Document:

Ex-10.1 AmSurg Corp. 2006 Stock Incentive Plan

Exhibit 10.1

AMSURG CORP.

2006 STOCK INCENTIVE PLAN, AS AMENDED

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Section 1.

	 	Purpose
	 	 	1	 
	Section 2.

	 	Definitions
	 	 	1	 
	Section 3.

	 	Administration
	 	 	4	 
	Section 4.

	 	Shares Available For Awards
	 	 	5	 
	Section 5.

	 	Eligibility
	 	 	6	 
	Section 6.

	 	Stock Options And Stock Appreciation Rights
	 	 	6	 
	Section 7.

	 	Restricted Shares And Restricted Share Units
	 	 	7	 
	Section 8.

	 	Performance Awards
	 	 	8	 
	Section 9.

	 	Other Stock-Based Awards
	 	 	9	 
	Section 10.

	 	Non-Employee Director Awards
	 	 	9	 
	Section 11.

	 	Provisions Applicable To Covered Officers And Performance Awards
	 	 	10	 
	Section 12.

	 	Termination Of Employment
	 	 	12	 
	Section 13.

	 	Change In Control
	 	 	12	 
	Section 14.

	 	Amendment And Termination
	 	 	12	 
	Section 15.

	 	General Provisions
	 	 	12	 
	Section 16.

	 	Term Of The Plan
	 	 	14	 

 

 

AMSURG CORP.

2006 STOCK INCENTIVE PLAN, AS AMENDED

Section 1. Purpose.

     This plan shall be known as the “Amsurg Corp. 2006 Stock Incentive Plan” (the “Plan”). The
purpose of the Plan is to promote the interests of Amsurg Corp. (the “Company”) and its
shareholders by (i) attracting and retaining key officers, employees and directors of, and
consultants to, the Company and its Subsidiaries and Affiliates; (ii) motivating such individuals
by means of performance-related incentives to achieve long-range performance goals; (iii) enabling
such individuals to participate in the long-term growth and financial success of the Company; (iv)
encouraging ownership of stock in the Company by such individuals; and (v) linking their
compensation to the long-term interests of the Company and its shareholders. With respect to any
awards granted under the Plan that are intended to comply with the requirements of
“performance-based compensation” under Section 162(m) of the Code, the Plan shall be interpreted in
a manner consistent with such requirements.

Section 2.
Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Affiliate” shall mean (i) any entity that, directly or indirectly, is controlled by the
Company, (ii) any entity in which the Company has a significant equity interest, (iii) an affiliate
of the Company, as defined in Rule 12b-2 promulgated under Section 12 of the Exchange Act, and (iv)
any entity in which the Company has at least twenty percent (20%) of the combined voting power of
the entity’s outstanding voting securities, in each case as designated by the Board as being a
participating employer in the Plan.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Share Award,
Restricted Share Unit, Performance Award, Other Stock-Based Award or other award granted under the
Plan, whether singly, in combination or in tandem, to a Participant by the Committee (or the Board)
pursuant to such terms, conditions, restrictions and/or limitations, if any, as the Committee (or
the Board) may establish.

     (c) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award, which may, but need not, be executed or acknowledged by a
Participant.

     (d) “Board” shall mean the Board of Directors of the Company.

     (e) “Cause” shall mean, unless otherwise defined in the applicable Award Agreement, (i) a
felony conviction of a participant or the failure of a participant to contest prosecution for a
felony, (ii) the engaging by the Participant in willful misconduct that is injurious to the Company
or its Subsidiaries or Affiliates, or (iii) the embezzlement or misappropriation of funds or
property of the Company or its Subsidiaries or Affiliates by the Participant. For purposes of this
paragraph, no act, or failure to act, on the Participant’s part shall be considered “willful”
unless done, or omitted to be done, by the Participant not in good faith and without reasonable
belief that the Participant’s action or omission was in the best interest of the Company. Any
determination of Cause for purposes of the Plan or any Award shall be made by the Committee in its
sole discretion. Any such determination shall be final and binding on a Participant.

     (f) “Change in Control” shall mean, unless otherwise provided in the applicable Award
Agreement, the happening of one of the following:

     (i) any person or entity, including a “group” as defined in Section 13(d)(3) of the
Exchange Act, other than the Company or a wholly-owned Subsidiary thereof or any employee
benefit plan of the Company or any of its Subsidiaries, becomes the beneficial owner of the
Company’s securities having 35% or more of the combined voting power of the then outstanding
securities of the Company that may be cast for the election of directors of the Company
(other than as a result of an issuance of securities initiated by the Company in the
ordinary course of business); or

 

 

     (ii) as the result of, or in connection with, any cash tender or exchange offer, merger
or other business combination, sales of assets or contested election, or any combination of
the foregoing transactions, less than a majority of the combined voting power of the then
outstanding securities of the Company or any successor corporation or entity entitled to
vote generally in the election of the directors of the Company or such other corporation or
entity after such transaction are held in the aggregate by the holders of the Company’s
securities entitled to vote generally in the election of directors of the Company
immediately prior to such transaction; or

     (iii) during any period of two consecutive years, individuals who at the beginning of
any such period constitute the Board cease for any reason to constitute at least a majority
thereof, unless the election, or the nomination for election by the Company’s shareholders,
of each director of the Company first elected during such period was approved by a vote of
at least two-thirds of the directors of the Company then still in office who were directors
of the Company at the beginning of any such period.

     (g) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     (h) “Committee” shall mean a committee of the Board composed of not less than two Non-Employee
Directors, each of whom shall be (i) a “non-employee director” for purposes of Exchange Act Section
16 and Rule 16b-3 thereunder, (ii) an “outside director” for purposes of Section 162(m) and the
regulations promulgated under the Code, and (iii) “independent” within the meaning of the listing
standards of the Nasdaq National Market.

     (i) “Consultant” shall mean any consultant to the Company or its Subsidiaries or Affiliates.

     (j) “Covered Officer” shall mean at any date (i) any individual who, with respect to the
previous taxable year of the Company, was a “covered employee” of the Company within the meaning of
Section 162(m); provided, however, that the term “Covered Officer” shall not include any such
individual who is designated by the Committee, in its discretion, at the time of any Award or at
any subsequent time, as reasonably expected not to be such a “covered employee” with respect to the
current taxable year of the Company and (ii) any individual who is designated by the Committee, in
its discretion, at the time of any Award or at any subsequent time, as reasonably expected to be
such a “covered employee” with respect to the current taxable year of the Company or with respect
to the taxable year of the Company in which any applicable Award will be paid or vested.

     (k) “Director” shall mean a member of the Board.

     (l) “Disability” shall mean, unless otherwise defined in the applicable Award Agreement, a
disability that would qualify as a total and permanent disability under the Company’s then current
long-term disability plan.

     (m) “Early Retirement” shall mean retirement, for purposes of this Plan, with the express
consent of the Company at or before the time of such retirement, from active employment with the
Company and any Subsidiary or Affiliate prior to age 65, in accordance with any applicable early
retirement policy of the Company then in effect or as may be approved by the Committee.

     (n) “Effective Date” shall have the meaning provided in Section 16.1 of the Plan.

     (o) “Employee” shall mean a current or prospective officer or employee of the Company or of
any Subsidiary or Affiliate.

     (p) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     (q) “Fair Market Value” with respect to the Shares, shall mean, for purposes of a grant of an
Award as of any date, (i) the reported closing sales price of the Shares on the Nasdaq National
Market, or any other such market or exchange as is the principal trading market for the Shares, on
such date, or in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were
reported or (ii) in the event

2

 

there is no public market for the Shares on such date, the fair
market value as determined, in good faith, by the Committee in its sole discretion, and for
purposes of a sale of a Share as of any date, the actual sales price on that date.

     (r) “Good Reason” means (i) a material reduction in a Participant’s position, authority,
duties or responsibilities, (ii) any reduction in a Participant’s annual base salary as in effect
immediately prior to a Change in Control; (iii) the relocation of the office at which the
Participant is to perform the majority of his or her duties following a Change in Control to a
location more than 30 miles from the location at which the Participant performed such duties prior
to the Change in Control; or (iv) the failure by the Company or its successor to continue to
provide the Participant with benefits substantially similar in aggregate value to those enjoyed by
the Participant under any of the Company’s pension, life insurance, medical, health and accident or
disability plans in which Participant was participating immediately prior to a Change in Control,
unless the Participant is offered participation in other comparable benefit plans generally
available to similarly situated employees of the Company or its successor after the Change in
Control.

     (s) “Incentive Stock Option” shall mean an option to purchase Shares from the Company that is
granted under Section 6 of the Plan and that is intended to meet the requirements of
Section 422 of the Code or any successor provision thereto.

     (t) “Non-Employee Director” shall mean a member of the Board who is not an officer or employee
of the Company or any Subsidiary or Affiliate.

     (u) “Non-Qualified Stock Option” shall mean an option to purchase Shares from the Company that
is granted under Sections 6 or 10 of the Plan and is not intended to be an
Incentive Stock Option.

     (v) “Normal Retirement” shall mean, unless otherwise defined in the applicable Award
Agreement, retirement of a Participant from active employment with the Company or any of its
Subsidiaries or Affiliates on or after such Participant’s 65th birthday.

     (w) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (x) “Option Price” shall mean the purchase price payable to purchase one Share upon the
exercise of an Option.

     (y) “Other Stock-Based Award” shall mean any Award granted under Sections 9 or
10 of the Plan.

     (z) “Participant” shall mean any Employee, Director, Consultant or other person who receives
an Award under the Plan.

     (aa) “Performance Award” shall mean any Award granted under Section 8 of the Plan.

     (bb) “Person” shall mean any individual, corporation, partnership, limited liability company,
association, joint-stock company, trust, unincorporated organization, government or political
subdivision thereof or other entity.

     (cc) “Restricted
Share” shall mean any Share granted under Sections 7 to
10 of the Plan.

     (dd) “Restricted Share Unit” shall mean any unit granted under Sections 7 to 10 of the Plan.

     (ee) “Retirement” shall mean Normal or Early Retirement.

     (ff) “SEC” shall mean the Securities and Exchange Commission or any successor thereto.

3

 

     (gg) “Section 16” shall mean Section 16 of the Exchange Act and the rules promulgated
thereunder and any successor provision thereto as in effect from time to time.

     (hh) “Section 162(m)” shall mean Section 162(m) of the Code and the regulations promulgated
thereunder and any successor provision thereto as in effect from time to time.

     (ii) “Shares” shall mean shares of the common stock, $0.01 par value, of the Company.

     (jj) “Stock Appreciation Right” or “SAR” shall mean a stock appreciation right granted under
Sections 6, 8 or 10 of the Plan that entitles the holder to receive, with
respect to each Share encompassed by the exercise of such SAR, the amount determined by the
Committee and specified in an Award Agreement. In the absence of such a determination, the holder
shall be entitled to receive, with respect to each Share encompassed by the exercise of such SAR,
the excess of the Fair Market Value on the date of exercise over the Fair Market Value on the date
of grant.

     (kk) “Subsidiary” shall mean any Person (other than the Company) of which 50% or more of its
voting power or its equity securities or equity interest is owned directly or indirectly by the
Company.

     (ll) “Substitute Awards” shall mean Awards granted solely in assumption of, or in substitution
for, outstanding awards previously granted by a company acquired by the Company or with which the
Company combines.

Section 3. Administration.

     3.1 Authority of Committee. The Plan shall be administered by a Committee of not less than
two Non-Employee Directors, who shall be appointed by and serve at the pleasure of the Board;
provided, however, with respect to Awards to Non-Employee Directors, all references in the Plan to
the Committee shall be deemed to be references to the Board. The initial Committee shall be the
Compensation Committee of the Board. Subject to the terms of the Plan and applicable law, and in
addition to other express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority in its discretion to: (i) designate Participants;
(ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the
number of Shares to be covered by, or with respect to which payments, rights or other matters are
to be calculated in connection with Awards; (iv) determine the timing, terms, and conditions of any
Award; (v) accelerate the time at which all or any part of an Award may be settled or exercised;
(vi) determine whether, to what extent, and under what circumstances Awards may be settled or
exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited
or suspended and the method or methods by which Awards may be settled, exercised, canceled,
forfeited or suspended; (vii) determine whether, to what extent, and under what circumstances cash,
Shares, other securities, other Awards, other property, and other amounts payable with respect to
an Award shall be deferred either automatically or at the election of the holder thereof or of the
Committee; (viii) interpret and administer the Plan and any instrument or agreement relating to, or
Award made under, the Plan; (ix) except to the extent prohibited by Section 6.2, amend or
modify the terms of any Award at or after grant with the consent of the holder of the Award; (x)
establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; and (xi) make any other determination
and take any other action that the Committee deems necessary or desirable for the administration of
the Plan, subject to the exclusive authority of the Board under Section 14 hereunder to
amend or terminate the Plan.

