Document:

Member Offer Agreement

 Exhibit 10.1 
  
 EXECUTION VERSION 
  
 MEMBER OFFER AGREEMENT 
  
 June 2, 2004 
  
 DEAR MEMBER: 
  
 DIRECTV, Inc.
(“DIRECTV”), with the consent of the National Rural Telecommunications Cooperative (“NRTC”), is pleased to offer you (“you” or the “Member”) the options described below (the
“Offer”) in this Member Offer Agreement (including the applicable Schedules and Exhibits hereto and incorporated herein, this “Agreement”) with respect to your provision of DIRECTV services and your current DIRECTV
subscribers. 
  
 As you know, in 1992 or 1993, you or a
predecessor in interest entered into an NRTC/Member Agreement for Marketing and Distribution of DBS Services (as amended, including in 1994, the “Existing Member Agreement”) with NRTC, which permitted you to distribute DIRECTV
services. In addition, you may have entered, in 2004, into a New NRTC/Member Agreement for Marketing and Distribution of DBS Services (the “New Member Agreement”, and together with the Existing Member Agreement, the “Member
Agreements”) in connection with the settlement of the class action lawsuit brought by North Central Communications and Iowa Lake Electric Corporation, on behalf of the plaintiff class certified in the United States District Court for the
Central District of California (the “Court”), Case No. CV00-2117, and the lawsuits in the Court between NRTC and DIRECTV, Case Nos. CV99-5666, CV99-8672, CV01-0993 and CV01-8121, as set forth in the Complete Restatement of Amended
Term Sheet, dated as of August 5, 2003 (the “Settlement”). You may also know that DIRECTV (as successor to Hughes Communications Galaxy, Inc.) and NRTC are parties to that certain DBS Distribution Agreement, dated as of April 10,
1992 (such agreement, as amended, including, without limitation on February 14, 1994 and pursuant to the Settlement, the “DBS Distribution Agreement”). 
  
 As described in the Notice previously sent to you by NRTC, (i) the DBS Distribution has been terminated as of June 1, 2004,
(ii) the New Member Agreement has been terminated effective as of June 2, 2004 and (iii) the Existing Member Agreement has been terminated effective as of the earlier of August 31, 2004 or the applicable Closing Date (as defined below in Section
2). This Agreement, when executed by you and received by NRTC, as master servicer to DIRECTV, will either (i) entitle you to certain buyout payments, if you choose any of Option A-1, Option A-2, Option B-1 or Option B-2 below, or (ii) allow you
to continue to provide DIRECTV services under substantially the same terms and conditions as contained in the Member Agreements, if you choose any of Option C-1, Option C-2, or Option C-3 below. 
  
 IF YOU DO NOT RESPOND TO THIS OFFER PRIOR TO JUNE 30, 2004 IN ACCORDANCE WITH THE
PROCEDURES DESCRIBED BELOW, YOU WILL NOT BE ENTITLED TO THE MAXIMUM AMOUNT OF PAYMENTS AVAILABLE PURSUANT TO THIS OFFER. PLEASE READ SECTIONS 1 AND 2 FOR ADDITIONAL INFORMATION. 
  
 THIS OFFER SHALL EXPIRE AT 5:00 P.M. (EASTERN) ON AUGUST 31, 2004 (THE “EXPIRATION DATE”). IF NRTC, AS MASTER SERVICER
TO DIRECTV, HAS NOT RECEIVED YOUR OPTION SELECTION BY THE EXPIRATION DATE, (1) YOUR RIGHTS UNDER THE EXISTING MEMBER AGREEMENT WILL TERMINATE ON AUGUST 31, 2004 AND YOU WILL NO LONGER BE ENTITLED TO DISTRIBUTE DBS SERVICES) AFTER THAT DATE AND (2)
YOU WILL NOT BE ENTITLED TO ANY OF THE PAYMENTS OR DBS DISTRIBUTION RIGHTS SET FORTH IN THIS AGREEMENT. 

 1. Options Available to the Members. 
  
 This Offer contains seven separate Options (Option A-1, Option A-2,
Option B-1, Option B-2, Option C-1, Option C-2 and Option C-3). You may only select one (1) of the following Options. Please indicate your selection by checking the appropriate box below. 
  
 PLEASE READ THIS ENTIRE AGREEMENT (INCLUDING THE SCHEDULES AND EXHIBITS
ATTACHED HERETO) CAREFULLY BEFORE COMPLETING ANY BOX BELOW. 
  

			
	  ̈
	 	Option A-1: Buyout Lump-Sum Payment (June 30, 2011).
		
	 	 	 If the Member selects this Option A-1, DIRECTV agrees to pay to the Member, effective as of the Closing Date, a single lump-sum payment in an amount
equal to $1,050.00 per Transferred Subscriber (the “Option A-1 Payment”) payable on the third business day after the Closing Date to the account specified by the Member on its signature page hereto (Page S-2); provided,
however, that such payment amount is based on the assumption that the Closing Date occurs on June 30, 2004. In the event that the Closing Date occurs after June 30, 2004, the amount of the Option A-1 Payment shall be adjusted downward pro rata based
on the number of weeks elapsed past June 30, 2004 (with a reduction of $2.88 per Transferred Subscriber per week for each week elapsed). In addition, promptly after the Closing, appropriate adjustments shall be made for accounts receivable from
Transferred Subscribers to the Member in existence as of the Closing Date and for payments owing from the Member to NRTC, or from NRTC to the Member, as of the Closing Date pursuant to the Member’s Existing Member Agreement. For purposes of
clarity, no subscriber transfer payment or other amount shall be owed to the Member after payment of the Option A-1 Payment, except for any payments that may be due the Member under a Retailer Agreement or Servicer Agreement. DIRECTV hereby agrees
to make all payments and perform all of its obligations applicable to this Option A-1 accepted by Member, as and when provided for.
  
 In addition, by accepting this Option A-1, the Member hereby (i) acknowledges and agrees that the New Member Agreement has been terminated effective as of June 2, 2004
and that the Existing Member Agreement has been terminated effective as of the Closing Date; (ii) acknowledges and agrees that it shall no longer possess an exclusive territory; and (iii) acknowledges and agrees to the non-competition provisions and
the Hart-Scott-Rodino representation set forth in Schedule A-1, which is hereby incorporated by reference.
  
 By selecting this Option A-1, you are agreeing to the Agreed Upon Terms and Conditions in Schedule A-1, which include certain restrictions on the use of
subscriber lists and non-competition provisions for the period through June 30, 2013.

  

 2 

			
	  ̈
	 	Option A-2: Buyout Lump-Sum Payment (December 31, 2009).
		
	 	 	 If the Member selects this Option A-2, DIRECTV agrees to pay to the Member, effective as of the Closing Date, a single lump-sum payment in an amount
equal to $875.00 per Transferred Subscriber payable in a single lump sum on the Closing Date (the “Option A-2 Payment”) payable on the third business day after the Closing Date to the account specified by the Member on its signature
page hereto (Page S-2); provided, however, that such payment amount is based on the assumption that the Closing Date occurs on June 30, 2004. In the event that the Closing Date occurs after June 30, 2004, the amount of the Option A-2 Payment
shall be adjusted downward pro rata based on the number of weeks elapsed past June 30, 2004 (with a reduction of $2.88 per Transferred Subscriber per week for each week elapsed). In addition, promptly after the Closing, appropriate adjustments shall
be made for accounts receivable from Transferred Subscribers to the Member in existence as of the Closing Date and for payments owing from the Member to NRTC, or from NRTC to the Member, as of the Closing Date pursuant to the Member’s Existing
Member Agreement. For purposes of clarity, no subscriber transfer payment or other amount shall be owed to the Member after payment of the Option A-2 Payment, except for any payments that may be due the Member under a Retailer Agreement or Servicer
Agreement. DIRECTV hereby agrees to make all payments and perform all of its obligations applicable to this Option A-2 accepted by Member, as and when provided for.
  
 In addition, by accepting this Option A-2, the Member hereby (i) acknowledges and agrees that the New Member Agreement has been terminated
effective as of June 2, 2004 and the Existing Member Agreement has been terminated effective as of the Closing Date; (ii) acknowledges and agrees that it shall no longer possess an exclusive territory; and (iii) acknowledges and agrees to the
non-competition provisions and the Hart-Scott-Rodino representation set forth in Schedule A-2, which is hereby incorporated by reference.
  
 By selecting this Option A-2, you are agreeing to the Agreed Upon Terms and Conditions in Schedule A-2, which include certain restrictions on the use of
subscriber lists for the period through December 31, 2011 and a non-competition period through December 31, 2009.

  

 3 

					
	  ̈
	 	Option B-1: Buyout Monthly Payments through June 30, 2011.
		
	 	 	 If the Member selects this Option B-1, DIRECTV agrees to pay to the Member, effective as of the Closing Date, $1,400 in the aggregate per
Transferred Subscriber (as defined above), payable in monthly payments (each, an “Option B-1 Monthly Payment”) of $16.67 per month per Transferred Subscriber (as adjusted on a straight-line basis for any payment period of less than
a month), commencing thirty (30) days following the Closing Date and ending June 30, 2011; provided, however, that such payment amount is based on the assumption that the Closing Date occurs on June 30, 2004. In the event that the Closing
Date occurs after June 30, 2004, the aggregate amount that DIRECTV shall pay and the Member shall receive will be reduced based on the number of weeks elapsed past June 30, 2004 (with a reduction of $2.88 per Transferred Subscriber per week for each
week elapsed). In addition, promptly after the Closing, appropriate adjustments shall be made for accounts receivable from Transferred Subscribers to the Member in existence as of the Closing Date and for payments owing from the Member to NRTC, or
from NRTC to the Member, as of the Closing Date pursuant to the Member’s Existing Member Agreement. Each of the Option B-1 Monthly Payments shall be paid to the account specified by the Member on its signature page hereto (Page S-2). For
purposes of clarity, no subscriber transfer payment or other amount shall be owed to the Member after payment of the final Option B-1 Monthly Payment, except for any payments that may be due the Member under a Retailer Agreement or Servicer
Agreement (as each is defined below). DIRECTV hereby agrees to make all payments and perform all of its obligations applicable to this Option B-1 accepted by Member, as and when provided for.
  
 In addition, by accepting this Option B-1, the Member hereby (i) acknowledges and agrees that
the New Member Agreement has been terminated effective as of June 2, 2004 and the Existing Member Agreement has been terminated effective as of the Closing Date; (ii) acknowledges and agrees that it shall no longer possess an exclusive territory;
and (iii) acknowledges and agrees to the non-competition provisions and the Hart-Scott-Rodino representation set forth in Schedule B-1, which is hereby incorporated by reference.
  
 By selecting this Option B-1, you are agreeing to the Agreed Upon Terms and Conditions in Schedule B-1, which include certain
restrictions on the use of subscriber lists and non-competition provisions for the period through June 30, 2013.
  
 Election to deduct Servicer Payments (if Servicer Agreement executed). If, in addition to selecting this Option B-1, you have also executed and timely delivered to
NRTC, as master servicer, a Servicer Agreement (as described in Section 4 below), you may, in lieu of receiving the Option B-1 Monthly Payments at the account specified on your signature page hereto, deduct the Option B-1 Monthly Payments from the
payments you are required to make to NRTC under the Servicer Agreement. Please indicate below whether you intend to deduct the Option B-1 Monthly Payments:

			
	 	 	  ̈        Member will deduct the Option B-1 Monthly Payments
	  	  ̈        Member will not deduct the Option B-1 Monthly Payments

  

 4 

					
	  ̈
	 	Option B-2: Buyout Monthly Payments through December 31, 2009.
		
	 	 	 If the Member selects this Option B-2, DIRECTV agrees to pay to the Member, effective as of the Closing Date, $1,100 in the aggregate per
Transferred Subscriber, payable in monthly payments (each, an “Option B-2 Monthly Payment”) of $16.67 per month per Transferred Subscriber (as adjusted on a straight-line basis for any payment period of less than a month),
commencing 30 days following the Closing Date and ending December 31, 2009; provided, however, that such payment amount is based on the assumption that the Closing Date occurs on June 30, 2004. In the event that the Closing Date occurs after
June 30, 2004, the aggregate amount that DIRECTV shall pay and the Member shall receive will be reduced based on the number of weeks elapsed past June 30, 2004 (with a reduction of $2.88 per Transferred Subscriber per week for each week elapsed). In
addition, promptly after the Closing, appropriate adjustments shall be made for accounts receivable from Transferred Subscribers to the Member in existence as of the Closing Date and for payments owing from the Member to NRTC, or from NRTC to the
Member, as of the Closing Date pursuant to the Member’s Existing Member Agreement. Each of the Option B-1 Monthly Payments shall be paid to the account specified by the Member on its signature page hereto (Page S-2). For purposes of clarity, no
subscriber transfer payment or other amount shall be owed to the Member after payment of the final Option B-2 Monthly Payment, except for any payments that may be due the Member under a Retailer Agreement or Servicer Agreement (as each is defined
below). DIRECTV hereby agrees to make all payments and perform all of its obligations applicable to this Option B-2 accepted by Member, as and when provided for.
  

In addition, by accepting this Option B-2, the Member hereby (i) acknowledges that the New Member Agreement has been terminated effective as of June 2, 2004 and the
Existing Member Agreement has been terminated as of the Closing Date; (ii) acknowledges that it shall no longer possess an exclusive territory; and (iii) acknowledges and agrees to the non-competition provisions and the Hart-Scott-Rodino
representation set forth in Schedule B-2, which is hereby incorporated by reference.
  
 By selecting this Option B-2, you are agreeing to the Agreed Upon Terms and Conditions in Schedule B-2, which include certain restrictions on the use of subscriber lists for the period through December
31, 2011 and a non-competition period through December 31, 2009.
  
 Election to deduct Servicer Payments (if Servicer Agreement executed). If, in addition to selecting this Option B-2, you have also executed and timely delivered to NRTC, as master servicer, a Servicer Agreement (as described in
Section 4 below), you may, in lieu of receiving the Option B-2 Monthly Payments at the account specified on your signature page hereto, deduct the Option B-2 Monthly Payments from the payments you are required to make to NRTC under the Servicer
Agreement. Please indicate below whether you intend to deduct the Option B-2 Monthly Payments:

			
	 	 	  ̈        Member will deduct the Option B-2 Monthly Payments
	  	  ̈        Member will not deduct the Option B-2 Monthly Payments

  

 5 

											
	 	 	Option C: Status Quo (through the Service Term selected below)
						
	  ̈
	 	Option C-1:	 	 ̈	  	Option C-2:	  	 ̈	  	Option C-3:
	 	 	 •      Service Term through June 30, 2011
	 	 	  	 •      Service Term through December 30, 2009
	  	 	  	 •      Service Term through Termination Date as defined in the Settlement (projected to be June 30,
2008)

		
	 	 	 By selecting Option C-1, Option C-2 or Option C-3, as the case may be, the Member hereby (i) acknowledges and agrees that its New Member
Agreement has been terminated and that the Existing Member Agreement shall be terminated as of the Closing Date, (ii) acknowledges and agrees, effective as of the Closing Date and until the end of the applicable Service Term selected by you above,
to the provisions set forth in Schedule C (Part I), which is hereby incorporated by reference and pursuant to which the Member will through this Agreement with DIRECTV continue to enjoy any and all rights with respect to sales of DIRECTV
programming that the Member has currently under its Member Agreements prior to the termination thereof and (iii) acknowledges and agrees, effective as of the Closing Date and until the end of the applicable Service Term selected by you above, to the
provisions set forth in Schedule C (Part II), which is hereby incorporated by reference and pursuant to which DIRECTV agrees that the Member will continue to enjoy any and all rights with respect to sales of DIRECTV programming that the
Member has currently under the Second Revised Seamless Consumer Agreement between DIRECTV and NRTC and the Member Agreements.
  
 Member acknowledges that promptly after the Closing appropriate adjustments shall be made for accounts receivable or other amounts due to or from NRTC and the Member as
of the Closing Date. DIRECTV hereby agrees to make all payments and perform all of its obligations applicable to this Option C-1, Option C-2 or Option C-3, as the case may be, accepted by Member, as and when provided for.
  
 In addition, the Member hereby acknowledges that DIRECTV has entered into a Master Servicer
Agreement with NRTC pursuant to which NRTC shall act as DIRECTV’s master servicer to provide certain servicing activities pursuant to the Master Servicer Agreement. By selecting Option C-1, Option C-2 or Option C-3, as the case may be, the
Member agrees to continue to pay the DBS distribution services costs associated with its ongoing rights, as well as a mark-up applied to such costs as set forth in Schedule C (Part I), with annual increases by DIRECTV of such mark-up amount solely
in accordance with an adjustment based on the Consumer Price Index in non-urban regions (the “CPI”)). All such payments shall be forwarded by the Member to NRTC, as master servicer, for payment to DIRECTV pursuant to the Master
Servicer Agreement. Member agrees that NRTC, as master servicer may directly collect all payments and enforce performance by the Member under the Agreed Upon Terms and Conditions and the Additional Agreed Upon Terms and Conditions.
  
 By selecting Option C-1, Option C-2 or Option C-3, as the case may be, you are agreeing to
each of the Agreed Upon Terms and Conditions in Schedule C (Part I) and the Additional Agreed Upon Terms and Conditions re: Seamless Consumer Program in Schedule C (Part II).

  

 6 

 Please note that the following definitions apply to each of the options described above: 
  
 (a) “Transferred Subscriber” means any Subscriber account
of the Member as of the Closing Date (i) with a level of service at least equivalent to Core Programming, which account is not more than forty-five (45) days past due, and which, with respect to a Subscriber acquired within three months prior to the
Closing Date, continues as a DIRECTV Subscriber account in good standing with Core Programming or a higher level of service for no less than ninety (90) days after the Closing Date or (ii) which, as of June 2, 2004, has been in a “suspend”
status for not more than 180 days and has an account balance that is not $0; Transferred Subscribers will also include any Subscribers in the territory covered by your Existing Member Agreement that are activated by DIRECTV on or after the date
hereof and prior to the Closing Date, if they otherwise satisfy the foregoing definition. Notwithstanding the foregoing, the number of “suspend” status Subscribers that are counted as Transferred Subscribers shall be capped at the actual
number thereof as of June 2, 2004. 
  
 (b) “Core
Programming” means any of the Total Choice Packages or Select Choice, Economy Choice, DIRECTV Limited, NFL Sunday Ticket or premium services distributed under the Second Revised Consumer Seamless Agreement, or their equivalents; and

  
 (c) “Subscriber” means a paying subscriber
of any DIRECTV service in an active status with active services. 
  

	2.	Closing Date. The closing of the transactions described in this Agreement (the “Closing”) shall become effective as of the closing date (the “Closing
Date”) as follows: 

  

	 	(a)	if this Agreement is executed by you and received by NRTC, as master servicer to DIRECTV, at the address set forth in Section 7 below, by 5:00 p.m. (Eastern) on June 30, 2004, the
Closing Date shall be June 30, 2004; 

  

	 	(b)	if this Agreement is executed by you and received by NRTC, as master servicer to DIRECTV, at the address set forth in Section 7 below, after 5:00 p.m. (Eastern) on June 30, 2004 but
prior to 5:00 p.m. (Eastern) on July 14, 2004, the Closing Date shall be July 14, 2004; 

  
  

	 	(c)	if this Agreement is executed by you and received by NRTC, as master servicer to DIRECTV, at the address set forth in Section 7 below, after 5:00 p.m. (Eastern) on July 14, 2004 but
prior to 5:00 p.m. (Eastern) on August 13, 2004, the Closing Date shall be August 14, 2004. 

  

	 	(d)	if this Agreement is executed by you and received by NRTC, as master servicer to DIRECTV, at the address set forth in Section 7 below, after 5:00 p.m. (Eastern) on August 13, 2004
but prior to 5:00 p.m. (Eastern) on the Expiration Date, the Closing Date shall be August 31, 2004. 

  
 IF YOU HAVE SELECTED OPTIONS A-1, A-2, B-1 OR B-2 AND THE CLOSING DATE IS AFTER JUNE 30, 2004, THE APPLICABLE PAYMENT AMOUNT(S) WILL BE ADJUSTED
DOWNWARD, AS APPROPRIATE, AS DESCRIBED IN SECTION 1 ABOVE. 
  

 7 

	3.	Retailer Agreement. If you have selected Option A-1, Option A-2, Option B-1 or Option B-2 above, DIRECTV hereby offers you the opportunity to enter into an independent
retailer agreement with DIRECTV, on a non-exclusive basis, on terms and conditions substantially similar to those offered to DIRECTV independent “two-step” retailers, including certain beneficial terms that have been negotiated by DIRECTV
and NRTC (the “Retailer Agreement”). A copy of the Retailer Agreement is included in the materials enclosed together with this Agreement. The Retailer Agreement, if executed and timely delivered by you, will become effective as of
the Closing Date. If you execute a Retailer Agreement, please ensure that you also complete (i) Exhibit A attached thereto by providing your trade name and retailer location(s) and (ii) Internal Revenue Service Form W-9 enclosed therewith.
Please indicate whether you intend to enter into the Retailer Agreement. 

  

			
	 ̈	 	Yes: The Member intends to enter into the Retailer Agreement. A copy of the Retailer Agreement executed by the Member is enclosed herewith.
		
	 ̈	 	No: The Member does not intend to enter into the Retailer Agreement.

  
 IF YOU SELECT “YES”, THE
RETAILER AGREEMENT WILL NOT BECOME EFFECTIVE UNTIL YOU TIMELY DELIVER TO NRTC, AS MASTER SERVICER TO DIRECTV, AT THE ADDRESS SET FORTH IN SECTION 7 BELOW, TWO (2) EXECUTED COPIES OF THE RETAILER AGREEMENT ENCLOSED HEREWITH. NRTC WILL RETURN TO YOU A
COPY EXECUTED BY DIRECTV FOR YOUR RECORDS. 
  
 IF YOU SELECT “NO”
OR DO NOT ANSWER THIS SECTION 3 AND NEVERTHELESS EXECUTE AND TIMELY DELIVER A RETAILER AGREEMENT TO NRTC, AS MASTER SERVICER TO DIRECTV, AT THE ADDRESS SET FORTH IN SECTION 7 BELOW, YOUR ANSWER TO THIS SECTION 3 WILL BE DISREGARDED AND YOU WILL BE
BOUND BY THE TERMS OF THE RETAILER AGREEMENT. 
  

	4.	Servicer Agreement. If you have executed and timely delivered a Retailer Agreement to NRTC, as master servicer to DIRECTV, DIRECTV hereby offers you the opportunity to
provide customer service, bill finishing and collection services solely to your Transferred Subscribers and subsequently acquired Subscribers under your Retailer Agreement pursuant to an independent servicer agreement (the “Servicer
Agreement”) with DIRECTV. A copy of the Servicer Agreement is included in the materials enclosed together with this Agreement. The Servicer Agreement, if executed and timely delivered by you (and if you have executed and timely delivered a
Retailer Agreement), will become effective as of the Closing Date. Please indicate whether you intend to enter into the Servicer Agreement. 

  

			
	 ̈	 	Yes: The Member intends to enter into the Servicer Agreement. A copy of the Servicer Agreement executed by the Member is enclosed herewith.
		
	 ̈	 	No: The Member does not intend to enter into the Servicer Agreement.

  

 8 

 THE SERVICER AGREEMENT WILL NOT BECOME EFFECTIVE UNTIL YOU TIMELY DELIVER TO NRTC, AS MASTER SERVICER TO DIRECTV, AT
THE ADDRESS SET FORTH IN SECTION 7 BELOW, TWO (2) EXECUTED COPIES OF EACH OF THE RETAILER AGREEMENT AND THE SERVICER AGREEMENT ENCLOSED HEREWITH. NRTC WILL RETURN TO YOU A COPY OF EACH AGREEMENT EXECUTED BY DIRECTV FOR YOUR RECORDS. 

 
 IF YOU SELECT “NO” OR DO NOT ANSWER THIS SECTION 4 AND NEVERTHELESS EXECUTE
AND TIMELY DELIVER TO NRTC, AS MASTER SERVICER TO DIRECTV, AT THE ADDRESS SET FORTH IN SECTION 7 BELOW, A SERVICER AGREEMENT AND HAVE EXECUTED AND TIMELY DELIVERED A RETAILER AGREEMENT AS SET FORTH ABOVE, YOUR ANSWER TO THIS SECTION 4 WILL BE
DISREGARDED AND YOU WILL BE BOUND BY THE TERMS OF THE SERVICER AGREEMENT. 
  
 THE SERVICER AGREEMENT MUST BE EXECUTED BY YOU AND TIMELY RECEIVED BY NRTC, AS MASTER SERVICER TO DIRECTV, AT THE ADDRESS SET FORTH IN SECTION 7 BELOW, BY THE CLOSING DATE TO BE EFFECTIVE. NOTWITHSTANDING YOUR RESPONSE TO THIS SECTION 4,
ANY SERVICER AGREEMENT EXECUTED AND TIMELY DELIVERED TO NRTC, AS MASTER SERVICER TO DIRECTV, AT THE ADDRESS SET FORTH IN SECTION 7 BELOW, BY YOU WILL BE DISREGARDED IF YOU HAVE NOT EXECUTED AND TIMELY DELIVERED TO NRTC, AS MASTER SERVICER TO
DIRECTV, AT THE ADDRESS SET FORTH IN SECTION 7 BELOW, A RETAILER AGREEMENT BY SUCH DATE. 
  

	5.	Representations, Warranties and Covenants. 

  

	 	(a)	Authority. DIRECTV and Member each represent and warrant to the other that it has all requisite power and authority (i) to execute, deliver and perform this Agreement
(including the relevant Schedules and Exhibits attached to this Agreement and incorporated herein) and all agreements (including, without limitation, the Retailer Agreement and the Servicer Agreement), documents and instruments executed and
delivered by each in connection with this Agreement; (ii) to own, lease or operate its property and assets; and (iii) to carry on its business as presently conducted. 

  

	 	(b)	Litigation. DIRECTV and Member each represent and warrant to the other that, to the best of its knowledge, there is no outstanding or threatened judgment, threatened or
pending litigation or proceeding, involving or affecting the transactions provided for in, or contemplated by, this Agreement, except as has been previously disclosed in writing by either party to the other. 

  

	 	(c)	Laws. DIRECTV and Member each shall comply with all FCC and other governmental (whether international, federal, state, municipal or otherwise) statutes, laws, rules,
regulations, ordinances, codes, directives and orders of any such governmental agency, body or court applicable to it regarding the provision of DBS Services. 

  

	 	(d)	All Necessary Parties. Member hereby represents and warrants to DIRECTV that the entity (or entities) who are signatories hereto are the only parties necessary to execute
this Agreement for and on behalf of Member and thereby create a valid and binding agreement enforceable against Member in accordance with its terms. 

