Document:

Promissory Note delivered to UMB Bank, n.a.

 EXHIBIT 10.28(a) 
  
 UMB BANK 
  
 MEMBER FDIC 
  
 PROMISSORY NOTE 
  

															
	 Principal  

	 	 Loan Date

	 	 Maturity

	 	 Loan No.

	 	 Call / Coll

	 	 Account

	 	 Officer

	 	 Initials

	 $50,000,000.00
	 	10-01-2005	 	 	 	0001	 	4A0/0001unsecu	 	0005795	 	TAD02	 	 

  
 References in the shaded area are for
Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations. 
  

							
	Borrower:	 	CASEY’S GENERAL STORES, INC.	  	Lender:	  	UMB Bank, n.a.
	 	 	ONE CONVENIENCE BLVD.	  	 	  	COMMERCIAL LOAN
	 	 	ANKENY, IA 50021	  	 	  	DEPARTMENT
	 	 	 	  	 	  	1010 GRAND BOULEVARD
	 	 	 	  	 	  	KANSAS CITY, MO 64106
	 	 	 	  	 	  	(816) 860-7000

  

	Principal	Amount: $50,000,000.00         Initial Rate: 4.500%         Date of Note: October 1, 2005

  
 PROMISE TO PAY. CASEY’S GENERAL STORES, INC.
(“Borrower”) promises to pay to UMB BANK, n.a. (“Lender”), or order, in lawful money of the United States of America, on demand, the principal amount of Fifty Million & 00/100 Dollars ($50,000,000.00) or so much as may
be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. 
  
 PAYMENT. Borrower will pay this loan in full immediately upon Lender’s demand.
Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning November 1, 2005, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed
or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. The annual interest rate for this Note is computed on a 365/360
basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at
Lender’s address shown above or at such other place as Lender may designate in writing. 
  
 VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the FED FUNDS RATE (the “Index”). The Index is not
necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the 
  

 – 1 – 

 term of this loan. Lender may designate a substitute index after notice to Borrower. Lender will tell Borrower the
current Index rate upon Borrower’s request. The interest rate change will not occur more often than each DAY. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 3.750% per annum. The
interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 0.750 percentage points over the Index, resulting in an initial rate of 4.500% per annum. NOTICE: Under no circumstances will the interest rate on
this Note be more than the maximum rate allowed by applicable law. 
  
 PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to
make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends
such a payment, Lender may accept it without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check
or other payment instrument that indicates that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered
to: UMB Bank, n.a., Payment Processing #1010701, P.O. Box #412918, Kansas City, MO 64141-6226. 
  
 LATE CHARGE. If a regularly scheduled interest payment is more than 30 days late, Borrower will be charged 10.000% of the regularly scheduled payment or $50.00, whichever is less. If Lender demands payment of
this loan, and Borrower does not pay the loan in full within 30 days after Lender’s demand. Borrower also will be charged either 10.000% of the sum of the unpaid principal plus accrued unpaid interest or $50.00, whichever is less. 

 
 INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity,
the total sum due under this Note will bear interest from the date of acceleration or maturity at the variable interest rate on this Note. The interest rate will not exceed the maximum rate permitted by applicable law. 
  
 DEFAULT. Each of the following shall constitute an
event of default (“Event of Default”) under this Note: 
  
 Payment Default. Borrower fails to make any payment when due under this Note: 
  
 Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term,
obligation, covenant or condition contained in any other agreement between Lender and Borrower. 
  
 False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under this Note or
the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. 
  

 – 2 – 

 Insolvency. The dissolution or termination of Borrower’s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws
by or against Borrower. 
  
 Creditor or Forfeiture
Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan.
This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim
which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 
  
 Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of
the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. 
  
 Change In Ownership. Any change in ownership of twenty-five percent
(25%) or more of the common stock of Borrower. 
  
 Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. 
  
 Insecurity. Lender in good faith believes itself insecure.

  
 LENDER’S RIGHTS. Upon default. Lender may declare the entire
unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. 
  
 ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This
includes, subject to any limits under applicable law. Lender’s attorneys’ fees and Lender’s legal expenses whether or not there is a lawsuit, including attorneys’ fees and expenses for bankruptcy proceedings (including efforts to
modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law. Borrower also will pay any court costs, in addition to all other sums provided by law. 
  
 GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to
the extent not preempted by federal law, the laws of the State of Missouri without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Missouri. 
  
 CHOICE OF VENUE. If there is a lawsuit. Borrower agrees upon Lender’s request to
submit to the jurisdiction of the courts of JACKSON County, State of Missouri. 
  

 – 3 – 

 DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower’s
loan and the check or preauthorized charge with which Borrower pays is later dishonored. 
  
 RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking, savings, or some other account). This includes all
accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts, and, at Lender’s option, to administratively freeze all such accounts to allow Lender to protect Lender’s
charge and setoff rights provided in this paragraph. 
  
 COLLATERAL. This loan is unsecured. 
  
 LINE OF CREDIT.
This Note evidences a revolving line of credit. Advances under this Note, as well as directions for payment from Borrower’s accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not,
require that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower’s accounts with
Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender’s internal records, including daily computer print-outs. Lender will have no obligation to advance funds under this
Note if: (A) Borrower or any guarantor is in default under the terms of this Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection with the signing of this Note; (B) Borrower or
any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor’s guarantee of this Note or any other loan with Lender; (D) Borrower has applied
funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith believes itself insecure. 
  
 ADDITIONAL TERMS. Each and every advance made under this Note shall be at Lender’s sole discretion. Lender having made no commitment to make any such
advances. 
  
 Borrower shall not a) voluntarily transfer any assets into trust or,
b) if already owned in trust, shall not voluntarily transfer title to such trust assets to any other person or entity, without giving Lender at least 30 days prior written notice thereof. 
  
 SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives,
successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. 
  
 GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender’s right to declare payment of this Note on its demand. Lender
may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and
notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such
parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the collateral;

  

 – 4 – 

 and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also,
agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. 
  
 ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND US (LENDER) FROM
MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

  
 JURY WAIVER. Lender and Borrower hereby waive the right to any jury
trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. 
  
 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. 
  
 BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
PROMISSORY NOTE. 
  
 BORROWER: 
  

			
	CASEY’S GENERAL STORES, INC.
		
	By:	 	 /s/ William J. Walljasper

	 	 	Chief Financial Officer
	 	 	Authorized Signer for
	 	 	CASEY’S GENERAL STORES, INC.

  

 – 5 –Subscription, Merger and Exchange Agreement

 Exhibit 10.1 
  

	
	 [Execution Version]

	
	SUBSCRIPTION, MERGER AND EXCHANGE AGREEMENT
	
	Dated as of September 29, 2005,
	
	Among
	
	AMERIPATH HOLDINGS, INC.,
	
	AMERIPATH GROUP HOLDINGS, INC.,
	
	AQUA ACQUISITION CORP.,
	
	THE STOCKHOLDERS OF AMERIPATH HOLDINGS, INC.
	SET FORTH ON THE SIGNATURE PAGES HEREOF,
	
	And
	
	THE STOCKHOLDERS OF SPECIALTY LABORATORIES, INC.
	SET FORTH ON THE SIGNATURE PAGES HEREOF
	 
	 
	  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page

	 	 	 ARTICLE I
	 	THE SUBSCRIPTION, MERGER AND EXCHANGE	  	2
				
	 	 	 SECTION 1.01
	 	 The Subscription, Merger and Exchange
	  	2
				
	 	 	 SECTION 1.02
	 	 Closing
	  	4
				
	 	 	 SECTION 1.03
	 	 Effective Time
	  	4
				
	 	 	 SECTION 1.04
	 	 Effects
	  	4
				
	 	 	 SECTION 1.05
	 	 Certificate of Incorporation and Bylaws
	  	4
				
	 	 	 SECTION 1.06
	 	 Directors and Officers
	  	5
				
	 	 	 SECTION 1.07
	 	 Adjustment to Purchase Price
	  	5
				
	 	 	 ARTICLE II
	 	 EFFECT ON THE CAPITAL STOCK OF THE CONSTITUENT
 CORPORATIONS; EXCHANGE OF CERTIFICATES
	  	6
				
	 	 	 SECTION 2.01
	 	 Effect of Merger on Capital Stock
	  	6
				
	 	 	 ARTICLE III
	 	REPRESENTATIONS AND WARRANTIES OF AQUA	  	6
				
	 	 	 SECTION 3.01
	 	 Organization, Standing and Power
	  	7
				
	 	 	 SECTION 3.02
	 	 Aqua Subsidiaries; Equity Interests
	  	7
				
	 	 	 SECTION 3.03
	 	 Capital Structure
	  	7
				
	 	 	 SECTION 3.04
	 	 Authority; Execution and Delivery, Enforceability
	  	8
				
	 	 	 SECTION 3.05
	 	 No Conflicts; Consents
	  	8
				
	 	 	 SECTION 3.06
	 	 SEC Documents; Undisclosed Liabilities
	  	9
				
	 	 	 SECTION 3.07
	 	 Absence of Certain Changes or Events
	  	10
				
	 	 	 SECTION 3.08
	 	 Taxes
	  	10
				
	 	 	 SECTION 3.09
	 	 Absence of Changes in Benefit Plans
	  	12
				
	 	 	 SECTION 3.10
	 	 ERISA Compliance
	  	12
				
	 	 	 SECTION 3.11
	 	 Litigation
	  	13
				
	 	 	 SECTION 3.12
	 	 Compliance with Applicable Laws
	  	14
				
	 	 	 SECTION 3.13
	 	 Material Contracts
	  	15
				
	 	 	 SECTION 3.14
	 	 Intellectual Property
	  	17
				
	 	 	 SECTION 3.15
	 	 Permits
	  	17
				
	 	 	 SECTION 3.16
	 	 Environmental Matters
	  	17
				
	 	 	 SECTION 3.17
	 	 Real Property
	  	18
				
	 	 	 SECTION 3.18
	 	 Insurance
	  	18

  

 -i- 

							
	 	 	 SECTION 3.19
	 	 Labor Matters
	  	19
				
	 	 	 SECTION 3.20
	 	 Affiliated Transactions
	  	19
				
	 	 	 SECTION 3.21
	 	 Brokers
	  	20
				
	 	 	 ARTICLE IV
	 	 REPRESENTATIONS AND WARRANTIES WITH RESPECT TO
 HOLDINGS AND MERGER SUB
	  	20
				
	 	 	 SECTION 4.01
	 	 Organization, Standing and Power
	  	20
				
	 	 	 SECTION 4.02
	 	 Holdings
	  	20
				
	 	 	 SECTION 4.03
	 	 Merger Sub
	  	20
				
	 	 	 SECTION 4.04
	 	 Authority; Execution and Delivery, Enforceability
	  	20
				
	 	 	 SECTION 4.05
	 	 No Conflicts
	  	21
				
	 	 	 SECTION 4.06
	 	 Brokers
	  	21
				
	 	 	 ARTICLE V
	 	 REPRESENTATIONS AND WARRANTIES OF AQUA
 STOCKHOLDERS
	  	21
				
	 	 	 SECTION 5.01
	 	 Organization; Authority; Execution and Delivery,
 Enforceability
	  	21
				
	 	 	 SECTION 5.02
	 	 No Conflicts
	  	21
				
	 	 	 SECTION 5.03
	 	 Aqua Common Stock
	  	22
				
	 	 	 SECTION 5.04
	 	 Brokers
	  	22
				
	 	 	 ARTICLE VI
	 	 REPRESENTATIONS AND WARRANTIES OF FOUNDER
 PARTIES
	  	22
				
	 	 	 SECTION 6.01
	 	 Organization; Authority; Execution and Delivery,
 Enforceability
	  	22
				
	 	 	 SECTION 6.02
	 	 No Conflicts
	  	22
				
	 	 	 SECTION 6.03
	 	 Silver Common Stock
	  	23
				
	 	 	 SECTION 6.04
	 	 Brokers
	  	23
				
	 	 	 ARTICLE VII
	 	COVENANTS RELATING TO CONDUCT OF BUSINESS	  	23
				
	 	 	 SECTION 7.01
	 	 Conduct of Business
	  	23
				
	 	 	 ARTICLE VIII
	 	ADDITIONAL AGREEMENTS	  	24
				
	 	 	 SECTION 8.01
	 	 Access to Information; Confidentiality
	  	24
				
	 	 	 SECTION 8.02
	 	 Best Efforts; Notification
	  	25
				
	 	 	 SECTION 8.03
	 	 Fees and Expenses
	  	25
				
	 	 	 SECTION 8.04
	 	 Public Announcements
	  	25
				
	 	 	 SECTION 8.05
	 	 Transfer Taxes
	  	25
				
	 	 	 ARTICLE IX
	 	CONDITIONS PRECEDENT	  	26

  

 -ii- 

							
	 	 	 SECTION 9.01
	 	 Conditions to Each Party’s Obligation To Effect The
 Transactions
	  	26
				
	 	 	 SECTION 9.02
	 	 Conditions to Obligations of Aqua and Holdings
	  	26
				
	 	 	 SECTION 9.03
	 	 Conditions to Obligations of Founder Parties
	  	26
				
	 	 	 ARTICLE X
	 	TERMINATION, AMENDMENT AND WAIVER	  	27
				
	 	 	 SECTION 10.01
	 	 Termination
	  	27
				
	 	 	 SECTION 10.02
	 	 Effect of Termination
	  	28
				
	 	 	 SECTION 10.03
	 	 Amendment; Extension; Waiver
	  	28
				
	 	 	 ARTICLE XI
	 	GENERAL PROVISIONS	  	29
				
	 	 	 SECTION 11.01
	 	 Nonsurvival of Representations and Warranties
	  	29
				
	 	 	 SECTION 11.02
	 	 Notices
	  	29
				
	 	 	 SECTION 11.03
	 	 Definitions
	  	30
				
	 	 	 SECTION 11.04
	 	 Interpretation
	  	31
				
	 	 	 SECTION 11.05
	 	 Severability
	  	31
				
	 	 	 SECTION 11.06
	 	 Counterparts
	  	31
				
	 	 	 SECTION 11.07
	 	 Entire Agreement; Third-Party Beneficiaries
	  	31
				
	 	 	 SECTION 11.08
	 	 Governing Law
	  	32
				
	 	 	 SECTION 11.09
	 	 Assignment
	  	32
				
	 	 	 SECTION 11.10
	 	 Enforcement; Jurisdiction; WAIVER OF JURY TRIAL
	  	32
				
	 	 	 Exhibit A
	 	Amended and Restated Charter	  	A-1
	 	 	 Exhibit B
	 	Form of Joinder	  	B-1
	 	 	 Exhibit C
	 	Founder Agreement	  	C-1
	 	 	 Exhibit D
	 	Holdings Stockholders’ Agreement	  	D-1
	 	 	 Exhibit E
	 	Registration Rights Agreement	  	E-1
	 	 	 Exhibit F
	 	Certificate of Incorporation of the Surviving Corporation	  	F-1
	 	 	 	 	 	  	 

  

 -iii- 

			
	 	  	 SUBSCRIPTION, MERGER AND EXCHANGE AGREEMENT (this

	 	  	“Agreement”), dated as of September 29, 2005, among AMERIPATH HOLDINGS, INC., a
	 	  	Delaware corporation (“Aqua”), AMERIPATH GROUP HOLDINGS, INC., a Delaware
	 	  	corporation and a wholly owned subsidiary of Aqua (“Holdings”), AQUA ACQUISITION
	 	  	CORP., a Delaware corporation and a wholly owned subsidiary of Holdings (“Merger Sub”), the
	 	  	stockholders of Aqua set forth on Schedule 1.01(a) hereto (collectively, the “Aqua
	 	  	Stockholders”), and the stockholders of Specialty Laboratories, Inc., a California corporation
	 	  	(“Silver”) set forth on Schedule 1.01(b) hereto (collectively, the “Founder Parties”).
		
