Document:

pm10q033107-ex1043.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.43

EMPLOYMENT AGREEMENT

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered on March 22, 2007, by and between ProxyMed, Inc., a Florida corporation, d/b/a MedAvant Healthcare Solutions (the "Company"), and Peter E. Fleming, III (“Executive”).

        WHEREAS, upon the terms and subject to the conditions of this Agreement, the Company desires to employ the Executive, and Executive is willing to accept such employment.

        NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth hereinafter and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive intending to be legally bound agree as follows:

1.     Term. The initial term of the Agreement shall commence on March 26, 2007, (the “Effective Date”), and shall continue for three (3) years and shall be automatically renewed from year to year thereafter (hereafter, the initial term and any renewals thereof shall constitute the “Term”), unless either party provides the other party with notice of its intent not to renew this Agreement not less than ninety (90) days nor more than 120 days prior to the expiration of the then-current term or unless this Agreement is earlier terminated in accordance with its terms.

2.     Position; Duties; Loyalty.

        a) Position. Executive will be employed by Company and shall render service to Company as its GENERAL COUNSEL, reporting to the Chief Executive Officer or their designees, pursuant to the terms, provisions and conditions hereinafter set forth.

        b) Location. The location as to where the Executive’s duties are to be performed will be determined at the reasonable discretion of the Company.

        c) Duties. Executive shall be employed by Company on a full-time, exclusive basis. Executive will be required to travel on business, as is customary and usual for Executive’s position. Executive shall perform such duties and have such authority and responsibilities customarily accompanying his/her position and as reasonably directed by the Chief Executive Officer of the Company consistent with the Executive's position. Executive shall perform the duties and have the authority and responsibilities customarily accompanying those of GENERAL COUNSEL of a public company, including without limitations, those prescribed by the Company’s By-laws or as may be assigned to the Executive from time to time by the Company’s Board of Directors.

        d) Loyalty. Executive shall devote the full working time required for Executive’s position and shall give Executive’s best efforts to the business of the Company and to the performance of the duties and obligations described in this Agreement. Except as maybe authorized in writing by the Chief Executive Officer of the Company, Executive shall not, directly or indirectly, alone, or as a partner, officer, director or shareholder of any other institution, be engaged in any other commercial activities whatsoever, or continue or assume any other corporate affiliations except for (i) an Affiliate; (ii) passive investments; and (iii) minimal time utilized for business activities that do not compete with the business of the Company or its subsidiaries. As used herein, the term “Affiliate” shall refer to any entity that is owned or controlled by, under common ownership or control with, or which owns or controls the Company or any of its subsidiaries, now or in the future.

3.     Compensation and Expenses.

        a) Salary. In consideration for the services rendered by the Executive under this Agreement, Company shall pay the Executive a monthly base salary of $18,750.00 per month (“Base Salary”) in accordance with the Company's customary payroll practices. Executive performance reviews (with or without a wage increase) will be conducted at least annually or as otherwise agreed to by the parties in writing. The Company shall adjust Executive’s Base Salary for any wage increases approved in writing by the Board of Directors or its Compensation Committee in its sole discretion. As used herein, the term “Base Compensation” shall refer collectively to (i) Executive’s Base Salary, adjusted for any wage increases, (ii) the Options (as defined in Section 3(b)), (iii) future options granted pursuant to any Stock Option Plans (as defined in Section 3(b)), (iv) any Bonuses, (v) any bonuses to which Executive may be entitled pursuant to any Bonus Plan, (vi) Vacation; and (vii) Benefits.

        b) Bonus. The Executive shall be entitled to and may earn such bonuses (“Bonuses”) as may be awarded from time to time by the Board of Directors of the Company, sitting as a whole or in committee, in its sole discretion, including pursuant to any bonus plan (“Bonus Plan”) implemented by the Company, and to participate in any stock option plans (“Stock Option Plans”) or other Bonus Plans which the Company may now have or in the future develop and for which the Executive qualifies for eligibility under the terms of such plan.

        c) Expenses. Company shall promptly pay or reimburse the Executive for all reasonable business expenses actually incurred or paid by the Executive in the performance of Executive’s services hereunder in accordance with the policies and procedures of the Company, provided that Executive properly accounts therefore.

        d) Tax Withholding. The Company shall have the right to deduct or withhold from all compensation due Executive hereunder any and all sums required, including without limitation for Federal income, social security and Medicare taxes and all state and local taxes now applicable or that may be enacted and become applicable in the future.

4.     Benefits.

        a) Vacation. The Executive shall be entitled to a yearly vacation of four (4) weeks during the first year of this Agreement, and thereafter such additional time as may be provided by the Company in writing in its then-current policies or otherwise, at full pay to be accrued and taken in accordance with the Company’s policies in effect from time to time (“Vacation”). Vacation shall accrue ratably during each calendar year in accordance with Company policies. Vacation not taken in one calendar year may be carried over to the following calendar year subject to any limitations set forth in the Company policies in effect from time to time. Executive shall not be entitled to receive any additional compensation from the Company for Executive’s failure to take all of Executive’s granted vacation time. In the event Executive's employment is terminated pursuant to Section 5(b) below, any vacation time used but not earned at the time of termination shall be deducted from any monies owed to Executive.

        b) Participation in Benefit Plans. Executive shall be eligible for and entitled to receive all other benefits and perquisites (“Benefits”) offered or extended to other senior executives of the Company.

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5.     Termination.

        a) Involuntary Termination for Death or Disability. This Agreement shall terminate immediately upon Executive’s death. The Company may terminate Executive’s employment with the Company for Disability. For purposes of this Agreement, "Disability" is defined to mean the inability of Executive due to illness or physical or mental infirmity (as determined by a physician selected by Executive and acceptable to the Company) to perform Executive’s duties hereunder on a full-time basis for six (6) consecutive months with reasonable accommodation by the Company. Upon termination due to death or Disability, Executive or Executive’s beneficiary or estate or legal representative shall be entitled to receive the amounts payable under Section 5(c).

        b) Termination by Company For Cause. The Company may terminate Executive's employment with the Company at any time “For Cause” effective immediately, unless stated otherwise in writing, upon giving written notice thereof to Executive, which notice shall state with reasonable specificity the facts supporting the termination “For Cause.” “For Cause” shall include the following: 

                (i) Conviction of, or pleading guilty to, a felony or any crime involving moral turpitude, fraud, dishonesty or theft or engaging in any act which is a violation of any law or regulation protecting the rights of employees or;

                (ii) Failure by Executive to satisfactorily perform the duties stated herein or to substantially perform such duties in accordance with any tasks, goals, and objectives as assigned from time to time by the Company in writing, if Executive has not corrected or remedied, or has not commenced to correct or remedy, such unsatisfactorily or non-substantial performance of such specified duties within thirty (30) days (or such other time as may be provided in writing by the Company) of Executive’s actual receipt of such written notice; or

                (iii) Executive’s gross negligence or willful misconduct relating to the Company that is materially injurious to the Company; or

                (iv) Executive’s excessive use of alcohol or illegal drugs that (A) interferes with the performance of Executive’s duties hereunder; and (B) continues even after written warning regarding such excessive use is actually received by Executive; or

                (v) Executive’s abandonment of his position or termination of this Agreement for “No Good Reason;” or 

                (vi) Any material breach by Executive of this Agreement or of any of the Company’s applicable written policies then in effect, including without limitations, the Company’s Code of Ethics for Officers and Directors with written notice thereof by the Company, provided such notice is actually received by Executive and an appropriate period to cure such material breach, if such breach is curable, is given and has expired. 

