Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This Employment Agreement (this “Agreement”), dated as of October 5, 2016 is made by and among Merus US, Inc., a
Delaware corporation (together with any successors or assigns, the “Company”), John J. Crowley (“Executive”) and, solely for purposes of Sections 1, 2(c), 6, 8 and 9(b), Merus N.V., a Dutch public limited liability
company (“Parent”). The Company, Parent and Executive are collectively referred to herein as the “Parties” and individually as a “Party.” 

RECITALS 
  

	(A)	It is the desire of the Company to assure itself of the services of Executive beginning on and following a date to be mutually agreed upon by the Company and Executive, which date will be no later than November 1,
2016 by entering into this Agreement. The actual date on which Executive begins his employment with the Company is referred to herein as the “Effective Date.” 

 

	(B)	Executive and the Company mutually desire that Executive provide services to the Company on the terms herein provided. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below, the Parties hereto agree as follows: 
  

	1.	Employment. 

 (a) General. Effective as of the Effective Date, the Company
shall employ Executive and Executive shall remain in the employ of the Company, for the period and in the position set forth in this Section 1, and subject to the other terms and conditions herein provided. 

(b) At-Will Employment. The Company and Executive acknowledge that Executive’s employment is at-will, as defined under applicable
law, and that Executive’s employment with the Company may be terminated by the Company or Executive at any time for any or no reason (subject to the notice requirements of Section 3(b)). This “at-will” nature of
Executive’s employment shall remain unchanged during Executive’s tenure as an employee and may not be changed, except in an express writing signed by Executive and a duly authorized officer of the Company. If Executive’s employment
terminates for any reason, Executive shall not be entitled to any payments, benefits, damages, award or compensation other than as provided in this Agreement or otherwise agreed to in writing by a duly authorized officer of the Company, a duly
authorized officer of the Parent or as provided by applicable law. The period of Executive’s employment by the Company shall be referred to herein as the “Term”. 

(c) Position; Duties and Location. Executive shall serve as Executive Vice President, Chief Financial Officer of the Company and
Parent, with such responsibilities, duties and authority normally associated with such positions and as may from time to time be assigned to Executive by the Chief Executive Officer of Parent or the Management Board or the Supervisory Board of the
Parent (either one, the “Board”). Executive’s normal place of work shall be at the Company’s office in the Boston, Massachusetts metropolitan area. Executive shall devote 

 
substantially all of Executive’s working time and efforts to the business and affairs of the Company (which shall include service to its affiliates, including Parent as applicable) and shall
not engage in outside business activities (including serving on outside boards or committees) without the consent of the Board, provided that Executive shall be permitted to (i) manage Executive’s personal, financial and legal affairs,
(ii) participate in trade associations, and (iii) serve on the board of directors and committees of not-for-profit or tax-exempt charitable organizations, in each case, subject to compliance with this Agreement and provided that such
activities do not materially interfere with Executive’s performance of Executive’s duties and responsibilities hereunder. Executive agrees to observe and comply with the written rules and policies of the Company and Parent as adopted by
the Company or Parent, as applicable from time to time, in each case as amended from time to time, as set forth in writing, and as delivered or made available to Executive (each, a “Policy”). 

 

	2.	Compensation and Related Matters. 

 (a) Annual Base Salary. During the
Term, Executive shall receive a base salary as adjusted from time to time, “Annual Base Salary” at a rate of no less than $362,500 per annum, which shall be paid in accordance with the customary payroll practices of the Company and
shall be pro-rated for partial years of employment. The Annual Base Salary shall be reviewed from time to time (but no less than annually) by the Board and may be increased (but not decreased) from the annual rate then in effect. 

(b) Bonus. 
 (i) Annual
Bonus. During the Term, Executive will be eligible to participate in an annual incentive program established by the Board. Executive’s annual incentive compensation under such incentive program (the “Annual Bonus”) shall be
targeted at 35% of his Annual Base Salary. The Annual Bonus payable under the incentive program shall be based on the achievement of performance goals to be determined by the Board and may be pro-rated for calendar year 2016 performance based on the
Effective Date. The payment of any Annual Bonus pursuant to the incentive program shall be subject to Executive’s continued employment with the Company through the date of payment. 

(ii) Sign-On Bonus. Within thirty (30) days following the Effective Date, the Company will pay Executive a one-time lump sum cash
payment of $100,000 (the “Sign-on Bonus”). In the event Executive resigns from Executive’s employment with the Company other than for Good Reason or is terminated by the Company for Cause prior to the one year anniversary of
the Effective Date, Executive agrees to immediately repay 100% of the Sign-on Bonus to the Company. 
 (c) Equity Awards. Parent will
grant Executive an option to purchase 183,241 common shares of Parent (equalling 1% on fully diluted share basis) pursuant to Parent’s 2016 Incentive Award Plan and the Stock Option Grant Notice in the form attached hereto as Exhibit A
(the “Option Grant Notice”), which shall provide for a per share exercise price equal to the per share fair market value (closing price on Nasdaq Global Market) as per the Effective Date (the “Option”). Executive
shall be eligible to receive additional equity awards at the discretion of the Board. 

  
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 (d) Benefits. During the Term, Executive shall be eligible to participate in employee
benefit plans, programs and arrangements of the Company (including medical, dental, vision, life insurance, disability insurance and defined contribution 401(k) plan) made available to other similarly-situated employees of the Company, consistent
with the terms thereof and as such plans, programs and arrangements may be amended from time to time. Notwithstanding the foregoing, if the Company does not maintain any “group health plan” (within the meaning of Section 4980B of the
Internal Revenue Code and the regulations thereunder (“COBRA”)) for its U.S. employees as of the Effective Date, then, subject to Executive’s valid election to receive COBRA benefits under the health plans of Executive’s
prior employer, during the period beginning on the Effective Date and ending on the first to occur of: (i) the date on which the Company adopts or otherwise makes generally available to its U.S. employees a group health plan or (ii) the
date on which Executive terminates employment with the Company, the Company shall reimburse Executive for the actual cost of healthcare premiums incurred by Executive under the group health plan of Executive’s prior employer pursuant to COBRA,
subject to proper substantiation of such costs in accordance with applicable Company Policy no later than sixty (60) days after such costs are incurred; provided, that, in the event the period of time during which Executive is entitled to
continuation coverage under the group health plan of Executive’s prior employer pursuant to COBRA expires prior to the Company adopting or otherwise making available a group health plan to its U.S. employees, the Company shall continue to pay
Executive for healthcare costs in an amount equal to the cost of healthcare premiums incurred by Executive under the group health plan of Executive’s prior employer pursuant to COBRA based on the last month of the COBRA period. Such costs shall
be reimbursed promptly, but in no event later than sixty (60) days following proper substantiation thereof. 
 (e) Vacation.
During the Term, Executive shall be entitled to no less than four (4) weeks of paid personal leave per calendar year in accordance with the Company’s paid time off Policies. Any vacation shall be taken at the reasonable and mutual
convenience of the Company and Executive. 
 (f) Business Expenses. During the Term, the Company shall reimburse Executive for all
reasonable travel and other business expenses incurred by Executive in the performance of Executive’s duties to the Company in accordance with the Company’s expense reimbursement Policy. 

(g) Key Person Insurance. At any time during the Term, the Company shall have the right to insure the life of Executive for the
Company’s sole benefit. The Company shall have the right to determine the amount of insurance and the type of policy. Executive shall reasonably cooperate with the Company in obtaining such insurance by submitting to physical examinations, by
supplying all information reasonably required by any insurance carrier, and by executing all necessary documents reasonably required by any insurance carrier, provided that any information provided to an insurance company or broker shall not be
provided to the Company or its affiliates without the prior written authorization of Executive. Executive shall incur no financial obligation by executing any required document, and shall have no interest in any such policy. 

  
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	3.	Termination. 

 (a) Circumstances. Executive’s employment hereunder may
be terminated by the Company or Executive, as applicable, without any breach of this Agreement, at any time, under the following circumstances: 

(i) Death. Executive’s employment hereunder shall terminate upon Executive’s death. 

(ii) Disability. If Executive has incurred a Disability, as defined below, the Company may terminate Executive’s
employment. 
 (iii) Termination for Cause. The Company may terminate Executive’s employment for Cause, as
defined below. 
 (iv) Termination without Cause. The Company may terminate Executive’s employment without Cause.

 (v) Resignation from the Company for Good Reason. Executive may resign Executive’s employment with the Company
for Good Reason, as defined below. 
 (vi) Resignation from the Company Without Good Reason. Executive may resign
Executive’s employment with the Company for any reason other than Good Reason or for no reason. 
 (b) Notice of Termination.
Any termination of Executive’s employment by the Company or by Executive under this Section 3 (other than termination pursuant to Section 3(a)(i)) shall be communicated by a written notice to the other Party
(i) indicating the specific termination provision in this Agreement relied upon, (ii) setting forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination of Executive’s employment under the
provision so indicated, if applicable, and (iii) specifying a Date of Termination which, if submitted by Executive, shall be at least thirty (30) days following the date of such notice (a “Notice of Termination”);
provided, however, that in the event that Executive delivers a Notice of Termination to the Company, the Company may, in its sole discretion, change the Date of Termination to any date that occurs following the date of Company’s receipt
of such Notice of Termination and is prior to the date specified in such Notice of Termination. A Notice of Termination submitted by the Company may provide for a Date of Termination on the date Executive receives the Notice of Termination, or any
date thereafter elected by the Company in its sole discretion. The failure by the Company or Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any
right of such Party hereunder or preclude such Party from asserting such fact or circumstance in enforcing such Party’s rights hereunder. 

(c) Company Obligations upon Termination. Upon termination of Executive’s employment pursuant to this Section 3,
Executive (or Executive’s estate) shall be entitled to receive the sum of: (i) the portion of Executive’s Annual Base Salary earned through the Date of 

  
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Termination, but not yet paid to Executive; (ii) any expenses owed to Executive pursuant to Section 2(f); and (iii) any amount accrued and arising from Executive’s
participation in, or benefits accrued under any employee benefit plans, programs or arrangements, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements (collectively, the
“Company Arrangements”). Except as otherwise expressly required by law (e.g., COBRA) or as specifically provided herein, all of Executive’s rights to salary, severance, benefits, bonuses and other compensatory amounts hereunder
(if any) shall cease upon the termination of Executive’s employment hereunder. In the event that Executive’s employment is terminated by the Company for any reason, Executive’s sole and exclusive remedy hereunder shall be to receive
the payments and benefits described in this Section 3(c) or Section 4, as applicable. For the avoidance of doubt, nothing in this Agreement shall limit in any way any rights of Executive to receive compensation, reimbursement
or other payments pursuant to any other agreement (including the Option Grant Notice) entered into between Executive and the Company, Parent and/or their respective affiliates, to the extent any such agreement provides for payment following the
termination of Executive’s employment. 
 (d) Deemed Resignation. Upon termination of Executive’s employment for any
reason, Executive shall be deemed to have resigned from all offices and directorships, if any, then held with the Company or any of its affiliates, including Parent. 
  

	4.	Severance Payments. 

 (a) Termination for Cause, or Termination Upon Death,
Disability or Resignation from the Company Without Good Reason. If Executive’s employment shall terminate as a result of Executive’s death pursuant to Section 3(a)(i) or Disability pursuant to Section 3(a)(ii),
pursuant to Section 3(a)(iii) for Cause, or pursuant to Section 3(a)(vi) for Executive’s resignation from the Company without Good Reason, then Executive shall not be entitled to any severance payments or benefits,
except as provided in Section 3(c). 
 (b) Termination without Cause or Resignation from the Company for Good Reason. If
Executive’s employment is terminated by the Company without Cause pursuant to Section 3(a)(iv) or pursuant to Section 3(a)(v) due to Executive’s resignation for Good Reason, in either case, which termination does not occur within
one year following the date of a Change in Control, then, subject to Executive signing on or before the 21st day following Executive’s Separation from Service (as defined below), and not revoking, a release of claims in substantially the form
attached hereto as Exhibit B (the “Release”), and Executive’s continued compliance with the terms of the Proprietary Information Agreement (as defined below), Executive shall receive, in addition to payments and benefits
set forth in Section 3(c), an amount in cash equal to 0.5 times the Annual Base Salary, payable in the form of salary continuation in regular instalments over the six-month period following Executive’s Separation from Service in
accordance with the Company’s customary payroll practices and (ii) in the discretion of the Board, accelerated vesting (in whole or in part) of any portion of the Option that is unvested as of the Date of Termination. 

  
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 (c) Change in Control. Notwithstanding anything to the contrary in
Section 4(b), in the event Executive’s employment is terminated by the Company without Cause pursuant to Section 3(a)(iv) or pursuant to Section 3(a)(v) due to Executive’s resignation for Good Reason, in
either case, within one year following the date of a Change in Control, then, subject to Executive signing on or before the 21st day following Executive’s Separation from Service, and not revoking, the Release, and Executive’s continued
compliance with the terms of the Proprietary Information Agreement, Executive shall receive, in addition to payments and benefits set forth in Section 3(c), the following: 

(i) an amount in cash equal to 0.5 times the sum of (A) the Annual Base Salary and (B) the Annual Bonus at the target amount, which
amount shall be paid in a lump sum on the First Payment Date (as defined below); 
 (ii) if Executive elects to receive continued medical,
dental or vision coverage under one or more of the Company’s group healthcare plans pursuant to COBRA, the Company shall directly pay, or reimburse Executive for, the COBRA premiums for Executive and Executive’s covered dependents under
such plans during the period commencing on Executive’s Separation from Service and ending upon the earliest of (X) the date that is nine (9) months following Executive’s Separation from Service, (Y) the date that Executive
and/or Executive’s covered dependents become no longer eligible for COBRA and (Z) the date Executive becomes eligible to receive healthcare coverage from a subsequent employer. Notwithstanding the foregoing, if the Company determines in
its sole discretion that it cannot provide the foregoing benefit without potentially violating applicable law or incurring an excise tax (including by reason of Section 2716 of the Public Health Service Act), the Company shall in lieu thereof
provide to Executive a taxable monthly payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue Executive’s and Executive’s covered dependents’ group health coverage in effect on the
Date of Termination (which amount shall be based on the premium for the first month of COBRA coverage), less the amount Executive would have had to pay to receive group health coverage for Executive and Executive’s covered dependents based on
the cost sharing levels in effect on the Date of Termination, which payments shall be made regardless of whether Executive elects COBRA continuation coverage and shall commence in the month following the month in which the Date of Termination occurs
and shall end on the earlier of (X) the last day of the nine (9) month period following Executive’s Separation from Service, (Y) the date that Executive and/or Executive’s covered dependents become no longer eligible for
COBRA and (Z) the date Executive becomes eligible to receive healthcare coverage from a subsequent employer; and 
 (iii) accelerated
vesting of any portion of the Option and any portion of any other outstanding equity awards granted to Executive prior to the date of the Change in Control, in each case that are unvested as of the Date of Termination; provided, that, any equity
awards that are subject to the vesting based on the achievement of performance goals as of the Date of Termination shall only vest if the applicable performance goals are achieved. 

 

	5.	Employee Proprietary Information and Inventions Assignment Agreement. 

 Executive
acknowledges and agrees that, as a condition to Executive’s employment by the Company, Executive shall enter into, and be bound by the terms of Parent’s Employee Proprietary Information and Inventions Assignment Agreement in the form
attached hereto as Exhibit C (the “Proprietary Information Agreement”), effective from and after the Effective Date in accordance with its terms. 

  
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	6.	Assignment and Successors. 

 Each of the Company and Parent may assign its rights
and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company or Parent, as applicable, whether by merger or otherwise. This Agreement shall be binding upon and inure to the benefit of
the Company, Executive and their respective successors, permitted assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. None of Executive’s rights or obligations may
be assigned or transferred by Executive, other than Executive’s rights to payments hereunder, which may be transferred only by will or operation of law. Notwithstanding the foregoing, Executive shall be entitled, to the extent permitted under
applicable law and applicable Company Arrangements, to select and change a beneficiary or beneficiaries to receive compensation hereunder following Executive’s death by giving written notice thereof to the Company. 

 

	7.	Certain Definitions. 

 (a) Cause. The Company shall have
“Cause” to terminate Executive’s employment hereunder upon: 
 (i) Executive’s wilful failure to
(A) substantially perform his duties as contemplated under this Agreement (other than any such failure resulting from Executive’s Disability) or (B) comply with, in any material respect, any of the Company’s Policies; 

(ii) Executive’s wilful failure in any material respect to carry out or comply with any lawful and reasonable directive of the Board;

 (iii) Executive’s breach of a material provision of this Agreement or the Proprietary Information Agreement; 

(iv) Executive’s conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or
crime involving moral turpitude; 
 (v) Executive’s unlawful use (including being under the influence) or possession of illegal drugs
on the Company’s (or any of its affiliate’s) premises or while performing Executive’s duties and responsibilities under this Agreement; or 

(vi) Executive’s commission of an act of fraud, embezzlement, misappropriation, willful misconduct, or breach of fiduciary duty against
the Company or any of its affiliates. 
 Notwithstanding the foregoing, no Cause will have occurred pursuant to clauses (i), (ii) or (iii) of this
definition of Cause unless and until the Company has: (i) provided Executive, within 60 days of the Board’s (excluding Executive) knowledge of the occurrence of the facts and circumstances underlying the Cause event, written-notice stating
with specificity the applicable facts and circumstances underlying such finding of Cause; (ii) provided Executive with an opportunity to cure the same within 30 days after the receipt of such notice; and (iii) Executive fails to cure the
same within such 30 day period after receipt of such notice. 

  
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 (b) Change in Control. “Change in Control” shall mean and include each of
the following: 
 (i) A transaction or series of related transactions (other than an offering of common shares of Parent to the general
public through a registration statement filed with the Securities and Exchange Commission or a transaction or series of related transactions that meets the requirements of clauses (A) and (B) of subsection (ii) below) whereby any
“person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)) (other than Parent, any of its
subsidiaries, an employee benefit plan maintained by the Parent or any of its subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Parent)
directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of Parent possessing more than 50% of the total combined voting power of Parent’s securities outstanding immediately
after such acquisition; or 
 (ii) The consummation by Parent (whether directly involving Parent or indirectly involving Parent through one
or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Parent’s assets in any single transaction or series of related
transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction: 
 (A)
which results in Parent’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of Parent or the person that, as a result of the
transaction, controls, directly or indirectly, Parent or owns, directly or indirectly, all or substantially all of Parents assets or otherwise succeeds to the business of Parent ( Parent or such person, the “Successor Entity”))
directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and 

(B) after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of
the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning 50% or more of the combined voting power of the Successor Entity solely as a result of the voting power
held in Parent prior to the consummation of the transaction. 
 Notwithstanding the foregoing, in no event shall the transaction or event
described in subsection (i) or (ii) constitute a Change in Control for purposes of this Agreement unless such transaction also constitutes a “change in control event,” as defined in Treasury Regulation
Section 1.409A-3(i)(5). 
 (c) Date of Termination. “Date of Termination” shall mean (i) if
Executive’s employment is terminated by Executive’s death, the date of Executive’s death; or (ii) if Executive’s employment is terminated pursuant to Section 3(a)(ii) – (vi) either the date
indicated in the Notice of Termination or the date specified by the Company pursuant to Section 3(b), after delivery by Executive of the Notice of Termination,whichever is earlier. 

  
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 (d) Disability. “Disability” shall mean, at any time the Company or any
of its affiliates sponsors a long-term disability plan for the Company’s employees, “disability” as defined in such long-term disability plan for the purpose of determining a participant’s eligibility for benefits, provided,
however, if the long-term disability plan contains multiple definitions of disability, “Disability” shall refer to that definition of disability which, if Executive qualified for such disability benefits, would provide coverage for the
longest period of time. The determination of whether Executive has a Disability shall be made by the person or persons required to make disability determinations under the long-term disability plan. At any time the Company does not sponsor a
long-term disability plan for its employees, Disability shall mean Executive’s inability to perform, with or without reasonable accommodation, the essential functions of Executive’s position hereunder for a total of three months during any
six-month period as a result of incapacity due to mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to Executive or Executive’s legal representative, with such agreement as to
acceptability not to be unreasonably withheld or delayed. Any refusal by Executive to submit to a medical examination for the purpose of determining Disability shall be deemed to constitute conclusive evidence of Executive’s Disability. 

(e) Good Reason. For the sole purpose of determining Executive’s right to severance payments as described above, Executive’s
resignation will be for “Good Reason” if Executive resigns within ninety days of Executive’s knowledge of the occurrence of any of the following events, unless Executive consents to the applicable event: (i) a decrease in
Executive’s Annual Base Salary, other than a reduction in annual base salary of less than 10% that is implemented in connection with a contemporaneous reduction in annual base salaries affecting other senior executives of the Company and the
Parent, (ii) a material decrease in Executive’s reporting relationship, authority or areas of responsibility as are commensurate with Executive’s title or position (other than decreases that occur when individuals are hired to replace
departing executives or are hired at a level below Executive Vice President and other than in connection with a corporate transaction where Executive continues to hold the position referenced in Section 1(c) above with respect to the
Parent’s business, substantially as such business exists prior to the date of consummation of such corporate transaction, but does not hold such position with respect to the successor corporation), (iii) the relocation of Executive’s
primary office to a location more than 50 miles from the Boston, Massachusetts metropolitan area, (iv) a material breach by the Company or Parent of their respective obligations pursuant to this Agreement, or (v) a material breach by
Parent of the Option Grant Notice or any other agreement evidencing an award of incentive equity granted by Parent to Executive. Notwithstanding the foregoing, no Good Reason will have occurred unless and until Executive has: (i) provided
Parent, within 60 days of Executive’s knowledge of the occurrence of the facts and circumstances underlying the Good Reason event, written-notice stating with specificity the applicable facts and circumstances underlying such finding of Good
Reason; (ii) provided Parent with an opportunity to cure the same within 30 days after the receipt of such notice; and (iii) Parent fails to cure the same within such 30 day period after receipt of such notice. 

  
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 (f) Person. “Person” means any individual or any corporation, limited
liability company, general partnership, limited partnership, venture, trust, business trust, unincorporated association, estate or other entity. 
  

	8.	Miscellaneous Provisions. 

 (a) Governing Law. This Agreement shall be
governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of the Commonwealth of Massachusetts without reference to the principles of conflicts of law of the
Commonwealth of Massachusetts or any other jurisdiction, and where applicable, the laws of the United States. 
 (b) Validity. The
invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

(c) Notices. Any notice, request, claim, demand, document and other communication hereunder to any Party shall be effective upon
receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile, nationally recognized overnight delivery service, postage prepaid, or certified or registered mail, postage prepaid, as follows: 

(i) If to the Company or Parent, the General Counsel of the Parent at its headquarters, 

(ii) If to Executive, at the last address that the Company or the Parent has in its personnel records for Executive, or 

(iii) At any other address as any Party shall have specified by notice in writing to the other Party. 

