Document:

2005 U.S. Non-Qualified Deferred Compensation Plan, as amended

 Exhibit 4.1 
  
 SUN MICROSYSTEMS, INC. 
  
 2005 U.S. NON-QUALIFIED DEFERRED COMPENSATION PLAN 
  
 Effective January 1, 2005 
  
 Sun Microsystems, Inc. (the “Company”), acting on behalf of itself and its U.S. subsidiaries, hereby adopts the Sun Microsystems, Inc. 2005 U.S.
Non-Qualified Deferred Compensation Plan (the “Plan”) effective January 1, 2005. 
  
 RECITALS 
  

	1.	The Company maintains the Plan, a deferred compensation plan for the benefit of a select group of management or highly compensated employees of the Company as well as members of the
Company’s Board of Directors. 

  

	2.	The Plan is the successor plan to the Sun Microsystems, Inc. U.S. Non-Qualified Deferred Compensation Plan (the “Prior Plan”). Effective December 31, 2004, the U.S.
Non-Qualified Deferred Compensation Plan shall be frozen and no new contributions shall be made to it; provided, however, that any deferrals made under the Prior Plan before January 1, 2005 shall continue to be governed by the terms and
conditions of the Prior Plan as in effect on December 31, 2004. 

  

	3.	Any deferrals made under the Prior Plan after December 31, 2004 shall be deemed to have been made under the Plan and all such deferrals shall be governed by the terms and
conditions of the Plan as it may be amended from time to time. 

  

	4.	Under the Plan, the Company is obligated to pay vested accrued benefits to Plan Participants and their Beneficiary or Beneficiaries from the Company’s general assets.

  

	5.	The Company has entered into an agreement (the “Trust Agreement”) with Wells Fargo Bank, N.A. pursuant to which Wells Fargo Bank, N.A., serves as the trustee (the
“Trustee”) under an irrevocable trust, to be used in connection with the Plan (the “Trust”). 

  

	6.	The Company intends to make contributions to the Trust so that such contributions will be held by the Trust and invested, reinvested and distributed, all in accordance with this
Plan and the Trust Agreement. 

  

	7.	The Company intends that amounts contributed to the Trust and the earnings thereon shall be used by the Trustee to satisfy the liabilities of the Company under the Plan with respect
to each Plan Participant for whom an Account (as defined below) has been established and such utilization shall be in accordance with the procedures set forth herein. 

	8.	The Company intends that the Trust be a “grantor trust” with the principal and income of the Trust treated as assets and income of the Company for federal and state income
tax purposes. 

  

	9.	The Company intends that the assets of the Trust shall at all times be subject to the claims of the general creditors of the Company as provided in the Trust Agreement.

  

	10.	The Company intends that the existence of the Trust shall not alter the characterization of the Plan as “unfunded” for purposes of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), and shall not be construed to provide income to Plan Participants under the Plan prior to actual payment of the vested accrued benefits hereunder. 

  

	11.	The Company intends that the Plan comply with the requirements of Section 409A of the Code. 

  
 NOW THEREFORE, the Company does hereby adopt this Plan as follows and does also hereby agree that the Plan shall be
structured, held and disposed of as follows: 
  

	 	1.	Purpose. The Plan provides Participants an opportunity to defer payment of a portion of Employee salary and incentive bonus/commissions (for Sales Vice Presidents and
Directors); Employee annual and quarterly bonus awards; and Board of Directors’ Director Fees. 

  

	 	2.	Definitions. 

  

	 	(a)	Account means a bookkeeping account established pursuant to Section 5(a) of the Plan for Compensation that is subject to a Participant’s Deferred Compensation
Election. 

  

	 	(b)	Administrator means the Compensation Committee or such other person, company or entity as may be designated from time to time by the Compensation Committee except as
otherwise provided herein. 

  

	 	(c)	Beneficiary means the person or persons designated by the Participant or by the Plan under Section 11(b) of the Plan to receive payment of the Participant’s Account
in the event of the Participant’s death. 

  

	 	(d)	Board means the Board of Directors of the Company, as constituted from time to time. 

  

	 	(e)	Change of Control. A “Change of Control” shall be deemed, consistent with Section 409A of the Code and the proposed regulations promulgated thereunder, to
occur on the date that: 

  

	 	(i)	Any one person, or more than one person acting as a group (as defined in Proposed Regulation Section 1.409A-3(g)(5)(v)(B)), acquires ownership of stock of the Company, that
together with 

  

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 stock held by such person or group, constitutes more than fifty percent (50%) of the total fair
market value or total voting power of the stock of the Company. However, if any one person, or more than one person acting as a group, is considered to own more than fifty percent (50%) of the total fair market value or total voting power of
the stock of the Company, the acquisition of additional stock by the same person or persons is not considered a Change of Control. This Section 2(e)(i) applies only when there is a transfer of stock of the Company (or the issuance of stock of
the Company) and stock in the Company remains outstanding after the transaction; or 
  

	 	(ii)	Any one person, or more than one person acting as a group (as defined in Proposed Regulation Section 1.409A-3(g)(5)(v)(B)), acquires (or has acquired during the twelve-month
period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total “Gross Fair Market Value” (as defined in Proposed Regulation Section 1.409A-3(g)(5)(vii)(A)) equal to or
more than forty percent (40%) of the total Gross Fair Market Value of all of the assets of the Company immediately prior to such acquisition or acquisitions; or 

  

	 	(iii)	Any one person, or more than one person acting as a group (as defined in Proposed Regulation Section 1.409A-3(g)(5)(v)(B)), acquires (or has acquired during the twelve-month
period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the stock of the Company; or

  

	 	(iv)	A majority of the members of the Board is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the
Board prior to the date of the appointment or election; provided, however, that no Change of Control shall be deemed to have occurred if any other corporation is a majority shareholder of the Company. 

  

	 	(f)	Code means the Internal Revenue Code of 1986, as amended. 

  

	 	(g)	Compensation Committee means the Leadership Development and Compensation Committee of the Board, appointed by the Board from time to time. 

  

	 	(h)	Company means Sun Microsystems, Inc. and its U.S. subsidiaries, and any successor organization thereto. 

  

	 	(i)	Compensation means: 

  

	 	(i)	The amount paid by the Company to an Eligible Employee as base salary; and 

  

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	 	(ii)	The amount paid by the Company to an Eligible Employee as an annual or quarterly corporate bonus award and any other bonus/incentive award that is approved by the Administrator as
earnings that can be deferred under the Plan (some incentive/bonus awards will not be eligible for deferral); and 

  

	 	(iii)	For Sales Vice Presidents and Directors, incentive bonus/commissions; and 

  

	 	(iv)	In the case of an Eligible Board Member, the amount of his or her Director Fees from the Company. 

  
 For purposes of the foregoing, Compensation as described in clauses (i), (ii) and (iii) shall be eligible for
deferral only to the extent such amounts are otherwise subject to U.S. payroll reporting and withholding. 
  

	 	(j)	Deferred Compensation Election means an election by an Eligible Employee or Eligible Board Member to participate in the Plan in accordance with Section 4 of the Plan.

  

	 	(k)	Determination Date means each December 31. 

  

	 	(l)	Director Fees means any compensation payable with respect to an Eligible Board Member’s service as a member of the Board, including, but not limited to, meeting fees and
annual retainer fees. Director Fees do not include directors’ expense reimbursements, stock options, or other stock-based compensation. 

  

	 	(m)	Election Period means November/December of each Plan Year. 

  

	 	(n)	Eligible Board Member means a member of the Board (other than a member who is also an Eligible Employee) who meets the requirements set forth in Section 3 of the Plan.

  

	 	(o)	Eligible Employee means an officer of the Company or other common-law employee of the Company whose position is approved as a director level or higher and who otherwise meets
the requirements set forth in Section 3 of the Plan. 

  

	 	(p)	ERISA means the Employee Retirement Income Security Act of 1974, as amended. 

  

	 	(q)	Investment Committee means the Administrative Committee of the Sun Microsystems, Inc. Tax Deferred Retirement Savings Plan. 

  

	 	(r)	Key Employee means an Eligible Employee who, on a Determination Date, is 

  

	 	(i)	An officer of the Company having annual compensation greater than the compensation limit in Section 416(i)(1)(A)(i) of the Code, provided that no more than fifty officers of
the Company shall be determined to be Key Employees as of any Determination Date; 

  

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	 	(ii)	A five percent owner of the Company; or 

  

	 	(iii)	A one percent owner of the Company having annual compensation from the Company of more than $150,000. 

  
 If an Eligible Employee is determined to be a Key Employee on a Determination Date, then such Eligible Employee shall be
considered a Key Employee for purposes of the Plan during the period beginning on the first April 1 following the Determination Date and ending on the next March 31. 
  

	 	(s)	Participant means an Eligible Board Member or an Eligible Employee who has elected to defer Compensation. 

  

	 	(t)	Plan means this Sun Microsystems, Inc. 2005 U.S. Non-Qualified Deferred Compensation Plan, as amended from time to time. 

  

	 	(u)	Plan Year means the calendar year. 

  

	 	(v)	Prior Plan means the Sun Microsystems, Inc. U.S. Non-Qualified Deferred Compensation Plan, as amended from time to time. 

  

	 	(w)	Retirement Date means the last day of the month coinciding with or following the Participant’s separation from Service following the earlier of his or her

  

	 	(i)	55th birthday, if the Participant’s full years of Service with the Company and its non-U.S. subsidiaries added to Participant’s age (in full years) equals or exceeds 65;
or 

  

	 	(ii)	20th year anniversary of Service (including Service with businesses acquired by the Company and designated by the Administrator for this purpose). 

  

	 	(x)	Service means: 

  

	 	(i)	Employment as a common-law employee of the Company or one of its non-U.S. subsidiaries; or 

  

	 	(ii)	Period served as an elected Board Member. 

  
 A Participant’s Service shall be determined by the Administrator in its sole discretion. A Participant’s Service shall not be deemed to have
separated from Service merely because the capacity in which the Participant renders Service to the Company or any of its non-U.S. subsidiaries changes from Eligible Employee to Eligible Board Member or vice-versa. Notwithstanding the foregoing, a
separation from Service will not be deemed to have occurred if 
  

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 an Eligible Employee continues to provide services to the Company or any of its non-U.S. subsidiaries in a capacity other
than as an employee and if the former Eligible Employee is providing services at an annual rate that is fifty percent or more of the services rendered, on average, during the immediately preceding three full calendar years of employment with the
Company or any of its non-U.S. subsidiaries (or if employed by the Company or any of its non-U.S. subsidiaries less than three years, such lesser period) and the annual remuneration for such services is fifty percent or more of the annual
remuneration earned during the final three full calendar years of employment (of if less, such lesser period); provided, however, that a separation from Service will be deemed to have occurred if an Eligible Employee’s service with the Company
or any of its non-U.S. subsidiaries is reduced to an annual rate that is less than twenty percent of the services rendered, on average, during the immediately preceding three full calendar years of employment with the Company or any of its non-U.S.
subsidiaries (or if employed by the Company or any of its non-U.S. subsidiaries less than three years, such lesser period) or the annual remuneration for such services is less than twenty percent of the annual remuneration earned during the three
full calendar years of employment with the Company or any of its non-U.S. subsidiaries (or if less, such lesser period). 
  
 In addition to the foregoing, a separation from Service will not be deemed to have occurred while an Eligible Employee is on military leave, sick leave,
or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Eligible Employee’s right to reemployment with the Company or any of its non-U.S. subsidiaries is provided either by
statute or contract. If the period of leave exceeds six months and the Eligible Employee’s right to reemployment is not provided either by statute or contract, then the employee is deemed to have separated from Service on the first day
immediately following such six-month period. 
  

	 	(y)	Unforeseeable Emergency means a severe financial hardship to the Participant or Beneficiary resulting from: 

  

	 	(i)	An illness or accident of the Participant or Beneficiary, the Participant’s or Beneficiary’s spouse, or the Participant’s or Beneficiary’s dependent (as defined
in Section 152(a) of the Code); or 

  

	 	(ii)	Loss of the Participant’s or Beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance);
or 

  

	 	(iii)	Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or Beneficiary. 

  
 Hardship shall not constitute an Unforeseeable Emergency under the Plan to
the extent that it is, or may be, relieved by: 
  

	 	(i)	Reimbursement or compensation, by insurance or otherwise; 

  

	 	(iv)	Liquidation of the Participant’s or Beneficiary’s assets to the extent that the liquidation of such assets would not itself cause severe financial hardship. Such assets
shall include but not be limited to stock options, Company stock, and 401(k) plan balances; or 

  

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	 	(v)	Cessation of deferrals under the Plan. 

  
 An Unforeseeable Emergency under the Plan does not include (among other events): 
  

	 	(ii)	Sending a child to college; or 

  

	 	(vi)	Purchasing a home. 

  

	 	3.	Eligibility. Participation in the Plan is limited to Eligible Board Members, and Eligible Employees who are members of a select group of management or highly compensated
employees. Such Eligible Board Member or Eligible Employee is eligible to participate in the Plan if he or she is paid through the Company’s U.S. payroll and not covered under a non-U.S. retirement plan. 

  

	 	4.	Election to Participate in Plan. 

  

	 	(a)	Deferral Election. An Eligible Employee or an Eligible Board Member may elect to participate in the Plan by submitting a Deferred Compensation Election in such form as the
Company may specify during any Election Period. Subject to the provisions of Sections 4(b) below, a Deferral Election must be made and become irrevocable not later than last day of the Plan Year preceding the Plan Year in which the Compensation
being deferred is earned. A Deferred Compensation Election made in the 2006 Plan Year or thereafter will remain in force until it is amended or revoked. Any such amendment or revocation will take affect on the first day of the Plan Year following
the Plan Year in which the Participant elects to amend or revoke the outstanding Deferred Compensation Election. In addition to the foregoing, a Participant’s Deferred Compensation Election shall be suspended if such Participant applies for and
is otherwise eligible to receive a distribution on account of an Unforeseeable Emergency. Such suspension shall continue through the end of Plan Year in which the Participant applies for a distribution due to an Unforeseeable Emergency and the
Participant must submit a new Deferred Compensation Election during an Election Period to resume participation in the Plan. 

  

	 	(b)	Deferral Election for Newly Eligible Employees and Newly Eligible Board Members. In the Administrator’s discretion, a newly Eligible Employee or a newly Eligible Board
Member may elect to participate in the Plan by submitting a Deferred Compensation Election in such form as the Company may specify; provided that such Deferred Compensation Election is made and becomes irrevocable not later than thirty days
following the date such newly Eligible Employee or Board Member first becomes eligible to participate in the Plan and provided further that such 

  

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 Deferred Compensation Election applies only to Compensation earned after the date of the election. In
compliance with this Section 4(b), only a prorated portion of a Participant’s bonus may be deferred if the Participant’s initial Deferred Compensation Election is made after the performance period applicable to the bonus has begun.
Effective January 1, 2006 only a newly Eligible Employee whose position is approved as a vice president level or higher shall be permitted in the Administrator’s discretion to make a Deferred Compensation Election pursuant to this
Section 4(b). 
  

	 	(c)	Special Elections in 2005 regarding Deferrals. In accordance with IRS Notice 2005-1, A-20, (i) on or before March 11, 2005, Eligible Employees were permitted to
terminate Deferred Compensation Elections made with respect to salary and incentive award/commission Compensation earned during the period January 1, 2005 through March 20, 2006 and Deferred Compensation Elections made with respect to
fiscal year 2005 bonus Compensation that was otherwise payable in 2005 and (ii) on or before November 25, 2005 certain Eligible Employees were permitted to terminate Deferred Compensation Elections made with respect to 2005 bonus
Compensation, notwithstanding the fact that such Deferred Compensation Elections otherwise would have been irrevocable under Section 4(a) above. Elections made pursuant to this Section 4(c) are irrevocable and subject to any special
administrative rules imposed by the Administrator consistent with Section 409A of the Code and Notice 2005-1, A-20. No special election under this Section 4(c) shall be permitted after December 31, 2005. 

  

	 	(d)	Initial Deferral Election. Any Deferred Compensation Election under this Section 4 that is an initial Deferred Compensation Election also will include an election as to
the time and form of payment of the deferred Compensation. 

  

	 	(e)	Election Form. All Deferred Compensation Elections under this Section 4 shall be made in a manner prescribed for these purposes by the Administrator.

  

	 	5.	Accounts. 

  

	 	(a)	Establishment of Account. The Company shall establish an Account for the terms of the Deferred Compensation Election. 

  

	 	(b)	Credits to Account. A Participant’s Account shall be credited with an amount equal to the percentage of each Compensation payment which would have been payable currently
to the Participant but for the terms of the Deferred Compensation Election. Deferred Compensation for Participants shall be credited to the Participant’s Account as of the first day of the month in which such deferred amounts would otherwise be
paid to the Participant. 

  

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	 	(c)	Vesting. Participants shall at all times be 100% vested in their deferrals under the Plan and all earnings or losses allocable thereto. 

  

	 	6.	Deferral Increments. 

  

	 	(a)	Minimum Deferral. The minimum deferral per Plan Year will be determined by the Administrator. 

  

	 	(b)	Maximum Deferral – Eligible Employees. The Participant who is an Eligible Employee may elect to defer (less any withholding requirements): 

  

	 	(i)	Up to 75% of any eligible annual or quarterly bonus award; and 

  

	 	(ii)	Up to 60% of base salary and incentive awards/commissions. 

  

	 	(c)	Maximum Deferral – Eligible Board Members. A Participant who is an Eligible Board Member may elect to defer (less any withholding requirements), up to 100% of his or her
Director Fees (to be credited to the account quarterly). 

  

	 	7.	Earnings or Losses on Accounts. 

  

	 	(a)	General Rule. Except as otherwise provided in the Plan, the amount in a Participant’s Account shall be adjusted for gain or loss based on the performance of the
investment options selected by the Participant (or Beneficiary following a Participant’s death) in accordance with Section 7(b) below. Gain or loss shall be computed daily. All distributions from the Account will be valued as of the end of
the last day of the month preceding the payment date. 

  

	 	(b)	Designation of Investment Indices by the Investment Committee. The Investment Committee shall specify two or more investment funds that shall serve as benchmarks for the
investment performance of amounts credited to the Accounts. Accounts shall be adjusted to reflect the gain or loss, net of any allocable costs or expenses, such accounts would experience had they actually been invested in the specified funds at the
relevant times. The Investment Committee may vary the available investment funds from time to time, but not more frequently than quarterly. A Participant (or Beneficiary following a Participant’s death) may select his or her investment options
for new deferrals or for amounts already credited to his or her Account, once per month effective as of the first day of the following month and in such manner as the Investment Committee may specify. 

  

	 	8.	Certain In-Service Account Distributions. 

  

	 	(a)	In-Service Account Distribution Elections. Each Participant may elect at the time of his or her initial Deferred Compensation Election or in accordance with Section 8(c)
below, to have one or more distributions of a 

  

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 specified percentage or dollar amount of his or her Account commencing in his or her third year of Plan
participation, provided that the Participant has not separated from Service with the Company or any of its non-U.S. subsidiaries prior to the elected in-service distribution date. A Participant may delay once or cancel such in-service account
distribution election at any time, provided that such election must be made at least one year prior to the first day of the Plan Year in which the original distribution date was scheduled, and provided further that the newly elected distribution
date is at least five years after the originally scheduled distribution date. A Participant may not receive an in-service account distribution more frequently than once in a Plan Year whether such distribution is on account of an initial in-service
account distribution election or a modified in-service account distribution election. Any in-service account distribution shall be paid with the last payroll of the month following the distribution date elected by the Participant. 
  

	 	(b)	Previously Scheduled In-Service Account Distributions. In-service account distribution elections in effect under the Prior Plan and not otherwise modified pursuant to
Section 8(c) below shall remain in full force and effect with respect to the Plan. Notwithstanding the foregoing, in-service account distributions elections in effect under the Prior Plan pursuant to which distributions were scheduled to occur
in 2005 shall not apply to Compensation deferred in 2005 (and earnings thereon); provided, however, that if a Participant elected a distribution of one hundred percent of his Account in 2005 pursuant to an in-service account distribution election in
effect under the Prior Plan, then such election shall apply to Compensation deferred in 2005 (and earnings thereon). In-service account distribution elections in effect under the Prior Plan that apply, pursuant to this Section 8(b), to
Compensation deferred under the Plan and to Compensation deferred under the Prior Plan and pursuant to which distributions shall be made in 2006 and later, shall be applied pro rata to Compensation deferred under the Plan and the Prior Plan based on
the relative values of the Plan and Prior Plan accounts. 

  

	 	(c)	Special In-Service Account Distribution Election. Notwithstanding any other provision of the Plan to the contrary, a Participant may elect an in-service account distribution
or change the time of an in-service account distribution as elected in accordance with Section 8(a) or 8(b) above, provided that the election is made at least twelve months prior to the originally scheduled distribution date and the election is
made not later than December 31, 2006. An elections made pursuant to this Section 8(c) shall be treated as an initial in-service account distribution election and shall be subject to any special administrative rules imposed by the
Administrator including rules intended to comply with Section 409A of the Code and Notice 2005-1, A-19. No election under this Section 4(c) shall (i) result in an in-service distribution before the Participant’s third year of
Plan participation, (ii) result in a Participant receiving an in-service distribution more frequently than once in a Plan Year, (iii) change the 

  

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 payment date of any distribution otherwise scheduled to be paid in 2006 or cause a payment to be paid in
2006, or (iv) be permitted after December 31, 2006. 
  

	 	9.	Statements. Quarterly, and/or at intervals determined by the Administrator, the Company shall prepare and deliver to each Participant a statement listing the amount credited
to such Account as of the applicable date. 

  

	 	10.	Form and Time of Payment of Accounts. 

  

	 	(a)	Distribution of Account upon Retirement. In the event of a Participant’s separation from Service on or after his or her Retirement Date, distribution of the
Participant’s Account shall begin with the last payroll of the month following the month in which the Participant separates from Service, and shall be made consistent with the form of distribution specified on the Participant’s Deferred
Compensation Election. After the first installment, future installments shall be paid with the second payroll of each Plan Year. Available forms shall include either a lump sum payment or a series of approximately equal annual installments over a
period of five years, ten years or fifteen years. For purposes of the Plan, installment payments shall be treated as a single distribution under Section 409A of the Code. Accounts subject to installment payouts shall continue to be adjusted for
gains or losses in the same manner as active Accounts. A Participant may modify his or her elected form of distribution (i.e., lump sum or installments) at any time prior to the date that is at least one year before the date the Participant
separates from Service, provided that the Participant’s distribution is delayed at least five years from the originally scheduled distribution date. If a Participant modifies his or her elected form of distribution but he or she separates from
Service less than one year following the date of the modification election, his or her prior elected form of distribution shall apply to any distribution. 

  

	 	(b)	Distribution Prior to Retirement. If a Participant separates from Service with the Company or any of its non-U.S. subsidiaries prior to his or her Retirement Date (other than
on account of death), distribution of the Participant’s Account shall begin with the last payroll of the month following the month in which the Participant separates from Service and shall be made consistent with the form of distribution
specified on the Participant’s Deferred Compensation Election. After the first installment, future installments shall be paid with the second payroll of each Plan Year. Available forms of distribution shall include either a lump sum payment or
a series of approximately equal annual installments over a period of five years. For purposes of the Plan, installment payments shall be treated as a single distribution under Section 409A of the Code. Accounts subject to installment payouts
shall continue to be adjusted for gains or losses in the same manner as active Accounts. A Participant may modify his or her elected form of distribution (i.e. lump sum or installments) at any time prior to the date that is at least one year before
the date the Participant separates from Service, provided that the 

  

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 Participant’s distribution is delayed at least five years from the originally scheduled
distribution date. If a Participant modifies his or her elected form of distribution but he or she separates from Service less than one year following the date of the modification election, his or her prior elected form of distribution shall apply
to any distribution. 
  

	 	(c)	Previously Scheduled Distribution Elections. A distribution election applicable to a Participant’s separation from Service on or after his or her Retirement Date or a
Participant’s separation from Service prior to his or her Retirement Date in effect under the Prior Plan shall remain in full force and effect with respect to the Plan subject to the terms and conditions of Sections 10(a) and (b) above.

  

	 	(d)	Default Distribution Election. In the absence of an effective Deferred Compensation Election as to the timing and/or method of distribution of a Participant’s Account,
distribution of the Participant’s Account shall be made in one lump sum payment with the last payroll of the month following the month in which the Participant separates from Service. 

  

	 	(e)	Delayed Distribution to Key Employees. Notwithstanding any other provision of Sections 10(a), (b), (c) or (d) above, a distribution made to a Participant who is
designated as a Key Employee shall be delayed for a minimum of sixth months following the Participant’s separation from Service. Any payment that otherwise would have been made pursuant to Sections 10(a), (b), (c) or (d) above during
such sixth month period shall be made in one lump sum payment with the last payroll of the seventh month following the month in which the Participant separates from Service. The determination of which Participants are Key Employees shall be made by
the Administrator in its sole discretion in accordance with Section 2(r) of the Plan and Sections 416(i) and 409A of the Code and the regulations promulgated thereunder. 

  

	 	(f)	Separation from Service on account of Leave of Absence or Reduction in Service. Notwithstanding any other provision of this Section 10, any distribution triggered under
the Plan on account of a Participant’s separation from Service following (i) a military leave, sick leave, or other bona fide leave of absence that is more than six months in duration where the Participant’s right to reemployment with
the Company or any of its non-U.S. subsidiaries is not provided either by statute or contract or (ii) a reduction in the Participant’s service with the Company or any of its non-U.S. subsidiaries to an annual rate that is less than twenty
percent of the services rendered, on average, during the immediately preceding three full calendar years of employment with the Company or any of its non-U.S. subsidiaries (or if employed by the Company or any of its non-U.S. subsidiaries less than
three years, such lesser period) or the annual remuneration for such services is less than twenty percent of the annual remuneration earned during the three full calendar years of employment (or if less, such lesser period), shall begin with the
last payroll of the month following the month in which the Participant is no longer paid through the Company’s or any of its non-U.S. subsidiaries’ payroll. 

  

 12 

	 	(g)	Unforeseeable Emergency. In the event of a Participant’s Unforeseeable Emergency, and upon application by such Participant, the Administrator may determine at its sole
discretion that payment of all, or part, of such Participant’s Account shall be made in one lump sum payment with the last payroll of the month following the month in which the distribution is approved by the Administrator. Payments due to a
Participant’s Unforeseeable Emergency shall be permitted only to the extent reasonably required to satisfy the Participant’s need. 

  

	 	(h)	Prohibition on Acceleration. Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from the Plan that would constitute an
impermissible acceleration of payment as defined in Section 409A(3) of the Code and the regulations promulgated thereunder. 

  

	 	11.	Effect of Death of Participant. 

  

	 	(a)	Distributions. In the event of a Participant’s death while an Eligible Employee or Eligible Board Member (except in the case of a Participant’s suicide during the
first two years of his or her participation in the Plan), the Participant’s Account, together with an amount equal to two times the Participant’s actual deferrals under the Plan (exclusive of earnings) (the “supplemental survivor
benefit”) shall be distributed to the Participant’s Beneficiary. Notwithstanding the foregoing, the total supplemental survivor benefit shall not exceed Three Million Dollars ($3,000,000). In the event of (i) a Participant’s
death while no longer an Eligible Employee or Eligible Board Member (as applicable), or (ii) a Participant’s suicide during the first two years of his or her participation in the Plan, only the Participant’s Account, if any, shall be
distributed to the Beneficiary. The Participant’s supplemental survivor benefit shall be paid in a lump sum not later than twelve months following the Participant’s death and the Participant’s Account, if any, shall be distributed to
the Participant’s Beneficiary in three annual installments commencing with the last payroll of the month following the month in which the Participant dies. After the first installment, future installments shall be paid with the second payroll
of each Plan Year. The remaining Account balance (during the period of the installment payouts) shall continue to be adjusted for gains or losses in the same manner as active Accounts. 

  

	 	(b)	Beneficiary Designation. Upon enrollment in the Plan, each Participant shall file a prescribed form with the Company naming a person or persons as the Beneficiary who will
receive distributions payable under the Plan in the event of the Participant’s death. If the Participant does not name a Beneficiary, or if none of the named Beneficiaries is living at the time payment is due, then the Beneficiary shall be the
Participant’s spouse, or if none, the Participant’s children in equal shares, or if none, the Participant’s estate. 

  

 13 

 The Participant may change the designation of a Beneficiary at any time in accordance with procedures
established by the Administrator. Designation of a Beneficiary, or an amendment or revocation thereof, shall be effective only if made in the prescribed manner and received by the Company prior to the Participant’s death. 
  

	 	12.	General Duties of Trustee. The Trustee shall manage, invest and reinvest the Trust Fund as provided in the Trust Agreement. The Trustee shall collect the income on the Trust
Fund, and make distributions therefrom, all as provided in the Plan and in the Trust Agreement 

  

	 	13.	Withholding Taxes. All distributions under the Plan shall be subject to reduction in order to reflect tax withholding obligations imposed by law. 

  

	 	14.	Participant’s Unsecured Rights. The Account of any Participant, and such Participant’s right to receive distributions from his or her Account, shall be considered
an unsecured claim against the general assets of the Company; such Accounts are unfunded bookkeeping entries. The Company considers the Plan to be unfunded for tax purposes and for purposes of Title I of ERISA. No Participant shall have an interest
in, or make claim against, any specific asset of the Company pursuant to the Plan. 

  

	 	15.	Non-assignability of Interests. Except as provided under Section 19 of the Plan, the interest of a Participant under the Plan is not subject to option or assignable by
either voluntary or involuntary assignment or by operation of law, including without limitation to: bankruptcy, garnishment, attachment or other creditor’s process. Any act in violation of this Section 15 shall be void and without effect.

  

	 	16.	Limitation of Rights. 

  

	 	(a)	Bonuses. Nothing in this Plan shall be construed to give any Eligible Employee any right to be granted a bonus award. 

  

	 	(b)	Employment Rights. Neither the Plan nor deferral of any Compensation, nor any other action taken pursuant to the Plan, shall constitute, or be evidence of, any agreement or
understanding, express or implied, that the Company will employ an Eligible Employee for any period of time, in any position at any particular rate of compensation. The Company reserves the right to terminate an Eligible Employee’s Service at
any time for any reason, except as otherwise expressly provided in a written employment agreement. 

  

	 	17.	Administration of the Plan. The Plan shall be administered by the Administrator. The Administrator shall have full power and authority to administer, construe and determine
all questions that shall arise as to interpretations of the Plan’s provisions, including determination of eligibility, allocation of assets, method of payment, participation and benefits under the terms of the Plan, establish procedures for
administering the Plan, prescribe forms, and take any and all necessary actions in connection with the Plan. The Administrator’s interpretation and construction of the Plan shall be conclusive and binding on all persons, and

  

 14 

 will be given the maximum possible deference allowed by law. The Administrator may appoint such agents,
counsel, accountants, consultants and other persons as may be required to assist in administering the Plan and to allocate and delegate its power and authority described herein to one or more employees, officers or agents or to one or more persons
or organizations that it has employed to perform its administrative responsibilities. In the event that any Participants are found to be ineligible, that is, not members of a select group of management or highly compensated employees, according to a
determination made by the U.S. Department of Labor, the Administrator shall take whatever steps it deems necessary, in its sole discretion, to equitably protect the interests of the affected Participants. 
  

