, such officers of the Constituent Entities and the Surviving Entity shall, and
are hereby authorized and directed to, perform all such further acts and executed and deliver to
the proper authorities for filing all documents, as the same may be necessary or proper to render
effective the Merger contemplated by this Agreement.

     7. MISCELLANEOUS.

          a. Governing Law. This Agreement shall be construed in accordance with the laws of the State
of Florida.

          b. Third Party Beneficiaries. The terms and conditions of this Agreement are solely for the
benefit of the parties hereto and each of the shareholders of the merging corporations and the
members of the merging limited liability companies, and no person not a party to this Agreement
shall have any rights or benefits whatsoever under this Agreement, either as a third party
beneficiary or otherwise.

A-3

 

          c. Complete Agreement. This Agreement constitutes the complete agreement between the parties
and incorporates all prior agreements and representations in regard to the matters set forth herein and it may not be amended, changed or modified except by a
writing signed by the party to be charged by said amendment, change or modification.

     IN WITNESS WHEREOF, the Constituent Entities and the Surviving Entity have caused this
Agreement to be executed by their duly authorized officers as of the date first written above.

	 	 	 	 	 
	 	CONTITUENT ENTITIES:

MIAMI DADE HEALTH AND REHABILITATION SERVICES, INC. a

Florida corporation

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MIAMI DADE HEALTH CENTERS, INC., a Florida

corporation

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WEST GABLES OPEN MRI SERVICES, INC., a Florida

corporation

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KENT MANAGEMENT SYSTEMS, INC., a Florida corporation

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-4

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	MIAMI DADE HEALTH CENTERS ONE, INC., a Florida

corporation

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SURVIVING ENTITY:

CNU BLUE 2, LLC, a Florida limited liability company

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-5

 

	 	 	 	 	 

EXHIBIT B

ESCROW AGREEMENT

     Escrow
Agreement (the “Agreement”), dated as of _________ ___, 2006, by and among
Continucare Corporation, a Florida corporation (“CNU”) on behalf of itself and on behalf of
CNU Blue 1, Inc., a Florida corporation (“Buyer”), Jose M. Garcia, as Sellers’
Representative on behalf of each of Miami Dade Health and Rehabilitation Services, Inc., a Florida
corporation (“MDHRS”), Miami Dade Health Centers, Inc., a Florida corporation
(“MDHC”), West Gables Open MRI Services, Inc., a Florida corporation (“West Dade”),
Kent Management Systems, Inc. (“Kent”), Pelu Properties, Inc., a Florida corporation
(“Pelu”), Peluca Investments, LLC, a Florida limited liability company owned by the Owners
(“Peluca”), and Miami Dade Health Centers One, Inc., a Florida corporation (“MDHC
One, and, collectively with MDHRS, MDHC, West Dade, Kent, Pelu and Peluca, the
“Sellers”), MDHC Red, Inc., a Florida corporation (“Retain”), and each of the
shareholders of each Seller listed on the signature pages hereto (the “Owners”), and
American Stock Transfer & Trust Company, Inc. (the “Escrow Agent”).

     WHEREAS, the parties hereto are entering into this Agreement pursuant to the terms of that
certain Asset Purchase Agreement (the “Purchase Agreement”)
dated as of April ___, 2006, by and among
CNU, Buyer, CNU Blue 2, LLC, a Florida limited liability company and a wholly-owned subsidiary of
Buyer, Sellers, Retain and Owners;

     WHEREAS, each capitalized term used in this Agreement without definition, other than for
syntax or grammar, has the meaning given to it in the Purchase Agreement;

     WHEREAS, Section 4.2 of the Purchase Agreement provides for Buyer to deposit on behalf of
Sellers 1,500,000 CNU Shares in escrow, to be disbursed on the terms and conditions set forth
herein;

     WHEREAS, CNU, Buyer, Sellers, Owners and the Escrow Agent desire to evidence their agreement
with respect to the CNU Shares deposited herewith.

     NOW, THEREFORE, in consideration of the covenants hereinafter set forth and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

     Section 1. Appointment; Escrow Shares Deposit.

     (a) CNU, Buyer, Sellers and Owners each hereby appoint and designate American Stock Transfer,
Inc. to act as Escrow Agent hereunder, on the terms and subject to the conditions set forth in this
Agreement, and the Escrow Agent hereby accepts such appointment. The fees to be paid to the Escrow
Agent for its services hereunder are set forth in Section 3(g) below.

     (b) On the date hereof, Buyer shall deposit 1,500,000 CNU Shares (the “Escrow Shares”)
with the Escrow Agent.

B-1

 

     Section 2. Escrow Disbursement; Escrow Date.

     (a) Subject to Section 3(d), any Buyer Group Member shall be entitled to reimbursement from
the Escrow Shares or from cash payments by some or all of the Owners, as applicable, at the sole
option of the affected Owners, on account of any matter for which such Buyer Group Member is
entitled to indemnification pursuant to Section 8.1 of the Purchase Agreement (any such matter
being referred to as an “Indemnified Matter”).

     (b) In the event a Buyer Group Member asserts a claim for an Indemnified Matter for which such
Buyer Group Member seeks reimbursement from the Escrow Shares, CNU shall deliver simultaneously to
the Escrow Agent and to Sellers’ Representative a request (an “Escrow Shares Request”)
executed by CNU stating that a Buyer Group Member has asserted a claim for indemnification,
together with a description of such Indemnified Matter in reasonable detail, together with a good
faith estimate of the amount of Loss and Expense incurred as a result of such Indemnified Matter,
as such amount may be limited by Section 8.5 of the Purchase Agreement (“Claimed
Amount”). It is understood and agreed that the amount of any liability of any Owner to any
Buyer Group Member shall only be as determined in accordance with Article VIII of the Purchase
Agreement and that the Claimed Amount shall not: (i) be binding upon Owners or any Buyer Group
Member, (ii) limit the liability of Owners to any Buyer Group Member, or (iii) be admissible as
evidence in any proceeding between any Owner and any Buyer Group Member.

     (c) Upon receipt of an Escrow Shares Request, the Escrow Agent shall place a “hold” on and
shall not disburse the number of Escrow Shares having a value, determined in accordance with
Section 8.7 of the Purchase Agreement (measured as of the date of the Escrow Shares Request
rather than the date of release), equal to the Claimed Amount (“Restricted Shares”). None
of the Restricted Shares shall be disbursed until the amount of any liability of Owners to the
Buyer Group Member has been finally determined in accordance with Article VIII of the Purchase
Agreement for such Indemnified Matter. Upon a final determination of an Owner’s indemnification
liability to a Buyer Group Member under the Purchase Agreement, CNU shall deliver simultaneously to
the Escrow Agent and to Sellers’ Representative written evidence of such determination, including
the final amount of reimbursement owed pursuant to Article VIII of the Purchase Agreement
(“Indemnified Amount”), and a request for release of the number of Escrow Shares having a
value, determined in accordance with Section 8.7 of the Purchase Agreement, equal to the
Indemnified Amount to CNU or to such other Buyer Group Member as CNU shall otherwise direct (the
“Distribution Notice”).

     (d) Unless Sellers’ Representative shall simultaneously advise CNU and the Escrow Agent in
writing within fifteen (15) days after delivery of such Distribution Notice that the Owner(s) have
satisfied all of their liability for the Indemnified Amount that is the subject of the Distribution
Notice by means of a cash payment together with written evidence confirming such payment to the
applicable Buyer Group Member, then the Escrow Agent shall immediately release to CNU, or to such
other Buyer Group Member as CNU may otherwise direct, either (i) the number of Escrow Shares having
a value, determined in accordance with Section 8.7 of the Purchase Agreement as of the date
such shares are released, equal to the Indemnified Amount

B-2

 

(the “Owed Escrow Shares”) or, (ii) only if the amount owed to the Buyer Group Member
for such Indemnified Matter shall exceed the value of all remaining Escrow Shares, all remaining
Escrow Shares, valued in accordance with Section 8.7 of the Purchase Agreement as of the
date such shares are released, up to and not exceeding the Indemnified Amount and (iii) shall
remove any “hold” which may remain on any remaining Restricted Shares.

     (e) If within fifteen (15) days after delivery of such Distribution Notice Sellers’
Representative simultaneously advises CNU and Escrow Agent in writing that Owners(s) have satisfied
a portion of their liability for the Indemnified Amount with respect to the Indemnified Matter that
is the subject of the Distribution Notice with a cash payment together with written evidence
confirming such payment to the applicable Buyer Group Member, Escrow Agent shall release to CNU, or
to such other Buyer Group Member as CNU may otherwise direct, (i) only the number of Owed Escrow
Shares equal to the portion of such Indemnified Amount that Owner(s) did not satisfy in cash, or
(ii) if the balance of the Indemnified Amount not paid in cash by Owner(s) shall exceed the value
of all remaining Escrow Shares, all remaining Escrow Shares, valued in accordance with Section
8.7 of the Purchase Agreement as of the date such shares are released, up to and not exceeding
the unpaid balance of the Indemnified Amount and (iii) shall remove any “hold” which may remain on
any remaining Restricted Shares.

     (f) Subject to the terms and provisions of this Section 2, CNU and Sellers’ Representative
agree to deliver joint written instructions to the Escrow Agent upon the date which is eighteen
(18) months after the date of this Agreement (the “Escrow Shares Release Date”). Upon
receipt of such joint instructions, the Escrow Agent shall disburse the then existing balance of
the Escrow Shares to Owners. In the event, however, that the Escrow Agent has received, on or
before such Escrow Shares Release Date, an Escrow Shares Request for an Indemnified Matter for
which payment has not been made, the amount of Escrow Shares disbursed by the Escrow Agent on such
Escrow Shares Release Date shall be reduced by the number of Restricted Shares, valued in
accordance with Section 8.7 of the Purchase Agreement (measured as of the date of the
Escrow Shares request rather than the date of release), required to satisfy all unsatisfied Escrow
Shares Requests and the Escrow Agent shall continue to hold such Restricted Shares under the terms
and conditions of this Agreement. In the event the Escrow Agent has received an Escrow Shares
Request with respect to any Escrow Shares for which payment has not been made prior to the Escrow
Shares Release Date, the provisions of this Section 2 shall continue to govern the release of such
Escrow Shares. In the event of any disputes among the parties and/or the Escrow Agent, Section
3(d) shall apply with respect to the Restricted Shares so retained by the Escrow Agent.

     Section 3. Escrow Agent. In order to induce the Escrow Agent to hold and disburse the
Escrow Shares as required by this Agreement, Sellers, Owners, CNU and Buyer do hereby agree that:

     (a) The functions and duties of the Escrow Agent with respect to disbursements hereunder are
those of an independent contractor and include only those set forth in this Agreement. The Escrow
Agent is not entitled to act in any manner whatsoever except in accordance with the terms and
conditions of this Agreement or pursuant to written instructions or demands given in accordance
with such terms and conditions.

B-3

 

     (b) The Escrow Agent shall not be liable for any loss or damage resulting from the following:

          (i) Any default, error, action or omission of any other party.

          (ii) Subject to the final paragraph of Section 2 above, the expiration of any time limit or
other delay, unless such time limit was known to the Escrow Agent and the resulting loss was solely
caused by failure of the Escrow Agent to proceed in accordance herewith.

          (iii) Lack of authenticity, sufficiency and effectiveness of any documents delivered to it and
lack of genuineness of any signature or authority of any person to sign any such document.

          (iv) Any loss or impairment of Shares or funds deposited in a federally or state insured
account with a stock or trust company (other than the Escrow Agent or its affiliates), bank,
savings bank, or savings association resulting from the failure, insolvency or suspension of such
institution.

          (v) Compliance by the Escrow Agent with any and all legal process, writs, orders, judgments
and decrees of any court whether issued with or without jurisdiction and whether or not
subsequently vacated, modified, set aside or reversed.

          (vi) The Escrow Agent’s assertion or failure to assert any cause of action or defense in any
judicial, administrative or other proceeding either in its own interest or in the interest of any
other party or parties, provided the Escrow Agent shall have furnished timely written notice of
such proceeding to the parties hereto.

     (c) The Escrow Agent shall have no duty to inquire into the authenticity of any written
instructions or other documents delivered to it as required by this Agreement or to inquire as to
the genuineness of any signature or authority of any person to issue such instructions or execute
such other documents.

     (d) If there is any dispute regarding the disbursement of the Escrow Shares, the Escrow Agent
shall continue to hold all Restricted Shares, including the amounts thereof in dispute, until
directed to disburse the same in accordance with (i) the joint instructions of Sellers’
Representative and CNU, or (ii) a final judgment of a court of competent jurisdiction as
contemplated by the Purchase Agreement. In lieu of the foregoing, the Escrow Agent may deposit the
disputed Restricted Shares with a court of competent jurisdiction and commence an action of
interpleader between the parties in dispute.

     (e) The Escrow Agent may resign and be discharged from its duties hereunder (but only to the
extent such duties arise from and after the date such resignation becomes effective in accordance
with the terms hereof) at any time by giving at least thirty (30) calendar days written notice of
such resignation simultaneously to CNU and Sellers’ Representative, specifying a date

B-4

 

upon which such resignation shall take effect; provided, however, that the Escrow
Agent shall continue to serve until its successor accepts the Escrow Shares and assumes all
responsibilities as escrow agent hereunder; provided, further, however,
that the Escrow Agent shall remain obligated to perform any and all of its duties hereunder until
the date such resignation becomes effective in accordance with the terms hereof. Upon receipt of
such notice, a successor escrow agent shall be jointly appointed by CNU, on the one hand, and
Sellers’ Representative, on the other hand, such successor escrow agent to become the Escrow Agent
hereunder on the later of the resignation date specified in such notice or the date specified by
such successor escrow agent in the instrument of acceptance (which date shall not be more than
sixty (60) calendar days after Escrow Agent gives notice of such proposed resignation in accordance
with the terms hereof) . If an instrument of acceptance by a successor escrow agent shall not have
been delivered to the resigning Escrow Agent within sixty (60) calendar days after the resigning
Escrow Agent gives notice of such proposed resignation in accordance with the terms hereof, the
resigning Escrow Agent may tender into the registry or custody of any court of competent
jurisdiction all of the Escrow Shares and shall thereafter be relieved of its duties and
obligations hereunder (but only to the extent such duties and obligations arise from and after the
date of such tender in accordance with the terms hereof); provided, however, that
the Escrow Agent shall remain obligated to perform any and all of its duties and obligations
hereunder until the date of such tender in accordance with the terms hereof. CNU and Sellers’
Representative may at any time substitute a new Escrow Agent by giving thirty (30) calendar days
written notice thereof to the existing Escrow Agent and paying all fees and expenses of such Escrow
Agent incurred in accordance with this Agreement prior to the date of the substitution.

     (f) Indemnification. Each Seller and each Owner shall, jointly and severally, hold
the Escrow Agent harmless from, and shall indemnify the Escrow Agent against, any loss, liability,
expense (including reasonable attorneys’ fees and expenses), claim, cost, damage or demand (a
“Loss”) arising out of or in connection with the performance of the Escrow Agent’s
obligations in accordance with the provisions of this Escrow Agreement to the extent attributable
to any act or omission of any Seller or any Owner, except for any Loss arising out of any violation
of law or breach of this Agreement by, or the gross negligence or willful misconduct of, the Escrow
Agent. CNU shall hold the Escrow Agent harmless from, and shall indemnify the Escrow Agent
against, any Loss arising out of or in connection with the performance of the Escrow Agent’s
obligations in accordance with the provisions of this Escrow Agreement to the extent attributable
to any act or omission of CNU or Buyer, except for any Loss arising out of any violation of law or
breach of this Agreement by, or the gross negligence or willful misconduct of, the Escrow Agent.
CNU, Buyer, each Seller and each Owner, jointly and severally, shall hold the Escrow Agent harmless
from, and indemnify the Escrow Agent against, any Loss arising out of or in connection with the
performance of its obligations in accordance with the provisions of this Escrow Agreement and which
are not attributable to any act or omission of CNU, Buyer, any Seller, or any Owner, except for any
of the foregoing arising out of any violation of law or breach of this Agreement by, or the gross
negligence or willful misconduct of, the Escrow Agent. The foregoing indemnities in this paragraph
shall survive the resignation or substitution of the Escrow Agent or the termination of this Escrow
Agreement.

B-5

 

     (g) Expenses of Escrow Agent. For its services hereunder, the Escrow Agent shall be
entitled to a fee of $_______ per
year, pro rated for any shorter period for which the Escrow Agent shall act hereunder. The first annual payment of $___ shall be payable on the date hereof with
each remaining payment, if applicable, payable each year thereafter (or portion thereof) on the
anniversary date of the date hereof. No increase in the rate of any fee charged by the Escrow
Agent shall be valid hereunder unless previously approved in writing by CNU, on the one hand, and
Sellers’ Representative, on the other hand. Such fees shall be paid one-half by CNU and one-half
by Sellers.

     Section 4. Tax Identification Number. Each Owner has heretofore provided such Owner’s
tax identification number for reporting purposes under this Agreement.

     Section 5. No Third Party Rights. Nothing contained in this Agreement shall be deemed
to create, either expressly or by implication, any liens, claims or rights on behalf of laborers,
mechanics, materialmen or other lien holders which in any way could be construed as creating any
third party rights of any kind or nature in or to the Escrow Shares.

     Section 6. Notices. Any notice, request, instruction or other document to be given
hereunder (a “Notice”) by any party hereto to any other party shall be in writing and
delivered personally, sent by a recognized worldwide or nationwide (whichever is applicable)
overnight delivery service with charges prepaid, sent by certified mail, return receipt requested,
with postage prepaid, or sent by facsimile transmission with written confirmation:

     If to Buyer or CNU, to:

			
	                    	 	Continucare Corporation

7200 Corporate Center Drive, Suite 600

Miami, FL 33126

Attention: Chief Executive Officer

Fax: (305) 500-2104

     with a copy (which shall not constitute notice), to:

			
	                    	 	Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

150 West Flagler Street, Suite 2200

Miami, FL 33130

Attention: Geoffrey MacDonald, Esq.

Fax: (305) 789-3395

     If to any Seller or any Owner, to:

			
	                    	 	Miami Dade Health Centers, Inc.

3233 Palm Avenue

4th Floor

Hialeah, FL 33012

Attention: Jose M. Garcia, CEO

Fax: 305-642-3142

B-6

 

     with a copy (which shall not constitute notice), to:

			
	                    	 	Sandra Greenblatt, P.A.

One Biscayne Tower, Suite 3500

2 South Biscayne Boulevard

Miami, FL 33131

Attention: Sandra Greenblatt, Esq.

Fax: (305) 577-9951

     The Escrow Agent:

			
	                    	 	American Stock Transfer & Trust Company

6201 15th Avenue

Brooklyn, NY 11219

Attn: Herbert J. Lemmer

General Counsel

Fax: (718) 921-8336

or at such other address for a party as shall be specified by like Notice. Any Notice which is
sent in the manner provided herein shall be deemed to have been duly given to and received by the
party to whom it is directed upon actual receipt by such party, except that any Notice sent by
facsimile transmission shall be deemed to have been given and received upon confirmation of
transmission; provided that Notice sent by facsimile is promptly followed by duplicate
Notice to that same party sent by certified mail, return receipt requested, postage prepaid, or
sent by recognized worldwide or nationwide courier (whichever is applicable) delivery overnight
service with charges prepaid.

     Section 7. Counterparts. This document may be executed in multiple counterparts, each
of which shall be deemed an original, but all of which, when taken together, shall constitute a
fully executed document.

     Section 8. Successors and Assigns. The rights and obligations created by this
Agreement may not be assigned by any party hereto to any other person or entity without the prior
written consent of the remaining parties hereto. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their successors and permitted assigns.

     Section 9. Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Florida, without regard to rules or principles
respecting conflicts of laws.

B-7

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.

	 	 	 	 	 
	 	CONTINUCARE CORPORATION

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	

SELLERS’ REPRESENTATIVE

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	 	 
	 
	 	

AMERICAN STOCK TRANSFER & TRUST COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	
 	 
	 	 	 
	 	 	 

B-8

 

	 	 	 	 	 

EXHIBIT C

INSTRUMENT OF ASSUMPTION

     THIS INSTRUMENT OF ASSUMPTION is made as of ___, 2006 by CNU Blue 1, Inc., a Florida
corporation, (“Buyer”), in favor of each of Miami Dade Health and Rehabilitation Services,
Inc., a Florida corporation (“MDHRS”), Miami Dade Health Centers, Inc., a Florida
corporation (“MDHC”), West Gables Open MRI Services, Inc., a Florida corporation (“West
Dade”), Kent Management Systems, Inc. (“Kent”), Pelu Properties, Inc., a Florida
corporation (“Pelu”), Peluca Investments, LLC, a Florida limited liability company
(“Peluca”), and Miami Dade Health Centers One, Inc., a Florida corporation (“MDHC
One, and, collectively with MDHRS, MDHC, West Dade, Kent, Pelu, and Peluca the
“Sellers”), provides:

RECITALS:

     Pursuant to that certain Asset Purchase Agreement dated May ___, 2006 (the “Purchase
Agreement”) Sellers have agreed to sell, transfer and convey certain assets to Buyer that are
designated the Purchased Assets in the Purchase Agreement, and Buyer has assumed certain
liabilities of the Sellers that are designated as the Assumed Liabilities in the Purchase
Agreement. Pursuant to the terms and conditions of the Purchase Agreement, Buyer now desires to
make a formal assumption from the Sellers of the all Assumed Liabilities as contemplated by the
Purchase Agreement. Unless otherwise defined or the context otherwise requires, capitalized terms
used herein shall have the respective meanings given to them in the Purchase Agreement.

     NOW, THEREFORE, for and in consideration of the transfer of the Purchased Assets and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Buyer hereby assumes and agrees to discharge and perform the Assumed Liabilities in accordance with
the requirements of the Purchase Agreement and in accordance with the respective terms and subject
to the respective conditions of the Assumed Liabilities. In the event that the Buyer shall fail to
perform its obligations under this Assumption Agreement, Sellers and Owners shall be entitled to
all rights and remedies available to them with respect to indemnification pursuant to the Purchase
Agreement.

     Buyer shall not assume or have any responsibility, obligation or liability for or with respect
to, the Excluded Liabilities. In the event of a conflict between this Assumption Agreement and the
Purchase Agreement, the terms and provisions of the Purchase Agreement will control.

C-1

 

     IN WITNESS WHEREOF, Buyer has caused this Assumption Agreement to be executed and delivered in
a manner sufficient to bind it, as of the day and year first above written.

	 	 	 	 	 
	 	CNU BLUE 1, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

C-2

 

	 	 	 	 	 

EXHIBIT D-1

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (“Agreement”), is dated as of ___, 2006, by and among
Continucare Corporation, a Florida corporation (the “Company”) and Jose Garcia (the “Executive”).

          WHEREAS, the Company desires to employ the Executive in an executive capacity and the
Executive desires to accept such employment, all upon the terms and subject to the conditions set
forth in this Agreement; and

          WHEREAS, the Company is engaged in the business of providing primary health care services in
Miami-Dade, Broward and Hillsborough Counties, Florida, and related transportation, diagnostic and
administrative support services (the “Business”); and the Executive has experience and
expertise in the Business and, by virtue of his employment with Company, the Executive shall become
familiar with and possess the manner, methods, trade secrets and other confidential information
pertaining to the Business.

          NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth in this
Agreement, the Company and the Executive agree as follows:

     1. Recitals. The above recitals are true and correct and are incorporated herein by
reference.

     2. Employment; Term. The Company shall employ the Executive, and the Executive
accepts such employment, on the terms and subject to the conditions set forth in this Agreement,
for a term commencing as of the date hereof (the “Effective Date”) and ending on the first
anniversary of the Effective Date. This Agreement may be renewed upon the mutual written agreement
of the Executive and the Company.

