Document:

exv10w1

 

EXHIBIT 10.1

April 24, 2008

Albert A, “Rocky” Pimentel

18206 Daves Ave,

Monte Sereno CA 95030

Re: Offer of Employment

Dear Rocky:

I am pleased to offer you a position at McAfee as Chief Operating Officer & Chief Financial Officer
(COO & CFO) reporting directly to me. If you decide to join us, your annual base salary will be
$500,000 which will be paid semi-monthly in the amount of $20,833.33 less applicable withholdings.
This is an exempt position. Additionally, you will be eligible to participate in a McAfee bonus
plan at an annual target bonus of $500,000, which will be pro-rated
in your first year. You will
receive more specific information on this plan after you have started employment with the company.
Your election as an officer of McAfee is subject to confirmation by the Board of Directors,

In addition, I will recommend to the Board of Directors that you receive a stock option grant for
150,000 shares of the Company’s Common Stock with a grant date, vesting commencement date, and
strike price to be determined at the sole discretion of the Board of Directors and/or its
Compensation Committee. This option will vest over a four year period, with 25% vesting on the
first anniversary of the grant date and the remainder in equal amounts over the next 36 monthly
periods. It shall be subject to the terms of the Company’s Stock Option Plan and the standard
option agreements pursuant to the plan. You will receive information on this Plan at a later date,

I am pleased to inform you that I will recommend to the Board of Directors that you receive a
restricted stock unit (“RSU”) award for 50,000 shares of the Company’s Common Stock with a grant
date and vesting commencement date to be determined at the sole discretion of the Board of
Directors and/or its Compensation Committee. The RSU award will vest 1/3 on the first anniversary
of the vesting start date, 1/3 on the second anniversary of the vesting start date and 1/3 on the
third anniversary of the vesting start date. These units and their vesting shall be subject to the
terms of the Company’s Stock Plan. You will receive further information on this Plan at a later
date.

I am also pleased to inform you that I will recommend to the Board of Directors that you receive a
performance stock unit (“PSU”) award for 50,000 shares of the Company’s Common Stock with a grant
date, vesting commencement date, and par value to be determined at the sole discretion of the Board
of Directors and/or its Compensation Committee. The PSU award will vest 1/3 on the first
anniversary of the vesting start date, 1/3 on the second anniversary of the vesting start date, and
1/3 on the third anniversary of the vesting start date assuming specific qualitative and
quantitative financial milestones as set forth by the Board of Directors or its

 

 

designee are met during each potential vesting period. These units and their vesting shall be
subject to the terms of the Company’s Stock Plan. You will receive further information on this Plan
at a later date.

If you choose to accept this offer, your employment with McAfee, Inc. will be voluntarily entered
into and will be for no specified period. As a result, you will be free to resign at any time, for
any reason or for no reason, as you deem appropriate. McAfee, Inc. will have a similar right and
may conclude its employment relationship with you at any time, with or without cause. Upon
separation from the company for any reason, you also agree to return to the Company any equipment
that has been provided to you or reimburse the Company the cost for such equipment. The Company
reserves the right to deduct such costs from any final payments made to you in accordance with
state and federal laws.

You agree to devote your full business efforts and time to the Company and will use good faith
efforts to discharge your obligations to the best of your ability and in accordance with the
Company’s written guidelines and policies. You agree not to actively engage in any other
employment, occupation, or consulting activity for any direct or indirect remuneration without the
prior approval of the Board or its Compensation Committee.

In the event your “at-will” employment by McAfee, Inc. is terminated for any reason, you will be
entitled to receive payment for all accrued pay and allowances, as well as payment for the value of
all accrued but unused vacation time as set out on the books of the Company, less all appropriate
withholdings. You will also be entitled to severance benefits as set out in a separate Change in
Control and Severance Agreement between you and the Company. Our intention is that the separate
agreement will provide the following terms, but benefits to be paid under such agreement are
subject in all cases to the entry into of such agreement and the terms of such agreement.

Generally speaking, if your employment is terminated other than for cause or our inability to
obtain a clear background investigation or you resign for good reason prior to a change in control,
you will be entitled to:

	 	1.	 	a sum equivalent to twelve (12) months of base salary and,
	 
	 	2.	 	if you are then covered by the Company health care plan, the equivalent of
twelve (12) months cost of pre-tax COBRA coverage.

Generally speaking, if you a terminated other than for cause or resign for good reason within
twelve (12) months following a change in control, you will be entitled to:

	 	1.	 	a sum equivalent to twelve (12) months of base salary; and,
	 
	 	2.	 	a prorated payment of your current year unpaid bonus if paid at target levels; and,
	 
	 	3.	 	if you are then covered by the Company health care plan, the equivalent of
twelve (12) months cost of pre-tax COBRA coverage; and,

 

 

	 	4.	 	100% acceleration of all time based stock options and stock units (e.g. RSUs)
which are not linked to any performance criteria. Acceleration of any stock options or
stock units with any performance based vesting will be subject to Board approval.

It is not the intention for any payment under this Agreement to create or constitute a
“nonqualified deferred compensation plan” within the meaning of Section 409A of the Internal
Revenue Code of 1986 (as amended). Should it be reasonably determined that any payment hereunder
falls within the purview of Section 409A thus subjecting you to additional tax liability, the
Company shall defer such payment until the expiry of six months following the date of termination
of employment. If such payment is deferred as provided for herein, upon conclusion of the period of
deferral, such amounts shall be paid in a lump sum, less all appropriate withholdings,

For purposes of federal immigration law, you will be required to provide to McAfee, Inc.
documentary evidence of your identity and eligibility for employment in the United States. Such
documentation must be provided to us within three business days of your date of hire with McAfee,
Inc., or our employment relationship with you may be terminated.

McAfee, Inc. requires that job candidates provide certain information on their employment
application and other documents so McAfee, Inc. can undertake appropriate investigations regarding
the backgrounds of all job candidates. A candidate must successfully complete the background
investigation to be eligible for employment with McAfee, Inc. The Company considers background
information and investigation results when making hiring decisions. Therefore, all employment
offers are contingent upon the successful completion of the background investigation. In the event
for any reason you have commenced employment prior to a full background investigation having been
completed and it is ultimately determined that the background investigation results are not
acceptable, as determined by McAfee in its sole discretion, your employment relationship will be
terminated and you will not be entitled to severance benefits.

You will be required to sign an Employee Inventions and Proprietary Rights Assignment Agreement as
a condition of your employment. In addition, you will also be required to complete a Form W-4 and
sign and abide by the McAfee, Inc. Insider Trading Policy, and its Drug Free Workplace Policy. This
letter, along with any agreements relating to proprietary rights between you and McAfee, Inc., set
forth the terms of your employment with McAfee, Inc. and supersede any prior representations or
agreements, whether written or oral. This letter may not be modified or amended except by writing
signed by McAfee, Inc.

In the event of any dispute or claim relating to or arising out of our employment relationship,
this agreement, or the termination of our employment relationship (including, but not limited to,
any claims of retaliation, wrongful termination or age, sex, disability, race or other
discrimination), you and McAfee, Inc. agree that all such disputes shall be fully, finally and
exclusively resolved by binding arbitration conducted by the American Arbitration Association in
California or the state in which you work if other than California, and we waive our rights to have
such disputes

 

 

tried by a court or jury. However, we both agree that this arbitration provision shall not apply to
any disputes or claims relating to or arising out of the misuse or misappropriation of your or the
Company’s trade secrets or proprietary information.

To indicate your acceptance of the McAfee, Inc. offer, please sign, date and fax this letter to
Roger Bean, Vice President of Human Resources/North America at (972) 987-2783 or US mail to 5000
Headquarters Drive, Plano TX 75024 no later than April 30, 2008. If we do not hear from you by
April 30, 2008 we will assume you have decided not to join McAfee.

If you do accept employment with McAfee, Inc., it is very important that you submit your new hire
documentation within 1 day of your start date. McAfee, Inc. needs the following: 1) I-9 Form, 2)
W-4 Form, 3) Employment Application and Background Release, 4) Emergency Contact, 5) Direct Deposit
information, and 6) an original signed offer letter to enter you into the McAfee payroll.

Rocky, we look forward to working with you at McAfee. If you have any questions regarding any
points in this letter please contact me. Welcome aboard!

Sincerely,

David
DeWalt

President and CEO

McAfee, Inc.

I accept the terms of this letter and agree to keep the terms of this letter confidential.

	 	 	 	 	 	 	 
	/s/ Albert A. Pimentel
 

	 	 
	 	4/24/08
 

	 	 
	Signature of Albert “Rocky” Pimentel
	 	 
	 	Date
	 	 
	 
	 	 	 	 	 	 
	I agree to start work for McAfee on:

	 	 
	 	5/12/08
 

	 	 
	 	 	 
	 	
Start Dateexv10w1

 

Exhibit 10.1

AGREEMENT AND PLAN OF MERGER

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article I. The Merger
	 	 	5	 
	 
	 	 	 	 
	Section 1.1 Capitalization of Merger Sub; Merger Consideration
	 	 	5	 
	Section 1.2 The Merger
	 	 	5	 
	Section 1.3 Effective Time
	 	 	6	 
	Section 1.4 Effect of the Merger
	 	 	6	 
	Section 1.5 Governing Documents
	 	 	6	 
	Section 1.6 Directors and Officers
	 	 	6	 
	Section 1.7 Tax Consequences
	 	 	6	 
	 
	 	 	 	 
	Article II. Merger
	 	 	7	 
	 
	 	 	 	 
	Section 2.1 Conversion of Securities; Merger
	 	 	7	 
	Section 2.2 Payment of Certain Merger Consideration; Escrow of Certain Merger
Consideration
	 	 	7	 
	Section 2.3 Stock Transfer Books
	 	 	8	 
	Section 2.4 Further Actions
	 	 	8	 
	 
	 	 	 	 
	Article III. Representations and Warranties of Target and the Target Shareholders
	 	 	9	 
	 
	 	 	 	 
	Section 3.1 Organization
	 	 	9	 
	Section 3.2 Authority
	 	 	9	 
	Section 3.3 Target Records
	 	 	9	 
	Section 3.4 Capitalization
	 	 	10	 
	Section 3.5 Subsidiaries
	 	 	10	 
	Section 3.6 Title to Assets
	 	 	10	 
	Section 3.7 Condition and Sufficiency of Assets
	 	 	11	 
	Section 3.8 No Violation
	 	 	11	 
	Section 3.9 Governmental Authorizations
	 	 	11	 
	Section 3.10 Financial Statements
	 	 	12	 
	Section 3.11 Absence of Undisclosed Liabilities
	 	 	12	 
	Section 3.12 Absence of Certain Changes
	 	 	13	 
	Section 3.13 Taxes
	 	 	14	 
	Section 3.14 Litigation
	 	 	15	 
	Section 3.15 Compliance with Laws
	 	 	16	 
	Section 3.16 Licenses
	 	 	16	 
	Section 3.17 Payors
	 	 	16	 
	Section 3.18 Medical Staff Matters
	 	 	16	 
	Section 3.19 Health Care Legal Matters
	 	 	16	 
	Section 3.20 Environmental Matters
	 	 	18	 
	Section 3.21 Employee Matters
	 	 	19	 
	Section 3.22 Employee Benefit Plans
	 	 	20	 
	Section 3.23 Material Contracts
	 	 	21	 
	Section 3.24 Intellectual Property
	 	 	22	 
	Section 3.25 Competing Interests
	 	 	22	 
	Section 3.26 No Conflict of Interest
	 	 	22	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 3.27 Illegal Payments
	 	 	23	 
	Section 3.28 Insurance
	 	 	23	 
	Section 3.29 SEC Filings; Financial Statements
	 	 	23	 
	Section 3.30 Accredited Investor
	 	 	23	 
	Section 3.31 Investment Intent
	 	 	24	 
	Section 3.32 Lock-Up; Restricted Securities
	 	 	25	 
	Section 3.33 Full Disclosure
	 	 	26	 
	 
	 	 	 	 
	Article IV. Representations and Warranties of Parent and Merger Sub
	 	 	26	 
	 
	 	 	 	 
	Section 4.1 Organization
	 	 	26	 
	Section 4.2 Authority
	 	 	26	 
	Section 4.3 No Violation
	 	 	26	 
	Section 4.4 Governmental Authorizations
	 	 	26	 
	Section 4.5 Litigation
	 	 	27	 
	Section 4.6 Full Disclosure
	 	 	27	 
	 
	 	 	 	 
	Article V. Covenants
	 	 	27	 
	 
	 	 	 	 
	Section 5.1 Conduct of Business by Target Pending the Closing
	 	 	27	 
	Section 5.2 Cooperation
	 	 	31	 
	Section 5.3 Access to Target Information; Confidentiality
	 	 	31	 
	Section 5.4 No Solicitation of Transactions
	 	 	32	 
	Section 5.5 Appropriate Action; Consents; Filings
	 	 	33	 
	Section 5.6 Takeover Statutes
	 	 	35	 
	Section 5.7 Public Announcements
	 	 	35	 
	Section 5.8 Indemnification of Directors and Officers
	 	 	35	 
	Section 5.9 Tax Matters
	 	 	36	 
	Section 5.10 Delivery of Interim Financial Statements
	 	 	37	 
	Section 5.11 Transitional Matters
	 	 	37	 
	Section 5.12 Amendment of Target Governing Documents
	 	 	38	 
	Section 5.13 Further Assurances
	 	 	38	 
	 
	 	 	 	 
	Article VI. Closing Conditions
	 	 	38	 
	 
	 	 	 	 
	Section 6.1 Conditions to Obligations of Each Party Under This Agreement
	 	 	38	 
	Section 6.2 Additional Conditions to Obligations of Parent and Merger Sub
	 	 	39	 
	Section 6.3 Additional Conditions to Obligations of Target
	 	 	40	 
	 
	 	 	 	 
	Article VII. Termination, Amendment and Waiver
	 	 	41	 
	 
	 	 	 	 
	Section 7.1 Termination
	 	 	41	 
	Section 7.2 Effect of Termination; Limitation on Liability
	 	 	43	 
	Section 7.3 Amendment
	 	 	43	 
	Section 7.4 Waiver
	 	 	43	 
	Section 7.5 Fees and Expenses
	 	 	43	 
	 
	 	 	 	 
	Article VIII. Indemnification
	 	 	44	 
	 
	 	 	 	 
	Section 8.1 General Indemnity
	 	 	44	 
	Section 8.2 Sole Remedy
	 	 	45	 
	Section 8.3 Indemnification Procedures
	 	 	45	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 8.4 Effect on Purchase Price
	 	 	46	 
	Section 8.5 Survival of Representations, Warranties and Agreements
	 	 	46	 
	Section 8.6 Limitations of Liability
	 	 	47	 
	 
	 	 	 	 
	Article IX. General Provisions
	 	 	47	 
	 
	 	 	 	 
	Section 9.1 Notices
	 	 	47	 
	Section 9.2 Accounting Terms
	 	 	49	 
	Section 9.3 Construction and Interpretation
	 	 	49	 
	Section 9.4 Descriptive Headings
	 	 	49	 
	Section 9.5 Severability
	 	 	49	 
	Section 9.6 Entire Agreement
	 	 	50	 
	Section 9.7 Assignment; Binding Effect
	 	 	50	 
	Section 9.8 Enforcement
	 	 	50	 
	Section 9.9 GOVERNING LAW
	 	 	51	 
	Section 9.10 Consent to Jurisdiction
	 	 	51	 
	Section 9.11 Jury Trial Waiver
	 	 	51	 
	Section 9.12 Counterparts
	 	 	51	 

iii

 

AGREEMENT AND PLAN OF MERGER

     THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of March 19, 2008 (the
“Effective Date”), is made and entered into by and among RHA Anadarko, LLC, an Oklahoma
limited liability company, having its principal office at 3555 NW 58th Street, Suite 700, Oklahoma
City, Oklahoma 73112 (“Parent”), SPMC Acquisition Corporation, an Oklahoma corporation and
wholly-owned subsidiary of Parent (“Merger Sub”), Southern Plains Medical Center, Inc., an
Oklahoma corporation, having its principal place of business for purposes of this Agreement at 2222
W. Iowa Ave., Chickasha, Oklahoma 73018 (“Target”), and each of the shareholders of Target,
which are identified on Exhibit A hereto, (each a “Target Shareholder”, and
collectively the “Target Shareholders”).

     WHEREAS, the Board of Managers of Parent (the “Parent Board”), and the Board of
Directors of Target (the “Target Board”) have determined that it is in the best interests
of their respective members and shareholders, as the case may be, for Parent to acquire Target upon
the terms and subject to the conditions set forth in this Agreement;

     WHEREAS, in furtherance of such acquisition, the Parent Board, the Target Board and the Board
of Directors of Merger Sub (the “Merger Sub Board”) have approved and declared advisable
and in the best interests of their respective members and shareholders, as the case may be, this
Agreement, the transactions contemplated hereby and the acquisition of Target by Parent via a
merger of Merger Sub with and into Target, with Target being the surviving corporation (the
“Merger”), upon the terms and subject to the conditions set forth in this Agreement and in
accordance with the Oklahoma General Corporation Act (the “OGCA”);

     WHEREAS, the Parent Board and the Target Board have determined that the Merger is in
furtherance of and consistent with their respective business strategies and is in the best interest
of their respective members and shareholders, as the case may be;

     WHEREAS, the Target Shareholders have agreed, on the terms and subject to the terms and
conditions herein, to each vote all of their outstanding shares of the common stock of Target (the
“Target Common Stock”), which represents all of the issued and outstanding capital stock of
Target, to approve this Agreement and the transactions contemplated hereby; and

     WHEREAS, Parent, Merger Sub, Target, and the Target Shareholders desire to make certain
representation, warranties, covenants and agreements in connection with the Merger and to prescribe
certain conditions to the Merger;

     NOW, THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth in this Agreement, the parties agree as follows:

Definitions.

     The following terms, as used herein, shall have the following meanings:

     “1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

1

 

     “Affiliate” means, with respect to any Person, (i) if such Person is a natural Person,
a spouse of such Person, or any child or parent of such Person, (ii) if such Person is not a
natural Person, any director or officer of such Person and any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such Person.

     “Approval” means any approval, authorization, consent, license, franchise, order,
waiver, registration or other confirmation of or by, or filing with, any Person.

     “Eligible Target Shareholder” means, on the relevant distribution date, a Target
Shareholder: (i) who is employed by the Surviving Corporation or the Parent, (ii) whose employment
with the Surviving Corporation or Parent was terminated due to the death of the Target Shareholder,
(iii) whose employment with the Surviving Corporation or Parent was terminated due to the
disability of the Target Shareholder, as determined under the Surviving Corporation or Parent’s
disability insurance plan, as applicable, or (iv) who has reached the age of 70 and whose
employment with the Surviving Corporation or Parent has not been terminated for cause pursuant to
that Target Shareholder’s employment agreement for a reason other than the complete and continued
retirement of the Target Shareholder, or, if terminated due to the retirement of the Target
Shareholder, the Target Shareholder remains completely and continuously retired.

     “Environmental Claim” means any Litigation or notice (written or oral) by any Person
alleging potential Liability (including potential Liability for investigatory costs, cleanup costs,
governmental response costs, natural resources damages, property damages, personal injuries, or
penalties) arising out of, based on or resulting from (a) the presence, Release or threatened
Release of any Hazardous Materials at any location, whether or not owned or operated by Target, or
(b) circumstances forming the basis of any violation, or alleged violation, of any Environmental
Law.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     “Expenses” includes all reasonable out of pocket expenses (including, without
limitation, all fees and expenses of counsel, accountants, investment bankers, experts and
consultants to a party hereto and its affiliates) incurred by a party or on its behalf in
connection with or related to the authorization, preparation, negotiation, execution and
performance of this Agreement and the transactions contemplated hereby and all other matters
related to the transaction contemplated hereto.

     “Governmental Authority” means any nation, state, county, city, town, village,
district or other jurisdiction of any nature; federal, state, local, municipal, foreign or other
government; governmental or quasi-governmental agency, regulatory authority, agency, commission,
board or other body of any nature (including any governmental branch, department, official or
entity and any court or other tribunal); multi-national organization or body; or body exercising,
or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory
or taxing authority or power of any nature.

2

 

     “Lien” means any lien, statutory lien, pledge, mortgage, security interest, charge,
encumbrance, easement, right of way, covenant, claim, restriction, right, option, conditional sale
or other title retention agreement of any kind or nature whatsoever.

     “Other Filings” means any filings necessary to effectuate the Merger or otherwise
necessary to comply with securities Laws.

     “Parent Material Adverse Effect” means: (a) any event, circumstance or occurrence that
has resulted in, or would reasonably be expected to result in, a material adverse effect on the
business, operations, properties, tangible assets, condition (financial or otherwise) or results of
operations of Parent and Merger Sub, taken as a whole; or (b) any event, circumstance or occurrence
that prevents or materially delays, or would reasonably be expected to prevent or materially delay,
the ability of Parent or Merger Sub to consummate the Merger; provided, however, that in no
event shall any of the following be a Parent Material Adverse Effect, or be taken into account in
the determination of whether a Parent Material Adverse Effect has occurred: (i) any change or
conditions generally affecting any of the industries in which Parent operates; (ii) any changes in
general economic, business, market, regulatory or political conditions; (iii) any change resulting
from the announcement or pendency of the transactions contemplated by this Agreement; or (iv) any
change resulting from the compliance by Parent or Merger Sub with the terms of, or the taking of
any action by Parent or Merger Sub contemplated or permitted by, this Agreement.

     “Permitted Liens” means with respect to any Person (a) such imperfections of title,
easements, encumbrances or restrictions as do not materially impair the current use of such
Person’s or any of its Subsidiary’s assets; (b) materialmen’s, mechanics’, carriers’, workmen’s,
warehousemen’s, repairmen’s and other like Liens arising in the ordinary course of business, or
deposits to obtain the release of such Liens; (c) Liens for current Taxes not yet due and payable,
or being contested in good faith; (d) purchase money Liens incurred in the ordinary course of
business; and (e) those Liens set forth on Schedule 3.6.3.

     “Permit” means any permit, grant, easement, variance, exemption, certificate, Approval
or clearance of any Governmental Authority.

     “Person” means any individual, partnership, corporation, limited liability company,
association, business trust, joint venture, governmental entity, business entity or other entity of
any kind or nature, including any business unit of such Person.

     “Release” means any release, spill, emission, discharge, leaking, pumping, injection,
deposit, disposal, dispersal, leaching or migration into the environment (including ambient air,
surface water, groundwater and surface or subsurface strata) or into or out of any property,
including the movement of Hazardous Materials through or in the air, soil, surface water,
groundwater or property.

     “SEC” means the Securities and Exchange Commission.

     “Subsidiary” when used with respect to any Person means any other Person, whether
incorporated or unincorporated, of which (a) more than 51% of the securities or other ownership
interests are owned by the first Person; (b) securities or other interests having by their terms

3

 

ordinary voting power to elect more than 51% of the board of directors or others performing
similar functions with respect to the second Person are directly owned or controlled by the first
Person or by any one or more of its Subsidiaries; or (c) the first Person or any of its
Subsidiaries is the general or managing partner (excluding partnerships of which the general or
managing partnership interests held by such first Person or any of its Subsidiaries do not have at
least 51% of the voting interest).

     “Target Acquisition Proposal” means any inquiry, proposal or offer from any Person
relating to any (a) merger, reorganization, share exchange, consolidation, business combination,
recapitalization, liquidation, dissolution, extraordinary dividend or similar transaction or series
of transactions involving Target; (b) sale, lease or other transfer, directly or indirectly by
merger, share exchange, consolidation, business combination, liquidation, dissolution,
extraordinary dividend, joint venture or similar transaction or series of transactions, of 51% or
more of Target’s assets or properties; (c) issuance, sale or other disposition (including by way of
merger, consolidation, business combination, share exchange, joint venture or any similar
transaction) of securities (or options, rights or warrants to purchase, or securities convertible
into or exchangeable for such securities) representing 51% or more of the Target Common Stock; (d)
tender offer, exchange offer or similar transaction that if consummated would result in any Person
acquiring beneficial ownership, or the right to acquire beneficial ownership, or formation of any
group that beneficially owns or has the right to acquire beneficial ownership, of 51% or more of
the outstanding Target Common Stock; or (e) any combination of the foregoing, other than as
provided under this Agreement; provided, however, that none of the following shall
constitute Target Acquisition Proposal: (i) the Merger; (ii) any transaction contemplated by the
Target Diligence Letter; or (iii) any proposal or transaction involving the refinancing of the
existing debt of Target otherwise permitted by this Agreement.

     “Target Common Stock” means the common stock, par value $100.00 per share, of Target.