(d) Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of
which together will constitute one and the same Agreement. Signatures delivered by facsimile, PDF or other electronic means shall be deemed effective for all purposes. 

(e) Entire Agreement. The terms of this Agreement, the Option Grant Notice and the Proprietary Information Agreement are intended by
the Parties to be the final expression of their agreement with respect to the subject matter hereof and thereof and supersede all prior understandings and agreements, whether written or oral. The Parties further intend that this Agreement, the
Option Grant Notice and the Proprietary Information Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding
to vary the terms of this Agreement, the Option Grant Notice or the Proprietary Information Agreement. 
 (f) Amendments; Waivers.
This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by Executive and a duly authorized officer of the Parent or the Company. By an instrument in writing similarly executed, Executive or a

  
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duly authorized officer of the Company or the Parent may waive compliance by the other Party with any specifically identified provision of this Agreement that such other Party was or is obligated
to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy, or power
hereunder preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity. 
 (g) No
Inconsistent Actions. The Parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or essential intent of this Agreement. Furthermore, it is the intent of the Parties
hereto to act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Agreement. 
 (h)
Construction. This Agreement shall be deemed drafted equally by the Parties. Its language shall be construed as a whole and according to its fair meaning. Any presumption or principle that the language is to be construed against any Party
shall not apply. The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs, subparagraphs, sections or subsections are to those parts of this Agreement, unless
the context clearly indicates to the contrary. Also, unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the plural; (b) “and” and “or” are each used both
conjunctively and disjunctively; (c) “any,” “all,” “each,” or “every” means “any and all,” and “each and every”; (d) “includes” and “including” are each
“without limitation”; (e) “herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph, section
or subsection; and (f) all pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require. 

(i) Arbitration. Any controversy, claim or dispute arising out of or relating to this Agreement, shall be settled solely and
exclusively by a binding arbitration process administered by JAMS/Endispute before a single arbitrator in Boston, Massachusetts. Such arbitration shall be conducted in accordance with the then-existing JAMS/Endispute Rules of Practice and Procedure,
with the following exceptions if in conflict: (a) one arbitrator who is a retired judge shall be chosen consistent with the then current rules of JAMS/Endispute; (b) each Party to the arbitration will pay one-half of the expenses and fees
of the arbitrator, together with other expenses of the arbitration incurred or approved by the arbitrator; and (c) arbitration may proceed in the absence of any Party if written notice (pursuant to the JAMS/Endispute rules and regulations) of
the proceedings has been given to such Party. Each Party shall bear its own attorneys’ fees and expenses; provided that the arbitrator may assess the prevailing Party’s fees and costs against the non-prevailing Party as part of the
arbitrator’s award. The Parties agree to abide by all decisions and awards rendered in such proceedings. Such decisions and awards rendered by the arbitrator shall be final and conclusive. All such controversies, claims or disputes shall be
settled in this manner in lieu of any action at law or equity; provided, however, that nothing in this subsection shall be construed as precluding the bringing an action for injunctive relief or specific performance as provided in this Agreement or
the Proprietary Information Agreement. This dispute resolution process and any arbitration hereunder shall be confidential and neither any Party nor the neutral arbitrator shall disclose the existence, contents

  
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or results of such process without the prior written consent of all Parties, except where necessary or compelled in a Court to enforce this arbitration provision or an award from such arbitration
or otherwise in a legal proceeding. If JAMS/Endispute no longer exists or is otherwise unavailable, the Parties agree that the American Arbitration Association (“AAA”) shall administer the arbitration in accordance with its
then-existing rules as modified by this subsection. In such event, all references herein to JAMS/Endispute shall mean AAA. 
 (j)
Enforcement. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in
terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 
 (k) Withholding.
The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an
opinion of counsel if any questions as to the amount or requirement of withholding shall arise. 
 (l) Survival. Notwithstanding
anything to the contrary in this Agreement, the provisions of Sections 5 through 9 will survive the termination of Executive’s employment and the expiration or termination of the Term. 

(m) Section 409A. 

(i) General. The intent of the Parties is that the payments and benefits under this Agreement comply with or be exempt from
Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be
interpreted to be in compliance therewith. 
 (ii) Separation from Service. Notwithstanding anything in this Agreement to the
contrary, any compensation or benefits payable under this Agreement that are designated under this Agreement as payable upon Executive’s termination of employment shall be payable only upon Executive’s “separation from service”
with the Company within the meaning of Section 409A (a “Separation from Service”) and, except as provided below, any such compensation or benefits described in Sections 4(b) and 4(c) shall not be paid, or, in the
case of installments, shall not commence payment, until the 30th day following Executive’s Separation from Service (the “First Payment Date”). Any installment payments that would have been made to Executive during the 30-day
period immediately following Executive’s Separation from Service but for the preceding sentence shall be paid to Executive on the First Payment Date and the remaining payments shall be made as provided in this Agreement. 

  
 12 

 (iii) Specified Employee. Notwithstanding anything in this Agreement to the contrary, if
Executive is deemed by the Company at the time of Executive’s Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which Executive
is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the
6-month period measured from the date of Executive’s Separation from Service with the Company or (ii) the date of Executive’s death. Upon the first business day following the expiration of the applicable Section 409A period, all
payments deferred pursuant to the preceding sentence shall be paid in a lump sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive under this Agreement shall be paid as otherwise provided herein.

 (iv) Expense Reimbursements. To the extent that any reimbursements under this Agreement are subject to Section 409A, any such
reimbursements payable to Executive shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred, provided that Executive submits Executive’s reimbursement request promptly following
the date the expense is incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, other than medical expenses referred to in Section 105(b) of the Code, and
Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit. 
 (v)
Installments. Executive’s right to receive any installment payments under this Agreement, including any continuation of salary payments that are payable on Company payroll dates, shall be treated as a right to receive a series of
separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment as permitted under Section 409A. Except as otherwise permitted under Section 409A, no payment hereunder
shall be accelerated or deferred unless such acceleration or deferral would not result in additional tax or interest pursuant to Section 409A. 

(n) Legal Fees. The Company shall, within ten (10) calendar days of Executive’s delivery to the Company of appropriate
documentation evidencing Executive’s legal fees and costs incurred in connection with the negotiation, preparation and related advice concerning this Agreement and the other agreements referenced herein (the “Executive’s Legal
Fees”) pay directly by wire transfer to Executive’s legal counsel the Executive’s Legal Fees up to a cap of Five Thousand Dollars ($5,000). 

(o) No Mitigation. In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of
any amounts payable to Executive pursuant to Section 4 and such amounts shall not be reduced whether or not Executive obtains other employment (including self-employment). 

 

	9.	Acknowledgements and Representations. 

 (a) Executive acknowledges that Executive
has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely
based on Executive’s own judgment. 

  
 13 

 (b) The Company represents and warrants that this Agreement has been authorized by all necessary
corporate action and is a valid and binding agreement of the Company enforceable against it in accordance with its terms. Parent represents and warrants that this Agreement and the Option Grant Notice have each been authorized by all necessary
corporate action and the applicable portions of this Agreement are, and the Option Grant Notice will when executed be, valid and binding agreement of Parent enforceable against it in accordance with its terms. 

 

	10.	Third Party Beneficiary Rights. 

 Parent has third party beneficiary rights to the
terms of this Agreement applicable to the Company. 
 [Signature Page Follows] 

  
 14 

 IN WITNESS WHEREOF, the persons below have executed this Agreement on the date and year first
above written. 
  

			
	COMPANY
		
	By:	 	/s/ Ton Logtenberg
		 	Ton Logtenberg
		 	Chief Executive Officer
		
	By:	 	/s/ Shelley Margetson
		 	Shelley Margetson
	
	PARENT (solely for purposes of Sections 1, 2(c), 6, 8 and 9(b))
		
	By:	 	/s/ Ton Logtenberg
		 	Ton Logtenberg
		 	Chief Executive Officer
		
	By:	 	/s/ Shelley Margetson
		 	Shelley Margetson
	
	EXECUTIVE
		
	By:	 	/s/ John Crowley
		 	John Crowley

 EXHIBIT A 

Form of Option Grant Notice 

STOCK OPTION GRANT NOTICE 

Capitalized terms not specifically defined in this Stock Option Grant Notice (the “Grant Notice”) have the meanings
given to them in the 2016 Incentive Award Plan (as amended from time to time, the “Plan”) of Merus N.V. (the “Company”). 

The Company has granted to the participant listed below (“Participant”) the stock option described in this Grant
Notice (the “Option”), subject to the terms and conditions of the Plan and the Stock Option Agreement attached as Exhibit A (the “Agreement”), both of which are incorporated into this Grant
Notice by reference. 
  

			
	Participant:	  	John J. Crowley
		
	Grant Date:	  	[Effective date of Employment Agreement]
		
	Exercise Price per Share:	  	[Closing price Nasdaq for MRUS common stock on Effective Date]
		
	Shares Subject to the Option:	  	[...]
		
	Final Expiration Date:	  	10 years following Grant Date
		
	Vesting Commencement Date:	  	Grant Date
		
	Vesting Schedule:	  	25% vests on anniversary of grant and thereafter 1/36 of remainder vests each month

 By Participant’s signature below, Participant agrees to be bound by the terms of this Grant Notice, the
Plan and the Agreement. Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the
Plan, this Grant Notice and the Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement. 

PARTIES: 
  

							
	MERUS N.V.	 		  	PARTICIPANT
				
	 By:
	 	  
	 		  	  

				
	 Name:
	 	  
	 		  	 John J. Crowley

				
	 Title:
	 	  
	 		  	

  
 A-1 

	
	MERUS N.V.
	
	  

	
	  

	
	  

  
 A-2 

 Exhibit A 

STOCK OPTION AGREEMENT 

Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant
Notice, in the Plan. 
 ARTICLE I. 

GENERAL 

1.1    Grant of Option. The Company has granted to Participant the Option effective as of the grant date set
forth in the Grant Notice (the “Grant Date”). 
 1.2    Incorporation of Terms of
Plan. The Option is subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan
will control. 
 ARTICLE II. 

PERIOD OF EXERCISABILITY 

2.1    Commencement of Exercisability. The Option will vest and become exercisable according to the vesting
schedule in the Grant Notice (the “Vesting Schedule”) except that any fraction of a Share as to which the Option would be vested or exercisable will be accumulated and will vest and become exercisable only when a whole Share
has accumulated. Notwithstanding anything in the Grant Notice, the Plan or this Agreement to the contrary, unless the Administrator otherwise determines, the Option will immediately expire and be forfeited as to any portion that is not vested
and exercisable as of Participant’s Termination of Service for any reason. 
 2.2    Duration of
Exercisability. The Vesting Schedule is cumulative. Any portion of the Option which vests and becomes exercisable will remain vested and exercisable until the Option expires. The Option will be forfeited immediately upon its
expiration. 
 2.3    Expiration of Option. The Option may not be exercised to any extent by anyone after,
and will expire on, the first of the following to occur: 
 (a)    The final expiration date in the Grant Notice; 

(b)    Except as the Administrator may otherwise approve, the expiration of three (3) months from the date of
Participant’s Termination of Service, unless Participant’s Termination of Service is for Cause or by reason of Participant’s death or Disability; 

(c)    Except as the Administrator may otherwise approve, the expiration of one (1) year from the date of
Participant’s Termination of Service by reason of Participant’s death or Disability; and 
 (d)    Except as
the Administrator may otherwise approve, Participant’s Termination of Service for Cause or the initiation of such Termination of Service by giving notice of termination, by requesting termination by the court or otherwise (e.g. a written
proposal for termination by mutual consent). 

  
 A-3 

 ARTICLE III. 

EXERCISE OF OPTION 

3.1    Person Eligible to Exercise. During Participant’s lifetime, only Participant may exercise the
Option. After Participant’s death, any exercisable portion of the Option may, prior to the time the Option expires, be exercised by Participant’s Designated Beneficiary as provided in the Plan. 

3.2    Partial Exercise. Any exercisable portion of the Option or the entire Option, if then wholly
exercisable, may be exercised, in whole or in part, according to the procedures in the Plan at any time prior to the time the Option or portion thereof expires, except that the Option may only be exercised for whole Shares. 

3.3    Tax Withholding.

(a)    The Company has the right and option, but not the obligation, to treat Participant’s failure to provide timely
payment in accordance with the Plan of any withholding tax arising in connection with the Option as Participant’s election to satisfy all or any portion of the withholding tax by requesting the Company retain Shares otherwise issuable under the
Option. 
 (b)    Participant acknowledges that Participant is ultimately liable and responsible for all taxes owed in
connection with the Option, regardless of any action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with the Option. Neither the Company nor any Subsidiary makes any representation
or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or exercise of the Option or the subsequent sale of Shares. The Company and the Subsidiaries do not commit and are under no obligation to
structure the Option to reduce or eliminate Participant’s tax liability. 
 ARTICLE IV. 

OTHER PROVISIONS 

4.1    Adjustments. Participant acknowledges that the Option is subject to adjustment, modification and
termination in certain events as provided in this Agreement and the Plan. 
 4.2    Notices. Any notice to
be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company’s Secretary at the Company’s principal office or the Secretary’s then-current email address or facsimile
number. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant (or, if Participant is then deceased, to the person entitled to exercise the Option) at Participant’s last known
mailing address, email address or facsimile number in the Company’s personnel files. By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party. Any notice will be
deemed duly given when actually received, when sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post office regularly maintained by the United States Postal Service,
when delivered by a nationally recognized express shipping company or upon receipt of a facsimile transmission confirmation. 

4.3    Titles. Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement. 
 4.4    Conformity to Securities Laws. Participant
acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform to Applicable Laws.

  
 A-4 

 4.5    Successors and Assigns. The Company may assign any of its
rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in the Plan, this Agreement will be
binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto. 

4.6    Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this
Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the Option will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the
Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended as
necessary to conform to such applicable exemptive rule. 
 4.7    Entire Agreement. The Plan, the Grant
Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter
hereof. 
 4.8    Agreement Severable. In the event that any provision of the Grant Notice or this Agreement
is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement. 

4.9    Limitation on Participant’s Rights. Participation in the Plan confers no rights or interests other
than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any
assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Option, and rights no greater than the right to receive the Shares
as a general unsecured creditor with respect to the Option, as and when exercised pursuant to the terms hereof. 

4.10    Not a Contract of Employment. Nothing in the Plan, the Grant Notice or this Agreement confers upon
Participant any right to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or
terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant. 

4.11    Claw-back. The Administrator may, in its sole reasonable discretion, deem the outcome of a remuneration
component granted to the Participant under this Agreement unreasonable either because the same has been based on incorrect information (including but not limited to financial information) or in light of special circumstances. In such cases, the
Administrator is entitled to adjust such component up- or downwards. If, in the event of such downward adjustment, the Options have already been exercised, the Company is entitled to reclaim what payments consequential to such downward
adjustment was unduly paid either in cash compensation or in Shares. 
 4.12    Counterparts. The Grant
Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which will be deemed an original and all of which together will constitute one instrument. 

* * * * * 

  
 A-5 

 EXHIBIT B 

Separation Agreement and Release 

This Separation Agreement and Release (this “Agreement”) is made by and between John J. Crowley
(“Executive”) and                      (the “Company”) (collectively referred to as the
“Parties” or individually referred to as a “Party”). Capitalized terms used but not defined in this Agreement shall have the meanings set forth in the Employment Agreement (as defined below). 

WHEREAS, the Parties and Parent have previously entered into that certain Employment Agreement, dated as of
                     (the “Employment Agreement”); and 

WHEREAS, in connection with Executive’s termination of employment with the Company or a subsidiary or affiliate of the Company effective
                    , 20    , the Parties wish to resolve any and all disputes, claims, complaints, grievances,
charges, actions, petitions, and demands that Executive may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Executive’s employment
with or separation from the Company or its subsidiaries or affiliates but, for the avoidance of doubt, nothing herein will be deemed to release any rights or remedies in connection with the Retained Claims, as defined below. 

NOW, THEREFORE, in consideration of the severance payments and benefits described in Section 4 of the Employment Agreement, which,
pursuant to the Employment Agreement, are conditioned on Executive’s execution and non-revocation of this Agreement, and in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows: 

1. Severance Payments; Salary and Benefits. The Company agrees to provide Executive with the severance payments and benefits described
in Section 4(b) or Section 4(c) of the Employment Agreement, payable at the times set forth in, and subject to the terms and conditions of, the Employment Agreement. In addition, to the extent not already paid, and subject to the terms and
conditions of the Employment Agreement, the Company shall pay or provide to Executive all other payments or benefits described in Section 3(c) of the Employment Agreement, subject to and in accordance with the terms thereof. 

  
 B-1 

 2. Release of Claims. Executive agrees that, other than with respect to the Retained
Claims, the foregoing consideration represents settlement in full of all outstanding obligations owed to Executive by the Company, any of its direct or indirect parents, subsidiaries and affiliates, and any of their current and former officers,
directors, equity holders, managers, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries and predecessor and successor corporations
and assigns (collectively, the “Releasees”). Executive, on Executive’s own behalf and on behalf of any of Executive’s affiliated companies or entities and any of their respective heirs, family members, executors, agents,
and assigns, other than with respect to the Retained Claims, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or
cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up
until and including the Effective Date of this Agreement (as defined in Section 7 below), including, without limitation: 
 (a) any and
all claims relating to or arising from Executive’s employment or service relationship with the Company or any of its direct or indirect subsidiaries or affiliates and the termination of that relationship; 

(b) any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of any shares of stock or other
equity interests of the Company or any of its affiliates, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or
federal law; 
 (c) any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination;
harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or
intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false
imprisonment; conversion; and disability benefits; 
 (d) any and all claims for violation of any federal, state, or municipal statute,
including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Credit Reporting Act; the Age
Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; and the Sarbanes-Oxley
Act of 2002; 
 (e) any and all claims for violation of the federal or any state constitution; 

(f) any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; 

(g) any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the
proceeds received by Executive as a result of this Agreement; and 
 (h) any and all claims for attorneys’ fees and costs. 

Executive agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters
released. Notwithstanding anything to the contrary in this Agreement, the release set forth in this Agreement does not release any of the following claims by Executive (collectively, the “Retained Claims”): (i) claims that
cannot be released as a matter of law, including, but not limited to, Executive’s right to report possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated
under Section 21F of the Securities Exchange Act of 

  
 B-2 

 
1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of state or federal law or regulation; (ii) Executive’s right to file a
charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the
Company or any Releasee (with the understanding that Executive’s release of claims herein bars Executive from recovering such monetary relief from the Company or any Releasee); (iii) claims for unemployment compensation or any state
disability insurance benefits pursuant to the terms of applicable state law; (iv) claims to continued participation in certain of the Company’s and the other Releasees group benefit plans pursuant to the terms and conditions of COBRA;
(v) claims to any benefit entitlements vested as the date of separation of Executive’s employment, pursuant to written terms of any employee benefit plan of the Company or any other Releasee and Executive’s right under applicable law;
(vi) claims related to Executive’s ownership of vested equity securities, and vested options to purchase equity securities, in each case of the Company or any other Releasee (including equity securities and options to purchase equity
securities that vest pursuant to the Employment Agreement); (vii) claims related to Executive’s right to indemnification by the Company or any other Releasee pursuant to contract or applicable law; (viii) claims for breach of
Section 3(c), Section 4(b) or Section 4(c) of the Employment Agreement; or (ix) claims for breach of this Agreement. 

3. Acknowledgment of Waiver of Claims under ADEA. Executive understands and acknowledges that Executive is waiving and releasing any
rights Executive may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. Executive understands and agrees that this waiver and release does not apply to
any rights or claims that may arise under the ADEA after the Effective Date of this Agreement. Executive understands and acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Executive was
already entitled. Executive further understands and acknowledges that Executive has been advised by this writing that: (a) Executive should consult with an attorney prior to executing this Agreement; (b) Executive has 21 days within which
to consider this Agreement; (c) Executive has 7 days following Executive’s execution of this Agreement to revoke this Agreement pursuant to written notice to the General Counsel of the Company; (d) this Agreement shall not be
effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it
impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law. In the event Executive signs this Agreement and returns it to the Company in less than the 21 day period identified above, Executive
hereby acknowledges that Executive has freely and voluntarily chosen to waive the time period allotted for considering this Agreement. 
 4.
Severability. In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or
void, this Agreement shall continue in full force and effect without said provision or portion of provision. 
 5. No Oral
Modification. This Agreement may only be amended in a writing signed by Executive and a duly authorized officer of the Company. 