     3. Services.

          3.1 Office and Duties. The Executive shall report to the Chief Executive Officer of
the Company (the “Chief Executive Officer”). During the Term, the Executive shall serve as
Executive Vice President of the Company with such duties, authority and responsibility as are
commensurate with such position, subject to oversight and direction of the Chief Executive Officer.
In exercising his duties and responsibilities hereunder, the Executive shall have all the power
and authority necessary to fulfill and discharge his duties and responsibilities hereunder and
shall abide by any lawful directions given by the Chief Executive Officer in good faith.
Notwithstanding the foregoing, the Executive shall not, in connection with his employment
hereunder, cause or permit the Company or any of its subsidiaries to enter into any agreement,
commitment or arrangement with, or pay any fees or other amounts to any person not dealing at arm’s
length with the Executive without first disclosing the nature of such relationship to the Chief
Executive Officer and obtaining the prior written approval of the Chief Executive Officer to any
such agreement, commitment, arrangement or payment. The Executive shall be responsible for such
additional duties commensurate with his position not materially inconsistent

D-1-1

 

with the foregoing as may be reasonably determined by the Chief Executive Officer from time to
time.

          3.2 Best Efforts. During the Term, the Executive shall diligently and competently
devote the Executive’s best efforts, full time and energies during business hours to the business
and affairs of the Company and shall use his best efforts, skills and abilities to promote the
interests of the Company and otherwise to discharge his obligations under this Agreement.

          3.3 Location of Executive. The Executive shall perform the duties of his employment
under this Agreement at the Company’s main business offices in Miami-Dade County, subject to travel
from time to time to other areas as may be reasonably required or reasonably desirable in
connection with the businesses, affairs and operations of the Company from time to time and the
performance by the Executive of his duties, obligations and responsibilities under this Agreement;
provided that subject to travel to other areas as hereinbefore specifically provided for in this
Section 3.3, the Company shall have no right to require the Executive to re-locate outside of
Miami-Dade County, Florida.

     4. Compensation.

          4.1 Annual Salary. During the Term, the Executive shall receive a base salary at the
annual rate of $275,000 (“Base Salary”), payable in accordance with the Company’s normal payroll
practices or at such other reasonable intervals as may from time to time be used by the Company for
paying its employees generally.

          4.2 Bonus. The Executive shall be eligible to participate in the Company’s Management
Compensation Program in accordance with the terms and conditions thereof; provided, however, that
the Executive acknowledges that any amounts paid under the Company’s Management Compensation
Program are determined in accordance with the terms of that program and that eligibility to
participate in such program does not constitute a guarantee that Executive shall receive a bonus
under such plan or a guarantee of the amount of any bonus that the Executive may receive
thereunder.

          4.3 Employee Automobile. The Company shall permit the Executive to use the motor
vehicle previously leased by Kent Management Systems, Inc. on behalf of the Executive prior to the
date hereof, which lease (the “Auto Lease”) was assumed by the Company. It being understood that
the Company shall have no obligation to continue to permit the Executive to use such motor vehicle
or any other motor vehicle beyond the termination or expiration of the Term and the Auto Lease,
whichever shall first terminate or expire.

          4.4 Options. The Executive shall receive options to acquire 100,000 shares of the
Company’s common stock, par value $.0001 per share (the “Options”). The Options shall be issued
under the Company’s Amended and Restated 2000 Stock Option Plan (the “Plan”) and shall be subject
to the terms and conditions set forth therein. The Options shall be documented by the Company’s
standard form of Stock Option Agreement. The terms of the Options shall provide that the Options
shall: (a) have a per share exercise price equal to the per share closing

D-1-2

 

price of the Common Stock on the American Stock Exchange as of the date of this Agreement, (b)
vest in four equal annual installments with the first such installment vesting on the first
anniversary date of this Agreement, and (c) unless exercised prior to such date terminate and be of
no further force and effect on the tenth anniversary of this Agreement.

     5. Reimbursement of Expenses; Benefits.

          5.1 Reimbursement of Expenses. Upon submission of appropriate documentation and in
specific accordance with such guidelines as may be reasonably established from time to time by the
Company, the Executive shall be entitled to reimbursement for all reasonable, out-of-pocket
expenses incurred by him during the Term in connection with the proper and efficient discharge of
his duties hereunder.

          5.2 Employee Benefit Plans and Programs. During the Term, the Executive shall be
entitled to participate in the Company’s employee benefit plans and programs. The Executive’s
service with the Company prior to the Effective Date shall be counted for purposes of all
eligibility, waiting periods and vesting requirements from time to time in effect. Nothing in this
Agreement shall require the Company at any time to create or continue any such plan or program or
to fix, amend or retain eligibility requirements so as to include the Executive.

          5.3 Vacations. The Executive shall be entitled to four (4) weeks of paid vacation
during the Term, taking into consideration the business needs of the Company.

     6. Termination. The Executive’s employment under this Agreement may be terminated
prior to the end of the Term by the Company or the Executive without any breach of this Agreement
only under the following circumstances:

          6.1 Death. This Agreement and the Executive’s employment under this Agreement shall
terminate immediately and automatically upon the Executive’s death.

          6.2 Disability. This Agreement and the Executive’s employment under this Agreement
may be terminated if the Executive shall suffer a “Disability,” which shall mean any incapacity,
illness or disability of the Executive which renders the Executive mentally or physically unable to
perform his duties under this Agreement for a continuous period of sixty (60) or more consecutive
days or for ninety (90) days, whether consecutive or not, within a one hundred eighty (180) day
period, during the Term, as reasonably determined by a physician mutually selected by Executive and
the Company. Termination due to Disability shall be deemed to have occurred upon the first day of
the month following the determination of Disability as defined in the preceding sentence.

          6.3 For Cause. The Company may terminate the Executive’s employment under this
Agreement for Cause (as hereinafter defined). “Cause” shall mean: (a) committing or participation
in an act of fraud, gross neglect, willful misconduct, recklessness, embezzlement or dishonesty
against the Company or any of its affiliates or any customer or supplier of the Company or any
other person, entity or governmental body having dealing with the Company; (b) being indicted for
or convicted of an act or acts constituting a felony under applicable laws of

D-1-3

 

the United States or any state thereof; (c) if applicable, loss of any state or federal
license required for the Executive to perform the Executive’s material duties or responsibilities
for the Company; provided, however, that this Section 6.3(c) shall not be applicable if such loss
of license shall be a result of any actions or inactions outside the Executive’s control; (d)
habitual neglect of duty or willful disobedience of the lawful orders of the Chief Executive
Officer given in good faith that are not inconsistent with the provisions of this Agreement; (e)
breach of or failure to observe any of the material terms or conditions of this Agreement; or (f)
any assignment of this Agreement by the Executive in violation of this Agreement; provided,
however, that if an event constituting “Cause” under clauses (a) (with respect to gross neglect
only), (c), (d) or (e) above is curable, then the Executive shall have the opportunity to cure the
same within fifteen (15) days after receipt of written notice from Company setting forth the
conduct committed in reasonable detail and that Company intends to terminate the Executive for
“Cause” if the breach is not timely cured.

          6.4 Without Cause. Upon prior written notice to Executive, the Company may (a)
terminate the Executive’s employment hereunder other than for Cause; (b) substantially diminish the
duties and responsibilities of Executive; or (c) materially change the title or position of
Executive in the hierarchy of the Company (all of the foregoing together with any other material
breach of this Agreement by the Company shall be deemed a termination “Without Cause”). In the
instance of the Company’s actions pursuant to (b) or (c) above, the Executive may either consent to
such action or terminate his employment with the Company in writing fifteen (15) days after such
written notice form the Company, which termination shall be deemed a termination Without Cause by
the Company.

     7. Payments After Termination. If this Agreement and the Executive’s employment
hereunder are terminated then the Executive or the Executive’s estate, as the case may be, shall
receive the Base Salary and any unpaid expense reimbursements through the date of termination in
accordance with the terms of this Agreement and, in the event that this Agreement is terminated
pursuant to Section 6.4 above, the Executive shall also receive the Base Salary for the remainder
of the twelve month period from the Effective Date. Thereafter, the Executive shall not be
entitled to receive any further compensation or benefits from the Company whatsoever.

     8. Trade Secrets. Executive covenants and agrees that he will not divulge or make use
of any trade secrets or other confidential information of the Business other than to disclose such
secrets and information to the Company or as necessary to perform his duties under this Agreement.
If Executive violates any of its obligations under this Section 8, the Company may proceed
against him in law or in equity for such damages or other relief as a court may deem appropriate.
Executive acknowledges that a violation of this Section 8 may cause the Company irreparable
harm which may not be adequately compensated for by money damages. Executive therefore agrees that
in the event of any actual or threatened violation of this Section 8, the Company shall be
entitled, in addition to other remedies that either of them may have, to a temporary restraining
order and to preliminary and final injunctive relief against Executive or to prevent any violations
of this Section 8, without the necessity of posting a bond. The prevailing party in any
action commenced under this Section 8 shall also be entitled to receive reasonable
attorneys’ fees and court costs. It is the intent and understanding of each party hereto that if,
in any action before any court or agency legally empowered to enforce this Section 8, any
term,

D-1-4

 

restriction, covenant or promise in this Section 8 is found to be unreasonable and for
that reason unenforceable, then such term, restriction, covenant or promise shall be deemed
modified to the extent necessary to make it enforceable by such court or agency to the maximum
extent permitted by applicable requirements of law.

     9. Withholding. Anything to the contrary notwithstanding, all payments required to be
made by the Company hereunder to the Executive or the Executive’s estate or beneficiaries shall be
subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as
the Company may reasonably determine it should withhold pursuant to any applicable law or
regulation.

     10. Notices. All notices or other communications required or permitted hereunder
shall be in writing and shall be deemed given or delivered when delivered personally or by fax with
automatic confirmation (with a copy via other means specified herein) or two (2) business days
after being sent by prepaid registered or certified mail, return receipt requested, or by private
courier or express delivery service addressed as follows:

     If to the Company:

			
	                    	 	Continucare Corporation

7200 Corporate Center Drive, Suite 600

Miami, FL 33126

Attention: Chief Executive Officer

Fax: (305) 500-2104

     with a copy (which shall not constitute notice), to:

			
	                    	 	Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

150 West Flagler Street, Suite 2200

Miami, FL 33130

Attention: Geoffrey MacDonald, Esq.

Fax: (305) 789-3395

     If to Executive, to:

			
	                    	 	Jose M. Garcia

__________________

__________________

Attention: _________

     with a copy (which shall not constitute notice), to:

			
	                    	 	Sandra Greenblatt, P.A.

One Biscayne Tower, Suite 3500

2 South Biscayne Boulevard

Miami, FL 33131

Attention: Sandra P. Greenblatt, Esq.

Fax: (305) 577-9951

D-1-5

 

or to such other address as such party may indicate by a notice delivered to the other party
hereto.

     11. Prevailing Party. In the event of any dispute with regard to this Agreement, the
prevailing party shall be entitled to receive from the non-prevailing party and the non-prevailing
party shall pay upon demand all reasonable fees and expenses of counsel for the prevailing party.

     12. Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the parties, and supersedes all prior discussions, agreements and
understandings of every kind and nature among them as to the subject matter hereof.

     13. Amendments to Agreement. This Agreement shall not be amended except by a writing
signed by each party to the Agreement, and this Agreement may not be discharged except by
performance in accordance with its terms or by a writing signed by each party to the Agreement.

     14. U.S. Dollars. All dollar amounts in this Agreement are stated in United States
Dollars.

     15. Governing Law. This agreement and its validity, construction and performance
shall be governed in all respects by the law of the State of Florida, without giving effect to
principles of conflicts of laws. Venue for any proceeding arising from or related to this
Agreement shall be in Miami-Dade County, Florida.

     16. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and permitted assigns. This
Agreement may not be assigned by the Executive without the prior written consent of the Company.
This Agreement may be assigned by the Company in connection with the sale, transfer or other
disposition of all or substantially all of the Company’s assets or business; provided, however,
that such assignee shall agree in writing to be bound by the terms of this Agreement.

     17. Pronouns. Whenever the context requires, the use in this Agreement of a pronoun
of any gender shall be deemed to refer also to any other gender, and the use of the singular shall
be deemed to refer also to the plural.

     18. Headings. The headings of this Agreement are inserted for convenience of
reference only and shall not constitute a part hereof.

     19. Execution in Counterparts. This Agreement may be executed in several
counterparts, by original or facsimile signature, each of which so executed shall be deemed to be

D-1-6

 

an original and such counterparts together shall be deemed to be one and the same instrument,
which shall be deemed to be executed as of the date first above written.

     20. Further Assurances. The parties hereto shall sign such further documents and do
and perform and cause to be done and performed such further and other acts and things as may be
necessary or desirable in order to give full effect to this Agreement and every party thereof.

     21. Survival. Any termination of this Agreement shall not affect the ongoing
provisions of this Agreement, which shall survive such termination in accordance with their terms.

     22. Severability. The invalidity or unenforceability, in whole or in part, or any
covenant, promise or undertaking, or any section, subsection, paragraph, sentence, clause, phrase
or word or of any provision of this Agreement other than Section 4, shall not affect the validity
or enforceability of the remaining portions thereof.

     23. Participation of Parties; Construction. The parties hereto acknowledge that this
Agreement and all matters contemplated herein have been negotiated between both of the parties
hereto and their respective legal counsel and that both parties have participated in the drafting
and preparation of this Agreement from the commencement of negotiations at all times through the
execution hereof. The parties hereto acknowledge that they have each read this Agreement and
understand the effect of its provisions. Accordingly, this Agreement shall be interpreted and
construed without reference to any rule requiring that this Agreement be interpreted or construed
against the party causing it to be drafted.

     24. Independent Counsel. The Executive acknowledges that counsel to the Company has
not represented him nor provided him with legal or other advice in connection with the transactions
contemplated by this Agreement and that he has been urged to seek independent legal, tax and
financial advice in order to analyze the risks and merits of the transactions contemplated by this
Agreement.

THE EXECUTIVE AND THE COMPANY EACH ACKNOWLEDGES THAT HE OR IT HAS READ ALL OF THE TERMS OF THIS
AGREEMENT, UNDERSTANDS THE AGREEMENT, AND AGREES TO ABIDE BY ITS TERMS AND CONDITIONS.

D-1-7

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth in the
first paragraph of this Agreement.

	 	 	 	 	 
	 	THE COMPANY:

CONTINUCARE CORPORATION,

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE EXECUTIVE:

 	 
	 	
 	 
	 	 	 
	 	 	 

D-1-8

 

	 	 	 	 	 

EXHIBIT D-2

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (“Agreement”), is dated as of _________, 2006, by and among
Continucare Corporation, a Florida corporation (the “Company”) and Dr. Luis Cruz (the “Executive”).

          WHEREAS, the Company desires to employ the Executive in an executive capacity and the
Executive desires to accept such employment, all upon the terms and subject to the conditions set
forth in this Agreement; and

          WHEREAS, the Company is engaged in the business of providing primary health care services in
Miami-Dade, Broward and Hillsborough Counties, Florida, and related transportation, diagnostic and
administrative support services (the “Business”); and the Executive has experience and
expertise in the Business and, by virtue of his employment with Company, the Executive shall become
familiar with and possess the manner, methods, trade secrets and other confidential information
pertaining to the Business.

          NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth in this
Agreement, the Company and the Executive agree as follows:

     1. Recitals. The above recitals are true and correct and are incorporated herein by
reference.

     2. Employment; Term. The Company shall employ the Executive, and the Executive
accepts such employment, on the terms and subject to the conditions set forth in this Agreement,
for a term commencing as of the date hereof (the “Effective Date”) and ending on the first
anniversary of the Effective Date. This Agreement may be renewed upon the mutual written agreement
of the Executive and the Company.

     3. Services.

          3.1 Office and Duties. The Executive shall report to the Chief Executive Officer of
the Company (the “Chief Executive Officer”). During the Term, the Executive shall serve as Vice
Chairman of the Company with such duties, authority and responsibility as are commensurate with
such position, subject to oversight and direction of the Chief Executive Officer. In exercising
his duties and responsibilities hereunder, the Executive shall have all the power and authority
necessary to fulfill and discharge his duties and responsibilities hereunder and shall abide by any
lawful directions given by the Chief Executive Officer in good faith. Notwithstanding the
foregoing, the Executive shall not, in connection with his employment hereunder, cause or permit
the Company or any of its subsidiaries to enter into any agreement, commitment or arrangement with,
or pay any fees or other amounts to any person not dealing at arm’s length with the Executive
without first disclosing the nature of such relationship to the Chief Executive Officer and
obtaining the prior written approval of the Chief Executive Officer to any such agreement,
commitment, arrangement or payment. The Executive shall be responsible for such additional duties
commensurate with his position not materially inconsistent

D-2-1

 

with the foregoing as may be reasonably determined by the Chief Executive Officer from time to
time.

          3.2 Best Efforts. During the Term, the Executive shall diligently and competently
devote the Executive’s best efforts, full time and energies during business hours to the business
and affairs of the Company and shall use his best efforts, skills and abilities to promote the
interests of the Company and otherwise to discharge his obligations under this Agreement.

          3.3 Location of Executive. The Executive shall perform the duties of his employment
under this Agreement at the Company’s main business offices in Miami-Dade County, subject to travel
from time to time to other areas as may be reasonably required or reasonably desirable in
connection with the businesses, affairs and operations of the Company from time to time and the
performance by the Executive of his duties, obligations and responsibilities under this Agreement;
provided that subject to travel to other areas as hereinbefore specifically provided for in this
Section 3.3, the Company shall have no right to require the Executive to re-locate outside of
Miami-Dade County, Florida.

     4. Compensation.

          4.1 Annual Salary. During the Term, the Executive shall receive a base salary at the
annual rate of $225,000 (“Base Salary”), payable in accordance with the Company’s normal payroll
practices or at such other reasonable intervals as may from time to time be used by the Company for
paying its employees generally.

          4.2 Bonus. The Executive shall be eligible to participate in the Company’s Management
Compensation Program in accordance with the terms and conditions thereof; provided, however, that
the Executive acknowledges that any amounts paid under the Company’s Management Compensation
Program are determined in accordance with the terms of that program and that eligibility to
participate in such program does not constitute a guarantee that Executive shall receive a bonus
under such plan or a guarantee of the amount of any bonus that the Executive may receive
thereunder.

          4.3 Options. The Executive shall receive options to acquire 100,000 shares of the
Company’s common stock, par value $.0001 per share (the “Options”). The Options shall be issued
under the Company’s Amended and Restated 2000 Stock Option Plan (the “Plan”) and shall be subject
to the terms and conditions set forth therein. The Options shall be documented by the Company’s
standard form of Stock Option Agreement. The terms of the Options shall provide that the Options
shall: (a) have a per share exercise price equal to the per share closing price of the Common Stock
on the American Stock Exchange as of the date of this Agreement, (b) vest in four equal annual
installments with the first such installment vesting on the first anniversary date of this
Agreement, and (c) unless exercised prior to such date terminate and be of no further force and
effect on the tenth anniversary of this Agreement.

     5. Reimbursement of Expenses; Benefits.

D-2-2

 

          5.1 Reimbursement of Expenses. Upon submission of appropriate documentation and in
specific accordance with such guidelines as may be reasonably established from time to time by the
Company, the Executive shall be entitled to reimbursement for all reasonable, out-of-pocket
expenses incurred by him during the Term in connection with the proper and efficient discharge of
his duties hereunder.

          5.2 Employee Benefit Plans and Programs. During the Term, the Executive shall be
entitled to participate in the Company’s employee benefit plans and programs. The Executive’s
service with the Company prior to the Effective Date shall be counted for purposes of all
eligibility, waiting periods and vesting requirements from time to time in effect. Nothing in this
Agreement shall require the Company at any time to create or continue any such plan or program or
to fix, amend or retain eligibility requirements so as to include the Executive.

          5.3 Vacations. The Executive shall be entitled to four (4) weeks of paid vacation
during the Term, taking into consideration the business needs of the Company.

     6. Termination. The Executive’s employment under this Agreement may be terminated
prior to the end of the Term by the Company or the Executive without any breach of this Agreement
only under the following circumstances:

          6.1 Death. This Agreement and the Executive’s employment under this Agreement shall
terminate immediately and automatically upon the Executive’s death.

          6.2 Disability. This Agreement and the Executive’s employment under this Agreement
may be terminated if the Executive shall suffer a “Disability,” which shall mean any incapacity,
illness or disability of the Executive which renders the Executive mentally or physically unable to
perform his duties under this Agreement for a continuous period of sixty (60) or more consecutive
days or for ninety (90) days, whether consecutive or not, within a one hundred eighty (180) day
period, during the Term, as reasonably determined by a physician mutually selected by Executive and
the Company. Termination due to Disability shall be deemed to have occurred upon the first day of
the month following the determination of Disability as defined in the preceding sentence.

          6.3 For Cause. The Company may terminate the Executive’s employment under this
Agreement for Cause (as hereinafter defined). “Cause” shall mean: (a) committing or participation
in an act of fraud, gross neglect, willful misconduct, recklessness, embezzlement or dishonesty
against the Company or any of its affiliates or any customer or supplier of the Company or any
other person, entity or governmental body having dealing with the Company; (b) being indicted for
or convicted of an act or acts constituting a felony under applicable laws of the United States or
any state thereof; (c) if applicable, loss of any state or federal license required for the
Executive to perform the Executive’s material duties or responsibilities for the Company; provided,
however, that this Section 6.3(c) shall not be applicable if such loss of license shall be a result
of any actions or inactions outside the Executive’s control; (d) habitual neglect of duty or
willful disobedience of the lawful orders of the Chief Executive Officer given in good faith that
are not inconsistent with the provisions of this Agreement; (e) breach of or failure to observe any
of the material terms or conditions of this Agreement; or (f) any

D-2-3

 

assignment of this Agreement by the Executive in violation of this Agreement; provided,
however, that if an event constituting “Cause” under clauses (a) (with respect to gross neglect
only), (c), (d) or (e) above is curable, then the Executive shall have the opportunity to cure the
same within fifteen (15) days after receipt of written notice from Company setting forth the
conduct committed in reasonable detail and that Company intends to terminate the Executive for
“Cause” if the breach is not timely cured.

          6.4 Without Cause. Upon prior written notice to Executive, the Company may (a)
terminate the Executive’s employment hereunder other than for Cause; (b) substantially diminish the
duties and responsibilities of Executive; or (c) materially change the title or position of
Executive in the hierarchy of the Company (all of the foregoing together with any other material
breach of this Agreement by the Company shall be deemed a termination “Without Cause”). In the
instance of the Company’s actions pursuant to (b) or (c) above, the Executive may either consent to
such action or terminate his employment with the Company in writing fifteen (15) days after such
written notice form the Company, which termination shall be deemed a termination Without Cause by
the Company.

     7. Payments After Termination. If this Agreement and the Executive’s employment
hereunder are terminated then the Executive or the Executive’s estate, as the case may be, shall
receive the Base Salary and any unpaid expense reimbursements through the date of termination in
accordance with the terms of this Agreement and, in the event that this Agreement is terminated
pursuant to Section 6.4 above, the Executive shall also receive the Base Salary for the remainder
of the twelve month period from the Effective Date. Thereafter, the Executive shall not be
entitled to receive any further compensation or benefits from the Company whatsoever.

     8. Trade Secrets. Executive covenants and agrees that he will not divulge or make use
of any trade secrets or other confidential information of the Business other than to disclose such
secrets and information to the Company or as necessary to perform his duties under this Agreement.
If Executive violates any of its obligations under this Section 8, the Company may proceed
against him in law or in equity for such damages or other relief as a court may deem appropriate.
Executive acknowledges that a violation of this Section 8 may cause the Company irreparable
harm which may not be adequately compensated for by money damages. Executive therefore agrees that
in the event of any actual or threatened violation of this Section 8, the Company shall be
entitled, in addition to other remedies that either of them may have, to a temporary restraining
order and to preliminary and final injunctive relief against Executive or to prevent any violations
of this Section 8, without the necessity of posting a bond. The prevailing party in any
action commenced under this Section 8 shall also be entitled to receive reasonable
attorneys’ fees and court costs. It is the intent and understanding of each party hereto that if,
in any action before any court or agency legally empowered to enforce this Section 8, any
term, restriction, covenant or promise in this Section 8 is found to be unreasonable and
for that reason unenforceable, then such term, restriction, covenant or promise shall be deemed
modified to the extent necessary to make it enforceable by such court or agency to the maximum
extent permitted by applicable requirements of law.

     9. Withholding. Anything to the contrary notwithstanding, all payments required to be
made by the Company hereunder to the Executive or the Executive’s estate or beneficiaries shall be
subject to the withholding of such amounts, if any, relating to tax and other payroll

D-2-4

 

deductions as the Company may reasonably determine it should withhold pursuant to any
applicable law or regulation.