     “Target Material Adverse Effect” means: (a) any event, circumstance or occurrence that
has resulted in, or would reasonably be expected to result in, a material adverse effect on the
business, operations, properties, tangible assets, condition (financial or otherwise) or results of
operations of Target, taken as a whole; or (b) any event, circumstance or occurrence that prevents
or materially delays, or would reasonably be expected to prevent or materially delay, the ability
of Target to consummate the Merger; provided, however, that in no event shall any of the
following be Target Material Adverse Effect, or be taken into account in the determination of
whether Target Material Adverse Effect has occurred: (i) any change or conditions generally
affecting any of the industries in which Target operates; (ii) any changes in general economic,
business, market, regulatory or political conditions; (iii) any change resulting from the
announcement or pendency of the transactions contemplated by this Agreement; or (iv) any change
resulting from the compliance by Target with the terms of, or the taking of any action by Target
contemplated or permitted by, this Agreement.

     “Target Shareholder” means a holder of Target Common Stock on the Effective Date.

4

 

     “Target Shareholder Agreement” means the “Southern Plains Medical Center, P.C.
Shareholder Agreement,” effective as of August 20, 2002, as amended or restated, by and among
Target and Target Shareholders.

     “Target Superior Proposal” means a bona fide Target Acquisition Proposal for at least
50% of the outstanding Target Common Stock or 50% of Target’s assets or properties, made by a third
party that was not solicited by Target or any Target Representative, that contains no financing
contingency and for which financing is reasonably determined to be available by the Target Board,
after consultation with Target’s financial advisors, taking into account, to the extent deemed
appropriate by the Target Board, the various legal, financial and regulatory aspects of the
proposal and the Person making such proposal, that (a) if accepted, is reasonably likely to be
consummated; and (b) if consummated, would result in a transaction that is more favorable to the
Target Shareholders, from a financial point of view, than the transactions contemplated by this
Agreement.

     “Tax Law” means the Law (including any applicable regulations or any administrative
pronouncement) of any Governmental Authority relating to any Tax.

     “Tax Period” means with respect to any Tax, the period for which the Tax is reported
as provided under the applicable Tax Law.

     “Tax Return” means any U.S. federal, state, local or foreign return, declaration,
report, claim for refund, amended return, declaration of estimated Tax or information return or
statement relating to Taxes, and any schedule, exhibit, attachment or other materials submitted
with any of the foregoing, and any amendment thereto.

     “TIGroup” means Tri-Isthmus Group, Inc., a Delaware Corporation.

     “TIGroup Common Stock” means the common stock, par value $0.01 per share, of TIGroup.

Article I.

The Merger

     Section 1.1 Capitalization of Merger Sub; Merger Consideration Parent shall contribute to
Merger Sub (i) 975,000 shares of TIGroup Common Stock and (ii) $910,000 of cash.

     Section 1.2 The Merger. At the Effective Time and upon the terms and subject to
satisfaction or waiver of the conditions set forth in this Agreement, and in accordance with the
OGCA, Merger Sub shall be merged with and into Target. As a result of the Merger, the separate
corporate existence of Merger Sub shall cease and Target shall continue as the surviving
corporation of the Merger (the “Surviving Corporation”). The name of the Surviving
Corporation shall be “Southern Plains Medical Center, Inc.” as set forth in the certificate of
merger substantially in the form of Exhibit B attached hereto (the “Certificate of
Merger”). The Surviving Corporation shall continue to be
governed by the laws of the State of Oklahoma, and all of the rights, privileges, powers,
immunities, purposes and franchises of Merger Sub shall be

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vested in the Surviving Corporation.
The Merger shall have the effects specified in Section 1081 of the OGCA.

     Section 1.3 Effective Time. Unless this Agreement is terminated pursuant to Section
7.1, and subject to the satisfaction or waiver of the conditions set forth in
Article VI, the consummation of the Merger and the closing of the transactions contemplated
by this Agreement (the “Closing”) will take place at the offices of Frailey, Chaffin,
Cordell, Perryman, Sterkel & McCalla LLP, 201 N. 4th Street, Chickasha, Oklahoma 73018 by the
parties as soon as practicable (but in any event within two business days) after the satisfaction
or waiver of all conditions set forth in Article VI, or at such other date and place as
Parent and Target may agree, provided that all conditions set forth in Article VI have been
satisfied or waived at or prior to such date (such date on which the Closing actually occurs, the
“Closing Date”). It is anticipated by the parties that the Closing Date will be March 31,
2008. As promptly as practicable on the Closing Date, the parties shall cause the Merger to be
consummated by filing the Certificate of Merger with the Secretary of State of the State of
Oklahoma, in such form as required by, and executed in accordance with, the relevant provisions of
the OGCA (the date and time of such filing, or such later date or time as is specified in the
Certificate of Merger, is referred to herein as the “Effective Time”).

     Section 1.4 Effect of the Merger. At the Effective Time, the effect of the Merger shall be
as provided in the applicable provisions of the OGCA. Without limiting the generality of the
foregoing, and subject thereto, at the Effective Time, except as otherwise provided herein, all the
properties, rights, privileges, powers and franchises of Target and Merger Sub shall vest in the
Surviving Corporation, and all debts, liabilities, obligations and duties of Target and Merger Sub
shall become the debts, liabilities, obligations and duties of the Surviving Corporation.

     Section 1.5 Governing Documents. At the Effective Time, the articles of incorporation and
by-laws of Merger Sub, as in effect immediately prior to the Effective Time, shall automatically,
and without further action, become the articles of incorporation and by-laws of the Surviving
Corporation and thereafter shall continue to be its articles of incorporation and by-laws until
further amended as provided therein and in accordance with the OGCA.

     Section 1.6 Directors and Officers. The initial directors of the Surviving Corporation at
the Effective Time shall be comprised of up to five individuals, each to hold office in accordance
with the articles of incorporation and by-laws of the Surviving Corporation until his or her
respective successor is duly elected or appointed and qualified. The initial officers of the
Surviving Corporation at the Effective Time shall be as determined by Parent, each to hold office
in accordance with the by-laws of the Surviving Corporation until his successor is duly elected or
appointed and qualified.

     Section 1.7 Tax Consequences. The parties acknowledge and agree that the Merger shall be considered to constitute a taxable
sale of the Target Common Stock to Parent by the Target Shareholders.

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Article II.

Merger Consideration and Escrow

     Section 2.1 Conversion of Securities; Merger.

     Section 2.1.1 Conversion and Cancellation Generally. Subject to Section
2.2, at the Effective Time, each share of Target Common Stock outstanding immediately
prior to the Effective Time shall no longer be outstanding, shall automatically be canceled
and retired and shall cease to exist, and each Target Shareholder’s certificates previously
representing all such shares held by the Target Shareholder shall thereafter represent
solely the right to receive, in the aggregate: (x) $50,000 per share (the “Cash Merger
Consideration”), and (y) 75,000 shares of TIGroup Common Stock (the “Stock Merger
Consideration and, together with the Cash Merger Consideration, the “Merger
Consideration”) as total consideration for the shares. Certificates previously
representing shares of Target Common Stock shall be exchanged for certificates representing
whole shares of TIGroup Common Stock issued in consideration therefor upon the surrender of
such certificates in accordance with the provisions of Section 2.3, without
interest. No fractional shares of TIGroup Common Stock shall be issued in connection with
the Merger, and in lieu thereof, any fractional shares of Stock Merger Consideration shall
be redeemed for an amount of cash equal to the amount of Cash Merger Consideration
applicable to such fractional share interest.

     Section 2.1.2 Cancellation of Certain Shares. Each share of Target Common Stock
held by Parent or Merger Sub, or held in the treasury of Target, immediately prior to the
Effective Time shall automatically be canceled and extinguished at the Effective Time
without any conversion thereof, and no payment shall be made with respect thereto.

     Section 2.1.3 Merger Sub. Each share of common stock, par value $.01 per
share, of Merger Sub issued and outstanding immediately prior to the Effective Time shall
automatically be converted into and be exchanged for one newly and validly issued, fully
paid and nonassessable share of common stock, par value $.01 per share, of the Surviving
Corporation.

     Section 2.2 Payment of Certain Merger Consideration; Escrow of Certain Merger
Consideration.

     Section 2.2.1 Payment of Merger Consideration. At the Effective Time, each
Target Shareholder shall be entitled to receive at the Closing (i) thirty percent (30%) of
the aggregate Cash Merger Consideration due and payable to such Target Shareholder under the
terms of this Agreement, and (ii) twenty-five percent (25%) of the aggregate number of shares of Stock Merger Consideration that such Target Shareholder is entitled to receive
under the terms of this Agreement. Merger Sub shall be required to (x) pay the remaining
seventy percent (70%) of the aggregate Cash Merger Consideration (the “Total Deferred
Cash Merger Consideration”) to the Target Shareholders and (y) transfer the shares of Escrowed TIGroup Common Stock to the Target Shareholders, in each case, as
provided in Section 2.2.3 and in accordance with the terms of the Escrow Agreement;
provided, however, that, at the Closing, Merger Sub shall deposit the Escrowed Cash

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Amount (as defined below) and the Escrowed TIGroup Common Stock (as defined below) with the
Escrow Agent in accordance with the provisions set forth in Section 2.2.2.

     Section 2.2.2 Escrow Fund. Pursuant to an escrow agreement entered into on the
Closing Date by and among Parent, the Surviving Corporation, the Target Shareholders and an
escrow agent to be mutually agreed upon by the parties (in such capacity, the “Escrow
Agent”) in substantially the form attached hereto as Exhibit C (as amended,
restated or otherwise modified from time to time, the “Escrow Agreement”), Parent,
the Surviving Corporation and the Target Shareholders shall appoint the Escrow Agent to hold
and disburse the Escrow Fund (as defined below) as provided under Section 2.2.3 and
the terms of the Escrow Agreement. At the Closing, Merger Sub shall deposit with the Escrow
Agent (i) an amount of aggregate Cash Merger Consideration equal to $490,000 (the
“Initial Escrowed Cash Amount”) and (ii) 787,500 shares of Stock Merger
Consideration (the “Escrowed TIGroup Common Stock” and, together with the Initial
Escrowed Cash Amount, the “Escrow Fund”).

     Section 2.2.3 Distribution of the Escrow Fund. Subject to the terms of the
Escrow Agreement: (i) ninety (90) days after the Closing Date and at the end of each of the
next eleven (11) ninety (90) day periods thereafter, the Escrow Agent shall distribute to
each Eligible Target Shareholder one twelfth (1/12) of the Total Deferred Cash Merger
Consideration that such Eligible Target Shareholder is entitled to receive under the terms
of this Agreement, and (ii) on each anniversary of the Closing Date (up to, and including,
the fifth (5th) anniversary of the Closing Date), the Escrow Agent shall
distribute to each Eligible Target Shareholder, fifteen percent (15%) of the number of
            shares of Escrowed TIGroup Common Stock that such Eligible Target Shareholder is entitled to
receive under the terms of this Agreement; provided, however, that (x) the Escrow
Fund shall serve as the first source (but shall not be the exclusive source) of funds for
any indemnity obligations of the Target Shareholders to any Buyer Indemnified Party (as
defined in Section 8.1.1) under Section 5.9 and/or Article VIII and
(y) any amounts remaining in the Escrow Fund after the fifth (5th) anniversary of
the Closing Date shall be disbursed in accordance with the terms of the Escrow Agreement.
Each share of Escrowed TIGroup Common Stock distributed to an Eligible Target Shareholder
from the Escrow Fund will be subject to the terms of Section 3.32.

     Section 2.3 Stock Transfer Books. At the Effective Time, the stock transfer books of
Target shall be closed, and thereafter there shall be no further registration of transfers of
shares of Target Common Stock theretofore outstanding on the records of Target. From and after the
Effective Time, the holders of certificates representing Target Common Stock shall cease to have
any rights with respect to such shares of Target Common Stock except as otherwise provided herein.

     Section 2.4 Further Actions. The officers, directors and/or managers, as the case may be, of Parent, Merger Sub and Target
are fully authorized in the name of their respective corporations or limited liability companies,
as the case may be, to take, and will take, all such further action as may be necessary, advisable
or appropriate at any time before or after the Effective Time to carry out the purposes and intent
of this Agreement and to vest the Surviving

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Corporation with full right, title and possession to
all assets, properties, rights, privileges, powers and franchises of Merger Sub and Target.

Article III.

Representations and Warranties of Target and the Target Shareholders

     As a material inducement to Parent to enter into this Agreement and consummate the
transactions contemplated hereby, Target and the Target Shareholders, jointly and severally
represent and warrant to Parent that the statements contained in this Article III are true
and correct as of the Effective Date and the Closing Date. The disclosures in any particular
Schedule referenced herein shall qualify as disclosures with respect to all other Schedules
referenced herein only where specifically cross-referenced or, in the absence of a specific
cross-reference, only where the disclosure made in any particular Schedule referenced herein is
sufficient on its face, without reference to attachments or underlying documentation (excluding
appendices to the Schedules, which shall be deemed part of the Schedules), to alert Parent to the
relevance of the disclosure to such other Schedules referenced herein. TIGroup shall be a
third-party beneficiary of the representations and warranties made by Target and Target Shareholder
in Sections 3.29 — 3.32.

     Section 3.1 Organization. Target is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Oklahoma, and has the power to own its assets and
conduct its business as presently conducted and contemplated in this Agreement. Target is not
qualified to do business in any foreign jurisdiction, and no such qualification is now required or
will be required to own its assets or conduct its business.

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

     Section 3.3 Target Records. Target has delivered to Parent true, correct and complete
copies of Target’s corporate records, including, without limitation, minutes or consents reflecting
all actions taken by the officers or directors of Target from the date of Target’s organization
through the Effective Date.

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     Section 3.4 Capitalization.

     Section 3.4.1 Set forth in Schedule 3.4.1 is a complete and accurate list of
all of the equity interests in Target.

     Section 3.4.2 All of the shares of Target Common Stock have been duly authorized and
validly issued in compliance with all applicable Laws (as defined in Section 3.15)
and the provisions of the articles of incorporation and bylaws of Target, and are fully paid
and nonassessable and free of preemptive rights.

     Section 3.4.3 There are no outstanding options, warrants, convertible or exchangeable
securities or other rights, agreements, arrangements or commitments obligating Target,
directly or indirectly, to issue, sell, purchase, acquire or otherwise transfer or deliver
any equity interest in Target, or any agreement, document, instrument or obligation
convertible or exchangeable therefor. There are no agreements, arrangements or commitments
of any character (contingent or otherwise) pursuant to which any Person is or may be
entitled to receive any payment based on the revenues or earnings, or calculated in
accordance therewith, of Target. There are no voting trusts, proxies or other agreements or
understandings to which Target or a Target Shareholder is a party or by which Target or any
Target Shareholder is bound with respect to the voting of any equity interest in Target.
None of the shares of the Target Common Stock were issued in violation of the 1933 Act or
any applicable state securities laws.

     Section 3.5 Subsidiaries. Except as set forth in Schedule 3.5, Target does not
have any subsidiaries or own any equity or debt interest or any form of proprietary interest in any
Person, or any obligation, right or option to acquire any such interest.

     Section 3.6 Title to Assets.

     Section 3.6.1 Set forth in Schedule 3.6.1 is a complete and accurate list
(including the street address, where applicable), of Target’s assets, including but not
limited to (i) all real property owned by Target; (ii) all real property leased by Target;
(iii) each vehicle owned or leased by Target; and (iv) each other tangible asset owned or
leased by Target and having a book value in excess of $5,000.

     Section 3.6.2 Except as shown in Schedule 3.6.2, no tangible or intangible
asset of Target is owned or leased by a Target Shareholder, and no other Person, including
any Affiliate of Target, has any right, title or interest in any asset or equity interest of
Target.

     Section 3.6.3 Target has good and marketable title to all of the assets it purports to
own, including those set forth in Schedules 3.6.1, and owns all of such assets free
and clear of any Liens, other than the liens set forth in Schedule 3.6.3. Target
holds a valid leasehold interest in or otherwise has a valid and enforceable right to use
all of the assets that it does not own.

     Section 3.6.4 The real property owned or leased by Target (the “Real Property”)
is zoned for a classification that permits the continued use of the Real Property

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in the
manner currently used by Target. Improvements included in the assets of Target were
constructed, and remain, in compliance with all applicable covenants, conditions,
restrictions and material Laws affecting the Real Property. Final certificates of occupancy
have been issued for the improvements on the Real Property permitting the existing use of
such improvements. There are no actions pending or threatened that would alter the current
zoning classification of the Real Property or alter any applicable covenants, conditions,
restrictions or material Laws that would adversely affect the use of the Real Property.
Neither Target nor any Target Shareholder has received notice from any insurance company or
Governmental Authority of any defects or inadequacies in the Real Property or the
improvements thereon that would adversely affect the insurability or usability of the Real
Property or such improvements or prevent the issuance of new insurance policies thereon at
rates not materially higher than present rates. No fact or condition exists that would
result in the discontinuation of necessary utilities or services to the Real Property or the
termination of current access to and from the Real Property. Neither Target nor any Target
Shareholder is a “foreign person” as that term is defined in § 1445 of the Internal Revenue
Code of 1986, as amended (the “Code”), and applicable regulations.

     Section 3.7 Condition and Sufficiency of Assets. The assets of Target, including any
assets held under leases or licenses: (i) are in good condition and repair, ordinary wear and tear
excepted; (ii) have been properly and regularly maintained in all material respects; (iii) conform
in all material respects to all applicable Laws relating to their construction, use, operation and
maintenance; and (iv) being operated in accordance with the terms of the lease or license for such
asset.

     Section 3.8 No Violation. Neither the execution or delivery of this Agreement nor the
consummation of the transactions contemplated thereby, will conflict with or result in the breach
of any term or provision of, require any consent, approval, ratification, waiver, notification,
license, permit, order or other authorization (including any Governmental Authorization
(collectively, “Consents”) or violate or constitute a default under (or an event that with
notice or the lapse of time or both would constitute a breach or default), or result in the
creation of any Lien on the Target Common Stock or the assets of Target pursuant to, or relieve any
third party of any obligation to Target or give any third party the right to terminate or
accelerate any obligation under, any charter provision, bylaw, Material Contract (as defined in
Section 3.23.1), License (as defined in Section 3.16) or Law to which Target is a
party or by which any assets of Target is in any way bound or obligated.

     Section 3.9 Governmental Authorizations. To knowledge of Target and Target Shareholders,
after a reasonably diligent inquiry and except as disclosed on Schedule 3.9, no Consent,
franchise, grant, identification or registration number, easement, variance, exemption or
certificate issued, granted, given or otherwise made available by or under the authority of, or
registration, qualification, designation, declaration or filing with, any Governmental Authority,
or required pursuant to any applicable Laws (each a “Governmental Authorization”), is
required on the part of Target in connection with the sale and purchase of the Target Common Stock,
or the Merger or any of the other transactions contemplated by this Agreement.

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     Section 3.10 Financial Statements. Attached as Schedule 3.10 are true and complete
copies of (a) the income statement, balance sheet and statement of cash flows of Target (the
“Financial Statements”) as of December 31, 2007 (the “Financial Statements Date”).
The Financial Statements presents fairly the financial condition of Target at the Financial
Statements Date and has been prepared in accordance with generally accepted accounting principles,
consistently applied (“GAAP”) except for the absence of footnote disclosure and for changes
resulting from normal year-end adjustments for recurring accruals (which will not be material
individually or in the aggregate). The Financial Statements do not contain any items of a special
or nonrecurring nature, except as expressly stated therein. The Financial Statements have been
prepared from the books and records of Target, which accurately and fairly reflect the transactions
of, acquisitions and dispositions of assets by, and incurrence of Liabilities (as defined in
Section 3.11.1) by Target.

     Section 3.11 Absence of Undisclosed Liabilities.

     Section 3.11.1 Target has no direct or indirect debts, obligations or liabilities of
any nature, whether absolute, accrued, contingent, liquidated or otherwise, and whether due
or to become due, asserted or unasserted (collectively, “Liabilities”) except for:
(i) Liabilities reflected on the Financial Statements, including any reserves (and, for this
purpose, a Liability shall be deemed to be included in a reserve if it is the type of
Liability for which such reserve was established, regardless of whether such Liability is
actually included in the reserve, provided that the aggregate amount of all Liabilities
actually included or deemed to be included in the reserve do not exceed the aggregate amount
of the reserve reflected on the Financial Statements, and provided further that if the
aggregate amount of all such Liabilities actually included or deemed to be included in the
reserve exceeds the aggregate amount of such reserve, this representation and warranty will
be deemed breached only to the extent of such excess); (ii) current Liabilities incurred in
the ordinary course of business and consistent with past practices after the Financial
Statements Date; (iii) Liabilities incurred in the ordinary course of business and
consistent with past practices under Material Contracts and under other agreements entered
into by Target or the Hospitals in the ordinary course of business that are not included
within the definition of Material Contracts set forth in Section 3.23, which
Liabilities are not required by GAAP to be reflected in the Financial Statements; and (iv)
Liabilities disclosed in the Schedules to this Agreement.

     Section 3.11.2 Set forth in Schedule 3.11.2 is a complete and accurate list of
the principal balance of all long-term and short-term Liabilities of Target (other than
trade accounts payable incurred in the ordinary course of business and consistent with past
practices as of the Financial Statements Date, as well as the name of the lender or creditor
with respect to each such Liability.

     Section 3.11.3 Set forth in Schedule 3.11.3 is a complete and accurate list of
the balance of all Liabilities of Target to its current and former shareholders, which sets
forth which Liabilities are to current shareholders and which liabilities are to former
shareholders.

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     Section 3.11.4 For purposes of this Agreement, “ordinary course” Liabilities include
only liabilities and obligations incurred in the normal course of business of Target, as
applicable, consistent with past practices and amounts, and do not include, without
limitation, any Liabilities under an agreement or otherwise that result from any breach or
default (or event that with notice or lapse of time would constitute a breach or default),
tort, infringement or violation of Law.

     Section 3.12 Absence of Certain Changes. Since the Financial Statements Date, there has
not been:

     (a) any Target Material Adverse Effect;

     (b) any declaration, setting aside or payment of any dividends or distributions
in respect of any equity interests in Target or any redemption, purchase or other
acquisition by Target of any of its equity interests, except as contemplated by this
Agreement;

     (c) any payment or transfer of assets (including without limitation any
distribution or any repayment of indebtedness) to or for the benefit of any
equityholder of Target, other than compensation and expense reimbursements paid in
the ordinary course of business and consistent with past practice;

     (d) any revaluation by Target of any of its assets, including the writing down
or off of notes or accounts receivable and the writing down of the value of
inventory, other than in the ordinary course of business and consistent with past
practice;

     (e) any entry by Target into any commitment or transaction material to such
Hospital or to Target including, without limitation, incurring or agreeing to incur
capital expenditures or to make payments to customers, patients or others (other
than pursuant to agreements listed in Schedule 3.23.1) in excess of $5,000,
individually or in the aggregate;

     (f) any increase in indebtedness for borrowed money, or any issuance or sale of
any debt securities, or any assumption, guarantee or endorsement of any Liability of
any other Person, or any loan or advance to any other Person;

     (g) any breach or default (or event that with notice or lapse of time would
constitute a breach or default), termination or threatened termination under any
Material Contract binding on Target or to which any asset of Target is subject;

     (h) any change by Target in its accounting methods, principles or practices;

     (i) any increase in the benefits under, or the establishment or amendment of,
any bonus, insurance, severance, deferred compensation, pension, retirement, profit
sharing or other employee benefit plan, or any increase in the

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compensation payable or to become payable to Target or any officers or
employees of Target, except for annual merit increases in salaries or wages in the
ordinary course of business and consistent with past practice;

     (j) the termination of employment (whether voluntary or involuntary) of any
officer or key employee of Target or the termination of employment (whether
voluntary of involuntary) of employees of Target in excess of historical attrition
in personnel;

     (k) any theft, condemnation or eminent domain proceeding or any damage,
destruction or casualty loss affecting any asset of Target, whether or not covered
by insurance;

     (l) any sale, assignment or transfer of any asset of Target, except sales of
inventory or obsolete equipment in the ordinary course of business and consistent
with past practice;

     (m) any action other than in the ordinary course of business and consistent
with past practice, to pay, discharge, settle or satisfy any claim or Liability;

     (n) any settlement or compromise of any pending or threatened suit, action, or
claim relevant to the transactions contemplated by this Agreement;

     (o) any issuance, sale or disposition, or agreement to issue, sell or dispose,
of any equity interest in Target, or any instrument or other agreement convertible
or exchangeable for any equity interest in Target;

     (p) any authorization, recommendation, proposal or announcement of an intention
to adopt a plan of complete or partial liquidation or dissolution of Target;

     (q) any acquisition, or investment in the equity or debt securities of any
Person (including in any joint venture or similar arrangement) by Target;

     (r) any other transaction, agreement or commitment entered into or affecting
Target, except in the ordinary course of business and consistent with past practice;
or

     (s) any agreement or understanding to do or resulting in any of the foregoing.