        Upon the Company’s termination of this Agreement and Executive's employment For Cause, the Executive shall be entitled to, and the Company shall pay the Executive the following “For Cause Separation Pay”: the Executive’s Base Salary and benefits through the effective date of termination at the Executive’s then current rate (including any applicable pro rated bonus and accrued vacation pay). Except as provided for herein or in any other written agreement, the Company shall have no other liabilities or obligations to Executive upon payment in full of the For Cause Separation Pay.

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        c) Termination by Company Without Cause. The Company may terminate “Without Cause” Executive’s employment with the Company or this Agreement at any time for any or no reason upon thirty (30) Days written notice. Such termination by Company shall be deemed to be “without cause” by the Company. In the event of termination by the Company pursuant to this Section, Executive shall execute a full and complete release of any and all claims against the Company in a form satisfactory to the Company, in which event, for a period of six (6) months commencing from the effective date of termination, the Executive shall be entitled to and shall receive, and the Company shall pay the following “Without Cause Separation Pay”: (i) An amount equal to Executive's Base Salary as of the date of termination; plus (ii) a pro rata portion of any accrued vacation not already taken and of any bonus that would have been paid to Executive under any bonus plan which is adopted by the Company's Compensation Committee or Board of Directors in such year if the Company and Executive had met the targeted goals to the date of termination; plus (iii) the continuation for three (3) months from the effective date of termination of all of Executive’s benefits including, without limitation, all insurance plans, on the same terms and conditions as had been provided to Executive prior to the termination, all of the foregoing which shall be payable in accordance with the Company's customary payroll practices then in effect, plus (iv) any unvested options shall be vested as of the date of termination.

        d) Termination by Executive For Good Reason. Executive may terminate this Agreement for “Good Reason” by giving the Company thirty (30) days prior written notice (the “Notice Period”) to that effect, specifically stating Executive’s Good Reason for terminating in sufficient detail to allow the Company to respond effectively to the notice, with the termination becoming effective on the 31st day after such notice is actually received by the Company (the “Termination Date”), unless the Company at its option cures any alleged breach, if curable, on or before the Termination Date, or if the breach is not capable of being cured within the Notice Period, Company made good faith efforts to cure any alleged breach prior to the Termination Date. The stated Good Reason must be one or more of any of the reasons defined as a “Good Reason” herein. As used in this Agreement, a “Good Reason” means termination by Executive only for any one or more of the following reasons: 

                (i) Any reduction of Executive’s then-current Base Salary without Executive’s prior written consent; or 

                (ii) Any material breach of this Agreement by the Company, not cured or in the process of being cured by the Company as provided herein after the Company receives not less than 30 days prior written notice by the Executive.

                An Executive’s termination for any of the foregoing Good Reasons shall be treated the same as a termination “Without Cause” by the Company for purposes of calculating separation pay, entitling the Executive to the Without Cause Separation Pay set forth in Section 5(c).

        e) Termination by Executive for No Good Reason. Executive may terminate this Agreement for any reason (other than a Good Reason) or no reason at any time with not less than thirty (30) days prior written notice to the Company (such termination shall be called a termination for "No Good Reason"). After the Company receives notice of a termination for No Good Reason, the Company may by written notice to the Executive cause the effective date of any such termination to be accelerated without causing such termination to be considered a termination by the Company Without Cause. Executive’s termination for No Good Reason shall be treated the same as a termination “For Cause” by the Company for purposes of calculating separation pay, entitling the Executive to the For Cause Separation Pay set forth in Section 5(b). For avoidance of doubt, a termination by Executive for any reason that is also a Good Reason shall be treated as a termination by Executive for Good Reason as set forth in Section 5(d).

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        f) Return of Company Property. Upon any termination of this Agreement, Executive shall immediately return to the Company all property of the Company in Executive's possession, including Confidential Information (as defined below). Executive acknowledges that the Company may withhold any compensation and benefits owed to Executive hereunder until all such property is returned in good condition, normal wear and tear excepted.

        g) Change in Control. If, within ninety (90) days prior to a Change of Control, as defined in Executive's Stock Option Agreement, the Agreement terminates for any reason (other than pursuant to Section 5(b) or (e) above), then, (i) any unvested options shall vest as of the date of the Change of Control and shall remain vested and exercisable as specified in Executive's Stock Option Agreement, and (ii) Executive shall receive, and the Company shall pay the Executive, the “Without Cause Separation Pay” set forth in Section 5(c) above.

6.     Covenants of Executive.

        a) Executive agrees that during the Term of this Agreement and for one (1) year following its expiration or termination for any or no reason, including without limitation, “For Cause”, “Without Cause”, “For Good Reason”, or “No Good Reason”, Executive will not, directly or indirectly, without the prior written consent of the Company, induce or solicit any person employed or hereafter employed by the Company to leave the employ of the Company, or solicit, recruit, hire or attempt to solicit, recruit or hire any person employed by the Company.

        b) Executive agrees that for a period of two (2) years after the expiration or termination of this Agreement for any or no reason, including without limitation, “For Cause”, “Without Cause”, “For Good Reason”, or “No Good Reason”, Executive will not, directly or indirectly, without the prior written consent of the Company, solicit or attempt to solicit, divert or take away, or attempt to divert or take away, Customers or their laboratory business from the Company and/or the Company’s then-current Affiliates. As used in the preceding sentence, the term “Customer” shall include, however known to Executive as of the date of such termination or expiration, (i) any current end-user of the Company’s or its then-current Affiliates’ products or services, or any potential end-user thereof with whom the Company or its then-current Affiliates have had contact with within the preceding six (6) months; (ii) any current suppliers of the Company’s or its then-current Affiliates; and/or (iii) vendor of the Company or its then-current Affiliates or reseller of the Company or its then-current Affiliates; and/or (iv) their Affiliates, successors or assigns.

        c) Executive agrees and acknowledges that Executive will disclose promptly to the Company every discovery, improvement and invention made, conceived or developed by Executive during the entire period of employment (whether or not during working hours) which discoveries, improvements or inventions are capable of use in any way in connection with the business of the Company. To the fullest extent permitted by law, all such discoveries, inventions and improvements will be deemed works made-for-hire. Executive grants and agrees to convey to Company or its nominee the entire right, title and interest, domestic and foreign, which Executive may have in such discoveries, improvements or inventions, or a lesser interest therein, at the option of Company. Executive further agrees to promptly, upon request, sign all applications for patents, copyrights, assignments and other appropriate documents, and to perform all acts and to do all things necessary and appropriate to carry out the intent of this section, whether or not Executive is still an employee of the Company at the time of such requests.

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        d) Executive agrees and acknowledges that the Confidential Information of the Company is valuable, special and unique to its business, that such business depends on such Confidential Information, and that the Company wishes to protect such Confidential Information by keeping it confidential for the exclusive use and benefit of the Company. Based on the foregoing, Executive agrees to undertake the following obligations with respect to such Confidential Information:

                (i) Executive agrees to keep any and all Confidential Information in trust for the use and benefit of the Company;

                (ii) Executive agrees that, except as required by Executive's duties or authorized in writing by the Company, Executive will not at any time during and for a period of three (3) years after the termination of Executive’s employment with the Company, disclose, directly or indirectly, any Confidential Information of the Company to any third party; except as may be required by applicable law or court order, in which case Executive shall promptly notify Company so as to allow it to seek a protective order if it so elects;

                (iii) Executive agrees to take all reasonable steps necessary, or reasonably requested by the Company, to ensure that all Confidential Information of the Company is kept confidential for the use and benefit of the Company and its subsidiaries; and

                (iv) Executive agrees that, upon termination of Executive’s employment by the Company or at any other time the Company may in writing so request, Executive will promptly deliver to the Company all materials constituting Confidential Information (including all copies and derivatives thereof) that are in the possession of or under the control of Executive. Executive further agrees that, if requested by the Company to return any Confidential Information pursuant to this Subsection (iv), Executive will not make or retain any copy or extract from such materials.