     10. Notices. All notices or other communications required or permitted hereunder
shall be in writing and shall be deemed given or delivered when delivered personally or by fax with
automatic confirmation (with a copy via other means specified herein) or two (2) business days
after being sent by prepaid registered or certified mail, return receipt requested, or by private
courier or express delivery service addressed as follows:

     If to the Company:

			
	                    	 	Continucare Corporation

7200 Corporate Center Drive, Suite 600

Miami, FL 33126

Attention: Chief Executive Officer

Fax: (305) 500-2104

     with a copy (which shall not constitute notice), to:

			
	                    	 	Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

150 West Flagler Street, Suite 2200

Miami, FL 33130

Attention: Geoffrey MacDonald, Esq.

Fax: (305) 789-3395

     If to Executive, to:

			
	                    	 	Dr. Luis Cruz

__________________

__________________

Attention: _________

     with a copy (which shall not constitute notice), to:

			
	                    	 	Sandra Greenblatt, P.A.

One Biscayne Tower, Suite 3500

2 South Biscayne Boulevard

Miami, FL 33131

Attention: Sandra P. Greenblatt, Esq.

Fax: (305) 577-9951

or to such other address as such party may indicate by a notice delivered to the other party
hereto.

D-2-5

 

     11. Prevailing Party. In the event of any dispute with regard to this Agreement, the
prevailing party shall be entitled to receive from the non-prevailing party and the non-prevailing
party shall pay upon demand all reasonable fees and expenses of counsel for the prevailing party.

     12. Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the parties, and supersedes all prior discussions, agreements and
understandings of every kind and nature among them as to the subject matter hereof.

     13. Amendments to Agreement. This Agreement shall not be amended except by a writing
signed by each party to the Agreement, and this Agreement may not be discharged except by
performance in accordance with its terms or by a writing signed by each party to the Agreement.

     14. U.S. Dollars. All dollar amounts in this Agreement are stated in United States
Dollars.

     15. Governing Law. This agreement and its validity, construction and performance
shall be governed in all respects by the law of the State of Florida, without giving effect to
principles of conflicts of laws. Venue for any proceeding arising from or related to this
Agreement shall be in Miami-Dade County, Florida.

     16. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and permitted assigns. This
Agreement may not be assigned by the Executive without the prior written consent of the Company.
This Agreement may be assigned by the Company in connection with the sale, transfer or other
disposition of all or substantially all of the Company’s assets or business; provided, however,
that such assignee shall agree in writing to be bound by the terms of this Agreement.

     17. Pronouns. Whenever the context requires, the use in this Agreement of a pronoun
of any gender shall be deemed to refer also to any other gender, and the use of the singular shall
be deemed to refer also to the plural.

     18. Headings. The headings of this Agreement are inserted for convenience of
reference only and shall not constitute a part hereof.

     19. Execution in Counterparts. This Agreement may be executed in several
counterparts, by original or facsimile signature, each of which so executed shall be deemed to be
an original and such counterparts together shall be deemed to be one and the same instrument, which
shall be deemed to be executed as of the date first above written.

     20. Further Assurances. The parties hereto shall sign such further documents and do
and perform and cause to be done and performed such further and other acts and things as may be
necessary or desirable in order to give full effect to this Agreement and every party thereof.

D-2-6

 

     21. Survival. Any termination of this Agreement shall not affect the ongoing
provisions of this Agreement, which shall survive such termination in accordance with their terms.

     22. Severability. The invalidity or unenforceability, in whole or in part, or any
covenant, promise or undertaking, or any section, subsection, paragraph, sentence, clause, phrase
or word or of any provision of this Agreement other than Section 4, shall not affect the validity
or enforceability of the remaining portions thereof.

     23. Participation of Parties; Construction. The parties hereto acknowledge that this
Agreement and all matters contemplated herein have been negotiated between both of the parties
hereto and their respective legal counsel and that both parties have participated in the drafting
and preparation of this Agreement from the commencement of negotiations at all times through the
execution hereof. The parties hereto acknowledge that they have each read this Agreement and
understand the effect of its provisions. Accordingly, this Agreement shall be interpreted and
construed without reference to any rule requiring that this Agreement be interpreted or construed
against the party causing it to be drafted.

     24. Independent Counsel. The Executive acknowledges that counsel to the Company has
not represented him nor provided him with legal or other advice in connection with the transactions
contemplated by this Agreement and that he has been urged to seek independent legal, tax and
financial advice in order to analyze the risks and merits of the transactions contemplated by this
Agreement.

THE EXECUTIVE AND THE COMPANY EACH ACKNOWLEDGES THAT HE OR IT HAS READ ALL OF THE TERMS OF THIS
AGREEMENT, UNDERSTANDS THE AGREEMENT, AND AGREES TO ABIDE BY ITS TERMS AND CONDITIONS.

D-2-7

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth in the
first paragraph of this Agreement.

	 	 	 	 	 
	 	THE COMPANY:

CONTINUCARE CORPORATION,

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE EXECUTIVE:

 	 
	 	
 	 
	 	 	 
	 	 	 

D-2-8

 

	 	 	 	 	 

EXHIBIT D-3

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (“Agreement”), is dated as of _____________, 2006, by and among
Continucare Corporation, a Florida corporation (the “Company”) and Carlos Garcia (the “Executive”).

          WHEREAS, the Company desires to employ the Executive in an executive capacity and the
Executive desires to accept such employment, all upon the terms and subject to the conditions set
forth in this Agreement; and

          WHEREAS, the Company is engaged in the business of providing primary health care services in
Miami-Dade, Broward and Hillsborough Counties, Florida, and related transportation, diagnostic and
administrative support services (the “Business”); and the Executive has experience and
expertise in the Business and, by virtue of his employment with Company, the Executive shall become
familiar with and possess the manner, methods, trade secrets and other confidential information
pertaining to the Business.

          NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth in this
Agreement, the Company and the Executive agree as follows:

     1. Recitals. The above recitals are true and correct and are incorporated herein by
reference.

     2. Employment; Term. The Company shall employ the Executive, and the Executive
accepts such employment, on the terms and subject to the conditions set forth in this Agreement,
for a term commencing as of the date hereof (the “Effective Date”) and ending on the first
anniversary of the Effective Date. This Agreement may be renewed upon the mutual written agreement
of the Executive and the Company.

     3. Services.

          3.1 Office and Duties. The Executive shall report to the Chief Executive Officer of
the Company (the “Chief Executive Officer”). During the Term, the Executive shall serve as
President — Diagnostics Division of the Company with such duties, authority and responsibility as
are commensurate with such position, subject to oversight and direction of the Chief Executive
Officer. In exercising his duties and responsibilities hereunder, the Executive shall have all the
power and authority necessary to fulfill and discharge his duties and responsibilities hereunder
and shall abide by any lawful directions given by the Chief Executive Officer in good faith.
Notwithstanding the foregoing, the Executive shall not, in connection with his employment
hereunder, cause or permit the Company or any of its subsidiaries to enter into any agreement,
commitment or arrangement with, or pay any fees or other amounts to any person not dealing at arm’s
length with the Executive without first disclosing the nature of such relationship to the Chief
Executive Officer and obtaining the prior written approval of the Chief Executive Officer to any
such agreement, commitment, arrangement or payment. The Executive shall be responsible for such
additional duties commensurate with his position not materially inconsistent

D-3-1

 

with the foregoing as may be reasonably determined by the Chief Executive Officer from time to
time.

          3.2 Best Efforts. During the Term, the Executive shall diligently and competently
devote the Executive’s best efforts, full time and energies during business hours to the business
and affairs of the Company and shall use his best efforts, skills and abilities to promote the
interests of the Company and otherwise to discharge his obligations under this Agreement.

          3.3 Location of Executive. The Executive shall perform the duties of his employment
under this Agreement at the Company’s main business offices in Miami-Dade County, subject to travel
from time to time to other areas as may be reasonably required or reasonably desirable in
connection with the businesses, affairs and operations of the Company from time to time and the
performance by the Executive of his duties, obligations and responsibilities under this Agreement;
provided that subject to travel to other areas as hereinbefore specifically provided for in this
Section 3.3, the Company shall have no right to require the Executive to re-locate outside of
Miami-Dade County, Florida.

     4. Compensation.

          4.1 Annual Salary. During the Term, the Executive shall receive a base salary at the
annual rate of $225,000 (“Base Salary”), payable in accordance with the Company’s normal payroll
practices or at such other reasonable intervals as may from time to time be used by the Company for
paying its employees generally.

          4.2 Bonus. The Executive shall be eligible to participate in the Company’s Management
Compensation Program in accordance with the terms and conditions thereof; provided, however, that
the Executive acknowledges that any amounts paid under the Company’s Management Compensation
Program are determined in accordance with the terms of that program and that eligibility to
participate in such program does not constitute a guarantee that Executive shall receive a bonus
under such plan or a guarantee of the amount of any bonus that the Executive may receive
thereunder.

          4.3 Options. The Executive shall receive options to acquire 100,000 shares of the
Company’s common stock, par value $.0001 per share (the “Options”). The Options shall be issued
under the Company’s Amended and Restated 2000 Stock Option Plan (the “Plan”) and shall be subject
to the terms and conditions set forth therein. The Options shall be documented by the Company’s
standard form of Stock Option Agreement. The terms of the Options shall provide that the Options
shall: (a) have a per share exercise price equal to the per share closing price of the Common Stock
on the American Stock Exchange as of the date of this Agreement, (b) vest in four equal annual
installments with the first such installment vesting on the first anniversary date of this
Agreement, and (c) unless exercised prior to such date terminate and be of no further force and
effect on the tenth anniversary of this Agreement.

     5. Reimbursement of Expenses; Benefits.

D-3-2

 

          5.1 Reimbursement of Expenses. Upon submission of appropriate documentation and in
specific accordance with such guidelines as may be reasonably established from time to time by the
Company, the Executive shall be entitled to reimbursement for all reasonable, out-of-pocket
expenses incurred by him during the Term in connection with the proper and efficient discharge of
his duties hereunder.

          5.2 Employee Benefit Plans and Programs. During the Term, the Executive shall be
entitled to participate in the Company’s employee benefit plans and programs. The Executive’s
service with the Company prior to the Effective Date shall be counted for purposes of all
eligibility, waiting periods and vesting requirements from time to time in effect. Nothing in this
Agreement shall require the Company at any time to create or continue any such plan or program or
to fix, amend or retain eligibility requirements so as to include the Executive.

          5.3 Vacations. The Executive shall be entitled to four (4) weeks of paid vacation
during the Term, taking into consideration the business needs of the Company.

     6. Termination. The Executive’s employment under this Agreement may be terminated
prior to the end of the Term by the Company or the Executive without any breach of this Agreement
only under the following circumstances:

          6.1 Death. This Agreement and the Executive’s employment under this Agreement shall
terminate immediately and automatically upon the Executive’s death.

          6.2 Disability. This Agreement and the Executive’s employment under this Agreement
may be terminated if the Executive shall suffer a “Disability,” which shall mean any incapacity,
illness or disability of the Executive which renders the Executive mentally or physically unable to
perform his duties under this Agreement for a continuous period of sixty (60) or more consecutive
days or for ninety (90) days, whether consecutive or not, within a one hundred eighty (180) day
period, during the Term, as reasonably determined by a physician mutually selected by Executive and
the Company. Termination due to Disability shall be deemed to have occurred upon the first day of
the month following the determination of Disability as defined in the preceding sentence.

          6.3 For Cause. The Company may terminate the Executive’s employment under this
Agreement for Cause (as hereinafter defined). “Cause” shall mean: (a) committing or participation
in an act of fraud, gross neglect, willful misconduct, recklessness, embezzlement or dishonesty
against the Company or any of its affiliates or any customer or supplier of the Company or any
other person, entity or governmental body having dealing with the Company; (b) being indicted for
or convicted of an act or acts constituting a felony under applicable laws of the United States or
any state thereof; (c) if applicable, loss of any state or federal license required for the
Executive to perform the Executive’s material duties or responsibilities for the Company; provided,
however, that this Section 6.3(c) shall not be applicable if such loss of license shall be a result
of any actions or inactions outside the Executive’s control; (d) habitual neglect of duty or
willful disobedience of the lawful orders of the Chief Executive Officer given in good faith that
are not inconsistent with the provisions of this Agreement; (e) breach of or failure to observe any
of the material terms or conditions of this Agreement; or (f) any

D-3-3

 

assignment of this Agreement by the Executive in violation of this Agreement; provided,
however, that if an event constituting “Cause” under clauses (a) (with respect to gross neglect
only), (c), (d) or (e) above is curable, then the Executive shall have the opportunity to cure the
same within fifteen (15) days after receipt of written notice from Company setting forth the
conduct committed in reasonable detail and that Company intends to terminate the Executive for
“Cause” if the breach is not timely cured.

          6.4 Without Cause. Upon prior written notice to Executive, the Company may (a)
terminate the Executive’s employment hereunder other than for Cause; (b) substantially diminish the
duties and responsibilities of Executive; or (c) materially change the title or position of
Executive in the hierarchy of the Company (all of the foregoing together with any other material
breach of this Agreement by the Company shall be deemed a termination “Without Cause”). In the
instance of the Company’s actions pursuant to (b) or (c) above, the Executive may either consent to
such action or terminate his employment with the Company in writing fifteen (15) days after such
written notice form the Company, which termination shall be deemed a termination Without Cause by
the Company.

     7. Payments After Termination. If this Agreement and the Executive’s employment
hereunder are terminated then the Executive or the Executive’s estate, as the case may be, shall
receive the Base Salary and any unpaid expense reimbursements through the date of termination in
accordance with the terms of this Agreement and, in the event that this Agreement is terminated
pursuant to Section 6.4 above, the Executive shall also receive the Base Salary for the remainder
of the twelve month period from the Effective Date. Thereafter, the Executive shall not be
entitled to receive any further compensation or benefits from the Company whatsoever.

     8. Trade Secrets. Executive covenants and agrees that he will not divulge or make use
of any trade secrets or other confidential information of the Business other than to disclose such
secrets and information to the Company or as necessary to perform his duties under this Agreement.
If Executive violates any of its obligations under this Section 8, the Company may proceed
against him in law or in equity for such damages or other relief as a court may deem appropriate.
Executive acknowledges that a violation of this Section 8 may cause the Company irreparable
harm which may not be adequately compensated for by money damages. Executive therefore agrees that
in the event of any actual or threatened violation of this Section 8, the Company shall be
entitled, in addition to other remedies that either of them may have, to a temporary restraining
order and to preliminary and final injunctive relief against Executive or to prevent any violations
of this Section 8, without the necessity of posting a bond. The prevailing party in any
action commenced under this Section 8 shall also be entitled to receive reasonable
attorneys’ fees and court costs. It is the intent and understanding of each party hereto that if,
in any action before any court or agency legally empowered to enforce this Section 8, any
term, restriction, covenant or promise in this Section 8 is found to be unreasonable and
for that reason unenforceable, then such term, restriction, covenant or promise shall be deemed
modified to the extent necessary to make it enforceable by such court or agency to the maximum
extent permitted by applicable requirements of law.

     9. Withholding. Anything to the contrary notwithstanding, all payments required to be
made by the Company hereunder to the Executive or the Executive’s estate or beneficiaries

D-3-4

 

shall be subject to the withholding of such amounts, if any, relating to tax and other payroll
deductions as the Company may reasonably determine it should withhold pursuant to any applicable
law or regulation.

     10. Notices. All notices or other communications required or permitted hereunder
shall be in writing and shall be deemed given or delivered when delivered personally or by fax with
automatic confirmation (with a copy via other means specified herein) or two (2) business days
after being sent by prepaid registered or certified mail, return receipt requested, or by private
courier or express delivery service addressed as follows:

     If to the Company:

			
	                    	 	Continucare Corporation

7200 Corporate Center Drive, Suite 600

Miami, FL 33126

Attention: Chief Executive Officer

Fax: (305) 500-2104

     with a copy (which shall not constitute notice), to:

			
	                    	 	Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

150 West Flagler Street, Suite 2200

Miami, FL 33130

Attention: Geoffrey MacDonald, Esq.

Fax: (305) 789-3395

     If to Executive, to:

			
	                    	 	Carlos Garcia

__________________

__________________

Attention: _________

     with a copy (which shall not constitute notice), to:

			
	                    	 	Sandra Greenblatt, P.A.

One Biscayne Tower, Suite 3500

2 South Biscayne Boulevard

Miami, FL 33131

Attention: Sandra P. Greenblatt, Esq.

Fax: (305) 577-9951

or to such other address as such party may indicate by a notice delivered to the other party
hereto.

D-3-5

 

     11. Prevailing Party. In the event of any dispute with regard to this Agreement, the
prevailing party shall be entitled to receive from the non-prevailing party and the non-prevailing
party shall pay upon demand all reasonable fees and expenses of counsel for the prevailing party.

     12. Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the parties, and supersedes all prior discussions, agreements and
understandings of every kind and nature among them as to the subject matter hereof.

     13. Amendments to Agreement. This Agreement shall not be amended except by a writing
signed by each party to the Agreement, and this Agreement may not be discharged except by
performance in accordance with its terms or by a writing signed by each party to the Agreement.

     14. U.S. Dollars. All dollar amounts in this Agreement are stated in United States
Dollars.

     15. Governing Law. This agreement and its validity, construction and performance
shall be governed in all respects by the law of the State of Florida, without giving effect to
principles of conflicts of laws. Venue for any proceeding arising from or related to this
Agreement shall be in Miami-Dade County, Florida.

     16. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and permitted assigns. This
Agreement may not be assigned by the Executive without the prior written consent of the Company.
This Agreement may be assigned by the Company in connection with the sale, transfer or other
disposition of all or substantially all of the Company’s assets or business; provided, however,
that such assignee shall agree in writing to be bound by the terms of this Agreement.

     17. Pronouns. Whenever the context requires, the use in this Agreement of a pronoun
of any gender shall be deemed to refer also to any other gender, and the use of the singular shall
be deemed to refer also to the plural.

     18. Headings. The headings of this Agreement are inserted for convenience of
reference only and shall not constitute a part hereof.

     19. Execution in Counterparts. This Agreement may be executed in several
counterparts, by original or facsimile signature, each of which so executed shall be deemed to be
an original and such counterparts together shall be deemed to be one and the same instrument, which
shall be deemed to be executed as of the date first above written.

     20. Further Assurances. The parties hereto shall sign such further documents and do
and perform and cause to be done and performed such further and other acts and things as may be
necessary or desirable in order to give full effect to this Agreement and every party thereof.

D-3-6

 

     21. Survival. Any termination of this Agreement shall not affect the ongoing
provisions of this Agreement, which shall survive such termination in accordance with their terms.

     22. Severability. The invalidity or unenforceability, in whole or in part, or any
covenant, promise or undertaking, or any section, subsection, paragraph, sentence, clause, phrase
or word or of any provision of this Agreement other than Section 4, shall not affect the validity
or enforceability of the remaining portions thereof.

     23. Participation of Parties; Construction. The parties hereto acknowledge that this
Agreement and all matters contemplated herein have been negotiated between both of the parties
hereto and their respective legal counsel and that both parties have participated in the drafting
and preparation of this Agreement from the commencement of negotiations at all times through the
execution hereof. The parties hereto acknowledge that they have each read this Agreement and
understand the effect of its provisions. Accordingly, this Agreement shall be interpreted and
construed without reference to any rule requiring that this Agreement be interpreted or construed
against the party causing it to be drafted.

     24. Independent Counsel. The Executive acknowledges that counsel to the Company has
not represented him nor provided him with legal or other advice in connection with the transactions
contemplated by this Agreement and that he has been urged to seek independent legal, tax and
financial advice in order to analyze the risks and merits of the transactions contemplated by this
Agreement.

THE EXECUTIVE AND THE COMPANY EACH ACKNOWLEDGES THAT HE OR IT HAS READ ALL OF THE TERMS OF THIS
AGREEMENT, UNDERSTANDS THE AGREEMENT, AND AGREES TO ABIDE BY ITS TERMS AND CONDITIONS.

D-3-7

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth in the
first paragraph of this Agreement.

	 	 	 	 	 
	 	THE COMPANY:

CONTINUCARE CORPORATION,

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE EXECUTIVE:

 	 
	 	
 	 
	 	 	 
	 	 	 

D-3-8

 

	 	 	 	 	 

EXHIBIT E

FIRST AMENDMENT TO LEASE

     This First Amendment to Lease dated ___________, 2006, is made by and between Cruz & Cruz
Partnership, a Florida partnership (“Landlord”), and Miami Dade Health & Rehabilitation
Services, Inc., a Florida corporation (“Tenant”).

     WHEREAS, Landlord and Tenant are parties to a Lease dated as of January 1, 2006 (the
“Lease”); and

     WHEREAS, Tenant has entered into an Asset Purchase Agreement (the “Asset Purchase
Agreement”) dated as of May ___, 2006, with, among others, Continucare Corporation, a Florida
corporation (“CNU”) and CNU Blue 1, Inc., a Florida corporation and a wholly-owned
subsidiary of CNU (“Buyer”), pursuant to which Tenant will sell and transfer to Buyer
substantially all of Tenant’s assets, properties and business to Buyer, including, without
limitation, Tenant’s rights under the Lease; and

     WHEREAS, Tenant desires to obtain the consent of Landlord to Tenant’s assignment of Tenant’s
rights under the Lease to Buyer pursuant to the Asset Purchase Agreement; and

     WHEREAS, in connection with the assignment by Tenant of the Lease to Buyer, Landlord and
Tenant desire to enter into certain amendments to the terms and conditions of the Lease;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
it is hereby agreed among Landlord and Tenant as follows:

          1. Consent to Assignment. By its execution of this Amendment, Landlord hereby
consents to Tenant’s sale, transfer and assignment of all of Tenant’s rights under the Lease to
Buyer pursuant to the terms of the Asset Purchase Agreement.

          2. Amendments to Lease.

               a. Section 2.04 — License. Section 2.04 of the Lease is hereby amended by
adding the following sentence as the final sentence of such section: “Notwithstanding anything
herein to the contrary, Landlord shall not be permitted to revoke or terminate any license in favor
of Tenant to use and occupy any common areas or facilities not within the leased premises or
diminish the amount of such areas covered by any such license unless an event of default specified
in Section 17.01 of this Lease shall occur and be continuing.”

               b. Section 3.04 — Changes and Additions to Building. Section 3.04 of the
Lease is hereby amended by adding the following sentence as the final sentence of such section:
“Landlord shall use all commercially reasonable efforts to minimize any disruption to Tenant’s
business or use and occupancy of the leased premises occasioned by any maintenance, repairs,
alterations, additions or construction.”

E-1

 

               c. Section 4.02 — Operation of Business. Section 4.02 of the Lease is hereby
amended by adding the following at the end of the final sentence of such section: “; provided,
however, that Tenant shall at all times during the term of this Lease be permitted to conduct
activities consistent with the operation of a medical office on the leased premises.”

               d. Section 6.01 — Installation by Tenant. Section 6.01 of the Lease is
hereby amended by adding the following at the end of the final sentence of such section: “, which
consent will not be unreasonably withheld or delayed.”

               e. Section 6.02 — Tenant Shall Discharge All Liens. Section 6.02 of the
Lease is hereby amended by deleting the words “ten (10)” in the first sentence of such section and
replacing them with the words “thirty (30)”.

               f. Section 7.01- Responsibility of Tenant.

                    i. Subsection (f) of Section 7.01 of the Lease is hereby amended by adding the
following to the end of such section: “; provided, however, that Landlord shall use all
commercially reasonable efforts to minimize any disruption to Tenant’s business or use and
occupancy of the leased premises occasioned thereby.”

                    ii. Subsection (g) of Section 7.01 of the Lease is hereby amended by adding the
following to the end of the first sentence and the end of the second sentence of such section:
“other than any damages conclusively determined to have been caused by Landlord’s gross negligence
or willful misconduct.”

               g. Section 11.01 — Significant Change of Ownership. Section 11.01 of the Lease is
hereby amended by adding the following to the end of section: “Notwithstanding the foregoing, it is
understood and agreed that any change of ownership of Tenant resulting from any person or entity
acquiring, directly or indirectly, substantially all of the business or assets of any entity that
owns or controls Tenant shall not give Landlord a the right to terminate this Lease.”

               h. Section 12.01 — Government Regulations. Section 12.01 of the Lease is hereby
amended by adding the following to the end of such section: “Landlord shall, at Landlord’s sole
cost and expense, comply with all county, municipal, state, and federal laws, orders, ordinances
and other applicable requirements of all governmental authorities, now in force, or which may
hereafter be in force, pertaining to the common areas and facilities not within the leased
premises.”

               i. Section 13.01 — Rules and Regulations. Section 13.01 of the Lease is
hereby amended by adding the following to the end of the first sentence of such section: “;
provided, however, that Landlord shall not adopt or promulgate any rules and regulations that are
inconsistent with the operation of a medical office on the leased premises nor amend, suspend or
supplement any rules and regulations that would prevent or materially limit the ability of Tenant
to operate a medical office on the leased premises.”

