Document:

pm10q033107-ex1045.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.45

ESCROW AGREEMENT

BY AND AMONG

SURESCRIPTS, LLC,

PROXYMED, INC.,

AND

SUNTRUST BANK

        THIS ESCROW AGREEMENT (this “Agreement”), dated as of April 30, 2007, is made by and among SureScripts, LLC, a limited liability company duly organized and validly existing under the laws of the Commonwealth of Virginia (“Buyer”), ProxyMed, Inc. d/b/a MedAvant Healthcare Solutions, a corporation duly organized and validly existing under the laws of the State of Florida (“Seller”), and SunTrust Bank, a Georgia Banking corporation (the “Escrow Agent” and, together with Buyer and Seller, the “Parties”).

        WHEREAS, Buyer and Seller have entered into that certain Purchase Agreement, dated as of the date hereof, a copy of which is attached hereto (the “Purchase Agreement”); and

        WHEREAS, the Purchase Agreement contemplates that Buyer and Seller will enter into this Agreement in connection with the payment of one hundred thousand dollars ($100,000) of the Purchase Price to Seller.

        NOW, THEREFORE, in consideration of the premises and covenants as set forth herein, and subject to the representations, warranties, and conditions contained herein, the Parties agree as follows:

        Section 1. Recitals. The foregoing recitals are restated and incorporated into this Agreement as fully as if set forth herein.

        Section 2. Purchase Agreement. Undefined capitalized terms used herein are defined in the Purchase Agreement. Except for referring to definitions of certain undefined capitalized terms herein, the Escrow Agent is not charged with any duties or responsibilities under the Purchase Agreement.

        Section 3. Escrow Fund.

        3.1 Escrow Deposit. Upon execution of this Agreement and the Purchase Agreement, Buyer shall deposit with Escrow Agent one hundred thousand dollars ($100,000) (the “Escrow Deposit”) into SunTrust Bank, ABA: 061000104, Account: 9443001321, Account Name: Corporate Agency Services, Reference: SureScripts/ProxyMed – 7920801, Attention: Emily J. Hare (804) 782-5400. The term “Escrow Fund” means the Escrow Deposit and all accumulated interest thereon. Escrow Agent hereby agrees to act as escrow agent and to hold, safeguard, and disburse the Escrow Fund pursuant to the terms and conditions hereof.

        3.2 Tax Liability. Any tax liability attributable to the payment of any amount payable to either party with respect to the Escrow Fund will be the responsibility of the Party receiving the distribution from the Escrow Fund. Buyer and Seller, jointly and severally, agree to indemnify and hold the Escrow Agent harmless from and against any liability on account of

taxes to which the Escrow Agent may be or becomes subject in connection with, or that arises out of, this Escrow Agreement, including costs and expenses (including reasonable legal and experts’ fees and expenses), interest, and penalties, other than any taxes payable by the Escrow Agent due to the payment to it of the Escrow Agent fees as contemplated herein.

        Section 4. Escrow Period and Distribution Upon Termination.

        4.1 The Escrow Fund will remain in existence from the date hereof until October 29, 2007, unless terminated or extended as provided for hereunder. 

        4.2 Unless Buyer provides a Buyer Non-Compliance Notice pursuant to Section 4.4, prior to the close of business on October 29, 2007, Escrow Agent shall distribute to Seller the Escrow Deposit (i.e., one hundred thousand dollars ($100,000)).

        4.3 Buyer may deliver to Escrow Agent at any time prior to October 29, 2007, written authorization to distribute to Seller the Escrow Deposit (i.e., one hundred thousand dollars ($100,000)), in which case Escrow Agent shall, as soon as reasonably possible after receipt of such notice, distribute to Seller the Escrow Deposit (i.e., one hundred thousand dollars ($100,000)).