	 	18.	Amendment or Termination of the Plan. 

  

	 	(a)	General Rule. The Compensation Committee may amend, suspend, or terminate the Plan at any time; provided, however, that no such action shall reduce a Participant’s
Account under the Plan without the Participant’s written consent. In the event of termination of the Plan, the Accounts of Participants shall be distributed within the period beginning twelve months after the date the Plan was terminated and
ending twenty-four months after the date the Plan was terminated, or pursuant to Sections 8 or 10 of the Plan, if earlier. If the Plan is terminated and Accounts are distributed, the Company shall terminate all account balance non-qualified deferred
compensation plans with respect to all participants and shall not adopt a new account balance non-qualified deferred compensation plan for at least five years after the date the Plan was terminated. 

  

	 	(b)	Change of Control. The Compensation Committee may terminate the Plan thirty days prior to or twelve months following a Change of Control and distribute the Accounts of the
Participants within the twelve-month period following the termination of the Plan. If the Plan is terminated and Accounts are distributed, the Company shall terminate all substantially similar non-qualified deferred compensation plans sponsored by
the Company and all of the benefits of the terminated plans shall be distributed within twelve months following the termination of the plans. 

  

	 	(c)	Dissolution or Bankruptcy. The Plan shall automatically terminate upon a corporation dissolution of the Company that is taxed under Section 331 of the Code or with the
approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1(A), provided that the Participants’ Accounts are distributed and included in the gross income of the Participants by the latest of (i) the Plan Year in which the
Plan terminates or (ii) the first Plan Year in which payment of the Accounts is administratively practicable. 

  

	 	19.	Domestic Relations Orders. 

  

	 	(a)	In General. The procedures established by the Company for the determination of the qualified status of domestic relations orders and for making distributions under qualified
domestic relations orders, as provided in Section 206(d) of ERISA, shall apply to the Plan, to the extent applicable. 

  

 15 

	 	(b)	Distributions. To the extent required to comply with a qualified domestic relations order, amounts awarded to an alternate payee under a qualified domestic relations order
shall be distributed in the form of a lump sum distribution as soon as administratively feasible following the determination of the qualified status of the domestic relations order. To the extent that the qualified domestic relations order does not
require an immediate lump sum distribution, the alternate payee shall have all rights regarding investment elections and distribution elections and withdrawal rights as if such alternate payee were a Participant. For purposes of determining
distributions to an alternate payee, “separation from Service” or “Retirement Date” shall be the separation from Service or Retirement Date of the Participant whose Account was the subject of the qualified domestic relations
order. 

  

	 	20.	Incompetency. In the event a benefit is payable to a minor or person declared incompetent or incapable of handling the disposition of his property, the Administrator may pay
such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent or incapable person. The Administrator may require proof of incompetency, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the Company from all liability with respect to such benefit. 

  

	 	21.	Choice of Law. The validity, interpretation, construction and performance of the Plan shall be governed by ERISA and the Code, and, to the extent that they are not preempted,
by the laws of the State of California, excluding California’s choice-of-law provisions. 

  

	 	22.	Claims and Review Procedure. 

  

	 	(a)	Informal Resolution of Questions. Any Participant or Beneficiary who has questions or concerns about his or her benefits under the Plan is encouraged to communicate with the
Administrator. If this discussion does not give the Participant or Beneficiary satisfactory results, a formal claim for benefits may be made within one year of the event giving rise to the claim in accordance with the procedures of this
Section 22. 

  

	 	(b)	Formal Benefits Claim – Review by Administrator. A Participant or Beneficiary may make a written request for review of any matter concerning his or her benefits under
this Plan. The claim must be addressed to the Administrator, 2005 U.S. Non-qualified Deferred Compensation Plan, Sun Microsystems, Inc., 4230 Network Circle, M\S USCA23-106, Santa Clara, California 95054. The Administrator shall decide the action to
be taken with respect to any such request and may require additional information if necessary to process the request. The Administrator shall review the request and shall issue his or her decision, in writing, no later than 90 days after the date
the request is received, 

  

 16 

 unless the circumstances require an extension of time. If such an extension is required, written notice
of the extension shall be furnished to the person making the request within the initial 90-day period, and the notice shall state the circumstances requiring the extension and the date by which the Administrator expects to reach a decision on the
request. In no event shall the extension exceed a period of 90 days from the end of the initial period. 
  

	 	(c)	Notice of Denied Request. If the Administrator denies a request in whole or in part, he or she shall provide the person making the request with written notice of the denial
within the period specified in Section 22(b) above. The notice shall set forth the specific reason for the denial, reference to the specific Plan provisions upon which the denial is based, a description of any additional material or information
necessary to perfect the request, an explanation of why such information is required, and an explanation of the Plan’s appeal procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to
bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review. 

  

	 	(d)	Appeal to Administrator. 

  

	 	(i)	A person whose request has been denied in whole or in part (or such person’s authorized representative) may file an appeal of the decision in writing with the Administrator
within 60 days of receipt of the notification of denial. The appeal must be addressed to: Administrator, 2005 U.S. Non-qualified Deferred Compensation Plan, Sun Microsystems, Inc., 4230 Network Circle, M\S USCA23-106, Santa Clara, California 95054.
The Administrator, for good cause shown, may extend the period during which the appeal may be filed for another 60 days. The appellant and/or his or her authorized representative shall be permitted to submit written comments, documents, records and
other information relating to the claim for benefits. Upon request and free of charge, the applicant should be provided reasonable access to and copies of, all documents, records or other information relevant to the appellant’s claim.

  

	 	(ii)	The Administrator’s review shall take into account all comments, documents, records and other information submitted by the appellant relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit determination. The Administrator shall not be restricted in his or her review to those provisions of the Plan cited in the original denial of the claim.

  

	 	(iii)	The Administrator shall issue a written decision within a reasonable period of time but not later than 60 days after receipt of the appeal, unless special circumstances require an
extension of 

  

 17 

 time for processing, in which case the written decision shall be issued as soon as possible, but not
later than 120 days after receipt of an appeal. If such an extension is required, written notice shall be furnished to the appellant within the initial 60-day period. This notice shall state the circumstances requiring the extension and the date by
which the Administrator expects to reach a decision on the appeal. 
  

	 	(iv)	If the decision on the appeal denies the claim in whole or in part written notice shall be furnished to the appellant. Such notice shall state the reason(s) for the denial,
including references to specific Plan provisions upon which the denial was based. The notice shall state that the appellant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and
other information relevant to the claim for benefits. The notice shall describe any voluntary appeal procedures offered by the Plan and the appellant’s right to obtain the information about such procedures. The notice shall also include a
statement of the appellant’s right to bring an action under Section 502(a) of ERISA. 

  

	 	(v)	The decision of the Administrator on the appeal shall be final, conclusive and binding upon all persons and shall be given the maximum possible deference allowed by law.

  

	 	(e)	Exhaustion of Remedies. No legal or equitable action for benefits under the Plan shall be brought unless and until the claimant has submitted a written claim for benefits in
accordance with Section 22(b) above, has been notified that the claim is denied in accordance with Section 22(c) above, has filed a written request for a review of the claim in accordance with Section 22(d) above, and has been
notified in writing that the Administrator has affirmed the denial of the claim in accordance with Section 22(d) above; provided, however, that an action for benefits may be brought after the Administrator has failed to act on the claim within
the time prescribed in Section 22(b) and Section 22(d), respectively. 

  

	 	(f)	Statute of Limitations. No legal or equitable action for benefits under the Plan may be commenced more than two years after the Administrator denies the claim on appeal or the
Administrator fails to act on the claim within the time prescribed in Section 22(b) and Section 22(d), respectively. 

  

	 	23.	Execution and Signature. To record the adoption of the Plan by the Compensation Committee, the Company has caused its duly authorized officer to affix the corporate name
hereto: 

  

			
	 SUN MICROSYSTEMS, INC.

		
	 By:
	 	 /s/ William N. MacGowan

	 Printed Name: William N. MacGowan

	 Title:
	 	 Senior Vice President, Human Resources

  

 18Amendmend & Restated Asset Purchase Agreement dated January 30, 2006

 Exhibit 10.1 
  
 Execution Copy 
  
 AMENDED AND RESTATED 
 ASSET PURCHASE
AGREEMENT (FOCUS) 
  
 by and among 
  
 FOCUS HEALTHCARE, LLC 
 and the other Sellers named herein, 
  
 as Sellers, 
  
 and 
  
 HORIZON HEALTH CORPORATION, 
  
 as Purchaser

  
 Dated as of January 30, 2006 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page No.

	 ARTICLE1  DEFINITIONS; SALE AND TRANSFER OF ASSETS; CONSIDERATION; CLOSING; OTHER MATTERS
	  	2
	 1.1
	  	 Definitions
	  	2
	 1.2
	  	 Transfer of Seller Assets
	  	6
	 1.3
	  	 Excluded Assets
	  	8
	 1.4
	  	 Assumed Liabilities
	  	9
	 1.5
	  	 Excluded Liabilities
	  	9
	 1.6
	  	 Actions Taken on Execution Date
	  	11
	 1.7
	  	 Purchase Price
	  	12
	 1.8
	  	 Closing Date
	  	13
	 1.9
	  	 Items to be Delivered by Sellers at Closing
	  	14
	 1.10
	  	 Items to be Delivered by Purchaser at Closing
	  	15
	 1.11
	  	 Prorations and Utilities
	  	17
	 1.12
	  	 Net Assets Adjustment
	  	17
	 1.13
	  	 Risk of Loss
	  	19
	 1.14
	  	 Seller Representative
	  	21
		
	 ARTICLE 2    REPRESENTATIONS AND WARRANTIES OF SELLERS
	  	23
	 2.1
	  	 Authority
	  	23
	 2.2
	  	 Authorization/Execution
	  	23
	 2.3
	  	 Organization and Good Standing; No Subsidiaries; No Conflicts
	  	23
	 2.4
	  	 Financial Statements; Changes; Related Matters
	  	24
	 2.5
	  	 Taxes
	  	25
	 2.6
	  	 Material Contracts
	  	27
	 2.7
	  	 Real and Personal Property; Title to Property; Leases
	  	27
	 2.8
	  	 Intangible Property
	  	29
	 2.9
	  	 Legal Proceedings
	  	29
	 2.10
	  	 [Reserved]
	  	30
	 2.11
	  	 Insurance
	  	30
	 2.12
	  	 Employees
	  	30
	 2.13
	  	 Employee Benefits
	  	30
	 2.14
	  	 Certain Interests
	  	31
	 2.15
	  	 Inventory
	  	31
	 2.16
	  	 Receivables
	  	32
	 2.17
	  	 Third-Party Payors and Suppliers
	  	32
	 2.18
	  	 Worker Adjustment and Retraining Notification (WARN)
	  	32
	 2.19
	  	 Environmental Compliance
	  	32
	 2.20
	  	 Powers of Attorney
	  	33
	 2.21
	  	 Accreditation; Medicare and Medicaid; Third-Party Payors; Compliance with Health Care Laws
	  	34
	 2.22
	  	 Compliance Program
	  	36
	 2.23
	  	 HIPAA
	  	36
	 2.24
	  	 Restricted Grant and Loan Programs
	  	36

  

 - i - 

					
	 2.25
	  	 Experimental Procedures
	  	36
	 2.26
	  	 Medical Staff; Physician Relations
	  	36
	 2.27
	  	 Solvency
	  	37
	 2.28
	  	 No Brokers or Finders
	  	37
	 2.29
	  	 Improper Payments
	  	37
	 2.30
	  	 No Misrepresentations
	  	37
		
	 ARTICLE 3    REPRESENTATIONS AND WARRANTIES OF PURCHASER
	  	37
	 3.1
	  	 Authority
	  	37
	 3.2
	  	 Authorization/Execution
	  	37
	 3.3
	  	 Organization and Good Standing; No Violation
	  	38
	 3.4
	  	 Brokers and Finders
	  	38
	 3.5
	  	 Due Diligence
	  	38
	 3.6
	  	 Financial Ability
	  	38
	 3.7
	  	 No Misrepresentations
	  	38
		
	 ARTICLE 4    COVENANTS OF SELLERS
	  	38
	 4.1
	  	 Access and Information; Inspection Period
	  	38
	 4.2
	  	 Conduct of Business
	  	39
	 4.3
	  	 Negative Covenants
	  	40
	 4.4
	  	 Consents
	  	41
	 4.5
	  	 Additional Financial Information
	  	41
	 4.6
	  	 No-Shop
	  	41
	 4.7
	  	 Sellers’ Efforts to Close
	  	41
	 4.8
	  	 Notification; Updating of Disclosure Schedules
	  	41
	 4.9
	  	 Facility Repairs
	  	42
	 4.10
	  	 DE Facility Remediation
	  	42
	 4.11
	  	 Payment of Taxes
	  	42
	 4.12
	  	 [Reserved]
	  	42
	 4.13
	  	 Required Approvals; Other Actions
	  	42
	 4.14
	  	 HUD Loan
	  	43
		
	 ARTICLE 5    COVENANTS OF PURCHASER
	  	43
	 5.1
	  	 Purchaser’s Efforts to Close
	  	43
	 5.2
	  	 Confidentiality
	  	43
	 5.3
	  	 Waiver of Bulk Sales Law Compliance
	  	44
	 5.4
	  	 Required Approvals; Other Actions
	  	44
	 5.5
	  	 Financing
	  	45
		
	 ARTICLE 6    CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLERS
	  	45
	 6.1
	  	 Accuracy of Representations and Warranties
	  	45
	 6.2
	  	 Purchaser’s Performance
	  	45
	 6.3
	  	 Governmental Authorizations
	  	45
	 6.4
	  	 Other Consents
	  	45
	 6.5
	  	 Unfavorable Action or Proceeding
	  	45
	 6.6
	  	 Signing and Delivery of Instruments
	  	46
	 6.7
	  	 Simultaneous Closing Under Lighthouse Purchase Agreement
	  	46

  

 - ii - 

					
		
	 ARTICLE 7    CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER
	  	46
	 7.1
	  	 Accuracy of Representations and Warranties
	  	46
	 7.2
	  	 Seller’s Performance
	  	46
	 7.3
	  	 Governmental Authorizations
	  	46
	 7.4
	  	 Unfavorable Action or Proceeding
	  	46
	 7.5
	  	 Required Consents
	  	46
	 7.6
	  	 No Material Adverse Change
	  	47
	 7.7
	  	 Disclosure Schedules
	  	47
	 7.8
	  	 Real Property Title Matters
	  	47
	 7.9
	  	 Milestones Program Agreement
	  	47
	 7.10
	  	 Facility Repairs
	  	47
	 7.11
	  	 [Reserved]
	  	47
	 7.12
	  	 APE Contracts
	  	47
	 7.13
	  	 Signing and Delivery of Instruments
	  	48
	 7.14
	  	 Simultaneous Closing Under Lighthouse Purchase Agreement
	  	48
		
	 ARTICLE 8    TERMINATION
	  	48
	 8.1
	  	 Termination
	  	48
	 8.2
	  	 Effect of Termination; Other Matters
	  	49
		
	 ARTICLE 9    POST-CLOSING MATTERS
	  	50
	 9.1
	  	 Excluded Assets and Excluded Liabilities
	  	50
	 9.2
	  	 Preservation and Access to Records After the Closing
	  	50
	 9.3
	  	 Provision of Benefits of Contracts and Leases
	  	51
	 9.4
	  	 Misdirected Payments, Etc
	  	52
	 9.5
	  	 Collection of Receivables
	  	52
	 9.6
	  	 Termination Cost Reports
	  	53
	 9.7
	  	 Change of Sellers’ Name
	  	53
	 9.8
	  	 Other Actions
	  	53
	 9.9
	  	 Certain Excluded Assets
	  	54
		
	 ARTICLE 10    SURVIVAL AND INDEMNIFICATION
	  	55
	 10.1
	  	 Survival
	  	55
	 10.2
	  	 Indemnification and Reimbursement by Sellers
	  	55
	 10.3
	  	 Indemnification and Reimbursement by Purchaser
	  	56
	 10.4
	  	 Limitations On Amount
	  	57
	 10.5
	  	 Limitations
	  	57
	 10.6
	  	 Escrow
	  	59
	 10.7
	  	 Third-Party Claims
	  	59
	 10.8
	  	 Other Claims
	  	61
		
	 ARTICLE 11    TAX AND COST REPORT MATTERS
	  	61
	 11.1
	  	 Tax Matters; Allocation of Aggregate Purchase Price
	  	61
	 11.2
	  	 Cost Report Matters
	  	62
		
	 ARTICLE 12    MISCELLANEOUS PROVISIONS
	  	62
	 12.1
	  	 Entire Agreement
	  	62

  

 - iii - 

					
	 12.2
	  	 Further Assurances
	  	63
	 12.3
	  	 Assignments, Successors and No Third Party Rights
	  	63
	 12.4
	  	 Governing Law
	  	64
	 12.5
	  	 Amendments
	  	64
	 12.6
	  	 Notices
	  	64
	 12.7
	  	 Headings
	  	65
	 12.8
	  	 Confidentiality and Publicity
	  	65
	 12.9
	  	 Expenses and Attorneys’ Fees
	  	65
	 12.10
	  	 Severability
	  	66
	 12.11
	  	 Execution of Agreements
	  	66
	 12.12
	  	 Seller Obligations
	  	66
	 12.13
	  	 Enforcement
	  	66
	 12.14
	  	 Waiver; Remedies Cumulative
	  	67
	 12.15
	  	 Waiver of Jury Trial
	  	67

  

 - iv - 

 LIST OF EXHIBITS 
  

			
	EXHIBIT

	  	 DESCRIPTION

		
	AA	  	Agreement and Plan of Merger and Asset Purchase Agreement
	A	  	Closing Date Escrow Agreement
	B-1 and B-2	  	Forms of Bills of Sale
	C	  	Opinion of Counsel for Sellers
	D	  	Form of Limited Powers of Attorney
	E	  	Opinion of Counsel for Purchaser
	F-1, F-2 and F-3	  	Title Commitments

  

 - i - 

 LIST OF SCHEDULES 
  

			
	 SCHEDULE

	  	 DESCRIPTION

		
	 1.2(a)
	  	 Real Property

		
	 1.2(b)
	  	 Personal Property

		
	 1.2(d)
	  	 Leases

		
	 1.2(e)
	  	 Contracts

		
	 1.2(m)
	  	 Intangible Property

		
	 1.3(b)
	  	 Excluded Contracts

		
	 1.3(m)
	  	 Excluded Assets

		
	 1.4(f)
	  	 Other Assumed Liabilities

		
	 1.12
	  	 Net Assets

		
	 2.3(a)
	  	 Organization and Good Standing

		
	 2.3(b)
	  	 Subsidiaries

		
	 2.3(c)
	  	 Seller Consents/Conflicts

		
	 2.4(a)
	  	 Financial Statements

		
	 2.4(b)
	  	 Interim Financial Statements

		
	 2.4(e)
	  	 Financial Statement Matters; Changes Affecting Business

		
	 2.4(f)
	  	 Financial Statement Matters; Current Liabilities

		
	 2.5(b)
	  	 Tax Matters

		
	 2.6
	  	 Material Contracts

		
	 2.7(a)
	  	 Title Matters; Condition of Property

		
	 2.7(c)
	  	 Real Property Leases

		
	 2.7(d)
	  	 Title Matters; Leases

		
	 2.7(g)
	  	 Lease Defaults

		
	 2.8
	  	 Intangible Property

		
	 2.9
	  	 Legal Proceedings

		
	 2.11
	  	 Insurance/Claims

		
	 2.12(a)
	  	 Employees

		
	 2.14
	  	 Affiliate Transactions

		
	 2.17
	  	 Payor Contracts

		
	 2.19
	  	 Environmental Matters

		
	 2.21(a)
	  	 Accreditation

		
	 2.21(b)
	  	 Uncorrected Deficiencies

		
	 2.21(c)
	  	 Facility Provider and Supplier Numbers

		
	 2.21(d)
	  	 Cost/Other Report Matters

		
	 2.21(e)
	  	 Facility Reviews

		
	 2.26
	  	 Medical Staff Matters

		
	 4.9
	  	 Facility Repairs

		
	 6.4
	  	 Other Consents

		
	 7.5
	  	 Required Consents

		
	 7.8(b)
	  	 Real Property Title Matters

  

 - i - 

 TABLE OF DEFINED TERMS 
  

			
	 Term

	  	Page

	 Accounting Firm
	  	18
	 Accounts Receivable
	  	7
	 Additional Closing Purchase Price Payment
	  	13
	 Affiliate
	  	3
	 Agency Settlements
	  	62
	 Aggregate Damage
	  	19
	 Aggregate Purchase Price
	  	12
	 Agreement
	  	1
	 Agreement and Plan of Merger
	  	2
	 Allocation Schedule
	  	61
	 Anti-Kickback Law
	  	3
	 Antitrust Laws
	  	3
	 APE
	  	30
	 Assets
	  	6
	 Assignments of Leases
	  	15
	 Assumed Liabilities
	  	9
	 Base Net Assets
	  	17
	 Bills of Sale
	  	14
	 Check Payment
	  	53
	 Closing
	  	13
	 Closing Date
	  	14
	 Closing Date Escrow Agreement
	  	13
	 Closing Date Escrow Deposit
	  	13
	 Closing Date Net Assets
	  	17
	 Closing Date Net Assets Calculation
	  	18
	 Closing Dates
	  	3
	 Closing Purchase Price Payment
	  	12
	 Closings
	  	3
	 Code
	  	25
	 Commonly Controlled Entity
	  	31
	 Confidential Information
	  	44
	 Contract and Lease Consents
	  	15
	 Contracts
	  	7
	 Control
	  	3
	 Controlled By
	  	3
	 Controlling
	  	3
	 Cooper City Prime Lease
	  	15
	 Cooper City Sublease
	  	15
	 Current Assets
	  	17
	 Current Liabilities
	  	17
	 Damages
	  	55
	 DE Closing
	  	12
	 DE Facility
	  	1

			
	 DE Lease
	  	15
	 Delaware Remediation
	  	42
	 Deposit Account
	  	53
	 Designee
	  	64
	 DIA
	  	2
	 Disclosure Schedules
	  	3
	 Document Retention Period
	  	51
	 DOJ
	  	43
	 Effective Time
	  	14
	 Effective Times
	  	3
	 Environmental Laws
	  	32
	 ERISA
	  	31
	 Escrow Agent
	  	12
	 Escrow Agreement
	  	3
	 Estimated Net Assets
	  	17
	 Excluded Assets
	  	8
	 Excluded Contracts
	  	7
	 Excluded Government Receivables
	  	55
	 Excluded Liabilities
	  	10
	 Execution Date
	  	1
	 Execution Date Escrow Agreement
	  	12
	 Execution Date Escrow Deposit
	  	12
	 Extension Escrow Deposit
	  	49
	 Facilities
	  	1
	 Facility Repairs
	  	42
	 Facility Worker
	  	4
	 False Claims Act
	  	4
	 Final Net Assets Settlement Amount
	  	18
	 Final Net Assets Settlement Date
	  	18
	 Focus DE
	  	2
	 Focus DE Assets
	  	2
	 Focus FL
	  	6
	 Focus FL Apartment Leases
	  	28
	 FTC
	  	43
	 Funds Transfer
	  	53
	 GAAP
	  	4
	 Government Programs
	  	4
	 Governmental Approvals
	  	4
	 HHC Delaware
	  	2
	 Highpoint LLC
	  	6
	 HSR Act
	  	3
	 HUD
	  	2
	 HUD Approval
	  	2
	 HUD Escrow Funds
	  	13
	 HUD Lender
	  	4
	 HUD Loan
	  	4
	 immediate family member
	  	4

  

 - 2 - 

			
	 Indemnified Person
	  	59
	 Indemnifying Person
	  	59
	 Independent Consultant
	  	20
	 Intangible Property
	  	29
	 Interim Balance Sheet Date
	  	24
	 Interim Balance Sheets
	  	24
	 Inventory
	  	7
	 JCAHO
	  	34
	 Knowledge of Sellers
	  	4
	 Leases
	  	7
	 Legal Requirement
	  	4
	 Letter of Intent
	  	4
	 Licenses
	  	6
	 Liens
	  	15
	 Lighthouse Entities
	  	2
	 Lighthouse Purchase Agreement
	  	2
	 LOI Deposit
	  	13
	 Material Adverse Change
	  	4
	 Material Adverse Effect
	  	4
	 Material Contract
	  	27
	 Material Interest
	  	5
	 Members
	  	2
	 Merger
	  	2
	 Merger Sub
	  	2
	 Net Assets
	  	17
	 Net Assets Adjustment Amount
	  	17
	 Noncompetition Agreements
	  	12
	 Original Purchase Agreement
	  	1
	 Owner
	  	5
	 Parties
	  	1
	 Party
	  	1
	 Payments
	  	53
	 Permitted Encumbrances
	  	28
	 Person
	  	5
	 Personal Property
	  	6
	 Plan
	  	31
	 Powers of Attorney
	  	15
	 Prepaids
	  	7
	 Proceeding
	  	5
	 Purchaser
	  	1
	 Purchaser Indemnified Person
	  	56
	 Purchaser Indemnified Persons
	  	55
	 Real Property
	  	6
	 Real Property Leases
	  	28
	 Related Person
	  	5
	 Restatement Execution Date
	  	1
	 Right of First Refusal Agreements
	  	12

  

 - 3 - 

			
	 Seller APE Leases
	  	30
	 Seller Cost Reports
	  	53
	 Seller Representative
	  	21
	 Sellers
	  	6
	 Specified Representations
	  	6
	 Stark Law
	  	6
	 Submittal Date
	  	20
	 Tax
	  	25
	 Tax Return
	  	25
	 Taxes
	  	25
	 Third-Party Claim
	  	6
	 Title Commitments
	  	28
	 Title Policies
	  	47
	 Under Common Control With
	  	3
	 WARN Act
	  	32

  

 - 4 - 

 AMENDED AND RESTATED 
 ASSET PURCHASE AGREEMENT (FOCUS) 
  
 This AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) (this “agreement”) is made and entered into as of the 30th day of January, 2006 (the “Restatement Execution Date”), by and among FOCUS HEALTHCARE, LLC, a California limited liability company, the other SELLERS (as defined herein) and HORIZON HEALTH
CORPORATION, a Delaware corporation whose chief executive office is located in Lewisville, Texas (“Purchaser”). Sellers AND Purchaser are sometimes collectively referred to herein as the “Parties” and individually referred to
herein as a “Party.” 
  
 R E C I T A L S:

  
 A. Sellers own and operate the following behavioral health
facilities (the “Facilities”): 
  

	 	(i)	Focus Healthcare of Delaware d/b/a Meadowood Behavioral Health System, a fifty-three (53) licensed bed freestanding behavioral health facility located in New Castle, Delaware
(“DE Facility”); 

  

	 	(ii)	Focus Healthcare of Florida, a licensed freestanding behavioral health facility consisting of sixty-two (62) licensed beds located at a location owned and operated by Sellers
in Cooper City, Florida and twenty-two (22) licensed beds that are leased and operated by Sellers at a separate location in Cooper City, Florida; 

  

	 	(iii)	Focus Healthcare of Georgia d/b/a Focus-by-the-Sea, a one hundred one (101) licensed bed freestanding behavioral health facility located on St. Simons Island, Georgia; and

  

	 	(iv)	Focus Healthcare of Ohio, a forty-two (42) licensed bed behavioral health facility located in Maumee, Ohio. 

  
 B. Sellers and Purchaser previously entered into an Asset Purchase Agreement
(Focus) (the “Original Purchase Agreement“) dated December 9, 2005 (the “Execution Date“) under which Purchaser expressed its desire to purchase from Sellers, and Sellers expressed their desire to sell and transfer to
Purchaser, all of the real property and other assets owned by any Seller, other than certain excluded assets specified therein, for the consideration and upon the terms and conditions contained in the Original Purchase Agreement. 
  
 C. The Parties to the Original Purchase Agreement desire to enter into this
Agreement to amend and restate the Original Asset Purchase Agreement to, among other amendments, provide that (i) instead of Purchaser acquiring the assets owned by Delaware Investment Associates, LLC, a Delaware limited liability company
(“DIA“), it is in the best interests of the Parties that (A) HHC Realty Investments, LLC, a Delaware limited liability company that is an indirect, wholly-owned subsidiary of Purchaser (the “Merger Sub“), merge 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 1 

 
with and into DIA (the “Merger“), (B) DIA survive such Merger (DIA, as the survivor of the Merger, the “Surviving Company”),
(C) the members of DIA (the “Members“) receive the consideration payable in the Merger, and (D) upon consummation of the Merger, HHC Delaware, Inc., a Delaware corporation that is an indirect, wholly-owned subsidiary of Purchaser
(“HHC Delaware“), shall be the sole member of the Surviving Company, (ii) instead of Purchaser acquiring the assets of Focus Healthcare of Delaware, LLC, a Delaware limited liability company (“Focus DE“), HHC Delaware
acquire Assets of Focus DE (the “Focus DE Assets”), in exchange for the Focus DE Asset Purchase Price provided for in the Agreement and Plan of Merger referred to below, and (iii) in each case, to condition the closing of such
transactions upon receipt of all necessary approvals and consents (the “HUD Approval“) from the U.S. Department of Housing and Urban Development (“HUD“) or upon prepayment in full of the HUD Loan in accordance with
Section 4.14 of this Agreement, all as described in that certain Agreement and Plan of Merger and Asset Purchase Agreement among Purchaser, HHC Delaware, Merger Sub, DIA and Focus DE substantially in the form attached hereto as
Exhibit AA (the “Agreement and Plan of Merger“). The Agreement and Plan of Merger is being executed simultaneously with the execution of this Agreement. 
  
 D. Simultaneous with the execution and delivery of the Original Purchase Agreement by the Parties, Lighthouse Care Centers,
LLC and certain entities related to it, as sellers (Lighthouse Care Centers, LLC and such other entities, collectively, the “Lighthouse Entities”), and Purchaser, as purchaser, executed and delivered an Asset Purchase Agreement
(Lighthouse) (as amended or restated from time to time, the “Lighthouse Purchase Agreement”) providing for the sale to Purchaser by the Lighthouse Entities of certain assets of the Lighthouse Entities simultaneously with the consummation
of the Closing under this Agreement. 
  