E-2

 

               j. Section 15.01 — Total or Partial Destruction. Section 15.01 of the Lease
is hereby amended by adding the following to the end of such section “Notwithstanding the foregoing
or anything else herein to the contrary, if the leased premises shall be damaged by fire, the
elements, unavoidable accident or other casualty without the fault of Tenant and as a result
either: (a) 50% or more of the of the leased premises are rendered untenantable thereby; or (b)
the building of which the leased premises is a part is destroyed; then, if such damage or
destruction shall occur during the last year of the term of this Lease (or any renewal term) Tenant
shall have the right, to be exercised by notice to Landlord, to cancel and terminate this Lease
effective as of the date stipulated in Tenant’s notice which shall not be earlier than thirty (30)
days nor later than sixty (60) days after the giving of such notice.”

               k. Section 18.01 — Right of Entry. Section 18.01 of the Lease is hereby amended by
adding the following at the end of such section: “Notwithstanding anything herein to the contrary,
Landlord shall use all commercially reasonable efforts to minimize any disruption to Tenant’s
business or use and occupancy of the leased premises occasioned by any entry by Landlord or
Landlord’s agents on, examination or showing of, or repair, alteration, improvement, or addition to
the leased premises.”

     3. Miscellaneous. Except as amended by this Amendment, the Lease shall remain in full
force and effect in all respects. This Amendment may be executed in counterparts, and all
counterparts will collectively constitute a single agreement. This Amendment may not be amended a
modified or any provision waived except in writing. This Amendment together with the Lease
constitutes the entire agreement of the parties and supersedes all prior agreements or
understandings. This Amendment is binding upon and inures to the benefit of the parties and their
successors and permitted assigns. This Amendment may not be assigned or the duties delegated
without the written consent of all parties. No failure or delay of any party in exercising any
power or right under this Amendment will operate as a waiver thereof, nor will any single or
partial exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of
any other right or power. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction will, as to that jurisdiction, be ineffective to the extent of the prohibition or
unenforceability without invalidating the remaining provisions of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and
year first above written.

	 	 	 	 	 
	 	LANDLORD

CRUZ & CRUZ PARTNERSHIP

 	 
	 	By
 	 
	 	Name:  	 	 
	 	Its: 	 

E-3

 

	 	 	 	 	 

	 	 	 	 	 
	 	TENANT

MIAMI DADE HEALTH AND REHABILITATION SERVICES, INC

 	 
	 	By
 	 
	 	Name:  	 	 
	 	Its: 	 

E-4

 

	 	 	 	 	 

EXHIBIT F

REGISTRATION RIGHTS AGREEMENT

     Registration Rights Agreement (this “Agreement”) is made and entered into as of the
___ day of _________________, 2006 by and between Continucare Corporation, a Florida corporation (the
“CNU”) and Jose Garcia, as Sellers’ Representative on behalf of each of Miami Dade Health
and Rehabilitation Services, Inc., a Florida corporation (“MDHRS”), Miami Dade Health
Centers, Inc., a Florida corporation (“MDHC”), West Gables Open MRI Services, Inc., a
Florida corporation (“West Dade”), Kent Management Systems, Inc. (“Kent”), Miami
Dade Health Centers One, Inc., a Florida corporation (“MDHC One”), Pelu Properties, Inc., a
Florida corporation (“Pelu”) and Peluca Investments, LLC, a Florida limited liability
company (“Peluca,” and, collectively with MDHRS, MDHC, West Dade, Kent, MDHC One, and Pelu
the “Sellers”), and each of the shareholders of each Seller (the “Owners”).

W I T N E S S E T H:

     WHEREAS, the parties hereto are entering into this Agreement pursuant to the terms of that
certain Asset Purchase Agreement (the “Purchase Agreement”) dated as of May ___, 2006, by
and among CNU, CNU Blue 1, Inc., a Florida corporation and wholly-owned subsidiary of the CNU
(“Buyer”), CNU Blue 2, LLC, a Florida limited liability company and a wholly owned
subsidiary of Buyer (“Buyer LLC”), Sellers, MDHC Red, Inc., a Florida corporation, and
Owners;

     WHEREAS, each capitalized term used in this Agreement without definition has the meaning given
to it in the Purchase Agreement;

     WHEREAS, pursuant to the Purchase Agreement Buyer has acquired the Business from Sellers and
CNU has issued the CNU Shares to Sellers; and

     WHEREAS, CNU has agreed to grant the Sellers and Owners certain registration rights with
respect to the CNU Shares received by the Sellers pursuant to the Purchase Agreement.

     NOW, THEREFORE, in consideration of the covenants hereinafter set forth and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

     1. Registration Rights.

          (a) Secondary Registration. CNU will file, as promptly as practicable after the
Closing Date, a registration statement (the “Registration Statement”) on Form S-3 covering
the resale of the Registrable Securities (as hereinafter defined) by Sellers and Owners and
thereafter shall use all commercially reasonable efforts to cause the Registration Statement to be
declared effective as soon as practicable following such filing (but in any event by the date that
is six months after the Closing Date) and to maintain such effectiveness until the date that is 12
months after the Closing Date; provided, however, that CNU shall have the right to
prohibit the sale of Registrable Securities pursuant to the Registration Statement, upon notice to
the Sellers’ Representative (A) if in the opinion of counsel for CNU, CNU would thereby be required
to disclose information not otherwise then required by law to be publicly disclosed, provided that
CNU shall use all commercially reasonably efforts to minimize the period of time, but in no event
more than 60 days, in which it shall prohibit the sale of any shares of Registrable Securities
pursuant to this clause (A);

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(B) during the period starting with the date 10 days prior to CNU’s estimate of the date of filing
of, and ending on a date 60 days after the effective date of, a Company initiated registration in
which any Seller or Owner is entitled to participate in accordance with Section 1(b) hereof, or
such longer post-effective periods as may be reasonably required by the underwriter or underwriters
if such offering is underwritten and if all other holders of more than five percent (5%) of the
Company’s stock agree to such terms; or (C) upon the happening of any event, as a result of which
the prospectus under the Registration Statement (the “Prospectus”) includes an untrue
statement of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing
(in which case, CNU shall within a reasonable period provide the Sellers’ Representative with
revised or supplemental prospectuses and the Sellers and Owners shall promptly take action to cease
making any offers of the Registrable Securities until receipt and distribution of such revised or
supplemental prospectuses). All Registrable Securities offered and sold pursuant to the
Registration Statement shall be sold in transactions on the American Stock Exchange or any other
national securities exchange on which the CNU shares may then be listed or on Nasdaq if the CNU
shares are then listed on Nasdaq.

          (b) Incidental (Piggyback) Registration. In addition to the aforementioned rights,
and subject to the limitations set forth in this Agreement, if at any time, and from time to time
therein, CNU proposes to register the offer and sale of any of its securities under the Securities
Act of 1933, as amended (the “Act”), for its own account in a public offering (other than
registrations on Form S-4 (or any successor form) or registrations with regard to conversion of any
of CNU’s securities or employee stock options, employee purchase plans or other employee benefit
plans), CNU shall use its best efforts to give notice to the Sellers’ Representative of its
intention to effect such a registration at least twenty days prior to the filing with the
Securities and Exchange Commission (the “SEC”) of such registration statement. Upon
written request of the Sellers’ Representative, given within ten (10) days after receipt from CNU
of such notice, CNU shall cause the number of the Sellers’ or Owners’ Registrable Securities (as
hereinafter defined) then held by such Seller or Owner and referred to in such request to be
included in such registration statement, at CNU’s expense subject to the provisions of Section 3(a)
hereof; provided, however, that in the event the offering pursuant to such registration statement
shall be underwritten and the underwriters advise CNU that in their opinion the number of
securities requested to be included in such registration pursuant to this Section 1(b) and pursuant
to any other rights granted by CNU to holders of its securities to request inclusion of any such
securities in such registration exceeds the number of securities which can be sold in the offering
without adversely affecting the offering price or the marketing of CNU’s securities, CNU may first
include in such registration all securities CNU proposes to sell, and the Sellers or Owners, as
applicable shall accept a reduction (including a total elimination) in the number of shares to be
included in such registration in accordance with Section 6 below. Nothing in this Section 1(b)
shall limit CNU’s ability to withdraw a registration statement it has filed under this Section 1(b)
either before or after effectiveness.

     2. Indemnification. In the event that CNU shall register under the Act any Seller’s
or Owner’s Registrable Securities:

          (a) CNU’s Indemnification. CNU will indemnify and hold harmless such Seller or owner
and any person who controls the Shareholder within the meaning of the Act and the Securities
Exchange Act of 1934 (the “Exchange Act”) against any losses, claims, expenses, damages or
liabilities (including reasonable attorneys’ fees) (“Losses”), to which the Seller, Owner
or controlling person become subject under the Act, insofar as such Losses (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in any registration statement (including, without limitation, the
Registration Statement) under which such Registrable Securities were registered under the Act, any
prospectus contained therein (including without limitation the Prospectus) which is utilized, or
any amendment or supplement thereof, or arise out of or are based upon the omission or alleged
omission to state

F-2

 

therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, and will reimburse such Seller or Owner and any such controlling person for any
reasonable legal or other reasonable expenses incurred by them in connection with investigating or
defending any such Loss; provided, however, that CNU will not be liable in any such case if and to
the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with information furnished to CNU
by such Seller or Owner, such controlling person or any Affiliate of such Seller or Owner and
provided further, that with respect to any untrue statement or omission or alleged untrue statement
or omission made in any Prospectus under the Registration Statement, the indemnity contained in
this Section 2(a) shall not inure to the benefit of such Seller or Owner (or the benefit of any
person controlling such Seller or Owner) if the person asserting any such Losses, purchased the
Registrable Securities that are the subject of such Losses, and such Seller or Owner or any person
controlling such Seller or Owner (i) failed to comply with the prospectus delivery requirements of
the Act in connection with the sale of Registrable Securities to such person or (ii) utilized a
Prospectus after such Seller or Owner was notified, in accordance with Section 1(b) hereof, to
cease making any offers or sales of Registrable Securities pursuant to the Registration Statement.

          (b) Sellers and Owners Indemnification. The Sellers and Owners will jointly and
severally indemnify and hold harmless CNU and each underwriter of CNU’s securities under Section 1
and each person who controls CNU or underwriter within the meaning of the Act and the Exchange Act,
each officer of CNU who signs the registration statement and each director of CNU, against all
Losses, to which CNU, such underwriter or such officer or director or controlling person become
subject under the Act, but only insofar as such Losses arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact (i) made in reliance on and in
conformity with information relating to such Seller or Owner furnished in writing to CNU expressly
for use in any registration statement under which such Registrable Securities were registered under
the Act pursuant to Section 1 hereof or (ii) contained in any Prospectus which was utilized by [CNU
in connection with the registration of the Registrable Securities or any controlling person or
Affiliate of the Sellers and Owners after such Seller or Owner was notified, in accordance with
Section 1(b) hereof, to cease making any offers or sales of Registrable Securities pursuant to the
Registration Statement.

          (c) Notification. Promptly after receipt by an indemnified party hereunder of notice
of the commencement of any action, such indemnified party shall, if a claim in respect thereof is
to be made against the indemnifying party hereunder, notify the indemnifying party in writing
thereof; provided, however, that any failure to give such notice will not waive any rights of the
indemnified party except to the extent the rights of the indemnified party are materially
prejudiced. In case any such action shall be brought against any indemnified party and it shall
notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled
to participate in and, to the extent it shall wish, to assume and undertake the defense thereof
with counsel reasonably satisfactory to such indemnified party and, after notice from the
indemnifying party to such indemnified party of its election so to assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2
for any legal expenses subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation and of liaison with counsel so
selected; provided, however, that if the indemnifying party has failed to assume the defense and
employ counsel then the indemnified party shall have the right to select counsel and to assume such
legal defense and otherwise to participate in the defense of such action, with the expenses and
fees of such separate counsel and other expenses related to such participation to be reimbursed by
the indemnifying party as incurred.

          (d) If the indemnification provided for in this Section 2 is unavailable or insufficient to
hold harmless an indemnified party in respect of any losses, claims, expenses, damages or
liabilities or actions in respect thereof, then each indemnifying party shall in lieu of

F-3

 

indemnifying such indemnified party contribute to the amount paid or payable by such indemnified
party as a result of such Losses in such proportion as is appropriate to reflect the relative fault
of CNU, on the one hand, and on the other, in connection with the statements or omissions which
resulted in such Losses as well as any other relevant equitable considerations. The relative fault
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by CNU or any Affiliate thereof, on the one hand, or the applicable Sellers
or Owners or any Affiliate thereof, on the other, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or present such statement or omission. CNU and
the Sellers and Owners agree that it would not be just and equitable if contribution pursuant to
this Section 2(d) were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this Section 2(d). The
amount paid or payable by an indemnified party as a result of the Losses in respect thereof
referred to above in this Section 2(d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any
such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.

     3. Expenses.

          (a) Secondary Registration. In connection with the Registration Statement filed
pursuant to Section 1(a) of this Agreement: (i) the Sellers and Owners shall pay all the expenses
of their legal counsel, accountants and other experts; (ii) CNU shall pay the fees and
disbursements of legal counsel for CNU, fees and disbursements of experts used by CNU in connection
with such registration, expenses of any audits of CNU incidental to or required in connection with
such registration and all expenses of registration not otherwise specifically described in this
Section 3(a), including expenses incidental to any post-effective amendment to any such
registration statement; and (iii) the Sellers and Owners and any other persons selling securities
pursuant to such Registration Statement shall pay all SEC and blue sky registration and filing
fees, fees and expenses attributable to the printing and distribution of Prospectuses, underwriting
discounts and commissions.

          (b) Incidental Registration. If a Seller’s or Owner’s Registrable Securities are
included in any registration statement pursuant to Section 1(b) of this Agreement, CNU shall pay
the costs and expenses incurred in connection with the preparation and filing of such registration
statement covering such shares, including, but not limited to, the fees and expenses of counsel,
accountants and other experts for CNU, printing costs, registration and filing fees and blue sky
fees and expenses (other than the incremental portion of the federal and state registration and
filing fees attributable to the Seller’s or Owner’s Registrable Securities, which shall be paid by
the such Seller or Owner), commissions and expenses of underwriters (other than fees and expenses
of underwriters attributable to the Registrable Securities, which shall be paid by such Seller or
Owner and all other direct and indirect costs and expenses in connection with the registration and
public offering of the Seller’s or Owner’s Registrable Securities. Notwithstanding anything
contained herein to the contrary, CNU shall not be required to pay the fees and expenses of counsel
for the Sellers or Owners.

     4. Registrable Securities. For purposes of this Agreement, the term “Registrable
Securities” shall mean (i) any CNU Shares issued to the Sellers, the Owners or HAC Advisors LLC
pursuant to the terms of the Purchase Agreement and (ii) any shares of securities of CNU issued or
issuable with respect to the CNU Shares by way of a stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or other reorganizations.

     5. Information for Registration Statement; Certain Limitations. CNU’s obligations
under Section 1 with respect to the Sellers and Owners are expressly conditioned upon (i) such

F-4

 

holder furnishing to CNU in writing such information concerning such holder and its controlling
persons and the terms of such holder’s proposed offering of shares of the Registrable Securities as
CNU shall reasonably request for inclusion in the Registration Statement; and (ii) there not having
occurred (a) a material breach by such Seller or Owner or an Affiliate of such Seller or Owner of
any agreement, covenant, representation or warranty contained in the Purchase Agreement or any
Seller Ancillary Agreement to which such Seller or Owner is a party.

     6. Allocation of Registration Opportunities. In any circumstance in which all of the
Registrable Securities and other Securities of CNU with registration rights (“Other
Shares”) requested to be included in a registration on behalf of other Security Holders of CNU
cannot be so included as a result of limitations of the aggregate number of shares of Registrable
Securities and Other Shares that may be so included, the number of Shares of Registrable Securities
and Other Shares that may be so included shall be allocated among the Seller and Owner and other
selling security holders requesting inclusion of shares pro rata on the basis of the number of
shares of Registrable Securities and Other Shares that are requested to be registered by such
holders.

     7. Rule 144 Covenants. CNU agrees, for a period of two (2) years from the date of
this Agreement, to file with the SEC, all reports required to be filed by CNU under the Exchange
Act.

     8. Standstill.

          (a) Except as set forth on Schedule 8 to this Agreement, during the six month period
starting on the Closing Date, neither Sellers nor Owners shall be permitted to offer or sell any
Registrable Securities whether pursuant to the Registration Statement or otherwise.

          (b) During the period commencing on the date that is six months after the Closing Date and
ending on the date that is one year after the Closing Date, each Owner shall be permitted to sell
during any three-month period up to a maximum of 500,000 CNU Shares pursuant to the Registration
Statement provided, however, that for purposes of calculating the number of shares that an Owner
may sell under this Section 8(b), such Owner and all of such Owner’s Affiliates who are themselves
Owners shall be deemed to be a single Owner and, sales by such Owner shall be aggregated with sales
by such Owner’s Affiliates. Solely for purposes of this Section 8(b) Jose M. Garcia and Carlos
Garcia shall not be deemed to be Affiliates of each other.

          Sellers and Owners agree that, in addition to any legend that may be required by applicable
Requirements of Law, any certificate representing Registrable Securities shall bear a restrictive
legend concerning the restrictions set forth in this Section 8.

     9. Termination. The obligations of the parties under Sections 1, 5,
6 and 7 of this Agreement shall terminate and be of no further force and effect on
the earlier of (i) the date on which all Registrable Securities may be sold without registration
under the Act; (ii) the date on which Sellers and Owners cease to own, in the aggregate, at least
ten percent of CNU’s issued and outstanding common stock, (iii) the date on which all Registrable
Securities then held by Sellers and Owners become convertible into or exchangeable for securities
of CNU or any other person issued under an effective registration statement under the Act and (iv)
the date that is three years after the date of this Agreement; provided however, that the
obligations of the parties under any other sections of this Agreement shall survive such
termination for a period of two years thereafter.

     10. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Florida, without regard to the conflict of law
principles thereof

     11. Binding Effect. The obligations of this Agreement shall be binding upon the
parties, their heirs, successors and legal representatives.

F-5

 

     12. Assignment. This Agreement may not be assigned by any part without the prior
written consent of the other party hereto.

     13. Amendment. Amendments to this Agreement may only be made in writing signed by
each of the parties.

     14. Entire Agreement. This Agreement contains the entire understanding of the parties
and there are no other agreements, written or oral, regarding the subject matter hereof.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	CONTINUCARE CORPORATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SELLER’S REPRESENTATIVE

 	 
	 	By:  	
 	 
	 	 	Name:  	Jose Garcia 	 
	 	 	 	 

F-6

 

	 	 	 	 	 

EXHIBIT G

INSTRUMENT OF ASSUMPTION

     THIS INSTRUMENT OF ASSUMPTION is made as of _________________ _____, 2006 by MDHC Red, Inc., a Florida
corporation (“Retain”) in favor of each of Miami Dade Health and Rehabilitation Services,
Inc., a Florida corporation (“MDHRS”), Miami Dade Health Centers, Inc., a Florida
corporation (“MDHC”), West Gables Open MRI Services, Inc., a Florida corporation (“West
Dade”), Kent Management Systems, Inc. (“Kent”), Pelu Properties, Inc., a Florida
corporation (“Pelu”), and Miami Dade Health Centers One, Inc., a Florida corporation
(“MDHC One, and, collectively with MDHRS, MDHC, West Dade, Kent, and Pelu, the
“Sellers”), provides:

RECITALS:

     Pursuant to that certain Asset Purchase Agreement dated May ___, 2006 (the “Purchase
Agreement”) Sellers have sold, transferred and conveyed certain assets to CNU Blue 1, Inc., a
Florida corporation (“Buyer”), and Buyer has assumed certain liabilities of the Sellers
that are designated as the Assumed Liabilities in the Purchase Agreement. Pursuant to the terms
and conditions of the Purchase Agreement, Retain now desires to make a formal assumption from the
Sellers of all obligations and liabilities of Sellers, whether absolute or contingent, asserted or
unasserted, known or unknown, liquidated or nonliquidated (other than the Assumed Liabilities),
including, without limitation, all of the Excluded Liabilities (collectively, the “Retained
Liabilities”), as contemplated by the Purchase Agreement. Unless otherwise defined or the
context otherwise requires, capitalized terms used herein shall have the respective meanings given
to them in the Purchase Agreement.

     NOW, THEREFORE, for and in consideration of the transfer of certain of the Excluded Assets and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Retain hereby assumes and agrees to discharge and perform the Retained Liabilities.
In the event that Retain shall fail to perform its obligations under this Instrument of Assumption,
the Sellers, Buyer, Buyer LLC, and CNU shall be entitled to all rights and remedies available to
them with respect to indemnification pursuant to the Purchase Agreement.

     Retain shall not assume or have any responsibility, obligation or liability for or with
respect to, the Assumed Liabilities. In the event of a conflict between this Instrument of
Assumption and the Purchase Agreement, the terms and provisions of the Purchase Agreement will
control.

     IN WITNESS WHEREOF, Retain has caused this Instrument of Assumption to be executed and
delivered in a manner sufficient to bind it, as of the day and year first above written.

	 	 	 	 	 
	 	MDHC RED, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

G-1

 

	 	 	 	 	 

EXHIBIT H

LEASE

BY AND BETWEEN

LANDLORD:

Pelu Properties, Inc.

AND

Kent Management Systems, Inc.

(TENANT)

DATED

	 	 	 
	TENANT’S PRINCIPAL OFFICER:

	 	Jose M. Garcia, C.E.O.
	TENANT’S CURRENT ADDRESS:

	 	2260 SW 8 Street
	 

	 	Miami, FL 33195
	PHONE NUMBER:

	 	305-796-9442

LEASE AGREEMENT

THIS LEASE AGREEMENT, dated as of the 1st day of May, 2006 between Pelu Properties,

Inc. “LANDLORD” and Kent Management Systems, Inc. “TENANT”.

H-1

 

WITNESSETH:

ARTICLE I

Basic Lease Provisions

Section 1.01 — Leased Premises.

Landlord hereby demises and leases to the Tenant, and Tenant rents from the Landlord, the premises
described as follows (hereinafter the “leased premises”):

All commercial Space located at 4930 E. 10th Ct., Hialeah, Fl. 33012 and all parking spaces
located in said complex.

No. of Square Feet: Appx. 8,000 sq ft of rentable space

Section 1.02 — Use of Additional Areas.

The use and occupation by the Tenant of the leased premises shall include the use in common with
other entities thereto of the common areas, parking areas, service roads, loading facilities,
sidewalks and customer car parking areas as such common areas now exist or as such common areas may
hereafter be constructed, and other facilities as may be designated from time to time by the
Landlord, subject however to the terms and conditions of this lease and to reasonable rules and
regulations for the use thereof as prescribed from time to time by the Landlord.

Section 1.03 — Term.

This lease shall be for the term of 5 Years commencing on 05/01/2006 (hereinafter the “Commencement
Date”) and ending April 30, 2011.

Section 1.04 — Commencement of Rent and Term.

The term of this Lease and Tenant’s obligations to pay rent shall commence on the Commencement
Date. Throughout the term hereof Tenant agrees, upon request of Landlord or of Landlord’s
Mortgages, to execute and deliver without charge and within ten (10) days a written declaration in
form and content satisfactory to the requesting party ratifying this lease and the status thereof.
Failure by Tenant to execute the declaration required hereunder within said ten (10) days shall be
deemed an event of default hereunder and the terms hereby granted are expressly so limited.
Anything herein to the contrary notwithstanding, Landlord agrees not to collect nor accept from
Tenant and Tenant agrees not to pay Landlord rent of more than one (1) month in advance of its due
date.