  

 9 

	6.	Closing Mechanics. Promptly after the Closing Date, DIRECTV or NRTC, as master servicer, will send to you a closing certificate confirming (a) your actual Closing Date, (b)
if you have selected Option A-1, Option A-2, Option B-1 or Option B-2 above, the calculation of Transferred Subscribers and the amount of, as applicable, the Option A-1 Payment, Option A-2 Payment, Option B-1 Payment or Option B-2 Payment and (c) if
you have executed the Servicer Agreement and/or the Retailer Agreement, a copy thereof executed by DIRECTV. 

  

	7.	Delivery. None of this Agreement, the Retailer Agreement nor the Servicer Agreement shall be considered to have been delivered by you until NRTC, as master servicer to
DIRECTV, has actually received an original executed copy of each respective agreement at the following delivery address: 

  
 National Rural Telecommunications Cooperative 
 2121 Cooperative Way 
 Herndon, VA 20171 
 Telephone: (703) 787-0874 
 Facsimile: (703) 787-9301 
 Attention: General Counsel 
  
 Delivery by facsimile will be considered to have been made upon transmission if the recipient has acknowledged receipt thereof and actually receives an original executed copy within three (3) business days thereafter. We recommend that
you use a nationally-recognized overnight courier service (e.g., FedEx or DHL) to deliver each of the agreements. In addition, if you have selected Option A-1, Option A-2, Option B-1 or Option B-2 above, please ensure that you complete the
payment instructions contained on your signature page (Page S-2) hereto. Member agrees that DIRECTV shall have the sole discretion to determine whether or not this Agreement has been properly executed by Member and timely delivered to NRTC.
Member also agrees that DIRECTV may in its sole discretion waive any right DIRECTV has to reject Member’s acceptance of this offer (and may therefore consider this offer properly accepted) even if this Agreement has not been properly executed
or timely delivered to NRTC. 
  

	8.	Notices. All other notices and other communications from either party to the other hereunder shall be in writing and shall be deemed received upon actual receipt when
personally delivered, upon acknowledgment of receipt if sent by guaranteed overnight delivery service (such as FedEx or DHL) or by facsimile, or (other than for the delivery of executed agreements hereunder) upon the expiration of the third business
day after being deposited in the United States mails, postage prepaid, certified or registered mail, addressed to the other party as follows: 

  

			
	 DIRECTV:
	  	 DIRECTV, Inc.
  
 2230 East Imperial Highway
 Building R8, Mail Station N340
 El Segundo, California 90245
 Telephone: (310) 964-5000
 Facsimile: (310) 964-4884
 Attention: Legal Department

		
	 NRTC:
	  	 National Rural Telecommunications Cooperative
 2121
Cooperative Way, Suite 500
 Herndon, VA 20171
 Telephone: (703)
787-0874
 Facsimile: (703) 787-9301
 Attention: General
Counsel

		
	 MEMBER:
	  	At the address set forth on the signature page hereto.

  

 10 

 Each party hereto may change its addresses or payment instructions by giving the other party notice thereof in conformity
with this Section 8. 
  

	9.	General Release. 

  

	 	(a)	The Member, on behalf of itself and its predecessors, successors, assigns, subsidiaries, divisions, affiliates, directors, officers and any person or entity claiming by, through,
under it or on its behalf, or which is acting in concert with it (collectively, the “Member Releasees”), hereby releases and forever discharges (the “General Release”), as of the Closing Date, each of (i) DIRECTV
and its subsidiaries and affiliates and all present and former directors, officers, agents, representatives, employees, successors and assigns of DIRECTV and its affiliates and DIRECTV’s direct or indirect owners and (ii) NRTC and its
subsidiaries and affiliates and all present and former directors, officers, agents, representatives, employees, successors and assigns of NRTC and its affiliates and NRTC’s members (collectively, the “Released Parties”) from
any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or
liabilities of any nature whatsoever in law and in equity, both past and present (through the date this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed, in each case, including, but not limited
to, any allegation, claim or violation, arising under any local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the
Released Parties; or any claim for breach of contract (both express and implied), breach of a covenant of good faith and fair dealing (both express and implied), negligent or intentional misrepresentation, negligent or intentional interference with
contract or prospective economic advantage; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters (all of the foregoing collectively referred to herein as “Claims”), against
DIRECTV, NRTC and/or any of the Released Parties which the Member Releasees may have against the Released Parties including, without limitation, any Claims relating to, arising out of or based on the Member Agreements, the termination thereof in
connection with the Offer, any dealings between NRTC and the Member Releasees, NRTC’s method of calculation and allocation of patronage and non-patronage sourced income (including any such patronage or non-patronage sourced income allegedly
arising out of the transactions by which NRTC and DIRECTV terminated the DBS Distribution Agreement, the New DBS Distribution Agreement and the Member Agreements), NRTC’s calculations and distributions of net savings or patronage to its
patrons, NRTC’s use (including in connection with ventures other than the DBS business) of its patronage capital, the amount, including margin, charged by NRTC to its members or affiliates thereunder, NRTC’s use or distribution to such
member or affiliate of any launch or marketing support fees or advertising revenues collected by NRTC and/or any Claim that NRTC must distribute or pay any patronage as 

  

 11 

 a consequence of the termination of the DBS Distribution Agreement or the Member Agreements. The Member
Releasees do not, however, release (i) any right to be paid or to receive distributions (in the ordinary course of NRTC’s business and not relating to the termination of the DBS Distribution Agreement, the New DBS Distribution Agreement or the
Member Agreements) with respect to any patronage income or capital (a) as reflected on NRTC’s books and records or (b) that has accrued, but has not yet been declared or distributed, in each case immediately prior to the termination date of the
DBS Distribution Agreement; and (ii) any rights that arise out of this Agreement. 
  

	 	(b)	The Member hereby acknowledges that (i) any payments or benefits paid or granted to it pursuant to the Offer, and NRTC’s consent to the transactions set forth herein,
represent, in part, consideration for making this General Release and (ii) it will not receive any payments or benefits pursuant to the terms of the Offer unless its makes this General Release. 

  

	 	(c)	The Member hereby represents that is has not made any assignment or transfer of any right, claim, demand, cause of action, or other matter covered by Section 9(a) above.

  

	 	(d)	In making this General Release, the Member acknowledges and intends that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. The
Member expressly consents that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state statute
that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. The Member acknowledges and agrees that this
waiver is an essential and material term of this General Release. The Member further agrees that in the event it should bring a Claim seeking damages against any of the Released Parties, this General Release shall serve as a complete defense to such
Claims. The Member further agrees that it is not aware of any pending charge or complaint of the type described in Section 9(a) as of the execution of this General Release. 

  

	 	(e)	The Member represents that it is not aware of any claim by it other than the Claims that are released by this General Release. The Member acknowledges that it may hereafter discover
Claims or facts in addition to or different than those which it now knows or believes to exist with respect to the subject matter of this General Release and which, if known or suspected at the time of entering into this General Release, may have
materially affected this General Release and its decision to enter into it. Nevertheless, the Member hereby waives any right, Claim or cause of action that might arise as a result of such different or additional Claims or facts and hereby
expressly waives any and all rights and benefits confirmed upon it by the provisions of California Civil Code Section 1542, which provides as follows: 

  
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE GENERAL RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
  

 12 

 Being aware of such provisions of law, the Member agrees to expressly waive and relinquish any and
all rights and benefits it may have thereunder, as well as under any similar law or common law principle of similar effect of any state or territory of the United States with respect to the Claims released hereby. 
  

	 	(f)	The Member agrees that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by
DIRECTV, NRTC, any Released Party or the Member of any improper or unlawful conduct. 

  

	 	(g)	Whenever possible, each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this General
Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this
General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

  

	 	(h)	The Member agrees that NRTC and the other NRTC Released Parties are intended third-party beneficiaries of the General Release and are entitled to enforce any rights that they have
under the General Release including, without limitation, to raise the General Release as a complete defense in any action involving any of the Claims subject to the General Release. 

  

	10.	Post-Closing Adjustments. If you have selected Option A-1, A-2, B-1 or B-2 above, you are obligated to refund to DIRECTV all amounts received by you in respect of Subscribers
that no longer meet the Transferred Subscriber requirements ninety (90) days after the Closing Date. 

  

	11.	Binding Agreement. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, and
shall inure to the benefit of NRTC, its successors and assigns. Nothing contained in this Agreement shall be deemed to confer upon anyone other than the parties hereto (and their permitted successors and assigns), and NRTC, as set forth below, any
legal right or equitable right, remedy or claim under or by reason of this Agreement. 

  

	12.	Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all counterparts together shall constitute but one and
the same documents. 

  

	13.	Governing Law. The existence, validity, construction, operation and effect of this Agreement shall be determined in accordance with and be governed by the laws of California.

  

	14.	Entire Agreement; Amendment. This Agreement (including the applicable Schedules and Exhibits attached hereto and incorporated by reference herein) constitutes the entire
agreement among the parties and supersedes all previous understandings, commitments and representations concerning the subject matter. This Agreement may not be amended or modified in any way, except (i) as provided in the Agreement or (ii) by a
writing signed by an authorized officer of the party against whom the amendment, modification or waiver is sought to be enforced. No amendment or modification of the provisions of Section 9 may be made except with NRTC’s express written
consent. 

  

 13 

	15.	Severability. Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law. Wherever there is any conflict between any
provision of this Agreement and any law, the law shall prevail and this Agreement shall be limited only to the extent necessary to permit compliance with the minimum legal requirements. No other provisions of this Agreement shall be affected and all
other provisions shall continue in full force and effect. 

  

	16.	Third-Party Beneficiary. The provisions of this Agreement are solely for the benefit of the parties hereto and are not intended to confer upon any person except the parties
hereto any rights to enforce, benefit from or have any other rights or remedies hereunder, and there are no third-party beneficiaries of this Agreement and this Agreement shall not provide any third party with any remedy, claim, liability,
reimbursement, cause of action, claim of action or other right in excess of those existing without reference to this Agreement. Notwithstanding anything in the foregoing to the contrary, it is expressly agreed and understood that (i) solely for the
purposes of receiving and enforcing the General Release, NRTC and any other person or entity described generally in Section 9(a)(ii) above) is an intended third party beneficiary of this Agreement and (ii) solely with respect to Schedule C (Part I),
Schedule C (Part II) and any adjustment of accounts receivable as described in Section 1 above, NRTC is an intended third party beneficiary of such provisions of this Agreement. Except as provided in the preceding sentence, no other persons or
parties are intended as beneficiaries of this Agreement and none shall have rights to enforce or benefit from the provisions of this Agreement. DIRECTV and Member acknowledge and agree that (a) NRTC is not a party to this Agreement and is not bound
by or liable to DIRECTV or Member under the provisions of this Agreement and (b) that Member is not a third-party beneficiary under the Master Servicer Agreement or the Master Retailer Agreement, in each case, between DIRECTV and NRTC.

  

	17.	NRTC Consent to Offer. NRTC consents to this Offer to the Member by DIRECTV, and to the Member’s right to enter into this Agreement with DIRECTV, notwithstanding
NRTC’s rights under and with respect to the Member Agreements prior to their termination. NRTC executes this Offer and the Agreement for the purpose, inter alia, of obtaining the General Release set forth above and the Member’s promise to
pay amounts that may be due to NRTC under the Member Agreements or otherwise and to pay NRTC amounts owing to it as master servicer under the Master Servicer Agreement. 

  

 14 

 IN WITNESS HEREOF, DIRECTV hereby makes you the Offer described above on the terms and conditions set forth in this
Agreement (including all applicable Schedules and Exhibits hereto) and agrees to be bound by the terms of this Agreement (including all applicable Schedules and Exhibits hereto) effective upon the execution and timely delivery by you of this
Agreement in accordance with the provisions hereof. 
  
 OFFERED AND AGREED:

  

			
	 DIRECTV, INC.

		
	 By:
	 	 /s/ Michael W. Palkovic

	 	 	 Michael W. Palkovic
 Executive Vice President and Chief
 Financial Officer

  

 S-1 

 IN WITNESS HEREOF, the undersigned Member hereby acknowledges that it has accepted the Offer, has selected the Option
indicated above and agrees to be bound by the terms of this Agreement on the terms and conditions set forth in this Agreement (including all applicable Schedules and Exhibits hereto). 
  
 ACCEPTED AND AGREED: 
  

							
	Name of Member (currently party to Existing Member Agreement):	  	                                       
                                        
       

			
	 	  	 DBS Number(s):
	  	                                       
                                        
       

	 	  	 	  	  
                                       
                                        
       

			
	 	  	 Address (for notices):
	  	  
                                       
                                        
       

	 	  	 	  	  
                                       
                                        
       

			
	 	  	 Fax:
	  	  
                                       
                                        
       

	 	  	 Phone:
	  	  
                                       
                                        
       

	 	  	 e-mail:
	  	  
                                       
                                        
       

	 	  	 	  	 
	 Date:
                                    
	  	 	  	 Signed By:
	  	  

	 	  	 	  	 	  	 Name:
 Title:

  
 Payment Instructions.
Members selecting any of Option A-1, Option A-2, Option B-1 or Option B-2 should complete the following payment instructions. Payments will be made to the bank account of the Member specified below by wire transfer (i) in the case of Members
selecting Option A-1 or Option A-2, on the third business day following the Closing Date or (ii) in the case of Members selecting Option B-1 or Option B-2, commencing thirty (30) days after the Closing Date (unless such Member has selected to deduct
the applicable monthly payments from any servicer payments owed under the Servicer Agreement as provided in Section 4 of this Agreement). 
  

			
	 Member:
	  	                                       
                                        
    

		
	 Bank:
	  	  
                                       
                                        
    

		
	 ABA #:
	  	  
                                       
                                        
    

		
	 Acct #:
	  	  
                                       
                                        
    

		
	 Account Name:
	  	  
                                       
                                        
    

		
	 Account Representative Contact Name:
	  	  
                                       
                                        
    

		
	 Account Representative Contact Phone:
	  	  
                                       
                                        
    

  

 S-2 

			
	CONSENTED TO:
	
	NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE
		
	 By:
	 	 /s/ B.R. Phillips III

	 	 	 B.R. Phillips III
 President and Chief Executive Officer

  

 S-3 

 SCHEDULE A-1 TO MEMBER OFFER AGREEMENT 
  
 Agreed Upon Terms and Conditions Applicable to Members Selecting Option
A-1 
  
 The provisions of this Schedule A-1 are
applicable in the event that the Member has selected Option A-1 in the Agreement to which this Schedule A-1 is attached and are incorporated into such Agreement in accordance with the terms thereof. If the Member selects Option A-1, these
provisions will become effective upon the close of business on the Closing Date specified in Section 2 of the Agreement into which these Terms and Conditions are incorporated, which Closing Date may vary depending upon when an executed copy
of the Agreement is delivered by you to NRTC, as master servicer to DIRECTV, in accordance with the delivery instructions set forth in Section 7 of the Agreement. Capitalized terms not otherwise defined herein have the meaning given such
terms in the Agreement. 
  

	1.	Assignment. The Member hereby assigns to DIRECTV all its present and future right, title and interest in, under and with respect to all of its tangible and intangible rights
and interests under the Existing Member Agreement and, as applicable, the New Member Agreement (including, without limitation, ownership and propriety interests in all subscribers to DIRECTV services and all lists of such subscribers).

  

	2.	Non-Competition. The Member hereby agrees that, until June 30, 2013, it shall not (a) share or sell its list of former and/or current DBS subscribers (or any
portion thereof) to a multi-channel video provider other than DIRECTV, (b) market or solicit sales for direct-to-home satellite multi-channel video services or the related receiving equipment (other than (i) DIRECTV services, (ii) WildBlue Services
(as defined below) and associated equipment and (iii) C-Band services and related equipment), or (c) share or sell its subscriber list related to non-DBS businesses to any multi-channel video distributor, unless all former and current DBS
subscribers are excised from such list (i.e., no then-current or former (within the prior two-year period) DBS subscriber shall be included in a list sold to a multi-channel video distributor, even if such customer is or was a customer to a non-DBS
business as well). It is expressly agreed and understood that the marketing or sale of WildBlue broadband internet services (“WildBlue Services”) shall not be, by itself, considered a violation of the non-competition provisions in
this Schedule A-1. 

  

	3.	Hart-Scott-Rodino Act Representation. The Member hereby acknowledges that if the value of Option A-1 selected by the Member exceeds certain dollar thresholds, then Member and
DIRECTV could have notification obligations under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”). For member’s convenience, Exhibit I attached hereto provides a summary of the Federal Trade
Commission’s guide for determining whether reporting is required under the HSR Act, including the minimum transaction value threshold of $50 million. The Member represents that, unless it has informed DIRECTV in writing to the contrary, the
Member is not in a direct or indirect control relationship with any other Member, the effect of which could be to require the Member and DIRECTV to file HSR Act notifications as described in Exhibit I. 

  

 A-1 

 SCHEDULE A-2 TO MEMBER OFFER AGREEMENT 
  
 Agreed Upon Terms and Conditions Applicable to Members Selecting Option
A-2 
  
 The provisions of this Schedule A-2 are
applicable in the event that the Member has selected Option A-2 in the Agreement to which this Schedule A-2 is attached and are incorporated into such Agreement in accordance with the terms thereof. If the Member selects Option A-2, these
provisions will become effective upon the close of business on the Closing Date specified in Section 2 of the Agreement into which these Terms and Conditions are incorporated, which Closing Date may vary depending upon when an executed copy
of the Agreement is delivered by you to NRTC, as master servicer to DIRECTV, in accordance with the delivery instructions set forth in Section 7 of the Agreement. Capitalized terms not otherwise defined herein have the meaning given such
terms in the Agreement. 
  

	1.	Assignment. The Member hereby assigns to DIRECTV all its present and future right, title and interest in, under and with respect to all of its tangible and intangible rights
and interests under the Existing Member Agreement and, as applicable, the New Member Agreement (including, without limitation, ownership and propriety interests in all subscribers to DIRECTV services and all lists of such subscribers).

  

	2.	Non-Competition. The Member hereby agrees that, (i) until December 31, 2011, it shall not (a) share or sell its list of former and/or current DBS subscribers
(or any portion thereof) to a multi-channel video provider other than DIRECTV or (b) share or sell its customer list related to non-DBS businesses to any multi-channel video distributor, unless all former and current DBS subscribers are excised from
such list (i.e., no then-current or former (within the prior two-year period) DBS subscriber shall be included in a list sold to a multi-channel video distributor, even if such customer is or was a customer to a non-DBS business as well), and (ii)
until December 31, 2009, market or solicit sales for direct-to-home satellite multi-channel video services or the related receiving equipment (other than (x) DIRECTV services, (y) WildBlue Services (as provided below) and associated
equipment and (z) C-Band services and related equipment). It is expressly agreed and understood that the marketing or sale of WildBlue broadband internet services (“WildBlue Services”) shall not, by itself, be considered a violation
of the non-competition provisions in this Schedule A-2. 

  

	3.	Hart-Scott-Rodino Act Representation. The Member hereby acknowledges that if the value of Option A-2 selected by the Member exceeds certain dollar thresholds, then Member and
DIRECTV could have notification obligations under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”). For member’s convenience, Exhibit I attached hereto provides a summary of the Federal Trade
Commission’s guide for determining whether reporting is required under the HSR Act, including the minimum transaction value threshold of $50 million. The Member represents that, unless it has informed DIRECTV in writing to the contrary, the
Member is not in a direct or indirect control relationship with any other Member, the effect of which could be to require the Member and DIRECTV to file HSR Act notifications as described in Exhibit I. 

  

 A-2 

 SCHEDULE B-1 TO MEMBER OFFER AGREEMENT 
  
 Agreed Upon Terms and Conditions Applicable to Members Selecting Option
B-1 
  
 The provisions of this Schedule B-1 are
applicable in the event that the Member has selected Option B-1 in the Agreement to which this Schedule B-1 is attached and are incorporated into such Agreement in accordance with the terms thereof. If the Member selects Option B-1, these
provisions will become effective upon the close of business on the Closing Date specified in Section 2 of the Agreement into which these Terms and Conditions are incorporated, which Closing Date may vary depending upon when an executed copy
of the Agreement is delivered by you to NRTC, as master servicer to DIRECTV, in accordance with the delivery instructions set forth in Section 7 of the Agreement. Capitalized terms not otherwise defined herein have the meaning given such
terms in the Agreement. 
  

	1.	Assignment. The Member hereby assigns to DIRECTV all its present and future right, title and interest in, under and with respect to all of its tangible and intangible rights
and interests under the Existing Member Agreement and, as applicable, the New Member Agreement (including, without limitation, ownership and propriety interests in all subscribers to DIRECTV services and all lists of such subscribers).

  

	2.	Non-Competition. The Member hereby agrees that, until June 30, 2013, it shall not (a) share or sell its list of former and/or current DBS subscribers (or any
portion thereof) to a multi-channel video provider other than DIRECTV, (b) market or solicit sales for direct-to-home satellite multi-channel video services or the related receiving equipment (other than (i) DIRECTV services, (ii) WildBlue Services
(as defined below) and associated equipment and (iii) C-Band services and related equipment), or (c) share or sell its subscriber list related to non-DBS businesses to any multi-channel video distributor, unless all former and current DBS
subscribers are excised from such list (i.e., no then-current or former (within the prior two-year period) DBS subscriber shall be included in a list sold to a multi-channel video distributor, even if such customer is or was a customer to a non-DBS
business as well). It is expressly agreed and understood that the marketing or sale of WildBlue broadband internet services (“WildBlue Services”) shall not be, by itself, considered a violation of the non-competition provisions in
this Schedule B-1. 

  

	3.	Hart-Scott-Rodino Act Representation. The Member hereby acknowledges that if the value of Option B-1 selected by the Member exceeds certain dollar thresholds, then Member and
DIRECTV could have notification obligations under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”). For member’s convenience, Exhibit I attached hereto provides a summary of the Federal Trade
Commission’s guide for determining whether reporting is required under the HSR Act, including the minimum transaction value threshold of $50 million. The Member represents that, unless it has informed DIRECTV in writing to the contrary, the
Member is not in a direct or indirect control relationship with any other Member, the effect of which could be to require the Member and DIRECTV to file HSR Act notifications as described in Exhibit I. 

  

 B-1 

 SCHEDULE B-2 TO MEMBER OFFER AGREEMENT 
  
 Agreed Upon Terms and Conditions Applicable to Members Selecting Option
B-2 
  
 The provisions of this Schedule B-2 are
applicable in the event that the Member has selected Option B-2 in the Agreement to which this Schedule B-2 is attached and are incorporated into such Agreement in accordance with the terms thereof. If the Member selects Option B-2, these
provisions will become effective upon the close of business on the Closing Date specified in Section 2 of the Agreement into which these Terms and Conditions are incorporated, which Closing Date may vary depending upon when an executed copy
of the Agreement is delivered by you to NRTC, as master servicer to DIRECTV, in accordance with the delivery instructions set forth in Section 7 of the Agreement. Capitalized terms not otherwise defined herein have the meaning given such
terms in the Agreement. 
  

	1.	Assignment. The Member hereby assigns to DIRECTV all its present and future right, title and interest in, under and with respect to all of its tangible and intangible rights
and interests under the Existing Member Agreement and, as applicable, the New Member Agreement (including, without limitation, ownership and propriety interests in all subscribers to DIRECTV services and all lists of such subscribers).

  

	2.	Non-Competition. The Member hereby agrees that, (i) until December 31, 2011, it shall not (a) share or sell its list of former and/or current DBS subscribers
(or any portion thereof) to a multi-channel video provider other than DIRECTV or (b) share or sell its customer list related to non-DBS businesses to any multi-channel video distributor, unless all former and current DBS subscribers are excised from
such list (i.e., no then-current or former (within the prior two-year period) DBS subscriber shall be included in a list sold to a multi-channel video distributor, even if such customer is or was a customer to a non-DBS business as well), and (ii)
until December 31, 2009, market or solicit sales for direct-to-home satellite multi-channel video services or the related receiving equipment (other than (x) DIRECTV services, (y) WildBlue Services (as provided below) and associated
equipment and (z) C-Band services and related equipment). It is expressly agreed and understood that the marketing or sale of WildBlue broadband internet services (“WildBlue Services”) shall not, by itself, be considered a violation
of the non-competition provisions in this Schedule B-2. 

  

	3.	Hart-Scott-Rodino Act Representation. The Member hereby acknowledges that if the value of Option B-2 selected by the Member exceeds certain dollar thresholds, then Member and
DIRECTV could have notification obligations under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”). For member’s convenience, Exhibit I attached hereto provides a summary of the Federal Trade
Commission’s guide for determining whether reporting is required under the HSR Act, including the minimum transaction value threshold of $50 million. The Member represents that, unless it has informed DIRECTV in writing to the contrary, the
Member is not in a direct or indirect control relationship with any other Member, the effect of which could be to require the Member and DIRECTV to file HSR Act notifications as described in Exhibit I. 

  

 B-2 

 EXHIBIT I TO MEMBER OFFER AGREEMENT 
  
 Applicable to Members Selecting Option A-1, Option A-2, Option B-1 or
Option B-2 
  
 DETERMINING HART-SCOTT-RODINO
REPORTABILITY1 
  
 As a general matter, the Act and the Rules require both acquiring and acquired persons to file notifications under the Program if all of the following conditions are met:

  

	 	a.	One person has sales or assets of at least $100 million; 

  

	 	b.	The other person has sales or assets of at least $10 million; and 

  

	 	c.	As a result of the transaction, the acquiring person will hold an aggregate amount of stock and assets of the acquired person valued at more than $50 million; or

  

	 	d.	As a result of the transaction, the acquiring person will hold an aggregate amount of stock and assets of the acquired person valued at more than $200 million, regardless of the
sales or assets of the acquiring and acquired persons.1 

  

	 	A.	Acquiring and Acquired Persons/Acquired Entity 

  
 The first step in determining reportability is to identify who the “acquiring person” and “acquired person” are. “Person” is defined in
Rules 801.1 (a)(l) and is the “ultimate parent entity” or “UPE” of the buyer or seller. That is, it is the entity that ultimately controls the buyer or seller.2 The
“acquired entity” is the specific entity whose assets or voting securities are being acquired. The acquired entity may also be its own UPE or it may be an entity within the acquired person. 
  
 Thus, in an asset acquisition, the acquiring person is the UPE of the buyer, and the acquired
person is the UPE of the seller. The acquired entity is the entity whose assets are being acquired. 
  

	 	B.	Size-of-Person Test 

  
 Once you have determined who the acquiring and acquired persons are, you must determine whether the size of each person meets the Act’s minimum size criteria. This “size of person” test generally
measures a company based on the person’s last regularly prepared annual statement of income and expenses and its last regularly prepared balance sheet.3 The
size of a person includes not only the entity that is making the acquisition or whose assets or securities are being acquired, but also the UPE and any other entities the UPE controls.4

	1	Excerpts from the Federal Trade Commission's "Introductory Guide II to the Premerger Notification Program - To File Or Not To File - When You Must File a Premerger
Notification Report Form." The full document and additional information is available at http://www.ftc.gov/bc/hsr/introguides/introguides.htm. 