	 	  	 WHEREAS, Aqua has organized Holdings, and Holdings has organized Merger

	 	  	Sub, for the purpose of effecting the transactions contemplated hereby;
		
	 	  	 WHEREAS, Holdings shall issue 55,121,279 shares of the common stock, par

	 	  	value $0.01 per share, of Holdings (“Holdings Common Stock”) and 55,121,279 shares of Series
	 	  	A participating preferred stock, par value $0.001 per share, of Holdings (“Holdings Preferred
	 	  	Stock”) to Aqua Stockholders in exchange for an aggregate $45,900,000, and 47,471,279 shares
	 	  	of the common stock, par value $ 0.01, of Aqua (“Aqua Common Stock”), subject to adjustment
	 	  	in accordance with Sections 1.01(a) and 1.07 hereof and otherwise on the terms and subject to
	 	  	the conditions set forth in this Agreement;
		
	 	  	 WHEREAS, Holdings shall issue 19,930,208 shares of Holdings Common Stock

	 	  	and 19,930,208 shares of Holdings Preferred Stock to Founder Parties in exchange for 9,025,000
	 	  	shares of the common stock, no par value, of Silver (“Silver Common Stock”), subject to
	 	  	adjustment in accordance with Sections 1.01(b) and 1.07 hereof and otherwise on the terms and
	 	  	subject to the conditions set forth in this Agreement;
		
	 	  	 WHEREAS, the parties intend, by executing this Agreement, that the foregoing

	 	  	exchanges of Aqua Common Stock and Silver Common Stock for Holdings Common Stock and
	 	  	Holdings Preferred Stock qualify as a tax-free exchange under Section 351 of the Internal
	 	  	Revenue Code of 1986, as amended (the “Code”);
		
	 	  	 WHEREAS, the respective Boards of Directors of Merger Sub and Aqua have

	 	  	approved and declared advisable, and the Board of Directors of Holdings has approved, the
	 	  	merger of Merger Sub with and into Aqua on the terms and subject to the conditions set forth in
	 	  	this Agreement, and the stockholders of Merger Sub and Aqua have adopted this Agreement;
		
	 	  	 WHEREAS, simultaneously with the execution of this Agreement, Aqua,

	 	  	AmeriPath, Inc., a Delaware corporation (“Opco”), Silver and Silver Acquisition Corp., a
	 	  	California corporation and a wholly owned subsidiary of Opco (“Silver Merger Sub”), have
	 	  	entered into an Agreement and Plan of Merger (the “Silver Merger Agreement”), pursuant to
	 	  	which Silver Merger Sub shall be merged with and into Silver (the “Silver Merger”) and as a
	 	  	result, Opco will acquire all of the outstanding stock of Silver immediately after the
	 	  	consummation of the transactions contemplated by this Agreement;
		
	 	  	 WHEREAS, in connection with the transactions contemplated by this Agreement,

	 	  	the Certificate of Incorporation of Holdings shall be amended and restated in the form of Exhibit
	 	  	A hereto (the “Restated Holdings Charter”); and

  

 -1- 

			
	 	  	 WHEREAS, the parties hereto desire to make certain representations, warranties,

	 	  	covenants and agreements in connection with the Transactions (as defined in Section 1.01) and
	 	  	also to prescribe various conditions to the Transactions.
		
	 	  	 NOW, THEREFORE, in consideration of the foregoing and the representations,

	 	  	warranties, covenants and agreements herein contained, the parties hereto, intending to be legally
	 	  	bound, hereby agree as follows:
		
	 	  	                                       
                         ARTICLE I
	 	  	 
	 	  	                                       
         The Subscription, Merger and Exchange
		
	 	  	 SECTION 1.01 The Subscription, Merger and Exchange. On the terms and

	 	  	subject to the conditions set forth in this Agreement, and in accordance with the Delaware
	 	  	General Corporation Law (the “DGCL”), the following transactions shall take place at the
	 	  	Closing (as defined in Section 1.02) (the transactions contemplated by this Section 1.01 are
	 	  	referred to in this Agreement collectively as the “Transactions”):
		
	 	  	 (a) Each Aqua Stockholder shall (i) subscribe and pay for and Holdings shall

	 	  	issue to such Aqua Stockholder the number of fully paid and nonassessable shares of Holdings
	 	  	Common Stock and Holdings Preferred Stock set forth opposite the name of such Aqua
	 	  	Stockholder on Schedule 1.01(a) of this Agreement under the headings “Holdings Common
	 	  	Shares From Cash” and “Holdings Preferred Shares From Cash,” respectively, at a purchase
	 	  	price of $1.20 (the “Holdings Common Stock Price”) per share of Holdings Common Stock in
	 	  	cash and $4.80 (the “Holdings Preferred Stock Price”) per share of Holdings Preferred Stock in
	 	  	cash (collectively, the “Holdings Subscription”), or (ii) sell and transfer the number of shares of
	 	  	Aqua Common Stock set forth opposite such Aqua Stockholder’s name on Schedule 1.01(a) of
	 	  	this Agreement under the heading “Contributed Shares” to Holdings, and, in exchange therefor,
	 	  	Holdings shall issue to such Aqua Stockholder the number of fully paid and nonassessable shares
	 	  	of Holdings Common Stock and Holdings Preferred Stock set forth opposite the name of such
	 	  	Aqua Stockholder on Schedule 1.01(a) of this Agreement under the headings “Holdings
	 	  	Common Shares From Contribution” and “Holdings Preferred Shares From Contribution,”
	 	  	respectively (the “Aqua Stockholder Exchange”). In addition, prior to the Effective Time (as
	 	  	defined below), it is contemplated that, with the consent of Aqua, certain additional stockholders
	 	  	of Aqua (“Additional Aqua Stockholders”) shall, by execution and delivery of a joinder in the
	 	  	form attached as Exhibit B hereto (a “Joinder”), agree to become parties to this Agreement and
	 	  	be bound by the terms and conditions hereof as if an Aqua Stockholder hereunder. The
	 	  	Additional Aqua Stockholders shall be entitled to contribute shares of Aqua Common Stock to
	 	  	Holdings, and in exchange for each such share, Holdings shall issue to such stockholders fully
	 	  	paid and nonassessable shares of Holdings Common Stock and fully paid and nonassessable
	 	  	shares of Holdings Preferred Stock, in each case, in the same proportion and at the same price as
	 	  	the shares of Holdings Common Stock and Holdings Preferred Stock to be issued in the Aqua
	 	  	Stockholder Exchange. Upon execution and delivery of a Joinder by any Additional Aqua
	 	  	Stockholder, Schedule 1.01(a) shall be amended, without any further action by any of the parties
	 	  	hereto, to reflect the contribution to be made by such Additional Aqua Stockholder.

  

 -2- 

			
	 	  	 (b) Each Founder Party shall sell and transfer the number of shares of Silver

	 	  	Common Stock set forth opposite the name of such Founder Party on Schedule 1.01(b) of this
	 	  	Agreement under the heading “Contributed Shares” to Holdings, and, in exchange therefor,
	 	  	Holdings shall issue to such Founder Party the number of fully paid and nonassessable shares of
	 	  	Holdings Common Stock and Holdings Preferred Stock set forth opposite the name of such
	 	  	Founder Party on Schedule 1.01(b) of this Agreement under the headings “Holdings Common
	 	  	Shares From Contribution” and “Holdings Preferred Shares From Contribution,” respectively
	 	  	(collectively, the “Founder Exchange”). Notwithstanding the foregoing, if, at the Effective
	 	  	Time, the Founder Parties do not hold an aggregate 20% or more of the outstanding shares of
	 	  	Holdings Common Stock and an aggregate 20% or more of the outstanding shares of Holdings
	 	  	Preferred Stock, then the shares of Silver Common Stock to be contributed by the Specialty
	 	  	Family Limited Partnership pursuant to the Founder Exchange shall be increased such that at the
	 	  	Effective Time, the Founder Parties hold an aggregate 20% of the outstanding shares of Holdings
	 	  	Common Stock and an aggregate 20% of the outstanding shares of Holdings Preferred Stock. In
	 	  	any such event Schedule 1.01(b) shall be amended, without any further action by any of the
	 	  	parties hereto, to reflect the additional contribution to be made by the Specialty Family Limited
	 	  	Partnership.
		
	 	  	 (c) (i) Holdings and James B. Peter, M.D., Ph.D. (“Founder”) shall execute

	 	  	and deliver the agreement relating to services to be provided by Founder in the form attached as
	 	  	Exhibit C (the “Founder Agreement”), and (ii) Holdings, Aqua Stockholders and Founder Parties
	 	  	shall execute and deliver the Holdings Stockholders’ Agreement in the form attached as Exhibit
	 	  	D (the “Holdings Stockholders’ Agreement”) and the Registration Rights Agreement in the form
	 	  	attached as Exhibit E (the “Registration Rights Agreement”). The Founder Agreement, the
	 	  	Holdings Stockholders’ Agreement and the Registration Rights Agreement are, collectively, the
	 	  	“Holdings Agreements.”
		
	 	  	 (d) Merger Sub shall be merged with and into Aqua at the Effective Time (as

	 	  	defined in Section 1.03) (the “Merger”). At the Effective Time, the separate corporate existence
	 	  	of Merger Sub shall cease and Aqua shall continue as the surviving corporation (the “Surviving
	 	  	Corporation”).
		
	 	  	 (e) At the Effective Time, Holdings and Aqua shall take all action necessary

	 	  	such that each outstanding option to purchase shares of Aqua Common Stock (an “Aqua
	 	  	Option”), whether or not then exercisable, shall be cancelled and shall entitle the holder thereof
	 	  	to receive, as soon as reasonably practicable after the surrender thereof, only an amount in cash
	 	  	equal to the product of (x) the total number of shares of Aqua Common Stock subject to the
	 	  	Aqua Option times (y) the excess, if any, of the value of the Merger Consideration over the
	 	  	exercise price per share of Aqua Common stock under such Aqua Option, less applicable Taxes
	 	  	required to be withheld with respect to such payment. The Aqua Option Plan (as defined in
	 	  	Section 3.03) shall be terminated immediately after the Effective Time, and the provisions in any
	 	  	agreement, arrangement or other benefit plan providing for the issuance, transfer or grant of any
	 	  	capital stock of Aqua or any interest in respect of any capital stock of Aqua shall be deleted
	 	  	immediately after the Effective Time, and Aqua shall take such actions to ensure that following
	 	  	the Effective Time no holder of an Aqua Option or any participant in or a party to the Aqua
	 	  	Option Plan or any similar plan or other agreement, arrangement or benefit plan shall have any

  

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	 	  	right thereunder to acquire any capital stock or any interest in respect of any capital stock of the
	 	  	Surviving Corporation.
		
	 	  	 SECTION 1.02 Closing. The closing (the “Closing”) of the Transactions shall

	 	  	take place at the offices of Ropes & Gray LLP, 45 Rockefeller Plaza, New York, New York,
	 	  	10111 as promptly as practicable after all the conditions set forth in Article IX have been
	 	  	satisfied (or, to the extent permitted by Law (as defined in Section 3.05), waived by the parties
	 	  	entitled to the benefits thereof), in each case other than those conditions that by their nature are
	 	  	to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions (and in
	 	  	any event, not more than two business days following the satisfaction or waiver of all such
	 	  	conditions), or at such other place, time and date as shall be agreed in writing between Aqua and
	 	  	Founder. The date on which the Closing occurs is referred to in this Agreement as the “Closing
	 	  	Date”. Notwithstanding anything to the contrary set forth herein, (i) the Holdings Subscription,
	 	  	the Aqua Stockholder Exchange and the Founder Exchange shall be deemed to occur
	 	  	simultaneously with each other, in each case, immediately prior to the Effective Time, and (ii)
	 	  	the Effective Time shall be deemed to occur immediately prior to the effective time of the Silver
	 	  	Merger. All amounts of cash contributed to Holdings by the applicable Aqua Stockholders in
	 	  	exchange for shares of Holdings Common Stock and Holdings Preferred Stock hereunder shall
	 	  	be delivered to Holdings at the Closing by wire transfer of immediately available funds to an
	 	  	account designated by Holdings to such Aqua Stockholders. All certificates (or affidavits of loss
	 	  	reasonably acceptable to Holdings), each accompanied by a stock power duly executed by the
	 	  	record holders thereof, representing the shares of Aqua Common Stock or Silver Common Stock
	 	  	contributed to Holdings in accordance with Section 1.01 shall be delivered to Holdings at the
	 	  	Closing. At the Closing, Aqua shall surrender to Holdings the certificate representing all of the
	 	  	issued and outstanding shares of Holdings Common Stock prior to the Effective Time and such
	 	  	shares shall be cancelled at Closing in consideration for $6.00 per share payable by Holdings.
		
	 	  	 SECTION 1.03 Effective Time. Prior to the Closing, Aqua shall prepare, and on

	 	  	the Closing Date Aqua shall cause to be filed with the Secretary of State of the State of Delaware
	 	  	a certificate of merger or other appropriate documents (in any such case, the “Certificate of
	 	  	Merger”) executed in accordance with Section 251 of the DGCL and shall make all other filings
	 	  	or recordings required under the DGCL. The Merger shall become effective at such time as the
	 	  	Certificate of Merger is duly filed with the Secretary of State of the State of Delaware or at such
	 	  	other time as Aqua shall specify in the Certificate of Merger (the time the Merger becomes
	 	  	effective being the “Effective Time”).
		
	 	  	 SECTION 1.04 Effects. The Merger shall have the effects set forth in the DGCL,

	 	  	including Section 259 of the DGCL.
		
	 	  	 SECTION 1.05 Certificate of Incorporation and Bylaws.

		
	 	  	 (a) Certificate of Incorporation. The Certificate of Incorporation of the

	 	  	Surviving Corporation shall be amended at the Effective Time to read in the form of Exhibit F,
	 	  	and, as so amended, such Certificate of Incorporation shall be the Certificate of Incorporation of
	 	  	the Surviving Corporation until thereafter changed or amended as provided therein or by
	 	  	applicable Law.

  

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	 	  	 (b) Bylaws. The Bylaws of Aqua as in effect immediately prior to the

	 	  	Effective Time shall be the Bylaws of the Surviving Corporation until thereafter changed or
	 	  	amended as provided therein or by applicable Law.
		
	 	  	 SECTION 1.06 Directors and Officers.

		
	 	  	 (a) Directors. The directors of Aqua immediately prior to the Effective Time

	 	  	shall be the directors of the Surviving Corporation, until the earlier of their resignation or
	 	  	removal or until their respective successors are duly elected and qualified, as the case may be.
		
	 	  	 (b) Officers. The officers of Aqua immediately prior to the Effective Time

	 	  	shall be the officers of the Surviving Corporation, until the earlier of their resignation or removal
	 	  	or until their respective successors are duly elected or appointed and qualified, as the case may
	 	  	be.
		
	 	  	 SECTION 1.07 Adjustment to Purchase Price. The parties acknowledge and

	 	  	agree that the Holdings Subscription, the Aqua Stockholder Exchange and the Founder Exchange
	 	  	each assume that (i) the per share value of a share of Aqua Common Stock contributed to
	 	  	Holdings prior to the Effective Time is $6.00, (ii) the per share value of a share of Silver
	 	  	Common Stock contributed to Holdings prior to the Effective Time is $13.25, (iii) 20% of the
	 	  	value of cash and contributed securities in such Transactions will be used to subscribe for, or will
	 	  	be exchanged for, Holdings Common Stock (the “Holdings Common Allocation”), (iv) 80% of
	 	  	the value of cash and contributed securities in such Transactions will be used to subscribe for, or
	 	  	will be exchanged for, Holdings Preferred Stock (the “Holdings Preferred Allocation”), and (v)
	 	  	the per share value of the shares of Holdings Common Stock and Holdings Preferred Stock
	 	  	issued in such transactions are the Holdings Common Stock Price and the Holdings Preferred
	 	  	Stock Price, respectively. Notwithstanding the foregoing, the parties agree that it may be in the
	 	  	best interest of Holdings to adjust the Holdings Common Allocation and the Holdings Preferred
	 	  	Allocation or sell shares of Holdings Common Stock and Holdings Preferred Stock at a price per
	 	  	share other than the Holdings Common Stock Price and the Holdings Preferred Stock Price,
	 	  	respectively. Accordingly, the parties agree that Holdings shall be entitled to amend this
	 	  	agreement to adjust one or more of the Holdings Common Allocation, the Holdings Preferred
	 	  	Allocation, the Holdings Common Stock Price and Holdings Preferred Stock Price, provided that
	 	  	pursuant to any such amendment (A) the per share value of a share of Aqua Common Stock
	 	  	contributed to Holdings shall remain $6.00, (B) the per share value of a share of Silver Common
	 	  	Stock contributed to Holdings shall remain at $13.25, (C) the sum of the amended Holdings
	 	  	Common Allocation and amended Holdings Preferred Allocation equals 100%, (D) the sum of
	 	  	the amended Holdings Common Stock Price and amended Holdings Preferred Stock equals
	 	  	$6.00, and (E) any such amended Holdings Common Allocation, amended Holdings Preferred
	 	  	Allocation, amended Holdings Common Stock Price and amended Holdings Preferred Stock
	 	  	Price shall apply to each of the Holdings Subscription, the Aqua Stockholder Exchange and the
	 	  	Founder Exchange. Upon any such amendment, Schedules 1.01(a) and 1.01(b) shall be
	 	  	amended, without any further action by any of the parties hereto, to reflect the foregoing
	 	  	amendments to the Holdings Common Allocation, the Holdings Preferred Allocation, the
	 	  	Holdings Common Stock Price and the Holdings Preferred Stock Price, if any.
		
