Document:

Valero GP, LLC Supplemental Executive Retirement Plan

 Exhibit 10.12 
 VALERO GP, LLC 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 Effective July 1, 2006 

 VALERO GP, LLC 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	ARTICLE I	 	DEFINITIONS	  	2
			
	1.1  	 	Accrued Benefit	  	2
	1.2  	 	Actuarial Equivalent or Actuarially Equivalent Basis	  	2
	1.3  	 	Board of Directors	  	2
	1.4  	 	Change in Control	  	2
	1.5  	 	Code	  	4
	1.6  	 	Company	  	4
	1.7  	 	Committee	  	4
	1.8  	 	Covered Compensation	  	4
	1.9  	 	Credited Service	  	4
	1.10	 	Eligible Earnings	  	5
	1.11	 	Final Average Compensation	  	5
	1.12	 	Monthly Covered Compensation	  	5
	1.13	 	Monthly FICA Amount	  	5
	1.14	 	Normal Retirement Date	  	5
	1.15	 	Participant	  	5
	1.16	 	Pension Plan	  	6
	1.17	 	Pension Plan Benefit	  	6
	1.18	 	Plan	  	6
	1.19	 	Plan of Deferred Compensation	  	6
	1.20	 	Plan Year	  	6
	1.21	 	Prior Pension Plan	  	6
	1.22	 	Prior Pension Plan Benefit	  	6
	1.23	 	Rules	  	6
	1.24	 	Securities Act	  	6
	1.25	 	Separation from Service	  	6
	1.26	 	Subsidiary	  	6
	1.27	 	Surviving Spouse	  	7
	1.28	 	Trust	  	7
	1.29	 	Trustee	  	7
			
	ARTICLE II	 	ELIGIBILITY	  	7
			
	2.1  	 	Eligibility	  	7
	2.2  	 	Frozen Participation	  	7
	2.3  	 	Renewed Eligibility	  	7

  

 i 

					
	ARTICLE III	  	VESTING	  	8
			
	ARTICLE IV	  	RETIREMENT BENEFIT	  	8
			
	4.1  	  	Calculation of Retirement Benefit	  	8
	4.2  	  	Form and Time of Payment	  	9
	4.3  	  	Modification of Pension	  	9
	4.4  	  	Delay of Certain Payments	  	9
			
	ARTICLE V	  	PRERETIREMENT SPOUSAL DEATH BENEFIT	  	10
			
	5.1  	  	Death Prior to Commencement of Benefits	  	10
	5.2  	  	Death After Commencement of Benefits	  	10
	5.3  	  	Beneficiary Designation Prohibited	  	10
			
	ARTICLE VI	  	PROVISIONS RELATING TO ALL BENEFITS	  	10
			
	6.1  	  	Effect of This Article	  	10
	6.2  	  	Termination of Employment	  	10
	6.3  	  	No Duplication of Benefits	  	10
	6.4  	  	Forfeiture For Cause	  	10
	6.5  	  	Forfeiture for Competition	  	11
	6.6  	  	Expenses Incurred in Enforcing the Plan	  	11
	6.7  	  	No Restrictions on any Portion of Total Payments Determined to be Excess Parachute Payments	  	11
	6.8  	  	Benefits Upon Re-employment	  	11
			
	ARTICLE VII	  	ADMINISTRATION	  	11
			
	7.1  	  	Committee	  	11
	7.2  	  	Powers of the Committee	  	11
	7.3  	  	Committee Discretion	  	12
	7.4  	  	Reliance Upon Information	  	12
			
	ARTICLE VIII	  	ADOPTION BY SUBSIDIARIES	  	12
			
	8.1  	  	Procedure for and Status After Adoption	  	12
	8.2  	  	Termination of Participation By Adopting Subsidiary	  	13
			
	ARTICLE IX	  	AMENDMENT AND/OR TERMINATION	  	13
			
	9.1  	  	Amendment or Termination of the Plan	  	13
	9.2  	  	No Retroactive Effect on Annual Benefits	  	13
	9.3  	  	Effect of Termination	  	13
	9.4  	  	Effect of Change in Control	  	13
			
	ARTICLE X	  	FUNDING	  	14
			
	10.1	  	Payments from Trust	  	14
	10.2	  	Plan May Be Funded Through Life Insurance	  	14
	10.3	  	Funding of Rabbi Trust	  	14
	10.4	  	Ownership of Assets; Release	  	14
	10.5	  	Reversion of Excess Assets	  	15
	10.6	  	Participants Must Rely Only on General Credit of the Companies	  	15

  

 ii 

					
	ARTICLE XI	  	MISCELLANEOUS	  	15
			
	11.1  	  	Responsibility for Distributions and Withholding of Taxes	  	15
	11.2  	  	Limitation of Rights	  	16
	11.3  	  	Resolution of Disputes	  	16
	11.4  	  	Distributions to Incompetents	  	16
	11.5  	  	Nonalienation of Benefits	  	16
	11.6  	  	Severability	  	17
	11.7  	  	Notice	  	17
	11.8  	  	Gender and Number	  	17
	11.9  	  	Governing Law	  	17
	11.10	  	Effective Date	  	17

  

 iii 

 VALERO GP, LLC 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 The Valero GP, LLC Supplemental Executive Retirement Plan
(hereinafter referred to as the “SERP” or the “Plan”) is hereby established effective July 1, 2006 for the purpose of providing certain highly compensated, management personnel of Valero GP, LLC and its subsidiaries
(hereinafter collectively referred to as the “Company”) a supplement to the retirement benefit they may otherwise receive under the Valero GP, LLC Pension Plan (the “Pension Plan”) and the Valero Energy Corporation Pension Plan
(“Prior Pension Plan”). 
 Benefits under the Plan are limited to a select group of management or other highly compensated
employees. The Plan is not intended to constitute either a qualified plan under the provisions of Section 401 of the Code or a funded plan subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 The Plan is established in connection with a spin-off from the Valero Energy Corporation Supplemental Executive Retirement Plan
(“Predecessor SERP”) of the benefits accrued under such Predecessor SERP with respect to eligible Employees of the Company. In this connection, it is the intent of the Company that this Plan not constitute a new nonqualified deferred
compensation plan, but rather merely an assumption and continuation of the Predecessor SERP, effective as of July 1, 2006, with respect to eligible Employees of the Company who have accrued a benefit under the Predecessor SERP. The original
effective date of the Predecessor SERP was January 1, 1983. 
 The Company has established the Pension Plan effective as of July 1,
2006, to provide defined benefit pension benefits to eligible Employees of the Company, with respect to future service. Effective as of July 1, 2006, eligible Employees of the Company will cease accruing additional benefits under the Prior
Pension Plan and the Prior SERP. It is the intent of the 
  

					
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 Company that this Plan shall assume the liabilities of the Prior SERP as of July 1, 2006, with respect to eligible
Employees of the Company, and shall provide a single, nonqualified defined benefit to eligible Employees for their pre-July 1, 2006 benefit accruals under the Predecessor SERP and their post-July 1, 2006 benefit accruals under this Plan.

 It is the intent of the Company and Valero Energy Corporation (“VEC”) that this Plan be maintained by the Company for the
benefit of eligible Employees of the Company and that, from and after the effective date hereof, this spin-off plan and the Company shall be solely liable for all benefits due such eligible Employees under this Plan and the Predecessor SERP.

 ARTICLE I 
 DEFINITIONS 
 All defined terms used in the Pension Plan shall have the same meaning for this Plan, except as otherwise set
forth below. 
 1.1 Accrued Benefit. “Accrued Benefit” means, as of any given date of determination, the Retirement benefit
calculated under Section 4.1 with Final Average Compensation, but with the offsets for the aggregate benefits provided under the Pension Plan and the Prior Pension Plan, and Credited Service determined as of the particular date. 
 1.2 Actuarial Equivalent or Actuarially Equivalent Basis. “Actuarial Equivalent” or “Actuarially Equivalent Basis” means an
equality in value of the aggregate amounts expected to be received under different forms of payment based on the same mortality and interest rate assumptions. For this purpose, the mortality and interest rate assumptions used in computing benefits
under the Pension Plan will be used. If there is no Pension Plan, then the actuarial assumptions to be used for purposes of this Plan will be those actuarial assumptions deemed appropriate by the actuarial firm, which last served as independent
actuary for the Pension Plan, or such other actuarial firm determined by the Committee. 
 1.3 Board of Directors. “Board of
Directors” means the Board of Directors of the Company. 
 1.4 Change in Control. “Change in Control” shall mean the
occurrence of one or more of the following events: 
  
 (a)
Any one person or more than one person acting as a group (a “Group”) shall acquire (whether in one or more transactions) ownership of interests in the Company that, together with interests held by such person or Group, constitutes more

  

					
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      than 50% of the total fair market value or total voting power of
all interests, of the Company; or 
 (b) any one person or Group acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or Group) ownership interests in the Company representing 35% or more of the total voting power of all such interests in the Company; or 
 (c) a majority of the members of the governing body of the Company (or, for purposes of this subparagraph (c), the relevant entity under
the provisions of Prop. Treas. Reg. §1.409A-3(g)(5)(vi)(A)) is replaced during any 12-month period by members whose appointment or election is not endorsed by a majority of the members of the governing body of the Company prior to the date of
appointment or election; or 
 (d) any one person or Group acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or Group) assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately prior to
such acquisition or acquisitions. 
 (e) A Change in Control shall also be deemed to occur if a Change in Control, as defined
in (a), (b), (c) or (d) above, shall occur with respect to: 
 (i) the entity for which a Participant is providing
services at the time of such Change in Control, or 
 (ii) the entity liable for paying the benefits under this Plan (or all
such entities if more than one entity shall be so liable); or 
 (iii) an entity that is the majority holder of interests in
any entity identified in (i) or (ii), or any entity in a chain of entities in which such entity is a majority holder of interests in another entity in the chain, ending in an entity identified in (i) or (ii) above. 
 (f) Special Rules. 
 (i) For purposes of calculating ownership in determining whether a Change in Control has occurred, the attribution rules of Code section 318(a) shall apply with respect to stock of a corporation, and shall be applied by analogy with respect
to other types of business entities. 
 (ii) If, at the time of a transaction, any one person or Group is considered to own
more than 50 percent of the total fair market value or total voting power of interests in the Company (or other entity), or is considered to own 35 percent or more of the total voting power of interests in the Company (or other entity), then the
acquisition of additional interests in the Company or other entity shall not be treated as a Change in Control under section (a) or (b) above, as applicable. 
  

					
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 (iii) For purposes of applying the provisions of section (d) above, a transfer of
assets is not treated as a change in the ownership of such assets if the assets are transferred to: 
 (1) any person or
Group who holds an interest in the Company, in exchange for such interest; 
 (2) an entity, 50% or more of the total value
or voting power of which is owned, directly or indirectly, by the Company; 
 (3) a person or Group that owns, directly or
indirectly, 50% or more of the total value or voting power of the Company; or 
 (4) an entity, at least 50% of the total
value or voting powers of which is owned, directly or indirectly, by a person or Group described in (3) above. 
 In
applying the provisions of this section (f)(iii), a person’s status is determined immediately after the transfer of assets. 
 1.5
Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 1.6 Company.
“Company” means the Valero GP, LLC, or any successor by merger, purchase or otherwise. 
 1.7 Committee.
“Committee” means the Benefit Plans Administrative Committee of the Company. 
 1.8 Covered Compensation. “Covered
Compensation” means the average (without indexing) of the Taxable Wage Base for the 35 calendar years ending with the calendar year in which a Participant attains social security retirement age (as defined in Section 415(b)(8) of the
Code). A 35-year period shall be used for all Participants regardless of the year of birth of such Participant. In determining a Participant’s Covered Compensation prior to the Participant attaining social security retirement age, it shall be
assumed that the Taxable Wage Base in effect at the beginning of the Plan Year in which such determination is made will remain constant for all future years. 
 1.9 Credited Service. “Credited Service” means a Participant’s continuing period of employment with the Company (whether or not contiguous), commencing on the first day for which such Participant
is paid, or entitled to payment, for the performance of duties with the Company and terminating with the Participant’s final cessation of participation in the Plan. With respect to any full calendar year in which a Participant receives Eligible
Earnings in each payroll period as an active Employee, he shall be credited with one year of Credited Service. With respect to any partial calendar year in which a Participant receives Eligible Earnings as an active Employee (such as the calendar
year in which employment commences or participation ceases) he shall be credited with a fraction of a year of Credited Service, in the same proportion that the number of payroll periods during such calendar year that he received Eligible Earnings as
an 
  

					
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 active Employee bears to the total number of payroll periods during such year. All partial years of Credited Service
shall be aggregated so that a Participant receives credit for all periods of employment regardless of whether the Credited Service is interrupted. Credited Service shall also include, and a Participant shall be credited with, such additional periods
of time, if any, as may have been agreed upon by the Participant and the Company in connection with the Participant’s employment, termination or otherwise. 
 For Participants who: (a) are or become Employees at any time during the period beginning on the Effective Date and ending on the date that Valero Energy Corporation ceases to own (directly or indirectly) any
ownership interest in the Company, and (b) immediately prior to becoming Employees, were employees of Valero Energy Company or an affiliate of Valero Energy Company, Credited Service shall also include the service credited for such Employees
under the Valero Energy Corporation Pension Plan. 
 1.10 Eligible Earnings. “Eligible Earnings” means all compensation paid
or payable by the Company to the employee in the form of base salary or wages and bonuses (whether paid or payable in cash or securities or any combination thereof), including therein any amounts of such base salary or wages and bonuses earned
which, at the employee’s election, in lieu of a cash payment to him, are contributed to a Plan of Deferred Compensation maintained by the Company, if any. During a leave of absence from work, with or without pay, such as disability leave of
absence or personal leave of absence, the Participant’s base rate of pay in effect immediately prior to the leave of absence and his most recent bonus amount earned shall be used in computing his Eligible Earnings. 
 1.11 Final Average Compensation. “Final Average Compensation” means a Participant’s average monthly Eligible Earnings from any
Company for the thirty-six consecutive calendar months that give the highest average monthly rate of Eligible Earnings for the Participant out of all calendar months next preceding the earliest of (a) the date upon which a Participant becomes
ineligible for participation in this Plan pursuant to Section 2.2, (b) the latest of (i) the Participant’s termination for total disability or (ii) his Separation from Service, (c) the termination of this Plan or
(d) a Change in Control. 
 1.12 Monthly Covered Compensation. “Monthly Covered Compensation” means the quotient
resulting from dividing Covered Compensation by 12. 
 1.13 Monthly FICA Amount. “Monthly FICA Amount” means the quotient
resulting from dividing by 12 the Taxable Wage Base in effect or assumed to be in effect at the beginning of the calendar year in which a Participant attains social security retirement age (as defined in Code section 415(b)(8)). 
 1.14 Normal Retirement Date. “Normal Retirement Date” means the first day of the month coincident with or next following the date on
which the Participant attains the age of 65 years. 
 1.15 Participant. “Participant” means either (a) an employee of
the Company who is eligible for and is participating in the Plan or (b) a former employee of the Company who is receiving, or is eligible to receive benefits under the Plan. 
  

					
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 1.16 Pension Plan. “Pension Plan” means the Valero GP, LLC Pension Plan, a defined
benefit plan qualified under Section 401(a) of the Code, as it may be amended from time to time and any successor qualified defined benefit plan. 
 1.17 Pension Plan Benefit. “Pension Plan Benefit” means the amount of monthly benefit payable from the Pension Plan which (i) in the case of an unmarried Participant, is based upon a lifetime
annuity payable to such Participant pursuant to the provisions of Article 4 of the Pension Plan, or any successor provision; or, (ii) in the case of a married Participant, is based upon a joint and survivor pension of Actuarially Equivalent
Value to the pension otherwise payable to such Participant for life pursuant to the provisions of Article 4 of the Pension Plan or any successor provision. 
 1.18 Plan. “Plan” means the Valero GP, LLC Supplemental Executive Retirement Plan as set forth in this document, and as amended from time to time. 
 1.19 Plan of Deferred Compensation. “Plan of Deferred Compensation” means any non-qualified deferred compensation plan or arrangement,
any Code section 125 cafeteria plan, or any Code section 401(k) cash or deferred arrangement maintained by the Company. 
 1.20 Plan
Year. “Plan Year” means the calendar year. 
 1.21 Prior Pension Plan. “Prior Pension Plan” means the Valero
Energy Corporation Pension Plan, as amended. 
 1.22 Prior Pension Plan Benefit. “Prior Pension Plan Benefit” means the
amount of monthly benefit payable from the Prior Pension Plan which (i) in the case of an unmarried Participant, is based upon a lifetime annuity payable to such Participant pursuant to the provisions of Article 4 of the Prior Pension Plan, or
any successor provision; or, (ii) in the case of a married Participant, is based upon a joint and survivor pension of Actuarially Equivalent Value to the pension otherwise payable to such Participant for life pursuant to the provisions of
Article 4 of the Prior Pension Plan or any successor provision. 
 1.23 Rules. “Rules” means the Commercial Arbitration
Rules of the American Arbitration Association in effect at the date of commencement of any arbitration hereunder. 
 1.24 Securities
Act. “Securities Act” means the Securities Exchange Act of 1934, as amended from time to time. 
 1.25 Separation from
Service. “Separation from Service” shall mean a separation from service as defined in Code section 409A and the regulations and rulings issued thereunder. 
 1.26 Subsidiary. “Subsidiary” means (i) any corporation 50% or more of whose stock having ordinary voting power to elect directors (irrespective of whether or not at the time stock of any class
or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned, directly or indirectly, by the Company, and (ii) any partnership, association, joint venture or other
entity in which, the Company, directly or indirectly, has a 50% or greater equity interest at the time. 
  

					
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 1.27 Surviving Spouse. “Surviving Spouse” means the spouse of a Participant who is
eligible to receive a Qualified Pre-retirement Survivor Annuity benefit under the Pension Plan. 
 1.28 Trust. “Trust” or
“Trust Agreement” shall mean the trust, if any, created to fund benefits under the Plan pursuant to Article X. 
 1.29
Trustee. “Trustee” means collectively one or more persons or corporations with trust power which have been appointed by the Committee and have accepted the duties of Trustee of the Trust (if any) and any and all successor or
successors appointed by the Company. 
 ARTICLE II 
 ELIGIBILITY 
 2.1 Eligibility. An Employee shall become a Participant in the Plan as of the
date he is selected by the Committee for inclusion as a Participant in the Plan. Ongoing eligibility and participation of Participants shall be determined by the Committee in its sole discretion, and no employee shall have a right to initial or
ongoing participation in this Plan. As of the Effective Date, any Employee who was a participant in the Prior SERP shall automatically become a Participant in this Plan. 
 2.2 Frozen Participation. If an Employee who is a Participant later becomes ineligible to continue to participate but still is employed by an adopting Company, his Accrued Benefit will be frozen as of the last
day of the Plan Year prior to the Plan Year during which he initially became ineligible to participate. He will later be entitled to that frozen Accrued Benefit, upon his Separation from Service (if, at the time of such Separation from Service, his
Accrued Benefit is vested), subject to the requirements of Articles III and IV. The frozen Accrued Benefit will be payable at the time and in the form set forth in Article IV. The Surviving Spouse of a Participant whose Accrued Benefit is frozen at
the time of the Participant’s death shall not be entitled to any death benefit under this Plan. A Participant whose Accrued Benefit is frozen at the time of incurring a disability shall not accrue any further Credited Service either for accrual
or vesting purposes after the disability occurs so long as the Participant’s Accrued Benefit in this Plan is frozen. If the frozen Accrued Benefit is less than the benefit which could otherwise be provided without this limitation, then the
benefit will not exceed the Participant’s frozen Accrued Benefit. Additionally, if any of the events described in Article VI should occur, the Participant whose Accrued Benefit is frozen shall be subject to having his frozen Accrued Benefit
either restricted in amount or forfeited in accordance with Article VI. 
 2.3 Renewed Eligibility. If an employee who is a
Participant becomes ineligible to continue to participate but remains employed by an adopting Company and then later again becomes eligible to participate, the Participant will be given Credited Service for the intervening period, will have his
Final Average Compensation computed as though the freeze had never occurred, and will be treated for all purposes as though he had not had his participation interrupted. 
  

