Document:

Exhibit
        10.7

    

     

    REAFFIRMATION
      AND RATIFICATION AGREEMENT

     

    August
      22, 2006

     

    Laurus
      Master Fund, Ltd.

    c/o
      Laurus Capital Management LLC

    825
      Third
      Avenue

    New
      York,
      New York 10022

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to (a) the Master Security Agreement, dated as of January 30, 2006
      (as
      amended, restated, modified or supplemented from time to time, the “Master
      Security Agreement”) by and among Flagship Patient Advocates, Inc. (f/k/a
      Flagship Healthcare Management, Inc.), a Delaware corporation (“Flagship”),
      Patients & Physicians, Inc. (f/k/a Finity Holdings, Inc.), a Delaware
      corporation (“Patients”), and Laurus Master Fund, Ltd. (“Laurus”), (b) the
      Intellectual Property Security Agreement, dated as of January 30, 2006 (as
      amended, restated, modified or supplemented from time to time, the “IP Security
      Agreement”), between Flagship and Laurus, (c) the Intellectual Property Security
      Agreement, dated as of January 30, 2006 (as amended, restated, modified or
      supplemented from time to time, the “Patients IP Security Agreement”), between
      Patients and Laurus, and (d) the Subsidiary Guaranty, dated as of January 30,
      2006 (as amended, restated, modified or supplemented from time to time, the
      “Guaranty”), made by Patients in favor of Laurus (the Master Security Agreement,
      the IP Security Agreement, the Patients IP Security Agreement and the Guaranty,
      each a “January 2006 Agreement” and collectively, the “January 2006
      Agreements”).

     

    To
      induce
      Laurus to enter into the Amended and Restated Securities Purchase Agreement
      dated as of the date hereof by and among Flagship, Patients and Laurus (as
      amended, restated, modified or supplemented from time to time, the “Purchase
      Agreement”), and to satisfy their obligations under the Post Closing Letter,
      dated as of January 30, 2006, between Laurus and Flagship, each of the
      undersigned hereby: 

     

    (a)  represents
      and warrants to Laurus that it has reviewed and approved the terms and
      provisions of the Purchase Agreement and the Related Agreements (as defined
      in
      the Purchase Agreement; such Related Agreements collectively with the Purchase
      Agreement, the “August 2006 Agreements”); 

     

    (b)  acknowledges,
      ratifies and confirms that all of the terms, conditions, representations and
      covenants contained in the January 2006 Agreements to which it is a party are
      in
      full force and effect and shall remain in full force and effect after giving
      effect to the execution and effectiveness of the August 2006
      Agreements;

     

    (c)  acknowledges,
      ratifies and confirms that (i) the defined term “Obligations” under each of the
      Guaranty, the Master Security Agreement, the IP Security Agreement and the
      Patients IP Security Agreement includes, without limitation, all obligations
      and
      liabilities of each of Flagship and Patients under the August 2006 Agreements
      and all other obligations and liabilities of each of the undersigned to Laurus
      (including interest accruing after the filing of any petition in bankruptcy,
      or
      the commencement of any insolvency, reorganization or like proceeding, whether
      or not a claim for post-filing or post-petition interest is allowed or allowable
      in such proceeding), whether now existing or hereafter arising, direct or
      indirect, liquidated or unliquidated, absolute or contingent (collectively,
      the
“Obligations”), (ii) all of the Obligations are secured by the Security Interest
      Grants (as defined below) and (iii) all of the Obligations benefit directly
      from
      all guaranties included in the January 2006 Agreements;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  acknowledges
      and confirms that (i) the occurrence of an Event of Default under any of the
      August 2006 Agreements shall constitute an Event of Default under the January
      2006 Agreements and (ii) the occurrence of an Event of Default under any of
      the
      January 2006 Agreements shall constitute an Event of Default under the August
      2006 Agreements;

     

    (e)  represents
      and warrants that no offsets, counterclaims or defenses exist as of the date
      hereof with respect to any of the undersigned’s obligations under any of the
      January 2006 Agreements;