        For the purposes of this Section 6(d), "Confidential Information" means any and all information, including derivative works, developed by or for the Company or entrusted to the Company in confidence by its customers, of which Executive gained knowledge by reason of Executive’s employment by the Company, which is not generally known in any industry in which the Company is or may become engaged, but does not apply to information which is generally known to the public or the trade, unless such knowledge results from an unauthorized disclosure by Executive. Confidential Information includes, but is not limited to, any and all information developed by or for the Company concerning plans, marketing and sales methods, materials, processes, business forms, procedures, devices used by the Company, its suppliers and customers with which the Company had dealt with prior to Executive's termination of employment with the Company, plans for development of new products, services and expansion into new areas or markets, internal operations, and any trade secrets, proprietary information of any type owned by the Company, together with all written, graphic and other materials relating to all or any part of the same. The Company will receive all materials, including, software programs, source code, object code, specifications, documents, abstracts and summaries developed in connection with Executive's employment. Executive acknowledges that the programs and documentation developed in connection with Executive's employment with the Company shall be the exclusive property of the Company, and that the Company shall retain all right, title and interest in such materials, including without limitation patent and copyright interests. Nothing herein shall be construed as a license from the Company to Executive to make, use, sell or copy any inventions, ideas, trade secrets, trademarks, copyrightable works or other intellectual property of the Company during the Term of this Agreement or subsequent to its termination.

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        e) Executive acknowledges that there is no general geographical restriction contained in this Section 6 because the Company’s and/or Affiliates’ Customers are not confined to one geographical area or operate on a national level. Notwithstanding the foregoing, if a court of competent jurisdiction were to determine that any of the foregoing covenants would be held to be unreasonable in time or distance or scope, the time or distance or scope may be reduced by appropriate order of the court to that deemed reasonable.

        f) Executive confirms that Executive is not bound by the terms of any agreement with any previous Company or other party which restricts in any way Executive’s use or disclosure of information or Executive’s engagement in any business, except as Executive may disclose in a separate schedule attached to this Agreement prior to Company’s and Executive’s execution of this Agreement. Further, Executive represents that Executive has delivered to the Company prior to executing this Agreement true and complete copies of any agreements disclosed on such attached schedule. Executive represents to the Company that Executive’s execution of this Agreement, employment with the Company and the performance of Executive’s proposed duties for the Company will not violate any obligations Executive may have to any such previous Company or other party. In any work for the Company, Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous Company or other party, and will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party. In the event of breach of this subsection (f) Executive hereby agrees to defend, indemnify and hold harmless the Company, its officers, directors, employees, agents (the "Indemnified Parties") from any and all damages, suits, claims, liabilities, actions (individually and collectively, the "Indemnity Event") arising or resulting from such breach. In the event of any Indemnity Event, the Indemnified Parties shall provide Executive with timely written notice of same, and thereafter Executive shall at its own expense defend, protect and hold harmless the applicable indemnified Parties against said Indemnity Event. If the Executive should fail to so defend and/or indemnify and save harmless the Indemnified Parties, then in such instance the Indemnified Parties shall have full rights to defend, pay or settle said Indemnity Event on their behalf without notice to Executive and with full rights to recourse against Executive for all fees, costs, expenses and payments made or agreed to be paid to discharge said Indemnity Event.

        g) Assistance in Litigation. Executive shall upon reasonable notice, furnish such information and proper assistance to the Company as it may reasonably require in connection with any litigation in which the Company is, or may become, a party either during or after Executive’s employment with the Company.

        h) Injunctive Relief.

                i) Executive acknowledges and agrees that the covenants and obligations contained in this Section 6 relate to special, unique and extraordinary matters and that a violation of any of the terms of this Section will cause the Company irreparable injury for which adequate remedies at law are not available. Therefore, Executive agrees that the Company shall be entitled (without having to post a bond or other surety) to an injunction, restraining order, or other equitable relief from any court of competent jurisdiction, restraining the Executive from committing any violation of the covenants and obligations set forth in this Section 6.

                ii) The Company's rights and remedies under this Section 6 are cumulative and are in addition to any other rights and remedies the Company may have pursuant to the specific provisions of this Agreement and at law or in equity.

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7.     Miscellaneous.

        a) Attorney's Fees. In the event a proceeding is brought to enforce or interpret any part of this Agreement or the rights or obligations of any party to this Agreement, each party shall pay their own fees and expenses, including reasonable attorney's fees and costs.

        b) Successors and Assigns. This Agreement and the benefits hereunder are personal to the Company and are not assignable or transferable by the Executive. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Company and the Executive, and the Executive's heirs and legal representatives, and the Company's successors and assigns.

        c) Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of Florida, without regard to the application of Florida’s principles of conflict of laws.

        d) Arbitration. Except for disputes relating to Section 6(d) of this Agreement or any injunctions, any and all disputes or controversies that shall arise under or in connection with this Agreement or in any other way related to Executive's employment by the Company, including termination of employment, shall be submitted to a panel of three arbitrators under the National Rules for the Resolution of Employment Disputes of the American Arbitration Association then in effect. The parties hereby acknowledge that the Federal Arbitration Act takes precedence over any state arbitration statutes, rules and regulations. Each of the arbitrators shall be qualified and experienced in employment related matters with at least one arbitrator being a licensed attorney. The arbitrators must base their determination solely on the terms and conditions of this Agreement and the law in the State of Florida. The arbitrators shall have the authority to award any remedies that a court may order or grant, except that they will have no authority to award punitive damages or any other damages not measured by the prevailing party’s actual damages, and may not, in any event, make any ruling, finding or award that does not conform to the terms and conditions of this Agreement. Arbitration shall be held in Fort Lauderdale, Florida, and the parties hereby agree to accept service of process served in accordance with the Notices provision of this Agreement and in the personal jurisdiction and venue as set out herein. Both parties expressly covenant and agree to be bound by the decision of the arbitrators as the final determination of the matter in dispute. Judgment upon the award rendered by the arbitrators may be entered into any court having jurisdiction thereof.

        e) Notices. All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given if delivered personally or sent by certified mail, return receipt requested, postage prepaid, to the parties to this Agreement addressed to the Company’s then-current Chief Executive Officer at its then principal office, as notified to Executive, or to the Executive at Executive’s most current address as shown in Executive’s personnel file, or to either party hereto at such other address or addresses as Executive or it may from time to time specify for such purposes in a notice similarly given.

        f) Modification; Waiver. No provisions of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is approved by a duly authorized officer of the Company and is agreed to in a writing signed by the Executive and such officer. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

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        g) Headings. The headings in this Agreement are for convenience of reference only and shall not control or affect the meaning or construction of this Agreement.

        h) Validity. The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

        i) Severability. The invalidity of any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and if any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, or section or sections had not been inserted.

        k) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

        l) Surviving Provisions. Any portion of this Agreement which by it nature survives the termination of this Agreement, including Section 6, shall survive the termination of this Agreement.

        m) Entire Agreement. Except as modified by this Agreement, all of Executive’s benefits and obligations are as set forth in the Company’s policies in effect from time to time. Other than the Company’s policies in effect from time to time, as modified herein, no agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party, which are not set forth expressly in this Agreement. This Agreement constitute the final and entire agreement between the parties, and supersedes all prior written and oral agreements, understandings, or communications with respect to the subject matter of this Agreement.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

	COMPANY  	  	EXECUTIVE  
	  
	By:  	  	/s/ JOHN G. LETTKO  	  	By:  	  	/s/ PETER E. FLEMING III  
			

				

	  	  	Signature  	  	  	  	Signature  
			 				
	Print Name:  	JOHN G. LETTKO  	  	Print Name:  	PETER E. FLEMING III  
		

			

9pm10q033107-ex1044.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.44

PURCHASE AGREEMENT

BY AND BETWEEN

SURESCRIPTS, LLC

AND

PROXYMED, INC.

