Free Appendix - District Court of Delaware - Delaware

Case 1:04-cv-01565-SLR

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Filed 05/04/2007

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UNITED STATES DISTRICT COURT DISTRICT OF DELAWARE
IN RE:

. Case No.: 00-3299 00-3300 (MFW)
. 821 North Market Street

CORAM HEAL THCARE CORP. and . Wilmington, Delaware 19801 CORAM, INC.

Debtors, .
. Date: December 11, 2003

. . .. . . . . . . . . . ... Time: 10:10 a.m.
TRANSCRIPT OF HEARING BEFORE HONORABLE MARY F. WALRATH UNITED STATES BANKRUPTCY COURT JUDGE

APPEARANCES:
For the Equity Committee: Jenner & Block By: RICHARD F. LEVY, ESQ. DAVID J. BRADFORD, ESQ. C. STEVEN TOMASHEFSKY, ESQ. ANDERS C. WICK, ESQ. One IBM Plaza
Chicago, IL 60611

Saul Ewing, LLP By: MARK MINUTI, ESQ. 222 Delaware Avenue

Wilmington, DE 19801
For the RenGen Capital: Monzack and Monaco
By: KEVIN J. MANGAN, ESQ.

400 Commerce Center
Wilmington, DE 19899

Audio Operator:

Lesa Neal

Proceedings recorded by electronic sound recording, transcript Produced by transcription service.

J&J COURT TRANSCRIBERS, INC. 268 Evergreen Avenue Hamilton, New Jersey 08619

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Shestack - DirectlKipnes 32
1 effect, but they would challenge the fact that there was a

2 scheme to put the company into bankruptcy.

3 Q But let's be clear. If you were the trier of fact you
4 would find that Crawley had a conflict.

5 A Yes, absolutely.
6 Q And you find that was a breach of fiduciary duty.
7 A Yes.
8 Q By Crawley.

9 A Yes.

10 Q What would, do you think, Mr. Feinberg alleged in
11 opposition to the claim that he breached his fiduciary duty?

12 A Well, he has several arguments. One, that while he was on
13 the board of directors he didn't breach anyting and that he
14 wasn't liable after he was on the board which is somewhat

15 dubious. And he would say basically that he didn't fail to
16 disclose anything, Crawley failed to disclose anything. I
17 think that Feinberg would have the short side of that argument.

18 Q What do you think Cerberus would argue?

19 A Well, Cerberus would argue that they weren't at all
20 involved, Feinberg acted as a director, he had duties as a

21 director and that Cerberus didn't participate in the scheme at
22 all.

23 Q Now I think we can turn to the Rico counts. Count nine on
24 page 42. How would you characterize just as an overview, Mr.
25 Shestack, the Rico statute in terms of its clarity?

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Stearns - Further RedirectGodnick 153
1 Q Let's turn to another topic. You determined, as I
2 understand your testimony on direct, that $56 milion was

3 within the range of reason to settle the liigation, correct?
4 A Yes.

5 Q As far as you were concerned this was comparable to other
6 settlements that you had seen where one party pays a particular

7 amount of money to settle litigation, correct?

8 A Well, that's true of every settlement.
9 Q And here you thought that paying $56 milion was an
10 appropriate amount to pay to resolve the litigation, correct?

11 A I thought that it was within the zone of reasonableness.
12 I mean, the basic test under the courts says the criteria that
13 the courts consider as to whether it's within the zone of

14 reasonableness are such m!'tters as probabilty of success in
15 the litigation, the complexity of the litigation, the expense

16 and convenience in delay. They also consider collectíbilty

17 which i didn't consider here. And they also consider effect on
18 creditors which I pidn't consider here.

19 The main criteria in deciding whether it's in the zone of
20 reasonableness is a probability of success in litigation and

21 the complexity of the liigation involving expense and delay.
22 Q You did what might be called a traditional

litigation risk

23 analysis in coming to the $56 million opinion, correct?

24 A i think that's correct.
25 Q You didn't, for example look at valuations of the company
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Express Scripts and CuraScript Announce

Acquisition Agreement; Specialty Pharmacy Will Enhance PBM Service Offering
1,495 words
22 December 2003

05:08
Business Wire

English (c) 2003 Business Wire. All Rights Reserved.
ST. LOUIS Express Scripts, Inc. (Nasdaq:ESRX) anounced today it has signed a definitive agreement to acquire the capital stock of CuraScript Pharmacy, Inc. and CuraScript PBM

Services, Inc., together comprising the business of CuraScript for $335 milion. CuraScript,
headquartered in Orlando, Florida, is one of the nation's largest specialty pharmacy services

companies. This transaction is expected to close during the first quarter of2004, subject to the waiting period under the Hart-Scottcustomary closing conditions and the expiration of Rodino Antitrust Improvements Act, and is expected to be slightly accretive to Express Scripts' 2004 diluted earnings per share.
1. CuraScript wil enhance Express Scripts' ability to provide comprehensive clinical services in many disease states and improve the quality and affordability of specialty drug therapy for clients
and patients. The specialty pharmaceutical market is expected to grow 20 to 30 percent or more

annually over the next 3 to 5 years as there are over 350 products targeting more than 200
diseases in the

biotech pipeline today.

The acquisition delivers a number of strategic benefits to both companies including greater scale and complementary service capabilities. Serving over 175 managed caæ''SJ2:anizations, 30 Medicaid programs and the Medicare program, CuraScript operat~' six~pécialty pharmacies throughout the United States. CuraScript has a broad product offeHnwith particularly strong capabilities in oncology, rheumatoid arhritis, multiple sclerosis and other complex chronic therapies. It has a solid reputation for quality and expertise in the specialty market, which will enhance Express Scripts' competitive positioning.
"CuraScript shares our client-centric focus for managing specialty drugs, mutually reinforcing the both companies' business models with the interests of clients and patients," said Express Scripts. "Domenic Meffe and his Barett Toan, chairman and chief executive offcer of job building strong capabilties in many disease states, offering team have done an outstanding comprehensive clinical services and developing significant managed care relationships. We at Express Scripts share CuraScripts commitment to providing the best possible patient care, and together with CuraScript, we wil be able to drive better savings for our clients. Weare pleased that CuraScript'~ management team will lead our specialty pharmacy group going forward."
alignment of

"

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EXHIBIT

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UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE

IN RE: . Case Nos. 00-3299(MFW) and
00-3300(MFW)
. (Jointly Administered under)

CORAM HEAL THCARE CORP. and. 00-3299)

CORA, INC., . 824 Market Street
. Wilmington, Delaware 19801
Debtors. . January 22, 2004

. . . . . . . . . . . . . . . . 9:41 a.m.
TRANSCRIPT OF HEARING BEFORE HONORABLE MARY F. WALRATH UNITED STATES BANKRUPTCY COURT JUDGE

APPEARACES:
For Cerberus:

Schulte Roth & Zabel LLP By: MICHAEL L. COOK, ESQ. HOWARD GODNICK, ESQ. NIKHIL SINGHVI, ESQ. SOPHIE KIM, ESQ. 919 Third Avenue New York, NY 10022

For Chapter 11 Trustee: Schnader Harrison Segal

& Lewis, LLP

By: BARRY E. BRESSLER, ESQ.
WILLIAM KIPNES, ESQ.

