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Exhibit 10.1 MEMBERSHIP INTEREST PURCHASE
AGREEMENT BY AND AMONG RURAL HOSPITAL ACQUISITION,
LLC, AS THE BUYER AND CAROL SCHUSTER,
AS THE SELLER AND TRI-ISTHMUS GROUP, INC
SURGICAL CENTER ACQUISITION HOLDING, INC RHA TISHOMINGO,
LLC RHA STROUD, LLC RHA ANADARKO, LLC MICHAEL
SCHUSTER AS THE ADDITIONAL PARTIES
MEMBERSHIP INTEREST PURCHASE AGREEMENT Table of
Contents
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Page
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ARTICLE I PURCHASE, SALE AND TRANSFER OF UNITS
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2
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1.1 Purchase, Sale and Transfer of the Schuster Units
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2
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1.2 Consideration
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2
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1.3 Closing
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2
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1.4 Closing Deliveries
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3
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1.5 Further Assurances
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3
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ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE SELLER
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4
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2.1 Authority
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4
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2.2 Title to Schuster Units
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4
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2.3 No Violation
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4
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2.4 Governmental Authorizations
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5
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2.5 Full Disclosure
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5
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ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE BUYER
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5
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3.1 Organization
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5
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3.2 Authority
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5
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3.3 No Violation
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6
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3.4 Governmental Authorizations
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6
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3.5 Full Disclosure
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6
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ARTICLE IV COVENANTS AND AGREEMENTS
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6
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4.1 Release of Claims
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6
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4.2 Termination of Certain Provisions of the 2007 Purchase
Agreement
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6
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4.3 Lock-Up
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7
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4.4 Publicity
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7
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4.5 Transaction Costs
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7
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ARTICLE V MISCELLANEOUS
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8
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5.1 Notices
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8
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5.2 Attorneys’ Fees and Costs
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8
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5.3 Brokers
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8
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5.4 Severability
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8
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5.5 Counterparts
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8
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Page
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5.6 Interpretation
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5.7 Assignment
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5.8 Entire Agreement, Amendment
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5.9 Specific Performance, Remedies Not Exclusive
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9
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5.10 GOVERNING LAW
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5.11 Submission to Jurisdiction
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9
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5.12 Drafting
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10
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5.13 Usage
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10
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5.14 Survival
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10
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5.15 Certain Definitions
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10
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Exhibits :
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Exhibit A
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Note
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Exhibit B
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Guaranty
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Exhibit C
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Assignment of Membership Interest
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- ii -
MEMBERSHIP INTEREST PURCHASE AGREEMENT This Membership
Interest Purchase Agreement (this " Agreement ") is made and
entered into as of December 11, 2008 (the " Closing
Date "), by and between Rural Hospital Acquisition, LLC., an
Oklahoma Limited Liability Company (" Buyer "), and Carol
Schuster, an individual residing in Oklahoma (" Seller ").
Tri-Isthmus Group, Inc., a Delaware Corporation (" TIGroup
") Surgical Center Acquisition Holdings, Inc., a Nevada
Corporation, (" SCAH ") and RHA Tishomingo, an Oklahoma
Limited Liability Company, (" RHA Tishomingo "), RHA Stroud,
an Oklahoma Limited Liability Company, (" RHA Stroud "), and
RHA Anadarko, an Oklahoma Limited Liability Company, (" RHA
Anadarko ") and Mike Schuster all join this Agreement for the
limited purposes set forth herein. RHA Tishomingo, RHA Stroud, and
RHA Anadarko are sometimes referred to as the " Hospitals ".
Buyer, TIGroup, SCAH, Hospitals, and Seller, are each individually
referred to herein from time to time as a " Party ," and
collectively as the " Parties ." RECITALS
WHEREAS , Seller owns 49% of the total issued and
outstanding voting membership units of Buyer (the " Units
"). WHEREAS , Buyer wishes to purchase all of Units of Buyer
owned by Seller. WHEREAS , Upon completion of the transfer
of the Units from Buyer to Seller, SCAH will become the sole member
of Buyer, which is the sole member of the Hospitals. As such, SCAH
is benefiting from the terms of this Agreement and executes this
Agreement for the purposes set forth in Section 4 .