April 30, 2007

	 PURCHASE AGREEMENT
	BY AND BETWEEN
	SURESCRIPTS, LLC,
	AND
	PROXYMED, INC.
	  
	  
	List of Exhibits
	Exhibit A  	  	List of all pharmacies connected to the Pharmacy Health Information Exchange
	Exhibit B  	  	Seller Pharmacy Contracts  
	Exhibit C  	  	Seller Prescriber Contracts  
	Exhibit D  	  	Form of Escrow Agreement  
	Exhibit E  	  	Form of Non-Competition Agreement  
	Exhibit F  	  	Buyer Disclosure Schedule  
	Exhibit G  	  	Seller Disclosure Schedule  
	Exhibit H  	  	Seller Talking Points  

Execution Version

PURCHASE AGREEMENT

BY AND BETWEEN

SURESCRIPTS, LLC

AND

PROXYMED, INC.

        THIS PURCHASE AGREEMENT (the “Agreement”), dated as of this 30th day of April, 2007 (the “Effective Date”), is made by and between ProxyMed, Inc. d/b/a MedAvant Healthcare Solutions, a corporation duly organized and validly existing under the laws of the State of Florida (“Seller”), and SureScripts, LLC, a limited liability company duly organized and validly existing under the laws of the State of Virginia (“Buyer”).

        WHEREAS, Seller is a party to the Seller Contracts (defined below) pursuant to which Seller provides various back-end services to pharmacies and providers through its proprietary national healthcare information network, including enabling pharmacies and providers to exchange prescription information electronically through a system referred to, from time to time, as one or more of the following names: Phoenix, ProxyMed Network, ProxyNet Network, PreScribe.net, and/or ProxyNet Interface (collectively, the “ProxyMed Network” and, together with the Seller Contracts, the “Pharmacy Processing Business”; provided, however, it is agreed that for purposes of this Agreement, the terms ProxyMed Network and Pharmacy Processing Business shall apply only to that aspect of Seller’s proprietary national healthcare information network applicable to Electronic Prescribing Transactions, as defined below);

        WHEREAS; Seller licenses third party software applications to physicians so that they may connect to the ProxyMed Network and send and receive electronic prescription information via the ProxyMed Network, and such software applications are referred to, from time to time, by one or more of the following names: PreScribe, ProxyMed.com, MedAvantHealth.com (collectively, the “MedAvant Prescribing Applications”);

        WHEREAS, Buyer operates a network that facilitates the electronic exchange of prescription information between pharmacies and providers (the “Pharmacy Health Information Exchange”);

        WHEREAS, Buyer and Seller (d/b/a ProxyMed Transaction Services, Inc.) are parties to that certain Prescriber Network Aggregator Agreement, dated as of May 2, 2005 (the “ProxyMed SureScripts Agreement”);

        WHEREAS, Seller is a party to that certain Walgreens Purchase Agreement, dated June 27, 1997, as amended (“Walgreens Agreement”), with Walgreen Co., pursuant to which Seller’s sale of the Pharmacy Processing Business triggers the obligation of Seller to pay Walgreens a penalty in the amount of ten million dollars ($10,000,000); and

        WHEREAS, Seller desires to sell the Pharmacy Processing Business to Buyer, and Buyer desires to purchase the Pharmacy Processing Business from Seller, upon the terms and conditions set forth herein;

        NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

ARTICLE 1.

PURCHASE OF PHARMACY PROCESSING BUSINESS

        SECTION 1.1. Incorporation of Recitals. The recitals set forth above are incorporated herein by reference.

        SECTION 1.2. Terms of Purchase and Sale. 

                a. As of the Effective Date, Seller will sell, and Buyer shall purchase, all current and future Electronic Prescribing Transactions (as defined below) processed by the ProxyMed Network (the “Pharmacy Processing Business”). “Electronic Prescribing Transactions” is defined as all electronic prescribing messages (including, but not limited to, new prescriptions, refill requests, refill responses, stop orders), formulary and/or eligibility messages related to prescription claims, and patient identifiable medication history messages as derived from electronic prescribing messages, formulary and/or eligibility messages, and/or the dispensed history data bases of pharmacies that are processed by and through the ProxyMed Network, whether through true electronic data interchange or facsimile. Seller shall continue to process Electronic Prescribing Transactions through the ProxyMed Network in the normal course of its business, consistent with past practices and course of conduct, until the Termination Date (as defined below), and Seller shall retain all personnel necessary and devote internal and external resources, all at its own cost and expense, necessary to operate the ProxyMed Network, consistent with past practices and course of conduct, during the transition period contemplated by Sections 1.2. f and/or 1.2. g herein.

                b. As of the Effective Date, the ProxyMed SureScripts Agreement is deemed amended, without any further action of the parties required, to amend Exhibit Five thereof to be in the form and substance of Exhibit A hereto, thereby adding to such exhibit all pharmacies connected to the Pharmacy Health Information Exchange, whether directly or indirectly.

                c. Seller represents and warrants to Buyer that Exhibit B hereto sets forth a list of (i) all customers with contracts pursuant to which Electronic Prescribing Transactions are processed, as of the Effective Date, to which Seller is a party to with respect to connectivity of any pharmacy with the ProxyMed Network and (ii) to its knowledge, all contracts pursuant to which Electronic Prescribing Transactions are processed to which Seller is a party to with respect to connectivity of any pharmacy with the ProxyMed Network (the “Pharmacy Contracts”). Seller shall terminate or cause to be terminated each Pharmacy Contract in conjunction and simultaneously with the termination of the technical connection (electronic or fax connection) between such contracted pharmacy and the ProxyMed Network. For the periods from the Effective Date until the termination of each such Pharmacy Contract, Seller shall bill each such pharmacy for all Electronic Prescribing Messages pursuant to its customary practice and historic rates, without any deduction, discount, or offset not in the historic ordinary course of business, and each such bill or invoice shall direct the applicable pharmacy to pay such amounts directly to SureScripts in satisfaction of the invoice. In the event that any such pharmacy sends payment for

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any such invoice to Seller, Seller shall immediately pay such amounts over to Buyer. For the periods from and after the termination of any such Pharmacy Contract, Buyer and/or its value added reseller, as the case may be, shall have the right to bill, and collect from, such pharmacies all on the terms and conditions of the agreements between SureScripts or its value added reseller, on the one hand, and such pharmacy, on the other hand.

                d. Seller represents and warrants to Buyer that Exhibit C hereto sets forth a list of (i) all customers with contracts pursuant to which Electronic Prescribing Transactions are processed, as of the Effective Date, pursuant to which Seller provides any third party prescriber application with connectivity to the ProxyMed Network and (ii) to its knowledge, all contracts pursuant to which Electronic Prescribing Transactions are processed pursuant to which Seller provides any third party prescriber application with connectivity to the ProxyMed Network (the “Prescriber Contracts” and, together with the Pharmacy Contracts, the “Seller Contracts”). As soon as reasonably possible after the Effective Date, Seller shall terminate or cause to be terminated all Prescriber Contracts in conjunction and simultaneously with the termination of the technical connection (electronic or fax connection) between such contracted third party prescriber application and the ProxyMed Network. Until termination of such Prescriber Contracts, Seller shall be entitled to bill and invoice such third party prescriber applications in the normal course of business, and SureScripts shall have no right to such billed amounts.