					
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 ARTICLE III 
 VESTING 
 Except as otherwise set forth herein, a Participant’s Accrued Benefit shall vest
pursuant to the following vesting schedule: 
  

				
	 Participant’s Years of Credited Service
	  	Vested Percentage	 
	 Less than 5
	  	0	%
	 5 or more
	  	100	%

 Notwithstanding the foregoing, the portion of a Participant’s Accrued Benefit attributable to
Credited Service attained on or after January 1, 1996, shall vest only upon the occurrence of the Participant’s (i) death, (ii) Disability, or (iii) Separation from Service after the Participant has attained age 55 and 5
years of Credited Service. In the event of the Participant’s Separation from Service prior to attaining age 55 and 5 years of Credited Service for any reason other than death or Disability, the Participant’s Accrued Benefit hereunder shall
be forfeited, and, in such case, the Participant shall be eligible for benefits under the Valero GP, LLC Excess Pension Plan if, and to the extent, the Participant satisfies the eligibility criteria for benefits under such plan. 
 Notwithstanding the foregoing provisions, a Participant’s Accrued Benefit (whether attributable to Credited Service earned prior to, on, or after,
January 1, 1996) shall vest upon the occurrence of a Change in Control, upon termination of the Plan pursuant to Section 9.1 or if the adopting Subsidiary employing a Participant terminates its participation in the Plan and such
Participant’s participation in the Plan is not promptly continued through employment by another adopting Subsidiary. 
 ARTICLE IV

 RETIREMENT BENEFIT 
 4.1 Calculation of Retirement Benefit. Subject to the following provisions of this Section 4.1, the provisions of Section 4.3 and Article III; the monthly pension payable under the Plan shall be an amount equal to the sum
of (i) plus (ii) minus (iii) where (i) equals: 1.60% of the Participant’s Final Average Compensation multiplied by his number of years of Credited Service; and (ii) equals .35% multiplied by the product of his number of
years of Credited Service (not to exceed 35 years) times the excess of his Final Average Compensation over the lesser of (a) 1.25 times his Monthly Covered Compensation, or (b) the Monthly FICA Amount; and (iii) equals the sum of the
Participant’s Pension Plan Benefit and Prior Pension Plan Benefit. In the case of an unmarried Participant the benefit shall be based on a lifetime annuity. In the case of a married Participant the benefit shall be a fifty percent
(50%) Qualified Joint and Survivor Annuity pension of Actuarially Equivalent Value to the pension otherwise payable for life hereunder. The monthly pension payable under the Plan, as determined above, shall be further reduced by the equivalent
amount the Pension Plan Benefit and the Prior Pension Plan 
  

					
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 Benefit are increased as a result of increases in the amount of maximum benefits payable from qualified plans in
accordance with Code Section 415 or other applicable law. If a Participant’s benefits commence prior to his Normal Retirement Date, the monthly pension payable to such Participant shall be determined by multiplying the monthly pension
otherwise payable to him by the applicable early retirement reduction factor contained in the Pension Plan. 
 4.2 Form and Time of
Payment. Benefits under the Plan shall commence upon the Participant’s Separation from Service. In the event that the present lump-sum Actuarial Value of a Participant’s benefit at Separation from Service is $50,000 or less, such
benefit shall be paid in a single lump sum cash payment. In the event that the present lump-sum Actuarial Value of a Participant’s benefit at Separation from Service is greater than $50,000, such benefits shall be made available to the
Participant only in the form of the monthly annuity payment forms available to the Participant under the Pension Plan which are Actuarial Equivalent lifetime annuities. Any optional annuity form normally available under the Pension Plan that is
coordinated with such Participant’s Social Security benefit, or is not an Actuarial Equivalent lifetime annuity, shall not be an available optional payment form under this Plan. In that regard, the Company shall furnish each Participant, on or
about 180 days prior to the date on which he will have both attained age 55 and completed five years of Credited Service, or, if earlier, the date he will have attained age 65, a written explanation of (a) the terms and conditions of payment
provided under the form of payments as described in the Pension Plan and the optional forms of payment which may be elected in lieu thereof; (b) the terms and conditions of payment provided under the automatic pension as described in the
Pension Plan; and (c) the relative financial effect on a Participant’s total pension of an election not to take the standard and automatic pension. In addition, the Company shall also furnish each married Participant at least 120 days
prior to the date his benefit is scheduled to commence under the Plan, a written statement of the amount of pension which would be payable on his behalf under the standard and automatic Qualified Joint and Survivor Annuity pension as is described in
the Pension Plan; and the amount of pension otherwise payable under the available optional forms of benefit. 
 4.3 Modification of
Pension. The Committee shall have the right to modify the calculation of the benefit payable as to any Participant as it may desire from time to time; provided, however, that any such modification shall not result in a reduction of the benefit
payable below the amount set forth above in Section 4.1. In addition, except as expressly provided for herein, benefits payable under this Plan to any Participant shall not affect any other right or entitlement a Participant may have by
contract or otherwise. In addition, the benefits payable to a Participant under this Plan may be modified by written agreement entered into between the Participant and a Company and approved pursuant to Section 7.7. If so modified, the
provisions of such written agreement shall prevail in determining such Participant’s rights and benefits under this Plan. 
 4.4
Delay of Certain Payments. With respect to any Participant who is a “Specified Employee,” as defined in Code Section 409A and the regulations and rulings issued thereunder, any benefit that becomes payable by reason of such
Participant’s Separation from Service shall not commence prior to the date that is six (6) months following such Participant’s Separation from Service. Upon commencement of any benefit delayed by application of this Section 4.4,
the monthly benefit payable to the Participant shall be determined as of the Participant’s Separation from Service, and the first payment shall include all payments that would have 
  

					
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 otherwise becomes payable during the period of such delay. The provisions of this Section 4.4 shall not apply
(a) with respect to any benefit that becomes payable due to the death of the Participant, or (b) if, at the time of such Participant’s Separation from Service, no stock of the Company is publicly traded on an established securities
market or otherwise. 
 ARTICLE V 
 PRERETIREMENT SPOUSAL DEATH BENEFIT 
 5.1 Death Prior to Commencement of Benefits. In the event that a Participant
dies prior to commencing payment of his benefit hereunder, the Participant’s Surviving Spouse shall receive for life a Surviving Spouse benefit under the Plan, which shall continence on the first day of the month following the date of the
Participant’s death and shall be equal to fifty percent (50%) of the amount the Participant would have received under Section 4.1 if he had experienced a Separation from Service on his date of death and elected immediate commencement
of his pension on his Separation from Service. 
 5.2 Death After Commencement of Benefits. Upon the death of a Participant at or
after the date that the Participant has commenced payment of his benefit hereunder, there is no separate death benefit and the Surviving Spouse shall be entitled to receive only the survivor portion of any benefit otherwise payable, based upon the
form of annuity elected by the Participant under Section 4.1. 
 5.3 Beneficiary Designation Prohibited. Since the only death
benefit payable under the Plan is to a Surviving Spouse, and no Participant shall have the right to designate a beneficiary to receive death benefits hereunder. 
 ARTICLE VI 
 PROVISIONS RELATING TO ALL BENEFITS 
 6.1 Effect of This Article. The provisions of this Article will control over all other provisions of this Plan. 
 6.2 Termination of Employment. Termination of employment for any reason prior to the participant’s vesting under Article III or Article V, if
applicable, will cause the Participant and any Surviving Spouse to forfeit all interest in and under this Plan. 
 6.3 No Duplication of
Benefits. It is not intended that there be any duplication of benefits. Therefore, in no event will a Participant and/or such Participant’s Surviving Spouse qualify for a benefit under both Articles IV and V. 
 6.4 Forfeiture For Cause. If the Committee finds, after full consideration of the facts presented on behalf of both the Company and a Participant,
that the Participant was discharged by a Company for fraud, embezzlement, theft, commission of a felony, proven dishonesty in the course of his employment by a Company which damaged the Company, or for disclosing trade secrets of a Company, the
entire benefit accrued for the benefit of the Participant and/or his Surviving Spouse will be forfeited even though it may have been previously vested 
  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            10	 	

 under Article III or V. The decision of the Committee as to the cause of a former Participant’s discharge and the
damage done to the Company will be final. No decision of the Committee will affect the finality of the discharge of the Participant by the Company in any manner. Notwithstanding the foregoing, no forfeiture should be permitted pursuant to this
Section following Plan termination or a Change in Control unless pursuant to arbitration consistent with the provisions of Section 11.3. 
 6.5 Forfeiture for Competition. If at the time a distribution is being made or is to be made to a Participant, the Committee finds after full consideration of the facts presented on behalf of the Company and the Participant, that the
Participant at any time within two years following his termination of employment from all Companies and without written consent of a Company, directly or indirectly owns, operates, manages, controls or participates in the ownership (other than
through ownership of less than 5% of the common stock of a publicly traded entity), management, operation or control of or is employed by, or is paid as a consultant or other independent contractor by a business which competes with the Company by
which he was formerly employed in a trade area served by the Company at the time distributions are being made or to be made and in which the Participant had represented the Company while employed by it; and if the Participant continues to be so
engaged 60 days after written notice has been given to him, the Committee may forfeit all benefits otherwise due the Participant even though such benefit may have been previously vested under Article III or V. Notwithstanding the foregoing, no
forfeiture shall be permitted pursuant to this Section following Plan termination or a Change in Control unless pursuant to arbitration consistent with the provisions of Section 11.3. 
 6.6 Expenses Incurred in Enforcing the Plan. The Company will pay a Participant for all reasonable legal fees and expenses incurred by him in
successfully contesting or disputing his termination of employment by a Company or in successfully seeking to obtain or enforce any benefit provided by this Plan if such termination occurs or a benefit is payable following a Change in Control.

 6.7 No Restrictions on any Portion of Total Payments Determined to be Excess Parachute Payments. Notwithstanding that any payment
or benefit received or to be received by a Participant in connection with a Change in Control, or the termination of his employment by a Company, would not be deductible, whether in whole or in part, by a Company or any affiliated company, as a
result of Section 280G of the Code, the benefits payable under this Plan shall nevertheless not be reduced. 
 6.8 Benefits Upon
Re-employment. If a former employee who is receiving benefit payments under this Plan is re-employed by the Company, the payment of the benefit will continue during his period of re-employment. The re-employed former employee’s benefit will
not be changed as a result of his re-employment. 
 ARTICLE VII 
 ADMINISTRATION 
 7.1 Committee. The Plan shall be administered by the
Committee. 
  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            11	 	

 7.2 Powers of the Committee. The Committee will have the exclusive responsibility for the general
administration of this Plan according to the terms and provisions of this Plan and will have all powers necessary to accomplish those purposes, including but not by way of limitation the right, power and authority: 
 (a) to make rules and regulations for the administration of this Plan; 
 (b) to construe all terms, provisions, conditions and limitations of this Plan; 
 (c) to correct any defect, supply any omission or reconcile any inconsistency that may appear in this Plan; 
 (d) to determine all controversies relating to the administration of this Plan, including but not limited to: 
 (1) differences of opinion arising between a Company and a Participant, and 
 (2) any question it deems advisable to determine in order to promote the uniform administration of this Plan for the benefit of all
interested parties; and 
 (e) to delegate, without limitation, by written notice to the Company’s Chief Financial
Officer, the Trustee, the Committee or any other designee, powers of investment and administration as well as those clerical and recordation duties of the Committee, as it deems necessary or advisable for the proper and efficient administration of
this Plan. 
 7.3 Committee Discretion. The Committee in exercising any power or authority granted under this Plan or in making any
determination under this Plan may use its sole discretion and judgment. Any decision made or any act or omission, by the Committee in good faith shall be final and binding on all parties and, except as otherwise set forth in Sections 6.4, 6.5 and
7.2(d)(1), shall not be subject to de novo review. 
 7.4 Reliance Upon Information. The Committee will not be liable for any
decision or action taken in good faith in connection with the administration of this Plan. Without limiting the generality of the foregoing, any decision or action taken by the Committee when it relies upon information supplied it by any officer of
the Company, the Company’s legal counsel, the Company’s actuary, the Company’s independent accountants or other advisors in connection with the administration of this Plan will be deemed to have been taken in good faith. 

ARTICLE VIII 
 ADOPTION BY
SUBSIDIARIES 
 8.1 Procedure for and Status After Adoption. Any Subsidiary of the Company at the date of adoption of this Plan,
and any entity becoming a Subsidiary of the Company after such date of adoption, may adopt this Plan by appropriate action of its board of directors or other governing body. Any power reserved under this Plan to the Company may be exercised

  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            12	 	

 separately by each such Subsidiary adopting the Plan; provided, however, that (i) powers reserved under this Plan to
the Board of Directors or the Committee shall be exercised only by the Board of Directors of the Company or Committee thereof and (ii) powers reserved under this Plan to the Company shall be exercised only by the Company. Each Subsidiary
adopting the Plan delegates to the Company exclusive administrative responsibility for the Plan. However, the Company may allocate the costs of Plan benefits among the Companies in any reasonable manner such that each Company shall bear the costs of
participation by those Participants who are or were employees of such Company. Each Subsidiary, by adopting this Plan, and in consideration of the like undertakings of the other adopting Subsidiaries, agrees that the obligations and liabilities of
the Company(ies) for the payment of benefits to any Participants (and to any person claiming through a Participant) hereunder shall be the joint and several obligation of each Subsidiary adopting the Plan, not solely of the Company employing or
previously employing a Participant. Accordingly, each such adopting Subsidiary agrees that, to the extent permitted under-Section 10.4, each Participant (and any person claiming through a Participant) shall have recourse and a right of action
to enforce benefits payable under this Plan against any and all Companies contemporaneously participating in the Plan during the period of such Participant’s Credited Service. 
 8.2 Termination of Participation By Adopting Subsidiary. Any Subsidiary adopting this Plan may, by appropriate action of its board of directors or
other governing body, terminate its participation in this Plan. The Committee may, in its discretion, also terminate a Subsidiary’s participation in this Plan at any time. The termination of the participation in this Plan by a Subsidiary will
not, however, affect the rights of any Participant who is working or has worked for the Subsidiary as to benefits previously vested under Article III of this Plan. 
 ARTICLE IX 
 AMENDMENT AND/OR TERMINATION 
 9.1 Amendment or Termination of the Plan. The Committee reserves the right in its sole discretion, to suspend, amend or terminate this Plan at any
time or from time to time, in whole or in part for whatever reason it deems appropriate. 
 9.2 No Retroactive Effect on Annual
Benefits. No amendment will affect the rights of any Participant to the Retirement benefit provided in Article IV previously accrued by the Participant or will change a Participant’s rights under any provision relating to a Change in
Control after a Change in Control has occurred without his consent. However, the Board of Directors retains the right at any time to change in any manner the Retirement benefit provided in Article IV but only as to accruals after the date of the
amendment. 
 9.3 Effect of Termination. If this Plan is terminated, then (i) no Surviving Spouse benefit will be provided to the
Surviving Spouse of a Participant dying on or after such date of termination, and no further Retirement benefit will accrue, and (ii) all Plan Participants in active employment of a Company (including Participants whose Accrued Benefit is
frozen pursuant to Section 2.2) shall become fully vested. In the event of the termination of the Plan, the Accrued Benefit payable to each affected current or frozen Participant (or Surviving Spouse) shall be determined as of such date of
termination and shall be paid at such time and in such form as it would be otherwise payable under the terms of the Plan. 
  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            13	 	

 9.4 Effect of Change in Control. Upon the occurrence of a Change in Control, all Accrued Benefits
of all Participants shall immediately become fully vested. The Accrued Benefit of each Participant shall be paid out at such time and in such form as it would otherwise be payable under the terms of this Plan. 
 ARTICLE X 
 FUNDING 

10.1 Payments from Trust. As set forth in Section 8.1, the Companies are jointly and severally liable to pay the benefits due under this
Plan. The Companies may establish, but shall not be required to establish a Trust to provide for the funding of benefits hereunder. 
 10.2
Plan May Be Funded Through Life Insurance. It is specifically recognized that the Company may, but is not required to, purchase life insurance so as to accumulate assets sufficient to fund obligations under this Plan and that the Company may,
but is not required to contribute any policy or policies it may purchase and any amount it finds desirable to the Trust or any other trust established to accumulate assets to fund obligations under this Plan. However, under all circumstances, the
Participants will have no rights in or to any such policies. 
 10.3 Funding of Rabbi Trust. To the extent the Company establishes a
Trust hereunder, the Company may make contributions of cash or other assets to the Trust, but shall not be required to make contributions thereto in any amount. Notwithstanding the foregoing, the Company may require that a Subsidiary adopting the
Plan make contributions to the Trust in an amount sufficient to satisfy the liability accrued under the Plan to Participants while employed by such Subsidiary. 
 10.4 Ownership of Assets; Release. All policies of insurance or other assets contributed to the Trust (or to any other trust established for the purpose of funding benefits hereunder) pursuant to Sections 10.2,
10.3 or otherwise shall be contributed by the Company, and all such policies or other assets shall be owned solely by the Company immediately prior to such contribution. No Participant shall contribute policies or assets to the Trust. As an internal
accounting matter, the Company may allocate liabilities under the Plan to the various Subsidiaries adopting the Plan. The Company may charge or allocate all or any part of such contributions to Subsidiaries adopting the Plan in any reasonable manner
determined by the Company in accordance with generally accepted accounting principles, and may record the amounts so allocated as obligations owing among the Company and such Subsidiaries. The Company may also allocate or distribute assets received
by it from the Trust pursuant to Section 10.5 hereof to such Subsidiaries in any reasonable manner determined by the Company in accordance with generally accepted accounting principles. However, notwithstanding the fact that a Subsidiary may be
deemed to have a claim against the Company with respect to such contributions or distributions, no Subsidiary shall at any time own or be deemed to own or have any contingent, reversionary or other beneficial interest in any portion of the policies
and other assets held in the Trust or any claim, against the Trustee or otherwise, with respect thereto. Each 
  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            14	 	

 Subsidiary, in consideration of the mutual covenants herein contained, for itself, its successors, assigns,
representatives, administrators, trustees and other persons claiming by, through or under such Subsidiary, hereby irrevocably and forever releases and relinquishes (i) any and all rights, claims and interests (beneficial, reversionary, actual,
contingent or otherwise), known or unknown, asserted or unasserted, which it has or may have, or may hereafter have, in or with respect to the Trust, the Trust Fund (as such term is defined in the Trust Agreement) and the policies and assets now or
hereafter from time to time contributed or contributable thereto, held therein or thereby, or distributable therefrom or thereby, and (ii) any claim, demand, action or cause of action whatsoever which it has or may have, or may hereafter have,
against the Trustee, its successors or assigns, with respect thereto. 
 10.5 Reversion of Excess Assets. Assets held pursuant to the
Trust shall not be loaned to any Company. However, the Company may, at any time, request the actuary who last performed the annual actuarial valuation of the Pension Plan to determine the Actuarial Equivalent of the Accrued Benefits, assuming the
Accrued Benefits to be fully vested (whether they are or not), as of the end of the Plan Year coincident with or last preceding the request, of all Participants and Surviving Spouses of deceased Participants for which the Company is or will be
obligated to make payments under this Plan. If the fair market value of the assets held in the Trust, as determined by the Trustee as of that same date, exceeds the Actuarial Equivalent of the Accrued Benefits of all such Participants and Surviving
Spouses by not less than 25%, then the Company may direct the Trustee to return to the Company that part of the assets which is in excess of 125% of the Actuarial Equivalent of the Accrued Benefits. If the Plan has terminated, all assets held in the
Trust following the distribution of all Accrued Benefits under the Plan shall revert to the Company. 
 10.6 Participants Must Rely Only
on General Credit of the Companies. The provisions of Sections 10.2 and 10.3 notwithstanding, it is specifically recognized by the Company and the Participants that this Plan is an unsecured corporate commitment and that each Participant (and
any Surviving Spouse or other person claiming through a Participant) must rely upon the general credit of the Company for the fulfillment of its obligations under this Plan. Nothing contained in this Plan or in the Trust Agreement will constitute a
representation, covenant or guarantee by the Company that the policies and assets transferred to the Trust (or any other trust established for the purpose of funding benefits hereunder) or the general assets of the Company will be sufficient to pay
any or all benefits under this Plan Neither this Plan nor the Trust creates any secured or priority position, preferential right, lien, claim, encumbrance, right, title or other interest of any kind in any Participant in any policy or other asset
held by the Company, contributed to the Trust (or any other trust established for the purpose of funding benefits hereunder) or otherwise designated to be used for payment of any obligations created in this Plan. No policy or other specific asset of
the Company has otherwise been or will be set aside, or has been or will be pledged in any way for the performance of obligations under this Plan, which would remove the policy or asset from being subject to the claims of the general creditors of
the respective Company. The Trust Agreement (and any other agreement entered into to fund obligations under this Plan) shall specify that, with respect to their benefits under this Plan, the Participants (and any Surviving Spouse or other person
claiming through a Participant) are only unsecured general creditors. 
  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            15	 	