        4.4 Buyer may, by written notice delivered to Escrow Agent and Seller on or before the close of business on October 29, 2007, direct the Escrow Agent to retain beyond such date the Escrow Fund because, in Buyer’s reasonable judgment, the conditions set forth in Section 1.5(b) of the Purchase Agreement have not been satisfied (a “Buyer Non-Compliance Notice”). In the event that Buyer delivers to Escrow Agent a Buyer Non-Compliance Notice, Escrow Agent shall deliver to Buyer all funds in the Escrow Fund on the fifteenth (15th) day after receipt of such Buyer Non-Compliance Notice, unless Seller shall provide written notice to Escrow Agent and Buyer that it disputes in good faith the Buyer Non-Compliance Notice (a “Dispute Notice”). If Seller gives such a Dispute Notice, Escrow Agent will not transfer, deliver, or assign to Buyer any of the Escrow Funds under this Section 4.4 until either (a) it receives the written consent of Seller or (b) there is a final decision under Section 5 and Escrow Agent receives the written notice of such decision, including directions as to the disposition of the Escrow Fund, under Section 5.

        4.5 In no event shall Seller be entitled to more than the Escrow Deposit (i.e., one hundred thousand dollars ($100,000)). Any amounts in the Escrow Fund in excess of Escrow Deposit shall be delivered to Buyer at the same time that the Escrow Deposit is distributed to Seller.

        Section 5. Dispute Resolution. All disputes arising under this Agreement (“Disputes”) will be resolved in accordance with the procedures set forth in Section 8.11 hereof. Upon resolution of a Dispute under such Section 8.11, Buyer and Seller will cause the written determination of the resolution contemplated by such section to be delivered to Escrow Agent promptly.

        Section 6. Investment of Escrow Deposit. Escrow Agent will invest the Escrow Deposit in the STI Classic US Treasury Money Market Fund.

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       Section 7. Escrow Agent’s Provisions.

       7.1 Limitation on Escrow Agent’s Liability. In performing any of its duties under this Agreement, Escrow Agent will not be liable to any Party for damages, except in the event of gross negligence or willful misconduct on Escrow Agent’s part. Escrow Agent will not incur any liability for (a) any act or failure to act made or omitted in good faith or (b) any action taken or omitted in reliance upon any instrument, including any written statement or affidavit provided for in this Escrow Agreement, that Escrow Agent in good faith believes to be genuine, nor will Escrow Agent be liable or responsible for forgeries, fraud, impersonations, or determining the scope of any agent’s authority. In addition, Escrow Agent may consult with legal counsel in connection with its duties under this Agreement and will be fully protected in any act taken, suffered, or permitted by it in good faith in accordance with the advice of counsel. Escrow Agent is not responsible for determining and verifying the authority of any person acting or purporting to act on behalf of any Party.

       7.2 Indemnification of Escrow Agent. Buyer and Seller, and their respective successors and assigns, agree jointly and severally to indemnify and hold Escrow Agent harmless against any and all losses, claims, damages, liabilities, and expenses, including reasonable costs of investigation and counsel fees (including allocated costs of in-house counsel) and disbursements, that may be imposed on Escrow Agent or incurred by Escrow Agent in connection with the performance of its duties under this Agreement, including those arising from any lawsuit, claim, or action initiated in connection with this Escrow Agreement or involving its subject matter, but excluding those arising from Escrow Agent’s willful default or gross negligence. 

       7.3 Right of Interpleader. Should any controversy arise involving the Parties or any of them or any other person with respect to this Escrow Agreement or the Escrow Fund, or should a substitute escrow agent fail to be designated as provided in Section 7.5 below, or if Escrow Agent should be in doubt as to what action to take, Escrow Agent will have the right, but not the obligation, either to (a) withhold delivery of the Escrow Deposit until the controversy is resolved, the conflicting demands are withdrawn, or its doubt is resolved or (b) institute a petition for interpleader in any court of competent jurisdiction to determine the rights of Buyer and Seller. If the Escrow Agent is a party to any dispute, Escrow Agent will have the additional right to refer such controversy to binding arbitration to be conducted in accordance with Sections 5 and 8.11. Escrow Agent is also authorized to deposit with the clerk of the court all documents and Escrow Deposit held in escrow. Upon initiating such action, Escrow Agent will be fully released and discharged of and from all obligations and liability imposed by this Agreement.