WHEREAS , TIGroup is the sole shareholder of SCAH and will
benefit from the terms of this Agreement. Upon completion of the
transaction, TIGroup will have an indirect ownership interest in
those entities wholly-owned by SCAH. As such, TIGroup is
guarantying all of the payments and the promissory note described
in Section 1.2 and also executes this agreement for the
purposes set forth in Section 4 . WHEREAS ,
Michael Schuster will receive substantial direct and indirect
benefits from the transactions contemplated by this Agreement, and
the Buyer has required that Michael Schuster enter into this
Agreement as a condition to the Buyer’s execution hereof. As
such, Michael Schuster is benefiting from the terms of this
Agreement and executes this Agreement for the purposes set forth in
Section 4 .
1
NOW, THEREFORE , in consideration of the foregoing
premises and the mutual representations, warranties, covenants and
agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows: ARTICLE I
PURCHASE, SALE AND TRANSFER OF UNITS 1.1 Purchase, Sale and
Transfer of the Schuster Units . Pursuant to the terms and
subject to the conditions set forth herein, Seller will sell
490,000 Units to Buyer, which constitute all of the Units owned by
Seller (the " Schuster Units "), for the consideration set
forth in Section 1.2 . 1.2 Consideration . As
consideration in full for the sale and purchase of the Schuster
Units, Buyer shall pay to Seller the sum of One Million Eight
Hundred Thousand Dollars ($1,800,000.00) as follows: (a) Cash
in the amount of Three Hundred Thousand Dollars ($300,000.00)
payable in six (6) equal monthly installments of Fifty
Thousand Dollars ($50,000) each, with the first installment due on
the Closing Date and subsequent installments due on the first day
of each of the next five (5) calendar months (the " Monthly
Cash Payments "). TIGroup absolutely and unconditionally
guarantees the due and punctual payment of all amounts owed by
Buyer to Seller under this section. In the event that Buyer fails
to make a Monthly Cash Payment within fifteen (15) business
days of its respective due date, TIGroup shall be obligated to pay
Seller the full amount of the unpaid Monthly Cash Payment plus a
default rate of interest at a rate of 12% per annum. In addition to
the remedy set forth above, in the event of a failure of Buyer to
timely pay Seller on any Monthly Cash Payment prior to the
expiration of the fifteen (15) business day grace period
set forth in the preceding sentence, Seller can accelerate all
Monthly Cash Payments to cause them to be immediately due and
payable by both Buyer and/or TIGroup without further notice or
demand. Both Buyer and TIGroup shall pay Seller’s reasonable
attorney fees relating to any action to collect payment from Buyer
or TIGroup under this section. (b) A promissory note in the
original principal amount of One Million Five Hundred Thousand
Dollars ($1,500,000.00) substantially in the form attached hereto
as Exhibit A (the " Note "). RHA’s
payments under the Note will be guaranteed by TIGroup pursuant to a
guaranty substantially in the form attached hereto as
Exhibit B . In the event that TIGroup receives
aggregate net proceeds in excess of $8,000,000 from [certain
securities offerings] [*], the payments under the Note will be
accelerated and the principal amount still owing, together with
accrued but unpaid interest will become due and payable on the
thirtieth (30th) day following the date on which the aggregate net
proceeds received by TIGroup [*] exceed $8,000,000. 1.3
Closing . The consummation of the sale and purchase of the
Schuster Units (the " Closing ") shall take place at the
offices of Day, Edwards, Propester & Christensen, P.C., 2900
Oklahoma Tower, 210 Park Avenue, Oklahoma City, Oklahoma 73102, or
via Federal Express and facsimile, as agreed by the Buyer and
Sellers, at 2 p.m. local time on the Closing Date, provided that
all of the deliveries in Section 1.4 have been made or
waived by the parties to whom such delivery is required.
