Document:

EX-10.20 Agreement w/ Rafail Zubok

Exhibit 10.20

AGREEMENT

THIS AGREEMENT, entered into this 28 day of April 2008, is by and between Accelerated
Innovation LLC, a Delaware Limited Liability Company having its principal place of business at 1033
U.S. Highway 46E, Suite A204, Clifton, NJ 07013 (“Accelerated”), Cervical Xpand, LLC, a New Jersey
Limited Liability Company having its principal place of business at 1033 U.S. Highway 46E, Suite
A204, Clifton, NJ 07013 _(“Cervical Xpand”) and Rafail Zubok, an individual residing at 222 Spruce
Street, Midland Park, NJ 07432 (“Zubok”).

          Whereas, Accelerated is the owner of all right, title and interest in certain technology
related to spinal, hip and knee orthopedic devices and instruments, including, but not limited to
the patent applications set forth in Exhibit A (hereinafter, “Accelerated Technology”); and

          Whereas, Cervical Xpand is the owner of all right, title and interest in certain technology
related to the Accin Helibone Hourglass VBR System for Spinal Surgery including, but not limited
to the patent applications set forth in Exhibit B (hereinafter, “Cervical Xpand Technology”); and

          Whereas, Zubok has certain knowledge and expertise in the field of spinal orthopedic devices
and instruments,, and assisted Accelerated in the development and commercialization of
Accelerated’s Technology; and

          Whereas, Zubok has certain knowledge and expertise in the field of spinal VBR devices,, and
assisted Cervical Xpand in the development and commercialization of Cervical Xpand’s Technology;
and

          Whereas, Accelerated retained Zubok as an Independent Contractor to assist Accelerated in the
development and/or commercialization of the Accelerated Technology; and

          Whereas, Cervical Xpand retained Zubok as an Independent Contractor to assist Cervical Xpand
in the development and/or commercialization of the Cervical Xpand Technology.

          NOW, THEREFORE, for good and valuable consideration, the receipt for and sufficiency of which
is hereby acknowledged, Zubok does hereby represent and warrant as follows:

1.1. Zubok hereby represents and warrants that Zubok will not assert any rights in any
Accelerated Technology or any Cervical Xpand Technology.

1.2. Zubok hereby represents and warrants that his contributions to the inventions as
disclosed in the Accelerated Technology and the Cervical Xpand Technology are not
subject to any pre-existing or co-existing obligations to any third party.

1.3. Zubok hereby represents and warrants that to Zubok’s knowledge, no composition,
method, software or device incorporating his inventions would infringe any patent,
copyright or other proprietary right of any third party.

1.4. Zubok hereby represents and warrants that Zubok has no other obligations to
assign any inventions made, conceived or reduced to practice during his relationship with
Accelerated or Cervical Xpand.

Page 1 of  7  

 

1.5. Zubok hereby represents and warrants that the terms of this Agreement are not
inconsistent with any other contractual or legal obligations that Zubok may have or with
the
policies of any institution or company with which Zubok is or was associated.

1.6. Zubok hereby represents and warrants that all of Zubok’s contributions to the
Accelerated Technology and to the Cervical Xpand Technology were Zubok’s original work
and that, to Zubok’s knowledge, none of his inventions or any development, use,
production, distribution, or exploitation thereof will infringe, misappropriate, or violate
any
intellectual property or other right of any other person or entity (including, without
limitation,
Zubok).

1.7. Zubok has the full right to enter into this Agreement and to provide Accelerated and

Cervical Xpand with the representations and warranties and rights provided for herein.

2. MISCELLANEOUS PROVISIONS.

     2.1. Assignment:

This Agreement cannot be assigned by either party without the prior written consent of the other
party, which will not be unreasonably withheld, except that Accelerated and Cervical Xpand may
assign this Agreement to any successor of all or substantially all of its business to which this Agreement relates without the prior written consent of Zubok.

     2.2. Binding Effect:

This Agreement will be binding on and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors, and assigns.

     2.3. Force Majeure:

No party will be in default or otherwise liable for any delay in or failure of its performance
under this Agreement if such delay or failure arises by any reason beyond its reasonable
control, including any act of God, any acts of the common enemy, terrorism, the elements,
earthquakes, floods, fires, epidemics, riots, failure or delay in transportation or
communications, or any other act or failure to act by another party or such other party’s
employees, agents, or contractors; provided, however, that lack of funds will not be deemed to
be reasons beyond a party’s reasonable control. The parties will promptly inform and consult
with each other as to any of the above causes, which in their judgment may or could be the
cause of a delay in the performance of this Agreement.

     2.4. Waiver:

The failure of any party to enforce any of the provisions hereof will not be construed to be a
waiver of the right of such party thereafter to enforce such provisions or any other
provisions.

     2.5. Governing Law:

This Agreement will be governed for all purposes by the laws of the State of New Jersey. If any
provision of this Agreement is declared void, such provision will be deemed severed from this
Agreement, which will otherwise remain in full force and effect.

Page 2 of  7  

 

     2.6. Jurisdiction; Service of Process:

Any action or proceeding seeking to enforce any provision of, or based on any right arising out of,
this Agreement shall be subject to the exclusive jurisdiction of the state and federal courts
located in the State of New Jersey.

     2.7. Costs:

Zubok agrees that if he is held by any court of competent jurisdiction to be in violation, breach,
or nonperformance of any of the terms of this Agreement, then he will pay all costs of such action
or suit, including reasonable attorneys’ fees.

     2.8. Section Headings; Construction:

The heading appearing at the beginning of the several sections making up this Agreement have been
inserted for identification and reference purposes only and will not be used in the construction
and interpretation of this Agreement.

     2.9. Remedies:

2.10. All rights conferred under this Agreement or by any other instrument or law will be
cumulative and may be exercised singularly or concurrently.

     2.11. Amendments:

This Agreement may only be amended, changed, or modified in a writing signed by both parties.

     2.12. Relationship of the Parties:

Each party is acting as an independent contractor and not as employee, agent, partner, or joint
venturer with the other party for any purpose. Except as provided in this Agreement, neither party
will have any right, power, or authority to act or to create any obligation, express or implied,
on behalf of the other.

     2.13. Counterparts:

This Agreement may be executed in one or more counterparts, each of which will be deemed to be an
original copy of this Agreement, and all of which, when taken together, will be deemed to
constitute one and the same Agreement.

     2.14. Entire Agreement:

The parties agree that this Agreement constitutes the complete and exclusive statement of the
agreement between them as to the specific subject matter hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Page 3 of  7  

 

IN WITNESS WHEREOF, the parties hereby intending to be legally bound, have caused this Agreement to
be executed by their duly authorized representatives.