        7.4 Escrow Agent Fees. Reasonable fees and expenses for the services Escrow Agent renders pursuant to this Agreement (including reasonable fees and disbursements of its counsel incurred in connection with its performance of such services) will be paid to Escrow Agent. Seller will pay such fees and expenses. Escrow Agent’s fee schedule is set forth on Exhibit A.

        7.5 Successor Escrow Agent. The Escrow Agent, or any successor to it hereafter appointed, may at any time resign by giving thirty (30) days notice in writing to Buyer and Seller and will be discharged of its duties hereunder upon the appointment of a successor Escrow Agent

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as hereinafter provided. Upon any such resignation, Buyer and Seller will appoint a successor Escrow Agent, which will be a bank or trust company organized under the laws of the United States of America or any state thereof and having a combined capital and surplus of not less than US$1 billion. Any such successor Escrow Agent will deliver to Buyer and Seller a written instrument accepting such appointment hereunder, and thereupon it will succeed to all the rights and duties of Escrow Agent hereunder and will be entitled to receive the Escrow Fund.

        Section 8. Miscellaneous.

        8.1 Assignment; Successors and Assigns. This Agreement shall not be assignable by any Party without the prior written consent of the others. This Agreement shall be binding upon the Parties and their respective successors, assigns, heirs, transferees, executors, and administrators.

        8.2 Cumulative Remedies. Each right, power, and remedy of any Party provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise shall be distinct, cumulative, and concurrent, and shall be in addition to every other such right, power, or remedy. The exercise or beginning of the exercise by any Party of any one or more of the rights, powers, or remedies provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by such Party of all such other rights, powers or remedies, and no failure or delay on the part of such Party to exercise any such right, power or remedy shall operate as a waiver thereof.

        8.3 Further Assurances. The provisions of this Agreement shall be self-operative and shall not require further agreement by the Parties except as may be herein specifically provided to the contrary; provided, however, at the reasonable request of any Party, the other Parties shall execute such additional instruments and take such additional acts as the requesting Party may deem necessary to effectuate this Agreement.

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

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

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	If to Buyer:  	  	SureScripts, LLC  
	  	  	5971 Kingstowne Village Parkway  
	  	  	Suite 200  
	  	  	Alexandria, VA 22315  
	  	  	Attention: Paul L. Uhrig, Esq.  
	  	  	Phone: (703) 921-2179  
	  	  	Facsimile: (703) 921-2161  

	If to Escrow Agent:   	  		  	  
	 	 	  
	 	 	SunTrust Bank  
	 	 	Corporate Agency Services  
		 	919 East Main Street, 10th Floor  
		 	Richmond, VA 23219  
		 	Attn: Emily J. Hare  
		 	Telephone:  (804) 782-5400  
		 	Facsimile:  (804) 782-7855  

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

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

        8.6 Amendment. No modification, waiver, amendment, discharge, or change of this Agreement shall be valid unless in writing and signed by the Party or Parties against whom enforcement of such modification, waiver, amendment, discharge, or change is sought.

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        8.7 Choice of Law. The construction, interpretation, and enforcement of this Agreement shall at all times and in all respects be governed by the laws of the Commonwealth of Virginia, without reference to Virginia’s choice of law or conflict of law provisions or principles.

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

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

        8.10 Headings; Gender; Number. The headings in this Agreement are intended solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement. All words used in this Agreement shall be construed to be of such gender and number as the circumstances require.