     3.2 Committee Discretion Binding. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and
shall be final, conclusive, and binding upon all Persons, including the Company, any Subsidiary or
Affiliate, any Participant and any holder or beneficiary of any Award.

     3.3 Action by the Committee. The Committee shall hold its meetings at such times and places
and in such manner as it may determine. A majority of its members shall constitute a quorum. All
determinations of the Committee shall be made by not less than a majority of its members. Any decision or determination
reduced to writing and signed by all of the members of the Committee shall be fully effective as if
it had been made by a majority vote at a

4

 

meeting duly called and held. The exercise of an Option
or receipt of an Award shall be effective only if an Award Agreement shall have been duly executed
and delivered on behalf of the Company following the grant of the Option or other Award. The
Committee may appoint a Secretary and may make such rules and regulations for the conduct of its
business, as it shall deem advisable.

     3.4 Delegation. Subject to the terms of the Plan and applicable law, the Committee may
delegate to one or more officers or managers of the Company or of any Subsidiary or Affiliate, or
to a Committee of such officers or managers, the authority, subject to such terms and limitations
as the Committee shall determine, to grant Awards to or to cancel, modify or waive rights with
respect to, or to alter, discontinue, suspend or terminate Awards held by Participants who are not
officers or directors of the Company for purposes of Section 16 or who are otherwise not subject to
such Section.

     3.5 No Liability. No member of the Board or Committee shall be liable for any action taken or
determination made in good faith with respect to the Plan or any Award granted hereunder.

Section 4. Shares Available For Awards.

     4.1 Shares Available. Subject to the provisions of Section 4.2 hereof, the stock to
be subject to Awards under the Plan shall be the Shares of the Company and the maximum aggregate
number of Shares with respect to which Awards may be granted under the Plan shall be 2,610,445, of
which the number of (i) Shares with respect to which Incentive Stock Options may be granted shall
be no more than 700,000 and (ii) Shares with respect to which Awards other than Options and SARs
may be granted shall be no more than 940,000. Notwithstanding the foregoing and subject to
adjustment as provided in Section 4.2, the maximum number of Shares with respect to which
Awards may be granted under the Plan shall be increased by the number of Shares with respect to
which Options or other Awards that were granted under the Company’s Amended and Restated 1997 Stock
Incentive Plan (the “1997 Plan”) as of April 2, 2007, but which terminate, expire unexercised or
are forfeited or cancelled without the delivery of Shares under the terms of the 1997 Plan after
April 2, 2007. If, after the effective date of the Plan, any Shares covered by an Award granted
under this Plan, or to which such an Award relates, are forfeited or otherwise terminates, expires
unexercised or is canceled without the delivery of Shares, then the Shares covered by such Award,
or to which such Award relates, or the number of Shares otherwise counted against the aggregate
number of Shares with respect to which Awards may be granted, to the extent of any such settlement,
forfeiture, termination, expiration or cancellation, shall again become Shares with respect to
which Awards may be granted; provided, however, that in the event the number of Shares reserved for
issuance upon the exercise of a SAR exceeds the number of Shares actually issued upon the exercise
of the SAR, the excess Shares shall not again be Shares with respect to which Awards may be
granted. Notwithstanding the foregoing and subject to adjustment as provided in Section
4.2 hereof, no Participant may receive Options or SARs under the Plan in any calendar year
that, taken together, relate to more than 500,000 Shares.

     4.2 Adjustments. In the event that any dividend or other distribution (whether in the form of
cash, Shares, other securities or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or
exchange of Shares or other securities of the Company, issuance of warrants or other rights to
purchase Shares or other securities of the Company, or other similar corporate transaction or event
affects the Shares, then the Committee shall in an equitable and proportionate manner (and, with
respect to Incentive Stock Options, in such equitable and proportionate manner as is consistent
with Section 422 of the Code and the regulations promulgated thereunder and with respect to Awards
to Covered Officers, in such equitable and proportionate manner as is consistent with Section
162(m) of the Code): (i) adjust any or all of (1) the aggregate number of Shares or other
securities of the Company or its successor (or number and kind of other securities or property)
with respect to which Awards may be granted under the Plan; (2) the number of Shares or other
securities of the Company or its successor (or number and kind of other securities or property)
subject to outstanding Awards under the Plan, provided that the number of Shares subject to any
Award shall always be a whole number; (3) the grant or exercise price with respect to any Award
under the Plan; and (4) the limits on the number of Shares that may be granted to Participants
under the Plan in any calendar year; (ii) subject to Section 13, provide for an equivalent
award in respect of securities of the surviving entity of any merger, consolidation or other
transaction or event having a similar effect; or (iii) make provision for a cash payment to the
holder of an outstanding Award.

5

 

     4.3 Substitute Awards. Any Shares issued by the Company as Substitute Awards in connection
with the assumption or substitution of outstanding grants from any acquired corporation shall not
reduce the Shares available for Awards under the Plan.

     4.4 Sources of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award
shall consist of authorized and unissued Shares.

Section 5. Eligibility.

     Any Employee, Director or Consultant shall be eligible to be designated a Participant;
provided, however, that Non-Employee Directors shall only be eligible to receive Awards granted
consistent with Section 10.

Section 6. Stock Options And Stock Appreciation Rights.

     6.1 Grant. Subject to the provisions of the Plan, the Committee shall have sole and complete
authority to determine the Participants to whom Options and SARs shall be granted, the number of
Shares subject to each Award, the exercise price and the conditions and limitations applicable to
the exercise of each Option and SAR. An Option may be granted with or without a related SAR. An
SAR may be granted with or without a related Option. The Committee shall have the authority to
grant Incentive Stock Options, or to grant Non-Qualified Stock Options, or to grant both types of
Options. In the case of Incentive Stock Options, the terms and conditions of such grants shall be
subject to and comply with such rules as may be prescribed by Section 422 of the Code, as from time
to time amended, and any regulations implementing such statute. A person who has been granted an
Option or SAR under this Plan may be granted additional Options or SARs under the Plan if the
Committee shall so determine; provided, however, that to the extent the aggregate Fair Market Value
(determined at the time the Incentive Stock Option is granted) of the Shares with respect to which
all Incentive Stock Options are exercisable for the first time by an Employee during any calendar
year (under all plans described in subsection (d) of Section 422 of the Code of the Employee’s
employer corporation and its parent and Subsidiaries) exceeds $100,000, such Options shall be
treated as Non-Qualified Stock Options.

     6.2 Price. The Committee in its sole discretion shall establish the Option Price at the time
each Option is granted. Except in the case of Substitute Awards, the Option Price of an Option may
not be less than one hundred percent (100%) of the Fair Market Value of the Shares with respect to
which the Option is granted on the date of grant of such Option. Except with respect to Substitute
Awards, SARs may not be granted at a price less than the Fair Market Value of a Share on the date
of grant. Notwithstanding the foregoing and except as permitted by the provisions of Section
4.2 and Section 14 hereof, the Committee shall not have the power to (i) amend the
terms of previously granted Options or SARs to reduce the Option Price of such Options or SARs or
(ii) cancel such Options or SARs and grant substitute Options or SARs with a lower Option Price
than the cancelled Options or SARs.

     6.3 Term. Subject to the Committee’s authority under Section 3.1 and the provisions
of Section 6.6, each Option and SAR and all rights and obligations thereunder shall expire
on the date determined by the Committee and specified in the Award Agreement. The Committee shall
be under no duty to provide terms of like duration for Options or SARs granted under the Plan.
Notwithstanding the foregoing, no Option or SAR shall be exercisable after the expiration of ten
(10) years from the date such Option or SAR was granted.

     6.4 Exercise.

     (a) Each Option and SAR shall be exercisable at such times and subject to such terms
and conditions as the Committee may, in its sole discretion, specify in the applicable Award
Agreement or thereafter. The Committee shall have full and complete authority to determine,
subject to Section 6.6 herein, whether an Option or SAR will be exercisable in full
at any time or from time to time during the term of the Option or SAR, or to provide for the
exercise thereof in such installments, upon the occurrence of such events and at such times
during the term of the Option or SAR as the Committee may determine.

     (b) The Committee may impose such conditions with respect to the exercise of Options,
including without limitation, any relating to the application of federal, state or foreign
securities laws or the Code, as it may deem necessary or advisable. The exercise of any Option granted hereunder
shall be effective

6

 

only at such time as the sale of Shares pursuant to such exercise will
not violate any state or federal securities or other laws.

     (c) An Option or SAR may be exercised in whole or in part at any time, with respect to
whole Shares only, within the period permitted thereunder for the exercise thereof, and
shall be exercised by written notice of intent to exercise the Option or SAR, delivered to
the Company at its principal office, and payment in full to the Company at the direction of
the Committee of the amount of the Option Price for the number of Shares with respect to
which the Option is then being exercised.

     (d) Payment of the Option Price shall be made in cash or cash equivalents, or, at the
discretion of the Committee, (i) by transfer, either actually or by attestation, to the
Company of Shares that have been held by the Participant for at least six (6) months (or
such lesser period as may be permitted by the Committee), valued at the Fair Market Value of
such Shares on the date of exercise (or next succeeding trading date, if the date of
exercise is not a trading date), together with any applicable withholding taxes, such
transfer to be upon such terms and conditions as determined by the Committee, or (ii) by a
combination of such cash (or cash equivalents) and such Shares; provided, however, that the
optionee shall not be entitled to tender Shares pursuant to successive, substantially
simultaneous exercises of an Option or any other stock option of the Company. Subject to
applicable securities laws and Company policy, the Company may permit an Option to be
exercised by delivering a notice of exercise of the Option and simultaneously selling the
Shares thereby acquired, pursuant to a brokerage or similar agreement approved in advance by
proper officers of the Company, using the proceeds of such sale as payment of the Option
Price, together with any applicable withholding taxes. Until the optionee has been issued
the Shares subject to such exercise, he or she shall possess no rights as a shareholder with
respect to such Shares.

     (e) A fractional Share shall not be deliverable upon the exercise of a SAR but a cash
payment will be made in lieu thereof.

     6.5 Ten Percent Stock Rule. Notwithstanding any other provisions in the Plan, if at the time
an Option is otherwise to be granted pursuant to the Plan, the optionee or rights holder owns
directly or indirectly (within the meaning of Section 424(d) of the Code) Shares of the Company
possessing more than ten percent (10%) of the total combined voting power of all classes of Stock
of the Company or its parent or Subsidiary or Affiliate corporations (within the meaning of Section
422(b)(6) of the Code), then any Incentive Stock Option to be granted to such optionee or rights
holder pursuant to the Plan shall satisfy the requirement of Section 422(c)(5) of the Code, and the
Option Price shall be not less than one hundred ten percent (110%) of the Fair Market Value of the
Shares of the Company, and such Option by its terms shall not be exercisable after the expiration
of five (5) years from the date such Option is granted.

Section 7. Restricted Shares And Restricted Share Units.

     7.1 Grant.

     (a) Subject to the provisions of the Plan, the Committee shall have sole and complete
authority to determine the Participants to whom Restricted Shares and Restricted Share Units
shall be granted, the number of Restricted Shares and/or the number of Restricted Share
Units to be granted to each Participant, the duration of the period during which, and the
conditions under which, the Restricted Shares and Restricted Share Units may be forfeited to
the Company, and the other terms and conditions of such Awards. The Restricted Share and
Restricted Share Unit Awards shall be evidenced by Award Agreements in such form as the
Committee shall from time to time approve, which agreements shall comply with and be subject
to the terms and conditions provided hereunder and any additional terms and conditions
established by the Committee that are consistent with the terms of the Plan.

     (b) Each Restricted Share and Restricted Share Unit Award made under the Plan shall be
for such number of Shares as shall be determined by the Committee and set forth in the Award
Agreement containing the terms of such Restricted Share or Restricted Share Unit Award.
Such agreement shall set forth a period of time of not less than three (3) years in duration
during which the grantee must remain in the continuous employment of the Company in order
for the forfeiture and transfer restrictions to lapse. The restrictions may lapse during such restricted period in equal, annual installments with
respect to specified

7

 

portions of the Shares covered by the Restricted Share or Restricted
Share Unit Award. The Award Agreement may also, in the discretion of the Committee, set
forth performance or other conditions that will subject the Shares to forfeiture and
transfer restrictions. The Committee shall not waive, on a discretionary basis, or amend
the terms of any Restricted Shares or Restricted Share Unit Awards to terminate the
restrictions applicable to such Award, except upon the death, Disability or Retirement of
the Participant, or upon a Change in Control of the Company.