  
 B-3 

 6. Governing Law; Dispute Resolution. This Agreement shall be subject to the provisions of
Sections 8(a), 8(c), 8(d) and 8(i) of the Employment Agreement. 
 7. Effective Date. If Executive has attained or is over the age of
40 as of the date of Executive’s termination of employment, then Executive has seven days after Executive signs this Agreement to revoke it and this Agreement will become effective on the eighth day after Executive signed this Agreement, so
long as it has not been revoked by Executive before that date (the “Effective Date”). If Executive has not attained the age of 40 as of the date of Executive’s termination of employment, then the “Effective Date”
shall be the date on which Executive signs this Agreement. 
 8. Voluntary Execution of Agreement. Executive understands and agrees
that Executive executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Executive’s claims against the Company and any of the
other Releasees. Executive acknowledges that: (a) Executive has read this Agreement; (b) Executive has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement;
(c) Executive has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Executive’s own choice or has elected not to retain legal counsel; (d) Executive understands the terms and
consequences of this Agreement and of the releases it contains; and (e) Executive is fully aware of the legal and binding effect of this Agreement. 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 

 

									
	Dated:	  	 	  		  	 
		  		  		  	John J. Crowley
				
		  		  		  	COMPANY
					
	Dated:	  	 	  		  	By:	  	 
		  		  		  		  	Name:
		  		  		  		  	Title:
					
	Dated:	  	 	  		  	By:	  	 
		  		  		  		  	Name:
		  		  		  		  	Title:

  
 B-4 

 EXHIBIT C 

FORM OF PROPRIETARY INFORMATION AGREEMENT 

MERUS N.V. 
 EMPLOYEE
PROPRIETARY INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT 
 In consideration and as a condition of my employment by Merus N.V., a
Dutch public, limited liability company (together with any of its successors or assigns collectively, the “Company”), and my receipt of the compensation paid to me by the Company in the context of that employment, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the date that my employment by the Company first commenced as set forth below, I, the undersigned, agree as follows: 

1.    Nondisclosure Of Proprietary Information. 

(a)    Proprietary Information. During the term of my employment, I may receive and otherwise be
exposed, directly or indirectly, to technical and non-technical confidential and proprietary information of the Company, including without limitation, information relating to the Company’s business, strategies, designs, products, services and
technologies and any derivatives, improvements and enhancements related to any of the foregoing, or to the Company’s suppliers, customers or business partners (collectively “Proprietary Information”), whether in graphic,
written, electronic or oral form. Proprietary Information may be labeled or identified at the time of disclosure as confidential or proprietary, or equivalent, but Proprietary Information also includes information which by its context would
reasonably be deemed to be confidential and proprietary. “Proprietary Information” may also include, without limitation, unpublished patent applications and other intellectual property filings, ideas, Inventions (as defined below),
techniques, works of authorship, models, inventions, compounds, compositions, know-how, processes, algorithms, software programs, software source documents, formulae, information and trade secrets as well as financial information (including sales
costs, profits, pricing methods), research data, clinical data, bills of material, customer, prospect and supplier lists, investors, employees, business and contractual relationships (including with third parties), business forecasts, sales and
merchandising data, and business and marketing plans and any derivatives, improvements and enhancements related to any of the above. Information the Company provides regarding third parties as to which Company has an obligation of
confidentiality also constitutes “Proprietary Information.”
 (b)    Duties. I
acknowledge the confidential and secret character of the Proprietary Information, and agree that the Proprietary Information is the sole, exclusive and extremely valuable property of Company. Accordingly, I agree not to use the Proprietary
Information except in the performance of my authorized duties as an employee of Company, and not to disclose all or any part of the Proprietary Information in any form to any third party, either during or after the term of my employment, without the
prior written consent of the Company on a case-by-case basis. Upon termination of my employment, I agree to cease using and to return to Company all whole and partial copies and derivatives of the Proprietary Information, whether in my
possession or under my direct or indirect control, provided that I am entitled to retain my personal copies of (i) my compensation records, (ii) materials distributed to shareholders 

  
 C-1 

 
generally, (iii) my employment agreement with the Company or an affiliate of the Company (the “Employment Agreement”), and (iv) this Employee Proprietary Information and
Inventions Assignment Agreement (this “Agreement”). I understand that my obligations with respect to Proprietary Information shall not apply to information that (i) is actually in the public domain at the time of
disclosure or enters the public domain following disclosure through no fault of mine, (ii) is already in my possession without breach of any obligations of confidentiality, (iii) is obtained by me from a third party not under confidentiality
obligations and without a breach of any obligations of confidentiality, or (iv) is required to be disclosed pursuant to an order of any competent court or government agency or rules of a securities exchange. I understand that nothing
herein is intended to or shall prevent me from communicating directly with, cooperating with, or providing information to, any federal, state or local government regulator, including, but not limited to, the U.S. Securities and Exchange Commission,
the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice. 
 (c)    Unauthorized
Use or Disclosure. I shall promptly notify my supervisor or any officer of the Company if I learn of any possible unauthorized use or disclosure of Proprietary Information and shall cooperate fully with the Company to enforce its rights
in such information. 
 2.    Property Of The Company. I acknowledge and agree that all notes,
memoranda, reports, drawings, blueprints, manuals, materials, data, emails and other papers and records of every kind, or other tangible or intangible materials which shall come into my possession in the course of my employment with the Company,
relating to any Inventions (as defined below) or Proprietary Information, shall be the sole and exclusive property of the Company and I hereby assign any rights or interests I may obtain in any of the foregoing. I agree to surrender this
property to the Company immediately upon termination of my employment with the Company, or at any time upon request by the Company. I further agree that any property situated on the Company’s data systems or on the Company’s premises
and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. I further agree that in the event of termination of my
employment with the Company I will execute a Termination Certificate substantially in the form attached hereto as Exhibit A. 

3.    Inventions. 

(a)    Disclosure and Assignment of Inventions. For the purposes of this Agreement, an
“Invention” shall mean any idea, invention or work of authorship, including, without limitation, any documentation, formula, design, device, code, method, software, technique, process, discovery, concept, improvement, enhancement,
development, machine or contribution, in each case whether or not patentable or copyrightable. I agree to disclose all Inventions promptly in writing to an officer of the Company or to attorneys of the Company in accordance with the
Company’s policies and procedures, and I hereby assign to the Company, without requirement of further writing, without royalty or any other further consideration, my entire right, title and interest throughout the world in and to all Inventions
created or reduced to writing by me in the course of my employment by the Company and all intellectual property 

  
 C-2 

 
rights therein. I also hereby assign to the Company any Inventions that exist as of the date of this Agreement that, at the time of conception or reduction to practice including prior to the
Company’s incorporation as a legal entity, relate to the business or operations of the Company or to the actual or anticipated research or development of the Company, which I do not have an obligation to assign to any third party, including,
without limitation, the Inventions listed on Exhibit B. I hereby waive, and agree to waive, any moral rights I may have in any copyrightable work I create or have created on behalf of the Company. I also hereby agree, that for a
period of one year after my employment with the Company, I shall disclose to the Company any Inventions that I create, conceive, make, develop, reduce to practice or work on that relate to the work I performed for the Company. The Company
agrees that it will use commercially reasonable measures to keep Inventions disclosed to it pursuant to this Section 3(a) that do not constitute Inventions to be owned by the Company in confidence and shall not use any Inventions for its own
advantage, unless in either case those Inventions are assigned or assignable to the Company pursuant to Section 3(a) or otherwise. 

(b)    Certain Exemptions. The obligations to assign Inventions set forth in Section 3(a) apply
with respect to all Inventions (a) whether or not such Inventions are conceived, made, developed or worked on by me during my regular hours of employment with the Company; (b) whether or not the Invention was made at the suggestion of the
Company; (c) whether or not the Invention was reduced to drawings, written description, documentation, models or other tangible form; and (d) whether or not the Invention is related to the general line of business engaged in by the
Company, but do not apply to Inventions that (x) I develop entirely on my own time or after the date of this Agreement without using the Company’s equipment, supplies, facilities or Proprietary Information; (y) do not relate to the
Company’s business, or actual or demonstrably anticipated research or development of the Company at the time of conception or reduction to practice of the Invention; and (z) do not result from and are not related to any work performed by
me for the Company. I hereby acknowledge and agree that the Company has notified me that, if I reside in the state of California, assignments provided for in Section 3(a) do not apply to any Invention which qualifies fully for exemption from
assignment under the provisions of Section 2870 of the California Labor Code (“Section 2870”), a copy of which is attached as Exhibit C. If applicable, at the time of disclosure of an Invention that I believe qualifies
under Section 2870, I shall provide to the Company, in writing, evidence to substantiate the belief that such Invention qualifies under Section 2870. I further understand that, to the extent this Agreement shall be construed in accordance with
the laws of any state which precludes a requirement in an employee agreement to assign certain classes of inventions made by an employee, Section 3(a) shall be interpreted not to apply to any Invention which a court rules and/or the Company agrees
falls within such classes. 
 (c)    Records. I will make and maintain adequate and current
written records of all Inventions covered by Section 3(a). These records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, notebooks and any other format. These records shall be and remain the property
of the Company at all times and shall be made available to the Company at all times. 

  
 C-3 

 (d)    Patents and Other Rights. I agree to assist
the Company in obtaining, maintaining and enforcing patents, invention assignments and copyright assignments, and other proprietary rights in connection with any Invention covered by Section 3(a), and will otherwise assist the Company as reasonably
required by the Company to perfect in the Company the rights, title and other interests in my work product granted to the Company under this Agreement (both in the United States and foreign countries), including any of the intellectual property
rights listed on Exhibit B. I further agree that my obligations under this Section 3(d) shall continue beyond the termination of my employment with the Company, but if I am requested by the Company to render such assistance after the
termination of such employment, I shall be entitled to a fair and reasonable rate of compensation for such assistance, and to reimbursement of any expenses incurred at the request of the Company relating to such assistance. If the Company is
unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified above, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my
agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of this Section 3(d) with the
same legal force and effect as if executed by me. 
 (e)    Prior Contracts and Inventions; Information
Belonging to Third Parties. I represent and warrant that, except as set forth on Exhibit D hereto, I am not required, and I have not been required during the course of work for the Company or its predecessors, to assign
Inventions under any other contracts that are now or were previously in existence between me and any other person or entity. I further represent that (i) I am not obligated under any consulting, employment or other agreement that would
affect the Company’s rights or my duties under this Agreement, and I shall not enter into any such agreement or obligation during the period of my employment by the Company, (ii) there is no action, investigation, or proceeding pending or
threatened, or any basis therefor known to me involving my prior employment or any consultancy or the use of any information or techniques alleged to be proprietary to any former employer, and (iii) the performance of my duties as an employee
of the Company do not and will not breach, or constitute a default under any agreement to which I am bound, including any agreement limiting the use or disclosure of proprietary information acquired in confidence prior to engagement by the Company
or if applicable, any agreement to refrain from competing, directly or indirectly, with the business of such previous employer or any other party or to refrain from soliciting employees, customers or suppliers of such previous employer or other
party. I will not, in connection with my employment by the Company, use or disclose to the Company any confidential, trade secret or other proprietary information of any previous employer or other person to which I am not lawfully
entitled. As a matter of record, I attach as Exhibit D of this Agreement a brief description of all Inventions made or conceived by me prior to my employment with the Company which I desire to be excluded from this Agreement
(“Background Technology”). If full disclosure of any Background Technology would breach or constitute a default under any agreement to which I am bound, including any agreement limiting the use or disclosure of proprietary
information acquired in confidence prior to engagement by the Company, I understand that I am to describe such Background Technology in Exhibit D at the most specific level possible without violating any such prior
agreement. Without limiting my obligations or representations under this Section 3(e), if I use any Background Technology in the 

  
 C-4 

 
course of my employment or incorporate any Background Technology in any product, service or other offering of the Company, I hereby grant Company a non-exclusive, royalty-free, perpetual and
irrevocable, worldwide right to use and sublicense the use of Background Technology for the purpose of developing, marketing, selling and supporting Company technology, products and services, either directly or through multiple tiers of
distribution, but not for the purpose of marketing Background Technology separately from Company products or services. 

(f)    Works Made for Hire. I acknowledge that all original works of authorship which are made
by me (solely or jointly with others) within the scope of my employment with the Company and which are eligible for copyright protection are “works made for hire” as that term is defined in the United States Copyright Act (17 U.S.C.,
Section 101). 
 4.    Non-Competition. During the term of my employment by the Company and
for a period of six months (which shall be nine months if I become entitled to severance under Section 4(c) of the Employment Agreement) thereafter, I will not without the prior written approval of an executive officer of the Company,
(a) engage in any other professional employment or consulting, or (b) directly or indirectly participate in or assist any business (whether as owner, partner, officer, director, employee, consultant, investor, lender or otherwise, except as the
holder of not more than 1% of the outstanding stock of a publicly-held company) which is a current or potential supplier, customer or competitor of the Company’s Business (as defined below), including but not limited to any business or
enterprise that develops, manufactures, markets, licenses, sells or provides any product or service that competes with any product or service developed, manufactured, marketed, licensed, sold or provided, or planned to be developed, manufactured,
marketed, licensed, sold or provided, by the Company while I was employed by the Company. If I am an executive officer of the Company, any of the foregoing activities shall require the approval of the Board of Directors of the Company. For
purposes of this section, the Company’s Business shall mean the business of the Company, including, but not limited to, the development of bispecific antibody therapeutics, as such business may be expanded or altered by the Company during the
term of my employment with the Company. 
 5.    Non-Solicitation. During the term of my
employment with the Company and for a period of twelve months thereafter, I will not (i) solicit, encourage, induce or attempt to induce or assist others to solicit, encourage, induce or attempt to induce any employees, consultants or independent
contractors of the Company to terminate their employment or other engagement with the Company or (ii) hire, or recruit or attempt to hire, or engage or attempt to engage as an independent contractor, any person who was employed or otherwise engaged
by the Company at any time during the term of my employment with the Company; provided, that this clause (ii) shall not apply to the recruitment or hiring or other engagement of any individual whose employment or other engagement with the
Company has been terminated for a period of six months or longer. During the term of my employment with the Company and for a period of one year thereafter, I will not solicit, divert or take away, or attempt to divert or take away, the
business of any customer or client of the Company (served by the Company during the 12-month period prior to the termination of my employment with the Company) on my own behalf or on behalf of any person or entity other than the Company.

  
 C-5 

 6.    Non-Disparagement. During and after the term of my
employment with the Company, I will refrain from Disparaging (as defined below) the Company and its affiliates, including, any of its services, technologies or practices, or any of its directors, officers, agents, representatives or stockholders,
either orally or in writing. Nothing in this Section 6 shall preclude me from making truthful statements that are reasonably necessary to comply with applicable law, regulation or legal process, or to defend or enforce my rights under this
Agreement, the Employment Agreement and/or any agreements evidencing equity awards issued to me by the Company and/or its affiliates. For purposes of this Agreement, “Disparaging” means remarks, comments or statements, whether
written or oral, that impugn the character, integrity, reputation or abilities of the Company. 

7.    Extension. Without limiting the Company’s ability to seek other remedies
available in law or equity, if I violate the provisions of Sections 4 or 5, I shall continue to be bound by the restrictions set forth in such sections until a period of one year has expired without any violation of such provisions. 

8.    Interpretation. If any restriction set forth in Sections 4 or 5 is found by any court of
competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of
activities or geographic area as to which it may be enforceable. 
 9.    Notification to Other
Parties. In the event of termination of my employment with the Company, I hereby consent to notification by the Company to my new employer or other party for whom I work about my rights and obligations under this Agreement. 

10.    Employment at Will. I understand and agree that my employment with the Company is at
will. Accordingly, my employment can be terminated, without cause or notice, at my option or the Company’s option. The at-will nature of my employment also means that I can be transferred or demoted, and my job title, compensation,
benefits and other terms and conditions of employment can be reduced, without cause, subject to the terms of the Employment Agreement. I acknowledge that such changes are not intended to affect the enforceability of Sections 4 or 5 (the
“Restrictive Covenants”). The at-will status of my employment relationship with the Company and the Restrictive Covenants shall remain in force and effect throughout my employment with the Company unless such status or
Restrictive Covenants are modified by a further written agreement signed by both an authorized officer of the Company and me which expressly alters such status or such Restrictive Covenants. 

11.    Miscellaneous. The parties’ rights and obligations under this Agreement will
bind and inure to the benefit of their respective successors, heirs, executors, and administrators and permitted assigns. I will not assign this Agreement or my obligations hereunder without the prior written consent of the Company, which
consent may be withheld in the Company’s sole discretion, and any such purported assignment without consent shall be null and void from the beginning. I agree that the Company may freely assign or otherwise transfer this Agreement to any
affiliate, including, without limitation, any Company entity established in the United States, 

  
 C-6 

 
or successor in interest (whether by way of merger, sale, acquisition or corporate re-organization or any substantially similar process) of the Company. This Agreement constitutes the
parties’ final, exclusive and complete understanding and agreement with respect to the subject matter hereof, and supersedes all prior and contemporaneous understandings and agreements, whether oral or written, relating to its subject
matter. Any subsequent change or changes in my duties, obligations, rights or compensation will not affect the validity or scope of this Agreement. This Agreement may not be waived, modified or amended unless mutually agreed upon in
writing by both parties. No delay or omission by the Company in exercising any right under this Agreement will operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion is effective only
in that instance and will not be construed as a bar to or waiver of any right on any other occasion. If any provision of this Agreement is found by a proper authority to be unenforceable or invalid such unenforceability or invalidity shall not
render this Agreement unenforceable or invalid as a whole and in such event, such provision shall be changed and interpreted so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law or
applicable court decisions and the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. I hereby authorize the Company
to notify others, including but not limited to customers of the Company and any of my future employers or prospective business associates, of the terms and existence of this Agreement and my continuing obligations to the Company hereunder. I
acknowledge that the Company will suffer substantial damages not readily ascertainable or compensable in terms of money in the event of the breach of any of my obligations under this Agreement. I therefore agree that the Company shall be
entitled (without limitation of any other rights or remedies otherwise available to the Company) to obtain an injunction from any court of competent jurisdiction prohibiting the continuance or recurrence of any breach of this Agreement. The
rights and obligations of the parties under this Agreement shall be governed in all respects by the laws of the Commonwealth of Massachusetts exclusively, without regard to conflict of law provisions. I agree that upon Company’s request,
all disputes arising hereunder shall be adjudicated in the state and federal courts having jurisdiction over disputes arising in the United States, and I hereby agree to consent to the personal jurisdiction of such courts; provided, that Section
8(i) of the Employment Agreement shall apply to any controversy, claim or dispute arising out of or relating to Section 4 and/or Section 5 of this Agreement. The Company and I each hereby irrevocably waive any right to a trial by jury in any
action, suit or other legal proceeding arising under or relating to any provision of this Agreement. Any notices required or permitted hereunder shall be given to the appropriate party at the address specified on the signature page to this
Agreement or at such other address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery, or sent by certified or registered mail, postage prepaid, three (3) days after the date of mailing. Except
as otherwise provided herein, the provisions of this Agreement shall survive the termination of my employment with the Company for any reason. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an
original and all of which together shall be deemed to be one and the same instrument.

  
 C-7 

 I ACKNOWLEDGE THAT I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL AND THAT I HAVE
READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT
VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY ME. 

SIGNATURE PAGE FOLLOWS 

  
 C-8 

 IN WITNESS WHEREOF, I have executed this document as of [month, day], 2016. 

 

			
	  

	 Employee: John J. Crowley

		
	 Address:
	 	  

 Date employment first
commenced:                                       
            
 AGREED AND ACKNOWLEDGED: 

 

			
	COMPANY
		
	By:	 	  

	Ton Logtenberg
	Chief Executive Officer
		
	By:	 	  

	Shelley Margetson
	 Chief Financial Officer

 

 
			
	Address:	 	  

  
 C-9 

 EXHIBIT A 

TERMINATION CERTIFICATE 

    I, the undersigned, hereby certify that I do not have in my possession, nor have I failed to return, any documents or
materials relating to the business of Merus N.V. or its affiliates (together with any of its successors or assigns collectively, the “Company”), or copies thereof, including, without limitation, any item of Proprietary Information
listed in Section 3 of the Company’s Employee Confidentiality And Inventions Assignment Agreement (the “Agreement”) to which I am a party, but not including copies of my own employment records. 

    I further certify that I have complied with all of the terms of the Agreement signed by me, including the reporting of
any Inventions (as defined in the Agreement) covered by the Agreement. 
     I further agree that in compliance with
the Agreement, I will preserve as confidential any information relating to the Company or any of it business partners, clients, consultants or licensees which has been disclosed to me in confidence during the course of my employment by the Company
unless authorized in writing to disclose such information (i) by an executive officer of the Company, in the event that I am not an executive officer of the Company, or (ii) by the Board of Directors of the Company, in the event that I am an
executive officer of the Company. I understand that nothing herein is intended to or shall prevent me from communicating directly with, cooperating with, or providing information to, any federal, state or local government regulator, including,
but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice. 
  

					
	
Date:                  
               
	  		  	  

		  		  	(Employee’s Signature)
			
		  		  	  

		  		  	(Printed or Typed Name of Employee)

  
 C-10 

 EXHIBIT B 

INTELLECTUAL PROPERTY CREATED PRIOR TO THE DATE OF THIS AGREEMENT 

List here Inventions created prior to the date of the Agreement that are hereby assigned to the Company. 

 

	*	Note: Please remember to include any domain name(s) already acquired for the Company and any trademarks or patents. 

 
  

 

  
 C-11 

 EXHIBIT C 

CALIFORNIA LABOR CODE 

California Labor Code § 2870. Application of provision providing that employee shall assign or offer to assign rights in invention to
employer. 
  

	(a)	Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 

 

	 	(1)	Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or 

 

	 	(2)	Result from any work performed by the employee for the employer. 

  

	(b)	To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable. 

  
 C-12 

 EXHIBIT D 

BACKGROUND TECHNOLOGY 
 List here
prior contracts to assign Inventions that are now in existence between any other person or entity and you. 
  

	
	  

 List here previous Inventions which you desire to have specifically excluded from the operation of this
Agreement. Continue on reverse side if necessary. 
  