        8.11 Arbitration. In the event of a dispute among any of the Parties arising from or relating to this Agreement, including, but not limited to, construction, interpretation, implementation, or enforcement of this Agreement or the validity, performance, or breach of any provision in this Agreement, the applicable Parties shall meet and confer in good faith to resolve such dispute. In the event such efforts do not resolve the dispute within fifteen (15) days from the date the of receipt by a Party of written notice of a dispute, a Party may demand arbitration by the American Arbitration Association (“AAA”), under its Commercial Arbitration Rules then in effect, such arbitration to be final, conclusive, and binding. Judgment on the award rendered by the arbitrators may be entered by any court having jurisdiction. There shall be three (3) neutral and impartial arbitrators, of whom Seller shall appoint one and Buyer shall appoint another, both within thirty (30) days of the receipt by the respondent of the demand for arbitration. The two arbitrators so appointed shall select the third arbitrator, who shall serve as the chair of the arbitral tribunal, within thirty (30) days of the appointment of the second arbitrator. If any arbitrator is not appointed within the time limit provided herein, such arbitrator shall be appointed by the AAA in accordance with the listing, striking, and ranking procedure in the rules of the AAA. Any arbitrator appointed by the AAA shall be a retired judge or a practicing attorney with no less than fifteen years of experience with large commercial cases and an experienced arbitrator. The arbitrators shall base their award on the terms of this Agreement, and they will follow the law of the Commonwealth of Virginia. The arbitral tribunal is not empowered to award damages in excess of compensatory damages, and the Parties hereby irrevocably waive any right to recover punitive, exemplary or similar damages with respect to any dispute. The arbitrators shall render the award in writing and, unless the Parties agree otherwise, shall include an explanation of the reasons for the award and the findings of fact and conclusions of law upon which the award is based. Notwithstanding the foregoing, by agreeing to arbitration, the Parties do not intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment, or other order in aid of arbitration proceedings and the enforcement of any award. Without prejudice to such provisional remedies as may be available under the jurisdiction of a court, the arbitrators shall have full authority to grant provisional remedies and to direct the Parties to request that any court modify or vacate any

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temporary or preliminary relief issued by such court, and to award damages for the failure of the Parties to respect the arbitrators' orders to that effect.

        8.12 Attorney’s Fees. In the event that any Party breaches any of its obligations pursuant to this Agreement, the non-breaching Party(ies) shall be entitled to recover from the breaching Party(ies), in addition to any and all other remedies, its reasonable attorney’s fees, expenses, and costs which it incurs in enforcing its rights hereunder.

        8.13 Construction. This Agreement shall not be construed more strictly against any Party hereto merely by the virtue of the fact that the Agreement may have been drafted or prepared by such party or its counsel, it being recognized that each of the Parties hereto have contributed substantially and materially to its preparation and that this Agreement has been the subject of negotiations between the Parties and as a product of that negotiation.

        8.14 Entire Agreement. This Agreement supersedes all prior agreements between the Parties with respect to its subject matter and constitutes (along with the schedules, attachments, exhibits, and/or other documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. All schedules and exhibits attached hereto are part of the Agreement and are fully incorporated herein with the same effect as if such schedules and exhibits were restated in their entirety in the body of the Agreement.

[Remainder of Page Intentionally Left Blank]

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

	SURESCRIPTS, LLC  
	 
	/s/ Kevin Hutchinson__________________  
	Signature  
	 
	Kevin Hutchinson____________________  
	Print Name  
	 
	President & CEO_____________________  
	Office or Title  
	 
	April 30, 2007_______________________  
	Date  
	 
	PROXYMED, INC.  
	  
	/s/ Peter Fleming_____________________  
	Signature  
	 
	Peter Fleming________________________  
	Print Name  
	 
	General Counsel______________________  
	Office or Title  
	 
	SUNTRUST BANK  
	 
	/s/ Emily J. Hare______________________  
	Signature  
	 
	Emily J. Hare________________________  
	Print Name  
	 
	Vice-President_______________________  
	Office or Title  
	 
	April 30, 2007_______________________  
	Date  

EXHIBIT A

Escrow Agent’s Fee Schedule

	Escrow Administration Fee  		$ 1,500.00 *  

* This fee is based on the investment of Escrow Funds in the STI Classic US Treasury Money Market Fund.pm10q033107-ex1046.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.46