                e. Buyer agrees that, from and after the Effective Date, Buyer shall continue to pay Seller the Adoption Incentive Fee as contemplated by Exhibit One of the ProxyMed SureScripts Agreement for any Eligible Transaction, as defined in such Exhibit One, processed by the ProxyMed Network, pursuant to the ProxyMed SureScripts Agreement until such agreement is terminated pursuant to Section 1.2h below.

                f. The parties acknowledge that as soon as reasonably possible after the Effective Date, Seller shall take steps to divest itself of the MedAvant Prescribing Applications. Seller shall sell the MedAvant Prescribing Applications only to an entity that has a contract with Buyer or Buyer’s value added reseller for connectivity to the Pharmacy Health Information Exchange. In the event, after a period of six (6) months from the Effective Date, Seller has not sold the MedAvant Prescribing Applications to an entity that has a contract with Buyer or Buyer’s value added reseller for connectivity to the Pharmacy Health Information Exchange, then Seller shall, during the subsequent six (6) month period, cooperate with Buyer and take all steps reasonably necessary as requested by Buyer to transfer either the MedAvant Prescribing Applications or the users of such MedAvant Prescribing Applications to an entity(ies) of Buyer’s selection, all for no charge or consideration. Seller shall retain all personnel necessary and devote internal and external resources, all at its own cost and expense, necessary to operate the MedAvant Prescribing Applications consistent with past practices until the MedAvant Prescribing Applications or the users thereof have been sold or transferred pursuant to the terms hereof.

                g. Seller shall take all steps reasonably necessary to terminate (i) all connectivity of any third party with the ProxyMed Network, (ii) unless previously sold and transferred to a third party, all connectivity of the MedAvant Prescribing Applications with the ProxyMed Network, and (ii) all operations of Pharmacy Processing Business, all to occur as soon as reasonably possible after the Effective Date, but no later than July 31, 2007 (the

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“Termination Date”); provided, however, that either Buyer or Seller may extend the Termination Date with respect to the connectivity of any third party (i.e., not the MedAvant Prescribing Applications) to the ProxyMed Network for no more than three (3) periods of thirty (30) days each. Notwithstanding anything herein to the contrary, all connectivity of the MedAvant Prescribing Applications shall be transferred to the Pharmacy Health Information Exchange no later than July 31, 2007. Unless mutually extended in writing by both parties, after the Termination Date, Seller shall not operate the Pharmacy Processing Business or the ProxyMed Network for any purpose whatsoever. Immediately after all connectivity of any third party vendor applications and the MedAvant Prescribing Applications with the ProxyMed Network are terminated, all Seller Contracts are terminated, and all operations of the Pharmacy Processing Business are terminated, Seller shall provide written notice to Buyer, in form and substance acceptable to Buyer, representing and warranting that such has occurred (the “Termination Affidavit”).

                h. The ProxyMed SureScripts Agreement shall be deemed terminated, and of no further force and effect (other than those terms that are intended to survive termination) on the later to occur of (i) the Termination Date or (ii) when the MedAvant Prescriber Applications or their users have been transferred pursuant to Section 1.2. f.

        SECTION 1.3. Walgreen. As a condition of the transaction detailed herein, Seller must obtain from Walgreen Co. a written termination of Seller’s obligations in the Walgreens-ProxyMed PreScribe Purchase Agreement.

        SECTION 1.4. No Assumption of Liabilities. Seller specifically agrees that Buyer is not assuming any liabilities, contracts, employees, or obligations, known or unknown, contingent or otherwise, of Seller pursuant to this Agreement or the transactions contemplated hereby.

        SECTION 1.5. Purchase Price. Subject to the terms and conditions of this Agreement, and in reliance on the representations, warranties, and covenants contained herein, on the Effective Date, Seller shall sell to Buyer and Buyer shall purchase from Seller the Pharmacy Processing Business for the total amount of five hundred thousand dollars ($500,000) (the “Purchase Price”). The Purchase Price shall be paid as follows:

                a. Four hundred thousand dollars ($400,000) shall be paid to Seller on the Effective Date in the form of cash, wire transfer, or other immediately available funds; and

                b. One hundred thousand dollars ($100,000) (the “Escrow Amount”) shall be deposited into an escrow account (an “Escrow Account”) on the Effective Date pursuant to the escrow agreement attached hereto as Exhibit D (the “Escrow Agreement”). The Escrow Amount shall be paid to Seller on, or immediately after, the Termination Date (as extended pursuant to Section 1.2. g) so long as (i) Buyer shall have received an acceptable Termination Affidavit, and (ii) there shall have been no breach of any of the representations and warranties of Seller as set forth in Article 3.

ARTICLE 2.

OTHER AGREEMENTS

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        SECTION 2.1. Noncompetition Agreement. On the Effective Date, Seller shall enter into a Noncompetition Agreement with Buyer, substantially in form and substance as set forth in Exhibit E, attached hereto and incorporated by reference (“Noncompetition Agreement”).

        SECTION 2.2. Cooperation and Further Assurances. From and after the Effective Date, Seller shall fully cooperate with, and shall cause all of its employees and agents to fully cooperate with, Buyer to transition on or before the Termination Date all Electronic Prescribing Transactions from the ProxyMed Network to the Pharmacy Health Information Exchange in a manner than minimizes to the greatest extent possible any disruption or interference of service to the customers of either Buyer or Seller. Such cooperation shall include, but not be limited to, facilitating contacts between Buyer and any entities contracted with Seller (i.e., pharmacies or vendors of prescriber applications). Each party shall bear its own expenses in connection with any such transition.

                b. From and after the Effective Date, Seller will provide Buyer with reports detailing Electronic Prescribing Transactions processed and all bills and invoices sent by Seller from the Effective Date until the Termination Date.

                c. From time to time after the Effective Date for a period of two (2) years from the Effective Date, Seller shall give to Buyer and its representatives, auditors, and counsel full access during normal business hours to all of the properties, books, records, contracts, licenses, franchises, and all of the documents of Seller relating to the business being sold and transferred hereunder, and shall furnish to Buyer all information with respect thereto as Buyer may from time to time reasonably request.

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

OF SELLER

        Seller represents and warrants to Buyer that, except as set forth on the Disclosure Schedule attached hereto as Exhibit F and incorporated herein by reference (which Disclosure Schedule either (i) makes explicit reference to the particular representation or warranty as to which exception is taken or (ii) describes the exception with sufficient specificity and in such a manner that a reasonable person could determine, without any independent investigation, from the terms of this Agreement and the Disclosure Schedule, the particular representation(s) or warranty(ies) as to which exception is taken):

        SECTION 3.1. Organization, Qualification, and Power of Seller. Seller (a) is a duly organized and validly existing corporation in good standing under the laws of the State of Florida; (b) has the requisite corporate power and authority to carry on its business; and (c) has all requisite corporate power and authority and licenses, permits, franchises, certificates, authorizations, approvals, consents, and rights to own and operate the Pharmacy Processing Business.

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        SECTION 3.2. Former Names. Seller either was formally known as, or is the legal owner of, or is the successor to the businesses known as, at one time or another, Phoenix, ProxyMed, Inc., ProxyMed Network, ProxyNet Network, PreScribe.net, and/or ProxyNet Interface, and that no other names are being used, or have been used, to describe Seller’s healthcare information network to permit pharmacies and providers to exchange prescription information electronically.

        SECTION 3.3. Contracts. Seller represents and warrants to Buyer that Seller has provided to Buyer true and correct copies of the Seller Contracts as currently in force and effect. Seller represents and warrants to Buyer that no party to any such contract has provided, or threatened to provide, a notice of breach, a notice of termination, and no such party has submitted any complaint to Seller regarding performance under any of the contracts. Buyer represents and warrants to Seller that all due diligence materials provided to Buyer in connection with this transaction, including but not limited to, volume reports, were when provided and are as of the Effective Date true and correct, without any material misstatement or omission therein.