AGREED TO AND ACCEPTED BY:

	 	 	 	 	 	 	 	 	 
	Rafail zubok	 	Accelerated Innovation LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ray Zubok
	 	By:
	 	/s/ Michael Kvitnitsky	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	(Signature)
	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	Ray Zubok
 

(Print)
	 	Name:
	 	Michael Kvitnitsky
 

	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	4-28-2008
	 	Date:
	 	4-28-2008	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Cervical Xpand LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Michael Kvitnitsky	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Michael Kvitnitsky	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:
	 	4-28-2008	 	 
	 

	 	 	 	 	 	 	 	 

Page 4 of  7  

 

EXHIBIT A

	 	 	 	 	 	 	 
	 	 	PATENT	 	 	 	 
	KGGD	 	APPLICATION	 	DATE	 	 
	NO.	 	NO.	 	FILED	 	TITLE OF INVENTION
	622/2

	 	60/658,365)
	 	(03/03/05)
	 	DYNAMIC STABILIZER
	622/2A

	 	11/186,699
	 	07/21/05
	 	VERTEBRAL STABILIZATION USING
FLEXIBLE RODS
	622/2B

	 	11/325,104

60/658,365)
	 	1/4/06

(3/3/05)
	 	METHODS AND APPARATUS FOR
VERTEBRAL STABILIZATION USING
SLEEVED SPRINGS
	622/3

	 	11/348,594

60/658,313)
	 	02/07/06

(03/03/05)
	 	METHODS AND APPARATUS FOR
PROVIDING A RETAINER FOR A
BONE STABILIZATION DEVICE
	622/5

	 	60/658,227)
	 	(03/03/05)
	 	PEDICLE SCREW
	622/5A

	 	11/360,708
	 	02/23/06
	 	SPINAL STABILIZATION USING
BONE ANCHOR AND ANCHOR
SEAT WITH TANGENTIAL WITH
LOCKING FEATURE
	622/5B

	 	11/360,707
	 	02/23/06
	 	SPINAL STABILIZATION USING
BONE ANCHOR SEAT AND CROSS
COUPLING WITH IMPROVED
LOCKING FEATURE
	622/6

	 	11/385,083

60/665,010)
	 	03/21/06

(03/24/05)
	 	METHOD AND APPARATUS FOR
BONE STABILIZATION
	622/7

	 	11/376,977

60/665,009
	 	03/16/06

(03/24/05)
	 	INTERVERTEBRAL DISC
REPLACEMENT DEVICE
	622/8

	 	Non-Provisional No.
	 	05/26/05
	 	COATED MATERIAL PEDICLE
	 

	 	11/137,963
	 	 	 	SCREW AND ROD
	622/9

	 	11/443,425

60/688,421
	 	05/30/06

(06/08/05)
	 	VERTEBRAL FACET STABILIZER
	622/10

	 	11/488,817
	 	07/18/06
	 	INTERVERTEBRAL DISC
REPLACEMENT DEVICE WITH
RESILIENT SUPPORT

Page 5 of  7  

 

EXHIBIT B

	 	 	 	 	 	 	 
	 	 	PATENT	 	 	 	 
	KGGD	 	APPLICATION	 	DATE	 	 
	NO.	 	NO.	 	FILED	 	TITLE OF INVENTION
	622/4A

	 	Non-Provisional No.

11/176,915

(Provisional No.

60/658,345)
	 	07/07/05

(03/03/05)
	 	INTERVERTEBRAL
STABILIZER
	622/4 PCT

	 	PCT/US05/27506
	 	08/03/05
	 	INTERVERTEBRAL
STABILIZER
	622/4B

	 	Non-Provisional No.

11/176,916 

(Provisional No.

60/658,345)
	 	07/07/05

(03/03/05)
	 	CERVICAL
INTERVERTEBRAL
STABILIZER
	622/4C

	 	Non-Provisional No.

11/176,717 

(Provisional No.

60/658,345)

	 	07/07/05

(03/03/05)
	 	ANTERIOR LUMBAR
INTERVERTEBRAL
STABILIZER
	622/4D

	 	Non-Provisional No.

11/176,175

(Provisional No.

60/658,345)
	 	07/07/05

(03/03/05)
	 	POSTERIOR LUMBAR
INTERVERTEBRAL
STABILIZER
	622/4E

	 	Non-Provisional No.

11/176,914 

(Provisional No.

60/658,345)
	 	07/07/05

(03/03/05)
	 	INTERVERTEBRAL
STABILIZER,
METHODS OF USE
AND
INSTRUMENTATION
THEREFOR
	622/4 EP

	 	05778926.5-1257
	 	August 8,
2007
	 	INTERVERTEBRAL
STABILIZER,
METHODS OF USE
AND
INSTRUMENTATION
THEREFOR

Page 6 of  7EX-10.62 ORDER (A) APPROVING ASSET PURCHASE AGRMT.

Exhibit 10.62

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

	 	 	 	 	 	 	 
	In re:
	 	 	)	 	 	Chapter 11
	 
	 	 	)	 	 	 
	PROXYMED TRANSACTION
	 	 	)	 	 	Case No. 08-11551 (BLS)
	SERVICES, INC., et al.,1
	 	 	)	 	 	 
	 
	 	 	)	 	 	(Joint Administration Requested)
	Debtors.
	 	 	)	 	 	 
	 
	 	 	)	 	 	Ref. Docket No. 18

ORDER (A) APPROVING ASSET PURCHASE AGREEMENT AND AUTHORIZING

THE SALE OF ASSETS OF DEBTORS OUTSIDE THE ORDINARY COURSE OF

BUSINESS; (B) AUTHORIZING THE SALE OF ASSETS FREE AND CLEAR OF ALL

LIENS, CLAIMS, INTERESTS AND ENCUMBRANCES; (C) AUTHORIZING THE

ASSUMPTION AND SALE AND ASSIGNMENT OF CERTAIN EXECUTORY

CONTRACTS AND UNEXPIRED LEASES: AND (D) GRANTING RELATED RELIEF

          Upon the motion, dated July 23, 2008 (the “Sale Motion”), of ProxyMed, Inc. and ProxyMed
Transactional Services, Inc. (the “Seller”) for the entry of an order pursuant to sections 105,
363 and 365 of Title 11 of the United States Code (the “Bankruptcy Code”) and Rules 2002, 6004,
6006 and 9014 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) authorizing
the Debtors to, inter alia, (i) enter into that certain Asset Purchase Agreement, dated as of July
23, 2008, between MHC Acquisition Corp. (“Purchaser”), and the Seller (the “Agreement,” as amended
herein and attached hereto as Exhibit 1), (ii) sell substantially all of the Acquired
Assets (also referred to herein as the “Assets”) free and clear of all Liens,2 with such sale to be
in accordance with the terms and conditions of the Agreement; (iii) assume, sell and assign
certain executory contracts and unexpired leases to the Purchaser;

 

			
	1	 	The Debtors in these proceedings are: ProxyMed Transaction Services, Inc. f/k/a
MedUnite, Inc. (Tax ID No. XX-XXX5613); ProxyMed, Inc. d/b/a MedAvant Healthcare Solutions (Tax
ID No. XX-XXX2059); and ProxyMed Lab Services LLC f/k/a Key Communications Service, Inc. (Tax ID
No. XX-XXX2059), each with a principal address of 1854 Shackleford Court, Suite 200, Norcross,
GA 30093 and a mailing address of 1901 E. Alton Avenue, Suite 100, Santa Ana, CA 92705.
	 
	2	 	Capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Sale Motion, the Agreement, or the Order (a) Approving Bid Procedures
Relating to Sale of Substantially All of the Assets of the Debtors.; (b) Scheduling A Hearing to
Consider the Sale and Approving the Form and Matter of Notices; (c) Establishing Procedures
Relating to Assumption and Assignment of Certain Contracts, Including Notice of Proposed Cure
Amounts; (d) Approving Expense Reimbursement and Break-Up Fee Provisions; and (e) Granting Related
Relief.