	 	  	 

  

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 ARTICLE II
	 	  	 
	 	  	                                       
                         Effect on the Capital Stock of the
	 	  	                                       
         Constituent Corporations; Exchange of Certificates
		
	 	  	 SECTION 2.01 Effect of Merger on Capital Stock. At the Effective Time, by

	 	  	virtue of the Merger and without any action on the part of the holder of any capital stock of Aqua
	 	  	or Merger Sub:
		
	 	  	 (a) Capital Stock of Merger Sub. Each issued and outstanding share of capital

	 	  	stock of Merger Sub shall be converted into and become one fully paid and nonassessable share
	 	  	of common stock, par value $0.01 per share, of the Surviving Corporation.
		
	 	  	 (b) Cancellation of Certain Owned Shares. Each share of the common stock,

	 	  	par value $0.01, of Aqua (“Aqua Common Stock”), that is held in the treasury of Aqua, or
	 	  	outstanding and held by Holdings or any direct or indirect wholly owned subsidiary of Aqua,
	 	  	shall no longer be outstanding and shall automatically be canceled and retired and shall cease to
	 	  	exist, and no Holdings Common Stock or other consideration shall be delivered or deliverable in
	 	  	exchange therefor.
		
	 	  	 (c) Conversion of Aqua Common Stock. Subject to Section 2.01(b), each

	 	  	share of Aqua Common Stock that is issued and outstanding prior to the Effective Time, other
	 	  	than Dissenting Shares (as defined in Section 2.01(d)), shall be converted into the right to receive
	 	  	$6.00 in cash (collectively, the “Merger Consideration”). As of the Effective Time, all such
	 	  	shares of Aqua Common Stock shall no longer be outstanding and shall automatically be
	 	  	canceled and retired and shall cease to exist, and each holder of a certificate representing any
	 	  	such shares of Aqua Common Stock shall cease to have any rights with respect thereto, except
	 	  	the right to receive Merger Consideration upon surrender of such certificate, without interest.
		
	 	  	 (d) Dissenting Shares. Notwithstanding anything in this Agreement to the

	 	  	contrary, shares of Aqua Common Stock that are issued and outstanding immediately prior to the
	 	  	Effective Time and that are held by a holder who was entitled to and has validly demanded
	 	  	appraisal rights in accordance with Section 262 of the DGCL (“Dissenting Shares”) shall not be
	 	  	converted into the right to receive the Merger Consideration unless and until such holder shall
	 	  	have failed to perfect or shall have effectively withdrawn or lost such holder’s appraisal rights
	 	  	under the DGCL but instead shall be converted into the right to receive payment from the
	 	  	Surviving Corporation with respect to such Dissenting Shares in accordance with the DGCL. If
	 	  	any such holder shall have failed to perfect or shall have effectively withdrawn or lost such right,
	 	  	each share of such holder shall be treated as a share of Aqua Common Stock that had been
	 	  	converted as of the Effective Time into the right to receive the Merger Consideration in
	 	  	accordance with Section 2.01(c).
		
	 	  	                                       
                                 ARTICLE III
	 	  	 
	 	  	                                       
                 Representations and Warranties of Aqua
		
	 	  	 Aqua represents and warrants to the Founder Parties that, except as set forth in the

  

 -6- 

			
	 	  	corresponding section of the letter, dated as of the date of this Agreement, from Aqua to the
	 	  	Founder Parties (the “Aqua Disclosure Letter”), or in any other section of Aqua Disclosure
	 	  	Letter if the relevance of such disclosure or matter is reasonably apparent (except that no matter
	 	  	shall be deemed to be disclosed for purposes of Section 3.05 or Section 3.20 of Aqua Disclosure
	 	  	Letter if it is not set forth or cross-referenced in such section of Aqua Disclosure Letter):
		
	 	  	 SECTION 3.01 Organization, Standing and Power. Each of Aqua and each of its

	 	  	subsidiaries (the “Aqua Subsidiaries”) is a corporation, partnership or limited liability company
	 	  	duly organized, validly existing and in good standing under the laws of the jurisdiction in which
	 	  	it is organized and has full corporate, partnership or limited liability company power and
	 	  	authority to conduct its businesses as presently conducted. Aqua and each Aqua Subsidiary is
	 	  	duly qualified to do business as a foreign corporation, partnership or limited liability company
	 	  	and is in good standing in each jurisdiction where the nature of its business or the ownership or
	 	  	leasing of its properties make such qualification necessary, except where the failure to so qualify
	 	  	has not had and could not reasonably be expected to have an Aqua Material Adverse Effect (as
	 	  	defined in Section 11.03). Aqua has made available to the Founder Parties true and complete
	 	  	copies of the articles of incorporation of Aqua, as amended to the date of this Agreement (as so
	 	  	amended, the “Aqua Charter”), the Bylaws of Aqua, as amended to the date of this Agreement
	 	  	(as so amended, the “Aqua Bylaws”) and the comparable charter and organizational documents
	 	  	of each Aqua Subsidiary.
		
	 	  	 SECTION 3.02 Aqua Subsidiaries; Equity Interests. (a) Section 3.02(a) of Aqua

	 	  	Disclosure Letter lists each Aqua Subsidiary, its jurisdiction of organization and each holder of
	 	  	outstanding capital stock or other ownership interests of such subsidiary. All the outstanding
	 	  	shares of capital stock or other ownership interests of each Aqua Subsidiary have been validly
	 	  	issued and are fully paid and nonassessable and, except as set forth in Aqua Disclosure Letter,
	 	  	are owned by Aqua, by another Aqua Subsidiary or by Aqua and another Aqua Subsidiary, free
	 	  	and clear of all pledges, liens, hypothecations, claims, charges, mortgages, encumbrances and
	 	  	security interests of any kind or nature whatsoever (collectively, “Liens”). No shares of capital
	 	  	stock of any Aqua Subsidiary have been issued in violation of any purchase option, call option,
	 	  	right of first refusal, preemptive right, subscription right or any similar right. No shares of
	 	  	capital stock of any Aqua Subsidiary are reserved for issuance.
		
	 	  	 (b) Except for its interests in the Aqua Subsidiaries, Aqua does not as of the

	 	  	date of this Agreement own, directly or indirectly, (i) any capital stock, membership interest,
	 	  	partnership interest or other equity interest in any person or securities convertible into or
	 	  	exchangeable for any equity interest of any person or (ii) any participating interest in the
	 	  	revenues or profits of any person, and neither Aqua nor any Aqua Subsidiary is subject to any
	 	  	obligation to make any investment (in the form of loan, capital contribution or otherwise) in any
	 	  	person.
		
	 	  	 SECTION 3.03 Capital Structure. The authorized capital stock of Aqua consists

	 	  	of 100,000,000 shares of Aqua Common Stock. At the close of business on September 28, 2005
	 	  	(the “Capitalization Date”), (i) 57,904,067 shares of Aqua Common Stock were issued and
	 	  	outstanding, (ii) no shares of Aqua Common Stock were held by Aqua in its treasury and
	 	  	(iii) 8,191,202 shares of Aqua Common Stock were subject to outstanding Aqua Options,
	 	  	1,108,798 additional shares of Aqua Common Stock were reserved for issuance pursuant to

  

 -7- 

			
	 	  	Aqua’s 2003 Stock Option and Restricted Stock Plan (the “Aqua Option Plan”). Since the
	 	  	Capitalization Date, no other shares of capital stock or other voting securities of Aqua have been
	 	  	issued or reserved for issuance, other than the issuance of Aqua Common Stock upon the
	 	  	exercise of Aqua Options outstanding on the Capitalization Date and in accordance with their
	 	  	present terms and other than as permitted pursuant to Section 7.01(a). All outstanding shares of
	 	  	Aqua Common Stock are, and all such shares that may be issued prior to the Effective Time will
	 	  	be when issued, duly authorized, validly issued, fully paid and nonassessable and not subject to
	 	  	or issued in violation of any purchase option, call option, right of first refusal, preemptive right,
	 	  	subscription right or any similar right under any provision of the DGCL, the Aqua Charter, the
	 	  	Aqua Bylaws, any Contract (as defined in Section 3.05) to which Aqua is a party or otherwise.
	 	  	There are not any bonds, debentures, notes or other indebtedness of Aqua or any Aqua
	 	  	Subsidiary having the right to vote (or convertible into, or exchangeable for, securities having the
	 	  	right to vote) on any matters on which holders of Aqua Common Stock or holders of equity
	 	  	securities of any Aqua Subsidiary may vote (“Voting Aqua Debt”). Except as set forth above
	 	  	there are not any options, warrants, rights, convertible or exchangeable securities, “phantom”
	 	  	stock rights, stock appreciation rights, restricted stock awards, dividend equivalent awards,
	 	  	stock-based performance units, commitments, Contracts (as defined in Section 3.05),
	 	  	arrangements or undertakings of any kind to which Aqua or any Aqua Subsidiary is a party
	 	  	(i) obligating Aqua or any Aqua Subsidiary to issue, deliver or sell, or cause to be issued,
	 	  	delivered or sold, additional shares of capital stock or other equity interests in, or any security
	 	  	convertible into or exercisable or exchangeable for any capital stock of or other equity interest in,
	 	  	Aqua or of any Aqua Subsidiary or any Voting Aqua Debt or (ii) obligating Aqua or any Aqua
	 	  	Subsidiary to issue, grant, extend or enter into any such option, warrant, call, right, security,
	 	  	commitment, Contract, arrangement or undertaking. There are not any outstanding contractual
	 	  	obligations of Aqua or any Aqua Subsidiary to repurchase, redeem or otherwise acquire any
	 	  	shares of capital stock of Aqua or any Aqua Subsidiary.
		
	 	  	 SECTION 3.04 Authority; Execution and Delivery, Enforceability. Aqua has all

	 	  	requisite corporate power and authority to execute and deliver this Agreement and to
	 	  	consummate the Transactions contemplated by this Agreement. The execution and delivery by
	 	  	Aqua of this Agreement and the consummation by Aqua of the Transactions contemplated by
	 	  	this Agreement have been duly authorized by all necessary corporate action on the part of Aqua.
	 	  	The Aqua Stockholders who hold a majority of the issued and outstanding shares of Aqua
	 	  	Common Stock, have duly approved this Agreement. Aqua has duly executed and delivered this
	 	  	Agreement, and this Agreement constitutes its legal, valid and binding obligation, enforceable
	 	  	against it in accordance with its terms.
		
	 	  	 SECTION 3.05 No Conflicts; Consents. (a) The execution and delivery by Aqua

	 	  	of this Agreement do not, and the consummation of the Merger and the other Transactions
	 	  	contemplated by this Agreement and compliance with the terms hereof will not, conflict with, or
	 	  	result in any violation of or default (with or without notice or lapse of time, or both) under, or
	 	  	give rise to a right of termination, cancellation, modification or acceleration of any obligation or
	 	  	to loss of a material asset (including material intellectual property asset) or benefit under, or
	 	  	result in the creation of any Lien upon any of the properties or assets of Aqua or any Aqua
	 	  	Subsidiary under, any provision of (i) the Aqua Charter, the Aqua Bylaws or the comparable
	 	  	charter or organizational documents of any Aqua Subsidiary, (ii) any contract, lease, license,
	 	  	loan, credit agreement, indenture, note, bond, mortgage, deed of trust, agreement, Aqua Permit

  

 -8- 

			
	 	  	(as defined in Section 3.15), obligation, concession, franchise or other instrument (collectively,
	 	  	“Contracts”) to which Aqua or any Aqua Subsidiary is a party or by which any of their
	 	  	respective properties or assets is bound or (iii) subject to the filings and other matters referred to
	 	  	in Section 3.05(b), any writ, judgment, order, award, consent decree, waiver, stipulation,
	 	  	subpoena, citation, notice, summons, restraining order, injunction, stay, ruling or decree
	 	  	(collectively, “Judgments”), or statute, law (including common law), ordinance, rule (including
	 	  	any New York Stock Exchange or other stock exchange rule or listing requirement) or regulation
	 	  	(collectively, “Laws”) applicable to Aqua or any Aqua Subsidiary or their respective properties
	 	  	or assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually
	 	  	or in the aggregate, have not had and could not reasonably be expected to have an Aqua Material
	 	  	Adverse Effect.
		
	 	  	 (b) No consent, approval, license, permit, order or authorization (“Consent”)

	 	  	of, or registration, declaration or filing with, or permit from, any government or any court of
	 	  	competent jurisdiction, tribunal, judicial body, arbitrator, stock exchange, administrative or
	 	  	regulatory agency, self-regulatory organization, commission or other governmental or quasi-
	 	  	governmental authority or instrumentality, in each case, whether local, state or Federal, domestic
	 	  	or foreign (a “Governmental Entity”), is required to be obtained or made by or with respect to
	 	  	Aqua or any Aqua Subsidiary in connection with the execution, delivery and performance of this
	 	  	Agreement or the consummation of the Transactions contemplated by this Agreement, other than
	 	  	(i) compliance with and filings under the Hart-Scott-Rodino Antitrust Improvements Act of
	 	  	1976, as amended (the “HSR Act”), (ii) relicensures that may be required following the Effective
	 	  	Time pursuant to applicable state or Federal Law, (iii) the filing of the Certificate of Merger
	 	  	with the Secretary of State of the State of Delaware and appropriate documents with the relevant
	 	  	authorities of the other jurisdictions in which Aqua is qualified to do business, (iv) such filings as
	 	  	may be required in connection with the taxes described in Section 8.05, and (v) such other items
	 	  	(A) required solely by reason of the participation of the Founder Parties (as opposed to any third
	 	  	party) in the Transactions or (B) that, individually or in the aggregate, have not had and could
	 	  	not reasonably be expected to have an Aqua Material Adverse Effect.
		
	 	  	 SECTION 3.06 SEC Documents; Undisclosed Liabilities. (a) Opco has filed all

	 	  	reports, schedules, forms, statements and other documents required to be filed by Opco with the
	 	  	SEC since December 31, 2002 pursuant to Sections 13(a) and 15(d) of the Securities Exchange
	 	  	Act of 1934, as amended (the “Exchange Act”) (the “Aqua SEC Documents”).
		
	 	  	 (b) As of its respective date, each Aqua SEC Document complied in all

	 	  	material respects with the requirements of the Exchange Act and the rules and regulations of the
	 	  	SEC promulgated thereunder applicable to such Aqua SEC Document, and did not contain any
	 	  	untrue statement of a material fact or omit to state a material fact required to be stated therein or
	 	  	necessary in order to make the statements therein, in light of the circumstances under which they
	 	  	were made, not misleading. Except to the extent that information contained in any Aqua SEC
	 	  	Document has been revised or superseded by a later filed Aqua SEC Document, none of the
	 	  	Aqua SEC Documents contains any untrue statement of a material fact or omits to state any
	 	  	material fact required to be stated therein or necessary in order to make the statements therein, in
	 	  	light of the circumstances under which they were made, not misleading. The consolidated
	 	  	financial statements of Aqua included in the Aqua SEC Documents comply as to form in all
	 	  	material respects with applicable accounting requirements and the published rules and

  

 -9- 

			
	 	  	regulations of the SEC with respect thereto, have been prepared in accordance with generally
	 	  	accepted accounting principles (“GAAP”) (except, in the case of unaudited statements, as
	 	  	permitted by Form 10-Q of the SEC) applied on a consistent basis during the periods involved
	 	  	(except as may be indicated in the notes thereto) and fairly present the consolidated financial
	 	  	position of Opco and its consolidated subsidiaries as of the dates thereof and the consolidated
	 	  	results of their operations and cash flows for the periods shown (subject, in the case of unaudited
	 	  	statements, to normal year-end audit adjustments).
		