 ARTICLE XI 
 MISCELLANEOUS 
 11.1 Responsibility for Distributions and Withholding of Taxes. The Company
shall calculate the amount of any distribution payable to a Participant hereunder, and the amounts of any deductions required with respect to federal, state or local tax withholding, and shall withhold or cause the same to be withheld. However, any
and all taxes payable with respect to any distribution or benefit hereunder shall be the sole responsibility of the Participant, not of the Company or any Company, whether or not the Company or any Company shall have withheld or collected from the
Participant any sums required to be so withheld or collected in respect thereof and whether or not any sums so withheld or collected shall be sufficient to provide for any such taxes. Without limitation of the foregoing, and except as may otherwise
be provided in any separate employment, severance or other agreement between the Participant and any Company, the individual Participant or Surviving Spouse, as the case may be, shall be solely responsible for payment of any excise, income or other
tax imposed (i) upon any payment hereunder which may be deemed to constitute an “excess parachute payment” pursuant to Section 4999 of the Code, or (ii) based upon any theory of “constructive receipt” of any
lump-sum or other amount hereunder. 
 11.2 Limitation of Rights. Nothing in this Plan will be construed: 
 (a) to give a Participant or other person claiming through him any right with respect to any benefit except in accordance with the terms
of this Plan or an agreement modifying rights under this Plan; 
 (b) to limit in any way the right of the Company to
terminate a Participant’s employment with the Company at any time; 
 (c) to evidence any agreement or understanding,
expressed or implied, that the Company will employ a Participant in any particular position or for any particular remuneration; or 
 (d) to give a Participant or any other person claiming through him any interest or right under this Plan other than that of any unsecured general creditor. 
 11.3 Resolution of Disputes. It is agreed that any and all disputes, claims, (whether tort, contract, statutory or otherwise) and/or controversies which relate in any manner to the Plan shall, subject to the
provisions of Article VII, be submitted to the Company’s established dispute resolution program applicable to employees generally. 
 11.4 Distributions to Incompetents. Should a Participant or a Surviving Spouse be incompetent at the time any payment is due hereunder, as determined by the Committee in its sole discretion, the Company is authorized to make such
payment to the guardian or conservator of the incompetent Participant or Surviving Spouse or directly to the Participant or Surviving Spouse or to apply those funds for the benefit of the incompetent Participant or Surviving Spouse in any manner the
Committee determines in its sole discretion. 
  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            16	 	

 11.5 Nonalienation of Benefits. No right or benefit provided in this Plan will be transferable by
the Participant, except upon his death to a Surviving Spouse as provided in this Plan. No right or benefit under this Plan will be subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to anticipate,
alienate, sell, assign, pledge, encumber, or charge the same will be void. No right or benefit under this Plan will in any manner be liable for or subject to any debts, contracts, liabilities or torts of the person entitled to such benefits. If any
Participant or any Surviving Spouse becomes bankrupt or attempts to anticipate, alienate, sell, assign, pledge, encumber or charge any right or benefit under this Plan, that right or benefit will, in the discretion of the Committee, cease. In that
event, the Committee may have the Company hold or apply the right or benefit or any part of it to the benefit of the Participant or Surviving Spouse, his or her spouse, children or other dependents or any of them in any manner and in any proportion
the Committee believes to be proper in its sole and absolute discretion, but is not required to do so. 
 11.6 Severability. If any
term, provision, covenant or condition of this Plan is held to be invalid, void or otherwise unenforceable, the rest of this Plan will remain in full force and effect and will in no way be affected, impaired or invalidated. 
 11.7 Notice. Any notice or filing required or permitted to be given to a Company, the Committee or a Participant will be sufficient if in writing
and hand delivered or sent by U.S. mail to the principal office of the Company, acting on behalf of the Company or Committee, or to the residential mailing address of the Participant. Notice will be deemed to be given as of the date of hand delivery
or if delivery is by mail, as of the date shown on the postmark. 
 11.8 Gender and Number. If the context requires it, words of one
gender when used in this Plan will include the other gender, and words used in the singular or plural will include the other. 
 11.9
Governing Law. The Plan will be construed, administered and governed in all respects by the laws of the State of Texas. 
 11.10
Effective Date. This Plan will be operative and effective on July 1, 2006. 
 [THE REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            17	 	

 IN WITNESS WHEREOF, the Company has executed this document on this 1st day of August, 2006, to be
effective as of July 1, 2006. 
  

			
		 	VALERO GP, LLC
		
	By	 	 /s/ Steven A. Blank

		 	Steven A. Blank, Chairman
		 	Benefit Plans Administrative Committee

  

					
	 Valero GP, LLC Supplemental Executive Retirement Plan
	 	                            18Asset Purchase Agreement

 Exhibit 10.1 
 ASSET PURCHASE AGREEMENT 
 This Asset Purchase Agreement (the “Agreement”),
is made as of this 25th day of August, 2006, by and among LINCARE INC., a corporation duly organized and existing
under the laws of the State of Delaware, having its principal place of business at 19387 U.S. 19 North, Clearwater, Florida 33764 (hereinafter referred to as “Lincare”); PEDIATRIC SERVICES OF AMERICA, INC., a corporation duly
organized and existing under the laws of the State of Delaware, having its principal place of business at 310 Technology Parkway, Norcross, Georgia 30092-2929 and certain of Pediatric Services of America, Inc.’s affiliates listed on the
signature page hereto (hereinafter collectively referred to as the “Company”). 
 WITNESSETH: 
 WHEREAS, the Company is engaged in the business of marketing, advertising, selling, leasing, renting, distributing or otherwise providing oxygen,
oxygen equipment, aerosol inhalation therapy equipment and respiratory medications, nasal continuous positive airway pressure devices, infant monitoring equipment and services, home sleep studies-related therapy equipment, enteral, and other
respiratory therapy and durable medical equipment, products, supplies and services to customers in their homes or other alternative site care facilities in the Territory (as defined in Section 1.1(f) hereof) and respiratory therapy staffing;
and 
 WHEREAS, Lincare desires to acquire, and Company desires to sell to Lincare, substantially all of the Assets (as defined in
Section 1.1(a) hereof) and Business (as defined in Section 1.1(b) hereof) (hereinafter, the “Transaction”). 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, the parties hereto agree and contract as follows: 
 Article 1 - DEFINITIONS 
 1.1 In this Agreement, the following terms shall mean the following: 
 (a) “Assets” shall mean and include all
assets and properties owned, leased, rented, used or otherwise possessed by the Company for use in the Business of every kind, character and description, whether tangible or intangible, and wherever located, except for the Excluded Assets (as
defined in Section 1.1(c) hereof). The Assets shall include, but shall not be limited to, the following: 
 (i) subject to Sections
1.1(c)(vii) and 1.1(c)(ix) hereof, all of Company’s rights with respect to the real property leased, rented, used or otherwise possessed by the Company, which are not identified on Schedule 4.5(a) as Excluded Assets, subject to the terms and
conditions set forth in Schedule 4.5(a). For purposes of this Agreement, those Company facilities, in which Company’s Business is shared with other Company businesses, shall be referred to as the “Shared Locations”; 

(ii) all of the oxygen equipment, aerosol inhalation therapy equipment, nasal continuous positive airway pressure devices, infant monitoring
equipment, home sleep study and related therapy equipment, respiratory medications, enteral, and all other respiratory therapy and durable medical equipment, products and supplies owned, leased, rented, used or otherwise possessed by the
Company’s Business regardless of the actual ownership thereof by the Company or otherwise (including, but not limited to, all of such items presently located with customers in their homes or alternative site care facilities), which are set
forth in Schedule 4.5(c)(i) hereof; 
 (iii) all of the inventory, disposables, spare parts, materials, work-in-process and supply items
owned, leased, rented, used or otherwise possessed by Company’s Business; 
 (iv) all other equipment, products, machines, furniture,
fixtures, furnishings, parts, and supplies owned, leased, rented, used or otherwise possessed by Company’s Business, which are set forth in Schedule 4.5(c)(iii) hereof; 
 (v) all patents, trademarks, trade names, service marks, copyrights and applications therefor owned or licensed by Company’s Business, as set forth
on Schedule 4.5(l) hereof; 
 (vi) the originals and all copies of: all Customer (as defined in Section 4.5(e)) files (including, but
not limited to, the original certificates of medical necessity, the original physician orders and the original of any other evidence of 

 medical necessity related to equipment or services being rendered to any customer of the Business as of the Closing Date,
and the original of any other information supporting the billing for such Customer), the current and historical referral list of the Business and, except for corporate records and minutes, all other documents, files and records of, or relating to,
any of the Assets or the Business; 
 (vii) all of the rights and interests in and to the specific contracts, agreements and leases of the
Business set forth on Schedules 4.5(a) and 4.5(b) attached hereto, but specifically excluding as Excluded Assets, subject to the provisions of Sections 3.4 and 4.5(b)(ii) and (iii) hereof, those contracts, agreements and leases designated on
Schedules 4.5(a) and 4.5(b) hereof as Excluded Assets; provided, however, that if at any time it is determined that any contract, agreement or lease was omitted from such schedules after the Closing, the parties shall work together in good faith to
determine whether such contract, agreement or lease shall be an Asset or Excluded Asset under this Agreement. However, Lincare, in its sole discretion shall determine if, for any such omitted contract pertaining to an Asset as defined herein, the
Contract Asset Purchase Requirements (as defined in Section 3.4 hereof) of Sections 3.4 and 4.5(b)(iii) shall apply to any such contract, agreement or lease. The Contract Asset Purchase Requirement shall not apply to assets that are not Assets
of the Business as defined herein. If Lincare does not expressly accept responsibility in writing for the contract, agreement or lease which is not included on Schedules 4.5(a) or 4.5(b), the obligations of that contract, agreement or lease remain
the responsibility of the Company. If Lincare deems it necessary or appropriate to make payment under any such undisclosed contract, agreement or lease which it does not expressly accept, Lincare shall have, in addition to its other rights hereunder
(including its right to indemnification pursuant to Article 7), the right to make such payment on behalf of Company without assuming any liability therefor, and to deduct such amount from its payment obligations under the Agreement in accordance
with Section 7.2 hereof. Company agrees to amend promptly Schedule 4.5(a) or 4.5(b) hereof, as the case may be, after the Closing Date, to include all such additional contracts, agreements, and leases in accordance with the above
determinations; 
 (viii) the sole and exclusive use of all regulatory licenses and permits owned, held, used, or otherwise possessed by the
Company in respect of the Business, to the extent assignable; 
 (ix) all of the Business of Company; 
 (x) all funds, refunds, receivables, notes, security deposits, prepayments, evidences of indebtedness, credits, claims, deposits, debts and obligations
of any kind due and owing to Company’s Business as of the Closing Date or which become due or owing to the Company’s Business on or after the Closing Date or which accrue to the Company’s Business on or after the Closing Date;
provided, however, any security deposit related to either real estate or real estate lease that is not assumed by, or otherwise assigned to, Lincare shall be an Excluded Asset; 
 (xi) except for those telephone numbers set forth on Schedule 1.1(a)(xi), the exclusive use of the telephone numbers of the Company’s Business and
all intangible personal property rights and goodwill relating to the Company’s Business; 
 (xii) the right to all billings for any
equipment, products, supplies or services provided to any customers of Company’s Business after the Closing Date; 
 (xiii) all
vehicles owned, leased, rented, used or otherwise possessed in the operation of the Business, which are set forth on Schedule 1.1(a)(xiii), free and clear of all liens and Encumbrances; 
 (xiv) all billed and unbilled accounts receivable, less credit balances related thereto, of Company’s Business as of the Closing Date (the
“Accounts Receivable”) (other than receivables from governmental third party payors which by law may not be assigned) as well as the right to any deposits, security, or collateral related to the Accounts Receivable; 
 (xv) an amount equal to the value of all billed and unbilled receivables, less credit balances related thereto, of the Business related to Medicare,
Medicaid and other third party claims due from beneficiaries or governmental third party payors in respect of services through the Closing Date which by law may not be assigned (“Government Patient Receivables,” or collectively with
the Accounts Receivables, the “Receivables”) which shall be collected as set forth in Article 14 herein; and 
 (xvi) any
interest or rights in the Company’s property located at 6861 West Park Avenue in Houma, Louisiana. 
  

 -2- 

 (b) “Business” shall mean the entire business of Company’s Respiratory Therapy and
Equipment Services Division, including but not limited to, the business of marketing, advertising, selling, leasing, renting, distributing or otherwise providing oxygen, oxygen equipment, aerosol inhalation therapy equipment and respiratory
medications, enteral, nasal continuous positive airway pressure devices, infant monitoring equipment and services, home sleep studies-related therapy equipment, and other respiratory therapy and durable medical equipment, products, supplies and
services to customers in their homes or other alternative site care facilities within the Territory and respiratory therapy staffing. 
 (c)
“Excluded Assets” shall mean exclusively the following: 
 (i) the cash, cash equivalents and deposits in banks and other
financial institutions on hand at the close of business on the day immediately prior to the Closing Date; 
 (ii) subject to the provisions
of Sections 3.4 and 4.5(b)(ii) and (iii) hereof, the contracts, agreements and leases designated on Schedules 4.5(a) and 4.5(b) hereof as Excluded Assets; 
 (iii) all Medicare, Medicaid and other public or private insurance carrier provider numbers owned, held, used, or otherwise possessed by the Company; 
 (iv) any trademarks, trade name, service marks, copyrights, and applications therefor belonging or relating to Company or PSA Properties Corporation or
relating to the names “Pediatric Services of America,” “PSA Healthcare,” or “Pharmacy Services of America”, including without limitation, those items set forth in Schedule 1.1(c)(iv); 
 (v) {intentionally left blank}; 
 (vi) all
books, records, and documents relating primarily to the Excluded Liabilities; 
 (vii) any interest or rights in the Company’s lease to
the property located at 770 Baconsfield Drive, Building 1, in Macon, GA, except that Lincare shall be allowed to utilize the location for a period of up to ninety (90) days after the Closing Date for a transition period; 
 (viii) any security deposit related to either real estate and/or a real estate lease where such real estate or real estate lease is designated as a
shared location of Schedule 4.5(a) hereof or where such real estate or real estate lease is not assumed by or otherwise assigned to Lincare; and 
 (ix) those assets listed on Schedule 1.1(c) hereto. 
 (d) “Accepted Liabilities” shall mean exclusively the
following: 
 (i) all debts, liabilities and obligations of every kind whatsoever incurred in connection with or arising out of
Lincare’s conduct of the Business or ownership of the Assets from and after the Closing Date; 
 (ii) pursuant to the provisions of
Section 4.5(b)(ii) hereof, Lincare shall be responsible only for the liabilities, duties and obligations arising out of the contracts, agreements and leases listed on Schedules 4.5(a) and 4.5(b) hereof, (which are not otherwise designated as
Excluded Assets on such schedules or which are expressly accepted by Lincare pursuant to Section 1.1(a)(vii)) which liabilities, duties and obligations arise and pertain to periods commencing on or after the Closing Date; 
 (iii) expenses associated with the administration of the Termination Plan as more fully described in Article 16 hereof; and, 
 (iv) liabilities related to inventory and supplies ordered by the Company in the ordinary course of business prior to the Closing Date, but not received
prior to the Closing Date. 
  

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 (e) “Excluded Liabilities” shall mean and include all debts, liabilities and obligations
of Company of every kind, character and description whatsoever, except for the Accepted Liabilities. Without limiting the generality of the foregoing, the Excluded Liabilities shall include, but shall not be limited to, the following: 
 (i) the obligation to pay all invoices which are dated before the Closing Date or which relate to goods or services consumed or used before the Closing
Date; 
 (ii) the liabilities and obligations under all contracts, agreements and leases designated as Excluded Assets on Schedules 4.5(a)
or 4.5(b) hereof; 
 (iii) the obligation to satisfy any claims and litigation against the Company, including, but not limited to, those
claims and litigation listed on any Schedule hereto, and any claim or litigation, whether or not listed on a Schedule hereto, that arose prior to the Closing Date; 
 (iv) the obligation, in accordance with the provisions of Section 4.5(b)(iii) hereof, to pay off in full those certain leases and rental agreements expressly designated on Schedules 4.5(a) and 4.5(b) hereof as
subject to this Section 1.1(e) or Sections 3.4 or 4.5(b)(iii), as well as any obligations pertaining to any lease or rental agreement which the Company failed to disclose but existed prior to the Closing Date unless expressly accepted by
Lincare as provided in Section 1.1(a)(vii); 
 (v) the obligation to satisfy any refund or recoupment requests from any third party
payor for dates of service prior to the Closing Date. 
 (f) “Territory” shall mean the United States of America.

 1.2 In addition to the terms defined in Section 1.1 hereof, other terms defined elsewhere in this Agreement shall have the meanings
set forth therein. 
 Article 2 - PURCHASE AND SALE OF ASSETS 
 Subject to the terms and conditions set forth in this Agreement, at Closing (as hereinafter defined) Company shall sell, convey, transfer, assign, and
deliver to Lincare, and Lincare shall purchase and accept from Company, good and marketable title to the Assets, free and clear of any restrictions or conditions to transfer or assignment and free and clear of all liens, mortgages, pledges,
encumbrances, agreements, leases, contracts, claims, security interests, taxes, conditions enforceable by any third party, covenants, conditions or restrictions of any kind or description (hereinafter referred to collectively as
“Encumbrances”). Lincare and Company acknowledge and agree that the term “Encumbrances” shall not include the Accepted Liabilities described in Section 1.1(d) hereof. 
 Article 3 - PURCHASE PRICE AND METHOD OF PAYMENT 
 3.1 Purchase Price and Method of Payment. The aggregate purchase price (hereinafter referred to as the “Purchase Price”) for the Assets and the Business shall be Thirty-Five Million Two Hundred
Thousand and no/100 Dollars ($35,200,000.00), payable to Company, or its designees, as follows: 
 (a) Thirty-One Million Two Hundred Thousand
and no/100 Dollars ($31,200,000.00) shall be paid by wire transfer at the Closing (as such term is defined in Section 6.1 hereof); 
 (b) Two Million Five Hundred Thousand and no/100 Dollars ($2,500,000.00) shall be payable, without interest, six (6) months after the Closing Date, subject to the terms and conditions of this Agreement; and 
 (c) One Million Five Hundred Thousand and no/100 Dollars ($1,500,000.00) shall be payable, without interest, twelve (12) months after the Closing
Date, subject to the terms and conditions of this Agreement. 
 3.2 Excluded Assets. Notwithstanding anything to the contrary
contained in this Agreement, Lincare shall not acquire or receive hereunder any title to or interest in any of the Excluded Assets, which Excluded Assets shall remain the property of the Company. 
  