 

 

and (iv) granting related relief; and this Court having entered an order dated August 6, 2008 (the
“Bidding Procedures Order” and attached as Exhibit 1 thereto, the “Bid Procedures”)
authorizing the Debtors to conduct, and approving the terms and conditions of, the Auction and Bid
Procedures to consider higher or otherwise better offers for the Assets, establishing a date for
the Auction, and approving, inter alia, (i) the Bid Procedures in connection with the Auction; (ii)
the form and manner of notice of the Auction and Bid Procedures; (iii) procedures relating to
certain Assumed Section 365 Contracts, including notice of proposed prepetition Cure Amounts; and
(iv) the Expense Reimbursement and the Break-up Fee; and the Court having established the date of
the Sale Hearing; and the Court having jurisdiction to consider the Sale Motion and the relief
requested therein in accordance with 28 U.S.C. §§ 157(b)(2) and 1334; and consideration of the Sale
Motion, the relief requested therein, and the responses thereto, if any, being a core proceeding in
accordance with 28 U.S.C. § 157(b); and the appearance of all interested parties and all responses
and objections, if any, to the Sale Motion having been duly noted in the record of the Sale
Hearing; and upon the record of the Sale Hearing, and all other pleadings and proceedings in this
case, including the Sale Motion; and it appearing that the relief requested in the Sale Motion is
in the best interests of the Debtors, their estates, their creditors and all other parties in
interest; and after due deliberation and sufficient cause appearing therefore;

     IT IS HEREBY FOUND, DETERMINED AND CONCLUDED THAT:3

          A. The findings and conclusions set forth herein constitute the Court’s findings of fact and
conclusions of law pursuant to Bankruptcy Rule 7052, made applicable to this proceeding pursuant
to Bankruptcy Rule 9014.

          B. To the extent any of the following findings of fact constitute conclusions of law, they
are adopted as such. To the extent any of the following conclusions of law constitute findings of
fact, they are adopted as such.

 

			
	3	 	All findings of fact and conclusions of law announced by the Court at the Sale
Hearing in relation to the Sale Motion are hereby incorporated herein to the extent not
inconsistent herewith.

2

 

          C. The Court has jurisdiction over this matter and over the property of the Debtors,
including the Assets to be sold, transferred or conveyed pursuant to the Agreement, and their
respective estates pursuant to 28 U.S.C. § § 157 and 1334. This matter is a core proceeding
pursuant to 28 U.S.C. § 157(b)(2). Venue of these chapter 11 cases and the Sale Motion in this
district is proper pursuant to 28 U.S.C. § § 1408 and 1409.

          D. The statutory predicates for the relief sought in the Sale Motion and the basis for the
approvals and authorizations herein are (i) Bankruptcy Code § § 102, 105, 363, 365, 1123, 1141 and
1146, and (ii) Bankruptcy Rules 2002, 6004, 6006 and 9014.

          E. This Order constitutes a final and appealable order within the meaning of 28 U.S.C. Section
158(a). To any extent necessary under Bankruptcy Rule 9014 and Rule 54(b) of the Federal Rules of
Civil Procedure as made applicable by Rule 7054 of the federal Rules of Bankruptcy Procedure, the
Court expressly finds that there is no just reason for delay in the implementation of this Order,
and expressly directs entry of judgment as set forth herein.

          F. On July 23, 2008 (the “Petition Date”), the Debtors filed voluntary petitions for
reorganization under Chapter 11 of the Bankruptcy Code. Since the Petition Date, the Debtors have
continued in possession and management of their businesses and properties as debtors-in-possession
pursuant to Bankruptcy Code § § 1107(a) and 1108.

          G. As evidenced by the affidavits of service filed with the Court, proper, timely, adequate,
and sufficient notice of the Sale Motion, the Auction, and the Sale Hearing have been provided in
accordance with Bankruptcy Code § § 102(1) and 363(b), Bankruptcy Rules 2002, 6004, 9006, 9007,
9008 and 9014, the local rules of this Court, the procedural due process requirements of the
United States Constitution, and in compliance with the Bidding Procedures Order. The Debtors also
gave due and proper notice of the assumption, sale, and assignment of each Assumed Section 365
Contract to each non-debtor party under each such Assumed Section 365 Contract. Such notice was
good and sufficient and appropriate under the particular circumstances. No other or further
notice of the Sale Motion, the Auction, the Sale

3

 

Hearing, the assumption and assignment of the Assumed Section 365 Contracts, or of the entry of
this Order is necessary or shall be required.

          H. A reasonable opportunity to object or be heard regarding the requested relief has been
afforded to all interested persons and entities, including, without limitation, (i) all entities
that claim any interest in or lien upon the Assets; (ii) all parties to Assumed Section 365
Contracts assumed and sold and assigned pursuant to this Order; (iii) all governmental taxing
authorities that have, or as a result of the sale of the Assets may have, claims, contingent or
otherwise, against the Debtors; (iv) all parties that filed requests for notices under Bankruptcy
Rule 9010(b) or were entitled to notice under Bankruptcy Rule 2002; (v) all known creditors
(whether liquidated, contingent or unmatured) of the Debtors; (vi) all taxing authorities in the
jurisdiction in which the Debtors operate (vii) all interested governmental, pension and
environmental entities known by the Debtors to assert jurisdiction over the Debtors and to have in
interest in the proposed Sale; (viii) the Office of the United States Trustee; (ix) counsel to any
official Committee appointed in these cases; (x) counsel to the Debtors’ pre and post petition
secured lenders; and (xi) entities known by the Debtors with an interest in purchasing the Assets.
Other parties interested in bidding on the Assets were provided, upon request, sufficient
information to make an informed judgment on whether to bid on the Assets.

          I. The Debtors have demonstrated a sufficient basis and the existence of
exigent circumstances for them to enter into the Agreement, sell the Assets and assume and assign
the Assumed Section 365 Contracts under Bankruptcy § § 363, 365, 1123 and 1141, and such actions
are appropriate exercises of the Debtors’ business judgment and in the best interests of the
Debtors, their estates and their creditors.

          J. The Bid Procedures set forth in the Bidding Procedures Order were non-collusive,
substantively and procedurally fair to all parties and were the result of arms length negotiations
between the Debtors and the Purchaser.

          K. The Debtors and their professionals have complied, in good faith, in all respects with the
Bidding Procedures Order. As demonstrated by the testimony and other

4

 

evidence proffered or adduced at the Sale Hearing through marketing efforts and a competitive sale
process conducted in accordance with the Bidding Procedures Order, the Debtors (i) afforded
interested potential purchasers a full, fair and reasonable opportunity to qualify as bidders and
submit their highest or otherwise best offer to purchase all of the Debtors’ assets, and (ii)
provided potential purchasers, upon request, sufficient information to enable them to make an
informed judgment on whether to bid on the Assets.

          L. The Bidding Procedures obtained the highest value for the Assets for the Debtors and their
estates.

          M. The offer of the Purchaser, upon the terms and conditions set forth in the Agreement,
including the form and total consideration to be realized by the Debtors pursuant to the
Agreement, (i) is the highest and best offer received by the Debtors; (ii) is fair and reasonable;
(iii) is in the best interests of the Debtors’ creditors and estates; (iv) constitutes full and
adequate consideration and reasonably equivalent value for the Assets; and (v) will provide a
greater recovery for the Debtors’ creditors and other interested parties than would be provided by
any other practically available alternative.