	 	  	 (c) Except as set forth in the financial statements filed with the 2004 10-K or

	 	  	incurred in the ordinary course since December 31, 2004, as of the date of this Agreement
	 	  	neither Aqua nor any Aqua Subsidiary has any liabilities or obligations of any nature (whether
	 	  	accrued, absolute, contingent or otherwise) that, individually or in the aggregate, could
	 	  	reasonably be expected to have an Aqua Material Adverse Effect.
		
	 	  	 (d) None of the Aqua Subsidiaries (other than Opco) is, or has at any time

	 	  	been, subject to the reporting requirements of Sections 13(a) and 15(d) of the Exchange Act.
		
	 	  	 SECTION 3.07 Absence of Certain Changes or Events. Since December 31,

	 	  	2004, (i) Aqua and each Aqua Subsidiary has conducted its business only in the ordinary course
	 	  	and in a manner consistent with past practice (except in connection with the negotiation and
	 	  	execution and delivery of this Agreement and the Silver Merger Agreement), (ii) no event has
	 	  	occurred and no action has been taken that would have been prohibited by the terms of Section
	 	  	7.01(a) if such Section had been in effect as of and at all times since December 31, 2004, and
	 	  	(iii) there has not been any change, event, condition, circumstance or state of facts (whether or
	 	  	not covered by insurance), individually or in the aggregate, that has had or could reasonably be
	 	  	expected to have an Aqua Material Adverse Effect.
		
	 	  	 SECTION 3.08 Taxes. (a) Each of Aqua and each Aqua Subsidiary has timely

	 	  	filed, or has caused to be timely filed on its behalf, all Tax Returns required to be filed by it with
	 	  	the appropriate Governmental Entity, and all such Tax Returns are true, complete and accurate in
	 	  	all material respects. All Taxes shown to be due on such Tax Returns, or other Taxes owed,
	 	  	have been timely paid. Aqua has afforded the Founder Parties the opportunity to examine true
	 	  	and correct copies of all material Tax Returns, examination reports, ruling requests and
	 	  	statements of deficiencies, filed, assessed against or agreed to by Aqua or any Aqua Subsidiary.
		
	 	  	 (b) Except as could not reasonably be expected to have an Aqua Material

	 	  	Adverse Effect, each of Aqua and each Aqua Subsidiary has timely paid any Taxes that are due
	 	  	and payable by it. The most recent financial statements contained in the Aqua SEC Documents
	 	  	filed with the SEC prior to the date of this Agreement (the “Filed Aqua SEC Documents”) reflect
	 	  	an adequate reserve for all Taxes payable (or that may become payable) by Aqua or any Aqua
	 	  	Subsidiary (in addition to any reserve for deferred Taxes to reflect timing differences between
	 	  	book and Tax items) for all Taxable periods and portions thereof through the date of such
	 	  	financial statements. No deficiency with respect to any Taxes has been proposed, asserted or
	 	  	assessed against Aqua or any Aqua Subsidiary, and no requests for waivers of the time to assess
	 	  	any such Taxes are pending.

  

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	 	  	 (c) The Federal income Tax Returns of Aqua and each Aqua Subsidiary

	 	  	consolidated in such Tax Returns have been examined by and settled with the United States
	 	  	Internal Revenue Service, or have closed by virtue of the expiration of the relevant statute of
	 	  	limitations, for all years ending on or before December 31, 2001. All material assessments for
	 	  	Taxes due with respect to such completed and settled examinations or any concluded litigation
	 	  	have been fully paid.
		
	 	  	 (d) There are no material Liens for Taxes (other than for current Taxes not yet

	 	  	due and payable) on the assets of Aqua or any Aqua Subsidiary. Neither Aqua nor any Aqua
	 	  	Subsidiary is a party to any Contract with respect to Taxes, including (i) a “closing agreement”
	 	  	as defined under Code Section 7121 (or any corresponding or similar provision of state, local or
	 	  	foreign Law), (ii) a waiver of any statute of limitations in respect of Taxes or the agreement to an
	 	  	extension of time with respect to a material assessment of deficiency, (iii) any Tax allocation,
	 	  	indemnity or sharing agreement or (iv) a power of attorney with respect to any Tax.
		
	 	  	 (e) Each of Aqua and each Aqua Subsidiary has complied in all material

	 	  	respects with all applicable Laws relating to the withholding of Taxes and has timely withheld
	 	  	and paid to the proper Governmental Entities all amounts required to have been withheld and
	 	  	paid in connection with amounts paid or owing to any employee, independent contractor,
	 	  	creditor or stockholder.
		
	 	  	 (f) There are no audits or other administrative or court proceedings presently

	 	  	pending with regard to any Taxes for which Aqua or any Aqua Subsidiary could be liable. No
	 	  	dispute or claim concerning any Taxes for which Aqua or any Aqua Subsidiary could be liable
	 	  	has been claimed or raised by any Governmental Entity in writing to Aqua, and no claim has
	 	  	been made in writing to Aqua by any Governmental Entity in a jurisdiction where Aqua or any
	 	  	Aqua Subsidiary does not file Tax Returns that Aqua or any such Aqua Subsidiary is, or may be,
	 	  	subject to taxation by that jurisdiction.
		
	 	  	 (g) Neither Aqua nor any Aqua Subsidiary (i) has been a member of an

	 	  	affiliated group filing a consolidated federal income Tax return (other than such a group of
	 	  	which Aqua is the common parent) or (ii) will be required to pay the Taxes of any other person
	 	  	under Treasury regulation Section 1.1502-6 (or similar Law), as a transferee or successor, by
	 	  	Contract or otherwise.
		
	 	  	 (h) Within the past five years, neither Aqua nor any Aqua Subsidiary (i) has

	 	  	constituted either a “distributing corporation” or a “controlled corporation” within the meaning
	 	  	of Section 355(a)(1)(A) of the Code in a distribution qualifying (or intended to qualify) under
	 	  	Section 355 of the Code (or so much of Section 356 as related to Section 355) or (ii) been a party
	 	  	to any transaction that was reported as a reorganization within the meaning of Section 368.
		
	 	  	 (i) Neither Aqua nor any Aqua Subsidiary is a party to any Contract that,

	 	  	individually or collectively, could give rise to the payment of any amount which would not be
	 	  	deductible by reason of Section 162(m).
		
	 	  	 (j) For purposes of this Agreement:

		
	 	  	 “Taxes” includes all forms of taxation, whenever created or imposed, and whether

  

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	 	  	of the United States or elsewhere, and whether imposed by a local, municipal, governmental,
	 	  	state, foreign, Federal or other Governmental Entity, or in connection with any agreement with
	 	  	respect to Taxes, including all interest, penalties and additions imposed with respect to such
	 	  	amounts.
		
	 	  	 “Tax Return” means any Federal, state, local, provincial and foreign Tax return,

	 	  	declaration, statement, report, schedule, form or other information filed with respect to any Tax,
	 	  	including any claim for refunds of any Tax and any attachment to or any amendment or
	 	  	supplement of any of the foregoing, filed or required to be filed with any Governmental Entity in
	 	  	connection with the determination, assessment or collection of any Tax or the administration of
	 	  	any Laws relating to any Tax.
		
	 	  	 SECTION 3.09 Absence of Changes in Benefit Plans. Except as disclosed in the

	 	  	Filed Aqua SEC Documents, from the date of the most recent financial statements included in
	 	  	the Filed Aqua SEC Documents to the date of this Agreement, there has not been any adoption or
	 	  	amendment in any material respect by Aqua or any Aqua Subsidiary of any collective bargaining
	 	  	agreement or any bonus, pension, profit sharing, deferred compensation, incentive compensation,
	 	  	stock ownership, stock purchase, stock option, phantom stock, retirement, vacation, severance,
	 	  	change of control, indemnification, disability, death benefit, hospitalization, medical or other
	 	  	plan, agreement, arrangement or understanding providing benefits to any current or former
	 	  	employee, officer or director of Aqua or any Aqua Subsidiary (collectively, “Aqua Benefit
	 	  	Plans”). Except as disclosed in the Filed Aqua SEC Documents, as of the date of this Agreement
	 	  	there are not any employment, severance or termination agreements or arrangements between
	 	  	Aqua or any Aqua Subsidiary and any current or former executive officer or director of Aqua or
	 	  	any Aqua Subsidiary (collectively, the “Aqua Benefit Agreements”).
		
	 	  	 SECTION 3.10 ERISA Compliance; Excess Parachute Payments. (a) The Aqua

	 	  	Disclosure Letter contains a list of any and all Aqua Benefit Plans, including any and all
	 	  	“employee pension benefit plans” (as defined in Section 3(2) of the Employee Retirement
	 	  	Income Security Act of 1974, as amended (“ERISA”)) (“Aqua Pension Plans”), “employee
	 	  	welfare benefit plans” (as defined in Section 3(1) of ERISA) and all other fringe benefit plans or
	 	  	arrangements maintained, or contributed to, by Aqua or any Aqua Subsidiary for the benefit of
	 	  	any current or former employees, consultants, officers or directors of Aqua or any Aqua
	 	  	Subsidiary (or the dependents of the foregoing or with respect to which Aqua may have any
	 	  	material liability). Each Aqua Benefit Plan has been administered in compliance with its terms
	 	  	and applicable Law, other than instances of noncompliance that, individually and in the
	 	  	aggregate, have not had and could not reasonably be expected to have an Aqua Material Adverse
	 	  	Effect. All reports and disclosures relating to each Aqua Benefit Plan required to be filed with or
	 	  	furnished to any Governmental Entity or plan participants or beneficiaries have been filed or
	 	  	furnished in all material respects in accordance with applicable law in a timely manner. All
	 	  	contributions required to be made to each Aqua Benefit Plan pursuant to the terms of such plan
	 	  	have been timely made. Aqua has made available to the Founder Parties true, complete and
	 	  	correct copies of (i) each Aqua Benefit Plan (or, in the case of any unwritten Aqua Benefit Plan,
	 	  	a description thereof), (ii) the most recent annual report on Form 5500 filed with the Internal
	 	  	Revenue Service with respect to each Aqua Benefit Plan (if any such report was required), (iii)
	 	  	the most recent summary plan description for each Aqua Benefit Plan for which such summary

  

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	 	  	plan description is required and (iv) each true agreement or group annuity contract relating to
	 	  	any Aqua Benefit Plan.
		
	 	  	 (b) Each Aqua Pension Plan intended to be a “qualified plan” within the

	 	  	meaning of Section 401(a) of the Code has been the subject of a determination letter from the
	 	  	Internal Revenue Service to the effect that such Aqua Pension Plan is qualified and exempt from
	 	  	Federal income taxes under Sections 401(a) and 501(a), respectively, of the Code, and no such
	 	  	determination letter has been revoked nor, to the knowledge of Aqua, has revocation been
	 	  	threatened, and nothing has occurred since the date of its most recent determination letter in any
	 	  	respect that would adversely affect its qualification or materially increase its costs.
		
	 	  	 (c) No Aqua Benefit Plan is a “multiemployer plan” within the meaning of

	 	  	Section 3(37) of ERISA (a “Multiemployer Pension Plan”), and no Aqua Benefit Plan is subject
	 	  	to Title IV or Section 302 of ERISA or Section 412 or 4971 of the Code.
		
	 	  	 (d) None of Aqua, any Aqua Subsidiary, any officer of Aqua or any of the

	 	  	Aqua Subsidiaries or any of the Aqua Benefit Plans that are subject to ERISA, including Aqua
	 	  	Pension Plans, any trusts created thereunder or any trustee or administrator thereof, has engaged
	 	  	in a “prohibited transaction” (as such term is defined in Section 406 of ERISA or Section 4975
	 	  	of the Code) or any other breach of fiduciary responsibility that could subject Aqua, any Aqua
	 	  	Subsidiary or any officer of Aqua or any Aqua Subsidiary to the tax or penalty on prohibited
	 	  	transactions imposed by such Section 4975 or to any liability under Section 502(i) or 502(1) of
	 	  	ERISA, except as could not reasonably be expected to have an Aqua Material Adverse Effect.
		
	 	  	 (e) No Aqua Benefit Plan or trust has been terminated, nor has there been any

	 	  	“reportable event” (as that term is defined in Section 4043 of ERISA) with respect to any Aqua
	 	  	Benefit Plan during the last five years. Neither Aqua nor any Aqua Subsidiary has incurred a
	 	  	“complete withdrawal” or a “partial withdrawal” (as such terms are defined in Sections 4203 and
	 	  	4205, respectively, of ERISA) since the effective date of such Sections 4203 and 4205 with
	 	  	respect to any Multiemployer Pension Plan.
		
	 	  	 (f) With respect to any Aqua Benefit Plan that is an employee welfare benefit

	 	  	plan, (i) no such Aqua Benefit Plan is unfunded or funded through a “welfare benefits fund” (as
	 	  	such term is defined in Section 419(e) of the Code), and (ii) no such Aqua Benefit Plan provides
	 	  	for life, health, medical, disability or other welfare benefits to former employees or beneficiaries
	 	  	or dependents thereof, except for health continuation coverage provided at no expense to Aqua
	 	  	or any Aqua Subsidiary as required by Section 4980B of the Code or Part 6 of Title I of ERISA.
		
	 	  	 (g) There are no material actions, claims, liens or investigations existing or

	 	  	pending (other than routine claims for benefits) or, to the knowledge of Aqua, threatened with
	 	  	respect to any Aqua Benefit Plan. No Aqua Benefit Plan is under audit or investigation by any
	 	  	Governmental Entity and no such completed audit, if any, has resulted in the imposition of any
	 	  	Tax during the last 12 months.
		
	 	  	 SECTION 3.11 Litigation; Inspections and Investigations. (a) As of the date of

	 	  	this Agreement, there is no claim, suit, action, audit or proceeding pending or, to the knowledge
	 	  	of Aqua, threatened against Aqua, any Aqua Subsidiary or, to the knowledge of Aqua, any

  

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	 	  	person that Aqua or any Aqua Subsidiary has agreed to indemnify in respect thereof, nor, to the
	 	  	knowledge of Aqua, is there any investigation of Aqua (collectively, “Aqua Litigation”) that if
	 	  	adversely decided could result (x) in a liability to Aqua and the Aqua Subsidiaries in excess of
	 	  	$5,000,000 or (y) in injunctive or other equitable remedy against such parties that would
	 	  	materially affect the operation of the business of Aqua, and Aqua is not aware of any basis for
	 	  	any such claim, suit, action, audit, proceeding or investigation. As of the date of this Agreement,
	 	  	there is no Aqua Litigation that, individually or in the aggregate, has had or could reasonably be
	 	  	expected to have an Aqua Material Adverse Effect. As of the date of this Agreement, there is not
	 	  	any Judgment outstanding against Aqua or any Aqua Subsidiary or affecting any of their
	 	  	respective properties or assets or business operations. There is no Judgment (whether outstanding
	 	  	as of the date of this Agreement or first outstanding after the date of this Agreement) the effect of
	 	  	which has had or could reasonably be expected to have an Aqua Material Adverse Effect.
	 	  	Aqua and any Aqua Subsidiaries have in all material respects performed all of the obligations
	 	  	required to be performed to the date of this Agreement by any Judgment against Aqua or any
	 	  	Aqua Subsidiary, or by any Contract that settled any suit, action or proceeding against Aqua or
	 	  	any Aqua Subsidiary.
		