Section 1.05 — Failure of Tenant to Open

In the event that the Tenant received notice that the leased premises are ready for occupancy as
herein defined and fails to take possession and open the leased premises for business within 120

H-2

 

days thereafter, then Tenant shall be in default and the Landlord shall have the right to exercise
any remedies herein provided.

Section 1.06 — Excuse of Landlord’s performance.

Landlord shall not be deemed in default with respect to failure to perform any of the terms,
covenants and conditions of this lease if same shall be due to any strike, lockout, civil
commotion, inability to obtain any materials, service or financing, through Act of God or other
cause beyond control of the Landlord.

ARTICLE II

Rent

Section 2.01 — Fixed Minimum Rent.

Throughout the term of this lease (and subject to any earlier termination of the Lease in
accordance with its terms) Tenant agrees to pay Landlord as fixed minimum rent the amounts
specified below. The fixed minimum annual rent during the term of this lease shall be payable by
Tenant in equal monthly installments, on or before the first day of each month, in advance, at the
office of the Landlord without any deductions whatsoever as hereinafter set forth (except that
simultaneously with the execution of this lease.

	 	 	 	 	 
	FIRST YEAR:
	 	$3,031.67 Per Month
	 	(1) Year Gross Rent: $34,000.00

Sales tax: $2,380.00

$ 36,380

	 
	 	 	 	 

	SECOND YEAR:
	 	$3,122.62 Per Month
	 	(2) Year Gross Rent: $35,020.00

Sales tax: $2,451.40

$37,471.40

	 
	 	 	 	 

	THIRD YEAR:
	 	$3,216.30 Per Month
	 	(3) Year Gross Rent: $36,070.60

Sales tax: $2,524.95

$38,595.55

	 
	 	 	 	 

	FOURTH YEAR:
	 	$3,312.79 Per Month
	 	(4) Year Gross Rent: $37,152.72

Sales tax: $2,600.69

$39,753.41

	 
	 	 	 	 

	FIFTH YEAR:
	 	$3,412.17 Per Month
	 	(5) Year Gross Rent: $38,267.30

Sales tax: $2,678.72

$40,946.02

Section 2.02 — Taxes and Insurance.

Tenant shall pay Property Taxes and Insurance. The insurance shall be in an insurance company
approved by Landlord and a certified copy of the policy and/or certificate of insurance shall be
delivered to Landlord.

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Section 2.03 — Sales, Use and Rent Taxes

Tenant shall pay as additional rent all taxes in the nature of sales, use or similar taxes, now or
hereafter assessed or levied by any taxing authority upon the payment of fixed rent or additional
rent, and which the Landlord is required or permitted to collect from Tenant, payable
simultaneously with the payment of fixed rent or additional rent, as applicable.

Section 2.04 — License.

All common areas and facilities not within the leased premises, which Tenant may be permitted to
use and occupy, are to be used and occupied under a revocable license, and if any such license be
revoked or if the amount of such areas be diminished, Landlord shall not be subject to any
liability nor shall Tenant be entitled to any compensation or diminution or abatement of rent, nor
shall revocation or diminution of such areas be deemed constructive or actual eviction.
Notwithstanding anything herein to the contrary, Landlord shall not be permitted to revoke or
terminate any license in favor of Tenant to use and occupy any common areas or facilities not
within the leased premises or diminish the amount of such areas covered by any such license unless
an event of default specified in Section 17.01 of this Lease shall occur and be continuing.

Section 2.05 — Additional Rent.

In order to give Landlord a lien of equal priority with Landlord’s lien for rent, and for no other
purpose, any and all sums of money or charges required to be paid by Tenant under this lease
whether or not same be so designated, shall be considered “additional rent.” If such amounts or
charges are not paid at the time provided in this lease, they shall nevertheless, if not paid when
due, be collectible as additional rent with the next payment of any amount of money or charges as
the same becomes due and payable hereunder or limit any other remedy of Landlord (See Below).

ARTICLE III

Construction of Leased Premises

Section 3.01 — Landlord’s Work

Landlord agrees that it will supply, at its expense, its standard store as more particularly set
forth in Exhibit “A” attached hereto and made a part hereof. Landlord shall notify Tenant when
Landlord has completed Landlord’s work pursuant to said Exhibit “A”.

The Landlord intends to complete the subject improvements on or about Ready to Use. If the
Landlord is unable to give possession of the demised premises on the date stipulated in paragraph 1
hereof as the commencement of the term hereof by reason of the holding over of any prior Tenant of
Landlord’s failure to complete the subject improvements, or for any other reason, an abatement or
diminution of the rent to be paid hereunder shall be allowed Tenant under such circumstances, but
nothing herein shall operate to extend the term.

Additional Rent. Late Charge.

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If Tenant fails to pay the rent in the full before the end of the 10th day after it is
due, Tenant will pay Landlord a late charge of $25.00. Landlord does not waive the right to insist
on payment of the rent in full on the date it is due. Money paid by the Tenant to the Landlord
shall be applied to the Tenant’s account in the following order: first, to outstanding late fees
and returned check fees; second, to outstanding legal fees and/or court costs legally chargeable to
Tenant; and third, to rent.

Landlord’s liability to Tenant for any loss or damage to Tenant on account of said delay in
obtaining possession of the premises. If Landlord is unable to give possession of the demised
premises to Tenant within one hundred twenty (120) days next after the stipulated commencement of
this Lease, then Tenant shall have the right to cancel this Lease upon written notice hereof
delivered to Landlord within ten (10) days after the lapse of said one hundred twenty (120) day
period; and, upon such cancellation, Landlord and Tenant shall each be released and discharged from
all liability hereunder each to the other. Failure by the Tenant to make timely delivery of said
written notice of cancellation shall be conclusively deemed to constitute a waiver of Tenant’s
right to cancel as provided by this paragraph.

Section 3.02 — Tenant’s Work.

Tenant agrees, at its own cost and expense, to perform all work which is necessary to make the
leased premises conform with Tenant’s plans to be approved by Landlord. Within thirty (30) days
after execution of this lease, Tenant shall furnish Landlord, for Landlord’s written approval,
Tenant’s plans and specifications. Landlord agrees it will not unreasonably withhold such
approval, it being the purpose of this requirement that Tenant’s leased premises be fixtured and
laid out so as not to be a detriment to the other Tenants in the building of which the Premixes are
a part and that Tenant’s work shall be detrimental to Landlord’s building.

Section 3.03 — Acceptance by Tenant.

(a) If Landlord’s work has been completed at the time this lease is executed, Tenant certifies that
it has inspected the leased premises and accepts same in its existing condition; in such event no
repair work, alterations, or remodeling of the leased premises shall be required to be done by
Landlord as a condition of this lease or otherwise.

(b) If Landlord’s work is not completed when this Lease is executed, Tenant agrees that acceptance
by Tenant of possession of the leased premises for the purpose of construction of Tenant’s
improvements or the issuance of a certificate of Occupancy for the premises will be deemed as an
acceptance of the leased premises in its then existing condition and the satisfactory completion of
all of Landlord’s work.

Section 3.04 — Changes and Additions to Building.

Landlord hereby reserves the right at any time to perform maintenance operations and to make the
repairs, alterations or additions, and to build stories on the building in which the premises are
contained and to build adjoining the same. Tenant agrees to cooperate with Landlord permitting
Landlord to accomplish any such maintenance, repairs, alterations, additions or construction.
Landlord shall use all commercially reasonable efforts to minimize any disruption to Tenant’s

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business or use and occupancy of the leased premises occasioned by any maintenance, repairs,
alterations, additions or construction.

ARTICLE IV

Conduct of Business by Tenant

Section 4.01 — Use of Premises.

Tenant shall use the leased premises solely for the purpose of: warehouse and storage.

Tenant shall occupy the leased premises without delay upon commencement of the term of this lease,
and shall conduct continuously in the leased premises the business above stated. Tenant will not
use or permit, or suffer the use of the leased premises for any other business or purpose.

Section 4.02 — Operation of Business.

Tenant shall conduct business in the leased premises during the regular customary days and hours
for such type of business in Miami-Dade County, Florida. Tenant shall not perform any acts or
carry on any practices which may damage the building or improvements or be a nuisance or menace to
other Tenants in the building or their customers, employees or invites or which will result in the
increase of casualty insurance premiums; provided, however, that Tenant shall at all times during
the term of this Lease be permitted to conduct activities consistent with the operation of a
medical office on the leased premises.

ARTICLE V

Security Deposit

Section 5.01 — Amount of Deposit.

Tenant contemporaneously with the execution of this lease, has deposited with the Landlord the sum
of $None receipt of which is hereby acknowledged by Landlord, receipt of which is hereby
acknowledged by Landlord, if by check, subject to collection. Said deposit shall be held by
Landlord, without liability for interest and may be commingled with other funds of Landlord, as
security for the faithful performance by Tenant of all terms, covenants, and conditions of this
lease by Tenant to be kept and performed during the term hereof. If this lease shall terminate or
be terminated by reason of the failure of Tenant to keep and perform any of the terms, covenants
and conditions of this lease, then Landlord, at its option, may appropriate and apply said entire
deposit, or so much thereof as may be necessary to compensate the Landlord for all loss or damage
sustained or suffered by Landlord due to such breach on the part of Tenant.

Section 5.02 — Transfer of Deposit.

Landlord may deliver the funds deposited hereunder by Tenant to the purchaser or transferee of
Landlord’s interest in the leased premises, in the event that such interest be sold or transferred,
and thereupon Landlord shall be discharged from any further liability with respect to such deposit
and this Lease Agreement.

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ARTICLE VI

Signs, Awnings, Canopies, Fixtures, Alteration

Section 6.01 — Installation by Tenant.

All fixtures installed by Tenant shall be new or completely reconditioned. Tenant shall not make
or cause to be made any alterations, conditions or improvements or install or cause to be installed
any exterior signs, exterior lighting, plumbing fixtures, shades or awnings or make any changes to
the store front without first obtaining Landlord’s written approval and consent. Tenant shall
present to Landlord plans and specifications for such work at the time approval is sought. All
alterations, improvements, and additions made by Tenant as aforesaid shall remain upon the premises
at the expiration or earlier termination of this lease and shall become the property of Landlord,
unless Landlord shall, prior to the termination of the Lease, have given written notice to Tenant
to remove the same, in which event Tenant shall remove such alterations, improvements, and
additions and restore the premises to the same good order and condition in which it was at the
commencement of this Lease ordinary wear and tear excepted. Should Tenant fail to do so, Landlord
may do so, collecting, at Landlord’s option, the cost and expense thereof from the Tenant as
additional rent. All alterations, decorations, additions and improvements made by Tenant, or made
by the Landlord on the Tenants behalf by agreement under this Lease, shall remain the property of
the Tenant for the term of this lease, or any extension or renewal thereof. The Tenant shall at
all times maintain fire insurance with extended coverage in the name of the Landlord and the
Tenant, in an amount adequate to cover the cost of replacement of all alterations, decorations,
additions or improvements in the event of fire or extended coverage loss. Tenant shall deliver to
the Landlord certificates of such fire insurance policies which shall contain a clause requiring
the insurer to give the Landlord thirty (30) days of notice of cancellation of such policies. Such
alterations, decorations, additions and improvements shall not be removed from the premises without
prior consent in writing from the Landlord, which consent will not be unreasonably withheld or
delayed.

Section 6.02 — Tenant Shall Discharge All Liens.

Tenant shall promptly pay all contractors and material man, so as to minimize the possibility of a
lien attaching to the leased premises, and should any such lien be made or filed, Tenant shall bond
against or discharge the same within thirty (30) days thereafter.

The Tenant herein shall not have any authority to create any liens for labor or material on the
Landlord’s interest in the above described property, and all persons contracting with the Tenant
for the doing of any work or the furnishing of any materials on or to the premises and all material
man, contractors, mechanics and laborers, are hereby charged with notice that they must look to the
Tenant only to secure the payment of any bill for work done or material furnished during the term
of this Lease.

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ARTICLE VII

Repairs and Maintenance of Leased Premises.

Section 7.01 — Responsibility of Tenant.

(a) Without limiting the generality of the foregoing subparagraph 7.01 (b), Tenant agrees to repair
and maintain in good order and condition the non-structural interior portion of the leased
premises, including store fronts, show windows, doors, windows, plate and window glass.

(b) Tenant will not install any equipment which exceeds the capacity of the utility lines leading
into the leased premises of the building of which the leased premises constitute a portion.

(c) Tenant, its employees, or agents, shall not mark, paint, drill or in any way deface any walls,
ceilings, partitions, floors, wood, stone or ironwork without Landlord’s written consent.

(d) Tenant shall comply with the requirements of all laws, orders, ordinances and regulations of
all governmental authorities and will not permit any waste of property to be done and will take
good care of the leased premises at all times.

(e) If Tenant refuses or neglects to repair properly as required hereunder and to the reasonable
satisfaction of Landlord as soon as reasonably possible after written demand, Landlord may make
such repairs without liability to Tenant for any loss or damage that may accrue to Tenant’s
merchandize, fixtures, or other property, or to Tenant’s business by reason thereof and upon
completion thereof, Tenant shall pay Landlord’s cost for making such repairs, plus twenty percent
(20%) for overhead, upon presentation of bill therefor, as additional rent, said bill shall include
interest at eighteen percent (18%) per annum or said cost from the date of completion of repairs by
Landlord. In the event Landlord shall undertake any maintenance or repair in the course of which
it shall be determined that such maintenance or repair work was made necessary by the negligence or
willful act of Tenant or any of its employees or agents or that the maintenance or repair is, under
the terms of this lease, the responsibility of Tenant, Tenant shall pay Landlord’s cost therefor
plus overhead and interest as above provided in this section together with the monthly rents
payment next due.

(f) Landlord reserves the right to enter the leased premises and to make such repairs and to do
such work on or about said premises as Landlord may deem desirable, necessary or proper or that
Landlord may be lawfully required to make. Landlord reserves the right to visit and inspect said
premises at all reasonable times and show same to prospective tenants, purchasers or mortgagors;
provided, however, that Landlord shall use all commercially reasonable efforts to minimize any
disruption to Tenant’s business or use and occupancy of the leased premises occasioned thereby.

(g) Neither Landlord nor Landlord’s agent or servants shall be liable for any damages caused by or
growing out of any breakage, leakage, getting out of order or defective condition of electric
wiring, air conditioning or heating pipes and equipment, closets, plumbing, appliances, sprinklers,
other equipment, or other facilities serving the leased premises. Neither Landlord nor Landlord’s
agents or servants shall be liable for any damages caused by, or growing out of any defect in the
building or any part thereof, or in said leased premises or in any part thereof, or

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caused by, or growing out of, fire, rain, wind or other cause other than any damages conclusively
determined to have been caused by Landlord’s gross negligence or willful misconduct.

(h) All property belonging to Tenant or any occupant of leased premises are there at the risk of
Tenant or such other person only, and Landlord shall not be liable for damages thereto or theft or
misappropriation thereof.

(i) Tenant shall at its own expense perform all janitorial and cleaning services within the
premises and of the sidewalk or parking area immediately adjacent to the leased premises in order
to keep same in a neat, clean and orderly condition.

ARTICLE VIII

Insurance and Indemnity

Section 8.01 — Liability Insurance

Tenant shall, during the term hereof, keep in full force and effect, bodily injury and property
damage comprehensive public liability insurance with respect to the licensed premises for the
combined single coverage of not less than $100,000. The policy shall name Landlord, any person,
firms or corporations designated by Landlord, and Tenant as insured, and shall contain a clause
that the insurer will not cancel or change the insurance without first giving the Landlord thirty
(30) days prior written notice. The insurance shall be in an insurance company approved by
Landlord and a certified copy of the policy and/or certificate of insurance shall be delivered to
Landlord.

Section 8.02 — Plate Glass Insurance.

The replacement of any plate glass damaged or broken from any cause whatsoever in and about the
leased premises shall be Tenant’s responsibility. Tenant shall, during the entire term hereof,
keep in full force and effect a policy of plate glass insurance covering all the plate glass of the
leased premises. The policy shall name Landlord and any person, firm or corporation designated by
Landlord and Tenant as insured and shall contain a clause that the insurer will not cancel or
change the insurance without first giving the Landlord thirty (30) days prior written notice. The
insurance shall be in an insurance company approved by the Landlord and a copy of the policy and/or
a certificate of insurance shall be delivered to Landlord.

Section 8.03 — Increase in Insurance Premiums.

Tenant agrees that it will not keep, use, sell or offer for sale in or upon the leased premises any
article which may be prohibited by the standard form of fire and extended risk insurance policy.
Tenant agrees to pay any increase in premiums for casualty, loss or rent, fire and extended
coverage that may be charged during the term of this lease on the amount of such insurance which
may be carried by Landlord on said premises or the building of which they are a part, resulting
from the type of merchandise sold by Tenant in the leased premises or from Tenant’s use or
occupancy, whether or not Landlord has consented to the same. In from determining whether increase
premiums are result of Tenant’s use of the leased premises, a schedule issued by the organization
making the insurance rate on the leased premises, showing the various components of such rate,
shall be conclusive evidence of the several items and charges which

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make up the fire insurance rate on the leased premises. Tenant agrees to promptly make, at
Tenant’s cost, any repairs, alterations, changes and/or improvements to equipment in the leased
premises required by the company issuing Landlord’s fire insurance so as to avoid the cancellation
of, or cause the increase in premiums on said insurance.

Section 8.04 — Indemnification of Landlord.

Tenant shall indemnity Landlord and save it harmless from and against all claims, actions, damages,
liability and expense in connection with loss of life, personal injury and/or damage to property
arising from or out of any occurrence in, upon or at the leased premises, or the occupancy or use
by Tenant of the leased premises of any part thereof, or occasioned wholly or in part by an act or
omission of Tenant, its agents, contractors, employees, servants, lessees, or concessionaires,
whether occurring in or about the leased premises or outside the leased premises but within the
Common Areas. In the case Landlord shall be made a party to any litigation commenced by or against
Tenant, then Tenant shall protect and hold Landlord harmless and shall pay all costs, expenses and
reasonable attorney’s fees incurred or paid by Landlord in enforcing the covenants and agreements
in this lease.

Section 8.05 — Waiver of Subrogation.

Landlord and Tenant waive, unless said waiver should invalidate any such insurance, their right to
recover damages against each other for any reason whatsoever to the extent the damaged party
recovers indemnity from its insurance carrier.

ARTICLE IX

Utilities

     Section 9.01 — Payment of Utilities.

     Tenant shall be solely responsible for and promptly pay all charges for gas, electricity or any
other utility used or consumed in the leased premises. Should Landlord elect to supply any utility
used or consumed in the leased premises, Tenant agrees to purchase and pay for the same as
additional rent at the applicable rates charged to the Landlord. In no event shall Landlord be
liable for any interruption or failure in the supply of any such utilities to the leased premises.

	 	 	 	 	 
	Tenant shall pay for:

	 	 x  Garbage Removal
	 	 x  Electricity
	 

	 	 x  Water
	 	 x  Telephone
	 

	 	     Gas
	 	     other utilities

ARTICLE X

Attornment, Subordination

Section 10.01 — Attornment.

Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of
exercise of the power of sale under any mortgage made the Landlord covering the leased premises or
in the event a deed is given in lieu of foreclosure of any such mortgage, attorn to the

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purchaser or grantee in lieu of foreclosure upon any such foreclosure or Sale and recognize such
purchaser or grantee in lieu of foreclosure as the Landlord under this lease.

Section 10.02 — Subordination.

Tenant agrees that this lease and the interest of Tenant therein shall be, and the same hereby is
made subject and subordinated at all times to all covenants, restrictions, assessments and other
encumbrances now or hereafter affecting the fee title of the building containing the premises and
to all ground and underlying leases and to any mortgages in any amounts, and all advances made and
to be made thereon, which may now or at any time throughout the term of this lease be placed
against or affect any or all of the land and/or all of the buildings and improvements, including
the leased premises, and to all renewals, modifications, consolidations, participation,
replacements and extensions thereof. The term “mortgages” as used herein shall be deemed to
include trust indentures and deed of trust. The aforesaid provisions shall be self-operative and
no further instrument of subordination shall be necessary unless required by any such ground or
underlying lessor or mortgagees. Should Landlord or any ground or underlying lessors or mortgagees
desire confirmation of such subordination, then Tenant, within ten (10) days following Landlord’s
written request therefore, agrees to execute and deliver, without charge, any and all documents (in
form acceptable to Landlord and such ground or underlying lessors or mortgagees) subordinating this
lease and the Tenant’s rights hereunder. However, should any such ground or underlying lessors or
any mortgagees request that this lease be made superior, rather than subordinate, to any ground or
underlying lease and/or mortgage, then Tenant, within ten (10) days following Landlord’s written
request therefor, agrees to execute and deliver, without charge, any and all documents (in form
acceptable to Landlord and such underground lessors or mortgagees) effectuating such priority.

ARTICLE XI

Assignment and Subletting

Section 11.01 — Significant Change of Ownership.

Tenant is a partnership. Tenant represents that the partner executing this lease is duly
authorized to execute the same on behalf of the partnership. If there shall occur any change in
the ownership of the interest of the general partners of the partnership, whether such change
results from a sale, assignment, bequest, inheritance, operation of law or otherwise, or if the
partnership is dissolved, without the prior written consent of Landlord, then Landlord shall have
the option to terminate this lease upon ten (10) days notice to Tenant. If Tenant is a
partnership, Tenant represents that the partner executing this lease is duly authorized to execute
the same on behalf of the partnership. If there shall occur any change in the ownership of the
interest of the general partners of the partnership, whether such change results from a sale,
assignment, bequest, inheritance, operation of law or otherwise, or if the partnership is
dissolved, without the prior written consent of Landlord, then Landlord shall have the option to
terminate this lease upon ten (10) days notice to Tenant. Notwithstanding the foregoing, it is
understood and agreed that any change of ownership of Tenant resulting from any person or entity
acquiring, directly or indirectly, substantially all of the business or assets of any entity that
owns or controls Tenant shall not give Landlord a the right to terminate this Lease.

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ARTICLE XII

Governmental Regulations

Section 12.01 — Government Regulations.

Tenant shall, at Tenant’s sole cost and expense, comply with all county, municipal, state, federal
laws, orders, ordinances and other applicable requirements of all governmental authorities, now in
force, or which may hereafter be in force, pertaining to the leased premises, and shall faithfully
observe in the use and occupancy of the leased premises all municipal and county ordinances and
state and federal statutes now in force or which may hereafter be in force. Landlord shall, at
Landlord’s sole cost and expense, comply with all county, municipal, state, and federal laws,
orders, ordinances and other applicable requirements of all governmental authorities, now in force,
or which may hereafter be in force, pertaining to the common areas and facilities not within the
leased premises.

ARTICLE XIII

Rules and Regulations

Section 13.01 — Rules and Regulations.

Landlord reserves the right from time to time to adopt, suspend, amend or supplement reasonable
rules and regulations, and to adopt and promulgate additional rules and regulations applicable to
the leased premises. Notice of such rules and regulations and amendments and supplements thereto,
if any, shall be given to Tenant. Tenant acknowledges receipt of and agrees to abide by the Rules
and Regulations presently in effect a copy of which is attached hereto; provided, however, that
Landlord shall not adopt or promulgate any rules and regulations that are inconsistent with the
operation of a medical office on the leased premises nor amend, suspend or supplement any rules and
regulations that would prevent or materially limit the ability of Tenant to operate a medical
office on the leased premises.

ARTICLE XIV

Advertising

Section 14.01 — Solicitation of Business.

Tenant and Tenant’s employees ands agents shall not solicit business in the parking or other common
areas, nor shall Tenants distribute any handbills or other advertising matter in automobiles parked
in the parking area or in other common areas.

ARTICLE XV

Destruction of Leased Premises.

Section 15.01 — Total or Partial Destruction.