     7.2 Delivery of Shares and Transfer Restrictions. At the time of a Restricted Share Award, a
certificate representing the number of Shares awarded thereunder shall be registered in the name of
the grantee. Such certificate shall be held by the Company or any custodian appointed by the
Company for the account of the grantee subject to the terms and conditions of the Plan, and shall
bear such a legend setting forth the restrictions imposed thereon as the Committee, in its
discretion, may determine. Unless otherwise provided in the applicable Award Agreement, the
grantee shall have all rights of a shareholder with respect to the Restricted Shares, including the
right to receive dividends and the right to vote such Shares, subject to the following
restrictions: (i) the grantee shall not be entitled to delivery of the stock certificate until the
expiration of the restricted period and the fulfillment of any other restrictive conditions set
forth in the Award Agreement with respect to such Shares; (ii) none of the Shares may be sold,
assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of during such
restricted period or until after the fulfillment of any such other restrictive conditions; and
(iii) except as otherwise determined by the Committee at or after grant, all of the Shares shall be
forfeited and all rights of the grantee to such Shares shall terminate, without further obligation
on the part of the Company, unless the grantee remains in the continuous employment of the Company
for the entire restricted period in relation to which such Shares were granted and unless any other
restrictive conditions relating to the Restricted Share Award are met. Unless otherwise provided
in the applicable Award Agreement, any Shares, any other securities of the Company and any other
property (except for cash dividends) distributed with respect to the Shares subject to Restricted
Share Awards shall be subject to the same restrictions, terms and conditions as such Restricted
Shares.

     7.3 Termination of Restrictions. At the end of the restricted period and provided that any
other restrictive conditions of the Restricted Share Award are met, or at such earlier time as
otherwise determined by the Committee, all restrictions set forth in the Award Agreement relating
to the Restricted Share Award or in the Plan shall lapse as to the restricted Shares subject
thereto, and a stock certificate for the appropriate number of Shares, free of the restrictions and
restricted stock legend, shall be delivered to the Participant or the Participant’s beneficiary or
estate, as the case may be.

     7.4 Payment of Restricted Share Units. Each Restricted Share Unit shall have a value equal to
the Fair Market Value of a Share. Restricted Share Units shall be paid in cash, Shares, other
securities or other property, as determined in the sole discretion of the Committee, upon the lapse
of the restrictions applicable thereto, or otherwise in accordance with the applicable Award
Agreement. Unless otherwise provided in the applicable Award Agreement, a Participant shall
receive dividend rights in respect of any vested Restricted Stock Units at the time of any payment
of dividends to shareholders on Shares. The amount of any such dividend right shall equal the
amount that would be payable to the Participant as a shareholder in respect of a number of Shares
equal to the number of vested Restricted Stock Units then credited to the Participant. Any such
dividend right shall be paid in accordance with the Company’s payment practices as may be
established from time to time and as of the date on which such dividend would have been payable in
respect of outstanding Shares. No dividend equivalents shall be paid in respect of Restricted
Share Units that are not yet vested. Except as otherwise determined by the Committee at or after
grant, Restricted Share Units may not be sold, assigned, transferred, pledged, hypothecated or
otherwise encumbered or disposed of, and all Restricted Share Units and all rights of the grantee
to such Restricted Share Units shall terminate, without further obligation on the part of the
Company, unless the grantee remains in continuous employment of the Company for the entire
restricted period in relation to which such Restricted Share Units were granted and unless any
other restrictive conditions relating to the Restricted Share Unit Award are met.

Section 8. Performance Awards.

     8.1 Grant. The Committee shall have sole and complete authority to determine the Participants
who shall receive a Performance Award, which shall consist of a right that is (i) denominated in
cash or Shares (including, but not limited to, Restricted Shares and Restricted Share Units), (ii)
valued, as determined by the Committee, in accordance with the achievement of such performance
goals during such performance periods (which performance periods shall not be less than one (1) year in duration) as the Committee shall establish, and (iii) payable at
such time and in such

8

 

form as the Committee shall determine. Any Performance Award denominated in
Shares shall have a minimum vesting period of three years from the date of grant.

     8.2 Terms and Conditions. Subject to the terms of the Plan and any applicable Award
Agreement, the Committee shall determine the performance goals to be achieved during any
performance period, the length of any performance period, the amount of any Performance Award and
the amount and kind of any payment or transfer to be made pursuant to any Performance Award, and
may amend specific provisions of the Performance Award; provided, however, that such amendment may
not (i) adversely affect existing Performance Awards made within a performance period commencing
prior to implementation of the amendment and (ii) terminate any existing restrictions except in the
case of the Participant’s death, Disability or Retirement or upon a Change in Control of the
Company.

     8.3 Payment of Performance Awards. Performance Awards may be paid in a lump sum or in
installments following the close of the performance period or, in accordance with the procedures
established by the Committee, on a deferred basis. Termination of employment prior to the end of
any performance period, other than for reasons of death or Disability, will result in the
forfeiture of the Performance Award, and no payments will be made. A Participant’s rights to any
Performance Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise
encumbered or disposed of in any manner, except by will or the laws of descent and distribution,
and/or except as the Committee may determine at or after grant.

Section 9. Other Stock-Based Awards.

     The Committee shall have the authority to determine the Participants who shall receive an
Other Stock-Based Award, which shall consist of any right that is (i) not an Award described in
Sections 6 and 7 above and (ii) an Award of Shares or an Award denominated or
payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares
(including, without limitation, securities convertible into Shares), as deemed by the Committee to
be consistent with the purposes of the Plan. Subject to the terms of the Plan and any applicable
Award Agreement, the Committee shall determine the terms and conditions of any such Other
Stock-Based Award. All Other Stock-Based Awards shall include a minimum vesting period of three
(3) years from the date of grant. The Committee shall not waive, on a discretionary basis, or
amend the terms of any Other Stock-Based Award to terminate the restrictions applicable to such
Award, except upon the death, Disability or Retirement of the Participant, or upon a Change in
Control of the Company.

Section 10. Non-Employee Director Awards.

     10.1 The Board may provide that all or a portion of a Non-Employee Director’s annual retainer,
meeting fees and/or other awards or compensation as determined by the Board, be payable (either
automatically or at the election of a Non-Employee Director) in the form of Non-Qualified Stock
Options, Restricted Shares, Restricted Share Units and/or Other Stock-Based Awards, including
unrestricted Shares. The Board shall determine the terms and conditions of any such Awards,
including the terms and conditions which shall apply upon a termination of the Non-Employee
Director’s service as a member of the Board, and shall have full power and authority in its
discretion to administer such Awards, subject to the terms of the Plan and applicable law.

     10.2 The Board may also grant Awards to Non-Employee Directors pursuant to the terms of the
Plan, including any Award described in Sections 6, 7 and 9 above; provided, however, that
any such Awards shall be first approved by a committee of the Board comprised of Non-Employee
Directors. With respect to such Awards, all references in the Plan to the Committee shall be
deemed references to the Board

     10.3 On the date of each annual meeting of shareholders of the Company, unless this Plan has
been previously terminated, each Non-Employee Director elected at the annual meeting or whose
service as a director of the Company continues following the annual meeting will receive an
automatic grant of a Restricted Stock Award (“Non-Employee Director Restricted Stock”) for a number
of shares of Common Stock (rounded up to the next whole share) having an aggregate Fair Market
Value on such date equal to an amount to be determined by the Board, which shares shall be subject
to the restrictions and provisions set forth in Section 7 and this Section 10.3.

     (a) Each grant of Non-Employee Director Restricted Stock shall vest in increments of
one-third of the shares of Common Stock subject to such grant, with the first one-third
increment vesting on the

9

 

date of grant, the second one-third increment on the first
anniversary of the date of grant and the final one-third increment on the second anniversary
of the date of grant, if the grantee is still a member of the Board on such dates. Upon the
vesting of the shares, the Company will deliver the stock certificate(s) evidencing the
vested shares to the Non-Employee Director, all restrictions on the shares imposed by
Section 7 or this Section 10.3 will be lifted and such shares will no longer
be deemed to be “Non-Employee Director Restricted Stock” hereunder.

     (b) Until the earlier of (i) five years from the date of grant and (ii) the date on
which the Non-Employee Director ceases to serve as a director of the Company (the
“Non-Employee Director Period of Restriction”), no Non-Employee Director Restricted Stock
may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
otherwise than by will or by the laws of descent and distribution. Each certificate
representing Non-Employee Director Restricted Stock granted pursuant to this Section
10.3 shall bear the following legend:

“The sale or other transfer of the shares represented by
this certificate, whether voluntary, involuntary, or by operation of
law, is subject to certain restrictions on transfer set forth in the
AmSurg Corp. 2006 Stock Incentive Plan (the “Plan”). A copy of the Plan
and the rules of such Plan may be obtained from the Secretary of AmSurg
Corp.”

Once the Non-Employee Director Period of Restriction has lapsed, the grantee shall be
entitled to have the legend required by this Section 10.3 removed from such stock
certificate(s); provided however, that such certificate shall be subject to any legend
required by applicable state or federal law.

     (c) Upon termination of a Non-Employee Director’s service as a member of the Board for
any reason other than death or disability, all shares of Non-Employee Director Restricted
Stock not theretofore vested will be forfeited. Upon termination of a Non-Employee
Director’s service as a member of the Board due to death or disability, all shares of
Non-Employee Director Restricted Stock will immediately vest.

     (d) Non-Employee Directors will have the right to vote the shares and to receive cash
dividends with respect to the shares of Non-Employee Director Restricted Stock. Stock
dividends issued with respect to Non-Employee Director Restricted Stock will be treated as
additional shares of Non-Employee Director Restricted Stock subject to the same restrictions
and vesting schedule as the shares of Non-Employee Director Restricted Stock with respect to
which they were received.

Section 11. Provisions Applicable To Covered Officers And Performance Awards.

     11.1 Notwithstanding anything in the Plan to the contrary, unless the Committee determines
that a Performance Award to be granted to a Covered Officer should not qualify as
“performance-based compensation” for purposes of Section 162(m), Performance Awards granted to
Covered Officers shall be subject to the terms and provisions of this Section 11.

     11.2 The Committee may grant Performance Awards to Covered Officers based solely upon the
attainment of performance targets related to one or more performance goals selected by the
Committee from among the goals specified below. For the purposes of this Section 11,
performance goals shall be limited to one or more of the following Company, Subsidiary, operating
unit, business segment or division financial performance measures:

	 	(a)	 	earnings or earnings before interest, taxes, depreciation and/or
amortization;
	 
	 	(b)	 	operating income or profit;
	 
	 	(c)	 	operating efficiencies;
	 
	 	(d)	 	return on equity, assets, capital, capital employed or
investment;
	 
	 	(e)	 	after tax operating income;

10

 

	 	(f)	 	net income;
	 
	 	(g)	 	earnings or book value per Share;
	 
	 	(h)	 	cash flow(s);
	 
	 	(i)	 	revenues or revenue growth;
	 
	 	(j)	 	production (separate work units or SWUs);
	 
	 	(k)	 	stock price or total shareholder return;
	 
	 	(l)	 	dividends;
	 
	 	(m)	 	debt reduction;
	 
	 	(n)	 	strategic business objectives, consisting of one or more
objectives based on meeting specified cost targets, business expansion goals and
goals relating to acquisitions, divestitures or development activities; or
	 
	 	(o)	 	any combination thereof.

Each goal may be expressed on an absolute and/or relative basis, may be based on or otherwise
employ comparisons based on internal targets, the past performance of the Company or any
Subsidiary, operating unit, business segment or division of the Company and/or the past or current
performance of other companies, and in the case of earnings-based measures, may use or employ
comparisons relating to capital, shareholders’ equity and/or Shares outstanding, or to assets or
net assets. The Committee may appropriately adjust any evaluation of performance under criteria
set forth in this Section 11.2 to exclude any of the following events that occurs during a
performance period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii)
the effect of changes in tax law, accounting principles or other such laws or provisions affecting
reported results, (iv) accruals for reorganization and restructuring programs, and (v) any
extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or
in management’s discussion and analysis of financial condition and results of operations appearing
in the Company’s annual report to shareholders for the applicable year.

     11.3 With respect to any Covered Officer, the maximum annual number of Shares in respect of
which all Performance Awards may be granted under Section 8 of the Plan is 500,000 and the
maximum amount of all Performance Awards that are settled in cash and that may be granted under
Section 8 of the Plan in any year is $5,000,000.