 A G R E E M E N T:

  
 NOW, THEREFORE, in consideration of the foregoing
premises and the mutual promises and covenants contained in this Agreement, the Parties, intending to be legally bound, agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS; SALE AND
TRANSFER OF ASSETS; 
 CONSIDERATION; CLOSING; OTHER MATTERS 
  
 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly provided herein or unless the
context hereof otherwise requires, 
  
 (a) the
terms used in this Agreement include the plural as well as the singular; 
  
 (b) all accounting terms used but not otherwise defined herein shall be interpreted and all accounting determinations hereunder shall be made in accordance with GAAP; 
  
 (c) all references in this Agreement to designated
“Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of the main body of this Agreement; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 2 

 (d) pronouns of either gender or neuter include, as appropriate, the other pronoun forms;

  
 (e) the words “including” and
“include” are deemed to be followed by the words “without limitation”; 
  
 (f) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole, including the Exhibits and Schedules attached hereto, and not to any particular Article, Section or other subdivision; 
  
 (g) “or” is used in the inclusive sense of “and/or”; 
  
 (h) “Affiliate” of a specified Person means any other Person directly or indirectly controlling,
controlled by or under common control with the specified Person. The term “control” (including the terms “controlling,” “controlled by“ and “under common control with“) means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; 
  
 (i) “Anti-Kickback Law” means 42 U.S.C. § 1320a-7b(b) and any rules or regulations
promulgated thereunder; 
  
 (j) “Antitrust
Laws” means the Sherman Act, as amended, the Clayton Act, as amended, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act“), the Federal Trade Commission Act, as amended, and all other laws, rules,
regulations and other legal requirements that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade; 
  
 (k) “Closings” means the Closing under this Agreement and the DE Closing under the Agreement and
Plan of Merger; 
  
 (l) “Closing Dates”
means the Closing Date under this Agreement and the DE Closing Date under the Agreement and Plan of Merger; 
  
 (m) “Disclosure Schedules” means the Schedules that are identified on the cover page thereof as “Sellers Disclosure
Schedule” and attached to this Agreement; 
  
 (n) “Effective Times” means the Effective Time under this Agreement and the DE Effective Time under the Agreement and Plan of Merger; 
  
 (o) “Escrow Agreement” means the Execution Date Escrow Agreement or the Closing Date Escrow Agreement; 
  
 (p) “Facility Worker” means any individual who
provides services to any Seller at or in connection with the operation of any Facility pursuant to an employee leasing agreement between the employer of such individual and any Seller; 
  
 (q) “False Claims Act” means 31 U.S.C. § 3729 et. seq. and any rules or regulations
promulgated thereunder; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 3 

 (r) “GAAP” means United States generally accepted accounting principles, as
applied on a basis consistent with past practice; 
  
 (s) “Governmental Approvals” means all consents, approvals, authorizations, clearances, certificates of need, licenses and permits required to be obtained from governmental or regulatory agencies, authorities or bodies that are
required for the consummation of the transactions contemplated by this Agreement or the Agreement and Plan of Merger; 
  
 (t) “Government Programs” means the Medicare, Medicaid and TRICARE programs and any other Federal health care programs as
defined in 42 U.S.C. § 1320a-7b(f); 
  
 (u) “HUD Loan” means that certain Mortgage Note dated September 6, 2001, in the original principal amount of $7,284,500 from DIA, as maker, payable to the order of AMI Capital, Inc., a Delaware corporation (the “HUD
Lender“), as payee, which is insured by HUD and secured by the Mortgage between DIA and HUD Lender, dated September 6, 2001, and recorded on September 6, 2001 in the Office of the Recorder of Deeds in and for New Castle County, State
of Delaware, in Instrument No. 20010906-0073583; 
  
 (v) “immediate family member” has the meaning given to such term in 42 C.F.R. §411.351; 
  
 (w) “Knowledge of Sellers”, and similar variations thereof (including any reference to the “Knowledge” of any Seller),
means the actual knowledge, as of the relevant date, of Byron DeFoor, Chuck Jabaley, Nelson Bowers, Neil Campbell or Mark Schneider after reasonable inquiry by them of Joe Hartl, Chief Financial Officer of Focus Healthcare, LLC, and the
administrator of each Facility; 
  
 (x)
“Legal Requirement” means any federal, state, local or other constitution, treaty, statute, code, ordinance, law, principle of common law, or written rule or regulation; 
  
 (y) “Letter of Intent” means the amended and restated letter of intent dated October 25,
2005, as amended by letter dated November 30, 2005 and by letter dated December 7, 2005, among Purchaser, Focus Healthcare, LLC and Lighthouse Care Centers, LLC, relating to the transactions contemplated by this Agreement and the
Lighthouse Purchase Agreement; 
  
 (z)
“Material Adverse Change” or “Material Adverse Effect”, when used with respect to any Seller or Facility, or Sellers, means any material adverse change in or effect on such Seller or Facility, or Sellers as a whole, as
applicable, other than changes or effects that are or result from occurrences relating to the United States economy generally, the United States health care industry generally or any usual and customary seasonal variations or fluctuations in the
occupancy rate of any Facility or the receivables of Sellers; 
  
 (aa) “Material Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of voting securities or other voting interests
representing at least ten percent (10%) of the outstanding voting power of a Person or equity securities or other equity interests representing at least ten percent (10%) of the outstanding equity securities or equity interests in a
Person; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 4 

 (bb) “Owner” means (i) each Seller, (ii) each Lighthouse Entity,
(iii) each party to a Right of First Refusal Agreement, other than Purchaser, and (iv) each Person that directly, or indirectly through one or more intermediaries, owns an equity security or other equity interest in any Person listed in
any of the preceding clauses (i), (ii) or (iii); 
  
 (cc) “Person” means any natural person, partnership, corporation, limited liability company, association, government, governmental agency, governmental authority, governmental body, governmental or political subdivision, trust or
other legal entity; 
  
 (dd)
“Proceeding” means any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, whether public or private) commenced, brought,
conducted or heard by or before, or otherwise involving, any government, governmental agency, governmental authority or body, court or arbitrator; 
  
 (ee) “Related Person” means: 
  
 With respect to a particular individual: 
  
 (i) each immediate family member of such individual; 
  
 (ii) any Person that is directly or indirectly controlled by such individual or any one or more immediate
family members of such individual; 
  
 (iii) any
Person in which such individual or any one or more immediate family members of such individual holds (individually or in the aggregate) a Material Interest; and 
  
 (iv) any Person with respect to which such individual or any one or more immediate family members of such
individual serves as a manager, director, executive officer, partner, executor or trustee (or in a similar capacity). 
  
 With respect to a specified Person other than an individual: 
  
 (v) any Person that is an Affiliate of such specified Person; 
  
 (vi) any Person that holds a Material Interest in such
specified Person; 
  
 (vii) each Person that
serves as a manager, director, executive officer, partner, executor or trustee of such specified Person (or in a similar capacity); 
  
 (viii) any Person in which such specified Person holds a Material Interest; and 
  
 (ix) any Person with respect to which such specified Person
serves as a manager, general partner or trustee (or in a similar capacity). 
  
 (ff) “Sellers” means, collectively, (i) Focus Healthcare, LLC, a California limited liability company, (ii) except where expressly excluded as a Seller, Focus DE, (iii) Focus 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 5 

 
Healthcare of Florida, LLC, a Delaware limited liability company (“Focus FL”), (iv) Focus Healthcare of Georgia, LLC, a Georgia limited
liability company, (v) Focus Healthcare of Ohio, LLC, a Delaware limited liability company, (vi) except where expressly excluded as a Seller, DIA, and (vii) Highpoint Investment Associates, LLC, a Delaware limited liability company
(“Highpoint LLC“); “Seller” means any of the Sellers individually; 
  
 (gg) “Specified Representations“ means any representation or warranty in either of Sections 2.5 or 2.21; 
  
 (hh) “Stark Law“ means 42 U.S.C.
§ 1395nn and the rules or regulations promulgated thereunder; and 
  
 (ii) “Third-Party Claim“ means any claim against any Indemnified Person by a Person that is not a Party, whether or not involving a Proceeding. 
  
 Other capitalized terms used in this Agreement have the respective meanings assigned to such terms elsewhere in this
Agreement. For ease of reference, the page containing the definition of each such capitalized term is listed in the table of defined terms included elsewhere as a part of this Agreement. 
  
 1.2 Transfer of Seller Assets. Subject to Section 12.3(b), at the Closing, but effective as of the Effective
Time, Sellers shall sell, assign, transfer, convey and deliver to Purchaser, free and clear of any Liens other than Permitted Encumbrances, and Purchaser shall acquire, all right, title and interest in and to all assets and properties of Sellers,
real, personal or mixed, tangible and intangible, of every kind and description, wherever located, whether owned collectively by one or more Sellers or individually by any Seller (collectively, the “Assets”), including the following:

  
 (a) all of the real property owned by any
Seller, including the real property described in Schedule 1.2(a), together with all buildings, improvements and fixtures located thereon and all construction in progress thereon (collectively, the “Real Property”); 

 
 (b) all equipment, furniture, fixtures, machinery,
vehicles, office furnishings, leasehold improvements, and other tangible personal property owned by any Seller, including the items listed in Schedule 1.2(b) (the “Personal Property”); 
  
 (c) all rights of any Seller, to the extent assignable or
transferable, to all licenses, permits, approvals, certificates of need, certificates of exemption, franchises, accreditations and registrations and other governmental licenses, permits or approvals issued to any Seller (the “Licenses”);

  
 (d) subject to Section 9.3, the entire
interest of each Seller in all leases listed in Schedule 1.2(d) pursuant to which any Seller, as lessee, leases any personal property, and all leases of personal property executed by any Seller on or after the Execution Date which Purchaser
hereafter agrees in writing to accept (collectively, the “Leases”); 
  
 (e) subject to Section 9.3, the entire interest of each Seller in and to all contracts and agreements listed in Schedule 1.2(e) and all contracts and agreements executed by any Seller on or after the
Execution Date which Purchaser hereafter agrees in writing to accept 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 6 

 
(the “Contracts”); provided, however, the term “Contracts” as used in this Agreement shall exclude all other contracts and
agreements of any Seller (the “Excluded Contracts”), including contracts listed in Schedule 1.3(b); 
  
 (f) all accounts, notes, interest and other receivables of any Seller, billed and unbilled, recorded and unrecorded, and all claims,
rights, interests and proceeds related thereto, including all accounts and other receivables arising from the rendering of services or the provision of medicine, drugs or supplies to patients at any Facility, and including all accounts or
receivables arising or payable under any Government Program (the “Accounts Receivable”); 
  
 (g) all advance payments, prepayments, prepaid expenses, deposits and the like of any Seller which exist as of the Closing Date (the
“Prepaids”); 
  
 (h) all inventories of
supplies, drugs, food, janitorial and office supplies, and other disposables and consumables of any Seller (the “Inventory”); 
  
 (i) all documents, records, policy and procedure manuals, compliance programs, staff bylaws, operating manuals, files and computer
software owned or used by any Seller, including all patient records, medical records, employee records, financial records, equipment records, construction plans and specifications, and medical and administrative libraries; 
  
 (j) to the extent assignable, all rights in all warranties
of any builder, manufacturer or other Person in favor of any Seller; 
  
 (k) all goodwill and other intangible assets used or useful in connection with the business of any Seller or Facility; 
  
 (l) subject to the provisions of Section 1.13, all insurance proceeds arising in connection with property damage to or destruction of
any assets of any Seller occurring after the Execution Date and prior to the Effective Time, to the extent not expended on the repair, restoration or replacement of such assets that are transferred to Purchaser at the Closing hereunder; 

 
 (m) all of Sellers’ rights in (i) all names,
symbols, telephone numbers (and related listings and advertisements), facsimile numbers, domain names, trademarks, trade names, service marks and copyrights used with respect to the operation of any Facility, (ii) the items listed in
Schedule 1.2(m), (iii) all variants of any items referred to in the preceding clauses (i) or (ii), (iv) the internet websites www.focushealthcare.com and www.focushighpoint.com maintained by any Seller and
all content and information included thereon, and (v) all rights to the use of, and all common law trademark and other rights and all goodwill associated with, any item referred to in the preceding clauses (i), (ii), (iii) or (iv);

  
 (n) to the extent transferable, all rights of
any Seller with respect to any Medicare, Medicaid and other third-party provider or supplier numbers; and 
  
 (o) all other assets of any Seller; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 7 

 
provided, however, that notwithstanding anything to the contrary in this Agreement, (i) the Assets shall not include the Excluded Assets or, in
the case of DIA and Focus DE, the DIA Excluded Assets and the Focus DE Excluded Assets (each as defined in the Agreement and Plan of Merger), respectively, and (ii) for purposes of this Section 1.2, despite that DIA and Focus DE are each
listed as a Seller and their respective assets are listed as Assets herein, not any of the Assets of DIA or any of the Assets of Focus DE will be conveyed to Purchaser pursuant to this Agreement (other than any such Assets conveyed pursuant to the
Bills of Sale executed at the Closing relating to Facilities other than the DE Facility) but shall be acquired by Purchaser pursuant to the terms of the Agreement and Plan of Merger. 
  
 1.3 Excluded Assets. Notwithstanding anything to the contrary in Section 1.2, the following assets
(collectively, the “Excluded Assets”) are not part of the sale and purchase contemplated hereunder, are excluded from the Assets and shall remain the property of Sellers after the Closing: 
  
 (a) all cash and cash equivalents of any Seller; 

 
 (b) the Excluded Contracts other than the Leases,
including those Excluded Contracts listed in Schedule 1.3(b); 
  
 (c) [Reserved]; 
  
 (d) all documents, records, correspondence, work papers and other documents relating to the Seller Cost Reports or Agency Settlements; 
  
 (e) all records of any Seller relating to the Excluded Assets or the Excluded Liabilities to the extent that Purchaser does not need the
same in connection with the ongoing activities of the Facilities, the Assets, or the Assumed Liabilities, as well as all records which by law any Seller is required to maintain in its possession; 
  
 (f) any reserves or prepaid expenses to the extent related
to the Excluded Assets or the Excluded Liabilities; 
  
 (g) all limited liability company minute books of any Seller; 
  
 (h) all limited liability company membership interests or other equity interests in any Seller; 
  
 (i) all claims, rights, causes of action and chooses in action relating to the Excluded Assets or the Excluded Liabilities; 
  
 (j) all rights of any Seller under or pursuant to this
Agreement; 
  
 (k) all assets located at or used
exclusively in connection with the behavioral health facilities subject to the Right of First Refusal Agreements or located at the Sellers’ corporate headquarters in Chattanooga, Tennessee, except for any computer servers or software servicing
any of the Facilities; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 8 

 (l) all retrospective adjustment payments received from third-party payors, including
Medicare and Medicaid, for services rendered to patients of the Facilities at or prior to the Effective Time, except to the extent included as a Current Asset in the Closing Date Net Assets Calculation; and 
  
 (m) all other assets specifically listed in
Schedule 1.3(m); 
  
 provided, however, that for purposes of
this Section 1.3, the term “Seller” or “Sellers” shall exclude DIA and Focus DE. 
  
 1.4 Assumed Liabilities. Subject to the terms and conditions of this Agreement, including Section 9.3, at the Closing, but effective as of the
Effective Time, Purchaser shall assume and agree to discharge, pay or perform only the following liabilities and obligations of Sellers (collectively, the “Assumed Liabilities”): 
  
 (a) liabilities and obligations of any Seller under the
Contracts, but only to the extent such liabilities and obligations either (i) arise after the Effective Time, or (ii) are specifically included as Current Liabilities in the Closing Date Net Assets Calculation; provided, however,
that the Assumed Liabilities do not include any liability or obligation arising out of or relating to any breach or default by any Seller that occurred at or prior to the Effective Time; 
  
 (b) liabilities and obligations of any Seller under the Leases, but only to the extent such liabilities and
obligations either (i) arise after the Effective Time, or (ii) are specifically included as Current Liabilities in the Closing Date Net Assets Calculation; provided, however, that the Assumed Liabilities do not include any liability
or obligation arising out of or relating to any breach or default by any Seller that occurred at or prior to the Effective Time; 
  
 (c) Sellers’ accounts payable and other current liabilities, but only to the extent specifically included as Current Liabilities in
the Closing Date Net Assets Calculation; 
  
 (d)
Sellers’ obligations and liabilities as of the Closing Date in respect of accrued, unpaid vacation and sick pay of all Facility Workers who are leased to Purchaser by APE as of the Closing Date, and related taxes, but only to the extent
specifically included as Current Liabilities in the Closing Date Net Assets Calculation; 
  
 (e) [Reserved]; and 
  
 (f) any other obligations and liabilities of Sellers identified in Schedule 1.4(f), but only to the extent specifically
included as Current Liabilities in the Closing Date Net Assets Calculation; 
  
 provided, however, that notwithstanding anything to the contrary in this Agreement, (i) for purposes of this Section 1.4, the term “Seller” or “Sellers” shall exclude DIA and Focus DE, and (ii) the
term “Assumed Liabilities” shall not include any liabilities or obligations of DIA or Focus DE, or any liabilities or obligations of any Seller relating to the HUD Loan. 
  
 1.5 Excluded Liabilities. Notwithstanding anything to the contrary in Section 1.4, Purchaser shall not assume or
become responsible for any liabilities or obligations of any Seller other than the Assumed Liabilities (the “Excluded Liabilities”), and the Excluded Liabilities 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 9 

 
shall be retained, paid, performed and discharged solely by Sellers. The Excluded Liabilities shall include: 
  
 (a) all liabilities and obligations of any Seller which are
not specifically included in the Assumed Liabilities; 
  
 (b) all liabilities and obligations of any Seller arising out of or relating to any act, omission, event or occurrence connected with the use, ownership or operation of the Facilities or any of the Assets prior to the Effective Time, which
are not specifically included in the Assumed Liabilities; 
  
 (c) all liabilities and obligations of any Seller to any employee of any Seller or any Facility Worker, including salary, wages, benefits, accrued unpaid vacation and sick pay and related Taxes, which are not
specifically included in the Assumed Liabilities; 
  
 (d) all liabilities and obligations of any Seller arising under or in connection with or relating to payroll, vacation, sick leave, workers’ compensation, unemployment benefits, pension benefits, employee stock option or profit-sharing
plans, health care plans or benefits, or any other employee plans or benefits or Plans of any kind for any Seller’s employees or former employees, or any Facility Workers or former Facility Workers, including all liabilities and obligations of
any Seller for matching contributions for eligible beneficiaries’ 401(k) plans, Section 125 plans and other Plans, and all administrative costs associated with any such Plans; in each case which are not specifically included in the Assumed
Liabilities; 
  
 (e) all liabilities and
obligations of any Seller under any employment, severance, retention or termination agreement with any present or former employee of any Owner or any Related Person of any Owner or with any present or former Facility Worker; 
  
 (f) all liabilities and obligations of any Seller arising
out of or relating to any employee or Facility Worker grievance to the extent arising out of any facts or circumstances occurring at or prior to the Effective Time, whether or not the affected employees or Facility Workers are hired by or leased to
Purchaser; 
  
 (g) all liabilities and
obligations of any Seller to any Owner or to any Related Person of any Owner, except for those arising after the Effective Time under the Cooper City Sublease, and accrued insurance premiums owed to Sunland to the extent specifically included as
Current Liabilities in the Closing Date Net Assets Calculation; 
  
 (h) all liabilities and obligations of any Seller relating to Seller Cost Reports with respect to periods ending at or prior to the Effective Time; 
  
 (i) all liabilities and obligations of any Seller with respect to refund, recoupment, set-off and other
liabilities arising out of billings to third-party payors, including Medicare and Medicaid, for services rendered to patients of the Facilities at or prior to the Effective Time; 
  
 (j) all liabilities and obligations of any Seller for violations of any Legal Requirement, including the
Anti-Kickback Law, the False Claims Act, the Stark Law and other Legal Requirements pertaining to Medicare, Medicaid or health care fraud or abuse; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 10

 (k) all liabilities and obligations of any Seller under any Contract or Lease assumed by
Purchaser pursuant to Section 1.4, which liability or obligation arises after the Effective Time but arises out of or relates to any breach or default by any Seller that occurred at or prior to the Effective Time; 
  
 (l) all liabilities and obligations of any Seller under any
of the Excluded Contracts; 
  
 (m) except as
provided in Section 1.4(d) (relating to taxes on accrued, unpaid vacation and sick pay), Section 1.11 (relating to proration of property taxes), and the third sentence of Section 12.9 (relating to transfer Taxes), all liabilities and
obligations of any Seller for Taxes, including (i) any Taxes arising as a result of the operation of any Facility or other operations of any Seller, or the ownership of any Assets, prior to the Effective Time, (ii) any Taxes with respect
to Sellers that arise or will arise as a result of the sale or transfer of any of the Assets pursuant to this Agreement, and (iii) any liability or obligation of any Seller to pay the Taxes of any other Person under any tax sharing, tax
allocation or tax indemnity agreement or otherwise; 
  
 (n) all liabilities and obligations of any Seller arising out of or resulting from any Seller’s compliance or noncompliance with any Legal Requirement or order, injunction, judgment, decree, ruling, assessment or arbitration award of
any government, governmental agency, governmental authority, governmental body, court or arbitrator; 
  
 (o) all liabilities and obligations of any Seller in connection with claims of professional malpractice; 
  
 (p) all liabilities and obligations of any Seller arising
out of any Proceeding pending as of the Effective Time; 
  
 (q) all liabilities and obligations of any Seller arising out of any Proceeding commenced after the Effective Time to the extent arising out of or relating to any occurrence or event happening at or prior to the
Effective Time; 
  
 (r) all liabilities and
obligations of any Seller for commissions or fees owed to any finder or broker in connection with the transactions contemplated hereby; and 
  
 (s) all liabilities and obligations of any Seller under this Agreement or any other document executed in connection with the transactions
contemplated hereby; 
  
 provided,
however, for purposes of this Section 1.5, the term “Seller” or “Sellers” shall exclude DIA and Focus DE. 
  
 1.6 Actions Taken on Execution Date. Concurrently with the execution and delivery of the Original Purchase Agreement: 
  
 (a) The Seller Representative (as the agent of Sellers),
Purchaser and The Bank/First Citizens Bank, as Escrow Agent (the “Escrow Agent” ), executed and delivered an Execution Date Escrow Agreement (Focus) (the “Execution Date Escrow Agreement”), pursuant 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 11

 
to which the Execution Date Escrow Deposit was deposited with the Escrow Agent and the same and all earnings thereon are now held, invested and disbursed by
the Escrow Agent; 
  
 (b) Purchaser deposited One
Million Six Hundred Seventy-Three Thousand Five Hundred Eighty-Six Dollars ($1,673,586) in escrow with the Escrow Agent pursuant to the Execution Date Escrow Agreement (the “Execution Date Escrow Deposit“); 
  
 (c) Byron DeFoor, Chuck Jabaley and Nelson Bowers each
executed and delivered to Purchaser a Non-Competition Agreement which shall restrict certain actions of each such individual (collectively, the “Noncompetition Agreements”); and 
  
 (d) Purchaser entered into a Right of First Refusal
Agreement with each of (i) Focus Healthcare of Tennessee, LLC and Veranda Property Investment, LLC, with respect to the behavioral health facility known as Focus Healthcare of Tennessee located in Chattanooga, Tennessee, and (ii) Knollwood
Psychiatric and Chemical Dependency Center, Inc. and Knollwood Investment Associates, LLC, with respect to the behavioral health facility known as Knollwood Hospital located in Riverside, California, which agreements granted a right of first refusal
to Purchaser to acquire such facilities and their related assets as further described therein for a period of eighteen (18) months, commencing as of the Effective Time (collectively, the “Right of First Refusal Agreements”).

  
 1.7 Purchase Price. The total consideration payable for
the Assets under this Agreement and payable as consideration for the Merger and the purchase of the Focus DE Assets under the Agreement and Plan of Merger (the “Aggregate Purchase Price”) shall be (a) Sixty-Three Million Eight Hundred
Thirty Thousand Five Hundred Sixty-Six Dollars ($63,830,566) less the aggregate amount of the outstanding principal and unpaid accrued interest on the HUD Loan as of the date of the closing under the Agreement and Plan of Merger (the “DE
Closing”), but subject to increase or decrease pursuant to Section 1.12 hereof and Section 3.6 of the Agreement and Plan of Merger, and (b) the assumption of the Assumed Liabilities pursuant to Section 1.4 hereof and the
assumption of the Focus DE Assumed Liabilities pursuant to Section 3.3 of the Agreement and Plan of Merger. In accordance with Section 1.10 hereof and Section 4.3 of the Agreement and Plan of Merger, on the terms and subject to the
conditions of this Agreement, at the Closing or the DE Closing, as applicable, subject to the adjustments contemplated by the preceding sentence, the Aggregate Purchase Price shall be delivered by Purchaser to Sellers and, in the case of the Merger
Purchase Price (as defined in the Agreement and Plan of Merger), to the Members named in the Agreement and Plan of Merger and, in the case of the Focus DE Asset Purchase Price (as defined in the Agreement and Plan of Merger), to Focus DE, as
follows: 
  
 (i) Forty-Nine Million Five Hundred
Eighty-Three Thousand Three Hundred Ninety-Four Dollars ($49,583,394) (the “Closing Purchase Price Payment”) by wire transfer to an account designated by the Seller Representative; provided, however, that One Hundred Thousand Four
Hundred Fifteen Dollars ($100,415) of the aggregate deposit of One Hundred Fifty Thousand Dollars ($150,000) made by Purchaser pursuant to the Letter of Intent prior to the Execution Date (the “LOI Deposit”) shall be credited against and
constitute payment of a like amount of the Closing Purchase Price Payment; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 12

 (ii) Three Million Six Hundred Thousand Dollars ($3,600,000) for the Focus DE Assets, but
(a) at the DE Closing, subject to increase or decrease based upon the change in the amount of cash of Focus DE immediately prior to the DE Closing as compared to immediately prior to the Closing hereunder as described in Section 3.6 of the
Agreement and Plan of Merger, and (b) at the DE Closing, subject to possible decrease pursuant to Section 4.10 hereof, and the assumption of the Focus DE Assumed Liabilities all as more specifically provided in the Agreement and Plan of
Merger, shall be paid as the Focus DE Purchase Price pursuant to the Agreement and Plan of Merger; provided, however, that Two Million Dollars ($2,000,000) of such amount shall be paid to Focus DE at the Closing under this Agreement (the
“Additional Closing Purchase Price Payment“) to be credited against and constitute payment of a like amount of the Focus DE Asset Purchase Price in the event the DE Closing occurs under the terms of the Agreement and Plan of Merger, and to
be repaid to Purchaser in the event the Agreement and Plan of Merger is terminated prior to consummation of the DE Closing. 
  
 (iii) Seven Million Three Hundred Thousand Dollars ($7,300,000) for the acquisition of DIA, less the aggregate amount of the
outstanding principal and unpaid accrued interest as of the date of the DE Closing on the HUD Loan, plus the aggregate amount of funds of DIA as of the date of the DE Closing escrowed with the HUD Lender for taxes, insurance, mortgage
insurance premiums, replacements or other items which require funds to be escrowed pursuant to the HUD Loan (the “HUD Escrow Funds“) but only to the extent such HUD Escrow Funds are not included in the Net Assets under Section 1.12 of
this Agreement, shall be paid as the Merger Purchase Price on the date of the DE Closing pursuant to the Agreement and Plan of Merger; 
  
 (iv) Three Million Three Hundred Forty-Seven Thousand One Hundred Seventy-Two Dollars ($3,347,172) (the “Closing Date Escrow
Deposit”) by wire transfer to the Escrow Agent for deposit in escrow pursuant to a Closing Date Escrow Agreement (Focus) substantially in the form attached hereto as Exhibit A to be executed and delivered at the Closing by Purchaser, the
Seller Representative (as the agent of Sellers) and the Escrow Agent (the “Closing Date Escrow Agreement”); provided, however, that an amount equal to the sum of the Execution Date Escrow Deposit made pursuant to
Section 1.6(b), the Extension Escrow Deposit made as described in Section 8.1(f), and all earnings thereon to the Closing Date shall be credited against and constitute payment of a like amount of the Closing Date Escrow Deposit; and

  
 (v) the Assumed Liabilities shall be assumed
by the execution and delivery of the Bills of Sale. 
  
 1.8
Closing Date. The consummation of the transactions contemplated by this Agreement (the “Closing”) shall take place (a) at 10:00 a.m. Central time at the offices of Strasburger & Price, L.L.P., on or before five
(5) business days after the day on which the last of the conditions set forth in Articles 6 and 7 is fulfilled or waived (other than any conditions that are not capable of being satisfied until the Closing, but subject to the satisfaction or
waiver of those conditions), or (b) at such other date, time and place as Purchaser and the Seller Representative shall mutually agree upon in writing (the date on which the Closing actually occurs, the “Closing Date”). The Closing,
the transfer of the Assets and the assumption of the Assumed Liabilities shall be deemed to have occurred and to be effective as of 12:01 a.m. Eastern time, on the Closing Date (the “Effective Time”). 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 13

 1.9 Items to be Delivered by Sellers at Closing. Subject to Section 12.3(b), at the Closing,
Sellers shall deliver to Purchaser the following items, duly executed by Sellers or the Seller Representative where appropriate and in the form provided for below or otherwise reasonably satisfactory to Purchaser and counsel for Purchaser:

  
 (a) the Closing Date Escrow Agreement
executed by the Seller Representative and the Escrow Agent; 
  
 (b) multiple forms of General Assignment, Bill of Sale and Assumption of Liabilities (Focus) as contemplated by the forms attached hereto as Exhibits B-1 and B-2 for all Sellers (the “Bills of
Sale”); 
  
 (c) Limited Warranty Deeds for
all Sellers excluding DIA and Focus DE with respect to the Real Property in forms reasonably satisfactory to Purchaser; 
  
 (d) original certificates of existence and good standing, or comparable status, of each Seller, issued by the state of each such
Seller’s organization and each state in which such Seller operates a Facility or owns any of the Real Property, as applicable, dated no earlier than a date which is fourteen (14) calendar days prior to the Closing Date; 
  
 (e) an opinion of counsel for Sellers substantially as
described in Exhibit C attached hereto; 
  
 (f) a certificate of Sellers, executed by a duly authorized officer of each Seller, certifying to Purchaser that (i) all the representations and warranties of Sellers contained herein are true as of the Closing Date with the same
effect as though made at such time, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true on and as of such earlier date, and (ii) Sellers have
performed or complied with the covenants and agreements required of Sellers set forth in this Agreement to be performed or complied with by the Closing Date; 
  

(g) a certificate of Sellers, executed by a duly authorized officer of each Seller, certifying to Purchaser (i) the incumbency of
the officers of the respective Sellers on the Restatement Execution Date and on the Closing Date and bearing the authentic signatures of all such officers who shall execute this Agreement or any additional documents contemplated by this Agreement,
and (ii) the due adoption and text of the resolutions of the members or managers, as applicable, of the respective Sellers authorizing (A) the transfer of the Assets and Assumed Liabilities to Purchaser, and (B) the execution,
delivery and performance of this Agreement and all ancillary documents and instruments by Sellers, and (iii) that such resolutions have not been amended or rescinded and remain in full force and effect on the Closing Date; 
  
 (h) complete releases (or bank release letters in a form
reasonably acceptable to Purchaser) of any and all pledges, liens, mortgages, security interests, restrictions, easements, conditions, covenants, charges, licenses, leases and other encumbrances of any nature whatsoever (collectively,
“Liens”) with respect to the Assets (excluding the Assets of DIA but including the Assets of Focus DE), including the real property matters described in Section 7.8, other than Permitted Encumbrances; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 14

 (i) payment of the premiums, costs and charges relating to the Title Policies in the
amount required to be paid by Sellers hereunder and payment of all other Taxes, fees and expenses required to be paid by Sellers pursuant to Sections 4.11 and 12.9, to the extent determinable at Closing; 
  
 (j) multiple forms of Limited Power of Attorney for use of
Pharmacy Licenses, DEA and Other Registration Numbers, and DEA Order Forms (Focus) for each Facility, substantially in the form of Exhibit D attached hereto (the “Powers of Attorney”); 
  
 (k) all consents to the assignment of the Contracts and the
Leases from third parties required to assign the Contracts and Leases to Purchaser without violation or breach of the Contract or Lease in question (the “Contract and Lease Consents”), except for those Contracts and Leases as to which the
provisions of clauses (a) or (b) of the first sentence of Section 7.5, and the provisions of the second sentence of Section 7.5, if applicable to the Contract or Lease in question, have been satisfied; 
  
 (l) [Reserved]; 
  
 (m) Assignments and Assumption of Real Estate Leases in
forms reasonably satisfactory to Purchaser and the Seller Representative (the “Assignments of Leases“), pursuant to which: 
  
 (i) Highpoint LLC will assign without recourse its interest, as landlord, in that certain Lease Agreement dated as of April 16, 1999,
by and between Highpoint LLC and Focus FL (the “Cooper City Prime Lease“), to Purchaser or its Designee; 
  
 (ii) Focus FL will assign without recourse its interest, as tenant, in the Cooper City Prime Lease to Purchaser or its Designee; and

  
 (iii) Focus FL will assign without recourse
its interest, as sublandlord, in that certain Sub-Lease dated as of December 6, 2002, by and between Focus FL and Lighthouse Care Centers (the “Cooper City Sublease“) to Purchaser or its Designee; 
  
 (n) evidence of termination, together with mutual releases
by the parties thereto, of all leases of the Real Property, other than the Cooper City Prime Lease, the Cooper City Sublease and that certain Lease Agreement dated as of January 19, 1999, by and between DIA and Focus DE (as amended, the
“DE Lease“); 
  
 (o) possession of the
tangible Assets at the respective Facilities; and 
  
 (p) such other instruments, certificates, consents, affidavits, no-change survey affidavits, or other documents which are reasonably necessary to carry out the transactions contemplated by this Agreement and to comply with the terms hereof
or which Purchaser or a title company issuing one of the Title Policies may otherwise reasonably request. 
  