If the leased premises shall be damaged by fire, the elements, unavoidable accident or other
casualty, without the fault of Tenant, but are not thereby rendered untenantable in whole or in
part, Landlord shall at its own expenses cause such damage, except to Tenant’s equipment and trade
fixtures, to be repaired, and the rent and other charges shall not be abated. If by reason of

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such occurrence, the premises shall be rendered untenantable only in part, Landlord shall at its
own expense cause the damage, except to Tenant’s equipment and trade fixtures, to be repaired, but
only to the extent of Landlord’s original obligation to construct pursuant to Section 3.01, and the
fixed minimum rent meanwhile shall be abated proportionately as to the portion of the premises
rendered untenantable; provided, however, if such damage shall occur during the last two (2) years
of the term of this lease (or of any renewal term), Landlord shall have the right to be exercised
by notice to Tenant within sixty (60) days after said occurrence, to elect not to repair such
damage and to cancel and terminate this lease effective as of a date stipulated in Landlord’s
notice, which shall not be earlier than thirty (30) days nor later than sixty (60) days after the
giving of such notice. If the premises shall be rendered wholly untenantable by reason of such
occurrence, the Landlord shall at its own expense cause such damage, except to Tenant’s equipment
and trade fixtures, to be repaired, but only to the extent of the Landlord’s original obligation to
construct pursuant to Section 3.01 and the fixed minimum rent meanwhile shall be abated in whole or
in part except that Landlord shall have the right to be exercised by notice to Tenant within sixty
(60) days after said occurrence, to elect not to reconstruct the destroyed premises, and in such
event this shall be construed to permit the abatement in whole or in part of the charges for
insurance, taxes and operating costs attributable to any period during which the demised premises
shall be in untenantable condition, nor shall there be any abatement in these items nor the fixed
minimum rent if such damage is caused by the fault of the Tenant. Whenever the fixed minimum rent
shall be abated pursuant to this Section 15.01, such abatement shall continue until the date which
shall be the sooner to occur of (i) fifteen (15) days after notice by Landlord to Tenant that the
leased premises has been substantially repaired and restored, or (ii) the date Tenant’s business
operations are restored in the entire leased premises. Notwithstanding the foregoing or anything
else herein to the contrary, if the leased premises shall be damaged by fire, the elements,
unavoidable accident or other casualty without the fault of Tenant and as a result either: (a)
fifty (50%) or more of the of the leased premises are rendered untenantable thereby; or (b) the
building of which the leased premises is a part is destroyed; then, if such damage or destruction
shall occur during the last year of the term of this Lease (or any renewal term) Tenant shall have
the right, to be exercised by notice to Landlord, to cancel and terminate this Lease effective as
of the date stipulated in Tenant’s notice which shall not be earlier than thirty (30) days nor
later than sixty (60) days after the giving of such notice.

Section 15.02 — Partial Destruction of Building.

In the event that fifty percent (50%) or more of the rentable area of the building of which the
premises are a part shall be damaged or destroyed by fire or other causes, notwithstanding any
other provisions contained herein and that the leased premises may be unaffected by such fire or
other causes, Landlord shall have the right to be exercised by notice in writing to Tenant within
sixty (60) days after said occurrence, to elect to cancel and terminate this lease. Upon the
giving of such notice to Tenant, the term of this lease shall expire by lapse of time upon the
third day after such notice is given, and Tenant shall vacate the leased premises and surrender the
same to Landlord.

ARTICLE XVI

Eminent Domain

Section 16.01 — Total Condemnation.

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If the whole of the leased premises shall be acquired or condemned by eminent domain for a public
quasi-public use or purpose, then the term of this lease shall cease and terminate as of the date
of title vesting in such proceeding and all rentals and other charges shall be paid to that date
and Tenant shall have no claim against Landlord for the value of any unexpired term of this lease.

Section 16.02 — Partial Condemnation.

If any part of the leased premises shall be acquired or condemned by eminent domain for public or
quasi-public use or purpose, and in the event that such partial taking or condemnation shall, in
the opinion of the Landlord, render the leased premises unsuitable for the business of the Tenant,
then Landlord shall have the right to terminate this lease by notice given to the Tenant within
sixty (60) days after the date of title vesting in such proceeding and Tenant shall have no claim
against Landlord for the value of any unexpired term of this lease. In the event of a partial
taking or condemnation which is not extensive enough to render the premises unsuitable for the
business of the Tenant, then Landlord shall promptly restore the leased premises (exclusive of
Tenant’s equipment and trade fixtures) to a condition comparable to its condition at the time of
such condemnation less the portion lost in the taking and the building of which the leased premises
forms a part to the extent necessary to constitute the portion of the building not so taken as a
complete architectural unit; provided that Landlord shall not in any event be required to spend for
such repair, restoration or alteration work an amount in excess of the respective amounts received
by Landlord as damages for the taking of such part of the leased premises and of the building of
which the same forms part. As used herein, “received by Landlord” shall mean that portion of the
award or damages in condemnation received by Landlord from the condemning authority which is free
and clear of all prior claims or collections by the holders of any mortgages or deeds of trust or
any ground or underlying lessors, and this lease shall continue in full force and effect except
that the fixed minimum annual rent shall be reduced in proportion to the portion of the leased
premises lost in the taking. If more than twenty percent (20%) of the floor area of the building
shall be taken as aforesaid (whether or not the leased premises shall be affected by the taking),
Landlord shall have the right to terminate this lease by notice to Tenant given within sixty (60)
days after the date of title vesting in such proceeding and Tenant shall have no claim against
Landlord for the value of the unexpired term of this lease.

ARTICLE XVII

Default of Tenant

Section 17.01 — Event of Default.

Upon the happening of one or more of the events as expressed below, the Landlord shall have any and
all rights and remedies hereinafter set forth:

(a) In the event Tenant should fail to pay anyone or more of the said monthly installments or rent,
or any other sums required to be paid hereunder, as and when the same becomes due.

(b) In the event a petition in Bankruptcy be filed by the Tenant, or be filed against Tenant, and
such petition is not dismissed within thirty (30) days from the filing thereof, or in the event
Tenant is adjudged a bankrupt.

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(c) In the event an assignment for the benefit of the creditors is made by Tenant.

(d) In the event of an appointment of any court of a receiver or other court officer on Tenant’s
property and such receivership is not dismissed within thirty (30) days from such appointment.

(e) In the event Tenant removes, attempts to remove, or permits to be removed from the leased
premises, except in the usual course of trade, the goods, furniture, effects or other property of
the Tenant brought thereon.

(f) In the event Tenant, before the expiration of the term hereof and without the written consent
of the Landlord, vacates the leased premises or abandons the possession thereof, or uses the same
for purposes other than the purposes for which the same is hereby leased, or ceases to use the
leased premises for the purposes herein expressed.

(g) In the event an execution or other legal process is levied upon the goods, furniture, effects
or other property of Tenant brought on the leased premises, or upon the interest of Tenant in this
lease, and the same is not satisfied or dismissed within ten (10) days from this levy.

(h) In the event the Tenant fails to keep, observe or perform any of the other terms, conditions or
covenants on the part of Tenant herein to be kept, observed and performed for more than ten (10)
days after written notice thereof is given by Landlord to Tenant specifying the nature of such
default, or if the default so specified shall not be of such nature that the same cannot be
reasonably cured or remedied within the said ten (10) days period, if Tenant shall not in good
faith have commenced the curing and shall not hereafter continuously and diligently proceed
therewith to completion.

Section 17.02 — Remedies of Landlord.

(a) In the event of any such default or breach, Landlord shall have the immediate right to re-enter
the leased premises, either by summary proceedings or other lawful method, and to dispossess Tenant
and all other occupants therefrom and remove and dispose of all property therein in the manner
provided in subdivision (c) of this section, without Landlord being deemed guilty of trespass or
becoming liable for any loss or damage which may be occasioned thereby. Landlord shall also have
the right, at the option of the Landlord, to terminate this lease upon ten (10) days written notice
to Tenant, and to thereupon re-enter and take possession of said premises in any manner above
described. In the event of any such default or breach, Landlord shall have the right, at its
option, from time to time, without terminating this lease, to re-enter and re-let the premises or
any part thereof, with or without legal process, as the agent and for the account of Tenant, upon
such terms and conditions as Landlord may deem advisable or satisfactory, in which event the rents
received on such re-letting and collection including but not limited to, necessary renovation and
alterations of the leased premises, reasonable attorney’s fees, any real estate commissions paid,
and thereafter payments of all sums due or to become due Landlord hereunder, and if sufficient sum
shall not be thus realized or secured to pay such sums and other charges, (i) at the Landlord’s
option, Tenant shall pay Landlord any deficiency monthly, notwithstanding Landlord may have
received rental in excess of the rental stipulated in this lease in previous or subsequent months,
and Landlord may bring an action therefore as such

H-15

 

monthly deficiency shall arise, or (ii) at Landlord’s option, the entire deficiency, which is
subject to ascertainment for the remaining to require Landlord to re-enter and re-let in any event.
The Landlord shall not, in any event be required to pay Tenant any surplus of any sums received by
Landlord on a re-letting of said premises in excess of rent provided in this lease.

(b) In the event of any default or breach, the Landlord shall have the right, at its option, to
declare the rents for the entire remaining term and other indebtedness, if any, immediately due and
payable without regard to whether or not possession shall have been surrendered to or taken by
Landlord, and may commence action immediately thereupon and recover judgment therefor.

Thereof, and the Tenant hereby waives any and all loss, destruction and/or damage or injury which
may be occasioned by any of the aforesaid acts.

(c) The Landlord, in addition to other rights and remedies it may have, shall have the right to
remove all or any part of the Tenant’s property from said premises and any property removed may be
stored in any public warehouse or elsewhere at the cost of and for the account Tenant and the
Landlord shall not be responsible for the care of safekeeping thereof, and the Tenant hereby waives
any and all loss, destruction and/or damage or injury which may be occasioned by any of the
aforesaid acts.

(d) Any and all rights, remedies and options given in this lease to Landlord shall be cumulative
and in addition to and without waiver of or in derogation of any right or remedy given to it under
any law now or hereafter in effect.

Section 17.03 — Waiver.

The waiver of Landlord of any breach of any term, condition or covenant herein contained shall not
be waiver of such term, condition or covenant, or subsequent breach of the same or any other term,
condition or covenant herein contained. The consent or approval by Landlord to or any act by
Tenant requiring Landlord’s consent or approval shall not be deemed to waive or render unnecessary
Landlord’s consent to approval of any subsequent similar act by Tenant. No re-entry hereunder
shall bar the recovery or rents or damages for the breach of any of the terms, conditions or
covenants on the part of Tenant herein contained. The receipt of rent after breach or condition
broken, or delay on the part of Landlord to enforce any right hereunder, shall not be deemed a
waiver of forfeiture, or a waiver of the right of Landlord to annul this lease or to re-enter said
leased premises or to re-let same.

Section 17.04 — Expenses of Enforcement.

In the event any payment due Landlord under this lease shall not have paid ten (10) days after due
date, Tenant agrees to pay the sum of Ten Dollars ($10.00) per day, or five percent (5%) of the
amount due, whichever is greater, for such delinquent payment until made. In the event that any
check, bank draft, order for payment or negotiable instrument given for any payment under this
lease shall be dishonored for any reason whatsoever not attributable to Landlord, Landlord shall be
entitled to make an administrative charge to Tenant of Twenty-Five Dollars ($25.00). In the event
it shall be necessary for Landlord to give more than one (1) written notice to Tenant of any
violation of this lease, Landlord shall be entitled to make an administrative charge to Tenant of
Twenty-Five Dollars ($25.00) for each such notice. Tenant recognized and agrees that the

H-16

 

charges which Landlord is entitled to make upon the conditions stated in this section, represent,
at the time this lease is made, a fair and reasonable estimate and liquidation of the costs of
Landlord in the administration of the building resulting to Landlord from the events described
which costs are not contemplated or included in any other rental or charges provided to be paid by
Tenant to Landlord in this lease. Any charges becoming due under this Section of this lease shall
be added and become due with the next ensuing monthly payment of fixed minimum rental and shall be
collectable as a part thereof.

Section 17.05 — Legal Expenses.

In the event that it shall become necessary for Landlord to employ the services of any attorney to
enforce any of its rights under this lease to collect any sums due to it under this lease or to
remedy the breach of any covenant of this lease on the part of the Tenant to be kept or performed,
regardless of whether suit is brought, Tenant shall pay to Landlord such fees as shall be charged
by Landlord’s attorney for such services.

ARTICLE XVIII

Access by Landlord

Section 18.01 — Right of Entry.

Landlord and Landlord’s agent shall have the right to enter the leased premises at all times to
examine the same, and to show them to prospective purchasers or leases of the building, and to make
such repair or alterations, improvements or additions as Landlord may deem necessary or desirable,
and Landlord shall be allowed to take all material into and upon said premises that may be required
therefore without the same constituting an eviction of Tenant in whole or in part and the rent
reserved shall in no way abate while said repairs, alterations, improvements or additions are being
made unless Tenant is prevented from operating in the leased premises in whole or in part, in which
event rent shall be proportionately abated during said period. During the six (6) months prior to
the expiration of the term of this lease or any renewal term, Landlord may exhibit the premises to
prospective tenants or purchasers, and place upon the premises the usual notices “To Let” or “For
Sale” which notices Tenant shall permit to remain without molestation. If Tenant shall not be
personally present to open and permit as entry into said premises, at any time, when for any reason
an entry therein shall be necessary or permissible, Landlord or Landlord’s agent may enter same
without, in any manner, affecting the obligations and covenants of this lease, nothing herein
contained however, shall be construed to impose upon Landlord any obligation, responsibility or
liability whatsoever, for the care, maintenance or repair of the building or any part thereof,
except as otherwise herein specifically provided. Notwithstanding anything herein to the contrary,
Landlord shall use all commercially reasonable efforts to minimize any disruption to Tenant’s
business or use and occupancy of the leased premises occasioned by any entry by Landlord or
Landlord’s agents on, examination or showing of, or repair, alteration, improvement, or addition to
the leased premises.

ARTICLE XIX

Tenant’s Property

Section 19.01 — Taxes on Leasehold or Personalty.

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Tenant shall be responsible for and shall pay before delinquent all municipal, county or state
taxes assessed during the term of this lease against any leasehold interest or personal property of
any kind, owned by or placed in, upon or about the leased premises by the Tenant.

Section 19.02 — Notice by Tenant.

Tenant shall give immediate notice to Landlord in case of fire or accidents in the leased premises
or in the building of which the premises are a part or of defects therein or in any fixture or
equipment.

ARTICLE XX

Holding over; Successor

Section 20.01 — Holding Over.

In the event Tenant remains in possession of the leased premises after the expiration of the
tenancy created hereunder, and without the execution of a new lease or other agreement in writing,
Tenant, at the option of Landlord, shall be deemed to be occupying the leased premises as a Tenant
from month-to-month, at a monthly rent equal to two (2) time the fixed minimum rent payable during
the last month of the lease term and a twenty-five percent (25%) increase for each month that
occupancy continues thereafter.

Section 20.02 — Successors.

All rights and liability herein given to, or imposed upon the respective parties hereto shall
extend to and bind the several respective heirs, executors, administrators, successors, and assigns
of the said parties; and if there shall be more than one Tenant, they shall be bound jointly and
severally by the terms, covenants and agreements herein. No rights, however, shall inure to the
benefit of assignee of Tenant unless the assignment to such assignee has been approved by Landlord
in writing as provided in section 11.01 hereof. Nothing contained in this lease shall in any
manner restrict Landlord’s right to assign or encumber this lease and, in the event Landlord sells
or transfers its interest in the building and the purchaser or transferor assumes Landlord’s
obligations and covenants, Landlord shall thereupon be relieved of all further obligations
hereunder.

ARTICLE XXI

Quiet Enjoyment

Section 21.01 — Landlord’s Covenant.

Upon payment by the Tenant of the rents herein provided, and upon the observance and performances
of all the covenants, terms and conditions on Tenant’s part to be observed and performed, Tenant
shall peaceably and quietly hold and enjoy the leased premises for the term hereby demised without
hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming
by, through or under that Landlord, subject, nevertheless, to the terms and conditions of this
lease.

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ARTICLE XXII

Miscellaneous

Section 22.01 — Accord and satisfaction.

No payment by tenant or receipt by Landlord of a lesser amount than the monthly rent herein
stipulated shall be deemed to be other than an account of the earliest stipulated rent, nor shall
any endorsement or statement on any check or any letter accompanying the check or payment as rent
be deemed an accord and satisfaction, and landlord may accept such check or payment without
prejudice to Landlord’s right to recover the balance of such rent or pursue any other remedy in
therein provided.

Section 22.02 — Entire Agreement.

The lease and the exhibits, and rider, if any, attached hereto and forming a part hereof, set forth
all covenants, promises, agreements, conditions and understandings between Landlord and Tenant
concerning the leased premises and there are no covenants, promises, conditions or understanding,
either oral or written, between them other than are herein set forth. Except as herein otherwise
provided, no subsequent alteration, change or addition to this lease shall be binding upon Landlord
or Tenant unless reduced to writing and signed by them.

Section 22.03 — No Partnership.

Landlord does not, in any way or any purpose, become a partner of Tenant in the conduct of its
business, or otherwise, or joint venturer or a member of a joint enterprise with Tenant.

Section 22.04 — Force Majeure.

In the event that either party hereto shall be delayed or hindered in or prevented from the
performance of any act required hereunder by reason of strikes, lock-outs, labor troubles,
inability to procure materials, failure of power, restrictive governmental laws or regulations,
riots, insurrection, war or other reason of a like nature not the fault of the party delayed in
performing work or doing act is required under the terms of this lease, then performance of such
act shall be excused for the period of the delay and the period for the performance of any such act
shall be extended for a period of such delay. The provisions of this section 22.04 shall not
operate to excuse Tenant from the prompt payment of rent, percentage rent, additional rent or any
other payment required under the terms of this lease.

Section 22.05 — Notices.

All notices shall be in writing.

(a) Any notice by Tenant to Landlord must be served by certified or registered mail, postage
prepaid, addressed to Landlord at the address first hereinabove given or at such other address as
Landlord may designate by written notice.

(b) After commencement of the term hereof any notice by Landlord to Tenant shall be serviced by
first class mail, postage prepaid, addressed to Tenant at the leased premises or at

H-19

 

such address as Tenant shall designate by written notice or by delivery by Landlord to the leased
premises or to such other address. Prior to the commencement of the term hereof such notice may be
given by Landlord by such mail or delivery at the address designated for Tenant on the cover sheet
of this Lease.

(c) Notice shall be deemed to be properly given if addressed to Tenant at the last known address,
if such first class mail is refused or otherwise not delivered.

Section 22.06 — Captions and Section Numbers.

The captions, section numbers, article number on the index appearing in this lease are inserted
only as a matter of convenience and in no way define, limit, construe, or describe the scope of
intent or subsections or articles of this lease nor in any way affect this lease.

Section 22.07 — Tenant Defined, Use of Pronoun.

The word “Tenant” shall be deemed and taken to mean each and every person mentioned as a Tenant
herein be the same, one or more, and if there shall be more than one Tenant, any notice required or
permitted by the terms of this lease may be given by or to anyone thereof and shall have the same
force and effect as if given to all thereof. The use of the neuter singular pronoun to refer to
Landlord or Tenant shall be deemed a proper reference even though Landlord or Tenant may be an
individual, a partnership, a corporation or a group of two or more individuals or corporations.
The necessary grammatical change required to make the provisions of this lease apply in the plural
sense where there is more than one Landlord or Tenant and to either corporations, associations,
partnerships, or individuals, males or females, shall in all instances be assumed as though in each
case fully expressed.

Section 22.08 — Partial Validity.

If any term, covenant or condition of this lease or the application thereof to any person or
circumstances shall, to any extent, be invalid or unenforceable, the remainder of this lease, or
the application of such term, covenant or condition to persons or circumstances other than those as
to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant
or condition of this lease shall be valid and be enforced to the fullest extent permitted by law.

Section 22.09 — No Option.

The submission of this lease for examination does not constitute a reservation of or option for the
leased premises and this lease becomes effective as a lease only upon execution and delivery
thereof by Landlord to Tenant.

Section 22.10 — Recording.

Tenant shall not record this lease or any memorandum thereof without the written consent of
Landlord.

Section 22.11 — Liability of Landlord.

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Anything contained in this lease at law or in equity to be the contrary notwithstanding, Tenant
expressly acknowledges and agrees that there shall at no time be or in any way related hereto or
the leased premises; it being further acknowledged and agreed that Tenant is accepting this lease
and the estate created hereby upon and subject to the understanding that it shall not enforce or
seek to enforce any claim or judgment or any other matter, for money or otherwise, personally or
directly against Landlord or an officer, director, stockholder, partner, principal (disclosed or
undisclosed), representatives or agent of Landlord, but will look solely to the Landlord’s interest
in the building of which the Premises is a part for the satisfaction of any and all claims,
remedies or judgments (or other judicial process) in favor of Tenant requiring the payment of money
by Landlord in the event of any breach by landlord of any of the terms, covenants or agreements to
be performed by Landlord under this lease or otherwise, subject, however, to the prior rights of
any ground or underlying lessors or the holders of the mortgage encumbering the same and no other
assets of Landlord shall be subject to levy, execution or other judicial process for the
satisfaction of Tenant’s claims; such exculpation of personal liability as herein set forth to be
absolute, unconditional and without exception of any kind.

Section 22.12 — Guaranty of Lease.

The person(s) who execute this lease at the place provided below for Guarantors, if any, express
their agreement to the terms hereof and unconditionally hereby, jointly and severally, personally
guarantee all of the Tenant’s obligations hereunder.

Section 22.13 — Attachments.

Any exhibits and any guarantee form as well as any addendums which are attached to this lease are a
part of this lease and are incorporated herein as if fully set forth herein.

ARTICLE XXIII

Termination; Option to Renew

Section 23.01 — Termination.

Tenant may terminate this lease at any time without penalty or prepayment on not less than 180
days’ written notice to Landlord.

Section 23.02 — Option to Renew.

The Landlord grants to the Tenant the right and option to renew this Lease for the additional term
of two terms of five (5) years upon the terms and conditions as set forth herein and as hereinafter
set forth. After the first term the Tenant shall pay cost of living increase annually.

The minimum fixed rent for the first year of the renewed term shall be the annual sum of $47,446.19
payable in advance monthly in the manner and together with the additional rent due pursuant to
Article II of this lease.

Unless otherwise provided above, the minimum fixed rent for such additional year of the option
period, if any, commencing with the first month’s rent of the second year shall be the minimum

H-21

 

fixed rent for the previous year PLUS the Cost of Living adjustment calculated pursuant to Article
XXIV hereof.

To exercise this option, the Tenant must not be in default of any of the terms and conditions of
this lease and shall give 180 days written notice in advance of the then current term of this lease
of its intention to renew. In the absence of such timely notice, the option to renew shall be null
and void. If the Tenant shall give notice of exercise of an election in the manner and within the
time provided aforesaid, the term shall be extended upon the giving of the notice without the
requirement of any action on the part of Landlord.

ARTICLE XXIV

Cost of Living Increases in Fixed Minimum Rent

Unless otherwise provided in the preceding Article, the fixed minimum rent for each annual period
commencing with the option of the renew term, if any, shall be the fixed minimum rent for the then
current period PLUS the increase, if any, in the Consumer Price Index, for all Urban Customers
(U.S. city average — 1967 + 100). All Items published by the Bureau of Labor Statistics of the
United States Department of Labor (hereinafter the “Index”) over the most recent twelve (12) month
period for which published indexes are available at the time that Landlord calculates the
adjustment. In the alternative, at Tenant’s option, Tenant hereby agrees that the fixed minimum
rent for each annual period commencing with the second year of the option term shall automatically
increase the rate of three percent (3%) per year. In no event shall the fixed minimum rent, as
adjusted, be less than the fixed minimum rent payable for the then current period. Said adjusted
rental shall be due and payable monthly, in advance, in the manner and together with the additional
rent due set forth in Article II hereof.\

IN WITNESS WHEREOF, Landlord and Tenant have signed and sealed this lease on the day and year first
above written. Tenant have signed and sealed this lease on the day and year first above written.

Signed, sealed, and delivered in the presence of:

	 	 	 	 	 
	 	LANDLORD

PELU PROPERTIES, Inc.