          N. The Purchaser is not an “insider” or “affiliate” of the Debtors as those terms are defined
in the Bankruptcy Code. The Purchaser is a Purchaser in good faith, as that term is used in the
Bankruptcy Code and the decisions thereunder, and is entitled to the protections of Bankruptcy Code
§ § 363(m) and (n) with respect to all of the Assets. The Agreement was negotiated and entered into
in good faith, based upon arm’s length bargaining, and without collusion or fraud of any kind.
Neither the Debtors nor the Purchaser has engaged in any conduct that would prevent the application
of Bankruptcy Code § 363(m) or cause the application of or implicate Bankruptcy Code § 363(n) to
the Agreement or to the consummation of the sale transaction and transfer of the Assets and Assumed
Section 365 Contracts to Purchaser. The Purchaser is entitled to all the protections and immunities
of Bankruptcy Code § 363(m).

5

 

          O. The Debtors have full corporate power and authority to execute the Agreement and all other
documents contemplated thereby, and the sale of the Assets has been duly and validly authorized by
all necessary corporate authority by the Debtors to consummate the transactions contemplated by
the Agreement. No consents or approvals, other than as may be expressly provided for in the
Agreement, are required by the Debtors to consummate such transactions.

          P. The Debtors have advanced sound business reasons for seeking to enter into the Agreement
and to sell and/or assume and sell and assign the Assets, as more fully set forth in the Sale
Motion and as demonstrated at the Sale Hearing, and it is a reasonable exercise of the Debtors’
business judgment to sell the Assets and to consummate the transactions contemplated by the
Agreement. Notwithstanding any requirement for approval or consent by any person, the transfer of
the Assets to the Purchaser and the assumption and assignment of the Assumed Section 365 Contracts
is a legal, valid and effective transfer of the Assets and any Assumed Section 365 Contracts.

          Q. The terms and conditions of the Agreement, including the consideration to be realized by
the Debtors pursuant to the Agreement, are fair and reasonable, and the transactions contemplated
by the Agreement are in the best interests of the Debtors’ estates.

          R. Except as otherwise provided in the Agreement, the Assets shall be sold free and clear of
all Liens, Claims, Encumbrances and Interests with such Liens, Claims, Encumbrances and Interests
to attach to the consideration to be received by the Debtors in the same priority and subject to
the same defenses and avoidability, if any, as before the Closing, and Purchaser would not enter
into the Agreement to purchase the Assets otherwise. However, in accordance with paragraph 13 of
the Final Order (I) Authorizing (A) Secured Post-Petition Financing Pursuant to 11 U.S.C. §§ 105,
361, 362 and 364(c) and (d); (B) Granting Security Interests, Superpriority Claims and Adequate
Protection; and (C) Use of Cash Collateral entered
August 18, 2008 (the “DIP Order”), Laurus Master
Fund, the Debtors’ pre and post-petition lender (“Laurus”), will be paid in full out of the
proceeds of the Sale at the closing.

6

 

          S. The transfer of the Assets to Purchaser will be a legal, valid and effective transfer of
the Assets, and, except as may otherwise be provided in the Agreement, shall vest Purchaser with
all right, title and interest of the Debtors to the Assets free and clear of any and all Liens,
Claims, Encumbrances and Interests. Except as specifically provided in the Agreement or this
Order, the Purchaser shall not assume or become liable for any Liens, Claims, Encumbrances and
Interests relating to the Assets being sold by the Debtors.

          T. The transfer of the Assets to the Purchaser free and clear of all Liens, Claims,
Encumbrances and Interests will not result in any undue burden or prejudice to any holders of any
Liens, Claims, Encumbrances and Interests as all such Liens, Claims, Encumbrances and Interests of
any kind or nature whatsoever shall attach to the net proceeds of the sale of the Assets received
by the Debtors in the order of their priority, with the same validity, force and effect which they
now have as against the Assets and subject to any claims and defenses the Debtors or other parties
may possess with respect thereto. All persons having Liens, Claims, Encumbrances or Interests of
any kind or nature whatsoever against or in any of the Debtors or the Assets shall be forever
barred estopped and permanently enjoined from pursuing or asserting such Liens, Claims,
Encumbrances or Interests against the Purchaser, any of its assets, property, successors or
assigns, or the Assets.

          U. The Debtors may sell the Assets free and clear of all Liens, Claims, Encumbrances and
Interests of any kind or nature whatsoever because, in each case, one or more of the standards set
forth in Bankruptcy Code § 363(f) has been satisfied. Those (i) holders of Liens, Claims,
Encumbrances and Interests and (ii) non-debtor parties, who did not object, or who withdrew their
objections, to the sale of the Assets and the Sale Motion are deemed to have consented pursuant to
Bankruptcy Code § 363(f)(2). All objections to the Sale Motion have been resolved. Those holders of
Liens, Claims, Encumbrances and Interests who did object fall within one or more of the other
subsections of Bankruptcy Code § 363(f) and are adequately protected by having their Liens, Claims,
Encumbrances and Interests, if any, attach to the proceeds of the

7

 

sale of the Assets ultimately attributable to the property against or in which they claim or may
claim any Claims, Encumbrances and Interests.

          V. Not selling the Assets free and clear of all Liens, Claims, Interests and Encumbrances
would adversely impact the Debtors’ estates, and the sale of Assets other than one free and clear
of all Liens, Claims, Interests and Encumbrances would be of substantially less value to the
Debtors’ estates.

          W. The Debtors and the Purchaser have, to the extent necessary, satisfied the requirements of
Bankruptcy Code § 365, including Bankruptcy Code § § 365(b)(1)(A), (B) and 365(f), in connection
with the sale and the assumption and assignment of the Assumed
Section 365 Contracts. The Purchaser has demonstrated adequate assurance of future performance with respect to the Assumed Section 365
Contracts pursuant to Bankruptcy Code § 365(b)(1)(C). The assumption and assignment of the Assumed
Section 365 Contracts pursuant to the terms of this Order is integral to the Agreement and is in
the best interests of the Debtors, their estates, their creditors and other parties in interest,
and represents the exercise of sound and prudent business judgment by the Debtors.

          X. The Assumed Section 365 Contracts are assignable notwithstanding any provisions contained
therein to the contrary. Through the provisions of the Agreement, the Debtors have provided for
the cures and/or other payments or actions required to assume and assign the Assumed Section 365
Contracts to the Purchaser. The Purchaser has provided adequate assurance of its future
performance under the Assumed Section 365 Contracts and the proposed assumption and assignment of
the Assumed Section 365 Contracts.

          Y. The Purchaser will be acting in good faith, pursuant to Bankruptcy Code § 363(m), in
closing the transactions contemplated by the Agreement at any time on or after the entry of this
Order and cause has been shown as to why this Order should not be subject to the stay provided by
Bankruptcy Rules 6004(g) and 6006(d).

          Z. The transactions contemplated under the Agreement do not amount to a consolidation, merger
or de facto merger of the Purchaser and the Debtors and/or the Debtors’

8

 

estates, there is not substantial continuity between the Purchaser and the Debtors, there is no
continuity of enterprise between the Debtors and the Purchaser, the Purchaser is not a mere
continuation of the Debtors or their estates, there is no common identity of incorporators,
directors or stockholders between the Debtors and Purchaser, Purchaser is not holding itself out
to the public as a continuation of the Debtors and the Purchaser does not constitute a successor
to the Debtors or their estates.

          AA. The sale of the Assets outside of a plan of reorganization pursuant to the Agreement
neither impermissibly restructures the rights of the Debtors’ creditors nor impermissibly dictates
the terms of a liquidating plan of reorganization for the Debtors. The sale does not constitute a
sub rosa chapter 11 plan.