NONCOMPETITION AGREEMENT

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

        WHEREAS, Seller and Buyer have entered into that certain Purchase Agreement, dated as of April 30, 2007 (the “Purchase Agreement”) whereby Buyer has agreed to purchase the Pharmacy Processing Business of Seller, all as set forth in such Purchase Agreement;

        WHEREAS, as a material part of the benefit of the bargain and as an inducement to Buyer, without which Buyer would not enter into the Purchase Agreement, Seller has promised and agreed to abide by the covenants and promises set forth in this Agreement; and

        WHEREAS, Buyer would not enter into the Purchase Agreement or pay to Seller any of the proposed purchase price pursuant to the Purchase Agreement without Seller agreeing to abide by the restrictions set forth in this Agreement.

        NOW, THEREFORE, in consideration of the foregoing, the mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto promise and agree as follows:

        1. Incorporation of Recitals; Definitions; Acknowledgments.

        (a) The foregoing recitals are restated and incorporated herein by reference and made a part hereof. All capitalized terms used herein but not otherwise defined herein shall have the meaning ascribed to them in the Purchase Agreement.

        (b) Seller acknowledges that: (i) the Restricted Activity (as defined below) is intensely competitive; (ii) Seller has knowledge of Seller Confidential Information (defined below) associated with the sale of the Pharmacy Processing Business; (iii) the disclosure by Seller of any such Seller Confidential Information to competitors of Buyer may place Buyer at a competitive disadvantage and may do damage, monetary or otherwise, to Buyer; (iv) the engagement by Seller, or by any party at any time during the Restricted Period controlling, controlled by, or under common control with Seller (each a “Seller Party”) in any of the activities prohibited by Sections 2 or 7 hereof would constitute a breach of this Agreement and may constitute improper appropriation and/or use of such Seller Confidential Information; (v) Seller has been advised by counsel in connection with its entering into this Agreement; and (vi) the noncompetition and other restrictive covenants and agreements set forth in this Agreement are reasonable.

        (c) As used herein, “Seller Confidential Information” shall mean non-public information of Seller owned and/or known by Seller related to the Pharmacy Processing Business being purchased by Buyer pursuant to the Purchase Agreement. “Seller Confidential Information” shall not include any information (i) that is generally known or becomes known to

the public other than as a result of disclosure by Seller in breach of this Agreement; (ii) was or becomes available to others on a non-confidential basis from a source other than Seller; or (iii) is disclosed with the prior written approval of Buyer.

        2. Noncompetition and Nonsolicitation. Except as otherwise specifically permitted in this Agreement and the Purchase Agreement, from the date hereof until April 30, 2012 (the “Restricted Period”), Seller and each and every Seller Party shall not, directly or indirectly, in the United States or any territory of the United States:

        (a) (i) own, (ii) operate, (iii) manage, (iv) lease, (v) control, and/or (vi) render services (including consulting services) (the restriction related to services shall be limited to services related to Electronic Prescribing Transactions) to, be an investor in, or be a lender to, any person, entity, or business that owns, operates, manages, leases, or controls:

                an electronic network that establishes, facilitates, and/or maintains connectivity between and among providers, pharmacies, and/or pharmacy benefit management companies for the purpose of processing, routing, delivering, and/or exchanging Electronic Prescribing Transactions (as defined below) (all of subsection (a) to be referred to herein as the “Restricted Activity”);

        (b) intentionally interfere with, disrupt, or attempt to disrupt any current contractual relationship between Buyer and any customer, supplier, or employee of Buyer; or

        (c) employ, hire, or solicit for employment, or attempt to employ, hire, or solicit for employment, any person employed by Buyer as of the date hereof or during the Restricted Period, or induce or attempt to induce, directly or indirectly, any person employed by Buyer as of the date hereof or during the Restricted Period, to terminate his or her employment with Buyer.