        SECTION 3.4. Validity. Seller has the full legal power and authority to execute, deliver, and perform this Agreement and all other agreements and documents necessary to consummate the contemplated transactions, and all actions of Seller necessary for such execution, delivery, and performance have been taken. This Agreement and all agreements related to this transaction requiring execution by Seller have been duly executed and delivered by Seller and constitute the legal, valid, and binding obligation of Seller, enforceable in accordance with their respective terms (subject as to enforcement of remedies to the discretion of courts in awarding equitable relief and to applicable bankruptcy, reorganization, insolvency, moratorium, and similar laws affecting the rights of creditors generally). The execution and delivery by Seller of this Agreement, and the performance of its obligations hereunder, do not require any action or consent of any party other than Seller pursuant to any contract, agreement, or other undertaking of Seller, or pursuant to any order or decree to which Seller is a party or to which any of its properties or assets are subject, and will not violate any provision of law, the Articles of Incorporation or Bylaws of Seller, any order of any court or other agency of the government, or any indenture, agreement or other instrument to which Seller, or any of its properties or assets, are bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or result in the creation or imposition of any claim of any nature whatsoever upon any of the properties or assets of Seller.

        SECTION 3.5. Disclosure. No representation or warranty by Seller in this Agreement, and no exhibit, schedule or certificate furnished or to be furnished by Seller pursuant hereto, (a) contains any untrue statement of a material fact or (b) omits to state a fact required to be stated therein or necessary to make the statements contained herein or therein, in light of the circumstances in which they were made, not materially misleading.

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ARTICLE 4.

REPRESENTATIONS AND WARRANTIES

OF BUYER

        Buyer represents and warrants to Seller that, except as set forth on the Disclosure Schedule attached hereto as Exhibit F and incorporated by reference (which Disclosure Schedule either (i) makes explicit reference to the particular representation or warranty as to which exception is taken or (ii) describes the exception with sufficient specificity and in such a manner that a reasonable person could determine, without any independent investigation, from the terms of this Agreement and the Disclosure Schedule, the particular representation(s) or warranty(ies) as to which exception is taken):

        SECTION 4.1. Organization, Qualification and Corporate Power of Buyer. Buyer (a) is a limited liability company duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia; (b) has the corporate power and authority to carry on its business as now conducted; and (c) has all requisite power and authority and licenses, permits, franchises, certificates, authorizations, approvals, consents, and rights to own and operate the Pharmacy Health Information Exchange.

        SECTION 4.2. Validity. Buyer has the full legal power and authority to execute, deliver, and perform this Agreement and all other agreements and documents necessary to consummate the contemplated transactions, and all corporate actions of Buyer necessary for such execution, delivery, and performance have been taken. This Agreement and all agreements related to this transaction have been duly executed and delivered by Buyer and constitute the legal, valid and binding obligation of Buyer enforceable in accordance with their terms (subject as to enforcement of remedies to equitable principles and to the discretion of courts in awarding equitable relief and to applicable bankruptcy, reorganization, insolvency, moratorium and similar laws affecting the rights of creditors generally). The execution and delivery by Buyer of this Agreement and the other agreements related hereto to which Buyer is a party, and the performance of its obligations hereunder and thereunder, will not violate any provision of law, the Certificate of Formation or Operating Agreement of Buyer, any order of any court or other agency of the government, or any indenture, agreement or other instrument to which Buyer, or any of its properties or assets are bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or result in the creation or imposition of any lien, charge, restriction, claim or encumbrance of any nature whatsoever upon any of the properties or assets of Buyer.

        SECTION 4.3. Other Approvals. All consents, approvals, qualifications, orders or authorizations of, or filings with, any governmental authority, including any court or other third party, required in connection with Buyer’s valid execution, delivery or performance of this Agreement, or the consummation of any transaction contemplated by this Agreement, shall have been duly made and obtained and are effective on and as of the date hereof.

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        SECTION 4.4. Disclosure. No representation or warranty by Buyer in this Agreement, and no exhibit, schedule or certificate furnished or to be furnished by Buyer pursuant hereto, (a) contains any untrue statement of a material fact or (b) omits to state a fact required to be stated therein or necessary to make the statements contained herein or therein, in light of the circumstances in which they were made, not materially misleading.

ARTICLE 5.

COVENANTS OF SELLER

        SECTION 5.1. Cooperation with Buyer. Seller covenants to Buyer that Seller shall cooperate with Buyer and shall use its reasonable best efforts after the Effective Date so that Buyer shall obtain all required consents of third parties and approvals for Buyer’ purchase of the business contemplated hereby, and in addressing other matters necessary to consummate the transactions and receive the benefits contemplated by this Agreement.

        SECTION 5.2. Non-Contravention. Seller covenants to Buyer that it shall not take any action, or omit to take any action, which action or omission would have the effect of materially violating any of the covenants of this Agreement or warranties or representations of Seller in this Agreement.

ARTICLE 6.

JOINT COVENANTS OF THE PARTIES

        SECTION 6.1. Confidentiality of Business Information. The parties heretofore have received and hereafter may receive various financial and other information concerning the activities, business, assets, and properties of the other parties hereto. The parties agree that:

                a. all such information thus received by a party hereto shall not at any time, or in any way or manner, be utilized by such party for its respective advantage or disclosed by it to others for any purpose whatsoever; and 

                b. the parties shall take all reasonable measures to assure that no employee or agent under its respective control shall at any time use or disclose any information described in this Section other than for the purposes hereunder; and

                c. this Section shall not apply to (i) any such information that was known to a party prior to its disclosure to such party in accordance with this Section or was, is, or becomes generally available to the public other than by disclosure by the party or any of its respective employees or agents in violation of this Section; (ii) any disclosure which such party makes to any regulatory agency pursuant to that party’s obligations of disclosure to such agency; (iii) any disclosure that is necessary or appropriate in obtaining any consent or approval required for the consummation of the transactions contemplated by this Agreement; or (iv) any disclosure required by or necessary or appropriate in connection with legal proceedings.

        SECTION 6.2. Confidentiality of this Agreement. Until such time as the parties hereto publicly disclose the existence and contents of this Agreement and any related documents

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in accordance with the requirements of this Section 6.2 (“Public Disclosure”), the nature and status of the transactions described herein shall be confidential. The timing and content of any announcements, press releases or other public statements concerning the transactions contemplated by this Agreement will occur upon, and be determined by, the mutual agreement and consent of Seller and Buyer, which shall not be unreasonably withheld. This Section shall not apply to:

                a. any disclosure to such party’s directors, managers, members, officers, key employees, affiliates, accounting, investment banking and legal advisers;

                b. any disclosure which such party makes to any regulatory agency pursuant to that party’s obligations of disclosure to such agency;

                c. any disclosure that is necessary or appropriate in obtaining any consent or approval required for the consummation of the transactions contemplated by this Agreement;

                d. any disclosure required by or necessary or appropriate in connection with legal proceedings; or

                e. any disclosure which, in the written opinion of counsel to the party seeking to make the disclosure, is required by applicable law.

Attached hereto as Exhibit H is an outline representing Seller’s position as it relates to this transaction (“Talking Points”). Buyer agrees to adhere to the Talking Points or defer questions to Seller whenever responding to questions about Seller. Seller shall defer any questions about Buyer to Buyer. The Party’s agree that once Public Disclosure has occurred, the Party’s can speak with media outlets and publicly about the transactions contemplated hereby without seeking the other Party’s consent.

ARTICLE 7.