          BB. The total consideration provided by the Purchaser for the Assets is the highest and best
offer received by the Debtors, and the Purchase Price constitutes (a) reasonably equivalent value
under the Bankruptcy Code and the Uniform Fraudulent Transfer Act, (b) fair consideration under
the Uniform Fraudulent Conveyance Act and (c) reasonably equivalent value, fair consideration and
fair value under any other applicable laws of the United States, any state, territory or
possession, or the District of Columbia, for the Assets.

          CC. Time is of the essence in consummating the sale. In order to maximize the value of the
Assets, it is essential that the sale of the Assets occur within the time constraints set forth in
the Agreement. Accordingly, there is cause to lift the stays contemplated by Bankruptcy Rules 6004
and 6006.

          DD. The Purchaser shall have no obligations with respect to any liabilities of the Debtors
other than the Assumed Liabilities and its obligations under the Agreement.

          EE. For purposes of section 363(b)(1) of the Bankruptcy Code, the Debtors have not, in
connection with offering a product or service, disclosed to any individual a policy prohibiting
the transfer of “personally identifiable information” (as defined in section 101(41A) of the
Bankruptcy Code) about individuals to persons that are not affiliated with the Debtors.

9

 

NOW, THEREFORE, BASED UPON ALL OF THE FOREGOING, IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:

          1. The relief requested in the Sale Motion is granted in its entirety, subject to the terms
and conditions contained herein.

          2. Except with respect to objections filed by NDC Health Corporation d/b/a McKesson Provider
Technologies (“McKesson”), Oracle USA, Inc.
(“Oracle”), Schwartz Communications, Inc.
(“Schwartz”), Argent Systems, Inc. (“Argent”), MedAvante, Inc. (“MedAvante”), and Enclarity, Inc.
(“Enclarity”; collectively with the others, the “Objecting Parties”), all objections, responses,
and requests for continuance concerning the Sale Motion are resolved in accordance with the terms
of this Order and as set forth in the record of the Sale Hearing. To the extent any such
objection, response or request for continuance was not otherwise withdrawn, waived, or settled,
it, and all reservations of rights contained therein, is
overruled and denied.

          3. With respect to the Objecting Parties,

     (a) Oracle — (i) the objection filed by Oracle has been resolved subject to the
parties’ compliance with this Order, (ii) Oracle consents to the assumption and assignment
of Contract #1746057 (CSI#’s 14369118, 13480404, 13501503), Contract #1461017 (CSI# 3381180)
and Contract #2163947 (CSI# 15394018), and the licenses to which such contracts relate,
subject to Purchaser’s entry into the Standard Oracle Assignment Agreement, and (iii) Oracle
shall receive a cure payment in the amount of $154,258.64;

     (b) Argent — (i) the objection filed by Argent has been resolved, (ii) Argent
consents to the assumption and assignment of its contract, and (iii) Argent shall receive a
cure payment in the amount of $33,117.14;

10

 

     (c) McKesson — (i) the objection filed by McKesson has been resolved, (ii) McKesson
consents to the assumption and assignment of the subject Services Agreement (the “McKesson
Agreement”) to the Purchaser; (iii) no cure amounts are due and owing to McKesson on account of
such assumption and assignment, provided, however, notwithstanding the assumption
and assignment of the McKesson Agreement and the finding that no cure amounts are due and owing to
McKesson, McKesson retains all of its rights of offset and recoupment and the Debtors retain their
rights with respect thereto and any net amounts that may be due the Debtors and the estates, as
provided for and as contemplated by the McKesson Agreement, and (iv) with respect to the Back-Up
Bid (defined below), McKesson shall have until 4:00 pm (ET) on September 17, 2008 to file a further
objection regarding the proposed assumption and assignment of the McKesson Agreement to the Back-Up
Bidder (defined below);

     (d) Schwartz — the objection filed by Schwartz is overruled as moot as neither the
Purchaser nor the Back-Up Bidder propose to acquire the subject contract;

     (e) Enclarity — (i) the objection filed by Enclarity is overruled as moot as to the
Purchaser and (ii) with respect to the Back-Up Bid, Enclarity shall have until 4:00 pm (ET) on
September 15, 2008 to file a further objection regarding the proposed assumption and assignment of
its contract to the Back-Up Bidder; and

     (f) MedAvante — (1) the objection filed by MedAvante has been resolved, (2) MedAvante
and ProxyMed acknowledge and agree that the resolution and settlement is not an acknowledgement by
either party of any ownership rights in the name or mark “MedAvant”; (3) immediately upon the
following, the Debtors shall pay MedAvante the sum of $1 million without setoff of any kind: (A)
receipt of $1 million from the Debtors’

11

 

applicable insurance carriers, (B) notification by MedAvante of the dismissal with prejudice
of its action pending in the United States District Court for the District of New Jersey
(the “New Jersey Action”); and (C) receipt by the insurance carriers of any and all releases
necessary to effectuate the aforementioned payment; (4) within ten (10) days of entry of
this Order, the parties agree to finalize and execute a mutual release of all claims between
them, whether or not now known, including but not limited to, an immediate dismissal of the
New Jersey Action; (5) upon the sale of the Assets to the Purchaser, the Debtors agree to
cease from using the “Medavant” name/mark in any form; (6) in exchange for the $1 million
payment by the Debtors to MedAvante, MedAvante further agrees that any purchaser of the
Assets will be entitled to use the mark “Medavant,” and derivatives, including “Mymedavant”
in its business in the current form(s) as used by the Debtors for a period of six months
from consummation of the sale from ProxyMed to such purchaser, provided that such use does
not involve any use in connection with the clinical trials business; (7) at the conclusion
of the six months period of permitted use, any purchaser of the Assets will cease using
“MedAvant” in any form and within two (2) days following the end of the six month period,
the Purchaser will convey to MedAvante all domain names, url’s etc which use the “MedAvant”
name/mark in any form (including those set forth on the schedules accompanying the sale);
and (8) for purposes of clarity, the Purchaser is a beneficiary and shall be able to enforce
the provisions hereof.

          4. Notice of the Sale Hearing was fair and equitable under the circumstances
and complied in all respects with 11 U.S.C. § 102(1) and Bankruptcy Rules 2002, 6004 and
6006.

          5. The sale of the Assets, the terms and conditions of the Agreement
(including all schedules and exhibits affixed thereto), the bid by the Purchaser and the

12

 

transactions contemplated thereby be, and hereby are, authorized and approved in all respects,
including, without limitation, the following amendments (i) the Purchase Price shall be increased
to $24,350,000 and (ii) the Closing Date shall be no later than September 22, 2008.

          6. The sale of the Assets and the consideration provided by the Purchaser under the Agreement
is fair and reasonable and shall be deemed for all purposes to constitute a transfer for reasonably
equivalent value and fair consideration under the Bankruptcy Code and any other applicable law.

          7. The Purchaser is hereby granted and is entitled to all of the protections provided to a
good faith Purchaser under Bankruptcy Code § 363(m), including with respect to the transfer of the
Assumed Section 365 Contracts as part of the sale of the Assets pursuant to Bankruptcy Code § 365
and this Order.

          8. Subject to the terms of the Agreement, the Debtors be, and hereby are, authorized, to
assume, perform under, consummate and implement the terms of the Agreement together with any and
all additional instruments and documents that may be reasonably necessary or desirable to
implement and effectuate the terms of the Agreement, this Order and sale of the Assets
contemplated thereby including, without limitation, deeds, assignments, stock powers and other
instruments of transfer, and to take all further actions as may reasonably be requested by the
Purchaser for the purpose of assigning, transferring, granting, conveying and conferring to the
Purchaser, or reducing to possession any or all of the Assets or Assumed Liabilities, as may be
necessary or appropriate to the performance of the Debtors’ obligations as contemplated by the
Agreement, without any further corporate action or orders of this Court. The Purchaser shall have
no obligation to proceed with the Closing of the Agreement until all conditions precedent to its
obligations to do so have been met, satisfied or waived.

