Document:

Filed by Bowne Pure Compliance

Exhibit 10.4

LENNOX INTERNATIONAL INC.

2009 Long-Term Incentive Award Agreement

U.S. Employees — Vice President

THIS AGREEMENT (“Agreement”) is made as of the December 11, 2008 (the “Award Date”), by and
between Lennox International Inc., a Delaware corporation (the “Company”), and «First» «Last»
(“Participant”).

The Company has adopted the 1998 Incentive Plan of Lennox International Inc. (the “Plan”), a
copy of which is attached hereto as Exhibit A and made a part hereof, for the benefit of
eligible employees and directors of the Company and its Subsidiaries. Capitalized terms used and
not otherwise defined herein shall have the meanings set forth in the Plan.

Pursuant to the Plan, the Compensation and Human Resources Committee (the “Committee”), which
has been assigned responsibility for administering the Plan, has determined that it is in the
interest of the Company and its stockholders to make the awards provided herein in order to
encourage Participant to remain in the employ of the Company or its Subsidiaries, to increase
Participant’s personal interest in the continued success and progress of the Company and to foster
and enhance the long-term profitability of the Company for the benefit of its shareholders by
offering the incentive of long-term rewards to be realized only upon attainment of established
goals.

The Company and Participant therefore agree as follows:

1. Grant of Awards. Subject to the terms and conditions herein, the Company grants to the
Participant:

(a) PSU Award — for the period beginning on January 1, 2009 and ending on
December 31, 2011 (the “Performance Period”), an award of «Units» units of Common Stock
(the “PSU Award”);

(b) RSU Award — for the period beginning on December 11, 2008 and ending on
December 11, 2011 (the “Retention Period”), an award of «Units» units of restricted Common
Stock (the “RSU Award”); and

(c) SAR Award — for the period beginning on December 11, 2008 and ending on
December 11, 2015 (the “SAR Period”), the right to the increase (if any) between the actual
selling price of «Units» shares of Common Stock (the “SAR Award”) on the date of exercise
over the “Fair Market Value” of such units on the Award Date. The “Fair Market Value” of the
units on the Award Date is $______ per share.

 

 

 

2. Conditions for Vesting and Exercise.

(a) PSU Award — Fifty percent (50%) of the PSU Award is based upon satisfaction
of a core net income growth rate target (“Net Income”) for the three-year Performance
Period, and fifty percent (50%) of the PSU Award is based upon satisfaction
of a return on invested capital target (“ROIC”) for the three-year Performance Period.
Subject to paragraphs 5 and 6 herein, at the end of the Performance Period, the Company
shall apply the Company’s attained levels of performance to the PSU Award to calculate the
number of whole shares earned by the Participant (the “PSU Earned Awards”). The Committee
shall determine Participant’s total PSU Earned Award for such period by reference to the
following performance matrix:

Performance Share Program — Performance Standards

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold	 	 	Target	 	 	Maximum	 
	Earned Award Payout
	 	50%	 	 	100%	 	 	200%	 
	Net Income - 3 year CAGR
	 	 	 	 	 	 	 	 	 	 	 	 
	ROIC - 3 year weighted average*
	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	*	 	lowest year ROIC weighted 20%, remaining years weighted 40% each

If, at the end of the Performance Period, at least the threshold performance level has
been attained for either or both of the Net Income or ROIC performance measures, the PSU
Earned Award will be vested in accordance with the performance matrix set forth above. To
the extent that each PSU Earned Award payout level attained is less than 100%, the
difference between 100% and each PSU Earned Award distributed, if any, shall be forfeited.

(b) RSU Award — Subject to paragraphs 5 and 6 herein, at the end of the
Retention Period, the RSU Award shall vest and be distributed to the Participant (the “RSU
Earned Awards”).

(c) SAR Award — Subject to paragraphs 5 and 6 herein, the SAR Award may be
exercised only to the extent the SAR Award has become vested in accordance with the
following schedule:

	 	 	 	 	 
	Date	 	Shares Available for Purchase	 
	 
	 	 	 	 
	December 11, 2009
	 	 	33 1/3	%
	December 11, 2010
	 	 	66 2/3	%
	December 11, 2011
	 	 	100	%

To the extent the SAR Award becomes exercisable, such SAR Award may be exercised in
whole or in part (at any time or from time to time, except as otherwise provided herein)
until expiration of the SAR Period.

 

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3. Method and Time of Payment.

(a) PSU Award — PSU Earned Awards shall be paid as soon as practicable
following the end of the Performance Period. PSU Earned Awards shall be paid in the form of
the nearest number of whole shares of Common Stock which is equal to or less than the units
determined by the reference to the matrix specified in paragraph 2(a) above. Subject to the
withholding referred to in paragraph 4 herein, the Company shall deliver to Participant
certificates issued in Participant’s name for the number of shares to be issued to
Participant.

(b) RSU Awards — RSU Earned Awards shall be paid as soon as practicable
following the end of the Retention Period. RSU Earned Awards shall be paid in whole shares
of Common Stock. Subject to the withholding referred to in paragraph 4 herein, the Company
shall deliver to Participant certificates issued in Participant’s name for the number of
 shares to be issued to Participant.

(c) SAR Award — Subject to the withholding referred to in paragraph 4 herein,
the Company shall deliver to Participant certificates issued in Participant’s name for the
number of shares of Common Stock, in the form of the nearest number of whole shares of
Common Stock, which represent the increase (if any) between the actual selling price of the
Common Stock on the date of exercise over the Fair Market Value of the Common Stock on the
Award Date.

4. Withholding for Taxes. Participant acknowledges and agrees that the Company may deduct
from the shares of Common Stock otherwise deliverable in connection with a PSU Earned Award, a RSU
Earned Award, or an exercise of a vested SAR Award, a number of whole shares of Common Stock
(valued at their Fair Market Value on the date of distribution for a PSU Earned Award or a RSU
Earned Award, or at the actual selling price on the date of exercise for a SAR Award) that is at
least equal to the minimum statutory amount of all Federal, state and local taxes required to be
withheld by the Company in connection with such delivery, as determined by the Company.

 

3

 

5. Termination of Employment. Unless otherwise determined by the Committee in its sole
discretion, a PSU Award, a RSU Award or a SAR Award shall terminate at the times specified below:

(a) If Participant terminates employment with the Company and its Subsidiaries
voluntarily or is terminated by the Company or a Subsidiary for Cause (as defined in
any applicable employment agreement between the Company or Subsidiary and the
Participant or as determined by the Committee in its sole discretion in the absence
of any such employment agreement), then any PSU Award, RSU Award or SAR Award shall
terminate immediately and all units subject to such award shall be forfeited
immediately upon such termination of Participant’s employment.