	
	  

  

  
 C-13Exhibit

Exhibit 10.1 
Execution Version

AMENDED AND RESTATED PURCHASE AGREEMENT
AMONG
NORTHSTAR HEALTHCARE ACQUISITIONS L.L.C.,  
as Buyer,
and 
NOBILIS HEALTH CORP., 
and
ARIZONA CENTER FOR MINIMALLY INVASIVE SURGERY, LLC,
ARIZONA VEIN & VASCULAR CENTER, LLC
and
L. PHILIPP WALL, M.D., P.C. 
each as a Seller,
and
L. PHILIPP WALL 
as Owner

DATED OCTOBER 28, 2016

TABLE OF CONTENTS

Page

	
			
	ARTICLE I PURCHASE AND SALE OF ASSETS
	1

	Section 1.1
	Purchase and Sale
	1

	Section 1.2
	Excluded Assets
	3

	Section 1.3
	Assumed Liabilities
	4

	Section 1.4
	Retained Liabilities
	5

	Section 1.5
	Closings
	5

	Section 1.6
	Closing Deliveries.
	6

	Section 1.7
	Post-Closing Payments.
	8

	Section 1.8
	Additional Payments.
	9

	Section 1.9
	Allocation of Purchase Price
	10

	ARTICLE II REPRESENTATIONS OF SELLERS
	11

	Section 2.1
	Existence, Authority and Binding Obligation
	11

	Section 2.2
	Organization; Subsidiaries
	12

	Section 2.3
	No Conflict
	12

	Section 2.4
	Title, Sufficiency and Condition of Assets
	12

	Section 2.5
	Financial Statements
	13

	Section 2.6
	Liabilities
	13

	Section 2.7
	Legal Compliance
	14

	Section 2.8
	Taxes
	14

	Section 2.9
	Intellectual Property
	14

	Section 2.10
	Agreements
	15

	Section 2.11
	Legal Proceedings
	16

	Section 2.12
	Medicare Participation and Reimbursement/Accreditation.
	16

	Section 2.13
	Compliance
	17

	Section 2.14
	Medical Staff Matters.
	17

	Section 2.15
	Employment Matters.
	17

	Section 2.16
	Inventory..
	17

	Section 2.17
	Investment Experience.  
	18

	Section 2.18
	No SEC Review.
	18

	Section 2.19
	Purchase For Own Account.  
	18

	Section 2.20
	Rule 144.
	18

	Section 2.21
	Unregistered Registration Shares.
	18

	Section 2.22
	No Public Offering.
	19

	Section 2.23
	Certain Books and Records.
	19

	ARTICLE III
	REPRESENTATIONS OF OWNER
	19

	Section 3.1
	Authority and Binding Obligation.
	19

	Section 3.2
	With respect to the First Closing Equity.
	19

	
			
	 
	i
	 

TABLE OF CONTENTS
(continued)
Page

	
			
	Section 3.3
	With respect to the Second Closing Equity.
	21

	ARTICLE IV
	REPRESENTATIONS OF BUYER AND NHC
	24

	Section 4.1
	General.
	24

	Section 4.2
	Investment Representations.
	24

	ARTICLE V OTHER COVENANTS OF THE PARTIES
	25

	Section 5.1
	Conduct of Business Prior to Closing
	25

	Section 5.2
	Access to Books, Records and Personnel
	26

	Section 5.3
	Tax Matters
	26

	Section 5.4
	Further Assurances
	27

	Section 5.5
	Apportionment
	27

	Section 5.6
	Sellers’ Employees
	28

	Section 5.7
	Receipt of Certain Payments by the Parties
	28

	Section 5.8
	Covenant Not to Compete
	29

	Section 5.9
	Confidentiality
	31

	Section 5.10
	Mail
	31

	Section 5.11
	Third Party Consents
	31

	Section 5.12
	Use of Names
	32

	Section 5.13
	Insurance.
	32

	Section 5.14
	Lock Up.
	32

	Section 5.15
	Certain Schedules.  
	34

	Section 5.16
	Renovation and Licensure of Surprise Facility.
	34

	Section 5.17
	AHCCCS Self-Disclosure.
	34

	ARTICLE VI CONDITIONS TO CLOSING
	35

	Section 6.1
	Conditions to Obligations of the Parties
	35

	Section 6.2
	Conditions to Obligations of Sellers and Owner
	35

	Section 6.3
	Conditions to Obligations of Buyer and NHC.
	36

	ARTICLE VII PURCHASE PRICE HOLDBACK
	37

	Section 7.1
	Holdback
	37

	Section 7.2
	Distribution of Holdback
	37

	ARTICLE VIII INDEMNIFICATION
	37

	Section 8.1
	Loss and Indemnitees Defined
	37

	Section 8.2
	Indemnification by Sellers
	37

	Section 8.3
	Indemnification by Buyer and NHC.
	38

	Section 8.4
	Procedures for Indemnification.
	38

	Section 8.5
	Survival of Limitation
	39

	Section 8.6
	Limitations on Indemnification and Payment of Damages.
	39

	Section 8.7
	Characterization of Indemnification Payments
	40

	Section 8.8
	Express Negligence Rule.
	40

	ARTICLE IX TERMINATION
	40

	Section 9.1
	Termination
	40

	Section 9.2
	Effect of Termination
	41

	ARTICLE X GENERAL PROVISIONS
	41

	
			
	 
	ii
	 

TABLE OF CONTENTS
(continued)
Page

	
			
	Section 10.1
	Expenses
	41

	Section 10.2
	Notices
	41

	Section 10.3
	Severability
	43

	Section 10.4
	Entire Agreement
	43

	Section 10.5
	Assignment
	43

	Section 10.6
	No Third-Party Beneficiaries
	43

	Section 10.7
	Amendment; Waiver
	43

	Section 10.8
	Governing Law
	43

	Section 10.9
	Dispute Resolution
	43

	Section 10.10
	Counterparts
	44

	Section 10.11
	Press Releases
	44

	
			
	 
	iii
	 

	
			
	EXHIBITS:
	 
	 

	 
	 
	 

	Exhibit A
	-
	Form of Convertible Note

	Exhibit B
	-
	Form of Bill of Sale, Assignment and Assumption

	Exhibit C
	-
	Form of Employment Agreement

	Exhibit D
	-
	Form of IP License

	Exhibit E-1
	-
	Form of Sellers’ Closing Certificate

	Exhibit E-2
	 
	Form of Owner’s Closing Certificate

	Exhibit F
	-
	Form of Buyer’s Closing Certificate

	

SCHEDULES:
	 
	 

	Schedule 1.1(a)
	-
	Purchased Assets

	Schedule 1.1(c)
	-
	Accounts Receivable

	Schedule 1.1(f)
	-
	Facility Leases

	Schedule 1.2(c)
	-
	Excluded Assets – Contracts

	Schedule 1.2(d)
	-
	Excluded Assets – Other Assets

	Schedule 1.3(a)
	-
	Assumed Accounts Payable

	Schedule 1.3(d)
	-
	Equipment Indebtedness

	Schedule 2.3
	-
	No Conflict

	Schedule 2.4
	-
	Title, Sufficiency and Condition of Assets

	Schedule 2.5
	-
	Financial Statements

	Schedule 2.7
	-
	Legal Compliance

	Schedule 2.9(a)
	-
	Excluded IP Assets

	Schedule 2.10(a)
	-
	Agreements

	Schedule 2.10(b)
	-
	Health Care Professional Agreements

	Schedule 2.10(c)
	-
	Related Party Agreements

	Schedule 2.11
	-
	Sellers’ Legal Proceedings

	Schedule 2.12
	-
	NPIs

	Schedule 2.14
	-
	Medical Staff Matters

	Schedule 3.3(f)
	-
	First Closing Leases

	Schedule 3.2(g)
	-
	Owner and First Closing Facilities’ Legal Proceedings

	Schedule 3.3(g)
	-
	Owner and Second Facilities’ Legal Proceedings

	Schedule 5.6
	-
	Transferred Employees

	Schedule 5.8
	-
	Patents and Trademarks

[Remainder of Page Intentionally Left Blank]

	
			
	 
	iv
	 

INDEX OF DEFINED TERMS

	
		
	Defined Term
	Section

	AAAASF
	2.12(c)

	ACMIS
	Preamble

	Affiliate
	2.10(c)

	AHCCCS
	5.17

	Allocation Objection Notice
	1.9(a)

	Allocation Resolution Period
	1.9(a)

	Anniversary Vascular EBITDA
	1.8(a)(v)

	Agreement
	Preamble

	Applicable Laws
	1.2(b)

	AP
	1.3(a)

	AR
	1.1(c)

	Assumed Liabilities
	1.3

	AVVC
	Preamble

	Business
	Recitals

	Buyer
	Preamble

	Buyer Indemnitees
	8.1(b)

	Cash Purchase Price
	1.1(a)(iii)

	Closing Vascular EBITDA
	1.8(a)(iv)

	Closing Vascular EBITDA Calculation Date
	1.8(a)(iii)

	Code
	1.9(a)

	Disposition
	5.14(a)

	EBITDA
	1.8(a)(i)

	EBITDA Objection Notice
	1.8(b)

	EBITDA Resolution Period
	1.8(b)

	Employment Agreement
	1.6(a)(ii)

	Equipment Indebtedness
	1.3(d)

	ERISA
	1.2(a)

	Excluded Assets
	1.2

	Facility Leases
	1.1(f)

	Financial Statements
	2.5(a)(ii)

	First Closing
	1.5(a)

	First Closing Date
	1.5(a)

	First Closing Equity
	Recitals

	First Closing Facilities
	Recitals

	First Closing Leases
	3.2(f)(i)

	First Closing Straddle Period
	1.3(e)

	Fundamental Representations
	8.5(a)(ii)

	GAAP
	1.8(a)(ii)

-v-

	
		
	Government Programs
	1.2(g)

	Governmental Authority
	1.2(b)

	Health Care Professional Agreements
	2.10(b)

	Holdback
	1.1(d)

	Included Cash and Accounts Receivable
	1.1(c)

	Independent Accountant
	1.8(c)

	Indemnified Party
	8.4(a)

	Indemnifying Party
	8.4(a)

	Intellectual Property
	2.9(a)

	Interim Financial Statements
	2.5(a)(ii)

	Inventory and Inventories
	2.16

	IP License
	1.6(a)(iv)

	Lease Amendments
	1.6(a)(iii)

	Loss
	8.1(a)

	Management Services Agreement
	1.6(a)(xiii)

	NHC
	Preamble

	NHCAPA
	Preamble

	NPIs
	1.2(g)

	Non-Transferred Purchased Asset
	5.11

	Note
	1.1(a)(ii)

	Owner
	Preamble

	Owner’s Knowledge
	3.2(c)

	Parties
	Preamble

	Party
	Preamble

	PC
	Preamble

	Permits
	1.2(b)

	Permitted Encumbrances
	2.4

	Program Agreements
	2.12(a)

	PTO
	5.6(b)

	Prime Meridian
	1.6(a)(xiv)

	Purchase Price
	1.1(a)

	Purchased Assets
	1.1(a)

	Restricted Territory
	5.8

	Retained Liabilities
	1.4(c)

	SEC
	2.18

	Second Closing
	1.5(b)

	Second Closing Date
	1.5(b)

	Second Closing Equity
	Recitals

	Second Closing Facilities
	Preamble

	Second Closing Straddle Period
	1.3(f)

	Securities Act
	2.18

	Seller(s)
	Preamble

	Seller Indemnitees
	8.1(c)

-vi-

	
		
	Seller Insurance
	5.13

	Sellers’ Knowledge
	2.6

	Shares
	1.1(a)(i)

	Surprise Facility
	Preamble

	Tax Returns
	1.9(c)

	Taxes
	1.3(e)

	Third Party Claim
	8.4(a)

	Trade Secrets
	2.9(a)(iv)

	Transaction Documents
	2.1(a)

	Transactions
	2.1(a)

	Transferred Employees
	5.6(a)

	Transferred IP Assets
	2.9(a)

	Unaudited Financial Statements
	2.5(a)(i)

[Remainder of Page Intentionally Left Blank]

-vii-

AMENDED AND RESTATED PURCHASE AGREEMENT
This Amended and Restated  Purchase Agreement (this “Agreement”) is dated October 28, 2016, among Northstar Healthcare Acquisitions, L.L.C., a Delaware limited liability company (“Buyer”), Nobilis Health Corp., a British Columbia corporation (“NHC”), Arizona Center for Minimally Invasive Surgery, LLC, an Arizona limited liability company (“ACMIS”), L. Philipp Wall, M.D., P.C., an Arizona professional corporation (“PC”), Arizona Vein & Vascular Center, LLC, an Arizona limited liability company and wholly owned subsidiary of PC  (“AVVC” and with ACMIS and PC, each a “Seller” and collectively “Sellers”), and L. Philipp Wall, a resident of the State of Arizona (“Owner”). Buyer, NHC, Sellers and Owner are referred to collectively as the “Parties” and each individually as a “Party.”
A.    Sellers collectively own and operate an independent, comprehensive vascular and podiatry practice with five medical and surgical clinic locations located in the Phoenix and Tucson metropolitan areas, at which medical practitioners treat patients with venous diseases and provide a range of other vascular, radiology and podiatry services (the “Business”).
B.    Sellers desire to sell to Buyer, and Buyer desires to purchase from Sellers, substantially all of the assets, and certain specified liabilities, of the Business.
C.    Owner owns (i) all of the limited liability company interests (collectively, the “First Closing Equity”) of Chandler Surgery Center, LLC, Oracle Surgery Center, LLC, and Phoenix Surgery Center, LLC, each an Arizona limited liability company (collectively the “First Closing Facilities”), and (ii) all of the limited liability company interests (the “Second Closing Equity”) of NHC Arizona Professional Associates, an Arizona limited liability company (“NHCAPA”) and Surprise Surgery Center LLC, an Arizona limited liability company (the “Surprise Facility” and, together with NHCAPA, the “Second Closing Facilities”).  
D.    Owner desires to sell to Buyer, and Buyer desires to purchase from Owner, the First Closing Equity and the Second Closing Equity. 
In consideration of the mutual covenants and agreements in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I 
 
PURCHASE AND SALE OF ASSETS

Section 1.1    Purchase and Sale.  
(a)    At the First Closing, (i) Sellers shall sell to Buyer, and Buyer shall purchase from Sellers, all of Sellers’ right, title and interest in all of the assets of Sellers listed or described on Schedule 1.1(a), including the Included Cash and Accounts Receivable and Facility Leases; but excluding the Excluded Assets (collectively, the “Purchased Assets”), and (ii) Owner shall sell to Buyer, and Buyer shall purchase from Owner, all of Owner’s right, title and interest in all of the First Closing Equity, free and clear of all encumbrances, for a purchase price to be paid at the First Closing equal to Twenty-Two Million Dollars ($22,000,000) (the “Purchase Price”), as may be adjusted pursuant to Section 1.8, consistent of the following:
(i)    a number of shares of common stock of NHC to be issued to Owner equal to Two Million Two Hundred Fifty Thousand Dollars ($2,250,000) divided by the closing price of such common stock on the NYSE MKT on the day prior to Closing, rounded up to the nearest whole share (the “Shares”), which Shares will be subject to certain lock-up restrictions as set forth in Section 5.14 of this Agreement; 
(ii)    a convertible note, substantially in the form attached hereto as Exhibit A, in the principal amount of Two Million Two Hundred Fifty Thousand Dollars ($2,250,000) executed by Buyer and NHC in favor of ACMIS (the “Note”); and
(iii)    the balance of the Purchase Price in cash (the “Cash Purchase Price”).
(b)    At the Second Closing, Owner shall sell to Buyer, and Buyer shall purchase from Owner, all of Owner’s right, title and interest in the Second Closing Equity for no additional consideration; the parties having agreed that the Purchase Price included the consideration for the Second Closing Equity.
(c)    For the purposes of this Agreement, “Included Cash and Accounts Receivable” means (i) cash in the sum of Five Hundred Thousand Dollars ($500,000) and all rights to any bank accounts, and (ii) all accounts receivable and other rights to payment from patients and customers of the Business, but excluding Government Programs, with respect to goods sold and services provided within the 90-day period immediately preceding the First Closing (the “AR”), which will be set forth on Schedule 1.1(c) and is subject to finalization pursuant to Section 1.7. 
(d)    One Million Fifty Thousand Dollars ($1,050,000) will be held back (the “Holdback”) from the Cash Purchase Price pursuant to Article VII.
(e)    (i) On the First Closing Date, Sellers and Owner shall convey the Purchased Assets and the First Closing Equity, as applicable, and (ii) on the Second Closing Date, Owner shall convey the Second Closing Equity, to certain direct or indirect, wholly-owned subsidiaries of Buyer, 

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as designated by Buyer, pursuant to the Bill of Sale delivered in accordance with Section 1.6(a)(i) and Section 1.6(c)(i), as applicable.  Notwithstanding the foregoing, the conveyance of the Purchased Assets, the First Closing Equity and the Second Closing Equity directly to any direct or indirect, wholly-owned subsidiary of Buyer is solely intended to minimize the need for conveyance documents, and the intended treatment of the transactions hereunder is for Sellers and Owner to be deemed to have sold and conveyed the Purchased Assets, the First Closing Equity and the Second Closing Equity to Buyer, and for Buyer to have contributed such assets, as applicable, to its direct and indirect, wholly-owned subsidiaries.
(f)    For purposes of this Agreement, the “Facility Leases” are certain real property leases related to the Business, which are in full force and effect, as set forth on Schedule 1.1(f).

Section 1.2    Excluded Assets.  The Purchased Assets do not include the following assets of Sellers (collectively, the “Excluded Assets”):
(a)    all ownership and other rights with respect to any Plans including, without limitation, all assets and contracts of or relating to any Plans, except as set forth in Sections 1.3(b) and 1.3(c).  With respect to Sellers, the term “Plans” means all employee welfare benefit plans within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended, and the regulations and rulings issued thereunder (“ERISA”), all employee pension benefit plans within the meaning of Section 3(2) of ERISA, all employee stock option or stock purchase plans, bonus or incentive plans or programs, severance pay plans, policies, practices or agreements, fringe benefits, and employment agreements;
(b)    any franchises, authorizations, licenses, permits, variances, consents, registrations, accreditations, certifications, certificates of need, enrollments, qualifications, operating authority, concessions, exemptions, approvals, orders, grants or permissions issued by, or otherwise granted from Governmental Authorities (collectively, “Permits”) necessary to own, lease and operate the Sellers’ properties and to carry on their businesses as they are now being conducted that by its terms is not transferable to Buyer.  The term “Governmental Authority” means any domestic, foreign or multi-national federal, state, provincial, regional, municipal or local governmental or administrative authority, including any court, tribunal, agency, bureau, committee, board, regulatory body, administration, commission or instrumentality constituted or appointed by any such authority, and shall include any agency, branch or other governmental body charged with the responsibility and/or vested with the authority to administer and/or enforce any applicable laws, statutes, orders, ordinances, rules, regulations, policies, or guidelines (collectively, “Applicable Laws”), including but not limited to the Centers for Medicare and Medicaid Services, The Food and Drug Administration, the United States Department of Health and Human Services Office of Inspector General, and any Medicare or Medicaid contractors, auditors, intermediaries or carriers;
(c)    all claims and rights under the contracts set forth on Schedule 1.2(c);
(d)    the assets set forth on Schedule 1.2(d);

3

(e)    the corporate seals, organizational documents, minute books, and Tax Returns, or other records having to do with the corporate organization of Sellers; 
(f)    any equity interests in any Seller;
(g)    all national provider identifiers (“NPIs”), all Medicare, Medicaid, TRICARE, Department of Labor and other governmental payor program (collectively, the “Government Programs”) provider numbers and related provider agreements;
(h)    all personnel records and other records that a Seller is required by Applicable Laws to retain in its possession, subject to Buyer’s right to receive copies thereof to the extent permitted by Applicable Laws;
(i)    right to settlements and retroactive adjustments, if any, for reporting periods ending on or prior to the First Closing Date, whether open or closed, arising from or against the United States government under the Government Programs and against any third party payor programs which settle upon a basis other than on individual claims basis; 
(j)    Sellers’ rights under the Transaction Documents; and
(k)    All (i) cash, cash equivalents or marketable securities in excess of Five Hundred Thousand Dollars ($500,000), (ii) all accounts receivable and other rights to payment from patients and customers of Sellers, as well as private third party payor programs, including but not limited to any insurance company or health care provider (such as a health maintenance organization, preferred provider organization, or any other managed care program), but excluding Government Programs, with respect to goods sold and services provided by Sellers more than 90 days prior to the First Closing, and (iii) all accounts receivables and other rights to payment from only Government Programs with respect to goods sold and services provided by Sellers prior to the First Closing.

Section 1.3    Assumed Liabilities.  Buyer agrees to assume and perform when due only the following liabilities of Sellers, the First Closing Facilities, and the Second Closing Facilities, as applicable (the “Assumed Liabilities”):
(a)    the accounts payable incurred in the ordinary course of business of Sellers through the First Closing, as set forth on Schedule 1.3 (the “AP”) and is subject to finalization pursuant to Section 1.7;
(b)    the non-debt liabilities arising out of the ownership and operation of the Purchased Assets, the Business, the First Closing Equity and the First Closing Facilities after the First Closing;
(c)    the non-debt liabilities arising out of the ownership and operation of the Second Closing Equity and the Second Closing Facilities after the Second Closing; 
(d)    all remaining payment obligations under capital leases and other equipment-related indebtedness and obligations for equipment included in the Purchased Assets or constituting Non-Transferred Purchased Assets (collectively, “Equipment Indebtedness”), set forth on 

4

Schedule 1.3(d), and all other liabilities arising after the First Closing with respect to Equipment Indebtedness; 
(e)    all liabilities with respect to any federal, provincial, state, local or foreign tax or other assessment (“Taxes”) related to the Purchased Assets and the First Closing Facilities for (i) any period beginning on or after the First Closing and (ii) for any period beginning prior to the First Closing, but ending after the First Closing (a “First Closing Straddle Period”), solely to the extent such liability relates to the portion of the First Closing Straddle Period falling after the First Closing; and
(f)    all liabilities with respect to any Taxes related to the Second Closing Equity and the Second Closing Facilities for (i) any period beginning on or after the Second Closing and (ii) for any period beginning prior to the Second Closing, but ending after the Second Closing (a “Second Closing Straddle Period”), solely to the extent such liability relates to the portion of the Second Closing Straddle Period falling after the Second Closing.

Section 1.4    Retained Liabilities.  
(a)    Sellers shall retain responsibility for performing when due, and Buyer shall not assume or have any responsibility for, all liabilities of Sellers related to the Business and the Purchased Assets other than the Assumed Liabilities, including (i) the ownership and operation of the Business and the Purchased Assets prior to the First Closing; (ii) the ownership and operation of the Second Closing Equity and Second Closing Facilities prior to the Second Closing; (iii) the Excluded Assets; (iv) the termination of any employees of Sellers who are not Transferred Employees; (v) Transferred Employees who do not report for work with Buyer upon the First Closing; and (vi) any liability relating to or arising out of any employment action or practice in connection with Seller’s employment or termination of employment of any persons currently or formerly employed or seeking to be employed by the Sellers, including liabilities based upon breach of employment contract, employment discrimination, wrongful termination, wage and hour compliance (including, without limitation, employee classification, overtime and minimum wage obligations), independent contractor classification, health and safety requirements, immigration and/or worker authorization requirements, disability accommodation and leave laws, workers’ compensation, constructive termination, failure to give reasonable notice or pay in lieu of notice, severance or termination pay or the Consolidated Omnibus Budget Reconciliation Act, as amended, the Employee Retirement Income Security Act of 1974, as amended, the Worker Adjustment Retraining Notification Act of 1988, as amended, the Fair Labor Standards Act, as amended, or the National Labor Relations Act, as amended, or any equivalent state, municipal, county, local, foreign or other Applicable Law.
(b)    For the purposes of this Agreement, the liabilities described in Section 1.4(a) and Section 1.4(b) shall collectively be the “Retained Liabilities”). 

Section 1.5    Closings.  
(a)    The consummation of the sale and purchase of the Purchased Assets and the First Closing Equity (the “First Closing”) will take place at the offices of Orrick, Herrington & 

5

Sutcliffe LLP located at 1301 McKinney Street, Suite 4100, Houston, Texas 77010, at 10:00 a.m. local time on the second business day after all of the conditions to closing in Sections 6.1, 6.2(a), and 6.3(a) are satisfied or waived (other than conditions which are to be satisfied on the First Closing Date), or at such other time, date or place as Sellers, Owner and Buyer may mutually agree upon in writing (the “First Closing Date”).  The First Closing shall be deemed effective as of 12:00 a.m., Houston time, on the First Closing Date.
(b)    The consummation of the sale and purchase of the Second Closing Equity (the “Second Closing”) will take place at the same location and time as in Section 1.5(a), on the second business day after all of the conditions to closing in Sections 6.1, 6.2(b), and 6.3(b) are satisfied or waived (other than conditions which are to be satisfied on the Second Closing Date), or at such other time, date or place as Owner and Buyer may mutually agree upon in writing (the “Second Closing Date”).  The Second Closing shall be deemed effective as of 12:00 a.m., Houston time, on the Second Closing Date.