     11.4 To the extent necessary to comply with Section 162(m), with respect to grants of
Performance Awards, no later than 90 days following the commencement of each performance period (or
such other time as may be required or permitted by Section 162(m) of the Code), the Committee
shall, in writing, (1) select the performance goal or goals applicable to the performance period,
(2) establish the various targets and bonus amounts that may be earned for such performance period,
and (3) specify the relationship between performance goals and targets and the amounts to be earned
by each Covered Officer for such performance period. Following the completion of each performance
period, the Committee shall certify in writing whether the applicable performance targets have been
achieved and the amounts, if any, payable to Covered Officers for such performance period. In
determining the amount earned by a Covered Officer for a given performance period, subject to any
applicable Award Agreement, the Committee shall have the right to reduce (but not increase) the
amount payable at a given level of performance to take into account additional factors that the
Committee may deem relevant in its sole discretion to the assessment of individual or corporate
performance for the performance period.

     11.5 Unless otherwise expressly stated in the relevant Award Agreement, each Award granted to
a Covered Officer under the Plan is intended to be performance-based compensation within the
meaning of Section 162(m). Accordingly, unless otherwise determined by the Committee, if any
provision of the Plan or any Award

11

 

Agreement relating to such an Award does not comply or is
inconsistent with Section 162(m), such provision shall be construed or deemed amended to the extent
necessary to conform to such requirements, and no provision shall be deemed to confer upon the
Committee discretion to increase the amount of compensation otherwise payable to a Covered Officer
in connection with any such Award upon the attainment of the performance criteria established by
the Committee.

Section 12. Termination Of Employment.

     Except as otherwise specifically set forth in the Plan, the Committee shall have the full
power and authority to determine the terms and conditions that shall apply to any Award upon a
termination of employment with the Company, its Subsidiaries and Affiliates, including a
termination by the Company with or without Cause, by a Participant voluntarily, or by reason of
death, Disability, Early Retirement or Retirement, and may provide such terms and conditions in the
Award Agreement or in such rules and regulations as it may prescribe.

Section 13. Change In Control.

     Notwithstanding any other provision of the Plan, unless otherwise provided in an Award
Agreement or other contractual agreement between the Company and a Participant, if, within one year
following a Change in Control, a Participant’s employment with the Company (or its successor) is
terminated by reason of (a) death; (b) disability; (c) Normal Retirement or Early Retirement; (d)
for Good Reason by the Participant; or (e) involuntary termination by the Company for any reason
other than for Cause, all outstanding Awards of such Participant shall vest, become immediately
exercisable and payable and have all restrictions lifted.

Section 14. Amendment And Termination.

     14.1 Amendments to the Plan. The Board may amend, alter, suspend, discontinue or terminate
the Plan or any portion thereof at any time; provided that no such amendment, alteration,
suspension, discontinuation or termination shall be made without shareholder approval if (i) such
approval is necessary to comply with any tax or regulatory requirement for which or with which the
Board deems it necessary or desirable to comply or (ii) such amendment would materially increase
the economic benefits to the participants hereunder.

     14.2 Amendments to Awards. Subject to the restrictions of Section 6.2 and except as
otherwise specifically set forth in the Plan, the Committee may waive any conditions or rights
under, amend any terms of or alter, suspend, discontinue, cancel or terminate, any Award
theretofore granted, prospectively or retroactively; provided that any such waiver, amendment,
alteration, suspension, discontinuance, cancellation or termination that would materially and
adversely affect the rights of any Participant or any holder or beneficiary of any Award
theretofore granted shall not to that extent be effective without the consent of the affected
Participant, holder or beneficiary.

     14.3 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee is hereby authorized to make equitable and proportionate adjustments in the terms and
conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring
events (including, without limitation, the events described in Section 4.2 hereof)
affecting the Company, any Subsidiary or Affiliate, or the financial statements of the Company or
any Subsidiary or Affiliate, or of changes in applicable laws, regulations or accounting principals
in accordance with the Plan.

Section 15. General Provisions.

     15.1 Limited Transferability of Awards. Except as otherwise provided in the Plan, no Award
shall be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant, except by will or the laws of descent and distribution and/or as may be provided by
the Committee in its discretion, at or after grant, in the Award Agreement or otherwise. No
transfer of an Award by will or by laws of descent and distribution shall be effective to bind the
Company unless the Company shall have been furnished with written notice thereof and an
authenticated copy of the will and/or such other evidence as the Committee may deem necessary or
appropriate to establish the validity of the transfer. None of the Awards shall be transferable
for consideration.

12

 

     15.2 Dividend Equivalents. In the sole and complete discretion of the Committee, an Award may
provide the Participant with dividends or dividend equivalents, payable in cash, Shares, other
securities or other property on a current or deferred basis; provided, that dividends and dividend
equivalents may only be provided with respect to Restricted Shares and Restricted Share Units. All
dividend or dividend equivalents which are not paid currently may, at the Committee’s discretion,
accrue interest, be reinvested into additional Shares, or, in the case of dividends or dividend
equivalents credited in connection with Performance Awards, be credited as additional Performance
Awards and paid to the Participant if and when, and to the extent that, payment is made pursuant to
such Award. The total number of Shares available for grant under Section 4 shall not be
reduced to reflect any dividends or dividend equivalents that are reinvested into additional Shares
or credited as Performance Awards.

     15.3. Compliance with Section 409A of the Code. No Award (or modification thereof) shall
provide for deferral of compensation that does not comply with Section 409A of the Code unless the
Committee, at the time of grant, specifically provides that the Award is not intended to comply
with Section 409A of the Code. Notwithstanding any provision of this Plan to the contrary, if one
or more of the payments or benefits received or to be received by a Participant pursuant to an
Award would cause the Participant to incur any additional tax or interest under Section 409A of the
Code, the Committee may reform such provision to maintain to the maximum extent practicable the
original intent of the applicable provision without violating the provisions of section 409A of the
Code.

     15.4 No Rights to Awards. No Person shall have any claim to be granted any Award, and there
is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards.
The terms and conditions of Awards need not be the same with respect to each Participant.

     15.5 Share Certificates. All certificates for Shares or other securities of the Company or
any Subsidiary or Affiliate delivered under the Plan pursuant to any Award or the exercise thereof
shall be subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations and other requirements of the SEC or any state
securities commission or regulatory authority, any stock exchange or other market upon which such
Shares or other securities are then listed, and any applicable Federal or state laws, and the
Committee may cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

     15.6 Withholding. A Participant may be required to pay to the Company or any Subsidiary or
Affiliate and the Company or any Subsidiary or Affiliate shall have the right and is hereby
authorized to withhold from any Award, from any payment due or transfer made under any Award or
under the Plan, or from any compensation or other amount owing to a Participant the amount (in
cash, Shares, other securities, other Awards or other property) of any applicable withholding or
other tax-related obligations in respect of an Award, its exercise or any other transaction
involving an Award, or any payment or transfer under an Award or under the Plan and to take such
other action as may be necessary in the opinion of the Company to satisfy all obligations for the
payment of such taxes. The Committee may provide for additional cash payments to holders of
Options to defray or offset any tax arising from the grant, vesting, exercise or payment of any
Award.

     15.7 Award Agreements. Each Award hereunder shall be evidenced by an Award Agreement that
shall be delivered to the Participant and may specify the terms and conditions of the Award and any
rules applicable thereto. In the event of a conflict between the terms of the Plan and any Award
Agreement, the terms of the Plan shall prevail. The Committee shall, subject to applicable law,
determine the date an Award is deemed to be granted. The Committee or, except to the extent
prohibited under applicable law, its delegate(s) may establish the terms of agreements or other
documents evidencing Awards under this Plan and may, but need not, require as a condition to any
such agreement’s or document’s effectiveness that such agreement or document be executed by the
Participant, including by electronic signature or other electronic indication of acceptance, and
that such Participant agree to such further terms and conditions as specified in such agreement or
document. The grant of an Award under this Plan shall not confer any rights upon the Participant
holding such Award other than such terms, and subject to such conditions, as are specified in this
Plan as being applicable to such type of Award (or to all Awards) or as are expressly set forth in
the agreement or other document evidencing such Award.

     15.8 No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent
the Company or any Subsidiary or Affiliate from adopting or continuing in effect other compensation
arrangements, which may, but need not, provide for the grant of Options, Restricted Shares,
Restricted Share Units, Other Stock-Based Awards or other types of Awards provided for hereunder.

13

 

     15.9 No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Subsidiary or Affiliate.
Further, the Company or a Subsidiary or Affiliate may at any time dismiss a Participant from
employment, free from any liability or any claim under the Plan, unless otherwise expressly
provided in an Award Agreement.

     15.10 No Rights as Shareholder. Subject to the provisions of the Plan and the applicable
Award Agreement, no Participant or holder or beneficiary of any Award shall have any rights as a
shareholder with respect to any Shares to be distributed under the Plan until such person has
become a holder of such Shares. Notwithstanding the foregoing, in connection with each grant of
Restricted Shares hereunder, the applicable Award Agreement shall specify if and to what extent the
Participant shall not be entitled to the rights of a shareholder in respect of such Restricted
Shares.

     15.11 Governing Law. The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan and any Award Agreement shall be determined in accordance with the
laws of the State of Tennessee without giving effect to conflicts of laws principles.

     15.12 Severability. If any provision of the Plan or any Award is, or becomes, or is deemed to
be invalid, illegal or unenforceable in any jurisdiction or as to any Person or Award, or would
disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to the applicable laws, or if it cannot be
construed or deemed amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person
or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

     15.13 Other Laws. The Committee may refuse to issue or transfer any Shares or other
consideration under an Award if, acting in its sole discretion, it determines that the issuance or
transfer of such Shares or such other consideration might violate any applicable law or regulation
(including applicable non-U.S. laws or regulations) or entitle the Company to recover the same
under Exchange Act Section 16(b), and any payment tendered to the Company by a Participant, other
holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to
the relevant Participant, holder or beneficiary.

     15.14 No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship between the Company or
any Subsidiary or Affiliate and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Subsidiary or Affiliate pursuant to an
Award, such right shall be no greater than the right of any unsecured general creditor of the
Company or any Subsidiary or Affiliate.

     15.15 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash, other securities or other
property shall be paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

     15.16 Headings. Headings are given to the sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

Section 16. Term Of The Plan.

     16.1 Effective Date. The Plan shall be effective as of May 18, 2006 provided it has been
approved by the Company’s shareholders.

     16.2 Expiration Date. No new Awards shall be granted under the Plan after the tenth
(10th) anniversary of the Effective Date. Unless otherwise expressly provided in the
Plan or in an applicable Award Agreement, any Award granted hereunder may, and the authority of the
Board or the Committee to amend, alter, adjust, suspend, discontinue or terminate any such Award or
to waive any conditions or rights under any such Award shall, continue after the tenth
(10th) anniversary of the Effective Date.

14EX-10.57 ASSET PURCHASE AGREEMENT, DATED MAY 22,20

	 	 	 	 	 

Exhibit 10.57

ASSET PURCHASE AGREEMENT

between

ET LABS, INC.

and

ETSEC., INC.

and

PROXYMED LAB SERVICES, LLC.

and

PROXYMED, INC.

 

 

TABLE OF CONTENTS

Page

	 	 	 	 	 
	1. Purchase and Sale of Assets
	 	 	1	 
	1.1 Included Assets
	 	 	1	 
	1.2 Excluded Assets
	 	 	2	 
	1.3 Seller’s Liabilities
	 	 	2	 
	 
	 	 	 	 
	2. Amount and Allocation of Purchase Price
	 	 	4	 
	2.1 Purchase Price
	 	 	4	 
	2.2 Other Adjustments
	 	 	4	 
	2.3 Consistent Tax Reporting
	 	 	5	 
	 
	 	 	 	 
	3. Right of Entry and Inspection
	 	 	5	 
	 
	 	 	 	 
	4. Closing
	 	 	5	 
	 
	 	 	 	 
	5. Conditions of Closing
	 	 	5	 
	5.1 Consents
	 	 	5	 
	5.2 Representations and Warranties True as of the Closing Date
	 	 	5	 
	5.3 Material Adverse Changes
	 	 	5	 
	 
	 	 	 	 
	6. Condition of Tangible Assets at Closing
	 	 	5	 
	 
	 	 	 	 
	7. Closing Transactions
	 	 	6	 
	7.1 Seller
	 	 	6	 
	7.2 Buyer
	 	 	6	 
	 
	 	 	 	 
	8. Transaction-Related Taxes and Costs
	 	 	7	 
	 
	 	 	 	 
	9. Conduct of Business and Transactions Prior to Closing
	 	 	7	 
	9.1 Operations
	 	 	7	 
	9.2 Contracts
	 	 	7	 
	9.3 Insurance
	 	 	7	 
	9.4 Adverse Changes
	 	 	7	 
	9.5 Encumbrances
	 	 	7	 
	9.6 Marketing
	 	 	7	 
	 