(b) If Participant’s employment with the Company and its Subsidiaries is
terminated by the Company or a Subsidiary not for Cause, (i) any unearned or
unvested PSU Awards or RSU Awards shall terminate immediately and all unearned or
unvested units subject to such award shall be canceled immediately upon such
termination of Participant’s employment, and (ii) any SAR Award, to the extent
vested and exercisable, shall continue to be exercisable for a period not to exceed
90 days following Participant’s termination of employment, but to the extent not
vested and exercisable on the date of Participant’s termination from employment,
shall terminate immediately and all unvested units subject to such award shall be
forfeited immediately upon such termination of Participant’s employment.

(c) If Participant’s employment with the Company and its Subsidiaries is
terminated by the Company or a Subsidiary for any reason within one year following a
Change of Control (as defined in paragraph 17 herein), any SAR Award, to the extent
vested and exercisable, shall continue to exercisable for a period not to exceed 90
days following Participant’s termination of employment.

(d) If Participant’s employment with the Company and its Subsidiaries is
terminated by reason of Participant’s retirement under an employee pension benefit
plan maintained by the Company or a Subsidiary, Participant shall receive (i) a
prorata amount of Participant’s PSU Earned Award, based upon the portion of the
Performance Period the Participant actually served as an employee of the Company or
a Subsidiary determined as of the date of retirement, only to the extent the minimum
performance level of the Company has been attained in accordance with paragraph 2(a)
above, and the remaining amount of the PSU Award shall be forfeited; (ii) a prorata
amount of Participant’s RSU Award, based upon the portion of the Retention Period
the Participant actually served as an employee of the Company or a Subsidiary
determined as of the date of retirement, and the remaining amount of the RSU Award
shall be forfeited; and (iii) to the extent then vested and exercisable, the SAR
Award shall continue to be vested and exercisable for the remainder of the SAR
Period, and the remaining unvested and unexercisable portion of the SAR Award shall
be forfeited. In the case of a PSU Award or a RSU Award, the prorata amount shall
be payable as soon as practicable after the end of the Performance Period or the
Retention Period, as applicable.

(e) If Participant’s employment with the Company and its Subsidiaries is
terminated by reason of Participant’s death or Disability (as defined in paragraph
17 herein), Participant, or in the event of Participant’s death, Participant’s
beneficiary, shall receive (i) a prorata amount of Participant’s PSU Award, based
upon the Company’s attainment of its performance goals (as determined in the sole
discretion of the Committee), determined as of the date of death or Disability), and
the remaining amount of the PSU Award shall be forfeited; (ii) a prorata amount of
Participant’s RSU Award, based upon the portion of the Retention Period the
Participant actually served as an employee of
the Company or a Subsidiary determined as of the date of death or Disability,
and the remaining amount of the RSU Award shall be forfeited; and (iii) to the
extent then unvested, the SAR Award shall become fully vested and exercisable and
shall continue to be exercisable for the remainder of the SAR Period. In the case
of a PSU Award or a RSU Award, the prorata amount shall be payable as soon as
practicable.

 

4

 

6. Change of Control. Notwithstanding any other provision contained in this Agreement, upon
the occurrence of a Change of Control, PSU Awards and RSU Awards shall become fully vested and be
distributed to the Participant, and SAR Awards shall become fully vested and exercisable by the
Participant.

7. Nontransferability of Award. During Participant’s lifetime, a PSU Award, a RSU Award and a
SAR Award are not transferable (voluntarily or involuntarily) other than pursuant to a domestic
relations order and, except as otherwise required pursuant to a domestic relations order, are
payable only to Participant or Participant’s court appointed legal representative. Participant may
designate a beneficiary or beneficiaries to whom the benefits of the PSU Award, RSU Award or SAR
Award shall pass upon Participant’s death and may change such designation from time to time by
filing a written designation of beneficiary or beneficiaries with the Company or its designee,
provided that no such designation shall be effective unless so filed prior to the death of
Participant. If no such designation is made or if the designated beneficiary does not survive
Participant’s death, the benefits of the PSU Award, RSU Award or SAR Award shall pass by will or
the laws of descent and distribution.

8. No Stockholder Rights. Participant shall not be deemed for any purpose, including voting
rights and dividends, to be, or to have any of the rights of, a stockholder of the Company with
respect to any shares or units of Common Stock as to which this Agreement relates until such shares
shall have been issued to Participant by the Company. Furthermore, the existence of this Agreement
shall not affect in any way the right or power of the Company or its stockholders to accomplish any
corporate act, including, without limitation, the acts referred to in Section 15 of the Plan.

9. Adjustments. As provided in Section 13 of the Plan, certain adjustments may be made to
shares of Common Stock upon the occurrence of events or circumstances described in Section 13 of
the Plan.

10. Restrictions Imposed by Law. Without limiting the generality of Section 16 of the Plan,
Participant agrees that the Company will not be obligated to deliver any shares of Common Stock, if
counsel to the Company determines that such delivery would violate any applicable law or any rule
or regulation of any governmental authority or any rule or regulation of, or agreement of the
Company with, any securities exchange or association upon which the Common Stock may be listed or
quoted. The Company shall in no event be obligated to take any affirmative action in order to
cause the delivery of shares of Common Stock to comply with any such law, rule, regulation or
agreement.

 

5

 

11. Notice. Unless the Company notifies Participant in writing of a different procedure, any
notice or other communication to the Company with respect to this Agreement shall be in writing and
shall be (a) delivered personally to the following address:

Lennox International Inc.

c/o Corporate Secretary

2140 Lake Park Boulevard

Richardson, Texas 75080

or (b) sent by first class mail, postage prepaid and addressed as follows:

Lennox International Inc.

c/o Corporate Secretary

2140 Lake Park Boulevard

Richardson, Texas 75080

Any notice or other communication to Participant with respect to this Agreement shall be in writing
and shall be delivered personally, or shall be sent by first class mail, postage prepaid, to
Participant’s address as listed in the records of the Company on the Award Date, unless the Company
has received written notification from Participant of a change of address.

12. Amendment. Notwithstanding any other provisions hereof, this Agreement may be
supplemented or amended from time to time as approved by the Committee as contemplated by Section 6
of the Plan. Without limiting the generality of the foregoing, without the consent of Participant:

(a) this Agreement may be amended or supplemented (i) to cure any ambiguity or
to correct or supplement any provision herein which may be defective or inconsistent
with any other provision herein, or (ii) to add to the covenants and agreements of
the Company for the benefit of Participant or surrender any right or power reserved
to or conferred upon the Company in this Agreement; subject, however, to any
required approval of the Company’s stockholders and, provided, in each case, that
such changes or corrections shall not adversely affect the rights of Participant
with respect to the PSU Award, RSU Award or SAR Award evidenced hereby without the
Participant’s consent, (iii) to make changes to the number of shares of Common Stock
subject to Participant’s PSU Award, RSU Award or SAR Award or to change the
performance standards of paragraph 2(a) above, as equitably determined by the
Committee to reflect adjustment required by the effect of a major corporate event
such as the acquisition or disposition of a Subsidiary or major business activity or
substantial operating assets, or a “going public” event; or (iv) to make such other
changes as the Company, upon advice of counsel, determines are necessary or
advisable because of the adoption or promulgation of, or change in or to the
interpretation of, any law or governmental rule or regulation, including any
applicable Federal or state securities laws; and

(b) subject to Section 6 of the Plan and any required approval of the Company’s
stockholders, the PSU Award, RSU Award or SAR Award evidenced by this Agreement may
be canceled by the Committee and a new PSU Award, RSU Award or SAR Award made in
substitution therefore, provided that the PSU Award, RSU Award or SAR Award so
substituted shall satisfy all requirements of the Plan as of the date such new PSU
Award, RSU Award or SAR Award is made and no such action shall adversely affect an
PSU Award, RSU Award or SAR Award without Participant’s consent.