	1	See § 7A (a)(3) of the Act. 

	2	See "control" under 801.1 (b). 

	3	See Rule 801.11. 

	 	C.	Size-of-Transaction Test 

  
 The next step is to determine what voting securities, assets, or combination of voting securities and assets are being transferred in the proposed transaction. Then you
must determine the value of the voting securities and/or assets as well as the percentage of voting securities that will be “held as a result of the transaction.” Calculating what will be held as a result of the transaction (referred to as
the “size of the transaction”) is complicated and requires the application of several rules, including Rules 801.10, 801.12, 801.13, 801.14 and 801.15. Assets held as a result of the transaction include those that will be transferred in
the proposed transaction as well as certain assets of the acquired person that the acquiring person has purchased within the time limits outlined in Rule 801.13. 
  
 Once it has been determined that a particular transaction is reportable, each party must submit its notification to the FTC and the DOJ. In
addition, each acquiring person must pay a filing fee to the FTC for each transaction that it reports. 

	4	See Rule 801.1(a)(l). 

  

 I-2 

 SCHEDULE C (PART I) TO MEMBER OFFER AGREEMENT 
  
 Agreed Upon Terms and Conditions re: Member Contract Applicable

 to Members Selecting Option C-1, Option C-2 or Option C-3 
  
 The Terms and Conditions set forth in this Schedule C (Part I) are applicable in the event that the Member has selected
Option C-1, Option C-2 or Option C-3 in the Member Offer Agreement (“Agreement”) to which this Schedule C (Part I) is attached and are incorporated into such Agreement in accordance with the terms thereof. If the Member selects
any of Option C-1, Option C-2 or Option C-3, these provisions will become effective upon the close of business on the Closing Date specified in Section 2 of the Agreement into which these Terms and Conditions are incorporated, which Closing Date may
vary depending upon when an executed copy of the Agreement is delivered by the Member to NRTC, as master servicer for DIRECTV, in accordance with the delivery instructions set forth in Section 7 of the Agreement. Capitalized terms not otherwise
defined herein have the meaning given such terms in the Agreement. 
  
 Section 1.
DBS Services and Other Rights. 
  
 (a) Programming
Rights. The DBS Services to be provided by DIRECTV to Member for distribution to Committed Member Residences and/or to Commercial Establishments (as both are defined under and subject to this Schedule C (Part I)) shall consist of twenty-two (22)
cable programming services (“Cable Programming”); all other video, audio, data packages, “a la carte” programming services and other services which are transmitted by DIRECTV over the HCG Frequencies to Committed Member
Residences and/or to Commercial Establishments to the extent DIRECTV has obtained such rights (“DIRECTV Programming”); the satellite transponder capacity; telemetry, tracking and control (“TT&C”) services to
monitor the status of the satellite and facilities necessary to uplink, transmit and process the signals to deliver the Cable Programming; access control services to control subscriber access to programming, including report-back information related
to purchase data; security services designed to prevent and/or respond to and remedy security breaches; and support services (which may be provided directly by DIRECTV through NRTC as master servicer). Cable Programming and DIRECTV Programming are
referred to in these Terms and Conditions collectively as “Programming”. As used herein, “HCG Frequencies” means the twenty-seven FCC channels originally licensed to DIRECTV’s predecessor, Hughes Communications
Galaxy, at the 101° W.L. orbital location. 
  
 (b) Grant of
Distribution Rights. DIRECTV grants to Member the exclusive right to market, sell and retain revenue from Programming (except Non-Select Services as defined in Section 1(c) of these Terms and Conditions) transmitted over the HCG Frequencies
directly to “Committed Member Residences”, as such term was defined in such Member’s Existing Member Agreement (as amended, including the Exhibits thereto). Programming and the terms and conditions with respect to Programming
marketed and sold to Committed Member Residences shall be the same as the Programming provided and the terms and conditions in effect under Member’s Existing Member Agreement, subject to amendment by DIRECTV from time to time. Any Committed
Member Residence and/or Commercial Establishment, as applicable, which subscribes to Programming shall be deemed a “Subscriber” under these Terms and Conditions. Committed Member Residences shall be determined by and limited to the
specific residences listed or the specific geographic area(s) acquired by Member (or any predecessor(s)-in-interest) under its (or their ) Existing Member Agreement(s). Member shall also have the right to market, sell and retain revenue from the
distribution of Programming (except Non-Select Services) directly to commercial establishments such as hotels, bars and similar establishments (collectively, “Commercial Establishments”), with such Commercial Establishments being
determined by and limited to those locations within counties or zip codes for which Member had the same rights with respect to Commercial Establishments under its Existing Member Agreement. The Programming that is available to be marketed

  

 C(Part I)-1 

 and sold to Commercial Establishments shall be subject to amendment by DIRECTV from time to time. To the extent
consistent with the Agreement (including these Terms and Conditions and the terms of the Programming agreements, Member shall have the right to establish the terms and conditions upon which it will market and sell Programming (except Non-Select
Services) to such Committed Member Residences and/or Commercial Establishments and, subject to its payment to NRTC, as master servicer for DIRECTV, of all sums required under the Agreement (including these Terms and Conditions), shall be entitled to
all revenues from such marketing and sales to Committed Member Residences and Commercial Establishments (“Member Revenues”). Any rights to distribute, market, sell and retain revenue from any of the Programming shall be subject to
Section 8 of these Terms and Conditions and shall extend only to the extent and for the duration as may be provided under the relevant Programming agreements. Member acknowledges that DIRECTV may be unable to obtain the right for Member to
distribute Programming to residences that have cable television service available. 
  
 (c) With respect to Programming, DIRECTV will provide Member (through NRTC, as master servicer) with a pro rata share of (i) unconstrained launch support payments (i.e., cash payments or cancellation of indebtedness
DIRECTV actually receives from a programmer in conjunction with the launch of the programmer’s service with no restrictions on DIRECTV’s use of the funds), with no restrictions on Member’s use of the funds and (ii) constrained launch
support payments (i.e., cash payments or cancellation of indebtedness which must be applied to promote such new services locally (as contrasted with national promotions)), which Member must use in the manner prescribed by the provider of such
programming services. If receipt of any such payments would require Member to incur obligations beyond the amount distributed to Member, Member shall have a right to elect not to receive such payment. Member’s pro rata share shall be determined
based upon the method used in the programming agreement to calculate the launch fee payments. For example, if the programming agreement provides a fixed launch fee amount, Member’s pro rata share shall be based on the percentage of Member
households divided by total households in the United States. If the programming agreement provides a per subscriber launch fee payment based on actual subscribers to the programmer’s service, Member’s pro rata share shall be based on the
actual number of Member Subscribers divided by the total number of subscribers to that particular service. 
  
 (d) DIRECTV shall also provide to Member a pro-rata share of Advertising Revenue, as had been provided pursuant to Section 5.04 of the DBS Distribution
Agreement, on the Cable Programming. 
  
 (e) Non-Select
Services. If a service or rights provider of DIRECTV Programming requires payment of minimum subscriber guarantees, advance payments or other similar commitments (collectively, “Commitment”), and if and to the extent DIRECTV
requires Member to pay a pro rata share of such Commitment, DIRECTV shall establish and notify NRTC, as master servicer of the share that would be applicable to all NRTC members who have selected Option C-1, Option C-2 or Option C-3 (the
“Option C Members”), including the Member (“Member’s Share”). If NRTC determines that the Option C Members shall each pay its Member’s Share, then such programming services shall be deemed Programming. If
NRTC notifies DIRECTV that the Option C Members shall not pay the Member’s Share, then DIRECTV shall become the exclusive distributor of such service(s) vis-à-vis Member (“Non-Select Services”) and, in such event, Member
shall bill and collect and pay to DIRECTV the revenues for Non-Select Services to Committed Member Residences and/or Commercial Establishments, as applicable. Member may retain five percent (5%) of the gross revenues collected by Member for the
Non-Select Services except with respect to Sports League programming, in which event the Member shall retain ten percent (10%) of the gross revenues collected by Member. Member shall remit to DIRECTV through NRTC, as master servicer, all other
amounts pursuant to Section 4(d)(iii) of these Terms and Conditions. 
  
 (f) Marketing. DIRECTV shall assist Member in marketing and promoting DBS Services. DIRECTV shall develop marketing materials and other information to be used by Member for national and local advertising and promotion of DBS
Services. Marketing materials shall be provided to Member at no cost or at DIRECTV’s cost. 
  

 C(Part I)-2 

 (g) Exhibit Z Revenue Protection. DIRECTV and the Member hereby agree that, if any time during the
Service Term, DIRECTV relocates any of the specific single NTSC-source programming channels listed on Exhibit Z attached hereto (the “Exhibit Z Channels”) to a DBS frequency or orbital location other than any of the twenty-seven
(27) HCG Frequencies, the revenue share (including responsibility for programming costs) shall continue to be covered by those terms of the Agreement applicable to services transmitted on the HCG Frequencies for such Exhibit Z Channels, despite such
relocation. 
  
 (h) Future Advanced Services. DIRECTV
agrees to negotiate in good faith the terms and conditions under which Member may distribute future advanced services (other than TiVo, which is provided for under Schedule C (Part II) attached herewith), as provided between DIRECTV and NRTC in the
Settlement. 
  
 Section 2. Role of NRTC. 
  
 (a) Master Servicer. In connection with the transactions contemplated
by the Agreement in which these Terms and Conditions have been incorporated, NRTC and DIRECTV have (i) terminated the DBS Distribution Agreement and the New DBS Distribution Agreement and (ii) agreed to enter into a Master Servicer Agreement,
pursuant to which NRTC, as master servicer to DIRECTV, will, among other things, continue to provide the Option C Members services that are materially comparable to the services that NRTC provided to the Member pursuant to the terminated Member
Agreements. 
  
 (b) Support Services. DIRECTV, shall
develop and provide to NRTC, as master servicer for DIRECTV, to enable NRTC to provide to Member, Subscriber authorization, retail billing and data reporting services in connection with the use of the DBS billing system currently in use by DIRECTV
and NRTC, or a replacement thereto that is materially comparable to the current DBS billing system procedures and features (“DIRECTV Billing System”). With respect to these support services, NRTC, as master servicer to DIRECTV,
shall (i) provide and perform all obligations necessary in connection with the DIRECTV Billing System, (ii) monitor and control all subcontractors under agreement to provide Member-specific portions of the DIRECTV Billing System, if any, and (iii)
request and manage any and all identified change orders with subcontractors for DIRECTV Billing System improvements, if any, that are Member-specific. NRTC shall provide further central office Subscriber support services and other services related
to the provisions of DBS Services as circumstances dictate. NRTC shall have the right to charge Member for any services or change orders provided specifically for it or at its request. 
  
 Section 3. Member’s Role. 
  
 (a) Marketing. Member shall, at its own expense, (i) use best efforts to promote, market and sell DBS Services to Committed Member Residences
and/or Commercial Establishments ; (ii) participate in DIRECTV-sponsored promotional and advertising campaigns and cooperate with DIRECTV in marketing tests and research, as reasonably requested by DIRECTV; (iii) respond promptly to all inquiries
about DBS Services; and (iv) use print, electronic and other media to promote the sale of DBS Services to the extent commercially practical. Member shall determine the specific timing and amount of funds expended on such promotion, marketing and
sales. 
  
 (b) Subscriber Authorization. Member shall (i)
authorize new Subscribers through the Conditional Access Management Center (“CAMC”) in accordance with procedures established by DIRECTV and NRTC and provide NRTC, as master servicer, with the Subscriber’s name, address, zip

  

 C(Part I)-3 

 code, descrambler identification and such other information as DIRECTV or NRTC may reasonably request; (ii) maintain
information regarding the location of each Subscriber’s descrambler; (iii) require all Subscribers to notify Member in the event the location of any descrambler is changed; (iv) promptly provide new descrambler location information and all
updated Subscriber information to NRTC, as master servicer; and (v) require Subscribers to agree to DIRECTV audit procedures as necessary to maintain current information regarding the location of descramblers. “Authorized
Subscriber” means any and all Subscribers that are authorized by the CAMC as of the 15th day of any given monthly accounting period to receive any and all DBS Services. 
  
 (c) Billing and Collections. Member shall utilize the DIRECTV Billing System according to procedural guidelines and
requirements established and amended by DIRECTV and NRTC from time to time and shall perform Subscriber payment processing described herein in a timely manner and on an accurate and efficient basis. Member shall, at its own expense, (i) receive and
process Subscriber orders, (ii) bill Subscribers by and through the DIRECTV Billing System (“Member Billing(s)”), (iii) perform all obligations and adhere to all standards required for use of the DIRECTV Billing System, (iv) service
Subscriber accounts, (v) keep accurate books of account covering all transactions relating to its responsibilities under the Agreement and (vi) provide DIRECTV or NRTC with such records and account information as may be reasonable requested by
DIRECTV or NRTC. Member shall collect and process Subscriber payments pursuant to Member Billings using the DIRECTV Billing System. Member shall continue to use the remittance system currently in place, except that Member may change its remittance
processing system at any time provided (1) Member gives written notice to NRTC as master servicer at least 90 days prior to Member’s requested effective date for the change and (2) DIRECTV provides written approval of such change (directly or
through NRTC as master servicer), which approval shall not be unreasonably withheld. 
  
 (d) Unauthorized Reception. Member shall take all reasonable steps required to ensure that DBS Services are not received at any unauthorized location or in any unauthorized manner. DIRECTV reserves the right to
deny access to DBS Services to Subscribers whose descramblers have been the subject of unauthorized or inappropriate use, as determined by DIRECTV. Member shall cooperate with DIRECTV and assist in implementing security measures designed to prevent
and/or respond to or remedy security breaches related to the DBS Services. 
  
 Section 4. Payment Terms. 
  
 (a)
Substantially Similar Terms. Member and DIRECTV agree that the fees and charges paid by Member hereunder shall be calculated in substantially the same manner as those fees and charges previously paid by Member to NRTC pursuant to
Member’s Existing Member Agreement. The Member shall pay for the DBS Services (including, without limitation, TT&C fees, ground service fees, authorization fees, support service fees, security service fees, system fees, royalty fees and
programming charges) at their actual costs or at the costs previously charged by DIRECTV to NRTC. In addition (and in lieu of the margin previously charged by NRTC) Member shall pay a mark-up of $4.50 per Subscriber per month, which mark-up shall be
increased annually by DIRECTV in accordance with an adjustment based on the Consumer Price Index in non-urban regions. Member shall pay any actual costs incurred by NRTC on Member’s behalf in connection with NRTC’s provision to Member of
services related to Member’s activities hereunder (e.g., communications, postage and paper) that are consistent with services previously provided by NRTC to Member. 
  
 (b) Invoices. Bills rendered by NRTC, as master servicer, to Member under the Agreement shall be due and payable to
NRTC, as master servicer, within 15 days of the date of invoice. Member shall be liable to NRTC, as master servicer, for all charges regardless of whether Member actually collects or receives payment from Subscribers. Payments are due to NRTC, as
master servicer, within 
  

 C(Part I)-4 

 fifteen (15) days of the date of the invoice or such other time period as NRTC may from time to time establish. All late
payments shall be subject to interest and service charges at NRTC’s standard rates. Should Member fail to pay in a timely manner any fees or other amounts due NRTC, as master servicer for DIRECTV, then NRTC, in such capacity, shall have the
right to offset such amounts against and to deduct such amounts from any fees or sums that may be payable to Member for the marketing or sale of the DBS Services or any services provided by NRTC in connection with the Agreement (including these
Terms and Conditions) or the Master Servicer Agreement. 
  
 (c)
Place of Payment. All payments by Member pursuant to these Terms and Conditions shall be made to NRTC, as master servicer to DIRECTV at the address provided in Section 7 in the Agreement and shall be deemed received and made only upon actual
receipt by NRTC. 
  
 (d) Suspension of Services for
Non-Payment. 
  
 (i) If NRTC does not receive full and timely
payment from Member of the fees described in this Section 4, after written notice to Member and a 10-day period to cure, DIRECTV or NRTC, as appropriate, may, in addition to the rights set forth in Section 13 of these Terms and Conditions, (A)
suspend any and all DBS Services to Member or Subscribers; (B) provide all DBS Services to and receive payment directly from Subscribers; and/or (C) commence collection procedures or judicial action, at law or in equity, to collect such sums,
damages, costs, liabilities and expenses (including, without limitation, court costs and reasonable attorneys’ fees and other third party fee(s), collectively “Expenses”). 
  
 (ii) If NRTC (A) has received full payment of fees due from Member, but does
not timely pay DIRECTV, under the Master Servicer Agreement, all or any portion of such fees that are due DIRECTV by NRTC or (B) fails to identify Member to DIRECTV as delinquent, then under the Master Servicer Agreement DIRECTV may not suspend DBS
Service to Member or Subscribers but may thereafter require Member to pay such fees directly to DIRECTV rather than to NRTC, as master servicer. 
  
 Section 5. Service Term. Unless the Agreement is cancelled, terminated, or expires earlier, the Agreement shall remain in effect during the Service Term. The
Service Term shall run from the close of business on the Closing Date until the “Termination Date,” defined as: 
  
 (a) in the event the Member selected Option C-1, June 30, 2011; 
  

(b) in the event the Member selected Option C-2, December 31, 2009; or 
  
 (c) in the event the Member selected Option C-3, the later to occur of (x) the date on which (i) the remaining fuel on board
DIRECTV-1 is less than 6% of the initial fuel mass prior to launch, including reasonable provision for uncertainty in estimation of fuel plus a credit for fuel used in the move of DIRECTV-1 to 110° W.L. and back to 101° W.L., or (ii) there
are fewer than eight (8) Transponders on DIRECTV-1 capable of meeting the transponder performance specifications of the respective Users or capable of providing Transponder Capacity that meets the Minimum Requirements; or (y) June 30, 2008.

  
 Upon the Termination Date, DIRECTV will have no further
obligations under the Agreement. 
  
 Section 6. Transition Process at End of
Service Term. 
  
 (a) Option C-1. In the event Member
has selected Option C-1 (i) Member will use commercially reasonable efforts to assure that Subscribers are transferred to DIRECTV effective as of June 30, 2011, including (A) cooperating in the transition process and (B) making information regarding

  

 C(Part I)-5 

 Subscribers available to DIRECTV; and (ii) Member cannot, during the Service Term and for a period of two years
thereafter: (A) share or sell its list of former and/or current Subscribers (or any portion there) to a multi-channel video provider other than DIRECTV; (B) (except if allowed under the Existing Member Agreement during the term thereof) market or
solicit sales for multi-channel video services or the related receiving equipment (other than (x) DIRECTV services, (y) WildBlue Services and associated equipment and (z) C-Band services and related equipment); or (C) share or sell its customer list
related to non-DBS businesses to any multi-channel video distributor, unless all former and current Subscribers are excised from such list (i.e., no then current or former (within the prior two year period) Subscriber shall be included in a list
sold to a multi-channel video distributor, even if such Subscriber is/was a customer to a non-DBS business as well). 
  
 (b) Option C-2. In the event Member has selected Option C-2, (i) Member will use commercially reasonable efforts to assure that Subscribers are
transferred to DIRECTV effective as of December 31, 2009, including (A) cooperating in the transition process and (B) making information regarding Subscribers available to DIRECTV; (ii) Member cannot, during the Service Term and for a period of two
years thereafter: (A) share or sell its list of former and/or current Subscribers (or any portion there) to a multi-channel video provider other than DIRECTV; or (B) share or sell its customer list related to non-DBS businesses to any multi-channel
video distributor, unless all former and current Subscribers are excised from such list (i.e., no then current or former (within the prior two year period) Subscriber shall be included in a list sold to a multi-channel video distributor, even if
such Subscriber is/was a customer to a non-DBS business as well); and (iii) the Member cannot during the Service Term of the Agreement (except if allowed under the Existing Member Agreement) market or solicit sales for multi-channel video services
or the related receiving equipment (other than (x) DIRECTV services, (y) WildBlue Services and associated equipment and (z) C-Band services and related equipment). 
  
 (c) Option C-1 Transition Payment. In the event Member has selected Option C-1, (i) Member will use commercially
reasonable efforts to ensure Subscribers are transferred to DIRECTV effective as of June 30, 2011, including (A) cooperating in the transfer process and (B) making information regarding Subscribers available to DIRECTV and (ii) DIRECTV will pass on
to Member through NRTC, as master servicer, promptly after final settlement between DIRECTV and Member of any amounts then owing by Member to DIRECTV, a payment in the amount of $150 per Subscriber of Member successfully transferred to DIRECTV at
June 30, 2011, provided that such transferred Subscribers meet a reasonable aging period of no greater than 45 days past due, and subject to a chargeback if any such Subscribers acquired in the prior six (6) months churn within 90 days after
transfer to DIRECTV. 
  
 Section 7. Indemnification. 
  
 (a) Member shall indemnify and hold harmless DIRECTV, NRTC and their
respective affiliated companies, officers, directors, employees and agents and NRTC’s other members and affiliates from and against any and all liabilities, claims, costs, damages and Expenses arising out of any breach or claimed breach of any
representations, warranties or obligations of Member pursuant to the Agreement, including these Terms and Conditions. 
  
 (b) Member shall indemnify and hold harmless DIRECTV and NRTC and their respective affiliated companies, officers, directors, employees and agents, and
NRTC’s other members and affiliates, from and against any and all liabilities, claims, costs, damages and Expenses arising out of NRTC or DIRECTV not commencing, ceasing, suspending or terminating the provision of DBS Services because Member
failed to make full or timely payment of any and all amounts due and owing from Member to DIRECTV, or to NRTC as master servicer, or otherwise materially breached the Agreement. 
  

 C(Part I)-6 

 (c) If DIRECTV determines that its provision of any programming violates any applicable laws, DIRECTV may
cease providing such programming to Member. Member agrees that DIRECTV or program providers may change, black-out, terminate or disconnect, at any time any Cable Programming being delivered. DIRECTV reserves the right with the exercise of good faith
and reasonable business judgment, to substitute or to change programming or modify the terms and conditions related to the programming offered. In such event, DIRECTV shall use reasonable best efforts to obtain and provide Member alternate
programming. Member shall indemnify and hold harmless NRTC, its other Members, DIRECTV and their respective affiliated companies, officers, directors, employees and agents from and against any and all liabilities, claims, costs, damages and Expenses
caused by or resulting from the content of the Cable Programming or the cessation of any DBS Services. 
  
 (d) Member understands and agrees that DIRECTV may deliberately preempt or interrupt the use of all or a portion of DBS Services in unusual or abnormal
situations to protect the overall performance of the satellite and shall indemnify and hold harmless NRTC and DIRECTV, and their affiliated companies, officers, directors, employees and agents from and against any and all liabilities, claims, costs,
damages and Expenses resulting from such cessation of any DBS Services. 
  
 Section 8. Trademarks and Logos. Member may use NRTC’s or DIRECTV’s trademarks, service marks or logos only in accordance with any licensing arrangements established respectively by NRTC or DIRECTV, as appropriate. DIRECTV
also may make available approved promotional materials with the names, trademarks and/or logos of DIRECTV or the programming providers for Member’s use in marketing, advertising or promotion of DBS Services or DIRECTV services in accordance
with guidelines furnished by DIRECTV. Member may not otherwise use any trademark, servicemark or logo of NRTC, DIRECTV or any programming providers in any promotional, marketing or advertising materials without the permission of the owner of same.
Member shall contact DIRECTV to obtain permission from DIRECTV or the programming providers when necessary and for any information and assistance pertaining to DIRECTV or the programming providers. 
  
 Section 9. Availability of Information and Certificate of
Compliance. 
  
 (a) Statements. Member shall provide
within 30 days of a request by DIRECTV or NRTC a statement, certified by an appropriate officer of Member or an independent billing service, setting forth the number of Subscribers receiving DBS Services during the month specified in such request
and stating to the best of the officer’s knowledge that DBS Services were provided and distributed during such month in full compliance with all of the provisions of the Agreement. At DIRECTV’s or NRTC’s request, Member shall permit
DIRECTV, NRTC (as master servicer) or their representatives at reasonable times during normal business hours (or at any time if Member is in default or breach of the Agreement) to review during the term of the Agreement and for one (1) year
thereafter, its Subscriber accounting system. 
  
 (b) Accuracy
of Information. If requested by DIRECTV or NRTC, Member shall within ninety (90) days following the end of Member’s fiscal year, during any portion of which the Agreement is in effect, provide a letter addressed to DIRECTV signed by an
appropriate officer of Member which attests to the completeness and accuracy of all information supplied to DIRECTV by Member during the preceding fiscal year. Member’s obligation to supply letters of attestation shall continue after the
termination of the Agreement until DIRECTV receives the letter with respect to the last fiscal year during any portion of which the Agreement is in effect. 
  
 Section 10. Outage Credits. In the event of the occurrence of outages in portions of DBS Services, DIRECTV is required to provide (through NRTC, as master
servicer) certain credits to be applied toward fees for future services, to be made available to Member on a prorated basis in consideration of the amount of such credits and the number of NRTC members and affiliates entitled to receive a proration
of such credits. 
  

 C(Part I)-7 

 Section 11. DIRECTV Sale. 
  
 (a) DIRECTV is required to provide to Member (through NRTC, as master
servicer) five percent (5%) of the Net Proceeds from any DIRECTV Sale. The terms (a) “DIRECTV Sale” shall mean any sale or lease by DIRECTV of any HCG Frequencies or associated Transponder on either of the initial two DBS Satellites
(i.e., DIRECTV-1 or DIRECTV-2) other than those delivering Cable Programming and (b) “Net Proceeds” shall mean the proceeds net of all DIRECTV expenses associated with a DIRECTV Sale. DIRECTV shall pay Member (through NRTC, as
master servicer), a portion of 5% of all Net Proceeds it receives, prorated in consideration of the amount of the Net Proceeds, the amount of Member’s Committed Member Payment and the amount of all Committed Member Payments previously paid by
NRTC members and affiliates. Member recognizes that Net Proceeds, if any, shall not include interest. DIRECTV sale-leasebacks (or the like), public offerings or stock offerings, inter-Affiliate transfers or restructures or other DIRECTV sales or
leases in which the Member continues to retain the distribution rights to Programming transmitted over the capacity are specifically excluded from the definition of a DIRECTV Sale. For purposes of Section 13 of these Terms and Conditions, the term
“refunds” as used therein shall include Net Proceeds, if applicable. 
  
 (b) For purposes of these Terms and Conditions, “Committed Member Payment(s)” shall mean the one-time payments to NRTC (forwarded in aggregate to DIRECTV), previously made by members and affiliates of
NRTC in connection with the execution of the original NRTC/Member Agreements for Marketing and Distribution of DBS Services, in consideration for the acquisition of rights to distribute certain DIRECTV services in the territories identified in such
agreements. 
  