	 	 	 	 
	10. Post-Closing Obligations
	 	 	7	 
	10.1 Accounts Receivable
	 	 	7	 
	10.2 Post-Closing Customer Contracts
	 	 	8	 
	 
	 	 	 	 
	11. Representations and Warranties
	 	 	8	 
	11.1 Representations and Warranties of Seller and ProxyMed
	 	 	8	 
	11.1.1 Power; Authorization; Enforceable Obligations
	 	 	8	 
	11.1.2 Organization; Corporate Existence; Good Standing
	 	 	8	 
	11.1.3 Financial Statements
	 	 	8	 

 

 

	 	 	 	 	 
	11.1.4 No Adverse Changes
	 	 	8	 
	11.1.5 Taxes
	 	 	9	 
	11.1.6 Broker’s and Finder’s Fee
	 	 	9	 
	11.1.7 Title to Assets
	 	 	9	 
	11.1.8 Property, Equipment and Operations
	 	 	10	 
	11.1.9 Insurance
	 	 	11	 
	11.1.10 Contracts
	 	 	11	 
	11.1.11 Compliance with Law, Governmental and Industrial Approvals
	 	 	1	 
	11.1.12 Employees
	 	 	1	 
	11.1.13 No Violation
	 	 	1	 
	11.1.14 Litigation
	 	 	1	 
	11.1.15 Creditors
	 	 	1	 
	11.1.16 Accounts Receivable
	 	 	1	 
	11.1.17 Intellectual Property
	 	 	1	 
	11.1.18 Completeness of Disclosure
	 	 	1	 
	11.2 Representation and Warranties of Buyer
	 	 	15	 
	11.2.1 Power; Authorization; Enforceable Obligations
	 	 	15	 
	11.2.2 Organization; Existence and Good Standing
	 	 	15	 
	11.2.3 No Violation
	 	 	15	 
	11.2.4 Litigation
	 	 	15	 
	11.2.5 Broker’s or Finder’s Fee
	 	 	15	 
	11.2.6 No Default
	 	 	15	 
	 
	 	 	 	 
	12. Indemnification
	 	 	16	 
	12.1 Indemnification, General
	 	 	16	 
	12.2 Survival of Representations and Warranties and Indemnification Obligation
	 	 	16	 
	12.3 Claims
	 	 	17	 
	12.4 Request for Indemnification
	 	 	17	 
	12.5 Payment by Indemnifying Party
	 	 	17	 
	 
	 	 	 	 
	13. Miscellaneous
	 	 	17	 
	13.1 Entire Agreement
	 	 	17	 
	13.2 Benefit and Obligations
	 	 	18	 
	13.3 Governing Law
	 	 	18	 
	13.4 Counterparts
	 	 	18	 
	13.5 Survival
	 	 	18	 
	13.6 Waiver
	 	 	18	 
	13.7 Further Instruments
	 	 	18	 
	13.8 Payments and Notices
	 	 	18	 
	13.9 Costs and Attorneys’ Fees
	 	 	18	 
	13.10 Publicity
	 	 	19	 

 ii 

 

 

EXHIBITS

	 	 	 
	1.1(i)

	 	Equipment
	1.1(ii)

	 	Inventory
	1.1(iii)

	 	Copyrights, Trademarks and Patents
	1.1(iv)

	 	Customer Contracts
	1.1(vi)

	 	Other Contracts
	1.1(vii)

	 	Non-Competition Agreement
	1.1(viii)

	 	Accounts Receivable
	1.2

	 	Additional Excluded Assets
	1.3(a)

	 	Accounts Payable
	1.3(b)

	 	Excluded Liabilities
	7.1.1

	 	Bill of Sale
	7.1.11

	 	Closing Certificate of Seller
	7.2.1

	 	Closing Certificate of Buyer
	11.1.1

	 	Consents Required
	11.1.3

	 	Financial Statements of Seller
	11.1.4

	 	Adverse Changes
	11.1.7

	 	Title Exceptions and Leases
	11.1.10

	 	Contracts
	11.1.12

	 	Employees
	11.1.14

	 	Litigation

 

 

ASSET PURCHASE AGREEMENT

     This
ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of
the 22nd day of May, 2008 by
and among ET Labs, Inc., a Delaware corporation (the “Buyer”), ETSec., Inc., a Delaware corporation
(“ET Sec” and, together with the Buyer, the “Buying Parties”), ProxyMed Lab Services, LLC, a
Delaware limited liability company (the “Seller”), and ProxyMed, Inc., a Florida corporation
(“ProxyMed” and, together with Seller, the “Selling Parties”).

BACKGROUND:

     Seller is engaged in the business (the “Business”) of providing medical laboratory
communications solutions and products, including printing technology which is integrated into
printers installed in physician offices and the support, maintenance and monitoring of such
printers; “Pilot” lab report transfer device, and support thereof; and “Fleet Management System”
online printer monitoring program. Seller operates its Business from a leased facility located at
2533 Centennial Boulevard, Suite B, Jeffersonville, IN 47130 (the “Leased Premises”);

     Seller desires to sell, and Buyer desires to purchase, substantially all of the assets used in
the Business, in accordance with and subject to the terms and conditions set forth below.
ProxyMed is the sole owner of the capital stock of Seller.

     NOW, THEREFORE, in consideration of the mutual covenants and upon the terms and subject to the
conditions set forth herein, Buyer and Seller and ProxyMed agree as follows:

     1. Purchase and Sale of Assets.

          1.1 Included Assets All assets being purchased and sold pursuant to this Agreement as
set forth below are referred to collectively as the “Assets”. Subject to the terms and conditions
hereto, Buyer shall purchase from Seller, and Seller shall sell, assign, transfer, convey and
deliver to Buyer, all Assets of the Business, wherever located, free and clear of all liabilities,
liens, encumbrances, financing statements, security interests, obligations, mortgages and claims of
any kind, which shall include but not be limited to:

               (i) All furniture, equipment, machinery, fixtures, computer software, office supplies and
leasehold improvements owned by Seller on the date hereof or used by Seller in the conduct of the
Business (referred to collectively as the “Equipment”), including without limitation, those items
set forth on Exhibit 1.1(i) attached hereto.

               (ii) The Inventories and supplies of Seller relating to the Business (the “Inventory”), as
well as the marketing and sales literature of Seller, listed on Exhibit 1.1(ii) (the Equipment and
the Inventory is referred to as the “Tangible Assets”).

               (iii) Seller’s goodwill, customer lists, and other intangible assets related to the Business
(collectively referred to as the “Intangible Assets”), including, without limitation, the
following: (a) all of Seller’s rights to its telephone numbers; (b) all of Seller’s rights or
choses in action arising out of occurrences before or after the “Closing Date” (as defined in
Section 4 hereof), including all rights under express or implied warranties relating to the Assets;

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(c) all registered and unregistered trade names, logos, trade secrets, patents, copyrights used,
developed or in the process of being developed by Seller that are related to the Business except
for the names “MedAvant Lab Services,” “ProxyMed Lab Services” and any other name that references
“MedAvant” or “ProxyMed” which names shall be retained by the Selling Parties; and (d) all of
Seller’s information, files, records and data related to its business. Seller and Buyer shall
enter into a transition services agreement that, among other things, allows Buyer to use the name
“MedAvant Lab Services” for 90 days. Claimed, pending or registered copyrights (that do not use
the name “MedAvant” or “ProxyMed”), trademarks (that do not use the name “MedAvant” or “ProxyMed”)
and patents are set forth in Exhibit 1.1(iii).

               (iv) All of Seller’s rights under the service and/or sales contracts and agreements listed on
Exhibit 1.1(iv) attached hereto (the “Customer Contracts”).

               (v) Any contract, agreement, order, commitment or similar arrangement with any customer,
and/or supplier, employee, consultant or any other person to which Seller is a party and which is
used in the operation of the Business.

               (vi) All rights under and title in and to all contracts, agreements and arrangements (other
than the real estate lease and the lease of furnishings, fixtures and equipment related thereto) in
the conduct of the Business and including without limitation all contracts, agreements,
arrangements and leases set forth on Exhibit 1.1(vi) (collectively referred to as the “Other
Contracts”).

               (vii) Covenants of Seller and ProxyMed that, as more fully described in the Non-Competition
Agreement attached hereto as Exhibit 1.1(vii), neither Seller nor ProxyMed will (a) compete with
the Business anywhere in the world for a period of five (5) years from the date hereof, or (b)
solicit any employees or customers of Buyer for a competing business for a period of five (5) years
from the date hereof, (the covenants set forth in this Section 1.1(vii) and in the Non-Competition
Agreement are collectively referred to as the “Covenants”).

               (viii) All accounts receivable and other rights to payment from customers of Seller set forth
on Exhibit 1.1(viii) (the “Accounts Receivable”).

          1.2 Excluded Assets. Notwithstanding the foregoing, Buyer shall not purchase from
Seller, and Seller shall not sell to Buyer, (i) the certificate of incorporation, minute book and
other records having to do with the corporate organization of Seller and the tax returns of Seller;
(ii) the rights that accrue or will accrue to Seller under this Agreement; (iii) the assets and
rights of Seller relating to any employee benefit plans of Seller; (iv) any cash, cash equivalents,
certificates of deposit, checks and marketable securities; (v) any checks deposited for collection
prior to Closing; (vi) the general books of account and books of original entry that comprise
Seller’s permanent accounting or tax records; (vii) all rights, causes of action and claims arising
out of any of the assets described in this Section 1.2, (viii) the assets listed on Exhibit 1.2;
and (ix) the rights to the name “MedAvant” and “ProxyMed.”

          1.3 Seller’s Liabilities. At the Closing, Buyer shall assume and agree to perform all
of Seller’s contractual duties becoming due or required to be performed after the Closing Date
under (i) the Customer Contracts, (ii) the Other Contracts; and (iii) the payables

2

 

listed on
Exhibit 1.3(a) (the “Accounts Payable”) (collectively, the “Assumed Liabilities”). Buyer shall not
assume those liabilities listed on Exhibit 1.3(b) (“Excluded Liabilities”). It is further
understood Buyer shall not be responsible for any of the following liabilities:

                    (a) any indebtedness of Seller for borrowed money;

                    (b) any tax liability of Seller;

                    (c) any liability arising out of any contract or agreement, other than obligations arising
after Closing under the Assumed Liabilities in the ordinary course of business;

                    (d) any liability arising from breach or violation of any contract or permit or other
obligation or legal duty (including, without limitation, any tort committed or alleged to have been
committed by Seller) or any violation of any law, regulation or governmental order occurring or in
existence on or prior to the Closing Date, or arising from any breach or violations of any contract
which results from the transactions contemplated by this Agreement;

                    (e) any liability constituting benefit liabilities, including, without limitation, severance
or termination costs incurred by Seller in connection with its employees under contracts, policies,
unemployment or other applicable laws or otherwise;

                    (f) any liability arising from any environmental risk, contamination, condition, discharge or
disposal occurring or in existence on or prior to the Closing Date, whenever and by whomever
generated, whether or not in compliance with applicable laws;

                    (g) any liability of Seller which any Person seeks to impose upon Buyer or the Business by
virtue of any theory of successor liability, including, without limitation, liabilities relating to
environmental matters, employee benefit plans, taxes and labor and employment matters, employees
injured at work;

                    (h) any liability pertaining to the products and/or services of Seller sold or performed on or
prior to the Closing Date that is not considered covered under product warranties that are being
assumed by Buyer nor covered under Seller’s service contracts that are being assumed by Buyer,
whether such obligations, liabilities or claims are in existence now or on the Closing Date or
arise hereafter or thereafter, and whether or not any such obligations, liabilities or claims are
presently known or discoverable by Seller or Buyer;

                    (i) any legal, accounting, appraisal or other fees, costs or expenses of Seller in connection
with the transactions contemplated by this Agreement;

                    (j) any liability in connection with, or pursuant to, any lawsuits or other contingent
liabilities of the Business, whether or not disclosed to Buyer;

3

 

                    (k) any liability with respect to hazards to health or safety arising from the operation of
the Business on or prior to the Closing Date, including, without limitation, hazards of
occupational injury or disease;

                    (l) any liability for the payment for all outstanding checks issued by Seller which are
outstanding as of the Closing Date; or

                    (m) any liability under Seller’s lease for the Leased Premises except for the liability of the
lease described in Section 7.2.3.

     Seller hereby agrees to (1) retain and be solely responsible for each of the Excluded
Liabilities and (2) indemnify and hold Buyer harmless from and against each of the Excluded
Liabilities. All sales and use taxes resulting from the consummation of the transactions
contemplated hereby shall be borne by Seller, and the parties shall cooperate in obtaining all
exemptions from such sales and use taxes.

     2. Amount and Allocation of Purchase Price.  

          2.1 Purchase Price. Subject to the adjustments set forth in Section 2.2, the purchase
price to be paid by Buyer to Seller for the Assets shall be $2,122,000.