     Section 3.13 Taxes.

     Section 3.13.1 Target has filed or caused to be filed on a timely basis all Tax returns
that are or were required to be filed. Target has timely paid all Taxes that have become
due and payable as Taxes imposed on them, pursuant to such Tax returns or otherwise, or
pursuant to any assessment received by them, except such Taxes, if any, as

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are being contested in good faith and as to which adequate reserves have been provided
in the Financial Statements.

     Section 3.13.2 Target has not requested or been granted an extension of time for filing
any Tax return that has not yet been filed.

     Section 3.13.3 The charges, accruals and reserves with respect to Taxes on the books of
Target are accurate. There exists no proposed tax assessment against Target except as
disclosed in the Financial Statements. All Taxes that Target is or was required to withhold
or collect have been duly withheld or collected and, to the extent required, have been paid
to the proper Governmental Authority.

     Section 3.13.4 All Tax returns filed by Target are true, correct, and complete in all
material respects.

     Section 3.13.5 There are no outstanding agreements or waivers extending the statutory
period of limitation applicable to any claim for, or the period for the collection or
assessment of, Taxes due from or with respect to Target for any taxable period.

     Section 3.13.6 No audit, examination or similar proceeding is pending or threatened
with respect to Target or any Tax return filed by Target.

     Section 3.13.7 “Tax” or “Taxes” means any and all taxes, charges, fees,
levies, assessments, duties or other amounts payable to any federal, state, local or foreign
taxing authority or agency, including, without limitation: (i) income, franchise, profits,
gross receipts, minimum, alternative minimum, estimated, ad valorem, value added, sales,
use, service, real or personal property, capital stock, license, payroll, withholding,
disability, employment, social security, workers compensation, unemployment compensation,
utility, severance, excise, stamp, windfall profits, transfer and gains taxes; (ii) customs,
duties, imposts, charges, levies or other similar assessments of any kind; and (iii)
interest, penalties and additions to tax imposed with respect thereto.

     Section 3.14 Litigation. To knowledge of Target and Target Shareholders, after a
reasonably diligent inquiry and except as set forth in Schedule 3.14, there are currently
no pending or threatened lawsuits, administrative proceedings, reviews or formal or informal
complaints or investigations (collectively “Litigation”), in each case by any Person
against or relating to Target or any Target Shareholder, or any equityholder, officer, employee or
agent (in their capacities as such) of Target or to which any of the assets of Target is subject.
Target is not subject to or bound by any currently existing judgment, order, writ, injunction,
decree, ruling or charge. Target has no reason to believe that any such Litigation may be brought
or threatened against Target. Target is not a party to or subject to the provisions of any
judgment, order, writ, injunction, decree, ruling or charge of any court or Governmental Authority
prohibiting the execution, delivery or performance of this Agreement or the consummation of the
transactions contemplated hereby. Except as set forth in Schedule 3.14, there are no
malpractice claims or Liabilities against Target or any of the Target Shareholders, and no facts
exist that might be the basis for a malpractice claim or Liability against Target or any of the
Target Shareholders.

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     Section 3.15 Compliance with Laws. Target and each of the Target Shareholders is currently
complying with and has at all times complied with each applicable federal, state, or local
constitution, statute, law, code, ordinance, decree, order, rule or regulation of any Governmental
Authority and all orders and decrees of courts, tribunals and arbitrators (collectively,
“Laws”), in all material respects.

     Section 3.16 Licenses. Target owns, possesses or holds from each appropriate Governmental
Authority all licenses, permits, authorizations, approvals, quality certifications, franchises or
rights (collectively, “Licenses”) issued by any Governmental Authority necessary to operate
its business. Set forth in Schedule 3.16 is a complete and accurate list of all such
Licenses held by Target. No loss or expiration of any such License is pending or threatened or
reasonably foreseeable, other than expiration in accordance with the terms thereof of Licenses that
may be renewed in the ordinary course of business without lapsing. Each such License is in good
standing as of the Closing and not subject to meritorious challenge.

     Section 3.17 Payors. Set forth in Schedule 3.17 is a complete and accurate list of
each third-party payor or provider that is doing or has done business with Target and accounted for
10% or more of the revenues for Target for either of the years ended December 31, 2006 or December
31, 2007 (collectively, the “Payors”). The Merger contemplated hereby will have no
material effect on Target’s relationship with Payors, or the revenues to which the Surviving
Corporation will be entitled under the Material Contracts with Payors. None of the Payors has
threatened, or notified Target or any Target Shareholder of any intention, to terminate or
materially alter its relationship with Target, or materially alter the amount of the business that
such Payor is presently doing with Target, and neither Target nor any Target Shareholder has
information, or is aware of any facts, indicating that any Payor intends to do any of the
foregoing, either as a result of the transactions contemplated by this Agreement or otherwise.

     Section 3.18 Medical Staff Matters. There are no pending or threatened disputes between
(i) Target and any Target Shareholder, applicant, staff member or health professional affiliate or
(between any Target Shareholder and any health care facility, and all appeal periods in respect of
any medical staff member or applicant against whom an adverse action has been taken have expired.

     Section 3.19 Health Care Legal Matters.

     Section 3.19.1 Target has complied, and is in compliance, with all applicable Laws
regulating the financing, reimbursement, payment, acquisition, construction, operation,
maintenance or management of a health care practice, facility, provider or payor, including,
without limitation: (i) 42 U.S.C. §§ 1320a-7 7a and 7b, which are commonly referred to as
the “Federal Anti-Kickback Statute”; (ii) 42 U.S.C. § 1395nn, which is commonly referred to
as the “Stark Law”; (iii) 31 U.S.C §§ 3729-3733, which is commonly referred to as the
“Federal False Claims Act”; (iv) Titles XVIII and XIX of the Social Security Act,
implementing regulations and program manuals; and (v) 42 U.S.C. §§ 1320d-1320d-8 and 42
C.F.R. §§ 160, 162 and 164, which is commonly referred to as “HIPAA” (the foregoing
hereinafter collectively referred to as “Health Care Laws”). Target has maintained
all records required to be maintained and made all required filings in connection with the
Medicare and Medicaid programs established

16

 

under Titles XVIII and XIX of the Social Security Act, and such other similar federal,
state or local reimbursement or governmental programs, managed care plans and any other
private health care insurance programs and employee assistance programs, as well as any
future similar programs, for which Target is eligible (the foregoing hereinafter referred to
collectively as the “Payor Source Programs”) as required by applicable Health Care
Laws.

     Section 3.19.2 Without limiting the foregoing, neither Target nor any Target
Shareholder has engaged in any activities that are prohibited under any Health Care Laws or
any other federal or state statutes related to illegal remuneration or false or fraudulent
claims, the regulations promulgated pursuant to such statutes, or any related state or local
statutes or regulations, including, without limitation, the following:

     (a) knowingly and willfully making or causing to be made any false statement or
representation of material fact in any application for any benefit or payment;

     (b) knowingly and willfully making or causing to be made any false statement or
representation of a material fact for use in determining rights to any benefit or
payment;

     (c) failing to disclose knowledge by a claimant of the occurrence of any event
affecting the initial or continued right to any benefit or payment on its own behalf
or on behalf of another, with intent to fraudulently secure such benefit or payment;
or

     (d) knowingly and willfully soliciting or receiving any remuneration (including
any kickback, bribe or rebate), directly or indirectly, overtly or covertly, in cash
or in kind or offering to pay or receive such remuneration in return for (A)
referring an individual for the furnishing or arranging for the furnishing of any
item or service for which payment may be made in whole or in part by any Payor
Source Programs; or (B) purchasing, leasing, or ordering or arranging for or
recommending the purchasing, leasing or ordering of any good, facility, service or
item for which payment may be made in whole or in part by a Payor Source Program.

     Section 3.19.3 Target is certified for participation and reimbursement and qualified as
participating providers under the Payor Source Programs set forth in Schedule
3.19.3.1 Target has current provider numbers and provider agreements for such Payor
Source Programs as are set forth in Schedule 3.19.3.1. Except as set forth on
Schedule 3.19.3.2, there are no pending appeals, overpayment determinations,
challenges, audits, litigation, or notices of intent to open Payor Source Programs’ claim
determinations or other reports required to be filed by Target, except for such appeals of
individual claim denials that occur in the ordinary course of business. Target has not
received any notice indicating that Target’s qualification as a participating provider may
be terminated or withdrawn nor do any of them have any reason to believe that such
qualification may be terminated or withdrawn. Target has timely filed all claims or other

17

 

reports required to be filed with respect to the purchase of products or services by
third-party payors (including Payor Source Programs), and all such claims or reports are
complete and accurate in all respects. Target has no Liability to any third-party payor
with respect thereto, except for Liabilities incurred in the ordinary course of business.

     Section 3.19.4 Neither Target nor any Target Shareholder or officer or employee of
Target, or any other party to any contract with Target:

     (a) has been convicted of or charged with any violations of law related to
Medicare, Medicaid, any other Federal Health Care Program (as defined in 42 U.S.C. §
1320a-7b(f)), or any other Payor Source Program;

     (b) has been convicted of, charged with or investigated for any violation of
law related to fraud, theft, embezzlement, breach of fiduciary responsibility,
financial misconduct, obstruction of an investigation or controlled substances;

     (c) is excluded, suspended or debarred from participation, or is otherwise
ineligible to participate, in any Payor Source Program or has committed any
violation of law which is reasonably expected to serve as the basis for any such
exclusion, suspension, debarment or other ineligibility; or

     (d) has violated or is presently in violation of any Health Care Laws.

     Section 3.20 Environmental Matters.

     Section 3.20.1 Except as set forth in Schedule 3.20.1, (i) the properties,
operations and activities of Target are and at all times have been in compliance with all
applicable Environmental Laws in all respects; including without limitation by having all
Licenses required to be obtained or filed by Target under any Environmental Law in
connection with any aspect of the operation of Target, and Target is in compliance with the
terms and conditions of all such Licenses; (ii) none of the Real Property contains any
Hazardous Material in amounts exceeding the levels permitted by applicable Environmental
Laws as a result of Target’s operations or activities or for any other reason; (iii) during
the past five years, Target has not received any notices, demand letters or requests for
information from any Governmental Authority or other Person indicating that Target may be in
violation of, or liable under, any Environmental Law, or relating to any of its current or
former assets; (iv) except with respect to matters that have been fully resolved with no
continuing Liability to Target, no reports have been filed, or are required to be filed, by
(or relating to) Target concerning any release of any Hazardous Material or the threatened
or actual violation of any Environmental Law; (v) no Person or property has been exposed to
Hazardous Material, and no Hazardous Material has been disposed of, released or transported,
in violation of any applicable Environmental Law to or from any Real Property or as a result
of any activity of Target; (vi) there have been no environmental investigations, studies,
audits, tests, reviews or other analyses regarding compliance or noncompliance with any
Environmental Law conducted by or on behalf of, or which are in the possession of Target
relating to the activities of Target; (vii) there

18

 

are no underground storage tanks on, in or under any of the Real Property, and no
underground storage tanks have been closed or removed from any of the Real Property; (viii)
there is no asbestos present in any of the Real Property in violation of any Environmental
Law, (ix) neither Target nor any of its assets is subject to any Liabilities relating to any
suit, settlement, Law, judgment or claim asserted or arising under any Environmental Law;
(x) Target has satisfied and is currently in compliance with all financial responsibility
requirements applicable to its operations and imposed by any Governmental Authority under
any Environmental Laws; and (xi) there are no environmental conditions either (A) existing
on Target’s property or (B) resulting from a Target’s operations or activities, whether past
or present, that would give rise to any on-site or off-site remediation obligations under
any Environmental Laws.

     Section 3.20.2 As used herein, “Environmental Law” means any applicable Laws,
License or agreement with any Governmental Authority relating in any manner to Hazardous
Materials, pollution, contamination, or the protection of the environment enacted or in
effect in any and all jurisdictions in which Target owns property or conducts business.

     Section 3.20.3 As used herein, “Hazardous Material” means any substance whether
solid, liquid or gaseous that: (i) is listed, defined, classified or regulated as a
“Hazardous Material,” “hazardous material,” hazardous waste,” extremely hazardous waste,”
toxic substance,” “sludge,” “pollutant,” “contaminant,” or is otherwise listed, defined
classified or regulated in similar fashion, such as dangerous, hazardous, or toxic, in or
pursuant to any Environmental Law; or (ii) is or contains asbestos, radon, any
polychlorinated biphenyl, urea formaldehyde foam insulation, explosive or radioactive
material, crude oil or any fraction thereof, or motor fuel or other refined or process
petroleum hydrocarbons.

     Section 3.21 Non Shareholder Employee Matters. Set forth in Schedule 3.21 is a
complete and accurate list of all current non shareholder employees of Target, including date of
employment, current title and compensation, date and amount of last increase in compensation, and
the terms of employment agreement with such employee. Except as otherwise set forth in
Schedule 3.21, there are no written or oral employment agreements between Target and any of
its non shareholder employees. All of Target’s non shareholder employees are employees at will and
may be terminated by Target, without prior notice, for any reason or for no reason. In relation to
their employees, both present and former, Target has: (a) complied with all obligations imposed on
it by all Laws relevant to the relations between it and its employees or any disclosed trade union;
(b) maintained adequate and suitable records regarding the service of each of its employees; and
(c) withheld all income tax required by the Code or by applicable state and local Laws, and
payments due for social security contributions (including the employer’s contributions) and any
other amount required to be withheld under any federal, state or local Laws, from salaries, wages
and bonuses paid, complied with all withholding requirements and maintained proper records in
respect of the foregoing. Target has no collective bargaining, union or labor agreements, contracts
or other arrangements with any group of employees, labor union or employee representative and there
is no organization effort currently being made or threatened by or on behalf of any labor union
with respect to employees of Target.

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Target has not experienced, and, there is no basis for, any strike, labor trouble, work stoppage,
slow down or other interference with or impairment of the operations.

     Section 3.22 Employee Benefit Plans.

     Section 3.22.1 Except as set forth in Schedule 3.22.1, Target has no “Employee
Benefit Plans.” The term “Employee Benefit Plans” means (a) any “employee benefit plan” or
“plan” within the meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and (b) all plans or policies providing for “fringe
benefits” (including but not limited to vacation, paid holidays, personal leave, employee
discounts, educational benefits or similar programs), and each other bonus, incentive
compensation, deferred compensation, profit sharing, stock, severance, retirement, health,
life, disability, group insurance, employment, stock option, stock purchase, stock
appreciation right, performance share, supplemental unemployment, layoff, consulting, or any
other similar plan, agreement, policy or understanding (whether written or oral, qualified
or nonqualified, currently effective or terminated), and any trust, escrow or other
agreement related thereto, which (i) is, or has been within the past five years,
established, maintained or contributed to by Target or any other corporation or trade or
business under common control with Target (an “ERISA Affiliate”) as determined under
Section 414(b), (c), (m) or (o) of the Code, or with respect to which Target has or may have
any Liability; or (ii) provides benefits, or describes policies or procedures of Target or
any of its Affiliates applicable, to any present or former officer, employee or dependent
thereof, regardless of whether funded. The term “Employee Benefit Plans” also includes any
written or oral representations made to any present or former officer or employee of Target
by Target or its Affiliates promising or guaranteeing any employer payment or funding for
the continuation of medical, dental, life or disability coverage for any period of time
beyond the end of the current plan year (except to the extent of coverage required under
Code Section 4980B) or a similar provision of state law.

     Section 3.22.2 Target is not is not party to any “multiple employer plan” or
“multi-employer plan” (as described or defined in ERISA or the Code).

     Section 3.22.3 Target is not, nor does any ERISA Affiliate have any formal plan or
commitment, whether legally binding or not, to create any Employee Benefit Plan that would
affect any present or former officer or employee of Target, or any dependent or beneficiary
thereof.

     Section 3.22.4 Except as set forth in Schedule 3.22.4, there is no Employee
Benefit Plan that is maintained or contributed to by Target, or any ERISA Affiliate with
respect to which Target has or may have any Liability that is or was subject to Part 3 of
Title I of ERISA or Title IV of ERISA.

     Section 3.22.5 Parent will not assume or take on any Liability relating to any Employee
Benefit Plans of Target.

20

 

     Section 3.22.6 Target does not provide, and is not obligated to provide, benefits,
including without limitation death, health, medical, or hospitalization benefits (whether or
not insured), with respect to current or former officers or employees of Target, or their
dependents or beneficiaries, beyond their retirement or other termination of employment
other than (i) coverage mandated by applicable Law; (ii) death benefits or retirement
benefits under any “employee pension benefit plan,” as that term is defined in Section 3(2)
of ERISA; or (iii) deferred compensation benefits accrued as liabilities on the books of
Target, or (iv) as set forth in Schedule 3.11.3.

     Section 3.22.7 No Liability under Title IV of ERISA or Section 412 of the Code has been
incurred (directly or indirectly) by Target or any ERISA Affiliate that has not been
satisfied in full.

     Section 3.22.8 Neither Target, nor any ERISA Affiliate maintains or has ever
participated in a multiple employer welfare arrangement as described in Section 3(40)(A) of
ERISA for which Target may become liable under ERISA.

     Section 3.22.9 No Lien has been filed by any Person and no Lien exists by operation of
Law or otherwise on the assets of Target relating to, or as a result of, the operation or
maintenance of any Employee Benefit Plan, and neither Target nor any Shareholder has any
knowledge of the existence of facts or circumstances that would result in the imposition of
such Lien.

     Section 3.22.10 Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby will (i) result in any payment becoming
due to any officer or employee of Target; or (ii) result, separately or in the aggregate, in
an “excess parachute payment” within the meaning of Section 280G of the Code.

     Section 3.23 Material Contracts.

     Section 3.23.1 Schedule 3.23.1 sets forth a complete and accurate list of each
agreement (whether written or oral and including all amendments thereto) by which Target or
any of its assets are bound (collectively, the “Material Contracts”), including
without limitation the following: (i) all payor and provider contracts with any of the
Payors; (ii) management or similar or related agreements; (iii) agreements pursuant to which
Target sells or distributes any treatment, services or products; (iv) real property leases;
(v) capital or operating leases or conditional sales agreements relating to vehicles,
equipment or other assets of Target; (vi) agreements evidencing, securing or otherwise
relating to any indebtedness for borrowed money for which Target is liable; (vii) agreements
pursuant to which Target is entitled or obligated to acquire any assets from a third Person;
(viii) insurance policies; (ix) employment, consulting, noncompetition, separation,
collective bargaining, union or labor agreements or arrangements; and (x) agreements with or
for the benefit of any equityholder, manager, director, officer or employee of Target or any
Affiliate or immediate family member thereof.

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     Section 3.23.2 Target has delivered to Parent a copy of each written Material Contract
and a detailed written summary of each oral Material Contract and (i) each Material Contract
is valid, binding and in full force and effect and enforceable in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency,
fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights
generally and subject to general principles of equity (regardless of whether enforcement is
sought in a proceeding at law or in equity); (ii) Target has performed all of its
obligations that have become due under any Material Contract to which it is a party, and
there exists no breach or default (or event that with notice or lapse of time would
constitute a breach or default) on the part of Target or any other Person under any Material
Contract; (iii) there has been no termination or notice of default or any threatened
termination under any Material Contract; and (iv) no party to a Material Contract intends to
alter its relationship with Target as a result of or in connection with the acquisition
contemplated by this Agreement.

     Section 3.23.3 Except as set forth in Schedule 3.23.3, none of the Material
Contracts will require consent from any counterparty or will result in a breach,
termination, termination right or change in any right or obligation thereunder as a result
of the consummation of the transactions contemplated by this Agreement. With respect to
Material Contracts identified in Schedule 3.23.3, Parent will have the right to
participate in any communication with any counterparties in connection with obtaining any
required consent or approval.

     Section 3.23.4 None of the Material Contracts or any other agreements, understandings
or proposed transactions to which Target or any Target Shareholder is a party will cause a
Target Material Adverse Effect, or have any effect on Target’s or any Target Shareholder’s
ability to perform its obligations under this Agreement.

     Section 3.24 Intellectual Property. Except as set forth on Schedule 3.24, Target
does not own, and has no license or use rights with respect to, any registered and unregistered
trademarks, service marks or trade names, or registered copyrights or patents, or applications for
or licenses (to or from Target) with respect to any of the foregoing, or any computer software or
software licenses (other than commercial “shrink-wrap” software and software licenses). Target has
rights to use any software utilized by it or its Affiliates pursuant to valid existing licenses.

     Section 3.25 Competing Interests. Except as set forth as set forth in Schedule
3.25, neither Target, nor, any equityholder, director, general partner, officer, employee or
agent of Target, any Affiliate of Target: (a) owns, directly or indirectly, an interest in any
Person that is a competitor, customer or supplier of Target or that otherwise has business dealings
with Target; or (b) is a party to, or otherwise has any direct or indirect interest opposed to
Target under, any Material Contract or other business relationship or arrangement (other than
investments in publicly traded equity securities constituting less than 1% of the outstanding
securities of that class).

     Section 3.26 No Conflict of Interest. Target is not indebted, directly or indirectly, to
any Affiliate or to any of Target’s equityholders, officers or employees, in any amount whatsoever,
other than in connection with expenses or advances of expenses incurred in the

22

 

ordinary course of business and consistent with past practices. None of Target, any Affiliate of
Target or any of Target’s equityholders, officers or employees is indebted, directly or indirectly,
to Target, nor does any of the foregoing have any direct or indirect ownership interest in any
entity with which Target has a business relationship. Target is not a guarantor or indemnitor of
any indebtedness of any other Person.

     Section 3.27 Illegal Payments. Neither Target nor any of its equityholders, general
partners, officers, employees or agents, or any Affiliate or immediate family member of any of the
foregoing, has: (a) used any funds of Target for contributions, gifts or entertainment in violation
of applicable Law, or for other purposes, including relating to political activity, in violation of
applicable Law; or (b) made any payment for the account or benefit, or using funds, of Target in
violation of applicable Law to foreign or domestic government officials or employees or to foreign
or domestic political parties or campaigns or violated any provision of the Foreign Corrupt
Practices Act of 1977, as amended.

     Section 3.28 Insurance. Target has maintained and now maintains insurance on its business
and all of its assets of a type customarily insured, covering property damage and loss of income by
fire or other casualty, as well as adequate insurance protection against all Liabilities, claims
and risks against which it is customary to insure, including, without limitation, professional
liability insurance. Set forth in Schedule 3.28 is a complete and accurate list of all
policies, bonds and other forms of insurance currently owned or held by or on behalf of or
providing insurance coverage to Target, or the assets of Target, and its officers, employees or
agents, along with a description of all claims and their current status made under any such policy.
All such policies are issued by insurers of recognized responsibility and insure Target, and the
assets of Target against such losses and risks, and in such amounts, as are customary in the case
of entities of established reputation engaged in the same or similar businesses and similarly
situated. All such policies are in full force and effect, and Target has not done or omitted to do
or suffered anything to be done which has or might render such policies void or voidable or that
would cause or allow any claims under any such policies to be denied. Target has not received a
notice of default under any such policy or received written notice of any pending or threatened
termination or cancellation, coverage limitation or reduction, or material premium increase with
respect to any such policy, and there are no circumstances likely to give rise to any claim under
any such policies. Neither Target nor any Shareholder has received any communications that would
cause such Person to believe that Target will not be able to continue to maintain such insurance
policies with the same coverage for substantially the same premium amount.

     Section 3.29 SEC Filings; Financial Statements. Each Target Shareholder acknowledges that
they have had access to TIGroup’s filings with the SEC and have had adequate opportunity to ask
questions of TIGroup’s management in order to receive information regarding an investment in the TI
Group Common Stock.

     Section 3.30 Accredited Investor. Each of the Target Shareholders identified as an
accredited investor on Schedule 3.30 is an “accredited investor” as such term is defined in
Rule 501(a) promulgated under the 1933 Act, who by reason of his or her business and financial
experience has such knowledge, sophistication and experience in business and financial matters as
to be capable of evaluating the merits and risks of, and could be reasonably assumed to have the
capacity to protect its own interests in connection with, an investment in the TIGroup

23

 

Common Stock and, having had access to or having been furnished with all such information as it has
considered necessary, has concluded that it is able to bear those risks.