 1.10 Items to be Delivered by Purchaser at Closing. Subject to Section 12.3(b), at the Closing, Purchaser shall execute and deliver or cause
to be delivered to Sellers the following, duly executed by Purchaser where appropriate: 
  
 (a) the Closing Date Escrow Agreement executed by Purchaser; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 15

 (b) the Closing Purchase Price Payment in accordance with Section 1.7(i) and the
Additional Closing Purchase Price Payment in accordance with Section 1.7(ii) by wire transfer to the account specified by the Seller Representative, which account the Seller Representative shall specify to Purchaser not less than three
(3) business days prior to the Closing Date in writing; 
  
 (c) the Closing Date Escrow Deposit in accordance with Section 1.7(iv) by wire transfer to the Escrow Agent for deposit in escrow pursuant to the Closing Date Escrow Agreement; 
  
 (d) the Bills of Sale; 
  
 (e) original certificate of existence and good standing, or
comparable status, of Purchaser, issued by the Delaware Secretary of State dated no earlier than a date which is fourteen (14) calendar days prior to the Closing Date; 
  
 (f) an opinion of counsel for Purchaser substantially as described in Exhibit E attached hereto;

  
 (g) a certificate of Purchaser, executed by
the President or any Vice President of Purchaser, certifying to Sellers that (i) all the representations and warranties of Purchaser contained herein are true as of the Closing Date with the same effect as though made at such time, except to
the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true on and as of such earlier date, and (ii) Purchaser has performed or complied with the covenants and
agreements required of Purchaser set forth in this Agreement required to be performed or complied with by the Closing Date; 
  
 (h) a certificate of Purchaser, executed by the corporate Secretary of Purchaser, certifying to Sellers (i) the incumbency of the
officers of Purchaser on the Restatement Execution Date and on the Closing Date and bearing the authentic signatures of all such officers, who shall execute this Agreement or any additional documents contemplated by this Agreement, and (ii) the
due adoption and text of the resolutions of the Board of Directors of Purchaser authorizing the execution, delivery and performance of this Agreement and all ancillary documents and instruments by Purchaser, and that such resolutions have not been
amended or rescinded and remain in full force and effect on the Closing Date; 
  
 (i) the Powers of Attorney; 
  
 (j) the Assignments of Leases; and 
  
 (k) such other instruments, certificates, consents or other documents which are reasonably necessary to carry out the transactions contemplated by this Agreement and to comply with the terms hereof or which may be
reasonably requested by the Seller Representative. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 16

 1.11 Prorations and Utilities. To the extent not included in the calculation of the Net Assets
Adjustment Amount or otherwise prorated pursuant to this Agreement, at the Closings, Purchaser and Sellers shall prorate (as of the respective Effective Times), to the extent applicable to the Assets, real estate and personal property lease
payments, real estate and personal property Taxes, assessments and other similar charges against real estate, and utility charges. If accurate allocations as to such matters cannot be made at the Closings because current bills are not obtainable,
the Parties shall allocate such income or expense at such closing on the best available information, subject to adjustment after such closing upon receipt of the final bill or other evidence of the applicable item of income or expense. There shall
be no proration of rents or other items between Purchaser and Sellers under any of the Real Property Leases, and Purchaser shall not be responsible for the security deposit, if any, deposited pursuant to any such leases nor shall any such security
deposit be transferred to Purchaser. 
  
 1.12 Net Assets
Adjustment. 
  
 (a) As used herein,
(i) the term “Net Assets” means the amount determined by subtracting the “Current Liabilities” of Sellers from the “Current Assets” of Sellers and (ii) the term “Base Net Assets” means Two Million
Three Hundred Forty-Six Thousand Four Hundred Thirty Dollars ($2,346,430). Sellers represent and warrant that none of the HUD Escrow Funds are included in the Base Net Assets. 
  
 (b) At least ten (10) days prior to the Closing, the Seller Representative shall deliver to Purchaser a
written determination of the Net Assets as of 11:59 p.m. Eastern Time on December 31, 2005 (“Estimated Net Assets”), which written determination shall contain reasonable detail and supporting documents showing the computation of such
determination and the components of Current Assets and Current Liabilities included therein and which shall not include any of the HUD Escrow Funds. The principles, specifications and methodologies for determining Estimated Net Assets, including the
components of the Current Assets and the components of the Current Liabilities to be included therein, shall be as specified in Schedule 1.12. The “Net Assets Adjustment Amount” shall equal the difference between Estimated Net
Assets and Base Net Assets. If Estimated Net Assets exceeds Base Net Assets, the Net Assets Adjustment Amount shall be added to the Closing Purchase Price Payment. If Estimated Net Assets is less than Base Net Assets, the Closing Purchase Price
Payment shall be reduced by the amount of the Net Assets Adjustment Amount. 
  
 (c) Within one hundred eighty (180) days after the Effective Time, Purchaser shall deliver to the Seller Representative a written determination of the Net Assets as of 11:59 p.m. Eastern Time on the day before
the Closing Date (“Closing Date Net Assets”), which written determination shall contain reasonable detail and supporting documents showing the computation of such determination and the components of Current Assets and Current Liabilities
included therein and which shall not include any of the HUD Escrow Funds. The principles, specifications and methodologies for determining Closing Date Net Assets, including the components of the Current Assets and the components of the Current
Liabilities to be included therein, shall be as specified in Schedule 1.12. Each Party shall have full access to the financial books and records of the Sellers or pertaining to the Facilities to confirm or audit Closing Date Net Assets
computations. If the Seller Representative disagrees with Purchaser’s determination of Closing Date Net Assets, the Seller Representative shall notify Purchaser in writing within twenty (20) days after Purchaser’s delivery of its
determination of Closing Date Net Assets and 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 17

 
state in reasonable detail the basis for such disagreement. Failure of the Seller Representative to deliver such a notice of disagreement within such twenty
(20) day period shall constitute Sellers’ acceptance of Purchaser’s determination of Closing Date Net Assets as delivered to the Seller Representative under this Section 1.12(c). If the Seller Representative and Purchaser fail to
agree within thirty (30) days after the Seller Representative’s delivery of notice of disagreement on the amount of Closing Date Net Assets, such disagreement shall be resolved in accordance with the procedures set forth in
Section 1.12(d), which shall be the sole and exclusive remedy for resolving disputes relative to the determination of the amount of Closing Date Net Assets under this Section 1.12. 
  
 (d) In the event that the Seller Representative and
Purchaser are not able to agree on the Closing Date Net Assets within thirty (30) days after the Seller Representative’s delivery of notice of disagreement pursuant to Section 1.12(c), the Seller Representative and Purchaser shall
each have the right to require that such disputed determination be submitted to Grant Thornton LLP, or if Grant Thornton LLP is not available for any reason or does not maintain its independent status, such other independent certified public
accounting firm as the Seller Representative and Purchaser may then promptly mutually agree upon in writing (the “Accounting Firm”) for computation or verification in accordance with the provisions of this Agreement. The Accounting Firm
shall review the matters in dispute and, acting as arbitrator, shall promptly decide the proper amounts of such disputed entries (which decision shall also include a final calculation of Closing Date Net Assets). The submission of the disputed
matter to the Accounting Firm shall be the exclusive remedy for resolving disputes relative to the determination of Closing Date Net Assets under this Section 1.12. If issues are submitted to the Accounting Firm for resolution, (i) each
Seller and Purchaser shall furnish or cause to be furnished to the Accounting Firm such work papers and other documents and information relating to the disputed issues as the Accounting Firm may request and are available to that Party or its agents,
and the Seller Representative and Purchaser shall be afforded the opportunity to present to the Accounting Firm any material relating to the disputed issues and to discuss the issues with the Accounting Firm; (ii) the determination by the
Accounting Firm, as set forth in a notice to be delivered to both the Seller Representative and Purchaser within sixty (60) days of the submission to the Accounting Firm, of the issues remaining in dispute, shall be final, binding and
conclusive on the Parties and shall be used in the calculation of Closing Date Net Assets; and (iii) one-half of the Accounting Firm’s fees and expenses shall be paid by Sellers (excluding DIA if the DE Closing occurs), and one-half of
such fees and expenses shall be paid by Purchaser. The final calculation of Closing Date Net Assets pursuant to this Section 1.12, as determined pursuant to this Section 1.12, is referred to herein as the “Closing Date Net Assets
Calculation.” 
  
 (e) The Aggregate Purchase
Price shall be increased or decreased based on the difference between Closing Date Net Assets and Estimated Net Assets (the “Final Net Assets Settlement Amount”) up to, but not exceeding, a total adjustment amount of Three Hundred
Thirty-Four Thousand Seven Hundred Fifteen Dollars ($334,715). Within ten (10) days after the date the final determination of Closing Date Net Assets is agreed to or settled upon by the Parties pursuant to this Section 1.12 (the
“Final Net Assets Settlement Date“), (i) if Closing Date Net Assets exceed Estimated Net Assets, the Final Net Assets Settlement Amount shall be paid in cash by Purchaser to an account specified by the Seller Representative by wire
transfer of immediately-available funds and as an increase to the Aggregate Purchase Price, or (ii) if Estimated Net Assets exceed Closing Date Net Assets, the Final Net Assets Settlement Amount 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 18

 
shall be paid in cash to Purchaser pursuant to the Closing Date Escrow Agreement as a decrease in the Aggregate Purchase Price; provided, however, that the
increase or decrease pursuant to this sentence shall not exceed Three Hundred Thirty-Four Thousand Seven Hundred Fifteen Dollars ($334,715). 
  
 (f) If the Closing occurs but the Agreement and Plan of Merger is terminated before consummation of the DE Closing, Purchaser and the
Seller Representative shall determine the net amount of the Final Net Assets Settlement Amount which relates to DIA and Focus DE, and such difference shall be paid in cash by wire transfer of immediately-available funds by the Party who received the
benefit of such difference to the other Party or shall be netted against the payment to be made in Section 1.12(e). 
  
 1.13 Risk of Loss. The risk of loss or damage to any of the Personal Property, the Real Property, the Facilities and all other assets and property
of Sellers, the transfer of which is contemplated by this Agreement or by the Agreement and Plan of Merger, shall remain with Sellers until the respective Effective Times of the transactions contemplated by such agreements. Sellers shall maintain in
effect through the applicable Effective Times, without material change, all insurance policies covering the Personal Property, the Real Property, the Facilities and all other assets and property of Sellers. 
  
 (a) With respect to the Real Property, if prior to the
respective closing date, all or any part of the Real Property is damaged or destroyed by fire or the elements or by any other cause where such damage or destruction is in the aggregate (the “Aggregate Damage”) less than ten percent
(10%) of the Aggregate Purchase Price and Sellers have duly maintained the insurance policies described above, the Parties’ duties and obligations under this Agreement or the Agreement and Plan of Merger shall not be affected and the
applicable closing shall proceed as scheduled; provided, however, at such closing, Sellers shall assign, transfer and set over to Purchaser all of Sellers’ right, title and interest in and to any insurance proceeds on account of such
damage or destruction and Sellers (excluding DIA if the DE Closing occurs) shall pay to Purchaser an amount of cash equal to the amount of any applicable deductibles under such insurance policies, and, if the sum of such insurance proceeds and
deductible amounts are insufficient to repair, restore and/or replace the damaged or destroyed Real Property, the Aggregate Purchase Price and the Closing Purchase Price Payment or any other applicable component thereof shall be reduced by an amount
equal to difference between the cost to repair, restore and/or replace and the sum of such insurance proceeds and deductible amounts. If prior to the applicable closing, all or any part of the Real Property is damaged or destroyed by fire or the
elements or by any other cause where the Aggregate Damage equals or exceeds ten percent (10%) of the Aggregate Purchase Price, Purchaser may elect to (i) purchase or acquire such Real Property, in which case the applicable closing shall
proceed as scheduled; provided, however, at such closing, Sellers shall assign, transfer and set over to Purchaser all of Sellers’ right, title and interest in and to any insurance proceeds on account of such damage or destruction and
Sellers (excluding DIA if the DE Closing occurs) shall pay to Purchaser an amount of cash equal to the amount of any applicable deductibles under such insurance policies, and, if the sum of such insurance proceeds and deductible amounts are
insufficient to repair, restore and/or replace the damaged or destroyed Real Property, the Aggregate Purchase Price and the Closing Purchase Price Payment or any other applicable component thereof shall be reduced by an amount equal to the
difference between the cost to repair, restore and/or replace and the sum of such insurance proceeds and deductible amounts, (ii) not purchase such Real Property, and, in such event, an 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 19

 
appropriate reduction of the Aggregate Purchase Price, utilizing a methodology to be agreed upon, shall be made by Purchaser and the Seller Representative,
or (iii) elect to terminate this Agreement by written notice to the Seller Representative. If Purchaser and the Seller Representative are unable to agree upon the amount of the Aggregate Damage and any applicable Aggregate Purchase Price
reduction within ten (10) days after Purchaser notifies the Seller Representative of an election made by Purchaser pursuant to subsection (ii) of the preceding sentence, the amount of the Aggregate Damage and any applicable Aggregate
Purchase Price reduction shall be determined by a consulting firm mutually selected by the Seller Representative and Purchaser (the “Independent Consultant”) pursuant to Section 1.13(d). 
  
 (b) With respect to any Assets other than Real Property
which are damaged or destroyed by fire or the elements or by any other cause prior to the applicable closing, Sellers shall assign, transfer and set over to Purchaser all of Sellers’ right, title and interest to any insurance proceeds on
account of such damage or destruction and Sellers (excluding DIA if the DE Closing occurs) shall pay to Purchaser an amount of cash equal to the amount of any applicable deductibles under such insurance policies, and, if such insurance proceeds and
deductible amounts are insufficient to repair, restore and/or replace the damaged or destroyed Assets, the Aggregate Purchase Price and the Closing Purchase Price Payment or other applicable component thereof shall be reduced by an amount equal to
the difference between the cost to repair, restore and/or replace and the sum of such insurance proceeds and deductible amounts. 
  
 (c) If prior to the applicable closing, all or any part of a parcel of the Real Property is made subject to an eminent domain or
condemnation proceeding which would in Purchaser’s reasonable judgment materially adversely impair access to such Real Property or be materially adverse to the operations of the Facility located on such Real Property, Purchaser may elect to
(i) purchase or acquire such affected Real Property, and such closing shall proceed as scheduled; provided, however, at such closing, Sellers shall assign, transfer and set over to Purchaser all of Sellers’ right, title and interest
in and to any award in such eminent domain or condemnation proceeding, (ii) not purchase the affected Real Property and the Facility and related Assets located thereon, and, in such event, an appropriate reduction of the Aggregate Purchase
Price, utilizing a methodology to be agreed upon, shall be made by Purchaser and the Seller Representative, or (iii) terminate this Agreement by written notice to the Seller Representative. If Purchaser and the Seller Representative are unable
to agree upon the amount of the Aggregate Purchase Price reduction within ten (10) days after Purchaser notifies the Seller Representative of an election made by Purchaser pursuant to subsection (ii) of the preceding sentence, the amount
of the Aggregate Purchase Price reduction shall be resolved by the Independent Consultant pursuant to Section 1.13(d). 
  
 (d) If pursuant to either Section 1.13(a) or 1.13(c), the amount of the Aggregate Damage (and any applicable Aggregate Purchase Price
reduction) is to be determined by the Independent Consultant, within the ten (10) day period referred to in Section 1.13(a) or 1.13(c), as applicable (the “Submittal Date”), Purchaser and the Seller Representative shall each
submit to the other and to the Independent Consultant its proposed Aggregate Damage if applicable (and any applicable Aggregate Purchase Price reduction) as a result of the event(s) contemplated by either Section 1.13(a) or 1.13(c), along with
a detailed description of the basis for such amount and any applicable reduction. Within ten (10) calendar days after the Submittal Date, the Independent Consultant, acting as an expert and not as an arbitrator, shall determine the 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 20

 
Aggregate Damage if applicable (and any applicable Aggregate Purchase Price reduction), taking into account any submissions by the Seller Representative or
Purchaser made by the Submittal Date. The decision of the Independent Consultant shall be conclusive and binding as between Purchaser and Sellers. One-half of the costs of such review shall be paid by Sellers (excluding DIA if the DE Closing
occurs), and one-half of the costs of such review shall be paid by Purchaser. Upon any such determination of the adjustment to the Aggregate Purchase Price in accordance with this Section 1.13(d), the Parties shall, subject to the terms and
conditions of this Agreement, consummate the transactions contemplated by this Agreement or the Agreement and Plan of Merger, as applicable, at a mutually agreeable time and place, in accordance with the provisions of this Agreement or the Agreement
and Plan of Merger, as applicable, which shall be no later than the fifteenth (15th) calendar day following the Submittal Date unless Purchaser and the Seller Representative mutually agree upon a later date. 
  
 1.14 Seller Representative. 
  
 (a) Each Seller hereby ratifies and affirms the appointment
of Seller Representative, LLC, a Tennessee limited liability company, as its representative and true and lawful attorney in fact (the “Seller Representative“), with full power and authority in each of their names and on behalf of each of
them: 
  
 (i) to act on behalf of each of them in
the absolute discretion of the Seller Representative, but only with respect to the following provisions of this Agreement and corresponding provisions of the Agreement and Plan of Merger, with the power to: (A) designate the account for payment
of the Aggregate Purchase Price pursuant to Section 1.7 or 1.10 or corresponding provisions of the Agreement and Plan of Merger, or other payments to be made to any Seller or any Member pursuant to this Agreement, the Agreement and Plan of
Merger or either Escrow Agreement, (B) act pursuant to Sections 1.11, 1.12 and 1.13 with respect to prorations and Aggregate Purchase Price adjustments (including the Net Assets Adjustment Amount and the Final Net Assets Settlement Amount) and
related matters, including executing any amendment hereto or to the Agreement and Plan of Merger to reflect any Aggregate Purchase Price adjustment or reduction agreed to pursuant to Section 1.12 or 1.13, or corresponding provisions of the
Agreement and Plan of Merger, (C) execute, deliver and act under each Escrow Agreement, (D) grant any waiver or consent under Article 6, Section 8.1 or Section 12.14 of this Agreement or under the equivalent articles or sections
of the Agreement and Plan of Merger, make any determination under Article 6 or Section 8.1 of this Agreement or under the equivalent articles of the Agreement and Plan of Merger (including a determination that the conditions in Article 6 hereof
have been satisfied), or terminate this Agreement pursuant to Section 8.1 or terminate the Agreement and Plan of Merger pursuant to Article 11 thereof, (E) act in connection with any matter as to which any Sellers, jointly and severally,
have or are alleged to have obligations, or as to which any Seller is or claims to be an Indemnified Person, under Article 10 or pursuant to Article 13 of the Agreement and Plan of Merger, (F) consent to the assignment of rights under this
Agreement or the Agreement and Plan of Merger in accordance with Section 12.3(a) hereof, (G) give and receive notices pursuant to Section 12.6 hereof or Section 15.2 of the Agreement and Plan of Merger, and (H) receive and
accept such notices or correspondence, execute such other documents, and take such other actions as are provided herein or in the Agreement and Plan of Merger to be received, accepted, executed or taken by the Seller Representative; and 

 

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 21

 (ii) in general, to do all things and to perform all acts, including executing and
delivering all agreements, certificates, receipts, instructions and other instruments contemplated by or deemed advisable to effectuate the provisions of this Section 1.14. 
  
 (b) The foregoing appointment and grant of power and authority is coupled with an interest and is in
consideration of the mutual covenants made herein and is irrevocable and shall not be terminated by any act of any Seller or by operation of law or by the occurrence of any other event. 
  
 (c) Each Seller consents to the taking by the Seller Representative of any and all actions and the making by
the Seller Representative of any decisions required or permitted to be taken or made by the Seller Representative pursuant to this Section 1.14, and agrees that each such action or decision shall bind such Seller. Each Seller hereby authorizes,
approves and ratifies the execution of the Execution Date Escrow Agreement by the Seller Representative on such Seller’s behalf and further acknowledges and agrees that such Seller is bound thereby as if such Seller had executed the Execution
Date Escrow Agreement directly. 
  
 (d) Each
Seller agrees that the Seller Representative shall have no obligation or liability to any Person for any action or omission taken or omitted by the Seller Representative in good faith hereunder. Sellers (excluding DIA if the DE Closing occurs),
jointly and severally, shall indemnify and hold the Seller Representative harmless from and against any and all loss, damage, expense or liability (including reasonable counsel fees and expenses) which the Seller Representative may sustain as a
result of any such action or omission by the Seller Representative hereunder. 
  
 (e) Purchaser and the Escrow Agent shall be entitled to conclusively rely, without any independent verification or inquiry, upon any document or other paper delivered by or other action taken by the Seller
Representative as (i) genuine and correct and (ii) having been duly signed or sent or taken by the Seller Representative, and neither Purchaser nor the Escrow Agent shall be liable to any Seller for any action taken or omitted to be taken
by Purchaser or such Escrow Agent in such reliance. 
  
 (f) Payments made to or as directed by the Seller Representative under Section 1.10 or any other provision of this Agreement, the Agreement and Plan of Merger or under either Escrow Agreement, are binding to the same extent as though
such payments were made directly to Sellers or to the Members of DIA, as applicable. Neither Purchaser nor the Escrow Agent shall have any responsibility or liability for any further delivery or application of any such payment, it being agreed that,
on the terms set forth herein, (i) any payment Purchaser is required to make hereunder, any payment Purchaser is required to make or cause to be made under the Agreement and Plan of Merger and any payment the Escrow Agent is required to make
under either Escrow Agreement, may be made to or as directed by the Seller Representative on behalf of Sellers or to the Members of DIA, as applicable, (ii) Sellers or such Members, as applicable, shall determine among themselves the amount due
to each Seller or such Members, as applicable, from each payment made to or as directed by the Seller Representative hereunder under the Agreement and Plan of Merger or under either Escrow Agreement, and (iii) each Seller or such Members, as
applicable, shall look solely to the Seller Representative for each Seller’s or Member’s respective share of any payment made to or as directed by the Seller Representative hereunder, under the Agreement and Plan of Merger or under either
Escrow Agreement. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 22

 (g) Notwithstanding any other provision to the contrary in this Section 1.14, the
Seller Representative’s power and authority and ability to act under this Section 1.14 with respect to DIA shall terminate as of the effective time of the DE Closing. 
  
 ARTICLE 2 
 REPRESENTATIONS AND WARRANTIES OF SELLERS 
  
 Sellers, jointly and severally, represent and warrant to Purchaser as follows: 
  
 2.1 Authority. Each Seller has full limited liability company power and authority (a) to enter into this Agreement and all documents delivered or to be delivered by such Seller in connection herewith, and
(b) to carry out and perform the transactions contemplated hereby or thereby. 
  
 2.2 Authorization/Execution. All limited liability company action and other actions required to be taken by any Seller to authorize the execution, delivery and performance of this Agreement, all documents
executed or to be executed by any Seller in connection herewith, and all transactions contemplated hereby or thereby, have been duly and properly taken or obtained. No other limited liability company action or other action on the part of any Seller
is necessary to authorize the execution, delivery and performance of this Agreement, any document executed or to be executed by any Seller in connection herewith, or any transaction contemplated hereby. This Agreement and all documents executed or
to be executed by any Seller in connection herewith have been (or will be, as applicable) duly and validly executed and delivered by each Seller party thereto and (assuming due and valid execution by, and enforceability against, Purchaser if
Purchaser is a party thereto) this Agreement and all documents executed or to be executed by any Seller in connection herewith constitute (or will constitute, when executed and delivered) valid and binding obligations of each Seller party thereto
enforceable in accordance with their respective terms. 
  
 2.3
Organization and Good Standing; No Subsidiaries; No Conflicts. 
  
 (a) Each Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the state of its organization. Each Seller is duly qualified and in good standing in each state in
which such Seller owns any real property, if different from the state of its organization, and all such states are listed for each Seller on Schedule 2.3(a). Each Seller has full power and authority to own, operate and lease its properties
and to carry on its business as now conducted. 
  
 (b) Except as set forth on Schedule 2.3(b), no Seller has any subsidiary, whether direct or indirect, that is not also a Seller hereunder. No Seller has any equity interest or investment in, or any other right or obligation to
purchase any equity interest or other investment in, any other Person that is not also a Seller hereunder. No Seller is a partner of or joint venturer with any other Person. 
  
 (c) Except as set forth in Schedule 2.3(c), the execution and delivery of this Agreement and the
performance of the transactions contemplated by this Agreement and all other instruments, agreements, and certificates referenced herein to which any Seller is or will be a party do not and will not (i) violate any decree or judgment of any
court or governmental authority which is applicable to or binding upon any Seller, (ii) violate in any material respect 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 23

 
any Legal Requirement applicable to any Seller, (iii) violate or conflict with, or result in a breach of, or constitute a default (or an event which,
with or without notice or lapse of time or both, would constitute a default) under, or permit cancellation of, or result in the creation of any encumbrance upon any of the Assets under, any contract, lease, sales order, purchase order, indenture,
mortgage, note, bond, instrument, license or other agreement to which any Seller is a party, or by which any Seller is bound, which violation, conflict, breach or default would have a Material Adverse Effect on any Seller or Facility,
(iv) require the consent, waiver or approval of or notice to any Person, which, if not obtained, would have a Material Adverse Effect on any Seller or Facility, (v) permit the acceleration of the maturity of any indebtedness of any Seller,
or (vi) violate or conflict with any provision of the certificate of formation or organization, limited liability company agreement or regulations, or similar organizational documents of any Seller. 
  
 2.4 Financial Statements; Changes; Related Matters. 
  
 (a) Sellers have delivered to Purchaser the financial
statements of Sellers listed in Schedule 2.4(a). To the Knowledge of Sellers, except as set forth in Schedule 2.4(a), such financial statements fairly present in all material respects the financial condition and the results of
operations of Sellers as at the respective dates of and for the periods referred to in such financial statements, all in accordance with GAAP. 
  
 (b) Sellers have delivered to Purchaser unaudited, unconsolidated balance sheets (the “Interim Balance Sheets“) of Sellers at
October 31, 2005 (the “Interim Balance Sheet Date”) and the related unaudited, unconsolidated statements of operations of Sellers for the ten (10) month period then ended. To the Knowledge of Sellers, except as set forth in
Schedule 2.4(b), such financial statements fairly present in all material respects (and the financial statements delivered pursuant to Section 4.5 will fairly present in all material respects) the financial condition and the results of
operations of Sellers as at the respective dates of and for the periods referred to in such financial statements. To the Knowledge of Sellers, except as set forth in Schedule 2.4(b), such interim financial statements reflect (and in the case
of financial statements delivered pursuant to Section 4.5 will reflect when delivered) all adjustments necessary for a fair presentation of the financial information contained therein other than normal year-end adjustments which are consistent
with past practices. 
  
 (c) To the Knowledge of
Sellers, the financial statements referred to in this Section 2.4 and delivered pursuant to Section 4.5 reflect and will reflect the consistent application in all material respects of accounting principles throughout the periods involved,
except as disclosed in the notes to such financial statements. To the Knowledge of Sellers, all such financial statements have been and will be prepared from and are and will be in accordance with the accounting records of Sellers. To the Knowledge
of Sellers, the accounting records of Sellers, all of which have been made available to Purchaser, are complete and correct in all material respects and represent actual, bona fide transactions and have been maintained in accordance with sound
business practices. 
  
 (d) Sellers have
delivered to Purchaser copies of all letters from Sellers’ auditors to any Seller during the twenty-four (24) months preceding the execution of this Agreement, together with copies of all responses thereto. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 24

 (e) Except as set forth in Schedule 2.4(e), since the Interim Balance Sheet
Date, whether or not in the ordinary course of business, there has not been: 
  
 (i) any change in or event affecting any Seller or the business of any Facility that has had or would reasonably be expected to have a Material Adverse Effect on any Seller or Facility; 
  
 (ii) any strike or other material labor dispute involving
any Seller or employees or personnel at any Facility; or 
  
 (iii) any casualty, loss, damage or destruction (whether or not covered by insurance) of any property of any Seller that is material or that has involved or may involve a material loss to such Seller in excess of
applicable insurance coverage. 
  
 (f) Except as
set forth in Schedule 2.4(f), no Seller has any material liabilities except for liabilities reflected or reserved against in the Interim Balance Sheets and current liabilities incurred in the ordinary course of business of Sellers since the
Interim Balance Sheet Date. 
  
 2.5 Taxes. 
  
 (a) For purposes of this Agreement, 
  
 (i) “Tax“ or “Taxes“ means any income,
gross income, gross receipts, premiums, profits, capital, franchise, withholding, payroll, social security, workers compensation, unemployment, disability, property, ad valorem, stamp, excise, registration, occupation, service, sales, use, license,
lease, transfer, import, export, value added, severance, environmental, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or
political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
  
 (ii) “Tax Return“ means any report of Taxes due, any claims for refund of Taxes paid, any information return with respect to
Taxes, or any other similar report, statement, declaration, or document required to be filed under the Internal Revenue Code of 1986, as amended (the “Code“), or other Legal Requirement relating to Taxes, including any attachments,
exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing. 
  
 (b) Except as set forth in Schedule 2.5(b): 
  
 (i) Each Seller has timely filed (taking into account valid extensions of the time for filing) all Tax
Returns required to have been filed and all such Tax Returns were true, correct and complete in all material respects. All Taxes owed by any Seller (whether or not shown on any Tax Return) that have become due and payable have been paid, except
where the failure to pay such Taxes would not have a Material Adverse Effect on any Seller or Facility. 
  