          2.2 Other Adjustments. At Closing, adjustments to the purchase price to be paid by
Buyer to Seller shall be made for the following:

               (i) An increase for the amount by which Accounts Receivable less than 90 days exceed Payables
which are assumed by Buyer.

               (ii) An increase for amounts prepaid by Seller to suppliers of goods and services to be
delivered under contracts after the Closing Date;

               (iii) A decrease for accrued obligations of Seller for paid time off and any other benefits
unsatisfied as of the Closing Date and due to any employee of Seller continuing as an employee of
Buyer;

               (iv) An increase for prepaid insurance premiums on insurance covering any of the Assets or
Seller’s Business being acquired hereunder, but only with respect to policies which Buyer expressly
assumes under this Agreement, if any;

               (v) A decrease in an amount equal to all customer deposits and prepayments collected by
Seller, including service contracts, that have not, as of the Closing Date, either (a) been
returned to the customer, (b) been properly applied against an outstanding
bill due by the customer to Seller and for which due notice of such notice, evidenced in
writing, shall have been given to the customer by Seller, or (c) been recognized as income under
the Company’s accounting principles;

               (vi) A decrease for Seller’s estimated remaining warranty service obligations as calculated by
Seller based upon Seller’s past business experience; and

4

 

               (vii) Any other adjustment provided for elsewhere in this Agreement.

     2.3 Consistent Tax Reporting. The parties hereby covenant that the parties shall
agree upon the allocation of the purchase price among the Assets for tax purposes within 30 days
after the Closing, that such allocation agreement shall be binding on the parties, and the parties
shall file their respective tax returns (including the statement required by Section 1060 of the
Internal Revenue Code of 1986, as amended) in accordance with such allocations and shall not take
any position inconsistent with the allocations. Furthermore, the parties acknowledge, represent
and warrant that such allocations of the purchase price reflect the realities of the transaction
and the true relative values of the assets being acquired by Buyer and agree that they be, and are
hereby, estopped from deviating or attempting to deviate from such allocation.

     3. Right of Entry and Inspection. In addition to any other rights and privileges
granted to Buyer in this Agreement, Seller grants Buyer the right to have its representatives
present at Seller’s business locations at any reasonable time prior to closing for the purpose of
making surveys and inspections which Buyer may deem necessary as long as Buyer provides Seller
reasonable advance notice.

     4. Closing. Closing shall take place on or about June 27, 2008 (the “Closing Date”),
but not more than forty (40) days from the date of this Agreement at 10:00 a.m. at the offices of
Foley & Lardner LLP, Jacksonville, FL.

     5. Conditions of Closing.

          5.1 Consents. Seller or Buyer shall have obtained the written consent of Quest
Diagnostics and Pitney Bowes to the assignment by Seller to Buyer of the respective Contracts with
such parties. Seller shall have obtained the consent of its lender, Laurus Master Fund, Ltd.,
within ten days after the date of this Agreement.

          5.2 Representations and Warranties True as of the Closing Date. The representations
and warranties of Seller contained in this Agreement or in any Schedule or Exhibit thereto or in
any document delivered by Seller to Buyer pursuant to the
provisions hereof shall have been true on the date made without regard to any updates
furnished by Seller after the date hereof and shall be true on the Closing Date with the same
effect as though such representations and warranties were made as of such date and Seller shall
have performed and observed all covenants and agreements required to be performed and observed
between the date hereof and the Closing Date; and if such is not the case, Buyer shall have the
option to cancel this Agreement by so notifying Seller.

          5.3 Material Adverse Changes. If, on or before the Closing Date, the Assets, the
Business, or prospects of the Business have been or have been threatened to be materially adversely
affected in any way as a result of any event or occurrence, Buyer may cancel this Agreement by so
notifying Seller, in which event no party shall have any further liability or obligation to the
other hereunder.

     6. Condition of Tangible Assets at Closing. Seller shall transfer the Tangible Assets
to Buyer in working condition and in no worse condition than their present condition, except for
normal wear caused by reasonable use between the date hereof and the Closing Date.

5

 

     7. Closing Transactions.

          7.1 Seller. At Closing, Seller shall deliver to Buyer the following:

               7.1.1 A fully-executed Bill of Sale and Assignment transferring ownership of the Assets to
Buyer in the form of Exhibit 7.1.1 attached hereto;

               7.1.2 Good standing certificates for Seller and ProxyMed issued by the Secretary of State or
other appropriate official of the respective jurisdiction of formation, dated not more than twenty
(20) days prior to the Closing Date.

               7.1.3 Copies of the resolutions adopted by the Board of Directors of Seller and by the
shareholder of Seller authorizing the execution and delivery of this Agreement and the carrying out
of the transactions contemplated herein, duly certified by the Secretary of Seller;

               7.1.4 A true and complete list of all Inventory, as of the Closing Date;

               7.1.5 A true and complete list of all deposits and other prepaid monies, if any, received by
Seller after the date hereof for services or goods to be provided by Seller on or after the Closing
Date, and true and current original copies of all related contracts and agreements;

               7.1.6 A true and complete list of the names, addresses, and telephone numbers of all of
Seller’s suppliers and contractors;

               7.1.7 A true and complete list of the names, addresses and telephone numbers of all Seller’s
customers;

               7.1.8 A true and complete list of all contracts and agreements Seller entered into after the
date hereof that extend beyond the Closing Date;

               7.1.9 True and complete copies of all written Customer Contracts and Other Contracts that
Buyer is assuming pursuant to this Agreement;

               7.1.10 The fully executed Non-Competition Agreement of Seller and ProxyMed; and

               7.1.11 Seller’s certificate, in the form of Exhibit 7.1.11 attached hereto, as to the validity
and binding nature of this Agreement, and the due observance or performance by Seller and
Stockholder of every agreement and covenant of Seller and ProxyMed hereunder.

          7.2 Buyer. At Closing, Buyer shall deliver to Seller the following:

               7.2.1 Buyers’ certificate as to the validity and binding nature of this Agreement, in the form
of Exhibit 7.2.1 attached hereto;

               7.2.2 A fully executed Assumption Agreement evidencing the

6

 

assumption by the Buyer of the
Assumed Liabilities;

               7.2.3 Buyer’s sublease for that portion of the Leased Premises that includes the space to be
used by Buyer; and

               7.2.4 The purchase price by wire transfer.

     8. Transaction-Related Taxes and Costs. Buyer shall bear the cost and pay the sales,
transfer, and/or other similar taxes, if any, which may be imposed or are payable on or in
connection with the transfer of Assets pursuant to this Agreement, if any, which may be imposed or
are payable on or in connection with the transfer of Assets pursuant to this Agreement.

     9. Conduct of Business and Transactions Prior to Closing. Between the date hereof and
the Closing Date (the “Pre-Closing Period”):

          9.1 Operations. Seller shall continue to operate Seller’s business in the normal
course of business in the same manner as it has been operated heretofore and in compliance with all
federal, state, and local laws and regulations. All expenses, costs, and liabilities incurred by
Seller through the Pre-Closing Period shall be the responsibility of and be borne solely by Seller.

          9.2 Contracts. Seller shall not, without the written consent of Buyer, enter into any
contracts or agreements related to its business operations that are to be performed after the
Closing Date that are not in the normal course of business.

          9.3 Insurance. Seller shall maintain all of its insurance policies in full force and
effect through the Pre-Closing Period.

          9.4 Adverse Changes. Seller shall immediately inform Buyer of (a) all matters which
are materially adverse to the business operations and activities of Seller, and (b) any
representation made in this Agreement becoming untrue, incomplete or misleading.

          9.5 Encumbrances. Seller shall not, without the prior written consent of Buyer,
mortgage, pledge or otherwise subject to lien, charge or other encumbrance any of the Assets, or
sell, transfer, assign, convey, lease, or otherwise dispose of or agree to dispose of any of the
Assets.

          9.6 Marketing. Seller shall maintain any marketing activities regularly conducted
heretofore.

     10. Post-Closing Obligations. 

          10.1 Accounts Receivable. If Seller receives payment on an account receivable from a
customer after the Closing, Seller shall within three weeks remit the amount received to Buyer.

7

 

          10.2 Post-Closing Customer Contracts. Neither Seller nor ProxyMed shall have any
contact with any of Seller’s customers regarding the Business after the Closing and shall not
attempt to collect any amounts due for services provided by Seller prior to Closing.

     11. Representations and Warranties.

          11.1 Representations and Warranties of Seller and ProxyMed. As a material inducement
to Buyer to enter into this Agreement and with the intention of causing Buyer to rely thereon,
Seller and ProxyMed jointly and severally hereby make the following representations and warranties
as of the date hereof, and all such representations and warranties shall continue to be true and
correct at and as of the Closing Date as if made at such time:

               11.1.1 Power; Authorization; Enforceable Obligations. Seller has the full power,
authority and legal right to execute, deliver and perform this Agreement and the Noncompetition
Agreement (the “Transaction Agreements”). The execution, delivery and performance of the
Transaction Agreements by Seller have been authorized by all necessary corporate action. This
Agreement has been, and the other Transaction Agreements and the instruments of transfer,
assignment and conveyance executed and delivered on behalf of Seller at the Closing will be, duly
executed and delivered by a duly authorized officer of Seller, and this Agreement constitutes, and
the other Transaction Agreements and such instruments when executed and delivered will constitute,
legal, valid and binding obligations of Seller enforceable against Seller in accordance with their
respective terms. No consent of any third party, except for those disclosed on Exhibit 11.1.1
hereto, is required for Seller to enter into the Transaction Agreements or to consummate the
transactions contemplated thereby.

               11.1.2 Organization; Corporate Existence; Good Standing. Seller is a limited
liability company duly organized, validly existing and in good standing under the laws of Delaware,
with full power and authority to carry on its Business in any state in which Seller owns assets or
conducts business as it has been conducted, and to own, lease or operate the property used in
connection therewith.

               11.1.3 Financial Statements. Attached hereto as Exhibit 11.1.3 are the financial
statements of Seller as at and for the 12-month periods ended December 31, 2005, December 31, 2006
and December 31, 2007, respectively, and for the four months ended April 30, 2008 (the “Financial
Statements”). The Financial Statements are accurate, complete and in accordance with the books and
records of Seller and present fairly the matters disclosed therein as of the dates and for the
periods indicated.

               11.1.4 No Adverse Changes. Except as disclosed on Exhibit 11.1.4 hereto, from January
1, 2008, through the date hereof, neither Seller nor the Business has:

                    (a) sold, assigned or transferred any material portion of its assets or properties used in or
relating to the Business, except inventory sold in the ordinary course of its business consistent
with past practice;

                    (b) made or suffered any amendment or termination of any material contract, commitment, lease
or agreement relating to the Business to which it is a party or by which it is bound, whether oral
or written, express or implied;

8

 

                    (c) suffered any damage, destruction or loss, whether or not covered by insurance, materially
and adversely affecting the Business or its operations, assets, properties, prospects or financial
condition;

                    (d) suffered any material adverse change in the Business or in its operations, assets,
properties, prospects or financial condition, or received notice or had knowledge of any event or
condition (other than events or conditions affecting the economy or the industry as a whole) that
has had or, to the knowledge of Seller, might have an adverse effect on the Business or its
operations, assets, properties, prospects or financial condition; or

                    (e) entered into any transaction, other than in the ordinary course of its business consistent
with past practice, relating to the Business with any of its affiliates.

               11.1.5 Taxes. All payroll, sales and any other taxes required by law to be withheld
or collected in respect of the Business have been withheld or collected and have been paid over to
the proper governmental authorities or are properly held by Seller for such payment, and all such
withholdings, collections or other payments due in connection therewith as of the Closing Date will
be so withheld, collected, paid over or held for payment as of the date of this Agreement and the
Closing.

               11.1.6 Broker’s and Finder’s Fee. Except for Cain Brothers & Company, LLC, who have
been engaged by, and will be paid by, Seller, Seller has not incurred any liability to any person,
corporation or other entity for any finder’s fee or broker’s fee or any obligation of any kind
whatsoever in connection with the transactions contemplated by this Agreement.

               11.1.7 Title to Assets.

                    (a) Except as disclosed on Exhibit 11.1.7, Seller has good and marketable title to the Assets.
None of the Assets is subject to any lien, pledge, claim, restriction, mortgage, security
interest, charge or other encumbrance or defect of title of any nature.

                    (b) To the knowledge of Seller, all leases, licenses, permits and authorizations in any manner
related to the Business or the Assets and all other instruments, documents and agreements pursuant
to which Seller has obtained the right to use in the Business any real or personal property are in
good standing, valid and effective in accordance with their respective terms, and there is not
under any of such leases, licenses, permits, authorizations, instruments, documents or agreements
any existing material breach or default, nor has there occurred any event which (with or without
the giving of notice or lapse of time, or both) would constitute a material breach or default, or
that in either case could give rise to any material liability on the part of Seller.