     

    (f)  acknowledges,
      ratifies and confirms (i) the grant by each undersigned to Laurus of a security
      interest and lien in the assets of each undersigned as more specifically set
      forth in the January 2006 Agreements and the August 2006 Agreements, as
      applicable (the “Security Interest Grants”) and (ii) that the Security Interest
      Grants (A) shall not be impaired, limited or affected in any manner whatsoever
      by the effectiveness of the August 2006 Agreements and (B) secure all
      Obligations; and

     

    (g)  releases,
      remises, acquits and forever discharges Laurus and Laurus’ employees, agents,
      representatives, consultants, attorneys, fiduciaries, officers, directors,
      partners, predecessors, successors and assigns, subsidiary corporations, parent
      corporations, and related corporate divisions (all of the foregoing hereinafter
      called the “Released Parties”), from any and all actions and causes of action,
      judgments, executions, suits, debts, claims, demands, liabilities, obligations,
      damages and expenses of any and every character, known or unknown, direct and/or
      indirect, at law or in equity, of whatsoever kind or nature, for or because
      of
      any matter or things done, omitted or suffered to be done by any of the Released
      Parties prior to and including the date of execution hereof, and in any way
      directly or indirectly arising out of or in any way connected to this
      Reaffirmation and Ratification Agreement, the January 2006 Agreements, the
      August 2006 Agreements and any other document, instrument or agreement made
      by
      any of the undersigned in favor of Laurus.

     

    [The
      remainder of this page intentionally left blank.]

     

     

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    This
      agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York.

     

    Very
      truly yours,

     

    

    PATIENTS
      & PHYSICIANS, INC.

    

    

    By:  
      /S/
      Fred F. Nazem          

    Name:
      Fred F. Nazem

    Title:
      CEO

    Address:
      432 Park Avenue South, 13th
      Fl.

    New
      York,
      NY 10016

    

    

    FLAGSHIP
      PATIENT ADVOCATES, INC.

    

    

    By:  
      /S/
      Fred F. Nazem         
 

    Name:
      Fred F. Nazem

    Title:
      CEO

    Address:
      432 Park Avenue South, 13th
      Fl.

    New
      York,
      NY 10016

     

    ACCEPTED
      AND AGREED TO:

     

    LAURUS
      MASTER FUND, LTD.

    

    By:  
      /S/
      David
      Grin                       
   

    Name:
      David Grin

    Title:
      DirectorExhibit
      10.8

     

    JOINDER
      AGREEMENT

     

    THIS
      JOINDER AGREEMENT (this “Joinder
      Agreement”)
      is
      executed as of August 22, 2006 by Patients & Physicians, Inc., a Delaware
      corporation (the “Joining
      Party”),
      and
      delivered to the Purchasers as listed on Schedule A hereto (the “Purchasers”).
      Except as otherwise defined herein, terms used herein and defined in the
      Securities Purchase Agreement (as defined below) shall be used herein as therein
      defined.

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      Flagship Healthcare Management, Inc., a Delaware corporation (“Flagship”),
      and
      the Purchasers have entered into a Securities Purchase Agreement, dated as
      of
      January 30, 2006 (as amended, modified or supplemented from time to time, the
      “Purchase
      Agreement”),
      providing for the issuance of certain Notes and Warrants and the execution
      of
      the Related Agreements referred to in the Securities Purchase Agreement;
      and

     

    WHEREAS,
      the Joining Party is a direct Parent of Flagship and is required pursuant to
      the
      provisions of the Securities Purchase Agreement to become a party to the Master
      Security Agreement, dated as of January 30, 2006, between Flagship and the
      holders listed on Schedule A thereto (the “Holders”)
      (as
      amended, modified or supplemented from time to time, the “Master
      Security Agreement”);
      

     

    NOW,
      THEREFORE, in consideration of the foregoing and other benefits accruing to
      the
      Joining Party, the receipt and sufficiency of which are hereby acknowledged,
      the
      Joining Party hereby makes the following representations and warranties to
      the
      Purchasers and hereby covenants and agrees with the Purchasers as
      follows:

     

    1.           The
      Joining Party is hereby added as an Assignor under the Master Security
      Agreement; all references to “Assignor” or “Assignors” thereunder shall
      hereafter be deemed to include it.