 (ii) No Seller is currently the beneficiary of any extension of time within which to file any Tax Return. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 25

 (iii) Each Seller has withheld and paid all Taxes required to have been withheld and paid
in connection with amounts paid or owing to any employee, independent contractor, creditor, member or other third party. 
  
 (iv) There are no liens or security interests on any of the Assets that arose in connection with any failure (or alleged failure) to pay
any Tax. 
  
 (v) No deficiencies for any Taxes
have been asserted or assessed in writing against any Seller or any of the Assets, which are unpaid. To the Knowledge of Sellers, there are no claims, audits, or investigations pending or threatened against any Seller or any of the Assets for any
Tax. 
  
 (vi) To the Knowledge of Sellers, there
is no reasonable basis for any assertion by any tax authority of any deficiency in Taxes against any Seller or the Assets, including any assertion by any tax authority for any jurisdiction where a Seller does not file Tax Returns with respect to a
given Tax that the Seller is or may be subject to such Tax in such jurisdiction. 
  
 (vii) No Seller has consented to extend to a date later than the Closing Date the time in which any Tax may be assessed or collected by
any tax authority 
  
 (viii) No Seller is a party
to any tax allocation or sharing agreement with any Person, or a party to any agreement to indemnify any Person with respect to Taxes. 
  
 (ix) None of the Assets shown on any Interim Balance Sheet is owned by a Person other than a Seller such that Purchaser will not acquire
ownership of the Asset for tax purposes as a result of the transactions contemplated by this Agreement. 
  
 (x) None of the Assets is (A) required to be or is being depreciated under the alternative depreciation system under Code
Section 168(g)(2), or (B) subject to Code Section 168(f). 
  
 (xi) No “industrial development bonds” within the meaning of Section 103 of the Internal Revenue Code of 1954, as amended and in effect prior to the enactment of the Tax Reform Act of 1986,
“private activity bonds” within the meaning of Code Section 141, or other tax exempt financings are outstanding which have been used to finance Assets of any Seller, whether leased or owned. 
  
 (xii) The consummation of the transactions contemplated by
this Agreement will not adversely affect the continued validity and effectiveness of any Tax exemptions, Tax holidays or other Tax reduction agreements or orders that relate to the Assets. 
  
 (xiii) None of the Assumed Liabilities is an obligation to
make a payment that is not deductible under Code Sections 280G or 162(m) or any corresponding provision of any other applicable Tax law. 
  
 (xiv) No Seller is a partner in any entity classified as a partnership for federal income Tax purposes that is not also a Seller
hereunder. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 26

 (xv) No election under Treasury Regulations Section 301.7701-3 or corresponding
provisions of any other applicable Tax law has been made to classify any Seller entity other than in accordance with the default classification for such entity. 
  
 (xvi) No Seller is a “foreign person” within the meaning of Treasury Regulation
Section 1.1445-2(b). 
  
 2.6 Material Contracts.
Schedule 2.6 lists each Material Contract to which any Seller is a party or to which any of its properties are subject or by which any thereof is bound, other than the Excluded Contracts listed in Schedule 1.3(b). Except as
set forth in Schedule 2.6, each such Material Contract was entered into in the ordinary course of business. As used herein, “Material Contract” means any contract or agreement that (a) after the Interim Balance Sheet Date,
obligates any Seller or Sellers to pay an amount of Twenty-Five Thousand Dollars ($25,000) or more in any one twelve-month period or obligates any Seller or Sellers to pay an aggregate amount of Fifty Thousand Dollars ($50,000) or more, (b) has
an unexpired term as of the Interim Balance Sheet Date in excess of twelve (12) months that is not terminable upon sixty (60) days or less notice by the Seller party thereto at any time during the term, without penalty, (c) contains a
covenant not to compete or otherwise restricts the ability of any Seller to conduct its business, including as to manner or place, (d) grants a power of attorney, agency or similar authority to another Person or entity, (e) contains a
right of first refusal, (f) constitutes a collective bargaining agreement including any collective bargaining agreement with physicians or any other referral source, (g) constitutes an employment or severance agreement with any Facility
Worker or any member, manager, director, officer or employee of any Seller or any Affiliate of any Seller, (h) represents a contract upon which the business of any Facility is substantially dependent or a contract which is otherwise material to
the business of any Facility, (i) represents a contract with a physician, or to the Knowledge of Sellers, an immediate family member of a physician or any other referral source, including any contract with a pharmacy or any other supplier of
medical products to patients of any Facility, (j) to the Knowledge of Sellers, represents a contract with an entity in which a referring physician (as that term is defined in 42 U.S.C. § 1395m(h)(5)) or a referring
physician’s immediate family member has an ownership or investment interest, (k) represents a third-party payor, managed care or preferred provider organization contract, (l) represents an agreement providing for the lease to any
Seller of any Facility Workers, or (m) was not made in the ordinary course of business. Except as set forth on Schedule 2.6, (i) true, correct and complete copies of the Material Contracts and the Excluded Contracts, including all
amendments and supplements thereto, have been delivered to Purchaser, (ii) each Material Contract is valid and subsisting, (iii) each Seller party thereto has duly performed in all material respects all its obligations thereunder to the
extent that such obligations to perform have accrued, and (iv) no breach or default, alleged breach or default, or event which would (with the passage of time, notice or both) constitute a breach or default thereunder by the Seller party
thereto (or, to the Knowledge of Sellers, any other party or obligor with respect thereto), has occurred or as a result of the execution of this Agreement or its performance will occur. 
  
 2.7 Real and Personal Property; Title to Property; Leases. 
  
 (a) Each Seller has good and valid title in and to the Real
Property shown as owned by such Seller on any Schedule hereto, and to all Personal Property and other Assets, free and clear of Liens, subject only to (i) any Liens for taxes not yet due and payable, (ii) any lease 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 27

 
obligations included in the Assumed Liabilities, (iii) any Liens securing the HUD Loan, if any, (iv) those exceptions and other matters set forth
in Schedule B-Sections 1 and 2 of the title commitment for the respective parcels of Real Property as set forth in Exhibits F-1, F-2 and F-3 attached hereto (the “Title Commitments“), other than those exceptions and other
matters identified therein to be satisfied or complied with by Sellers, and (v) any easements and other restrictions that are visible and apparent on any of the Real Property on the Execution Date and do not materially interfere with the
operations of any Facility on any of the Real Property in any manner consistent with the current operation thereof by Sellers (items (i), (ii), (iii), (iv) and (v), collectively, the “Permitted Encumbrances”). Except as shown in
Schedule 2.7(a) and to Seller’s Knowledge, no material defects exist with respect to the condition or state of maintenance or repair of any Assets that would restrict or prevent the operations of any Facility on any of the Real
Property in a manner consistent with the current operation thereof by Sellers. Except for Permitted Encumbrances, on or after the Execution Date, no Seller shall take, or consent to, any steps or actions which will in any manner adversely alter the
status of the title to any of the Real Property without Purchaser’s prior written consent. Except for Permitted Encumbrances, no Seller shall execute, grant or record any Liens or other agreements or matters with respect to any of the Real
Property without Purchaser’s prior written consent. 
  
 (b) The Real Property listed in Schedule 1.2(a) consists of all real property owned by any Seller and, together with the real property leased pursuant to those certain Apartment Lease Agreements between Taplin
Falls LTD. and Focus FL identified on Schedule 1.2(e) (the “Focus FL Apartment Leases”), constitutes all real property used in the conduct of the business of the Facilities. 
  
 (c) Other than leases of the Real Property from one Seller
to another Seller or to an Owner, all of which leases are identified on Schedule 2.7(c) (the “Real Property Leases”) and which, except for the Cooper City Sublease, the Cooper City Prime Lease and the DE Lease, shall be terminated
at or prior to Closing at no cost to Purchaser, there are no leases of any of the Real Property. 
  
 (d) Sellers have heretofore made available to Purchaser a true, correct and complete copy of all of the Leases. Except as set forth in
Schedule 2.7(d), no consents are required to be obtained from any third party for the assignment of any of the Leases to Purchaser hereunder. 
  
 (e) At Closing, Sellers will convey to Purchaser good and valid title to the Real Property and all other Assets and, except as otherwise
provided herein, a valid leasehold interest in all of Sellers’ leased property, free and clear of all Liens, conditional sales agreements, rights of first refusal or options, except for Permitted Encumbrances and the rights of any lessor or
licensor of leased or licensed Personal Property expressly set forth in the applicable written Lease or license Contract. 
  
 (f) The Leases, the Real Property Leases and the Focus FL Apartment Leases constitute all of the agreements to which any Seller is a party
with respect to the leasehold interests in properties which are demised pursuant thereto and pertain to all real and personal property leased by any Seller and used in the conduct of the business of any Facility. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 28

 (g) Except as set forth in Schedule 2.7(g), all conditions precedent to the
enforceability of each Lease have been satisfied and there exists no breach or default, nor state of facts which, with the passage of time, notice, or both, would result in a breach or default on the part of the Seller party thereto or, to the
Knowledge of Sellers, any other party thereunder. 
  
 (h) Sellers have no Knowledge of, and, during the past three (3) years, no Seller has received any written notice of, non-compliance in any material respect with any Legal Requirement or other restriction with respect to any of the
Real Property. 
  
 (i) There is no pending or, to
the Knowledge of Sellers, threatened action that would materially interfere with the ownership, use or quiet enjoyment of any of the Real Property by any Seller. 
  
 (j) Sellers have no Knowledge of, and, during the past three (3) years, no Seller has received any
notice of, any proposed special assessments, threatened condemnation or any proposed material changes in property tax or land use Legal Requirements affecting any of the Real Property. 
  
 (k) The Assets include in all material respects all of the property used by Sellers to operate the
Facilities as of the Execution Date. 
  
 (l)
Sellers have not conveyed or otherwise granted access or parking rights for the benefit of “Parcel 2” (as identified on the Plat recorded in Plat Book 27, Page 193, Records of Glynn County, Georgia) on or across the Real Property
(identified as “Parcel 1” on such Plat). The Permitted Encumbrance for the parking shown on such Plat shall identify the same as an encroachment from Parcel 1 upon Parcel 2. 
  
 2.8 Intangible Property. Schedule 1.2(m) lists any and all
marks and other material items of intangible property described in Section 1.2(m) (the “Intangible Property“) in which any Seller has an interest and the nature of such interest. Except as set forth in Schedule 1.2(m), Sellers
have valid rights to use or ownership of all of the Intangible Property and any other material intangible property required for use in connection with the business of the Facilities. Except as set forth in Schedule 2.8, no Seller uses
any Intangible Property by consent of any other Person and no Seller is required to or does make any payments to others with respect thereto. Except as set forth in Schedule 2.8, the Intangible Property is held by Sellers and fully
assignable free and clear of any Liens. To the Knowledge of Sellers, each Seller has performed in all material respects all obligations required to be performed by such Seller, and no Seller is in default in any material respect, under any contract
relating to any of the foregoing. No Seller has received any notice to the effect (or otherwise has Knowledge) that any Intangible Property or any use thereof by any Seller conflicts with or infringes (or allegedly conflicts with or infringes upon)
the rights of any Person. 
  
 2.9 Legal Proceedings. Except
as set forth in Schedule 2.9, there is no Proceeding or order pending, or, to the Knowledge of Sellers threatened, against or affecting any Seller, or any of its respective properties or assets. Schedule 2.9 lists each Proceeding
and each order that involves a claim of aggregate liability in excess of Twenty Five Thousand Dollars ($25,000) against, or that enjoins or seeks to enjoin or excludes or seeks to exclude the conduct of any activity by, any Seller. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 29

 2.10 [Reserved]. 
  
 2.11 Insurance. Schedule 2.11 lists all insurance policies and bonds that are currently maintained by any
Seller and indicates the type of insurance, policy number, term, identity of insurer, premiums and coverage amounts and coverages (including applicable deductibles) for each such insurance policy and bond. No Seller is in default in any material
respect under any insurance policy or bond. Each Seller has timely filed claims with its respective insurers with respect to all matters and occurrences for which it believes it has coverage. Schedule 2.11 lists all claims in excess of
$20,000 which have been made by any Seller in the last two (2) years under any insurance policy and bond. Except as set forth in Schedule 2.11, all insurance policies and bonds maintained by any Seller are in full force and effect.
Except as shown in Schedule 2.11, no Seller has received notice from any insurer or agent of any intent to cancel or not to renew any of such insurance policies or bonds. There are no outstanding requirements or recommendations by any
insurance company that issued a policy with respect to any of the properties and assets of any Seller requiring or recommending any action which has not been taken. 
  
 2.12 Employees. 
  
 (a) By letter dated December 6, 2005, Sellers have provided Purchaser with a complete list (as of the date set forth therein) of
names, departments and current annual salaries or wage rates, bonus and other compensation and/or benefit arrangements, accrued vacation and sick leave, the paid time off pay and period of service credited for vesting as of the date thereof of all
full-time and part-time employees of any Seller and all Facility Workers and indicating whether such employee or Facility Worker works part time or full time at any Facility. Except as set forth in Schedule 2.12(a), there are no
employment agreements or severance agreements with any employee of any Seller or any Facility Worker or arrangements requiring the payment of a bonus or other compensation as a result of the consummation of the transactions contemplated by this
Agreement. 
  
 (b) There are no labor union or
collective bargaining agreements in effect with respect to any employees of any Seller or any Facility Worker. There is no unfair labor practice complaint against any Seller pending, or to the Knowledge of Sellers threatened, before the National
Labor Relations Board. There is no labor strike, arbitration, dispute, slowdown or stoppage, and no union organizing campaign, pending, or to the Knowledge of Sellers threatened by or involving any employees of any Seller or any Facility Worker.

  
 (c) The agreements between Sellers and
Atlantic Professional Employers, Inc. (“APE”) listed on Schedule 2.6 (the “Seller APE Leases”) constitute the only agreements pursuant to which any Facility Workers are leased by any Seller. 
  
 2.13 Employee Benefits. 
  
 (a) Except to the extent that any Seller may be an adopting
employer of a 401(k) Plan maintained by APE as a multiple employer plan under Section 413(c) of the Code, Seller does not maintain any pension, retirement, savings, deferred compensation, profit-sharing plan, bonus or other incentive plan,
severance plan, health, group insurance or other welfare plan, or other similar plan and any “employee benefit plan” within the meaning of Section 3(3) 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 30

 
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), under which any Facility Worker or other Person has or may have any
current or future right to benefits (the term “plan” includes any contract, agreement, policy or understanding, and each such plan is referred to in this Agreement individually as a “Plan”). 
  
 (b) There are no actions pending, or, to the Knowledge of
Sellers, threatened, with respect to any Plan of APE with respect to any Facility Worker, other than claims for benefits in the ordinary course. To the Knowledge of Sellers, each Plan of APE with respect to any Facility Worker has been administered
in accordance with its terms and with all applicable laws (including ERISA). 
  
 (c) No Seller or any Commonly Controlled Entity contributes to or has an obligation to contribute to, nor has any Seller or any Commonly Controlled Entity at any time within six (6) years prior to the Closing
contributed to or had an obligation to contribute to, either (i) a multiemployer plan within the meaning of Section 3(37) of ERISA, or (ii) any plan subject to Title IV of ERISA. Each Seller has performed timely and shall timely
perform all obligations of such Seller and each Commonly Controlled Entity, whether arising by operation of law or by contract, required to be performed under Section 4980B of the Code (or similar state law), including, but not limited to, such
obligations that may arise by virtue of the transactions contemplated by this Agreement. For the purposes of this Section 2.13, “Commonly Controlled Entity” means any corporation, trade, business, or entity under common control with
any Seller within the meaning of Section 414(b), (c), (m), or (o) of the Code or Section 4001 of ERISA. 
  
 (d) To the Knowledge of Sellers, each employee, nonemployee worker, former employee and independent contractor of each Seller has been
properly classified as such for all purposes under the Code and ERISA. 
  
 2.14 Certain Interests. Except as set forth in Schedule 2.14, (a) no Related Person of any Owner has any material interest in any property used in or pertaining to the business of any Facility, (b) no Related
Person of any Owner is indebted or otherwise obligated to any Seller, (c) no Seller is indebted or otherwise obligated to any Related Person of any Owner, except for amounts due under normal arrangements applicable to all employees generally as
to salary, or reimbursement of ordinary business expenses not unusual in amount or significance, and (d) the consummation of the transactions contemplated by this Agreement will not (either alone, or upon the occurrence of any act or event, or
with the lapse of time, or both) result in any benefit or payment (severance or other) arising or becoming due from any Seller or the successor or assign of any thereof to any Person, which in the case of clauses (a) through (d) above will
adversely affect the business conducted by the Purchaser at the Facilities after the Closing or impose any obligations or liabilities on Purchaser. Schedule 2.14 contains a complete and accurate listing of all business functions and
activities of each Facility which are performed, in whole or in part, by any Related Person of any Owner. Except as set forth in Schedule 2.14, no Seller has engaged in any transaction with any Related Person of any Owner. 
  
 2.15 Inventory. All Inventory of each Seller is of a quality and
quantity and that is sufficient for the operation of the Facilities in the ordinary course of business, consistent with past practices. The value at which any Inventory is carried on the books of Sellers reflects the customary Inventory valuation
policy of the applicable Seller for stating inventory in accordance with GAAP consistently applied. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 31

 2.16 Receivables. To Seller’s Knowledge, the accounts receivable (including the accounts
receivable arising or payable to any Seller under any Government Program) reflected on the books and records of each Seller and each Facility arose from bona fide commercial transactions, and the financial statements referred to in Section 2.4
include all refunds, discounts or setoffs payable or assessable with respect to such accounts receivable (including the accounts receivable arising or payable to any Seller under any Government Program), taken as a whole. Each Seller adequately
records in all material respects on its financial statements all estimates for future Seller Cost Report settlements for all years open to settlement. Each Seller records Government Program recoupments on its financial statements in the period in
which the recoupment is assessed. 
  
 2.17 Third-Party Payors
and Suppliers. Schedule 2.17 lists all Material Contracts for the year ended December 31, 2004, attributable to the five (5) largest third-party payors (or such fewer payors if such Facility has less than five
(5) material payors), and any sole-source suppliers of material goods or services (other than electricity, gas, telephone or water) to the business of each such Facility with respect to which alternative sources of supply are not readily
available on comparable terms and conditions. 
  
 2.18 Worker
Adjustment and Retraining Notification (WARN). Each Seller has complied with the Worker Adjustment and Retraining Notification Act, 29 U.S.C.A. §2102, et seq., as amended (the “WARN Act”), insofar as applicable to any acts
or transactions with respect to the operation of any Facility prior to and, assuming compliance by Purchaser with the applicable requirements of the WARN Act as relates to the Facility Workers leased by Purchaser from APE as of the Effective Time
upon consummation of the Closing, including the transactions contemplated by this Agreement. 
  
 2.19 Environmental Compliance. Except as set forth in Schedule 2.19 or as disclosed in the Phase I environmental surveys listed in Schedule 2.19: 
  
 (a) To the Knowledge of Sellers, the Assets are in material
compliance with all applicable Environmental Laws. As used herein, “Environmental Laws” means all applicable Legal Requirements relating to pollution or protection of the environment (including ambient air, surface water, ground water,
land or surface or subsurface strata), including all applicable federal, state or local laws relating to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or
wastes into the environment and all applicable Legal Requirements relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of any of the foregoing, including the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. § 9601, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901, et. seq.), and the rules and regulations promulgated thereunder. 
  
 (b) To the Knowledge of Sellers, Sellers have obtained all
permits required under applicable Environmental Laws for the use, operation or ownership of the Real Property and the business of the Facilities, and the Real Property and the Facilities are in material compliance with each such applicable permit.
No federal, state or local governmental entity has notified any Seller that any such permits may or will be suspended, cancelled, revoked or modified, or cannot be renewed in the ordinary course of business. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 32

 (c) No Seller has received from any federal, state or local governmental entity or other
Person any order, directive, information request, notice of violation, notice of alleged violation, notice of noncompliance, notice of liability or potential liability, regarding compliance with, or liability or potential liability under, applicable
Environmental Laws concerning any of the Real Property or the business of any Facility or any off-site disposal of a hazardous substance (including any letter or request for information under Section 104 of the Comprehensive Environmental
Response, Compensation, and Liability Act (42 U.S.C. § 9604) or any comparable state law). 
  
 (d) No Proceeding or claim is pending or, to the Knowledge of Sellers, threatened, under any applicable Environmental Law pursuant to
which any Seller is or to the Knowledge of Sellers could be reasonably expected to be named as a party with respect to the Real Property or the business operations of the Facilities. 
  
 (e) No Seller has entered into any agreement with any federal, state or local governmental entity or any
other Person pursuant to which a Seller assumed responsibility for the investigation or remediation of any condition resulting from the release, treatment, storage or disposal of hazardous substances, which matter has not been completed or resolved.

  
 (f) Sellers have disclosed and made available
to Purchaser all relevant information, including all studies, site assessments, compliance audits and similar environmental reports, analyses, and test results that are in the possession, custody or control of any Seller, relating to any past and
present (i) environmental conditions concerning the business of the Facilities or on, under or about the Real Property, (ii) use or operation of the Real Property used in or held for use in connection with the business of the Facilities,
and (iii) activities relating to hazardous substances on, or any off-site disposal of a hazardous substance from, the Real Property or used in connection with the business of the Facilities. Sellers have disclosed and made available to
Purchaser any and all documents that are in the possession, custody or control of any Seller relating to projected necessary environmental expenditures for the business of the Facilities and the Real Property, including capital and operating budgets
and reports prepared by independent auditors or accountants and prepared by personnel, and including reports, studies or documents relating to the costs (including, anticipated capital costs and annual expenses) of compliance with Environmental
Laws. 
  
 (g) To the Knowledge of Sellers, there
is no soil or groundwater contamination on, under, or about any Real Property. 
  
 (h) No Seller holds or is required to hold a permit for the generation, treatment, storage, or disposal of hazardous waste in accordance
with the Resource Conservation and Recovery Act (42 U.S.C. § 6901, et seq.). 
  
 2.20 Powers of Attorney. Except as contemplated by this Agreement, no Seller has given any currently outstanding power of attorney (irrevocable or otherwise) to any Person for any purpose relating to the
business of any Facility, other than powers of attorney given to regulatory authorities in connection with routine qualifications to do business. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 33

 2.21 Accreditation; Medicare and Medicaid; Third-Party Payors; Compliance with Health Care Laws.

  
 (a) Each Facility is duly accredited by the
Joint Commission on Accreditation of Healthcare Organizations (“JCAHO”) as evidenced by such Facility’s most recent JCAHO accreditation survey reports and is duly licensed by the state in which such Facility is located as shown on
Schedule 2.21(a). Sellers have the lawful authority and all federal, state or local governmental authorizations, certificates of authority, certificates of need, licenses or permits necessary for or required to conduct the business operations
of the Facilities as such are presently being conducted. In order to conduct the business operations of the Facilities as presently conducted, no Seller is required to hold any licenses, permits or other governmental approvals or authorizations
except for those items currently held by such Seller as listed in Schedule 2.21(a). The items listed in Schedule 2.21(a) are in full force and effect and each Seller is in compliance in all material respects with all
requirements of each license, permit or other governmental approval or authorization that it holds. Each Seller has made all filings with governmental agencies required for the conduct of its business operations. There are no judgments, consent
decrees or injunctions of any court or any governmental department, commission, agency or instrumentality by which any Seller is bound or to which any Seller is subject which relate in any manner to the business of any Facility. No Seller has
received nor, to the Knowledge of Sellers is any Seller subject to, any notice, subpoena, demand letter, administrative inquiry or formal or informal complaint or claim from any governmental department, commission, agency or instrumentality which
relate in any manner to the business operations of any Facility. 
  
 (b) The applicable facilities, equipment, staffing and operations of the business of the Facilities satisfy the accreditation standards of JCAHO. Sellers have previously delivered or made available to Purchaser true,
correct and complete copies of (i) each Facility’s most recent JCAHO accreditation survey report, a list of deficiencies, if any, and, if applicable, a plan of correction, (ii) each Facility’s most recent state health or
licensing agency surveys, lists of deficiencies, if any, and, if applicable, plans of correction, (iii) each Facility’s fire marshal’s surveys for the past two (2) years and lists of deficiencies, if any, and (iv) each
Facility’s boiler inspection reports for the past two (2) years and lists of deficiencies, if any. Sellers have taken all reasonable steps to correct all such deficiencies and a description of any uncorrected deficiency is set forth in
Schedule 2.21(b). 
  
 (c) Except for
the Facility operated by Focus FL which does not receive any Medicare payments and except that only the DE Facility is a Medicaid provider, each Facility receives payment without restriction under Medicare and Medicaid and has a valid and current
provider agreement and one or more properly issued provider numbers with each Government Program. All such provider numbers of the Facilities, as well as any supplier numbers of the Facilities, are listed in Schedule 2.21(c) by Facility
to the extent applicable. Except as set forth in Schedule 2.21(c), each Seller is in material compliance with the conditions of participation for the Government Programs. 
  
 (d) Sellers have timely filed in accordance with instructions from the Centers for Medicare &
Medicaid Services or the applicable fiscal intermediary, carrier or payor and applicable Legal Requirements, and shall cause to be timely filed in accordance with instructions from the Centers for Medicare & Medicaid Services or the
applicable fiscal intermediary, carrier or payor and applicable Legal Requirements, all cost reports and other reports that are required to 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 34

 
have been filed or made on or before the Closing Date with respect to the purchase of services of the business of the Facilities, including Government
Programs and other insurance carriers, and, except as disclosed in Schedule 2.21(d), all such reports are or when filed shall be complete and accurate. Except as disclosed in Schedule 2.21(d), each Seller is and has been in
compliance with all filing requirements with respect to cost reports of such Seller, and such reports do not claim, and such Seller has not received, payment or reimbursement materially in excess of the amount provided or allowed by applicable Legal
Requirements or any applicable agreement, except where excess reimbursement was noted on the cost report. True and correct copies of all such reports for the 2004 fiscal year, and any other cost report for which a final settlement has not been
issued, have been made available to Purchaser. Except as disclosed in Schedule 2.21(d) and except for claims, actions and appeals in the ordinary course of business that are not material to any Seller or Facility, no Seller has either
initiated or received written notice of any material claims, actions or appeals pending before any commission, board or agency, including any fiscal intermediary or carrier, governmental entity, or the Administrator of the Centers for
Medicare & Medicaid Services, with respect to any Government Program cost reports or claims filed on behalf of any Seller with respect to the business of any of the Facilities. Schedule 2.21(d) indicates which of such cost
reports have been audited by the fiscal intermediary and finally settled. 
  
 (e) Except as disclosed in Schedule 2.21(e), no validation review or program integrity review related to any Facility, the operation of any Facility, or the consummation of the transactions contemplated by
this Agreement, has been conducted by any commission, board, agency or government entity in connection with the Government Programs, and to the Knowledge of Sellers, no such reviews are scheduled, pending or threatened against or affecting any
Seller with respect to any Facility or the consummation of the transactions contemplated by this Agreement. 
  
 (f) All billing practices of Sellers with respect to the Facilities to all third-party payors, including the Government Programs and
private insurance companies, are and have been in compliance with all applicable Legal Requirements and all policies of such third-party payors and Government Programs, and no Seller or Facility has billed or received any payment or reimbursement in
excess of amounts allowed by law which would materially adversely affect Purchaser. 
  
 (g) To the Knowledge of Sellers, (i) no Facility Worker, employee or independent contractor of any Seller, and no physician currently
on the medical staff at any Facility, is, or is listed on the website of the Office of Inspector General of the United States Department of Health and Human Services as having been, excluded from participating in Medicare or any other Government
Program, and (ii) none of the business of any Facility, or any Seller or any Seller’s officers, managers, agents or management employees (as that term is defined in 42 U.S.C. § 1320a-5(b)), has been excluded from
participating in Medicare or any other Government Program or has been subject to sanction pursuant to 42 U.S.C. § 1320a-7a or 1320a-8 or has been convicted of a criminal offense under the Anti-Kickback Law or any similar Legal
Requirement. 
  
 (h) In the five (5) year
period immediately preceding the Execution Date and since the Execution Date, to the Knowledge of Sellers, no employee of any Seller and no Facility 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 35

 
Worker has committed a violation in any material respect of any Legal Requirement regulating health care fraud, including the Anti-Kickback Law, the Stark
Law, and the False Claims Act. 
  
 2.22 Compliance Program.
Sellers have made available to Purchaser (i) a copy of each Facility’s current compliance program materials, including all program descriptions, compliance officer and committee descriptions, ethics and risk area policy materials, training
and education materials, auditing and monitoring protocols, reporting mechanisms, and disciplinary policies and (ii) copies of any written complaints received in the previous five (5) years from employees, independent contractors, vendors,
physicians or any other Person asserting that any Facility or any Seller has violated any health care Legal Requirement, including the Anti-Kickback Law, the Stark Law, and any similar Legal Requirement. No Seller (a) is a party to a Corporate
Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services, (b) has reporting obligations pursuant to any settlement agreement entered into with any Governmental Program, (c) to
the Knowledge of Sellers, has been the subject of any Government Program investigation conducted by any federal or state enforcement agency during the past five (5) years, (d) to the best Knowledge of Sellers, has been a defendant in any
qui tam/False Claims Act litigation during the past five (5) years, or (e) has been served with or received any written search warrant, subpoena, civil investigative demand or contact letter from any federal or state enforcement
agency (except in connection with medical services provided to, or medical supplies purchased from, third parties who may be defendants or the subject of investigation into conduct unrelated to the operation of the health care businesses conducted
by such Seller). 
  
 2.23 HIPAA. Each Seller has complied
in all material respects with all applicable provisions of the Health Insurance Portability and Accountability Act of 1996, and the rules and regulations promulgated thereunder, from and after the applicable effective dates for such requirements.

  
 2.24 Restricted Grant and Loan Programs. The
transactions contemplated by this Agreement will not result in any obligation on any Seller to repay any loans, grants or loan guarantees or provide uncompensated care in consideration thereof pursuant to the Hill Burton Program or any similar
statute or program with respect to the ownership or operation of the business of any Facility. 
  
 2.25 Experimental Procedures. No Seller has performed or authorized the performance of any experimental or research procedures or studies involving patients of any Facility that require the prior approval of
any governmental entity that has not been obtained. 
  
 2.26
Medical Staff; Physician Relations. Sellers have made available to Purchaser complete and genuine copies of the bylaws and rules and regulations of the medical staff and medical executive committees of each Facility. Schedule 2.26
sets forth (a) the name and status on the medical staff of each member of the medical staff of each Facility and (b) the degree (e.g., M.D., D.O.), title specialty and board certification, if any, of each such medical staff member. Except
as set forth in Schedule 2.26, there are no pending or, to the Knowledge of Sellers, threatened disputes with any Facility’s medical staff members or applicants or allied health professionals, and all appeal periods in respect of
any medical staff member or applicant against whom an adverse action has been taken have expired. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 36

 2.27 Solvency. No Seller is insolvent or will be rendered insolvent as a result of any of the
transactions contemplated by this Agreement. For purposes hereof, the term “solvency” means that: (a) the fair salable value of a Seller’s tangible assets is in excess of the total amount of its liabilities (including for
purposes of this definition all liabilities, whether or not reflected on a balance sheet prepared in accordance with GAAP, and whether direct or indirect, fixed or contingent, secured or unsecured, and disputed or undisputed), (b) each Seller
is able to pay its debts or obligations in the ordinary course as they mature, and (c) each Seller has capital sufficient to carry on its businesses and all businesses which it is about to engage. 
  