RICHARD BARKASY, ESQ. MICHAEL BARBIE, ESQ. 1600 Market Street

Suite 3600 Philadelphia, PA 19103
Audio Operator:

Jennifer M. Patone

Proceedings recorded by electronic sound recording, transcript produced by transcription service.

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Shestack - Cross/Bradford 47
1 just mis-typing.
2 Q And, in fact, your own final report indicated that the
3 range of value identified by the investment bankers at the time

4 of the CPS sale was as high as $100 milion. Do you recall
5 that?

6 A Yes, I think that on CPS the argument goes both ways. The
7 plaintiff would argue that it was unnecessary to sell this, and

8 in the future this would be profitable, and while it mightnot
9 be a crown jewel at this time, once it was polished and buffed,

10 it would indeed be a crown jewel. On the other hand, the
11 defendants would say, look, they needed the money, and they

12 needed it then. They needed to get in a better position with
13 their debt, and when you need the money, you sometimes sell
14 things that you don't want to sell or wouldn't ordinarily sell,

15 and that the process by which they went through in selling it 16 by getting Deutsch Bank, Alex Brown, to give an opinion by

17 having some 40 competitive bids, by rejecting the bids, by
18 getting more than the last bid was a reasonable fairness and

19 shows the entire fairness of the sale. But even if you say
20 that they would come out on the short end of that, what you're

21 talking about is a limited sale that doesn't result in anywhere
22 near the $300 millon damages or the figures that the
23 plaintiffs claim -- that the plaintiff would claim.

24 Q When you say that the company needed money, these
25 projections would show that the cash requirements of CPS over

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Shestack - Cross/Bradford 53
1 A Yes, normally the Court is reluctant to put in a
2 rescission, because there are other parties in effect. So it
3 would assess what the difference is between a fair value sale

4 and allegedly an unfair value sale. That would be the likely
5 way the Court would handle it.

6 Q Okay, and, in fact, under rescissory damages, if the Court
7 awards rescissory damages, it generally looks at the fair

8 market value of the asset at the time it awards those damages
9 and gives the plaintiff what that asset would be worth today 10 rather than what it was sold for back at some time in the past.
11 Correct?

12 A I'm not sure of the answer to that.
13 Q In fact, the Tristar Picture case, which you referred to
14 earlier, discusses that concept. Does It not?

15 A The Technicolor case?
16 Q Tristar Pictures at 634 A 2d 319.

17 A What's the full title of that case?
18 Q i believe it's In re: Tristar Pictures Litigation.

19 A I'm not sure, but that concept is discussed in other
20 cases.

21 Q And are you familar with the fact that the CPS operations
22 were just sold a month ago by the part that acquired them from

23 Coram?
24 A No.

25 Q I'd like you to turn, if you would, to Exhibit 150, which

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Shestack - Cross/Bradford 72
1 Crowley and that was paying Crowley for some responsibility for
2 his conduct.

3 A It's possible, but there's a lot of testimony that it was
4 meant as a consultant agreement, that it was never exercised,

5 and that testimony never seems to have been refuted. There's
6 considerable testimony about that employment agreement, what it

7 meant, whether counsel took a form agreement rather than
8 customizing it to Crowley's case.

9 Q Now turning, if we can to the RICO claims, you would agree
10 that if the company succeeded under RICO, that the damages
11 would automatically be trebled, and it would recover all of its

12 attorney's fees. Correct?

13 A Yes.
14 Q I'm sorry. I didn't hear the answer?

15 A Yes.
16 Q And you agree that the Supreme Court, in fact, in some of
17 the decisions you testified about on your direct testimony have

18 said -- and I'm quoting from the Sedima decision, 473 U.S. 479,

19 "RICO is to be read broadly. The lesson -- this not only the
20 lesson of Congress self-consciously expansive language and

21 overall approach but also the express admonition that RICO is
22 to be liberally construed to effectuate its remedial purposes."

23 A Well, Sedima, the issue was did it apply only to criminal
24 proceedings, or did it go to civil proceedings of an ordinary

25 kind, and I think Justice White gave that decision -- or

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Shestack - Cross/Bradford 73
1 whoever it was who gave the decision made the point that

2 Congress did not limit it to just criminal activities, and,
3 therefore, it had to be interpreted more widely, and he wasn't
4 saying that within the civil context it had to be interpreted 5 more widely than the act itself provided for or what was
6

interpreted later on in other decisions later than Sedima.

7 Q In fact, the Third Circuit en banc in Tabas vs: Tabas made
8 it clear that RICO included cases that would ordinarily fall

9 into the category, quote, of common law or garden variety fraud
10 in which in the past would've been the subject of commercial
11

litigation under state law."

12 A Would you mind repeating that question?
13 Q Sure. You're familar with the Third Circuit's en banc
14 RICO decision in Tabas, T-a-b-a-s, vs. Tabas 47 F 3d?

15 A Yes.
16 Q And in that case the Court recognized again that RICO is
17 expansive, and that it applies to cases that in the past
18 would've been deemed, quote, garden variety fraud or the

19 subject of commercial litigation under state law?"

20 A Well, that general statement, yes, but in that particular
21 case they also dealt with the continuity issue, and 12 months,

22 which was longer than the continuity here, was insuffcient.
23 Three years in that case wasn't -- and then they also dealt

24 with the Babachek factors which -- and which was a great
25 division in the Third Circuit as to whether they applied or

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Shestack - Cross/Bradford 74
1 not. That was kind of a complicated case, and that one
2 sentence you read isn't a fair characterization of that case in
3 Judge Ross's opinion.

4 Q And, in fact, there are three different grounds of RICO
5 violations alleged in this complaint, what we've called the B

6 claim and C claim and the D claim. Correct?

7 A In the potential complaint here? Yes.
8 Q Yes, and essentially, the B claim -- let me withdraw that.
9 Each of them require a pattern of predicate acts. Correct?