        For purposes of this Agreement, Electronic Prescribing Transactions is defined as electronic prescribing messages (including, but not limited to, new prescriptions, refill requests, refill responses, stop orders), formulary and/or eligibility messages related to prescription claims, and patient identifiable medication history as derived from electronic prescribing messages, formulary and/or eligibility messages, and/or the dispensed history data bases of pharmacies, whether through true electronic data interchange or facsimile.

        3. Exceptions. Notwithstanding the foregoing set forth in Section 2, nothing set forth in this Agreement shall prohibit any of the following:

        (a) Seller’s ownership of a passive investment of no more than five percent (5%) in any publicly traded entity that engages in the Restricted Activity; provided, that Seller may own more than five percent (5%) of such company in the event it obtains such interest as a result of a Change of Control (as defined below) pursuant to an arm's length transaction negotiated in good faith not for the purpose of circumventing the intent of this Agreement as it applies to Seller.

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        (b) Seller’s engagement in general employment solicitation activities to the public at large, including posting or advertising for positions and interviewing and hiring any employee of Buyer that apply for positions as a result of such general postings and advertising.

        (c) Seller hiring any employee of Buyer who (i) resigns voluntarily or (ii) is terminated by Buyer.

        (d) Seller selling its proprietary technology applications to one or more third parties and providing routine maintenance, upgrades, and/or enhancements to such technology applications (so long as such maintenance, upgrades, and/or enhancements are of general applicability, and do not specifically relate or apply to Electronic Prescribing Transactions only).

        4. Extension of Term. In the event a court of competent jurisdiction determines that Seller or any Seller Party has breached any covenant set forth in Section 2, as limited by Section 3, the term of the covenant set forth in Section 2 so breached will be extended as to Seller and each and every Seller Party by the period of the duration of such breach with respect to Seller and each Seller Party.

        5. Enforcement/Remedies. Seller acknowledges and agrees that the geographic area, time periods, subject matter, and all other aspects of the restrictions set forth in Sections 2 and 7 of this Agreement are reasonable and are appropriate for the protection of Buyer’s legitimate property and business interest. In the event that Seller or any Seller Party breaches any such restrictions, Buyer may suffer immediate and irreparable harm and injury for which there may not be an adequate remedy at law, and Buyer will be entitled, in addition to any other remedies or damages available them for such breach, to seek and obtain temporary, preliminary, and permanent injunctive relief, consistent with, and enforcing the terms of, this Agreement, without posting any bond with respect thereto.

        6. Indemnification. In the event that Seller or any Seller Party breaches any provision of Section 2 or Section 7, Seller shall indemnify and hold harmless Buyer and their respective officers, directors, shareholders, members, and employees for, from and against any and all liabilities, losses, damages, claims, causes of action, costs and expenses (including reasonable attorneys’ fees) incurred by Buyer or Buyer as a result of such breach.

        7. Confidentiality Agreement. During the Restricted Period, Seller and each Seller Party will treat and hold as confidential all of the Seller Confidential Information, and not use it for any purpose. In the event that during the Restricted Period Seller or any Seller Party is called upon to reveal Seller Confidential Information in order to comply with the requirements of law or the lawful orders or process of a court or governmental agency, it shall so notify Buyer in writing upon becoming aware of such request for compliance and, in any event, not less than five (5) days prior to the date for compliance and prior to disclosing of such information. In the event Buyer seeks relief, by way of a protective order or otherwise, Seller or the applicable Seller Party shall cooperate in good faith, but at the sole expense of Buyer, with respect to such effort to obtain relief. If, in the absence of a protective order or the receipt of a waiver hereunder, Seller or the applicable Seller Party is, on the advice of counsel, compelled to disclose any Seller Confidential Information during the Restricted Period to any tribunal or else stand liable for contempt, Seller or the applicable Seller Party may disclose the Seller Confidential Information

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to the tribunal; provided, however, that the disclosing party shall use its reasonable efforts to obtain, at the reasonable request, and the sole expense, of Buyer, an order or other assurance that confidential treatment will be accorded to such portion of the Seller Confidential Information required to be disclosed as Buyer shall designate. This Section shall not apply to any disclosure necessary in connection with a potential acquisition of any of the equity interests issued by or any substantial portion of the assets of a party (including any acquisition structured as a merger, consolidation, or share exchange) hereto, provided, however, that the person receiving such information is bound by confidentiality restrictions no less restrictive than those set forth herein. 