     Section 3.31 Investment in TIGroup Common Stock. Each Target Shareholder:

     (a) is fully informed as to the business conducted by TIGroup and the health
care industry generally;

     (b) has adequate means of providing for his or her current needs and possible
contingencies and has no need now, and anticipates no need in the foreseeable
future, to sell TIGroup Common Stock;

     (c) understands that the offer and sale of the TIGroup Common Stock pursuant to
this Agreement has not been registered under the 1933 Act or the securities laws of
any state and are being offered under an exemption from registration thereunder;

     (d) has no agreement or other arrangement, formal or informal, with any person
to sell, transfer or pledge any part of TIGroup Common Stock or which would
guarantee to the Target Shareholder any profit or against any loss with respect to
such TIGroup Common Stock, and he has no plans to enter into any such agreement or
arrangement;

     (e) understands that he or she must bear the economic risk of his or her
investment for an indefinite period of time because the shares of TIGroup Common
Stock cannot be sold or otherwise transferred unless the offer and sale of the
            shares of TIGroup Common Stock is subsequently registered under the 1933 Act (which
TIGroup is not obligated and does not plan to do) or an exemption from such
registration that is available;

     (f) has such knowledge and experience in financial and business matters that he
or she is capable of evaluating the merits and risks of an investment in TIGroup
Common Stock and of making an informed investment decision;

     (g) is at least 21 years of age and a bona fide resident and domiciliary (not a
temporary or transient resident) of the state of Oklahoma, and has no current
intention of becoming a resident of any other state or jurisdiction;

     (h) has not received any representations, guaranties, or warranties made by
TIGroup, or its agents or employees, or by any other person, expressly or by
implication, with respect to (i) the approximate length of time that the Target
Shareholder will be required to remain an owner of TIGroup Common Stock; (ii) the
percentage of profit and/or amount of or type of consideration, profit, or loss
(including, without limitation, tax benefits) to be realized, if any, as a result of
investment in TIGroup Common Stock; and (iii) the possibility that the past
performance or experience on the part of any officer or director of TIGroup, or of

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any other person, might in any way indicate the predictable results of
operations of TIGroup, or of ownership of TIGroup Common Stock;

     (i) understands that no federal or state agency has passed on or made any
recommendation or endorsement of TIGroup Common Stock;

     (j) has an overall commitment to investments that are not readily marketable
that is not disproportionate to his or her net worth and his or her investment in
TIGroup Common Stock will not cause such overall commitment to become excessive; and

     (k) is acquiring the TIGroup Common Stock for his or her own account and not
with a view to or for sale in connection with any distribution of any of the TIGroup
Common Stock within the meaning of Section 2(11) of the 1933 Act and will not
transfer or offer to transfer his or her TIGroup Common Stock until he or she
notifies TIGroup of his or her intention to do so and until he or she has been
notified by TIGroup that either (i) in the opinion of counsel satisfactory to
TIGroup, no registration (or perfection of any exemption) is required with respect
to such Transfer or offer to Transfer, or (ii) an appropriate registration statement
with respect to TIGroup Common Stock has been filed by TIGroup with the SEC and any
applicable state securities authority and declared effective by such Commission and
authority.

     Section 3.32 Lock-Up; Restricted Securities. Each Target Shareholder understands and
agrees that the TIGroup Common Stock received (or to be received) by them (i) will be subject to
the terms of a lock-up agreement between Target Shareholder and TIGroup that will be executed
contemporaneously with this Agreement and will impose certain restrictions on the transfer of the
TIGroup Common Stock distributed to Target Shareholder for a period of two (2) years from the
Closing Date, and (ii) constitutes “restricted securities” within the meaning of Rule 144
promulgated under the 1933 Act and may not be sold, pledged or otherwise disposed of unless they
are subsequently registered under the 1933 Act and applicable state securities laws or unless an
exemption from registration is available. Each Target Shareholder understands that the TIGroup
Common Stock received (or to be received) by them, and any securities issued in respect thereof or
exchange therefor, may bear one or more of the following restrictive legends substantially in the
form provided below:

     “THE SHARES REPRESENTED BY THIS CERTIFICATE (1) HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF AND (2) ARE SUBJECT TO A LOCK-UP AGREEMENT
BETWEEN THE INVESTOR AND THE COMPANY. NO TRANSFER MAY BE EFFECTED (1) WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AND (2)
WITHOUT COMPLYING WITH THE TERMS OF THE LOCK-UP AGREEMENT”; and/or

25

 

any legend required by the securities laws of any state to the extent such laws are
applicable to the shares represented by the certificate so legended.

     Section 3.33 Full Disclosure. No representation or warranty of Target or any Target
Shareholder contained in this Agreement, and nothing set forth herein or in the exhibits attached
hereto, or in any document furnished or to be furnished to Parent at the Closing, or in any other
information or materials delivered by Target (when read together), contains any untrue statement of
a material fact or omits to state a material fact necessary in order to make the statements
contained herein or therein not misleading in light of the circumstances under which they were
made. Target and each Target Shareholder has disclosed to Parent all of the facts and information
material to the proposed Merger that are known to either Target or any of the Target Shareholders.

Article IV.

Representations and Warranties of Parent and Merger Sub

     Parent and Merger Sub each represent and warrant to Target that the statements contained in
this Article IV (as supplemented by the Schedules referenced herein, if any) are true and
correct as of the Effective Date and the Closing Date.

     Section 4.1 Organization. Parent is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Oklahoma. Merger Sub is a corporation
duly incorporated, validly existing and in good standing under the laws of the State of Oklahoma.

     Section 4.2 Authority. Parent and Merger Sub have all requisite power and authority,
corporate or otherwise, to execute, deliver and perform their respective obligations under this
Agreement and the other agreements, certificates and instruments to be executed by Parent or Merger
Sub, as applicable, in connection with or pursuant to this Agreement. The execution, delivery and
performance by Parent or Merger Sub of this Agreement have been duly authorized by all necessary
action, corporate or otherwise, on the part of Parent. This Agreement has been duly executed and
delivered by Parent and Merger Sub, as applicable. This Agreement constitutes the legal, valid and
binding agreement of Parent and Merger Sub and it is enforceable against Parent and Merger Sub, as
applicable, in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting the enforcement
of creditors’ rights generally and subject to general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity).

     Section 4.3 No Violation. The execution, delivery and performance of this Agreement by
Parent and Merger Sub will not conflict with or result in the breach of any term or provision of,
or violate or constitute a default under any charter provision or bylaw or under any material
agreement, order or Law to which Parent or Merger Sub is a party or by which Parent or Merger Sub
is in any way bound or obligated.

     Section 4.4 Governmental Authorizations. Except to the extent required in connection with
any of the Governmental Authorizations required on the part of Target as described in

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Section 3.9, or as required by any applicable securities Laws, no Governmental
Authorization is required on the part of Parent or Merger Sub in connection with the transactions
contemplated by this Agreement.

     Section 4.5 Litigation. There are no pending or, to the knowledge of Parent or Merger Sub,
threatened, lawsuits, administrative proceedings, arbitrations, reviews or formal or informal
complaints or investigations by any Person that in any manner challenges or seeks to prevent,
enjoin, alter or materially delay any of the transactions contemplated by this Agreement.

     Section 4.6 Full Disclosure. No representation or warranty of Parent or Merger Sub
contained in this Agreement, and nothing set forth herein or in the exhibits attached hereto, or in
any document furnished or to be furnished to Target at the Closing, or in any other information or
materials delivered by Parent or Merger Sub to Target (when read together), contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the
statements contained herein or therein not misleading in light of the circumstances under which
they were made.

Article V.

Covenants

     Section 5.1 Release of Personal Guarantees. Prior to and continuing after the Closing,
Parent and Surviving Corporation will use best efforts to obtain the release of the Target
Shareholders from the personal guarantees provided by Target Shareholders prior to the Closing for
the Liabilities for leased equipment set forth in Schedule 6.4, until such time as the
Target Shareholders are released from such personal guarantees.

     Section 5.2 Conduct of Business by Target Pending the Closing. Target and each of the
Target Shareholders agrees that, between the Effective Date and the earlier of the termination of
this Agreement or the Effective Time (the “Interim Period”), except as specifically
permitted or required by any other provision of this Agreement, unless Parent shall otherwise agree
in writing, Target shall conduct its operations only in the ordinary and usual course of business
consistent with past practice, and will use commercially reasonable efforts to keep available the
services of its current key officers and employees and preserve its current relationships with such
of those customers, suppliers and other Persons with whom Target has significant business
relationships as is reasonably necessary to preserve substantially intact its business organization
and goodwill. Without limiting the foregoing, and as an extension thereof, except as specifically
permitted or required by any other provision of this Agreement, Target shall not (unless required
by applicable Law), during the Interim Period, directly or indirectly, do, or agree to do, any of
the following without the prior written consent of Parent (which consent shall not be unreasonably
withheld or delayed):

     (a) amend or otherwise change the articles of incorporation or bylaws of
Target;

     (b) adopt or implement any shareholder rights plan;

     (c) change the composition or membership of the Target Board, or remove from
office (whether voluntary or involuntary) any officer of Target;

27

 

     (d) (i) increase the compensation or benefits payable or to become payable to
any director, officer, employee or consultant of Target, except for annual merit
increases in the ordinary course of business consistent with past practice and
increases resulting from the operation of compensation arrangements in effect prior
to the date hereof; (ii) pay or accrue any bonus to any director, officer, employee
or consultant of Target, except in accordance with past established practices
therefor; (iii) grant any rights to severance or termination pay to, or enter into
or amend any employment or severance agreement with, any director, officer or other
employee or consultant of Target except to the extent such severance or termination
pay is due before the Effective Time; or (iv) establish, adopt, enter into or amend
any collective bargaining, bonus, profit sharing, thrift, compensation, stock
option, restricted stock, pension, retirement, deferred compensation, employment,
termination, severance or other plan, agreement, trust, fund, policy or arrangement
for the benefit of any director, officer, employee or consultant of Target, except
as required by applicable Law;

     (e) issue, sell, pledge, dispose of, grant, transfer or encumber, or authorize
the issuance, sale, pledge, disposition, grant, transfer or encumbrance of, any shares of Target Common Stock or any other securities of Target (whether by merger,
consolidation or otherwise), or any securities convertible or exchangeable or
exercisable for any shares of Target Common Stock or any other securities of Target,
or any options, warrants or other rights of any kind to acquire any shares of Target
Common Stock or any other securities of Target or such convertible or exchangeable
securities, or any other ownership interest (including without limitation any such
interest represented by contract right) of Target;

     (f) sell, lease, license, exchange, grant, mortgage, pledge, guarantee,
transfer, encumber or otherwise dispose of, or agree to or authorize the sale,
lease, license, exchange, grant, mortgage, pledge, guarantee, transfer, encumbrance
or disposition of, any of its assets or properties with a value in excess of $5,000
(whether by merger, consolidation or otherwise), except for (i) dispositions of
assets, goods, services or inventories in the ordinary course of business and
consistent with past practice; (i) the sale of unused or obsolete equipment; or
(iii) pursuant to existing contracts or commitments;

     (g) declare, set aside, make or pay any dividend or other distribution (whether
payable in cash, stock, property or a combination thereof) with respect to the
Target Common Stock or enter into any agreement with respect to the voting of the
Target Common Stock;

     (h) (i) redeem, purchase or otherwise acquire, or agree to redeem, purchase or
otherwise acquire, any shares of Target Common Stock or any securities or
obligations convertible into or exchangeable for any shares of Target Common Stock,
or any options, warrants or conversion or other rights (including any stock
appreciation rights, phantom stock or similar rights) to acquire any shares of
Target Common Stock or any such securities or obligations; (ii) adopt a plan with
respect to or effect any liquidation, dissolution, restructuring,

28

 

reorganization or recapitalization; or (iii) split, subdivide, combine or
reclassify any shares of Target Common Stock or issue or authorize or propose the
issuance of any other securities in respect of, in lieu of or in substitution for shares of Target Common Stock;

     (i) acquire or agree to acquire, by merging or consolidating with, by
purchasing an equity interest in or a portion of the assets or properties of, or by
any other manner, any business or any corporation, partnership, association or other
business organization or division thereof, or otherwise acquire or agree to acquire
any assets or properties of any other Person, (other than the purchase of assets or
properties that are not individually in excess of $5,000 from suppliers or vendors
in the ordinary course of business and consistent with past practice);

     (j) (i) incur any indebtedness for borrowed money or purchase money
indebtedness (including as a guarantor or surety), issue any debt securities or
assume, guarantee or endorse, or otherwise as an accommodation become responsible
for, the obligations of any Person for borrowed money, except to the extent that the
aggregate indebtedness for borrowed money of Target at any time outstanding does not
exceed $5,000; (ii) refinance or otherwise replace any of its existing indebtedness,
except with the consent of Parent, which consent shall not be unreasonably withheld;
(iii) make or incur any capital expenditure in excess of $5,000, except in the
ordinary course of business consistent with past practice; or (iv) make any loan or
advance to any Target Shareholder or any director, officer, employee or consultant
of Target;

     (k) (i) pre-pay any long-term debt in an amount exceeding $5,000 in the
aggregate, or pay, discharge or satisfy any Liabilities, except for borrowings under
revolving credit lines existing as of the date hereof in the ordinary course of
business consistent with past practice and in accordance with their terms; (ii) fail
to collect notes or accounts receivable in the ordinary course of business
consistent with past practice or enter into a factoring or discounting arrangement
with a third party with respect to accounts receivable; or (iii) fail to pay any
account payable in the ordinary course of business consistent with past practice;

     (l) terminate, cancel or request any material change in, or agree to any
material change in, any contract that is reasonably necessary for the conduct of
Target’s business as it is currently conducted other than in the ordinary course of
business consistent with past practice;

     (m) file any amended Tax Return, make any Tax election or enter into any
agreement in respect of Taxes, including without limitation the settlement of any
Tax controversy, claim or assessment, or adopt or change any accounting method in
respect of Taxes, or surrender any right to claim a refund of Taxes, if such action
would have the effect of increasing by a material amount the present or future Tax
Liability of Target or the Surviving Corporation, or would give rise to a Tax lien
(other than statutory Liens for current Taxes not yet due) on any of Target’s or the
Surviving Corporation’s assets or properties;

29

 

     (n) write up, write down or write off the book value of any of its assets,
individually or in the aggregate, except for depreciation and amortization and any
write-down of goodwill in accordance with GAAP and any write-offs of inventory or
accounts receivable that do not exceed $5,000 individually or $20,000 in the
aggregate.

     (o) take any action to exempt Target from the provisions of any state takeover
law or state law that purports to limit or restrict business combinations or the
ability to acquire or vote shares of any Person (other than Merger Sub) or any
action taken thereby, which Person or action would have otherwise been subject to
the restrictive provisions thereof and not exempt therefrom;

     (p) open or close, or enter into an agreement to open or close, any facility or
office;

     (q) fail to be in material compliance with the terms of any instrument
evidencing indebtedness incurred by Target, other than any such failure that is
waived in writing by the party to whom such indebtedness is owed within a reasonable
time after the commencement of such material non-compliance, and provided Parent
receives a copy of such waiver within a reasonable time thereafter;

     (r) enter into any agreement or arrangement outside the ordinary course of
business consistent with past practice that contains any non-compete or exclusivity
provisions with respect to any customer, line of business or geographic area with
respect to Target or any of its or the Surviving Corporation’s current or future
Affiliates, or that limits or otherwise restricts Target prior to the Effective
Time, or that would, at or after the Effective Time, limit or restrict the Surviving
Corporation, from engaging in any business in the United States, or that restricts
the conduct with respect to any customer of any line of business by Target or any of
its or the Surviving Corporation’s current or future Affiliates, or any geographic
area in which Target or any of its or the Surviving Corporation’s current or future
Affiliates may conduct business, or that otherwise restricts the operation of
Target’s business, in each case other than non-compete agreements signed by
employees incident to their employment by Target;

     (s) take any formal action or grant any consent or approval concerning any
joint venture outside the ordinary course of business consistent with past practice;

     (t) modify, amend or terminate, or waive, release or assign any material rights
or claims with respect to, or grant any consent under, any existing standstill
provision relating to Target Acquisition Proposal, or under any similar
confidentiality or other agreement, or fail to fully enforce any such agreement;

     (u) change any of its methods, principles or practices of accounting or
internal controls in effect as of the date hereof, other than in the ordinary course

30

 

of business consistent with past practice or as required by applicable Law,
GAAP or any Governmental Authority;

     (v) waive, release, assign, settle or compromise any material claims, or any
material Litigation or arbitration, if such waiver, release, assignment, settlement
or compromise would require any material payment by the Surviving Corporation at or
after the Effective Time;

     (w) take any action or fail to take any action that is intended or would
reasonably be expected to result in Target Material Adverse Effect, the breach of a
representation or warranty, a breach of a covenant or agreement, or a failure of a
condition to Closing in this Agreement; or

     (x) authorize or enter into any agreement or otherwise make any commitment to
do any of the foregoing.

     Section 5.3 Cooperation. Target and Parent shall coordinate and cooperate in connection
with (a) determining whether any action by or in respect of, or filing with, any Governmental
Authority is required, or any actions, consents, approvals or waivers are required to be obtained
from parties to any of Target’s material contracts, in connection with the consummation of the
Merger; and (b) seeking any such actions, consents, approvals or waivers or making any such
filings, furnishing information required in connection therewith or with any other filings and
timely seeking to obtain any such actions, consents, approvals or waivers.

     Section 5.4 Access to Target Information; Confidentiality.

     Section 5.4.1 During the Interim Period, Target shall, and shall cause each of the
Target Shareholders and Target’s officers, directors, employees, accountants, consultants,
legal counsel, agents and other representatives (collectively, the “Target
Representatives”) to: (a) provide to Parent and Merger Sub and their respective
officers, directors, employees, accountants, consultants, legal counsel, agents and other
representatives (collectively, the “Parent Representatives”) reasonable access, at
reasonable times upon reasonable prior notice, to the officers, directors, agents,
properties, offices and other facilities of Target and to Target’s books and records; and
(b) furnish promptly to Parent or the appropriate Parent Representatives such information
concerning the business, properties, contracts, records, personnel and other aspects of
Target (including without limitation financial, operating and other data and information) as
the Parent Representatives may reasonably request from time to time; provided,
however, that all access and investigation made pursuant to this Section 5.3.1
shall be conducted in such a way as to minimize interference with the operations and
business of Target; further provided, that in no case shall Target be required to
provide or otherwise disclose or make available to Parent any confidential customer
information. No investigation conducted pursuant to this Section 5.3.1 shall affect
or be deemed to modify or limit any representation or warranty made in this Agreement.

     Section 5.4.2 Parent and Merger Sub shall, and shall use reasonable efforts to cause
the Parent Representatives to, treat all information disclosed pursuant to Section 

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5.3.1, together with any other confidential information furnished to them by
Target or any of the Target Representatives, as confidential and not make use of such
confidential information for their own purposes or for the benefit of any other Person
(other than Target prior to, or the Surviving Corporation after, the Effective Time).

     Section 5.5 No Solicitation of Transactions.

     Section 5.5.1 Without limitation on its other obligations under this Agreement, Target
shall not, nor shall it authorize or permit any Target Shareholder or any investment banker,
financial advisor or other representative retained by it, directly or indirectly, through
any other Person (which for purposes of this Section 5.4 shall include any “group”
as such term is defined in Section 13(d) of the Exchange Act) to: (a) solicit, initiate,
facilitate or encourage (including by way of furnishing or disclosing information with
respect to Target to any Person) the making of or any effort or attempt to make any Target
Acquisition Proposal; (b) participate in, continue or resume any discussions or negotiations
relating to any Target Acquisition Proposal; (c) enter into any letter of intent, agreement
in principle, merger agreement, acquisition agreement, option agreement or other similar
agreement related to any Target Acquisition Proposal or approve or recommend, or publicly
propose to approve or recommend, any Target Acquisition Proposal; or (d) or enter into any
agreement, arrangement or understanding requiring it to abandon, terminate or fail to
consummate the Merger or any other transaction contemplated by this Agreement; provided,
however, that if, at any time prior to the obtaining of the Target Shareholder Approval,
the Target Board determines in good faith, after consultation with outside legal counsel and
its financial advisors, that it would otherwise be reasonably likely to constitute a breach
of its fiduciary duties to the Target Shareholders, Target may, in response to Target
Superior Proposal and subject to compliance with Section 5.4.2: (i) furnish
information with respect to Target to the Person making such Target Superior Proposal
pursuant to a customary confidentiality agreement the benefits of the terms of which are no
more favorable to such Person than those in place with Parent; and (ii) participate in
discussions or negotiations with respect to such Target Superior Proposal. Upon execution
of this Agreement, Target shall cease immediately and cause to be terminated any and all
existing discussions or negotiations with any Persons other than Parent and Merger Sub
conducted heretofore with respect to any Target Acquisition Proposal and promptly request
that all confidential information with respect thereto furnished on behalf of Target be
returned or destroyed.

     Section 5.5.2 Target shall, as promptly as practicable (and in no event later than 24
hours after receipt thereof), advise Parent of any inquiry received by it relating to any
potential Target Acquisition Proposal and of the material terms of any proposal or inquiry,
including the identity of the Person making the same, that it may receive in respect of any
such potential Target Acquisition Proposal, or of any information requested from it or of
any negotiations or discussions being sought to be initiated with it, and shall furnish to
Parent a copy of any such proposal or inquiry if it is in writing, and shall keep Parent
fully informed on a prompt basis with respect to any developments with respect to the
foregoing.

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     Section 5.5.3 Neither the Target Board nor any committee thereof shall (a) withdraw or
modify, or propose publicly to withdraw or modify, in a manner adverse to Parent, the
approval or recommendation by the Target Board or such committee of the Merger; (b) approve
or recommend, or propose publicly or to the Target Shareholders the approval or
recommendation of, any Target Acquisition Proposal; or (c) cause Target to enter into any
letter of intent, agreement in principle, acquisition agreement or other similar agreement
related to any Target Acquisition Proposal. If the Target Board determines in good faith,
after consultation with outside legal counsel and its financial advisors, that it would
otherwise be reasonably likely to constitute a breach of its fiduciary duties to the Target
Shareholders, then nothing contained in this Section 5.4 shall prohibit the Target
Board from taking the actions described in subsections (a), (b) and (c) of this Section
5.4.3, in each case no earlier than the second business day following the date of
delivery of written notice to Parent of its intention to do so, so long as Target continues
to comply with all other provisions of this Agreement.

     Section 5.6 Appropriate Action; Consents; Filings.

     Section 5.6.1 Subject to the terms and conditions of this Agreement, Target, Merger
Sub, and Parent shall: (a) use their commercially reasonable efforts to cooperate with one
another in (i) determining which filings and notifications are required to be made prior to
the Effective Time under applicable Laws with, and which consents, licenses, approvals,
permits, waivers, orders or authorizations are required to be obtained or made prior to the
Effective Time under applicable Laws from, any Governmental Authority in connection with the
authorization, execution and delivery of this Agreement and the consummation of the Merger
and the other transactions contemplated hereby and thereby; (ii) timely making all such
filings and notifications and timely seeking all such consents, licenses, approvals,
permits, waivers, orders or authorizations; and (iii) as promptly as practicable respond to
any request for information including without limitation any request for additional
information and documentary materials from any Governmental Authority; (b) subject to any
restrictions under applicable antitrust laws, to the extent practicable, promptly notify
each other of any communication from any Governmental Authority with respect to this
Agreement or the transactions contemplated hereby, and permit the other party to review in
advance any proposed written communication to any Governmental Authority; (c) not agree to
participate in any meeting with any Governmental Authority in respect of any filings,
investigation or other inquiry with respect to this Agreement or the transactions
contemplated hereby unless it consults with the other party in advance and, to the extent
permitted by such Governmental Authority, gives the other party the opportunity to attend
and participate, in each case to the extent practicable; and (d) furnish the other party
with such necessary information and reasonable assistance as such other party and its
Representatives may reasonably request in connection with their preparation of necessary
filings, registrations or submissions to any Governmental Authority in connection with this
Agreement or the transactions contemplated hereby.

     Section 5.6.2 Each of Target, Merger Sub, and Parent shall give any notices to third
parties, and shall use each use commercially reasonable efforts to obtain any third party
Approvals required to consummate the transactions contemplated by this

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Agreement. In the event that either party shall fail to obtain any third party consent
described in the preceding sentence, such party shall use reasonable efforts, and shall take
reasonable actions to minimize any adverse effect upon Target, Parent or their respective
businesses resulting, or that could reasonably be expected to result after the Effective
Time, from the failure to obtain such consent.

     Section 5.6.3 During the Interim Period, each of Target, Merger Sub, and Parent shall
promptly notify the other in writing (a) of any pending or, to the knowledge of the
notifying party, threatened action, suit, arbitration or other proceeding or investigation
by any Governmental Authority or any other Person that (i) challenges or seeks material
damages in connection with the Merger or the conversion of Target Common Stock into the
right to receive the Merger Consideration pursuant to the Merger and the terms of this
Agreement; or (ii) seeks to restrain or prohibit the consummation of the Merger or otherwise
limit the right of Surviving Corporation to own or operate all or any portion of the
businesses or assets of Target; or (b) at least 72 hours prior to the filing by the
notifying party for protection under federal bankruptcy laws or similar state laws relating
to bankruptcy, insolvency, reorganization, moratorium or conveyance.