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 3.3 Accepted Liabilities. In connection with its purchase of the Assets hereunder, at Closing
Lincare shall assume and be responsible for the Accepted Liabilities, including the assumption of, and responsibility for, the payment and/or satisfaction of the Accepted Liabilities in accordance with their terms. 
 3.4 Excluded Liabilities. Lincare shall not assume, nor be responsible for, any Excluded Liabilities. All Excluded Liabilities shall be retained
by, and shall be the sole responsibility of, Company. If Lincare deems it reasonably necessary or appropriate to make payment of any Excluded Liability, Lincare shall have, in addition to its other rights hereunder (including its right to
indemnification pursuant to Article 7), the right to make such payment on behalf of Company without assuming liability therefore, and to deduct such amounts from its payment obligations under this Agreement in accordance with Section 7.2
hereof. With respect to the obligations Company is required to satisfy pursuant to Section 1.1(e)(iv) of this Agreement, Company shall deliver to Lincare title to all such leased or rented Assets free and clear of any Encumbrances.
Company’s obligations under the preceding sentence are referred to herein as the “Contract Asset Purchase Requirements.” The Contract Asset Purchase Requirements shall include, but shall not be limited to, the payment of any
purchase options, re-licensing fees, transfer fees, or other similar payments relating to any of such Assets. 
 3.5 Preliminary Purchase
Price Allocation. The preliminary Purchase Price allocation is attached as Exhibit 3.5 hereto, though it is subject to change based on actual circumstances at the time of filing an allocation statement. Lincare and the Company shall file, in
accordance with the Internal Revenue Code of 1986, as amended, an asset allocation statement on Form 8594 with its federal income tax return for the tax year in which the Closing Date occurs and shall contemporaneously provide the other parties with
a copy of the Form 8594 being filed. Such allocations on Form 8594 shall be materially consistent with the preliminary allocation on Exhibit 3.5, and no party shall take a materially inconsistent position in reporting the allocation for any tax
reporting purposes. The preliminary purchase price allocation set forth on Exhibit 3.5 shall also set forth an allocation by state where necessary to calculate applicable state sales or transfer taxes applicable to this transaction. 
 Article 4 - REPRESENTATIONS AND WARRANTIES OF COMPANY 
 The representations and warranties of Company set forth this Article shall be true and correct as of the date of this Agreement and true and correct as of
the Closing Date as if made at and as of such dates, except with respect to representations and warranties which speak as to an earlier date, which shall be true and correct at and as of such date. Company represents, warrants, and covenants as
follows: 
 4.1 Organization, Standing and Qualification of Company. Pediatric Services of America, Inc. is a corporation duly
organized, validly existing, and in good standing under the laws of the State of Delaware and has all necessary corporate powers, governmental qualifications and authorizations to own its assets and to operate the Business in each jurisdiction in
which such assets are now owned and such Business is now operated by it. Pediatric Services of America, Inc. d/b/a PSA HealthCare is a corporation duly organized, validly existing, and in good standing under the laws of the State of Georgia and has
all necessary corporate powers, governmental qualifications, and authorizations to own its assets and to operate the Business in each jurisdiction in which such assets are now owned and such Business is now operated by it. PSA Capital Corporation is
a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware and has all necessary corporate powers, governmental qualifications, and authorizations to own its assets and to operate the Business in
each jurisdiction in which such assets are now owned and such Business is now operated by it.  
 4.2 Affiliates. 

Except for those entities set forth on Schedule 4.2, Company does not own or control, directly or indirectly, in whole or in part, any other
corporation, partnership, association, or organization, or any interest therein. 
 4.3 Financial Statements. 
 (a) Company has delivered to Lincare copies of the following financial statements for the Company, which are set forth in Schedule 4.3(a) hereof.

 (b) All of the financial statements referenced in Section 4.3(a) above and otherwise set forth in Schedule 4.3(a) are hereinafter
referred to collectively as the “Financial Statements.” The Financial Statements fairly present in all material respects the financial condition of the Company as of the dates stated and the operation of the Company for the periods
stated. Company represents and warrants there has been no material adverse change in the assets, liabilities, financial performance or capitalization of the Company since October 1, 2005, except as set forth in Schedule 4.3(b). 
  

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 4.4 Taxes. 
 (a) Except as set forth on Schedule 4.4(a), Company has timely filed with the appropriate taxing authorities all tax returns in all jurisdictions in which tax returns are required to be filed, and such tax returns are
correct and complete in all respects. Company is not the beneficiary of any extension of time within which to file any tax return. All taxes of Company (whether or not shown on any tax return) have been fully and timely paid. There are no liens for
any taxes (other than a lien for current real property or ad valorem taxes not yet due and payable) on any of the Assets of Company. Except as set forth on Schedule 4.4(a), no claim has ever been made by an authority in a jurisdiction where Company
does not file a tax return that Company may be subject to taxes by that jurisdiction. 
 (b) Except as set forth on Schedule 4.4(b), Company
has never received any notice of assessment or proposed assessment in connection with any taxes, and there are no threatened or pending disputes, claims, audits or examinations regarding any taxes of Company or the assets of Company. No officer or
employee responsible for tax matters of Company expects any taxing authority to assess any additional taxes for any period for which tax returns have been filed. Company has not waived any statute of limitations in respect of any taxes or agreed to
a tax assessment or deficiency. 
 (c) Except as set forth on Schedule 4.4(c), Company has complied with all applicable laws, rules and
regulations relating to the withholding of taxes and the payment thereof to appropriate authorities, including taxes required to have been withheld and paid in connection with amounts paid or owing to any employee or independent contractor, and
taxes required to be withheld and paid pursuant to Sections 1441 and 1442 of the Internal Revenue Code or similar provisions under foreign law. 
 (d) Except as set forth on Schedule 4.4(d), the unpaid taxes of Company (i) did not, as of the most recent fiscal month end, exceed the reserve for tax liability (rather than any reserve for deferred taxes established to reflect timing
differences between book and tax income) set forth on the face of the most recent balance sheet (rather than in any notes thereto) for Company and (ii) do not exceed that reserve as adjusted for the passage of time through the Closing Date in
accordance with past custom and practice of Company in filing its tax returns. 
 (e) Except as set forth on Schedule 4.4(e), Company is not
a party to any tax allocation or sharing agreement and Company has not been a member of an affiliated group filing a consolidated federal income tax return (other than a group the common parent of which is Parent) or has any tax liability of any
person under Treasury Regulation Section 1.1502-6 or any similar provision of state, local or foreign Law (other than the other members of the consolidated group of which Parent is parent), or as a transferee or successor, by contract or
otherwise. 
 (f) With respect to liabilities for any such taxes, assessments or other charges which are not yet due and payable, Company
represents, warrants and covenants that Company will pay all such amounts when due, except as otherwise provided in Section 6.8(j) hereof. Subject to Section 6.8(j) hereof, any such unpaid liability of the Company for federal, state or
local taxes (including, without limitation, interest and penalties) shall be the sole responsibility of Company. If the Internal Revenue Service or any other taxing authority seeks to collect any such liability from Lincare or from any other member
of Lincare’s affiliated group, Company shall indemnify and hold harmless any such party for the entire amount of such liability pursuant to the provisions of Article 7 hereof. If Lincare deems it necessary or appropriate to make payment of any
taxes due or payable for periods prior to the Closing Date, Lincare shall have, in addition to its other rights hereunder (including its right to indemnification pursuant to Article 7), the right to make such payment on behalf of Company without
assuming any liability therefore and to deduct such amounts from its payment obligations under this Agreement in accordance with Section 7.2 hereof. 
 (g) With respect only to the Business, the Company has delivered to Lincare true and complete copies of the Company’s personal property and employment (including Forms 940 and 941, and the wage detail reports for
such returns) tax returns filed for the fiscal years ending 2004 and 2005, as well as all such returns filed since December 31, 2005. The Company shall remain responsible for any tax liability which arises from an audit of any tax period prior
to the Closing Date. 
 4.5 Schedules. Company has delivered to Lincare the following Schedules, which are true, complete and
accurate: 
 (a) Real Estate. Schedule 4.5(a) is a complete list of all land, warehouses, office buildings, stores and other buildings
and real property rented, leased, used, occupied or otherwise possessed by the Company in connection with the Company’s operation of the Business. Except as identified on Schedule 4.5(a), Company does not own, use, occupy or otherwise possess
any real property used in connection with the operation of the Business. As to each such property rented, 
  

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 leased, used, occupied or otherwise possessed by the Company, Schedule 4.5(a) lists the location of the property; the
name and address of lessor; the expiration date of such lease; and the monthly rent payable under the lease. Each such property rented or leased is held under a valid and enforceable lease, binding upon each of the parties thereto. Each such lease
is in full force and effect in all material respects in accordance with its terms and there are no existing defaults or events of default under any such lease. Company has not given or received any notice of any claimed default or termination with
respect to any such lease. Schedule 4.5(a) identifies all violations, of which Company knew or should have reasonably known, of any applicable law, statute, ordinance, code, rule, regulation or standard relating to any building rented, leased, used,
occupied or otherwise possessed by the Company or the operations of the Company conducted therein. The facilities listed in Schedule 4.5(a) have been regularly and appropriately maintained in the normal course of business, to the best of
Company’s knowledge, and the fixtures, mechanical systems (including electrical, plumbing, heating, ventilation and air conditioning), roof and structural systems of the facilities listed on Schedule 4.5(a) are in satisfactory working condition
and in a satisfactory state of maintenance and repair. Subject to Section 6.8(j) hereof, Company represents that all rent and other use or maintenance fees or charges associated therewith (to the extent that any such fees or charges are due and
payable) have been paid in full through the end of the calendar month in which the Closing occurs. Company further represents that all necessary third party consents to the transfer or assignment of Company’s right to use such properties have
been obtained or will obtained within sixty (60) days after the Closing Date. If such consent is not obtained by Company within that period, Lincare shall have the right to seek any actual damages, including, but not limited to, moving,
relocation, advertising, printing and utility hook up charges, resulting from Company’s failure to transfer the contract or agreement and shall deduct such damage from its payment obligations under the Agreement, in accordance with
Section 7.2 hereof. 
 (b) Agreements and Contracts. 
 (i) Schedule 4.5(b) is a complete list of all contracts and agreements (including, without limitation, agreements relating to the purchase, sale, lease
or rental of equipment, materials, products, supplies and services, preferred provider agreements, health maintenance organization agreements or any other managed care contracts or agreements, service contracts, employment and consulting agreements,
covenants not to compete, distributorship agreements, leases of personal property, licenses of intellectual property rights, security agreements, and loan agreements) relating, in whole or part, to the Business or the Assets. Schedule 4.5(b)
specifies the type of agreement and the names of the parties to such agreement. The agreements listed in Schedule 4.5(b) are valid, binding and enforceable upon the parties thereto. Except as indicated in Schedule 4.5(b), all contracts and
agreements relating, in whole or in part, to the Business or the Assets are in full force and effect in accordance with their terms and, to Company’s best knowledge, there are no existing defaults or events of default under any such contract or
agreement. The Company has not given or received any notice of any claimed default or termination with respect to any contract or agreement relating, in whole or in part, to the Business or the Assets. Except as disclosed on Schedule 4.5(b), neither
this Agreement nor consummation of the transactions contemplated hereby shall result in a default under or breach of, or require the consent or approval of any party to any agreement listed on Schedule 4.5(b) with respect to the transfer and
assignment of such contract or agreement to Lincare hereunder, except those specific agreements identified on Schedule 4.5(b) as requiring third party consent or approval prior to any such transfer or assignment. 
 With respect to each contract and agreement listed on Schedule 4.5(b) hereof (A) that is not designated as an Excluded Assets on said Schedule and
is designated as requiring the consent or approval of a third party and (B) where the aggregate annual payments to be made by or to Company under such contract or agreement exceed Fifteen Thousand and no/100 Dollars ($15,000.00) (the
“Agreement Requiring Consent”), Company shall obtain the consent or approval effective as of the Closing Date either prior to the Closing Date or within 45 days after the Closing Date. The Company shall be responsible for any
reasonable out–of–pocket costs required to obtain the consents or approvals for each Agreement Requiring Consent. In the event any such consents or approvals are not obtained by the Closing Date, Lincare shall reasonably cooperate with
Company during such 45-day period in obtaining the required consents or approvals for each Agreement Requiring Consent. If such consent or approval is not obtained by Company within that period, Lincare shall have the right to seek appropriate
damages from Company for the failure to transfer the Agreement Requiring Consent effective as of the Closing Date and shall deduct such damage from its payment obligations under the Agreement, in accordance with Section 7.2 hereof. Company
shall remain responsible for any contract, agreement or lease which is not disclosed on the Schedules hereto unless Lincare accepts responsibility for such contract in writing as provided in Section 1.1(a)(vii) hereof. 
 With respect to any contract and agreement relating, in whole or part, to the Business or the Assets; which is not listed on Schedule 4.5(b) hereof as of
the Closing Date; for which Lincare does accept responsibility in writing as provided in Section 1.1(a)(vii) hereof; which requires the consent or approval of a third party; and where the aggregate annual payments to be made by or to Company
under such contract or agreement exceed Fifteen Thousand and no/100 Dollars ($15,000.00), Company shall obtain the consent or approval effective as of the Closing Date from such third party as soon as practicable after receipt of Lincare’s
written notice accepting responsibility; and if such consent or approval is not obtained within forty five (45) days after Lincare’s written notice, then Company shall be responsible for damages as provided above. 
  

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 With respect to each contract and agreement listed on Schedule 4.5(b) hereof (A) that is not
designated as an Excluded Assets on said Schedule and is designated as requiring the consent or approval of a third party and (B) where the aggregate annual payments to be made by or to Company under such contract or agreement do not exceed
Fifteen Thousand and no/100 Dollars ($15,000.00) or with respect to each contract or agreement relating, in whole or part, to the Business or the Assets; which is not listed on Schedule 4.5(b) hereof; for which Lincare does accept responsibility in
writing as provided in Section 1.1(a)(vii) hereof; which requires the consent or approval of a third party; and where the aggregate annual payments to be made by or to Company under such contract or agreement do not exceed Fifteen Thousand and
no/100 Dollars ($15,000.00), Company shall reasonably cooperate with Lincare in Lincare’s efforts in obtaining consent or approval to the contract’s or agreement’s assignment. 
 (ii) Schedules 4.5(a) and 4.5(b) contain each and every contract, agreement and lease of, or relating to, the operation of the Business or any of the
Assets, and Schedules 4.5(a) and 4.5(b) list each of the contracts, agreements and leases which are included in the Assets, except those contracts, agreements and leases which are designated on such schedules as Excluded Assets. It is understood and
agreed between the parties that Lincare shall assume the liabilities, duties and obligations of Company only under the contracts, agreements and leases listed on Schedules 4.5(a) or 4.5(b) which: (A) are not Excluded Assets; and (B) which
liabilities, duties and obligations arise and pertain to periods commencing on or after the Closing Date. Company shall remain solely liable for all liabilities, duties and obligations under all contracts, agreements and leases which: (X) are
Excluded Assets; (Y) are not Excluded Assets but which liabilities, duties and obligations arise or pertain to periods prior to the Closing Date; or (Z) were not disclosed to Lincare on any Schedule hereto, and Lincare has not expressly
accepted in accordance with Section 1.1(a)(vii). 
 (iii) Notwithstanding anything to the contrary contained in this Agreement, Lincare
shall obtain title to all Assets covered by: (X) those certain contracts, agreements and leases identified on Schedule 4.5(b) as Excluded Assets to which the Contract Asset Purchase Requirements pertain; and (Y) contracts, agreements or
leases which were not disclosed on any Schedule hereto, and Company shall have completed the Contract Asset Purchase Requirements set forth in Section 3.4 of this Agreement with respect to the assets covered by such contracts, agreements and
leases. 
 (c) Personal Property. Schedules 4.5(c)(i), 4.5(c)(ii), and 4.5(c)(iii) list by type and quantity the tangible personal
property owned, rented, leased, used or otherwise possessed by Company in the operation of the Business and pertaining to the asset classes described below: 
 (i) Schedule 4.5(c)(i) lists, in summary form, the oxygen equipment, respiratory therapy equipment, and pharmacy equipment and other items of durable medical equipment and other tangible personal property owned,
leased, rented, used or otherwise possessed by Company in the operation of the Business (including, but not limited to, all of such items currently located with customers in their homes or alternative site care facilities); 
 (ii) Schedule 4.5(c)(ii) lists, in summary form, the vehicles owned, leased, rented, used or otherwise possessed by the Company in the operation of the
Business that are included among the Assets to be acquired by Lincare; and, 
 (iii) Schedule 4.5(c)(iii) lists, in summary form, all other
personal property owned, leased, rented, used or otherwise possessed by the Company in the operation of the Business that are included among the Assets to be acquired by Lincare, such as phone systems, copiers, fax machines and other office
equipment. 
 Except for those cylinders Company leased from TMGCO, LLC or Sky Oxygen, which have not been rendered free and clear of
Encumbrances by the Closing Date and which are so designated in Schedule 4.5(c)(i) hereof (the “Encumbered Cylinders”), Company owns and has good and marketable title to all of the tangible personal property included in the Assets
(whether or not any such Asset is included within the asset classes described in Sections 4.5(c)(i)-(iii) above), free and clear of any restrictions or conditions to transfer or assignment and free and clear of all Encumbrances. With respect to
the personal property included on Schedule 4.5(c)(i), 4.5(c)(ii), and 4.5(c)(iii), if a claim is made by a third party that the property is not owned by Company and that there are rental or other charges owed for the property or any other
Encumbrance on the property, the Company shall remain responsible for such charges (including demurrage if applicable) or Encumbrance. To the extent Lincare deems it necessary or appropriate to pay any amounts as a result of such claim, it shall
have, in addition to its other rights hereunder (including its right to indemnification pursuant to Article 7), the right to make such payment on behalf of Company without assuming any liability therefore, and to deduct such amounts from its payment
obligations under the Agreement in accordance with Section 7.2 hereof. 
  

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 Each item of personal property included in the Assets has been regularly and appropriately maintained and
repaired in the normal course of business and substantially all of such items are in satisfactory working condition and in a satisfactory state of maintenance and repair as of the Closing Date. Each item of personal property included in the Assets
is transferred with all applicable warranties, including, but not limited to, the manufacturers’ warranties to the extent such warranties are transferable to Lincare. 
 (d) Receivables. Schedule 4.5(d) contains a summary of the Receivables of or pertaining to the Company’s Business, including an aging of such
Receivables in the manner described as follows: less than 120 days from the date of original invoice; less than 180 days from the date of original invoice; less than 240 days from the date of original invoice; less than 365 days from the date of
original invoice; greater than 365 days from the date of original invoice; and, the total amount of all Receivables. Each of the Receivables listed: (i) arose from valid sales or rentals in the ordinary course of business; (ii) relates to
equipment or products provided to customers covered under the Medicare, Medicaid or other third party public or private insurance program, or were provided on a direct bill basis, each of which customers were qualified under such programs to receive
such products and services or were provided on a direct bill basis to customers who, to the Company’s best knowledge, were otherwise capable of paying for such products and services; (iii) relates to billings by or on behalf of the Company
which were prepared and submitted with all the complete and correct forms, documents, test results and other information necessary to receive payment with respect to each such Receivables, evidence of which is maintained in the appropriate Customer
file to the extent required by law, and which billings were prepared and submitted in conformity with all applicable laws, rules, regulations codes and guidelines of federal, state and local health care programs and in conformity with the
requirements of each third party payor; and (iv) has been diligently pursued for payment in accordance with the requirements of the respective payors. Company has not received nor has it applied for any cash advances from any Medicare, Medicaid
or third party public or private insurance program or carrier, whether or not any such cash advance has been repaid to or recouped by such insurance program or carrier. Except as already reflected in the amount of the Receivables shown on Schedule
4.5(d), no refunds, reimbursements, discounts or other adjustments are payable or anticipated to be made with respect to any of the Receivables. To the best of Company’s knowledge, there are no Encumbrances, or rights of setoff, recoupment or
assignments with respect to or affecting the Receivables. Except as may be set forth in Schedule 4.5(d), the Receivables listed on Schedule 4.5(d) are owned, legally and beneficially, by the Company, and none of such Receivables is owned, legally or
beneficially, by any other person or entity, or are being collected for, or are to be paid to, or for the benefit of, any other person or entity. Company guarantees the collection by Lincare of the Receivables to the extent as more fully described
in Article 15 hereof. Insofar as Company cannot deliver to Lincare on the Closing Date an updated summary of the Receivables that are true and correct as of the Closing Date, Company may provide an updated Receivables listing within ten
(10) days after the Closing Date, at which time such updated listing shall be deemed Schedule 4.5(d). 
 (e) Equipment, Products, and
Services. Schedule 4.5(e) lists all equipment, products, and services currently supplied to each active customer (the “Customer”) of the Company’s Business as of the date of this Agreement. For each such Customer, Schedule
4.5(e) lists the Customer’s name and address, the Customer’s account number, and the equipment, products and services currently supplied to such Customer. Each Customer has been duly qualified under the Medicare, Medicaid or other third
party public or private insurance program for reimbursement for services rendered by the Company, or is being provided services on a direct bill basis unless there is documentation of the Customer’s financial inability to pay for such services.