10 A Yes.
11 Q And for a B claim the pattern of predicafe acts has to be
12 in furtherance of a scheme to acquire or maintain control or an

13 interest in an enterprise. Correct?

14 A Right.
15 Q And in a C claim the defendants have to conduct the
16 affairs of the enterprise through a pattern of predicate acts.
17 Correct?

18 A That's right.
19 Q And the D claim can be a conspiracy to do either of those
20 two things.

21 A Right.
22 Q Okay, and let's talk, if you would, about the B claim.
23 That is a pattern of predicate acts for the purpose of

24 acquiring or maintaining control or an interest in an
25 enterprise. Okay?

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Shestack - Cross/Bradford 75
1 A Now would you give me a moment --

2 Q Of course.
3 A - to kind of get some of these cases I have here?

4 Q Tell me whenever you're ready.
5 A Okay.

6 (Pause)
7 A Okay.

8 Q Now with respect to the B case, you have no dispute that
9 Coram qualifies as the enterprise. Correct?

10 A In the B claim, that's right.
11 Q And, in fact, an enterprise is generally just a legitimate

12 business that some -13 A Yes, I think that's -- right. That's not true of the C
14 claim. i think that's true of the B claim.

15 Q And, in fact, with respect to a B claim, the U.S. Supreme
16 Court has said that the enterprise wil ordinarily be the

17 victim. Correct?

18 A In the B claim.
19 Q In the B claim.
20 A Yes.

21 Q And that's, because the defendants who are bad guys are
22 trying to acquire an interest in this victim innocent

23 enterprise for a pattern of predicate acts.

24 A Right.
25 Q That's the theory. Right?

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UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE

IN RE:

. Case Nos. 00-3299 and

00-3300 (MFW)
Chapter 11

CORAM HEAL THCARE CORP. . (Jointly Administered under

and CORAM, INC., 00-3299)
. 824 Market Street . Wilmington, Delaware 19801

Debtors. .
March 4, 2004

. . . . . . . . . . . . . . .. 11 :17 a.m.
TRANSCRIPT OF CONFIRMATION HEARING BEFORE HONORABLE MARY F. WALRATH UNITED STATES BANKRUPTCY COURT JUDGE

APPEARANCES:

For the Equity Committee: Jenner & Block, LLC By: RICHARD F. LEVY, ESQ. C. STEVEN TOMASHEFSKY, ESQ. ANDERS C. WICK, ESQ.
DAVID J. BRADFORD, ESQ. TERRI L. MASCHERIN, ESQ. One IBM Plaza

Chicago, IL 60611
For Cerberus Partners, L.P.: Landis, Rath & Cobb, LLP By: KERRI KING MUMFORD, ESQ. 919 Market Street

. Wilmington, DE 19801

Audio Operator:

Brandon J. McCarthy

Proceedings recorded by electronic sound recording, transcript produced by transcription service

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Liebentritt - Direct 158
1 Q And what was the purpose of that letter?
2 A The purpose of that letter was to solicit votes for our
3 plan. And as we indicated in the letter, we also thought it
4 would be okay that if -- and this was sent to the unsecured

5 creditors of both Coram and Coram Healthcare Corporation. We
6 indicated in that letter that it would be okay for them to vote

7 for both plans on the premise that that would best assure to
8 them that some plan got approved and allowed this Court to
9 choose which was the best plan.

10 Q Has there been any change in circumstance since the
11 Trustee's plan was filed that affects the Equity Committee's
12 evaluation of the Trustee's plan?

13 A Certainly, I think the performance of the company has been
14 significantly positive over the past six months as indicated by

15 the financial results we've seen. Although this slightly
16 proceeded the filing of the Trustee's plan, the whole -- what
17 we learned in the process of the Crowley motions I think

18 certainly enhanced the value of the lawsuit. The CPS
19 transaction I think is an indication of a lost opportunity that

20 was a result, I believe, of someone who was trying to sell off
21 assets for the benefi of reduction of debt prematurely.

22 Q Why did you consider the recent CPS transaction to be
23 relevant to the Equity Committee's assessment of the Trustees
24 plan?

25 A I think what that showed us, and albeit in hindsight, that

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UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE

IN RE: . Case No. 00-3299 and 00-3300
. (Jointly Administered under
. 00-3299)

CORAM HEALTHCARE CORP. and .

CORAM, INC., . 824 Market Street
. Wilmington, Delaware 19801

Debtors. .
. April 7, 2004

. . . . . . . . . . . . . . . . 9:37 a.m.
TRANSCRIPT OF CONFIRMATION HEARING BEFORE HONORABLE MARY F. WALRATH UNITED STATES BANKRUPTCY COURT JUDGE

APPEARANCES:

For the Equity Committee: Saul Ewing, LLP By: MARK MINUTI, ESQ. 222 Delaware Avenue, Suite 1200 Wilmington, Delaware 19801
Jenner & Block

By: C. STEVEN TOMASHEFSKY, ESQ. RICHARD F. LEVY, ESQ.
One IBM Plaza

Chicago, Illnois 60611
For Cerberus: Schulte Roth & Zabel, LLP

By: HOWARD O. GODNICK, ESQ.
MICHAEL L. COOK, ESQ. NIKHIL SINGHUI, ESQ. S. KIM, ESQ. 919 Third Avenue New York, New York 10022

Audio Operator: Jennifer M. Patone
Proceedings recorded by electronic sound recording, transcript produced by transcription service.

J&J COURT TRANSCRIBERS, INC. 268 Evergreen Avenue Hamilton, New Jersey 08619

E-mail: jjcourtcæoptonline.net

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Hurst - Cross 78
1 THE COURT: All right. What's the exhibit number?

2 MR. TOMASHEFSKY: 250.

3 THE COURT: 250?
4 MR. TOMASHEFSKY: Yes.
5 THE COURT: Thank you.
6 Q I'm showing you now, Mr. Hurst, a document that's marked

7 EC-250. That's the copy that you produced to us that had some
8 writing on it, isn't it?

9 A Yes, it is.
10 Q And that's your handwriting on page six?

11 A Yes.
12 Q Okay. And while you were reading this DeloiUe report,
13 you made the following note in your handwriting on it, as

14 reflected in this exhibit. "41.3, 12.2 L TM, Curascript 335

15 Curascript .8, CPS Curascript." Is that right?

16 THE COURT: I'm sorry. What page were you on again?
17 MR. TOMASHEFSKY: Page six.

18 THE COURT: Thank you.

19 MR. TOMASHEFSKY: This is the handwritten note.
20 Q Did I read that correctly?
21 A Yes.

22 Q And that refers, doesn't it, to the recent sale of
23 Curascript, which was Coram's former CPS subsidiary for 335

24 millon, doesn't it?