Section 1.6    Closing Deliveries.
(a)    At the First Closing, Sellers and Owner, as applicable, shall deliver to Buyer:
(i)    a bill of sale, assignment and assumption with respect to the Purchased Assets and the First Closing Equity, substantially in the form attached hereto as Exhibit B, duly executed by Sellers and Owner, in favor of certain direct or indirect, wholly-owned subsidiaries of Buyer, as designated by Buyer to Seller prior to the First Closing Date;
(ii)    an employment agreement, substantially in the form attached hereto as Exhibit C (the “Employment Agreement”), executed by Owner;
(iii)    amendments to the First Closing Leases and Facility Leases, in form and substance satisfactory to the Parties (the “Lease Amendments”), executed by the applicable lessors and lessees;
(iv)    an intellectual property license to certain of the Excluded Assets, substantially in the form attached hereto as Exhibit D (the “IP License”);
(v)    certificates of good standing with respect to each Seller, the First Closing Facilities, and Prime Meridian, issued by the Arizona Secretary of State within five business days prior to the First Closing Date; 
(vi)    a closing certificate, substantially in the form attached hereto as Exhibit E-1, executed by each Seller, and a certificate, substantially in the form attached hereto as Exhibit E-2, executed by Owner;
(vii)    any approvals or consents of any rulemaking authority, person or entity applicable to Sellers, Owner, the Purchased Assets, the First Closing Equity, or the First Closing Facilities required by Section 5.4;

6

(viii)    any evidence of payoff of debt (excluding Equipment Indebtedness) of each Seller or Owner or release of liens encumbering any of the Purchased Assets, the First Closing Equity, or the First Closing Facilities requested by Buyer;
(ix)    evidence that the lease related to Owner’s 2013 Tesla Model S P Sedan, financed by ACMIS, under the Combination and Loan Security Agreement (#409606-700) dated July 26, 2013 by and between ACMIS, as Debtor, and Wells Fargo Equipment Finance, Inc., has been removed from the cross-default provisions of any agreements acquired by Buyer set forth in Schedule 1.1(a);
(x)    all books and records of Sellers or Owner related to the Purchased Assets, the First Closing Equity, or the First Closing Entities, to a location as directed by Buyer;
(xi)    a Schedule 1.1(c) with respect to the AR as of the First Closing Date;
(xii)    a revised Schedule 1.3(a) with respect to the AP as of the First Closing Date; 
(xiii)    a Full Service Facility and Management Agreement by and between, on the one hand, ACMIS and PC and, on the other hand, Buyer or Buyer’s Affiliates, in form and substance mutually satisfactory to the Parties, with respect to the operation of the Second Closing Facilities after the First Closing (the “Management Services Agreement”), executed by ACMIS and PC;  
(xiv)    the assignment of interest, by and between Prime Meridian Investment Group, L.L.L.P. (“Prime Meridian”), as assignor and the sole member of the First Closing Facilities, and Owner, as assignee, transferring and conveying right, title and interest in all of the membership units of the First Closing Facilities, in the form and substance mutually satisfactory to the Parties, executed by Prime Meridian and Owner; and
(xv)    such other documents as Buyer may reasonably request.
(b)    At the First Closing, Buyer shall deliver to Sellers:
(i)    the Cash Purchase Price;
(ii)    the Note, executed by Buyer; and
(iii)    a certificate representing the Shares issued in the name of Owner;
(iv)    any approvals or consents of any rulemaking authority, person or entity applicable to Buyer required by Section 5.4;
(v)    the Employment Agreement, executed by Buyer;
(vi)    a corporate guarantee for each of the First Closing Leases, in the form and substance mutually satisfactory to the Parties, executed by Buyer; 

7

(vii)    the Management Services Agreement, executed by Buyer or its Affiliate; and
(viii)    a closing certificate, substantially in the form attached hereto as Exhibit F, executed by Buyer.
(c)    At the Second Closing, Owner shall deliver to Buyer:
(i)    a bill of sale, assignment and assumption with respect to the Second Closing Equity, substantially in the form attached hereto as Exhibit B, duly executed by Owner, in favor of a certain direct or indirect, wholly-owned subsidiary of Buyer, as designated by Buyer to Owner prior to the Second Closing Date;
(ii)    a certificate of good standing with respect to the Second Closing Facilities, issued by the Arizona Secretary of State within five business days prior to the Second Closing Date;
(iii)    a closing certificate, substantially in the form attached hereto as Exhibit E-2, executed by Owner;
(iv)    any approvals or consents of any rulemaking authority, person or entity applicable to Owner, the Second Closing Facilities, their assets or the Second Closing Equity required by Section 5.4;
(v)    any evidence of payoff of debt or release of liens encumbering the Second Closing Equity or the Second Closing Facilities requested by Buyer;
(vi)    all books and records of Owner related to the  Second Closing Equity or the Second Closing Facilities, to a location as directed by Buyer; 
(vii)    the written resignations of any officers or managers of the Second Closing Facilities; and
(viii)    such other documents as Buyer may reasonably request.
(d)    At the Second Closing, Buyer shall deliver to Owner:
(i)    any approvals or consents of any rulemaking authority, person or entity applicable to Buyer required by Section 5.4; and
(ii)    a closing certificate, substantially in the form attached hereto as Exhibit F, executed by Buyer.

Section 1.7    Post-Closing Payments.
(a)    Within 90 days after the First Closing, Sellers and Buyer shall review in detail Schedule 1.1(c) and Schedule 1.3 to confirm the contents of those schedules.  The Parties 

8

agree that their intent is (i) for Buyer to assume the accounts payable incurred in the ordinary course of business of Sellers through the First Closing (with reasonable aging) and to reimburse Sellers for accounts payable that relate to services rendered to Sellers or assets received by Sellers (and conveyed to Buyer pursuant to this Agreement) during the period from August 1, 2016 through the Closing, that were paid by Sellers, and (ii) for Sellers to pay to Buyer any amounts received by Sellers on accounts receivable and other rights to payment from patients and customers of the Business, but excluding Government Programs, with respect to goods sold and services provided within the 90-day period immediately preceding the First Closing.  Upon the determination by the Parties of the applicable reimbursement amounts of accounts payable and receivables as described above, those amounts will be offset against one another and the Party owing the remainder to the other Party shall promptly make such payment. 
(b)    Within 90 days after the First Closing, Sellers may deliver to Buyer evidence that up to 46% of the amount paid by Buyer at the First Closing to pay off the loan from Wells Fargo Bank, N.A. (Promissory Note #1733433962-26 dated June 14, 2016) was originally used to purchase equipment that was conveyed to Buyer at the First Closing.  Upon Buyer’s agreement as to such evidence, which agreement shall not be unreasonably withheld, Buyer shall pay to Sellers the agreed amount.

Section 1.8    Additional Payments.  
(a)    For the purposes of this Agreement:
(i)    “EBITDA” means earnings before interest, taxes, depreciation and amortization, calculated as of any given time, in accordance with GAAP. 
(ii)    “GAAP” means United States generally accepted accounting principles.
(iii)    “Closing Vascular EBITDA Calculation Date” means (A) if First Closing occurs on the last day of any month, the First Closing Date, or (B) if the First Closing occurs on any other day, the last day of the month prior to the month in which the First Closing occurs.
(iv)    “Closing Vascular EBITDA” means the trailing 12 months EBITDA of the Business, calculated as of the Closing Vascular EBITDA Calculation Date.
(v)    “Anniversary Vascular EBITDA” means the trailing 12 months EBITDA of the Business, the Purchased Assets, and any vascular business (and revenues from such vascular business) at any other current or future Nobilis facility, as well as any other assets that Buyer decides to contribute to be part of the Business unit after the First Closing, within the Buyer’s discretion, calculated as of the first anniversary of the Closing Vascular EBITDA Calculation Date.
(b)    At least two Business Days prior to the First Closing Date, Sellers shall deliver to Buyer its good-faith calculation of the estimated Closing Vascular EBITDA.  Within 90 days after the First Closing Date, Buyer may deliver to Sellers a notice setting forth, in reasonable detail, Buyer’s good-faith objections to the Sellers’ calculation of the estimated Closing Vascular 

9

EBITDA (the “EBITDA Objection Notice”).  If Buyer fails to timely deliver the EBITDA Objection Notice, the Sellers’ calculation of the estimated Closing Vascular EBITDA shall be final and binding on the Parties.  If Buyer timely delivers the EBITDA Objection Notice, the Parties shall attempt to resolve the dispute within 30 days after Seller’s receipt of the EBITDA Objection Notice (the “EBITDA Resolution Period”). 
(c)    If Buyer and Seller are unable to resolve all disputes within the EBITDA Resolution Period, Buyer shall promptly, but no later than seven days after the EBITDA Resolution Period, select the Phoenix, Arizona office of Grant Thornton LLP to arbitrate the dispute (the “Independent Accountant”).  Each Party shall provide the other with copies of its relevant books and records and provide reasonable access to its personnel as necessary to verify the accuracy of the applicable disputed items.  Buyer, on the one hand, and Sellers, on the other hand, shall equally pay the fees and expense of the Independent Accountant.  
(d)    Within 15 days after submission of the dispute to the Independent Accountant, Buyer and Sellers shall each submit to the Independent Accountant (with a copy to the other Parties) their respective proposals for determination of the disputed items.  The Independent Accountant shall schedule a hearing at a site mutually agreeable to Buyer and Sellers no later than 15 days after receipt of the last proposal.  No later than seven days prior to the hearing, each party may submit additional information and arguments in response to the proposal offered by the other Party.  Within 15 days after the hearing, the Independent Accountant shall choose the proposal of either the Buyer or Sellers with respect to the disputed claims, which, based on the information and evidence presented, the Independent Accountant determines is the better resolution of the disputed items.     
(e)    The determination of the Closing Vascular EBITDA, either among the Parties or by the Independent Accountant, will be final, binding and conclusive on the Parties. 
(f)    On or before 90 days after the first anniversary of the Closing Vascular EBITDA Calculation Date, Buyer shall deliver to Sellers its good-faith calculation of the Anniversary Vascular EBITDA.  Within 15 days after Sellers’ receipt of such calculation, Sellers may deliver to Buyer a notice setting forth, in reasonable detail, Sellers’ good-faith objections to such calculations.  If Sellers’ fail to timely deliver such notice, Buyer’s calculation of the Anniversary Vascular EBITDA shall be final and binding upon the Parties. If Sellers timely deliver an objection to Buyer’s calculation of the Anniversary Vascular EBITDA, the parties shall attempt to resolve such dispute within 30 days after Buyer’s receipt of Sellers’ objections.  If Buyer and Seller are unable to resolve all disputes within such period, Buyer and Seller shall resolve such disputes in accordance with the same terms and conditions set forth in clauses (c) and (d) of this Section 1.8 above. The determination of the Anniversary Vascular EBITDA, either among the Parties or by the Independent Accountant, will be final, binding and conclusive on the Parties. 
(g)    Upon the final determination of the Anniversary Vascular EBITDA, Buyer shall make an additional payment to ACMIS in an amount equal to fifty percent (50%) of the amount determined by subtracting the finally-determined Closing Vascular EBITDA from the finally-determined Anniversary Vascular EBITDA, as long as such difference is a positive number.  Such amount shall be paid in cash by Buyer by wire transfer to accounts specified by ACMIS.  

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(h)    If the Employment Agreement is terminated for “Cause” pursuant to Section 4(c) thereof prior to the first anniversary of the First Closing Date, Buyer shall reduce any payments remaining to be made to Sellers pursuant to this Section 1.8 by Five Thousand Dollars ($5,000) for each month (prorated for any partial months) that remains in the first year under the applicable Employment Agreement (calculated from the time of such termination).  The remedy in this Section 1.8(h) is not exclusive and Buyer is entitled to any other remedies available under law or equity due to Owner’s breach of the terms of the Employment Agreement.

Section 1.9    Allocation of Purchase Price.  
(a)    The Parties shall allocate the Purchase Price in accordance with Section 1060 of the Internal Revenue Code of 1986, as amended (together with any rules or regulations issued thereunder, “Code”).  Within 90 days after the First Closing Date, Sellers shall provide Buyer a draft allocation of the Purchase Price and the liabilities of Sellers and Owner among the Purchased Assets, the First Closing Equity, and the Second Closing Equity.  Within 15 days after Buyer’s receipt of Sellers’ draft allocation of the Purchase Price, Buyer shall notify Sellers in writing of any good-faith objections to such allocations (the “Allocation Objection Notice”).  If Buyer fails to timely deliver the Allocation Objection Notice, the Sellers’ draft allocation of the Purchase Price shall be final and binding on the Parties.  If Buyer timely delivers the Allocation Objection Notice, the Parties shall attempt in good faith to resolve those disputes within a 30-day period after Sellers’ receipt of the Allocation Objection Notice (the “Allocation Resolution Period”).  
(b)    If Buyer and Sellers are unable to resolve all disputes within the Allocation Resolution Period, Buyer shall promptly, but no later than seven days after the Resolution Period, select the Phoenix, Arizona office of Grant Thornton LLP to arbitrate the dispute. The process for determining the final allocation of the Purchase Price shall be the same as set forth in Section 1.8 for the final determination of the Anniversary Vascular EBITDA.
(c)    The Parties shall timely file any information that may be required pursuant to Treasury Regulations promulgated under Section 1060(b) of the Code, and shall use the allocation of the Purchase Price as finally determined pursuant to this Section 1.9, in connection with the preparation of Internal Revenue Service Form 8594 as that form relates to the Transactions.  The Parties shall not file any returns, declarations, reports, statements and other documents of, relating to, or required to be filed in respect of, any and all Taxes (“Tax Returns”) or otherwise take any position which is inconsistent with such allocation, except as may be adjusted by subsequent agreement following an audit by the Internal Revenue Service or by court decision.  The Parties agree that the amount of the Purchase Price allocated to the covenant not to compete in Section 5.8 is not intended to be a liquidated damages amount or to place a value or ceiling on the amount of damages that could be suffered by Buyer if such covenants are breached.

ARTICLE II     
 
REPRESENTATIONS OF SELLERS
Each of the Sellers, jointly and severally, represent to Buyer and NHC as follows, as of the date of this Agreement and the First Closing Date:

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Section 2.1    Existence, Authority and Binding Obligation.  
(a)    Each Seller is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation, with full power and authority to enter into and deliver this Agreement and the other agreements, documents or instruments contemplated hereby (collectively, the “Transaction Documents”), to carry out its obligations under, and to consummate the transactions contemplated by, the Transaction Documents (collectively, the “Transactions”).  
(b)      This Agreement constitutes, and, when executed and delivered, the Transaction Documents will constitute, the legal, valid and binding obligations of Sellers, enforceable against them in accordance with their terms, except as such enforceability may be limited by laws affecting the enforcement of creditors’ rights and general principles of equity.  
(c)    Each Seller is not qualified to do business in any jurisdiction other than its jurisdiction of formation.
(d)    There are no outstanding powers of attorney relating to or binding on the Business or the Purchased Assets.  

Section 2.2    Organization; Subsidiaries.  
(a)    Each Seller is in compliance with all provisions of its governing documents.  
(b)    Each Seller does not own any direct or indirect interest or other rights in any other entity, except AVVC is a wholly-owned subsidiary of PC.  
(c)    There are no outstanding third party rights for the issuance, sale or purchase of any security or equity interest of any Seller.

Section 2.3    No Conflict.  Except as set forth in Schedule 2.3, the execution, delivery and performance of this Agreement, does not and will not:
(a)    breach, or require the consent of any person or entity pursuant to, Sellers’ governing documents;
(b)    breach, or require the consent of any person or entity pursuant to, any law, regulation, permit, order, award or other non-contractual restriction or rule applicable to Sellers, their respective assets, the Purchased Assets or the Business;
(c)    result in the creation of any encumbrance upon Sellers, their respective assets or the Purchased Assets; or
(d)    (whether with notice or the lapse of time or both) under any contract or other instrument binding on Sellers:
(i)    result in any breach of any contract included in the Purchased Assets;

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(ii)    provide any other person or entity rights of termination, rescission, amendment, acceleration or cancellation of any contract included in the Purchased Assets; or
(iii)    require any authorization or approval of any person or entity.

Section 2.4    Title, Sufficiency and Condition of Assets.  Owner owns, directly or indirectly, one hundred percent (100%) of the equity interests of Sellers.  Sellers own, and at Closing shall transfer to Buyer, good and valid title to all of the Purchased Assets, free and clear of all encumbrances other than Permitted Encumbrances. Except as set forth in Schedule 2.4, none of the Purchased Assets is leased or licensed from or to any third party.  The Purchased Assets owned, leased or licensed by Sellers are all the assets necessary for the operation of the Business.  All of the Purchased Assets are in good condition and repair, ordinary wear and tear excepted, and are usable in the ordinary course of business. For the purposes of this Agreement, “Permitted Encumbrances” means:
(a)    those items set forth on Schedule 2.4 identified as Permitted Encumbrances;
(b)    liens for Taxes not yet due and payable;
(c)    mechanics', carriers', workmen's, repairmen's or other like liens arising or incurred in the ordinary course of business consistent with past practice or amounts that are not delinquent and which are not, individually or in the aggregate, material to the Business or the Purchased Assets; and
(d)    easements, rights of way, zoning ordinances and other similar encumbrances affecting real property which are not, individually or in the aggregate, material to the Business or the Purchased Assets, which do not prohibit or interfere with the current operation of any Purchased Asset.

Section 2.5    Financial Statements.  
(a)    Sellers have delivered to Buyer true and correct copies of: 
(i)    Sellers’ unaudited financial statements for the year ended December 31, 2015, consisting of (A) the balance sheet of the Business as of such date, and (B) the related statements of income and retained earnings, stockholders' equity and cash flow for the year then ended (the “Unaudited Financial Statements”); and 
(ii)    Sellers’ unaudited financial statements for the two-month period ended February 28, 2016 (the “Interim Financial Statements”, and together with the Unaudited Financial Statements, the “Financial Statements”).  
(b)    Except as disclosed on Schedule 2.5, the Financial Statements have been prepared from the books and records of Sellers in accordance with GAAP applied on a consistent basis throughout the periods covered by the Financial Statements and present fairly, in all material respects, the financial condition of Sellers as of such dates and the results of operations for such periods.  

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(c)    Except as disclosed on Schedule 2.5, since the date of the Interim Financial Statements, there has been no material adverse change in the assets, liabilities or financial condition of Sellers from that set forth in the Financial Statements.  

Section 2.6    Liabilities.  Except as set forth in the Financial Statements, there are no material obligations or liabilities (potential or otherwise) of Seller of any nature pending, or to Sellers’ Knowledge, threatened, against any Seller, Owner or the Purchased Assets, other than contractual liabilities incurred in the ordinary course of business that are not required to be disclosed in the Financial Statements under GAAP and other than liabilities that have arisen after the date of the Interim Financial Statements in the ordinary course of business, consistent with past practices.  There is no reasonable basis for any other obligation or liability to be imposed upon Sellers.  For the purposes of this Agreement, “Sellers’ Knowledge” means the actual knowledge of Owner or any director or officer of Sellers.

Section 2.7    Legal Compliance.  Sellers have materially complied with all Applicable Laws.  Neither Sellers nor any person or entity acting on behalf of Sellers has made or received any unlawful payments or contributions.  Except as set forth on Schedule 2.7, Sellers hold all Permits necessary to own the Purchased Assets and conduct the Business, and to Sellers' Knowledge except as set forth on Schedule 2.7 or as may result from the First Closing, no event has occurred or other fact exists with respect to such Permits that allows, or after notice or the lapse of time or both, would allow, revocation or termination of any such Permits or would result in any other impairment in the rights of any holder thereof.

Section 2.8    Taxes.  Sellers have filed all material Tax Returns that they were respectively required to file.  All such Tax Returns were correct and complete in all material respects and were prepared in compliance with all Applicable Laws.  To Sellers’ Knowledge, Sellers have not received any notice of deficiency or assessment or proposed deficiency or assessment with respect to the Purchased Assets, the Business or any Tax Returns.  All Taxes due and owing by Sellers through the First Closing have been paid.  All Taxes required to be withheld by any Seller have been withheld and timely paid to the relevant taxing authority.  Sellers have complied with all information reporting related to any Taxes.  No Seller is currently the beneficiary of any extension of time within which to file any Tax Returns.  To Sellers’ Knowledge, no claim has ever been made by an authority in a jurisdiction where Seller does not file Tax Returns that a Seller is or may be subject to taxation by that jurisdiction.  Sellers have not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.

Section 2.9    Intellectual Property.  
(a)    Except as set forth in Schedule 2.9(a), the Purchased Assets include all of the Intellectual Property in existence on or before the First Closing Date that is or has been used or useful with respect to the conduct of the Business excluding any included in the Excluded Assets (collectively, the “Transferred IP Assets”).  The term “Intellectual Property” means:
(i)    all patents, patent applications, and inventions and discoveries regardless of whether they may be patentable;

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(ii)    all business and trade names and registered and unregistered trademarks and service marks;
(iii)    all copyrights in both published and unpublished works; and
(iv)    all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology, plans, drawings, and blue prints (collectively, “Trade Secrets”), as well as any other documentation in Sellers’ possession in which such Trade Secrets are embodied or otherwise identified.
(b)    All required filings and fees related to the Transferred IP Assets have been timely filed with and paid to the relevant authorities and authorized registrars, and all applicable Transferred IP Assets are otherwise in good standing.
(c)    All current employees of any Seller have executed written contracts with Seller that assign to Seller all rights to any inventions, improvements, discoveries or information relating to the Business.
(d)    To the Sellers’ Knowledge, none of the Transferred IP Assets infringe or otherwise violate the rights of any other person or entity, nor are they being infringed or otherwise violated by any other person or entity. There are no claims by any person, entity or authority, settled, pending or, to Sellers’ Knowledge, threatened, alleging that use of the Transferred IP Assets by Sellers or by any other person or entity infringes the Intellectual Property rights of any third party. 
(e)    With respect to each Trade Secret included as part of the Transferred IP Assets:
(i)    Sellers have taken all reasonable precautions to protect the secrecy, confidentiality and value of such Trade Secret; and
(ii)    such Trade Secret is not to the Seller’s Knowledge part of the public knowledge or literature, and to Sellers’ Knowledge, has not been used, divulged or appropriated either for the benefit of any third party or to the detriment of the Sellers.

Section 2.10    Agreements.  
(a)    Sellers are not, and, to Sellers’ Knowledge, no other party is in breach of (and no event has occurred which, with notice or the lapse of time or both, would constitute a breach of) any of the agreements listed on Schedule 1.1.  Except as set forth on Schedule 2.10(a), Sellers are current on all lease payments and other payments required under the capital leases and equipment-related obligations included in the Purchased Assets. Each such agreement constitutes the legal, valid and binding obligation of Seller, enforceable against Seller and, to Sellers’ Knowledge, any other party thereto, in accordance with their respective terms, except as such enforceability may be limited by laws affecting the enforcement of creditors’ rights and general principles of equity.

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(b)    Schedule 2.10(b) lists all of the agreements between any Seller and medical staff used or usable in connection with the Business (the “Health Care Professional Agreements”).  Seller has provided Buyer with true and correct copies of each Health Care Professional Agreement.  
(c)    Except as set forth on Schedule 2.10(c), none of the agreements or contracts set forth on Schedule 1.1 are agreements or contracts between or among Sellers, on the one hand, and Owner or any Affiliate of Sellers or Owner, on the other hand.  For the purposes of this Agreement, “Affiliate” means any individual, corporation, partnership, limited liability company, association, trust or any other entity or organization, including a Governmental Authority that, directly or indirectly through one of more intermediaries, controls or is controlled by or is under common control with a Party.