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 

As to Landlord

	 	 	 	 	 
	 	TENANT

KENT MANAGEMENT SYSTEMS, INC.

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 

As to Tenant Tenant’s Signature

H-22EX-10.1

 

Exhibit 10.1

Tollgrade Communications, Inc.

2006 Long-Term Incentive Compensation Plan

(as adopted by the Stockholders on May 9, 2006)

Article 1. Establishment, Objectives, and Duration

	1.1	 	Establishment of the Plan. Tollgrade Communications, Inc., a Pennsylvania corporation
(hereinafter referred to as the “Company”), hereby establishes an incentive compensation plan
to be known as the “Tollgrade Communications, Inc. 2006 Long-Term Incentive Compensation Plan”
(hereinafter referred to as the “Plan”), as set forth in this document. The Plan permits the
grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights,
Restricted Stock, Performance Shares and Performance Units.
	 
	 	 	Subject to approval by the Company’s stockholders, the Plan shall become effective as of May
10, 2006 (the “Effective Date”) and shall remain in effect as provided in Section 1.3
hereof.
	 
	1.2	 	Objectives of the Plan. The objectives of the Plan are to optimize the profitability and
growth of the Company through incentives which are consistent with the Company’s goals and
which link the personal interests of Participants to those of the Company’s stockholders; to
provide Participants with an incentive for excellence in individual performance; and to
promote teamwork among Participants.
	 
	 	 	The Plan is further intended to provide flexibility to the Company in its ability to
motivate, attract and retain the services of Participants who make significant contributions
to the Company’s success and to allow Participants to share in the success of the Company.
	 
	1.3	 	Duration of the Plan. The Plan was adopted by the Board of Directors on March 6, 2006,
subject to approval by the Company’s stockholders, and shall commence on the Effective Date,
as described in Section 1.1 hereof, and shall remain in effect, subject to the right of the
Board of Directors to amend or terminate the Plan at any time pursuant to Article 14 hereof,
until all Shares subject to it shall have been purchased or acquired according to the Plan’s
provisions. However, in no event may an Award be granted under the Plan on or after May 9,
2016.

Article 2. Definitions

Whenever used in the Plan, the following terms shall have the meanings set forth below, and when
the meaning is intended, the initial letter of the word shall be capitalized:

	2.1	 	“Appropriate Administrator” means, in the case of any Awards to Employees, the Committee, and
in the case of any Awards to Nonemployee Directors, the Board.
	 
	2.2	 	“Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Performance
Shares or Performance Units.
	 
	2.3	 	“Award Agreement” means an agreement entered into by the Company and each Participant setting
forth the terms and provisions applicable to Awards granted under this Plan.
	 
	2.4	 	“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

 

 

	2.5	 	“Board” or “Board of Directors” means the Board of Directors of the Company.
	 
	2.6	 	“Cause” shall mean with respect to the termination of an Employee’s employment, unless
otherwise determined by the Committee at the time of the grant of the Award (i) in the case
where there is no employment agreement, change of control agreement or similar agreement in
effect between the Employee and the Company at the time of the grant of the Award (or where
there is such an agreement but it does not define “cause” or words of like import),
termination due to an Employee’s dishonesty, fraud, conviction of a felony, insubordination,
willful misconduct, refusal to perform services, or unsatisfactory performance of his or her
duties for the Company as determined by the Committee in its sole discretion; or (ii) in the
case where there is an employment agreement, change in control agreement or similar agreement
in effect between the Employee and the Company at the time of the grant of the Award that
defines “cause” (or words of like import), as defined under such agreement.
	 
	2.7	 	“Change in Control” of the Company shall be deemed to have occurred (as of a particular day,
as specified by the Board) if the Board, by a majority vote, agrees that a Change in Control
has occurred, or is about to occur. Such a change shall not include, however, a restructuring,
reorganization, merger, or other change in capitalization in which the Persons who own an
interest in the Company on the Effective Date (the “Current Owners”) (or any individual or
entity which receives from a Current Owner an interest in the Company through will or the laws
of descent and distribution) maintain more than a sixty-five percent (65%) interest in the
resultant entity.
	 
	 	 	Regardless of the Board’s vote, a Change in Control will be deemed to have occurred as of
the first day any one (1) or more of the following paragraphs shall have been satisfied:

	 	(a)	 	Any Person (other than the Person in control of the Company as of the Effective
Date of the Plan, or other than a trustee or other fiduciary holding securities under
an employee benefit plan of the Company, or a corporation owned directly or indirectly
by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company), becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing more than thirty-five percent
(35%) of the combined voting power of the Company’s then outstanding securities; or
	 
	 	(b)	 	The stockholders of the Company approve:

	 	(i)	 	A plan of complete liquidation of the Company; or
	 
	 	(ii)	 	An agreement for the sale or disposition of all or substantially all of
the Company’s assets (other than one in which in the stockholders of the Company,
as determined immediately prior to such transaction, hold, directly or indirectly,
as determined immediately following such transaction, a majority of the voting
power of each surviving, resulting or acquiring corporation which, immediately
following such transaction, holds more than 10% of the consolidated assets of the
Company immediately prior to the transaction); or
	 
	 	(iii)	 	A merger, consolidation, or reorganization of the Company with or
involving any other corporation, other than a merger, consolidation, or
reorganization that would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting

 

 

	 	 	 	securities of the surviving entity) at least sixty-five percent (65%) of the
combined voting power of the voting securities of the Company (or such surviving
entity) outstanding immediately after such merger, consolidation, or
reorganization.

	 	(c)	 	During any two-year period (not including any period prior to the Effective
Date of this Plan), individuals who at the beginning of such period constitute the
Board and any new Director whose nomination or election was approved by a vote of at
least two-thirds of the Directors then still in office who were either Directors at the
beginning of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority of the Board.

	 	 	However, in no event shall a Change in Control be deemed to have occurred, with respect to a
Participant, if that Participant is part of a purchasing group, which consummates the Change
in Control transaction. The Participant shall be deemed “part of a purchasing group” for
purposes of the preceding sentence if the Participant is an equity participant or has agreed
to become an equity participant in the purchasing company or group (except for (i) passive
ownership of less than five percent (5%) of the voting equity securities of the purchasing
company; or (ii) ownership of equity participation in the purchasing company or group which
is otherwise deemed not to be significant, as determined prior to the Change in Control by a
majority of the nonemployee continuing Directors).
	 
	2.8	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	2.9	 	“Committee” means the Compensation Committee of the Board, as specified in Article 3 herein,
or such other Committee appointed by the Board in accordance with Section 3.1 to administer
the Plan with respect to grants of Awards.
	 
	2.10	 	“Company” means Tollgrade Communications, Inc., a Pennsylvania corporation, and any successor
thereto as provided in Article 17 herein.
	 
	2.11	 	“Director” means any individual who is a member of the Board of Directors of the Company.
	 
	2.12	 	“Effective Date” shall have the meaning ascribed to such term in Section 1.1 hereof.
	 
	2.13	 	“Employee” means any active employee of the Company. Directors who are not employed by the
Company shall not be considered Employees under this Plan.
	 
	2.14	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or
any successor act thereto.
	 
	2.15	 	“Fair Market Value” shall be the mean between the following prices, as applicable, for the
date as of which fair market value is to be determined as quoted in The Wall Street Journal
(or in such other reliable publication as the Committee, in its discretion, may determine to
rely upon): (i) if the Common Stock is listed on the New York Stock Exchange, the highest and
lowest sales prices per share of the Common Stock as quoted in the NYSE Composite Transactions
listing for such date, (ii) if the Common Stock is not listed on such exchange, the highest
and lowest sales prices per share of Common Stock for such date on (or on any composite index
including) the principal United States securities exchange registered under the 1934 Act on
which the Common Stock is listed or (iii) if the Common Stock is not listed on any such
exchange, the highest and lowest sales prices per share of the Common Stock for such date on
the National Association of

 

 

	 	 	Securities Dealers Automated Quotations System or any successor system then in use
(“NASDAQ”). If there are no such sale price quotations for the date as of which fair market
value is to be determined but there are such sale price quotations within a reasonable
period both before and after such date, then fair market value shall be determined by taking
a weighted average of the means between the highest and lowest sales prices per share of the
Common Stock as so quoted on the nearest date before and the nearest date after the date as
of which fair market value is to be determined. The average should be weighted inversely by
the respective numbers of trading days between the selling dates and the date as of which
fair market value is to be determined. If there are no such sale price quotations on or
within a reasonable period both before and after the date as of which fair market value is
to be determined, then fair market value of the Common Stock shall be the mean between the
bona fide bid and asked prices per share of Common Stock as so quoted for such date on
NASDAQ, or if none, the weighted average of the means between such bona fide bid and asked
prices on the nearest trading date before and the nearest trading date after the date as of
which fair market value is to be determined, if both such dates are within a reasonable
period. The average is to be determined in the manner described above in this Section 2.15.
If the fair market value of the Common Stock cannot be determined on any basis previously
set forth in this Section 2.15 for the date as of which fair market value is to be
determined, the Committee shall in good faith determine the fair market value of the Common
Stock on such date. Fair market value shall be determined without regard to any restriction
other than a restriction which, by its terms, will never lapse.
	 
	2.16	 	“Incentive Stock Option” or “ISO” means an option to purchase Shares granted under Article 6
herein and which is designated as an Incentive Stock Option and which is intended to meet the
requirements of Code Section 422.
	 
	2.17	 	“Insider” shall mean an individual who, immediately prior to the grant of any Award, owns
stock possessing more than ten percent (10%) of the total combined voting power of all classes
of stock of the Company. For purposes of this Section 2.17, an individual (i) shall be
considered as owning not only Shares of stock owned individually but also all Shares of stock
that are at the time owned, directly or indirectly, by or for the spouse, ancestors, lineal
descendants and brothers and sisters (whether by whole or half blood) of such individual and
(ii) shall be considered as owning proportionately any Shares owned, directly or indirectly,
by or for any corporation, partnership, estate or trust in which such individual is a
stockholder, partner or beneficiary.
	 
	2.18	 	“Named Executive Officer” means a Participant who, as of the date of vesting and/or payout of
an Award, as applicable, is one of the group of “covered employees,” as defined in the
regulations promulgated under Code Section 162(m), or any successor statute.
	 
	2.19	 	“Nonemployee Director” means an individual who is a member of the Board of Directors of the
Company but who is not an Employee of the Company.
	 
	2.20	 	“Nonqualified Stock Option” or “NQSO” means an option to purchase Shares granted under
Article 6 herein and which is not intended to meet the requirements of Code Section 422.
	 
	2.21	 	“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in
Article 6 herein.
	 
	2.22	 	“Option Price” means the price at which a Share may be purchased by a Participant pursuant to
an Option.

 

 

	2.23	 	“Participant” means an Employee or a Nonemployee Director who has outstanding an Award
granted under the Plan.
	 
	2.24	 	“Performance-Based Exception” means the performance-based exception from the tax
deductibility limitations of Code Section 162(m).
	 
	2.25	 	“Performance Share” means an Award granted to a Participant, as described in Article 9
herein.
	 
	2.26	 	“Performance Unit” means an Award granted to a Participant, as described in Article 9 herein.
	 
	2.27	 	“Period of Restriction” means the period during which the transfer of Shares of Restricted
Stock is limited in some way (based on the passage of time, the achievement of performance
goals, or upon the occurrence of other events as determined by the Appropriate Administrator,
at its discretion), and the Shares are subject to a substantial risk of forfeiture, as
provided in Article 8 herein.
	 
	2.28	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act
and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d)
thereof.
	 
	2.29	 	“Restricted Stock” means an Award granted to a Participant pursuant to Article 8 herein.
	 
	2.30	 	“Retirement” shall mean any voluntary termination of employment by an Employee following the
attainment of age 65.
	 
	2.31	 	“Shares” means the shares of Common Stock of the Company.
	 
	2.32	 	“Stock Appreciation Right” or “SAR” means an Award designated as an SAR, pursuant to the
terms of Article 7 herein.

Article 3. Administration

	3.1	 	The Committee. Except as set forth in Section 3.5 below, the Plan shall be administered by
the Compensation Committee of the Board, or by any other Committee appointed by the Board
consisting of not less than two (2) Directors who (i) are “non-employee” directors and
otherwise meet the “disinterested administration” rules of Rule 16b-3 under the Exchange Act
and (ii) are “outside directors” under Section 162(m)(4)(C) of the Code, or any successor
provision. The members of the Committee shall be appointed from time to time by, and shall
serve at the discretion of, the Board of Directors.
	 
	3.2	 	Authority of the Committee. Except as set forth in Section 3.5 below, except as limited by
law or by the Articles of Incorporation or Bylaws of the Company, and subject to the
provisions herein, the Committee shall have full power to grant Options, SARs, Restricted
Stock, Performance Shares and Performance Units as described herein and to determine the
Employees to whom any such Award shall be made and the number of Shares to be covered thereby;
determine the sizes and types of Awards; determine the terms and conditions of Awards in a
manner consistent with the Plan; construe and interpret the Plan and any agreement or
instrument entered into under the Plan as they apply to Employees; and establish, amend, or
waive rules and regulations for the Plan’s administration as they apply to Employees; and
(subject to the provisions of Article 14 herein) amend the terms and conditions of any
outstanding Award except for Incentive Stock Options to the extent such terms and conditions
are within the discretion of

 

 

	 	 	the Committee as provided in the Plan. Further, the Committee shall make all other
determinations, which may be necessary or advisable for the administration of the Plan, as
the Plan applies to Employees. As permitted by law and applicable listing requirements, the
Committee may delegate its authority as identified herein.
	 
	3.3	 	Decisions Binding. All determinations and decisions made by the Committee pursuant to the
provisions of the Plan and all related orders and resolutions of the Board shall be final,
conclusive and binding on all persons, including the Company, its stockholders, Employees,
Participants, and their estates and beneficiaries.
	 
	3.4	 	Non-Competition. If a grantee of an Option, SAR, Restricted Stock, Performance Units or
Performance Shares (i) engages in the operation or management of a business (whether as owner,
partner, officer, director, employee or otherwise and whether during or after termination of
employment) which is in competition with the Company, (ii) induces or attempts to induce any
customer, supplier, licensee or other individual, corporation or other business organization
having a business relationship with the Company to cease doing business with the Company or in
any way interferes with the relationship between any such customer, supplier, licensee or
other person and the Company or (iii) solicits any employee of the Company to leave the
employment thereof or in any way interferes with the relationship of such employee with the
Company, the Appropriate Administrator, in its discretion, may immediately terminate all
outstanding Options and/or SARs held by the grantee, declare forfeited all Restricted Stock
held by the grantee as to which the restrictions have not yet lapsed and/or immediately cancel
any award of Performance Units or Performance Shares. Whether a grantee has engaged in any of
the activities referred to in the preceding sentence which would cause the outstanding Options
and/or SARs to be terminated, and/or the Restricted Stock to be forfeited and/or any award of
Performance Units or Performance Shares to be cancelled shall be determined, in its
discretion, by the Appropriate Administrator, and any such determination by the Appropriate
Administrator shall be final and binding.
	 
	3.5	 	Grants to Nonemployee Directors. Notwithstanding the foregoing, unless otherwise determined
by the Board, the Board shall grant Nonqualified Stock Options, SARs, Restricted Stock,
Performance Shares and Performance Units, and otherwise exercise the same authority as the
Committee as described in Section 3.2 above, with respect to Nonemployee Directors.

Article 4. Shares Subject to the Plan and Maximum Awards

	4.1	 	Number of Shares Available for Grants. Subject to adjustment as provided in Section 4.4
herein, the number of Shares hereby reserved for issuance to Participants under the Plan shall
be 1,300,000, all of which may be granted pursuant to Incentive Stock Options; provided
however, that, of that total, the maximum number of Shares of Restricted Stock granted
pursuant to Article 8 herein, shall be 300,000.
	 
	 	 	The following rules shall apply to grants of such Awards under the Plan:

(a) The maximum aggregate number of Shares that may be granted or that may vest, as
applicable, pursuant to any Award held by any one Named Executive Officer shall be 200,000
during any calendar year of the term of the Plan;

(b) The maximum aggregate cash payout received during any year by any one Named Executive
Officer with respect to Awards granted shall be $1,000,000.

 

 

	4.2	 	Lapsed Awards. If any Award granted under this Plan is canceled, terminates, expires, or
lapses for any reason, any Shares subject to such Award again shall be available for the grant
of an Award under the Plan.
	 
	4.3	 	Share Counting. (a) None of the following Shares shall become available for the grant of an
Award under the Plan:

   (i) Shares tendered by a Participant as full or partial payment to the Company upon
exercise of Options which are the subject of an Award granted under this Plan.

   (ii) Shares reserved for issuance upon an Award of SARs, to the extent the number of
Shares reserved exceeds the number of Shares actually issued upon exercise of such SARs.

   (iii) Shares withheld by, or otherwise remitted to, the Company to satisfy a
Participant’s tax withholding obligations upon the lapse of restrictions on Restricted
Stock, or the exercise of Options or SARs, which are the subject of an Award under this
Plan, or upon any other taxable event arising as a result of Awards granted under this Plan.

(b) When a SAR which is the subject of an Award under this Plan is exercised, and payment
upon exercise is made in Shares as permitted in Section 7.5 of this Plan, the number of
Shares with respect to which the SAR is exercised shall be counted against the Shares
reserved under this Plan, regardless of the number of Shares actually issued to settle the
SAR upon exercise.

	4.4	 	Adjustments in Authorized Shares. In the event of any change in corporate capitalization,
such as a stock split, or a corporate transaction, such as any merger, consolidation,
separation, including a spin-off, or other distribution of stock or property of the Company,
any reorganization (whether or not such reorganization comes within the definition of such
term in Code Section 368) or any partial or complete liquidation of the Company, such
adjustment shall be made in the number and class of Shares which may be delivered under
Section 4.1 and as to the number of Shares which may be awarded under the Plan to any Named
Executive Officer during the term of the Plan, and in the number and class of and/or price of
Shares subject to outstanding Awards granted under the Plan, as may be determined to be
appropriate and equitable by the Appropriate Administrator, in its sole discretion, to prevent
dilution or enlargement of rights; provided, however, that the number of Shares subject to any
Award shall always be a whole number.

Article 5. Eligibility and Participation

	5.1	 	Eligibility. Persons eligible to participate in this Plan include all Employees of the
Company (including, but not limited to, Employees who are members of the Board, covered
employees as defined in Section 162(m)(3) of the Code, or any successor provision) and all
Nonemployee Directors of the Company.
	 
	5.2	 	Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to
time, select from all eligible Employees those to whom Awards shall be granted and shall
determine the nature and amount of each Award and the Board may, from time to time, select
from all eligible Nonemployee Directors those to whom Awards shall be granted and shall
determine the nature and amount of each Award.

 

 

Article 6. Stock Options

	6.1	 	Grant of Options. Subject to the terms and provisions of the Plan, the Committee may
grant Incentive Stock Options or Nonqualified Stock Options or both types of Options (but not
in tandem) to Employees and the Board may grant Nonqualified Stock Options to Nonemployee
Directors in such number, and upon such terms, and at any time and from time to time as shall
be determined by the Appropriate Administrator.
	 
	6.2	 	Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall
specify the Option Price, the duration of the Option, the number of Shares to which the Option
pertains, and such other provisions as the Appropriate Administrator shall determine. The
Award Agreement also shall specify whether the Option is intended to be an ISO within the
meaning of Code Section 422, or an NQSO whose grant is intended not to fall under the
provisions of Code Section 422.
	 
	6.3	 	Option Price. The Option Price at which each Option may be exercised shall be no less than
one hundred percent (100%) of the fair market value per share of the Common Stock covered by
the Option on the date of grant, except that in the case of an Incentive Stock Option granted
to an Insider, the option price shall not be less than one hundred ten percent (110%) of such
fair market value on the date of grant. For purposes of this Section 6.3, the fair market
value of the Common Stock shall be as determined in Section 2.15. Notwithstanding the
authority granted to the Committee pursuant to Section 3.2 and the Board pursuant to Section
3.5, once an Option is granted, neither the Committee nor the Board shall have authority to
reduce the Option Price, nor may any Option be surrendered to the Company as consideration for
the grant of a new Option with a lower Option Price without the approval of the Company’s
shareholders, except under Section 4.4.
	 
	6.4	 	Duration of Options. Each Option granted to a Participant shall expire at such time as the
Appropriate Administrator shall determine at the time of grant; provided, however, that no
Option shall be exercisable after the expiration of ten years (five years in the case of an
Incentive Stock Option granted to an Insider) from the date of grant.
	 
	6.5	 	Exercise of Options. Options granted under this Article 6 shall be exercisable at such times
and be subject to such restrictions and conditions as the Appropriate Administrator shall in
each instance approve, which need not be the same for each grant or for each Participant.
Notwithstanding any other provision contained in the Plan or in any Award Agreement referred
to in Section 2.3, but subject to the possible exercise of the Committee’s discretion
contemplated in the last sentence of this paragraph, the aggregate fair market value,
determined as provided in Section 2.15 on the date of grant, of the Shares with respect to
which Incentive Stock Options are exercisable for the first time by an Employee during any
calendar year under all plans of the corporation employing such Employee, any parent or
subsidiary corporation of such corporation and any predecessor corporation of any such
corporation shall not exceed $100,000. If the date on which one or more of such Incentive
Stock Options could first be exercised would be accelerated pursuant to any provision of the
Plan or any Award Agreement, and the acceleration of such exercise date would result in a
violation of the limitation set forth in the preceding sentence, then, notwithstanding any
such provision, but subject to the provisions of the next succeeding sentence, the exercise
dates of such Incentive Stock Options shall be accelerated only to the date or dates, if any,
that do not result in a violation of such limitation and, in such event, the exercise dates of
the Incentive Stock Options with the lowest Option Prices shall be accelerated to the earliest
such dates. The Committee may, in its discretion, authorize the acceleration of the exercise
date of one or more Incentive Stock Options even if such acceleration would violate the
$100,000 limitation

 

 

	 	 	set forth in the first sentence of this paragraph and even if such Incentive Stock Options
are thereby converted in whole or in part to Nonqualified Stock Options.
	 
	6.6	 	Payment. Options granted under this Article 6 shall be exercised by the delivery of a
written notice of exercise to the Company, setting forth the number of Shares with respect to
which the Option is to be exercised, accompanied by full payment for the Shares.
	 
	 	 	The Option Price upon exercise of any Option shall be payable to the Company in full either:
(a) in cash in United States dollars (including check, bank draft or money order), or (b) by
tendering previously acquired Shares having an aggregate Fair Market Value at the time of
exercise equal to the total Option Price, or (c) by a combination of (a) and (b).
	 
	 	 	The Company will also cooperate with any person exercising an Option who participates in a
cashless exercise program of a broker or other agent under which all or part of the Shares
received upon exercise of the Option are sold through the broker or other agent or under
which the broker or other agent makes a loan to such person. Notwithstanding the foregoing,
unless the Appropriate Administrator, in its discretion, shall otherwise determine at the
time of grant in the case of an Incentive Stock Option, or at any time in the case of a
Nonqualified Stock Option, the exercise of the Option shall not be deemed to occur and no
Shares of Common Stock will be issued by the Company upon exercise of the Option until the
Company has received payment of the Option Price in full.
	 
	6.7	 	Restrictions on Share Transferability. The Appropriate Administrator may impose such
restrictions on any Shares acquired pursuant to the exercise of an Option granted under this
Article 6 as it may deem advisable, including, without limitation, restrictions under
applicable Federal securities laws, under the requirements of any stock exchange or market
upon which such Shares are then listed and/or traded, and under any blue sky or state
securities laws applicable to such Shares.
	 