          9. The Debtors and each other person or entity having duties or responsibilities under the
Agreement, any agreements related thereto or this Order, and their respective directors, officers,
employees, members, agents, representatives, and attorneys, are authorized and empowered and
directed, subject to the terms and conditions contained in the

13

 

Agreement, to carry out all of the provisions of the Agreement and any related agreements; to
issue, execute, deliver, file, and record, as appropriate, the documents evidencing and
consummating the Agreement, and any related agreements; to take any and all actions contemplated by
the Agreement, any related agreements or this Order; and to issue, execute, deliver, file, and
record, as appropriate, such other contracts, instruments, releases, indentures, mortgages, deeds,
bills of sale, assignments, leases, or other agreements or documents and to perform such other acts
and execute and deliver such other documents, as are consistent with, and reasonably necessary or
appropriate to implement, effectuate, and consummate, the Agreement, any related agreements and
this Order and the transactions contemplated thereby and hereby, all without further application
to, or order of, the Court or further action by their respective directors, officers, employees,
members, agents, representatives, and attorneys, and with like effect as if such actions had been
taken by unanimous action of the respective directors, officers, employees, members, agents,
representatives, and attorneys of such entities. The secretary or any assistant secretary of the
Debtors shall be, and hereby is, authorized and directed to certify or attest to any of the
foregoing actions (but no such certification or attestation shall be required to make any such
action valid, binding, and enforceable). The Debtors are further authorized, empowered and directed
to cause to be filed with the secretary of state of any state or other applicable officials of any
applicable governmental units any and all certificates, agreements, or amendments necessary or
appropriate to effectuate the transactions contemplated by the Agreement, any related agreements
and this Order, including amended and restated certificates or articles of incorporation and
by-laws or certificates or articles of amendment, and all such other actions, filings, or
recordings as may be required under appropriate provisions of the applicable laws of all applicable
governmental units or as any of the officers of the Debtors may determine are necessary or
appropriate. The execution of any such document or the taking of any such action shall be, and
hereby is, deemed conclusive evidence of the authority of such person to so act.

14

 

          10. Effective as of the Closing, (a) the sale of the Assets by the Debtors to the Purchaser
shall constitute a legal, valid and effective transfer of the Assets notwithstanding any
requirement for approval or consent by any person and shall vest Purchaser with all right, title
and interest of the Debtors in and to the Assets, free and clear of all Claims, Liens, Interests
and Encumbrances of any kind, pursuant to Bankruptcy Code § 363(f), and (b) the assumption of any
Assumed Liabilities by the Purchaser shall constitute a legal, valid and effective delegation of
any Assumed Liabilities to the Purchaser and shall divest the Debtors of all liability with respect
to any Assumed Liabilities.

          11. The sale of the Assets is not subject to avoidance pursuant to Bankruptcy Code § 363(n).

          12. Except to the extent specifically provided in the Agreement, upon the closing, the
Debtors shall be, and hereby are, authorized, empowered and directed, pursuant to Bankruptcy Code
§ § 105, 363(b), to sell the Assets, including those within the Assignment and Assumption
Agreement, to the Purchaser. The sale of the Assets shall vest Purchaser with all right, title and
interest of the Debtors to the Assets free and clear of any and all Claims, Liens, Interests and
Encumbrances and other liabilities and claims, whether secured or unsecured, choate or inchoate,
filed or unified, scheduled or unscheduled, noticed or unnoticed, recorded or unrecorded,
contingent or non-contingent, liquidated or unliquidated, matured or unmatured, disputed or
undisputed, or known or unknown, whether arising prior to or subsequent to the Petition Date,
whether imposed by agreement, understanding, law, equity or otherwise, with all such Claims,
Liens, Interests and Encumbrances to attach only to the proceeds of the sale with the same
priority, validity, force, and effect, if any, as they now have in or against the Assets, subject
to all claims and defenses the Debtors may possess with respect thereto. The Debtors are hereby
authorized and directed to distribute the proceeds of the sale in accordance with paragraph 13 of
the DIP Order to Laurus in the full amount of its outstanding indebtedness and in exchange for the
release of Laurus’ liens. Following the Closing Date, no holder of any Claims, Liens, Interests
and Encumbrances in the Assets shall interfere with the Purchaser’s use

15

 

and enjoyment of the Assets based on or related to such Claims, Liens, Interests and Encumbrances,
or any actions that the Debtors may take in their chapter 11 cases and no person shall take any
action to prevent, interfere with or otherwise enjoin consummation of the transactions
contemplated in or by the Agreement or this Order.

          13. The provisions of this Order authorizing the sale of the Assets free and
clear of Liens, Claims, Encumbrances and Interests, other than Assumed Liabilities, shall be
self-executing, and neither the Debtors nor the Purchaser shall be required to execute or file
releases,
termination statements, assignments, consents, or other instruments in order to effectuate,
consummate and implement the provisions of this Order. However, subject to the terms of the
Agreement the Debtors and the Purchaser, and each of their respective officers, employees and
agents are hereby authorized and empowered to take all actions and execute and deliver any and
all documents and instruments that either the Debtors or the Purchaser deem reasonably
necessary or appropriate to implement and effectuate the terms of the Agreement and this Sale
Order. Moreover, effective as of the Closing, the Purchaser, its successors and assigns, shall
be designated and appointed the Debtors’ true and lawful attorney and attorneys with respect to
the
Assets, with full power of substitution, in the Debtors’ name and stead, on behalf and for the
benefit of the Purchaser, its successors and assigns, to demand and receive any and all of the
Assets and to give receipts and releases for and in respect of the Assets, or any part
thereof, and
from time to time to institute and prosecute the Debtors’ name, for the benefit of the
Purchaser,
its successors and assigns, any and all proceedings at law, in equity or otherwise, which the
Purchaser, its successors and assigns, may deem proper for the collection or reduction to
possession of any of the Assets, and to do all acts and things with respect to the Assets
which the
Purchaser, its successors and assigns, shall deem reasonably desirable. The foregoing powers
are
coupled with an interest and are and shall be irrevocable by the Debtors.

          14. Upon the Closing Date, the Debtors’ creditors are authorized and directed
to execute such documents and take all other actions as may be necessary to release any
Encumbrances of any kind against the Assets, as such Encumbrances may have been recorded or

16

 

may otherwise exist. If any person or entity that has filed financing statements or other
documents or agreements evidencing any Liens, Claims, Encumbrances or Interests in or against the
Assets shall not have delivered to the Debtors prior to the Closing after request therefor, in
proper form for filing and executed by the appropriate parties, termination statements,
instruments of satisfaction, or releases of all such Liens, Claims, Encumbrances or Interests that
the person or entity has with respect to the Assets, the Debtors are hereby authorized and
directed to execute and file such statements, and empowered to perform under, all instruments,
releases and other documents on behalf of the person or entity with respect to such Assets prior
to the Closing, and the Purchaser is authorized to file such documents after Closing.

          15. To the greatest extent available under applicable law, the Purchaser shall be authorized,
as of the Closing Date, to operate under any license, permit, registration and governmental
authorization or approval of the Debtors with respect to the Assets, and all such licenses,
permits, registrations and governmental authorizations and approvals are deemed to have been, and
hereby are, directed to be transferred to the Purchaser as of the
Closing Date.