INDEMNIFICATION

        SECTION 7.1. Indemnification by Seller. Subject to Section 7.4, Seller agrees to indemnify and hold harmless Buyer, its officers, employees, agents, directors, representatives, members, controlling persons and affiliates (collectively, the “Buyer Indemnified Persons”) for, and will pay to the Buyer Indemnified Persons the amount of, any loss, liability, claim, damage (including incidental and consequential damages), expense (including costs of investigation and defense and reasonable attorneys’ fees) or diminution of value incurred by Buyer Indemnified Persons, whether or not involving a third-party claim, arising, directly or indirectly, from or in connection with:

                a. any breach of any representation or warranty made by Seller in this Agreement or any other certificate or document delivered by Seller pursuant to this Agreement;

                b. any federal, state, or local tax or fee incurred, accrued, or assessed in connection with the ProxyMed Network prior to the Effective Date;

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                c. any liability or obligation of Seller related to or in connection with any Seller Contract or the Pharmacy Processing Business as conducted by Seller. Seller specifically agrees that Buyer is not assuming any obligation or liability of Seller under any contract to which it is a party, whether related to the Pharmacy Processing Business, the MedAvant Prescribing Applications or otherwise; or

                d. any breach by Seller of any covenant or obligation of Seller in this Agreement.

        SECTION 7.2. Indemnification by Buyer. Subject to Section 7.4, Buyer agrees to indemnify and hold harmless Seller, and its officers, employees, agents, directors, representatives, members, controlling persons and affiliates (collectively, “Seller Indemnified Persons”) for, and will pay to the Seller Indemnified Persons the amount of, any loss, liability, claim, damage (including incidental and consequential damages), expense (including costs of investigation and defense and reasonable attorneys’ fees) incurred by Seller Indemnified Persons, whether or not involving a third-party claim, arising, directly or indirectly, from or in connection with:

                a. any breach of any representation or warranty made by Buyer in this Agreement or any other certificate or document delivered by Buyer pursuant to this Agreement; 

                b. any federal, state, or local tax or fee incurred, accrued or assessed in connection with Buyer with respect to any period from and after the Effective Date; or

                c. any breach by Buyer of any covenant or obligation of Buyer in this Agreement.

        SECTION 7.3. Liability and Risk of Loss. Seller shall remain liable for all of its obligations and liabilities, costs and expenses, fixed or contingent following the Effective Date.

        SECTION 7.4. Procedure for Indemnification: Third Party Claims. Promptly after receipt by an indemnified party under either Section 7.1, or 7.2 of notice of the commencement of any proceeding against it by a third party, such indemnified party will, if a claim is to be made against an indemnifying party under either such Section, give notice to the indemnifying party of the commencement of such claim, but the failure to notify the indemnifying party will not relieve the indemnifying party of any liability that it may have to any indemnified party, except to the extent that the indemnifying party demonstrates that the defense of such action is prejudiced by the indemnified party’s failure to give such notice.

                b. If any proceeding is brought against an indemnified party and it gives notice to the indemnifying party of the commencement of such proceeding, the indemnifying party will be entitled to participate in such proceeding and, to the extent that it wishes (unless (i) the indemnifying party is also a party to such proceeding and the indemnified party determines in good faith that joint representation would be inappropriate, or (ii) the indemnifying party fails to provide reasonable assurance to the indemnified party of its financial capacity to defend such proceeding and provide indemnification with respect to such proceeding), to assume the defense of such proceeding with counsel satisfactory to the indemnified party and, after notice from the indemnifying party to the indemnified party of its election to assume the defense of such

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proceeding, the indemnifying party will not, as long as it diligently conducts such defense, be liable to the indemnified party under this Section 7 for any fees of other counsel or any other expenses with respect to the defense of such proceeding, in each case subsequently incurred by the indemnified party in connection with the defense of such proceeding, other than reasonable costs of investigation. If the indemnifying party assumes the defense of a proceeding, (i) it will be conclusively established for purposes of this Agreement that the claims made in that proceeding are within the scope of and subject to indemnification; (ii) no compromise or settlement of such claims may be effected by the indemnifying party without the indemnified party’s consent unless (a) there is no finding or admission of any violation of legal requirements or any violation of the rights of any person and no effect on any other claims that may be made against the indemnified party, and (b) the sole relief provided is monetary damages that are paid in full by the indemnifying party; and (iii) the indemnified party will have no liability with respect to any compromise or settlement of such claims effected without its consent. If notice is given to an indemnifying party of the commencement of any proceeding and the indemnifying party does not, within ten (10) days after the indemnified party’s notice is given, give notice to the indemnified party of its election to assume the defense of such proceeding, the indemnifying party will be bound by any determination made in such proceeding or any compromise or settlement effected by the indemnified party.

                c. Notwithstanding the foregoing, if an indemnified party determines in good faith that there is a reasonable probability that a proceeding may adversely affect it or its affiliates other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, the indemnified party may, by notice to the indemnifying party, assume the exclusive right to defend, compromise, or settle such proceeding, but the indemnifying party will not be bound by any determination of a proceeding so defended or any compromise or settlement effected without its consent (which may not be unreasonably withheld).

ARTICLE 8.

MISCELLANEOUS

        SECTION 8.1. Notice. Whenever notice must be given under the provisions of this Agreement, such notice must be in writing and addressed to the parties at their respective addresses set forth below and shall be deemed to have been duly given if delivered by (a) hand-delivery (with written confirmation of receipt); (b) facsimile (with written confirmation of receipt), provided that a copy is delivered by one of the other methods authorized in this Section; or (c) by commercial overnight delivery service, as follows:

	If to Seller:	  	ProxyMed, Inc.  
	  	  	1854 Shackleford Court  
	  	  	Suite 200  	  		  	  
	  	  	Norcross, GA  
	  	  	Attention: General Counsel  
	  	  	Telephone:  (404) 770-4803  
	  	  	Facsimile:  (404) 877-3385  

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	If to Buyer:	  	5971 Kingstowne Village Parkway  
	  	  	Suite 200  	  		  	  
	  	  	Alexandria, VA 22315  
	  	  	Attention:  Paul L. Uhrig, Esq.  
	  	  	Facsimile:  (703) 921-2161  

        Notices shall be deemed given upon the earliest to occur of (i) receipt by the party to whom such notice is directed, if hand delivered; (ii) if sent by facsimile machine, on the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) such notice is sent if sent (as evidenced by the facsimile confirmed receipt) prior to 5:00 p.m. Pacific Time and, if sent after 5:00 p.m. Pacific Time, on the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) after which such notice is sent; or (iii) on the first business day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) following the day the same is deposited with the commercial carrier if sent by commercial overnight delivery service. Each party, by notice duly given in accordance therewith may specify a different address for the giving of any notice hereunder.

        SECTION 8.2. Survival of Provisions. All warranties, representations, hold harmless and indemnity obligations and restrictions made, undertaken and agreed to by the parties under this Agreement shall survive the Closing.

        SECTION 8.3. Amendment. No modification, waiver, amendment, discharge, or change of this Agreement shall be valid unless in writing and signed by the party against whom enforcement of such modification, waiver, amendment, discharge or change is sought; provided any party may change their own address as set forth in Section 8.1 hereof by unilateral written notice to the other parties hereto.

        SECTION 8.4. Assignment.This Agreement shall not be assignable by any party without the prior written consent of the others. Except as noted above, no other person or corporate entity shall acquire or have any rights under or by virtue of this Agreement.