	6.8	 	Termination of Employment. Subject to the provisions of Section 6.5 in the case of Incentive
Stock Options, unless the Committee, in its discretion, shall otherwise determine:

	 	(i)	 	If the employment of an Employee who is not disabled within the meaning
of Section 422(c)(6) of the Code (a “Disabled Grantee”) is voluntarily terminated
with the consent of the Company or an Employee retires under any retirement plan of
the Company, any outstanding Incentive Stock Option held by such Employee shall be
exercisable by the Employee (but only to the extent exercisable by the Employee
immediately prior to the termination of employment) at any time prior to the
expiration date of such Incentive Stock Option or within three months after the date
of termination of employment, whichever is the shorter period;
	 
	 	(ii)	 	If the employment of an Employee who is not a Disabled Grantee is
voluntarily terminated with the consent of the Company or an Employee retires under
any retirement plan of the Company, any outstanding Nonqualified Stock Option held
by such Employee shall be exercisable by the Employee (but only to the extent
exercisable by the Employee immediately prior to the termination of employment) at
any time prior to the expiration date of such Nonqualified Stock Option or within
one year after the date of termination of employment, whichever is the shorter
period;
	 
	 	(iii)	 	If the employment of an Employee who is a Disabled Grantee is
voluntarily terminated with the consent of the Company, any outstanding Option held
by such Employee shall

 

 

	 	 	 	be exercisable by the Employee in full (whether or not so exercisable by the
Employee immediately prior to the termination of employment) at any time prior to
the expiration date of such Option or within one year after the date of termination
of employment, whichever is the shorter period;
	 
	 	(iv)	 	Following the death of an Employee during employment, any outstanding
Option held by the Employee at the time of death shall be exercisable in full
(whether or not so exercisable by the Employee immediately prior to the death of the
Employee) by the person entitled to do so under the Will of the Employee, or, if the
Employee shall fail to make testamentary disposition of the stock option or shall
die intestate, by the legal representative of the Employee at any time prior to the
expiration date of such stock option or within one year after the date of death of
the Employee, whichever is the shorter period;
	 
	 	(v)	 	Following the death of an Employee after termination of employment during
a period when an Option is exercisable, the Option shall be exercisable by such
person entitled to do so under the Will of the Employee by such legal representative
(but only to the extent exercisable by the Employee immediately prior to the
termination of employment) at any time prior to the expiration date of such Option
or within one year after the date of death, whichever is the shorter period;
	 
	 	(vi)	 	Unless the exercise period of a stock option following termination of
employment has been extended as provided in Section 13.1, if the employment of an
Employee terminates for any reason other than voluntary termination with the consent
of the Company, retirement under any retirement plan of the Company or death, all
outstanding Options held by the Employee at the time of such termination of
employment shall automatically terminate; provided, however, that if the employment
of an Employee is involuntarily terminated by the Company without Cause, any Option
held by such Employee at the time of such termination shall be exercisable by the
Employee (but only to the extent exercisable by the Employee immediately prior to
the termination of employment) at any time prior to the expiration date of such
Option or within three months after the date of termination of employment in the
case of an Incentive Stock Option or within one year after the date of termination
of employment in the case of a Nonqualified Stock Option, whichever is the shorter
period. Whether termination of employment is a voluntary termination with the
consent of the Company or an involuntary termination with or without cause shall be
determined, in its discretion, by the Committee and any such determination by the
Committee shall be final and binding.

	6.9	 	Termination of Board Service. Unless the Board, in its discretion, shall otherwise
determine:

	 	(i)	 	If a Nonemployee Director ceases to be a Director of the Company for any
reason other than resignation, removal for cause or death, any then outstanding
stock option held by such Nonemployee Director shall be exercisable by the
Nonemployee Director (but only to the extent exercisable by the Nonemployee Director
immediately prior to ceasing to be a Director) at any time prior to the expiration
date of such stock option or within one year after the date the Nonemployee Director
ceases to be a Director, whichever is the shorter period;
	 
	 	(ii)	 	If during his or her term of office as a Director a Nonemployee Director
resigns from the Board (which shall not include not standing for reelection at the
end of his or her then current term) or is removed from office for cause, any then
outstanding stock option held

 

 

	 	 	 	by such Nonemployee Director shall be exercisable by the Nonemployee Director (but
only to the extent exercisable by the Nonemployee Director immediately prior to
ceasing to be a Director) at any time prior to the expiration date of such stock
option or within 90 days after the date of resignation or removal, whichever is the
shorter period;
	 
	 	(iii)	 	Following the death of a Nonemployee Director during service as a
Director of the Company, any outstanding stock option held by the Nonemployee
Director at the time of death (whether or not exercisable by the Nonemployee
Director immediately prior to death) shall be exercisable by the person entitled to
do so under the Will of the Nonemployee Director, or, if the Nonemployee Director
shall fail to make testamentary disposition of the stock option or shall die
intestate, by the legal representative of the Nonemployee Director, at any time
prior to the expiration date of such stock option or within one year after the date
of death, whichever is the shorter period;
	 
	 	(iv)	 	Following the death of a Nonemployee Director after ceasing to be a
Director, any outstanding stock option held by such Nonemployee Director at the time
of death shall be exercisable (but only to the extent exercisable by the Nonemployee
Director immediately prior to death) by such person entitled to do so under the Will
of the Nonemployee Director or by such legal representative at any time prior to the
expiration date of such stock option or within one year after the date of death,
whichever is the shorter period.
	 
	 	 	 	Interpretation of the foregoing shall be done by the Board and any determination by
the Board shall be final and binding.

	6.10	 	Nontransferability of Options. No Option granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by Will or if the
Participant dies intestate by the laws of descent and distribution of the state of domicile of
the Participant at the time of death. Further, all Options granted to a Participant under the
Plan shall be exercisable during his or her lifetime only by such Participant.

Article 7. Stock Appreciation Rights

	7.1	 	Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to
Employees or Nonemployee Directors at any time and from time to time as shall be determined by
the Appropriate Administrator.
	 
	 	 	The Appropriate Administrator shall have complete discretion in determining the number of
SARs granted to each Participant (subject to Article 4 herein) and, consistent with the
provisions of the Plan, in determining the terms and conditions pertaining to such SARs.
	 
	 	 	The grant price of an SAR shall equal the Fair Market Value of a Share on the date of grant
of the SAR.
	 
	7.2	 	Exercise of SARs. SARs may be exercised upon whatever terms and conditions the Appropriate
Administrator, in its sole discretion, imposes upon them.
	 
	7.3	 	SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify
the grant price, the term of the SAR, and such other provisions as the Appropriate
Administrator shall determine.

 

 

	7.4	 	Term of SARs. The term of an SAR granted under the Plan shall be determined by the
Appropriate Administrator, in its sole discretion; provided, however, that such term shall not
exceed ten (10) years.
	 
	7.5	 	Payment of SAR Amount. Upon exercise of an SAR, a Participant shall be entitled to receive
payment from the Company in an amount determined by multiplying:

(a) The difference between the Fair Market Value of a Share on the date of exercise over
the grant price; by

(b) The number of Shares with respect to which the SAR is exercised.

At the discretion of the Appropriate Administrator, the payment upon SAR exercise may be in
cash, in Shares of equivalent value, or in some combination thereof.

	7.6	 	Rule 16b-3 Requirements. Notwithstanding any other provision of the Plan, the Appropriate
Administrator may impose such conditions on exercise of an SAR as may be required to satisfy
the requirements of Section 16 of the Exchange Act and the regulations promulgated thereunder
(or any successor statute or regulation).
	 
	7.7	 	Termination of Employment. Each SAR Award Agreement shall set forth the extent to which the
Participant shall have the right to exercise the SAR following termination of the
Participant’s employment with the Company and/or its Subsidiaries or the Participant’s
termination of Board Service, as the case may be. Such provisions shall be determined in the
sole discretion of the Appropriate Administrator, shall be included in the Award Agreement
entered into with Participants, need not be uniform among all SARs issued pursuant to the
Plan, and may reflect distinctions based on the reasons for termination of such employment or
service.
	 
	7.8	 	Nontransferability of SARs. No SAR granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or, if the grantee dies
intestate, by the laws of descent and distribution of the state of domicile of the grantee at
the time of death. Further, all SARs granted to a Participant under the Plan shall be
exercisable during his or her lifetime only by such Participant.

Article 8. Restricted Stock

	8.1	 	Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Appropriate
Administrator, at any time and from time to time, may grant Shares of Restricted Stock to
Employees or Nonemployee Directors in such amounts as the Appropriate Administrator shall
determine.

	8.2	 	Restricted Stock Agreement. Each Restricted Stock grant shall be evidenced by a Restricted
Stock Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of
Restricted Stock granted, and such other provisions as the Appropriate Administrator shall
determine.

	8.3	 	Transferability. Except as provided in this Article 8, the Shares of Restricted Stock
granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated until the end of the applicable Period of Restriction established by the
Appropriate Administrator and specified in the Restricted Stock Award Agreement, or upon
earlier satisfaction of any other conditions, as specified by the Appropriate Administrator in
its sole discretion and set forth in the

 

 

	 	 	Restricted Stock Award Agreement. All rights with respect to the Restricted Stock granted to
a Participant under the Plan shall be available during his or her lifetime only to such
Participant.

	8.4	 	Other Restrictions. The Appropriate Administrator shall impose such other conditions and/or
restrictions on any Shares of Restricted Stock granted pursuant to the Plan as it may deem
advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock, restrictions based upon the achievement of
specific performance goals (Company-wide, divisional, and/or individual), time-based
restrictions on vesting following the attainment of the performance goals, and/or restrictions
under applicable Federal or state securities laws. Notwithstanding the foregoing, all grants
of Restricted Stock shall have a Period of Restriction of at least three (3) years, except
that (a) the Period of Restriction for any Award may be shortened pursuant to the Restricted
Stock Award Agreement in connection with death, disability or Retirement or pursuant to
Section 13.1, (b) Awards with restrictions based upon achievement of performance goals shall
have a Period of Restriction of a least one (1) year, and (c) Awards to Nonemployee Directors
shall have a Period of Restriction of at least one (1) year.
	 
	 	 	The Company shall retain the certificates representing Shares of Restricted Stock in the
Company’s possession until such time as all conditions and/or restrictions applicable to
such Shares have been satisfied.
	 
	 	 	Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan shall become freely transferable by the
Participant after the last day of the applicable Period of Restriction.

	8.5	 	Voting Rights. During the Period of Restriction, Participants holding Shares of Restricted
Stock granted hereunder may exercise full voting rights with respect to those Shares.

	8.6	 	Termination of Employment. Each Restricted Stock Award Agreement shall set forth the extent
to which the Participant shall have the right to receive unvested Restricted Shares following
termination of the Participant’s employment with the Company or service on the Board, as the
case may be. Such provisions shall be determined in the sole discretion of the Appropriate
Administrator, shall be included in the Award Agreement entered into with each Participant,
need not be uniform among all Shares of Restricted Stock issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination of such employment or service;
provided, however that, except in the cases of terminations connected with a Change in Control
and terminations by reason of death or disability the vesting of Shares of Restricted Stock
which qualify for the Performance-Based Exception and which are held by Named Executive
Officers shall occur at the time they otherwise would have, but for the employment
termination.

Article 9. Performance Units and Performance Shares

	9.1	 	Grant of Performance Units/Shares. Subject to the terms of the Plan, Performance Units
and/or Performance Shares may be granted to Participants in such amounts and upon such terms,
and at any time and from time to time, as shall be determined by the Appropriate
Administrator.

	9.2	 	Value of Performance Units/Shares. Each Performance Unit shall have an initial value that is
established by the Appropriate Administrator at the time of grant. Each Performance Share
shall have an initial value equal to the Fair Market Value of a Share on the date of grant.
The Appropriate Administrator shall set performance goals in its discretion which, depending
on the extent to which they are met, will determine the number and/or value of Performance

 

 

	 	 	Units/Shares that will be paid out to the Participant. For purposes of this Article 9, the
time period during which the performance goals must be met shall be called a “Performance
Period.”

	9.3	 	Earning of Performance Units/Shares. Subject to the terms of this Plan, after the applicable
Performance Period has ended, the holder of Performance Units/Shares shall be entitled to
receive payout on the number and value of Performance Units/Shares earned by the Participant
over the Performance Period, to be determined as a function of the extent to which the
corresponding performance goals have been achieved.

	9.4	 	Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance
Units/Shares shall be made in a single lump sum within 21/2 months following the close of the
applicable Performance Period. Subject to the terms of this Plan, the Appropriate
Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of
cash or in Shares (or in a combination thereof) which have an aggregate Fair Market Value
equal to the value of the earned Performance Units/Shares at the close of the applicable
Performance Period. Such Shares may be granted subject to any restrictions deemed appropriate
by the Appropriate Administrator.
	 
	 	 	Participants may, at the discretion of the Appropriate Administrator, be entitled to
exercise their voting rights with respect to such Shares.

	9.5	 	Termination of Employment Due to Death, Disability, or Retirement. Unless determined
otherwise by the Appropriate Administrator and set forth in the Participant’s Award Agreement,
in the event the employment or the Board service of a Participant is terminated by reason of
death, disability, or Retirement during a Performance Period, the Participant shall receive a
payout of the Performance Units/Shares which is prorated, as specified by the Appropriate
Administrator in its discretion.
	 
	 	 	Payment of earned Performance Units/Shares shall be made at a time specified by the
Appropriate Administrator in its sole discretion and set forth in the Participant’s Award
Agreement. Notwithstanding the foregoing, with respect to Named Executive Officers who
retire during a Performance Period, payments shall be made at the same time as payments are
made to Participants who did not terminate employment during the applicable Performance
Period.

	9.6	 	Termination of Employment or Board Service for Other Reasons. In the event that a
Participant’s employment or Board service terminates for any reason other than those reasons
set forth in Section 9.5 herein, all Performance Units/Shares shall be forfeited by the
Participant to the Company unless determined otherwise by the Appropriate Administrator, as
set forth in the Participant’s Award Agreement.

	9.7	 	Nontransferability. Performance Units/Shares may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or if the grantee dies
intestate by the laws of descent and distribution of the state of domicile of the grantee at
the time of death. Further, a Participant’s rights under the Plan shall be exercisable during
the Participant’s lifetime only by the Participant or the Participant’s legal representative.

Article 10. Performance Measures

Unless and until the Appropriate Administrator proposes for shareholder vote and shareholders
approve a change in the general performance measures set forth in this Article 10, the attainment
of which may determine the degree of payout and/or vesting with respect to Awards to Named
Executive Officers which

 

 

are designed to qualify for the Performance Based Exception, the performance measure(s) to be used
for purposes of such grants shall be chosen from among the following alternatives:

(a) Revenues of the Company or any specified division;

(b) Percentage increase over a specified period in revenues of the Company or any specified
division;

(c) Expenses or any designated category of expenses of the Company or any specified
division;

(d) Percentage decrease over a specified period in expenses or any designated category of
expenses of the Company or any specified division;

(e) Pretax or after-tax income of the Company or any specified division, or figures derived
from income of the Company or any specified division to account for non-cash charges such as
amortization and depreciation; and

(f) Percentage increase over a specified period in pretax or after-tax income of the
Company or any specified division.

The Appropriate Administrator shall have the discretion to adjust the determinations of the degree
of attainment of the preestablished performance goals; provided, however, that Awards which are
designed to qualify for the Performance Based Exception, and which are held by Named Executive
Officers, may not be adjusted upward (the Committee shall retain the discretion to adjust such
Awards downward).

In the event that applicable tax and/or securities laws change to permit the Appropriate
Administrator discretion to alter the governing performance measures without obtaining shareholder
approval of such changes, the Appropriate Administrator shall have sole discretion to make such
changes without obtaining shareholder approval. In addition, in the event that the Appropriate
Administrator determines that it is advisable to grant Awards, which shall not qualify for the
Performance-Based Exception, the Appropriate Administrator may make such grants without satisfying
the requirements of Code Section 162(m).

Article 11. Beneficiary Designation

Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who
may be named contingently or successively) to whom any benefit under the Plan is to be paid in case
of his or her death before he or she receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Participant, shall be in a form prescribed by the
Company, and will be effective only when filed by the Participant in writing with the Company
during the Participant’s lifetime. In the absence of any such designation, benefits remaining
unpaid at the Participant’s death shall be paid to the Participant’s estate.

 

 

Article 12. Rights of Employees and Nonemployee Directors

	12.1	 	Employment and Board Service. Nothing in the Plan shall interfere with or limit in any way
the right of the Company to terminate any Participant’s employment at any time, nor confer
upon any Participant any right to continue in the employ of the Company, nor shall it confer
any right to a person to continue as a Director of the Company or interfere in any way with
the rights of shareholders of the Company or the Board to elect and remove Directors.

	12.2	 	Participation. No Employee or Nonemployee Director shall have the right to be selected to
receive an Award under this Plan, or, having been so selected, to be selected to receive a
future Award.

Article 13. Change in Control

	13.1	 	Treatment of Outstanding Awards. Upon the occurrence of a Change in Control, unless
otherwise specifically prohibited under applicable laws, or by the rules and regulations of
any governing governmental agencies or national securities exchanges:

(a) Any and all Options and SARs granted hereunder shall become immediately exercisable,
and shall remain exercisable throughout their entire term;

(b) Any restriction periods and restrictions imposed on Restricted Shares shall lapse;

(c) The target payout opportunities attainable under all outstanding Awards of Restricted
Stock, Performance Units and Performance Shares shall be deemed to have been fully earned
for the entire Performance Period(s) as of the effective date of the Change in Control. The
vesting of all Awards denominated in Shares shall be accelerated as of the effective date of
the Change in Control, and there shall be paid out in cash to Participants within thirty
(30) days following the effective date of the Change in Control an amount equal to one
hundred percent (100%) of all targeted cash payout opportunities associated with outstanding
cash-based Awards; and

(d) Subject to Article 14 herein, the Appropriate Administrator shall have the authority
to make any modifications to the Awards as determined by the Appropriate Administrator to be
appropriate before the effective date of the Change in Control.

	13.2	 	Acceleration of Award Vesting. Notwithstanding any provision of this Plan or any Award
Agreement provision to the contrary, the Appropriate Administrator, in its sole and exclusive
discretion, shall have the power at any time to accelerate the vesting of any Award granted
under the Plan to a Participant, including without limitation acceleration to such a date that
would result in said Awards becoming immediately vested, except that the Appropriate
Administrator shall not have the authority to accelerate any Award (a) that would otherwise
qualify for the Performance-Based Exception in any manner that would cause the Award to fail
to qualify as such or (b) in a manner that would conflict with the last sentence of the first
paragraph of Section 8.4.

	13.3	 	Termination, Amendment, and Modifications of Change in Control Provisions. Notwithstanding
any other provision of this Plan or any Award Agreement provision, the provisions of this
Article 13 may not be terminated, amended, or modified on or after the date of a Change in
Control to affect adversely any Award theretofore granted under the Plan without the prior
written consent of the Participant with respect to said Participant’s outstanding Awards;
provided, however, the Board of Directors, upon recommendation of the Committee, may

 

 

	 	 	terminate, amend, or modify this Article 13 at any time and from time to time prior to the
date of a Change in Control.

Article 14. Amendment, Modification, and Termination

	14.1	 	Amendment, Modification, and Termination. The Board or the Committee may terminate the Plan
in whole or in part at any time. The Board or the Committee may alter, amend, suspend or
modify the Plan from time to time in such respects as the Board or the Committee may deem
advisable in order that any Awards shall conform to any change in applicable laws or
regulations or in any other respect the Board or the Committee may deem to be in the best
interests of the Company; provided, however, that no such amendment or modification shall,
without shareholder approval:

(a) Except as provided in Section 4.4, increase the number of Shares which may be issued
under the Plan;

(b) Expand the types of Awards available to Participants under the Plan;

(c) Materially expand the class of persons eligible to participate in the Plan;

(d) Delete or limit the provisions in Section 6.3 prohibiting the repricing of Options or
reduce the price at which Shares may be offered under Options; or

(e) Extend the termination date for making Awards under the Plan.

In addition, the Plan shall not be amended without the approval of such amendment by the
Company’s shareholders if such approval is required under (1) the rules and regulations of
NASDAQ or any stock exchange on which the Shares are then listed, or (2) other applicable
laws, rules, or regulations, including, but not limited to, Rule 16b-3 under the Exchange
Act, including any successor to such Rule.

	14.2	 	Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee may make adjustments in the terms and conditions of, and the criteria included in,
Awards in recognition of unusual or nonrecurring events (including, without limitation, the
events described in Section 4.4 hereof) affecting the Company or the financial statements of
the Company or of changes in applicable laws, regulations, or accounting principles, whenever
the Committee determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the
Plan; provided that no such adjustment shall be authorized to the extent that such authority
would be inconsistent with the Plan’s meeting the requirements of Section 162(m) of the Code,
as from time to time amended.

	14.3	 	Awards Previously Granted. No termination, amendment, or modification of the Plan shall
adversely affect in any material way any Award previously granted under the Plan, without the
written consent of the Participant holding such Award.

	14.4	 	Compliance with Code Section 162(m). At all times when Code Section 162(m) is applicable,
all Awards granted under this Plan shall comply with the requirements of Code Section 162(m);
provided, however, that in the event the Committee determines that such compliance is not
desired with respect to any Award or Awards available for grant under the Plan, then
compliance with Code Section 162(m) will not be required. In addition, in the event that
changes are made to

 

 

	 	 	Code Section 162(m) to permit greater flexibility with respect to any Award or Awards
available under the Plan, the Committee may, subject to this Article 15, make any
adjustments it deems appropriate.

	14.5	 	Code Section 409A Compliance. To the extent applicable, it is intended that this Plan and
any Awards granted hereunder, are excepted from, or otherwise comply with, the requirements of
Section 409A of the Code and any related regulations or other guidance promulgated with
respect to such Section by the U.S. Department of Treasury or the Internal Revenue Service
(“Section 409A”). Any provision that would cause the Plan or any Award granted hereunder to
fail to satisfy Section 409A shall have no force or effect until amended to comply with
Section 409A, which amendment may be retroactive to the extent permitted by Section 409A.
Unless otherwise required by applicable law or listing requirement, such amendment shall not
require the approval of the shareholders.

Article 15. Withholding

	15.1	 	Tax Withholding. The Company shall have the power and the right to deduct or withhold, or
require an Employee to remit to the Company, an amount sufficient to satisfy Federal, state,
and local taxes, domestic or foreign, required by law or regulation to be withheld with
respect to any taxable event arising as a result of this Plan.

	15.2	 	Share Withholding. With respect to withholding required upon the exercise of Options or
SARs, upon the lapse of restrictions on Restricted Stock, or upon any other taxable event
arising as a result of Awards granted hereunder, Employees may elect, subject to the approval
of the Committee, to satisfy the withholding requirement, in whole or in part, by having the
Company withhold Shares having a Fair Market Value on the date the tax is to be determined
equal to the minimum statutory total tax which could be imposed on the action. All such
elections shall be irrevocable, made in writing, signed by the Employee, and shall be subject
to any restrictions or limitations that the Committee, in its sole discretion, deems
appropriate.

Article 16. Indemnification

Each person who is or shall have been a member of the Committee, or of the Board, shall be
indemnified and held harmless by the Company against and from any loss, cost, liability or expense
that may be imposed upon or reasonably incurred by him or her in connection with or resulting from
any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may
be involved by reason of any action taken or failure to act under the Plan and against and from any
and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by
him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or
her, provided he or she shall give the Company an opportunity at its own expense, to handle and
defend the same before he or she undertakes to handle and defend it on his or her own behalf. The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a
matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

Article 17. Successor

All obligations of the Company under the Plan with respect to Awards granted hereunder shall be
binding on any successor to the Company, whether the existence of such successor is the result of a
direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of
the business and/or assets of the Company.

 

 

Article 18. Legal Construction

	18.1	 	Gender and Number. Except where otherwise indicated by the context, any masculine term used
herein also shall include the feminine; the plural shall include the singular and the singular
shall include the plural.

	18.2	 	Severability. In the event any provision of the Plan shall be held illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

Article 19. Requirements of Law.

The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable
laws, rules, and regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.

Article 20. Securities Law Compliance.

With respect to (i) a Director of the Company, (ii) an executive officer of the Company or other
person who is required to file reports pursuant to the rules promulgated under Section 16 of the
Exchange Act and (iii) Insiders, transactions under this Plan are intended to comply with all
applicable conditions or Rule 16b-3 or its successors under the Exchange Act. To the extent any
provision of the Plan or action by the Appropriate Administrator fails to so comply, it shall be
deemed null and void, to the extent permitted by law and deemed advisable by the Appropriate
Administrator.

Article 21. Governing Law.

To the extent not preempted by Federal law, the Plan and all agreements hereunder, shall be
construed in accordance with and governed by the laws of the Commonwealth of Pennsylvania.

* * * * * * * * * * * * * * * * * * *

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