     Section 5.6.4 During the Interim Period, Target shall promptly notify Parent and Merger
Sub of (a) any material change in the current or future business, condition (financial or
otherwise) or results of operations of Target; (b) any complaints, investigations or
hearings (or communications indicating that the same may be contemplated) of any
Governmental Authority with respect to Target or the transactions contemplated hereby that,
if adversely determined, would be reasonably expected to have Target Material Adverse
Effect; (c) the institution or the threat of Litigation involving Target; or (d) the
occurrence or non-occurrence of any event or condition that might reasonably be expected to
cause (i) any of the representations, warranties, covenants or agreements of Target set
forth herein not to be true and correct at the Effective Time; (ii) any condition to the
obligations of any party to effect the Merger and the other transactions contemplated by
this Agreement not to be satisfied; or (iii) the failure of any party to comply with or
satisfy any covenant, condition or agreement to be complied with or satisfied by it pursuant
to this Agreement that would reasonably be expected to cause any condition to the
obligations of any party to effect the Merger and the other transactions contemplated by
this Agreement not to be satisfied; provided, however, that the delivery of any
notice pursuant to this Section 5.5.4 shall not cure any breach of any
representation or warranty requiring disclosure of such matter prior to the date hereof or
otherwise limit or affect the remedies available hereunder to the party receiving such
notice.

     Section 5.6.5 Subject to the terms and conditions of this Agreement, Target, Target
Shareholders, Merger Sub and Parent shall use their commercially reasonable efforts to take,
or cause to be taken, all appropriate action, and do, or cause to be done, all things
necessary, advisable or appropriate under applicable Laws or otherwise to cause all of the
conditions, as specified in Article VI, to the obligations of the other to
consummate and make effective the transactions contemplated by this Agreement and the
Ancillary Documents as soon as practicable after the date hereof.

34

 

     Section 5.7 Takeover Statutes. In connection with and without limiting the foregoing,
Target, the Target Shareholders, the Target Board, Parent, the Parent Board, Merger Sub and the
Merger Sub Board each shall (a) take all action necessary to ensure that no takeover statute or
similar statute or regulation is or becomes applicable to this Agreement, the Merger, the Closing
or the performance of any duties or transactions required hereby; and (b) if any takeover statute
or similar statute becomes so applicable, take all action necessary to ensure that the Merger and
the Closing are completed as soon as practicable.

     Section 5.8 Public Announcements. Parent and Target shall consult with each other before
issuing any press release or otherwise making any public statements with respect to the Merger and
shall not issue any such press release or make any such public statement prior to such
consultation, except as may be required by applicable Law.

     Section 5.9 Indemnification of Directors and Officers.

     Section 5.9.1 For not less than six years from and after the Closing Date, Parent
agrees to indemnify and hold harmless all past and present directors, officers and employees
of Parent, Merger Sub or Target to the same or greater extent as directors, officers and
employees of Parent are indemnified by Parent as of the date hereof pursuant to the Parent
Governing Documents and indemnification agreements, if any, in existence on the date hereof,
for acts or omissions occurring at or prior to the Effective Time; provided,
however, that Parent agrees to indemnify and hold harmless such Persons to the fullest
extent permitted by Law for acts or omissions occurring in connection with the approval of
this Agreement and the consummation of the transactions contemplated hereby and thereby.

     Section 5.9.2 For not less than six years from and after the Closing Date, subject to
the prior approval of the Parent Board, which approval shall not be unreasonably withheld,
Parent shall provide to Parent’s and the Surviving Corporation’s current directors and
officers an insurance and indemnification policy that provides coverage for claims arising
from facts or events that occurred on or before the Effective Time, including without
limitation in respect of the transactions contemplated by this Agreement (the “D&O
Insurance Policy”), that is no less favorable than Parent’s existing policy or, if
substantially equivalent insurance coverage is unavailable, the best available coverage.
The provisions of the immediately preceding sentence shall be deemed to have been satisfied
if a prepaid D&O Insurance Policy has been obtained prior to the Effective Time for purposes
of this Section 5.8, which D&O Insurance Policy provides such directors and officers
with coverage for an aggregate period of six years with respect to claims arising from facts
or events that occurred on or before the Effective Time, including without limitation in
respect of the transactions contemplated by this Agreement. If such prepaid D&O Insurance
Policy has been obtained prior to the Effective Time, Parent shall maintain such D&O
Insurance Policy in full force and effect, and continue to honor the obligations thereunder,
at all times until the stated expiration thereof.

     Section 5.9.3 In the event, at any time after the Effective Time, Parent (a)
consolidates with or merges into any other Person and shall not be the continuing or

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surviving corporation or entity of such consolidation or merger; or (b) transfers all
or substantially all of its properties and assets to any Person, then, and in each such
case, proper provisions shall be made so that such continuing or surviving corporation or
entity or transferee of such assets, as the case may be, shall assume the obligations set
forth in this Section 5.8.

     Section 5.9.4 The obligations under this Section 5.8 shall not be terminated or
modified in such a manner as to adversely affect any Person to whom this Section 5.8
applies without the consent of such affected Person (it being expressly agreed that the
Persons to whom this Section 5.8 applies shall be third party beneficiaries of this
Section 5.8).

     Section 5.10 Tax Matters.

     Section 5.10.1 Indemnification for Taxes. Each Target Shareholder shall
jointly and severally indemnify, exonerate and hold free and harmless each Buyer Indemnified
Party (as defined in Section 8.1.1) from and against any Taxes, costs or other
expenses that are attributable to (a) any Taxes (or the non-payment thereof) of Target or
any of the Target Shareholders for all taxable periods ending on or before the Closing Date
and the portion through the end of the Closing Date for any taxable period that includes
(but does not end on) the Closing Date (“Pre-Closing Tax Period”), (b) all Taxes for
Pre-Closing Tax Periods of any member of any affiliated, consolidated, combined, unitary or
other group of which Target is or was a member on or prior to the Closing Date, including
pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar state, local,
or non-U.S. law or regulation, (c) any and all Taxes of any Person with respect to a
Pre-Closing Tax Period imposed on Target or any of the Target Shareholders as a transferee
or successor, by contract or otherwise, and (d) a breach of any representation, warranty,
covenant or agreement by Target or any of the Target Shareholders (as such representation or
warranty would read if all qualifications as to materiality were deleted therefrom), set
forth in Section 3.13, Section 3.22, Section 5.1(m) or this
Section 5.9; provided, however, that the Target Shareholders shall be liable
for Taxes pursuant to clauses (a), (b), (c) and (d) above only to the extent that such Taxes
exceed the amount, if any, accrued with respect thereto on the Financial Statements.

     Section 5.10.2 Straddle Period. In the case of any taxable period that
includes (but does not end on) the Closing Date (a “Straddle Period”), the amount of
any withholding Taxes and Taxes of Target or any of the Target Shareholders based upon or
measured by receipts, net income or gain for the Pre-Closing Tax Period will be determined
based on an interim closing of the books as of the close of business on the Closing Date.
The amount of Taxes, other than Taxes based upon or measured by net income or gain for a
Straddle Period, which relate to the Pre-Closing Tax Period will be deemed to be the amount
of such Tax for the entire taxable period multiplied by a fraction, the numerator of which
is the number of days in the taxable period ending on the Closing Date and the denominator
of which is the number of days in such Straddle Period.

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     Section 5.10.3 Tax Sharing Agreements. All Tax sharing agreements or similar
agreements and all powers of attorney with respect to or involving Target shall be
terminated prior to the Closing and, after the Closing, Target shall not be bound thereby or
have any liability thereunder.

     Section 5.10.4 Certain Taxes and Fees. All transfer, documentary, sales, use
stamp, registration and other such Taxes, and any conveyance fees or recording charges
incurred in connection with the transactions contemplated herein, shall be paid by Target
when due. The Target will, at their own expense, file all necessary Tax returns and other
documentation with respect to all such Taxes, fees and charges and, if required by
applicable law, the Surviving Corporation will (and will cause its Affiliates to) join in
the execution of any such Tax returns and other documentation.

     Section 5.10.5 Cooperation on Tax Matters. Parent, the Target Shareholders and
the Surviving Corporation shall cooperate fully, as and to the extent reasonably requested
by the other party, in connection with any Tax matters relating to Target and/or any of the
Target Shareholders (including by the provision of reasonably relevant records or
information).

     Section 5.10.6 Termination of Indemnity Obligation. Notwithstanding any
provision of this Agreement to the contrary, the obligations of the Target Shareholders to
indemnify and hold harmless any Buyer Indemnified Party pursuant to this Section 5.9
shall terminate at the close of business on the 120th day following the expiration of the
application statute of limitations with respect to the Tax liabilities in question (giving
effect to any waiver, mitigation or extension thereof).

     Section 5.10.7 Exclusivity. The provisions set forth in this Section
5.9 shall govern any and all indemnity claims for, or related to, Taxes and any and all
costs or other expenses related thereto or incurred in connection with contesting any Tax
liabilities (collectively, “Tax Claims”) and the provisions of Article VIII
of this Agreement shall not apply to Tax Claims.

     Section 5.11 Delivery of Interim Financial Statements. Parent shall cause to be delivered
to each of the Target Shareholders (i) the Annual Report on Form 10-KT of TIGroup for the eight
month transition period ended September 30, 2007 and the Quarterly Report on Form 10-Q of TIGroup
for the quarter ended December 31, 2007, (ii) copies of the most recent reviewed financial
statements of Rural Hospital Acquisition, LLC, an Oklahoma liability company, and the parent of
Parent; and (iii) copies of the management financial statements of Parent dated as of December 31,
2007.

     Section 5.12 Liabilities to Shareholders. Target and each Target Shareholders acknowledge
and agree that the Liabilities to current and former shareholders of Target set forth in
Schedule 3.11.3 are the entire Liabilities to current and former shareholders of Target by
Target, and Parent and Merger Sub acknowledge and agree that such Liabilities shall become
Liabilities of the Surviving Corporation at the Effective Time. The amounts set forth next to each
Target Shareholder’s name on Schedule 3.11.3 (i) are equal to the buy-out amount accrued by
such Target Shareholder during his or her employment with Target, (ii) shall be frozen as of

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the Effective Date and will not increase thereafter, and (iii) will be paid to the Target
Shareholders in accordance with the terms of that Target Shareholder’s employment agreement with
the Surviving Corporation.

     Section 5.13 Transitional Matters. Each of Parent, Merger Sub and Target shall use their reasonable
best efforts to effectuate the following transitional matters:

     Section 5.13.1 Other Employment Agreements. As soon as reasonably practicable
after the Effective Time, Parent shall enter into new or amended employment agreements with
the individuals set forth in Schedule 5.13.1, which employment agreements shall be
in form and substance reasonably acceptable to such individuals and the Parent Board.

     Section 5.13.2 Lock-Up Agreement. At or prior to the Effective Time, each
Target Shareholder shall execute a lock-up agreement with TIGroup, which will impose certain
restrictions on the transfer of the TIGroup Common Stock distributed to Target Shareholder
for a period of two (2) years from the date of distribution of such TIGroup Common Stock.

     Section 5.13.3 Shareholders Agreement. At or prior to the Effective Time, the
Target Shareholders and Target shall terminate the Target Shareholder Agreement.

     Section 5.14 Amendment of Target Governing Documents. At or prior to the Effective Time,
the Target Board and the Target Shareholders shall have taken such action as is necessary to amend
the Target’s articles of incorporation or bylaws if and as necessary to give effect to the
transactions contemplated by this Agreement.

     Section 5.15 Further Assurances. If at any time after the Effective Time, any reasonable
further action is necessary or desirable to carry out the purposes and intent of this Agreement,
including without limitation the execution of additional instruments, the proper officers and
directors of each party will take all such reasonable further action.

Article VI.

Closing Conditions

     Section 6.1 Conditions to Obligations of Each Party Under This Agreement. The respective
obligations of each party to effect the Merger and the other transactions contemplated hereby shall
be subject to the satisfaction at or prior to the Effective Time of the following conditions, any
or all of which may be waived, in whole or in part, to the extent permitted by applicable Law:

     Section 6.1.1 Board Approvals. The Parent Board, the Target Board and the
Merger Sub Board shall have unanimously approved and declared advisable and in the best
interests of their respective shareholders this Agreement and the transactions contemplated
hereby, including without limitation the Merger.

     Section 6.1.2 Target Shareholder Approval. The Target Shareholders shall have
unanimously approved this Agreement and the Merger.

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     Section 6.1.3 Court Proceedings. No Litigation shall be pending or threatened
before any court or quasi-judicial or administrative agency of any federal, state, local or
foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment,
order, decree, ruling or charge would (a) prevent consummation of any of the transactions
contemplated by this Agreement; (b) cause any of the transactions contemplated by this
Agreement to be rescinded following consummation thereof; or (c) affect adversely the right
or powers of Parent to own, operate or control Target or the Surviving Corporation, and no
such injunction, judgment, order, decree, ruling or charge shall be in effect.

     Section 6.1.4 No Order. No Governmental Authority, nor any federal or state
court of competent jurisdiction or arbitrator shall have enacted, issued, promulgated,
enforced or entered any statute, rule, regulation, executive order, decree, judgment,
injunction or arbitration award or finding or other order (whether temporary, preliminary or
permanent), in any case that is in effect and prevents or prohibits consummation of the
Merger or any other transactions contemplated by this Agreement.

     Section 6.1.5 Certificate of Merger. The Certificate of Merger will have been
filed with and accepted by the Secretary of State of the State of Oklahoma.

     Section 6.2 Additional Conditions to Obligations of Parent and Merger Sub. The obligations
of Parent and Merger Sub to effect the Merger and the other transactions contemplated herein are
also subject to the following conditions, any or all of which may be waived by Target, in whole or
in part, to the extent permitted by applicable Law:

     Section 6.2.1 Representations and Warranties. Each of the representations and
warranties of Target and the Target Shareholders contained in this Agreement shall be true
and correct in all material respects (if not subject to a materiality qualifier) or in all
respects (if subject to a materiality qualifier) as of the date hereof and as of the Closing
Date as though made on and as of the Closing Date (except to the extent such representations
and warranties specifically relate to an earlier date, in which case such representations
and warranties need only speak as of such date).

     Section 6.2.2 Agreements and Covenants. Target and each of the Target
Shareholders shall have performed or complied in all material respects with all agreements
and covenants required by this Agreement to be performed or complied with by Target and/or
such Target Shareholder on or prior to the Closing Date.

     Section 6.2.3 Execution of Lock-Up Agreement. Each Target Shareholder shall
have executed the lock-up agreement contemplated by Section 5.11.2.

     Section 6.2.4 Termination of Shareholder Agreement. The Target Shareholders
and Target shall have terminated the Shareholders Agreement.

     Section 6.2.5 Due Diligence. Parent shall have completed its due diligence
investigation of Target and obtained results satisfactory to Parent in its reasonable
discretion after consultation with the Parent Representatives.

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     Section 6.2.6 No Target Material Adverse Effect. There shall not have occurred
any Target Material Adverse Effect.

     Section 6.2.7 Delivery of Secretary’s Certificate of Target. The Target has
delivered to the Parent and Merger Sub a certificate of the secretary of the Target,
substantially in the form of Exhibit D attached hereto.

     Section 6.2.8 Delivery of Closing Certificates. The Target and Target
Shareholders have delivered to the Parent and Merger Sub closing certificates, substantially
in the form of Exhibit E and Exhibit F attached hereto.

     Section 6.2.9 Court Proceedings. No Litigation shall be pending or threatened
before any court or quasi-judicial or administrative agency of any federal, state, local or
foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment,
order, decree, ruling or charge would (a) prevent consummation of any of the transactions
contemplated by this Agreement; (b) cause any of the transactions contemplated by this
Agreement to be rescinded following consummation thereof; or (c) affect adversely the right
or powers of Parent to own, operate or control Target or the Surviving Corporation, and no
such injunction, judgment, order, decree, ruling or charge shall be in effect.

     Section 6.2.10 Reviewed Financials. Target, at its sole expense, shall provide
Parent with reviewed compiled financial statements for Target’s last two fiscal years and
unaudited but reviewed compiled financial statements for any interim period; provided
however, that Parent and Merger Sub may waive this condition.

     Section 6.3 Additional Conditions to Obligations of Target. The obligations of Target to
effect the Merger and the other transactions contemplated hereby are also subject to the following
conditions, any or all of which may be waived by Parent, in whole or in part, to the extent
permitted by applicable Law:

     Section 6.3.1 Representations and Warranties. Each of the representations and
warranties of Parent and Merger Sub contained in this Agreement shall be true and correct in
all material respects (if not subject to a materiality qualifier) or in all respects (if
subject to a materiality qualifier) as of the date hereof and as of the Closing Date as
though made on and as of the Closing Date (except to the extent such representations and
warranties specifically relate to an earlier date, in which case such representations and
warranties need only speak as of such date).

     Section 6.3.2 Agreements and Covenants. Parent and Merger Sub shall have
performed or complied in all material respects with all agreements and covenants required by
this Agreement to be performed or complied with by Parent or Merger Sub on or prior to the
Closing Date.

     Section 6.3.3 Delivery of Secretary’s Certificate. The Merger Sub has
delivered to the Target a certificate of the secretary of the Merger Sub, substantially in
the form of Exhibit G attached hereto.

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     Section 6.3.4 Delivery of Closing Certificate. The Merger Sub has delivered to
the Target a closing certificate, substantially in the form of Exhibit H attached
hereto.

     Section 6.3.5 Court Proceedings. No Litigation shall be pending or threatened
before any court or quasi-judicial or administrative agency of any federal, state, local or
foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment,
order, decree, ruling or charge would (a) prevent consummation of any of the transactions
contemplated by this Agreement; (b) cause any of the transactions contemplated by this
Agreement to be rescinded following consummation thereof; or (c) affect adversely the right
or powers of Parent to own, operate or control Target or the Surviving Corporation, and no
such injunction, judgment, order, decree, ruling or charge shall be in effect.

     Section 6.4 Satisfaction of Personal Guarantees. The obligations of Target Shareholders to
effect the Merger and the other transactions contemplated hereby are also subject to the release of
the Target Shareholders from the personal guarantees provided by the Target Shareholders to Rose
Rock Bank for the Liabilities set forth in Schedule 6.4.

Article VII.

Termination, Amendment and Waiver

     Section 7.1 Termination. This Agreement may be terminated, and the Merger contemplated
hereby may be abandoned, at any time prior to the Effective Time, by action taken or authorized by
the board of directors of the terminating party:

     Section 7.1.1 By mutual written consent of Target and Parent;

     Section 7.1.2 By either Target or Parent if the Merger shall not have been consummated
prior to April 18, 2008; provided, however, that the right to terminate this
Agreement under this Section 7.1.2 shall not be available to any party whose failure
to fulfill any obligation under this Agreement has been the cause of, or resulted in, the
failure of the Merger to be consummated on or before such date;

     Section 7.1.3 By either Target or Parent if either party receives notice from the other
pursuant to Section 5.5.3(b) that such other party intends to file for protection
under federal bankruptcy laws or similar state laws relating to bankruptcy, insolvency,
reorganization, moratorium or similar laws or if any Governmental Authority shall have
issued an order, decree or ruling or taken any other action permanently restraining,
enjoining or otherwise prohibiting the transactions contemplated by this Agreement or any
Ancillary Document, and such order, decree, ruling or other action shall have become final
and nonappealable (which order, decree, ruling or other action the parties shall have used
their commercially reasonable efforts to resist, resolve or lift, as applicable, subject to
the provisions of Section 5.4);

     Section 7.1.4 By either Parent or Target if the Target Shareholder Approval shall not
have been obtained by reason of the failure to obtain the required vote at the Target
Shareholders’ Meeting or at any adjournment thereof; provided, however, that if this
Agreement is then terminable pursuant to Section 7.1.6 by Parent, Target shall not
have a right to terminate under this Section 7.1.4;

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     Section 7.1.5 By Target if the Parent Shareholder Approval shall not have been obtained
by reason of the failure to obtain the required vote at the Parent Shareholders’ Meeting or
at any adjournment thereof; provided, however, that if this Agreement is then
terminable pursuant to Section 7.1.8 by Parent, Target shall not have a right to
terminate under this Section 7.1.5;

     Section 7.1.6 By Parent if (a) the Target Board shall have withdrawn, or adversely
modified, its recommendation in favor of the Target Shareholder Approval (or determined to
do so); (b) the Target Board shall have failed upon Parent’s request, in response to
notification by Target pursuant to Section 5.4.2 that it has received Target
Acquisition Proposal containing a proposed acquisition price, to reconfirm its
recommendation in favor of the Target Shareholder Approval (or determined to do so) within
ten business days after such request (or such shorter period of time as may exist between
such request and the second business day preceding the Target Shareholders’ Meeting); (c)
the Target Board shall have determined to recommend to the Target Shareholders that they
approve Target Acquisition Proposal or shall have determined to accept Target Superior
Proposal; (d) the Target Board shall have caused Target to enter into any letter of intent,
agreement in principle, acquisition agreement or similar agreement related to any Target
Acquisition Proposal; or (e) for any reason within its control Target fails to call or hold
the Target Shareholders’ Meeting on or before the date of the Parent Shareholder Meeting;

     Section 7.1.7 By Parent, if Target Material Adverse Effect has occurred and has not
been cured within a reasonable period of time or (a)(i) Target breaches any of its covenants
or agreements set forth in this Agreement and such breach is not the result of Parent’s
failure to fulfill any of its covenants or agreements under this Agreement; (ii) any
representation or warranty of Target set forth in this Agreement that is qualified as to
materiality shall have become untrue; or (iii) any representation or warranty of Target set
forth in this Agreement that is not qualified as to materiality shall have become untrue in
any material respect; (b) such breach or misrepresentation is not cured within 10 days after
written notice thereof; and (c) such breach or misrepresentation would cause the conditions
set forth in Section 6.2.1 or Section 6.2.2 not to be satisfied;

     Section 7.1.8 By Target if (a) the Parent Board shall have withdrawn, or adversely
modified, its recommendation in favor of the Parent Shareholder Approval (or determined to
do so); or (b) for any reason within its control Parent fails to call or hold the Parent
Shareholders’ Meeting as contemplated hereby; or

     Section 7.1.9 By Target, if a Parent Material Adverse Effect has occurred and has not
been cured within a reasonable period of time or if (a)(i) Parent or Merger Sub breaches any
of their covenants or agreements set forth in this Agreement and such breach is not the
result of Target’s failure to fulfill any of its covenants or agreements under this
Agreement; (ii) any representation or warranty of Parent or Merger Sub set forth in this
Agreement that is qualified as to materiality shall have become untrue; or (iii) any
representation or warranty of Parent or Merger Sub set forth in this Agreement that is not
qualified as to materiality shall have become untrue in any material respect; (b) such
breach or misrepresentation is not cured within ten (10) days after written notice

42

 

thereof; and (c) such breach or misrepresentation would cause the conditions set forth
in Section 6.3.1 or Section 6.3.2 or not to be satisfied.

     Section 7.2 Effect of Termination; Limitation on Liability. In the event of termination of
this Agreement by either Target or Parent as provided in Section 7.1, this Agreement shall
forthwith become void and there shall be no liability or obligation on the part of Target, the
Target Shareholders, Parent or Merger Sub or their respective officers or directors except with
respect to Section 5.4, Section 5.11, this Section 7.2 and Article
VIII.

     Section 7.3 Amendment. This Agreement may be amended, supplemented or modified, and any
provision hereof may be waived, only by written instrument making specific reference to this
Agreement signed by the party against whom enforcement is sought. Any such amendment, supplement,
modification or waiver may be made by action taken by or on behalf of the respective boards of
directors of the parties at any time prior to the Effective Time; provided, however, that,
after the Parent Shareholder Approval or the approval of the Merger by the Target Shareholders has
been obtained, no amendment may be made without further shareholder approval, which, by Law or in
accordance with the rules of any relevant stock exchange, requires further approval by such
shareholders.