Section 2.11    Legal Proceedings.  Except as set forth on Schedule 2.11, there are no claims, actions or investigations pending or, to Sellers’ Knowledge, threatened against or by Sellers (a) relating to or affecting the Business or the Purchased Assets; or (b) that challenge or seek to prevent, enjoin or otherwise delay the Transactions. To Sellers’ Knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such claim, action or investigation.

Section 2.12    Medicare Participation and Reimbursement/Accreditation.
(a)    PC is certified or otherwise qualified for participation in the Government Programs and has current and valid contracts for participation in certain Government Program (the “Program Agreements”), all of which are in full force and effect, and PC is currently in receipt of all approvals or qualifications necessary for their reimbursement by the Government Programs.  Schedule 2.12 contains a list of all NPIs and all provider numbers of Sellers under applicable Government Programs and private third party payor programs, including any insurance company or health care provider (such as a health maintenance organization, preferred provider organization, or any other managed care program).  To Sellers’ Knowledge, no events or facts exist that would cause any Program Agreement to be suspended, terminated, restricted, withdrawn, subjected to an administrative hold or otherwise not to remain in force and effect after the First Closing.
(b)    All billing practices of Sellers with respect to all third party payors, including the Government Programs and private insurance companies, have been conducted in material compliance with all Applicable Laws and the billing guidelines of such third party payors.  Except for routine overpayments that occur in the ordinary course of business, Sellers have not billed or received any payment or reimbursement in excess of amounts allowed by Applicable Laws or the billing guidelines of any third party payor, including the Government Programs or any private insurance companies.  Sellers have made available to Buyer true and correct copies of any and all Government Program survey reports issued since January 1, 2014, with respect to Sellers and all plans of correction which the applicable governmental agency required any Seller to submit in response to such reports.  Sellers have corrected any deficiencies noted therein.
(c)    With respect to two surgery center locations operated by ACMIS and AVVC respectively, ACMIS and AVVC are separately duly accredited, with no current deficiencies or contingencies, by the American Association for Accreditation of Ambulatory Surgery Facilities 

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(“AAAASF”).  Since the date of its most recent AAAASF accreditation, Sellers have not made any changes in policies or operations at the respective surgery center locations that would cause ACMIS or AVVC to lose each location’s accreditations.  Sellers have delivered copies of their most receipt AAAASF accreditation certificates to Buyer.

Section 2.13    Compliance.  Sellers (a) are not party to a Corporate Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services, (b) do not have reporting obligations pursuant to any settlement agreement entered into with any Governmental Authority, or (c) to Sellers’ Knowledge are not and have not been a defendant in any qui tam/False Claims Act litigation, or (d) have not received any complaints from employees, independent contractors, vendors, physicians, or any other person that would indicate that any Seller has violated in any material respect any applicable material law, rule, or regulation.  Sellers have provided Buyer with complete and accurate descriptions of each audit and investigation conducted with respect to its compliance with Applicable Laws during the last three years.  

Section 2.14    Medical Staff Matters.  Sellers have provided to Buyer true and correct copies of their respective medical staff bylaws, medical staff rules and regulations, and medical staff hearing procedures, all as presently in effect. There are no pending or, to Sellers’ Knowledge, threatened adverse actions, appeals, challenges, disciplinary or corrective actions, or disputes involving applicants to any Seller’s medical staff, current members of any Seller’s medical staff or affiliated health professionals, and all appeal periods in respect of any medical staff member, allied health professional or applicant against whom an adverse action has been taken by any Seller have expired.  Sellers have delivered to Buyer a written disclosure containing a brief general description of all material adverse actions taken in the six months prior to the date hereof against any Seller’s medical staff members, allied health professionals or applicants which could result in claims or actions against such Seller. Schedule 2.14 sets forth a complete and accurate list of the name and medical specialty of each current member of the medical staff of Sellers.  Except as set forth on Schedule 2.14, no medical staff member has resigned or had their privileges revoked or suspended since January 1, 2014.  There are no claims, actions, suits, proceedings, or investigations pending or, to Sellers’ Knowledge, threatened against or affecting any member of any Seller’s medical staff at law or in equity, or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality wherever located relating to medical practice or conduct in connection therewith.

Section 2.15    Employment Matters.  Except for past violations for which the Sellers are not subject to any current liability and cannot become subject to any future liability, the Sellers are and have been in material compliance with all applicable laws, regulations and orders relating to employment and employment practices, terms and conditions of employment and wages and hours, and the Sellers are not and have not engaged in any unfair labor practice.  There are no written charges or complaints of employment discrimination, harassment, retaliation, equal pay or any other employment related matter arising under applicable laws, pending or threatened or, to Seller’s Knowledge, anticipated against the Sellers.  The Sellers have properly classified as an employee or independent contractor each person who provides or has provided services to the Sellers, and as to each such person that is an employee, the Sellers have properly classified such employee as 

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exempt or non-exempt under applicable wage and hour laws, except for such misclassifications as would not have a material adverse effect.  

Section 2.16    Inventory.  The inventory of the Business (the “Inventory” or “Inventories”) consists of a quality and quantity useable and saleable in the ordinary course of business except for obsolete items and items of below standard quality, all of which have been written off or written down to net realizable value.

Section 2.17    Investment Experience.  Sellers and Owner hereby acknowledge and represent that (a) they have prior investment experience, including investment in non-listed and unregistered securities, and that they have employed the services of an investment advisor, attorney and/or accountant to read all of the documents furnished or made available by Buyer to evaluate the merits and risks of such an investment on their behalf; (b) they recognize the highly speculative nature of an investment in the Shares; and (c) they are able to bear the economic risk and illiquidity which they assume by investing in the Shares.  Sellers and Owner have had the opportunity to retain, and to the extent necessary they have retained, at their own expense, and relied upon the advice of appropriate professionals, including an investment advisor, attorney and/or accountant regarding the investment, tax and legal merits and consequences of this Agreement and its acquisition of the Shares hereunder.

Section 2.18    No SEC Review.  Sellers and Owner hereby acknowledge that this transaction has not been reviewed by the Securities and Exchange Commission (“SEC”) because of NHC’s representations that this transaction is intended to be exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”) pursuant to Section 4(a)(2) thereof and Regulation D promulgated under said act. Sellers and Owner further acknowledge that no federal or state agency or authority has made any finding or determination as to the accuracy or adequacy of this Agreement or as to the fairness of the terms of this transaction or any recommendation or endorsement of the Shares.  Any representation to the contrary is a criminal offense.  In making an investment decision, Sellers and Owner must rely on their own examination of NHC and the terms of this transaction, including the merits and risks involved.

Section 2.19    Purchase For Own Account.  The Shares to be acquired by Sellers and Owner hereunder will be acquired for investment for their own account, not as a nominee or agent, and not with a view to the public resale or distribution thereof within the meaning of the Securities Act, and no Seller or Owner has the present intention of selling, granting any participation in, or otherwise distributing the same.  Each Seller also represents that Seller has not been formed for the specific purpose of acquiring the Shares.

Section 2.20    Rule 144.  Sellers and Owner acknowledge that the Shares must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available.  Sellers and Owner are aware of the provisions of Rule 144 promulgated under the Securities Act, which permits limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, including, among other things, the existence of a public market for such shares, the availability of certain current public information about the company that issued such shares, the resale occurring following the period of time prescribed by 

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Rule 144, the sale being effected through a “broker's transaction” and the number of shares being sold during any three-month period not exceeding specified limitations.

Section 2.21    Unregistered Registration Shares.  Each Seller and Owner understands and hereby acknowledges that NHC is under no obligation to register the Shares under the Securities Act. Each Seller and Owner consents that NHC may, if it desires, permit the transfer of the Shares out of a Seller's or Owner’s name only when such Party’s request for transfer is accompanied by an opinion of counsel reasonably satisfactory to NHC that neither the sale nor the proposed transfer results in a violation of the Securities Act or any applicable state “blue sky” laws.

Section 2.22    No Public Offering.  Sellers and Owner hereby acknowledge that the sale and issuance of the Shares hereunder has not been (a) accompanied by the publication of any advertisement nor (b) effected by or through a broker-dealer in a public offering.  

Section 2.23    Certain Books and Records.  Excluding the minute books of Sellers, the operational books and records of Sellers related to the three years prior to the date of Closing are in the possession of Sellers and are correct and complete in all material respects.  

ARTICLE III    

REPRESENTATIONS OF OWNER

Section 3.1    Authority and Binding Obligation.  Owner represents to Buyer and NHC as follows as of the date of this Agreement, the First Closing Date, and the Second Closing Date:
(a)    Owner has the legal capacity to enter into and deliver the Transaction Documents to which it is a party, to carry out his obligations under the Transaction Documents to which it is a party, and to consummate the Transactions.
(b)    This Agreement constitutes, and, when executed and delivered, the Transaction Documents will constitute, the legal, valid and binding obligations of Owner, enforceable against Owner in accordance with their terms, except as such enforceability may be limited by laws affecting the enforcement of creditors’ rights and general principles of equity.

Section 3.2    With respect to the First Closing Equity.  Owner represents to Buyer and NHC as follows as of the date of this Agreement and the First Closing Date:
(a)    Organization; Capitalization.  Owner owns, and at the First Closing shall transfer to Buyer, the First Closing Equity, free and clear of all encumbrances other than Permitted Encumbrances.  The First Closing Equity is one hundred percent (100%) of the issued and outstanding equity of the First Closing Facilities.  The First Closing Equity has been validly issued, fully paid and non-assessable.  There are no options, warrants, purchase rights, subscription rights, conversion privileges, exchange rights, pre-emptive rights or other rights, agreements or commitments of a similar nature to which Owner or the First Closing Facilities are bound or obligating Owner or the First Closing Facilities to issue any equity interest in the First Closing Facilities or securities or obligations of any kind convertible into or exchangeable for equity of the 

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First Closing Facilities.  There are no outstanding bonds, debentures or other evidences of indebtedness of the First Closing Facilities.  There are no outstanding contractual obligations of Owner or the First Closing Facilities to repurchase, redeem or otherwise acquire any of the First Closing Equity or agreements or other arrangements regarding the voting or disposition of any of the First Closing Equity.  None of the First Closing Facilities own or control, directly or indirectly, any interest in any corporation, partnership, limited liability company, association, or other business entity.  None of the First Closing Facilities is a participant in any joint venture, partnership or similar arrangement.  Each First Closing Facilities is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation.  No First Closing Facility is qualified to do business in any jurisdiction other than its jurisdiction of formation. Except for Oracle Surgery Center, LLC, each of the First Closing Facilities has conducted no business activities since its respective date of formation other than actions related to the assignment of First Closing Leases and obtaining and maintaining Permits as contemplated under Section 5.4.  Other than as contemplated in Section 3.2(f), none of the First Closing Facilities own any assets.  There are no outstanding powers of attorney relating to or binding on the First Closing Equity or the First Closing Facilities. 
(b)    No Conflict.  The execution, delivery and performance of this Agreement, does not and will not:
(i)    breach, or require the consent of any person or entity pursuant to, the governing documents of the First Closing Facilities;
(ii)    breach, or require the consent of any person or entity pursuant to, any law, regulation, permit, order, award or other non-contractual restriction or rule applicable to Owner, the First Closing Facilities, or their respective assets; or
(iii)    result in the creation of any encumbrance upon Owner, the First Closing Facilities, or their respective assets;
(iv)    (whether with notice or the lapse of time or both) under any contract or other instrument binding on Owner or the First Closing Facilities:
(1)    result in any breach;
(2)    provide any other person or entity rights of termination, rescission, amendment, acceleration or cancellation; or
(3)    require any authorization or approval of any person or entity.
(c)    Liabilities.  There are no material obligations or liabilities (potential or otherwise) of Owner or the First Closing Facilities of any nature pending, or to Owner’s Knowledge, threatened, against Owner, any of the First Closing Facilities or the First Closing Equity.  There is no reasonable basis for any other obligation or liability to be imposed upon Owner or the First Closing Facilities.  For the purposes of this Agreement, “Owner’s Knowledge” means the actual knowledge of Owner. 

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(d)    Legal Compliance.  Owner and the First Closing Facilities have materially complied with all Applicable Laws.  None of Owner, any of the First Closing Facilities or any person or entity acting on behalf of them has made or received any unlawful payments or contributions.  The First Closing Facilities hold all Permits necessary to own and operate their respective assets, and to Owner’s Knowledge, except as may result from the First Closing, no event has occurred or other fact exists with respect to such Permits that allows, or after notice or the lapse of time or both, would allow, revocation or termination of any such Permits or would result in any other impairment in the rights of any holder thereof.
(e)    Taxes.  The First Closing Facilities have filed all material Tax Returns that they were respectively required to file.  All such Tax Returns were correct and complete in all material respects and were prepared in compliance with all Applicable Laws.  To Owner’s Knowledge, neither Owner nor any of the First Closing Facilities have received any notice of deficiency or assessment or proposed deficiency or assessment with respect to any Tax Returns.  All Taxes due and owing by Owner or the First Closing Facilities through the First Closing have been paid.  All Taxes required to be withheld by Owner or the First Closing Facilities have been withheld and timely paid to the relevant taxing authority.  Owner and the First Closing Facilities have complied with all information reporting related to any Taxes.  Neither Owner nor any of the First Closing Facilities is currently the beneficiary of any extension of time within which to file any Tax Returns.  To Owner’s Knowledge, no claim has ever been made by an authority in a jurisdiction where Owner or the First Closing Facilities do not file Tax Returns that any of them is or may be subject to taxation by that jurisdiction.  Neither Owner nor any of the First Closing Facilities have waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.
(f)    Agreements.  
(i)    Each of the First Closing Facilities is a party to certain real property leases related to the Business, which are in full force and effect, as set forth in Schedule 3.2(f) (the “First Closing Leases”).
(ii)    Except for any contracts included as part of the Purchased Assets that are, or will be, assigned to the First Closing Facilities on or prior to First Closing, the First Closing Facilities are not parties to, or bound by, any contract.
(g)    Legal Proceedings.  Except as set forth in Schedule 3.2(g), there are no claims, actions or investigations pending, or to Owner’s Knowledge, threatened against or by Owner or the First Closing Facilities (i) relating to or affecting the First Closing Facilities or the First Closing Equity; or (ii) that challenge or seek to prevent, enjoin or otherwise delay the purchase and sale of the First Closing Equity as contemplated hereby.  To Owner’s Knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such claim, action or investigation.
(h)    Employment Matters.  The First Closing Facilities have no employees. 

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(i)    Certain Books and Records.  The minute books and the operational books and records of the First Closing Facilities are in the possession of Owner and are correct and complete in all material respects.

Section 3.3    With respect to the Second Closing Equity.  Owner represents to Buyer and NHC as follows as of the date of this Agreement and the Second Closing Date:
(a)    Organization; Capitalization.  Owner owns, and at the Second Closing shall transfer to Buyer, the Second Closing Equity, free and clear of all encumbrances.  The Second Closing Equity is one hundred percent (100%) of the issued and outstanding equity of the Second Closing Facilities.  The Second Closing Equity has been validly issued, fully paid and non-assessable.  There are no options, warrants, purchase rights, subscription rights, conversion privileges, exchange rights, pre-emptive rights or other rights, agreements or commitments of a similar nature to which Owner or the Second Closing Facilities is bound or obligating Owner or the Second Closing Facilities to issue any equity interest in the Second Closing Facilities or securities or obligations of any kind convertible into or exchangeable for equity of the Second Closing Facilities.  There are no outstanding bonds, debentures or other evidences of indebtedness of the Second Closing Facilities.  There are no outstanding contractual obligations of Owner or the Second Closing Facilities to repurchase, redeem or otherwise acquire any of the Second Closing Equity or agreements or other arrangements regarding the voting or disposition of any of the Second Closing Equity.  The Second Closing Facilities do not own or control, directly or indirectly, any interest in any corporation, partnership, limited liability company, association, or other business entity.  Each of the Second Closing Facilities is not a participant in any joint venture, partnership or similar arrangement. Each of Second Closing Facilities is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation.  Each of the Second Closing Facilities is not qualified to do business in any jurisdiction other than its jurisdiction of formation.  Each of the Second Closing Facilities has conducted no business activities since its date of formation, other than actions related to the assignment of real property leases and obtaining and maintaining Permits as contemplated under Section 5.4.  Other than as contemplated in Section 3.3(f), the Second Closing Facilities does not own any assets.  There are no outstanding powers of attorney relating to or binding on the Second Closing Equity or the Second Closing Facilities. 
(b)    No Conflict.  The execution, delivery and performance of this Agreement, does not and will not:
(i)    breach, or require the consent of any person or entity pursuant to, the governing documents of the Second Closing Facilities;
(ii)    breach, or require the consent of any person or entity pursuant to, any law, regulation, permit, order, award or other non-contractual restriction or rule applicable to Owner, the Second Closing Facilities, or their respective assets; or
(iii)    result in the creation of any encumbrance upon Owner, the Second Closing Facilities, or their respective assets;

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(iv)    (whether with notice or the lapse of time or both) under any contract or other instrument binding on Owner or the Second Closing Facilities:
(1)    result in any breach;
(2)    provide any other person or entity rights of termination, rescission, amendment, acceleration or cancellation; or
(3)    require any authorization or approval of any person or entity.
(c)     Liabilities.  There are no material obligations or liabilities (potential or otherwise) of Owner or the Second Closing Facilities of any nature pending, or to Owner’s Knowledge, threatened, against Owner, any of the Second Closing Facilities or the Second Closing Equity.  There is no reasonable basis for any other obligation or liability to be imposed upon Owner or the Second Closing Facilities.
(d)    Legal Compliance.  Owner and the Second Closing Facilities have materially complied with all Applicable Laws.  None of Owner, the Second Closing Facilities or any person or entity acting on behalf of them has made or received any unlawful payments or contributions.  The Second Closing Facilities holds all Permits necessary to own and operate its assets, and to Owner’s Knowledge, except as may result from the Second Closing, no event has occurred or other fact exists with respect to such Permits that allows, or after notice or the lapse of time or both, would allow, revocation or termination of any such Permits or would result in any other impairment in the rights of any holder thereof.
(e)    Taxes.  The Second Closing Facilities have filed all material Tax Returns that each is required to file.  All such Tax Returns were correct and complete in all material respects and were prepared in compliance with all Applicable Laws.  To Owner’s Knowledge, neither Owner nor the Second Closing Facilities have received any notice of deficiency or assessment or proposed deficiency or assessment with respect to any Tax Returns.  All Taxes due and owing by Owner or the Second Closing Facilities through the Second Closing have been paid.  All Taxes required to be withheld by Owner or the Second Closing Facilities have been withheld and timely paid to the relevant taxing authority.  Owner and the Second Closing Facilities have complied with all information reporting related to any Taxes.  Neither Owner nor the Second Closing Facilities are currently the beneficiary of any extension of time within which to file any Tax Returns.  To Owner’s Knowledge, no claim has ever been made by an authority in a jurisdiction where Owner or the Second Closing Facilities do not file Tax Returns that either of them is or may be subject to taxation by that jurisdiction.  Neither Owner nor the Second Closing Facilities have waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.
(f)    Agreements.  Except with respect to any contracts included as part of the Purchased Assets that are, or will be, assigned to the Second Closing Facilities on or prior to Second Closing, the Second Closing Facilities are not parties to, or bound by, any contract.

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(g)    Legal Proceedings.  Except as set forth in Schedule 3.3(g), there are no claims, actions or investigations pending, or to Owner’s Knowledge, threatened against or by Owner or the Second Closing Facilities (i) relating to or affecting the Second Closing Facilities or the Second Closing Equity; or (ii) that challenge or seek to prevent, enjoin or otherwise delay the purchase and sale of the Second Closing Equity as contemplated hereby.  To Owner’s Knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such claim, action or investigation.
(h)    Employment Matters.  The Second Closing Facilities have no employees. 
(i)    Certain Books and Records.  The minute books and the operational books and records of the Second Closing Facilities are in the possession of Owner and are correct and complete in all material respects.

ARTICLE IV    

REPRESENTATIONS OF BUYER AND NHC

Section 4.1    General. Buyer and NHC, jointly and severally, represent to each of the Sellers and Owner as follows, as of the date of this Agreement, the First Closing Date, and the Second Closing Date:
(a)    Existence, Authority and Binding Obligation.
(i)    Each of Buyer and NHC is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation, with full power and authority to enter into and deliver the Transaction Documents, to carry out its obligations under the Transaction Documents, and to consummate the Transactions.
(ii)    This Agreement constitutes, and, when executed and delivered, the Transaction Documents will constitute, the legal, valid and binding obligations of each of Buyer and NHC, enforceable against such Party in accordance with their terms, except as such enforceability may be limited by laws affecting the enforcement of creditors’ rights and general principles of equity.
(b)    No Conflict.  The execution, delivery and performance of this Agreement, does not and will not:
(i)    breach, or require the consent of any person or entity pursuant to, Buyer or NHC’s governing documents;
(ii)    breach, or require the consent of any person or entity pursuant to, any law, regulation, permit, order, award or other non-contractual restriction or rule applicable to Buyer or NHC or its respective assets;
(iii)    result in the creation of any encumbrance upon Buyer or NHC or its respective assets; or

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(iv)    (whether with notice or the lapse of time or both) under any agreement or other instrument binding on Buyer or NHC:
(1)    result in any breach;
(2)    provide any other person or entity rights of termination, rescission, amendment, acceleration or cancellation; or
(3)    require any authorization or approval of any person or entity.

Section 4.2    Investment Representations. Buyer and NHC, jointly and severally, represent to each of the Sellers and Owner as follows:
(a)    As of the date of this Agreement and the First Closing Date, Buyer is acquiring the First Closing Equity with the present intention of holding the First Closing Equity for investment purposes and not with a view to distribution within the meaning of Section 2(a)(11) of the Securities Act. Buyer acknowledges that the First Closing Equity has not been registered under the Securities Act or any applicable state or foreign securities laws and that the First Closing Equity may not be sold, transferred, offered for sale, assigned, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is pursuant to the terms of an effective registration statement under the Securities Act (or an exemption therefrom) and pursuant to the requirements of any applicable state or foreign securities laws. Buyer is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. Buyer is acquiring the First Closing Equity for Buyer’s own account for investment purposes, and not with a view to the sale or distribution of any part or all thereof by public or private sale or other disposition.
(b)    As of the date of this Agreement and the Second Closing Date, Buyer is acquiring the Second Closing Equity with the present intention of holding the Second Closing Equity for investment purposes and not with a view to distribution within the meaning of Section 2(a)(11) of the Securities Act. Buyer acknowledges that the Second Closing Equity has not been registered under the Securities Act or any applicable state or foreign securities laws and that the Second Closing Equity may not be sold, transferred, offered for sale, assigned, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is pursuant to the terms of an effective registration statement under the Securities Act (or an exemption therefrom) and pursuant to the requirements of any applicable state or foreign securities laws. Buyer is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. Buyer is acquiring the Second Closing Equity for Buyer’s own account for investment purposes, and not with a view to the sale or distribution of any part or all thereof by public or private sale or other disposition.