	 	  	 (b) None of Aqua or any Aqua Subsidiaries nor, to Aqua’s knowledge, any of

	 	  	their respective officers, directors, employees or agents (or stockholders, representatives or other
	 	  	persons acting on the express, implied or apparent authority of such entities) is currently, or has
	 	  	been within the last two years, with respect to any state or Federal criminal enforcement agency
	 	  	or with respect to Medicare, Medicaid, or any other state or Federal health care payment or
	 	  	reimbursement program: (i) the subject of any audit or, to the knowledge of Aqua, any
	 	  	investigation; or (ii) party to any Contract or Judgment that (A) requires, or could reasonably be
	 	  	expected to require, the payment of a material amount of money by Aqua or any of the Aqua
	 	  	Subsidiaries to any state or Federal agency, program, or fiscal intermediary, or (B) requires or
	 	  	prohibits any activity by Aqua or any of the Aqua Subsidiaries; and which, in the case of either
	 	  	(A) or (B) of this sentence, is either punitive in nature, or serves as a civil penalty.
		
	 	  	 SECTION 3.12 Compliance with Applicable Laws; Compliance Program. (a)

	 	  	The business of Aqua and the Aqua Subsidiaries is currently being conducted and since January
	 	  	1, 2004 has been conducted in compliance with all applicable Laws, including those relating to
	 	  	licensure, certification, and operation of clinical laboratories, individuals providing services in or
	 	  	to clinical laboratories, reimbursement for products or services provided by Aqua and the Aqua
	 	  	Subsidiaries, submission of claims to any payor, including Medicare, Medicaid or other third
	 	  	party payors, for items or services, and Environmental Laws (as defined in Section 3.16), except
	 	  	for instances of noncompliance that, individually and in the aggregate, have not had and could
	 	  	not reasonably be expected to have an Aqua Material Adverse Effect. Neither Aqua nor any
	 	  	Aqua Subsidiaries have received any written notice asserting a failure to comply with any Law,
	 	  	which failure has had or could reasonably be expected to have an Aqua Material Adverse Effect,
	 	  	and which notice has not prior to the date of this Agreement been fully and completely resolved.
	 	  	This Section 3.12 does not relate to matters with respect to Taxes, which are the subject of
	 	  	Section 3.08.
		
	 	  	 (b) Aqua and the Aqua Subsidiaries have timely filed all material filings and

	 	  	reports of every kind whatsoever required by Law or by written or oral Contract or otherwise to
	 	  	have been filed or made with respect to the provision of services by Aqua and the Aqua

  

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	 	  	Subsidiaries to third-party purchasers, including, but not limited to, Medicare and Medicaid,
	 	  	insurance carriers and other fiscal intermediaries. No validation review or program integrity
	 	  	review related to Aqua and the Aqua Subsidiaries has been conducted by any commission, board
	 	  	or agency in connection with the Medicare or Medicaid program, and no such reviews are
	 	  	scheduled, pending or, to Aqua’s knowledge, threatened against or affecting Aqua or the Aqua
	 	  	Subsidiaries or the consummation of the transactions contemplated hereby.
		
	 	  	 (c) Aqua and the Aqua Subsidiaries maintain an effective voluntary

	 	  	compliance program to promote compliance with Law that is consistent with model compliance
	 	  	guidance issued by the United States Department of Health and Human Services Office of
	 	  	Inspector General (“OIG”) and applicable laws and regulations. To the knowledge of Aqua, no
	 	  	individual employed by, contracting independently with or otherwise providing services or
	 	  	supplies in connection with the conduct of business by Aqua or any Aqua Subsidiary is excluded
	 	  	from participation in the Medicare or Medicaid programs or is listed on the excluded individuals
	 	  	list published by the OIG.
		
	 	  	 SECTION 3.13 Material Contracts. (a) Section 3.13(a) of the Aqua Disclosure

	 	  	Letter sets forth a list of the following Contracts, whether written or oral (and if oral, a complete
	 	  	and accurate summary thereof) to which Aqua or any Aqua Subsidiary is a party, in each case to
	 	  	the extent in effect on this date of this Agreement (the “Aqua Material Contracts”):
		
	 	  	 (i) Aqua Benefit Plans or Aqua Benefit Agreements;

		
	 	  	 (ii) Contracts for the provision of laboratory services to the top 25 customers

	 	  	 of Aqua, measured by revenue for the period January to June 2005;

		
	 	  	 (iii) Contracts providing for the licensing of material Intellectual Property

	 	  	 Rights (as defined in Section 3.14);

		
	 	  	 (iv) Contracts which are reasonably likely to involve aggregate payments by or

	 	  	 to Aqua or any Aqua Subsidiary of more than $2,500,000 annually or $5,000,000 over

	 	  	 the remaining term of the Contract), other than the sale of services or products in the

	 	  	 ordinary course of business;

		
	 	  	 (v) real property leases or subleases;

		
	 	  	 (vi) Contracts that (A) limit the ability of Aqua or any Aqua Subsidiary or

	 	  	 affiliate of, or successor to, Aqua, or, to the knowledge of Aqua, any executive officer of

	 	  	 Aqua, to compete in any line of business or with any person or in any geographic area or

	 	  	 during any period of time, (B) require Aqua or any Aqua Subsidiary or affiliate of, or

	 	  	 successor to, Aqua to use any supplier or third party for all or substantially all of any of

	 	  	 its material requirements or need in any respect, (C) limit or purport to limit the ability of

	 	  	 Aqua or any Aqua Subsidiary or affiliate of, or successor to, Aqua to solicit any

	 	  	 customers or clients of the other parties thereto, (D) require Aqua or any Aqua Subsidiary

	 	  	 or affiliate of, or successor to, Aqua to provide to the other parties thereto “most favored

	 	  	 nations” pricing or (E) require Aqua or any Aqua Subsidiary or affiliate of, or successor

	 	  	 to, Aqua to market or co-market any products or services of a third party (other than any

	 	  	 customer of Aqua or any Aqua Subsidiary);

  

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	 	  	 (vii) Contracts relating to (A) any indebtedness (which does not include

	 	  	 accounts payable incurred in the ordinary course of business), notes payable (including

	 	  	 notes payable in connection with acquisitions), accrued interest payable or other

	 	  	 obligations for borrowed money, whether current, short-term, or long-term, secured or

	 	  	 unsecured, of Aqua or any Aqua Subsidiary, (B) any purchase money indebtedness or

	 	  	 earn-out or similar obligation in respect of purchases of property or assets by Aqua or any

	 	  	 Aqua Subsidiary, (C) any lease obligations of Aqua or any Aqua Subsidiary under leases

	 	  	 which are capital leases in accordance with GAAP, (D) any financing of Aqua or any

	 	  	 Aqua Subsidiary effected through “special purpose entities” or synthetic leases or project

	 	  	 financing, (E) any obligations of Aqua or any Aqua Subsidiary in respect of banker’s

	 	  	 acceptances or letters of credit (other than stand-by letters of credit in support of ordinary

	 	  	 course trade payables), (F) any obligation or liability of Aqua or any Aqua Subsidiary

	 	  	 with respect to interest rate swaps, collars, caps, currency derivatives and similar hedging

	 	  	 obligations or (G) any guaranty of any of the foregoing (the liabilities and obligations

	 	  	 referred to in (A) through (G) above, “Indebtedness”);

		
	 	  	 (viii) Contracts entered into by Aqua or any of the Aqua Subsidiaries and any

	 	  	 other person providing for the acquisition by Aqua or such Aqua Subsidiary (including

	 	  	 by merger, consolidation, acquisition of stock or assets or any other business

	 	  	 combination) of any corporation, partnership, other business organization or division or

	 	  	 unit thereof or any material amount of assets of such other person, and information

	 	  	 identifying the maximum amounts, if any, that are still payable or potentially payable to

	 	  	 any other person under such Contracts pursuant to any post-closing adjustment to the

	 	  	 purchase price (including under any “earnout” or other similar provision);

		
	 	  	 (ix) stockholder agreements, registration rights agreements, voting trusts or

	 	  	 other Contracts to which Aqua is a party or by which it is bound relating to the voting of

	 	  	 any shares of the capital stock of Aqua,

		
	 	  	 (x) joint venture contracts, partnership arrangements or other agreements

	 	  	 outside the ordinary course of business involving a sharing of profits, losses, costs or

	 	  	 liabilities of any person by Aqua or any Aqua Subsidiary with any third person;

		
	 	  	 (xi) all confidentiality, non-disclosure or standstill agreements entered into by

	 	  	 Aqua or any of the Aqua Subsidiaries (other than in the ordinary course of business); and

		
	 	  	 (xii) other Contracts not covered by the foregoing, that are otherwise material

	 	  	 to Aqua and the Aqua Subsidiaries, taken as a whole.

		
	 	  	 (b) Aqua has made available to Parent or publicly filed as exhibits to the Aqua

	 	  	SEC Documents true, complete and correct copies of all written Contracts required to be listed in
	 	  	Section 3.13(a) of the Aqua Disclosure Letter, together with all amendments, waivers or other
	 	  	changes thereto, and a complete and accurate written summary of each oral Contract required to
	 	  	be listed. All Aqua Material Contracts are in full force and effect, constitute legal, valid and
	 	  	binding obligations of the respective parties thereto, and are enforceable in accordance with their
	 	  	respective terms. Aqua or the Aqua Subsidiary that is a party to any Aqua Material Contract has
	 	  	in all material respects performed all of the obligations required to be performed by it to the date

  

 -16- 

			
	 	  	of this Agreement, and there exists no default, or any event which upon the giving of notice or
	 	  	the passage of time, or both, would give rise to a default, in the performance by Aqua or such
	 	  	applicable Aqua Subsidiaries or, to the knowledge of Aqua, any other party to any Aqua Material
	 	  	Contract of their respective obligations thereunder. Neither Aqua nor any Aqua Subsidiary has
	 	  	received any written notice of the intention of any party to terminate or cancel any Aqua Material
	 	  	Contract, whether as a termination or cancellation for convenience or for default of Aqua or any
	 	  	Aqua Subsidiary thereunder.
		
	 	  	 SECTION 3.14 Intellectual Property. Aqua and the Aqua Subsidiaries own, or

	 	  	are validly licensed or otherwise have the right to use, all patents, patent rights, patented
	 	  	inventions, proprietary rights, trade secrets, trademarks, trademark rights, trade names, trade
	 	  	name rights, service marks, service mark rights, copyrights and other proprietary intellectual
	 	  	property rights and computer programs (collectively, “Intellectual Property Rights”) which are
	 	  	material to the conduct of the business of Aqua and the Aqua Subsidiaries, as conducted on the
	 	  	date of this Agreement, taken as a whole. No claims are pending or, to the knowledge of Aqua,
	 	  	threatened that Aqua or any of the Aqua Subsidiaries is infringing or has since January 1, 2002
	 	  	infringed the rights of any person with regard to any Intellectual Property Right. To the
	 	  	knowledge of Aqua, no person is infringing or since January 1, 2002 has infringed the rights of
	 	  	Aqua or any of the Aqua Subsidiaries with respect to any Intellectual Property Right. To the
	 	  	knowledge of Aqua, there is no prior art that may render any patent held by or licensed to Aqua
	 	  	or any Aqua Subsidiary invalid or any patent application held by or licensed to Aqua or any
	 	  	Aqua Subsidiary unpatentable which has not been disclosed to the Office to which the patent
	 	  	application was made. To the knowledge of Aqua, there has been no inequitable conduct with
	 	  	respect to the prosecution of any patent or patent application held by or licensed to Aqua or any
	 	  	Aqua Subsidiary.
		
	 	  	 SECTION 3.15 Aqua Permits. (a) Each of Aqua and the Aqua Subsidiaries has

	 	  	obtained any and all material licenses, franchises, permits, easements, rights, consents, orders,
	 	  	approvals, variances, exemptions, accreditations and other authorizations of or issued by any
	 	  	Governmental Entity required by Law or otherwise necessary to enable Aqua or the Aqua
	 	  	Subsidiaries to (i) conduct the business of Aqua as heretofore conducted and (ii) obtain
	 	  	reimbursement related to services provided in connection with the Medicare or Medicaid
	 	  	programs, and all contracts, programs and other arrangements with third-party payers, insurers or
	 	  	fiscal intermediaries (collectively, the “Aqua Permits”). Aqua Permits are, and after giving
	 	  	effect to the consummation of the transactions contemplated hereby, will continue to be, valid
	 	  	and in full force and effect and no violations exist in respect thereof, except for violations that,
	 	  	individually and in the aggregate, have not had and could not reasonably be expected to have an
	 	  	Aqua Material Adverse Effect.
		
	 	  	 (b) To the knowledge of Aqua, all individuals employed by, or providing

	 	  	services as individual contractors to, Aqua or any Aqua Subsidiary in connection with the
	 	  	conduct of business by Aqua or any Aqua Subsidiary have obtained and currently maintain all
	 	  	necessary Aqua Permits required to perform such services or provide such supplies to Aqua or
	 	  	the Aqua Subsidiaries.
		
	 	  	 SECTION 3.16 Environmental Matters. Except as has not had and could not

	 	  	reasonably be expected to have an Aqua Material Adverse Effect, (i) to the knowledge of Aqua,

  

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	 	  	no facts, circumstances or conditions exist with respect to any real property now or previously
	 	  	owned, leased and/or operated by Aqua or by any Aqua Subsidiary or affiliates (“Aqua Real
	 	  	Property”) that have resulted or could reasonably be expected to result in a violation of any
	 	  	Environmental Law, (ii) there has been no Release (as defined herein) of any Hazardous
	 	  	Substance (as defined herein) on, at, from or, to the knowledge of Aqua, to any Aqua Real
	 	  	Property, (iii) to Aqua’s knowledge, there has been no Release of any Hazardous Substance on,
	 	  	at, to or from any property adjacent to or in the immediate vicinity of the Aqua Real Property
	 	  	which, through soil, subsoil, bedrock, surface or ground water migration, has come or could
	 	  	reasonably be expected to come to be located on the Aqua Real Property, (iv) none of the Aqua
	 	  	Real Property has been used for the storage, treatment, generation, transportation, processing,
	 	  	handling, production or disposal of any Hazardous Substance or as a landfill or other waste
	 	  	disposal site, except in each case in this paragraph (iv) in material compliance with applicable
	 	  	Law, and (v) there are no underground storage tanks located on or beneath any of the Aqua Real
	 	  	Property. As used in this Agreement, (i) the term “Environmental Law” means any Law relating
	 	  	to the protection of the environment, health, safety and natural resources, including for the
	 	  	prevention of pollution or contamination, or the cleanup, regulation and protection of the air,
	 	  	water or soil in the indoor or outdoor environment, (ii) the term “Release” means the spill,
	 	  	emission, leaking, pumping, injecting, deposit, disposal, discharge, dispersal, leaching or
	 	  	migrating of any Hazardous Substance into the indoor or outdoor environment, in each case
	 	  	other than in material compliance with applicable Law, and (iii) the term “Hazardous
	 	  	Substances” means any pollutant, contaminant, effluent, emission, radioactive substance, toxic
	 	  	substance, hazardous waste, hazardous material, medical waste, radioactive waste, petroleum or
	 	  	petroleum derived substance or waste, asbestos (and any substance containing asbestos),
	 	  	polychlorinated biphenyls, flammable explosives, methane, chemicals known to cause cancer or
	 	  	reproductive toxicity, any material that, because of its quantity, concentration or physical,
	 	  	chemical or infectious characteristics, may cause or pose a present or potential threat to human
	 	  	health or the environment when improperly used, treated, stored, disposed of, generated,
	 	  	manufactured, transported, or otherwise handled, all other substances or related materials defined
	 	  	as hazardous or toxic in, or otherwise included within the scope of, any Environmental Law, and
	 	  	any hazardous or toxic constituent thereof.
		
	 	  	 SECTION 3.17 Real Property. Aqua does not own any real property. Aqua or

	 	  	one of the Aqua Subsidiaries has a good and valid leasehold interest in each parcel of real
	 	  	property leased by Aqua or any of the Aqua Subsidiaries (the “Aqua Leased Property”). To
	 	  	Aqua’s knowledge, (i) Aqua or one of the Aqua Subsidiaries has the right to use and occupy the
	 	  	Aqua Leased Property for the full term of the lease or sublease relating thereto, and (ii) neither
	 	  	Aqua nor any of the Aqua Subsidiaries has assigned its interest under any such lease or sublease
	 	  	or sublet any part of the premises covered thereby or exercised any option or right thereunder
	 	  	except as has not had and as could not reasonably be expected to have, individually or in the
	 	  	aggregate, an Aqua Material Adverse Effect.
		