     Section 7.4 Waiver. At any time prior to the Effective Time, any party hereto may (a)
extend the time for the performance of any of the obligations or other acts of any other party
hereto; (b) waive any inaccuracies in the representations and warranties of any other party
contained herein or in any document delivered pursuant hereto; and (c) waive compliance by any
other party with any of the agreements or conditions contained herein; provided, however,
that, after the Parent Shareholder Approval or any approval of the transactions contemplated by
this Agreement by the Target Shareholders has been obtained, there may not be, without further
approval of such shareholders, any extension or waiver of this Agreement or any portion thereof
which, by Law or in accordance with the rules of any relevant stock exchange, requires further
approval by the Target Shareholders or the Parent Shareholders. Any such extension or waiver will
be valid only if set forth in an instrument in writing signed by the party or parties to be bound
thereby. No failure or delay on the part of any party hereto in the exercise of any right
hereunder will impair such right or be construed to be a waiver of, or acquiescence in, any breach
of any representation, warranty or agreement herein, nor will any single or partial exercise of any
such right preclude other or further exercise thereof or of any other right. No waiver of any
right, power or duty by any party hereunder will operate or be construed as a waiver as to any
subsequent occurrence or circumstance. All rights and remedies existing under this Agreement are
cumulative to, and not exclusive to, and not exclusive of, any rights or remedies otherwise
available.

     Section 7.5 Fees and Expenses. Each party hereto shall bear its own costs and expenses
(including without limitation reasonable fees and expenses of legal counsel, accountants,
investment bankers, experts and consultants) incurred in connection with the negotiating,
execution, delivery and performance of the transaction contemplated by this Agreement.

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Article VIII.

Indemnification

     Section 8.1 General Indemnity.

     Section 8.1.1 Indemnification by Target Shareholders. Subject to the terms and
conditions of this Article VIII, each Target Shareholder shall jointly and severally
indemnify, defend and hold Parent, the Surviving Corporation (after the Closing) and their
respective directors, officers, employees, Affiliates, shareholders, members, agents,
attorneys, representatives, successors and permitted assigns (each, a “Buyer Indemnified
Party”, and, collectively, the “Buyer Indemnified Parties”) harmless from and
against any and all actions, Liabilities, orders, Liens, losses, damages, bonds, dues,
assessments, fines, penalties, Taxes, fees, costs (including costs of investigation, defense
and enforcement of this Agreement), deficiencies, expenses or amounts paid in settlement (in
each case, including reasonable attorneys’ and experts fees and expenses) (collectively
referred to as “Losses”), whether or not resulting or involving a Third Party Claim
(as defined in Section 8.3) by reason of or resulting from (i) a breach of any
representation, warranty, covenant or agreement of Target or a Target Shareholder contained
in or made pursuant to this Agreement (in each case, as such representation or warranty would
read if all qualifications as to materiality, including each reference to the defined term
“Target Material Adverse Effect,” were deleted therefrom) or in any document, schedule,
certificate or other document or instrument executed or delivered by them in connection with
this Agreement, or (ii) the failure of Target or any Target Shareholder duly to perform or
observe any term, provision, covenant or agreement to be performed or observed by them
pursuant to this Agreement or in any document, schedule, certificate or other document or
instrument executed or delivered in connection with this Agreement; provided,
however, that the indemnification under this Section 8.1.1 shall be subject to
the limitations contained in Section 8.6.

     Section 8.1.2 Indemnification by Parent. Subject to the terms and conditions of
this Article VIII, Parent shall indemnify, defend and hold the Target Shareholders
and their respective agents, attorneys, representatives, successors and permitted assigns
(each, a “Target Indemnified Party”, and, collectively, the “Target Indemnified
Parties”) harmless from and against any and all Losses, whether or not resulting or
involving a Third Party Claim (as defined in Section 8.3) by reason of or resulting
from (i) a breach of any representation, warranty, covenant or agreement of Parent or Merger
Sub contained in this Agreement (in each case, as such representation or warranty would read
if all qualifications as to materiality, including each reference to the defined term “Parent
Material Adverse Effect,” were deleted therefrom) or in any document, schedule, certificate
or other document or instrument executed or delivered by them in connection with this
Agreement, or (ii) the failure of Parent or Merger Sub duly to perform or observe any term,
provision, covenant or agreement to be performed or observed by them pursuant to this
Agreement or in any document, schedule, certificate or other document or instrument executed
or delivered in connection with this Agreement; provided, however, that the
indemnification under this Section 8.1.2 shall be subject to the limitations
contained in Section 8.6.

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     Section 8.2 Sole Remedy. The parties hereby acknowledge and agree that their sole and
exclusive remedy with respect to any and all claims (other than Tax Claims) relating to the subject
matter of this Agreement (other than a claim for fraud or for specific performance of the terms of
this Agreement) shall be pursuant to the indemnification provisions set forth in this Article
VIII.

     Section 8.3 Indemnification Procedures. In the event that any claim, liability, demand,
assessment, action, suit or proceeding is asserted or instigated (each, a “Third Party
Claim”) by a third party against any Buyer Indemnified Party or Target Indemnified Party, and
such Third Party Claim may give rise to an indemnity claim against the Parent or Target
Shareholders under this Article VIII (except with respect to inquiries, claims,
assessments, audits or similar events with respect to Taxes, which shall be governed solely by the
provisions of Section 5.9), such Buyer Indemnified Party or Target Indemnified Party shall
promptly notify the Target Shareholders or the Parent, respectively, as the indemnifying party from
whom indemnity is sought, of such Third Party Claim; provided, however, that the failure to
so notify such indemnifying party shall not relieve the indemnifying party of its obligations
hereunder, except if and to the extent that the indemnifying party is actually and materially
prejudiced thereby. The indemnifying party shall have thirty (30) days after receipt of such
notice to assume the conduct and control, at their expense, of the defense of such Third Party
Claim if (i) the indemnifying party acknowledges its obligation to indemnify the indemnified party
for any Loss resulting from such Third Party Claim, (ii) the Third Party Claim does not seek to
impose any liability or obligation on any of the indemnified party other than for monetary damages,
(iii) the Third Party Claim does not relate to any indemnified party’s relationship with its
customers or employees, (iv) none of the indemnified parties has been advised by counsel that a
conflict exists between such indemnified party and the other indemnified parties in connection with
the defense of the relevant indemnification claim, (v) the indemnification claim does not relate to
or otherwise arise in connection with Taxes or any criminal or regulatory enforcement action and
(vi) the indemnifying party conduct the defense of the indemnification claim actively and
diligently. If the foregoing conditions are satisfied and the indemnifying party elects to assume
the conduct and control of the defense of any Third Party Claim, the indemnified party shall
cooperate with the indemnifying party in connection with such defense of such Third Party Claim and
the indemnifying party shall permit the indemnified party to participate in such defense through
counsel chosen by the indemnified party, provided that the fees and expenses of such counsel shall
be borne by the indemnified party, unless (x) the use of counsel chosen by the indemnified party or
parties to represent them would present such counsel with a conflict of interest, or (y) the
indemnified party shall have been advised by counsel that there may be legal defenses available to
it which are different from or in addition to those available to the indemnifying party, in which
case the fees and expenses of counsel chosen by the indemnified party shall be borne by the
indemnifying party. So long as the indemnifying party is contesting any Third Party Claim in good
faith and in a commercially reasonable manner, none of the indemnified parties shall pay or settle
any such claim. Notwithstanding the foregoing, the indemnified party shall have the right to pay
or settle any such claim, provided that in such event it shall waive any right to indemnity
therefor by the indemnifying party for such claim unless the indemnifying party shall have
consented to such payment or settlement, which consent shall not be unreasonably withheld,
conditioned or delayed. If (A) the conditions for the assumption by the indemnifying party for the
conduct and control of the settlement or defense of any Third Party Claim are not satisfied, (B)
the indemnifying party fail to contest any Third Party Claim actively

45

 

or diligently, or (C) the
indemnifying party does not notify the indemnified parties within thirty (30) days after the
receipt of the notice of a Third Party Claim of indemnity hereunder that they elect to undertake
the defense thereof, the indemnified parties shall have the right to assume the conduct and control
of the settlement or defense of such Third Party Claim but shall not thereby waive any right to
indemnity therefor pursuant to this Agreement. The indemnifying party shall not, except with the
consent of the indemnified party, enter into any settlement or compromise unless such settlement or
compromise (i) includes as an unconditional term thereof the giving by the Person or Persons
asserting such Third Party Claim to all Buyer Indemnified Parties or Target Indemnified Parties, as
applicable, of an unconditional release from all liability with respect to such Third Party Claim
or consent to entry of any judgment, (ii) provides for money damages as the sole relief for the
applicable third party claimant, and (iii)
involves no finding or admission of any violation of any applicable Law or the rights of any Person
and no effect on any other claims that may be made against the indemnified party.

     Section 8.4 Effect on Purchase Price. Any payment made under this Article VIII
shall constitute an adjustment to the Merger Consideration for all purposes, including federal,
state and local Tax as well as financial accounting purposes, unless otherwise required by
applicable Law.

     Section 8.5 Survival of Representations, Warranties and Agreements. The representations
and warranties of Parent and Merger Sub contained in this Agreement and in any document, any
schedule, certificate or other document or instrument executed or delivered in connection with this
Agreement (the “Parent Representations and Warranties”) and the liability of the Parent and
Merger Sub for breaches thereof shall survive the consummation of the transactions contemplated
hereby for a period of five (5) years from the Closing; provided, however, that the
representations and warranties of Parent and Merger Sub in Section 4.1, Section
4.2, Section 4.3, and Section 4.4, shall survive the Closing indefinitely. The
representations and warranties of Target and the Target Shareholders contained in this Agreement
and in any document, any schedule, certificate or other document or instrument executed or
delivered in connection with this Agreement (the “Target Representations and Warranties”)
and the liability of the Target Shareholders for breaches thereof shall survive the consummation of
the transactions contemplated hereby for a period of five (5) years from the Closing; provided,
however, that the (i) the representations and warranties of Target and the Target Shareholders
in Section 3.1, Section 3.2, Section 3.4, Section 3.6, Section
3.8 and Section 3.9 shall survive the Closing indefinitely, and (ii) the
representations and warranties of Target stated in Section 3.13, Section 3.16,
Section 3.18, Section 3.19, Section 3.20, Section 3.22, Section
3.27 and Section 3.28 shall survive the consummation of the transactions contemplated
hereby until the 30th day following the expiration of the statute of limitations respectively
applicable to such matters (collectively, such referenced representations and warranties in clauses
(i), and (ii) being referred to herein as the “Fundamental Representations”). Any claim
for indemnification with respect to any Parent Representation or Warranty or Target Representation
or Warranty under which a Buyer Indemnified Party or Target Indemnified Party may have a right to
indemnification, but shall not have delivered a notice of a claim on or prior to the respective
expiration date shall be irrevocably and unconditionally released and waived. Notwithstanding the
foregoing, in all instances that, with respect to any Representation or Warranty under which a
Buyer Indemnified Party or Target Indemnified Party may have a right to indemnification, and shall
have delivered a notice of a claim prior to the respective expiration

46

 

date for the survival of such
Buyer Representation or Warranty or Target Representation or Warranty as set forth in this
Section 8.5 and as to which such claim has not been completely and finally resolved prior
to such termination date, such Buyer Representation or Warranty or Target Representation or
Warranty shall survive for purposes of such claim for the period of time beyond such survival
period sufficient to resolve, completely and finally, the claim relating to such Buyer
Representation or Warranty or Target Representation or Warranty in accordance with the terms of
this Agreement. The other covenants and agreements of Parent, Merger Sub, Target and the Target
Shareholders contained herein shall survive the Closing in accordance with their terms.

     Section 8.6 Limitations of Liability.

     Section 8.6.1 The Target Shareholders will not be obligated to indemnify the Buyer
Indemnified Parties with respect to any claim or Loss arising under Section 8.1.1
unless and until the aggregate amount of all such claims and Losses exceeds $50,000 and in
such event, such claims shall be payable from the first dollar. The aggregate limitation on
all claims of the Buyer Indemnified Parties with respect to any claim or Loss arising under
Section 8.1.1 shall be the Merger Consideration.

     Section 8.6.2 The Parent will not be obligated to indemnify the Target Indemnified
Parties with respect to any claims and Losses arising under Section 8.1.2 unless and
until the aggregate amount of all such claims and Losses exceeds $50,000 and in such event,
such claims shall be payable from the first dollar. The aggregate limitation on all claims
of the Target Indemnified Parties with respect to any claim or Loss arising under Section
8.1.2 shall be the Merger Consideration.

Article IX.

General Provisions

     Section 9.1 Notices. All notices and other communications given or made pursuant to this
Agreement must be in writing and will be deemed to have been duly given upon (a) personal delivery
by hand; (b) a transmitter’s confirmation of receipt of a facsimile transmission; (c) the next
business day following deposit with a nationally recognized overnight courier; or (d) the
expiration of five business days after the date mailed by registered or certified mail (postage
prepaid, return receipt requested), to the parties at the following addresses or at such other
address as such party may have specified by written notice given pursuant to this provision:

     If to Parent or Merger Sub, to:

RHA Anadarko, LLC,

3555 N.W. 58th Street, Suite 700

Oklahoma City, Oklahoma 73112

Attn: Michael R. Shuster

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     with a copy (which will not constitute notice) to:

Kirkpatrick & Lockhart, Preston Gates Ellis, LLP

1717 Main Street, Suite 2800

Dallas, Texas 75201

Attention: I. Bobby Majumder, Esq.

Facsimile: (214) 939-5849

and

Brown & Roberts, P.C.

50 Penn Place, Suite 420

1900 NW Expressway

Oklahoma City, Oklahoma 73118

Attn: Shawn Roberts, Esq.

Facsimile: (405) 843-7409

     If to Target, to:

Southern Plains Medical Center, Inc.

2222 W. Iowa Ave.

Chickasha, Oklahoma 73018

Attn: Gary Gaspard

     with a copy (which will not constitute notice) to:

Frailey, Chaffin, Cordell, Perryman, Sterkel & McCalla LLP

201 N. 4th Street

Chickasha, Oklahoma 73018

Attn: David L. Perryman, Esq.

Facsimile: (405) 222-2319

If to Target Shareholders, to (notice to whom will constitute notice to all Target
Shareholders):

Dr. James Edwin Freed

Rt 2 Box 167

Chickasha Oklahoma 73018

     with a copy (which will not constitute notice) to:

Frailey, Chaffin, Cordell, Perryman, Sterkel & McCalla LLP

201 N. 4th Street

Chickasha, Oklahoma 73018

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Attn: David L. Perryman, Esq.

Facsimile: (405) 222-2319

     Section 9.2 Accounting Terms. All accounting terms not specifically defined in this
Agreement shall be construed in accordance with GAAP consistently applied.

     Section 9.3 Construction and Interpretation. When a reference is made in this Agreement to
a section, article, paragraph, exhibit or schedule, such reference is to the indicated section,
article, paragraph, exhibit or schedule of or to this Agreement, unless otherwise specified or
unless the context clearly requires otherwise. Whenever the word “include,” “includes” or
“including” is used in this Agreement it shall be deemed to be followed by the words “without
limitation” and shall not be deemed to constitute a limitation of any term or provision contained
herein. The words “hereof,” “herein,” “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement. The term “or” shall not be interpreted as excluding any of the items
described. The singular or plural of any defined term shall have a meaning correlative to such
defined term, and words denoting any gender shall include all genders and the neuter. Where a word
or phrase is defined herein, each of its other grammatical forms shall have a
corresponding meaning. A reference to any party to this Agreement or any other agreement or
document shall include such party’s successors and permitted assigns. A reference to any
legislation or to any provision of any legislation shall include any modification, amendment or
re-enactment thereof, any legislative provision substituted therefor and all rules, regulations and
statutory instruments promulgated thereunder or pursuant thereto. The language in all parts of
this Agreement shall be interpreted and construed, in all cases, according to its fair meaning and
not for or against any party hereto. Each party acknowledges that it and its legal counsel have
reviewed and revised this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party will not be employed in the
interpretation of this Agreement. Each provision of this Agreement will be given full separate and
independent effect. Although the same or similar subject matters may be addressed in different
provisions of this Agreement, the parties intend that, except as expressly provided in this
Agreement, each such provision be read separately, be given independent significance and not be
construed as limiting any other provision in this Agreement (whether or not more general or more
specific in scope, substance or context). No prior draft of this Agreement or any course of
performance or course of dealing will be used in the interpretation or construction of this
Agreement.

     Section 9.4 Descriptive Headings. The article and section headings and the table of
contents contained in this Agreement are solely for the purpose of reference, are not part of the
agreement of the parties and shall not in any way affect the meaning or interpretation of this
Agreement.

     Section 9.5 Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
each of which shall remain in full force and effect, so long as the economic or legal substance of
the transactions contemplated by this Agreement is not affected in a manner materially adverse to
any party. If the final judgment of a court of competent jurisdiction or other authority declares
that any term or provision hereof is invalid, void or unenforceable, the

49

 

parties shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled
to the extent possible. If the parties cannot agree upon such a modification within a reasonable
time, the parties agree that the court or authority making such determination shall have the power
to and shall, subject to the discretion of such court, reduce the scope, duration, area or
applicability of such term or provision to delete specific words or phrases, or to replace any
invalid, void or unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid, void or
unenforceable term or provision.

     Section 9.6 Entire Agreement. This Agreement (together with the exhibits hereto and any
other documents, schedules and/or exhibits delivered pursuant hereto) contains the entire
understanding of the parties relating to the subject matter hereof and upon execution hereof
supersedes and voids ab initio all prior written or oral agreements and understandings and all
contemporaneous oral agreements and understandings in any way relating directly or indirectly to
the subject matter hereof in their entirety for all purposes, and at no time after the execution
hereof shall any party to such actual or claimed prior written or oral or contemporaneous oral
agreements be liable for any resurrection, recovery, reconstitution or revival of such actual or
claimed agreements. The exhibits and
recitals to this Agreement are hereby incorporated by reference into and made a part of this
Agreement for all purposes.

     Section 9.7 Assignment; Binding Effect. Neither this Agreement nor any of the rights,
interests or obligations hereunder may be assigned or delegated by any of the parties hereto
(whether by operation of Law or otherwise) without the prior written consent of the other parties.
Subject to the preceding sentence, this Agreement will be binding upon and will inure to the
benefit of the parties hereto and their respective successors and permitted assigns.
Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement,
expressed or implied, is intended to confer on any Person other than the parties or their
respective successors and permitted assigns any rights, benefits, remedies, obligations or
liabilities under or by reason of this Agreement.

     Section 9.8 Enforcement. The parties hereby acknowledge and agree that the failure of any
party to perform its agreements and covenants hereunder in accordance with their specific terms,
including its failure to take all required actions on its part necessary to consummate the Merger
and the other transactions contemplated hereby, will cause irreparable injury to the other parties
for which damages, even if available, will not be an adequate remedy. Accordingly, each party
hereby consents (a) to the issuance of injunctive relief by any court of competent jurisdiction to
compel performance of such party’s obligations and to prevent breaches of this Agreement; and (b)
to the granting by any court of competent jurisdiction of the remedy of specific performance of its
obligations hereunder, this being in addition to any other remedy to which such party is entitled
at law or in equity. Unless otherwise expressly stated in this Agreement, no right or remedy
described or provided in this Agreement or otherwise conferred upon or reserved to any party is
intended to be exclusive or to preclude a party from pursuing other rights and remedies to the
extent available under this Agreement, at law or in equity, and the same will be distinct, separate
and cumulative and may be exercised from time to time as often as occasion may arise or as such
party may deem expedient. If any party to this Agreement seeks to enforce its rights under this
Agreement and attorneys’ fees or other costs are incurred to

50

 

secure performance of any obligations
hereunder, or to establish damages for the breach thereof or to obtain any other appropriate
relief, or to defend against any of the foregoing actions, the prevailing party will be entitled to
recover all costs and expenses incurred in connection therewith, including without limitation all
reasonable attorneys’ fees.

     Section 9.9 GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF OKLAHOMA, WITHOUT GIVING EFFECT
TO ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT RESULT IN THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

     Section 9.10 Consent to Jurisdiction. Each of the parties hereto (a) consents to submit
itself to the personal jurisdiction of any federal, state or local court located in Grady County,
Oklahoma and the U.S. District Courts for the Western District of Oklahoma (and any court to which
an appeal may be made from such courts) in the event any dispute arises out of this Agreement or
any of the transactions contemplated hereby; (b) agrees that it will not attempt to deny or defeat
such personal jurisdiction by motion or other request for leave from any such court; and (c) agrees
that it will not bring any action relating to the Merger, the Closing, this Agreement or the
performance of any duties or
transactions contemplated hereby in any court other than a federal, state or local court sitting in
Grady County, Oklahoma or the U.S. District Courts for the Western District of Oklahoma.

     Section 9.11 Jury Trial Waiver. The parties hereby agree to waive any right to trial by
jury with respect to any action or proceeding brought by any party relating to (a) this Agreement
or any understandings or prior dealings between the parties hereto; (b) the Merger; or (c) any
transaction or other matter contemplated by, or related to, this Agreement or the Merger. The
parties hereby acknowledge and agree that this Agreement constitutes a written consent to waiver of
trial by jury pursuant to Oklahoma law or any other applicable state statutes.

     Section 9.12 Counterparts. This Agreement may be executed in one or more counterparts
(including by facsimile or portable document format (.pdf)) for the convenience of the parties
hereto, each of which will be deemed an original, but all of which together will constitute one and
the same instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

51

 

     IN WITNESS WHEREOF, Parent, Merger Sub, Target and each Target Shareholder have caused this
Agreement to be executed as of the date first written above by their respective officers thereunto
duly authorized.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	PARENT:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	RHA Anadarko, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Rural Health Acquisition, LLC
	 	 	 	 	as Manager of RHA Anadarko, LLC
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Michael R. Schuster,	 	 	 	 
	 

	 	 	 	 	 	an individual, as Manager of Rural	 	 	 	 
	 

	 	 	 	 	 	Health Acquisition, LLC	 	 	 	 

	 	 	 	 	 	 	 
	 	 	MERGER SUB:  
	 
	 	 	 	 	 	 
	 	 	SPMC Acquisition Corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	David Hirschhorn	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	TARGET:
	 
	 	 	 	 	 	 
	 	 	Southern Plains Medical Center, Inc.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SHAREHOLDERS OF SOUTHERN PLAINS
MEDICAL CENTER, INC.:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Jay Carroll Belt	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Mitchell Dean Coppedge	 	 

[Signature Page to Agreement and Plan of Merger] 

 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Nancy Winfield Dever	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Marian Pilar Escobar	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. James Edwin Freed	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. John Rathmann Gearhart	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Virginia Louise Harr	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Donald Frank Haslam	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Linda Mae Johnson	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Karen Sue Maluf	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Trudy Jane Moore	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Ervin Ronald Orr	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Ian St. George Thompson	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Lee Vanderlugt	 	 

[Signature Page to Agreement and Plan of Merger] 

 

Schedules to Agreement and Plan of Merger

Schedule 3.4.1 — Equity Interest in Target

Schedule 3.5 — Target Subsidiaries

Schedule 3.6.1 — Assets of Target

Schedule 3.6.2 — Assets owned by Target Shareholders

Schedule 3.6.3 — Liens of Target

Schedule 3.9 — Governmental Authorization

Schedule 3.10 — Financial Statements of Target

Schedule 3.11.2 — Long-Term and Short-Term Liabilities of Target

Schedule 3.11.3 — Liabilities to shareholders

Schedule 3.14 — Litigation Related to Target

Schedule 3.16 — Licenses of Target

Schedule 3.17 — Payors of Target

Schedule 3.19.3.1 — Payor Source Programs

Schedule 3.19.3.2 — Challenges tp Payor Source Program Claim determinations

Schedule 3.20.1 — Environmental exceptions

Schedule 3.21 — Target Employees

Schedule 3.22.1 — Employee Benefit Plans

Schedule 3.22.4 — Employee Benefit Plans maintained/contributed to by Target

Schedule 3.23.1 — Material Contracts

Schedule 3.23.3 — Material Contracts Requiring 3rd Party Consent

Schedule 3.24 — Intellectual Property

Schedule 3.25 — Potentially Competing Interests

Schedule 3.28 — Insurance

Schedule 3.30 — List of Accredited Investors

Schedule 5.13.1 — Other Employee Agreements

Schedule 6.4 — Rose Rock Bank Liabilities

 

 

Exhibit A

Target Shareholders

Belt, Jay Carroll

Coppedge, Mitchell Dean

Dever, Nancy Winfield

Freed, James Edwin

Gearhart, John Rathmann

Harr, Virginia Louise

Haslam, Donald Frank

Johnson, Linda Mae

Maluf, Karen Sue

Moore, Trudy Jane

Orr, Ervin Ronald

Thompson, Ian St. George

Vander Lugt, Lee

 

 

Exhibit B

Certificate of Merger

 

 

CERTIFICATE OF MERGER

OF

DOMESTIC NONSURVIVING CORPORATION

INTO

DOMESTIC SURVIVING CORPORATION

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

     The undersigned corporation, Domestic Surviving Corporation, an Oklahoma corporation, hereby
certifies:

	1.	 	The name and state of incorporation of each of the constituent corporations are as
follows:

	 	 	 	 	 
	Identity	 	Name of Corporation	 	State of Incorporation
	Domestic Surviving 

Corporation

	 	Southern Plains Medical
Center, Inc.
	 	Oklahoma
	 
	 	 	 	 
	Domestic Non-Surviving 

Corporation

	 	SPMC Acquisition

Corporation
	 	Oklahoma

	2.	 	An Agreement and Plan of Merger has been approved, adopted, certified, executed and
acknowledged by Domestic Surviving Corporation and Domestic Non-Surviving Corporation in
accordance with the provisions of Section 1081 of the Oklahoma General Corporation Act (the
“Act”).