 (f) Employment and Personnel Matters. 
 (i) Schedule 4.5(f)(i) sets forth the name of each of the employees of Company’s Business, and the current annual rate of compensation for each such person; 
 (ii) Schedule 4.5(f)(ii) sets forth all bonus, hospitalization, medical, life and disability insurance, vacation, termination, and IRS code sec. 401(k)
plans in effect which provide benefits to present and past employees of Company’s Business; 
 (iii) Schedule 4.5(f)(iii) sets forth
all claims and litigation asserted by or against Company in connection with the Business (or any director, officer or employee of Company’s Business in such representative capacity) arising from transactions and occurrences after June 1,
2001, or any claim or litigation, whenever arising, which is still pending as of the date hereof, which claims any right to workers compensation benefits, unpaid wages, commissions or other amounts asserted to be 
  

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 due or owing to any current or former officer, director, employee, contractor or agent of the Company in connection with
the Business or alleges any claim relating to race discrimination, age discrimination, harassment, sex discrimination, sexual harassment, wrongful termination, violation of a confidentiality or non-competition agreement (whether or not Company is a
party to such agreement), or any other personnel or employment matter. As to each such claim or litigation, Schedule 4.5(f) lists the identity of the claimant; a brief description of the matter; and the outcome or status of the matter. Whether
listed or not on any Schedule hereto, Lincare does not assume the liability or responsibility for any such claim or litigation which has been asserted or which might be asserted and which arose from actions prior to the Closing Date; 
 (iv) Schedule 4.5(f)(iv) sets forth all collective bargaining agreements or other contracts with labor unions to which the Company is a party or is
otherwise subject; and 
 (v) Schedule 4.5(f)(v) sets forth all employment agreements, consulting agreements, independent contractor
agreements, and covenants not to compete of Company’s Business (including, but not limited to, covenants not to compete with any predecessors in interest of the Company or the Business) that are currently in effect. 
 Lincare does not assume the responsibilities or liabilities of any such agreement unless it is specifically listed on Schedule 4.5(f) as an Accepted
Liability and the subject employee, contractor or agent has provided written consent to the assignment of the employment contract to Lincare prior to the Closing Date. 
 For those employees of the Company’s Business who are not subject to an employment agreement, Company represents that those employees are at-will employees and, for those Hired Employees (as defined in
Section 16), Company shall have terminated those Hired Employees from employment prior to the Closing Date, and Company shall remain liable for any obligations owed to Company’s employees, including wages, benefits, bonuses or any other
amount arising from employment with the Company, except that Lincare shall be liable for any administrative expenses associated with the Termination Plan as described in Article 16 hereof. If Lincare deems it necessary or appropriate to make payment
to any employee of Company for amounts due by Company, Lincare shall have, in addition to its other rights hereunder (including its right to indemnification pursuant to Article 7), the right to make such payment on behalf of Company without assuming
any liability therefor, and to deduct such amounts from its payment obligations under the Agreement in accordance with Section 7.2 hereof. 
 Company is in compliance in all material respects with all federal, state and local laws, statutes, ordinances, rules, regulations, codes and orders relating to conditions of employment, and Company has no knowledge of or has any reasonable
grounds to anticipate any labor dispute. Company has not incurred any liability for any arrearage of wages or other payments in respect of employment and Company has made all contributions to employee benefit plans required by such plans to be made
on or before the date hereof. All liabilities and expenses with respect to compensation or benefits applicable to all directors, officers and employees of the Company under any employee benefit plan shall remain the sole responsibility of Company.

 The parties hereto agree that Company shall be solely responsible for providing any notices and otherwise complying with any requirements
of the Worker Adjustment and Retraining Notification (“WARN”) Act, 29 U.S.C. § 2101 and any other like state or local law or rule, and that Lincare shall have no obligations under the WARN Act and no liability for any failure
or alleged failure to comply with the Act with respect to any employment losses of Company. Company agrees to indemnify Lincare against any and all claims by any person or entity alleging failure to comply with the WARN Act in accordance with
Article 7 hereof. 
 (g) Claims, Investigations and Litigation. Except as otherwise disclosed on Schedule 4.5(f), Schedule 4.5(g)
lists all investigations (regardless of whether a claim has been filed), claims and litigation asserted by or against Company in connection with the Business of any nature whatsoever, arising from transactions and occurrences after June 1,
2003, or any such investigation, claim or litigation, whenever arising, which is still active, open or pending as of the date hereof, and any litigation, or to the best of Company’s knowledge, any investigation (including government
investigations or audits) commenced after June 1, 2003, or whenever commenced, if still pending. Schedule 4.5(g) also lists each judgment, order, writ, corporate integrity agreement, settlement agreement, injunction and decree of any federal,
state or local court or governmental authority to which Company is a party or by which it is bound or which relates to any of the ownership interests in the Business or the Assets. As to each such claim, investigation, audit or litigation, Schedule
4.5(g) lists the type of proceeding; the identity of the claimant or investigating agency; a brief description of the matter; the damages claimed or relief sought; and the outcome or status of the matter. Company also agrees to provide copies of any
relevant documents relating to any claims, litigation or judgments listed on Schedule 4.5(g). Except as set forth in Schedule 4.5(g), there are no claims, lawsuits, arbitrations, government proceedings, investigations or audits pending relating to
the Business to which Company or any of its directors, officers or employees is a party (as plaintiff, defendant or otherwise) or which relate to any of the ownership interests in the Business or the Assets. To the 
  

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 best of Company’s knowledge, there are no grounds for the filing or receipt of any other claim or the commencement
of any other lawsuit, arbitration or proceeding by or against, or investigation of, Company in respect of the Business or involving the assets of, or equity interests in, the Business or the Assets except as set forth in Schedule 4.5(g). Whether
listed or not on any Schedule hereto, Lincare does not assume the liability or responsibility for any such claim or litigation which has been asserted or which might be asserted and arose from actions prior to the Closing Date. 
 (h) Health Care Compliance. Schedule 4.5(h) lists, for the entire period of operation of Company, all claims, contact letters, subpoenas,
statements, audits, suspensions or pre-pay review actions, pending negotiations and other matters (including, but not limited to, all correspondence or communications with governmental agencies, intermediaries or carriers) concerning or relating to
any federal or state government funded health care program that involves, implies, relates to, or alleges: (A) any violation or irregularity with respect to any activity, practice or policy of Company in respect of the Business; or (B) any
violation or irregularity with respect to any claim for payment or reimbursement made by Company in respect of the Business, or any payment or reimbursement paid to Company in respect of the Business. In addition, Schedule 4.5(h) lists all claims,
statements and other matters (including, but not limited to, all correspondence or communications with any agency) concerning or relating to any federal or state regulatory agency, including the FDA, DOT, state or local licensure entities,
investigation of the Company in respect of the Business or notice of irregularity to the Company in respect of the Business. Except as set forth on Schedule 4.5(h), there are no violations or irregularities nor to the knowledge of Company are there
any reasonable grounds to anticipate the commencement of any investigation or inquiry, or the assertion of any claim or demand by any such government agency, intermediary or carrier against Company with respect to any of the activities, practices,
policies or claims of the Business, or any payments or reimbursements received by Company in respect of the Business. Except as set forth in Schedule 4.5(h), Company is not currently subject to any outstanding audit by any such government agency,
intermediary or carrier in respect of the Business, and to the best of Company’s knowledge, there are no reasonable grounds to anticipate any such audit of the Business in the foreseeable future. Specifically, Company represents that the
Company in respect of the Business is not in violation of any federal or state false claims act or anti kick-back statutes. For any claim or investigation, whether listed or not on any Schedule hereto, which arose from actions prior to the Closing
Date, the Company shall remain responsible for defending the claim and cooperating with the investigation. If Lincare deems it necessary or appropriate to expend monies to defend or resolve such investigations, it shall have, in addition to its
other rights hereunder (including its right to indemnification pursuant to Article 7), the right to deduct such amounts from its payment obligations under the Agreement in accordance with Section 7.2 hereof. 
 Company represents that the Company has not (i) been heretofore excluded, debarred, suspended or been otherwise determined to be, or identified as,
ineligible to participate in any governmental program (collectively, the “Government Programs”) nor is about to be excluded, debarred, suspended or otherwise determined to be, or identified as, ineligible to participate in any
Government Program; (ii) received any information or notice, or become aware, by any means or methods, that it is the subject of any investigation or review regarding its participation in any Government Programs; and (iii) been convicted
of any crime relating to any Government Program. The listing of Company on the Office of Inspector General’s (OIG) exclusion list or OIG’s website for excluded individuals/entities shall constitute a breach of this Section 4.5(h). If
Lincare deems it necessary or appropriate to expend monies to defend or resolve any such investigations, or to the extent Lincare incurs any expenses, sanctions, penalties or fines which arose from acts prior to the Closing Date, it shall have, in
addition to its other rights hereunder (including its right to indemnification pursuant to Article 7), the right to deduct such amounts from its payment obligations under the Agreement in accordance with Section 7.2 hereof. 
 (i) Licenses and Permits. Schedule 4.5(i) lists all governmental licenses, permits and authorizations which are held or used by Company in respect
of the Business. With respect to each such license, permit or authorization, Schedule 4.5(i) contains a brief description of the license, permit or authorization; the identity of the issuing agency or authority; the license or permit number; and the
expiration date of each such license, permit or authorization. Such licenses, permits and authorizations are the only governmental licenses, permits and authorizations currently required by Company for the operation of the Business and all such
licenses, permits and authorizations are in effect as of the date hereof. Company has complied in all respects with all conditions or requirements imposed by such licenses, permits and authorizations. The Company has received no notice of, nor to
the best of the Company’s knowledge, is there any reason to believe that any appropriate authority intends to cancel or terminate any of such licenses, permits or authorizations or that valid grounds for such cancellation or termination
currently exist. 
 (j) Environmental Matters. Schedule 4.5(j) lists, for the entire period from June 1, 2000, to the Closing
Date, any and all claims, suits, actions or proceedings (including government investigations and audits) relating to the release, discharge or emission of any pollutants or contaminants, or to the generation, treatment, storage or disposal of any
wastes resulting from the operation of the Business or ownership of the Assets. With respect to each such pending or prior matter, Schedule 4.5(j) lists the date of the claim, suit, action or proceeding (including governmental investigations and
audits); the 
  

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 claimant or investigating agency; the nature and a brief description of the matter; the damages claimed or relief sought;
and the status, outcome or disposition of the matter. Except as set forth in Schedule 4.5(j), to the knowledge of Company, there are no claims, suits, actions, or proceedings (including governmental investigations and audits), asserted or
threatened, relating to environmental matters of the types specified in this Section 4.5(j) or otherwise, to which Company, in respect of the Business, is a party; nor does Company know or have any reasonable grounds to know of any activity of
Company or potential liability of Company in connection with Company’s operation or ownership of the Business or the Assets involving or relating to the release, discharge or emission of any pollutants or contaminants, or to the generation,
treatment, storage or disposal of any wastes, or otherwise relating to the protection of the environment. For any claim or investigation, whether listed or not on any Schedule hereto, which arose from actions prior to the Closing Date, the Company
shall remain responsible for defending the claim and cooperating with the investigation. If Lincare deems it necessary or appropriate to expend monies to defend or resolve such investigations, it shall have, in addition to its other rights hereunder
(including its right to indemnification pursuant to Article 7), the right to deduct such amounts from its payment obligations under the Agreement in accordance with Section 7.2 hereof. 
 (k) Directors and Officers. Schedule 4.5(k) lists the officers and directors of Company in office as of the date hereof. Schedule 4.5(k) also
lists all contracts, agreements, commitments, leases, instruments, debts, or obligations: (i) between Company and any of its directors, officers, or shareholders affecting the Business or the Assets; and (ii) among or between any
directors, officers, or shareholders of Company affecting the Business or the Assets. With respect to each such contract, agreement, commitment, lease, instrument, debt, or obligation, Schedule 4.5(k) indicates the parties; their relationship to
Company; and a general description of the subject matter thereof. If not expressly assumed by Lincare, Company shall remain responsible for such contract, agreement, commitment, lease, instrument, debt or other obligation, whether listed or not on
any Schedule hereto. 
 (l) Intangible Property. Schedule 4.5(l) lists all corporate names, patents, trademarks, trade names, service
marks, and applications therefor and all copyrights owned, held, used or otherwise possessed by Company in respect to the Business, and all patent, trademark and service mark licenses to which Company is a party as they relate to the Business.
Company owns or possesses adequate licenses or other rights to use all corporate names, patents, trademarks, trade names, service marks and copyrights, if any, used in the conduct of its business as now operated. Schedule 4.5(l) lists each
registration, application, license or other agreement to which Company is a party with respect to the use of any corporate name, trademark, trade name, service mark, copyright or patent and the expiration date of such registration or license, as it
relates to the Business. The Company does not know, or have any reasonable grounds to know, of any claims asserted by third parties with respect to such rights. 
 (m) Changed Conditions. Except as listed in Schedule 4.5(m), since October 1, 2005 the business of the Business has been conducted in substantially the same manner as theretofore and there has not been
any: 
 (i) transaction by Company relating to the Business except in the ordinary course of business as conducted on that date; 

(ii) material adverse change in the condition (financial or otherwise) of the liabilities, assets, equity, properties, business, or prospects of the
Business; 
 (iii) labor dispute, or other similar event or condition of any character, materially or adversely affecting the financial
condition, business, assets, or prospects of the Business; 
 (iv) material change in business or accounting methods or practices
(including, without limitation, any change in depreciation or amortization policies or rates) by Company in respect of the Business; 
 (v)
revaluation by Company of any of the assets of the Business; 
 (vi) lease, sale or transfer of any tangible or intangible asset of the
Business, except in the ordinary course of business and for fair market value; 
 (vii) entry into, or amendment or termination of, any
contract, agreement, or license, except in the ordinary course of Business and upon fair market value, terms and conditions; 
 (viii)
waiver or release of any right or claim of Company in respect of the Business, except in the ordinary course of business and upon fair market value, terms and conditions; 
  

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 (ix) other event or condition of any character that has, or might reasonably have, a material and
adverse effect on the financial condition, business, or assets of the Business which are not otherwise reflected in the Financial Statements; 
 (x) amendment of Company’s Certificate of Incorporation or By-Laws materially affecting the Business or the Assets; or 
 (xi)
agreement by Company to do any of the things described in the preceding clauses (i) through (x). 
 4.6 Title to Assets and Condition
of Assets. Company has good and marketable title to, or holds by valid and enforceable agreement of lease or license, all of the tangible assets owned, leased, rented, licensed, used or otherwise possessed by it in respect of the Business, and
such assets are free and clear of all Encumbrances. 
 4.7 No Violation. Neither this Agreement nor the consummation of the
Transaction violate or will violate in any material respect any statute, law, regulation, rule, ordinance, code, standard, order, writ, judgment, injunction, decree, determination or award to which the Company is subject, or conflict with or
constitute a default under Company’s Certificate of Incorporation or By-Laws or any indenture, mortgage, lease, lien, instrument or other agreement by which Company is bound, nor will it result in an event which, whether immediately or upon the
giving of notice or lapse of time or both, will permit the acceleration of the maturity date of any obligation under any such indenture, mortgage, lease, lien, instrument or other agreement or the creation of any lien or Encumbrance on the Assets,
nor will it enable any party to any agreement relating to the Business to which Company is a party to exercise a right to terminate or otherwise modify the terms thereof. 
 4.8 Compliance With Law. To the best of Company’s knowledge, Company has complied with, and is not in violation of any federal, state, or local statutes, laws, ordinances, rules, regulations, codes or
standards (including, but not limited to, compliance with all statutes, laws, ordinances, rules, regulations relating to any federal or state government funded health care program and the federal fraud and abuse statutes, laws, rules, regulations or
guidance). The Company has received no notice of any claimed violation of any federal, state or local statute, law, ordinance, rule, regulation, code, standard or order, nor, to the best of Company’s knowledge, has any such violation occurred.

 4.9 Legal Power and Authority To Enter Transaction. Company has the full right, power, legal capacity, and authority to enter into
and deliver this Agreement and to perform its obligations hereunder and the Transaction. The execution, delivery and performance of this Agreement and the Transaction have been duly authorized by Company, and a copy of such resolutions so
authorizing the execution, delivery and performance of this Agreement, certified by Secretary of Company has been delivered to Lincare. This Agreement constitutes the valid and binding obligation of Company and is enforceable in accordance with its
terms. Except as stated above, no approvals or consents of any persons or entities are required for Company to execute and deliver this Agreement or to perform its obligations hereunder and the Transaction. 
 4.10 Assets. 
 (a) The Assets sold,
conveyed, transferred, assigned, and delivered to Lincare hereunder constitute all of the assets necessary for the operation of the Business, as currently and historically conducted (other than the Excluded Assets), and any person or entity having a
direct or indirect ownership interest in the Company, does not currently provide nor has it, he, or she historically provided to Company any tangible or intangible assets whatsoever. The Assets sold, conveyed, transferred, assigned, and delivered to
Lincare hereunder are all of the assets owned, leased, rented, used or otherwise possessed by the Company in respect of the Business, except for the Excluded Assets. 
 (b) Notwithstanding anything to the contrary contained in this Agreement, if an asset would otherwise be included in the Assets because it is owned, leased, rented, used or otherwise possessed by the Company in
respect of the Business but such asset is in fact owned, leased, rented or otherwise possessed by a person or entity having a direct or indirect ownership interest in the Company, then such asset shall nevertheless be included in the Assets. Lincare
shall assume no liabilities or debts associated with such assets, and any corresponding liabilities or debts shall be satisfied by the Company prior to the Closing Date. 
 4.11 Books and Records. The books and records of the Company, including, without limitation, the minute books, stock certificate books and stock ledger, accounting and service and billing records, are complete,
true and correct in all material respects and fairly reflect the conduct of the Company and the Business. 
  