	 	  	 SECTION 3.18 Insurance. Aqua and the Aqua Subsidiaries, taken as a whole,

	 	  	are covered by valid and currently effective insurance policies issued in favor of Aqua and the
	 	  	Aqua Subsidiaries that are customary in all material respects for companies of similar size and
	 	  	financial condition in Aqua’s industry. All such policies are in full force and effect, all
	 	  	premiums due and payable thereon have been paid and Aqua and the Aqua Subsidiaries have
	 	  	complied with the provisions of such policies, except where such failure to be in full force and

  

 -18- 

			
	 	  	effect, such nonpayment or such noncompliance has not had and could not reasonably be
	 	  	expected to have, individually or in the aggregate, an Aqua Material Adverse Effect. Section
	 	  	3.18 of the Aqua Disclosure Letter contains a list of the policies issued to Aqua and the Aqua
	 	  	Subsidiaries that are in effect on the date of this Agreement. None of Aqua or any of the Aqua
	 	  	Subsidiaries has been advised of any defense to coverage or reservation of rights in connection
	 	  	with any material claim to coverage asserted or noticed by Aqua or any of the Aqua Subsidiaries
	 	  	under or in connection with any of their existing insurance policies. None of Aqua or any of the
	 	  	Aqua Subsidiaries has received any written notice from or on behalf of any insurance carrier
	 	  	issuing policies or binders relating to or covering Aqua or the Aqua Subsidiaries that Aqua
	 	  	reasonably believes will cause a cancellation or non-renewal of existing policies or binders or a
	 	  	material decrease in coverage or a material increase in deductible or self insurance retention.
		
	 	  	 SECTION 3.19 Labor Matters. None of Aqua or any of the Aqua Subsidiaries is

	 	  	a party to, or is bound by, any collective bargaining agreement, contract or other agreement or
	 	  	understanding with a labor union or labor organization. None of Aqua or any of the Aqua
	 	  	Subsidiaries is the subject of a proceeding asserting that Aqua or any of the Aqua Subsidiaries
	 	  	has committed an unfair labor practice (within the meaning of the National Labor Relations Act)
	 	  	or seeking to compel Aqua or any of the Aqua Subsidiaries to bargain with any labor
	 	  	organization as to wages and conditions of employment. There is (i) no strike or material labor
	 	  	dispute, slowdown or stoppage pending or, to the knowledge of Aqua, threatened against Aqua
	 	  	or any of the Aqua Subsidiaries and (ii) to the knowledge of Aqua, no union certification petition
	 	  	has been filed with respect to the employees of Aqua or the Aqua Subsidiaries. None of Aqua or
	 	  	any of the Aqua Subsidiaries has received written notice of the intent of any Governmental
	 	  	Entity responsible for the enforcement of labor or employment Laws to conduct an investigation
	 	  	with respect to or relating to employees of Aqua or any of the Aqua Subsidiaries and, to the
	 	  	knowledge of Aqua, no such investigation is in progress. Aqua and Aqua Subsidiaries have at
	 	  	all times complied with the provisions of the Workers Adjustment and Retraining Notification
	 	  	Act of 1988.
		
	 	  	 SECTION 3.20 Affiliate Contracts and Affiliated Transactions. No officer or

	 	  	director of Aqua or any Aqua Subsidiary (or, to Aqua’s knowledge, any family member of any
	 	  	such person who is an individual or any entity in which any such person or any such family
	 	  	member owns a material beneficial interest) or any person owning 5% or more of Aqua Common
	 	  	Stock is a party to any material Contract with or binding upon Aqua or any of the Aqua
	 	  	Subsidiaries or any of their respective properties or assets or has any material interest in any
	 	  	material property owned by Aqua or any of the Aqua Subsidiaries or has engaged in any material
	 	  	transaction with any of the foregoing within the last twelve months.

  

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	 	  	 SECTION 3.21 Brokers. No broker, investment banker, financial advisor or

	 	  	other person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or
	 	  	commission in connection with the Transactions based upon arrangements made by or on behalf
	 	  	of Aqua.
		
	 	  	                                       
                                 ARTICLE IV
	 	  	 
	 	  	                            Representations and
Warranties with respect to Holdings and
	 	  	                                       
                                 Merger Sub
		
	 	  	 Aqua, Holdings and Merger Sub, jointly and severally, represent and warrant to

	 	  	Founder Parties that:
		
	 	  	 SECTION 4.01 Organization, Standing and Power. Each of Holdings and

	 	  	Merger Sub is duly organized, validly existing and in good standing under the laws of Delaware
	 	  	and has full corporate power and authority to conduct its businesses as presently conducted.
		
	 	  	 SECTION 4.02 Holdings. (a) Since the date of its incorporation, Holdings has

	 	  	not carried on any business or conducted any operations other than the execution of this
	 	  	Agreement, the performance of its obligations hereunder and thereunder and matters ancillary
	 	  	thereto.
		
	 	  	 (b) On the date of this Agreement, the authorized capital stock of Holdings

	 	  	consists of 100 shares of Holdings Common Stock and Holdings is a wholly owned subsidiary of
	 	  	Aqua.
		
	 	  	 SECTION 4.03 Merger Sub. (a) Since the date of its incorporation, Merger Sub

	 	  	has not carried on any business or conducted any operations other than the execution of this
	 	  	Agreement, the performance of its obligations hereunder and matters ancillary thereto.
		
	 	  	 (b) The authorized capital stock of Merger Sub consists of 100 shares of

	 	  	common stock, par value $0.01 per share, all of which have been validly issued, are fully paid
	 	  	and nonassessable and are owned by Holdings free and clear of any Lien.
		
	 	  	 SECTION 4.04 Authority; Execution and Delivery, Enforceability. (a) Each of

	 	  	Holdings and Merger Sub has all requisite corporate power and authority to execute and deliver
	 	  	this Agreement and to consummate the Transactions. The execution and delivery by each of
	 	  	Holdings and Merger Sub of this Agreement and the consummation by it of the Transactions
	 	  	have been duly authorized by all necessary corporate action on the part of Holdings and Merger
	 	  	Sub. Holdings, as sole stockholder of Merger Sub, has adopted this Agreement. Each of
	 	  	Holdings and Merger Sub has duly executed and delivered this Agreement, and this Agreement
	 	  	constitutes its legal, valid and binding obligation, enforceable against it in accordance with its
	 	  	terms.
		
	 	  	 (b) Holdings has all requisite corporate power and authority to execute and

	 	  	deliver the Holdings Agreements and to consummate the transactions contemplated by the
	 	  	Holdings Agreements. The execution and delivery by Holdings of the Holdings Agreements and
	 	  	the consummation by it of the transactions contemplated thereby have been duly authorized by

  

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	 	  	all necessary corporate action on the part of Holdings. The Holdings Agreements, when
	 	  	executed and delivered by Holdings and the other parties thereto, will constitute Holdings’s
	 	  	legal, valid and binding obligation, enforceable against it in accordance with its terms.
		
	 	  	 SECTION 4.05 No Conflicts. The execution and delivery by Holdings and

	 	  	Merger Sub of this Agreement do not, and the execution and delivery by Holdings of the
	 	  	Holdings Agreements will not, and the consummation of the Transactions and the transactions
	 	  	contemplated by the Holdings Agreements and compliance with the terms hereof and thereof
	 	  	will not, conflict with, or result in any violation of or default (with or without notice or lapse of
	 	  	time, or both) under, or give rise to a right of termination, cancellation or acceleration of any
	 	  	obligation or to loss of a material benefit under, or result in the creation of any Lien upon any of
	 	  	the properties or assets of Holdings or Merger Sub under, any provision of (i) the charter or
	 	  	organizational documents of Holdings or Merger Sub, (ii) any Contract to which Holdings or
	 	  	Merger Sub is a party or (iii) any Judgment or Law applicable to Holdings or Merger Sub.
		
	 	  	 SECTION 4.06 Brokers. No broker, investment banker, financial advisor or

	 	  	other person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or
	 	  	commission in connection with the Transactions based upon arrangements made by or on behalf
	 	  	of Holdings or Merger Sub.
		
	 	  	                                       
                               ARTICLE V
	 	  	 
	 	  	                                Representations and Warranties of Aqua
Stockholders
		
	 	  	 Each Aqua Stockholder represents and warrants to Founder Parties, as to itself

	 	  	only, that:
		
	 	  	 SECTION 5.01 Organization; Authority; Execution and Delivery, Enforceability.

	 	  	Such Aqua Stockholder, if it is not an individual, is duly organized, validly existing and in good
	 	  	standing under the laws of the jurisdiction in which it is organized. Such Aqua Stockholder (a) if
	 	  	it is not an individual, has all requisite power and authority and (b) if he or she is an individual,
	 	  	has the legal capacity, in each case to execute and deliver this Agreement and the Holdings
	 	  	Agreements to which he, she, or it is a party and to consummate the Transactions and the
	 	  	transactions contemplated by the Holdings Agreements to which he, she, or it is a party. The
	 	  	execution and delivery by such Aqua Stockholder, if it is not an individual, of this Agreement
	 	  	and the Holdings Agreements to which it is a party and the consummation by it of the
	 	  	Transactions and the transactions contemplated by the Holdings Agreements to which it is a
	 	  	party have been duly authorized by all necessary action on the part of such Aqua Stockholder.
	 	  	Such Aqua Stockholder has duly executed and delivered this Agreement, and this Agreement
	 	  	constitutes, and the Holdings Agreements to which he, she, or it is a party, when executed by all
	 	  	the parties thereto, will constitute, his, her or its legal, valid and binding obligation, enforceable
	 	  	against him, her or it in accordance with its terms.
		
	 	  	 SECTION 5.02 No Conflicts. The execution and delivery by such Aqua

	 	  	Stockholder of this Agreement do not, and the execution and delivery by such Aqua Stockholder
	 	  	of the Holdings Agreements to which he, she, or it is a party will not, and the consummation of
	 	  	the Transactions and the transactions contemplated by the Holdings Agreements to which he,

  

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	 	  	she, or it is a party and compliance with the terms hereof and thereof will not, conflict with, or
	 	  	result in any violation of or default (with or without notice or lapse of time, or both) under, or
	 	  	give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a
	 	  	material benefit under, or result in the creation of any Lien upon any of the properties or assets of
	 	  	such Aqua Stockholder under, any provision of (i) the charter or organizational documents of
	 	  	such Aqua Stockholder, if it is not an individual, (ii) any Contract to which such Aqua
	 	  	Stockholder is a party or (iii) any Judgment or Law applicable to such Aqua Stockholder.
		
	 	  	 SECTION 5.03 Aqua Common Stock. Such Aqua Stockholder is the record and

	 	  	beneficial owner of, and has good title to, the shares of Aqua Common Stock to be contributed to
	 	  	Holdings pursuant to the Aqua Stockholder Exchange, free and clear of any Liens.
		
	 	  	 SECTION 5.04 Brokers. No broker, investment banker, financial advisor or

	 	  	other person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or
	 	  	commission in connection with the Transactions based upon arrangements made by or on behalf
	 	  	of such Aqua Stockholder.
		
	 	  	                                        
                             ARTICLE VI

	 	  	 
	 	  	                                     Representations and
Warranties of Founder Parties

		
	 	  	 Each Founder Party represents and warrants to Aqua, Holdings, Merger Sub and

	 	  	 the Aqua Stockholders as to itself only, that:

		
	 	  	 SECTION 6.01 Organization; Authority; Execution and Delivery, Enforceability.

	 	  	 Such Founder Party, if it is not an individual, is duly organized, validly existing and in good

	 	  	 standing under the laws of the jurisdiction in which it is organized. Such Founder Party (a) if it

	 	  	 is not an individual, has all requisite power and authority, and (b) if he or she is an individual,

	 	  	 has the legal capacity, in each case to execute and deliver this Agreement and the Holdings

	 	  	 Agreements to which he, she or it is a party and to consummate the Transactions and the

	 	  	 transactions contemplated by the Holdings Agreements to which he, she or it is a party. The

	 	  	 execution and delivery by such Founder Party, if it is not an individual, of this Agreement and

	 	  	 the Holdings Agreements to which he, she or it is a party and the consummation by such Founder

	 	  	 Party of the Transactions and the transactions contemplated by the Holdings Agreements to

	 	  	 which he, she or it is a party have been duly authorized by all necessary action on the part of

	 	  	 such Founder Party. Such Founder Party has duly executed and delivered this Agreement, and

	 	  	 this Agreement constitutes, and the Holdings Agreements to which he, she or it is a party, when

	 	  	 executed by all the parties thereto, will constitute, such Founder Party’s legal, valid and binding

	 	  	 obligation, enforceable against him, her or it in accordance with its terms.

		
	 	  	 SECTION 6.02 No Conflicts. The execution and delivery by such Founder Party

	 	  	 of this Agreement do not, and the execution and delivery by such Founder Party of the Holdings

	 	  	 Agreements to which he, she or it is a party will not, and the consummation of the Transactions

	 	  	 and the transactions contemplated by the Holdings Agreements to which he, she or it is a party,

	 	  	 and compliance with the terms hereof and thereof will not, conflict with, or result in any

	 	  	 violation of or default (with or without notice or lapse of time, or both) under, or give rise to a

	 	  	 right of termination, cancellation or acceleration of any obligation or to loss of a material benefit

  

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	 	  	under, or result in the creation of any Lien upon any of the properties or assets of such Founder
	 	  	 Party under, any provision of (i) the charter or organizational documents of such Founder

	 	  	 Stockholder, if it is not an individual, (ii) any Contract to which such Founder Party is a party or

	 	  	 (iii) any Judgment or Law applicable to such Founder Party.

		
	 	  	 SECTION 6.03 Silver Common Stock. Such Founder Party is the record and

	 	  	 beneficial owner of, and has good title to, the shares of Silver Common Stock to be contributed

	 	  	 to Holdings pursuant to the Founder Exchange, free and clear of any Liens.

		
	 	  	 SECTION 6.04 Brokers. No broker, investment banker, financial advisor or

	 	  	 other person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or

	 	  	 commission in connection with the Transactions based upon arrangements made by or on behalf

	 	  	 of such Founder Party.

		
	 	  	                                        
                                     ARTICLE
VII

	 	  	 
	 	  	                                        
         Covenants Relating to Conduct of Business

		
	 	  	 SECTION 7.01 Conduct of Business. (a) Conduct of Business. Except for

	 	  	 matters set forth in the Aqua Disclosure Letter or otherwise contemplated by this Agreement,

	 	  	 from the date of this Agreement to the Effective Time, Aqua shall, and shall cause each Aqua

	 	  	 Subsidiary to, (i) conduct its business in the usual, regular and ordinary course in substantially

	 	  	 the same manner as previously conducted, (ii) use all reasonable efforts to preserve intact its

	 	  	 current business organization, (iii) use all reasonable efforts to keep available the services of its

	 	  	 current officers and employees and keep its relationships with customers, suppliers, licensors,

	 	  	 licensees, distributors and others having business dealings with them, and (iv) comply, in all

	 	  	 material respects, with all applicable Laws. Except for matters set forth in the Aqua Disclosure

	 	  	 Letter or otherwise contemplated by this Agreement, from the date of this Agreement to the

	 	  	 Effective Time, Aqua shall not, and shall not permit any Aqua Subsidiary to, do any of the

	 	  	 following without the prior written consent of Founder Parties:

		
	 	  	 (A) (1) declare, set aside or pay any dividends on, or make any other distributions

	 	  	 in respect of, any of its capital stock, other than dividends and distributions by a direct or

	 	  	 indirect wholly owned subsidiary of Aqua to its parent, (2) split, combine or reclassify

	 	  	 any of its capital stock or issue or authorize the issuance of any other securities in respect

	 	  	 of, in lieu of or in substitution for shares of its capital stock, other than any of the

	 	  	 foregoing by a direct or indirect wholly owned subsidiary of Aqua, or (3) purchase,

	 	  	 redeem or otherwise acquire any shares of capital stock of Aqua or any other securities

	 	  	 thereof or any rights, warrants or options to acquire any such shares or other securities;

		
	 	  	 (B) issue, deliver, sell or grant (1) any shares of its capital stock, (2) any Voting

	 	  	 Aqua Debt or other voting securities, (3) any securities convertible into or exchangeable

	 	  	 for, or any options, warrants or rights to acquire, any such shares, Voting Aqua Debt,

	 	  	 voting securities or convertible or exchangeable securities or (4) any “phantom” stock,

	 	  	 “phantom” stock rights, stock appreciation rights or stock-based performance units, other

	 	  	 than in the case of clauses (1), (2), (3) and (4) (x) any such issuance, delivery, sale or

	 	  	 grant pursuant to an equity plan approved by the Board of Directors of Aqua, (y)

  

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	 	  	 issuances upon the exercise of any options for Aqua Common Stock and (z) issuances to

	 	  	 Aqua or a wholly owned subsidiary of Aqua;

		
	 	  	 (C) amend or propose to amend the certificate of incorporation, bylaws or other

	 	  	 comparable organizational documents of Aqua, Holdings or Opco (other than the filing of

	 	  	 the Restated Holdings Charter contemplated by this Agreement);

		
	 	  	 (D) sell, lease (as lessor), license or otherwise dispose of any properties or assets

	 	  	 that are material, individually or in the aggregate, to Aqua and the Aqua Subsidiaries,

	 	  	 taken as a whole, except in the ordinary course of business consistent with past practice;

		
	 	  	 (E) authorize, recommend, propose or announce an intention to adopt a plan of

	 	  	 complete or partial liquidation or dissolution;

		
	 	  	 (F) knowingly or intentionally take any action that results or is reasonably likely

	 	  	 to result in any of the representations or warranties of Aqua hereunder being untrue in

	 	  	 any material respect; or

		
	 	  	 (G) authorize any of, or commit or agree to take any of, the foregoing actions.