25 A Yes, it does.

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~

THE UNITD STATES BANKRUPTCY COUR
FOR TI DlSRICl

OF DELAWAR

In re:

Chater 11

CORA HETHCA CORP. an
CORA. INC.,
Debtors.

Case No. 00-3299 (M (Jointy Adminis)
Qi ~O$\ ) YOSd ,405"1

ORDER CONFIRMG tHE CHAPliÜ~ 11 TRUSTEE'S SECOND AMENDED JOIN PLA OF REORGANIZATION

. ( .

WlRES, on May 2, 2003, Arl!n M. Adam, the Chapter i J Tni'\ee of the

above-

lÄtioned banktcy estates (the ''Tnistè''), tied the Oiater i i True's Joint

RlXlrgizati (ll "Orgi Plan"), whch Pla the Tnie suseqently amended or modified
on June 17, 203 (the "Amended Plan"), Septembe 8, 2003 and

- .. -

Plan of

Apri 15, 200 (the "Second
Amende Plan")

(a copy of the St:nd Pla is annexed herto as Exbit A);

WIIHRli.AS, on June 26, 2003, fue Court enteed an Order (the "Solicitaon Örder'') tha

amng other Uùgs, (i) aproved the Dilosu Statement i under Section .1125 of the
Bankrptcy Code and Fi:. It Bank. F. 3017, (b) approved the form a,4 method of

the notice of

Conftion Hea (Ute ''Cufi!faton Heag Noti~") and (e) esblished cer
prre for the solicittion antibuJation of

votes wi res to lhe ì\cii' flaa;

WI i EREC:, the C.ortiion H~ Noli toBcthec With the (i) the Amede i~
. (ii) th~ Disclosur StafC't~ (il) the Solicitaon Order, (iv) th apppñae ballof('i an vo
insctons, an (v) a praddred return envelope (con~vely, a "Solicimton Pacta'1

'lIilless oiherwisc defnedlierin, ¡¡II capÎt;ilii.e tenns dill have thcs:mc meanings 13cribcd to them in the Plan.
.rHO"'TA 12344\1°_~

.--;

DEP. EXH. #
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wer.

trsmitted in the maer se tort in the Disclosu Statement Orer, an su seice is
provided by Fed. R. Ban. P.3017(d);

adequae as

WH, the Trust fied die: (i ceficatin of publiaton of Jacueline
HasIbuer, pri clerk of

the New York Tirne$, attng to the1àt lht th Cotion

Hea Notice wa publihed in the New York Time:; on August 20, 2003, an (ii) cecation
of C'ir Paer, adverin cler of die Wall Steet Journal, attesti to Ibe fa tht

the

Cofirmtion H~ Notice was publi in the Wall Stre~ Joural on August 20,2003;
WHREAS, on Jiue 9, 200, Henr Colvin of Alixar~ LLC, the cla agent
appointe in these bakrupk;y caes, filed th Alvit of Hen Colvi Cefyg

the Balls

Accting or Rejteûng the Ch i i Trutee's Amended Joint Plii ofR.rgzaon,
Purwant to Chapter i lof the Bantcy

Coe Proposed by the C1aptc I i Tnl1ee Date June

1: 200 (the "Voting Repór1");

WHEREAS, on September 29, 2003, lhe Tnitcc fi the Pla Su¡:tement with re-p

to the Amended Pla;
WIIERF..S, objectins 10 confnaon of

the Amen Pla were fied (colleávely, tlit:

UOhjec~');
WlIRRF.AS, th Cour held confion he with respe to the Amended Pla, as
amnde by the Seond Amendo Pla an a co pla of reon tledby the
Equity Committee, beginning on Seterbe30. 2003 aí Cnii (in Ap

20, 200i

WHEREAS, fullowi th conclus or1l coon heas, th Tniee the
EquitY Conuitìe an the Noteldcr su~UC post-cotin heg briefs ànrey

brien; .

WHRE. on Scpiabc 10,200, the Tru filed a Stipuation beee ihe Trutee

and the Equity ('-OUc reg;g th Sccrt Amended Pla (the "Ston');
2
lHDAlA ri34490_1

SL 001658
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I l

WHRE on Ocobe 5, 200,

the Co issued an Opinion (the "Opinion'') and Orer

(die "Otet):. (ì) denying ootian ofütcEqity Commllre's plan; an (ii) sti tht the
reuet by Ui Tro fu confin of the Secnd Amened Plan would be grte provide
lhi the Secnd Amende Pla Wl1 mofied inacrdce with the Opin (coies of

the

Opn an Onei are awexed her as Exhibits B andC, resvely); an

WHREAS. on Octobe 15,2004, the Tru..ee fi with the Cour th ~odUDn of

Chapter i i Tru's Send Amen Joint Pla of Reorgon in Accordce wi Opinion
and Or Date Octbe 5, 2004 (the "Plan Modcation," and toget with the Se
Amended Pla tlc"Pla") (a çopy oftle Pla Modificati is

annexed as Exhibit D).

NOW, THERORE. rr is HEREY FOUND AN DETRMINED TH T:1
I. Exclusive Jurion: Venue; Core Proæine: (28 US.C. §§ 157(b)(2),

1334( a)). Th Cour has jurisdicton over tie. I!anlatc Ca and th Plan pursaQt 11 28
U.S.Co §§ 151(bX2XA)& (L) & 1334~). Vcnue.is-properpuruantto 28 U,S.C. §§ 1408 &

i 409. ConfnntioJi ofuie Pla is a core prOÚig puruant to 28 U.S.C, § IS7(b)(2)(A)&)

and th C'.ort ha axliIivejurdicton to determe wht:er ll PIi colies with the

applicale prviions of tle Banky Co and should be coTÌnn.
i. Judicial Notke. The CoUt taes judicial notice of the dockt of

these

Baiptcy Ca mataned by th~ Cler of

the Banltc Cort ~or ils duly-apinte

agent, ioi~ wifhutlilalin.itplcadings and olherdoenfied. al~ enteed
and èvier and aieut moe; pro1lcr or aduce at the heags held befure th
Bimtcy Co duñg the pelidei)' of the Bany

Caes

21'Uri to Fed. R. Banlc. 1'..7052.:1 made applicale to contesed matter und fed. R. Bakr. r. 9014, finding:
of Cael shall be COtrued as conclusons of IKw and conclusions of

apropr:ie.
3

law .sbill be constred as finding3 of fac whcc

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3. l:ii o(Plof 11 Tru has the bun otprvi the elementS ofSection

1129(a) àn (1) otth Bankrtc Codebya praxnderaoftle evidence.
4. TrdIttl anMailigofMars: Notice. The Solicittion Packa was
timitted and seed in llrdce wi th Solicitation Ord an the Bantcy Rules an
Iluch IrdliUa an seoe wer adeq an suffient; publication

Heag Noti~ as se fod lilh cefication of Jacqueline Haslbaue of the New York Times

. .
of

the Confn

an C'irg Palmer of

the Wall Stee Jour/lOT were aduate an suffcient, and no other or

furer notice was Tequire

s. ~. Vote to accand reject

the Amended Plan have bee solicited and

talat farl:y, in go faith an iii a manner conssfct with thc Bantcy Coe, the
Bakniptcy Rules and the Solioitation Ordet'.