 Section 12. Termination of Master Servicer Agreement. In
the event the Master Servicer Agreement is terminated, except as provided in Section 14, DIRECTV may terminate the Agreement (including these Terms and Conditions) and neither party shall have any further obligations regarding the other except as
specifically provided in the Agreement. 
  
 Section 13. Breach by Member.
If Member fails to make any and all payments due to NRTC, as master servicer, under the Agreement, or otherwise breaches or fails to perform a material obligation under the Agreement, then, in addition to any other remedies available at law or in
equity, DIRECTV or NRTC, as appropriate, may in its sole discretion and upon thirty (30) days written notice to Member, including therein a ten (10) day period for Member to cure, (i) suspend all DBS Services to Member and/or Subscribers; (ii)
terminate the Agreement; and (iii) bring an action for and immediately declare due and payable all sums due and owing to NRTC or DIRECTV. In addition, if DIRECTV has suspended any and all of the DBS Services to Member and/or Subscribers for sixty
(60) or more days under Section 4(d) of these Terms and Conditions, then DIRECTV may terminate the Agreement immediately upon notice to Member, and DIRECTV may bring an action at law or in equity to collect from Member the sums due under Section 4
to NRTC, as master servicer, and the liabilities, costs, damages and Expenses associated therewith. In the event of a termination under this Section, neither NRTC nor DIRECTV shall be responsible or liable to provide any DBS Services to Member or
Subscribers; nor shall NRTC, as master servicer or otherwise, or DIRECTV be responsible or liable to Member or others for any damages, costs or Expenses arising therefrom; nor shall NRTC or DIRECTV owe or be required to provide Member any refund or
amounts previously paid to NRTC, as master servicer or otherwise, or DIRECTV by Member. Upon such termination, Member shall have no further right to provide DBS Services to any Subscribers and DBS Services may be provided to the Subscribers directly
by DIRECTV or another distributor as DIRECTV may appoint. 
  

 C(Part I)-8 

 Section 14. NRTC Breach of Master Servicer Agreement. If the Master Servicer Agreement is terminated or cancelled
as a result of a default or breach by NRTC, DIRECTV is obligated to NRTC under the Master Servicer Agreement to continue to provide DBS Services directly to Member (subject to Section 4(d) hereof) either, at DIRECTV’s option, (i) under the
Agreement or (ii) under a new agreement containing substantially the same terms or terms no less favorable than those provided Member under the Agreement. 
  
 Section 15. LIMITATION OF LIABILITY. NOTWITHSTANDING ANY OTHER PROVISIONS IN THE AGREEMENT TO THE CONTRARY, NEITHER DIRECTV NOR NRTC SHALL BE LIABLE TO MEMBER FOR
ANY INDIRECT, CONSEQUENTIAL OR INCIDENTAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF REVENUE, LOSS OF CUSTOMERS OR CLIENTS, CLAIMS OF CUSTOMERS, LOSS OF GOODWILL OR LOSS OF PROFITS OR MARGINS, ARISING IN ANY MANNER FROM THE AGREEMENT AND THE
PERFORMANCE OR NON-PERFORMANCE OF ITS OBLIGATIONS. ANY AND ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE OR USE, ARE EXPRESSLY EXCLUDED AND DISCLAIMED BY DIRECTV AND NRTC
EXCEPT TO THE EXTENT SPECIFICALLY AND EXPRESSLY PROVIDED FOR HEREIN. IT EXPRESSLY IS AGREED THAT DIRECTV’S AND/OR NRTC’S SOLE OBLIGATIONS AND LIABILITIES RESULTING FROM A BREACH OF THE AGREEMENT, AND MEMBER’S EXCLUSIVE REMEDIES FOR
ANY CAUSE WHATSOEVER (INCLUDING, WITHOUT LIMITATION, LIABILITY ARISING FROM NEGLIGENCE), ARISING OUT OF OR RELATING TO THE AGREEMENT AND/OR THE TRANSACTIONS CONTEMPLATED HEREIN, ARE THOSE SET FORTH IN SECTIONS 10 AND 16 OF THESE TERMS AND CONDITIONS
AND ALL OTHER REMEDIES OF ANY KIND ARE EXPRESSLY EXCLUDED. 
  
 Section 16.
Injunctive Relief. DIRECTV and Member each shall have the right to obtain injunctive relief, if necessary, in order to prevent the other party from willfully breaching its obligations under the Agreement or to compel the other party to
perform its obligations under the Agreement. NRTC shall also have the right to obtain such injunctive relief with respect to Member. If either party should bring an action against the other in order to enforce any provision of the Agreement, the
prevailing party shall be entitled to recover its reasonable attorneys fees and costs in addition to any other remedy it may have. 
  
 Section 17. Force Majeure. Any failure or delay of performance shall not be deemed a breach of the Agreement by DIRECTV if such failure or delay results from any
acts of God, labor dispute, breakdown of facilities, failure of equipment, mechanical failure, weather, fire, flood, legal enactment, government order or regulation, any act or omissions of Member or any similar cause beyond the reasonable control
of DIRECTV. Nothing in this Section shall be deemed to limit Member’s rights to receive any outage credits, if applicable, pursuant to Section 10 of these Terms and Conditions. 
  
 Section 18. Assignment and Transfer. Member shall not assign or transfer, directly or indirectly, in whole or in part, its rights or
obligations under the Agreement without the prior written consent of DIRECTV, which consent shall not be unreasonably withheld. 
  
 Section 19. Confidentiality. 
  
 (a) General. DIRECTV and Member shall hold in confidence all provisions of the Agreement and all information provided by either party to the other
in connection with the Agreement. DIRECTV and Member acknowledge and agree that all information related to the Agreement, not otherwise known to the public, is confidential and proprietary and is not to be disclosed to third persons (other than to
affiliates, officers, directors, employees and agents of DIRECTV and Member, each of whom is bound by this provision) without the prior written consent of both Member and DIRECTV 
  

 C(Part I)-9 

 except (i) at the written direction of the other party; (ii) to the extent necessary to comply with law or valid order of
a court of competent jurisdiction, in which event the party shall notify the other party as promptly as practicable (and, if possible, prior to making any disclosure) and shall seek confidential treatment of the information; (iii) as part of its
normal reporting or review procedures to its parent company, its auditors and its attorneys who agree to be bound by this Section; (iv) in order to enforce any rights pursuant to the Agreement; (v) in order to comply with the provisions of any
programming agreements or copyright licensing requirements; (vi) to obtain appropriate insurance, provided the insurance company agrees in writing to be bound by this Section; (vii) to obtain financing, provided that any person or entity providing
financing agrees in writing to be bound by this Section; (viii) to obtain programming services; (ix) and to the extent DIRECTV may be permitted or required to disclose information or provide the Agreement to NRTC under the Master Servicer Agreement.

  
 (b) Subscriber Information. DIRECTV acknowledges that
Member has substantial proprietary interests and rights to Subscriber information and agrees to maintain all Subscriber information on a strictly confidential basis. DIRECTV and Member each further covenant that except as provided in Section 4(d)
and Section 13 of these Terms and Conditions under no circumstances will it use or allow others to use the Subscriber information for any reason other than to verify amounts due under these Terms and Conditions and for purposes as are approved in
advance and in writing by the other party. In the event DIRECTV distributes Non-Select Services to a Subscriber, DIRECTV and Member recognize that DIRECTV shall not be subject to the foregoing covenant with respect to such Subscriber’s
information regarding the Non-Select Services. 
  
 (c)
Confidentiality Survival. All provisions relating to the confidentiality of information shall survive the termination, expiration, cancellation or rescission of the Agreement for a period of five (5) years. 
  
 Section 20. Taxes. Member shall be responsible for and shall pay all applicable
property, sales, use or similar taxes imposed by any local, state, national or international, public or quasi-public governmental entity, in respect to Member’s marketing, sale, distribution or other activities related to DBS Services.

  

 C(Part I)-10 

 EXHIBIT Z TO SCHEDULE C (PART I) 
  
 STARZ! East 
  
 STARZ! West 
  
 STARZ! Theater East 
  
 BLACK STARZ! 
  
 A Taste of Spice (Adult)

  
 PLAYBOY TV (Adult) 
  
 Spice Platinum (Adult) 
  
 The Hot Network (Adult) 
  
 The Hot Zone (Adult) 
  

 C(Part I)-11 

 SCHEDULE C (PART II) TO MEMBER OFFER AGREEMENT 
  
 Additional Agreed Upon Terms and Conditions re: Seamless Consumer
Program Applicable to Members Selecting Option C-1, Option C-2 or Option C-3 
  
 The Terms and Conditions set forth in this Schedule C (Part II) are applicable in the event that the Member has selected Option C-1, Option C-2 or Option C-3 in the Member Offer Agreement (the
“Agreement”) to which this Schedule C (Part II) is attached and are incorporated into such Agreement in accordance with the terms thereof. If the Member selects any of Option C-1, Option C-2 or Option C-3, these provisions
will become effective upon the Closing Date specified in Section 2 of the Agreement into which these Terms and Conditions are incorporated, which Closing Date may vary depending upon when an executed copy of the Agreement is delivered by the
Member to NRTC, as master servicer for DIRECTV, in accordance with the delivery instructions set forth in Section 7 of the Agreement. Capitalized terms not otherwise defined herein have the meaning given such terms in the Agreement.

  
 A. Element One: Non-Exclusive Sales
Agent. 
  
 1. Scope. DIRECTV hereby authorizes the
Member to act as a non-exclusive (subject to the terms hereof) sales agent in all territories in which the Member has acquired rights to distribute the DBS Services (the “Member Territories”) for (a) the premium movie video
programming services distributed by DIRECTV on the frequencies of 24, 26, 28, 30 and 32 (the “non-HCG Frequencies”) at 101° W.L. (the “Former USSB Services”), (b) the local network video programming services
distributed by DIRECTV on the non-HCG Frequencies at 101° W.L., and at the 110° W.L., 119° W.L. and 72.5° W.L. orbital locations (the “Local Services”), (c) those sports pay per view events (if any) distributed by
DIRECTV on the non-HCG Frequencies at 101° W.L. (the “Added Events”), (d) the high definition programming services distributed by DIRECTV at the 110° W.L. and 119° W.L. orbital locations (the “HD
Programming”), (e) the DIRECTV DVR®
subscription services distributed by DIRECTV in conjunction with TiVo, Inc. (the “TiVo Services”), (f) the DIRECTV PARA TODOSTM programming services distributed by DIRECTV at the 119° W.L. orbital location (the “PARA TODOS Services”), and (g) DIRECTV-The
Guide (the “Programming Guide”), and together with the Former USSB Services, Local Services, Added Events, HD Programming, TiVo Services and PARA TODOS Services, the “Added Services”). In its role as sales agent,
the Member shall be responsible for providing, at its sole cost, all billing, customer care and sales and marketing activities with respect to the delivery of such Added Services to customers in the Member Territories. 
  
 (a) TiVo Services and HD Programming Customers Care Escalation
Procedures. Member acknowledges that customer care for the TiVo Services and/or HD Programming may require additional training, expertise and call time, all of which shall be undertaken at Member’s sole cost. DIRECTV shall provide (directly
or through NRTC as master servicer), at no cost to Member, samples of training materials, as updated from time to time, utilized by DIRECTV in its delivery of customer care for the TiVo Services and HD Programming. Member shall take appropriate
actions to ensure that its customer agents have appropriate training and processes in place to handle the additional customer care responsibilities associated with the TiVo Services and HD Programming. In those cases where, despite such efforts by
Member, a technical question is presented by a customer that Member’s agents are not able to answer, Member will have in place escalation processes to route such call to NRTC’s corporate offices. If, after good faith efforts, NRTC’s
corporate offices are unable to answer such inquiry, then such offices shall request assistance from DIRECTV’s technical assistance desk (pursuant to procedures mutually agreed upon by NRTC and DIRECTV), and DIRECTV’s technical assistance
desk shall use reasonable efforts to provide to NRTC technical assistance with the same level of care and responsiveness as DIRECTV provides to its own customer care agents. NRTC, as master servicer, shall in turn provide such assistance to Member.
In no event shall Member direct customers or Member’s customer service representatives to contact DIRECTV’s technical assistance desk directly. 

 2. As consideration for Member’s activities as a sales agent, Member shall be entitled to receive
the following amounts (the “Revenue Share”): 
  
 (a) Former USSB Services: The Revenue Share during any billing cycle shall be the greater of (a) 15% of the gross revenue collected from Member customers with respect to Former USSB Services provided to such customers during that
billing cycle, and (b) 10% of the gross revenue collected from Member customers with respect to Former USSB Services provided to such customers during that billing cycle, plus an additional 1% of gross revenue collected for every incremental four
percentage points by which the Service Penetration Rate (as calculated below) of Former USSB Services in the territory of all Option C Members (the “Option C Territory”) customer base exceeds the Services Penetration Rate for the
calendar month ending on June 30, 2000 (such rate, as calculated in accordance with the methodology previously agreed upon and implemented by DIRECTV and NRTC, the “Base Service Penetration Rate”), up to an aggregate maximum
percentage of total gross collected revenue of 20%. The Revenue Share for any billing cycle shall be based on the Service Penetration Rate for such billing cycle. The Service Penetration Rate shall be calculated by dividing the total number of
Service Units purchased by all Option C Territory residential customers by the total number of Option C Territory residential customer counts). One Service Unit shall be counted for each of the following sets of services purchased by an Option C
Territory customer in accordance with the provisions of the Agreement (or the agreement of such other Option C Member(s), as applicable): (i) the entire set of HBO services, consisting of “HBO Works” (five services) plus “HBO
Family” (two services) plus, solely in the case of DIRECTV PARA TODOS customers, HBO Latino; (ii) the entire “Multimax” set of Cinemax services (three services); and (iii) the entire “Showtime Unlimited” set of services
(five Showtime services, The Movie Channel, one FLIX channel and Sundance Channel). Customers receiving free promotions of Former USSB Services shall not be included as purchasers of such services when calculating the Service Penetration Rate.
Member shall (in coordination with NRTC, as master servicer) calculate on a monthly basis, the Service Penetration Rate using methodologies and assumptions which are consistent with those used in the calculation for the Base Service Penetration
Rate. 
  

	 	(i)	The gross revenue collected with respect to the Former USSB Services shall be calculated based upon the price of the Former USSB Services as specified on Attachment One, as amended
in writing from time to time, and Member shall be authorized to sell Former USSB Services only at those prices, and in those a la carte and package configurations, identified in such Attachment. As of the date of the Agreement, the pricing and
packaging of the Former USSB Services is as set forth in Attachment One, attached hereto and hereby incorporated by reference. DIRECTV shall not amend Attachment One except to reflect equivalent changes in packages and pricing as are implemented by
DIRECTV in DIRECTV territory. Notwithstanding the foregoing, in the event DIRECTV provides a programming offer in DIRECTV territory that involves free or reduced prices for a limited period of time with respect to the Former USSB Services (an
“Offer”), then Member shall make such same Offer regarding Former USSB Services to its customers, and, with respect to customers receiving the Offer, throughout the term of the Offer, (y) the gross revenue collected with respect to
Former USSB Services shall be calculated based upon such free and reduced price set forth in the Offer, and (z) such customers shall not be included in the Service Penetration Rate during the term of such Offer. 

  

 C(Part II)-2 

	 	(ii)	DIRECTV agrees that throughout the Term of the Agreement, it shall continue to allow Member to offer and sell the Former USSB Services in a la carte offerings (as identified by
DIRECTV), subject to any restraints or restrictions by the programming providers thereof. DIRECTV shall promptly notify Member in writing (directly or through NRTC as master servicer) of any changes in such restraints or restrictions.

  

	 	(iii)	Member shall provide NRTC access to such information as is sufficient to permit NRTC as master servicer to deliver to DIRECTV, on a monthly basis, detailed documentation setting
forth the calculation of the applicable Revenue Share rate, the number of Service Units for the applicable billing cycle, and the Service Penetration Rate. 

  

	 	(iv)	The Parties shall work together, along with NRTC, to provide to each other the necessary information for purposes of the foregoing calculations, including information regarding the
rate of purchase of each of the respective packages and a la carte offerings of Former USSB Services. 

  

	 	(v)	For purposes of clarification, those high definition services that are delivered at the 110° W.L. and 119° W.L. orbital locations and offered by DIRECTV solely as part of a
package that otherwise includes only Former USSB Services shall be treated for purposes of all Revenue Share calculations as Former USSB Services, and not as HD Programming. 

  
 (b) Local Services: The Revenue Share for Local Services during any billing cycle shall be the greater of (a) 15% of
the gross revenue collected from Member Territory customers with respect to Local Services provided to customers during that billing cycle, and (b) 10% of the gross revenue collected from Member Territory customers with respect to Local Services
provided to customers during that billing cycle, plus an additional 1% of such gross revenue collected for every two percentage points by which the Local Markets Penetration Rate (as calculated below) exceeds 40%, up to an aggregate maximum
percentage of total gross collected revenue of 20%. The Revenue Share for any billing cycle shall be based on the Local Markets Penetration Rate for such billing cycle. The Local Markets Penetration Rate shall be calculated by dividing the number of
Option C Territory residential customers in the relevant DMA purchasing Local Services in accordance with the provisions of the Agreement (or the agreement of such other Option C Member(s), as applicable) by the total number of Option C Territory
residential customers in the relevant DMA for whom Local Services are available (calculated by averaging the beginning and billing cycle-end applicable residential customer counts). Member shall be authorized to sell the Local Services only at those
prices, and in those a la carte and package configurations (if any), as are offered by DIRECTV in DIRECTV territory and confirmed in writing to Member (directly or though NRTC as master servicer) by DIRECTV. The gross revenue collected with respect
to the Local Services shall be calculated based upon the price of the Local Services for the particular service offering selected by each individual customer, or, in the case of an authorized package that contains the Local Services as well as other
services, the DIRECTV authorized incremental price of the Local Services offering that is contained in such combined package. For example, if DIRECTV authorizes a package combining the Total Choice package (containing services that are delivered
from the 101° W.L. orbital location, and thus are not considered part of the Local Services revenue share calculation) and the Local Services, at a combined price that is $3.00 more than the price of the Total Choice package sold separately,
then Member shall offer such combined package at a price that reflects the incremental $3.00 price from its standard Total Choice package price, and the gross revenue share for the Local Services when sold as part of such combined package shall be
calculated as $3.00. 
  

 C(Part II)-3 

 (c) Additional Events and HD Programming: The Revenue Share with respect to each of the Added
Events and HD Programming shall be 15% of the gross revenue collected from Member Territory customers with respect to such Added Events and HD Programming, respectively. The gross revenue collected with respect to the Added Events and HD Programming
shall be calculated based upon the price of the Added Events or HD Programming, as applicable, for the particular service offering selected by each individual customer. Member shall be authorized to sell the Added Events and HD Programming only at
those prices as are offered by DIRECTV in DIRECTV territory and confirmed in writing to Member by DIRECTV (directly or through NRTC as master servicer). 
  
 (d) TiVo Services: The Revenue Share for TiVo Services shall be 15% of the gross revenue collected from Member Territory customers with respect to
TiVo Services provided to such customers during that billing cycle, plus an additional 1% of gross revenue collected for every incremental percentage point by which the Service Penetration Rate (as calculated below) to TiVo Services in the Option C
Territory customer base exceeds the Base Service Penetration Rate, as defined below, up to an aggregate maximum percentage of total gross collected revenue of 20%. The “Base Service Penetration Rate” for TiVo Services shall equal
the penetration rate experienced by DIRECTV with respect to the TiVo Services in DIRECTV territory during the preceding calendar quarter, as notified by DIRECTV to Member (directly or through NRTC as master servicer) from time to time. The Revenue
Share for any billing cycle shall be based on the Service Penetration Rate for such billing cycle. The Service Penetration Rate shall be calculated by dividing the number of Option C Territory residential customers purchasing TiVo Services in
accordance with the provisions of the Agreement (or the agreement of such other Option C Member(s), as applicable) by the total number of Option C Territory residential customers (calculated by averaging the beginning and billing cycle-end
applicable residential customer counts). The gross revenue collected with respect to the TiVo Services shall be calculated based upon the price of the TiVo Services for the particular service offering selected by each individual customer, or, in the
case of an authorized package that contains the TiVo Services as well as other services, the price of the TiVo Service offering that is contained in such combined package (i.e., $4.99 or the then-current price for the TiVo Service offering, except
in the case of an authorized package also containing Total Choice Premier, as to which the TiVo Services price is zero ($0)). Member shall be authorized to sell the TiVo Services only at those prices, and in those a la carte and package
configurations (if any), as are offered by DIRECTV in DIRECTV territory and confirmed in writing to Member by DIRECTV. The current prices and package confirmations for the TiVo Services are set forth on Attachment Two, attached hereto and hereby
incorporated by reference. 
  
 (e) PARA TODOS Services: The
Revenue Share for PARA TODOS services shall be 15% of the gross revenue collected from Member Territory customers with respect to PARA TODOS Services provided to such customers during that billing cycle, plus an additional 1% of gross revenue
collected for every incremental 0.4 percentage points by which the Service Penetration Rate (as calculated below) of PARA TODOS Services in the Option C Territory customer base exceeds 4.0% up to an aggregate maximum percentage of total gross
collected revenue of 20%. The Revenue Share for any billing cycle shall be based on the Service Penetration Rate for such billing cycle. The Service Penetration Rate shall be calculated by dividing the number of Option C Territory residential
customers purchasing PARA TODOS Services in accordance with the provisions of the Agreement (or the agreement of such other Option C Member(s), as applicable) by the total number of Option C Territory residential customers (calculated by averaging
the beginning and billing cycle-end applicable residential customer counts). Member shall be authorized to sell the PARA TODOS Services only at those prices, and in those a la carte and package configurations (if any), as are offered by DIRECTV in
DIRECTV territory and confirmed in writing to Member by DIRECTV (directly or through NRTC as master servicer). The current prices and package configurations for the PARA TODOS Services are set forth on Attachment Three, attached hereto and hereby
incorporated by reference. The gross revenue collected 
  

 C(Part II)-4 

 with respect to the PARA TODOS Services shall be calculated based upon the price of the PARA TODOS offering, or, in the
case of an authorized package that contains the PARA TODOS Services as well as other services that are delivered from the 101° W.L. orbital location (and thus are not considered part of the PARA TODOS Services revenue share calculation), the
gross revenue collected with respect to the PARA TODOS Services shall be calculated as 20% of the authorized price of the combined package. 
  
 (f) Payment Mechanics: Member shall, no later than seven business days after the billing system accounting close for each month, pay to DIRECTV
through NRTC as master servicer the Billed Added Service Revenues minus the Adjustment Amount. The “Billed Added Service Revenues” shall consist of the gross revenues billed by Member in the prior billing cycle for Added Services
delivered to Member customers, less the applicable Revenue Share. The “Adjustment Amount” shall be the product of the amount paid in the prior billing cycle as Billed Added Service Revenues times the Member bad debt rate for the
prior billing cycle. Member shall, working with NRTC as master servicer, provide supporting documentation with each such payment, identifying the calculation of the Billed Added Service Revenues, Service Penetration Rate, Revenue Share, Member bad
debt rate and Adjustment Amount, as well as such further information as is reasonably requested, including a breakdown of the purchase rate of Local Services by DMA. 
  

	 	(i)	The Member bad debt rate shall be the actual bad debt rate experienced by Member with respect to all of the DIRECTV services offered by Member. 

  

	 	(ii)	DIRECTV shall use good faith efforts (and Member shall cooperate with DIRECTV in such efforts) to ensure that a report is created and provided to Member (directly or through NRTC as
master servicer) on a monthly basis containing such information as is necessary to allow NRTC and Member to calculate the Billed Added Service Revenues. 

  
 (g) Programming Guide: Member agrees to use commercially reasonable efforts to market the Programming Guide to
customers in Member Territories. 
  

	 	(i)	The price for the Programming Guide shall be the current price charged by DIRECTV in DIRECTV territory, as notified by DIRECTV (directly or through NRTC as master servicer) to
Member from time to time (the “Current Price”). The Current Price for the Programming Guide as of the date of the Agreement is set forth on Attachment Four, attached hereto and hereby incorporated by reference. In the event DIRECTV
provides a Programming Guide offer in DIRECTV territory that involves free or reduced prices for the Programming Guide (a “Programming Guide Offer”), then Member shall make such same Programming Guide Offer available to its
customers and, with respect to customers receiving the Offer, throughout the term of the Offer, the Current Price charged to Member pursuant to the calculation below with respect to the Programming Guide shall be calculated based upon such free or
reduced price set forth in the Programming Guide Offer. 

  

	 	(ii)	The calculation of Billed Added Service Revenues in Section B.2.f shall not include the revenue from the Programming Guide, and in lieu thereof, the provisions of this Section
B.2.g(ii) shall apply. Member shall retain the Revenue Share for the Programming Guide, to be calculated as the gross amount of Programming Guide revenues received by Member, less the Programming Guide Billings for the Programming Guide, as
calculated below. DIRECTV shall bill Member for, and Member shall pay to DIRECTV through NRTC as master 

  

 C(Part II)-5 

 servicer, the Programming Guide Billings for the Programming Guide on a monthly billing cycle basis,
based upon the number of Programming Guides mailed to customers in Member Territories during such period, as set forth below: 
  
 DIRECTV-The Guide Programming Guide Billings = 
  

Number of DIRECTV-The Guide Programming Guides mailed in Member Territory times 75% times the Current Price of DIRECTV-The Guide. 
  
 Member shall subtract from each payment of Programming Guide Billings an
adjustment amount, calculated as the product of the amount paid in the prior month as Programming Guide Billings times the Member bad debt rate for the prior billing cycle (as calculated in accordance with Section B.2.f). 
  

	 	(iii)	If requested by Member, the Parties shall discuss in good faith increasing Member’s applicable revenue share percentage (currently 25% pursuant to the calculation above) in
exchange for increased marketing efforts and sales of the Programming Guide. In addition, if requested by Member, the Parties shall discuss in good faith the customization of the Programming Guide for Member Territory, with either Member paying the
costs of such customization or a corresponding decrease in Member revenue share percentage to reflect the increased cost of such customization. 

  

	 	(iv)	Generation of the mailing list of the Programming Guides will take place in the same manner as previously undertaken by DIRECTV and NRTC with respect to DIRECTV-The Guide; DIRECTV,
or its agent, will on a weekly basis extract from the billing system the list of applicable DIRECTV Programming Guide customers who shall receive a Programming Guide, and shall forward the information to the appropriate entity for fulfillment.

  

	 	(v)	DIRECTV agrees that the use or sharing by DIRECTV of any Member subscriber information as set forth in Sections B.2.g (iv) above shall be undertaken solely to the extent necessary
to facilitate the distribution of the Programming Guides and to comply with the terms of DIRECTV’s agreement with the publisher of the Programming Guide. 