          16. All of the Debtors’ interests in the Assets to be acquired by the Purchaser under the
Agreement shall be, as of the Closing Date and upon the occurrence of the Closing, transferred to
and vested in the Purchaser. Upon the occurrence of the Closing, this Order shall be considered
and constitute for any and all purposes a full and complete general assignment, conveyance and
transfer of the Assets acquired by the Purchaser under the Agreement and/or a bill of sale or
assignment transferring good and marketable, indefeasible title and interest in the Assets to the
Purchaser.

          17. To the extent permitted by applicable law, except as expressly provided in the Agreement,
the Purchaser is not assuming nor shall it or any affiliate of Purchaser be in any way liable or
responsible, as a successor or otherwise, for any liabilities, debts, or obligations of the Debtors
in any way whatsoever relating to or arising from the Debtors’ ownership or use of the Assets prior
to the consummation of the transactions contemplated by the Agreement, or any liabilities
calculable by reference to the Debtors or their operations or the Assets, or relating to

17

 

continuing or other conditions existing on or prior to consummation of the transactions
contemplated by the Agreement, which liabilities, debts, and obligations are hereby extinguished
insofar as they may give rise to liability, successor or otherwise, against Purchaser or any
affiliate of the Purchaser.

          18. Except as otherwise provided in the Agreement, upon the Closing Date, each of the
Debtors’ creditors is authorized and directed to execute such documents and take all other actions
as may be necessary to release their respective Interests or Claims against the Assets, if any, as
may have been recorded or may otherwise exist.

          19. Except as otherwise expressly provided in the Agreement, all persons or entities
presently on or after the Closing Date in possession of some or all of the Assets are directed to
surrender possession of the Assets to the Purchaser on the Closing Date, or at such time
thereafter as the Purchaser may request.

          20. The Assignment and Assumption Agreement is valid and binding, in full force and effect,
and enforceable in accordance with its terms.

          21. Subject to the terms of the Agreement, any assumption and assignment agreements/interests
to be entered into in connection therewith, and the occurrence of the Closing Date, the assumption
by the Debtors of the Assumed Section 365 Contracts and the sale and assignment of such agreements
to the Purchaser, as provided for or contemplated by the Agreement, be, and hereby is, authorized
and approved pursuant to Bankruptcy Code §§ 363 and 365.

          22. The Assumed Section 365 Contracts shall be deemed valid and binding and in full force and
effect and assumed by the Debtors and sold and assigned to the Purchaser at the Closing, pursuant
to Bankruptcy Code § § 363 and 365, subject only to the assumption of payment and payment of all
prepetition Cure Amounts required to be paid to assume and assign the Assumed Section 365 Contracts
to the Purchaser.

          23. Upon the Closing, in accordance with Bankruptcy Code § § 363 and 365, the Purchaser shall
be fully and irrevocably vested in all right, title and interest of each Assumed

18

 

Section 365 Contract. The Debtors shall reasonably cooperate with, and take all actions
reasonably requested by, the Purchaser to effectuate the foregoing.

          24. Pursuant to Bankruptcy Code § § 365(b)(1)(A) and (B), and except as otherwise provided in
this Order, parties to any Assumed Section 365 Contracts shall promptly receive payment of the
prepetition Cure Amounts, if any, set forth in the notice served by the Debtors on each of the
parties to the Assumed Section 365 Contracts, except to the extent that a Pre-Petition Cure Amount
was amended on the record of the Sale Hearing, following the assumption and assignment thereof. The
prepetition Cure Amounts are hereby fixed at the amounts set forth in the notice served by the
Debtors, or the amounts set forth on the record of the Sale Hearing, as the case may be, and the
non-debtor parties to the Assumed Section 365 Contracts are forever bound by such prepetition Cure
Amounts.

          25. All defaults or other obligations under the Assumed Section 365 Contracts arising prior
to the Closing (without giving effect to any acceleration clauses or any default provisions of the
kind specified in Bankruptcy Code § 365(b)(2)) shall be deemed cured by payment of the prepetition
Cure Amounts.

          26. Any provision in any Assumed Section 365 Contract that purports to declare a breach,
default or payment right as a result of an assignment or a change of control in respect of the
Debtors is unenforceable, and all Assumed Section 365 Contracts shall remain in full force and
effect, subject only to payment of the appropriate prepetition Cure Amount, if any. No sections or
provisions of any Assumed Section 365 Contract that purports to provide for additional payments,
penalties, charges, or other financial accommodations in favor of the non-debtor third party to
the Assumed Section 365 Contracts shall have any force and effect with respect to the sale
transaction and assignments authorized by this Order, and such provisions constitute unenforceable
anti-assignment provisions under Bankruptcy Code § 365(f) and/or are otherwise unenforceable under
Bankruptcy Code § 365(e) and no assignment of any Assumed Section 365 Contract pursuant to the
terms of the Agreement shall in any respect constitute a default under any Assumed Section 365
Contract. The non-Debtor party to each Assumed

19

 

Section 365 Contract shall be deemed to have consented to such assignment under Bankruptcy Code §
365(c)(1)(B), and the Purchaser shall enjoy all of the rights and benefits under each such Assumed
Section 365 Contract as of the applicable date of assumption without the necessity of obtaining
such non-Debtor party’s written consent to the assumption or
assignment thereof.

          27. Pursuant to Sections 105(a), 363 and 365 of the Bankruptcy Code, all parties to the
Assumed Section 365 Contracts are forever barred and enjoined from raising or asserting against
Purchaser any assignment fee, default, breach or claim or pecuniary loss, or condition to
assignment, arising under or related to the Assumed Section 365 Contract existing as of the
Closing or arising by reason of the closing, except for any liabilities first arising after the
Closing and being assumed by Purchaser under the Agreement.

          28. The Purchaser has satisfied all requirements under Bankruptcy Code §§ 365(b)(1) and
365(b)(2) to provide adequate assurance of future performance under the Assumed Section 365
Contracts.

          29. The Debtors and their estates shall be relieved of any liability for any breach of any of
the Assumed Section 365 Contracts occurring from and after Closing, pursuant to and in accordance
with Bankruptcy Code § 365(k).

          30. Each and every federal, state, and local governmental agency or department is hereby
directed to accept any and all documents and instruments necessary and appropriate to consummate
the transactions contemplated by the Agreement and this Order.

          31. The Purchaser has not assumed or is otherwise not obligated for any of the Debtors’
liabilities other than the Assumed Liabilities as set forth in the Agreement, and the Purchaser
has not purchased any of the Excluded Assets. Consequently, all persons, Governmental Units (as
defined in Bankruptcy Code § § 101(27) and 101(41)) and all holders of Claims, Liens, Interests or
Encumbrances based upon or arising out of liabilities retained by the Debtors are hereby enjoined
from taking any action against the Purchaser or the Assets to recover any Claims, Liens, Interests
or Encumbrances or on account of any liabilities of the Debtors other than Assumed Liabilities
pursuant to the Agreement. All persons holding or

20

 

asserting any Interest in the Excluded Assets are hereby enjoined from asserting or prosecuting
such Claims, Liens, Interests or Encumbrances or cause of action against the Purchaser or the
Assets for any liability associated with the Excluded Assets.