		
	 	  	 (b) Except for matters set forth in the Aqua Disclosure Letter or otherwise

	 	  	contemplated by this Agreement, from the date of this Agreement to the Effective Time, Aqua
	 	  	shall not, without the prior written consent of Founder Parties, (i) take, or omit to take, any
	 	  	action that could reasonably be expected to result in a breach of the fiduciary duties of Aqua or
	 	  	its board of directors to the Founder Parties under the DGCL, or (ii) take any action which
	 	  	Holdings would be prohibited from taking without the consent of, or notice to, the Founder
	 	  	Parties under the terms of the Holdings Stockholders Agreement or applicable Law without
	 	  	obtaining such consent or providing such notice (assuming, in each case, for such purposes that
	 	  	on the date of this Agreement each of the Aqua Stockholders and each of the Founder Parties
	 	  	hold shares of Aqua capital stock equivalent to the shares of Holdings Common Stock and
	 	  	Holdings Preferred Stock to be received by such parties upon consummation of the
	 	  	Transactions).
		
	 	  	 (c) Advice of Changes. Aqua shall promptly advise Founder Parties orally

	 	  	and in writing of any change or event that has or could reasonably be expected to have an Aqua
	 	  	Material Adverse Effect.
		
	 	  	                                       
                             ARTICLE VIII
	 	  	 
	 	  	                                       
                     Additional Agreements
		
	 	  	 SECTION 8.01 Access to Information; Confidentiality. Aqua shall, and shall

	 	  	cause each of the Aqua Subsidiaries to, afford to Founder Parties and to the Founder Parties’
	 	  	officers, employees, accountants, counsel, financial advisors and other representatives,
	 	  	reasonable access during normal business hours during the period prior to the Effective Time to
	 	  	all Aqua properties, books, contracts, commitments, personnel and records and, during such
	 	  	period, Aqua shall, and shall cause each of its subsidiaries to, furnish promptly to Founder
	 	  	Parties (a) a copy of each report, schedule, registration statement and other document filed by

  

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	 	  	Aqua during such period pursuant to the requirements of Federal or state securities laws and
	 	  	(b) all other information concerning Aqua business, properties and personnel as Founder Parties
	 	  	may reasonably request; provided, however, that Aqua may withhold (i) any document or
	 	  	information that is subject to the terms of a confidentiality agreement with a third party or
	 	  	(ii) such portions of documents or information relating to pricing or other matters that are highly
	 	  	competitively sensitive. If any material is withheld by Aqua pursuant to the proviso to the
	 	  	preceding sentence, Aqua shall inform Founder Parties as to the general nature of what is being
	 	  	withheld.
		
	 	  	 SECTION 8.02 Best Efforts; Notification. Upon the terms and subject to the

	 	  	conditions set forth in this Agreement, each of the parties shall use its best efforts to take, or
	 	  	cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the
	 	  	other parties in doing, all things necessary, proper or advisable to consummate and make
	 	  	effective, in the most expeditious manner practicable, the Transactions, including (i) the
	 	  	obtaining of all necessary Consents of Governmental Entities and the making of all necessary
	 	  	registrations, declarations and filings (including filings with Governmental Entities, if any) and
	 	  	the taking of all reasonable steps as may be necessary to obtain an approval or waiver from, or to
	 	  	avoid an action or proceeding by, any Governmental Entity, (ii) the obtaining of all necessary
	 	  	consents, approvals or waivers from third parties, (iii) the defending of any lawsuits or other
	 	  	legal proceedings, whether judicial or administrative, challenging this Agreement or the
	 	  	consummation of the Transactions, including seeking to have any stay or temporary restraining
	 	  	order entered by any court or other Governmental Entity vacated or reversed and (iv) the
	 	  	execution and delivery of any additional instruments necessary to consummate the Transactions
	 	  	and to fully carry out the purposes of this Agreement. Notwithstanding the foregoing, this
	 	  	Section 8.02 shall not require any party to provide any financing for any of the Transactions that
	 	  	has not otherwise been agreed to be provided by such party pursuant to the other provisions of
	 	  	this Agreement.
		
	 	  	 SECTION 8.03 Fees and Expenses. All fees and expenses incurred in connection

	 	  	with the Transactions shall be paid by the party incurring such fees or expenses, whether or not
	 	  	the Transactions are consummated.
		
	 	  	 SECTION 8.04 Public Announcements. The parties will consult with each other

	 	  	and will mutually agree upon any press release or other public announcement pertaining to the
	 	  	Transactions and shall not issue any such press release or make any such public statement prior
	 	  	to such consultation and agreement, except as may be required by applicable Law, in which case
	 	  	the party proposing to issue such press release or make such public announcement shall use its
	 	  	reasonable best efforts to consult in good faith with the other party before issuing any such press
	 	  	release or making any such public announcement.
		
	 	  	 SECTION 8.05 Transfer Taxes. All stock transfer, real estate transfer,

	 	  	documentary, stamp, recording and other similar Taxes (including interest, penalties and
	 	  	additions to any such Taxes) (“Transfer Taxes”) incurred in connection with the Transactions
	 	  	shall be paid by Holdings, Merger Sub or the Surviving Corporation.

  

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                             ARTICLE IX
	 	  	 
	 	  	                                       
                     Conditions Precedent
		
	 	  	 SECTION 9.01 Conditions to Each Party’s Obligation To Effect The

	 	  	Transactions. The respective obligation of each party to effect the Transactions is subject to the
	 	  	satisfaction or waiver on or prior to the Closing Date of the following conditions:
		
	 	  	 (a) Antitrust. The waiting period (and any extension thereof) applicable to the

	 	  	Transactions under the HSR Act shall have been terminated or shall have expired and any
	 	  	Consents of, filings with and notices to, all Governmental Entities required of the parties hereto
	 	  	or any of their respective subsidiaries or other affiliates in connection with the Transactions,
	 	  	shall have been obtained, effected or made.
		
	 	  	 (b) No Injunctions or Restraints. No Judgment or Law preventing the

	 	  	consummation of the Transactions shall be in effect; provided, however, that prior to asserting
	 	  	this condition, each of the parties shall have used its reasonable best efforts to have such legal
	 	  	prohibition removed.
		
	 	  	 (c) Silver Merger. All conditions to the closing of the Silver Merger (other

	 	  	than the consummation of the Holdings Subscription, the Aqua Stockholder Exchange, the
	 	  	Founder Exchange or the Merger), shall have been satisfied or waived in accordance with the
	 	  	terms of the Silver Merger Agreement.
		
	 	  	 SECTION 9.02 Conditions to Obligations of Aqua, Holdings, Merger Sub and

	 	  	the Aqua Stockholders. The obligations of Aqua, Holdings, Merger Sub and the Aqua
	 	  	Stockholders to effect the Transactions are further subject to the following conditions:
		
	 	  	 (a) Representations and Warranties. The representations and warranties of

	 	  	Founder Parties in this Agreement shall be true and correct as of the Closing Date as though
	 	  	made on the Closing Date, other than for such failures to be true and correct that, individually
	 	  	and in the aggregate, have not had and could not have a material adverse effect on the ability of
	 	  	Founder Parties to consummate the Transactions. Aqua and Holdings shall have received a
	 	  	certificate signed on behalf of Founder Parties by Founder to such effect.
		
	 	  	 (b) Performance of Obligations of Founder Parties. Founder Parties shall

	 	  	have performed in all material respects all obligations required to be performed by them under
	 	  	this Agreement at or prior to the Closing Date, and Aqua and Holdings shall have received a
	 	  	certificate signed on behalf of Founder Parties by Founder to such effect.
		
	 	  	 SECTION 9.03 Conditions to Obligations of Founder Parties. The obligations of

	 	  	Founder Parties to effect the Transactions are further subject to the following conditions:
		
	 	  	 (a) Representations and Warranties. The representations and warranties of

	 	  	Aqua (i) set forth Sections 3.01, 3.03, 3.04, 3.05(a) and 3.21 in this Agreement (collectively, the
	 	  	“Specified Sections”) shall be true and correct in all material respects as of the Closing Date,
	 	  	except to the extent such representations and warranties expressly relate to an earlier date (in
	 	  	which case such representations and warranties shall be true and correct as of such earlier date)

  

 -26- 

			
	 	  	and (ii) set forth in this Agreement (other than the Specified Sections), disregarding
	 	  	qualifications as to “materiality”, “Aqua Material Adverse Effect” or words of similar import,
	 	  	shall be true and correct as of the Closing Date as though made on the Closing Date, except to
	 	  	the extent such representations and warranties expressly relate to an earlier date (in which case
	 	  	such representations and warranties, disregarding qualifications as to “materiality”, “Aqua
	 	  	Material Adverse Effect” or words of similar import, shall be true and correct as of such earlier
	 	  	date), other than, in the case of clause (ii) only, for such failures to be true and correct that,
	 	  	individually and in the aggregate, have not had an Aqua Material Adverse Effect. The
	 	  	representations and warranties of Holdings, Merger Sub and Aqua Stockholders in this
	 	  	Agreement, disregarding qualifications as to “materiality”, “Aqua Material Adverse Effect” or
	 	  	words of similar import, shall be true and correct as of the Closing Date as though made on the
	 	  	Closing Date, except to the extent such representations and warranties expressly relate to an
	 	  	earlier date (in which case such representations and warranties, disregarding qualifications as to
	 	  	“materiality”, “Aqua Material Adverse Effect” or words of similar import, shall be true and
	 	  	correct on and as of such earlier date), other than for such failures to be true and correct that,
	 	  	individually and the aggregate, have not had and could not reasonably be expected to have an
	 	  	Aqua Material Adverse Effect. Founder shall have received a certificate signed on behalf of
	 	  	Aqua by the chief executive officer of Aqua to such effect with respect to the representations and
	 	  	warranties of Aqua, Holdings and Merger Sub.
		
	 	  	 (b) Performance of Obligations of Aqua and Holdings. Aqua and Holdings

	 	  	shall have performed in all material respects all obligations required to be performed by them
	 	  	under this Agreement at or prior to the Closing Date (other than pursuant to Section 7.01(b)), and
	 	  	Founder shall have received a certificate signed on behalf of Aqua by the chief executive officer
	 	  	of Aqua to such effect.
		
	 	  	 (c) Restated Holdings Charter. The Restated Holdings Charter shall have

	 	  	been filed with the Secretary of State of the State of Delaware, and such charter shall have been
	 	  	certified by such official as the Amended and Restated Certificate of Incorporation of Holdings.
		
	 	  	 (d) Absence of Aqua Material Adverse Effect. There shall not have occurred

	 	  	after the date of this Agreement any event, change, condition, circumstance or state of facts, or
	 	  	aggregation of events, changes, conditions, circumstances or state of facts, that has had or could
	 	  	reasonably be expected to have, individually or in the aggregate, an Aqua Material Adverse
	 	  	Effect.
		
	 	  	                                       
                             ARTICLE X
	 	  	 
	 	  	                                       
         Termination, Amendment and Waiver
		
	 	  	 SECTION 10.01 Termination. (a) This Agreement shall terminate

	 	  	automatically, without any action on the part of any party hereto, upon the termination of the
	 	  	Silver Merger Agreement in accordance with its terms.
		
	 	  	 (b) This Agreement may be terminated by either Aqua or Founder Parties:

  

 -27- 

			
	 	  	 (i) if any Governmental Entity issues an order, decree or ruling or takes any

	 	  	 other action permanently enjoining, restraining or otherwise prohibiting the Transactions

	 	  	 and such order, decree, ruling or other action shall have become final and nonappealable;

	 	  	 or

		
	 	  	 (ii) if any condition to the obligation of such party to consummate the

	 	  	 Transactions set forth in Section 9.02 (in the case of Aqua and Holdings) or 9.03 (in the

	 	  	 case of Founder Parties) becomes incapable of satisfaction prior to the Outside Date (as

	 	  	 such term is defined in the Silver Merger Agreement); provided, however, the failure of

	 	  	 such condition is not the result of a material breach of this Agreement by the party

	 	  	 seeking to terminate this Agreement.

	 	  	 
	 	  	 SECTION 10.02 Effect of Termination. In the event of termination of this

	 	  	Agreement as provided in Section 10.01, this Agreement shall forthwith become void and have
	 	  	no effect, without any liability or obligation on the part of any party hereto or their respective
	 	  	affiliates, officers, directors or stockholders, other than Section 3.15, Section 4.06, Section 5.04,
	 	  	Section 6.04, Section 8.03, this Section 10.02 and Article XI, which provisions shall survive such
	 	  	termination, and except to the extent that such termination results from the willful and material
	 	  	breach by a party of any provision set forth in this Agreement.
		
	 	  	 SECTION 10.03 Amendment; Extension; Waiver. (a) Other than in accordance

	 	  	with Sections 1.01(a), 1.01(b) and 1.07, this Agreement may not be amended except by an
	 	  	instrument in writing signed on behalf of each of the parties.
		
	 	  	 (c) At any time, the parties may to the extent legally allowed (i) extend the

	 	  	time for the performance of any of the obligations or other acts of the other parties, (ii) waive
	 	  	any inaccuracies in the representations and warranties contained in this Agreement or in any
	 	  	document delivered pursuant to this Agreement or (ii) waive compliance with any of the
	 	  	agreements or conditions contained in this Agreement. Any agreement on the part of a party to
	 	  	any such extension or waiver shall be valid only if set forth in an instrument in writing signed on
	 	  	behalf of such party. The failure of any party to this Agreement to assert any of its rights under
	 	  	this Agreement or otherwise shall not constitute a waiver of such rights. The rights and remedies
	 	  	provided herein shall be cumulative and not exclusive of any rights or remedies provided by
	 	  	Law.
		
	 	  	 (d) The prior written consent of Silver shall be required for any amendment,

	 	  	extension or waiver of any provision of this Agreement that, in any case, (i) increases the
	 	  	economic value of the aggregate consideration to be received by the Founder Parties for each
	 	  	share of Silver Common Stock to be contributed to Holdings by the Founder Parties in the
	 	  	Founder Exchange, or (ii) changes or otherwise has the effect of changing any other provision of
	 	  	this Agreement, which change could reasonably be expected to prevent or materially delay the
	 	  	consummation of the Transactions.

  

 -28- 

			
	 	  	                                       
                         ARTICLE XI
	 	  	 
	 	  	                                       
                     General Provisions
		
	 	  	 SECTION 11.01 Nonsurvival of Representations, Warranties, Covenants and

	 	  	Agreements. None of the representations, warranties, covenants and agreements contained in
	 	  	this Agreement or in any instrument delivered pursuant to this Agreement shall survive the
	 	  	Effective Time, except the representations and warranties of Holdings, the Aqua Stockholders
	 	  	and the Founder Parties set forth in Articles IV, V and VI and the covenant set forth in Section
	 	  	7.01(b) shall, in each case, survive the Effective Time. This Section 11.01 shall not limit any
	 	  	covenant or agreement of the parties which by its terms contemplates performance after the
	 	  	Effective Time (which covenant or agreement shall survive in accordance with its terms).
		