	3.	 	The name of the surviving corporation is: Southern Plains Medical Center, Inc.

	4.	 	The Certificate of Incorporation of the surviving corporation shall be the Certificate
of Incorporation of the Domestic Non-Surviving Corporation in effect immediately prior to
the merger, which is amended to read as set forth on Exhibit A attached hereto.

	5.	 	The executed Agreement and Plan of Merger is on file at the principal place of business
of Domestic Surviving Corporation at 2222 W. Iowa Ave.Chickasha, Oklahoma 73018.

1

 

	6.	 	A copy of the Agreement and Plan of Merger will be furnished by Domestic Surviving
Corporation, on request and without cost, to any shareholder of Domestic Surviving
Corporation or Domestic Non-Surviving Corporation.

     IN WITNESS WHEREOF, Domestic Surviving Corporation, an Oklahoma corporation, as the surviving
corporation, has caused this Certificate of Merger to be executed in its name by its authorized
officers this day of                     ,                                          2008, to be effective on its filing date as of
on the                     day of                                          , 2008, as authorized by Section 1007.D of the Act.

Southern Plains Medical Center, Inc.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	 	 	 
	Secretary of Domestic Surviving Corporation	 	 

2

 

Exhibit C

Escrow Agreement

 

ESCROW AGREEMENT

     This Escrow Agreement, dated as of the effective date (the “Effective Date”) set forth on
Schedule 1, by and among RHA Anadarko, LLC, an Oklahoma limited liability company (together
with any successor, “Parent”), SPMC Acquisition Company, an Oklahoma corporation and a wholly owned
subsidiary of Parent (“Merger Sub”), Southern Plains Medical Center, Inc., an Oklahoma corporation
(“Target”), each of the shareholders of Target (each a “Target Shareholder” and, collectively, the
“Target Shareholders”) and Compass Bank, with its principal offices in Birmingham, Jefferson
County, Alabama, as escrow agent hereunder (the “Escrow Agent”), is being entered into in
connection with that certain Agreement and Plan of Merger, (the “Merger Agreement”), by and among
Parent, Merger Sub, Target, and the Target Shareholders. Capitalized terms used but not defined
herein shall have the respective meanings ascribed to such terms in the Merger Agreement. At the
Effective Time of the Merger, and in accordance with the OGCA, Merger Sub shall be merged with and
into Target. As a result of the Merger, the separate corporate existence of Merger Sub shall cease
and Target shall continue as the surviving corporation of the Merger (the “Surviving Corporation”).

WHEREAS, pursuant to the Merger Agreement, Parent, Merger Sub, Target and the Target Shareholders
have agreed to deposit in escrow certain funds and shares of TIGroup Common Stock and wish such
deposit to be subject to the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth,
the parties hereto agree as follows:

1 Appointments. Parent, Merger Sub, Target, and the Target Shareholders hereby appoint the Escrow
Agent as their escrow agent for the purposes set forth herein, and the Escrow Agent hereby accepts
such appointment under the terms and conditions set forth herein. The Target Shareholders hereby
appoint Dr. James Edwin Freed to act as their duly appointed representative (the “Target
Shareholders Representative”) to act on their behalf as set forth herein and the Target
Shareholders’ Representative hereby accepts such appointment.

2. Escrow Fund. Pursuant to Section 2.2.1 of the Merger Agreement, at or within a reasonable time
after the Closing, Merger Sub shall deposit with the Escrow Agent (i) an amount of aggregate Cash
Merger Consideration equal to $490,000 (the “Initial Escrowed Cash Amount”) and (ii) 787,500 shares
of Stock Merger Consideration (the “Escrowed TIGroup Common Stock” and, together with the Initial
Escrowed Cash Amount, the “Initial Escrow Deposit”). In addition, from time to time after the
Closing Date, Parent and/or the Surviving Corporation also shall deposit with the Escrow Agent
additional amounts of cash, as necessary, so that, immediately after each Escrowed Cash
Distribution Date (as defined below), the aggregate amount of cash deposited with the Escrow Agent
is equal to the product of (1) fifty percent (50%) and (2) the difference between (x) the Total
Deferred Cash Merger Consideration amount (i.e., $980,000) that is due and payable to the Target
Shareholders as of the relevant determination date (as adjusted for the amount of Total Deferred
Cash Merger Consideration that was due, but is no longer payable, to Target Shareholders who are no
longer Eligible Target

 

 

Shareholders as of such determination date), and (2) the aggregate amount of Total Deferred Cash
Merger Consideration that has been distributed to the Target Shareholders (or deemed to distributed
to the Target Shareholders under Section 5 of this Escrow Agreement) previously under Section 3 (or
Section 5) of this Escrow Agreement (collectively, the “Additional Escrowed Cash Amounts”);
provided, however, that, under no circumstances shall Parent and/or the Surviving
Corporation fail to make deposits of Additional Escrowed Cash Amounts that are less than the
aggregate amount of Total Cash Merger Consideration that is due to be distributed on the next
Escrowed Cash Distribution Date (as defined below). The Escrow Agent shall hold the Initial Escrow
Deposit and any Additional Escrowed Cash Amounts, and, subject to the terms and conditions hereof,
shall invest and reinvest the Initial Escrowed Cash Amount and any Additional Escrowed Cash Amounts
and the proceeds thereof (collectively, and together with the Escrowed TIGroup Common Stock, the
“Escrow Fund”) as directed in Section 4 below.

3. Distribution of the Escrow Fund. Subject to the terms of this Escrow Agreement: (i) ninety (90)
days after the Closing and at the end of each of the next eleven (11) ninety (90) day periods
thereafter (each an “Escrowed Cash Distribution Date”), the Escrow Agent shall distribute to each
Eligible Target Shareholder the product (1) one twelfth (1/12), (2) the relevant Target
Shareholder’s Total Percentage (as set forth on Schedule 3) and (3) the Total Deferred Cash
Merger Consideration, (ii) on each anniversary of the Closing Date (up to, and including, the fifth
(5th) anniversary of the Closing Date), the Escrow Agent shall distribute to each
Eligible Target Shareholder, a number of shares of Escrowed TIGroup Common Stock equal to the
product (1) fifteen percent (15%), (2) the number of shares of Escrowed TIGroup Common Stock that
are allocable to such Target Shareholder (as set forth on Schedule 3); provided,
however, that (x) the Escrow Fund shall serve as the first source (but shall not be the
exclusive source) of funds for any indemnity obligations of the Target Shareholders to any Buyer
Indemnified Party under Section 5.9 and/or Article VIII of the Merger Agreement, (y) upon receiving
notice from Parent that a Target Shareholder is no longer an Eligible Target Shareholder, the
Escrow Agent shall distribute to Parent any portion of the Escrow Fund that is allocable (as of the
relevant determination date) to such Target Shareholder, and (z) any amounts remaining in the
Escrow Fund after the fifth (5th) anniversary of the Closing Date shall be disbursed in
accordance with the terms of this Escrow Agreement, and (iii) on each Escrowed Cash Distribution
Date, the Escrow Agent shall distribute to Surviving Corporation the accrued interest and other
earnings thereon that have accrued in respect to the Escrow Fund. Escrow agent shall be entitled
to rely on Parent’s prior written notices to determine which Target Shareholders are Eligible
Target Shareholders at the time of a distribution hereunder.

4. Investment of Escrow Fund. During the term of this Escrow Agreement, the Initial Escrowed Cash
Amount and any Additional Escrowed Cash Amounts shall be invested and reinvested by the Escrow
Agent in Goldman Sachs Financial Square Tax-Free Money Market Service Class Shares or such other
investments as shall be directed in writing by Parent and as shall be acceptable to the Escrow
Agent. The accrued interest and other earnings thereon earned from the Effective Date will be the
property of the Surviving Corporation. Periodic statements will be provided to Parent and the
Target Shareholders’ Representative reflecting transactions executed on behalf of the Escrow Fund.
Parent and the Target Shareholders’ Representative, upon written request, will receive a statement
of transaction details upon completion of any

2

 

securities transaction in the Escrow Fund without any additional cost. The Escrow Agent shall have
the right to liquidate any investments held in the Escrow Fund in order to provide funds necessary
to make any required payments under this Escrow Agreement. Subject to Section 7 and Section 10,
the Escrow Agent shall have no liability for any loss sustained as a result of any investment in
Goldman Sachs Financial Square Tax-Free Money Market Service Class Shares or any investment made
pursuant to the written instructions of Parent or as a result of any liquidation of any investment
prior to its maturity or for the failure of the parties to give the Escrow Agent instructions to
invest or reinvest the Escrow Fund.

Unless Escrow Agent is otherwise directed in such written instructions, Escrow Agent may use a
broker-dealer of its own selection, including a broker-dealer owned by or affiliated with Escrow
Agent or any of its affiliates. It is expressly agreed and understood by the parties hereto that
Escrow Agent shall not in any way whatsoever be liable for losses on any investments, including,
but not limited to, losses from market risks due to premature liquidation or resulting from other
actions taken pursuant to this Escrow Agreement.

Orders for the purchase or sale of any security which are received by Escrow Agent before the
published trade deadline then in effect will ordinarily be executed that day. Orders for the
purchase or sale of any security which are received by Escrow Agent after the published trade
deadline then in effect will ordinarily be executed the following business day.

Receipt, investment, and reinvestment of the Escrow Fund shall be confirmed by Escrow Agent as soon
as practical by account statement, and any discrepancies in any such account statement shall be
noted by the Target Shareholders’ Representative to Escrow Agent within thirty (30) calendar days
after receipt thereof. Failure to inform Escrow Agent in writing of any discrepancies in any such
account statement within said thirty (30) day period shall conclusively be deemed confirmation of
such account statement in its entirety. For purposes of this paragraph, each account statement
shall be deemed to have been received by the party to whom directed on the earlier to occur of (i)
actual receipt thereof, or (ii) three (3) “Business Days” (hereinafter defined) after the deposit
thereof in the United States Mail, postage prepaid. The term “Business Day” shall mean any day of
the year, excluding Saturday, Sunday, and any other day on which national or state chartered banks
are required or authorized to close in Dallas, Texas.

5. Indemnity Claim Disbursements. Escrow Agent is hereby authorized to make disbursements of the
Escrow Fund as follows:

(a) If, at any time prior to the Indemnification Escrow Termination Date, Parent, either for itself
or on behalf of any Buyer Indemnified Party, shall deliver to the Escrow Agent two counterparts of
a certificate, each signed by an authorized officer of Parent and by Target Shareholders’
Representative and otherwise in form and substance satisfactory to Escrow Agent (any such
certificate being a “Mutual Certificate”), which Mutual Certificate shall state that the relevant
Buyer Indemnified Party is entitled to an Indemnity Payment (as defined below) pursuant to Section
5.9 and/or Article VIII of the Merger Agreement (a “Claim”), then the Escrow Agent shall, promptly
upon receipt of such Mutual Certificate, release the amount of the

3

 

Claim thereof to the relevant Buyer Indemnified Party in accordance with the instructions set forth
in the Mutual Certificate. For the purpose of this Escrow Agreement, “Indemnity Payment” shall mean
any Taxes, Losses or other amounts for which such Buyer Indemnified Party is entitled to
indemnification as a result of a matter giving rise to an indemnity obligation of the Target
Shareholders under, and in accordance with the provisions of, Section 5.9 and/or Article VIII of
the Merger Agreement.

(b) If, at any time prior to the termination of this Escrow Agreement, Parent, either for itself or
on behalf of any Buyer Indemnified Party, shall deliver to the Escrow Agent an instruction letter
(i) directing the distribution of amounts from the Escrow Fund and indicating that such
distribution is to be made in connection with the resolution of a dispute regarding a Claim under
the Merger Agreement and (ii) accompanied by a copy of a final, non-appealable order of a court of
competent jurisdiction resolving such Claim, then the Escrow Agent shall, promptly upon receipt of
such letter, release such amounts as directed in such letter to the extent necessary to satisfy
such Claim.

(c) Into the registry of the court in accordance with Sections 8 and/or 17 hereof.

(d) In the event that Parent, either for itself or on behalf of any Buyer Indemnified Party,
delivers to the Escrow Agent written notice of a pending Claim, the Escrow Agent will reduce the
distributions to the Eligible Target Shareholders under Section 3 pro-rata in a total amount equal
to the potential Indemnity Payment identified by Parent in its notice, and maintain such amounts in
the Escrow Fund until such time as one of conditions for release set forth in Sections 5(a) — (c)
is satisfied.

(e) To the extent that anything in this Section 5 requires the Escrow Agent to make less than the
distribution of the Escrowed TIGroup Common Stock contemplated in Section 3(ii) on any anniversary
of the Closing Date, the parties will cooperate to provide for the issuance of a certificate
representing the Escrowed TIGroup Common Stock actually distributable to the Eligible Target
Shareholder in accordance with Section 19.

Buyer and Seller agree and acknowledge that the terms of this Section 5 are intended to fulfill the
terms of the Merger Agreement, including without limitation, the indemnification provisions the
Merger Agreement.

For purposes of this Escrow Agreement: (i) the “Indemnification Escrow Termination Date” shall
mean the fifth (5th) anniversary of the Effective Date.

Any cash or TIGroup Common Stock that is distributed by the Escrow Agent to (i) Parent and/or any
other Buyer Indemnified Party under this Section 5, or (ii) the Escrow Agent under Section 9 or
Section 10 of this Escrow Agreement, shall, in each case, be deemed to have been distributed to the
Target Shareholders for purposes of Section 2 and Section 3 of this Escrow Agreement.

6. Release of Escrow Fund; Termination of Escrow. On the Indemnification Escrow Termination Date,
the Escrow Agent shall distribute the then-remaining balance, if any, of the

4

 

Escrow Fund, plus all accrued interest and other earnings thereon earned from the Effective Date to
the date of such distribution, in accordance with instructions delivered to the Escrow Agent,
consisting of two counterparts of a certificate, each signed by an authorized officer of Parent and
by Target Shareholders’ Representative and otherwise in form and substance satisfactory to Escrow
Agent, which shall state the amounts to be distributed and the persons to which such amounts will
be distributed.. Any Open Claim Amounts shall be subject to this Escrow Agreement and shall remain
in Escrow until instructions are delivered to the Escrow Agent in accordance with Section 5. For
purposes of this Escrow Agreement: “Open Claim Amounts” shall mean the aggregate dollar amount of
the Escrow Fund, if any, which is the subject of one or more pending claims by a Buyer Indemnified
Party under the indemnification provisions the Merger Agreement.. This Agreement shall terminate
when there are no funds remaining to be distributed hereunder.

7. Escrow Agent’s Duties. Escrow Agent’s duties and responsibilities in connection with this
Escrow Agreement shall be purely ministerial and shall be limited to those expressly set forth in
this Escrow Agreement. Escrow Agent is not a principal, participant, or beneficiary in any
transaction underlying this Escrow Agreement and shall have no duty to inquire beyond the terms and
provisions of the Escrow Agreement except as specifically provided herein. Escrow Agent shall have
no responsibility or obligation of any kind in connection with this Escrow Agreement or the Escrow
Fund, and shall not be required to deliver the Escrow Fund or any part thereof, or take any action
with respect to any matters that might arise in connection therewith, other than to receive, hold,
invest, reinvest, and deliver the Escrow Fund as herein provided. Without limiting the generality
of the foregoing, it is hereby expressly agreed and stipulated by the parties hereto that Escrow
Agent shall not be required to exercise any discretion hereunder and shall have no investment or
management responsibility and, accordingly, shall have no duty to, or liability for its failure to,
provide investment recommendations or investment advice to Parent, Merger Sub, Target, the Target
Shareholders, or any of them. Escrow Agent shall not be liable for any error in judgment, any act
or omission, any mistake of law or fact, or for anything it may do or refrain from doing in
connection herewith, subject, however, as provided below, its own willful misconduct or gross
negligence. It is the intention of the parties hereto that Escrow Agent shall not be required to
use, advance, or risk its own funds or otherwise incur financial liability in the performance of
any of its duties or the exercise of any of its rights and powers hereunder. The Escrow Agent
undertakes to perform only such duties as are expressly set forth herein and no duties shall be
implied. The Escrow Agent shall have no liability under and no duty to inquire as to the
provisions of any agreement other than this Escrow Agreement. The Escrow Agent may rely upon and
shall not be liable for acting or refraining from acting upon any written notice, instruction or
request furnished to it hereunder and believed by it to be genuine and to have been signed or
presented by the proper party or parties. The Escrow Agent shall be under no duty to inquire into
or investigate the validity, accuracy or content of any such document. The Escrow Agent shall have
no duty to solicit any payments which may be due it or the Escrow Fund. The Escrow Agent shall not
be liable for any action taken or omitted by it in good faith except to the extent that a court of
competent jurisdiction determines that the Escrow Agent’s gross negligence or willful misconduct
was the cause of any loss to Parent, Target, the Target Shareholders’ Representative or any of the
Target Shareholders. The Escrow Agent may execute any of its powers and perform any of its duties
hereunder directly or through agents or

5

 

attorneys (and shall be liable only for the careful selection of any such agent or attorney) and
may consult with counsel, accountants and other skilled persons to be selected and retained by it.
The Escrow Agent shall not be liable for anything done, suffered or omitted in good faith by it in
accordance with the advice or opinion of any such counsel, accountants or other skilled persons.
In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder or shall
receive instructions, claims or demands from any party hereto which, in its opinion, conflict with
any of the provisions of this Escrow Agreement, it shall be entitled to refrain from taking any
action and its sole obligation shall be to keep safely all property held in escrow until it shall
be directed otherwise in writing by Parent and the Target Shareholders’ Representative or by a
final order or judgment of a court of competent jurisdiction. Anything in this Escrow Agreement to
the contrary notwithstanding, in no event shall the Escrow Agent be liable for any lost profits,
lost savings, or other special, exemplary, consequential, or incidental damages in excess of Escrow
Agent’s fee hereunder; and provided, further, however, that Escrow Agent shall have no liability
for any loss arising from any cause beyond its control, including, but not limited to, the
following: (a) acts of God, force majeure, including, without limitation, war (whether or not
declared or existing), revolution, insurrection, riot, civil commotion, accident, fire, explosion,
stoppage of labor, strikes or other differences with employees; (b) the act, failure, or neglect of
any other party or any agent or correspondent or any other person selected by Escrow Agent; (c) any
delay, error, omission, or default of any mail, courier, or telecopies operator; or (d) the acts or
edicts of any government or governmental agency or other group or entity exercising governmental
powers. Escrow Agent is not responsible or liable in any manner whatsoever for the sufficiency,
correctness, genuineness or validity of the subject matter of this Escrow Agreement and any part
hereof, for the transaction or transactions requiring or underlying the execution of this Escrow
Agreement or the form or execution hereof, or for the identity or authority of any person executing
this Escrow Agreement or any part hereof, or for depositing the Escrow Fund.

8. Succession. The Escrow Agent may resign and be discharged from its duties or obligations
hereunder by giving ten (10) days’ advance notice in writing of such resignation to the other
parties hereto specifying a date when such resignation shall take effect. Upon the effective date
of such resignation, Escrow Agent shall deliver the Escrow Fund to any substitute escrow agent
designated by Parent and Target Shareholder’s Representative in writing. If Parent and Target
Shareholder’s Representative fail to designate a substitute escrow agent within ten (10) days after
the resignation notice, Escrow Agent may institute a petition for interpleader. Escrow Agent’s
obligations hereunder shall cease and terminate after the resignation notice and Escrow Agent’s
sole responsibility after the resignation notice expires shall be to hold the Escrow Fund (without
any obligation to reinvest the same) and to deliver the same to a designated substitute escrow
agent, if any, or in accordance with the directions of a final order or judgment of a court of
competent jurisdiction. The Escrow Agent shall have the right to withhold an amount equal to any
amount due and owing to the Escrow Agent hereunder, plus, upon written notice to Parent and the
Target Shareholders’ Representative, any costs and expenses the Escrow Agent shall reasonably
believe may be incurred by the Escrow Agent in connection with the termination of this Escrow
Agreement. Any corporation or association unaffiliated with Parent or the Target Shareholders’
Representative into which the Escrow Agent may be merged or converted or with which it may be
consolidated, or any corporation or association to which all or substantially all the escrow
business of the Escrow Agent’s line of business may be

6

 

transferred, shall be the Escrow Agent under this Escrow Agreement without further act and without
modification to the terms and conditions of this Escrow Agreement.

9. Compensation and Reimbursement of Expenses. Escrow Agent shall charge for its services
hereunder in an amount equal to $10,000 per year and Escrow Agent shall be reimbursed for all
expenses incurred by Escrow Agent in connection with the performance of its duties and enforcement
of its rights hereunder and otherwise in connection with the preparation, operation, administration
and enforcement of this Escrow Agreement, including, without limitation, attorneys’ fees, brokerage
costs, and related expenses incurred by Escrow Agent. The Merger Sub and following the Effective
Time, the Surviving Corporation will (i) pay the Escrow Agent upon execution of this Escrow
Agreement and from time to time thereafter such compensation, and (ii) pay or reimburse the Escrow
Agent upon request for all expenses, disbursements and advances, including reasonable attorney’s
fees and expenses, incurred or made by it in connection with the preparation, execution,
performance, delivery, modification and termination of this Escrow Agreement. The Target
Shareholders, Target and Merger Sub hereby grant to Escrow Agent a lien upon, and security interest
in, all of its respective right, title, and interest in and to all of the Escrow Fund plus all
accrued interest and other earnings thereon as security for the payment and performance of its
obligations owing to Escrow Agent hereunder, including, without limitation, its respective
obligations of payment and reimbursement provided for hereunder, which lien and security interest
may be enforced by Escrow Agent without notice by charging and setting-off and paying from the
Escrow Fund any and all amounts then owing to it pursuant to this Escrow Agreement or by
appropriate foreclosure proceedings.

10. Indemnity. Parent, Target, the Merger Sub, and each of the Target Shareholders (on a joint and
several basis among the Target Shareholders) shall jointly and severally indemnify, defend and save
harmless the Escrow Agent and its directors, officers, agents and employees (the “indemnitees”)
from all loss, liability or expense (including the fees and expenses of outside counsel) arising
out of or in connection with (i) the Escrow Agent’s execution and performance of this Escrow
Agreement, or (ii) its following any written instructions or other written directions from Parent
or the Target Shareholders’ Representative. The parties acknowledge and agree that the foregoing
sentence shall not apply to the extent that such loss, liability or expense is due to the gross
negligence or willful misconduct of the applicable indemnitee, as determined by a court of
competent jurisdiction. The parties hereto acknowledge that the foregoing indemnities shall
survive the resignation or removal of the Escrow Agent or the termination of this Escrow Agreement.

11. Account Opening Information/TINs; Withholding.

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

For accounts opened in the US:

To help the government fight the funding of terrorism and money laundering activities, federal law
requires all financial institutions to obtain, verify, and record information that identifies each
person who opens an account. When an account is opened, we will ask for information that will
allow us to identify relevant parties.

7

 

TINs

Parent, Target, and the Target Shareholders each represent that the correct Taxpayer Identification
Number (“TIN”) assigned by the Internal Revenue Service (“IRS”) or any other taxing authority is
set forth in Schedule 1, in the case of Parent or Surviving Corporation or Schedule
3, in the case of the Target Shareholders. Upon execution of this Escrow Agreement, Surviving
Corporation and each of the Target Shareholders shall provide the Escrow Agent with a complete and
fully executed IRS Form W-9, as applicable, which shall include, respectively, Surviving
Corporation’s and the relevant Target Shareholder’s TIN. In addition, all interest or other income
earned under this Escrow Agreement shall be allocated and/or paid as set forth in Section 3(iii) or
as directed by Surviving Corporation and reported by the recipient to the Internal Revenue Service
or any other taxing authority. Notwithstanding such written directions, the Escrow Agent shall
report and, as required, withhold any taxes as it determines may be required by any law or
regulation in effect at the time of the distribution and shall remit such taxes to the appropriate
authorities. In the absence of timely direction, all proceeds of the Escrow Fund shall be retained
in the Escrow Fund and reinvested from time to time by the Escrow Agent as provided in Section 4
above. In the event that any earnings remain undistributed at the end of any calendar year, the
Escrow Agent shall report to the Internal Revenue Service or such other authority such earnings as
it deems appropriate or as required by any applicable law or regulation or, to the extent
consistent therewith, as directed in writing by Parent and/or Surviving Corporation.
Notwithstanding anything in this Escrow Agreement to the contrary, any and all payments made
pursuant to this Escrow Agreement shall be subject to applicable federal, state, foreign and local
tax withholdings, and any withheld amounts shall be treated for all purposes of this Escrow
Agreement as having been paid to the person with respect to which such withholding was made.