 2.28 No Brokers or Finders. No agent, broker, finder, or investment or
commercial banker, or other Person or firm engaged by or acting on behalf of any Seller, or any Affiliate of any Seller, in connection with the negotiation, execution or performance of this Agreement or the transactions contemplated by this
Agreement, is or will be entitled to any brokerage or finder’s or similar fee or other commission as a result of this Agreement or such transactions. 
  
 2.29 Improper Payments. To the Knowledge of Sellers, no Related Person or employee of any Owner, and no Facility Worker, has made any illegal
bribes, kickbacks or other illegal payments to, or received any such illegal payments from, customers, vendors, suppliers or other Persons contracting with any Seller and has not proposed or offered to make or receive any such illegal payments.

  
 2.30 No Misrepresentations. All representations,
warranties and statements made by any Seller in this Agreement are true, complete and correct in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make any such
representation, warranty or statement, in light of the circumstances under which they were made, not materially misleading. 
  
 ARTICLE 3 
 REPRESENTATIONS AND
WARRANTIES OF PURCHASER 
  
 Purchaser represents and warrants
to Sellers as follows: 
  
 3.1 Authority. Purchaser has
full corporate power and authority (a) to enter into this Agreement and all documents executed or to be executed by Purchaser in connection herewith, and (b) to carry out and perform the transactions contemplated hereby and thereby.

  
 3.2 Authorization/Execution. All corporate action and
other actions required to be taken by Purchaser to authorize its execution, delivery and performance of this Agreement, all documents executed or to be executed by Purchaser in connection herewith, and all transactions contemplated hereby or
thereby, have been duly and properly taken or obtained by Purchaser. No other corporate action or other action on the part of Purchaser is necessary to authorize Purchaser’s execution, delivery and performance of this Agreement, any document
executed or to be executed by Purchaser in connection herewith, or any transaction contemplated hereby. This Agreement and all documents executed or to be executed by Purchaser in connection herewith have been (or will be, as applicable) duly and
validly executed and delivered by Purchaser and (assuming due and valid execution by, and enforceability against, any other Person that is a party thereto) this Agreement and all documents executed or to be executed by 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 37

 
Purchaser in connection herewith constitute (or will constitute when executed and delivered) the valid and binding obligations of Purchaser enforceable in
accordance with their respective terms. 
  
 3.3 Organization
and Good Standing; No Violation. 
  
 (a)
Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. 
  
 (b) The execution and delivery by Purchaser of this Agreement and the performance by Purchaser of the transactions contemplated by this
Agreement and all other instruments, agreements, certificates and documents contemplated hereby to which Purchaser is or will be a party do not and will not (i) violate any decree or judgment of any court or governmental authority which is
applicable to or binds Purchaser, (ii) violate any Legal Requirement applicable to Purchaser which would have a material adverse effect on Purchaser, (iii) violate or conflict with, or result in a breach of, or constitute a default (or an
event which, with or without notice or lapse of time or both, would constitute a default) under, or permit cancellation of, any material contract, lease, mortgage, note, bond, instrument, license or other agreement to which Purchaser is a party, or
by which Purchaser is bound, (iv) permit the acceleration of the maturity of any indebtedness of Purchaser, (v) following the receipt of the Governmental Approvals and the Contract and Lease Consents and the expiration of the applicable
waiting period, and any extensions thereof, under the HSR Act, require the consent of any third party, or (vi) violate or conflict with any provision of the Certificate of Incorporation or Bylaws of Purchaser. 
  
 3.4 Brokers and Finders. No agent, broker, finder, or investment or
commercial banker, or other Person or firm engaged by or acting on behalf of Purchaser, or any Affiliate of Purchaser, in connection with the negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement,
is or will be entitled to any brokerage or finder’s or similar fee or other commission as a result of this Agreement or such transactions. 
  
 3.5 Due Diligence. Purchaser has commissioned the Phase I environmental surveys of the Real Property listed in Schedule 2.19 as ordered by
Purchaser and the Title Commitments and has reviewed and is familiar with the results of such surveys and reports. 
  
 3.6 Financial Ability. Purchaser has the financial ability to consummate the transactions contemplated by this Agreement, the Agreement and Plan of
Merger, the Right of First Refusal Agreements, and the Lighthouse Purchase Agreement. 
  
 3.7 No Misrepresentations. All representations, warranties and statements made by Purchaser in this Agreement are true, complete and correct in all material respects and do not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make any such representations, warranty or statement, in light of the circumstances under which they were made, not materially misleading. 
  
 ARTICLE 4 
 COVENANTS OF SELLERS 
  
 4.1 Access and Information; Inspection Period. From the Execution Date through the consummation of the Closings, Sellers (or after the Closing, but before the DE Closing, DIA and 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 38

 
Focus DE) shall afford to the officers, employees, contractors and agents of Purchaser, at Purchaser’s sole cost and expense, (which shall include
accountants, attorneys, bankers and other consultants and agents of Purchaser) full and complete access during normal business hours to and the right to inspect the plants, properties, books, accounts, records and all other relevant documents and
information with respect to the assets, liabilities and business of the applicable Sellers, the Facilities, the Real Property and all of the other Assets to be purchased or acquired by Purchaser hereunder or under the Agreement and Plan of Merger.
From the Execution Date through the consummation of the Closings, Sellers (or after the Closing, but before the DE Closing, DIA and Focus DE) shall furnish Purchaser with such additional financial and operating data and other information in any
Seller’s possession as to businesses and properties of the applicable Sellers, the Facilities, the Real Property and all of the Assets as Purchaser or its representatives may from time to time reasonably request, without regard to where such
information may be located. Such access shall include consultations with the personnel of any Seller if requested by Purchaser. Purchaser agrees that Purchaser’s right of access and inspection shall be exercised in such a manner as not to
interfere unreasonably with the operations of the Facilities. Further, Purchaser may, at its sole cost and expense undertake environmental, mechanical, engineering, and structural inspections, tests and surveys of the Facilities and the Real
Property. Purchaser agrees that, after performing any inspections, tests or surveys, Purchaser shall restore the Facilities and the Real Property as nearly as possible to its condition immediately prior to such inspections, tests or surveys and
repair any damage to same caused by the performance of such inspections, tests, or surveys. Purchaser agrees that, prior to the entry of Purchaser or its officers, employees, contractors or agents onto the Facilities or the Real Property to perform
any such inspections, tests, or surveys, Purchaser shall, or shall cause its officers, employees, contractors or agents to, maintain levels of liability and other insurance as are considered generally acceptable in the industry for such activities
to be undertaken on the Facilities or the Real Property. Purchaser agrees to defend, indemnify and save Sellers harmless from and against any claim, damage, liability, cost or expense (including reasonable attorneys’ fees and expenses) arising
from acts or omissions of Purchaser (and from the acts or omissions of Purchaser’s officers, employees, contractors or agents) in any way pertaining to any entry upon, or inspection, test or survey of, the Facilities or the Real Property (or
any parts thereof) prior to consummation of the applicable closing. Purchaser’s obligations under this Section with respect to acts or omissions occurring prior to each closing, but not thereafter, shall survive the Closings or termination
hereunder. 
  
 4.2 Conduct of Business. On and after the
Execution Date and prior to consummation of the Closings, and except as otherwise consented to or approved in writing by an authorized officer of Purchaser or required by this Agreement, each Seller (or after the Closing, but before the DE Closing,
DIA and Focus DE) shall: 
  
 (a) carry on its
businesses in substantially the same manner as presently conducted and not make any material change in personnel, operations, finance, accounting policies (unless the applicable Seller is required to adopt such changes under GAAP), Tax elections or
Tax Returns or real or personal property; 
  
 (b)
maintain the Facilities and the Real Property and all parts thereof and all other Assets in operating condition in a manner consistent with past practices, ordinary wear and tear excepted; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 39

 (c) perform all of its material obligations under agreements relating to or affecting any
of the Facilities, the Real Property, their operations or the Assets; 
  
 (d) keep in full force and effect present insurance policies or other comparable self-insurance; 
  
 (e) use commercially reasonable efforts to maintain and preserve its business organization intact, retain its present employees and
Facility Workers at the Facilities and maintain its relationships with physicians, suppliers, customers and others having business relationships with any Facility; 
  
 (f) pay all of its liabilities as they become due; and 
  
 (g) collect all Accounts Receivable in the ordinary course
of business consistent with Sellers’ past practices. 
  
 4.3
Negative Covenants. From the Execution Date until consummation of the Closings, no Seller (or after the Closing, but before the DE Closing, DIA and Focus DE) shall, without the prior written consent of Purchaser or except as may be required
by law: 
  
 (a) amend or terminate any of the
Contracts or Leases, enter into any new contract or commitment, or incur or agree to incur any liability, except in the ordinary course of business, and in no event with respect to any such contract, commitment or liability as to which the total to
be paid in the future under the contract, commitment or liability exceeds Twenty Five Thousand Dollars ($25,000); 
  
 (b) increase compensation payable or to become payable or make any bonus payment to or otherwise enter into one or more bonus, severance
or other agreements with or for the benefit of any employee or Facility Worker, except in the ordinary course of business in accordance with Sellers’ customary personnel policies; 
  
 (c) create, assume or permit to exist any new debt, mortgage, deed of trust, pledge or other lien or
encumbrance (other than Permitted Encumbrances) upon any of the Assets; 
  
 (d) acquire (whether by purchase or lease) or sell, assign, lease, or otherwise transfer or dispose of any property, plant or equipment, except in the ordinary course of business with comparable replacement thereof;

  
 (e) except with respect to expenditures
budgeted by Sellers and disclosed to Purchaser prior to the Execution Date, purchase capital assets or incur costs in respect of construction in progress; 
  
 (f) take any action outside the ordinary course of business; 
  
 (g) reduce Inventory except in the ordinary course of business; or 
  
 (h) make any efforts to collect or reduce Accounts
Receivable between the Execution Date and the respective Effective Times except in the ordinary course of business. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 40

 4.4 Consents. Sellers shall use commercially reasonable efforts to obtain all Contract and Lease
Consents and shall cooperate with Purchaser and its representatives and attorneys: (a) in Purchaser’s efforts to obtain all other consents, approvals, authorizations, clearances, certificates of need and licenses required to carry out the
transactions contemplated by this Agreement and the Agreement and Plan of Merger (including those of governmental and regulatory authorities) or which Purchaser reasonably deems necessary or appropriate, and (b) in the preparation of any
document or other material which may be required by any governmental agency as a predicate to or result of the transactions contemplated in this Agreement and the Agreement and Plan of Merger. Notwithstanding anything to the contrary in this
Agreement or the Agreement and Plan of Merger, to the extent Sellers are unable to obtain any of the Contract and Lease Consents, if either closing is consummated without such Consents Sellers shall cooperate with Purchaser to ensure that Purchaser
obtains the benefits of each such Contract or Lease and Sellers (excluding DIA if the DE Closing occurs) shall indemnify and hold harmless Purchaser and its Affiliates from and against any and all Damages as a result, directly or indirectly, of the
failure to obtain any such Contract or Lease Consent. 
  
 4.5
Additional Financial Information. Within thirty (30) calendar days following the end of each calendar month ending after October 2005 and prior to the Closings, Sellers (or after the Closing, but before the DE Closing, DIA and Focus DE)
shall deliver to Purchaser a complete copy of the unaudited, unconsolidated balance sheets and related unaudited, unconsolidated statements of operations of Sellers for such month then ended, together with corresponding year-to-date amounts. All
such financial statements shall be prepared consistent with the representations of Sellers in Sections 2.4(b) and 2.4(c). 
  
 4.6 No-Shop. From and after the Execution Date until the earlier of the consummation of the Closings or the termination of this Agreement, Sellers
(or after the Closing, but before the DE Closing, DIA and Focus DE) agree that none of them nor any of their respective Affiliates shall, without the prior written consent of Purchaser, directly or indirectly: (a) offer for sale or lease any
assets of any Facility or any of the Assets other than in the ordinary course of business consistent with past practices, (b) solicit offers to buy all or any material portion of the assets of any Facility or any of the Assets, (c) hold
discussions with any Person (other than Purchaser) looking toward such an offer or solicitation, or (d) enter into any negotiations or agreement with any Person (other than Purchaser) with respect to the sale or other disposition of any
Facility or any of the Assets or any business combination transaction involving any Seller (including the sale of equity interests in any Seller or the merger or consolidation of any Seller). 
  
 4.7 Sellers’ Efforts to Close. Sellers shall use commercially
reasonable efforts to satisfy all of the conditions precedent set forth in Articles 6 and 7 to its or Purchaser’s obligations under this Agreement or set forth in Articles 9 and 10 of the Agreement and Plan of Merger to its or Purchaser’s
obligations under the Agreement and Plan of Merger to the extent that any Seller’s action or inaction materially can control or influence the satisfaction of such conditions. 
  
 4.8 Notification; Updating of Disclosure Schedules. Between the Execution Date and the Closings, Sellers (or after
the Closing, but before the DE Closing, DIA and Focus DE) shall notify Purchaser in writing (i) if any Seller becomes aware of (A) any fact or condition that causes or constitutes a breach of any Seller’s representations and
warranties made herein or in 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 41

 
the Agreement and Plan of Merger, or (B) the occurrence after the Execution Date of any fact or condition that would or be reasonably likely to (except
as expressly contemplated by this Agreement or the Agreement and Plan of Merger) cause or constitute a breach of any such representation or warranty had that representation or warranty been made as of the time of the occurrence of, or any
Seller’s discovery of, such fact or condition, and (ii) of any changes, additions, or events which may cause any change in or addition to the Disclosure Schedules delivered by Sellers under this Agreement or the Agreement and Plan of
Merger; in each case promptly after the discovery or occurrence of the same and again at the applicable closing by delivery of appropriate updates or supplements to all such Schedules. No notification of a change or addition to a Disclosure Schedule
made pursuant to this Section 4.8 shall be deemed to cure any breach of any representation or warranty unless in any such case Purchaser specifically agrees thereto in writing, nor shall any such notification be considered to constitute or give
rise to a waiver by Purchaser of any condition set forth in this Agreement or in the Agreement and Plan of Merger, unless in any such case Purchaser specifically agrees thereto in writing or if following such notification Purchaser proceeds to close
the transactions contemplated by this Agreement or the Agreement and Plan of Merger, as applicable. Nothing contained herein shall be deemed to create or impose on Purchaser any duty to examine or investigate any matter or thing for the purposes of
verifying the representations and warranties made by Sellers herein or in the Agreement and Plan of Merger. 
  
 4.9 Facility Repairs. At or prior to Closing, Sellers, at their sole expense, shall perform the repairs described in Schedule 4.9 (the
“Facility Repairs”) to the reasonable satisfaction of Purchaser. 
  
 4.10 DE Facility Remediation. Prior to the DE Closing, Sellers (excluding DIA if the DE Closing occurs), at their sole expense, shall remove the fully grown trees and vegetation around the drainage pit in the
rear of the Facility operated by Focus DE as required by the State of Delaware Department of Special Services (the “Delaware Remediation”) to the reasonable satisfaction of Purchaser. To the extent any of the Delaware Remediation has not
been completed prior to the date of the DE Closing, the Aggregate Purchase Price shall be reduced as a reduction to the portion of the Focus DE Asset Purchase Price payable at the DE Closing under the Agreement and Plan of Merger by an amount equal
to the amount of the reasonable estimated cost of such portion of the Delaware Remediation as is not completed by the DE Closing Date. 
  
 4.11 Payment of Taxes. At or prior to each closing, Sellers shall pay (a) all past-due property Taxes, together with all penalties and
interest thereon, owing with respect to any of the Real Property, and (b) all Taxes referred to on Schedule 2.5(b), together with all penalties and interest thereon. 
  
 4.12 [Reserved]. 
  
 4.13 Required Approvals; Other Actions. In addition to Sellers’ obligations under Section 4.4, between the Execution Date and the
consummation of the Closings, each Seller (or after the Closing, but before the DE Closing, DIA and Focus DE) shall (a) make as promptly as practicable all filings required by applicable law to be made by it or any of its Affiliates in order to
consummate the transactions contemplated hereby and in the Agreement and Plan of Merger (including making all filings and submissions under any applicable Antitrust Laws), (b) comply at the earliest practicable date with any request for
additional information or documentary 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 42

 
material (or any similar request for information and/or documents) respectively received by Purchaser or any Seller, or any of their respective Affiliates,
from the Federal Trade Commission (“FTC“), the Antitrust Division of the Department of Justice (“DOJ“) or any other governmental authority pursuant to any applicable Antitrust Law in connection with the transactions contemplated
hereby and in the Agreement and Plan of Merger, (c) promptly inform Purchaser of any material communication made by such Seller to, or received by such Seller from, the FTC, the DOJ or any other governmental authority regarding any of the
transactions contemplated hereby, (d) cooperate in connection with any filing under applicable Antitrust Law and in connection with resolving any investigation or other inquiry concerning the transactions contemplated hereby and in the
Agreement and Plan of Merger, commenced by the FTC, the DOJ, any state attorney general or any other governmental authority pursuant to any applicable Antitrust Law, and (e) cooperate with each Seller and Purchaser and use commercially
reasonable efforts to obtain all consents required to be obtained under applicable Antitrust Laws to permit the consummation of the transactions contemplated hereby and in the Agreement and Plan of Merger, and with respect to all other filings any
Seller or Purchaser elects to make or is required to make in connection with the transactions contemplated hereby or by the Agreement and Plan of Merger. Notwithstanding the foregoing or anything else in this Agreement, nothing in this Agreement or
the Agreement and Plan of Merger shall require any Seller or any of its Affiliates to dispose of or make any change in any portion of its business or to incur any other similar burden to obtain any Governmental Approval. 
  
 4.14 HUD Loan. If all applicable HUD Approvals have been denied, or
have not been obtained on or before November 1, 2006, and the Agreement and Plan of Merger has not been terminated prior to consummation of the DE Closing, then, as soon thereafter as is permitted by the terms of the HUD Loan, DIA shall prepay
in full the HUD Loan and Sellers (other than Focus DE and DIA) shall pay all prepayment penalties, premiums, costs and expenses assessed under the HUD Loan in connection with such prepayment and if the HUD Loan is so prepaid, Purchaser shall agree
to consummate the DE Transactions under the terms of the Agreement and Plan of Merger so long as all conditions to the DE Closing contained in the Agreement and Plan of Merger shall have otherwise been satisfied or are satisfied at the DE Closing.

  
 ARTICLE 5 
 COVENANTS OF PURCHASER 
  
 5.1 Purchaser’s Efforts to Close. Purchaser shall use commercially reasonable efforts to satisfy all of the conditions precedent set forth in
Articles 6 and 7 to its or Sellers’ obligations under this Agreement or in Articles 9 and 10 of the Agreement and Plan of Merger to the extent that Purchaser’s action or inaction can control or influence the satisfaction of such
conditions. 
  
 5.2 Confidentiality. Until the applicable
closing, Purchaser shall, and shall cause its employees, representatives and agents (including all parties to whom access is granted pursuant to Section 4.1) to, hold in strict confidence, unless compelled to disclose by judicial or
administrative process or, in the reasonable opinion of Purchaser’s counsel, by other requirements of law, all Confidential Information, Purchaser shall not disclose the Confidential Information to any Person, except as otherwise may be
reasonably necessary to carry out the transactions contemplated by this Agreement or the Agreement and Plan of Merger, including any business or diligence review by or on behalf of Purchaser, and Purchaser shall not use the Confidential Information
other than as is reasonably necessary or appropriate in connection with 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 43

 
the transactions contemplated by this Agreement or the Agreement and Plan of Merger or to the detriment of any Seller or any Related Person; provided,
however, that the foregoing shall not limit in any way any rights of Purchaser under any other provision hereof or the enforcement by Purchaser of any of its legal rights or claims. For the purposes hereof, “Confidential Information”
shall mean (i) all information of any kind concerning Sellers (or after the Closing and before the DE Closing, only DIA and Focus DE) or the business of the Facilities (or after the Closing and before the DE Closing, the DE Facility) and
existing or relating to any period prior to the applicable effective time, except information (A) ascertainable or obtained from public or published information, (B) received from a third party that is not known by Purchaser to be under an
obligation to any Seller or any Affiliate of any Seller to keep such information confidential, (C) which is or becomes known to the public (other than through a breach of this Agreement or the Agreement and Plan of Merger), or (D) which
was in Purchaser’s possession prior to disclosure thereof to Purchaser in connection herewith, and (ii) all “Individually Identifiable Health Information,” as such term is defined in 45 C.F.R. §160.102, of patients and
others receiving services from the Facilities to the extent relating to any time prior to the applicable effective time. In the event of any termination of this Agreement or the Agreement and Plan of Merger, Purchaser shall, in addition to complying
with this Section 5.2, return to the Seller Representative any and all such Confidential Information (including all notes, memoranda, written or electronic records relating to the same (without maintaining copies thereof) and Individually
Identifiable Health Information in Purchaser’s possession without retaining copies thereof. Notwithstanding the foregoing or Section 12.8, Purchaser shall have the right to issue a press release announcing the execution of this Agreement,
the Agreement and Plan of Merger and the Lighthouse Purchase Agreement, which press release shall be in form and substance reasonably satisfactory to the Seller Representative. 
  
 5.3 Waiver of Bulk Sales Law Compliance. Subject to Section 10.2(g), Purchaser hereby waives compliance by
Sellers with the requirements, if any, of Article 6 of the Uniform Commercial Code as in force in any state in which any of the Assets are located and all other similar laws applicable to bulk sales and transfers. 
  
 5.4 Required Approvals; Other Actions. Between the Execution Date and
the consummation of the Closings, Purchaser shall (a) make as promptly as practicable all filings required by applicable law to be made by it or any of its Affiliates in order to consummate the transactions contemplated hereby or the Agreement
and Plan of Merger (including making all filings and submissions under any applicable Antitrust Laws), (b) comply at the earliest practicable date with any request for additional information or documentary material (or any similar request for
information and/or documents) respectively received by Purchaser or any Seller, or any of their respective Affiliates, from the FTC, the Antitrust Division of the DOJ, or any other governmental authority pursuant to any applicable Antitrust Law in
connection with the transactions contemplated hereby or by the Agreement and Plan of Merger, (c) promptly inform the Seller Representative of any material communication made by Purchaser to, or received by Purchaser from, the FTC, the DOJ or
any other governmental authority regarding any of the transactions contemplated hereby or by the Agreement and Plan of Merger, (d) cooperate in connection with any filing under applicable Antitrust Law and in connection with resolving any
investigation or other inquiry concerning the transactions contemplated hereby or by the Agreement and Plan of Merger, commenced by the FTC, the DOJ, any state attorney general or any other governmental authority pursuant to any applicable Antitrust
Law, and (e) cooperate with Sellers and use commercially reasonable efforts to obtain all consents 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 44

 
required to be obtained under applicable Antitrust Laws to permit the consummation of the transactions contemplated hereby or in the Agreement and Plan of
Merger, and with respect to all other filings any Seller or Purchaser elects to make or is required to make in connection with the transactions contemplated hereby or by the Agreement and Plan of Merger. Notwithstanding the foregoing or anything
else in this Agreement, nothing in this Agreement or in the Agreement and Plan of Merger shall require Purchaser or any of its Affiliates to dispose of or make any change in any portion of its business or to incur any other similar burden to obtain
any Governmental Approval. 
  
 5.5 Financing. Immediately
upon the execution of this Agreement, Purchaser shall diligently pursue and use its commercially reasonable efforts to obtain financing from one or more third parties in an aggregate amount sufficient to enable Purchaser to meet its obligation to
pay the Aggregate Purchase Price as contemplated by this Agreement and the Agreement and Plan of Merger, and to pay the purchase price pursuant to the Lighthouse Purchase Agreement, on or before January 31, 2006. 
  
 ARTICLE 6 
 CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLERS 
  
 Sellers’ obligation to sell the Assets and to close the transactions contemplated by this Agreement shall be subject to the satisfaction of each of
the following conditions at or prior to the Closing except to the extent specifically waived in writing by the Seller Representative in whole or in part at or prior to the Closing: 
  
 6.1 Accuracy of Representations and Warranties. Each representation and warranty of Purchaser in this Agreement shall
have been accurate in all material respects as of the date of this Agreement and shall be accurate in all material respects as of the time of the Closing as if then made. 
  
 6.2 Purchaser’s Performance. Each covenant and obligation that Purchaser is required to perform or to comply
with pursuant to this Agreement at or prior to the Closing shall have been performed and complied with in all material respects. 
  
 6.3 Governmental Authorizations. Purchaser and Sellers shall have obtained for the benefit of Purchaser all material licenses, permits, approvals,
certificates of need and authorizations from governmental agencies or governmental bodies that are necessary or required for completion of the transactions contemplated by this Agreement. All waiting periods, and any extensions thereof, applicable
to the transactions contemplated hereby under the HSR Act shall have expired or been terminated. 
  
 6.4 Other Consents. All consents, waivers, and approvals listed on Schedule 6.4 shall have been obtained and be in full force and effect.

  
 6.5 Unfavorable Action or Proceeding. On the Closing
Date, no orders, decrees, judgments or injunctions of any court or governmental body shall be in effect, and no claim or Proceeding shall be pending or threatened, which challenge or seek to challenge, or which could reasonably be expected to
prevent or cause the rescission of, the consummation of the transactions contemplated in this Agreement. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 45

 6.6 Signing and Delivery of Instruments. Subject to Section 12.3(b), Purchaser shall have
executed and delivered all documents, instruments and certificates required to be executed and delivered by it pursuant to Section 1.10. 
  
 6.7 Simultaneous Closing Under Lighthouse Purchase Agreement. The closing of the transactions contemplated by the Lighthouse Purchase Agreement
shall be consummated simultaneously with the Closing hereunder. 
  
 ARTICLE 7 
 CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER 
  
 Purchaser’s obligation to purchase the Assets and to close the
transactions contemplated by this Agreement shall be subject to the satisfaction of each of the following conditions at or prior to the Closing except to the extent specifically waived in writing by Purchaser in whole or in part at or prior to the
Closing: 
  
 7.1 Accuracy of Representations and
Warranties. Each representation and warranty of any Seller in this Agreement shall have been accurate in all material respects as of the date of this Agreement, and shall be accurate in all material respects as of the time of the Closing as if
then made giving effect to any supplement to the Disclosure Schedules delivered to Purchaser at or prior to Closing. In addition, for purposes of this Section 7.1, each of the representations and warranties in Sections 2.2 and 2.4, and each of
the representations and warranties of any Seller in this Agreement that contains an express materiality qualification, shall have been accurate in all respects as of the time of the Closing as if then made giving effect to any supplement to the
Disclosure Schedules delivered to Purchaser at or prior to Closing. 
  
 7.2 Seller’s Performance. Each covenant and obligation that any Seller is required to perform or to comply with pursuant to this Agreement at or prior to the Closing shall have been performed and complied with in all material
respects. 
  
 7.3 Governmental Authorizations. Purchaser
and Sellers shall have obtained all material licenses, permits, approvals, certificates of need and authorizations from governmental agencies or governmental bodies that are necessary or required for completion of the transactions contemplated by
this Agreement, and the operation of the Facilities by Purchaser after the Closing. All waiting periods, and any extensions thereof, applicable to the transactions contemplated hereby under the HSR Act shall have expired or been terminated.

  
 7.4 Unfavorable Action or Proceeding. On the Closing
Date, no orders, decrees, judgments or injunctions of any court or governmental body shall be in effect, and no claim or Proceeding shall be pending or threatened, which challenge or seek to challenge, or which could reasonably be expected to
prevent or cause the rescission of, the consummation of the transactions contemplated in this Agreement. 
  
 7.5 Required Consents. All Contract and Lease Consents shall have been received or obtained in form and substance reasonably satisfactory to
Purchaser without the imposition of any unreasonable burdens or conditions materially adverse to Purchaser and shall be in full force and effect, unless (a) Sellers shall have provided to Purchaser the benefit of such arrangements without the
consent of such third party and in a manner reasonably satisfactory to Purchaser or (b) the absence of such consent would not have a Material Adverse Effect upon any Seller or 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 46

 
Facility, or adversely affect in any material respect Purchaser or the operation of any Facility by Purchaser after the Closing in light of Section 9.3.
Notwithstanding the immediately preceding sentence, those certain Contract and Lease Consents, consents, waivers and approvals listed on Schedule 7.5 shall have been obtained in form and substance reasonably satisfactory to Purchaser without
the imposition of any unreasonable burdens or conditions materially adverse to Purchaser and shall be in full force and effect. 
  
 7.6 No Material Adverse Change. There shall not have been any Material Adverse Change with respect to any Seller or Facility subsequent to the
Execution Date. 
  
 7.7 Disclosure Schedules. Sellers shall
have updated the Disclosure Schedules in accordance with the requirements of Section 4.8 hereof. 
  
 7.8 Real Property Title Matters. 
  
 (a) Purchaser shall have received a pro forma A.L.T.A. extended Owner’s Title Policy with respect to each parcel of the Real Property
(collectively, the “Title Policies”) issued to Purchaser covering the Real Property in the amount of the full insurable value of such parcel of the Real Property, and which contains such endorsements as are customary and reasonable in the
counties where such parcel of the Real Property is located and no exceptions other than the Permitted Encumbrances, and which is reasonably satisfactory to Purchaser in all respects. 
  
 (b) Sellers shall have delivered full and complete releases in recordable form of the Liens listed in
Schedule 7.8(b) (or a commitment from such lenders to deliver releases upon receipt of payment in full of the debt secured), and Sellers shall have satisfied or complied with all of the requirements and other matters set forth in
Schedule B-Sections 1 and 2 of the Title Commitments which are identified to be satisfied or complied with by any Seller. 
  
 7.9 Milestones Program Agreement. Sellers shall have obtained an amendment, in form and substance reasonably satisfactory to Purchaser, to that
certain Management Services Agreement dated as of March 10, 2005, by and between Focus FL and Milestones In Recovery, Inc., which amendment shall (a) permit the assignment of such agreement to Purchaser or its Designee, and (b) amend
such agreement so that nothing therein shall restrict Purchaser, its Designee or any of their respective Affiliates (as the assignee of Focus FL under such agreement after Closing) from owning or operating any eating disorder program at any facility
owned or operated by any of them so long as such eating disorder program is not similar to the Milestones Residential Treatment Program provided by Milestones In Recovery, Inc. pursuant to the Management Services Agreement referred to above in this
Section 7.9. 
  
 7.10 Facility Repairs. The Facility
Repairs shall have been completed by Sellers to the reasonable satisfaction of Purchaser. 
  
 7.11 [Reserved]. 
  
 7.12
APE Contracts. Sellers shall have amended the Seller APE Leases to the reasonable satisfaction of Purchaser, such that effective as of the Effective Time, none of the Facility Workers will be leased to any Seller pursuant to such leases other
than the Facility Workers at the DE Facility. Purchaser and APE shall have entered into an agreement, in form 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 47

 
and substance reasonably satisfactory to Purchaser, for the lease of the Facility Workers by APE (other than the Facility Workers at the DE Facility) to
Purchaser or its Designees commencing as of the Effective Time. 
  