6. PlanComolj~ with Banp(Code (II U.S.C. S t 129(i)(l)). The Plan Complies Wi the appicale prviions oftb Bant.y Coe, theteby salifyg Section
l 129(a)(1) of

the BanptcCoe.
(a) Prpe Classifcation (I I U.S.C. 1$§ 1122. 1123 (8)(1 ). The Cla an

Equity IIte plac in eah Oas âr substiy simila lD other Clims an Eqinty
Interts, as the ca may be in eah such Cls.

Vald busiess, factal an lega re exits

for'sely o1a~ the moo Oa oCClai and Equity aite crted unde Uie

. PIaaß su Cl~ do noturfairtr diSèùite beee holde orCl and Eqit
Inte ThUs tliePùisafies Sec 1122 and l123(aXl) oflhe Bankrtcy

Coe.
4 of

(b) SPcficd Unire Classes (11 U.S:C. S 1123(a)(2))- Artcle

th

Pla specifes th Cla 1 an 2 ar ui under tha Plan thy Såtiying Section
i i 23(aX2) of

the Banknptcy COe.

4

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(e) Spefied Tre!ment ofImpaire Classe& (lllJS.C. S 1123(a)(3)). Artcle
4 of th Plan desgnte Clas 3, 4, 5 and 6 as imre anlhe Pla spcs the trent of .

. Clas and Equity Inlcts in tl Clases, thery sasfyng Seon i 123aX3) ofth
Bankrtcy Code.

(d) No Disrination (ll U.s.c. S.1I23(a)(4)). The PIa prvides for

the

sae trtmt for eah Clm or Equit Inter in each re.pelìve'Oas unless th holde of a

pacuClni or Equity Intetet has agd

to a les mvorolle trtmt ofsueh Clai or
123(aX4) of1he Bantcy Co.
Plan (11 V.s.C. S 1123(;\)(5)). The PIa an the

Equity Inte therey saisfYg Secon I

(e) Implementation of

. varous documents and agments se fort in the Plan an the Plan Suplemen provide

aduate and prpe mea lòr the Plan's imlementation. thery safyrig Sætion 1123(aX5l

oflhe Bantcy Çöc.
(f) Non-Voti!! EQuity Se6nti (11 U.S.c. § 1123(a)(Q)). Artcle5.4oflhe
Pla provides tht the

Ccficatc otIncoí:rati an Bylaws ofReorganiii Coiam. shall be

amended io satisfy the provisions of

tie Pla and the Barptcy Coe, includg to prohibit lhe

i!luac: ofnonvoligequity secties. ThUs th reirents ofSeon il23(aX6) oftfe

Batcy Coe ar satified.
(g) Dci2Jtion orDiirs (11 U.s.C. ~ 1I23(a)(7)). Artcle 53 ofila PIa

cota piVioo with.~ to the maer of selecon of direors of Reo~iz eora
th ar coiStenl with th inl.ls of acrors eqity serity hO~land piic poiK:Y in

accruance with Seon 1123(aX7) of

the

Baptcy Coe.

(h) Addtionl Plan Provisiolls (i 1 U.S.c. Q 11 iJ(b )). Th l('s prvision
are approprate and not incoJlìstt wìlh lhli aplicable prvison of

the Batc Coe.

5

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6

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11. No RateChanges(l U~~.C. § i 1

29a)(6).

Af

conon

oflh Plan

Reorged C.omrils busineses wil not involve raes esblished or apprved by, or othSe

sujec to, any govemtal relatel) common . Thus, Seon 1 129(aX6) oflhe .

Bantcy Cod is no applible in the Hapt Caes or with respe to the Pl
12. BcsInterts of Critors 01 u.s;c. & i 1

29(a)(). ThflasaesSecn

I 1

29(a)(7) Of the Bankntcy Code. Ea holde of anim Cia or Equity Interst either

ha aoled the Ilia" ot wi rcvc or rein un the Pian on acunt of su Claim or Equity

Interest, pro or a vukie, 3.'\ of tlie Effecve nate, tht is not les ib tñe amount tbsuch
holder would i:ve or retin if die Deors wer liquida under Chapte 7 of

the Bankrpt

Code on suh date.

13. Accnce bv Ccin Classes (ll~U,S.C. & i 129(a)(!tl). Classes 1 (Pnonty,
Non- Tax Claim) and 2 (Sec Claíi)o-t~ Plan ar Clases of unimpaire Claims that ar

. conclusively pr to have iicp the Pla under Section 1 Clases 3 (Gener.iIUnseced Claims) and

126(f) of th Bantcy Co.

4 (Cora Prefered Stock) vote to aCept th Plan in

accordce with SeiiOIl 1126(c) and (d) oftle Banptcy Code. Class 5 (Cora Equity

hitcr) is not entited to i:vc orretn any prpe uner the Pla an therefor, is deeed
to have rejec the Plan puruat to Seon I 1

26(g) of the Baiy ('.o. Clas 6 (eRe

Equity Interets) voted to rejt fie fla.Aldiough Soon 1l29aX8) ha not ben safied
. wi re to Cl 5 :u ~ thePlais'oonfilc beuse the