Inasmuch as all cash and property deposited in the Escrow Fund by Merger Sub, Parent or the
Surviving Corporation, as the case may be, represents part of the purchase price paid by Parent to
each Target Shareholder for their Target Common Stock under the Merger Agreement, each Target
Shareholder shall provide all information required for the Escrow Agent to perform the required
United States federal income tax reporting with respect thereto on IRS Form 1099-B on or prior to
each distribution of cash or TIGroup Common Stock under Section 3 or Section 6 of this Escrow
Agreement. Unless otherwise directed in a joint written instruction executed by the Target
Shareholders’ Representative and Purchaser, Escrow Agent shall report to the IRS and as appropriate
withhold and remit taxes to the IRS or to any other taxing authority as required by law based upon
the information or documentation so provided and when schedule and documentation is not properly
and timely provided prior to any distributions to the Target Shareholders. Escrow Agent shall be
entitled to rely on such information and documentation and shall not be responsible for and shall
be indemnified by the Target Shareholders for any additional tax, interest or penalty arising from
the inaccuracy or late receipt of such information or documentation.

Target Shareholders’ Representative, if reasonably requested by the Escrow Agent, shall provide
Escrow Agent on or before the Effective Date, and at appropriate times thereafter, including prior
to any disbursement, a detailed schedule indicating the allocation of the disbursement amount from
the Escrow Fund between (i) principal, (ii) imputed interest to be reported on IRS

8

 

Form 1099-INT or 1042S or (iii) Original Issue Discount (“OID”) to be reported on IRS Form
1099-OID, along with the relevant payee tax information, documentation, and proportionate interest
thereof. Escrow Agent shall report to the IRS and any other taxing authority as required by law
based upon the information so provided. Escrow Agent shall be entitled to rely on such information
provided by the Target Shareholders’ Representative and shall not be responsible for and shall be
indemnified by the Target Shareholders for any additional tax, interest or penalty arising from the
inaccuracy or late receipt of such information.

In addition, all interest or other income earned with respect to the Escrow Fund shall be allocated
to the Surviving Corporation and reported, as and to the extent required by law, by the Escrow
Agent to the IRS, or any other taxing authority, on IRS Form 1099 or 1042S (or other appropriate
form) as income earned from the Escrow Fund by the Surviving Corporation, whether or not such
income has been distributed to it. Any other tax returns required to be filed will be prepared and
filed by the Target Shareholders, Surviving Corporation and/or Parent with the IRS and any other
taxing authority as required by law. The Target Shareholders, Surviving Corporation and Parent
acknowledge and agree that Escrow Agent shall have no responsibility for the preparation and/or
filing of any tax return or withholding with respect to the Escrow Fund or any income earned by the
Escrow Fund. The Target, Merger Sub and Parent further acknowledge and agree that any taxes
payable from the income earned on the investment of any sums held in the Escrow Fund shall be paid
by the Surviving Corporation as required by law. Except as provided herein, in the absence of
written direction from the Surviving Corporation or Parent, all proceeds of the Escrow Fund shall
be retained in the Escrow Fund and reinvested from time to time by the Escrow Agent as provided in
this Agreement. Escrow Agent shall withhold any taxes it deems appropriate, including but not
limited to required withholding in the absence of proper tax documentation, and shall remit such
taxes to the appropriate authorities.

12. Notices. All communications hereunder shall be in writing and shall be deemed to be duly given
and received:

(i) upon delivery if delivered personally;

(ii) on the next Business Day (as defined below) if sent by overnight courier; or

(iii) four (4) Business Days after mailing if mailed by prepaid registered mail, return receipt
requested, to the appropriate notice address set forth on Schedule 1 or at such other
address as any party hereto may have furnished to the other parties in writing by registered
mail, return receipt requested.

Notwithstanding the above, in the case of communications delivered to the Escrow Agent pursuant to
(ii) and (iii) of this Section 12, such communications shall be deemed to have been given on the
date received by the Escrow Agent. In the event that the Escrow Agent, in its sole discretion,
shall determine that an emergency exists, the Escrow Agent may use such other means of
communication as the Escrow Agent deems appropriate. “Business Day” shall mean any day other than
a Saturday, Sunday or any other day on which the Escrow Agent located at the notice address set
forth on Schedule 1 is authorized or required by law or executive order to remain closed.

9

 

13. Security Procedures. In the event transfer instructions are given (other than in writing at
the time of execution of this Escrow Agreement, as indicated in Schedule 1 attached
hereto), whether in writing, by telecopier or otherwise, the Escrow Agent is authorized to seek
confirmation of such instructions by telephone call-back to the person or persons designated on
Schedule 2 hereto, and the Escrow Agent may rely upon the confirmation of anyone purporting
to be the person or persons so designated. The persons and telephone numbers for individuals
authorized to give or confirm payment instructions may be changed only in a writing actually
received and acknowledged by the Escrow Agent. The Escrow Agent and the recipient’s bank in any
funds transfer may rely solely upon any account numbers or similar identifying numbers provided by
Parent, Surviving Corporation, a Buyer Indemnified Party or the Target Shareholders, as the case
may be, to identify (i) the recipient of the distributed cash or other property, (ii) the
recipient’s bank account, if applicable, or (iii) an intermediary bank. The Escrow Agent may apply
any of the escrowed funds for any payment order it executes using any such identifying number, even
when its use may result in a person other than the intended recipient being paid, or the transfer
of funds to a bank other than the intended recipient’s bank or a designated intermediary bank. The
parties to this Escrow Agreement acknowledge that these security procedures are commercially
reasonable. All transfer instructions must include the signature of the person(s) authorizing such
transfer.

14. Ownership of Escrow Income for Tax Purposes. Parent, Merger Sub, Target and the Target
Shareholders all agree that, for purposes of federal and other taxes based on income, the Surviving
Corporation will be treated as the owner of 100% of the income earned with respect to the Escrow
Fund (the “Escrow Income”), and that the Surviving Corporation will report all Escrow Income, if
any, as their income in the taxable year or years in which such Escrow Income is properly
includible and pay any taxes attributable thereto.

15. Representations. Each of the parties represents and warrants that it, he or she has all
requisite power and authority to execute and deliver this Escrow Agreement, to perform its, his or
her obligations hereunder and to consummate the transactions contemplated hereby. The execution
and delivery by such party of this Escrow Agreement, the performance by such party of its, his or
her obligations hereunder and the consummation by such party of the transactions contemplated
hereby have been duly and validly authorized by all necessary action on the part of such party.
This Escrow Agreement has been duly and validly executed and delivered by such party and
constitutes a valid and binding obligation on of such party, enforceable against such party in
accordance with its terms hereto.

16. Miscellaneous. The provisions of this Escrow Agreement may be waived, altered, amended or
supplemented, in whole or in part, only by a writing signed by all of the parties hereto. Neither
this Escrow Agreement nor any right or interest hereunder may be assigned in whole or in part by
any party, except as provided in Section 8, above, without the prior written consent of the other
parties. This Escrow Agreement shall be governed by and construed under the laws of the State of
Oklahoma. Each party hereto irrevocably waives any objection on the grounds of venue, forum
non-conveniens or any similar grounds and irrevocably consents to service of process by mail or in
any other manner permitted by applicable law and consents to the jurisdiction of the courts located
in the State of Oklahoma. No party to this Escrow Agreement is liable to any other party for
losses due to, or if it is unable to perform its

10

 

obligations under the terms of this Escrow Agreement because of, acts of God, fire, floods,
strikes, equipment or transmission failure, or other causes reasonably beyond its control. This
Escrow Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

17. Right of Interpleader. Should (a) any controversy arise involving the parties hereto or any
other person, firm or entity with respect to this Escrow Agreement or the Escrow Fund (or any
portion thereof) (b) a substitute escrow agent fail to be designated as provided in Section 8
hereof, or (c) if Escrow Agent should be in doubt as to what action to take, Escrow Agent shall
have the right, but not the obligation, either to (i) withhold delivery of the Escrow Fund (or any
applicable portion thereof) until the controversy is resolved, the conflicting demands are
withdrawn, or its doubt is resolved, or (ii) institute a petition for interpleader in any court of
competent jurisdiction to determine the rights of the parties hereto. In the event Escrow Agent is
a party to any dispute with any of the other parties hereto with respect to this Escrow Agreement,
or the Escrow Fund (or any portion thereof), Escrow Agent shall have the additional right to refer
such controversy to binding arbitration as described in Section 18.

18. Arbitration. The parties hereto agree that all controversies which may arise between any of
them and the Escrow Agent concerning the construction, performance, or breach of this Escrow
Agreement shall be determined by arbitration.

(a) The arbitration will be held before a single arbitrator chosen by the American Arbitration
Association from a panel of persons knowledgeable in the banking industry.

(b) Any arbitration shall be held, at the discretion of the Bank, in Birmingham, Alabama; Dallas,
Texas; or Phoenix, Arizona. The arbitration shall be conducted in accordance with the commercial
arbitration rules of the American Arbitration Association. The arbitration shall be held and a
final decision reached within 30 days after the appointment of the arbitrator. The arbitrator
shall file a certificate of ruling with the parties immediately after a decision is reached. The
decision of the arbitrator shall be final and conclusive on the parties, and there shall be no
appeal therefrom. A decision of the arbitrator may be enforced by the prevailing party in a court
of competent jurisdiction. All other issues in connection with such arbitration shall be
determined in accordance with the rules of the American Arbitration Association.

(c) The parties hereby agree that an action to compel arbitration pursuant to this Agreement may be
brought in any court of competent jurisdiction selected by the Escrow Agent. Application may also
be made to such court for confirmation of any decision or award of the arbitrator, which may be
necessary to effectuate such decisions or awards. The parties hereto hereby consent to the
jurisdiction of the arbitrator and of such court and waive any objection to the jurisdiction and
venue of such arbitrator or court.

19. Further Assurances. If at any time after the Effective Date, any reasonable further action is
necessary or desirable to carry out the purposes and intent of this Escrow Agreement, including
without limitation the execution of additional instruments, the proper officers and directors of
each party will take all such reasonable further action.

11

 

[Signature Page To Follow]

12

 

IN WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement as of the date set forth
in Schedule 1.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	ESCROW AGENT:	 	 
	 	 	Compass Bank, as Escrow Agent	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	PARENT:	 	 
	 	 	RHA Anadarko, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Rural Hospital Acquisition, LLC., its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name:
	 	Dennis M. Smith	 	 
	 

	 	 	 	 	 	Title:
	 	 Manager	 	 
	 

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	MERGER SUB:	 	 
	 	 	SPMC Acquisition Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	David Hirschhorn	 	 
	 	 	Title:	 	President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TARGET:	 	 
	 	 	Southern Plains Medical Center, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	TARGET SHAREHOLDERS of SOUTHERN PLAINS MEDICAL CENTER,
INC.:
	 
	 	 	 	 	 	 
	I hereby accept my appointment as

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	Target Shareholder Representative.	 	Name: Dr. James Edwin Freed
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Jay Carroll Belt
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Mitchell Dean Coppedge
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Nancy Winfield Dever
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Marian Pilar Escobar
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. John Rathmann Gearhart
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Virginia Louise Harr
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Donald Frank Haslam
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Linda Mae Johnson
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Karen Sue Maluf
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Trudy Jane Moore
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Ervin Ronald Orr
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Ian St. George Thompson
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Dr. Lee Vanderlugt

 

 

Schedule 1

Effective Date:

	 	 	 
	Name of Parent:

	 	RHA Anadarko, LLC
	Parent Notice Address:
	 	 
	Facsimile Number:
	 	 
	Attention:
	 	 
	Purchaser TIN:
	 	 
	Wiring Instructions:
	 	 
	 
	 	 
	Name of Surviving Corporation:

	 	Southern Plains Medical Center, Inc.
	Surviving Corporation Notice Address:
	 	 
	Facsimile Number:
	 	 
	Attention:
	 	 
	Purchaser TIN:
	 	 
	Wiring Instructions:
	 	 

Name of the Target Shareholders’ Representative:            Dr. James Edwin Freed

Target Shareholders’ Representative Notice Address:

Facsimile Number:

Target Shareholders’ Representative TIN:

Initial Escrow Deposit: $490,000 and 787,500 shares of TIGroup Common Stock

Investment:

	 	 	 	 	 
	Escrow Agent notice address:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	Attention:	 	 
	 

	 	Fax No.:	 	 

 

 

Schedule 2

Telephone Number(s) and signature(s) for

Person(s) Designated to give and confirm Excrow Fund Transfer Instructions

If to Parent:

	 	 	 	 	 
	Name	 	Telephone Number	 	Signature
	1.
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2.
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	3.
	 	 	 	 
	 

	 	 	 	 

If to Target Shareholders’ Representative:

	 	 	 	 	 
	Name	 	Telephone Number	 	Signature
	1.
	 	 	 	 
	 

	 	 	 	 

Telephone call backs shall be made to both Parent and the Target Shareholders’ Representative if
joint instructions are required pursuant to the agreement. All funds transfer instructions must
include the signature of the person(s) authorizing said funds transfer.

 

 

Schedule 3

List of the Target Shareholders

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Number of Shares of
	 	 	 	 	Total	 	 	 	Escrowed TIGroup
	Name of the Target Shareholder	 	Current Address	 	Percentage	 	TIN	 	Common Stock
	 
	 	 	 	 	 	 	 	 

 

 

Exhibit D

Secretary’s Certificate of Target

 

 

SECRETARY’S CERTIFICATE

OF

SOUTHERN PLAINS MEDICAL CENTER, INC.

March [        ], 2008

     I,                     , hereby certify, on behalf of Southern Plains Medical Center, Inc., an
Oklahoma corporation (the “Company”), that I am the Secretary of the Company. I further
certify, on behalf of the Company, that:

     (a) Attached hereto as Exhibit A is a true and complete copy of the Corporate Charter
of the Company, and all amendments thereto as in effect on the date hereof.

     (b) Attached hereto as Exhibit B are true and complete copies of the Bylaws of the
Company, and all amendments thereto as in effect on the date hereof.

     (c) Attached hereto as Exhibit C is a true, complete and correct statement of certain
resolutions adopted at a regular or special meeting of the Board of Directors duly convened at
which a quorum was present or by written unanimous consent of the Board of Directors of the
Company, which such meeting or consent was and is in the form required by and in conformity with
the Company’s Corporate Charter, Bylaws, and all applicable laws. That none of the resolutions
attached hereto have been amended, modified or rescinded, and each such resolution is in full force
and effect on the date hereof. There is no provision of the Corporate Charter or Bylaws of the
Company limiting the power of the Board of Directors to pass, and for the Company to perform as
contemplated by, the resolutions specified herein, and such resolutions are in conformity with the
provisions of said Corporate Charter and Bylaws.

     (d) Attached hereto as Exhibit D is a true and correct copy of the Good Standing
Certificate for Dissolution or Merger issued by the Oklahoma Secretary of State as of a recent date
herewith for the Company.

     (e) Attached hereto as Exhibit E is a true and correct copy of the Letter of Good
Standing issued by the Oklahoma Tax Commission as of a recent date herewith for the Company.

     (f) The persons listed below are duly qualified and acting officers of the Company, have been
authorized to sign on behalf of the Company, and as of the date hereof, hold the offices specified
with the Company, and the signature set forth beside each person’s name is the true signature of
that person.

	 	 	 	 	 	 	 	 	 
	Name:	 	Title:	 	 	 	Signature:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	[Title]	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	[Title]	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, I have hereunto signed my name on behalf of Southern Plains Medical
Center, Inc., as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	SOUTHERN PLAINS MEDICAL CENTER, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Secretary	 	 

[Singature Page to Secretary’s Certificate of Southern Plains Medical Center, Inc.]

 

 

Exhibit E

Target Closing Certificate

 

 

CLOSING CERTIFICATE

OF

SOUTHERN PLAINS MEDICAL CENTER, INC.

     This Closing Certificate (this “Certificate”) is delivered in connection with the
closing of the transactions contemplated by that certain Agreement and Plan of Merger, dated as of
March ___, 2008 (as amended or modified to date, the “Merger Agreement”), by and among RHA
Anadarko, LLC, an Oklahoma limited liability company (“Parent”), SPMC Acquisition
Corporation, an Oklahoma corporation and wholly-owned subsidiary of Parent, Southern Plains Medical
Center, Inc., an Oklahoma corporation, (“Target”), and each of the shareholders of Target,
(each a “Target Shareholder”, and collectively the “Target Shareholders”).
Capitalized terms used without definition in this Certificate shall have the meanings assigned to
such terms in the Merger Agreement.

     The undersigned hereby certifies that he is the duly elected, qualified and acting president
of Southern Plains Medical Center, Inc., that he has been authorized by Southern Plains Medical
Center, Inc. to execute and deliver this Certificate on behalf of Southern Plains Medical Center,
Inc. in connection with the Closing, and further certifies on behalf of Southern Plains Medical
Center, Inc. that:

CLOSING CONDITIONS

     1. Each of the representations and warranties of the Target and Target Shareholders contained
in the Merger Agreement is true and correct in all material respects as of the Closing if such
representations and warranties were made at and as of the Closing, except for changes contemplated
by the terms of the Merger Agreement and except to the extent that such representations and
warranties expressly relate to an earlier time (which representations and warranties are true and
correct in all material respects as of or through such earlier time).

     2. The Target and Target Shareholders have performed, complied with, and satisfied in all
material respects, all covenants, agreements, and conditions required by the Merger Agreement to be
performed, complied with and satisfied by it at or prior to the Closing.

[SIGNATURE PAGE FOLLOWS]

1

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of the Closing
Date.

	 	 	 	 	 	 	 	 	 
	 	 	SOUTHERN PLAINS MEDICAL CENTER, INC	 	 	.	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	Name:
	 	 

	 	 	 	 
	 

	 	Title:
	 	 

President
	 	 	 	 

 

 

Exhibit F

Target Shareholders Closing Certificate

 

 

CLOSING CERTIFICATE

OF

SHAREHOLDERS

OF

SOUTHERN PLAINS MEDICAL CENTER, INC.

     This Closing Certificate (this “Certificate”) is delivered in connection with the
closing of the transactions contemplated by that certain Agreement and Plan of Merger, dated as of
March ___, 2008 (as amended or modified to date, the “Merger Agreement”), by and among RHA
Anadarko, LLC, an Oklahoma limited liability company (“Parent”), SPMC Acquisition
Corporation, an Oklahoma corporation and wholly-owned subsidiary of Parent, Southern Plains Medical
Center, Inc., an Oklahoma corporation, (“Target”), and each of the shareholders of Target,
(each a “Target Shareholder”, and collectively the “Target Shareholders”).
Capitalized terms used without definition in this Certificate shall have the meanings assigned to
such terms in the Merger Agreement.

     The undersigned, being all of the Target Shareholders hereby certify that:

CLOSING CONDITIONS

     1. Each of the representations and warranties of the Target and Target Shareholders contained
in the Merger Agreement is true and correct in all material respects as of the Closing if such
representations and warranties were made at and as of the Closing, except for changes contemplated
by the terms of the Merger Agreement and except to the extent that such representations and
warranties expressly relate to an earlier time (which representations and warranties are true and
correct in all material respects as of or through such earlier time).

     2. The Target and Target Shareholders have performed, complied with, and satisfied in all
material respects, all covenants, agreements, and conditions required by the Merger Agreement to be
performed, complied with and satisfied by it at or prior to the Closing.

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Certificate as of the Closing Date.

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Dr. Jay Carroll Belt
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Mitchell Dean Coppedge	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Nancy Winfield Dever	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Marian Pilar Escobar	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. James Edwin Freed	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. John Rathmann Gearhart	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Virginia Louise Harr	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Donald Frank Haslam	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Linda Mae Johnson	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Karen Sue Maluf	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Trudy Jane Moore	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Ervin Ronald Orr	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Ian St. George Thompson	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Dr. Lee Vanderlugt	 	 

[Signature Page to Closing Certificate of Shareholders of Southern Plains Medical Center, Inc.]

 

 

Exhibit G

Secretary’s Certificate of Merger Sub

 

 

SECRETARY’S CERTIFICATE

OF

SPMC ACQUISITION CORPORATION

May 1, 2008

     I, Michael R. Schuster, hereby certify, on behalf of SPMC Acquisition Corporation, an Oklahoma
corporation (the “Company”), that I am the Secretary of the Company. I further certify, on
behalf of the Company, that:

     (a) Attached hereto as Exhibit A is a true and complete copy of the Corporate Charter
of the Company, and all amendments thereto as in effect on the date hereof.

     (b) Attached hereto as Exhibit B are true and complete copies of the Bylaws of the
Company, and all amendments thereto as in effect on the date hereof.

     (c) Attached hereto as Exhibit C is a true, complete and correct statement of certain
resolutions adopted at a regular or special meeting of the Board of Directors duly convened at
which a quorum was present or by written unanimous consent of the Board of Directors of the
Company, which such meeting or consent was and is in the form required by and in conformity with
the Company’s Corporate Charter, Bylaws, and all applicable laws. That none of the resolutions
attached hereto have been amended, modified or rescinded, and each such resolution is in full force
and effect on the date hereof. There is no provision of the Corporate Charter or Bylaws of the
Company limiting the power of the Board of Directors to pass, and for the Company to perform as
contemplated by, the resolutions specified herein, and such resolutions are in conformity with the
provisions of said Corporate Charter and Bylaws.

     (d) Attached hereto as Exhibit D is a true and correct copy of the Good Standing
Certificate for Dissolution or Merger issued by the Oklahoma Secretary of State as of a recent date
herewith for the Company.

     (e) Attached hereto as Exhibit E is a true and correct copy of the Letter of Good
Standing issued by the Oklahoma Tax Commission as of a recent date herewith for the Company.

     (f) The persons listed below are duly qualified and acting officers of the Company, have been
authorized to sign on behalf of the Company, and as of the date hereof, hold the offices specified
with the Company, and the signature set forth beside each person’s name is the true signature of
that person.

	 	 	 	 	 
	Name:	 	Title:	 	Signature:
	David Hirschhorn

	 	President
	 	                                        

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, I have hereunto signed my name on behalf of SPMC Acquisition Corporation,
as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	SPMC ACQUISITION CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Michael R. Schuster	 	 
	 

	 	Title:
	 	Secretary	 	 

[Signature Page to Secretary’s Certificate of SPMC Acquisition Corporation]

 

 

Exhibit H

Closing Certificate of Merger Sub

 

 

CLOSING CERTIFICATE

OF

SPMC ACQUISITION CORPORATION

     This Closing Certificate (this “Certificate”) is delivered in connection with the
closing of the transactions contemplated by that certain Agreement and Plan of Merger, dated as of
April 24, 2008 (as amended or modified to date, the “Merger Agreement”), by and among RHA
Anadarko, LLC, an Oklahoma limited liability company (“Parent”), SPMC Acquisition
Corporation, an Oklahoma corporation and wholly-owned subsidiary of Parent, Southern Plains Medical
Center, Inc., an Oklahoma corporation, (“Target”), and each of the shareholders of Target,
(each a “Target Shareholder”, and collectively the “Target Shareholders”).
Capitalized terms used without definition in this Certificate shall have the meanings assigned to
such terms in the Merger Agreement.

     The undersigned hereby certifies that he is the duly elected, qualified and acting president
of SPMC Acquisition Corporation, that he has been authorized by SPMC Acquisition Corporation to
execute and deliver this Certificate on behalf of SPMC Acquisition Corporation in connection with
the Closing, and further certifies on behalf of SPMC Acquisition Corporation that:

CLOSING CONDITIONS

     1. Each of the representations and warranties of SPMC Acquisition Corporation contained in the
Merger Agreement is true and correct in all material respects as of the Closing if such
representations and warranties were made at and as of the Closing, except for changes contemplated
by the terms of the Merger Agreement and except to the extent that such representations and
warranties expressly relate to an earlier time (which representations and warranties are true and
correct in all material respects as of or through such earlier time).

     2. SPMC Acquisition Corporation has performed, complied with, and satisfied in all material
respects, all covenants, agreements, and conditions required by the Merger Agreement to be
performed, complied with and satisfied by it at or prior to the Closing.

[SIGNATURE PAGE FOLLOWS]

1

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of the Closing Date.

	 	 	 	 	 	 	 
	 	 	SPMC Acquisition Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	David Hirschhorn	 	 
	 

	 	Title:
	 	President

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