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

        9. Waiver. Neither any course of dealing between or among the parties hereto nor any delay, failure, or omission by any party hereto to exercise any right under this Agreement shall operate or be deemed to operate as a waiver of any such right. No party shall be deemed to have waived any right hereunder unless such waiver is in writing duly executed by such party. Any waiver or consent given by a party hereunder on any one occasion or with respect to any particular circumstance shall be effective only with respect to such occasion or such circumstance and shall not be construed as a bar to or waiver of such right on any other occasion or with respect to any other circumstance.

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

        11. Headings. The headings, captions, and titles appearing in this Agreement are inserted only as a matter of convenience and in no way define, limit, construe, or describe the scope or intent of the Agreement or any paragraph or provision therein.

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

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        13. Binding Agreement. This Agreement shall be binding on and shall inure to the benefit of the parties hereto, and their respective officers, employees and agents.

        14, Change of Control. A “Change of Control” is defined as any transaction whereby, any person or entity acquires all or substantially all of the assets or equity interests of either party (including any acquisition structured as a merger, consolidation, or share exchange). If there is a Change of Control of Seller, pursuant to an arm’s length transaction negotiated in good faith not for the purpose of circumventing the intent of this Agreement as it applies to Seller, then Seller’s successor-in-interest shall not be subject to the terms of Section 2 of this Agreement; provided, however, that the confidentiality provisions of Section 6 and all other applicable provisions of this Agreement shall survive such Change of Control and shall be binding upon Seller’s successor-in-interest.

        15. Applicable Law. The construction, interpretation, and enforcement of this Agreement shall at all times and in all respects be governed by the laws of the Commonwealth of Virginia, without reference to Virginia’s choice of law or conflict of law provisions.

        16. Authority. The parties hereto respectively represent and warrant that the person signing this Agreement on their behalf has the requisite authority to do so and to make the promises and to undertake the obligations set forth herein on behalf of the persons and entities indicated and to legally bind those persons to the terms and provisions of this Agreement.

        17. Counterparts. This Agreement may be executed in any number of counterparts by each of the undersigned, and each counterpart shall be deemed to be an original, but all such counterparts shall together constitute one and the same Agreement.

        18. Assignment. If Buyer enters into a transaction constituting a Change of Control, then Buyer shall be entitled to assign its respective rights pursuant to this Agreement to its successor-in-interest.

        19. Attorney’s Fees. In the event of any litigated dispute between the parties with respect to this Agreement, each party shall bear it’s own costs, attorney’s fees and expenses.

        20. Entire Agreement. This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject matter hereof, and no representations, promises, or agreement, oral or written, relating hereto not herein contained shall be of any force or effect. No change or modification of this Agreement shall be valid or binding upon the parties unless and until the same is in writing and signed by the party against whom enforcement of such change or modification is sought.

[Signature page follows]

5

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first set forth above. 

	SURESCRIPTS, LLC  
	  
	  
	By:  	  	/s/ Kevin Hutchinson  
			

	  	  	Signature  
	  
	  	  	Kevin Hutchinson  
			

	  	  	Print Name  
	  
	Its:  	  	President & CEO  
			

	  	  	Title  
	  
	  
	  
	PROXYMED, INC., D/B/A  
	MEDAVANT HEALTHCARE SOLUTIONS  
	  
	  
	By:  	  	/s/ Peter Fleming  
			

	  	  	Signature  
	  
	  	  	Peter Fleming  
			

	  	  	Print Name  
	  
	Its:  	  	General Counsel  
			

	  	  	Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]