Pia Satifies Seco

1

129(b ) of die ßanptc Co wi re to sth recctig Clc;.
14. Treúnoo of Adminive &i J'rfY Claims (l i U.s.c. $ 1129(a)(9)). The

trtment or Adi.'idli C1aÎmi an Pnorlty Oaim pu to AIcles 3 ii 4 of th Plan
saes tl reuireents of8ccons 1 J29a)(9)(A) wi (B) oflh Ban Coe, an

the

7

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trtmtorPrTax Clain put to Arle 3 of

the Pla satifies the reuits of

Sectin 1129(a)(9)(q of

the BaptcyOxe.
Clas' of

15. Accptnce By liiwtOases (II U.S.C. ~ i 129(a)(10)). At leat one

Claims agat the Ders tht is im under the Plan ha ac th Pià dctcd
wilhut inludin any acÌa or th Pia by any imider, thus sag th reiits of
Section 1129(aXlO) of

the Bankrptcy Coe.
the Pla is not

16. Fcasibiltv(ll U.S.C. ~ 1129(a)(11)). Corûon of

lily to be

follwed by th líauidàtion. or tIie nee for fuer ficial rergiztion of Rooigin

Cora thll" safyig the reuireOitl of Section 1129(a)(ll) of th Banptcy ('.oe.
17. c Payment of

Fee (11 V.S.C. § 1129(a)(12)). All tèe payale uner SeCtion 1930

oentle 28 of

the

Unit

cd Sttes Co have be pad or

will be pad pur6UlUtto ArCle 13.2c)of ...

the Plan on or before the Eifccve Date.
18. Continuaton of RetIre Heefitl (Ii U.S.c. § 1129(a)(13)). .Acle 5.12 of

full

Plan provides tht pursuant to Secon 1114 of the Banptc Cod, payments, if any, due to

any pen l'r the pii of providing or rembuin paymts for re emloye and lhei
spuse andqts fumcica sul or hositi ca beefits, or beefits in the event of
sicknes, acdei, dii;biity or dea Uiider any pl3 fwid or progr (thugl 1h pu of

incc or otlierwi.';e) mainta. or estalis in whole or in pa by the Deto pror to the

letil Dat, shaUbe((n1fcdfor tbedulion ofthipe lheueor have oblie~
lhlves to proVi suh baofit; provi however, tl R~igi7.e Co re any right

Co mofy any an atlsuc pla fu an prgi in acrdce with the te thereof.
Th the reuirements of Setin. ni9(aXl~) of th Bantc Co ar satisfied
19. Faland E£uitalcr No UnfiiDisation (11 U.S.c.§ ll29()). Class

5 is

deemed to haverett the Plan and Clas 6 vote to rejec the Pla (~Uecvely. the
8
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"Rtiecl~ Cles"). 1h Pla do nol di uny and is far an eqle wI
iet to the Rejectig CLaS as require by Section 11 29(b Xl) and (2) of the Banptcy

Coe. Upon conftion and the (Kec of th Effective Date: tlé'Plai sh be binng
upn th mem ortte Rejecg Cl.
20. Pricipal Purv of

the Pla (11 U.8.C.9 1129(d)). 1l prpa pue ofUie
taes or th avoidce oftl applicaon of Seti 5 of

Pla is ii!he avoidce of

the

Secrities Act of 1933, as amendc.
21. Modifications to the Plan Th mofication of

the AmenclPlii set fort in the

Sed Amended Pla an the Pla MocIficaon coslìutc tcical cbaoges anor chaes
with re to partcula Claim and EqtÙty Inter adverlyal"Cte thereby by ageeent

wiOi and th consent of-the hol(ier of su Oaims an F.quiy Iniets an do not maerly
adverely afèç nrchai~ge the trtment of any othei Cla or Eqty Intets. Açcnly,

pursuant to Banpw Rule 3019, these moficaons do 1101 reuir aditional disclosu
imdec Setion 1125 of the Banptcy Code or leJicitaliòn of

vot under Socon LLZ6 of the

Baiptcy Code, nor do they reuir tht holde of Claims or Eqity Inero be affrded.1

oprtnity to chge prviously cat aceptaces or rejecon6 of the Amen Plan.
22. Good Faith Solicitåtion (1 I U.S.C. ç 1125(e)). Baed on the £eCOId before Ute

BaptcCour in thes HalcyCa th TlUtee,the Deblo Alixarers LLC.any

DisbutAget, th Noteholde, lhe EqCOtt and thej( i'e mcm~,
offce dirrs, employee, agents coun or oth profesions have acte in goo fath

wilb tm mcag of Secon l125e) orthe Ba~ Code in complian with the appliC3le

pmvion oftl Baikpt Code an lh Baiikmptc Rules úi COection with al tfeìr
rÇpeive actvities desribe in Secon i i 25 ofUi Baptcy Coe, an ar entled to th
prtecns afforoed by Section) 125(e) of

. .
B437

the Baptcy Coe an the eiculpation prvisions
9
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se furl in Arcle 9 of

the Se Amed PIa,as moded üi confrmity with the Opnion

byth PIa Modfion.
23; .Ation ofExccto Omtracts mid Uncxir Leases. Arcle 8 of

the Pla

govering !he asmption and reecti or execry contrct an unpired leaes sasfies the
. .' reuits of Setins 365(a) and (b) of the Bàtc Code. The ¡içsinpiion of those

. .

execor contIct an unexpir lea'l to be assume in iird with th Plan is indie bet

intees orlhe De~, tleìr estates Rcorgan.. Coni and aU pares in inte in lhe
Bakrucy Caes. The assignment 1. Rergiz C.or'd! of those ased exectoiy contrts

an imcxir leaes to wmch lIe Detors ar a part an of any cxutry conti and
imcxir leaes hereofore asumed by the DebQl- dung the Banptcy Ca is ùt th best
interest of

the Debtors, thir eslale Rcrgaize Cora and al paes in iute& in lhc

-. Bantcy Cases. Th Pla and this Confition Order each adetely provide for the
timely

paymen orcu amunts. if an, Ii Cah in ~rdce with'Sedion 365(Xl) of the

Bankrutcy Coe.
24. Reiecim ofExecutoiYConticts an Unexpire Lees. 111e execut.iy contrts
. or unexit iC3 of

the Detors lii.1ed in th Pla ~ùplemai as all eicctoty oontrCl an

unexire leas to be rejecte ar bu(lsome and, as suh. the reecon thcrfis in th be

. . inte of th Ders, thir este~ ard al~ paes in in~t in

... by the linùted substive conslidtion ofth Ii Caeiaotely fo Pla puses such
25. Substie Consclidatih.

... .. .

the

Batcy Ca.

No. crof any of the Debtors .W¡1l be pnudicd

substive colidtion wi beeft all aOlo of th Detors.