ARTICLE V     
 
OTHER COVENANTS OF THE PARTIES

Section 5.1    Conduct of Business Prior to Closing.  

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(a)    Until the First Closing, Sellers: 
(i)    shall conduct the Business in the ordinary course of business consistent with their past practice, except for actions expressly permitted or limited by this Agreement;
(ii)    shall maintain Inventories of supplies, drugs, and other disposables and consumables in the ordinary course of business consistent with their past practice; and 
(iii)    shall not, without the prior written consent of Buyer:
(1)    make or authorize any capital expenditure for the Business of more than $50,000;
(2)    enter into any agreement that, if existing as of the date of this Agreement, would have to be listed in Schedule 1.1 as part of the Purchased Assets; or
(3)    enter into any agreement, commitment or understanding, whether or not in writing, with respect to any of the foregoing.
(b)    Until the First Closing, Owner shall not amend any of the organizational documents of the First Closing Facilities, or cause or permit the First Closing Facilities to engage in any business activity (other than as contemplated pursuant to Section 5.16) or enter into any contract other than the contracts included as part of the Purchased Assets that are, or will be, assigned to the First Closing Facilities on or prior to First Closing.
(c)    Until the Second Closing, Owner shall not amend any of the organizational documents of the Second Closing Facilities, or cause or permit the Second Closing Facilities to engage in any business activity or enter into any contract other than the Management Services Agreement, and the contracts included as part of the Purchased Assets that are, or will be, assigned to the Second Closing Facilities on or prior to Second Closing.

Section 5.2    Access to Books, Records and Personnel.  If before or after the First Closing it is necessary that any Party be furnished with additional information relating to the Purchased Assets, the First Closing Equity, the Second Closing Equity or the Business, and such information is in the possession of any other Party, such Party agrees to use its reasonable efforts to furnish such information to the requesting Party, at the requesting Party’s cost and expense, and to make its employees available on a mutually convenient basis to provide additional information and explanation of such materials.  Any such disclosure shall be subject to the confidentiality or other applicable terms of any agreement to which the disclosing Party is bound as well as any Applicable Laws.

Section 5.3    Tax Matters.  
(a)    With respect to the Purchased Assets and the First Closing Equity, Sellers shall prepare and file all Tax Returns for any period ending on or before the First Closing Date, and Buyer shall prepare all Tax Returns for all other periods. With respect to the First Closing Facilities, 

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Owner shall prepare and file all Tax Returns for any period ending on or before the First Closing Date, and Buyer shall prepare all Tax Returns for all other periods.  With respect to the Second Closing Facilities, Owner shall prepare and file all Tax Returns for any period ending on or before the Second Closing Date, and Buyer shall prepare all Tax Returns for all other periods.
(b)    The Parties shall cooperate fully, as reasonably requested by each other Party, in connection with the filing of Tax Returns as contemplated by Section 5.3(a) and any audit or other proceeding with respect to the Purchased Assets or the Business.  Sellers and Owner agree to retain all books and records with respect to Tax matters pertinent to the Purchased Assets or the Business relating to any taxable period beginning before the First Closing or Second Closing, as applicable, until the expiration of the statute of limitations of the respective taxable periods, and to abide by all record retention agreements entered into with any Taxing authority.

Section 5.4    Further Assurances.  The Parties shall use their reasonable efforts (a) to obtain all approvals and consents requested by any other Party and required by or necessary for the transactions contemplated by the Transaction Documents, including those set forth on Schedule 2.3, and (b) to take all appropriate action and to do all things necessary, proper or advisable under Applicable Laws, regulations and the Transaction Documents to effect the Transactions (whether prior to or after the First Closing or Second Closing, as applicable) and to timely satisfy the conditions set forth in Article VI.  Without limiting the foregoing, Owner and Sellers shall, and Owner shall cause Sellers to, execute, acknowledge and deliver to Buyer any and all other assignments, consents, approvals, conveyances, assurances, documents and instruments reasonably requested by Buyer and/or the Arizona Department of Health Services at any time and shall take any and all other actions reasonably requested by Buyer, at any time, in furtherance of, in connection with, or in relation to, Buyer’s notification and obtaining of Permits in connection relating to the Transaction and the First Closing or Second Closing, as applicable, including without limitation the change of ownership of the Purchased Assets and the Business from Owner or Sellers to Buyer, as described in Arizona law, including (but not limited to) A.A.C. §R9-10-101 et seq.  However, nothing in this Section 5.4 shall require any Party to (y) hold separate or make any divestiture of any asset or otherwise agree to any restriction on operations or other condition that would be materially adverse to the assets, liabilities or business of Buyer or Sellers, or (z) offer or grant financial accommodations to any third party or to remain secondarily liable with respect to any liability.  Prior to the Second Closing, no Party shall make any filing or request any consent related to the Transactions without the approval of the other Party, which approval shall not be unreasonably withheld or delayed.

Section 5.5    Apportionment.  
(a)    If it is necessary for purposes of the indemnification in Article VIII to determine the portion of any Taxes or other costs imposed on or incurred for a First Closing Straddle Period or Second Closing Straddle Period, the determination shall be made:
(i)    on a daily basis, in the case of property or ad valorem taxes, franchise taxes (which are not measured by, or based upon, net income) and other costs accrued on a daily basis; or

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(ii)    by assuming that (1) the pre-First Closing period constitutes a separate taxable period of Sellers, the First Closing Facilities or Owner, as applicable, and (2) the pre-Second Closing period constitutes a separate taxable period of Owner or the Second Closing Facilities, as applicable, and by taking into account the actual taxable events that occurred during such periods (except that exemptions, allowances and deductions for such periods that are calculated on an annual or periodic basis, such as the deduction for depreciation, shall be apportioned to the pre-First Closing or pre-Second Closing period, as applicable, ratably on a daily basis), in all other cases.
(b)    Each Party agrees to pay the other Party any refund received after the First Closing Date or Second Closing Date, as applicable, in respect of any Taxes or costs for which the other Party was liable in accordance with this Agreement.  The Parties shall cooperate to take all necessary steps to claim any such refund.  Any such refund received by a Party or its Affiliate for the account of the other Party shall be paid to such other Party within 90 days after such refund is received.

Section 5.6    Sellers’ Employees.  
(a)    Subject to Buyer’s hiring policies, Buyer shall offer employment to all employees of Sellers, which are set forth on Schedule 5.6 at the same levels of benefits and compensation as set forth thereon.  Employees of Sellers who accept employment with Buyer and become employees of Buyer at the First Closing shall be referred to herein as “Transferred Employees.” 
(b)    Each Transferred Employee’s sick leave, vacation and other paid time off (collectively, “PTO”) accrued as of October 23, 2016, is set forth on Schedule 5.6. Sellers shall deliver, at the First Closing, an updated Schedule 5.6 setting forth the PTO accrued as of the First Closing Date. Each Transferred Employee who consents to such transfer shall be credited by Buyer for any such accrued PTO, but Buyer shall have no obligation to make any payments to the Transferred Employees for such accrued PTO other than in accordance with the terms and conditions applicable to Buyer’s employees or applicable law.  Other than as expressly set forth herein, Buyer shall have no obligation whatsoever for, any compensation or other amounts payable to any current or former employee, officer, director, independent contractor or consultant of Sellers or the Business, including, without limitation, hourly pay, commission, bonus, salary, accrued PTO, fringe, pension or profit sharing benefits or severance pay for any period relating to the service with Sellers at any time on or prior to the First Closing Date.
(c)    The terms of the Transferred Employees’ employment with Buyer shall otherwise be upon such terms and conditions as Buyer, in its sole discretion, shall determine.  This provision shall neither be construed to create any third party beneficiaries nor to vest any rights in parties other than those signatories to this Agreement.

Section 5.7    Receipt of Certain Payments by the Parties.  
(a)    After the First Closing: 

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(i)    if Sellers or Owner receive or collect any funds related to accounts receivable included in the Included Cash and Accounts Receivable, any other Purchased Asset or arising out of or related to the ownership and operation of the Business and the Purchased Assets after the First Closing, Sellers or Owner shall remit such funds to Buyer promptly after receipt thereof; and
(ii)    if Buyer receives or collects any funds related to any Excluded Asset, including any accounts receivable not included in the Included Cash and Accounts Receivable, or arising out of or related to the ownership and operation of the Business and the Purchased Assets prior to the First Closing, other than the Included Cash and Accounts Receivable, Buyer shall remit such funds to Sellers or Owner promptly after receipt thereof.  
(b)    After the Second Closing:
(i)    if Owner receives or collects any funds arising out of or related to the ownership and operation of the Second Closing Facilities after the Second Closing, Owner shall remit such funds to Buyer promptly after receipt thereof; and
(ii)    if Buyer receives or collects any funds arising out of or related to the ownership and operation of the Second Closing Facilities prior to the Second Closing other than as contemplated pursuant to the Management Services Agreement, Buyer shall remit such funds to Owner promptly after receipt thereof.

Section 5.8    Covenant Not to Compete.  To more effectively protect the value of the Purchased Assets, for five years after the First Closing Date, Sellers and Owner shall not, directly or indirectly (whether as an owner, principal, employee, agent, consultant, independent contractor, partner or otherwise), anywhere in the State of Arizona, State of Texas or any other State in which Buyer has a facility, at which medical practitioners treat patients with venous diseases and provide a range of other vascular, radiology and podiatry services on or prior to the first anniversary of the Closing Vascular EBITDA Calculation Date and which is included in the Business unit for purposes of calculating the Anniversary Vascular EBITDA (the “Restricted Territory”):
(a)    engage in any business in competition with the Business; provided, however, that Sellers and Owner, may own, solely as an investment, securities in any entity that is in competition with the Business if (i) Sellers or Owner, as applicable, do not, directly or indirectly, beneficially own more than 2% in the aggregate of such class of securities, (ii) such class of securities is publicly traded and (iii) Sellers or Owner, as applicable, has no active participation in such entity;
(b)    solicit business of the same or similar type being carried on by the Buyer in the operation of the Business from any person or entity known by Sellers or the Owner to be a customer of the Business as operated by Buyer;
(c)    request any past, present or future customer or supplier of Sellers or Buyer to curtail or cancel its business with the Business as operated by Buyer;

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(d)    solicit, employ or otherwise engage as an employee or independent contractor any person who is an employee or independent contractor of the Business as operated by Buyer, unless such person’s employment or engagement with the Business (i) was terminated by Buyer, or (ii) ended more than 12 months prior to the date of solicitation, employment or engagement;
(e)    induce or attempt to induce any employee or independent contractor of the Business as operated by Buyer to terminate their employment or engagement with the Business; provided, however, that it shall not constitute a breach of the foregoing if any person or entity which employs or otherwise engages Owner solicits and/or hires an employee or former employee of the Business through a general solicitation not directed at such employee or former employee, and further provided the Owner does not have hiring authority or influence over hiring for the applicable position; or
(f)    unless otherwise required by law, subject to the confidentiality provisions of this Agreement, disclose to any person or entity details of the organization or business affairs of the Business, any names of past or present customers of the Business, any Trade Secrets, or any other non-public information concerning the Business or its affairs; notwithstanding the foregoing, the Sellers may publically disclose information related to or arising from the filing, prosecution, and enforcement of intellectual property rights pertaining to the Excluded Assets.
Notwithstanding anything to the contrary above in this Section 5.8, (i) this Section 5.8 shall not restrict Owner from providing medical services as a physician in private medical practice to any of the past, present or future patients or customers of the Business, provided Owner does not use any marketing or advertising directed at such past, present or future patients, (ii) this Section 5.8 shall not restrict Owner and his Affiliates from leasing any real property, including real property no longer leased by Buyer and its Affiliates, to any third party, including any third party that may be competitive with the Business, (iii) this Section 5.8 shall not restrict Owner from owning or operating the Second Closing Facilities between the date of this Agreement and the Second Closing Date in accordance with this Agreement and the Management Services Agreement, (iv) Owner and his Affiliates may license or otherwise commercialize the patents set forth on Schedule 5.8 to any third parties for use outside of the Restricted Territory, (v) Owner and his Affiliates shall be permitted to license the patents set forth on Schedule 5.8 to third parties for use inside of the Restricted Territory so long as Owner pays to Buyer an amount equal to thirty percent (30%) of the net revenues earned from such licenses only in Arizona and Texas, as well as any other state in which the Buyer has a facility, at which medical practitioners treat patients with venous diseases and provide a range of other vascular, radiology and podiatry services on or prior to the first anniversary of the Closing Vascular EBITDA Calculation Date and which is included in the Business unit for purposes of calculating the Anniversary Vascular EBITDA, that actually builds and/or operates an operating room that is claimed or described by such patents, and (vi) Owner and his Affiliates shall be permitted to license or otherwise commercialize the trademarks set forth on Schedule 5.8 to any third parties for use inside and outside of the Restricted Territory.
Sellers and Owner agree that the covenants set forth in this Section 5.8 are drafted to and are intended to comply with and be enforceable under Texas Business & Commerce Code Section 15.50(a) and other applicable laws and regulations. The Parties acknowledge that if the scope of 

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the covenants in this Section 5.8 is deemed to be too broad in any court proceeding, the court may reduce the scope as deemed reasonable under the circumstances.  Sellers and Owner also agree that in the event that the covenants are reformed and Sellers and/or the Owner has breached the reformed covenants, Buyer may be entitled to recover attorneys’ fees and costs in enforcing the covenants in the same manner and to the same extent as if they had been enforced as written against the breaching Party.  The Parties acknowledge that Buyer may not have any adequate remedy at law for the breach or threatened breach by Sellers or Owner of this Section 5.8 and, accordingly, Buyer may, in addition to remedies that may be available under this Agreement, file suit in equity to enjoin Sellers or Owner from that breach or threatened breach, and Sellers and Owner consent to the issuance of injunctive relief.  Sellers and Owner agree that Buyer’s performance under this Agreement constitutes sufficient consideration for the covenant not to compete in this Section 5.8.

Section 5.9    Confidentiality.  Sellers and Owner acknowledge that irreparable damage would occur if any confidential or proprietary information regarding the Business, the Purchased Assets or Buyer were disclosed to or utilized on behalf of any person or entity that is in competition in any respect with the Business as conducted by the Buyer following the First Closing.  Without the prior written consent of Buyer, Sellers and Owner agree that they shall not, directly or indirectly, use or disclose any of such information.  The provisions of this Section 5.9 shall not prohibit a Party from disclosing information covered by this Section 5.9 pursuant to a subpoena or other validly issued administrative or judicial process requesting the information; provided, however, that prompt notice is provided to the other Party of the required disclosure.

Section 5.10    Mail.  Sellers and Owner authorize Buyer, on and after the First Closing Date, to receive and open all mail received by Buyer relating to the  Purchased Assets, the First Closing Facilities or the related Assumed Liabilities and to deal with the contents of such communications in any proper manner.  Sellers and Owner authorize Buyer, on and after the Second Closing Date, to receive and open all mail received by Buyer relating to the Second Closing Facilities or the related Assumed Liabilities and to deal with the contents of such communications in any proper manner. Sellers and Owner shall promptly deliver to Buyer any mail or other communication received by Sellers or Owner after the First Closing Date or Closing Date, as applicable, pertaining to the Business, the First Closing Facilities, the Second Closing Facilities, the Purchased Assets or the Assumed Liabilities.  Buyer shall promptly deliver to Sellers or Owner any mail or other communication received by Buyer after the First Closing Date or the Second Closing Date, as applicable, pertaining to the Excluded Assets, the Retained Liabilities or solely to the operation of the Business by Sellers and Owner prior to the First Closing or Second Closing, as applicable.

Section 5.11    Third Party Consents.  
(a)    If Sellers’ or Owner’s rights to any Purchased Asset, the First Closing Equity or the Second Closing Equity may not be transferred without the consent of another person or entity, and if such consent has not been obtained as of the First Closing Date or Second Closing Date, as applicable, despite the exercise by Sellers or Owner of their respective reasonable efforts, this Agreement shall not constitute an agreement to transfer such Purchased Asset (a “Non-Transferred Purchased Asset”) if an attempted transfer thereof would constitute a breach or be unlawful.  In any such case, Sellers and Owner, to the maximum extent permitted by law, (i) shall act after the 

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First Closing or Second Closing, as applicable, as the Buyer’s agent to obtain for Buyer the benefits and satisfy the associated obligations related to the Non-Transferred Purchased Asset, and (ii) shall cooperate with Buyer in any other reasonable arrangement designed to provide those benefits to the Buyer, including by agreeing to remain liable under any applicable contract, and Buyer shall with cooperation from Sellers make any payments with respect to a Non-Transferred Purchased Asset required to obtain the benefit thereof.  
(b)    With respect to any Equipment Indebtedness that is not a Non-Transferred Purchased Asset and may not be transferred without the consent of another person or entity, and if such consent has not been obtained as of the First Closing Date despite the exercise by Sellers or Owner of their respective reasonable efforts, Sellers shall continue to perform, and make all payments required, under the terms of such Equipment Indebtedness until such time as such Equipment Indebtedness is transferred to Buyer and Buyer assumes the related Equipment Indebtedness. Until such transfer and assumption, the Parties shall cooperate to allow Buyer to make any payments required pursuant to such Equipment Indebtedness on behalf of Sellers.  The Parties shall cooperate to obtain a release of Owner and Sellers, as applicable, from the applicable Equipment Indebtedness at the time of its transfer and assumption.
(c)    Nothing contained in this Section 5.11 shall relieve the Sellers or Owner of their respective obligations under any other provisions of this Agreement, including the obligation pursuant to Section 5.4 to use their respective reasonable efforts to obtain the consent of the applicable person or entity to transfer the Non-Transferred Purchased Asset to Buyer.

Section 5.12    Use of Names.  After the First Closing, Sellers and Owners shall not use the Transferred IP Assets, including the name “Arizona Vein and Vascular” or any similar derivation for any purpose other than maintaining each Seller’s legal name in the state of Arizona. 

Section 5.13    Insurance.  Sellers shall maintain existing insurance or “tail” insurance, in form and substance reasonably acceptable to Buyer (“Seller Insurance”), to insure against liabilities in connection with the development, business or operation of the Sellers, the First Closing Facilities, the Second Closing Facilities and/or the Purchased Assets.  The Seller Insurance coverage shall be retroactive such that it covers all periods prior to the First Closing Date and Second Closing Date, as applicable, and shall remain in effect for at least three years from the First Closing Date. The minimum coverage of the Seller Insurance shall be One Million Dollars ($1,000,000) per occurrence and Three Million Dollars ($3,000,000) in the aggregate.  

Section 5.14    Lock Up.
(a)    Sellers and Owner shall not offer to sell, contract to sell, or otherwise sell, dispose of, loan, pledge or grant any rights (collectively, a “Disposition”) with respect to any of the Shares other than (i) as a bona fide gift or gifts, provided that the donee or donees thereof agree in writing to be bound by the restrictions contained in this Section 5.14; (ii) with respect to sales or purchases of additional common shares of NHC acquired or disposed of on the open market after the First Closing; (iii) with respect to sales or purchases between Sellers or Owner and any other person or entity that is subject to a lock up agreement containing the terms and conditions essentially 

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identical to those set forth in this Section 5.14; or (iv) with the prior written consent of NHC, which may be granted or withheld in NHC’s sole discretion.
(b)    The restrictions in this Section 5.14 do not, however, preclude Sellers’ or Owner’s exercise of warrants or options to purchase additional common shares of NHC during the restrictive period set forth in this Section 5.14 or the Disposition of common shares of NHC which are not Shares.
(c)    Each Seller and Owner agrees and consents to NHC’s entry of a stop transfer instructions with its transfer agent and registrar against the transfer of the Shares. 
(d)    Each Seller and Owner agrees that the certificate or certificates representing the Shares shall bear restrictive legends acknowledging the restrictions on transfer set forth in this Section 5.14, and such legend shall be substantially in the following form: 
“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE [Day that is 4 months after the First Closing]
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE (“TSX”); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON TSX.”
“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW. NO TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE VALID OR EFFECTIVE UNLESS (A) SUCH TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (B) THE HOLDER SHALL DELIVER TO THE COMPANY AN OPINION OF ITS COUNSEL, IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY AND REASONABLY CONCURRED IN BY THE COMPANY’S COUNSEL, THAT SUCH PROPOSED TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE SECURITIES EVIDENCED HEREBY ARE SUBJECT TO THE TERMS OF A CERTAIN PURCHASE AGREEMENT BY AND BETWEEN THE COMPANY AND THE HOLDER 

33

NAMED THEREIN, PROVIDING FOR, AMONG OTHER THINGS, CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN SECTION 5.14 THEREOF. A COPY OF SUCH PURCHASE AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE COMPANY.”
(e)    NHC shall use its commercially reasonable efforts to comply with the periodic reporting requirements of the Securities Exchange Act of 1934, such that, without limitation, Owner shall be able to resell the Shares under Rule 144 of the Securities Act.
(f)    The restrictions set forth in this Section 5.14 shall automatically terminate without further action by any person or entity in accordance with the following schedule: 
(i)    On the one-year anniversary of the First Closing, the restriction set forth in Section 5.14(a) shall cease to apply to 25% of the aggregate Shares.
(ii)    On the fifteen-month anniversary of the First Closing, the restriction set forth in Section 5.14(a) shall cease to apply to an additional 25% of the aggregate Shares.
(iii)    On the eighteen-month anniversary of the First Closing, the restriction set forth in Section 5.14(a) shall cease to apply to an additional 25% of the aggregate Shares.
(iv)    On the twenty-one month anniversary of the First Closing, the restriction set forth in Section 5.14(a) shall cease to apply to the remaining 25% of the aggregate Shares.

Section 5.15    Certain Schedules.  Five Business Days prior to the First Closing Date, Sellers shall deliver to Buyer a new Schedule 1.1(c) and a revised Schedule 1.3(a) showing Buyer’s good faith estimate of the AR and AP, as applicable, as of the First Closing Date.  Sellers shall deliver completed and final Schedules 1.1(c) and 1.3(a) with respect to the AR and AP in accordance with Section 1.6.

Section 5.16    Renovation and Licensure of Surprise Facility.  Owner shall, at Owner’s expense, use commercially reasonable efforts to ensure that the Surprise Facility will undergo all renovations and other modifications necessary or appropriate for the Surprise Facility to be eligible to obtain licensing by the Arizona Department of Health Services as an Outpatient Surgery Center containing at least one operating room that is eligible for licensure as no less than a Class C operating room (Class C operating rooms are defined by the American College of Surgeons and the Arizona Department of Health Services) in accordance with the schedule to be agreed upon by Buyer and Owner in writing.  If Owner does not use his commercially reasonable efforts to ensure that the Surprise Facility will undergo renovation such that it will be eligible for licensing by the State of Arizona as an Outpatient Surgery Center and an Outpatient Treatment Center in accordance with the foregoing, Buyer shall have the right to (a) complete such renovations on behalf of Owner, at Owner’s sole cost and expense, and/or (b) notwithstanding anything else to the contrary herein, seek specific performance with respect to the completion of such works, obtaining the applicable 

34

licenses and the consummation of the purchase and sale of the Second Closing Equity in accordance with this Agreement.  The aggregate amount of costs incurred by Buyer or its Affiliates in completing such renovations at the Surprise Facility may, in Buyer’s sole discretion, be set off against the principal amount of the Note.