  

	 	(vi)	DIRECTV will provide Member (directly or though NRTC as master servicer), without charge to Member, free copies of the Programming Guide to be distributed to Member customer service
agents. 

  

	 	(vii)	In addition to the other termination provisions of the Agreement, the terms of the Agreement as they apply to the Programming Guide shall terminate, in the event of termination of
the agreement between DIRECTV and the publisher of the Programming Guide. 

  
 3. Member and DIRECTV acknowledge that it is their intent in undertaking this Element One to offer customers in their respective territories as little difference or disruption between the territory lines as possible.
Accordingly, both Member and DIRECTV agree to discuss in advance any proposed 
  

 C(Part II)-6 

 price changes for the video programming services and packages that are not part of the Added Services. Any such
information regarding possible pricing changes shall be treated as confidential information under the Agreement. 
  
 4. Member sales and marketing tactics shall comply with any contractual restrictions or requirements included in the Sales Agency Agreement between The
DIRECTV Group, Inc., (formerly Hughes Electronics Corporation) and DIRECTV (including the programming agreement requirements, as referenced therein, and including only such amendments as may occur from time to time to reflect changes in agreements
between The DIRECTV Group, Inc. and the applicable programmers), as identified in writing by DIRECTV. 
  
 5. In the event of a termination or the anticipated expiration of the Agreement, during a transition period mutually agreed upon by the Parties, the
Parties will work together in good faith to ensure a smooth transition of the customer accounts for Added Services back to DIRECTV for billing and customer care, and each Party agrees to take such actions as reasonably requested to minimize the
level of customer inquiries and problems related to such transition. During such transition period, (i) Member shall continue to bill and collect for, and shall provide customer service with respect to, and act as a nonexclusive sales agent for the
Added Services delivered to customers in Member Territories in accordance with the terms of the Agreement, and (ii) Member shall continue to earn the Revenue Share with respect to amounts billed during such transition period, provided, however, if
the termination of the Agreement was initiated by Member, then the Revenue Share shall be reduced to 15% for all Added Services (regardless of penetration rates) during such transition period. With respect to amounts billed but not yet collected by
the end of the transition period, Member shall continue to collect such amounts in good faith, following Member’s standard collection policies, forwarding the collected amounts (less the applicable Revenue Share) to NRTC as master servicer for
DIRECTV. The provisions of this Paragraph shall survive the termination of the Agreement. 
  
 6. DIRECTV agrees that, during the term of the Agreement, DIRECTV shall not, directly or indirectly, bill for or activate the Added Services for customers in Member Territories, except as otherwise contemplated
pursuant to the transition provisions set forth herein. Notwithstanding the foregoing, Member acknowledges that DIRECTV may inadvertently bill for certain Added Services to customers in Member Territories. The Parties will work together to minimize
such circumstances. 
  
 B. Element Two; Non-Select Sports Programming.
Member shall continue to receive, with respect to sports league programming that qualifies as Non-Select Services (as defined in the DBS Distribution Agreement), a 10% revenue share. 
  
 C. Other Terms. 
  
 1. The Terms and Conditions set forth in this Schedule C (Part II) shall commence on the Closing Date and shall continue
through the Service Term; provided that either Party shall be entitled to terminate the Terms and Conditions set forth in this Schedule C (Part II), upon 30 days written notice, in the event of a breach of a material obligation hereof by the other
Party, which breach remains uncured at the expiration of such 30 day period. 
  
 Upon termination of the Agreement, all rights and obligations of the Parties set forth in the Terms and Conditions contained in this Schedule C (Part II) Agreement shall terminate, except as specifically
provided in the Agreement. This Section C of these Terms and Conditions shall survive any termination of the Agreement. 
  

 C(Part II)-7 

 2. During the Term, and for a period of six months thereafter, DIRECTV may, upon reasonable advance
notice of at least thirty (30) days to Member, audit books and records of Member relating to the invoices and reports under the Agreement as reasonably necessary to verify the payments made under this Schedule C (Part II), provided, however,
that (a) such audit shall be at DIRECTV’s sole cost and expense, (b) DIRECTV may not audit more than once per year during the Term and once after the expiration of the Term (and no such audit shall continue for more than thirty (30) business
days from the date DIRECTV has access to the applicable records) and (c) any such audit shall be conducted only during regular business hours and in such a manner as to not unreasonably interfere with the normal business activities of Member.

  
 3. In the event of any dispute regarding amounts owed by a
Party hereunder, the paying Party shall continue to pay, at a minimum, all undisputed amounts in accordance with the timeframe described herein. 
  
 4. In no event shall the Agreement or these Terms and Conditions be interpreted to require DIRECTV to maintain rights to deliver any particular services
(including any Added Services), or to distribute services from any particular orbital locations. 
  
 5. To the extent necessary, and to the extent they are not inconsistent with this Schedule C (Part II), Sections 2, 3(b), 3(c), 3(d), 4(b), 4(c), 4(d), 7,
8, 9(b), 12 through 18 and Section 20 of Schedule C (Part I) shall apply to the various rights and obligations set forth in this Schedule C (Part II). In addition, the provisions of Section 19 of Schedule C (Part I) shall apply to the various rights
and obligations set forth in this Schedule C (Part II); provided that subscriber information with respect to Added Services is the proprietary information of DIRECTV, and Member is permitted to such information solely in its capacity as agent
hereunder. 
  

 C(Part II)-8 

 ATTACHMENT ONE TO SCHEDULE C (PART II) 
  
 FORMER USSB SERVICES 
 PACKAGING AND PRICING 
  
 As of January 1, 2004 
  

HBO® - 7 HBO® channels. 
  
 SHOWTIME UNLIMITED - 5 SHOWTIME® channels, 2 channels of The Movie Channel®, 1 FLIX® channel and 1 Sundance Channel®. 
  
 CINEMAX® - 3 Cinemax® channels. 
  
 Offered as premium services under DIRECTV’s “Pick One Through Five” pricing
scheme: 
  

			
	 1st premium
	 	 $12/month

	 2nd premium
	 	 $11/month

	 3rd premium
	 	 $10/month

	 4th premium
	 	 $  8/month

	 5th premium
	 	 $  7/month

  

 C(Part II)-9 

 ATTACHMENT TWO TO SCHEDULE C (PART II) 
  
 TIVO SERVICES 

PACKAGING AND PRICING 
  
 As of January 1, 2004 
  

$4.99 per subscriber per month 
  
 No charge to customers subscribing to Total Choice Premier, so long as such subscription continues. 
  

 C(Part II)-10 

 ATTACHMENT THREE TO SCHEDULE C (PART II) 
  
 PARA TODOS 
 PACKAGING AND PRICING 
  
 As of January 1, 2004 
  
 OPCION EXTRA ESPECIAL $33.99/month 
 OPCION ULTRA ESPECIAL $37.99/month

 OPCION PREMIER $85.99/month 
  
 Also available, but not to be advertised or marketed: 
  

			
	 OPCION EN ESPANOL
	  	 $14.99/month

  

 C(Part II)-11 

 ATTACHMENT FOUR TO SCHEDULE C (PART II) 
  
 DIRECTV-THE GUIDE 
  
 PRICING 
 As of January 1, 2004 
  
 Monthly price: $ 2.99 
 Annual price: $29.94 
  

 C(Part II)-12Agreement of Purchase and Sale

 Exhibit 10.1 
  
 AGREEMENT OF PURCHASE AND SALE 
  
 BY AND BETWEEN 
  
 PAINCARE HOLDINGS, INC., 
  
 AND 
  
 GEORGIA PAIN PHYSICIANS, P.C. 
  
 AND 
  
 ROBERT E.
WINDSOR, M.D. 
  
 DATED: May 25th , 2004. 

 AGREEMENT OF PURCHASE AND SALE 
  
 THIS AGREEMENT OF PURCHASE AND SALE (the “Agreement”) is entered into effective this 25th day of May, 2004, by and between Georgia Pain Physicians, P.C., a Georgia professional corporation (the “Company”)
and its sole shareholder, Robert E. Windsor, M.D., an individual residing in the State of Georgia (“Dr. Windsor”) and PainCare Holdings, Inc., a Florida corporation (hereinafter referred to as “Buyer” or sometimes
“PainCare”). 
  
 W I T N E S S E T H: 
  
 A. Dr. Windsor is a licensed medical provider in the State of Georgia who
owns the Company which operates a medical practice specializing in orthopedic medicine, pain management procedures and other ancillary services, solely through Dr. Windsor, its physician employees and other medical personnel (the
“Business”) at the following locations: (1) Marietta Center: Georgia Center, North – 2550 Windy Hill Rd, #215, Marietta, GA 30067; (2) Forest Park Center: Georgia Center, South – 541 Forest Parkway, #14, Forest
Park, GA 30297; and (3) Calhoun Center: Georgia Surgical Centers of North Georgia – 1089 Redbud Rd, Calhoun, GA 30701 (collectively the “Business Location”); and 
  
 B. Dr. Windsor and the Company are desirous of selling all of the non-medical assets of the Business to the Buyer and its
Subsidiary and entering into management services agreement with the Subsidiary to manage its Business; and 
  
 C. Buyer through a wholly owned subsidiary, PainCare Acquisition Company XII, Inc., a Florida corporation authorized to do business in Georgia
(hereinafter called “Subsidiary” and together with the Buyer sometimes hereinafter called the “Acquiring Companies”) is desirous of buying the non-medical assets of the Company and entering into management services agreement with
the Company to manage its Business all on the following terms and conditions; and 
  
 D. Immediately prior to closing, the Company will assign all of its non-medical Assets to Dr. Windsor, and immediately thereafter, Dr. Windsor will (i) sell seventy percent (70%) of these Non Medical Assets to the
“Windsor Nongrantor Trust”; an Irrevocable Nongrantor Trust, and (ii) assign the remaining non-medical Assets to the “Windsor Family Limited Partnership,” a Georgia Family Limited Partnership (the “Windsor
Partnership”); 
  
 E. Hereafter, Dr. Windsor, the Windsor
Trust, the Windsor Partnership, and the Company will sometimes be referred to collectively as the “Sellers.” PainCare, the Subsidiary, and the Sellers are sometimes referred to herein individually as a “Party” and collectively as
the “Parties”; and 
  
 F. In connection with this
acquisition, PainCare desires to have Subsidiary enter into a management services agreement with the Company, in which the management services agreement is the significant inducement for the Acquiring Companies to acquire the non-medical assets of
the Company. 
  

 2 

 AGREEMENT 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants herein contained and the sum of $10.00 and other good and valuable consideration paid
by Buyer to Seller, receipt of which is hereby acknowledged by Seller, it is mutually covenanted and agreed by the parties hereto as follows: 
  
 1. PURCHASE AND SALE OF ASSETS 
  
 1.1 Assets to be Transferred. Subject to the terms and conditions of this Agreement, on the Closing Date (as hereinafter defined), and except as
otherwise stated, Seller shall sell, transfer, convey, assign, and deliver to Subsidiary and Buyer shall purchase and accept, unless otherwise excluded as provided herein, all of the non-medical business rights, claims and assets (of every kind,
nature, character and description, whether real, personal or mixed, tangible or intangible, accrued, contingent or otherwise, and wherever situated) of Seller, used, held for use or acquired or developed for use in the Business, or developed in the
course of conducting the Business or by persons employed in the Business (collectively the “Purchased Assets”). The Purchased Assets shall include all the following assets or rights of the Seller, to the extent so used, held, acquired or
developed in the Business: 
  
 (a) Cash and
Cash Equivalents and Accounts Receivable. All cash and cash equivalents, and the Accounts Receivable for the Business described in Disclosure Schedule 1.1.(a). 
  
 (b) Leased Real Property. The lease of real property with respect to Business Location (the
“Real Property Lease”) described in Disclosure Schedule 1.1.(b). 
  
 (c) Personal Property. All other property described in Disclosure Schedule 1.1.(c). 
  
 (d) Inventory. All inventories including, without limitation, supplies, merchandise and durable medical equipment on the Closing
Date, together with related packaging and delivery materials (collectively the “Inventory”). Such Inventory shall not include, however, medicine or pharmaceuticals of any kind. 
  
 (e) Personal Property Leases. All leases of equipment and other personal property leased by Seller
for use in the Business (the “Personal Property Leases”) described in Disclosure Schedule 1.1(e). 
  
 (f) Intellectual Property. Seller’s interest in any and all Intellectual Property. As used herein, the term “Intellectual
Property” shall mean and include: (i) all trademark rights, business identifiers, trade dress, logos, service marks, trade names and brand names, all registrations thereof and applications therefore and all goodwill associated with the
foregoing; (ii) all copyrights, copyright registrations and copyright applications, and all other rights associated with the foregoing and the underlying works of authorship; 
  

 3 

 (iii) all patents and patent applications, and all international proprietary rights associated therewith;
(iv) all contracts or agreements granting any right, title, license or privilege under the intellectual property rights of any third party; (v) all inventions, mask works and mask work registrations, know-how, discoveries, improvements, designs,
trade secrets, shop and royalty rights, employee covenants and agreements respecting intellectual property and non-competition and all other types of intellectual property; (vi) all computer software (including all data and related documentation);
(vii) all other proprietary rights; (viii) all copies and tangible embodiments of the foregoing (in whatever form or medium); and (ix) all claims for infringement or breach of any of the foregoing. 
  
 (g) Contracts. All Seller’s rights in, to and
under all contracts, agreements, license agreements, purchase orders and sales orders (hereinafter “Contracts”) of Seller as it relates to the non-medical aspects of the Business. To the extent that any Contract for which assignment to the
Subsidiary is provided herein is not assignable without the consent of another party, this Agreement shall not constitute an assignment or an attempted assignment thereof if such assignment or attempted assignment would constitute a breach thereof.
Seller and the Acquiring Companies agree to use their reasonable best efforts (without any requirement on the part of to pay any money or agree to any change in the terms of any such Contract) to obtain the consent of such other party to the
assignment of any such Contract to the Subsidiary in all cases in which such consent is or may be required for such assignment. If any such consent shall not be obtained, Seller agrees to cooperate with Buyer in any reasonable arrangement designed
to provide for Buyer the benefits intended to be assigned to the Subsidiary under the relevant Contract, including enforcement at the cost and for the account of Buyer of any and all rights of Seller against the other party thereto arising out of
the breach or cancellation thereof by such other party or otherwise. If and to the extent that such arrangement cannot be made, Buyer, upon notice to Seller, shall have no obligation pursuant to Section 2.1 or otherwise with respect to any such
Contract and any such Contract shall not be deemed to be a Purchased Asset hereunder. 
  
 (h) Computer Software. All computer programs and other software, documentation and related property and information of Seller.

  
 (i) Records and Files. All records,
files, invoices, customer lists, specifications, designs, drawings, accounting records, financial records, business records, operating data and other data but not including any patient files or records. 
  
 (j) Licenses; Permits. All business (but not medical)
licenses, permits and approvals necessary to operate the Business in the State of Georgia (“Licenses and Permits”) described in Disclosure Schedule 1.1(j). 
  
 (k) General Intangibles. All prepaid items, all causes of action arising out of occurrences before or
after the Effective Date, and other intangible rights and assets including, without limitation, telephone numbers, directory listings, and prepaid advertisements. 
  

 4 

 1.2 Excluded Assets. Section 1.1 notwithstanding, Seller shall not sell, transfer, assign, convey
or deliver to Buyer, and Buyer will not purchase or accept the following assets of Seller: 
  
 (a) Consideration. The consideration delivered by Buyer to Seller pursuant to this Agreement. 
  
 (b) Tax Credits and Records. Federal, state and local
income and franchise tax credits and tax refund claims and associated returns and records. Buyer shall have reasonable access to such records and may make excerpts therefrom and copies thereof. 
  
 (c) Personal Assets. Those personal assets of Seller
listed in Disclosure Schedule 1.2.(c). 
  
 (d)
Medical Assets. All medical assets of the Business including patient files and records, medicine, pharmaceuticals, medical licenses, third party payor agreements and provider numbers. 
  
 2. ASSUMPTION OF LIABILITIES 
  
 2.1 Liabilities to be Assumed. As used in this Agreement, the term
“Liability” shall mean and include any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or unfixed, known or unknown, asserted or unasserted,
liquidated or unliquidated, secured or unsecured. Subject to the terms and conditions of this Agreement, on the Effective Date, the Subsidiary shall assume or take subject to, as the case may be, and agrees to perform and discharge the following,
and only the following, Liabilities of Seller: 
  
 (a) Certain Liabilities. Those certain accrued Liabilities reflected listed in Disclosure Schedule 2.1.(a). 
  
 (b) Contractual Liabilities. Seller’s Liabilities as of and after the Effective Date under and pursuant to the Contracts
described in Section 1.1.(b), 1.1.(e) and 1.1.(g). 
  
 (c) Liabilities Under Permits and Licenses. Seller’s Liabilities as of and after the Effective Date under any permits or licenses listed in Disclosure Schedule 1.1(j) and assigned to the Subsidiary at the Closing. 
  
 The Liabilities described in subsections 2.1.(a), 2.1.(b), and 2.1.(c) above
are hereinafter collectively described as the “Assumed Liabilities.” 
  

 5 

 2.2 Liabilities Not to be Assumed. Except as and to the extent specifically set forth in Section
2.1, the Acquiring Companies are not assuming nor buying the Purchased Assets subject to any Liabilities of Seller and all such Liabilities shall be and remain the responsibility of Seller. 
  
 2.3 Taxes Arising from Transaction. The Acquiring Companies shall not
assume or be responsible for any taxes applicable to, imposed upon or arising out of the sale or transfer of the Purchased Assets to Buyer and the other transactions contemplated by this Agreement, including but not limited to any income, transfer,
sales, use, gross receipts or documentary stamp taxes. 
  
 2.4
Income and Franchise Taxes. The Acquiring Companies shall not assume or be responsible for any Liability of Seller for Federal income taxes and any state or local income, profit or franchise taxes (and any penalties or interest due on account
thereof). 
  
 2.5 Product, Medical Malpractice and Service
Liability. The Acquiring Companies shall not assume or be responsible for any Liability of Seller arising out of or in any way relating to or resulting from, either directly or indirectly, any medical negligence, malpractice or professional or
personal liability or pharmaceutical, medication or product manufactured, formulated, mixed, compounded, assembled or sold or any service performed by Seller, its contractors or any of its employees prior to or after the Effective Date (including
any Liability of Seller or any of its employees, contractors or agents for claims made for injury to person, damage to property or other damage, whether made in product liability, tort, negligence, breach of warranty or otherwise). 
  
 2.6 Litigation Matters. The Acquiring Companies shall not assume or be
responsible for any Liability of Seller with respect to any action, claim, suit, proceeding, arbitration, investigation or inquiry, whether civil, criminal or administrative (“Litigation”). 
  
 2.7 Infringements. The Acquiring Companies shall not assume or be
responsible for any Liability of Seller with respect to a third party for infringement of such third party’s Intellectual Property. 
  
 2.8 Transaction Expenses. The Acquiring Companies shall not assume or be responsible for any Liabilities incurred by Seller in connection with this
Agreement and the transactions contemplated herein. 
  
 2.9
Liability For Breach. The Acquiring Companies shall not assume or be responsible for any Liabilities of Seller for any breach or failure to perform any of Seller’s covenants and agreements contained in, or made pursuant to, this
Agreement, or, prior to or after the Closing, any other contract or agreement, whether or not assumed hereunder, including breach arising from assignment of contracts hereunder without consent of third parties. 
  
 2.10 Liabilities to Affiliates. The Acquiring Companies shall not
assume or be responsible for any Liabilities of Seller to its present or former Affiliates. 
  

 6 

 2.11 Violation of Laws or Orders. The Acquiring Companies shall not assume or be responsible for
any Liabilities of Seller for any violation of or failure to comply with any statute, law, ordinance, rule or regulation (collectively, “Laws”) or any order, writ, injunction, judgment, plan or decree (collectively, “Orders”) of
any court, arbitrator, department, commission, board, bureau, agency, authority, instrumentality or other body, whether federal, state, municipal, foreign or other (collectively, “Government Entities”). 
  
 3. PURCHASE PRICE - PAYMENT 
  
 3.1 Initial Transaction Consideration. Subject to the adjustments set
forth in Section 3.2 below, the initial aggregate transaction consideration that Buyer shall pay to the Seller for the Purchased Assets shall equal (i) the amount of the Assumed Liabilities plus (ii) One Million One Hundred Twenty Five Thousand and
00/100 Dollars ($1,125,000) all of which shall be comprised of cash (the “Cash Due At Closing” or sometimes the “Initial Transaction Consideration” ) which shall be delivered via wire transfer on the Closing Date to a bank
account designated by the Seller. 
  
 3.2 Potential Post
Closing Adjustments. 
  
 (a) Accounts Receivable
Adjustment. If the Subsidiary, within the six (6) month calendar period immediately following the Closing Date, does not collect a total of at least $1,200,000 from the accounts receivable purchased pursuant to this Agreement (the
“Acquired Accounts Receivable”), then the Initial Transaction Consideration shall be reduced dollar for dollar by the A/R Adjustment. The “A/R Adjustment” shall equal the difference between $1,200,000 and the amount of the
Acquired Accounts Receivable actually collected by the Subsidiary during such twelve (12) month period. Buyer shall receive payment for the A/R Adjustment through a lump sum cash payment from the Seller within seven (7) days after the end of the six
(6) month period.  
  
 3.3 Contingent Installment
Payments. On the last day of each of the three (3) successive twelve (12) month periods (hereinafter at times referred to as the “First Twelve Month Period”, the “Second Twelve Month Period” and “Third Twelve Month
Period,” respectively) which immediately follow the Closing Date, Pain Care pay to Seller $375,000 (each a “Contingent Installment Payment”) if, and only if, all of the following conditions are satisfied (each a “Condition”
and collectively, the “Conditions”) throughout the First Twelve Month Period, the Second Twelve Month Period and the Third Twelve Month Period: (i) Dr. Windsor and Practice Operator (as defined in that certain MSA dated May 25, 2004 (the
“MSA”) by and among PainCare Acquisition Company XII, Inc., Georgia Pain Physician, P.C., and Robert E. Windsor, M.D.) are in compliance with all of the terms and conditions applicable to Dr. Windsor and Practice Operator in the MSA,
including but in no way limited to, timely payment in full of the Management Fee (as defined in the MSA) and compliance with the restrictive covenant provisions set forth in Section 10 of the MSA); (ii)Dr. Windsor is in compliance with the
restrictive covenant provisions of Section 11 of that certain Merger Agreement and Plan of Reorganization dated May 25, 2004 (the “Merger Agreement”) by and among PainCare Holdings, Inc., PainCare Acquisition Company XII, Inc., Georgia
Surgery 
  

 7 

 Centers, Inc. and Robert Windsor, M.D.); and (iii) Dr. Windsor and Practice Operator are in compliance with the
restrictive covenant provisions of Section 12 of this Agreement. To the extent that each of the Conditions are satisfied throughout the First Twelve Month Period, Second Twelve Month Period and Third Twelve Month Period, then PainCare shall pay to
the Shareholder $375,000 within thirty (30) days of the end of each of the First Twelve Month Period, Second Twelve Month Period and Third Month Period. To the extent that any of the Conditions are not satisfied during any of the First Twelve Month
Period, Second Twelve Month Period and Third Twelve Month Period, then for the applicable Twelve Month Period where any of the Conditions are not satisfied, and each subsequent Twelve Month Period, PainCare shall not pay, and shall have no duty or
obligation to ever pay, and Shareholder shall not receive, and shall have no right to ever receive, any Contingent Installment Payment. For example, by the way of illustration only, assume that throughout the First Twelve Month Period the Conditions
are satisfied and in the middle of the Second Twelve Month Period the Conditions are no longer satisfied, then, in this example, PainCare shall pay the $375,000 Contingent Installment Payment within thirty (30) days of the end of the First Twelve
Month Period; however, PainCare shall not pay, and shall have no duty or obligation to ever pay, and Shareholder shall not receive, and shall have no right to ever receive, any Contingent Installment Payment with respect to the Second Twelve Month
Period and Third Twelve Month Period. 
  
 3.4 Prorations.
The following prorations relating to the Purchased Assets will be made as of the Effective Date, with Seller liable to the extent such items relate to any time period prior to the Effective Date and Buyer liable to the extent such items relate to
periods as of and subsequent to the Effective Date provided this Agreement is not terminated as provided for herein. Except as otherwise specifically provided herein, the net amount of all such prorations will be settled and paid as the parties
agree: 
  
 (a) Personal property taxes, assessments and other
taxes, if any, on or with respect to the Purchased Assets. 
  
 (b)
Rents, additional rents, taxes and other items payable by Seller under any lease, license, permit, contract or other agreement relative to the Assumed Liabilities. 
  
 (c) The amount of rents, taxes and charges for sewer, water, fuel, telephone, electricity and other utilities. 

 
 (d) All other items normally adjusted in connection with similar
transactions. 
  
 3.5 Other Payments and Adjustments. The
amount of wages and other remuneration due in respect of periods prior to the Effective Date to non-medical employees of the Business and the amount of bonuses due to such employees for all such periods will be paid by Seller directly to such
employees. 
  
 3.6 Allocation of Purchase Price. The
aggregate Purchase Price (including the assumption by the Acquiring Companies of the Assumed Liabilities) shall be allocated among the Purchased Assets for tax purposes in accordance with Disclosure Schedule 3.6. Seller and 
  

 8 

 Buyer will follow and use such allocation in all tax returns, filings or other related reports made by them to any
governmental agencies. To the extent that disclosures of this allocation are required to be made by the parties to the Internal Revenue Service (“IRS”) under the provisions of Section 1060 of the Internal Revenue Code of 1986, as amended
(the “Code”) or any regulations thereunder, Buyer and Seller will disclose such reports to the other prior to filing with the IRS. 
  
 4. REPRESENTATIONS AND WARRANTIES OF SELLER 
  
 Seller hereby makes the following representations and warranties to the Acquiring Companies, each of which is true and correct on the date this Agreement
is executed and shall remain true and correct to and including the Effective Date, shall be unaffected by any investigation heretofore or hereafter made by the Acquiring Companies, or any knowledge of the Acquiring Companies other than as
specifically disclosed and accepted by the Acquiring Companies in the disclosure schedules delivered to the Acquiring Companies at the time of the execution of this Agreement, and shall survive the Closing of the transactions provided for herein.

  
 4.1 Authority. The execution and delivery of this
Agreement and the other documents and instruments to be executed and delivered by Seller pursuant hereto and the consummation of the transactions contemplated hereby and thereby have been duly authorized. No other or further act or proceeding on the
part of Seller or any lienholder or other party is necessary to authorize this Agreement or the other documents and instruments to be executed and delivered by Seller pursuant hereto or the consummation of the transactions contemplated hereby and
thereby. This Agreement constitutes, and when executed and delivered, the other documents and instruments to be executed and delivered by Seller pursuant hereto will constitute, valid binding agreements of Seller, enforceable in accordance with
their respective terms, except as such may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights generally, and by general equitable principles. 
  