 

6

 

13. Participant Employment. Nothing contained in this Agreement, and no action of the Company
or the Committee with respect hereto, shall confer or be construed to confer on Participant any
right to continue in the employ of the Company or any of its Subsidiaries or interfere in any way
with the right of the Company or any employing Subsidiary to terminate Participant’s employment at
any time, with or without cause; subject, however, to the provisions of any employment agreement
between Participant and the Company or any Subsidiary.

14. Governing Law. This Agreement shall be governed by, and construed in accordance with, the
internal laws of the State of Delaware.

15. Construction. References in this Agreement to “this Agreement” and the words “herein,”
“hereof,” “hereunder” and similar terms include all Exhibits and Schedules appended hereto,
including the Plan. This Agreement is entered into, and the PSU Award, RSU Award and SAR Award
evidenced hereby is granted, pursuant to the Plan and shall be governed by and construed in
accordance with the Plan and the administrative interpretations adopted by the Committee
thereunder. All decisions of the Committee upon questions regarding the Plan or this Agreement
shall be conclusive. Unless otherwise expressly stated herein, in the event of any inconsistency
between the terms of the Plan and this Agreement, the terms of the Plan shall control. The
headings of the paragraphs of this Agreement have been included for convenience of reference only,
are not to be considered a part hereof and shall in no way modify or restrict any of the terms or
provisions hereof.

16. Rules by Committee. The rights of Participant and obligations of the Company hereunder
shall be subject to such reasonable rules and regulations as the Committee may adopt from time to
time hereafter.

17. Definitions. As used in this Agreement, the terms set forth below shall have the
following respective meanings:

(a) “Beneficial Owner” shall mean, with reference to any securities, any Person if:

(i) such Person is the “beneficial owner” (as determined pursuant to Rule 13d-3 of the
General Rules and Regulations under the Exchange Act, as in effect on the date of this
Agreement) of such securities; provided, however, that a Person shall not be deemed the
“Beneficial Owner” of, or to “beneficially own,” any security under this subsection (i) as a
result of an agreement, arrangement or understanding to vote such security if such
agreement, arrangement or understanding: (x) arises solely from a
revocable proxy or consent given in response to a public (i.e., not including a
solicitation exempted by Rule 14a-2(b)(2) of the General Rules and Regulations under the
Exchange Act) proxy or consent solicitation made pursuant to, and in accordance with, the
applicable provisions of the General Rules and Regulations under the Exchange Act and (y) is
not then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable
or successor report); or

(ii) such Person is a member of a group (as that term is used in Rule 13d-5(b) of the
General Rules and Regulations under the Exchange Act) that includes any other Person (other
than an Exempt Person) that beneficially owns such securities;

 

7

 

provided, however, that nothing in this definition shall cause a Person engaged in business as an
underwriter of securities to be the Beneficial Owner of, or to “beneficially own,” any securities
acquired through such Person’s participation in good faith in a firm commitment underwriting until
the expiration of forty (40) days after the date of such acquisition. For purposes hereof,
“voting” a security shall include voting, granting a proxy, consenting or making a request or
demand relating to corporate action (including, without limitation, a demand for a stockholder
list, to call a stockholder meeting or to inspect corporate books and records) or otherwise giving
an authorization (within the meaning of Section 14(a) of the Exchange Act) in respect of such
security.

(b) “Change in Control” shall be deemed to have occurred if the event set forth in any one of
the following paragraphs shall have occurred:

(i) Any Person (other than an Exempt Person) shall become the Beneficial Owner of 35%
or more of the shares of Common Stock then outstanding or 35% or more of the combined voting
power of the Voting Stock of the Company then outstanding; provided, however, that no Change
in Control shall be deemed to occur for purposes of this subsection (i) if such Person shall
become a Beneficial Owner of 35% or more of the shares of Common Stock or 35% or more of the
combined voting power of the Voting Stock of the Company solely as a result of (x) an Exempt
Transaction or (y) an acquisition by a Person pursuant to a reorganization, merger or
consolidation, if, following such reorganization, merger or consolidation, the conditions
described in clauses (x), (y) and (z) of subsection (iii) of this definition are satisfied;

(ii) Individuals who, as of the Effective Date, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the Effective Date whose
election, or nomination for election by the Company’s shareholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board; provided,
further, that there shall be excluded, for this purpose, any such individual whose initial
assumption of office occurs as a result of any election contest with respect to the election
or removal of directors or other solicitation of proxies or consents by or on behalf of a
person other than the Board;

 

8

 

(iii) Approval by the shareholders of the Company of a reorganization, merger or
consolidation, in each case, unless, following such reorganization, merger or consolidation,
(x) more than 65% of the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger or consolidation and the combined voting power of
the then outstanding Voting Stock of such corporation is beneficially owned, directly or
indirectly, by all or substantially all of the Persons who were the Beneficial Owners of the
outstanding Common Stock immediately prior to such reorganization, merger or consolidation
(ignoring, for purposes of this clause (x), the first proviso in subsection (i) of the
definition of “Beneficial Owner” set forth above) in substantially the same proportions as
their ownership immediately prior to such reorganization, merger or consolidation of the
outstanding Common Stock, (y) no Person (excluding any Exempt Person or any Person
beneficially owning, immediately prior to such reorganization, merger or consolidation,
directly or indirectly, 35% or more of the Common Stock then outstanding or 35% or more of
the combined voting power of the Voting Stock of the Company then outstanding) beneficially
owns, directly or indirectly, 35% or more of the then outstanding shares of common stock of
the corporation resulting from such reorganization, merger or consolidation or the combined
voting power of the then outstanding Voting Stock of such corporation and (z) at least a
majority of the members of the board of directors of the corporation resulting from such
reorganization, merger or consolidation were members of the Incumbent Board at the time of
the execution of the initial agreement or initial action by the Board providing for such
reorganization, merger or consolidation; or