                    (c) Seller has the unrestricted right to grant, sell, convey, assign, transfer and deliver the
Assets as herein provided.

9

 

                    (d) No person or entity other than Seller owns any equipment or other tangible assets or
properties used by Seller in the Business, except as described on Exhibit 11.1.7.

                    (e) There are no oral or written agreements, options, commitments or rights with, to or in any
third person to acquire any of the Assets or any interest therein, except for (i) those agreements
effecting the transactions contemplated by this Agreement and (ii) those agreements entered into in
the ordinary course of business consistent with past practice for the sale of the products and
services of the Business.

                    (f) No personal property used by Seller in the Business is leased from any other person,
except for the property leased pursuant to the written lease agreements described in Exhibit 11.1.7
hereto.

                    (g) Seller has no knowledge of any defective condition, structural or otherwise, in the
buildings or other improvements on the leased premises. To Seller’s knowledge, the heating and air
conditioning, plumbing, electrical and drainage systems, at or serving the leased premises are in
working order.

               11.1.8 Property, Equipment and Operations.

                    (a) Exhibits 1.1(i) and 1.1(ii) set forth accurate lists of all Tangible Assets owned by
Seller. Exhibit 1.1(vi) sets forth an accurate list of the lease, licenses and other contracts to
which Seller is a party or is otherwise bound which relate to the foregoing.

                    (b) The equipment and all other tangible Assets are in satisfactory condition for the purposes
intended, have been regularly maintained, subject to normal wear and tear, are inspected and
retested as required, and are satisfactory to conduct the Business as it is presently conducted and
conform in all material respects to applicable laws, ordinances, codes, rules and regulations
relating to their construction, use, operation and maintenance, including without limitation those
relating to zoning, use, occupancy, the environment, health and safety.

                    (c) Seller has not received any notice from any governmental or other public or safety
authority of any uncorrected condition or unpaid assessment, charge or fine relating to the Assets
or the conduct of the Business, including without limitation any notice of violation of housing,
building, license and inspection, fire, labor, safety, health, environmental or other laws,
ordinances, codes, orders, rules and regulations or any notice of any pending or contemplated
condemnation or change in zoning.

                    (d) Seller owns no real property.

                    (e) The Inventory included in the Purchased Assets has been acquired in the ordinary course of
Seller’s business and is of a quality and quantity usable and/or saleable in the ordinary course of
business of Seller without unusual discount from Seller’s normal pricing sheet and is suitable for
the use in business.

10

 

               11.1.9 Insurance . Seller has maintained and now maintains (a) insurance on all its assets and businesses of a
type customarily insured, covering property damage and loss of income by fire or other casualty,
and (b) adequate insurance protection against all liabilities, claims, and risks against which it
is customary to insure. Selling Parties are not in default with respect to payment of premiums on
any such policy. No claim is pending under any such policy.

               11.1.10 Contracts.

                    (a) Exhibit 11.1.10 sets forth complete and accurate lists or descriptions of all “employee
benefits plans” as defined in section 3(3) of ERISA and any other plan, program or practice
providing compensation or other benefits to employees of Seller which are now or have been
maintained by Seller, including, without limitation, all incentive, bonus, deferred compensation,
vacation, holiday, medical, disability, share purchase or other plans or policies for the benefits
of any employee of Seller. Exhibit 11.1.10 sets forth all consents or approvals required under any
contracts that are necessary for Seller to consummate this Agreement to avoid a default under such
contracts.

                    (b) Except as listed in Exhibit 11.1.10, Seller is not a party to, and the Assets are not
bound by, any:

                    (i) Contract with any present or former employee or consultant;

                    (ii) Contract for the future purchase of, or payment for, supplies or products;

                    (iii) Contract to sell or supply products or to perform services;

                    (iv) Representative or sales agency contract;

                    (v) Contract limiting or restraining it from engaging or competing in any lines or business
with any person, firm, corporation or other entity;

                    (vi) License, franchise, distributorship or other agreement, including those which relate in
whole or in part to any ideas, technical assistance or other know-how of or used by Seller; or

                    (vii) Material contract not otherwise disclosed herein.

                    (c) All of the contracts to which Seller is party or by which it or any of the Assets is bound
or affected are valid, binding and enforceable in accordance with their terms. Seller has
fulfilled, or taken all action necessary to enable it to fulfill when due, all of its obligations
under each of such contracts. Except as may be disclosed on Exhibit 11.1.10, all parties to such
contracts have complied in all material respects with the provisions thereof, no party is in
default thereunder and no notice of any claim of default has been given to Seller. There are no
provisions of, or developments materially affecting, any such contract which might prevent Seller
from realizing the benefits thereof whether before or after the Closing.

11

 

               11.1.11 Compliance with Law, Governmental and Industrial Approvals.

                    (a) To Seller’s knowledge, Seller has complied with, and has no liability under, all material
federal, state, local and foreign laws (including Environmental Laws, as defined below), rules,
regulations, ordinances, orders, judgments and decrees now or heretofore applicable to the Business
and the Business assets, properties or operations. Seller has received no notice of any asserted
or pending violation of any such laws, rules, regulations, ordinances, orders, judgments or
decrees.

                    (b) As used in this Agreement, “Environmental Laws” shall include, without limitation, any and
all federal, state, local and foreign laws and requirements relating to health and safety and
pollution or protection of the environment, including laws and requirements relating to above
ground and underground storage tanks, emissions, discharges, releases or threatened releases of
stormwater, pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or
wastes into the environment (including without limitation ambient air, surface water, groundwater,
or land), or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport, or handling of pollutants, contaminants, chemicals, or industrial,
toxic or hazardous substances or wastes.

               11.1.12 Employees. Attached hereto as Exhibit 11.1.12 is a list of all of Seller’s
employees, including for each his or her salary, wages, or other compensations, including incentive
compensation accrued vacation and other holiday pay, date of employment and position or title as of
the date hereof. It is understood and agreed that Buyer is under no obligation to employ any of
Seller’s present or former employees, but Seller agrees to exert its best efforts to assist Buyer
in securing the employment of Seller’s employees whom Buyer wishes to employ. Seller’s employees
are not represented by a union and no certification election is pending under the National Labor
Relations Act for any of Seller’s employees and Seller has no notice, formal or informal, of the
likelihood of there being such an election in the future.

               11.1.13 No Violation. The execution, delivery and performance of this Agreement, and
all other agreements and instruments required in connection herewith, by or on behalf of the
Selling Parties and the consummation of the transactions herein or therein contemplated have not
and will not (with or without the giving of notice or the lapse of time, or both) conflict with or
violate (a) any law, rule or regulation which is applicable to any of the Selling Parties, (b) any
judgment, order, writ, injunction or decree of any court, arbitrator or governmental, regulatory or
administrative official, body or authority or (c) the operating agreement of Seller; nor will such
execution, delivery or performance violate, conflict with or result (with or without the giving of
notice or the lapse of time, or both) in the breach of or give rise to the liability of the Selling
Parties under any term, condition or provision of, or require the consent of any other party to,
any contract or any other indenture, contract, commitment, lease, trust, agreement, license,
permit, authorization or other instrument or understanding, oral or written, to or by which any of
the Selling Parties is a party or otherwise bound or by which the assets or properties of any of
the Selling Parties may be bound, or give any party the right to terminate, modify, accelerate or
otherwise change the existing rights or obligations of any of the Selling Parties under any of
the foregoing which is to be assumed by Buyer hereunder, or constitute a default thereunder or
result in the creation or imposition of any lien, charge,

12

 

encumbrance or security interest of any
nature whatsoever upon any of the assets or properties of any of the Selling Parties.

               11.1.14 Litigation. Except as disclosed on Exhibit 11.1.14, there is no litigation,
arbitration, investigation or other proceeding pending, or, to the knowledge of Seller, threatened
by or before any court, arbitrator or governmental, regulatory or administrative official, body or
authority against or affecting Seller, the Business, any of Seller’s employees or agents with
respect to their activities as employees or agents of Seller, or which would interfere with the
transactions contemplated by this Agreement or with the Business. Seller and ProxyMed are not in
violation of the provisions of any judgment, order, writ, injunction or decree of any court,
arbitrator or governmental, regulatory or administrative official, body or authority.

               11.1.15 Creditors. To the best of Seller’s and ProxyMed’s knowledge, information, and
belief, the initial creditor list (attached hereto as Exhibit 1.3) is a full and complete listing
of all of Seller’s creditors (including taxing authorities) and the amounts owing or claimed to be
owing, and also the names of all persons, entities and taxing authorities who are known to them
hold or assert claims against them. The proceeds of this sale will be sufficient and will be used
to pay all of Seller’s debts and liabilities as such debts and liabilities become due, including,
but not limited to, all withholding, social security, unemployment insurance, sales and other
taxes, as well as, to the extent necessary to deliver clear title, all debts to customers,
employees, suppliers and concessionaires except for those payables and other liabilities that are
being assigned to or assumed by Buyer pursuant to this Agreement.

               11.1.16 Accounts Receivable. Exhibit 1.1(viii) attached hereto constitutes a full and
complete list of Seller’s accounts receivable as of the date hereof, showing the aging of the
receivables.

               11.1.17 Intellectual Property.

                    (a) Seller owns or has licensed all Intellectual Property necessary for the operation of the
Business as presently conducted. Each item of Intellectual Property owned or used by Seller with
respect to the Business immediately prior to the Closing hereunder will be owned or available for
use by Buyer on identical terms and conditions immediately subsequent to the Closing hereunder.
Seller has taken all necessary action to maintain and protect each item of Intellectual Property
with respect to the Business that it owns or uses. As a material inducement to Buyer to enter into
this Agreement and with the intention of causing Buyer to rely thereon, Seller hereby makes the
following representations and warranties:

                    (b) To the knowledge of Seller, Seller, in its operation of the Business, has not interfered
with, infringed upon, misappropriated, or otherwise come into
conflict with any Intellectual Property rights of third parties, and none of Seller’s
directors and officers (and employees with responsibility for Intellectual Property matters) of
Seller has ever received any charge, complaint, claim, demand or notice alleging any such
interference, infringement, misappropriation, or violation (including any claim that Seller must
license or refrain from using any Intellectual Property rights of any third party). To the
knowledge of

13

 

Seller, no third party has interfered with, infringed upon, misappropriated, or
otherwise come into conflict with any Intellectual Property rights of any of Seller.

                    (c) Exhibit 1.1(iii) identifies each patent or trademark registration which has been issued to
Seller with respect to any of its Intellectual Property, identifies each pending patent application
or application for registration which Seller has made with respect to any of its Intellectual
Property, and identifies each license, agreement, or other permission which Seller has granted to
any third party with respect to any of its Intellectual Property (together with any exceptions).
Seller has delivered to Buyer correct and complete copies of all such patents, trademark
registrations, applications, licenses, agreements, and permissions (as amended to date) and has
made available to Buyer correct and complete copies of all such other written documentation
evidencing ownership and prosecution (if applicable) of each such item. Exhibit 1.1(iii) also
identifies each trade name or unregistered trademark used by Seller in connection with the
Business. With respect to each item of Intellectual Property required to be identified in Exhibit
1.1(iii):

                    (i) Seller possesses all right, title and interest in and to such item, free and clear of any
security interest, license or other restriction;

                    (ii) such item is not subject to any outstanding injunction, judgment, order, decree, ruling
or charge;

                    (iii) no action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand
is pending to the knowledge of Seller or is threatened which challenges the legality, validity,
enforceability, use, or ownership of such item; and

                    (iv) Seller has not ever agreed to indemnify any person for or against any interference,
infringement, misappropriation or other conflict with respect to such item.

                    (d) “Intellectual Property” means with respect to the Business (i) all inventions (whether
patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and
all patents, patent applications, and patent disclosures, together with all reissuances,
continuations, continuations-in-part, revisions, extensions, and reexaminations thereof, (ii) all
trademarks, service marks, trade dress, logos, trade names, and corporate names, together with all
translations, adaptations, derivations and combinations thereof and including all goodwill
associated therewith, and all applications, registrations and renewals in connection therewith,
(iii) all copyrightable works, all copyrights, and all applications, registrations and renewals in
connection therewith, (iv) all trade secrets and confidential business information (including
ideas, research and development, know-how formulas, compositions, manufacturing and production
processes and techniques, technical data, designs, drawings, specifications, customer and supplier
lists, pricing and cost information, and business and marketing plans and
proposals), (v) all computer software (including data and related documentation), (vi) all
other proprietary rights and (vii) all copies and tangible embodiments thereof (in whatever form or
medium).