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 4.12 Disclosure. No representation or warranty made herein by Company, nor in any transaction
documents furnished or to be furnished to Lincare pursuant to this Agreement, contains or will contain any untrue statement of fact, or omits or will omit to state a material fact necessary to make the statements contained therein not misleading. To
the extent the Company fails to disclose any information which creates a liability attached to the Assets or to the Business or Lincare which Lincare did not expressly accept, that liability shall remain the responsibility of the Company, and if
Lincare deems it necessary or appropriate to make payment of any such liability it shall have, in addition to its other rights hereunder (including its right to indemnification pursuant to Article 7), the right to make such payment on behalf of the
Company without assuming any liability therefore, and to deduct such amount from its payment obligations under the Agreement in accordance with Section 7.2 hereof. 
 4.13 Billings and Collection. In acknowledgement of the fact that third party payors are billed in advance for the rental of equipment and services, and therefore, a portion of the pre Closing revenues will
include revenues attributable to the rental of equipment and related services provided by Lincare on or after the Closing Date, Company represents that the Company has not billed for any equipment, products, supplies or services provided by the
Company to any Customers of Company on and after the Closing Date, it being agreed that the right to all such billings on and after the Closing Date shall be included in the Assets purchased by Lincare and shall be for the sole benefit of Lincare.
The billings of the Business were prepared and submitted with all the complete and correct forms, documents, test results (which were performed by a provider qualified to bill Medicare for the test, i.e. a Part A provider, a laboratory, an
independent diagnostic testing facility or a physician) and other information necessary to receive payment for such bills and were prepared and submitted in conformity with all applicable laws, rules, regulations codes and guidelines of federal,
state and local health care programs and in conformity with the requirements of each third party payor. 
 4.14 Filings. In respect of
the Business, after Closing Company shall discontinue use of, and deactivate, all of its Medicare, Medicaid and other public or private insurance provider numbers upon the conclusion of its collections and/or write-offs of its accounts receivable.

 4.15 Survival of Representations and Warranties. All representations, warranties, covenants and agreements made by Company in or
pursuant to this Agreement or in any writing, certificate, schedule, exhibit, statement, list, report, instrument, or other document furnished or delivered to Lincare in connection with, or in contemplation of, this Agreement, or the purchase and
sale of the Assets shall be true and correct as of the date of this Agreement and as of the Closing Date as if made at and as of such date, except with respect to representations and warranties which speak as to an earlier date which shall be at and
as of such date, and shall survive the execution, delivery and performance of this Agreement and the Closing; provided, however, that the representations and warranties contained in Sections 4.1, 4.2, 4.3, 4.5 (a)-(f), (i), and (k)-(m), 4.6, 4.9,
4.10 and 4.11 of this Agreement shall survive only for a period of five (5) years after the Closing Date (the “Survival Period”), and the remaining representations and warranties (the “Remaining
Representations”) shall survive until the expiration of all applicable statutes of limitation, subject to any tolling thereof, provided that any matter as to which a claim has been asserted with respect to any such Remaining Representations
by Lincare’s notice to Company that is pending or unresolved at the end of any applicable limitation period shall remain subject to Company’s representations, warranties to and indemnification of Lincare, notwithstanding any applicable
statute of limitations (which the parties hereby waive solely with respect to any such pending or unresolved claim) until such claim is finally terminated or resolved by the parties or by a court of competent jurisdiction and any amounts payable
hereunder in respect thereof are finally determined and paid. Notwithstanding the above, in no event shall the duration of any of the Remaining Representations of Company be limited for a shorter period of time than the Survival Period. The
representations in Section 4.12 as they relate to representations in other Sections shall survive to the extent set forth above for such other Sections.
 Article 5 - REPRESENTATIONS AND WARRANTIES OF LINCARE 
 The representations and warranties of Lincare set forth this Article shall be true and correct as of the date of this Agreement and as of the Closing Date
as if made at and as of such dates, except with respect to representations and warranties which speak as to an earlier date, which shall be at and as of such date. Lincare represents, warrants and covenants as follows: 
 5.1 Organization, Standing and Qualification. Lincare is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all necessary corporate powers, governmental qualifications and authorizations necessary to own its assets and to operate its business in each jurisdiction in which such assets are now owned and such business is now
operated by it. 
 5.2 Legal Power and Authority To Enter Transaction. Lincare has the full right, power, legal capacity, and
authority to enter into and deliver this Agreement and to perform its obligations hereunder and the Transaction. The execution, 
  

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 delivery and performance of this Agreement and the Transaction have been duly authorized by Lincare’s Board of
Directors, a copy of such resolutions so authorizing the execution, delivery and performance of this Agreement, certified by the Secretary of Lincare, has been delivered to Company. This Agreement constitutes the valid and binding obligation of
Lincare and is enforceable in accordance with its terms. 
 5.3 Survival of Representations and Warranties. All representations and
warranties made by Lincare in or pursuant to this Agreement shall survive the execution, delivery and performance of this Agreement and the Closing; provided, however, that the representations and warranties contained in Article 5 of this Agreement
shall survive only for a period of five (5) years after the Closing Date, provided, that any matter as to which a claim has been asserted with respect to such representations and warranties by Company’s notice to Lincare that is pending or
unresolved at the end of said limitation period shall remain subject to Lincare’s representations, warranties to and indemnification of Company, notwithstanding any applicable statute of limitations (which the parties hereby waive) until such
matter is finally terminated or resolved by the parties or by a court of competent jurisdiction and any amounts payable hereunder are finally determined and paid. 
 Article 6 - CLOSING 
 6.1 Access to Information prior to Closing. Company shall afford to Lincare access to Company’s information relating to the Business for purposes of Lincare’s due diligence review of Company’s Business as set forth in
that certain letter of intent executed by Lincare and Company and dated May 24, 2006 (the “LOI”). 
 6.2 Date, Time
and Place. The closing under this Agreement (herein referred to as the “Closing”) shall take place via telecopy on the second business day after the conditions set forth in Section 6.3 hereof shall have been satisfied or
waived or at such other time and date as shall be fixed by agreement by the parties hereto (said date shall herein be referred to as the “Closing Date”) with the original counterparts to be exchanged by the parties via overnight
delivery service for delivery on the next business day following the Closing Date. All transactions at the Closing shall be deemed to have taken place simultaneously at 12:01 a.m. (EST) on the Closing Date, and no transaction shall be deemed to have
been completed and no document, instrument or certificate shall be deemed to have been delivered until all transactions are completed and all documents delivered. 
 6.3 Conditions precedent to the obligations of Lincare’s and Company’s consummation of the Transaction. 
 (a) The respective obligations of each party to consummate the Transaction shall be subject to the satisfaction at or prior to the Closing Date of the following conditions: 
 (i) no statute, rule, regulation, executive order, decree, ruling, or preliminary or permanent injunction shall have been enacted, entered, promulgated,
or enforced by any federal or state court or administrative agency that prohibits, restrains, enjoins, or restricts the consummation of the Transaction that has not been withdrawn or terminated; and 
 (ii) no claim, action, suit, arbitration, inquiry, proceeding or investigation shall have been commenced by or before any federal, state, or local
governmental, regulatory, or administrative authority, agency, or commission or any court, tribunal or judicial or arbitral body against Lincare or Company, seeking to restrain or seeking materially and adversely to alter the Transaction.

 (b) The obligation of Company to consummate the Transaction shall be subject to the satisfaction at or prior to the Closing Date of the
conditions set forth in Section 6.6(b) hereof and of the following additional conditions: the representations and warranties of Lincare set forth in Article 5 hereof shall be true and correct as of the date of this Agreement and as of the
Closing Date as if made at and as of such dates, except with respect to representations and warranties which speak as to an earlier date, which shall be true and correct at and as of such date. 
 (c) The obligation of Lincare to consummate the Transaction shall be subject to the satisfaction at or prior to the Closing Date of the conditions set
forth in Section 6.5 hereof and of the following additional conditions: 
 (i) Lincare’s completion of its due diligence review of
Company’s Business as set forth in the LOI; 
 (ii) Company shall have performed its obligations under the Agreement required to be
performed by it at or prior to the Closing Date; and 
  

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 (iii) the representations and warranties of Company set forth in Article 4 hereof shall be true and
correct as of the date of this Agreement and true and correct as of the Closing Date as if made at and as of such dates, except with respect to representations and warranties which speak as to an earlier date, which shall be true and correct at and
as of such date. 
 6.4 Termination. 
 (a) This Agreement may be terminated and the Transaction abandoned at any time prior to the Closing Date as stated below: 
 (i) by mutual consent of Company and Lincare; or 
 (ii) by either of Company or Lincare if a governmental
authority shall have issued an order, decree or ruling or taken any other action, in each case permanently restraining, enjoining or otherwise prohibiting the Transaction and such order, decree, ruling or other action shall have become final and
non-appealable; or 
 (iii) if the closing of the Transaction shall not have occurred on or before September 30, 2006, unless the
parties mutually agree to extend the time period; or 
 (iv) by Lincare if, 
 (1) during or upon the completion of Lincare’s due diligence, Lincare determines based upon Lincare’s findings in due diligence that Lincare
does not intend to consummate the Transaction. Such findings in due diligence may be based upon, without limitation, Company’s representations and warranties set forth in the Agreement being or becoming inaccurate or untrue or Company’s
revised exhibits and schedules to the Agreement being unsatisfactory to Lincare in its sole discretion; or 
 (2) prior to the closing of
the Contemplated Transaction, Company has failed or is unable to deliver to Lincare the necessary business components or assets to operate the Business as contemplated by Lincare, including but not limited to contracts of the Business, employment
agreements, or covenant agreements; or 
 (3) Lincare otherwise determines for reasons other than with respect to Section 6.4(a)(iv)(1)
and (2) not to close the Transaction; or 
 (v) by Company if, 
 (1) any of Lincare’s representations or warranties contained in the Agreement are or shall have become inaccurate or untrue; or 
 (2) subsequent to the execution of the Agreement and prior to the Closing Date, Lincare reduces the Purchase Price for any reason other than as a result
of Lincare’s findings as set forth in Section 6.4(a)(iv)(1) or Company’s failure or inability as set forth in Section 6.4(a)(iv)(2). 
 (b) In the event of termination of this Agreement, written notice thereof shall forthwith be given to the other party to this Agreement and this Agreement shall terminate and the Transaction shall be thereby deemed
abandoned, without further action by any of the parties hereto, except that if such termination is based upon the occurrence of the event set forth in Section 6.4(a)(iii) hereof, such termination shall not require the delivery of notice by
either party. If this Agreement is terminated, no party hereto shall have any liability or further obligation to the other party to this Agreement resulting from such termination, only except that the binding provisions of the LOI shall remain in
full force and effect and only except as set forth in the following sentence. In the event Lincare terminates the Agreement only for reasons as contemplated in Sections 6.4(a)(iv)(3) hereof or if Company terminates the Agreement only for the reason
specified in Section 6.4(a)(v)(2), Lincare shall be liable to the Company in the amount of Two Million Four Hundred Thousand and no/100 Dollars ($2,400,000.00). 
  

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 6.5 Obligations of Company. At the Closing, Company shall deliver or have delivered to Lincare the
following: 
 (a) lease assignments, assumption agreements and estoppel certificates, in form and substance reasonably satisfactory to
Lincare, sufficient to transfer to Lincare all of Company’s rights with respect to the premises leased or rented by Company at the locations listed on Schedule 4.5(a) hereto which are not identified as Excluded Assets; 
 (b) bills of sale, in form and substance reasonably satisfactory to Lincare, sufficient to convey to Lincare good and marketable title to the Assets;

 (c) a certificate of title and a bill of sale for each automobile, truck or other vehicle included in the Assets, in the form required by
the applicable statutes, laws, rules and regulations of the state of registration; 
 (d) an incumbency certificate, dated as of the Closing
Date and executed by the Secretary of Company certifying the identity and signature of the officers executing any documents required by or relating to this Agreement; 
 (e) a copy of all corporate resolutions necessary to authorize the execution, delivery and performance of this Agreement by Company and copies of Company’s Certificate of Incorporation, as amended, and
Certificate of Good Standing, each certified by the Secretary of the state of Company’s incorporation, and the By-Laws of Company, as amended, certified by the Secretary of Company; 
 (f) except as otherwise expressly set forth herein, all required consents of third parties to the sale, conveyance, transfer, assignment and delivery of
the Assets of the Business to Lincare by virtue of its purchase of the Assets (or an agreement that such consents shall be obtained within 30 days of the Closing Date); 
 (g) any other consents, waivers, instruments or documents as may be reasonably requested by Lincare, including without limitation employment agreements executed by certain Company employees required by Lincare to be
employed with Lincare contemporaneously with the effective date of this Agreement; 
 (h) Uniform Commercial Code termination statements,
lease termination statements, releases and any other documents necessary to evidence that each of the Assets is being sold, conveyed, transferred, assigned and delivered to Lincare free and clear of any Encumbrances; 
 (i) a document authorizing Lincare to endorse the name of Company on any checks, drafts, notes or instruments acquired by Lincare as part of the Assets
which are received by Company or by Lincare after the Closing Date for dates of service occurring after the Closing Date in connection with Lincare’s purchase of the Assets pursuant to this Agreement, provided further, Lincare acknowledges and
agrees, to the extent any of the foregoing negotiable instruments include monies relating to Company’s nursing or PPEC business (“Non Business Monies”), Lincare shall forward such Non Business Monies as soon as practicable.

 (j) completed and executed CMS Form 855S, to be filed by Lincare, for purposes of deactivating all of Company’s Medicare billing
numbers with respect to the Business (Company shall deliver all such Forms to Lincare within ten (10) business days after the Closing Date). 
 (k) an executed sublease agreement in substantially the form attached hereto as Exhibit 6.5(k) for approximately 16000 square feet of the Company’s facility located at 310 Technology Parkway, Norcross, Georgia 30092-2929 for a term of
one year from the Closing Date, with two (2) options to extend for a period of three (3) years each, at an annual rental rate of One Hundred Sixty Five Thousand Dollars ($165,000.00) (the “Facilities Lease”); 

(l) updated exhibits and schedules to the Agreement, if any, which shall have been delivered prior to the Closing; 
 (m) a deed to that certain parcel described in Section 1.1(a)(xi) hereof, subject to an inspection of said parcel; and 
 (n) an executed Collection Agreement in the form attached hereto as Exhibit 14 hereof. 
  

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 6.6 Obligations of Lincare. At the Closing, Lincare shall deliver to Company the following:

 (a) payment of all amounts required to be paid by Lincare to Company at the Closing pursuant to the provisions of Section 3.1 hereof;

 (b) a copy of all corporate resolutions of Lincare necessary to authorize the execution, delivery and performance of this Agreement by
Lincare, certified by the Secretary of Lincare; 
 (c) an executed Facilities Lease; and 
 (d) an executed Collection Agreement in the form attached hereto as Exhibit 14 hereof. 
 6.7 Risk of Loss. Until the Closing, any loss of, or damage to, the Assets or Business from fire, casualty, or any other occurrence shall be the
sole responsibility of Company. 
 6.8 Cooperation After the Closing. 
 (a) Promptly after the Closing, Company shall put Lincare into full possession and enjoyment of the Assets. 
 (b) Lincare and Company will, at any time, and from time to time, after the Closing Date, execute and deliver such further instruments of conveyance and
transfer and take such additional action as may be reasonably necessary to effect, consummate, confirm or evidence the transactions contemplated by this Agreement. 
 (c) Company shall be responsible for all income, franchise, sales, use, property, employment (including social security payments), payroll or other tax liabilities, including, without limitation, any interest and
penalties thereon, which are attributable to operation or ownership of Company or the Assets or the operation of the Business for periods prior to the Closing Date. Lincare shall be responsible for any such taxes attributable to its ownership of the
Assets or the operation of the Business for periods following the Closing Date. Any such taxes requiring apportionment (because Company has paid such liabilities attributable to a period subsequent to the Closing Date or Lincare will pay such taxes
attributable to a period prior to the Closing Date) shall be pro-rated on the basis of the fiscal year covered by such taxes, or otherwise on a mutually acceptable equitable basis. If either party shall have paid any taxes for which the other party
is responsible as aforesaid, appropriate adjustments will be made by the parties at or as promptly as practicable after the Closing Date. Notwithstanding anything in the foregoing to the contrary, if Lincare will or deems it necessary or appropriate
to pay taxes for which Company is responsible, Lincare shall have the right to deduct any amount paid or to be paid by Lincare from the installment payments of the Purchase Price in accordance with Section 7.2 hereof. 
 (d) It is acknowledged that Lincare has waived compliance by Company with the provisions of any bulk sales or transfer law of any state that is or may
be applicable to the transactions contemplated hereby and Company agrees to indemnify Lincare with respect to such waiver and non-compliance in accordance with the provisions of Article 7 hereof in accordance with Section 7.2 hereof.

 (e) Company shall use its best efforts to obtain all consents of third parties and to make all filings with and give all notices to third
parties and to do any and all other acts and things which may be necessary or reasonably required in order to transfer to Lincare all of the Assets, free and clear of any Encumbrances, and to effect fully the transactions contemplated by this
Agreement. In case any Assets or rights have not at the Closing been transferred effectively, or are subject to any Encumbrance, Company shall use its best efforts to cooperate with Lincare in any lawful arrangement to provide that Lincare shall
receive the benefit of Company’s interest in any of such Assets and rights. 
 (f) Company agrees that, after the Closing, it shall
provide reasonable cooperation and assistance to Lincare, with respect to any matters, disputes, suits or claims by or against any person not a party to this Agreement. 
 (g) If, within one (1) year after the Closing Date, Lincare determines it is reasonably necessary to have an audit performed of any or all of the Financial Statements, Company agrees to use reasonable efforts to
cooperate with Lincare and to provide Lincare with all reasonable assistance required to prepare such audited financial statements, including, without limitation, the following: (i) providing Lincare and its representatives with all necessary
information, data, documents and records relating to the Business for the time periods covered by the Financial Statements; and (ii) delivery of representation letters by Company, and Company’s legal counsel, to Lincare or its auditors. If
requested by Lincare, Company shall use its reasonable best efforts to cause the Company’s accountants, auditors and legal counsel to cooperate with and to assist Lincare and its representatives in the preparation of any such audited financial
statements, it being expressly agreed and understood that Lincare shall be solely responsible for the reasonable fees and expenses of the Company’s external accountants, auditors and legal counsel and internal staff members in rendering such
assistance and cooperation to Lincare and its representatives. 
  