          32. The Purchaser is not a “successor” to the Debtors or their estates by reason of any theory
of law or equity, and the Purchaser shall not assume, nor be deemed to assume, or in any way be
responsible for any liability or obligation of any of the Debtors and/or their estates including,
but not limited to, any bulk sales law, successor liability or similar liability except as
otherwise expressly provided in the Agreement. Except to the extent the Purchaser assumes the
Assumed Liabilities pursuant to the Agreement, neither the purchase of the Assets by the Purchaser
or its affiliates, nor the fact that the Purchaser or its affiliates are using any of the Assets
previously operated by the Debtors, will cause the Purchaser or any of its affiliates to be deemed
a successor in any respect to the Debtors’ businesses within the meaning of any foreign, federal,
state or local revenue, pension, ERISA, tax, labor, employment, environmental, or other law, rule
or regulation (including without limitation filing requirements under any such laws, rules or
regulations), or under any products liability law or doctrine with respect to the Debtors’
liability under such law, rule or regulation or doctrine, or under any product warranty liability
law or doctrine with respect to the Debtors’ liability under such law, rule or regulation or
doctrine. Purchaser and its affiliates shall have no liability or obligation under the WARN Act 929
U.S.C. §§ 210 et seq.) or the Comprehensive Environmental Response Compensation and Liability Act,
or any foreign, federal, state or local labor, employment, or environmental law by virtue of the
Purchaser’s purchase of the Assets or assumption of the Assumed Liabilities.

          33. Pursuant to Bankruptcy Code §§ 105 and 363, all persons and entities, including, but not
limited to, the Debtors, all debt security holders, equity security holders, the Debtors’
employees or former employees, governmental, tax and regulatory authorities, lenders, parties to
or beneficiaries under any benefit plan, trade and other creditors asserting or holding a Lien,
Claim, Encumbrance or Interest of any kind or nature whatsoever against, in or with respect to any
of the Debtors or the Assets (whether legal or equitable, secured or unsecured,

21

 

matured or unmatured, contingent or non-contingent, senior or subordinated), arising under or out
of, in connection with, or in any way relating to the Debtors, the Assets, the operation of the
Debtors’ businesses prior to the Closing Date or the transfer of the Assets to the Purchaser,
shall be forever barred, estopped, and permanently enjoined from asserting, prosecuting or
otherwise pursuing such Lien, Claim, Encumbrance or Interest against the Purchaser or any
affiliate, successor or assign thereof and each of their respective current and former members,
officers, directors, managed funds, investment advisors, attorneys, employees, partners,
affiliates and representatives (each of the foregoing in its individual capacity), or the Assets.

          34. Nothing in this Order or the Agreement releases, nullifies, precludes, or enjoins the
enforcement of any liability to a federal governmental unit of the United States under police and
regulatory statutes or regulations against any entity as the operator of property after the date of
entry of this Order; provided, however, that the Purchaser and its successors, subsidiaries,
affiliates, agents and assigns shall have no liability whatsoever to any governmental units or
entity or third-party, including any liability for investigation, remediation, monitoring or
natural resource damages, (i) arising out of or relating to the generation, transport, or arranging
for transport, recycling, handling, treatment, storage, disposal or release of wastes, substances
or materials to or at any third-party location prior to the Closing Date or (ii) for any fines or
penalties for any days, prior to the Closing Date, of a violation of or non-compliance with
environmental, health or safety laws by the Debtors, their predecessors, subsidiaries, affiliates
or agents or with respect to the Assets purchased pursuant to the Agreement. Nothing in this Order
is, or shall be deemed or construed to be, an admission of liability by the Debtors under either of
the immediately foregoing subclauses (i) and (ii) of this paragraph.

          35. Subject to the terms of the Agreement, the Agreement and any related agreements may be
waived, modified, amended, or supplemented by agreement of the Debtors and the Purchaser, without
further action or order of the Court; provided, however, that any such waiver, modification,
amendment, or supplement is not material and substantially conforms to, and effectuates, the
Agreement and any related agreements.

22

 

          36. The failure specifically to include any particular provisions of the Agreement or any
related agreements in this Order shall not diminish or impair the effectiveness of such provision,
it being the intent of the Court, the Debtors and the Purchaser that the Agreement and any related
agreements are authorized and approved in their entirety with such amendments thereto as may be
made by the parties in accordance with this Order prior to Closing.

          37. No bulk sale law or any similar law of any state or other jurisdiction shall apply in any
way to the sale and the transactions contemplated by the Agreement.

          38. To the extent any provisions of this Order conflict with the terms and conditions of the
Agreement, this Order shall govern and control.

          39. Nothing in this Order shall alter or amend the Agreement and the obligations of the
Debtors and Purchaser thereunder.

          40. This Order and Agreement shall be binding upon and govern the acts of all Persons and
entities, including without limitation, the Debtors and the Purchaser, their respective successors
and permitted assigns, including, without limitation, any Chapter 11 trustee hereinafter appointed
for the Debtors’ estates or any trustee appointed in a Chapter 7 case if this case is converted
from Chapter 11, all creditors of any Debtor (whether known or unknown), filing agents, filing
officers, title agents, recording agencies, secretaries of state, and all other persons and
entities who may be required by operation of law, the duties of their office or contract, to
accept, file, register, or otherwise record or release any documents or instruments or who may be
required to report or insure any title in or to the Assets.

          41. The provisions of this Order are non-severable and mutually dependent.

          42. Nothing in any order of this Court or contained in any plan of reorganization or
liquidation confirmed in the Chapter 11 Cases, or in any subsequent or converted cases of the
Debtors under chapter 7 or chapter 11 of the Bankruptcy Code, shall conflict with or derogate from
the provisions of the Agreement or the terms of this Order.

23

 

          43. Notwithstanding Bankruptcy Rules 6004, 6006 and 7062, this Order shall be effective and
enforceable immediately upon entry and its provisions shall be self-executing. In the absence of
any person or entity obtaining a stay pending appeal, the Debtors and the Purchaser are free to
close under the Agreement at any time, subject to the terms of the Agreement. In the absence of any
person or entity obtaining a stay pending appeal, if the Debtors and the Purchaser close under the
Agreement, the Purchaser shall be deemed to be acting in “good faith” and shall be entitled to the
protections of Bankruptcy Code § 363(m) as to all aspects of the transactions under and pursuant to
the Agreement if this Order or any authorization contained herein is reversed or modified on
appeal.

          44. Upon notice to Maple Acquisition Company, LLC (the “Back-Up Bidder”) that its Back-Up Bid (as
set forth in the Agreement annexed hereto as Exhibit 2) (the “Back-Up Bid”) the parties shall use
their best efforts to schedule a closing as soon as possible, subject to payment of the $1
million to Medavant as set forth in paragraph 3(f) above, which payment shall be made at or
before closing of the Sale to the Back-Up Bidder.

          45. This Court shall retain exclusive jurisdiction to enforce the terms and provisions of this
Order, the Bidding Procedures Order, the Agreement in all respects and to decide any disputes
concerning this Order, the Agreement, or the rights and duties of the parties hereunder or
thereunder or any issues relating to the Agreement and this Order including, but not limited to,
the interpretation of the terms, conditions and provisions hereof and thereof, the status, nature
and extent of the Assets and any Assumed Section 365 Contracts and all issues and disputes arising
in connection with the relief authorized herein, inclusive of those concerning the transfer of the
assets free and clear of all Liens, Claims, Interests and Encumbrances. To the extent there are any
inconsistencies between the terms of this Order and the Agreement, the terms of this Order shall
control.

	Dated: 	 	September 9, 2008 
Wilmington, Delaware

/s/ Brendan L. Shannon

 

24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]