(iv) Approval by the shareholders of the Company of (x) a complete liquidation or
dissolution of the Company, unless such liquidation or dissolution is approved as part of a
plan of liquidation and dissolution involving a sale or disposition of all or substantially
all of the assets of the Company to a corporation with respect to which, following such sale
or other disposition, all of the requirements of clauses (y)(A), (B) and (C) of this
subsection (iv) are satisfied, or (y) the sale or other disposition of all or substantially
all of the assets of the Company, other than to a corporation, with respect to which,
following such sale or other disposition, (A) more than 65% of the then outstanding shares
of common stock of such corporation and the combined voting power of the Voting Stock of
such corporation is then beneficially owned, directly or indirectly, by all or substantially
all of the Persons who were the Beneficial Owners of the outstanding Common Stock
immediately prior to such sale or other disposition (ignoring, for purposes of this clause
(y)(A), the first proviso in subsection (i) of the definition of “Beneficial Owner” set
forth above) in substantially the same proportions as their ownership, immediately prior to
such sale or other disposition, of the outstanding Common Stock, (B) no Person (excluding
any Exempt Person and any Person beneficially owning, immediately prior to such sale or
other disposition, directly or indirectly, 35% or more of the Common Stock then outstanding
or 35% or more of the combined voting power of the Voting Stock of the Company then
outstanding) beneficially owns, directly or indirectly, 35% or more of the then outstanding
 shares of common stock of such corporation and the combined voting power of the then
outstanding Voting Stock of such corporation and (C) at least a majority of the members of
the board of directors of such corporation were members of the Incumbent Board at
the time of the execution of the initial agreement or initial action of the Board
providing for such sale or other disposition of assets of the Company.

 

9

 

(c) “Common Stock” shall mean the common stock, par value $.01 per share, of the Company.

(d) “Disability” shall mean permanently disabled (completely unable to perform Participant’s
duties as defined in the benefit plans of the Company).

(e) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

(f) “Exempt Person” shall mean the Company, any subsidiary of the Company, any employee
benefit plan of the Company or any subsidiary of the Company, and any Person organized, appointed
or established by the Company for or pursuant to the terms of any such plan.

(g) “Exempt Transaction” shall mean an increase in the percentage of the outstanding shares of
Common Stock or the percentage of the combined voting power of the outstanding Voting Stock of the
Company beneficially owned by any Person solely as a result of a reduction in the number of shares
of Common Stock then outstanding due to the repurchase of Common Stock by the Company, unless and
until such time as such Person shall purchase or otherwise become the Beneficial Owner of
additional shares of Common Stock constituting 3% or more of the then outstanding shares of Common
Stock or additional Voting Stock representing 3% or more of the combined voting power of the then
outstanding Voting Stock.

(h) “Fair Market Value” means the fair market value of a share of Common Stock as most
recently fixed and determined (prior to the date of the event giving rise to the use and
application of such term) as follows: (i) if shares of Common Stock are listed on a national
securities exchange, the mean between the highest and lowest sales price per share of Common Stock
on the consolidated transaction reporting system for the principal national securities exchange on
which shares of Common Stock are listed on that date, or, if there shall have been no such sale so
reported on that date, on the last preceding date on which such a sale was so reported, (ii) if
shares of Common Stock are not so listed but are quoted on the Nasdaq National Market, the mean
between the highest and lowest sales price per share of Common Stock reported by the Nasdaq
National Market on that date, on the last preceding date on which such a sale was so reported,
(iii) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked
price on that date, or, if there are no quotations available for such date, on the last preceding
date on which such quotations shall be available, as reported by the Nasdaq Stock market, or, if
not reported by the Nasdaq Stock Market, by the National Quotation Bureau Incorporated.

(i) “Person” shall mean any individual, firm, corporation, partnership, association, trust,
unincorporated organization or other entity.

 

10

 

(k) “Subsidiary” mean, with respect to any Person, (i) a corporation a majority of whose
Voting Stock is at the time, directly or indirectly, owned by such Person, by one or more
Subsidiaries of such Person or by such Person and one or more Subsidiaries thereof or (ii) any
other Person (other than a corporation), including, without limitation, a joint venture, in which
such Person, one or more Subsidiaries thereof or such Person and one or more Subsidiaries thereof,
directly or indirectly, at the date of determination thereof, have at least majority ownership
interest entitled to vote in the election of directors, managers or trustees thereof (or other
Persons performing similar functions).

(l) “Voting Stock” shall mean, with respect to a corporation, all securities of such
corporation of any class or series that are entitled to vote generally in the election of directors
of such corporation (excluding any class or series that would be entitled so to vote by reason of
the occurrence of any contingency, so long as such contingency has not occurred).

18. Entire Agreement. Subject to the provisions of any applicable written employment
agreement between Participant and the Company or any Subsidiary, Participant and the Company hereby
declare and represent that no promise or agreement not herein expressed has been made and that this
Agreement contains the entire agreement between the parties hereto with respect to the PSU Award,
the RSU Award and the SAR Award and replaces and makes null and void any prior agreements, oral or
written, between Participant and the Company regarding the PSU Award, the RSU Award and the SAR
Award.

19. Participant Acceptance. Participant shall signify acceptance of the terms and conditions
of this Agreement by electronic signature or by signing in the space provided at the end hereof and
returning a signed copy to the Company.

	 	 	 	 	 	 	 
	 	 	LENNOX INTERNATIONAL INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ACCEPTED:	 	 
	 
	 	 	 	 	 	 
	 

	 	Signed:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	«First» «Last»	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	«Date»	 	 

 

11Filed by Bowne Pure Compliance

Exhibit 10.1

MEMBERSHIP INTEREST PURCHASE AGREEMENT

BY AND AMONG

RURAL HOSPITAL ACQUISITION, LLC,

AS THE BUYER

AND

CAROL SCHUSTER,

AS THE SELLER

AND

TRI-ISTHMUS GROUP, INC

SURGICAL CENTER ACQUISITION HOLDING, INC

RHA TISHOMINGO, LLC

RHA STROUD, LLC

RHA ANADARKO, LLC

MICHAEL SCHUSTER

AS THE ADDITIONAL PARTIES

 

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I PURCHASE, SALE AND TRANSFER OF UNITS
	 	 	2	 
	 
	 	 	 	 
	1.1 Purchase, Sale and Transfer of the Schuster Units
	 	 	2	 
	1.2 Consideration
	 	 	2	 
	1.3 Closing
	 	 	2	 
	1.4 Closing Deliveries
	 	 	3	 
	1.5 Further Assurances
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE SELLER
	 	 	4	 
	 
	 	 	 	 
	2.1 Authority
	 	 	4	 
	2.2 Title to Schuster Units
	 	 	4	 
	2.3 No Violation
	 	 	4	 
	2.4 Governmental Authorizations
	 	 	5	 
	2.5 Full Disclosure
	 	 	5	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE BUYER
	 	 	5	 
	 
	 	 	 	 
	3.1 Organization
	 	 	5	 
	3.2 Authority
	 	 	5	 
	3.3 No Violation
	 	 	6	 
	3.4 Governmental Authorizations
	 	 	6	 
	3.5 Full Disclosure
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV COVENANTS AND AGREEMENTS
	 	 	6	 
	 