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 (h) Except for the Encumbered Cylinders, it is understood and agreed by the parties that on the Closing
Date, Company shall cause to be delivered to Lincare title to all high pressure cylinders owned, leased, rented, used or otherwise possessed by Company, free and clear of all Encumbrances (including, but not limited to, any lease or rental
obligations). Notwithstanding the above, the parties agree that those tanks listed on Schedule 6.8(h) (“Large Tanks”) do not need to be delivered free and clear of Encumbrances. The parties understand and agree that M tanks shall
not be deemed hereby to be Large Tanks. Lincare agrees to assume responsibility for the lease/rental of such Large Tanks, but only for the number of Large Tanks, which is the lesser of (i) the number of tanks disclosed on Schedule 6.8(h) or
(ii) the actual number of Large Tanks in use by the Business on and after Closing. Lincare will assume no responsibility for any discrepancy between the number of Large Tanks claimed to be on rental by the vendor and the number of Large Tanks
claimed to be on rental by Company, nor be responsible for any charges associated with such a discrepancy (either rental or buyout of such tanks). Lincare assumes responsibility only for the number of Large Tanks actually in use by the Business at
the time of Closing. 
 Company agrees that the Encumbered Cylinders shall be free and clear of Encumbrances no later than October 1,
2006. Subject to the foregoing sentence, after the Closing, Lincare shall reasonably cooperate with Company in Company’s efforts to deliver the Encumbered Cylinders free and clear of Encumbrances, such cooperation including aiding Company in
replacing cylinders as appropriate and communicating with Lincare cylinder vendors as appropriate. Notwithstanding anything in this Section 6.4(h) to the contrary, the parties understand and agree that the Company is solely liable for
delivering the Encumbered Cylinders free and clear of Encumbrances and that Lincare shall have no liability in respect of any claim by a cylinder vendor or lessor relating to the purchase of cylinders, rental charges associated with cylinders,
shortfall of cylinders, or otherwise. To the extent that there is a shortfall in the number of cylinders rented or leased by Company, such shortfall shall not be setoff against any cylinders owned by Company. 
 (i) If it is impracticable for Company to provide to Lincare at the Closing all of the Uniform Commercial Code termination statements, lease termination
statements, releases and other documents necessary to evidence delivery to Lincare of title to the Assets free and clear of any Encumbrances, Company shall deliver all such statements, releases and documents to Lincare no later than thirty
(30) business days after the Closing. 
 (j) Notwithstanding anything to the contrary in this Agreement, the following prorations
relating to the Assets will be made as soon as practicable after the Closing Date, with Company liable to the extent such items relate to any time period prior to the Closing Date with Lincare liable to the extent such items relate to periods from
and after the Closing Date: (i) ad valorem, personal property, real estate, occupancy and other similar taxes, if any, on or with respect to the Assets; (ii) the amount of charges for rent, water, telephone, electricity and other
utilities; and, (iii) other similar items. The net amount of all such prorations will be settled and paid as soon as practicable after the Closing Date. The parties hereto understand and agree that amounts owed by Company shall be considered an
Excluded Liability of Company and amounts owed by Lincare shall be considered an Accepted Liability of Lincare. 
 (k) If, after the Closing
Date, Company requests access to Company records transferred to Lincare relating to periods prior to the Closing Date in connection with: (i) any examination or audit of Company by any taxing or other governmental authority relating to periods
prior to the Closing Date; (ii) any tax filings of Company relating to periods prior to the Closing Date; (iii) defending any third party claims, whether such claims are the subject of indemnification pursuant to the provisions of this
Agreement or otherwise; (iv) any audit or investigation by Medicare, Medicaid or any other third party payor relating to services, equipment, products or supplies provided by Company prior to the Closing Date; or (v) pursuant to any other
lawful order of any court or other governmental agency; then Lincare agrees to provide Company or its authorized agents with reasonable and prompt access to such records at the location and in the form which such records are maintained at the date
of any such request. Upon Company’s request and at its sole expense, Lincare shall provide copies of any such records to Company or its authorized agents. Lincare agrees to maintain such Company records for all applicable statutes of
limitations time periods, including particularly such statutes of limitations relating to the health care records of minors. 
 (l) with
respect to the Shared Locations, the parties hereto agree that the party agreeing to vacate any such Shared Location pursuant to Schedule 4.5(a) shall be allowed to utilize such location for a period not to exceed one hundred twenty (120) days
after the Closing Date for a transition period. 
  

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 Article 7 – REMEDIES 
 7.1 Indemnification. 
 (a) Indirect
Action. 
 (i) Company shall defend, indemnify and hold Lincare harmless from, against, and in respect of, any and all claims, demands,
lawsuits, proceedings, losses, obligations, assessments, fines, penalties, administrative or judicial orders, costs, expenses, liabilities and damages, including interest, penalties and reasonable attorneys’ fees (singly the
“Claim” and collectively the “Claims”) Lincare may incur from a third party, which arise or result from or relate to: (1) Company’s breach of, or failure to perform, any of their respective
representations, warranties, covenants, obligations, liabilities, commitments or agreements under this Agreement (including, without limitation, any misrepresentation in, or omission from, any schedule, exhibit, statement, certificate, writing,
list, instrument or report or other document furnished or to be furnished pursuant to this Agreement; (2) Lincare’s being required to assume or discharge any of the Excluded Liabilities or Company’s operation of the Business prior to
the Closing; or (3) Lincare’s being required to assume or discharge by operation of law any debt, liability or obligation of Company, including, but not limited to, any liability or obligation arising under any federal, state or local bulk
sales, bulk transfer or fraudulent conveyance law. 
 (ii) Lincare shall defend, indemnify and hold Company harmless from, against, and in
respect of, any and all Claims Company may incur from a third party, which arise or result from or relate to: (1) Lincare’s breach of, or its failure to perform, any of its representations, warranties, covenants, obligations, liabilities,
commitments or agreements under this Agreement (including, without limitation, any misrepresentation in, or omission from, any statement, certificate, writing, list, instrument or report or other document furnished or to be furnished pursuant to
this Agreement); or (2) Company’s being required to assume or discharge any of the Accepted Liabilities or Lincare’s operation of the Business from and after the Closing. 
 (iii) With respect to any Claim brought by a third party which may give rise to indemnification under Sections 7.1(a)(i) or (ii) of this Agreement
from an indemnitor (“Indemnitor”) to an indemnified party (“Indemnified Party”), the following procedure shall be followed: 
 (1) Promptly after the assertion of any Claim by a third party, the Indemnified Party shall notify the Indemnitor in writing of such Claim. The notice shall specify the facts then known to the Indemnified Party
relating to the Claim and the amount or estimated amount of the liability claimed by such third party. Promptly after receipt of the written notice, the Indemnitor shall advise the Indemnified Party whether the Indemnitor intends to contest such
Claim. Indemnitor and Indemnified Party agree that Indemnitor shall have the right to submit claims properly covered by liability insurance to the appropriate carrier of such insurance, and both parties agree to cooperate in such effort. Subject to
Section 7.1(a)(iii)(2), if Lincare is the Indemnified Party, Lincare shall have the right to deduct the amount of the Claim plus reasonable attorneys’ fees, and costs pursuant to Section 7.2 hereof. 
 (2) Indemnitor shall have the absolute right, in its sole discretion and at its sole expense, to elect to defend, contest, settle or otherwise protect
against any Claim or action which may give rise to a Claim with legal counsel of its own selection; provided, however, Indemnitor shall not agree or consent to any judgment or settlement that imposes injunctive or equitable relief against the
Indemnified Party without the prior written consent of the Indemnified Party. The Indemnified Party shall have the right, but not the obligation, to participate, at its own expense, in the defense thereof through counsel of its own choice and shall
have the right, but not the obligation, to assert any and all cross claims and counterclaims it may have. Each party shall, and shall cause its affiliates to, at all times cooperate in all reasonable ways with, make its relevant files and records
available for inspection and copying by, and make its employees available or otherwise render reasonable assistance to, the other party in its defense of any Claim. In the event the Indemnified Party shall, before notice is given to the Indemnitor,
make any settlement with respect to any Claim, the Indemnitor shall not be bound to such settlement and shall not be bound to indemnify for any costs, damages, expenses or other liabilities resulting from such Claim. Once notice is given to the
Indemnitor, and if the Indemnitor fails timely to accept defense of the Claim, the Indemnified Party shall have the right, but not the obligation, to defend, contest, assert cross claims or counterclaims to otherwise protect against the same and may
make any compromise or settlement thereof and recover and be indemnified for the entire cost thereof from the Indemnitor including, without limitation, reasonable legal expenses, disbursements and all amounts paid as a result of such matter.

  

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 (b) Direct Action. 
 (i) Company shall be liable to Lincare directly for: (1) any breach of, or failure to perform by Company of any of their respective representations, warranties, covenants, obligations, liabilities, commitments or
agreements under this Agreement (including, without limitation, any misrepresentation in, or omission from, any schedule, exhibit, statement, certificate, writing, list, instrument or report or other document furnished or to be furnished pursuant to
this Agreement; (2) Lincare’s being required to assume or discharge any of the Excluded Liabilities; or (3) Lincare’s being required to assume or discharge by operation of law any debt, liability or obligation of Company,
including, but not limited to, any liability or obligation arising under any federal, state or local bulk sales, bulk transfer or fraudulent conveyance law. 
 (ii) Lincare shall be liable to Company directly for any: (1) breach of, or its failure to perform, any of its representations, warranties, covenants, obligations, liabilities, commitments or agreements under
this Agreement (including, without limitation, any misrepresentation in, or omission from, any statement, certificate, writing, list, instrument or report or other document furnished or to be furnished pursuant to this Agreement); or
(2) Company’s being required to assume or discharge any of the Accepted Liabilities. 
 (iii) With respect to any Claim which may
give rise to indemnification under Sections 7.1(b)(i) or (ii) of this Agreement, the Indemnified Party shall provide reasonable notice to the Indemnitor. If Company is the Indemnitor and does not cure the breach or failure to perform within
thirty (30) days, where feasible, of receipt of such notice, then Lincare shall have, in addition to its other rights hereunder, the right to deduct an amount equal to such damages proximately caused by such breach or failure pursuant to
Section 7.2 hereof. 
 7.2 Lincare’s Right to Setoff. Without limiting any other rights and remedies to which Lincare may be
entitled in this Agreement, or at law or in equity, Lincare shall have the right to deduct from its payment obligations under this Agreement, the amount of any Claim which Lincare has against Company pursuant to Sections 7.1 (a)(i) and 7.1(b)(i), or
any other payment made by Lincare as provided for in this Agreement, subject to the requirements and limitations of Article 13 herein. If Company either satisfies or otherwise successfully contests such Claim, Lincare agrees that it shall promptly
reverse such deduction or pay Company the amount of such deduction. 
 7.3 Cumulative Remedies. In no event shall the provisions of
this Article 7 restrict or impair in any respect the rights or remedies otherwise available to the parties hereto at law or in equity, which rights and remedies shall be cumulative and in addition to any other available remedies. 
 7.4 Limitation of Liability. Except with respect to Excluded Liabilities for which there shall be no limitation, the liability of the Company with
respect to this Agreement and the transactions contemplated hereby shall be limited in the aggregate to the sum of Thirty Five Million and no/100 Dollars ($35,000,000.00). 
 Article 8 - CONFIDENTIALITY 
 8.1 Proprietary and Confidential Information. Company covenants and agrees on behalf of itself and each of its respective parents, subsidiaries and affiliates that from and after the Closing, no such person or entity shall, directly
or indirectly, use or disclose to any third party any of the proprietary or confidential information of Company, except when, after, and only to the extent that: (a) such proprietary or confidential information is or becomes generally available
to the public through no fault of Company or any of its parents, subsidiaries and affiliates; (b) such information is required by Company in connection with any tax returns heretofore or hereafter filed; or (c) disclosure of such
information is required by court order or applicable law. As used herein, the term “proprietary and confidential information” of Company shall include all information of or relating to the Assets and the Business (including, but not
limited to, present or prospective market, sales, product, customer and referral source information; prices and pricing structure; contractual arrangements including without limitation this Agreement, its exhibits and schedules, and any ancillary
agreements to this transaction; operating information, policies, procedures and practices; financial information; product and process knowledge; cost and supplier information; personnel data; and any strategy or plans related to any of the
foregoing) which has not been generally available or disclosed to the public by Lincare. Notwithstanding anything in this paragraph to the contrary and without limitation under this Agreement, the disclosure of the tax treatment and tax structure of
this transaction shall not be barred from disclosure. 
  

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 8.2 No Solicitation. 
 (a) From and after the Closing, Company shall not for a period of three (3) years from the Closing Date: 
 (i) directly or indirectly, hire, offer to hire, or entice away, or in any other manner persuade or attempt to persuade, any officer or employee of Lincare (including, but not limited to, any former officer or employee of the Business
who was employed by the Business within the last 24 months), or in any other manner persuade or attempt to persuade, any officer or employee of Lincare (including, but not limited to, any former officer or employee of the Business who was employed
by the Business within 24 months of the Closing Date) to discontinue his or her employment with Lincare. It is understood and agreed that the prohibitions contained in this Section 8.2(a)(i) shall apply to all current and future officers and
employees of Lincare (including, but not limited to, any former officer or employee of the Business employed by the Business 24 months of the Closing Date), whether or not any such person is then currently an officer or employee of Lincare or
whether any such prohibited activity is in connection with employment or an offer of employment within or outside the Territory. Notwithstanding anything to the contrary in this Section 8.2(a)(i), Company shall have the right to hire an
employee or engage as an independent contractor any employee of the Business to whom Lincare, in its sole discretion, does not extend an offer of employment; or 
 (ii) directly or indirectly solicit, divert or take away, or attempt to solicit, divert or take away any business or customers of the Business Company had enjoyed or solicited in the Territory prior to the date
hereof. 
 (b) It is expressly understood and agreed by the parties hereto that it shall be a breach hereof for Company to assist in any way
any business associate, or any other person, firm, corporation, partnership, joint venture, association, trust or other entity, to engage in any activity which is prohibited by this Section 8.2. 
 Article 9 - COVENANT NOT TO COMPETE. 
 9.1 Covenant. 
 (a) In consideration of the purchase by Lincare of the Assets and the Business
pursuant to the terms and conditions of this Agreement, and for other good and valuable consideration, Company, any parents of Company, and any subsidiaries of Company (hereinafter referred to individually as a “Covenantor” and
collectively as the “Covenantors”) hereby represent, warrant, covenant and agree, jointly and severally, that, commencing on the Closing Date continuing for a period of five (5) years thereafter, no Covenantor will, directly or
indirectly, engage in the Business within the Territory (hereafter the “Covenant Not to Compete”). 
 (b) Without limiting
the generality of the provisions of Section 9.1(a) hereof, this Covenant Not to Compete shall be construed so that Covenantors shall also be in breach hereof if any of them is an employee, officer, director, shareholder, investor, trustee,
agent, principal or partner of, or a consultant or advisor to or for, or a subcontractor or manager for, a person, firm, corporation, partnership, joint venture, association, trust or other entity which is engaged in such business in the Territory,
or if any of them receives any compensation or remuneration from or owns, directly or indirectly, any outstanding stock or shares or has a beneficial or other financial interest in the stock or assets of any such person, firm, corporation,
partnership, joint venture, association, trust or other entity engaged in such business in the Territory. Notwithstanding anything to the contrary contained in this Section 9.1(b), no Covenantor shall be deemed to be in breach of this Covenant
Not to Compete solely by reason of owning an interest of less than one percent (1%) of the shares of any company traded on a national securities exchange or in the over the counter market. 
 (c) It is expressly understood and agreed by Covenantors that it shall be a breach of this Covenant Not to Compete for a Covenantor to assist in any way
any business associate, or any other person, firm, corporation, partnership, joint venture, association, trust or other entity, to engage in any activity which a Covenantor is prohibited from engaging in by this Covenant Not to Compete. 

(d) The parties acknowledge that it is foreseeable that Company and/or Covenantor will acquire in the future one or more entities or businesses that
are primarily engaged in the business of home-care nursing or private duty nursing services and that, in certain instances, such entities or businesses may secondarily provide services comparable to the Business. In the event that Covenantor
acquires an entity that is engaged in the Business, (i) Covenantor shall promptly notify Lincare of such event and (ii) Covenantor shall not be in breach of Section 9.1(a) hereof by reason of such acquired entity operating such
Business if the revenue of the acquired entity from such Business, at the time of such acquisition, is less than thirty percent (30%) of the total revenue of the acquired entity for the twelve (12)-month period preceding the acquisition (the
“Revenue Threshold”); provided, however, that if the revenue of the acquired entity from such Business, at the time of such acquisition, is less than the Revenue Threshold, then Covenantor shall proceed with the process set
forth as follows: the Covenantor shall have ninety (90) days from the date of acquisition to dispose of or cease operating, directly or indirectly in any manner whatsoever, the Business of the acquired entity. Pending Covenantor’s
obligation to dispose of or cease operating the Business of the 
  

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 acquired entity, the Covenantor, including the acquired entity, shall operate such Business separately from any of the
other businesses of the Covenantor and shall not use or otherwise deploy, directly or indirectly, any of the Covenantor’s rights, assets, resources, data, know how, trade secrets or information, including, without limitation (i) any trade
names or trademarks of the Covenantor, (ii) any locations of the Covenantor, (iii) any employees of the Covenantor, other than customary overhead services, including but not limited to, quality management, human resources, legal, employee
benefits, finance, risk management and accounting, (iv) customer, referral or patient lists, and (v) without any increased budgets or expenditures for marketing, sales, or development activities. 
 9.2 Remedies. Covenantors agree that the remedy at law for any breach of obligation under this Covenant Not to Compete will be inadequate and that
in addition to any other rights and remedies to which it may be entitled hereunder, at law or in equity, Lincare shall be entitled to injunctive relief, and reimbursement for all reasonable attorneys’ fees and other expenses incurred in
connection with the enforcement hereof. It is the intention of Covenantors and Lincare that this Covenant Not to Compete be fully enforceable in accordance with its terms and that the provisions hereof be interpreted so as to be enforceable to the
maximum extent permitted by applicable law. To the extent that any obligation to refrain from competing within an area for a period of time as provided in this Covenant Not to Compete is held invalid or unenforceable, it shall, to the extent that it
is invalid or unenforceable, be deemed void ab initio. The remaining obligations imposed by the provisions of this Covenant Not to Compete shall be fully enforceable as if such invalid or unenforceable provisions had not been included herein
and shall be construed, to the extent possible, such that the purpose of this Covenant Not to Compete, as intended by Covenantors and Lincare, can be achieved in a lawful manner. If any portion of this Covenant Not to Compete is held to be invalid
or unenforceable, then Lincare shall have, in addition to its other rights hereunder (including its right to indemnification pursuant to Article 7), the right to seek repayment from the Company or deduct from its payment obligations under this
Agreement, in accordance with Section 7.2 hereof, the reasonable value of the Covenant Not to Compete as of the date it is held unenforceable or invalid. 
 9.3 Condition Precedent. Covenantors acknowledge and agree that their representations, warranties, covenants, agreements, commitments and obligations contained in this Covenant Not to Compete are an inducement
for, and a condition precedent to, Lincare’s entering into this Asset Purchase Agreement and that Lincare is specifically relying on such representations, warranties, covenants, agreements, commitments and obligations of Covenantors in entering
into and performing its obligations under this Agreement. 
 Article 10 - EXPENSES; TAXES 
 10.1 Expenses. Each of the parties hereto shall bear the fees and expenses incurred by it in connection with the preparation, negotiation,
execution, delivery, and performance of this Agreement and the Transaction. 
 10.2 Taxes. Lincare and Company shall share equally the
amount of all taxes, excises and other governmental charges and/or fees payable in connection with the sale, conveyance, transfer, assignment and delivery of the Assets hereunder (including, without limitation, all sales, use, transfer, filing or
recording taxes or fees). Company shall be responsible for the costs of obtaining all notices and consents and for the preparation of all necessary assignments in connection with the sale, conveyance, transfer, assignment, and delivery of the Assets
to Lincare hereunder. 
 Article 11 – BROKERS’ FEES AND COMMISSIONS 
 Except for Raymond James & Associates, Inc., all negotiations relative to this Agreement and the transactions contemplated hereby have been
carried on directly between Lincare and Company without the intervention or assistance of any party not a party to this Agreement (other than to provide accounting or legal counsel). Except for Raymond James & Associates, Inc., no party to
this Agreement, nor any third party, has any right or claim to any commission, brokerage fee, finder’s fee, expenses or other compensation relative to this Agreement or the transactions contemplated hereby (other than for accounting and legal
services). Each party shall indemnify, defend and hold the other parties hereto harmless from, against and in respect of all claims for commission, brokerage fee, finder’s fee, expenses or other compensation claimed by or through such party.

 Article 12 - GOVERNING LAW 
 The interpretation and performance of this Agreement shall be governed by the laws of the State of Florida, without giving effect to its conflicts of law provisions. Each party hereby agrees that any claims, demands,
lawsuits, proceedings and controversies arising from or relating to this Agreement may be brought and heard in federal or state courts of general 
  

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 jurisdiction located in the State of Florida, and each party hereby consents to the subject matter and personal
jurisdiction of such courts in respect thereof, though such action may also be brought in any federal or state court where jurisdiction is otherwise proper. In addition, if a Claim is brought by a third party and a claim for indemnification becomes
necessary, such claim shall be brought in the court where the original Claim by the third party was filed and each party hereby consents to the subject matter and personal jurisdiction of such courts, provided jurisdiction is proper in the
jurisdiction where the original Claim was brought. The laws of the State of Florida shall govern all questions concerning the construction, validity and interpretation of this Agreement and performance of the obligations hereunder. 
 Article 13 - NOTICES 
 Each party hereby agrees to notify promptly the other party of any liabilities, claims, misrepresentations, breaches or other matters subject to this Agreement upon discovery or receipt of notice thereof (other than from the other party).
Lincare further agrees that it shall use reasonable efforts to provide such notice at least thirty (30) days, where feasible, prior to any deductions from its purchase price payment obligations specified in Sections 3.1(b) and 3.1(c) in order
to allow Company to cure or contest the underlying matter within such thirty-day period; however, Company agrees that the failure by Lincare to provide such notice shall not relieve Company of any of its obligations pursuant to this Agreement.