26. R-Net Setemt For th renS and b8s upn the fidins and cocluson
set, fotl in the Opinion, the comprmise and setlem beee th Tnitee an R-Not,

10

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.-

.-l

iiirpratc In the Plan, is hereby

apprved pu to Iiankrupk;y Iùe 9019 an is bindg

upn all entities afoc tby.
27. The PIa Funng Agrt. For the re an baed upn th findings and

wnclusioiis se fort in the Opinon tl~ comproßÛse and seanco bewee ßie Tru and the
Noteholde th is iirpr.tci in th Plan. is her aproved and is bining upn all entities

affec therey. 28. Satti OfC..nfimlÍotl Requirement As prvide herin an in the

Opinion, the Pla satifies the requieiitsfu cofition se for in Seûon 1129 oftle
Banhuptcy Coe.
29. Rcrti of Juro;ictoo The Banrc Co may prpey rcjuriction over the mattci set fort Ú1 Artle 11 of the Pm~d Secon 1142 of

the Bantcy Coe.

DECREES

NOW, 1HFORE, rr is HEREBY OJIERED, ADJUDGED AN DECRED

TIT:
30. Confiatioii ThPJa (wluch wnSisb¡ of

the Secnd Amcd Plan as

modilod by lle Plan Modficaon) is apprved and tonfnned under Sotion i i 29 of lle
Bankrptc_Coe. The timns oftf Pla and th Opúion are incorprate by refer in an

ar an ii pa oftliis Conftion Order

31. TtdWal AmeoentS. . Th~modficatioi1 and ameneilsto ai AIed

Plan reflec ii lh Stnd Amende Pla an Pla Modifitin. mee the n: of
Secons 1127 orlb Batcy Qide, suh modifiti do not advery clgc th lrent

of any Oeditor or an Eqtylnl of wlch th holder ltnot CQnste th. an thus no

fiia solicitaon or voting is re

ii

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,

J2. Objecns. Ce of

th

obon to the Pla by

the EqityCott ar

. addred in the Opinio. An other objecon tht have not be withdrwn. waived or seled
ii al realoi of

rights pein to confon of 1h Pla inlud tæein ar

ovemiled on the mets.

33.. Plan Supplem The dots contain in the Pla Stilem an any
arendmcnls modtions, and suplemt:ts theiet ar inr br referce into and ar

. aninlegrl pa of the Plan~ all doents and agrts relawd tho Of to consummation
and inlt:entation of the Plan and the

execti dclei, and peormce thfby

..

Roonvoo Cora ar authonzed and apoved. Wìlhoilt nro for fu order or
audiorition of

the Bancy C..ur,tlm Tru the Debtors and Reorga C.ora ar eah

author an emJlwer to mae any an al modficatior to any an all doen incl~
as pa of the Plan Supplemen tl do not inerly modfy the tes of such doi3 and
ar coil8iStent with th Plan
34. Relnx:tiirngTninsactions. The Trustee, thcDcbto an Red

Cota are

I

authonz to tae al i.1ep and to exece an deliver all douments, nesa 1ó ìmlement
an efectute

the Plan an the tron contemlated by the Pla

35. Plan Claifcaon Contnin~. The cliifition ofc'1aims an Eqty
. Intere for pu of lhe Distbuons to be mae unde the Pla sh be govered oolaly by

I

the tc offhe Pia.' '¡he clificaons se for on the Balots ten fo or re by the
Oers' ccitors and equity sety hol~ in coniecon with votig on the Amde Pla
(a) wer set for on tlBats solely for pu ofvoting to acç¡or

reject.hePl (b) do

not necy reret, an in no even sh be deed to mod or oth afec 1h
ac clasifcaon of suh Clms and Equi Interest und ll Pla for distribuli puse.

. and (c) shall not be bindi on ihe Dekx or Reo Co
12
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f
contrts or unired lea to wmch th~ Ders ar paes, unes su contt or lci-e (i)
was preously ased or raec~ (ii) prviously exir or tered pimua.t to its own
. ta, or (¡it) is on a lìst of exècoiy conticts to be reeced contaed

in the Plan Sulemt

Puruant 10 Setion 365(t) and i 123(bX2)ofthe Banlclcy ('..e, an in ace with

Aicle 8 of th Pla the Trn is autrize to asgn 10 Reorg Co and Reorgan7.c
Cora is authorize to assume,any exectory coticls and unexir ieaes tOwhch CHC is a
pary (and which ha not be rejecte.

I . i I

41. Cur Am in Connection with Aspton With repect to eac exector
COtmct or iuiexprred leae aSlum by the Tnitcc or the Detors, any monet amunts
reir as cure payments shan be sasfied by Reorgized Comm'spaymenloflhc cure

. - ammmt in Cah on the EITectivc Date, at upn such,othr tc the Bankry Cour may order .
or the pares to such executmy conlrdct or unxpir lc3 othis riy ag. In the event of
- 1-

a dispte reing wlier a def,lUlt exist uner the excctòiy contrt or wixpm lea or
th innt of any cU payment, the cure of any default reuire by S.ocon 365(bXl) of th

BakrulcyCode sI ocur alt lhc cnli of a fin Order of

the Baptcy Cour relving

the dispute.

42. Rejection of ßxectQl Contrct and Unexpired :L (ll U.S.c. §~ 365( a) and
i 12.1(b)(2)). The Trnee is autri pu (0 S~lions 365(a) and.. 123(bX2)ofth
Bakrcy dxe' to ret the cxocíoiy'colr or unexir lea of

the DCbtotS lited ùllhc

Plan Supplement ReoÏ7.c Om shåU have no liabiity wt rom icjeced oontr and .
lea excet as specifca provided for in the PiaTt

43. Bar Da for Reiection Damage Qai. IT lhe reecon of an c:ociy oo.iëÎct
" or unre leae litited as rejec in the Pla Supplement, rests in daes to the olh pay

or pares to such col:ract (I 1l2, a Clùn for such d. sh be forver bam and sball
14
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.
,

not be eIorccbli: agait the Debtors, Rcrg Cora or the Debors' es. as,

propees o( inte in procs imles a prof of claim is fied with tlBatc Çour an
seed upo the Tni on or beore th (30) days aft the Eff~ve Dat.
44. Ger Aithti ThTrute and

C.òram ar ailh to execute, deiver, fie or rerd such conl, insen, reIeaes. an

olh& agree or doments and tae such actions 8S may be neciy or apopate to
effecate, inem and furter evdeCe the ter an condiuons of

. .
each of

the Detorn an Reiwiz

the Plan The Tru,

the Debrs an Reorgai.Cc and their repeve dio~, offcer mt:be, agen an
aU9me¡ ar aullnie and

empower to isue, çiecute deliver, file, or rerd any agrment,

document Ot secty, includ wiut limtaon the documcnls conta in the Plan

Supleme as modified" aidod an supp1emelte in substatiny th folm include tler

iud to take any acon nec~ or appatc to imlen1tint, effcotute and conSltc the
IJlai in acooidce w.i its terand to lake any or all corprie actionS authze to be taen
pUt to the PLan and any relea. ant, or (eStatement of any bylwi, cecates of

incorpration, or other orgon dOcents of Reorganed Cora whther or not

spificay reered to in the Plan or the Phi supiem~ without fu ord oflhe Cour or
acon by ll holder of a Claim agin or

Eqty Intet in eith(t of tl Deto~. an any oraIl

such downI$ ~haI be ac by cacl oftli rcveæ.te fi off and rccid in

. acrd. with aplicable stte titw ar sbUlecme cfT~ in ~rd wi thei tam
and the ptOvision of sl law.