	 	 	 	 
	4.1 Release of Claims
	 	 	6	 
	4.2 Termination of Certain Provisions of the 2007 Purchase Agreement
	 	 	6	 
	4.3 Lock-Up
	 	 	7	 
	4.4 Publicity
	 	 	7	 
	4.5 Transaction Costs
	 	 	7	 
	 
	 	 	 	 
	ARTICLE V MISCELLANEOUS
	 	 	8	 
	 
	 	 	 	 
	5.1 Notices
	 	 	8	 
	5.2 Attorneys’ Fees and Costs
	 	 	8	 
	5.3 Brokers
	 	 	8	 
	5.4 Severability
	 	 	8	 
	5.5 Counterparts
	 	 	8	 

 

- i -

 

	 	 	 	 	 
	 	 	Page	 
	 
	5.6 Interpretation
	 	 	8	 
	5.7 Assignment
	 	 	8	 
	5.8 Entire Agreement, Amendment
	 	 	9	 
	5.9 Specific Performance, Remedies Not Exclusive
	 	 	9	 
	5.10 GOVERNING LAW
	 	 	9	 
	5.11 Submission to Jurisdiction
	 	 	9	 
	5.12 Drafting
	 	 	10	 
	5.13 Usage
	 	 	10	 
	5.14 Survival
	 	 	10	 
	5.15 Certain Definitions
	 	 	10	 

Exhibits:

	 	 	 
	Exhibit A

	 	Note
	Exhibit B

	 	Guaranty
	Exhibit C

	 	Assignment of Membership Interest

 

- ii -

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

This Membership Interest Purchase Agreement (this “Agreement”) is made and entered
into as of December 11, 2008 (the “Closing Date”), by and between Rural Hospital
Acquisition, LLC., an Oklahoma Limited Liability Company (“Buyer”), and Carol Schuster, an
individual residing in Oklahoma (“Seller”). Tri-Isthmus Group, Inc., a Delaware
Corporation (“TIGroup”) Surgical Center Acquisition Holdings, Inc., a Nevada Corporation,
(“SCAH”) and RHA Tishomingo, an Oklahoma Limited Liability Company, (“RHA
Tishomingo”), RHA Stroud, an Oklahoma Limited Liability Company, (“RHA Stroud”), and
RHA Anadarko, an Oklahoma Limited Liability Company, (“RHA Anadarko”) and Mike Schuster all
join this Agreement for the limited purposes set forth herein. RHA Tishomingo, RHA Stroud, and RHA
Anadarko are sometimes referred to as the “Hospitals”. Buyer, TIGroup, SCAH, Hospitals,
and Seller, are each individually referred to herein from time to time as a “Party,” and
collectively as the “Parties.”

RECITALS

WHEREAS, Seller owns 49% of the total issued and outstanding voting membership units of Buyer
(the “Units”).

WHEREAS, Buyer wishes to purchase all of Units of Buyer owned by Seller.

WHEREAS, Upon completion of the transfer of the Units from Buyer to Seller, SCAH will become
the sole member of Buyer, which is the sole member of the Hospitals. As such, SCAH is benefiting
from the terms of this Agreement and executes this Agreement for the purposes set forth in
Section 4.

WHEREAS, TIGroup is the sole shareholder of SCAH and will benefit from the terms of this
Agreement. Upon completion of the transaction, TIGroup will have an indirect ownership interest in
those entities wholly-owned by SCAH. As such, TIGroup is guarantying all of the payments and the
promissory note described in Section 1.2 and also executes this agreement for the purposes
set forth in Section 4.

WHEREAS, Michael Schuster will receive substantial direct and indirect benefits from the
transactions contemplated by this Agreement, and the Buyer has required that Michael Schuster enter
into this Agreement as a condition to the Buyer’s execution hereof. As such, Michael Schuster is
benefiting from the terms of this Agreement and executes this Agreement for the purposes set forth
in Section 4.

 

1

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual representations,
warranties, covenants and agreements set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

ARTICLE I

PURCHASE, SALE AND TRANSFER OF UNITS

1.1 Purchase, Sale and Transfer of the Schuster Units.

Pursuant to the terms and subject to the conditions set forth herein, Seller will sell 490,000
Units to Buyer, which constitute all of the Units owned by Seller (the “Schuster Units”),
for the consideration set forth in Section 1.2.

1.2 Consideration.

As consideration in full for the sale and purchase of the Schuster Units, Buyer shall pay to
Seller the sum of One Million Eight Hundred Thousand Dollars ($1,800,000.00) as follows:

(a) Cash in the amount of Three Hundred Thousand Dollars ($300,000.00) payable in six
(6) equal monthly installments of Fifty Thousand Dollars ($50,000) each, with the first
installment due on the Closing Date and subsequent installments due on the first day of each
of the next five (5) calendar months (the “Monthly Cash Payments”). TIGroup
absolutely and unconditionally guarantees the due and punctual payment of all amounts owed
by Buyer to Seller under this section. In the event that Buyer fails to make a Monthly Cash
Payment within fifteen (15) business days of its respective due date, TIGroup shall be
obligated to pay Seller the full amount of the unpaid Monthly Cash Payment plus a default
rate of interest at a rate of 12% per annum. In addition to the remedy set forth above, in
the event of a failure of Buyer to timely pay Seller on any Monthly Cash Payment prior to
the expiration of the fifteen (15) business day grace period set forth in the preceding
sentence, Seller can accelerate all Monthly Cash Payments to cause them to be immediately
due and payable by both Buyer and/or TIGroup without further notice or demand. Both Buyer
and TIGroup shall pay Seller’s reasonable attorney fees relating to any action to collect
payment from Buyer or TIGroup under this section.

(b) A promissory note in the original principal amount of One Million Five Hundred
Thousand Dollars ($1,500,000.00) substantially in the form attached hereto as
Exhibit A (the “Note”). RHA’s payments under the Note will be guaranteed by
TIGroup pursuant to a guaranty substantially in the form attached hereto as
Exhibit B. In the event that TIGroup receives aggregate net proceeds in excess of
$8,000,000 from [certain securities offerings] [*], the payments under the Note will be accelerated and the
principal amount still owing, together with accrued but unpaid interest will become due and
payable on the thirtieth (30th) day following the date on which the aggregate net
proceeds received by TIGroup [*] exceed $8,000,000.

1.3 Closing. The consummation of the sale and purchase of the Schuster Units (the
“Closing”) shall take place at the offices of Day, Edwards, Propester & Christensen, P.C.,
2900 Oklahoma Tower, 210 Park Avenue, Oklahoma City, Oklahoma 73102, or via Federal Express and
facsimile, as agreed by the Buyer and Sellers, at 2 p.m. local time on the Closing Date,
provided that all of the deliveries in Section 1.4 have been made or waived by the
parties to whom such delivery is required.