 All notices, requests, demands, reports, statements or other communications required to be given hereunder or relating to this Agreement
shall be in writing and shall be deemed to have been duly given on the date of service if personally served on the party to whom notice is to be given, or on the date of receipt if mailed to the party to whom notice is to be given, by first class
mail, registered or certified, return receipt requested, postage prepaid, and properly addressed to any such party at the address listed for such party in this Article 13. Any party may at any time direct in writing that all communications or
particular communications or particular types of communications be delivered to specific designees other than those specified herein by notifying the other parties in the manner prescribed herein. Notices hereunder shall be sent to the following:

  

			
	To Company:	  	Pediatric Services of America, Inc.
		  	310 Technology Parkway
		  	Norcross, Georgia 30092-2929
		  	Attention: James M. McNeill
		
	To Lincare:	  	Lincare Inc.
		  	19387 U.S. 19 North
		  	Clearwater, FL 33764
		  	Attention: Legal Department

 Article 14 - COLLECTION OF GOVERNMENT PATIENT RECEIVABLES. Company hereby appoints Lincare, and Lincare
hereby agrees to act, as Company’s collection agent with respect to the Government Patient Receivables relating to the rendering of services, equipment and supplies by Company to customers on or before the Closing Date. Company hereby assigns
all such amounts received by Lincare, as collection agent, to Lincare in full satisfaction of Company’s obligation to transfer to Lincare an amount equal to the value of Company’s Government Patient Receivables. All Receivables shall be
collected pursuant to the terms and conditions of that certain Collection Services Agreement between Company and Lincare effective as of the Closing Date (the “Collection Agreement”), a copy of which is attached hereto as Exhibit 14
and incorporated by reference. 
 Article 15 – GUARANTEE RELATING TO RECEIVABLES. 
 15.1 The Minimum Collection Amount. Based on Company’s guarantee contained in Section 4.5(d), in the event that Lincare does not collect
an amount equal to at least eighty percent (80%) of Company’s Receivables that are true and correct as of the Closing Date (the “Minimum Collection Amount”) during the Collection Period (as defined in Section 15.2
below), Lincare shall, in addition to its other rights hereunder, have the right to deduct from its post-closing payment obligations under this Agreement the amount by which the Minimum Collection Amount exceeds the amount of Receivables collected
by Lincare during the Collection Period (such excess, if any, hereinafter referred to as the “Shortfall”). The parties understand and agree that in no event shall the total of the Receivables that are true and correct as of the
Closing Date be less than Ten Million Eight Hundred Thousand and no/100 Dollars ($10,800,000.00). To the extent that Lincare’s then remaining post-closing payment obligations under this Agreement are not sufficient to offset any such Shortfall,
Company agrees to pay to Lincare the balance of such Shortfall within ten (10) business days after Lincare’s demand therefor. In determining the amount of the Shortfall, Lincare will give the Company credit for those amounts received on
the Receivables for a period beginning at the end of the Collection Period and continuing through the end of the ninth month after the Closing Date. 
  

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 15.2 The Collection Period. The “Collection Period” shall be defined as the
period beginning on the Closing Date and continuing for six (6) months thereafter. During the Collection Period, Lincare shall use reasonable efforts to collect the Receivables; provided, however, that reasonable efforts shall not include
initiating legal proceedings to collect such Receivables. 
 15.3 In the event that Lincare has not collected the Minimum Collection Amount
during the Collection Period, and provided that: (i) Lincare has deducted in full the amount of any Shortfall from its obligations under this Agreement; or (ii) the Company has met its obligations to Lincare with respect to paying to
Lincare the entire amount of any such Shortfall as set forth in Section 15.1 hereof, then Lincare shall refund to Company that portion of the Shortfall equal to the amount of Receivables collected by Lincare during the three (3) month
period following the Collection Period. 
 Article 16 – EMPLOYEE MATTERS. 
 16.1 Termination Bonus Plan. Lincare shall maintain a termination bonus plan (the “Termination Plan”) with respect to the Hired
Employees (hereinafter defined) for the period beginning on the Closing Date and ending on the ninetieth (90th) day thereafter (the “Termination Period”). All employees of Company who are offered employment by Lincare, who are listed on Schedule 16.1, and who accept such offer of employment and actually perform services
for Lincare on or after the Closing Date, shall be known as the “Hired Employees”; provided, however, the parties acknowledge and agree that, notwithstanding any hiring status designation on Schedule 16.1 or anything else to the
contrary in this Section 16.1, the Company’s Regional Vice Presidents and Location Directors and those individuals set forth in Schedule 16.3 shall not be considered Hired Employees for purposes of the Termination Plan contemplated by this
Section 16.1 and, as such, such Regional Vice Presidents and Location Directors shall not be entitled to participate in such Termination Plan. Lincare further acknowledges and agrees that, no later than three (3) days prior to the Closing
Date, it shall provide Company with an updated Schedule 16.1, which shall clearly identify those employees to whom Lincare intends to offer employment. The Termination Plan shall provide a termination bonus for each Hired Employee identified on
Schedule 16.1 whose employment with Lincare or its affiliates is terminated (other than as a result of a termination for cause by Lincare or as a result of an employee’s voluntary termination of employment) during the Termination Period.
Payments under the Termination Plan shall be in the amounts provided on Schedule 16.1 (less customary deductions and withholds) which have been calculated using the payment calculation formula set forth on Schedule 16.1. Payments under the
Termination Plan shall be conditioned upon the execution by the Hired Employee of a general release of claims in a form determined by Lincare. The Company hereby agrees to reimburse Lincare for payments made by Lincare and its affiliates under the
Termination Plan (including any deductions and withholds). No later than twenty (20) days after each calendar month after the Closing Date during the Termination Period, Lincare shall provide the Company written notice of the termination of
Hired Employees whose employment terminated during such calendar month (other than as a result of the Hired Employee’s voluntary termination of employment) (the “Termination Notices”). The Termination Notices shall include the
aggregate amount of termination payments under the Termination Plan to the Hired Employees whose employment terminated during such calendar month. The Company covenants and agrees that, within five (5) business days of its receipt of each of
the Termination Notices, it shall make a cash payment by wire transfer of immediately available funds to such account as Lincare shall designate in the Termination Notices in the amount of the termination payments set forth in the Termination
Notices. No amounts shall be payable under the Termination Plan to any Hired Employee whose employment terminates after the end of the Termination Period. The Company and Lincare each acknowledge and agree that Lincare’s only responsibilities
under this Article 16 are for the administration of the Termination Plan. The Company shall be liable for all amounts paid under the Termination Plan during the Termination Period. In addition to its other rights hereunder (including its right to
indemnification pursuant to Article 7 hereof, Lincare shall have the right to deduct any termination payments from Lincare’s payment obligations under this Agreement in accordance with Section 7.2 hereof. 
 16.2 Employment Agreements with Covenants not to Compete.  
 (a) As a condition precedent to the Closing, certain individuals identified in Section 16.2(b) hereof shall execute employment agreements, which shall be substantially in the form of Exhibit 16.2, and shall
provide among other things an agreement by such individual not to compete with Lincare for a certain period of time as set forth in Section 16.2(b) in exchange for Lincare’s agreement to employ such individual. 
 (b) For each of the following three (3) individuals, Mr. Jack Mosley, Mr. John Leboeuf, and Mr. Charles Leshinsky, (an “RVP
Employee”), the parties hereto understand and agree that each such RVP Employee shall agree not to engage in the Business, within the state or states in which such RVP Employee had management responsibilities within the six 
  

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 (6)-month period immediately prior to such RVP Employee’s cessation of employment with Lincare or any affiliate, for
a period of one (1) year after such RVP Employee leaves the employ of Lincare or any affiliate for any reason. For each of the individuals listed on Schedule 16.2 (a “Location Director”), the parties hereto understand and agree
that each such Location Director shall agree not to engage in the Business, within a one hundred fifty (150) mile radius of any Lincare or Company facility in which such Location Director had management responsibilities within the six (6)-month
period immediately prior to such Location Director’s cessation of employment with Lincare or any affiliate, for a period of six (6) months after such Location Director leaves the employ of Lincare or any affiliate for any reason.

 (c) In addition to employment with Lincare, as additional consideration for the non-competition covenants described in this
Section 16.2, Lincare shall pay each RVP Employee and Location Director as more fully described in and subject to the following: 
 (i)
For each RVP Employee whose employment with Lincare or its affiliates continues uninterrupted from the Closing Date until at least the day that is five business days immediately prior to the six (6)-month anniversary of the Closing Date, as
additional consideration for the RVP Employee’s agreement not to compete, Lincare shall pay such RVP Employee Fifty Thousand and no/100 Dollars ($50,000.00) (less customary deductions and withholds) on Lincare’s then next regular employee
compensation payment date. For each RVP Employee whose employment with Lincare or its affiliates continues uninterrupted from the Closing Date until at least the day that is five business days immediately prior to the one (1)-year anniversary of the
Closing Date, as further additional consideration for the RVP Employee’s agreement not to compete, Lincare shall pay such RVP Employee Fifty Thousand and no/100 Dollars ($50,000.00) (less customary deductions and withholds) on Lincare’s
then next regular employee compensation payment date. Notwithstanding anything in the foregoing to the contrary, the parties hereto understand and agree that, if Lincare terminates any such RVP without cause prior to the day that is five business
days immediately prior to the one (1)-year anniversary of the Closing Date, such RVP shall be entitled to receive total monetary consideration of One Hundred Thousand and no/100 Dollars ($100,000.00) (less customary deductions and withholds), less
payment already made to such RVP under this Section 16.2(c)(i), if any. The parties hereto understand and agree that Lincare shall not be obligated under this Section 16.2 to pay any RVP Employee total monetary consideration in excess of
One Hundred Thousand and no/100 Dollars ($100,000.00) (less customary deductions and withholds). 
 (ii) For each Location Director whose
employment with Lincare or its affiliates continues uninterrupted from the Closing Date until at least the day that is five business days immediately prior to the six (6)-month anniversary of the Closing Date, as additional consideration for the
Location Director’s agreement not to compete, Lincare shall pay such Location Director Twenty-Five Thousand and no/100 Dollars ($25,000.00) (less customary deductions and withholds), except as otherwise specified on Schedule 16.2, on
Lincare’s then next regular employee compensation payment date. For each Location Director whose employment with Lincare or its affiliates continues uninterrupted from the Closing Date until at least the day that is five business days
immediately prior to the one (1)-year anniversary of the Closing Date, as further additional consideration for the Location Director’s agreement not to compete, Lincare shall pay such Location Director Twenty-Five Thousand and no/100 Dollars
($25,000.00) (less customary deductions and withholds), except as otherwise specified on Schedule 16.2, on Lincare’s then next regular employee compensation payment date. Notwithstanding anything in the foregoing to the contrary, the parties
hereto understand and agree that, if Lincare terminates any such Location Director without cause prior to the day that is five business days immediately prior to the one (1)-year anniversary of the Closing Date, such Location Director shall be
entitled to receive total monetary consideration of Fifty Thousand and no/100 Dollars ($50,000.00) (less customary deductions and withholds), except as otherwise specified on Schedule 16.2, less payment already made to such Location Director under
this Section 16.2(c)(ii), if any. The parties hereto understand and agree that Lincare shall not be obligated under this Section 16.2 to pay any Location Director total monetary consideration in excess of Fifty Thousand and no/100 Dollars
($50,000.00) (less customary deductions and withholds), except as otherwise specified on Schedule 16.2. 
 (iii) On or about the day that is
five business days immediately prior to the six (6)-month anniversary of the Closing Date, Lincare shall provide the Company written notice of those RVP Employees and Location Directors who are entitled to the additional consideration as set forth
in Section 16.2(c)(i) and (ii). The Company covenants and agrees that, within five (5) business days of Lincare’s providing such written notice but in no event later than the date the deferred Purchase Price payment set forth in
Section 3.1(b) hereof is payable, the Company shall make a cash payment to Lincare by wire transfer of immediately available funds in an amount equal to the total amount to which all RVP Employees and Location Directors are entitled (including
any deductions and withholds). No amounts shall be payable under Sections 16.2(c)(i) and (ii) to any RVP Employee or Location Director whose employment with Lincare ceases before the day that is five business days immediately prior to the six
(6)-month anniversary of the Closing Date, unless Lincare terminates such RVP or Location Director without cause during such period. 
  

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 (iv) On or about the day that is five business days immediately prior to the one(1)-year anniversary of
the Closing Date, Lincare shall provide the Company written notice of those RVP Employees and Location Directors who are entitled to the additional consideration as set forth in Section 16.2(c)(i) and (ii). The Company covenants and agrees
that, within five (5) business days of Lincare’s providing such written notice but in no event later than the date the deferred Purchase Price payment set forth in Section 3.1(c) hereof is payable, the Company shall make a cash
payment to Lincare by wire transfer of immediately available funds to such account as Lincare shall designate in the written notice in an amount equal to the total amount to which all RVP Employees and Location Directors are entitled (including any
deductions and withholds). No amounts shall be payable under this Section 16.2(c)(i) and (ii) to any RVP Employee or Location Director whose employment with Lincare ceases before the day that is five business days immediately prior to the
one (1)-year anniversary of the Closing Date, unless Lincare terminates such RVP or Location Director without cause during such period. 
 (v) The Company shall be liable for all amounts paid to RVP Employees or Location Directors under this Section 16.2(c). In addition to its other rights hereunder (including its right to indemnification pursuant to Article 7 hereof),
Lincare shall have the right to deduct any such payments from Lincare’s payment obligations under this Agreement in accordance with Section 7.2 hereof. 
 16.3 Retention Agreements. 
 (a) As a condition precedent to the Closing, certain individuals
identified in Schedule 16.3 hereof shall execute agreements, which shall provide among other things an agreement by Lincare to pay such individuals a retention bonus as more fully described in and subject to Section 16.3(b) hereof. 

(b) For each of the individuals identified in Schedule 16.3 whose employment with Lincare or its affiliates continues uninterrupted from the Closing
Date until at least the day that is five business days immediately prior to the one (1)-year anniversary of the Closing Date, Lincare shall pay such individual in accordance with Schedule 16.3 hereof (less customary deductions and withholds) on
Lincare’s then next regular employee compensation payment date. Notwithstanding anything in the foregoing to the contrary, the parties hereto understand and agree that, if Lincare terminates any such individual without cause prior to the day
that is five business days immediately prior to the one (1)-year anniversary of the Closing Date, such individual shall be entitled to receive the above-referenced payment (less customary deductions and withholds). 
 (c) The Company covenants and agrees that, within five (5) business days of Lincare’s providing such written notice but in no event later than
the date the deferred Purchase Price payment set forth in Section 3.1(c) hereof is payable, the Company shall make a cash payment to Lincare by wire transfer of immediately available funds in an amount equal to the total amount to which all
such individuals as described above are entitled. No amounts shall be payable under this Section 16.3 to any individual whose employment with Lincare ceases before the day that is five business days immediately prior to the one (1)-year
anniversary of the Closing Date, unless Lincare terminates any such individual without cause during such period. 
 (d) The Company shall be
liable for all amounts paid under this Section 16.3 (including customary deductions and withholds). In addition to its other rights hereunder (including its right to indemnification pursuant to Article 7 hereof), Lincare shall have the right to
deduct any such payments from Lincare’s payment obligations under this Agreement in accordance with Section 7.2 hereof. 
 Article 17 – MISCELLANEOUS 
 17.1 Entire Agreement. The terms and conditions of this Agreement (including the
exhibits and schedules hereto) constitute the entire agreement among the parties with respect to the subject matter hereof and supersede any prior understandings, agreements or representations by or between the parties, written or oral. There are no
understandings, representations or warranties of any kind whatsoever, except as expressly set forth herein. The exhibits and schedules attached to this Agreement constitute an integral part hereof for all purposes, including, without limitation, the
construction and interpretation of the respective rights and obligations of the parties hereto. 
 17.2 Amendment. No amendment or
modification of this Agreement or waiver of the terms or conditions hereof shall be binding upon any party unless approved in writing by, such party or by an authorized representative of such party. 
 17.3 Non-Waiver. The failure of any party hereto to enforce at any time any of the provisions of this Agreement shall not be construed to be a
waiver of any such provisions, nor in any way affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce any such provisions. No waiver of any breach of this Agreement shall be deemed a waiver of any
other or subsequent breach, whether of the same provision or otherwise. 
  

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 17.4 Assignment. This Agreement shall inure to the benefit of and be binding on the parties hereto
and their respective successors, assigns, legal representatives and heirs. This Agreement shall not be assigned by any party without the prior written consent of the other parties. Any attempted assignment without such consent shall be void.
Notwithstanding anything to the contrary contained in the foregoing, Lincare shall have the right at any time, and from time to time, to assign this Agreement to its parent or any affiliate or subsidiary or any successor to its business, without the
consent of the other parties to this Agreement; provided that, notwithstanding any such assignment by Lincare, Lincare shall remain primarily liable for the payment and performance of its obligations under this Agreement. 
 17.5 No Third Party Beneficiaries. This Agreement is intended for the sole and exclusive benefit of the parties hereto, and no third party or
person is intended as a third party beneficiary of this Agreement or any part hereof in any respect (including, but not limited to, any employee of Company) and no third party or person shall obtain any rights, claims, benefits or privileges under
or by virtue of this Agreement whatsoever. 
 17.6 Construction. This Agreement has been negotiated at arm’s length among the
parties, and each of the parties has been represented by legal counsel. Accordingly, each of the parties shall be deemed to have participated in the preparation of this Agreement and this Agreement shall not be construed more strictly against one
party than the other. 
 17.7 Counterparts and Facsimile. This Agreement may be executed in one or more counterparts, all of which
shall be considered one and the same agreement, and shall become a binding agreement when one or more counterparts have been signed by each of the parties and delivered to the other parties. Facsimile signatures shall be deemed original signatures
for purposes of the Closing. 
 17.8 Number. In this Agreement, where applicable, references to the singular shall include the
plural and references to the plural shall include the singular.  
 17.9 Gender. In this Agreement, where applicable,
references to the male, female or neuter gender shall include reference to all other such genders where the context so requires. 
 17.10
Headings. The subject headings of the articles, Sections and Subsections of this Agreement are included for purposes of convenience and reference only, and shall not affect the construction or interpretation of any of its provisions.

 [The balance of this page has been intentionally left blank. The signature page follows.] 
  

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 IN WITNESS WHEREOF, the parties to this Agreement have duly executed it as of the day and year
first above written. 
  

			
	LINCARE INC., a Delaware corporation
		
	By:	 	 /s/ Paul Tripp

		 	Paul Tripp
	Its:	 	Acquisitions Attorney
	
	 PEDIATRIC SERVICES OF AMERICA, INC.
 d/b/a
PSA HEALTHCARE, a Delaware corporation

		
	By:	 	 /s/ Daniel J. Kohl

		 	Daniel J. Kohl
	Its:	 	President and CEO
	
	 PEDIATRIC SERVICES OF AMERICA, INC.,
 a
Georgia corporation

		
	By:	 	 /s/ Daniel J. Kohl

		 	Daniel J. Kohl
	Its:	 	President and CEO
	
	PSA CAPITAL CORPORATION, a Delaware corporation
		
	By:	 	 /s/ Daniel J. Kohl

		 	Daniel J. Kohl
	Its:	 	President

  

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