 4.2 No Violation. Neither the execution and delivery of this Agreement
or the other documents and instruments to be executed and delivered by Seller pursuant hereto, nor the consummation by Seller of the transactions contemplated hereby and thereby (a) will violate any applicable Law or Order, (b) will require any
authorization, consent, approval, exemption or other action by or notice to any Government Entity or (c) will conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which the Seller is a party or by which the Seller is bound or to which any of the Purchased Assets are
subject, or will result in the termination of, or accelerate the performance required by, or result in the creation of any Lien (as defined in Section 4.8), upon any of the Purchased Assets under, any term or provision of any contract, commitment,
understanding, arrangement, agreement or restriction of any kind or character to which Seller is a party or by which Seller or any of its assets or properties may be bound or affected. 
  

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 4.3 Tax Matters. Except as set forth on Disclosure Schedule 4.3: (i) all state, foreign, county,
local and other tax returns relating primarily to the Business or the Purchased Assets, or required to be filed by or on behalf of Seller in any jurisdiction or any political subdivision thereof, have been timely filed and the taxes paid or
adequately accrued; (ii) Seller has duly withheld and paid all taxes which it is required to withhold and pay relating to salaries and other compensation heretofore paid to the employees, contractors and agents of the Business; and (iii) Seller has
not received any notice of underpayment of taxes or other deficiency which has not been paid and there are outstanding agreements or waivers extending the statutory period of limitations applicable to any tax return or report relating primarily to
the Business or the Purchased Assets, or required to have been filed by Seller in any jurisdiction or political subdivision thereof. 
  
 4.4 Absence of Undisclosed Liabilities. Except as and to the extent specifically disclosed in Disclosure Schedule 4.4, Seller does not have any
Liabilities, other than commercial liabilities and obligations incurred in the ordinary course of business and consistent with past practice and none of which has or will have a material adverse effect on Seller or the Business, or the financial
condition or results of operations of the Business. Except as and to the extent described in Disclosure Schedule 4.4, Seller has no knowledge of any basis for the assertion against Seller or the Business or the Purchased Assets of any liability and
there are no circumstances, conditions, happenings, events or arrangements, contractual or otherwise, which may give rise to Liabilities, except commercial liabilities and obligations incurred in the ordinary course of Seller’s Business and
consistent with past practice. 
  
 4.5 Compliance With Laws and
Orders. 
  
 (a) Compliance. Except as set forth in
Disclosure Schedule 4.5(a), the Company and the Business (including each and all of its operations, practices, properties and assets) is in compliance with all applicable laws and orders, including, without limitation, those applicable to
discrimination in employment, Medicare, insurance billings, providing of medical services, sales of medication and durable medical equipment, occupational safety and health, trade practices, competition and pricing, product warranties, zoning,
building and sanitation, employment, retirement and labor relations, and product advertising. Except as set forth in Disclosure Schedule 4.5(a), Seller has not received notice of any violation or alleged violation of, and is subject to no Liability
for past or continuing violation of, any laws or orders with respect to the operations of the Business. All reports and returns required to be filed by Seller with any Government Entity have been filed, and were accurate and complete when filed.
Without limiting the generality of the foregoing: 
  
 (i) The
operation of the Business as it is now conducted does not, nor does any condition existing at the Business Location, in any manner constitute a nuisance or other tortuous interference with the rights of any person or persons in such a manner as to
give rise to or constitute the grounds for a suit, action, claim or demand by any such person or persons seeking compensation or damages or seeking to restrain, enjoin or otherwise prohibit any aspect of the conduct of the Business or the manner in
which it is now conducted. 
  

 10 

 (ii) Seller has made all required payments to its unemployment compensation reserve accounts with the
appropriate governmental departments where it is required to maintain such accounts with respect to the operations of the Business, and each of such accounts has a positive balance. 
  
 (iii) Seller has timely filed, in a complete and correct manner, all requisite claims and other reports required to be
filed in connection with all state and federal Medicare and Medicaid programs due on or before the date hereof. There are no claims, actions, payment reviews, or appeals pending or threatened before any commission, board or agency, including,
without limitation, any intermediary or carrier, the Administrator of the Health Care Financing Administration, the Georgia Department of Health and Rehabilitative Services, the Georgia Board of Medicine or any other state or federal agency with
respect to any Medicare or Medicaid claims filed by the Seller on or before the Effective Date or program compliance matters, which would adversely affect the Business, the Purchased Assets or the consummation of the transactions contemplated
hereby. No validation review or program integrity review related to the Seller (other than normal, routine reviews) has been conducted by any commission, board or agency in connection with the practice of medicine or any Medicare or Medicaid
program, and no such reviews are scheduled, pending or, threatened against or affecting the Seller or the consummation of the transactions contemplated hereby. 
  

(ii) Neither Seller nor any person or entity providing services for Seller have engaged in any activities which are prohibited under 42 U.S.C.
d1320a-7a or d1320a-7b, or the regulations promulgated
thereunder, pursuant to such statutes or any other related state or local statutes and regulations, including but not limited to the following: (a) knowingly and willfully making or causing to be made a false statement or representation of a
material 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 material 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, his or her 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 kickback, bribe or rebate, directly or indirectly, overtly or covertly, in cash or in kind, or offering to pay or receive such remuneration in return for (e) 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 (f) purchasing, leasing or ordering, or arranging for or recommending
purchasing, leasing or ordering, any medication, goods, facility, service or item for which payment may be made in whole or in part by Medicare or Medicaid. No physician (or his or her immediate family members) having a “financial
relationship” with Seller, as that term is defined in 42 U.S.C. Section 1395nn, is in a position, directly or indirectly, to refer patients or services to the Seller, or any such referral complies with the requirements of 42 U.S.C. Section
1395nn and the regulations promulgated pursuant thereto. 
  
 (v)
Seller has filed when due any and all material cost reports and other documentation and reports, if any, required to be filed by third-party payors and governmental agencies in compliance with applicable contractual provisions and/or laws,
regulations and rules. 
  

 11 

 (b) Licenses and Permits. Seller has all licenses, permits, approvals, authorizations and consents
of all Government Entities and insurance companies including Medicare and all certificates, licenses and permits required for the conduct of the Business. Except as set forth in Disclosure Schedule 4.5(b), the Business (including its operations,
properties and assets) is and has been in compliance with all such permits and licenses, approvals, authorizations and consents. 
  
 4.6 Title to and Condition of Properties. 
  
 (a) Marketable Title. Seller has good and marketable title to all the Purchased Assets, free and clear of all mortgages, liens (statutory or
otherwise), security interests, claims, pledges, licenses, equities, options, conditional sales contracts, assessments, levies, covenants, reservations, restrictions, exceptions, limitations, charges or encumbrances of any nature whatsoever
(collectively, “Liens”) except those described in Disclosure Schedule 4.6(a). None of the Purchased Assets are subject to any restrictions with respect to the transferability thereof. Seller has complete and unrestricted power and right to
sell, assign, convey and deliver the Purchased Assets to the Subsidiary as contemplated hereby. At Closing, The Subsidiary will receive good and marketable title to all the Purchased Assets, free and clear of all Liens of any nature whatsoever
except those described in the appropriate Disclosure Schedule. 
  
 (b) Condition. All tangible assets constituting Purchased Assets hereunder are in good operating condition and repair, free from any defects (except such minor defects as do not interfere with the use thereof in the conduct of the
normal operations of Seller), have been maintained consistent with the standards generally followed in the industry and are sufficient to carry on the business of Seller as conducted during the preceding twelve (12) months and as contemplated for
the next three (3) years. All buildings and other structures owned or otherwise utilized by Seller in operating the Business are in good condition and repair and have no structural defects or defects affecting the plumbing, electrical, sewerage, or
heating, ventilating or air conditioning systems. 
  
 (c) No
Condemnation or Expropriation. Neither the whole nor any portion of the Purchased Assets is subject to any order to be sold or is being condemned, expropriated or otherwise taken by any Government Entity with or without payment of compensation
therefore, nor to the best of Seller’s knowledge has any such condemnation, expropriation or taking been proposed. 
  
 4.7 Insurance. Set forth in Disclosure Schedule 4.7 is a complete and accurate list and description of all policies of errors and omissions, fire,
liability, product liability, workers compensation, health and other forms of insurance presently in effect with respect to the Company and the Business and the Purchased Assets, true and correct copies of which have heretofore been delivered to the
Acquiring Companies. Disclosure Schedule 4.7 includes, without limitation, the carrier, the description of coverage, the limits of coverage, retention or 
  

 12 

 deductible amounts, amount of annual premiums, date of expiration and the date through which premiums have been paid with
respect to each such policy, and any pending claims in excess of $5,000.00. All such policies are valid, outstanding and enforceable policies and provide insurance coverage for the Business and the Purchased Assets, of the kinds, in the amounts and
against the risks customarily maintained by organizations similarly situated; and no such policy (nor any previous policy) provides for or is subject to any currently enforceable retroactive rate or premium adjustment, loss sharing arrangement or
other actual or contingent liability arising wholly or partially out of events arising prior to the date hereof. Disclosure Schedule 4.7 indicates each policy as to which (a) the coverage limit has been reached or (b) the total incurred losses from
the beginning of the most recent fiscal year to date equal 25% or more of the coverage limit. No notice of cancellation or termination has been received with respect to any such policy, and Seller has no information or knowledge of any act or
omission of Seller which could result in cancellation of any such policy prior to its scheduled expiration date. Seller has not been refused any insurance with respect to any aspect of the operations of the Business nor has its coverage been limited
by any insurance carrier to which it has applied for insurance or with which it has carried insurance during the last three years. Seller has duly and timely made all claims it has been entitled to make under each policy of insurance. There is no
claim by Seller pending under any such policies as to which coverage has been questioned, denied or disputed by the underwriters of such policies, and Seller does not know of any basis for denial of any claim under any such policy. Seller has not
received any written notice from or on behalf of any insurance carrier issuing any such policy that insurance rates therefore will hereafter be substantially increased (except to the extent that insurance rates may be increased for all similarly
situated risks) or that there will hereafter be a cancellation or an increase in a deductible (or an increase in premiums in order to maintain an existing deductible) or non-renewal of any such policy. Such policies are sufficient in all material
respects for compliance by Seller with all requirements of law and with the requirements of all material contracts to which Seller is a party. 
  
 4.8. Contracts and Commitments. 
  
 (a) Real Property Lease. Except as set forth in Disclosure Schedule 1.1.(b), Seller has no leases of real property used or held for use in
connection with the Business or the Purchased Assets. 
  
 (b)
Personal Property Leases. Except as set forth in Disclosure Schedule 1.1(e), Seller has no leases of personal property used or held for use in connection with the Business or the Purchased Assets. 
  
 (c) Purchase Commitments. Seller has no purchase commitments for
inventory items or supplies in connection with the Business. 
  
 (d) Sales Commitments. Seller has no sales contracts or commitments to customers or distributors in connection with or affecting the Business or the Purchased Assets. Seller has no sales contracts or commitments in connection with or
affecting the Business or the Purchased Assets except those made in the ordinary course of business, at arm’s length, and no such contracts or commitments are for a sales price which would result in a loss to the Business. 
  

 13 

 (e) Contracts With Affiliates and Certain Others. Seller has no agreement, understanding, contract
or commitment (written or oral) in connection with or affecting the Business or the Purchased Assets with any Affiliate or any other officer, employee, agent, consultant, distributor, dealer or franchisee. 
  
 (f) Powers of Attorney. The Seller has not given a power of attorney,
which is currently in effect, to any person, firm or corporation for any purpose whatsoever in connection with or affecting the Business or the Purchased Assets. 
  
 (g) Loan Agreements. Except as otherwise disclosed in the Disclosure Schedules, Seller is not obligated under any
loan agreement, promissory note, letter of credit, or other evidence of indebtedness as a signatory, guarantor or otherwise, which obligation constitutes or gives rise or could by its terms, through the giving of notice or any other events short of
judgment by a court, give rise to a lien against any Purchased Asset. 
  
 (h) Guarantees. Except as otherwise disclosed in the Disclosure Schedules, Seller has not guaranteed the payment or performance of any person, firm or corporation, agreed to indemnify any person or act as a surety, or otherwise
agreed to be contingently or secondarily liable for the obligations of any person, in connection with the Business or in any other way which affects the Business or the Purchased Assets. 
  
 (i) Government Contracts. Except as otherwise disclosed in the Disclosure Schedules, Seller is not a party to any
contract with any governmental body. 
  
 (j) Burdensome or
Restrictive Agreements. Seller is not a party to nor is it bound by any agreement, deed, lease or other instrument in connection with or affecting the Business or the Purchased Assets which is so burdensome as to materially affect or impair the
operation of the Business. Without limiting the generality of the foregoing, Seller is not a party to nor is it bound by any such agreement requiring Seller to assign any interest in any trade secret or proprietary information constituting Purchased
Assets hereunder, or prohibiting or restricting Seller in its operation of the Business from competing in any business or geographical area or soliciting customers or otherwise restricting it from carrying on the Business anywhere in the world.

  
 (k) No Default. Seller is not in default under any
lease, license, contract or commitment in its operation of the Business, nor has any event or omission occurred which through the passage of time or the giving of notice, or both, would constitute a default thereunder or cause the acceleration of
any of Seller’s obligations or result in the creation of any Lien on any Purchased Asset. No third party is in default under any such lease, contract or commitment to which Seller is a party, nor has any event or omission occurred which,
through the passage of time or the giving of notice, or both, would constitute a default thereunder, or give rise to an automatic termination, or the right of discretionary termination thereof. 
  

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 4.9. Employee Benefit Plans. There are no pension, thrift, savings, profit sharing, retirement,
incentive bonus or other bonus, medical, dental, life, accident insurance, benefit, employee welfare, disability, group insurance, stock purchase, stock option, stock appreciation, stock bonus, executive or deferred compensation, hospitalization and
other similar fringe or employee benefit plans, programs and arrangements, and any employment or consulting contracts, “golden parachutes,” collective bargaining agreements, severance agreements or plans, vacation and sick leave plans,
programs, arrangements and policies, including, without limitation, all “employee benefit plans” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), all employee manuals, and
all written or binding oral statements of policies, practices or understandings relating to employment, which are provided to, for the benefit of, or relate to, any persons employed by Seller in its operation of the Business (“Business
Employees”). 
  
 4.10 Intellectual Property.
Disclosure Schedule 4.10 lists all Intellectual Property of the type described in Section 1.1(f) which are or were used, held for use, or acquired or developed for use in the Business, or developed in the course of conducting the Business or by
persons employed in the Business, specifying whether such Intellectual Property are owned, controlled, used or held (under license or otherwise) by Seller, and also indicating which of such Intellectual Property are registered. Seller is not
infringing and has not infringed any Intellectual Property of another in the operation of the Business, nor is any other person infringing the Intellectual Property of Seller. Seller has not granted any license or made any assignment of any Trade
Right listed on Disclosure Schedule 4.10, and no other person has any right to use any such Trade Right. Seller does not pay any royalties or other consideration for the right to use any Intellectual Property of others. There is no Litigation
pending or threatened to challenge Seller’s right, title and interest with respect to its continued use and right to preclude others from using any Intellectual Property of Seller. All Intellectual Property of Seller are valid, enforceable and
in good standing, and there are no equitable defenses to enforcement based on any act or omission of Seller. 
  
 4.11 Product Warranty and Product Liability. There are no warranties, commitments or obligations with respect to the return, repair or replacement
of Products. There are no defects in design, construction or manufacture of Products which would adversely affect performance or create an unusual risk of injury to persons or property. None of the Products has been the subject of any replacement,
field fix, retrofit, modification or recall campaign and, to Seller’s knowledge, no facts or conditions exist which could reasonably be expected to result in such a recall campaign. As used in this Section 4.13, the term “Products”
means any and all medication and other products currently or at any time previously manufactured, compounded, mixed, formulated, distributed or sold by Seller, or by any predecessor of Seller under any brand name or mark under which products are or
have been manufactured, distributed or sold by Seller, in or through the Business. 
  
 4.12 Assets Necessary to Business. The Purchased Assets include all property and assets (except for the Excluded Assets), tangible and intangible, and all leases, licenses and other agreements, which are
necessary to permit The Subsidiary to carry on, as currently used or held for use in, the non-medical aspects of the Business as presently conducted. 
  

 15 

 4.13 No Brokers or Finders. Neither Seller nor any of its employees or agents have retained,
employed or used any broker or finder in connection with the transaction provided for herein or in connection with the negotiation thereof. 
  
 4.14 Financial Statements. Included as Disclosure Schedule 4.14 are true and complete copies of the financial statements of the Seller consisting
of (i) a balance sheet of the Seller as of December 31, 2003 and the related statements of operations for the year then ended (including the notes contained therein or annexed thereto), which financial statements are audited, and (ii) an unaudited
balance sheet of the Seller as of March 31, 2004 (the “Recent Balance Sheet”), and the related unaudited statements of operations for the three (3) months then ended (the “Recent Statement of Operations”) and for
the corresponding period of the prior year (including the notes and schedules contained therein or annexed thereto). All of such financial statements (including the notes and schedules contained therein or annexed thereto) are true, complete and
accurate, have been prepared in accordance with generally accepted accounting principles applied on a consistent basis, have been prepared in accordance with the books and records of the Seller and fairly present, in accordance with generally
accepted accounting principles, the assets with adequate provision made for doubtful accounts, liabilities and financial position, the results of operations of the Seller as of the dates and for the years and periods indicated. 
  
 4.15. Conduct Since Date of Recent Balance Sheet. Except as set forth
in this Agreement and as disclosed in Disclosure Schedule 4.15 hereto, none of the following has occurred since the date of the Recent Balance Sheet: 
  
 (a) No Adverse Change. Any material adverse change in the financial condition, Purchased Assets, Assumed Liabilities, Business, prospects or
operations of the Seller; 
  
 (b) No Damage. Any material
loss, damage or destruction, whether covered by insurance or not, affecting the Seller’s Business or the Purchased Assets; 
  
 (c) No Increase in Compensation. Any increase in the compensation, salaries or wages payable or to become payable to any employee or agent of the
Seller (including, without limitation, any increase or change pursuant to any bonus, pension, profit sharing, retirement or other plan or commitment), or any bonus or other employee benefit granted, made or accrued, that exceeds in the aggregate a
five percent (5%) increase in the total compensation or benefits payable to any single employee or agent of the Seller; 
  
 (d) No Labor Disputes. Any labor dispute or disturbance, other than routine individual grievances which are not material to the Business or the
Purchased Assets; 
  
 (e) No Commitments. Any commitment or
transaction by the Seller (including, without limitation, any borrowing or capital expenditure) other than in the ordinary course of business consistent with past practice; 
  

 16 

 (f) No Disposition of Property. Any sale, lease or other transfer or disposition of any properties
or assets of the Seller, except in the ordinary course of business; 
  
 (g) No Indebtedness. Any indebtedness for borrowed money incurred, assumed or guaranteed by the Seller; 
  
 (h) No Liens. Any mortgage, pledge, lien or encumbrance made on any of the Purchased Assets; 
  
 (i) No Amendment of Contracts. Any entering into, amendment or
termination by the Seller of any Assumed Liability, or any waiver of material rights thereunder, other than in the ordinary course of business; 
  
 (k) Credit. Any grant of credit to any customer or distributor on terms or in amounts more favorable than those which have been extended to such
customer or distributor in the past, any other change in the terms of any credit heretofore extended, or any other change of the Seller’s policies or practices with respect to the granting of credit; or 
  
 (l) No Unusual Events. Any other event or condition not in the
ordinary course of business of the Seller. 
  
 4.16 Companies
and Affiliates. Seller has no interests in any entity nor does the Seller own or control, directly or indirectly, any capital stock of any corporation or interest in any partnership, trust or unincorporated association, or any interest or
investment in any other corporation, association or other business entity which operates any part of the Business or otherwise has a contract with Seller with respect to providing any service or product to the Business. 
  
 4.17 Liabilities. Except as and to the extent specifically disclosed
in the Recent Balance Sheet, or in Disclosure Schedule 4.17, the Seller does not have any material liabilities, commitments or obligations (secured or unsecured, and whether accrued, absolute, contingent, direct, indirect or otherwise) other than
commercial liabilities and obligations incurred since the date of the Recent Balance Sheet in the ordinary course of business and consistent with past practice and none of which has or will have a material adverse effect on the Business or the
Purchased Assets. Except as and to the extent described in the Recent Balance Sheet or in Disclosure Schedule 4.17, the Seller has no any information, knowledge or belief of any basis for the assertion against the Seller, business and/or Purchased
Assets of any material liability and there are no circumstances, conditions, happenings, events or arrangements, contractual or otherwise, which may give rise to such material liabilities, except commercial liabilities and obligations incurred in
the ordinary course of the Seller’s business and consistent with past practice. 
  
 As of the Closing, other than the current trade accounts payable or otherwise described in the Disclosure Schedules, the Seller, as it pertains to the Business and the Purchased Assets, shall not have any unpaid
liabilities, including, but not limited to, any bank debt, capital 
  

 17 

 leases or any general or professional liability claims, or be obliged in any other way to provide funds in respect of, or
to guarantee or assume, any debt, obligation or dividend of any person, except endorsements in the ordinary course of business in connection with the deposit, in banks or other financial institutions, of items for collection. Except as disclosed in
detail in Section 4.17 of the Disclosure Schedule, the Seller does not have any Liabilities or obligations which might be or become a charge against the Subsidiary. 
  
 4.18 Accounts Receivable. All Accounts Receivable of the Company represent arm’s length sales actually made in
the ordinary course of business; are collectible (net of the reserve shown on the Recent Balance Sheet for doubtful accounts) in the ordinary course of business without the necessity of commencing legal proceedings; are subject to no counterclaim or
setoff; and are not in dispute. Disclosure Schedule 4.18 contains an aged schedule of accounts receivable included in the Recent Balance Sheet. 
  
 The Seller knows of no reason why such accounts receivable would not be collectible by the Seller according to approximately the same ratios as accounts
receivable have been historically collectible by the Company. All outstanding accounts and notes receivable included on Disclosure Schedule 4.18 and generated through the Closing arose in the ordinary course of business. The Company has not incurred
any liabilities to customers for discounts, returns, promotional allowances or otherwise, except as provided in the Disclosure Schedules. 
  
 4.19 Environmental Matters. The applicable Laws relating to pollution or protection of the environment, including Laws relating to
emissions, discharges, generation, storage, releases or threatened releases of pollutants, contaminants, chemicals or industrial, toxic, hazardous or petroleum or petroleum-based substances or wastes (“Waste”) into the environment
(including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Waste
including, without limitation, the Clean Water Act, the Clean Air Act, the Resource Conservation and Recovery Act, the Toxic Substances Control Act and the Comprehensive Environmental Response Compensation Liability Act (“CERCLA”),
as amended, and their state and local counterparts are herein collectively referred to as the “Environmental Laws”. Without limiting the generality of the foregoing provisions of this Section, Seller is in full compliance with all
limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in the Environmental Laws or contained in any regulations, code, plan, order, decree, judgment, injunction, notice or
demand letter issued, entered, promulgated or approved thereunder. Except as set forth in Disclosure Schedule 4.19, there is no Litigation nor any demand, claim, hearing or notice of violation pending or threatened against the Seller relating in any
way to the Environmental Laws or any Order issued, entered, promulgated or approved thereunder. Except as set forth in Disclosure Schedule 4.19, there are no past or present or future events, conditions, circumstances, activities, practices,
incidents, actions, omissions or plans which may interfere with or prevent compliance or continued compliance with the Environmental Laws or with any Order issued, entered, promulgated or approved thereunder, or which may give rise to any liability,
including, without limitation, liability under CERCLA or similar state or local Laws, or otherwise form the basis of any Litigation, hearing, notice of violation, study or investigation, based on or related to the 
  

 18 

 manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling, or the emission,
discharge, release or threatened release into the environment, of any Waste. 
  
 4.20 Personnel. Disclosure Schedule 4.20 attached hereto contains accurate and complete information as to names and rates of compensation (whether in the form of salaries, bonuses, commissions or other
supplemental compensation now or hereafter payable) of all personnel of the Seller, together with information as to any contracts with any such personnel. The Company has no pension, profit-sharing, bonus, incentive, insurance or other employee
benefit plans (including without limitation any such plans within the meaning of Section 3 (3) of the Employee Retirement Income Security Act of 1974, as amended) in which any employees of the Company participate, except as set forth on the
Disclosure Schedule 4.20. 
  
 4.21 Bank Accounts.
Disclosure Schedule 4.21 sets forth the names and locations of all banks, trust companies, savings and loan associations and other financial institutions at which the Company, with respect to the Business, maintains a safe deposit box, lock box or
checking, savings, custodial or other account of any nature, the type and number of each such account and the signatories therefore, a description of any compensating balance arrangements, and the names of all persons authorized to draw thereon,
make withdrawals therefrom or have access thereto. 
  
 4.22.
Tax Matters. 
  
 (a) Tax Returns. The Seller has
filed all Tax Returns it was required to file. All such Tax Returns were correct and complete in all respects and were filed on a timely basis. All Taxes owed by the Seller (whether or not shown on any Tax Return) have been paid. The Seller
currently is not the beneficiary of any extension of time within which to file any Tax Return. No claim is currently pending by an authority in a jurisdiction where the Business or Seller is domiciled or may be subject to taxation by that
jurisdiction. There are no Security Interests on any of the Purchased Assets that arose in connection with any failure (or alleged failure) to pay any Tax. 
  
 (b) Withholding. The Seller has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any
employee, independent contractor, creditor, stockholder, or other third party. 
  
 (c) No Waivers. The Seller has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. 
  
 (d) Audits of Tax Returns. No Tax Return of the Seller is currently
under audit or examination by any taxing authority, and the Seller has not received a written notice stating the intention of any taxing authority to conduct such an audit or examination. Each deficiency resulting from any audit or examination
relating to Taxes by any taxing authority has been paid, except for deficiencies being contested in good faith. The revenue agents’ reports related to any prior audits and examinations are attached as part of Section 4.22 of the Disclosure
Schedule. 
  

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 (e) Period of Assessment. There is no agreement or other document extending, or having the effect
of extending, the period of assessment or collection of any Taxes. 
  
 (f) Tax Agreements. The Seller is not a party to or bound by any tax sharing agreement, tax indemnity obligation or similar agreement with respect to Taxes, including any advance pricing agreement, closing agreement or other
agreement relating to Taxes with any taxing authority. 
  