2
1.4 Closing Deliveries . At the Closing: (a) Seller
will transfer the Schuster Units to Buyer, and deliver to Buyer
certificates or other documentation representing the Schuster Units
and any other documents that are necessary to transfer to Buyer
good title to the Schuster Units, including, without limitation, an
Assignment of Membership Interest substantially in the form of
Exhibit C attached hereto (the " Assignment of
Membership Interest "); (b) Seller shall deliver the
resignations of Seller and Michael Schuster from any and all
officer and manager positions occupied by either of them at Buyer
and its Affiliates effective as of the Closing Date; (c) Buyer
will pay the first Monthly Cash Payment to Seller by wire transfer
or delivery of other immediately available funds; (d) Buyer
will deliver the Note to Seller; (e) Buyer shall deliver a
document that reflects the transfer of Mike Schuster’s
employment contract from RHA to TIGroup or one of its Affiliates;
and (f) TIGroup shall deliver the guaranty to Seller of the
Note and a corporate resolution evidencing that TIGroup has the
power and authority to enter into all agreements contemplated
herein. 1.5 Further Assurances . At or after the Closing,
and without further consideration, the Seller will execute and
deliver to Buyer, such further instruments of conveyance and
transfer as Buyer may reasonably request in order more effectively
to convey and transfer the Schuster Units to Buyer. The Parties
agree to 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 before and after the Closing, 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 transactions contemplated hereby.
3
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF THE SELLER As a material
inducement to the Buyer to enter into this Agreement and consummate
the transactions contemplated hereby, the Seller, represents and
warrants to the Buyer that the statements contained in this
Article II are true and correct as of the Closing Date
to the best of her knowledge, except as set forth on Seller’s
Disclosure Schedule attached to this Agreement and corresponding in
number with the applicable section of this Agreement, and shall
survive the Closing and continue in full force and until the fourth
anniversary of the Closing Date. 2.1 Authority . Seller, has
all requisite power, authority and capacity, corporate, individual
or otherwise, to execute, deliver and perform under this Agreement
and the other agreements, certificates and instruments to be
executed by Seller in connection with or pursuant to this Agreement
(collectively, the " Seller Documents "). The execution,
delivery and performance by the Seller of each Seller Document to
which Seller is a party has been duly authorized by all necessary
action, corporate or otherwise, on the part of the applicable
Person. This Agreement and the Seller Documents have been duly
executed and delivered by Seller. This Agreement and each of the
other Seller Documents are the legal, valid and binding agreement
of Seller, enforceable against Seller in accordance with its terms,
except as such enforceability may be limited by applicable
bankruptcy, insolvency, fraudulent conveyance or similar laws
affecting the enforcement of creditors’ rights generally and
subject to general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity). 2.2
Title to Schuster Units . Seller owns of record and
beneficially the Schuster Units, free and clear of any obligation,
lien, claim, pledge, security interest, liability, charge,
contingency or other encumbrance or claim of any nature other than
what is on the unit certificate representing the Schuster Units or
in Buyer’s operating agreement (a " Lien "). Upon sale
of the Schuster Units and delivery of certificates or other
documentation evidencing such Units (or other transfer documents
included in the Seller Documents) therefor to the Buyer hereunder,
Buyer will acquire the entire legal and beneficial interests in the
Schuster Units, free and clear of any Lien and subject to no legal
or equitable restrictions of any kind, except as provided in the
Amended and Restated Operating Agreement of Buyer. 2.3 No
Violation . Neither the execution or delivery of the Seller
Documents nor the consummation of the transactions contemplated
thereby, including without limitation the issuance or sale of the
Purchased Units to the Buyer, will, to the Knowledge of Seller,
conflict with or result in the breach of any term or provision of,
require any consent, approval, ratification, waiver, notification,
license, permit, order or other authorization (including any
Governmental Authorization (as defined in Section 2.4
)) (collectively, " Consents ") or violate or constitute a
default under (or an event that with notice or the lapse of time or
both would constitute a breach or default), any third party the
right to terminate or accelerate any obligation under, any charter
provision, bylaw, provision of the Amended and Restated Operating
Agreement, Amended and Articles of Organization, material contract,
license or Law to which Seller is a party or by which any assets of
Buyer is in any way bound or obligated.
4
2.4 Governmental Authorizations . To the knowledge of
Seller, no Consent, franchise, grant, identification or
registration number, easement, variance, exemption or certificate
issued, granted, given or otherwise made available by or under the
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