	 	  	 SECTION 11.02 Notices. All notices, requests, claims, demands and other

	 	  	communications under this Agreement shall be in writing and shall be delivered personally,
	 	  	delivered by nationally recognized overnight courier service, sent by certified or registered mail,
	 	  	postage prepaid, or sent by facsimile (subject to electronic confirmation of such facsimile
	 	  	transmission and the sending (on the date of such facsimile transmission) of a confirmation copy
	 	  	of such facsimile by nationally recognized overnight courier service or by certified or registered
	 	  	mail, postage prepaid). Any such notice or communication shall be deemed to have been given
	 	  	(i) when delivered, if personally delivered, (ii) one business day after it is deposited with a
	 	  	nationally recognized overnight courier service, if sent by nationally recognized overnight
	 	  	courier service, (iii) the day of sending, if sent by facsimile prior to 5:00 p.m. (EST) on any
	 	  	business day or the next succeeding business day if sent by facsimile after 5:00 p.m. (EST) on
	 	  	any business day or on any day other than a business day or (iv) five business days after the date
	 	  	of mailing, if mailed by certified or registered mail, postage prepaid, in each case, to the
	 	  	following address or facsimile number, or to such other address or addresses or facsimile number
	 	  	or numbers as such party may subsequently designate to the other parties by notice given
	 	  	hereunder:
		
	 	  	 (a)    if to Aqua, Holdings, Merger Sub or Aqua Stockholders, to:

		
	 	  	 c/o AmeriPath, Inc.

	 	  	 7111 Fairway Drive, Suite 400

	 	  	 Palm Beach Gardens, Florida 33418

	 	  	 Facsimile: (561) 841-8527

	 	  	 Attention: Jarod T. Moss, Esq.

	 	  	 
	 	  	 with a copies to:

		
	 	  	 Welsh, Carson, Anderson & Stowe IX, L.P.

	 	  	 320 Park Avenue, Suite 2500

	 	  	 New York, New York 10022

	 	  	 Facsimile: (212) 893-9566

	 	  	 Attention: D. Scott Mackesy

	 	  	 
	 	  	 and

  

 -29- 

			
	 	  	 Ropes & Gray LLP

	 	  	 45 Rockefeller Plaza

	 	  	 New York, New York 10111

	 	  	 Facsimile: 212-841-5725

	 	  	 Attention: Othon A. Prounis, Esq.

		
	 	  	 (b) if to Founder Parties, to the addresses set forth on Schedule 1.01(b), with

	 	  	copies to:
		
	 	  	 Guth Christopher LLP

	 	  	 10866 Wilshire Blvd., Suite 1250

	 	  	 Los Angeles, California 90024

	 	  	 Facsimile: 310-470-8354

	 	  	 Attention:            Theodore E. Guth, Esq.

		
	 	  	 and

		
	 	  	 O’Melveny & Myers LLP

	 	  	 Times Square Tower

	 	  	 7 Times Square

	 	  	 New York, New York 10036

	 	  	 Facsimile: 212-326-2061

	 	  	 Attention: Spencer D. Klein, Esq.

	 	  	                  Gregory D. Puff,
Esq.

		
	 	  	 SECTION 11.03 Definitions. For purposes of this Agreement:

		
	 	  	 An “affiliate” of any person means another person that directly or indirectly,

	 	  	through one or more intermediaries, controls, is controlled by, or is under common control with,
	 	  	such first person.
		
	 	  	 An “Aqua Material Adverse Effect means any change, effect, event, occurrence or

	 	  	circumstance that has a material adverse effect on (i) the business, financial condition or results
	 	  	of operations of Aqua and the Aqua Subsidiaries, taken as a whole, or (ii) the ability of Aqua to
	 	  	perform its obligations under this Agreement or to consummate the Merger and the other
	 	  	transactions contemplated by this Agreement, in the case of each of (i) and (ii) other than effects
	 	  	relating to (A) changes, effects, events, occurrences or circumstances that generally affect the
	 	  	United States economy or the industries in which Aqua operates (other than changes in Law that
	 	  	do not exist and have not been proposed prior to the date of this Agreement) and, in each case,
	 	  	that do not have a materially disproportionate impact on Aqua and the Aqua Subsidiaries, taken
	 	  	as a whole, (B) changes in Law (but only to the extent such changes exist or have been proposed
	 	  	prior to the date of this Agreement) or reimbursement policies or practices of customers, (C) the
	 	  	announcement of this Agreement or the Transactions, or (D) those matters described in Section
	 	  	11.03 of the Aqua Disclosure Letter.
		
	 	  	 A “person” means any individual, firm, corporation, partnership, company,

	 	  	limited liability company, trust, joint venture, association, Governmental Entity or other entity.

  

 -30- 

			
	 	 	 A “subsidiary” of any person means another person, an amount of the voting

	 	 	securities, other voting ownership or voting partnership interests of which is sufficient to elect at
	 	 	least a majority of its Board of Directors or other governing body (or, if there are no such voting
	 	 	interests, 50% or more of the equity interests of which) is owned directly or indirectly by such
	 	 	first person.
		
	 	 	 SECTION 11.04 Interpretation. When a reference is made in this Agreement to a

	 	 	Section, such reference shall be to a Section of this Agreement unless otherwise indicated. The
	 	 	table of contents and headings contained in this Agreement are for reference purposes only and
	 	 	shall not affect in any way the meaning or interpretation of this Agreement. Each party hereto
	 	 	has participated in the drafting of this Agreement, which each party acknowledges and agrees is
	 	 	the result of extensive negotiations among the parties. Whenever the words “include”,
	 	 	“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
	 	 	words “without limitation”. Unless otherwise provided herein, each accounting term used in this
	 	 	Agreement has the meaning given to it in accordance with GAAP. When used herein, the phrase
	 	 	“to the knowledge of” any person or any similar phrase means the actual knowledge of the
	 	 	officers and directors of such person and such person’s subsidiaries and other individuals who
	 	 	have similar powers and duties as the officers of such persons, and the knowledge of facts that
	 	 	such individuals should have after reasonable due inquiry. The definitions contained in this
	 	 	Agreement are applicable to the singular as well as the plural forms of such terms and to the
	 	 	masculine as well as to the feminine and neuter genders of such terms. Any agreement or statute
	 	 	referred to herein means such agreement or statute as from time to time amended, qualified or
	 	 	supplemented, including, in the case of statutes, by succession of comparable successor statutes.
	 	 	References to the Exchange Act are also references to the rules and regulations of the SEC
	 	 	promulgated thereunder. References to a person are also to its successors and permitted assigns.
		
	 	 	 SECTION 11.05 Severability. If any term or other provision of this Agreement

	 	 	is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms,
	 	 	conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
	 	 	long as the economic or legal substance of the Transactions is not affected in any manner
	 	 	materially adverse to any party. Upon such determination that any term or other provision is
	 	 	invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to
	 	 	modify this Agreement so as to effect the original intent of the parties as closely as possible.
		
	 	 	 SECTION 11.06 Counterparts. This Agreement may be executed in one or more

	 	 	counterparts (and delivered by facsimile), all of which shall be considered one and the same
	 	 	original agreement and shall become effective when one or more counterparts have been signed
	 	 	by each of the parties and delivered to the other parties.
		
	 	 	 SECTION 11.07 Entire Agreement; Third-Party Beneficiaries. This Agreement,

	 	 	taken together with the Silver Merger Agreement, the Confidentiality Agreement (as defined in
	 	 	the Silver Merger Agreement) and the Aqua Disclosure Letter and the other schedules to this
	 	 	Agreement, (a) constitute the entire agreement, and supersede all prior agreements and
	 	 	understandings, both written and oral, among the parties with respect to the Transactions and (b)
	 	 	except for the provisions of Section 10.03(c), are not intended to confer upon any person other
	 	 	than the parties any rights or remedies. Silver shall be an intended third party beneficiary with

  

 -31- 

			
	 	 	respect to Section 10.03(c), and shall be entitled to the rights and benefits of, with full power to
	 	 	 enforce, the provisions thereof.

		
	 	 	 SECTION 11.08 Governing Law. This Agreement shall be governed by, and

	 	 	 construed in accordance with, the laws of the State of New York applicable to agreements made

	 	 	 and to be performed entirely within such state.

		
	 	 	 SECTION 11.09 Assignment. Neither this Agreement nor any of the rights,

	 	 	 interests or obligations under this Agreement shall be assigned, in whole or in part, by operation

	 	 	 of law or otherwise by any of the parties without the prior written consent of the other parties;

	 	 	 provided, that any Aqua Stockholder shall have the right to assign all or any portion of its rights

	 	 	 to subscribe and pay for shares of Holdings Common Stock and Holdings Preferred Stock, and

	 	 	 receive such shares from Holdings, in each case, pursuant to Section 1.01(a)(i), to any other

	 	 	 person approved by Holdings (it being understood that any such assignment shall not relieve

	 	 	 such assigning Aqua Stockholder of its obligations under Section 1.01(a)(i) if and to the extent

	 	 	 such assignee elects not to undertake such subscription or make such payment at the time the

	 	 	 Holdings Subscription is consummated). Any purported assignment other than in accordance

	 	 	 with this Section 11.09 shall be void. Subject to the preceding sentences, this Agreement will be

	 	 	 binding upon, inure to the benefit of, and be enforceable by, the parties and their respective

	 	 	 successors and assigns.

		
	 	 	 SECTION 11.10 Enforcement; Jurisdiction; WAIVER OF JURY TRIAL. The

	 	 	 parties acknowledge and agree that irreparable damage (for which money damages would not be

	 	 	 an adequate remedy) would occur in the event that any of the provisions of this Agreement were

	 	 	 not performed in accordance with their specific terms or were otherwise breached. It is

	 	 	 accordingly agreed that, in addition to any other remedies, the parties shall be entitled to an

	 	 	 injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the

	 	 	 terms and provisions of this Agreement in any New York state court or any Federal court, in

	 	 	 each case, located in New York County, this being in addition to any other remedy to which they

	 	 	 are entitled at law or in equity. In addition, each of the parties hereto (a) consents to submit itself

	 	 	 to the personal jurisdiction of any New York state court or any Federal court located in New

	 	 	 York County in the event any dispute arises out of this Agreement or any Transaction, (b) agrees

	 	 	 that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for

	 	 	 leave from any such court, (c) irrevocably and unconditionally waives, to the fullest extent it

	 	 	 may legally and effectively do so, the defense of an inconvenient forum to the maintenance of

	 	 	 any action arising out of this Agreement or any Transaction in any such court, (d) agrees that it

	 	 	 will not bring any action relating to this Agreement or any Transaction in any court other than

	 	 	 any New York state court or any Federal court, in each case, sitting in the New York County and

	 	 	 (e) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION

	 	 	 RELATED TO OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION.

  

 -32- 

							
	 	  	 IN WITNESS WHEREOF, Aqua, Holdings, Merger Sub, Aqua Stockholders, and

	 	  	Founder Parties have duly executed this Agreement, all as of the date first written above.
			
	 	  	 	 	AMERIPATH HOLDINGS, INC.
				
	 	  	 	 	By:	 	 /s/ DONALD E. STEEN

	 	  	 	 	Name:	 	 Donald E. Steen

	 	  	 	 	Title:	 	Chief Executive Officer
			
	 	  	 	 	AMERIPATH GROUP HOLDINGS, INC.
				
	 	  	 	 	By:	 	 /s/ DONALD E. STEEN

	 	  	 	 	Name:	 	 Donald E. Steen

	 	  	 	 	Title:	 	Chief Executive Officer
			
	 	  	 	 	AQUA ACQUISITION CORP.
				
	 	  	 	 	By:	 	 /S/ DONALD E. STEEN

	 	  	 	 	Name:	 	 Donald E. Steen

	 	  	 	 	Title:	 	President
				
	 	  	 	 	 	 	 

  

 -33- 

					
	 	 	 	 	 
		
	 	 	Aqua Stockholders:
		
	 	 	WELSH, CARSON, ANDERSON
	 	 	 	 	 & STOWE IX, L.P.

			
	 	 	By:	 	 WCAS IX Associates, LLC,

	 	 	 	 	 its General Partner

			
	 	 	By:	 	 /s/ D. SCOTT MACKESY

	 	 	Name:	 	 D. Scott Mackesy

	 	 	Title:	 	 Manager

		
	 	 	WCAS CAPITAL PARTNERS III, L.P.
			
	 	 	By:	 	 WCAS CP III Associates, LLC,

	 	 	 	 	 its General Partner

			
	 	 	By:	 	 /s/ D. SCOTT MACKESY

	 	 	Name:	 	 D. Scott Mackesy

	 	 	Title:	 	 Manager

			
	 	 	 	 	 

  

 -34- 

					
	 	 	 	 	 
		
	 	 	 Founder Parties:

		
	 	 	 SPECIALTY FAMILY LIMITED
     PARTNERSHIP

			
	 	 	 By:
	 	 /s/ JAMES B. PETER

	 	 	 	 	 James B. Peter, M.D.,

	 	 	 	 	 as Managing General Partner

			
	 	 	 By:
	 	 The Peter Family Revocable Trust,

	 	 	 	 	 as a General Partner

			
	 	 	 By:
	 	 /s/ JAMES B. PETER

	 	 	 	 	 James B. Peter, M.D.,

	 	 	 	 	 as Trustee

			
	 	 	 and
	 	 
			
	 	 	 By:
	 	 /s/ JOAN C. PETER

	 	 	 	 	 Joan C. Peter,

	 	 	 	 	 as Trustee

			
	 	 	 By:
	 	 /s/ DEBORAH A. ESTES

	 	 	 	 	 Deborah A. Estes,

	 	 	 	 	 as a General Partner

		
	 	 	 JAMES B. PETER, JR. THIRD
     GENERATION TRUST

			
	 	 	 By:
	 	 /s/ DEBORAH A. ESTES

	 	 	 	 	 Deborah A. Estes,

	 	 	 	 	 as a Trustee

		
	 	 	 JOAN C. NONEMAN THIRD
     GENERATION TRUST

			
	 	 	 By:
	 	 /s/ CHRISTINE M. GARD

	 	 	 	 	 Christine M. Gard,

	 	 	 	 	 as a Trustee

  

 -35- 

			
	 DEBORAH A. ESTES THIRD
     GENERATION TRUST

		
	 By:
	 	 /s/ ARTHUR L. PETER

	 	 	 Arthur L. Peter,

	 	 	 as a Trustee

		
	 and
	 	 
		
	 By:
	 	 /s/ KAREN M. CANE

	 	 	 Karen M. Cane,

	 	 	 as a Trustee

	
	 CHRISTINE M. GARD THIRD
     GENERATION TRUST

		
	 By:
	 	 /s/ JOAN C. NONEMAN

	 	 	 Joan C. Noneman,

	 	 	 as a Trustee

	
	 KAREN M. CANE THIRD
     GENERATION TRUST

		
	 By:
	 	 /s/ ARTHUR L. PETER

	 	 	 Arthur L. Peter,

	 	 	 as a Trustee

		
	 and
	 	 
		
	 By:
	 	 /s/ CHRISTINE M. GARD

	 	 	 Christine M. Gard,

	 	 	 as a Trustee

	
	 ARTHUR L. PETER THIRD
     GENERATION TRUST

		
	 By:
	 	 /s/ JAMES B. PETER, JR.

	 	 	 James B. Peter, Jr.,

	 	 	 as a Trustee

  

 -36- 

					
	 	 	 ARTHUR L. PETER AND MIA M. LINDSAY, AS JOINT
     TENANTS

			
	 	 	By:	 	 /s/ ARTHUR L. PETER

	 	 	 	 	Arthur L. Peter,
	 	 	 	 	as a Co-Tenant
			
	 	 	and	 	 
			
	 	 	By:	 	 /s/ MIA M. LINDSAY

	 	 	 	 	Mia M. Lindsay,
	 	 	 	 	as a Co-Tenant
	 	 	 	 	 
	 	 	 	 	 /s/ JAMES B. PETER, JR.

	 	 	 	 	James B. Peter, Jr.,
	 	 	 	 	in his individual capacity
	 	 	 	 	 

  

 -37-

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