 4.23
Insurance; Malpractice. Section 4.7 of the Disclosure Schedule contains a list and brief description of all policies or binders of fire, liability, product liability, workers compensation, health and other forms of insurance policies or
binders currently in force insuring against risks to which the Seller has been a party, a named insured or otherwise the beneficiary of coverage at any time during the five (5) years immediately preceding the Closing Date. Section 4.23 of the
Disclosure Schedule contains a description of all current malpractice liability insurance policies of the Seller and the Seller’s professional employees and all predecessor policies in effect. Except as set forth on Section 4.23 of the
Disclosure Schedule: (a) neither the Company, nor its professional employees, has during the five (5) years immediately preceding the Closing Date, filed a written application for any insurance coverage relating to the Seller’s business or
property which has been denied by an insurance agency or carrier; and (b) the Seller, the Seller’s professional employees and the Seller has been continuously insured for professional malpractice claims during the same period. 
  
 4.24 Litigation. Except as noted in Section 4.24 of the Disclosure
Schedule, there is no litigation, arbitration, governmental claim, investigation or proceeding, pending or, to the Seller’s knowledge, threatened, against the Seller at law or in equity, before any court, arbitration tribunal or governmental
agency. The Seller has no knowledge of any facts on which claims may hereafter be made against the Seller that will have a material adverse effect on the Business, Purchased Assets or the Subsidiary. All medical malpractice claims, general liability
incidents and incident reports relating to the Business have been submitted to the Seller’s insurer. All claims made or, to each of the Seller’s knowledge, threatened against the Seller in excess of the deductible are covered under
Seller’s current insurance policies. Seller has provided the Acquiring Companies with a complete list of all general liability incidents, incident reports and malpractice claims relating to the Business for the five (5) year period prior to the
Closing Date. 
  
 4.25 Health Care Compliance. The Seller
is participating or otherwise authorized to receive reimbursement from Medicare and Medicaid and is a party to other third-party payor agreements set forth in Section 4.25 of the Disclosure Schedule. All necessary certifications and contracts
required for participation in such programs are in full force and effect and have not been amended or otherwise modified, rescinded, revoked or assigned, and no condition exists or event has occurred which in itself or with the giving of notice or
the lapse of time or both would result in the suspension, revocation, impairment, forfeiture or non-renewal of any such third-party payor program. The Seller is in compliance in all material respects with the requirements of 
  

 20 

 all such third-party payors applicable thereto. None of Seller’s physician employees, the Seller, or immediate
family members of the Seller, have any financial relationship (whether investment interest, compensation interest, or otherwise) with any entity to which any of the foregoing refer patients, except for such financial relationships that qualify for
exceptions to state and federal laws restricting physician referrals to entities in which they have a financial interest. 
  
 4.26 Fraud and Abuse. The Seller and all persons and entities providing professional services for the Business have not 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 material 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 material 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. The Seller has at all times complied with the requirements of Georgia Statutes 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, and has at all times complied with the Georgia Statutes. Furthermore, the Seller has filed all reports required to be filed by the State of Georgia and federal law regarding
compensation arrangements and financial relationships between a physician and an entity to which the physician refers patients. 
  
 4.27 Legal Compliance. The Seller and its Affiliates have complied with all applicable Laws (including rules, regulations, codes, injunctions,
judgments, orders, decrees, and rulings of federal, state, local, and foreign governments (and all agencies thereof)), and no action, suit, proceeding, hearing, complaint, claim, demand, notice or investigation has been filed or commenced, or to the
Knowledge of the Seller, threatened against the Seller or the Business alleging any failure so to comply. The Seller and all physicians and other health care professionals engaged or employed by the Seller have all permits and licenses required by
applicable Law, have made all required regulatory filings and are not in violation of any such permit or license. The Business lawfully operated in accordance with the requirements of all applicable Laws and has in full force and effect all
authorizations and permits necessary to operate a medical practice. There are no outstanding notices of deficiencies relating to the Seller or the Business issued by any governmental authority or third-party payor requiring conformity or compliance
with any applicable law or condition for participation with such governmental authority or third-party condition for participation with such governmental authority or third-party 
  

 21 

 payor. The Seller has not received notice and the Seller has no Knowledge or reason to believe that, such necessary
authorizations may be revoked or not renewed in the ordinary course of business. 
  
 4.28 Rates and Reimbursement Policies. The jurisdiction in which the Business is located does not currently impose any restrictions or limitations on rates which may be charged to private pay patients receiving
services provided by the Seller except for restrictions promulgated by Georgia law and regulation on charging of excessive fees and limitations on charges for and profits from the sale of medications, goods and devices and free samples. The Seller
does not have any rate appeal currently pending before any governmental authority or any administrator of any third-party payor program. The Seller has no Knowledge of any applicable Law, which affects rates or reimbursement procedures which has
been enacted, promulgated or issued preceding the date of this Agreement or any such legal requirement proposed or currently pending in the State of Georgia which could have a material adverse effect on the Seller, the Business, or the Purchased
Assets or may result in the imposition of additional Medicaid, Medicare, charity, free care, welfare, or other discounted or government assisted patients at the Business or require the Subsidiary or Seller to obtain any necessary authorization which
the Seller does not currently possess. The Seller has no Knowledge of any impending proposed reduction in reimbursement from third party or other payors nor Knowledge of any threatened termination of payor contracts. 
  
 4.29 Medical Staff. Except as set forth on Section 4.29 of the
Disclosure Schedule, the Seller has no Knowledge of a physician who is providing services on behalf of the Business who plans, or has threatened to terminate his or her employment or other relationship with the Seller. None of the physicians
providing services on behalf of the Business currently has plans to retire from the practice of medicine in the next five (5) years. 
  
 4.30 Seller and Other Providers. During the five (5) years preceding the Closing Date, each physician, and other health care provider who is or was
employed by, or who renders or has rendered services on behalf of, the Company: 
  
 (a) Licenses. Has been duly licensed and registered, and in good standing by the State of Georgia to engage in the practice of medicine, and said license and registration have not been suspended, revoked or
restricted in any manner; 
  
 (b) Controlled Substances.
Has current controlled substances registrations issued by the State of Georgia and the U.S. Drug Enforcement Administration, which registrations have not been surrendered, suspended, revoked or restricted in any manner; 
  
 (c) Actions. Except as set forth on Section 4.30 of the Disclosure
Schedule, has not been a party or subject to: 
  
 (i)
Malpractice Actions. Any malpractice suit, claim (whether or not filed in court), settlement, settlement allocation, judgment, verdict or decree; 
  

 22 

 (ii) Disciplinary Proceedings. Any disciplinary, peer review or professional review
investigation, proceeding or action instituted by any licensure board, hospital, medical school, physical therapy school, health care facility or entity, professional society or association, third party payor, peer review or professional review
committee or body, or governmental agency; 
  
 (iii) Criminal
Proceedings. Any criminal complaint, indictment or criminal proceedings; 
  
 (iv) Investigation. Any investigation or proceedings, whether administrative, civil or criminal, relating to an allegation of filing false health care claims, violating anti-kickback or fee-splitting laws, or
engaging in other billing improprieties; 
  
 (v) Mental
Illnesses. Any organic or mental illness or condition that impairs or may impair such physician’s ability to practice; 
  
 (vi) Substance Abuse. Any dependency on, habitual use or episodic abuse of alcohol or controlled substances, or any participation in any alcohol
or controlled substance detoxification, treatment, recovery, rehabilitation, counseling, screening or monitoring program; 
  
 (vii) Professional Ethics. Any allegation, or any investigation or proceeding based on any allegation of violating professional ethics or
standards, or engaging in illegal, immoral or other misconduct (of any nature or degree), relating to his or her practice; or 
  
 (viii) Application for Licensure. Any denial or withdrawal of an application in any state for licensure as a physician or physical therapist, for
medical staff privileges at any hospital or other health care entity, for board certification or recertification, for participation in any third party payment program, for state or federal controlled substances registration, or for malpractice
insurance. 
  
 4.31 Third-party Payors. Section 4.31 of the
Disclosure Schedule sets forth an accurate, correct and complete list of the Company’s third-party payors. The Seller has not received any notice nor has any Knowledge that any third-party payor intends to terminate or materially reduce its
business with, or reimbursement to, the Seller. The Seller has no reason to believe that any third-party payor will cease to do business with the Seller after, or as a result of, the consummation of any transactions contemplated hereby. The Seller
does not know of any fact, condition or event which would adversely affect its relationship with any third-party payor. 
  
 4.32 Disclosure. No representation or warranty by Seller in this Agreement, nor any statement, certificate, schedule or exhibit hereto furnished or
to be furnished by or on behalf of Seller pursuant to this Agreement or in connection with transactions contemplated hereby, contains or shall contain any untrue statement of material fact or omits or shall omit a material fact necessary to make the
statements contained therein not misleading. All statements and information contained in any certificate, instrument, disclosure schedules or document delivered by or on behalf of Seller shall be deemed representations and warranties by Seller.

  

 23 

 4.33 Corporate Practice or Fee Splitting. The actions, transactions or relationships arising from,
and contemplated by, this Agreement does not violate any law, rule or regulation relating to the corporate practice of medicine or fee splitting. The Seller accordingly agrees that he will not and will not cause any other Party, in an attempt to
void or nullify this Agreement or any document related to the Transaction or any relationship involving PainCare or Subsidiary to sue, claim, aver, allege or assert that any such document or any such relationship violates any law, rule or regulation
relating to the corporate practice of medicine or fee splitting. 
  
 4.34 Staff Privileges. Disclosure Schedule 4.34 lists all hospitals at which all physicians employed by the Company has full staff privileges. Such staff privileges have not ever been revoked, surrendered, suspended or terminated,
and to the best of the Seller’s Knowledge, there are no, and have not been any, facts, conditions or incidents that may result in any such revocation, surrender, suspension or termination. 
  
 4.35 Intentions. Dr. Windsor intends to continue
practicing medicine on a full-time basis for the next five (5) years with the Company and does not know of any fact or condition that adversely affects, or in the future may adversely affect, his ability or intention to practice medicine on a
full-time basis for the next five (5) years with the Company. 
  
 4.36 HIPAA. Disclosure Schedule 4.36 lists and describes all plans and other efforts of the Seller 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. Disclosure Schedule 4.36 includes but is not limited in any manner whatsoever to any privacy
compliance plan of the Seller 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. 
  
 4.37 Improper and Other Payments. (a) Neither the Seller, any employee
agent or representative of the Seller nor any person acting on behalf of any of them, has made, paid or received any unlawful bribes, kickbacks or other similar payments to or from any person or authority, (b) no contributions have been made,
directly or indirectly, by the Seller to a domestic or foreign political party or candidate; and (c) the internal accounting controls of the Seller are believed to be adequate to detect any of the foregoing under current circumstances. 

 
 4.38 Medical Waste. With respect to the generation,
transportation, treatment, storage, and disposal, or other handling of Medical Waste, the Seller, with respect to the Business, has complied with all Medical Waste Laws (as hereinafter defined). 
  
 “Medical Waste” includes, but is not limited to, (a) pathological
waste, (b) blood, (c) sharps, (d) wastes from surgery or autopsy, (e) dialysis waste, including contaminated disposable equipment and supplies, (f) cultures and stocks of infectious agents and associated biological agents, (g) contaminated animals,
(h) isolation wastes, (i) contaminated equipment, (j) laboratory waste, and (k) various other biological waste and discarded materials contaminated 
  

 24 

 with or exposed to blood, excretion, or secretions from human beings or animals. “Medical Waste” also includes
any substance, pollutant, material, or contaminant listed or regulated under the Medical Waste Tracking Act of 1988, 42 U.S.C. §§6992, et seq. (“MWTA”). 
  
 “Medical Waste Law” means the following, including regulations promulgated and orders issued thereunder, all as
may be amended from time to time: the MWTA; the U.S. Public Vessel Medical Waste Anti-Dumping Act of 1988, 33 USCA §§2501 et seq.; the Marine Protection, Research, and Sanctuaries Act of 1972, 33 USCA §§1401 et seq.; the
Occupational Safety and Health Act, 29 USCA §§651 et seq.; the United States Department of Health and Human Services, National Institute for Occupational Self-Safety and Health Infectious Waste Disposal Guidelines, Publication No. 88-119;
and any other federal, state, regional, county, municipal, or other local laws, regulations, and ordinances insofar as they purport to regulate Medical Waste, or impose requirements relating to Medical Waste. 
  
 4.39 No Untrue or Inaccurate Representation or Warranty. No
representation or warranty by Sellers contains or will contain any untrue statement of fact, or omits or will omit to state a fact necessary to make the statements therein not misleading. 
  
 5. REPRESENTATIONS AND WARRANTIES OF THE ACQUIRING COMPANIES. The Acquiring Companies represent and warrant to the Seller that
the statements contained in this Section 5 are correct and complete as of the Closing Date. 
  
 5.1 Organization of PainCare and Subsidiary. PainCare is a corporation duly organized, validly existing, and in good standing under the laws of the State of Florida. Subsidiary is a corporation duly organized,
validly existing and in good standing under the laws of the State of Florida with authorization to do business in Georgia. 
  
 5.2 Authorization of Transaction. PainCare and Subsidiary have full power and authority (including full corporate power and authority) to execute
and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of PainCare, enforceable in accordance with its terms and conditions. 
  
 5.3 No Violations. Neither the execution, delivery nor performance of
this Agreement or any other documents, instruments or agreements executed by the Acquiring Companies in connection herewith, nor the consummation of the transactions contemplated hereby: (a) constitutes a violation of or default under (either
immediately, upon notice or upon lapse of time) the Articles of Incorporation or Bylaws of Buyer, any provision of any contract to which Buyer or its assets may be bound, any judgment to which Buyer is bound or any law applicable to Buyer; or (b)
result in the creation or imposition of any encumbrance upon, or give any third person any interest in or right to, any or all of the Initial Shares or any other capital stock of Buyer or any of the assets of Buyer; or (c) result in the loss or
adverse modification of, or the imposition of any fine or penalty with respect to, any license, permit or franchise granted or issued to, or otherwise held by or for the use of, Buyer. 
  

 25 

 5.4 Consents. The execution, delivery and performance by Buyer of this Agreement and the
consummation by Buyer of the transactions contemplated hereby do not require any consent that has not been received prior to the date hereof. 
  
 5.5 Brokers. Buyer has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement for which the Seller or the Seller could become liable or obligated. 
  
 5.6 Full Disclosure. To the best knowledge of Buyer, no representation or warranty by Buyer in this Agreement, nor any statement, certificate,
schedule, document or exhibit hereto furnished or to be furnished by or on behalf of Buyer pursuant to this Agreement or in connection with transactions contemplated hereby, contains or shall contain any untrue statement of material fact or omits or
shall omit a material fact necessary to make the statements contained therein not materially misleading. 
  
 6. OTHER MATTERS 
  
 6.1
Confidentiality. Subject to the Closing, and as an inducement to Buyer to execute this Agreement and complete the transactions contemplated hereby, and in order to preserve the goodwill associated with the Business, Seller hereby covenants
and agrees as follows: 
  
 (a) Covenant of
Confidentiality. Seller shall not at any time subsequent to the Closing, except as explicitly requested by Buyer, (i) use for any purpose, (ii) disclose to any person, or (iii) keep or make copies of documents, tapes, discs or programs
containing, any confidential information concerning the Business, the Purchased Assets or the Assumed Liabilities. For purposes hereof, “confidential information” shall mean and include, without limitation, all Intellectual Property which
are Purchased Assets, all patient files and information on the Business, and all other information concerning the processes, apparatus, equipment, services offered, packaging, products, marketing and distribution methods of the Business, not
previously disclosed to the public directly by Seller. 
  
 (b)
Equitable Relief for Violations. Seller agrees that the provisions and restrictions contained in this Section are necessary to protect the legitimate continuing interests of the Acquiring Companies in acquiring the Business through the
purchase of the Purchased Assets and the assumption of the Assumed Liabilities, and that any violation or breach of these provisions will result in irreparable injury to the Acquiring Companies for which a remedy at law would be inadequate and that,
in addition to any relief at law which may be available to the Acquiring Companies for such violation or breach and regardless of any other provision contained in this Agreement, the Acquiring Companies shall be entitled to injunctive and other
equitable relief as a court may grant after considering the intent of this Section. 
  
 6.2 After Closing. After the Closing, each party will afford the other party, its counsel, accountants and other representatives, during normal business hours, reasonable access to the books, records and other
data in such party’s possession relating directly or indirectly to the properties, liabilities or operations of the Business, with respect to periods prior to the 
  

 26 

 Closing, and the right to make copies and extracts therefrom, to the extent that such access may be reasonably required
by the requesting party for any proper business purpose. Each party agrees for a period extending three years after the Closing not to destroy or otherwise dispose of any such records without first offering in writing to surrender such records to
the other party, which party shall have ten (10) days after such offer to agree in writing to take possession thereof. 
  
 6.3 Bulk Sales Compliance. Following the execution of this Agreement, Buyer and Seller shall cooperate in complying with all provisions of the bulk
sales or bulk transfer statutes of all states having jurisdiction, in such a way as to provide the Acquiring Companies the greatest measure of protection against the creditors of Seller allowable under all such statutes. 
  
 6.4 Management Agreement. In connection with this acquisition, the
Parties agree that the Subsidiary will enter into as of the Closing with the Company a management services agreement in the form attached hereto as Exhibit “A” (hereinafter the “MSA”) and Dr. Windsor and the Company will execute
and deliver an Employment Agreement in the form attached hereto as Exhibit “B”. Dr. Windsor shall be designated by the Subsidiary as the Medical Group Administrator under the MSA. 
  
 7. FURTHER COVENANTS OF SELLER 
  
 Seller covenants and agrees as follows: 
  
 7.1 Access to Information and Records. Seller shall give Buyer, its
counsel, accountants and other representatives(i)access during normal business hours to all of the properties, books, records, contracts and documents of Seller relating to the Business or the Purchased Assets or Assumed Liabilities for the purpose
of such inspection, investigation and testing as Buyer deems appropriate (and Seller shall furnish or cause to be furnished to Buyer and its representatives all information with respect to the Business Buyer may request); (ii) access to employees,
agents and representatives of the Business for the purpose of conducting business, meetings and communications as Buyer reasonably desires; and (iii) access to vendors, customers, manufacturers of its medication and equipment, and others having
business dealings with the Business. 
  
 7.2 Maintain
Organization. Seller will take such action as may be necessary to maintain, preserve, renew and keep in favor and effect the existence, rights and franchises of the Business and will use their best efforts to preserve the Business intact, to
keep available to the Acquiring Companies the present non-medical employees of the Business, and to preserve for the Acquiring Companies its present relationships with suppliers and customers and others having business relationships with the
Business. 
  
 7.3 No Breach. Seller will not do or omit any
act, or permit any omission to act, which may cause a breach of any contract, commitment or obligation material to the Business, or any breach of any representation, warranty, covenant or agreement made by Seller herein, or which would have required
disclosure pursuant to this Agreement. 
  

 27 

 7.4 No Material Contracts. No contract or commitment will be entered into, and no purchase of
medication, equipment, inventory, or supplies and no sale of goods or services (real, personal, or mixed, tangible or intangible) will be made, by or on behalf of Seller or the Subsidiary in connection with its operation of the Business. 

 
 7.5 Maintenance of Insurance. Seller shall take all necessary
action to maintain for the benefit of the Subsidiary all of the insurance set forth in Disclosure Schedule 4.7. 
  
 7.6 Consents. Seller will use its best efforts prior to Closing to obtain all consents necessary for the consummation of the transactions
contemplated hereby. 
  
 7.7 Other Action. Seller shall use
its best efforts to cause the fulfillment at the earliest practicable date of all of the conditions to the parties’ obligations to consummate the transactions contemplated in this Agreement. 
  
 7.8 Disclosure. Seller shall have a continuing obligation which shall
survive the Closing to promptly notify Buyer in writing with respect to any matter hereafter arising or discovered which, if existing or known at the date of this Agreement, would have been required to be set forth herein or described in the
disclosure schedules, but no such disclosure shall cure any breach of any representation or warranty which is inaccurate. 
  
 8. CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS 
  
 Notwithstanding the execution and delivery of this Agreement or the performance of any part hereof, Buyer’s obligations to consummate the transaction contemplated by
this Agreement shall be subject to the satisfaction of each of the conditions set forth in this Section 8, except to the extent that such satisfaction is waived by Buyer in writing. 
  
 8.1 Representations and Warranties True on the Effective Date. Each of the representations and warranties made by
Seller in this Agreement, and the statements contained in the disclosure schedules or in any instrument, list, certificate or writing delivered by Seller pursuant to this Agreement, shall be true and correct in all material respects when made and
shall be true and correct in all material respects at and as of the Effective Date as though such representations and warranties were made or given on and as of the Effective Date, except for any changes permitted by the terms of this Agreement or
consented to in writing by Buyer. 
  
 8.2 Compliance With
Agreement. Seller shall have in all material respects performed and complied with all of its agreements and obligations under this Agreement which are to be performed or complied with by Seller prior to or on the Effective Date, including the
delivery of the closing documents specified in this Agreement. 
  
 8.3 Absence of Litigation. No Litigation shall have been commenced or threatened, and no investigation by any Government Entity shall have been commenced against Buyer, Seller, the Company or the Business with respect to the
transactions contemplated hereby. 
  

 28 

 8.4. Consents and Approvals. All approvals, consents and waivers that are required to effect the
transactions contemplated hereby shall have been received, and executed counterparts thereof shall have been delivered to Buyer prior to the Effective Date including, without limitation, the consent and approval of Laurus. Notwithstanding the
foregoing, receipt of the consent of any third party to the assignment of a Contract which is not (and is not required to be) disclosed in the disclosure schedules shall not be a condition to Buyer’s obligation to close, provided that the
aggregate of all such Contracts does not represent a material portion of the sales or expenditures of the Business. After the Closing, Seller will continue to use its best effects to obtain any such consents or approvals, and Seller shall not hereby
be relieved of any liability hereunder for failure to perform any of its covenants or for the inaccuracy of any representation or warranty. 
  
 8.5. Estoppel Certificates. Buyer shall have obtained on or prior to the Effective Date an estoppel certificate or status letter from the landlord
under the lease for the Business Location(s) to be assumed pursuant to this Agreement which estoppel certificate or status letter will certify (i) the lease is valid and in full force and effect; (ii) the amounts payable by Seller under the lease
and the date to which the same have been paid; (iii) whether there are, to the knowledge of said landlord, any defaults thereunder, and, if so, specifying the nature thereof; and (iv) that the transactions contemplated by this Agreement will not
constitute default under the lease and that the landlord consents to the assignment of the lease to The Subsidiary. 
  
 8.6 Completion of Due Diligence, Schedules & Exhibits. Completion of Buyer’s due diligence and the completion and delivery of the
Disclosure Schedules and Exhibits required by this Agreement, all to the reasonable satisfaction of Buyer, based upon its knowledge and information, of all matters relative to Seller, the Purchased Assets, Assumed Liabilities and the Business. If
Buyer does not complete its due diligence or the Disclosure Schedules and Exhibits are not completed and delivered to the appropriate Party or if the Buyer is not reasonably satisfied as to all such matters by May 28, 2004, then this Agreement and
all other collateral documents executed in connection with the transactions contemplated by this Agreement may be terminated and rescinded by Buyer and Seller shall immediately return to the Buyer any consideration paid to Seller and any other cost
or expense incurred by the Acquiring Companies with respect to this transaction. 
  
 9. CONDITIONS PRECEDENT TO SELLER’S OBLIGATIONS 
  
 Notwithstanding the execution and delivery of this Agreement or the performance of any part hereof, Seller’s obligations to consummate the transaction contemplated by this Agreement shall be subject to the satisfaction of each of the
conditions set forth in this Section 9, except to the extent that such satisfaction is waived in writing by Seller. 
  
 9.1 Representations and Warranties True on the Effective Date. Each of the representations and warranties made by Buyer in this Agreement shall be
true and correct in all material respects when made and shall be true and correct in all material respects at and as of the Effective Date as though such representations and warranties were made or given on and as of the Effective Date. 

 

 29 

 9.2 Compliance With Agreement. Buyer shall have in all material respects performed and complied
with all of Buyer’s agreements and obligations under this Agreement which are to be performed or complied with by Buyer prior to or on the Effective Date, including the delivery of the closing documents specified in this Agreement. 

 
 10. CLOSING 
  
 10.1 Closing Date. Consummation of the contemplated transaction (the “Closing”) shall take place on
May 25, 2004 or on such other date or at such other time or place as may be mutually agreed upon in writing by the parties hereto (the “Closing Date”). Notwithstanding the foregoing Closing Date, the parties hereby agree that unless
otherwise agreed in writing that the Closing shall not be effective until the satisfaction or waiver of the conditions precedent set forth in Sections 8 and 9 of this Agreement (the “Effective Date”). The Closing shall take place at
the offices of Buyer in Orlando, Florida, or at such other place as the parties hereto shall agree upon. Such date is referred to in this Agreement as the “Closing Date”. 
  
 10.2 Documents to be Delivered by Seller. At the Closing, Seller shall deliver to the Acquiring Companies the
following documents, in each case duly executed or otherwise in proper form: 
  
 (a) Bills of Sale. Bills of sale and such other instruments of assignment, transfer, conveyance and endorsement as will be sufficient in the opinion of Buyer and its counsel to transfer, assign, convey and
deliver to the Subsidiary the Purchased Assets as contemplated hereby. 
  
 (b) Compliance Certificate. A certificate signed by the Seller that each of the representations and warranties made by Seller in this Agreement is true and correct in all material respects on and as of the Effective Date with the
same effect as though such representations and warranties had been made or given on and as of the Effective Date (except for any changes permitted by the terms of this Agreement or consented to in writing by Buyer), and that Seller has performed and
complied with all of Seller’s obligations under this Agreement which are to be performed or complied with on or prior to the Effective Date. 
  
 (c) Other Documents. All other documents, instruments or writings required to be delivered to the Acquiring Companies at or prior to the Closing
pursuant to this Agreement and such other certificates of authority and documents as Buyer may reasonably request including, without limitation, the “MSA” and Dr. Windsor’s Employment Agreement. 
  
 10.3 Documents to be Delivered by Buyer. At the Closing or as soon
thereafter as is reasonably possible, Buyer shall deliver to Seller the following consideration and documents, in each case duly executed or otherwise in proper form: 
  
 (a) Purchase Price. To Seller the Cash Due At Closing required by Section 3.1 hereof. 
  

 30 

 (b) Assumption of Liabilities. Such undertakings and instruments of assumption as will be
reasonably sufficient in the opinion of Seller and its counsel to evidence the assumption of the Assumed Liabilities. 
  
 (c) Compliance Certificate. A certificate signed by the CEO of Buyer that the representations and warranties made by Buyer in this Agreement are
true and correct on and as of the Effective Date with the same effect as though such representations and warranties had been made or given on and as of the Effective Date (except for any changes permitted by the terms of this Agreement or consented
to in writing by Seller), and that Buyer has performed and complied with all of Buyer’s obligations under this Agreement which are to be performed or complied with on or prior to the Effective Date. 
  