 

2

 

1.4 Closing Deliveries. At the Closing:

(a) Seller will transfer the Schuster Units to Buyer, and deliver to Buyer certificates
or other documentation representing the Schuster Units and any other documents that are
necessary to transfer to Buyer good title to the Schuster Units, including, without
limitation, an Assignment of Membership Interest substantially in the form of
Exhibit C attached hereto (the “Assignment of Membership Interest”);

(b) Seller shall deliver the resignations of Seller and Michael Schuster from any and
all officer and manager positions occupied by either of them at Buyer and its Affiliates
effective as of the Closing Date;

(c) Buyer will pay the first Monthly Cash Payment to Seller by wire transfer or
delivery of other immediately available funds;

(d) Buyer will deliver the Note to Seller;

(e) Buyer shall deliver a document that reflects the transfer of Mike Schuster’s
employment contract from RHA to TIGroup or one of its Affiliates; and

(f) TIGroup shall deliver the guaranty to Seller of the Note and a corporate resolution
evidencing that TIGroup has the power and authority to enter into all agreements
contemplated herein.

1.5 Further Assurances. At or after the Closing, and without further consideration,
the Seller will execute and deliver to Buyer, such further instruments of conveyance and transfer
as Buyer may reasonably request in order more effectively to convey and transfer the Schuster Units
to Buyer. The Parties agree to cooperate reasonably with each other and with their respective
representatives in connection with any steps required to be taken as part of their respective
obligations under this Agreement before and after the Closing, and shall (a) furnish upon request
to each other such further information; (b) execute and deliver to each other such other documents;
and (c) do such other acts and things, all as any other Party may reasonably request for the
purpose of carrying out the intent of this Agreement and the transactions contemplated hereby.

 

3

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE SELLER

As a material inducement to the Buyer to enter into this Agreement and consummate the
transactions contemplated hereby, the Seller, represents and warrants to the Buyer that the
statements contained in this Article II are true and correct as of the Closing Date to the
best of her knowledge, except as set forth on Seller’s Disclosure Schedule attached to this
Agreement and corresponding in number with the applicable section of this Agreement, and shall
survive the Closing and continue in full force and until the fourth anniversary of the Closing
Date.

2.1 Authority. Seller, has all requisite power, authority and capacity, corporate,
individual or otherwise, to execute, deliver and perform under this Agreement and the other
agreements, certificates and instruments to be executed by Seller in connection with or pursuant to
this Agreement (collectively, the “Seller Documents”). The execution, delivery and
performance by the Seller of each Seller Document to which Seller is a party has been duly
authorized by all necessary action, corporate or otherwise, on the part of the applicable Person.
This Agreement and the Seller Documents have been duly executed and delivered by Seller. This
Agreement and each of the other Seller Documents are the legal, valid and binding agreement of
Seller, enforceable against Seller in accordance with its terms, except as such enforceability may
be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting
the enforcement of creditors’ rights generally and subject to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).

2.2 Title to Schuster Units. Seller owns of record and beneficially the Schuster
Units, free and clear of any obligation, lien, claim, pledge, security interest, liability, charge,
contingency or other encumbrance or claim of any nature other than what is on the unit certificate
representing the Schuster Units or in Buyer’s operating agreement (a “Lien”). Upon sale of
the Schuster Units and delivery of certificates or other documentation evidencing such Units (or
other transfer documents included in the Seller Documents) therefor to the Buyer hereunder, Buyer
will acquire the entire legal and beneficial interests in the Schuster Units, free and clear of any
Lien and subject to no legal or equitable restrictions of any kind, except as provided in the
Amended and Restated Operating Agreement of Buyer.

2.3 No Violation. Neither the execution or delivery of the Seller Documents nor the
consummation of the transactions contemplated thereby, including without limitation the issuance or
sale of the Purchased Units to the Buyer, will, to the Knowledge of Seller, conflict with or result
in the breach of any term or provision of, require any consent, approval, ratification, waiver,
notification, license, permit, order or other authorization (including any Governmental
Authorization (as defined in Section 2.4)) (collectively, “Consents”) or violate or
constitute a default under (or an event that with notice or the lapse of time or both would
constitute a breach or default), any third party the right to terminate or accelerate any
obligation under, any charter provision, bylaw, provision of the Amended and Restated Operating
Agreement, Amended and Articles of Organization, material contract, license or Law to which Seller
is a party or by which any assets of Buyer is in any way bound or obligated.

 

4

 

2.4 Governmental Authorizations. To the knowledge of Seller, no Consent, franchise,
grant, identification or registration number, easement, variance, exemption or certificate issued,
granted, given or otherwise made available by or under the authority of, or registration,
qualification, designation, declaration or filing with, any nation, state, county, city, town,
village, district or other jurisdiction of any nature; federal, state, local, municipal, foreign or
other government; governmental or quasi-governmental agency, authority, commission, board or other
body of any nature (including any governmental branch, department, official or entity and any court
or other tribunal); multi-national organization or body; or body exercising, or entitled to
exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing
authority or power of any nature (collectively, each a “Governmental Entity”), or required
pursuant to any applicable Laws (collectively, each a “Governmental Authorization”), is
required on the part of the Seller in connection with the sale and purchase of the Schuster Units
or any of the other transactions contemplated by this Agreement, except for Governmental
Authorizations required to be obtained from state and federal Governmental Entities in connection
with Buyer’s acquisition of the Schuster Units, including, without limitation, the Oklahoma
Department of Health and the Centers for Medicare & Medicaid Services (“CMS”).

2.5 Full Disclosure. No representation or warranty of the Seller contained in this
Agreement, and nothing set forth herein or in the exhibits attached hereto, or in any document
furnished or to be furnished to the Buyer at the Closing, or in any other information or materials
delivered by the Seller (when read together), contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements contained herein or
therein not misleading in light of the circumstances under which they were made. The Seller has
disclosed to the Buyer all facts and information material to the proposed purchase of the Schuster
Units that are known to Seller.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE BUYER

The Buyer represents and warrants to the Seller that the statements contained in this
Article III (as supplemented by the Buyer Disclosure Schedules referenced herein, if any)
are true and correct as of the Closing Date and shall survive the Closing and continue in full
force and until the fourth anniversary of the Closing Date.

3.1 Organization. The Buyer is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Oklahoma.

3.2 Authority. The Buyer has all requisite power and authority, corporate or
otherwise, to execute, deliver and perform under this Agreement and the other agreements,
certificates and instruments to be executed by the Buyer in connection with or pursuant to this
Agreement (collectively, the “Buyer Documents”). The execution, delivery and performance
by Buyer of each Buyer Document have been duly authorized by all necessary action, corporate or
otherwise, on the part of Buyer. This Agreement and the other Buyer Documents have been duly
executed and delivered by Buyer. This Agreement and the other Buyer Documents are a legal, valid
and binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or
similar laws affecting the enforcement of creditors’ rights generally and subject to
general principles of equity (regardless of whether enforcement is sought in a proceeding at
law or in equity).

 

5

 

3.3 No Violation. The execution, delivery and performance of the Buyer Documents by
the Buyer will not conflict with or result in the breach of any term or provision of, or violate or
constitute a default under any charter provision or bylaw or under any material agreement, order or
Law to which Buyer is a party or by which Buyer is in any way bound or obligated.