Section 5.17    AHCCCS Self-Disclosure.  Sellers and Owner shall use their commercially reasonable efforts to engage and cooperate with the Arizona Health Care Cost Containment System (“AHCCCS”) with respect to the billing errors identified in the September 2015 self-disclosure letter sent by Sellers to AHCCCS, and shall propose to make and make, if such proposal is accepted by AHCCCS, any repayment required with respect thereto.

ARTICLE VI     
 
CONDITIONS TO CLOSING

Section 6.1    Conditions to Obligations of the Parties.  The obligations of the Parties to consummate (x) the purchase and sale of the Purchased Assets and the First Closing Equity are subject to the satisfaction or waiver, as of the First Closing, and (y) the purchase and sale of the Second Closing Equity are subject to the satisfaction or waiver, as of the Second Closing, of each of the following conditions:
(a)    No rulemaking authority or court has issued any law, regulation or order that has the effect of making such transaction illegal or otherwise restraining or prohibiting such transaction.
(b)    No claim or proceeding contesting or seeking to adversely affect such transaction is pending or threatened.
(c)    Any applicable waiting period under any law or regulation applicable to such transaction has expired or terminated.

Section 6.2    Conditions to Obligations of Sellers and Owner.  
(a)    The obligations of Sellers and Owner to consummate the purchase and sale of the Purchased Assets and the First Closing Equity are subject to the satisfaction by Buyer and NHC, or waiver by Sellers and Owner, as of the First Closing, of each of the following conditions:
(i)    The representations of Buyer and NHC contained in Article IV are true and correct in all material respects (except for those qualified by materiality, which are true and correct in all respects) as of the First Closing (other than such representations as are expressly made as of another date).
(ii)    Buyer has made the deliveries required by Sections 1.6(b).
(iii)    Buyer and NHC have complied in all material respects with each of their covenants and undertakings under this Agreement as of the First Closing.

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(b)    The obligation of Owner to consummate the purchase and sale of the Second Closing Equity is subject to the satisfaction by Buyer and NHC, or waiver by Owner, as of the Second Closing, of each of the following conditions:
(i)    The representations of Buyer and NHC contained in Article IV are true and correct in all material respects (except for those qualified by materiality, which are true and correct in all respects) as of the Second Closing (other than such representations as are expressly made as of another date).
(ii)    Buyer has made the deliveries required by Section 1.6(d).
(iii)    Buyer and NHC have complied in all material respects with each of their covenants and undertakings under this Agreement as of the Second Closing.

Section 6.3    Conditions to Obligations of Buyer and NHC.  
(a)    The obligations of Buyer and NHC to consummate the purchase and sale of the Purchased Assets and the First Closing Equity is subject to the satisfaction by Sellers and Owner, or waiver by Buyer and NHC, as of the First Closing, of each of the following conditions:
(i)    The representations of Sellers and Owner contained in Article II and Section 3.1 and Section 3.2 are true and correct in all material respects (except for those qualified by materiality, which are true and correct in all respects) as of the First Closing (other than such representations as are expressly made as of another date).
(ii)    Sellers and Owner have made the deliveries required by Section 1.6(a).
(iii)    Sellers and Owner have complied in all material respects with each of their respective covenants and undertakings (other than Section 5.16) under this Agreement as of the First Closing.
(iv)    Buyer has received a statement from the independent accountants auditing the Business showing a trailing 12 months EBITDA of the Business, calculated as of January 31, 2016, of at least Four Million Six Hundred Thousand Dollars ($4,600,000), provided, however, such EBITDA calculation shall include accounts receivables for services performed during such period as earnings, less reasonable reserves for uncollectable accounts receivable, and excluding extraordinary or nonrecurring expenses.
(b)    The obligations of Buyer and NHC to consummate the purchase and sale of the Second Closing Equity is subject to the satisfaction by Owner, or waiver by Buyer and NHC, as of the Second Closing, of each of the following conditions:
(i)    The representations of Owner contained in Section 3.1 and Section 3.3 are true and correct in all material respects (except for those qualified by materiality, which are true and correct in all respects) as of the Second Closing (other than such representations as are expressly made as of another date).

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(ii)    Owner has made the deliveries required by Section 1.6(c).
(iii)    Owner has complied in all material its covenants and undertakings under this Agreement as of the Second Closing.

ARTICLE VII     
 
PURCHASE PRICE HOLDBACK

Section 7.1    Holdback.  On the First Closing Date, the Holdback shall be retained by Buyer as security for the partial payment of any and all claims by Buyer against Sellers and Owner pursuant to Section 8.2.  

Section 7.2    Distribution of Holdback.  On the 12 month anniversary of the First Closing Date, fifty percent (50%) of the Holdback, less the amount of any Loss for which reductions have been made out of the Holdback as of such date, or for which there are indemnification claims then pending, shall be paid to Sellers.  The remainder of the Holdback, less the amount of any Loss for which reductions have been made out of the Holdback as of such date, or for which there are indemnification claims then pending, shall be paid to Sellers on the 24 month anniversary of the First Closing Date.  Buyer shall be permitted to deduct the amount of any Loss that is agreed or resolved in accordance with the terms of this Agreement out of the Holdback.  Promptly following the resolution of any indemnification claims then pending, any amount of the Holdback not payable to Buyer based on the resolution of a particular claim that was previously retained shall be paid to Seller.

ARTICLE VIII     
 
INDEMNIFICATION

Section 8.1    Loss and Indemnitees Defined.  For the purposes of this Article VIII:
(a)    “Loss” means any liability, loss, cost, or injury, that results from any claim or proceeding;
(b)    “Buyer Indemnitees” means NHC, Buyer and any present or future officer, director, manager, employee, Affiliate, direct or indirect subsidiary, equity holder or agent of NHC or Buyer; and
(c)    “Seller Indemnitees” means Owner, Sellers and any present or future officer, director, manager, employee, Affiliate, direct or indirect subsidiary, equity holder or agent of Sellers.

Section 8.2    Indemnification by Sellers.  Sellers and Owner shall, jointly and severally, indemnify, defend and hold harmless each Buyer Indemnitee from and against any Losses incurred by any Buyer Indemnitee that arise out of, relate to or result from:

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(a)    any Excluded Assets or Retained Liabilities; provided, however, that such Losses do not arise out of a breach by, or default under, the Management Services Agreement by Buyer or its Affiliates;
(b)    any breach of the representations in Article II or Article III; 
(c)    any breach by Sellers or Owner of their respective covenants in this Agreement; and
(d)    any claim, action or other proceeding brought by Robert Chilton against Sellers and Owner or any claim, action or other proceeding related thereto or arising therefrom.

Section 8.3    Indemnification by Buyer and NHC.  Buyer and NHC shall, jointly and severally, indemnify, defend and hold harmless each Seller Indemnitee from and against any Losses incurred by any Seller Indemnitee that arise out of, relate to or result from:
(a)    any Assumed Liabilities;
(b)    any breach of the representations in Article IV; 
(c)    the ownership of the Purchased Assets and the operation of the First Closing Facilities after the First Closing or the operation of the Second Closing Facilities after the Second Closing, as applicable; provided, however, that such Losses do not arise out of, relate to or result from an indemnifiable matter pursuant to Section 8.2; and
(d)    any breach by Buyer or NHC of their respective covenants in this Agreement.

Section 8.4    Procedures for Indemnification.
(a)    A Party seeking indemnification pursuant to Section 8.2 or Section 8.3 (the “Indemnified Party”) shall provide prompt written notice to the Party required to provide indemnification under Section 8.2 or Section 8.3 (the “Indemnifying Party”) of any event, claim or proceeding carried out by a third party (“Third Party Claim”) for which the Indemnified Party is entitled to indemnification under this Article VIII.  The Indemnifying Party will have the right to direct, through counsel of its choice, the defense or settlement of any Third Party Claim at its own expense.  The Indemnified Party may participate in such defense at its own expense.  The Indemnified Party will promptly provide the Indemnifying Party with reasonable access to the Indemnified Party’s records and personnel relating to any Third Party Claim during normal business hours and will otherwise cooperate with the Indemnifying Party in the defense or settlement of a Third Party Claim.  The Indemnifying Party will reimburse the Indemnified Party for all of its reasonable out of pocket costs related to a Third Party Claim.
(b)    The Indemnified Party will not pay, or permit to be paid, any part of any Loss arising from a Third Party Claim, unless the Indemnifying Party consents in writing to such payment (which consent will not be unreasonably withheld or delayed) or unless a final judgment from which no appeal may be taken by or on behalf of the Indemnified Party is entered against the Indemnified Party for such Loss.  No Third Party Claim may be settled by the Indemnifying Party without the 

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written consent of the Indemnified Party, which consent will not be unreasonably withheld or delayed, unless the judgment or proposed settlement involves only the payment of money damages and does not seek to impose equitable relief.
(c)    If the Indemnifying Party fails to defend a Third Party Claim or withdraws from defending such a claim, then the Indemnified Party will have the right to undertake the defense or settlement of the applicable Third Party Claim and seek reimbursement under this Agreement.  If the Indemnified Party assumes the defense of a Third Party Claim pursuant to this Section 8.4 and proposes to settle such claim prior to a final judgment or to not pursue an appeal, then the Indemnified Party will give the Indemnifying Party prompt written notice and the Indemnifying Party will have the right to participate in the settlement or assume or reassume the defense of such Third Party Claim at the sole cost and expense of the Indemnifying Party.

Section 8.5    Survival of Limitation.  
(a)    All representations from (i) Article II, Section 3.1 and Section 3.2, and Article IV made by Sellers, Owner, Buyer and NHC shall survive the First Closing Date, and (ii) Section 3.1, Section 3.3 and Article IV made by Owner, Buyer and NHC shall survive the Second Closing Date, for a period of 2 years, except for:
(i)    the representations in Section 2.8, Section 3.2(e) and Section 3.3(e) shall survive until the expiration of the applicable statute of limitations; and
(ii)    the representations in Section 2.1, Section 2.2, Sections 2.3(a)-(c), the first two sentences of Section 2.4, Section 3.1, Section 3.2(a), Section 3.2(b), Section 3.2(f), Section 3.2(h), Section 3.3(a), Section 3.3(b), Section 3.3(f), Section 3.3(h), Section 4.1(a) and Sections 4.1(b)(i)–(iii), which shall survive indefinitely (the “Fundamental Representations”).
(b)    The covenants of each Party in this Agreement shall survive for the relevant statute of limitations period, unless a different period is expressly provided for in this Agreement.  
(c)    Any claim for indemnification under Section 8.2 or Section 8.3 must be asserted within the applicable survival period set forth in this Section 8.5.  Any claim asserted in writing prior to the expiration of the applicable survival period shall survive until such claim is resolved and payment, if any is owed, is made.

Section 8.6    Limitations on Indemnification and Payment of Damages.
(a)    Sellers and Owner shall not be liable under Section 8.2(b) until the aggregate amount of indemnification claims made by the Buyer Indemnitees exceeds One Hundred Thousand Dollars ($100,000) and, in such event, Sellers and Owner, jointly and severally, shall be required to pay the amount of all such Losses only in excess of such amounts.
(b)    The aggregate payments made by Sellers and Owner in satisfaction of claims of the Buyer Indemnitees for indemnity pursuant to Section 8.2(b) shall not exceed Three Million Two Hundred Seventy-Five Thousand Dollars ($3,275,000).

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(c)    Notwithstanding the foregoing, the limitations set forth in Sections 8.6(a) and (b) shall not apply to Losses arising out of fraud, breaches of the Fundamental Representations, or Section 8.2(d), provided, however, if claims by the Buyer Indemnitees for indemnity pursuant to Section 8.2(b) include claims arising from breaches of the Fundamental Representations, the aggregate payments made by Sellers and Owner in satisfaction of claims of the Buyer Indemnitees for indemnity pursuant to Section 8.2(b), including for claims arising from breaches of other representations in Article II, shall not exceed the Purchase Price. 
(d)    The calculation of any Loss pursuant to this Article VIII shall be reduced by any insurance proceeds received by the Indemnified Party but shall not be reduced for any Tax benefits realized or not by an Indemnified Party from such Loss.
(e)    Buyer shall setoff any amount to which it is entitled under this Article VIII first against the Holdback and then against the principal amount of the Note before seeking any amounts from Sellers or Owner.
(f)    The indemnification provided in this Article VIII shall be the sole and exclusive remedy after the First Closing or Second Closing, as applicable, for breaches of this Agreement, except for those provisions for which this Agreement provides that an equitable remedy may be sought.

Section 8.7    Characterization of Indemnification Payments.  Unless otherwise required by law, all payments made pursuant to this Article VIII shall be treated for all Tax purposes as adjustments to the Purchase Price.  To the extent any such payment is not treated as a non-taxable adjustment to the Purchase Price by any taxing authority, Sellers or Buyer (as applicable) shall make such payment on an after-Tax basis so that the amount of any such payment is increased to adjust for any Taxes imposed on Buyer or Sellers (as applicable) as a result of receiving such payment.

Section 8.8    Express Negligence Rule.  THE INDEMNIFICATION AND ASSUMPTION PROVISIONS PROVIDED FOR IN THIS AGREEMENT HAVE BEEN EXPRESSLY NEGOTIATED IN EVERY DETAIL, ARE INTENDED TO BE GIVEN FULL AND LITERAL EFFECT, AND SHALL BE APPLICABLE WHETHER OR NOT THE LIABILITIES, OBLIGATIONS, CLAIMS, JUDGMENTS, LOSSES, COSTS, EXPENSES OR DAMAGES IN QUESTION ARISE OR AROSE SOLELY OR IN PART FROM THE GROSS, ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF ANY INDEMNIFIED PARTY.  THE PARTIES ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND CONSTITUTES CONSPICUOUS NOTICE.  NOTICE IN THIS CONSPICUOUS NOTICE IS NOT INTENDED TO PROVIDE OR ALTER THE RIGHTS AND OBLIGATIONS OF THE PARTIES, ALL OF WHICH ARE SPECIFIED ELSEWHERE IN THIS AGREEMENT. 

ARTICLE IX     
 
TERMINATION

Section 9.1    Termination.  This Agreement may be terminated:

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(a)    by either Sellers and Owner, on the one hand, or Buyer and NHC, on the other hand, in writing, after October 31, 2016, if the First Closing has not occurred; provided, that, as of such date the terminating Party is not in default under this Agreement; and provided, further, however, that Buyer’s and NHC’s inability to deliver the Cash Purchase Price to Sellers shall not be a default under this Agreement for the purposes of this Section 9.1(a);
(b)    by either Buyer and NHC, on the one hand, or Sellers and Owner, on the other hand, in writing, if there is instituted or threatened any action by any rulemaking authority or court, or there is in effect any order of any rulemaking authority or court, that seeks to prohibit or limit Buyer from exercising all material rights and privileges of its ownership of the Purchased Assets; provided, that, Buyer and Sellers shall have used their reasonable best efforts to have any such action or order lifted and the same shall not have been lifted within 30 days after entry; or
(c)    by either Buyer and NHC, on the one hand, or Sellers and Owner, on the other hand, in writing, if the other Parties are not able to comply with the conditions to the First Closing in Section 6.2 or Section 6.3; provided, that the defaulting Parties shall have a period of 10 days following written notice from the non-defaulting Parties to cure any breach of this Agreement, if such breach is curable; and provided, further, however, that Buyer’s and NHC’s inability to deliver the Cash Purchase Price shall not be a default under this Agreement for the purposes of this Section 9.1(a).

Section 9.2    Effect of Termination.  
(a)    In the event of termination in accordance with Section 9.1, this Agreement will become void and there will be no liability on the part of any Party or their respective directors, managers, officers, equity holders or agents, except as provided in Section 10.1 and except that any such termination shall be without prejudice to the rights of any Party arising out of the breach by any other Party of any representation or covenant contained in this Agreement or due such other Party’s failure or refusal to close without justification under this Agreement.
(b)    If this Agreement is terminated pursuant to Section 9.1(a) and as of such date Sellers or Owner are not in default under this Agreement, Buyer and NHC shall, jointly and severally, pay to Sellers and Owner to an account designated by Owner Three Hundred Thousand Dollars ($300,000) as a termination fee and liquidated damages and such payment shall, notwithstanding Section 9.2(a), be the sole and exclusive monetary remedy of Sellers and Owner under this Agreement except with respect to fraud or willful breaches of this Agreement by Buyer or NHC.

ARTICLE X     
 
GENERAL PROVISIONS

Section 10.1    Expenses.  All costs incurred in connection with the Transaction Documents and the Transactions shall be paid by the Party incurring such costs, whether or not the First Closing or Second Closing has occurred.  Sellers shall pay all costs related to transfer, stamp, sales, use or other similar Taxes or costs payable in connection with the sale of the Purchased Assets, the First Closing Equity and the Second Closing Equity.

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Section 10.2    Notices.  All communications under this Agreement will be in writing and will be given or made (and will be deemed to have been duly given or made upon receipt) by delivery in person, by courier service, by facsimile or by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses (or at such other address for a party as will be specified by like notice):

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	Sellers:

	 

	Arizona Center for Minimally Invasive Surgery, LLC
6617 E Cactus Wren Rd  
Paradise Valley, AZ 85253 
Fax No.: 623-321-1965
Attn: L. Philipp Wall. M.D.

Arizona Vein & Vascular Center, LLC
6617 E Cactus Wren Rd  
Paradise Valley, AZ 85253 
Fax No.: 623-321-1965
Attn: L. Philipp Wall. M.D.

L. Philipp Wall, M.D., P.C.
6617 E Cactus Wren Rd  
Paradise Valley, AZ 85253 
Fax No.: 623-321-1965
Attn: L. Philipp Wall. M.D.

	

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

	 

	Squire Patton Boggs (US) LLP
2000 Huntington Center
41 South High Street
Columbus, OH 43215
Fax No.: (614) 365-2499
Attn: Patrick D. Cornelius

	 

	Buyer or NHC:

	 

	Nobilis Health Corp.
11700 Katy Freeway Ste. 300
Houston, Texas 77079
Fax No.: (281) 840-5190
Attn: General Counsel

	 

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

	 

	Orrick, Herrington & Sutcliffe LLP
1301 McKinney Street, Suite 4100
Houston, TX 77010
Fax No.: 713-658-6401
Attn: David L. Ronn

Section 10.3    Severability.  If any term of this Agreement is held illegal or incapable of being enforced by any rule of law or public policy, all other terms of this Agreement will nevertheless 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 any manner materially adverse to any Party.

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Section 10.4    Entire Agreement.  This Agreement, together with the schedules and exhibits hereto, and the Transaction Documents constitute the entire agreement of the Parties with respect to the subject matter thereof, and supersede all prior agreements with respect thereto, including the Purchase Agreement, dated as of August 1, 2016, among the Parties.

Section 10.5    Assignment.  This Agreement shall not be assigned by any Party without the prior written consent of the non-assigning Parties; provided, however, that Buyer may assign all or a portion of its rights and obligations under this Agreement to any affiliate of Buyer, provided such person or entity agrees in writing to be bound by all of Buyer’s obligations under this Agreement.

Section 10.6    No Third-Party Beneficiaries.  This Agreement is for the sole benefit of the Parties and their successors and permitted assigns and nothing herein, express or implied, is intended to or will confer upon any other person or entity any legal or equitable right or remedy of any nature under or by reason of this Agreement, except for the indemnification rights under Article VII.

Section 10.7    Amendment; Waiver.  This Agreement may not be amended except by an instrument in writing signed by the Parties.  Waiver of any provision of this Agreement will be effective only if in writing and signed by the Party waiving the provision and, unless expressly provided, will not be a waiver of any subsequent breach or a waiver of any other provision of this Agreement (regardless of whether similar).

Section 10.8    Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of Texas applicable to contracts executed and performed entirely therein, without regard to the principles of choice of law or conflicts or law of any jurisdiction.

Section 10.9    Dispute Resolution.  In the event of any dispute between the Parties as to the interpretation of any provision of this Agreement (or the performance of obligations under this Agreement) other than a dispute over the calculation the Closing Vascular EBITDA or Anniversary Vascular EBITDA pursuant to Section 1.8, the allocation of the Purchase Price pursuant to Section 1.9, or Buyer’s right to seek specific performance pursuant to Section 5.16, the Parties shall promptly meet in a good faith effort to resolve the dispute.  If the Parties do not agree on a decision within 30 days after the first meeting on that topic, each Party shall be free to pursue and exercise any and all legal rights available to them.  The Parties shall be free to submit any unresolved dispute to any form of alternative dispute resolution they deem appropriate or, absent such agreement, the dispute shall be submitted to the Federal courts located in Harris County, Texas, which forum, the parties specifically agree, is a proper and convenient dispute resolution forum.  EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT THIS AGREEMENT.

Section 10.10    Counterparts.  This Agreement may be executed in one or more counterparts, and by the different parties to this Agreement in separate counterparts, each of which when executed will be deemed to be an original but all of which taken together will constitute one and the same agreement.  Facsimile signatures or .pdf copies shall be deemed the same as originals.

44

Section 10.11    Press Releases.  Any press release or public announcement regarding this Agreement or the Transactions shall require the written approval of Buyer and NHC, and shall be subject to the prior review by Owner and Buyer and NHC shall take into account Owner’s comments and concerns with respect to any such press release or public announcement.  
[Signature Pages Follow]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above by their respective duly authorized representatives.
	
		
	 
	BUYER:

	 
	 

	 
	Northstar Healthcare Acquisitions, L.L.C.

By: _/s/ Harry Fleming ______________
Name: Harry Fleming
Title:  Chief Executive Officer

	 
	 

	 
	NHC:

	 
	 

	 
	Nobilis Health Corp.

By: __/s/ Harry Fleming______________
Name: Harry Fleming
Title:   Chief Executive Officer

45

	
		
	 
	SELLERS:

	 
	 

	 
	Arizona Center for Minimally Invasive Surgery, LLC

By: __/s/ L. Philipp Wall, M.D.___________
Name:  L. Philipp Wall, M.D.
Title: President

	 
	

Arizona Vein & Vascular Center, LLC

By: _/s/ L. Philipp Wall, M.D.____________
Name:  L. Philipp Wall, M.D.
Title: President

	 
	

L. Philipp Wall, M.D., P.C. 

By: __/s/ L. Philipp Wall, M.D.__________
Name:  L. Philipp Wall, M.D.
Title: President

	 
	OWNER:

	 
	 

	 
	_/s/ L. Philipp Wall, M.D.______________
Name: L. Philipp Wall, M.D.

1

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