 (d) Other Documents. All other documents, instruments or writings
required to be delivered to Seller at or prior to the Closing pursuant to this Agreement and such other certificates of authority and documents as Seller may reasonably request. 
  
 11. POST-CLOSING COVENANTS. The Parties agree as follows with respect to the period following the Execution Date: 

 
 11.1 General. In the event that at any time after the Closing any
further action is necessary to carry out the purposes of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as any other Party may reasonably request,
all at the sole cost and expense of the requesting Party. 
  
 11.2 Tax Returns. The Seller shall be responsible for preparing and filing all income or franchise Tax Returns with respect to the Business relating to periods of time prior to the Closing Date. The Subsidiary will be responsible for
preparing and filing all income and franchise Tax Returns of the Subsidiary relating to periods after the Closing. The Seller will provide the Subsidiary with an opportunity to review and comment on such Tax Returns (including any amended returns).
The Seller will take no positions on its Tax Returns that relate to the tax period prior to the Closing Date that could adversely affect PainCare or the Subsidiary after the Closing. 
  
 11.3 Transition. Neither the Seller nor the Buyer will take any action that is designed, intended or likely to have
the effect of discouraging any lessor, licensor, customer, supplier or other business associate of the Seller from maintaining the same business relationships with the Buyer and the Subsidiary after the Closing as he, she or it maintained with the
Seller prior to the Closing. 
  
 11.4 Litigation Support.
In the event and for so long as any Party actively is contesting or defending against any action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand in connection with: (a) any transaction contemplated under this Agreement;
or (b) any 
  

 31 

 fact, situation, circumstances, status, condition, activity, practice, occurrence, event, incident, action, failure to
act, or transaction on or prior to the Closing Date with respect to the Business, each of the Parties will cooperate with the contesting or defending Party and its or his counsel in the contest or defense, at the sole cost and expense of the
contesting or defending Party except to the extent that the contesting or defending party is entitled to indemnification therefore under this Agreement. 
  
 11.5 Consents. The Seller hereby covenants and agrees that, after the Execution Date, he will use its best efforts to obtain all authorizations,
consents, and approvals set forth in the Disclosure Schedules. If such consent, approval or agreement is not obtained, or if an attempted assignment thereof would affect the rights of the parties thereunder so that such parties would not in fact
receive all such rights, the Parties will cooperate in any arrangement designed to provide for the Parties to receive the benefits under any such contract, including enforcement for the benefit of PainCare and Subsidiary of any and all rights of the
Seller against a third party thereto arising out of the breach or cancellation by such third party or otherwise. 
  
 12. RESTRICTIVE COVENANTS 
  
 12.1 Covenants of the Company and Dr. Windsor. The Company, during the Term of the MSA (as defined in the MSA) and for two (2) years thereafter,
and Dr. Windsor, during the term of such his employment pursuant to that certain employment agreement dated May 25, 2004 between Dr. Windsor and Company and for two (2) years thereafter, shall not: 
  
 12.1.1 Directly or indirectly, provide professional medical or other health
care services, or have any interest in an entity which provides such services (except in connection with the Practice (as defined in the MSA), within a one hundred (100) mile radius, of any office location (the “Office Location”) of the
Company; 
  
 12.1.2 Solicit, negotiate, discuss or enter into any
agreement with any party other than Manager (as defined in the MSA) or an Affiliate of Manager, pursuant to which such party provides to the Company services similar to the services which Manager provides to the Company pursuant to the MSA;

  
 12.1.3 Develop, hold any ownership interest in or participate
in the management of, complete a practice sale to, contract with, or provide any other services (including any non-medical services) to any entity which operates a practitioner practice management business similar to that conducted by Manager or its
Affiliates within a 100 mile radius of the Office Location; provided, however, it shall not be deemed a violation of this provision if Dr. Windsor only holds a passive investment of less than a Five Percent (5%) interest in, but does not contract
with, any company that is traded on the New York Stock Exchange, American Stock Exchange or the NASDAQ National Market; or 
  
 12.1.4 Solicit for employment, or employ or engage, by himself, or on behalf of any other entity, as an employee, independent contractor or in any other
capacity whatsoever, any individual who is or was employed by Manager, or an Affiliate of Manager, during the Term of the MSA. 
  

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 12.2 Enforcement. The Company and Dr. Windsor agree that any breach of the restrictive covenant in
Section 12 will result in irreparable damage to PainCare and Manager for which Manager will have no adequate remedy at law, and, therefore, the Company and Dr. Windsor consent to any temporary or permanent injunction or decree of specific
performance by any court of competent jurisdiction in favor of PainCare and Manager enjoining any such breach, without prejudice to any other right or remedy to which PainCare and Manager shall be entitled including remedies at law. All of
PainCare’s Affiliates and Manager’s Affiliates are specifically hereby named as third party beneficiaries of the covenants contained in Section 12 with full right and power to enforce these provisions against the Company and Dr. Windsor.

  
 12.3 Revision/Severability. The necessity of each of
the restrictions set forth in Section 12 and the nature and scope of each such restriction have been carefully considered, bargained for and agreed to by the Parties and the Parties conclusively agree that they are reasonable in time and geographic
area and are necessary to protect the legitimate business interests of PainCare and Manager. However, in the event that any portion of this Section 12 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its
being extended over too great a period of time or too large a geographic area or over too great a range of activities, it shall be interpreted or rewritten to extend only over the maximum period of time, geographic area, or range of activities as to
which it may be enforceable. Each of the provisions herein shall be deemed a separate and severable covenant. Moreover, the Parties agree that the existence of any claim or cause of action by the Company or Dr. Windsor against PainCare or Manager,
whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement of the restrictive covenants set forth herein, but shall be litigated separately. 
  
 12.4 Tolling of Period. In the event of a breach of this Section 12, and PainCare or Manager, any of their successors
and assigns or any of their Affiliates brings an action for injunctive relief or other relief, such Party bringing the action shall not, as a result of the time involved in obtaining the relief, be deprived of the benefit of the full period of the
restrictive covenant, unless a court of competent jurisdiction holds that the restrictive covenant is not enforceable in whole or in part. Accordingly, for any time period in which the restrictive covenants set forth in Section 12 are being
violated, such time period shall not be included in calculating the duration of the restrictive covenants stated above. 
  
 13. SURVIVAL AND INDEMNIFICATION. 
  
 13.1 Survival of Representations and Warranties. All of the representations, warranties, covenants, and agreements including but not limited to the
restrictive covenants and the indemnification provisions contained in this Agreement are material and have been relied upon by the Parties hereto and shall survive the Closing. The representations and warranties contained herein shall not be
affected by any investigation, verification or examination by any Party or by anyone on behalf of such Party. 
  

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 13.2 Indemnification Provisions for the Benefit of PainCare and the Subsidiary. In the event of:
(a) a misrepresentation (or in the event any third party alleges facts that, if true, would mean a misrepresentation) of any of the Seller’s representations and/or warranties contained in this Agreement; (b) a breach (or in the event any third
party alleges facts that, if true, would mean a breach) of any of the Seller’ covenants contained in this Agreement or any other agreement executed in connection herewith; or (c) any Liability or Claim against the Seller, the Business or the
Purchased Assets of any nature whatsoever accrued or existing as of the Closing Date or related to actions of the Seller or arising out of the Business which occurred prior to, contemporaneously with or after the Closing Date, which is not reflected
on the Disclosure Schedules and accepted by the Buyer, then the Seller agrees to indemnify PainCare and Subsidiary from and against any Adverse Consequences PainCare and Subsidiary may suffer through and after the date of the claim for
indemnification resulting from, arising out of, relating to, in the nature of, or caused by the misrepresentation or breach (or alleged breach) or non-disclosed or non-accepted Liability. No provision of this Agreement, including but not in any way
limited to, any “Knowledge” qualifiers or materiality standards in the representations and warranties of the Seller, shall have any effect on the Sellers’ indemnity for any Liability arising prior to the Closing Date. 
  
 13.3 Indemnification Provisions for the Benefit of the Seller. In the
event of a misrepresentation or breach (or in the event any third party alleges facts that, if true, would mean a misrepresentation or breach) of any of PainCare’s or Subsidiary’s representations, warranties, and covenants contained in
this Agreement, then PainCare and Subsidiary agree to indemnify the Seller from and against any Adverse Consequences the Seller may suffer through and after the date of the claim for indemnification resulting from, arising out of, relating to, in
the nature of, or caused by the breach (or the alleged breach). 
  
 13.4 Matters Involving Third Parties. 
  
 13.4.1 Notification. If any third party shall notify any Party (the “Indemnified Party”) with respect to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification against the other
Party (the “Indemnifying Party”) pursuant to this Section, then the Indemnified Party shall promptly notify the Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying the
Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless the Indemnifying Party thereby is prejudiced and then only to the extent that the Indemnifying Party is actually prejudiced. 
  
 13.4.2 Defense by Indemnifying Party. The Indemnifying Party shall
have the right to defend the Indemnified Party against the Third Party Claim with counsel of its choice satisfactory to the Indemnified Party so long as: (i) the Indemnifying Party notifies the Indemnified Party in writing within ten (10) business
days after the Indemnified Party has given notice of the Third Party Claim that the Indemnifying Party will indemnify the Indemnified Party from and against any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of,
relating to, in the nature of, or caused by the Third Party Claim; (ii) the Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the 
  

 34 

 Indemnified Party that the Indemnifying Party will have the financial resources to defend against the Third Party Claim
and fulfill the Indemnifying Party’s indemnification obligations hereunder; (iii) the Third Party Claim involves only money damages and does not seek an injunction or other equitable relief; (iv) settlement of, or an adverse judgment with
respect to, the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to establish a precedential custom or practice adverse to the continuing business interests of the Indemnified Party; and (e) the Indemnifying
Party conducts the defense of the Third Party Claim actively and diligently. 
  
 13.4.3 Satisfactory Defense. So long as the Indemnifying Party is conducting the defense of the Third Party Claim in accordance with Section 10.4(b) above: (i) the Indemnified Party may retain separate
co-counsel at its sole cost and expense and participate in the defense of the Third Party Claim; (ii) the Indemnified Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the
prior written consent of the Indemnifying Party (not to be withheld or delayed unreasonably); and (iii) the Indemnifying Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without
the prior written consent of the Indemnified Party (not to be withheld or delayed unreasonably) and any such settlement must include a complete release of the Indemnified Party. 
  
 13.4.4 Conditions. In the event any of the conditions in Section 13.4.2 above is or becomes unsatisfied, however: (i)
the Indemnified Party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to, the Third Party Claim in any manner it reasonably may deem appropriate (and the Indemnified Party need not consult with,
or obtain any consent from, the Indemnifying Party in connection therewith); (ii) the Indemnifying Party will reimburse the Indemnified Party promptly and periodically for the costs of defending against the Third Party Claim (including reasonable
attorneys’ fees and expenses); and (iii) the Indemnifying Party will remain responsible for any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third Party
Claim to the fullest extent provided in this Section 13. 
  
 13.4.5 Right to Set-Off. If any such cost, loss, damage, expense, liability, claim, or obligation occurs or is incurred by PainCare or Subsidiary, PainCare or Subsidiary shall have the right, after written notice to the Seller, at
PainCare’s or Subsidiary’s option and in addition to any other actions permitted by law, to offset the amount of any such cost, loss, damage, expense, liability, obligation or claim against amounts due from PainCare or Subsidiary to the
Seller, including the right to offset any post-closing payment due from PainCare or Subsidiary to the Seller under this Agreement or any other agreement. 
  
 13.4.6 Materiality. Notwithstanding any provision in this Agreement to the contrary, the indemnifying Party’s obligation to indemnify the
Indemnified Party in connection with a breach of any representation, warranty, covenant or other agreement included in this Agreement, and the amount of damages to be indemnified, shall be determined without regard to any “material”,
“materiality” (or correlative meanings”) or “material adverse effect” qualifications, provisions or exceptions set forth in such representation, warranty, covenant or other agreement, each of which shall be deemed to be
given for the purposes of this Section 13 as though there were no such qualifications, provisions or exceptions. 
  

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 13.4.7 Limitation. The indemnification provisions set forth in this Section 13 shall be limited to
all claims in excess of Twenty Five Thousand and 00/100 Dollars ($25,000) (the “Threshold”). Once a claim exceeds the Threshold, if a Party is entitled to indemnification under this Section 13, such party shall recover all appropriate
funds from the first dollar of damages. Further, the indemnitors shall not be liable for any liabilities resulting from claims that are covered by any insurance policy or other indemnity or contribution agreement unless, and only to the extent that,
the full limit of such insurance policy, indemnity or contribution agreement has been exceeded. The Party entitled to indemnification shall have a duty to mitigate its damages. 
  
 14. MISCELLANEOUS 
  
  
 14.1 Disclosure Schedules. Information set forth in the Disclosure
Schedules specifically refers to the article and section of this Agreement to which such information is responsive and such information shall not be deemed to have been disclosed with respect to any other article or section of this Agreement or for
any other purpose. The Disclosure Schedules shall not vary, change or alter the language of the representations and warranties contained in this Agreement and, to the extent the language in the Disclosure Schedules does not conform in every respect
to the language of such representations and warranties, such language shall be disregarded and be of no force or effect. 
  
 14.2 Further Assurance. From time to time, at Buyer’s request and without further consideration, Seller will execute and deliver to Buyer such
documents and take such other action as Buyer may reasonably request in order to consummate more effectively the transactions contemplated hereby and to vest in the Subsidiary good, valid and marketable title to the business and assets being
transferred hereunder. 
  
 14.3. Assignment; Parties in
Interest. 
  
 (a) Assignment. Except as expressly
provided herein, the rights and obligations of a party hereunder may not be assigned, transferred or encumbered without the prior written consent of the other party. Notwithstanding the foregoing, Buyer may, without consent of the other party, cause
one or more subsidiaries of Buyer to carry out all or part of the transactions contemplated hereby; provided, however, that Buyer shall, nevertheless, remain liable for all of its obligations, and those of any such subsidiary, to Seller hereunder.

  
 (b) Parties in Interest. This Agreement shall be
binding upon, inure to the benefit of, and be enforceable by the respective successors and permitted assigns of the parties hereto. Nothing contained herein shall be deemed to confer upon any other person any right or remedy under or by reason of
this Agreement. 
  

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 14.4 Amendment and Modification. Buyer and Seller may amend, modify and supplement this Agreement
in such manner as may be agreed upon by them in writing. 
  
 14.5
Notice. All notices, requests, demands and other communications hereunder shall be given in writing and shall be: (a) personally delivered; (b) sent by telecopier, facsimile transmission or other electronic means of transmitting written
documents; or (c) sent to the parties at their respective addresses indicated herein by registered or certified U.S. mail, return receipt requested and postage prepaid, or by private overnight mail courier service. The respective addresses to be
used for all such notices, demands or requests are as follows: 
  

	 	(a)	If to Buyer, to: 

  

	
	 PainCare Holdings, Inc.

	 37 North Orange Avenue

	 Suite 500

	 Orlando, Florida 32801

	 Attention: President

  
 or to such other person or address as
Buyer shall furnish to Seller in writing. 
  

	 	(b)	If to Seller, to: 

  

	
	 C/O Robert E. Windsor, M.D.

	 8195 Grogan’s Ferry Rd.

	       Dunwoody, GA 30350

	
	 (with a copy to)

	
	 Arthur A. Graves, III, Esq.

	 The Oxford Law Firm

	 P.O. Box 8708 – Dept. #621

	 Newport Beach, CA 92660

	       Facsimile: (949) 442-0849

  
 or to such other
person or address as Seller and Principal Sellers shall furnish to Buyer in writing. 
  

 37 

 If personally delivered, such communication shall be deemed delivered upon actual receipt; if
electronically transmitted pursuant to this paragraph, such communication shall be deemed delivered the next business day after transmission (and sender shall bear the burden of proof of delivery); if sent by overnight courier pursuant to this
paragraph, such communication shall be deemed delivered upon receipt; and if sent by U.S. mail pursuant to this paragraph, such communication shall be deemed delivered as of the date of delivery indicated on the receipt issued by the relevant postal
service, or, if the addressee fails or refuses to accept delivery, as of the date of such failure or refusal. Any party to this Agreement may change its address for the purposes of this Agreement by giving notice thereof in accordance with this
Section. 
  
 14.6 Intentionally Omitted. 
  
 14.7 Entire Agreement. This instrument embodies the entire agreement
between the parties hereto with respect to the transactions contemplated herein, and there have been and are no agreements, representations or warranties between the parties other than those set forth or provided for herein. 
  
 14.8 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 14.9 Headings. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. 
  
 14.10 Press Releases, and Public Announcements. No Party shall issue
any press release or make any public announcement relating to the subject matter of this Agreement without the prior written approval of the other Parties. 
  
 14.11 Governing Law; Jurisdiction; Attorney’s Fees. This Agreement, and all proceedings hereunder, shall be governed by and construed in
accordance with the domestic laws of the State of Florida without giving effect to any choice or conflict of law provision or rule (either of the State of Florida or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Florida. In the event of any suit under this Agreement or otherwise between the parties hereto, the prevailing Party shall be entitled to all reasonable attorney’s fees and costs, including allocated costs
of in-house counsel, to be included in any judgment recovered. In addition, the prevailing Party shall be entitled to recover reasonable attorney’s fees and costs, including allocated costs of in-house counsel, incurred in enforcing any
judgment arising from a suit under this Agreement. This post-judgment attorney’s fees and costs provision shall be severable from the other provisions of this Agreement and shall survive any judgment on such suit and is not to be deemed merged
into the judgment. 
  
 14.12 Amendments and Waivers. No
amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the Parties. No waiver by any Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or
not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence and all waivers must be in
writing, signed by the waiving Party, to be effective. 
  

 38 

 14.13 Severability. Any term or provision of this Agreement that is invalid or unenforceable in
any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

  
 14.14 Expenses. Except as set forth herein, each of the
Parties will bear its or his own costs and expenses (including, but not limited to, legal and accounting fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby. 
  
 14.15 Further Assurances. Each Party shall, at the reasonable request
of any other Party hereto, execute and deliver to such other Party all such further instruments, assignments, assurances and other documents, and take such actions as such other Party may reasonably request in connection with the carrying out the
terms and provisions of this Agreement. 
  
 14.16
Construction. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including” shall
mean including without limitation. Nothing in the Disclosure Schedule shall be deemed adequate to disclose an exception to a representation or warranty made herein, unless the Disclosure Schedule identifies the exception with reasonable
particularity. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty, or covenant contained herein in any respect, the fact
that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from nor mitigate the fact that the Party is in
breach of the first representation, warranty, or covenant. 
  
 14.17 Survival. All of the representations, warranties, covenants and agreements made by the Parties in this Agreement or pursuant hereto in any certificate, instrument or document shall survive the consummation of the transactions
described herein shall survive for all applicable statute of limitations, and may be fully and completely relied upon by Sellers and Purchasers, as the case may be, notwithstanding any investigation heretofore or hereafter made by any of them or on
behalf of any of them, and shall not be deemed merged into any instruments or agreements delivered at Closing or thereafter. 
  
 14.18 Incorporation of Exhibits and Schedules. The exhibits and schedules (including the Disclosure Schedule) identified in this Agreement and the
recitals first set forth above are incorporated herein by reference and made a part hereof. 
  

 39 

 14.19 Submission to Jurisdiction. Each party to this Agreement hereby submits to exclusive
jurisdiction of any state or federal court within Orange County, Florida for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby. Each party to this Agreement hereby irrevocably
waives, to the fullest extent permitted by law, any objections which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum. 
  
 15. DEFINITIONS. All capitalized
words that are not capitalized for purposes of grammar and which are not defined in the text of this Agreement are defined terms with their definitions set forth on Exhibit 1. 
  
 [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] 
  

 40 

 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date and year first
above written. 
  

							
	 	 	                 “SELLERS”
	 	 	 	                 “BUYER”

		
	Georgia Pain Physicians, P.C	 	PainCare Holdings, Inc.
				
	By:	 	 /s/ Robert E. Windsor

	 	By:	 	 /s/ Randy Lubinsky

	 	 	Robert E. Windsor, M.D.	 	 	 	Randy Lubinsky, CEO
	 	 	President and Secretary	 	 	 	 
				
	Attest:	 	
	 	Attest:	 	  

  
  

			
	Individual
		
	 By:
	 	 /s/ Robert E. Windsor

	 	 	 Robert E. Windsor, M.D.

		
	 Attest:
	 	  

  

			
	 The Windsor Family Limited Partnership

		
	 By:
	 	 /s/ Robert E. Windsor

	 	 	 Robert E. Windsor, M.D.,

	 	 	 Manager Of R.E. Windsor, LLC, as

	 	 	 General Partner

		
	 Attest:
	 	  

	
	 Windsor Nongrantor Trust (U/D/T 2004)

		
	 By:
	 	 /s/ Arthur A. Graves, III

	 	 	 Arthur A. Graves, III,

	 	 	 President First Trustee Fiduciary Services, Inc.

	 	 	 As Trustee

		
	 Attest:
	 	  

  

 41 

 EXHIBIT 1 
  

DEFINITIONS 
  
 For purposes of this Agreement, the following terms shall have the meanings set forth below: 
  
 1. “Accounts Receivable” means the accounts receivable of the Seller determined in
accordance with GAAP with respect to the Business operations prior to the Closing Date arising from the rendering of services to patients through the Closing Date, including, without limitation, those from private pay patients, private insurance
payors, third party payors and governmental programs. 
  
 “A/R
Adjustment” has the meaning set forth in Section 3.2(a). 
  
 “Adverse
Consequences” means all actions, suits, proceedings, hearings, investigations, complaints, claims, demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, Liabilities,
obligations, Taxes, liens, losses, expenses, and fees, including court costs and reasonable attorneys’ fees and expenses. 
  
 “Affiliate” shall mean, with respect to any Person: (a) any corporation, proprietorship, partnership, limited liability company, or any other business entity
whatsoever that, directly or indirectly, owns or controls, is under common ownership or control with, or is owned or controlled by, such Person; and (b) if the Person is an individual, any other individual who is related to such Person. For the
purposes of this definition, the terms “controls,” “is controlled by” and “is under common control with” shall mean 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. Neither PainCare nor Subsidiary is an Affiliate of the Seller for purposes of this Agreement and the Seller is not an Affiliate of PainCare or
Subsidiary for purposes of this Agreement. 
  
 “Agreement” has the
meaning set forth in the Preamble. 
  
 “Code” means the Internal Revenue
Code of 1986, as amended. 
  
 “Commission” means the U.S. Securities and
Exchange Commission. 
  
 “Buyer Shares” or PainCare Shares means any
share of common stock of PainCare. 
  
 “Disclosure Schedule(s)” means
the disclosure schedules accompanying this Agreement. 
  
 “Employee Benefit
Plan” means any: (a) nonqualified deferred compensation or retirement plan or arrangement which is an Employee Pension Benefit Plan; (b) qualified defined contribution retirement plan or arrangement which is an Employee Pension Benefit Plan;
(c) qualified defined 
  

 42 

 benefit retirement plan or arrangement which is an Employee Pension Benefit Plan (including any Multiemployer Plan); (d)
Employee Welfare Benefit Plan; or (e) any bonus, incentive, severance, stock option, stock purchase, short-term disability plan or other material fringe benefit plan, program or arrangement, including policies concerning holidays, vacations and
salary continuation during short absences for illness or otherwise. 
  
 “Environmental, Health, and Safety Requirements” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource Conservation and Recovery Act of 1976, the Clean Air Act, the Federal Water
Pollution Control Act, the Safe Drinking Water Act, the Toxic Substance Control Act, the Emergency Planning and Community Right-to-Know Act of 1986, the Hazardous Material Transportation Act, and the Occupational Safety and Health Act of 1970, each
as amended, together with all other laws (including rules, regulations, codes, injunctions, judgments, orders, decrees, and rulings) of federal, state, local, and foreign governments (and all agencies thereof) concerning pollution or protection of
the environment, public health and safety, or employee health and safety, including laws relating to emissions, discharges, releases, or threatened releases of pollutants, contaminants, or chemical, industrial, hazardous, or toxic materials
(including petroleum products and asbestos) or wastes into ambient air, surface water, ground water, or lands or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of
pollutants, contaminants, or chemical, industrial, hazardous, or toxic materials or wastes. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 Intentionally Omitted. 
  
 “Formula Period” has the meaning set forth in Section 3.3. 
  
 “Formula Period Profits Statement” has the meaning set forth in Section 3.3. 
  
 “GAAP” means the United States generally accepted accounting principles in effect from time to time. 
  
 “Intended Installment Payment” has the meaning set forth in Section 3.3.

  
 “Installment Payment” has the meaning set forth in Section 3.3.

  
 “Installment Payment Discount” has the meaning set forth in Section
3.3. 
  
 “Installment Payment Premium” has the meaning set forth in
Section 3.3. 
  
 “IRS” means the U.S. Internal Revenue Service.

  
 “Knowledge” An individual will be deemed to have “Knowledge of
a particular fact or other matter if: 
  
 (a) such individual is
actually aware of such fact or other matter; or 
  

 43 

 (b) a prudent individual could be expected to discover or otherwise become aware of such fact or other
matter in the course of conducting a reasonably comprehensive investigation concerning the existence of such fact or other matter. 
  
 A Person (other than an individual) will be deemed to have “Knowledge” of a particular fact or other matter if the Shareholder or any individual
who is a serving, or who has at any time served, as a director, officer, partner, executor, or trustee of such Person (or in any similar capacity) has, or at any time had, Knowledge of such fact or other matter. 
  
 “Liability” means any liability, whether known or unknown, whether asserted or
unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due, including, but not in any way limited to, any liability for Taxes. 
  
 “PainCare” has the meaning set forth in the Preamble. 
  
 Intentionally Omitted. 
  
 “Party(ies)” has the meaning set forth in the Preamble. 
  
 “Person” means an individual, a partnership, a corporation, an association, a joint stock company, a limited liability company or
partnership, a trust, a joint venture, an unincorporated organization, any other form of entity whatsoever, or a governmental entity (or any department, agency, or political subdivision thereof). 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended.

  
 “Security Interest” means any lien, claim, encumbrance, mortgage,
hypothecation, pledge, or other security interest, excluding purchase money security interests arising in the ordinary course of business and liens arising by operation of law for Taxes not yet due and payable. 
  
 “Subsidiary” has the meaning set forth in the Preamble. 
  
 “Tax” or “Taxes” means any federal, state, local, or foreign income,
gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code Section 59A), customs duties, capital stock, franchise, profits, withholding, social security
(or similar), unemployment, disability, real property, personal property, sales, use, production, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including interest, penalty, or
additions thereto, whether disputed or not, and whether or not accrued on the Financial Statements. 
  

 44 

 “Tax Return” means any return, declaration, report, claim for refund, or information return or statement
relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  

 45

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