3.4 Governmental Authorizations. Except to the extent required in connection with any
of the Governmental Authorizations required on the part of the Seller as described in
Section 2.10, or as required by any applicable securities laws, no Governmental
Authorization is required on the part of any Buyer in connection with the transactions contemplated
by this Agreement.

3.5 Full Disclosure. No representation or warranty of the Buyer contained in this
Agreement, and nothing set forth herein or in the exhibits attached hereto, or in any document
furnished or to be furnished to the Seller at the Closing, or in any other information or materials
delivered by the Buyer to the Seller (when read together), contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the statements contained
herein or therein not misleading in light of the circumstances under which they were made.

ARTICLE IV

COVENANTS AND AGREEMENTS

4.1 Release of Claims. In consideration for the agreements hereunder and the release
obtained hereby, each of the Parties to this Agreement irrevocably and unconditionally release,
forever discharge, and covenant not to sue, or bring any other legal action against another Party
with respect to any and all claims, damages, liens, or causes of action of any nature, both past
and present, known and unknown, foreseen and unforeseen, liquidated or unliquidated which a Party
has or which could be asserted on a Party’s behalf by any other person or entity, resulting from or
relating to any breach or alleged breach by another Party of a representation or warranty contained
in Sections 2.1 – 2.29, 2.33 – 2.35, 3.1 – 3.5 or
3.9 of that certain Membership Interest Purchase Agreement dated as of October 30, 2007
(the “2007 Purchase Agreement”) by and among the Parties, except for claims arising from
fraud, willful misconduct or a Party’s indemnification obligations. This mutual release runs to
the benefit of all attorneys, agents, employees, officers, directors, shareholders, partners,
heirs, assigns, and legal representatives of the Parties. It is acknowledged that all Parties are
receiving consideration pursuant to the terms of this Agreement and that this release is binding on
all Parties. This release does not release Buyer from any payment or compensation obligation under
any employment agreement with Michael Schuster and does not relate to or include First Physicians
Realty Group, LLC.

4.2 Termination of Certain Provisions of the 2007 Purchase Agreement. The Parties hereby
agree that the following sections of the 2007 Purchase Agreement are terminated in their entirety
and the covenants and agreements contained therein shall be of no further force or effect:
Sections 5.1, and 5.7. Section 5.2 of the 2007 Purchase Agreement shall be
terminated
and the employment arrangement is set forth in a letter agreement dated of even herewith between
Michael Schuster, Buyer and First Physicians Realty Group, LLC. It is acknowledged that Seller is
not obligated to return any stock of TIGroup for any reason.

 

6

 

4.3 Lock-Up. Seller agrees that she will not make or cause any sale of TIGroup’s common
stock, par value $0.01 per share (the “Common Stock”) received by Seller in conjunction
with the transactions contemplated by the 2007 Purchase Agreement prior to January 1, 2010 without
TIGroup’s prior written consent, except in conjunction with a firmly-underwritten public offering
of TIGroup’s Common Stock or other equity interest of TIGroup registered under the Securities Act
of 1933, as amended (the “Securities Act”), by a nationally-recognized investment bank
resulting in at least US $25 Million in net proceeds (after underwriting discount) to TIGroup (the
“Public Offering”), in which Seller is invited to participate in the sole discretion of
TIGroup, provided, however, that neither TIGroup nor any underwriter shall be obligated to include
any of Seller’s shares of Common Stock or other equity interest in TIGroup in a Public Offering.

4.4 Publicity. The Buyer and Seller will cooperate with each other in the development
and distribution of all news releases and other public disclosures relating to the transactions
contemplated hereby. Neither the Buyer nor Seller will issue or make, or allow to have issued or
made, any press release or public announcement concerning the transactions contemplated hereby
without giving the other Parties a reasonable opportunity to comment on such release or
announcement in advance, consistent with applicable law and stock market requirements.
Notwithstanding the foregoing, nothing contained in this Agreement will prohibit Buyer from making
any disclosure required pursuant to applicable securities Laws.

4.5 Transaction Costs. Each of Buyer and Seller will pay all of their transaction
costs and expenses (including legal, accounting and other professional fees) that it incurs in
connection with the negotiation, execution and performance of this Agreement and the transactions
contemplated hereby.

 

7

 

ARTICLE V

MISCELLANEOUS

5.1 Notices. All notices and other communications under this Agreement must be in
writing and will be deemed given (a) when delivered personally; (b) on the fifth business day after
being mailed by certified mail, return receipt requested; or (c) the next business day after
delivery to a recognized overnight courier, to the Parties at the following addresses (or to such
other address or facsimile number as such Party may have specified by notice given to the other
Party pursuant to this provision):

	 	 	 
	if to the Buyer to:	 	with copies (which will not constitute notice) to:
	 
	Rural Hospital Acquisition, LLC.

	 	K&L Gates, LLP
	3555 N.W. 58th Street, Suite 700

	 	1717 Main Street, Suite 2800
	Oklahoma City, OK 73112

	 	Dallas, Texas 75201
	Attention: CEO

	 	Attention: I. Bobby Majumder

	 	 	 
	if to the Seller to:	 	with copies (which will not constitute notice) to:
	 
	Carol Schuster

	 	Day Edwards Propester & Christensen, P.C.
	2304 Old Farm Road

	 	2900 Oklahoma Tower
	Edmond, Oklahoma 73013

	 	210 Park Avenue
	 

	 	Oklahoma City, Oklahoma
	 

	 	Attention: J. Clay Christensen

5.2 Attorneys’ Fees and Costs. If attorneys’ fees or other costs are incurred to
secure performance of any obligations hereunder, or to establish damages for the breach thereof or
to obtain any other appropriate relief, or to defend against any of the foregoing actions, the
prevailing Party will be entitled to recover reasonable attorneys’ fees and costs incurred in
connection therewith.

5.3 Brokers. Each Party to this Agreement represents to the other Party that it has
not incurred and will not incur any liability for brokers’ or finders’ fees or agents’ commissions
in connection with this Agreement or the transactions contemplated hereby, except as expressly
provided herein.

5.4 Severability. The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of any other provision of this Agreement,
each of which will remain in full force and effect, so long as the economic or legal substance of
the transactions contemplated by this Agreement is not affected in a manner materially adverse to
any Party.

5.5 Counterparts. This Agreement may be executed in one or more counterparts
(including by facsimile or portable document format (.pdf)) for the convenience of the Parties
hereto, each of which will be deemed an original, but all of which together will constitute one and
the same instrument.

5.6 Interpretation. The article and section headings contained in this Agreement are
solely for the purpose of reference, are not part of the agreement of the Parties and will not in
any way affect the meaning or interpretation of this Agreement.

5.7 Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder may be assigned or delegated by a Party without the prior written consent of
the other Parties and any purported assignment or delegation in violation thereof will be null and
void; except that Buyer may assign its rights and obligations under this Agreement to any of
its direct or indirect subsidiaries, or any successor to its business. This Agreement is not
intended to confer any rights or benefits on any Person other than the Parties hereto.