        SECTION 8.5. Severability.If any one or more of the provisions of this Agreement should be ruled wholly or partly invalid or unenforceable by a court or other government body of competent jurisdiction, then: (a) the validity and enforceability of all provisions of this Agreement not ruled to be invalid or unenforceable shall be unaffected; (b) the effect of the ruling shall be limited to the jurisdiction of the court or other government body making the ruling; (c) the provision(s) held wholly or partly invalid or unenforceable shall be deemed amended, and the court or other government body is authorized to reform the provision(s), to the minimum extent necessary to render them valid and enforceable in conformity with the parties’intent as manifested herein and a provision having a similar economic effect shall be substituted; and (d) if the ruling and/or the controlling principle of law or equity leading to the ruling, is subsequently overruled, modified or amended by legislative, judicial or administrative action, the provision(s) in question as originally set forth in this Agreement shall be deemed valid and enforceable to the maximum extent permitted by the new controlling principle of law or equity.

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        SECTION 8.6. Choice of Law.The interpretation of this Agreement and the rights and obligations of the parties hereunder shall be governed by the laws of the Commonwealth of Virginia, without regard to choice of law provisions.

        SECTION 8.7. Binding Nature.The provisions, covenants, and agreements herein contained shall inure to the benefit of, and be binding upon, the parties hereto and each of their respective legal representatives, successors and permitted assigns.

        SECTION 8.8. Headings.All headings contained in this Agreement are for reference purposes only and are not intended to affect in any way the meaning or interpretation of this Agreement. All words used in this Agreement shall be construed to be of such gender and number as the circumstances require.

        SECTION 8.9. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which collectively shall constitute one and the same agreement.

        SECTION 8.10. Expenses. Each of the parties shall bear its own expenses in connection with this Agreement.

        SECTION 8.11. Waiver. The waiver by any party of a breach or violation of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of such provision or any other provision of this Agreement.

        SECTION 8.12. Construction. This Agreement shall not be construed more strictly against any party hereto by virtue of the fact that the Agreement may have been drafted or prepared by such party or its counsel, it being recognized that all of the parties hereto have contributed substantially and materially to its preparation and that this Agreement has been the subject of and is the product of negotiations between the parties.

        SECTION 8.13. Cumulative Remedies. Any right, power, or remedy provided under this Agreement to any party hereto shall be cumulative and in addition to any other right, power, or remedy provided under this Agreement now or hereafter existing at law or in equity, and may be exercised singularly or concurrently.

        SECTION 8.14. Attorneys’ Fees. Each party shall bear its own attorney’s fees, expenses and any costs associated with any dispute or litigation arising from or related to this Agreement

        SECTION 8.15. Arbitration. In the event of a dispute between the parties arising from or relating to this Agreement, including, but not limited to, construction, interpretation, implementation or enforcement of this Agreement or the performance or breach of any provision in this Agreement, the parties shall meet and confer in good faith to resolve such dispute. In the event such efforts do not resolve the dispute within fifteen (15) days from the date the dispute arises, either party may demand arbitration, within one (1) year after the date the dispute arises, by the American Arbitration Association, before three (3) arbitrators, under its Commercial Arbitration Rules existing as of the Effective Date, such arbitration to be final, conclusive and binding. The arbitrators shall have no authority to award punitive or exemplary damages or

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attorneys’ fees. Judgment on the award rendered by the arbitrator may be entered by any court having proper jurisdiction. The arbitrators shall base their award on the terms of this Agreement, and they will endeavor to follow the law and judicial precedents which a United States District judge sitting in the District of the District of Columbia would apply in the event the dispute was litigated in such court. The arbitrators shall render the award in writing and, unless both parties agree otherwise, shall include an explanation of the reasons for their award, the findings of fact and conclusions of law upon which their award is based. Notwithstanding the foregoing, any party may seek or assert entitlement to injunctive relief or specific performance in court as an initial matter and shall have no prior obligation to establish in arbitration the entitlement to injunctive relief or specific performance.

        SECTION 8.16. Entire Agreement. This Agreement supersedes all prior agreements between the parties with respect to its subject matter (including all term sheets and letters of intent exchanged by the parties), and constitutes (along with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement among the parties with respect to its subject matter.

[Remainder of Page Intentionally Left Blank]

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        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers as of the date first above written.

	SURESCRIPTS, LLC 
	 
	By: 	 	/s/ Kevin Hutchinson 
	 	 	Signature 
	 
	 	 	Kevin Hutchinson 
	 	 	Print Name 
	 
	Its: 	 	President & CEO 
	 	 	Title 
	 
	PROXYMED, INC., D/B/A 
	MEDAVANT HEALTHCARE 
	SOLUTIONS, INC. 
	 
	By: 	 	/s/ Peter Fleming 
	 	 	Signature 
	 
	 	 	Peter Fleming 
	 	 	Print Name 
	 
	Its: 	 	General Counsel 
	 	 	Title 

Signature Page to Purchase Agreement

EXHIBIT A

LIST OF SURESCRIPTS PHARMACIES

The following table represents those pharmacies, Certified Pharmacy Aggregators, and Certified VARs with contractual commitments to the Pharmacy Health Information Exchange.

	Organization
	
	Abacus Systems  
	CarePoint  
	RxLinc (Computer-Rx)  
	eRx Network, LLC (PDX customers only)  
	HealthCare Computer Corporation (Synercom, AlphaPC, and Visual Pharmacy)
	McKesson Corporation  
	Micro Merchant  
	PerSe*  
	QS/1 Data Systems (RxCarePlus, CRX, and NRX) 
	Albertson’s, Inc.  
	CVS Corporation  
	Wal*Mart Stores, Inc.  

*PerSe has contracts with pharmacy organizations utilizing PerSe software products including but not limited to Condor, EnterpriseRx, PharmacyRx, and Zadall. In addition, PerSe has contracts with organizations, including, but not limited to, the following:

Best Computer Systems

Brooks

Brookshire Grocery Co.

Community Distributors

CompuSolve

DataDoc

Datascan

Discount Drug Mart

Eckerds (Brooks)

EnterpriseRx

Etreby

Foundation Systems

Giant Eagle

Giant Foods

Haggens

Health Business Systems

HEB

Hy-Vee

ISM

JasCorp

Kerr Drug

Kinney Drugs

Kroger Company, The

Lewis

Longs

Marc’s

Medicine Shoppe International, Inc.

Midco

NeighborCare

Opus-ISM

Pacific Pharmacy Computers

PharmacyRx

Pharmacy Solutions

Price Chopper (Golub)

Raleys

Rite-Aid

Sav-Mor Franchising, Inc.

Shaws

Stop & Shop

Transaction Data Systems

TOPS

Ukrops

USADrug

Walgreens

EXHIBIT B

PHARMACY CONTRACTS

1. Walgreens

2. Rite-Aide

3. CareMark

4. Medco

5. e-Rx

6. SureScritps

7. WalMart

8. QS1

EXHIBIT C

PRESCRIBER CONTRACTS

	
1.      		
Medical Manger (Emdeon Business Services)	
	 
	
2.      		
Availty	
	 
	
3.      		
Imedica	
	 
	
4.      		
Iscribe/CareMark	
	 
	
5.      		
Misys	
	 
	
6.      		
e-Rx	
	 

EXHIBIT D

ESCROW AGREEMENT

(See attached.)

EXHIBIT E

NONCOMPETITION AGREEMENT

(See attached.)

EXHIBIT F

SELLER DISCLOSURE SCHEDULE

None

EXHIBIT G

SELLER DISCLOSURE SCHEUDLE

None

EXHIBIT G

TALKING POINTS

        The pharmacy business was MedAvant’s smallest business line and it did not complement their business strategy. This sell allows MedAvant to now focus on its key business lines. 

        The divestiture was a small but important step in simplifying MedAvant’s business structure and focusing on their core business lines, which hold the best opportunity for future growth.

        The sell allows MedAvant to focus on its core strategy of leveraging their Phoenix and Pilot technologies and well as their national PPO in order to build upon a strong market presence in their core business lines.

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