 7.13 Signing and Delivery of Instruments. Each Seller shall have executed and delivered all documents, instruments and certificates required to be executed and delivered by it pursuant to Section 1.9. 
  
 7.14 Simultaneous Closing Under Lighthouse Purchase Agreement. The
closing of the transactions contemplated by the Lighthouse Purchase Agreement shall be consummated simultaneously with the Closing hereunder. 
  
 ARTICLE 8 
 TERMINATION

  
 8.1 Termination. This Agreement may be terminated
at any time prior to Closing: 
  
 (a) by the
mutual written consent of Purchaser and the Seller Representative; 
  
 (b) by Purchaser if a material breach of this Agreement or the Agreement and Plan of Merger has been committed by any Seller and such breach has not been (i) waived by Purchaser or (ii) cured by Sellers to
the reasonable satisfaction of Purchaser within fifteen (15) business days after notice from Purchaser to the Seller Representative which describes the nature of such breach; 
  
 (c) by the Seller Representative if a material breach of this Agreement or the Agreement and Plan of Merger
has been committed by Purchaser and such breach has not been (i) waived by the Seller Representative or (ii) cured by Purchaser to the reasonable satisfaction of the Seller Representative within fifteen (15) business days after notice
from the Seller Representative to Purchaser which describes the nature of such breach; 
  
 (d) by either Purchaser or the Seller Representative if the Lighthouse Purchase Agreement is terminated prior to the closing of the
transactions contemplated thereby; 
  
 (e) by
Purchaser if the Closing has not occurred on or before February 1, 2006, unless Purchaser is in material breach of this Agreement or the Agreement and Plan of Merger; or 
  
 (f) by the Seller Representative if the Closing has not occurred on or before February 1, 2006, unless
any Seller is in material breach of this Agreement or the Agreement and Plan of Merger; it being acknowledged that pursuant to Section 8.1(f) of the Original Purchase Agreement Purchaser delivered Three Hundred Thirty-Four Thousand Seven
Hundred Fifteen Dollars ($334,715) (the “Extension Escrow Deposit”) by wire transfer to the Escrow Agent for deposit in escrow pursuant to the Execution Date Escrow Agreement prior to 5:00 p.m., Central time, on December 21, 2005 in
order to extend the date in this Section to February 1, 2006 from the date stated in the Original Purchase Agreement. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 48

 8.2 Effect of Termination; Other Matters. 
  
 (a) Except as expressly provided below in this
Section 8.2, if this Agreement is terminated pursuant to Section 8.1, this Agreement and the Agreement and Plan of Merger shall be void and all obligations of the parties hereto and thereto under this Agreement and the Agreement and Plan
of Merger shall terminate; provided, however, that the obligations in Section 5.2, this Section 8.2 and Article 12 (except for those in Section 12.13) shall survive any termination of this Agreement and the Agreement and
Plan of Merger and the obligations in Section 1.7(ii) relating to repayment of the Additional Closing Purchase Price Payment and Section 1.12(f) of this Agreement shall survive termination of the Agreement and Plan of Merger. 

 
 (b) Notwithstanding Section 8.2(a): 
  
 (i) If this Agreement is terminated pursuant to any
provision of Section 8.1, Sellers shall be entitled to retain the LOI Deposit. 
  
 (ii) If (A) this Agreement is terminated (i) pursuant to Section 8.1(c), or (ii) pursuant to Section 8.1(d) as a
result of termination of the Lighthouse Purchase Agreement pursuant to Section 8.1(c) of the Lighthouse Purchase Agreement, and (B) at the time of any such termination of this Agreement referred to in the preceding clause (A),
(i) no Seller is in material breach of this Agreement or the Agreement and Plan of Merger and (ii) no Lighthouse Entity is in material breach of the Lighthouse Purchase Agreement, then Sellers shall be entitled (x) to retain the LOI
Deposit and (y) to receive a payment under the Execution Date Escrow Agreement of all escrow funds then held in escrow pursuant to the Execution Date Escrow Agreement. 
  
 (iii) If (A) this Agreement is terminated (i) pursuant to Section 8.1(e) solely because the
condition set forth in Section 7.3 is not satisfied through no fault of any Seller, or (ii) pursuant to Section 8.1(d) as a result of the termination of the Lighthouse Purchase Agreement pursuant to Section 8.1(e) of the
Lighthouse Purchase Agreement solely because the condition set forth in Section 7.3 of the Lighthouse Purchase Agreement is not satisfied through no fault of any Lighthouse Entity, and (B) at the time of any such termination of this
Agreement or the Lighthouse Purchase Agreement referred to in the preceding clause (A), (i) Purchaser has deposited the Extension Escrow Deposit in escrow pursuant to the Execution Date Escrow Agreement, (ii) no Seller is in material
breach of this Agreement or the Agreement and Plan of Merger, and (iii) no Lighthouse Entity is in material breach of the Lighthouse Purchase Agreement, then Sellers shall be entitled (x) to retain the LOI Deposit and (y) to receive a
payment under the Execution Date Escrow Agreement in an amount equal to the amount of the Extension Escrow Deposit. 
  
 (iv) If (A) this Agreement is terminated (i) pursuant to Section 8.1(f) solely because the condition set forth in
Section 6.3 is not satisfied through no fault of any Seller, or (ii) pursuant to Section 8.1(d) as a result of the termination of the Lighthouse Purchase Agreement pursuant to Section 8.1(f) of the Lighthouse Purchase Agreement
solely because the condition set forth in Section 6.3 of the Lighthouse Purchase Agreement is not satisfied through no fault of any Lighthouse Entity, and (B) at the time of any such termination of this Agreement or the Lighthouse
Purchase Agreement referred to in the preceding clause (A), (i) Purchaser has deposited the Extension Escrow Deposit in escrow pursuant to the Execution Date Escrow Agreement, (ii) no Seller is in material breach of this Agreement or the
Agreement and Plan of 

  

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Merger, and (iii) no Lighthouse Entity is in material breach of the Lighthouse Purchase Agreement, then Sellers shall be entitled (x) to retain the
LOI Deposit and (y) to receive a payment under the Execution Date Escrow Agreement in an amount equal to the amount of the Extension Escrow Deposit. 
  
 (v) Except as otherwise required by clause (b)(ii), (b)(iii) or (b)(iv) of this Section 8.2, upon any termination of this Agreement
pursuant to Section 8.1, all remaining escrow funds held in escrow pursuant to the Execution Date Escrow Agreement shall be paid to Purchaser. 
  
 (vi) If this Agreement is terminated pursuant to Section 8.1(b) or Section 8.1(c), Sellers or Purchaser, as the case may be,
shall be liable for damages caused by such breach of this Agreement or the Agreement and Plan of Merger notwithstanding the return of escrow funds to Purchaser pursuant to clause (b)(v) of this Section 8.2. Notwithstanding the preceding
provisions of this clause (b)(vi) or anything herein to the contrary, Sellers shall not be entitled to recover damages upon any termination of this Agreement covered by the preceding provisions of this clause (b)(vi) except to the extent that such
aggregate damages suffered by all Sellers that would otherwise be recoverable by them pursuant to the terms of this clause (b)(vi) exceeds the sum of (A) the LOI Deposit and (B) the amount of escrow funds, if any, paid to Sellers pursuant
to the Execution Date Escrow Agreement. 
  
 ARTICLE 9

 POST-CLOSING MATTERS 
  
 Each of the parties hereto covenants as follows after the Closings of the transactions contemplated by this Agreement and the Agreement and Plan of
Merger, commencing in each case after the respective effective time of such closing (except that, after the DE Closing, for purposes of this Article 9, DIA shall not be deemed to be a Seller but rather shall be deemed to be the same as Purchaser to
the extent the context permits): 
  
 9.1 Excluded Assets and
Excluded Liabilities. Subject to Sections 9.4, 9.5 and 11.2, any asset, liability, remittance, mail or other communication that constitutes an Excluded Asset or an Excluded Liability (a) pursuant to the terms of this Agreement or the
Agreement and Plan of Merger, (b) as otherwise determined by mutual written agreement of Purchaser and the Seller Representative, or (c) absent such agreement, as determined by adjudication by a court or similar tribunal, and which comes
into the possession, custody or control of Purchaser, shall within five (5) business days following receipt by Purchaser be delivered by it to the Seller Representative. Except for such delivery obligation, Purchaser shall not have any right,
title or interest in or obligation or responsibility with respect to such asset, liability, remittance, mail or communication except that pending delivery thereof to the Seller Representative Purchaser shall hold such asset in trust for the benefit
of Sellers. 
  
 9.2 Preservation and Access to Records After
the Closing. 
  
 (a) From the respective
Closing Dates until seven (7) years after such closing date or such longer period as required by law (the “Document Retention Period”), Purchaser shall keep and preserve all medical records, patient records, medical staff records and
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applicable effective time, but excluding any books and records which are among the Excluded Assets. Purchaser will afford to the Seller Representative and
its representatives, including its counsel and accountants, full and complete access to, and copies of, such records with respect to time periods prior to such effective time (including access to records of patients treated at the Facilities prior
to such effective time) during normal business hours after such effective time, to the extent reasonably requested by Sellers for business purposes and all in such manner as not to unreasonably interfere with the operations of the Facilities. After
the expiration of the Document Retention Period, if Purchaser intends to destroy or otherwise dispose of any of the documents covered by this Section 9.2(a), Purchaser shall provide written notice to the Seller Representative of
Purchaser’s intention no later than forty-five (45) days prior to the date of such intended destruction or disposal. During such forty-five (45) day period, the Seller Representative shall have the right, at Sellers’ sole cost,
to take possession of such documents to be destroyed or disposed of by Purchaser. To the extent the Seller Representative does not take possession of such documents during such forty-five (45) day period, Purchaser shall be free to destroy or
otherwise dispose of such documents upon the expiration of such forty-five (45) day period. The confidentiality obligations of Section 5.2 applicable to Purchaser shall apply to the Seller Representative (and its representatives) and
Sellers with respect to access to and use of Purchaser’s books and records pursuant to this Section, except that such obligations do not expire at the respecting closing. 
  
 (b) Purchaser and its representatives shall be given access by Sellers during normal business hours to the
extent reasonably needed by Purchaser for business purposes to all documents, records, correspondence, work papers and other documents retained by Sellers pertaining to any of the Assets or with respect to the operation of the Facilities prior to
the respective effective time, all in such manner as to not interfere unreasonably with Sellers’ business. 
  
 9.3 Provision of Benefits of Contracts and Leases. If, as of the applicable Effective Times for assignment of a Contract or Lease, Sellers have not
obtained a required Contract and Lease Consent or Purchaser is unable to enter into a new third-party contract with respect to such Contract or Lease, and a closing is nevertheless consummated, then (i) such Contract or Lease shall not be
assigned to Purchaser as part of the Assets, and the Assumed Liabilities shall not include such Contract or Lease or any liability or obligation arising thereunder, (ii) until such Contract and Lease Consent is obtained or a new third-party
contract is obtained, Sellers shall use reasonable commercial efforts to provide Purchaser the benefits of such Contract or Lease only with respect to the applicable Facility and cooperate in any reasonable and lawful arrangement designed to provide
such benefits to Purchaser, and (iii) from and after such closing, Purchaser shall use reasonable commercial efforts to perform, on behalf of Sellers, the obligations of the applicable Seller thereunder or in connection therewith for so long as
Purchaser is receiving the benefits thereof as contemplated by the preceding clause (ii), limited to those obligations of the applicable Facility thereunder that arise after the applicable effective time, but only to the extent that such action
would not result in a material default under the applicable Contract or Lease and such obligation would have been an obligation of Purchaser had it received the required Contract and Lease Consent with respect to such Contract or Lease or had it
entered into a new third-party contract on substantially similar terms as the applicable Contract or Lease. 
  

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 9.4 Misdirected Payments, Etc. Subject to Section 9.5, after each closing, Sellers and
Purchaser covenant and agree to remit, with reasonable promptness, to the other any payments received, which payments are on or in respect of accounts or notes receivable owned by the other as a result of such closing. In addition, and without
limitation, in the event of a determination by any governmental or third-party payor that payments to any Seller or any Facility resulted in an overpayment or other determination that funds previously paid by any program or plan to any Seller or any
Facility must be repaid, Sellers shall be solely responsible for repayment of said monies (or defense of such actions) if such overpayment or other repayment determination was for services rendered at or prior to the applicable effective time and
Purchaser shall be responsible for repayment of said monies (or defense of such actions) if such overpayment or other repayment determination was for services rendered at the Facilities after the applicable effective time. In the event that,
following the applicable effective time, Purchaser suffers any offsets against reimbursement under any third-party payor or reimbursement programs due to Purchaser, relating to amounts owing under any such programs by any Seller or any of its
Affiliates and not included as Current Liabilities in the Closing Date Net Assets Calculation, Sellers shall promptly upon demand from Purchaser pay to Purchaser the amounts so billed or offset. In the event that, following the applicable effective
time, any Seller suffers any offsets against reimbursement under any third-party payor or reimbursement programs due to such Seller, relating to amounts owing under any such programs by Purchaser or any of its Affiliates and not relating to any act
or occurrence at or prior to the applicable effective time, Purchaser shall promptly upon demand from the Seller Representative pay to Sellers the amounts so billed or offset. Any remittances or payments to be made by Purchaser to any Seller
pursuant to this Section 9.4 shall be made to the Seller Representative for further delivery by the Seller Representative to the Seller or Sellers entitled thereto. 
  
 9.5 Collection of Receivables. In order to protect the ownership by Purchaser of all Accounts Receivable acquired
pursuant to this Agreement and the Agreement and Plan of Merger and to facilitate the receipt by Purchaser of the proceeds of the Accounts Receivable from time to time as requested by Purchaser after the applicable Effective Times of the Closings,
Sellers shall send notices to the account debtors on the Accounts Receivable in the form or forms specified by Purchaser (and reasonably acceptable to Sellers’ counsel) directing the account debtors to make payments on such Accounts Receivables
to such location or locations as are specified in the notices. Sellers agree to cause each financial institution that maintains any Deposit Account (hereafter defined) to have its records reflect that only those Persons designated by Purchaser are
authorized to make withdrawals or otherwise transfer funds from any depository account maintained by any Seller at any financial institution to which payments (“Payments”) on any Accounts Receivable are credited (“Deposit
Account”), whether such Payments are made by check or other instrument payable to any Seller (each a “Check Payment”) that are delivered to a lockbox or Deposit Account or by a funds transfer within the meaning of Article 4A of the
Texas Uniform Commercial Code (“Funds Transfer”); and such financial institutions are irrevocably authorized to transfer funds from such Deposit Accounts pursuant to the instructions of such designees. Any financial institution receiving
any Check Payment through lockbox or otherwise may endorse the Check Payment in the name of the relevant Seller that is the payee in blank or to Purchaser immediately upon receipt and, without crediting such Check Payment to any account of any
Seller, deposit such Check Payment in an account maintained by Purchaser. Any financial institution receiving a Funds Transfer may, to the extent not prohibited by law, credit such Funds Transfer to an account maintained by Purchaser rather than to
the Deposit Account specified in the payment order related to such 

  

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Funds Transfer. Sellers agree (a) that so long as any of them holds or is deemed to hold any proceeds of such Accounts Receivable, such proceeds shall
be held in trust for Purchaser and shall not be commingled with any property of any Seller, (b) to deliver to Purchaser or such other Person as may be specified by Purchaser such proceeds promptly upon demand by Purchaser, and (c) to
notify each financial institution that may receive any such proceeds for credit to any Deposit Account that no Seller claims any interest therein and that all such proceeds are the exclusive property of Purchaser. To the extent any Deposit Account
is the “pay to” account designated as such with any payor of any Accounts Receivable, Sellers shall keep each such Deposit Account open and in existence until the expiration of two-hundred seventy (270) days after the respective
effective time or such earlier date as is approved by Purchaser in writing, and shall take no action to change such “pay to” account designation except as directed in writing by Purchaser. Effective from and after the applicable effective
time, Purchaser has the right to attempt to collect, at no cost to Sellers but in Sellers’ names if Purchaser deems appropriate, all Accounts Receivable, and, to the extent necessary to effect collection Sellers appoint Purchaser as
Sellers’ exclusive collection agent with respect to such Accounts Receivables. 
  
 9.6 Termination Cost Reports. Sellers shall file with Government Programs and third-party payors any cost reports relating to periods ending on or before the applicable effective time or required to be filed as
a result of the consummation of (a) the transfer of the Assets to Purchaser or the Merger or the transfer of the Focus DE Assets to Purchaser pursuant to the Agreement and Plan of Merger and (b) the transactions contemplated by this
Agreement or the Agreement and Plan of Merger (the “Seller Cost Reports”). All such Seller Cost Reports shall be filed by Sellers in a manner that is consistent with applicable Legal Requirements. Sellers shall provide Purchaser with a
reasonable opportunity to review such reports before filing. 
  
 9.7 Change of Sellers’ Name. Not later than thirty (30) days after the Closing Date, each Seller shall change its corporate name to a name which does not include any of the words “Focus,” “Lighthouse,”
“High Point,” “Meadowood” or “Jedburg;” provided, however, that Sellers shall not be required to change the name of Focus DE until after the DE Closing or the name of Focus Healthcare of Tennessee, LLC
(but such name may only be used following the Closing in connection with the operation of the behavioral health facility operated by Focus Healthcare of Tennessee, LLC at the Execution Date and located in Chattanooga, Tennessee). 
  
 9.8 Other Actions. 
  
 (a) After the respective Closing Dates, Sellers (except for
DIA if the DE Closing occurs) shall pay and perform, or make adequate provision for the payment and performance of, as and when due, all Excluded Liabilities and other liabilities and obligations of Sellers under this Agreement and the Agreement and
Plan of Merger. Purchaser shall pay and perform and make adequate provision for the payment and performance of, as and when due, all Assumed Liabilities and other liabilities and obligations of Purchaser under this Agreement and the Agreement and
Plan of Merger. 
  
 (b) On or before the
respective Closing Dates, Sellers shall remove all Excluded Assets (including the DIA Excluded Assets and the Focus DE Excluded Assets as defined in the Agreement and Plan of Merger) from all Facilities and other Real Property or leased real
property to be acquired or occupied by Purchaser hereunder. Such removal shall be done in such manner as to avoid any damage to the Facilities and other properties to be occupied 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 53

 
by Purchaser and any disruption of the business operations to be conducted by Purchaser after the respective closing. The cost to repair any damage to the
Assets or to the Facilities or other properties resulting from such removal shall be paid by Sellers to Purchaser at the respective closing. If Sellers fail to remove the Excluded Assets as required by this Section prior to the applicable closing
date, Purchaser, subsequent to providing the Seller Representative with notice and the reasonable opportunity to remove such Excluded Assets, shall have the right, but not the obligation, (a) to remove the Excluded Assets at Sellers’ sole
cost and expense, (b) to store the Excluded Assets and to charge Sellers all storage costs associated therewith, (c) to treat the Excluded Assets as unclaimed and to proceed to dispose of the same under the laws governing unclaimed
property, or (d) to exercise any other right or remedy conferred by this Agreement or the Agreement and Plan of Merger or otherwise available at law or in equity. Sellers shall promptly reimburse Purchaser for all costs and expenses incurred by
Purchaser in connection with any Excluded Assets not removed from the Facilities by Sellers on or before the applicable closing date. For purposes of this Section, the term “Sellers,” with respect to DIA under the Agreement and Plan of
Merger, shall mean Focus DE. 
  
 (c) After each
closing, each Party shall cooperate with the other and its counsel in the contest or defense of, and make available to the other Party each Party’s personnel and provide any testimony and reasonable access to each Party’s books and records
in connection with, any Proceeding involving or relating to (a) any transaction contemplated hereby or in the Agreement and Plan of Merger, or (b) any action, activity, circumstance, condition, conduct, event, fact, failure to act,
incident, occurrence, plan, practice, situation, status or transaction on or before the applicable closing date involving any Party or any business, asset or activity of any Party. 
  
 (d) Purchaser and the appropriate Seller (and/or its Affiliates) shall use commercially reasonable efforts
to negotiate, execute and deliver a Transition Services Agreement, in form and substance reasonably satisfactory to Purchaser and the Seller Representative, pursuant to which Purchaser will provide Sellers with VPN access to the servers listed in
Schedule 1.2(b) and associated software, and to the data associated therewith to the extent relating exclusively to the operations of the behavioral health facilities subject to the Right of First Refusal Agreements, for a period of one
hundred eighty (180) days following the Effective Time. 
  
 (e) Sellers (other than DIA if the DE Closing occurs), at their sole expense, shall pay, as and when due, all costs payable to or required by HUD or the lender of the HUD Loan in connection with the granting of
approval or consent by HUD or such lender to the acquisition by Purchaser of DIA which owns the DE Facility subject to the HUD Loan. 
  
 9.9 Certain Excluded Assets. After the applicable closing, Purchaser agrees to attempt to collect on Sellers’ behalf, and at no cost to
Sellers, those certain accounts receivable listed at item 4 on Schedule 1.3(m) (the “Excluded Government Receivables”). Purchaser shall apply to the collection of the Excluded Government Receivables pursuant to this Section 9.9
the level of diligence, effort and resources that Purchaser ordinarily and customarily applies in the collection of its own accounts receivable; provided, however, that (a) Purchaser does not guarantee the extent to which any Excluded
Government Receivables will be collected, (b) Purchaser shall not be required to institute any legal or other proceedings to collect any Excluded Government Receivables, (c) Purchaser shall not be obligated to incur any costs and expenses

  

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payable to third parties in any such collection efforts, and (d) the methods of collecting Excluded Government Receivables shall at all times be within
the reasonable discretion of Purchaser and in accordance in all material respects with applicable law. 
  
 ARTICLE 10 
 SURVIVAL AND INDEMNIFICATION 
  
 10.1 Survival. All representations, warranties, covenants and
obligations in this Agreement, the Disclosure Schedules, the supplements to the Disclosure Schedules, or the certificates, writings and instruments delivered pursuant to Section 1.9 or Section 1.10 (including the Bills of Sale and the
Limited Warranty Deeds) or in the Agreement and Plan of Merger or the certificates, writings and instruments delivered pursuant to Sections 4.2 and 4.3 of the Agreement and Plan of Merger, shall survive the respective Closings and the consummation
of the transactions contemplated hereby and thereby, subject to Section 10.5. 
  
 10.2 Indemnification and Reimbursement by Sellers. Subject to the proviso at the end of this Section 10.2, each Seller, jointly and severally, shall indemnify and hold harmless Purchaser, DIA (after the DE
Closing) and each Designee, if any (collectively, the “Purchaser Indemnified Persons”), against, and shall reimburse the Purchaser Indemnified Persons for, any loss, liability, claim, demand, obligation, judgment, damage, cost, fee,
expense (including reasonable attorneys’ fees and expenses), penalties or fines, whether or not involving a Third-Party Claim (collectively, “Damages”), arising from or in connection with: 
  
 (a) any breach of any representation or warranty made by any
Seller in (i) this Agreement or the Agreement and Plan of Merger, (ii) the Disclosure Schedules, as supplemented at or prior to Closing pursuant to Section 4.8, (iii) the certificates delivered pursuant to Section 1.9(f)
hereof or Section 4.2(d) of the Agreement and Plan of Merger (for this purpose, each such certificate under this Agreement will be deemed to have stated that each Seller’s representations and warranties in this Agreement fulfill the
requirements of Section 7.1 as of the Closing Date as if made on the Closing Date after giving effect to any supplement to the Disclosure Schedules delivered to Purchaser pursuant to Section 4.8 at or prior to Closing and, in the case of
the certificates delivered under the Agreement and Plan of Merger, each such certificate will be deemed to have stated that each Seller’s representations and warranties in the Agreement and Plan of Merger fulfill the requirements of Article 10
thereof relating to its respective representations and warranties as of the date of the DE Closing as if made on the date of the DE Closing after giving effect to any supplement to the Disclosure Schedules delivered to Purchaser at or prior to the
DE Closing), (v) any transfer instrument, or (vi) any other certificate, writing or instrument delivered by any Seller pursuant to Section 1.9 hereof or under Section 4.2 of the Agreement and Plan of Merger; 
  
 (b) any breach of any covenant or obligation of any Seller
in this Agreement or in any certificate, writing or instrument delivered by any Seller pursuant to Section 1.9; 
  
 (c) any breach of any covenant or obligation of DIA or Focus DE in the Agreement and Plan of Merger or in any certificate, writing or
instrument delivered by DIA or Focus DE pursuant to Section 4.2 of the Agreement and Plan of Merger; 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 55

 (d) the ownership or operation of any of the Assets, or any act or omission of any
Seller, prior to the respective Effective Times under this Agreement and the Agreement and Plan of Merger, other than the Assumed Liabilities and, after the effective time of the DE Closing, the Focus DE Assumed Liabilities and the DIA Retained
Liabilities as described in the Agreement and Plan of Merger; 
  
 (e) any claim of any Person for brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding made, or alleged to have been made, by such Person with any Seller (or any
Person acting on behalf of any Seller) in connection with any of the transactions contemplated by this Agreement or the Agreement and Plan of Merger; 
  
 (f) subject to the provisions of Section 12.9 regarding sales or transfer Taxes, all Taxes resulting from or payable in connection
with the sale of the Assets pursuant to this Agreement, or the Merger or the sale of the Focus DE Assets pursuant to the Agreement and Plan of Merger, regardless of the Person on whom such Taxes are imposed by any Legal Requirement; 
  
 (g) any noncompliance with any bulk sales laws or fraudulent
transfer law in respect of the transactions contemplated hereby or by the Agreement and Plan of Merger; 
  
 (h) any liability under the WARN Act or any similar Legal Requirement that may result from an “Employment Loss,” as defined by
29 U.S.C. § 2101(a)(6), caused by any action of any Seller at or prior to the respective closing applicable to such Seller; 
  
 (i) any Plan adopted, established or maintained by any Seller; 
  
 (j) any Excluded Assets or any DIA Excluded Assets or Focus DE Excluded Assets under the terms of the
Agreement and Plan of Merger; or 
  
 (k) any
Excluded Liabilities or any DIA Excluded Liabilities or Focus DE Excluded Liabilities under the terms of the Agreement and Plan of Merger; 
  
 provided, however, that for purposes of the introduction to this Section (but not elsewhere in this Section), after the DE Closing DIA shall no longer be deemed a
Seller but shall instead be a “Purchaser Indemnified Person.” 
  
 10.3 Indemnification and Reimbursement by Purchaser. Purchaser shall indemnify and hold harmless Sellers (other than DIA after the DE Closing) against, and shall reimburse Sellers (other than DIA after the DE Closing) for, any
Damages arising from or in connection with: 
  
 (a) any breach of any representation or warranty made by Purchaser in this Agreement or the Agreement and Plan of Merger or in any certificate, writing or instrument delivered by Purchaser pursuant to Section 1.10 hereof or
Section 4.3 of the Agreement and Plan of Merger; 
  
 (b) any breach of any covenant or obligation of Purchaser in this Agreement or in any certificate, writing or instrument delivered by Purchaser pursuant to Section 1.10 or in 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 56

 
the Agreement and Plan of Merger or in any certificate, writing or instrument delivered by Purchaser pursuant to Section 4.3 of the Agreement and Plan
of Merger; 
  
 (c) any claim of any Person for
brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding made, or alleged to have been made, by such Person with Purchaser (or any Person acting on Purchaser’s behalf) in connection with any
of the transactions contemplated by this Agreement or the Agreement and Plan of Merger; 
  
 (d) any Assumed Liabilities or, after the DE Closing, the Focus DE Assumed Liabilities and the DIA Retained Liabilities as described in
the Agreement and Plan of Merger; 
  
 (e) the
ownership and operation of the Assets or the Facilities subsequent to the respective effective time of the applicable closing, other than Excluded Liabilities and, after the effective time of the DE Closing, the Focus DE Excluded Liabilities and the
DIA Excluded Liabilities as described in the Agreement and Plan of Merger; or 
  
 (f) any liability under the WARN Act or any similar Legal Requirement that may result from an “Employment Loss,” as defined by 29 U.S.C. § 2101(a)(6), caused by any action of Purchaser. 

 
 10.4 Limitations On Amount. 
  
 (a) Sellers (excluding DIA if the DE Closing occurs) shall
have no liability with respect to claims under Section 10.2(a) until the total of all Damages with respect to all such matters exceeds Two Hundred Thousand Dollars ($200,000) and then only for the amount by which such Damages exceed Two Hundred
Thousand Dollars ($200,000). The maximum aggregate liability of Sellers (excluding DIA as a Seller after the DE Closing) to Purchaser with respect to claims under Section 10.2(a) shall not exceed the sum of (i) Twelve Million Nine Hundred
Thousand Dollars ($12,900,000) plus (ii) twenty percent (20%) of the aggregate amount of the Current Liabilities included in the Closing Date Net Assets Calculation. Notwithstanding the foregoing, this Section 10.4(a) will not apply
to any claims based on fraud. 
  
 (b) Purchaser
will have no liability with respect to claims under Section 10.3(a) until the total of all Damages with respect to all such matters exceeds Two Hundred Thousand Dollars ($200,000) and then only for the amount by which such Damages exceed Two
Hundred Thousand Dollars ($200,000). Notwithstanding the foregoing, this Section 10.4(b) will not apply to any claims based on fraud. 
  
 10.5 Limitations. 
  
 (a) Subject to Section 10.5(e), if the Closing occurs and if the DE Closing occurs, Sellers (excluding DIA if the DE Closing occurs)
will have liability under this Agreement (other than with respect to any claim based on fraud, or any claim arising from or in connection with or relating to any of the Excluded Liabilities or, after the DE Closing, the DIA Excluded Liabilities or
the Focus DE Excluded Liabilities as described in the Agreement and Plan of Merger, or any breach of any of the Specified Representations, it being agreed that any such claim may be brought at any time prior to the expiration of the applicable
statute of limitations), only if on or before the one year anniversary of the Closing (except for claims under 

  

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the Agreement and Plan of Merger, which shall be before the one year anniversary of the DE Closing), a Purchaser Indemnified Person notifies the Seller
Representative of a claim specifying the factual basis of the claim in reasonable detail to the extent then known by such Purchaser Indemnified Person. 
  
 (b) Subject to Section 10.5(e), if the Closing occurs and if the DE Closing occurs, Purchaser will have liability under this
Agreement (other than with respect to any claim based on fraud, or any claim arising from or in connection with any of the Assumed Liabilities or, after the DE Closing, the Focus DE Assumed Liabilities or the DIA Retained Liabilities as described in
the Agreement and Plan of Merger, it being agreed that any such claim may be brought at any time prior to the expiration of the applicable statute of limitations), only if on or before the one year anniversary of the Closing (except for claims under
the Agreement and Plan of Merger, which shall be before the one year anniversary of the DE Closing), the Seller Representative notifies Purchaser of a claim specifying the factual basis of the claim in reasonable detail to the extent then known by
any Seller (excluding DIA if the DE Closing occurs). 
  
 (c) All indemnification payments pursuant to this Article 10 shall be paid by the indemnifying party net of any net Tax benefits or insurance benefits that are actually received by the Party indemnified hereunder with respect to the claim
in question (taking into account any tax or other consequences arising from the payment of the claim, the receipt of the indemnification payment, or the receipt of any insurance benefits). 
  