 

8

 

5.8 Entire Agreement, Amendment. This Agreement and the related documents contained
as Exhibits and Schedules hereto or expressly contemplated hereby contain the entire understanding
of the Parties relating to the subject matter hereof and supersede all prior written or oral and
all contemporaneous oral agreements and understandings relating to the subject matter hereof. All
statements of the Seller contained in any Schedule, certificate or other Seller Document required
under this Agreement to be delivered in connection with the transactions contemplated hereby will
constitute representations and warranties of the Seller under this Agreement. The Exhibits,
Schedules and recitals to this Agreement are hereby incorporated by reference into and made a part
of this Agreement for all purposes. This Agreement may be amended, supplemented or modified, and
any provision hereof may be waived, only by written instrument making specific reference to this
Agreement signed by the Party against whom enforcement is sought.

5.9 Specific Performance, Remedies Not Exclusive. The Parties hereby acknowledge and
agree that the failure of any Party to perform its agreements and covenants hereunder, including
its failure to take all required actions on its part necessary to consummate the transactions
contemplated hereby, will cause irreparable injury to the other Parties for which damages, even if
available, will not be an adequate remedy. Accordingly, each Party hereby consents to the issuance
of injunctive relief by any court of competent jurisdiction to compel performance of such Party’s
obligations and to the granting by any court of the remedy of specific performance of its
obligations hereunder. Unless otherwise expressly stated in this Agreement, no right or remedy
described or provided in this Agreement or otherwise conferred upon or reserved to any Party is
intended to be exclusive or to preclude a Party from pursuing other rights and remedies to the
extent available under this Agreement, at law or in equity, and the same will be distinct, separate
and cumulative and may be exercised from time to time as often as occasion may arise or as such
Party may deem expedient.

5.10 GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF OKLAHOMA, WITHOUT GIVING EFFECT TO ANY
CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION.

5.11 Submission to Jurisdiction. Each of the Parties submits to the exclusive,
mandatory jurisdiction of any state or federal court sitting in Oklahoma City, Oklahoma, in any
action or proceeding arising out of or relating to this Agreement and agrees that all claims in
respect of the action or proceeding shall be heard and determined in any such court. Each Party
also agrees not to bring any action or proceeding arising out of or relating to this Agreement in
any other court. Each of the Parties waives any defense of inconvenient forum to the maintenance
of any action or proceeding so brought and waives any bond, surety, or other security that might be
required of any other Party with respect thereto.

 

9

 

5.12 Drafting. The language in all parts of this Agreement will be interpreted, in
all cases, according to its fair meaning and not for or against any Party hereto. Each Party
acknowledges that it and its legal counsel have reviewed and revised this Agreement and that
the normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting Party will not be employed in the interpretation of this Agreement.

5.13 Usage. Whenever the plural form of a word is used in this Agreement, it will
include the singular form of that word. Whenever the singular form of a word is used in this
Agreement, it will include the plural form of that word. The term “or” will not be interpreted as
excluding any of the items described. The term “include” or any derivative of such term does not
mean that the items following such term are the only types of such items.

5.14 Survival. Sections 1.2 and 1.5, and Articles IV and
V shall survive the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby indefinitely. Articles II and III shall survive the execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby in
accordance with the terms set forth therein.

5.15 Certain Definitions. For purposes of this Agreement:

(a) The term “Person” means an individual, corporation, partnership,
Governmental Entity or other entity.

(b) the term “Affiliate” means, with respect to a specified Person, any other
Person or member of a group of Persons acting together that, directly or indirectly, through
one or more intermediaries, controls, is controlled by or is under common control with, the
specified Person.

(c) the term “control” (including the terms “controlling,” “controlled by” and
“under common control with”) means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

(d) the terms “knowledge” and “known” and words of similar import mean:

(i) the Seller will be deemed to have “knowledge” of a particular matter, and
the particular matter will be deemed to be “known” by the Seller as actual knowledge
of such matter or would reasonably be expected to have knowledge of such matter
following reasonable inquiry of the appropriate employees and agents of the Seller,
and the Seller will be deemed to have “knowledge” of a particular matter, and the
particular matter will be deemed to be “known” by the Seller if Seller has such
“knowledge” or is so deemed to “know.”

(ii) the Buyer will be deemed to have “knowledge” of a particular matter, and
the particular matter will be deemed to be “known” by Buyer, if any director,
officer or any supervisory level employee of Buyer has actual knowledge of such
matter or would reasonably be expected to have knowledge of such matter following
reasonable inquiry of the appropriate employees and agents of Buyer.

 

10

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Closing Date.

	 	 	 	 	 
	 	THE BUYER:

RURAL HOSPITAL ACQUISITION, LLC, an 
Oklahoma
Limited Liability Company

 	 
	 	By:  	 
 	 
	 	 	Name:  	David Hirschhorn 	 
	 	 	Title:  	Manager 	 
	 
	 	THE SELLER:

CAROL SCHUSTER	 
	 	
 	 
	 	Carol Schuster 	 
	 
	 	ADDITIONAL PARTIES:

TRI-ISTHMUS GROUP, INC

 	 
	 	By:  	
 	 
	 	 	Name:  	David Hirschhorn 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	SURGICAL CENTER ACQUISITION
 HOLDINGS, INC

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	Name:  	 David Hirschhorn
 	 
	 	 	Title:  	
President 	 

 

11

 

	 	 	 	 	 	 	 
	 	RHA TISHOMINGO, LLC, an Oklahoma Limited

Liability Company	 
	 
	 	By: 	RURAL HOSPITAL ACQUISITION, L.L.C., an

Oklahoma limited liability company, its manager
 	 
	 	 	By:  	 
	 	 	 	 
	 	 	 	Name:  	 David Hirschhorn 	 
	 	 	 	Title:  	Manager 	 

	 	 	 	 	 	 	 
	 	RHA STROUD, LLC, an Oklahoma Limited Liability

Company 	 
	 
	 	By: 	 RURAL HOSPITAL ACQUISITION, L.L.C., an Oklahoma limited liability company, its
manager
 	 
	 	 	By:  	 
	 	 	 	 
	 	 	 	Name:  	 David Hirschhorn
 	 
	 	 	 	Title:  	Manager 	 

	 	 	 	 	 	 	 
	 	RHA ANADARKO, LLC, an Oklahoma
Limited Liability Company
 	 
	 
	 	By: 	 RURAL HOSPITAL ACQUISITION, L.L.C., an

Oklahoma limited liability company, its
manager
 	 
	 	 	By:  	 
	 	 	 	 
	 	 	 	Name:  	 David Hirschhorn
 	 
	 	 	 	Title:  	Manager 	 

	 	 	 	 	 
	 	MICHAEL SCHUSTER

 	 
	 	
 	 
	 	Michael Schuster 	 

 

12

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