14

 

               11.1.18 Completeness of Disclosure. No representation or warranty made by Seller or
ProxyMed in this Agreement and no statement made in any certificate, financial statement, exhibit
or schedule furnished in connection with the transactions contemplated hereby is materially false
or misleading or omits to state any fact necessary to make any representation or statement not
misleading in any way relating to the Business.

          11.2 Representation and Warranties of Buyer. As a material inducement to Seller to
enter into this Agreement and with the intention of causing Seller to rely thereon, Buyer hereby
makes the following representations and warranties:

               11.2.19 Power; Authorization; Enforceable Obligations. Buyer has the full power,
authority and legal right to execute, deliver and perform the Transaction Agreements. The
execution, delivery and performance of the Transaction Agreements by Buyer have been authorized by
all necessary company action. This Agreement has been, and the other Transaction Agreements and
the instruments of assumption executed and delivered on behalf of Buyer at the Closing will be,
duly executed and delivered by a duly authorized member of Buyer and this Agreement constitutes,
the other Transaction Agreements and such instruments when executed and delivered will constitute,
legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their
respective terms. No consent of any third party is required for Buyer to enter into the
Transaction Agreements or to consummate the transactions contemplated hereby and thereby.

               11.2.20 Organization; Existence and Good Standing. Buyer is a limited liability
company duly organized, validly existing and in good standing under the laws of the State of
Delaware.

               11.2.21 No Violation. The execution, delivery and performance of this Agreement, and
all other agreements and instruments required in connection herewith, by or on behalf of Buyer, and
the consummation of the transactions herein or therein contemplated have not and will not (with or
without the giving of notice or the lapse of time, or both) conflict with or violate (a) any law,
rule or regulation which is applicable to Buyer, (b) any judgment, order, writ, injunction or
decree of any court, arbitrator or governmental, regulatory or administrative official, body or
authority, or (c) the articles or bylaws of Buyer.

               11.2.22 Litigation . There are no material actions, suits, proceedings or investigations of any kind pending or,
to the knowledge of its responsible officers, threatened against Buyer relating to any of the
transactions contemplated by this Agreement before any court, tribunal or administrative agency or
board which, if adversely determined, might in each case or in the aggregate materially and
adversely affect the ability of Buyer to consummate the transactions contemplated hereby.

               11.2.23 Broker’s or Finder’s Fee. Buyer has incurred no liability to any person,
firm, corporation or entity for any finder’s or broker’s fee or any obligation whatsoever in
connection with the transactions contemplated by this Agreement.

               11.2.24 No Default. The execution and delivery of this Agreement by Buyer and the
consummation of the transactions contemplated hereunder, subject to the terms of

15

 

this Agreement,
shall not result in a violation or breach (with or without the giving of notice or the lapse of
time or both) of any agreement or other instrument or understanding, oral or written, to which
Buyer is a party or by which any of its property is subject or by which it is bound.

     12. Indemnification.

          12.1 Indemnification, General.

               12.1.1 Subject to all the provisions of this Section 12, Seller and ProxyMed jointly and
severally hereby agree to reimburse, indemnify, defend, save and hold harmless Buyer and each
officer, director, shareholder, member, manager and any other affiliate of Buyer (each a “Buyer
Indemnified Person”) from and against any and all claims, demands, damages, liabilities, losses,
costs, expenses, assessments, settlement payments and judgments of any nature whatsoever (including
without limitation reasonable attorneys’ fees and other costs and expenses incident to any claim,
suit, action or proceeding) (“Claims”) suffered, sustained, incurred or required to be paid by such
Buyer Indemnified Person because of or that result from, relate to or arise out of (i) the breach
of or the failure to fulfill any representation, warranty, covenant or agreement made by Seller in
or incorporated into this Agreement (including without limitation the breach of any of the
representations and warranties set forth in Section 12, the failure to fulfill any of the covenants
set forth in Section 10, and the failure to fulfill any obligation pertaining to any agreement
executed and delivered by the Selling Parties in connection herewith) or (ii) any liability or
obligation of the Selling Parties or any liability or obligation arising out of events occurring
prior to the Closing Date, or (iii) Environmental Laws (as defined in Section 11.1.11) or (iv) any
employee benefit plan of Seller or (v) the failure to comply with any bulk sales law in connection
with the transactions contemplated by this Agreement.

               12.1.2 Subject to all the provisions of this Section 12, Buyer and ET Sec jointly and
severally hereby agree to reimburse, indemnify, defend, save and hold harmless each Selling Party
and each officer, director, shareholder, member, manager, and any other affiliate of a Selling
Party (each a “Seller Indemnified Person”) from and against any and all claims,
demands, damages, liabilities, losses, costs, expenses, assessments, settlement payments and
judgments of any nature whatsoever (including without limitation reasonable attorneys’ fees and
other costs and expenses incident to any claim, suit, action or proceeding) suffered, sustained,
incurred or required to be paid by such Seller Indemnified Person because of or that result from,
relate to or arise out of (i) the breach of or the failure to fulfill any representation, warranty,
covenant or agreement made by Buyer in or incorporated into this Agreement (including without
limitation the breach of any of the representations and warranties set forth in Section 11, the
failure to fulfill any of the covenants set forth in Section 10 and the failure to fulfill any
obligation pertaining to any agreement executed and delivered by the Buying Parties in connection
herewith) or (ii) any liability or obligation arising out of events occurring after the Closing
Date.

          12.2 Survival of Representations and Warranties and Indemnification Obligation. The
representations, warranties, covenants and agreements of the Parties herein set forth shall survive
the Closing. Any claim for indemnification for any breach of warranty or on any other grounds must
be presented no later than one year after the Closing.

16

 

          12.3 Claims.

               12.3.1 Should any claim be made, or suit or proceeding (including, without limitation, an
audit by any taxing authority) be instituted against any Buyer Indemnified Person or Seller
Indemnified Person (an “Indemnified Person”) which, if valid or prosecuted successfully, would be a
matter for which an Indemnified Person is entitled to indemnification under this Agreement (a
“Claim”), the Indemnified Person shall notify the indemnifying party in writing concerning the same
promptly after the assertion or commencement thereof, as provided in Section 12.4. The Indemnified
Person shall in the first instance file in a timely manner any answer or pleading with respect to a
suit or proceeding if such action is necessary to avoid default or other adverse results. The
indemnifying party shall control the defense of any Claim, shall engage counsel reasonably
acceptable to the Indemnified Person, and shall use its best efforts to defeat or minimize any loss
resulting from such Claim. The Indemnified Person shall provide the indemnifying party with such
information and opportunity for consultation as may reasonably be requested by the indemnifying
party and it shall be entitled, at its own expense, to participate in the defense of a Claim and to
engage counsel for such purpose.

               12.3.2 No settlement of a Claim involving liability of an indemnifying party under this
Section 12 shall be made without prior written consent thereto by or on behalf of such party, which
consent shall not be unreasonably withheld or delayed and which consent will be final and binding
on all involved parties.

          12.4 Request for Indemnification. In the event that at any time or from time to time
an Indemnified Person determines that it is entitled to indemnification under this Section 12, the
Indemnified Person shall give written notice to the indemnifying party specifying in reasonable
detail to the extent then known the basis on which indemnification is sought, the amount of the
actual or potential loss, damage or expense and requesting indemnification. Upon receipt of any request for
indemnification (whether or not involving a Claim), the indemnifying party may object thereto by
delivering written notice of such objection to the Indemnified Person specifying in reasonable
detail the basis on which such objection is made, and delivered within 30 days after receipt of the
request for indemnification. Failure on the part of the indemnifying party so to object to any
request for indemnification shall constitute acceptance by the indemnifying party of such request.

          12.5 Payment by Indemnifying Party. The indemnifying party shall pay promptly any
amounts which it is obligated to pay pursuant to this Section 12, upon acceptance or determination
of such obligation and from time to time as any such obligations become, to any extent, liquidated
as to amount.

     13. Miscellaneous.  

          13.1 Entire Agreement. This Agreement constitutes the entire understanding and
agreement by and among the parties with respect to the subject matter hereof and the transactions
contemplated hereby, superseding all prior writings, discussions and understandings between the
parties with respect thereto, and may be terminated, discharged or modified only by a writing
executed by all of the parties hereto. No party shall be deemed to have waived any of its rights
hereunder unless the same shall be accompanied by a writing specifically stating the

17

 

subject of
such waiver which writing shall be properly executed by one or more authorized representatives of
the waiving party.

          13.2 Benefit and Obligations. This Agreement shall be binding upon and inure to the
benefit of Buyer and Seller, their successors and assigns, and shall be binding upon and inure to
the benefit of Seller’s Stockholders and their heirs and assigns.

          13.3 Governing Law. The validity, construction and performance of this Agreement
shall be governed by the law applicable to contracts made and wholly performed within the State of
Delaware, without giving effect to the principles of conflicts of law.

          13.4 Counterparts. This Agreement may be executed in several counterparts, as long as
each party to this Agreement executes at least one such counterpart. Each of such counterparts
shall be an original but all of the counterparts, when taken together, shall constitute one and the
same instrument and shall become effective when each party hereto has executed at least one such
counterpart.

          13.5 Survival . The terms and conditions of this Agreement and the documents related thereto and the
obligations of the parties hereunder and thereunder, shall, except as expressly limited herein or
therein, survive the execution and delivery of this Agreement and the closing thereunder.

          13.6 Waiver. The waiver by any party of any of the terms and/or conditions hereof
and/or of any breach of any provision of this Agreement shall not operate or be construed as a
waiver by any party of any other breach or of any subsequent breach.

          13.7 Further Instruments. The parties shall execute and deliver or cause to be
executed and delivered to each other such further instruments, documents, conveyances and things
and take such other action as may be reasonably required or appropriate to more effectively carry
out the terms, provisions and purposes of this Agreement.

          13.8 Payments and Notices. Any payments or notices which pursuant to the terms of
this Agreement shall be due on a Saturday, Sunday or federal government holiday shall be considered
timely if given or made on the next succeeding business day. All payments shall be deemed to be
made and notices given when either hand delivered against receipt, or mailed by certified mail,
return receipt requested and postage prepaid to the appropriate address indicated below or to such
other address as a party shall designate for itself from time to time by notice to the other
parties.

	 	 	 	 	 
	 
	 	To Buyer at:	 	15000 Commerce Parkway
	 
	 	 	 	Mount Laurel, NJ  08054
	 
	 	 	 	 
	 
	 	To Seller or ProxyMed at:	 	1901 East Alton Avenue, Suite 100
	 
	 	 	 	Santa Ana, CA  92705

          13.9 Costs and Attorneys’ Fees. In the event of a breach by any party to this
Agreement, the costs, including all court costs, arbitration costs, deposition expenses, reasonable
attorneys’ fees and other expenses incurred in enforcing this Agreement and the obligations of

18

 

the
other parties hereto (the “Costs of Enforcement”) shall be included in the calculation of the
damages caused by said breach and, if any party files an action to enforce this Agreement or any
provisions contained herein, the prevailing party in such action shall be entitled to recover its
Costs of Enforcement, in addition to all other remedies or damages.

          13.10 Publicity. It is acknowledged and agreed that the respective parties pursuant
to applicable laws or rules of securities exchanges may be required to make public announcements or
statements with respect to this Agreement and the transactions contemplated herein. Prior to
making any public announcement or statement relating to the transactions contemplated herein,
each party agrees to consult with the other party with respect to the detailed content of any such
announcement or statement, and, further, to the greatest extent permitted under applicable law,
take any comments made or views expressed by the other party into due and careful consideration
when making any public announcement or statement.

19

 

     IN WITNESS WHEREOF, the parties have caused this Agreement (including all Exhibits) to be duly
executed on the date hereof.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	ET Labs, Inc.
	 
	 	 	 	 	 	 	 	 
	/s/ Nancy Leo

	,	Secretary
	 	 	 	By:
	 	/s/ Susan Lutz
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Susan Lutz, President
	 
	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	ETSec., Inc.
	 
	 	 	 	 	 	 	 	 
	/s/ Nancy Leo

	,	Secretary
	 	 	 	By:
	 	/s/ Susan Lutz
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Susan Lutz, President
	 
	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	ProxyMed Lab Services, LLC
	 
	 	 	 	 	 	 	 	 
	/s/ Peter E. Fleming, III 	,	Secretary	 	 	 	By: ProxyMed, Inc., its sole member
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 	 	By:  	                                /s/ Peter E. Fleming, III
 
	 	 	 	Peter E. Fleming, III, 
	 	 	 	Interim Chief Executive Officer 
	 

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	ProxyMed, Inc.
	 	 
	/s/ Peter E. Fleming, III

	,	Secretary
	 	 	 	By:
	 	/s/ Peter E. Fleming, III
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Peter E. Fleming, III,
	 

	 	 	 	 	 	 	 	Interim Chief Executive Officer

20

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