 (d) Notwithstanding anything to the contrary contained in
this Article 10, Sellers (excluding DIA if the DE Closing occurs) shall have no obligation to make any payments to any Purchaser Indemnified Person pursuant to Section 10.2 (other than from the escrow account established pursuant to the Closing
Date Escrow Agreement) unless and until the escrow account established pursuant to the Closing Date Escrow Agreement shall be exhausted by (i) distributions or payments made under the Closing Date Escrow Agreement, (ii) the amount of
claims made by Purchaser under the Closing Date Escrow Agreement pending resolution thereunder, or (iii) any combination of the matters referred to in the preceding clauses (i) or (ii). 
  
 (e) Except for (i) post-closing covenants contained in
Section 4.4, Article 9, Article 11 or Article 12 hereof or in the corresponding provisions of the Agreement and Plan of Merger, (ii) obligations pursuant to the Closing Date Escrow Agreement, the Noncompetition Agreements, or the
Right of First Refusal Agreements, and (iii) claims based on fraud, in each case as to which the limitations in Sections 10.5(a), 10.5(b), and 10.5(d) shall not apply and as to which the Parties shall have all remedies available to them at law
or in equity, if the Closing occurs and if the DE Closing occurs, the sole and exclusive remedy of the parties hereto for any breach or nonperformance of any provision of this Agreement or the Agreement and Plan of Merger shall be the
indemnification provided by this Article 10. 
  
 (f) Notwithstanding any other provision contained herein to the contrary, no Purchaser Indemnified Person or Seller (excluding DIA if the DE Closing occurs) shall be entitled to indemnification under Section 10.2(a) or
Section 10.3(a) for Damages arising from or in connection with a breach of a representation or warranty if such Indemnified Person had actual knowledge of such breach at any time on or before the respective closing. 
  

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 10.6 Escrow. Upon notice to the Seller Representative specifying in reasonable detail the basis
therefor, Purchaser may give notice under the Closing Date Escrow Agreement of a claim in such amount to which any Purchaser Indemnified Person may be entitled under this Article 10. The failure to give a notice of a claim under the Closing Date
Escrow Agreement will not constitute an election of remedies or limit any Purchaser Indemnified Person in any manner in the enforcement of any other remedies that may be available to it. 
  
 10.7 Third-Party Claims. 
  
 (a) Promptly after receipt by a Seller (excluding DIA if the DE Closing occurs) or a Purchaser Indemnified Person entitled to indemnity
under Section 10.2 or 10.3 (an “Indemnified Person”) of notice of the assertion of a Third-Party Claim against it, such Indemnified Person shall give notice to the Person obligated to indemnify under such Section (an
“Indemnifying Person”) of the assertion of such Third-Party Claim, provided that the failure to notify the Indemnifying Person will not relieve the Indemnifying Person of any liability that it may have to any Indemnified Person, except to
the extent that the Indemnifying Person proves that the defense of such Third-Party Claim is prejudiced by the Indemnified Person’s failure to give such notice. 
  
 (b) If an Indemnified Person gives notice to the Indemnifying Person pursuant to Section 10.7(a) of the
assertion of a Third-Party Claim, the Indemnifying Person, at its sole cost and expense, shall be entitled to participate in the defense of such Third-Party Claim and, to the extent that it wishes (unless (i) the Indemnifying Person is also a
Person against whom the Third-Party Claim is made and the Indemnified Person determines in good faith that joint representation would be inappropriate or (ii) the Indemnifying Person fails to provide reasonable assurance to the Indemnified
Person of its financial capacity to defend such Third-Party Claim and provide indemnification with respect to such Third-Party Claim), to assume the defense of such Third-Party Claim with counsel satisfactory to the Indemnified Person. After notice
from the Indemnifying Person to the Indemnified Person of its election to assume the defense of such Third-Party Claim, the Indemnifying Person shall not, so long as it diligently conducts such defense, be liable to the Indemnified Person under this
Article 10 for any fees of other counsel or any other expenses with respect to the defense of such Third-Party Claim, in each case subsequently incurred by the Indemnified Person in connection with the defense of such Third-Party Claim, other than
reasonable costs of investigation. Notwithstanding the assumption of defense by the Indemnifying Person, the Indemnified Person may, at its sole cost and expense, file any motion, answer or other pleadings that the Indemnified Person may deem
necessary or appropriate to protect its interests or those of the Indemnifying Person and which is not prejudicial, in the reasonable judgment of the Indemnifying Person, to the Indemnifying Person. If requested by the Indemnifying Person, the
Indemnified Person agrees, at the sole cost and expense of the Indemnifying Person, to cooperate with the Indemnifying Person and its counsel in contesting any Third-Party Claim that the Indemnifying Person assumes the defense of and elects to
contest, or, if appropriate and related to the Third-Party Claim in question, in making any counterclaim against the Person asserting the Third-Party Claim, or any cross-complaint against any Person (other than the Indemnified Person or any of its
Affiliates). The Indemnified Person may participate in, but not control, any defense or settlement of any Third-Party Claim controlled by the Indemnifying Person pursuant to this Section 10.7(b), and except as specifically provided in this
Section 10.7(b), the Indemnified Person will bear its own costs and expenses with respect to such participation. If the Indemnifying Person assumes the defense of a 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 59

 
Third-Party Claim, (i) such assumption will conclusively establish for purposes of this Agreement that the claims made in that Third-Party Claim are
within the scope of and subject to indemnification, and (ii) no compromise or settlement of such Third-Party Claim may be effected by the Indemnifying Person without the Indemnified Person’s written consent unless (A) there is no
finding or admission of any violation of any Legal Requirement or any violation of the rights of any Person, (B) the sole relief provided is monetary damages that are paid in full by the Indemnifying Person, and (C) the Indemnified Person
shall have no liability with respect to any compromise or settlement of such Third-Party Claim effected without its written consent. 
  
 (c) Notwithstanding the provisions of Section 10.7(b), if an Indemnified Person determines in good faith that there is a reasonable
probability that a Third-Party Claim may adversely affect it or any of its Affiliates other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, the Indemnified Person may, by notice to the
Indemnifying Person, assume the exclusive right to defend, compromise or settle such Third-Party Claim, but the Indemnifying Person will not be bound by any compromise or settlement of any Third-Party Claim so defended for the purposes of this
Agreement if such compromise or settlement is effected without its written consent (which may not be unreasonably withheld). 
  
 (d) If notice is given to an Indemnifying Person of the assertion of any Third-Party Claim and the Indemnifying Person does not, within
ten (10) days after the Indemnified Person’s notice is given, give notice to the Indemnified Person of its election to assume the defense of such Third-Party Claim, or if the Indemnifying Person gives such a notice but fails to prosecute
diligently or settle the Third-Party Claim, then the Indemnified Person will have the right to defend, at the sole cost and expense of the Indemnifying Person, the Third-Party Claim by all appropriate proceedings. In such event, the Indemnified
Person will have full control of such defense and proceedings, including any compromise or settlement thereof, and the Indemnifying Person will be bound by any determination made in such Third-Party Claim or any compromise or settlement effected by
the Indemnified Person; provided, however, that if requested by the Indemnified Person, the Indemnifying Person agrees, at the sole cost and expense of the Indemnifying Person, to cooperate with the Indemnified Person and its counsel in
contesting any Third-Party Claim which the Indemnified Person is contesting, or, if appropriate and related to the Third-Party Claim in question, in making any counterclaim against the Person asserting the Third-Party Claim, or any cross-complaint
against any Person (other than the Indemnifying Person or any of its Affiliates). 
  
 (e) Each Party consents to the nonexclusive jurisdiction of any court in which a Proceeding in respect of a Third-Party Claim is brought
against any Indemnified Person for purposes of any claim that an Indemnified Person may have under this Agreement with respect to such Proceeding or the matters alleged therein and agrees that process may be served on any Party with respect to such
a claim anywhere in the world. 
  
 (f) With
respect to any Third-Party Claim subject to indemnification under this Article 10: (i) both the Indemnified Person and the Indemnifying Person, as the case may be, shall keep the other Person fully informed of the status of such Third-Party
Claim and any related Proceedings at all stages thereof where such other Person is not represented by its own counsel, and (ii) the parties agree (each at its own expense except as specifically provided in this Section 10.7) to render to
each other such assistance as they may reasonably require of each 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 60

 
other and to cooperate in good faith with each other in order to ensure the proper and adequate defense of any Third-Party Claim. 
  
 10.8 Other Claims. Subject to Section 10.5(d), a claim for
indemnification for any matter not involving a Third-Party Claim may be asserted by notice to the Party from whom indemnification is sought. 
  
 ARTICLE 11 
 TAX AND COST REPORT
MATTERS 
  
 11.1 Tax Matters; Allocation of Aggregate
Purchase Price. 
  
 (a) Sellers shall
promptly after the Closing prepare and file all Tax Returns and other reports and returns required by any Legal Requirement relating to any Seller or any business, asset, or activity of any Seller, to and including the Effective Time. Sellers (other
than DIA if the DE Closing occurs) shall prepare and file all Tax Returns required to be filed by DIA for periods ending on or before the date of the DE Closing. In accordance with Section 12.2 and other provisions of this Agreement, Purchaser
and its Affiliates and DIA (after the DE Closing) will cooperate with Sellers (other than DIA if the DE Closing occurs) in providing information required to prepare such Tax Returns and in effecting any such filings. 
  
 (b) After each respective closing date, the Parties shall
cooperate fully with each other and shall make available to each other, as reasonably requested, all information, records or documents relating to Tax liabilities or potential Tax liabilities with respect to the operation of the Facilities or
ownership of the Assets for all periods prior to the respective Effective Times and shall preserve all such information, records and documents at least until the expiration of any applicable statute of limitations or extensions thereof. The Parties
shall also make available to each other as reasonably required, and at the reasonable cost of the requesting Party (for out-of-pocket costs and expenses only), personnel responsible for preparing or maintaining information, records and documents in
connection with Tax matters. Without limiting any other obligations hereunder, Purchaser and DIA (after the DE Closing) specifically covenant to cooperate with Sellers after the respective closing dates in effecting any Tax Return filings required
to be made by Sellers (other than DIA if the DE Closing occurs) with respect to DIA under Section 11.1(a). 
  
 (c) The Seller Representative and Purchaser shall cooperate in the preparation of a joint schedule (the “Allocation Schedule”)
allocating the Aggregate Purchase Price (including, for purposes of this Section, any other consideration paid by Purchaser for the Assets and any Assumed Liabilities), among the Assets of all Sellers. Sellers and Purchaser each agree to file IRS
Form 8594, and all federal, state, local and foreign tax returns, in accordance with the Allocation Schedule. Sellers and Purchaser each agree to provide the other promptly with any other information required to complete the Allocation Schedule. If,
however, the Seller Representative and Purchaser are unable to complete such schedule on or before the Final Net Assets Settlement Date, or by such later date as may agreed upon by the Seller Representative and Purchaser, each of Sellers and
Purchaser may file IRS Form 8594, and any federal, state, local and foreign tax returns, allocating the Aggregate Purchase Price (as defined for purposes of this Section) among the Assets in the manner each believes appropriate, provided such
allocation is reasonable and in accordance with Section 1060 of the Code and the regulations thereunder. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 61

 (d) Sellers and Purchaser shall cooperate with each other, and shall cause their
respective representatives and attorneys to cooperate with each other, in obtaining any tax clearance certificates or similar documentation necessary for avoiding Tax withholding with respect to the payment of the Aggregate Purchase Price or the
assumption of the Assumed Liabilities. Purchaser shall be entitled to withhold amounts from the Aggregate Purchase Price (including the Merger Purchase Price and the Focus DE Asset Purchase Price payable pursuant to the Agreement and Plan of Merger)
and pay such amounts over to applicable tax authorities as required under applicable Tax laws, and any such withholding tax payments shall be deemed to be a payment to Sellers in accordance with the requirements of this Agreement, or a payment to
the Members in accordance with the requirements of the Agreement and Plan of Merger, as applicable. Sellers (excluding DIA if the DE Closing occurs) shall indemnify Purchaser and hold Purchaser harmless for any liability of Purchaser for any amount
that was required to be withheld from the Aggregate Purchase Price (including the Merger Purchase Price and the Focus DE Asset Purchase Price payable pursuant to the Agreement and Plan of Merger) with respect to any Tax of any Seller, or any Tax of
any Member, and that was not so withheld. 
  
 11.2 Cost Report
Matters. 
  
 (a) Purchaser shall forward to
the Seller Representative any and all correspondence received by Purchaser relating to the Seller Cost Reports or rights to settlements and retroactive adjustments on Seller Cost Reports (“Agency Settlements”), within ten
(10) business days of receipt by Purchaser. Purchaser shall not reply to any such correspondence without the Seller Representative’s written approval. Within ten (10) business days after receipt by Purchaser, Purchaser shall remit or
forward to the Seller Representative any receipts relating to the Seller Cost Reports or the Agency Settlements and any demand for payments. Sellers shall retain all rights to Seller Cost Reports including any payables resulting therefrom or
receivables relating thereto and the right to appeal any Medicare determinations relating to the Agency Settlements and Seller Cost Reports. 
  
 (b) Upon reasonable notice and during normal business office hours, Purchaser will cooperate with Sellers in regard to (i) the
preparation, filing, handling, and appeals of Seller Cost Reports, and (ii) any cost report disputes and/or other claim adjudication matters relative to governmental program reimbursement. Such cooperation shall include the providing of
statistics and obtaining files at the Facilities and the coordination with the Seller Representative pursuant to adequate notice of Medicare and Medicaid exit conferences or meetings. 
  
 ARTICLE 12 
 MISCELLANEOUS PROVISIONS 
  
 12.1 Entire
Agreement. This Agreement (including the first paragraph and the Recitals, and the Disclosure Schedules, Exhibits and other documents referred to in this Agreement, all of which are incorporated herein as integral parts of this Agreement,
together with the Agreement and Plan of Merger and all schedules, exhibits and other documents referred to in the Agreement and Plan of Merger) contains the entire understanding between the Parties thereto with respect to the subject matter hereof
and supersedes all prior or contemporaneous agreements, understandings, representations and statements, oral or written, between Parties thereto with respect to such subject matter (including the Letter of Intent, and any confidentiality 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 62

 
agreement between Purchaser and any Seller). The Parties agree that the Escrow Agreements, the Noncompetition Agreements and the Right of First Refusal
Agreements shall survive the execution and delivery of the Original Purchase Agreement, this Agreement, the Agreement and Plan of Merger and the consummation of the Closings. 
  
 12.2 Further Assurances. The Parties shall cooperate reasonably with each other and with their respective
representatives in connection with any steps required to be taken as part of their respective obligations under this Agreement and the Agreement and Plan of Merger, and shall (a) furnish upon request to each other such further information,
(b) execute and deliver to each other such other documents, and (c) do such other acts and things, all as any other Party may reasonably request for the purpose of carrying out the intent of this Agreement and the Agreement and Plan of
Merger and the transactions contemplated hereby and thereby. 
  
 12.3 Assignments, Successors and No Third Party Rights. 
  
 (a) Subject to Section 12.3(b), no Party may assign any of its rights or delegate any of its obligations under this Agreement or the Agreement and Plan of Merger without the prior written consent of the other
Parties. Subject to the preceding sentence, this Agreement and the Agreement and Plan of Merger will apply to, be binding in all respects upon and inure to the benefit of (i) the successors and permitted assigns of the Parties hereto and
thereto, and (ii) any Designee. Nothing expressed or referred to in this Agreement or the Agreement and Plan of Merger will be construed to give any Person other than the Parties hereto and thereto any legal or equitable right, remedy or claim
under or with respect to this Agreement or the Agreement and Plan of Merger or any provision of this Agreement or the Agreement and Plan of Merger, except such rights as shall inure to a successor, permitted assignee or Designee pursuant to this
Section 12.3. 
  
 (b) Notwithstanding
anything herein to the contrary: 
  
 (A)
Purchaser may (i) assign any of its rights or delegate any of its duties under this Agreement or the Agreement and Plan of Merger to any one or more subsidiaries that are wholly-owned, directly or indirectly, by Purchaser, or (ii) at or
prior to Closing, designate one or more of such subsidiaries as the entity to acquire some or all of the Assets, enter into the Merger or the purchase of the Focus DE Assets contemplated by the Agreement and Plan of Merger or assume some or all of
the Assumed Liabilities or, in the case of the Agreement and Plan of Merger, assume some or all of the Focus DE Assumed Liabilities or the DIA Retained Liabilities (any such subsidiary to whom such an assignment, delegation or designation is made, a
“Designee”); and in the event of any such assignment, delegation or designation by Purchaser, the term “Purchaser,” as used herein, shall include such Designee or Designees as appropriate in connection with the nature and extent
of such assignment, delegation or designation. No such assignment, delegation or designation by Purchaser shall relieve Purchaser from any of its obligations hereunder in the event of any Designee’s breach or failure to perform any of the
matters assigned or delegated to it; and 
  
 (B)
Purchaser may collaterally assign its rights under this Agreement and under the Agreement and Plan of Merger to any financial institution providing financing to Purchaser. 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 63

 12.4 Governing Law. This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Texas as applied to contracts made and to be performed entirely within the State of Texas and without regard to conflicts-of-laws principles that would require the application of any other law. The Parties hereby waive
their right to assert in any proceeding involving this Agreement that the law of any other jurisdiction shall apply to such dispute; and the Parties hereby covenant that they shall assert no such claim in any dispute arising under or in connection
with this Agreement or the transactions contemplated hereby. 
  
 12.5 Amendments. Neither this Agreement nor the Agreement and Plan of Merger may be amended, supplemented or otherwise modified other than by a written agreement signed by or on behalf of the Party to be charged with such amendment,
supplement or modification. 
  
 12.6 Notices. All notices,
consents, waivers and other communications required or permitted by this Agreement shall be in writing and shall be deemed given to a Party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier
service (costs prepaid), (b) sent by facsimile with confirmation of transmission by the transmitting equipment, or (c) received or rejected by the addressee, if sent by certified mail, return receipt requested, in each case to the
following addresses or facsimile numbers and marked to the attention of the Person (by name or title) designated below (or to such other address, facsimile number or Person as a Party may designate by notice to the other Parties): 
  

			
	 If to any Seller (other than
 DIA after the DE

Closing), to the Seller
 Representative:
	  	 Seller Representative, LLC
 7201 Shallowford Road,
Suite 200
 Chattanooga, TN 37421
 Attention: Chief
Manager
 Facsimile No.: (423) 308-1844

		
	With a copy to:	  	Hugh Sharber
	 	  	Miller & Martin PLLC
	 	  	Suite 1000, Volunteer Building
	 	  	832 Georgia Avenue
	 	  	Chattanooga, TN 37402
	 	  	Facsimile No.: (423) 785-8480
		
	 If to Purchaser or to DIA
 after the DE
Closing:
	  	Horizon Health Corporation
	  	1500 Waters Ridge Drive
	  	Lewisville, Texas 75057
	  	Attention: President
	  	Facsimile No.: (972) 420-4060
		
	With copies to:	  	Horizon Health Corporation
	 	  	1500 Waters Ridge Drive
	 	  	Lewisville, Texas 75057
	 	  	Attention: General Counsel
	 	  	Facsimile No.: (972) 420-7789
		
	 	  	Strasburger & Price, L.L.P.
	 	  	901 Main Street, Suite 4400
	 	  	Dallas, Texas 75202
	 	  	Attention: Patrick Owens, Esq.
	 	  	Facsimile No.: (214) 651-4330

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 64

 12.7 Headings. The section and other headings contained in this Agreement, including the
Disclosure Schedules and Exhibits, or in the Agreement and Plan of Merger, including Exhibits, are included for the purpose of convenient reference only and shall not restrict, amplify, modify or otherwise affect in any way the meaning or
interpretation of this Agreement, including the Disclosure Schedules and Exhibits or the Agreement and Plan of Merger, including Exhibits. 
  
 12.8 Confidentiality and Publicity. Without the prior written consent of the Purchaser (in the case of a proposed disclosure by any Seller) or the
Seller Representative (in the case of a proposed disclosure by Purchaser), neither Purchaser nor any Seller shall discuss with, or provide to, any third party (except for such disclosing Party’s attorneys, accountants, directors, officers and
employees, the directors, officers and employees of any Affiliate of any Party hereto, and other consultants and professional advisors) any non-public information contained in or related to this Agreement or concerning this transaction or the
Agreement and Plan of Merger and the transactions contemplated thereby, except: (a) Purchaser and Sellers shall each be permitted to provide a copy of this Agreement and the Agreement and Plan of Merger, or provide information herein or a
description thereof, to applicable governmental or administrative authorities as reasonably required or necessary, (b) as reasonably necessary to obtain any consents or approvals required hereunder or thereunder to be obtained, (c) as
required in governmental filings or judicial, administrative or arbitration proceedings, (d) pursuant to public announcements made with the prior written approval of the Seller Representative and Purchaser, or (e) as otherwise required by
applicable law. 
  
 12.9 Expenses and Attorneys’ Fees.
Except as otherwise provided in this Agreement or in the Agreement and Plan of Merger, whether or not the transactions contemplated hereby or thereby are consummated, each Party shall bear and pay its own fees and expenses incurred in connection
with the preparation, negotiation, execution and performance of this Agreement and the Agreement and Plan of Merger and the transactions contemplated hereby and thereby, including all fees and expenses of their respective attorneys, accountants,
advisors, agents and other representatives (except that Sellers (excluding DIA if the DE Closing occurs) shall bear the fees and expenses of DIA under the Agreement and Plan of Merger). Purchaser shall pay the following: (a) all costs of
surveys of the Real Property ordered by Purchaser, (b) all costs of any environmental surveys of any of the Real Property ordered by Purchaser, and (c) all filing fees under the HSR Act in connection with the transactions contemplated
hereby. All sales or transfer Taxes, recording charges and escrow fees in connection with the conveyance of the Assets contemplated by this Agreement, or in connection with the Merger and the sale of the Focus DE Assets contemplated by the Agreement
and Plan of Merger, shall be paid one-half by Sellers (excluding DIA if the DE Closing occurs) and one-half by Purchaser. All fees or costs due to any lender of any Seller, if any, in order to secure any necessary consents or releases in connection
with the consummation of the transactions contemplated herein or in the Agreement and Plan of Merger shall be paid by Sellers (excluding DIA if the DE Closing occurs). Sellers (excluding DIA if the DE Closing occurs) shall pay one-half and Purchaser
shall pay one-half of all amounts payable to any title company in respect of any of the Title Commitments, copies of exceptions and the Title Policies, including reasonable premiums (including premiums for 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 65

 
endorsements) and search fees; provided, however, that notwithstanding anything in this sentence to the contrary, Sellers’ liability with
respect to premiums for the Title Policies shall not exceed $.50 per $1,000 of the total amount insured pursuant to such Title Policies. Notwithstanding the foregoing, Purchaser shall be solely responsible for all costs, fees or endorsements with
respect to any mortgagee Title Policies required by any creditor or lender of Purchaser, the cost of which shall be based upon the lower simultaneous issue premium. Sellers (excluding DIA if the DE Closing occurs) shall pay one-half and Purchaser
shall pay one-half of the fees and expenses of the Escrow Agent under the Escrow Agreements. If this Agreement or the Agreement and Plan of Merger is terminated, the obligation of any Party to pay its own fees and expenses will be subject to any
rights of such Party arising from a breach of this Agreement or the Agreement and Plan of Merger by any other Party. If any action is brought by any Seller (excluding DIA if the DE Closing occurs) or Purchaser to enforce any provision of this
Agreement or the Agreement and Plan of Merger, the prevailing Party shall be entitled to recover its court costs and reasonable attorneys’ fees from the other such Party (from Purchaser or Sellers (excluding DIA if the DE Closing occurs), as
the case may be). 
  
 12.10 Severability. If any term,
provision, condition or covenant of this Agreement or the Agreement and Plan of Merger or the application thereof to any Party or circumstance shall be held to be invalid or unenforceable to any extent in any jurisdiction, then the remainder of this
Agreement or the Agreement and Plan of Merger and the application of such term, provision, condition or covenant in any other jurisdiction or to Persons or circumstances other than those as to whom or which it is held to be invalid or unenforceable,
shall not be affected thereby, and each term, provision, condition and covenant of this Agreement or the Agreement and Plan of Merger shall be valid and enforceable to the fullest extent permitted by law. 
  
 12.11 Execution of Agreements. This Agreement and the Agreement and
Plan of Merger may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement or the Agreement and Plan of Merger, as the case may be, and all of which counterparts of any agreement, when taken
together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement or the Agreement and Plan of Merger and of signature pages by facsimile transmission shall constitute effective execution and delivery of
this Agreement or the Agreement and Plan of Merger as to the parties and may be used in lieu of the original agreement for all purposes. Signatures of the Parties transmitted by facsimile shall be deemed to be their original signatures for all
purposes. 
  
 12.12 Seller Obligations. The liability of
each Seller (other than DIA if the DE Closing occurs) hereunder shall be joint and several with each other Seller. Where in this Agreement or the Agreement and Plan of Merger provision is made for any action to be taken or not taken by any Seller,
Sellers (other than DIA if the DE Closing occurs) jointly and severally undertake to cause each Seller (other than DIA if the DE Closing occurs) to take or not take such action, as the case may be. Without limiting the generality of the foregoing,
each Seller (other than DIA if the DE Closing occurs) shall be jointly and severally liable with each other Seller (other than DIA if the DE Closing occurs) for the indemnities set forth in Article 10. 
  
 12.13 Enforcement. Sellers acknowledge and agree that Purchaser would
be irreparably damaged if any of the provisions of this Agreement or the Agreement and Plan of Merger are not performed in accordance with their specific terms and that any breach of this Agreement or the Agreement and Plan of Merger by any Seller
could not be adequately compensated in all cases 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 66

 
by monetary damages alone. Accordingly, in addition to any other right or remedy to which Purchaser may be entitled, at law or in equity, it shall be
entitled to enforce any provision of this Agreement or the Agreement and Plan of Merger by a decree of specific performance and to temporary, preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the
provisions of this Agreement or the Agreement and Plan of Merger, without posting any bond or other undertaking. 
  
 12.14 Waiver; Remedies Cumulative. The rights and remedies of the Parties to this Agreement or to the Agreement and Plan of Merger are cumulative
and not alternative. Neither any failure nor any delay by any Party in exercising any right, power or privilege under this Agreement or the Agreement and Plan of Merger or any of the documents referred to in this Agreement or the Agreement and Plan
of Merger will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other
right, power or privilege. To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement or the Agreement and Plan of Merger or any of the documents referred to in this Agreement or the Agreement and
Plan of Merger can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other Party, (b) no waiver that may be given by a Party will be applicable except in the
specific instance for which it is given, (c) no notice to or demand on one Party will be deemed to be a waiver of any obligation of that Party or of the right of the Party giving such notice or demand to take further action without notice or
demand as provided in this Agreement or the Agreement and Plan of Merger or the documents referred to in this Agreement or the Agreement and Plan of Merger, (d) the subsequent acceptance of performance hereunder by a Party shall not be deemed
to be a waiver of any preceding breach by any other Party of any term, covenant or condition of this Agreement or the Agreement and Plan of Merger, other than the failure of such other Party to perform the particular duties so accepted, regardless
of the accepting Party’s knowledge of such preceding breach at the time of acceptance of such performance, and (e) the waiver of any term, covenant or condition shall not be construed as a waiver of any other term, covenant or condition of
this Agreement or the Agreement and Plan of Merger. 
  
 12.15
Waiver of Jury Trial. EACH PARTY HERETO AND TO THE AGREEMENT AND PLAN OF MERGER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS
AGREEMENT, THE AGREEMENT AND PLAN OF MERGER OR THE RELATIONSHIPS OF THE PARTIES HERETO OR THERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING FROM ANY SOURCE, INCLUDING THE CONSTITUTION OF THE UNITED
STATES OR ANY STATE THEREIN, COMMON LAW OR ANY APPLICABLE STATUTE OR REGULATIONS. EACH PARTY HERETO ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY. 
  
 (Remainder of Page Intentionally Left Blank) 
  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 67

 IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the Restatement Execution Date.

  
 SELLERS: 
  

									
	FOCUS HEALTHCARE, LLC,	 	 	 	FOCUS HEALTHCARE OF OHIO, LLC,
	 a California limited liability company
	 	 	 	 a Delaware limited liability company

					
	 By:
	 	/s/    BYRON
DEFOOR        	 	 	 	 By:
	 	/s/    BYRON
DEFOOR        
	 Name:
	 	Byron DeFoor	 	 	 	 Name:
	 	Byron DeFoor
	 Title:
	 	Manager	 	 	 	 Title:
	 	Manager
			
	FOCUS HEALTHCARE OF DELAWARE,	 	 	 	DELAWARE INVESTMENT ASSOCIATES,
	 LLC, a Delaware limited liability company
	 	 	 	 LLC, a Delaware limited liability company

					
	 By:
	 	/s/    BYRON
DEFOOR        	 	 	 	 By:
	 	/s/    BYRON
DEFOOR        
	 Name:
	 	Byron DeFoor	 	 	 	 Name:
	 	Byron DeFoor
	 Title:
	 	Manager	 	 	 	 Title:
	 	Manager
			
	FOCUS HEALTHCARE OF FLORIDA,	 	 	 	HIGHPOINT INVESTMENT ASSOCIATES,
	 LLC, a Delaware limited liability company
	 	 	 	 LLC, a Delaware limited liability company

					
	 By:
	 	/s/    BYRON
DEFOOR        	 	 	 	 By:
	 	/s/    BYRON
DEFOOR        
	 Name:
	 	Byron DeFoor	 	 	 	 Name:
	 	Byron DeFoor
	 Title:
	 	Manager	 	 	 	 Title:
	 	Manager
			
	FOCUS HEALTHCARE OF GEORGIA,	 	 	 	 
	 LLC, a Georgia limited liability company
	 	 	 	 
					
	 By:
	 	/s/    BYRON
DEFOOR        	 	 	 	 	 	 
	 Name:
	 	Byron DeFoor	 	 	 	 	 	 
	 Title:
	 	Manager	 	 	 	 	 	 
				
	PURCHASER:	 	 	 	 	 	 
			
	HORIZON HEALTH CORPORATION,	 	 	 	 
	 a Delaware corporation
	 	 	 	 
					
	 By:
	 	/s/    DONALD W. THAYER        	 	 	 	 	 	 
	 Name:
	 	Donald W. Thayer	 	 	 	 	 	 
	 Title:
	 	Executive Vice President	 	 	 	 	 	 

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 68

 ACCEPTANCE AND AGREEMENT OF SELLER REPRESENTATIVE 
  
 The undersigned, being the Seller Representative designated in
Section 1.14 of the foregoing Amended and Restated Asset Purchase Agreement (Focus), agrees to serve as the Seller Representative and to be bound by the terms of such Amended and Restated Asset Purchase Agreement (Focus) pertaining thereto.
This Acceptance and Agreement is executed and delivered as of the Restatement Execution Date. 
  

			
	SELLER REPRESENTATIVE, LLC,
	 a Tennessee limited liability company

		
	 By:
	 	/s/    BYRON
DEFOOR        
	 Name:
	 	Byron DeFoor
	 Title:
	 	Manager

  

 AMENDED AND RESTATED ASSET PURCHASE AGREEMENT (FOCUS) – Page 69

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