     

    2.           The
      Joining Party agrees that, upon its execution hereof, it will become an Assignor
      under, and as defined in, the Master Security Agreement, and will be bound
      by
      all terms, conditions and duties applicable to an Assignor under the Master
      Security Agreement. Without limitation of the foregoing and in furtherance
      thereof, as security for the due and punctual payment of the Obligations (as
      defined in the Master Security Agreement), the Joining Party hereby reaffirms
      and pledges, hypothecates, assigns, transfers, sets over and delivers to the
      Purchasers and grants to the Purchasers a security interest in all Collateral
      (as defined in the Master Security Agreement), if any, now owned or at any
      time
      hereafter acquired by the Joining Party, or in which such Assignor now has
      or at
      any time in the future may acquire any right, title or interest.

     

    3.           Without
      limiting the foregoing, the Joining Party hereby makes and undertakes each
      covenant, representation and warranty made by each Assignor pursuant to the
      Master Security Agreement, in each case as of the date hereof and agrees to
      be
      bound by all covenants, agreements and obligations of an Assignor pursuant
      to
      the Master Security Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           Schedule
      A to the Master Security Agreement is hereby replaced with Schedule A to this
      Joinder Agreement.

     

    5.           This
      Joinder Agreement shall be binding upon the parties hereto and their respective
      successors and permitted assigns and shall inure to the benefit of and be
      enforceable by each of the parties hereto and its successors and permitted
      assigns, provided,
      however,
      the
      Joining Party may not assign any of its rights, obligations or interest
      hereunder or under the Master Security Agreement or any Related Agreement
      without the prior written consent of the Purchasers. 

     

    6.           THIS
      JOINDER AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
      GOVERNED BY THE LAW OF THE STATE OF NEW YORK.
      

     

    7.           This
      Joinder Agreement may be executed in any number of counterparts, each of which
      shall be an original, but all of which shall constitute one instrument. In
      the
      event that any provision of this Joinder Agreement shall prove to be invalid
      or
      unenforceable, such provision shall be deemed to be severable from the other
      provisions of this Joinder Agreement which shall remain binding on all parties
      hereto.

     

    8.           From
      and
      after the execution and delivery hereof by the parties hereto, this Joinder
      Agreement shall constitute a “Related Agreement” for all purposes of the
      Securities Purchase Agreement and the Related Agreements.

     

    9.           The
      effective date of this Joinder Agreement is August 22, 2006.

     

    

     

    [Signature
      Page Follows]

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Joining Party has caused this Joinder Agreement to be
      duly
      executed as of the date first above written.

     

    
      	 	 	 
	 	PATIENTS
&
              PHYSICIANS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Fred
              F. Nazem                    
	 	Name: Fred F. Nazem
	 	Title:
              Chairman and Chief Executive Officer

    

     

    Accepted
      and Acknowledged by:

     

    FLAGSHIP
      PATIENT ADVOCATES, INC.

     

    By:
      /s/
      Fred F. Nazem                    
Name:
      Fred F. Nazem
Title:
      Chairman and Chief Executive Officer

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    
      	
              PURCHASERS

            
	
              Fred.
                F. Nazem

            
	
              OldIron
                Sports & Entertainment Company, Inc.

            
	
              Benjamin
                Safirstein, M.D.

            
	
              Daniel
                Keller

            
	
              Brandon
                Fradd

            
	
              Joseph
                Gatti

            
	
              John
                Keating

            
	
              Valhalla
                Investment Partners, LP

            
	
              Roger
                London, M.D.

            
	
              Mark
                Gardy, M.D.

            
	
              Edward
                Giles

            
	
              Pike
                Sullivan

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