45. Corprate ACtiOlL On the Effecve Date all matt prvied for un th Plan
that would otherse ICutre approval of Ute $tokholdc or direis of anor one or both of

the Dclol' or Reorg C'.o or thr su.in inter under th Plan inludi
witht limitation. the authri to Îseor ca 10 be ised the Reorg Co
t5
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Coon stok, the Reorgze C.ora PrferceStDk an docuts relat thero, the
adotion of th amende ceficate of incoiptin and iicd bylaw8 of Reoir Cor
an the russlutonof ci ie an the elecon or appointment. as the ca may be, of dirc an
offce of th Debtrs put to th Pla shl 00 in lun mIC an efec frm an af lhe
Etl::ctve Date put to Section. 303 of

the Geeil Corpration Law oftle Sta of OelawdCe

witut any rcrement of fuer:in ,by th stockholder or di of

the Debtors, the

Tiu or Reorgai Coraii On ,the Rffece Date, or as son lherter as is renably
pracale, Reorgi7.e Cora shl file its. amened cccatc of

incorpration witll the

Scro of

State of the State of nelaware and th Trutee shll fie the apte doments

to cIcclUatc th dissoluton ofCHC in acrde with applicable law. The amened cert.ficate

of mcorption andbylawsofRorg Olra shal beame: as iuicessary to satiy th. .._
provins of Ùle Plan and the Batc Cour

an slall inlud,.inter g a pro~ _ -

prohibitig the t'iceof novog eqity securties to tle exnt such a prvi is reui

by Secon 1 123( aX 6) of th Banptc Coe.
46. Rerganiz Olra Maagement. On ,die Effecve Date opetion of
~ Cora shll bome the geerl rensbilty of

th boái of dIIof
continue to have the rebilti lòr the

Rerg Co wl sh t1ierer,

1Igtt:~ coI an opori ofR¡cg Cora A$ of the f:ifecve Dale. the

Noieloldei or ,thei dcsgicssbl be ihe holder ofillofth Caita stk ofR.
Coiam and slil, constg wi the riÎrenIS 'Of Delawa Jaw. have th

. .' .
16

right 10 elec 1h

bo of dirto ofRo Cora However, as prvide iI .Acle 55 of

th Pla

-D'dniel Crowley sb not be employe or oth afiaed wi R~iz Co or any
subsdìiu Or affliae of Reorgiz Um, for .a peod of one

(1) yCa followi th Effecve

Oate.
PHOATA 123449o_1

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1
47. An Mee orSbaholder. For purpses of Seon 211 of

th De

C'JC Corpon La Act the fi anual meeting of sheloldem ofRCó Coram
sha be deeed to have taen pla on th RffeçlÍve Dae.
New Secu AB of

48. Actions bv R.manÎz C.oram; Issl)ce of

the Efe

Oate Reoridl Co is aull with furter acon un ¡¡icle Jaw, reg
nile or order, to: (í) iSsu Roorganze Cora C.ommon Sla and th Rcrg Cora
Prfered Stock as conteplat by the Pla and (ii) execute, deiive, fie or rerd any .

. docen and tae any other acon as mayb T1ec to effectute the tci and proviions
of

the PIa
49. Disolution ofComie. As of

tile Effective Date, the Credtonl Commtt

and thEqit Comm shll be dilved and ha no fu duties authrity or

re-pnsibilily, an Rergan Cora sh not have any rensibilty for fee, co1S an
. eXpet'i (If tiie. Crditors' Omtt andth Equity Commtt, its invidualllembe or lis

profeionas, inCU on un ~fl the Confion Date.
50. The Causes of Acton. As se for in Artcle 5.3 of

the Pla the Trute sh

re the ¡¡le and exclusive right, frm an afer the Effecve Date, to commece prseute,

comprse an se Ba~y Court approyaI of any setlement of any' oflhe Caus~ of

Acton on behalf oftl Oebrors' e:.t: prvied, however, Ch the Tni shal not com~
or maj¡ any

acton or caUs of ac rccaC( uner Arclc90r1h Plan Reoi~1

C"a shall be rciblc ror paymt of an Post-Effecve i) AdmistmlIve Cl rela

to th Causes of Acton. The pr of the Causes of ActOl, if an, sh be dìlributc as

foIlows: (i firs to Rergiz Coia in an amout cq to the Post~'Effecve Da
Adiiiist Oaims reatng to th Ca of Acon; (ü) se, to the holde of Allowed

Ciem:ldl Unec aa on a pro rata ba in an amunt equa to the inte scçng (at th
17
PHOATA 113H90..1

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sltoryjudgmenlraiese foti in Seon 1961 ofTrte 28 of

the Unite State co) frm the

PelÛOn Ui through th Effecve Da 011 acnt of su Alowcd'Gøi Un Cl
unt su in ha lx pad in full; ii (úi) th on apro rata bais to the holde ofCHC

Equity Inte.

51. Seties Laws Excmotn. Th offeIÛg, issu. tr. ex, and/or

distributin by Roorg Co Of sha in R. Co ar exem fr nition
uner th Seçrities Act of 1933, as amded and any i.iTnar slate or loc laws by ren of
Section 1 145(a) of

the Banptcy Code.
of

52. Substive ('..nslidaoii Up the ocrrenc

the Bffve Dale, the

Debtors' este shl be diied i;ubstanli'iely colidate, but only for the linite pu of
effeCtuatg lh seements contllat by, and ma Distutions to

the holder of Claims

.- and Equity Interts und the Plan. For su linte pu~ on th EffeceDatc (a) al

guües of eier Deto for th payment, peomice or colleCn of an obligation of the

. other Debtor with rest to an class of aiiilt or Equi Inter &I be deeed 1ete
and caceUOO (b) any obligan otone of

th Debtrs iidall gutiwilh ret to an

cla of Cla or

Equity Inte execte by one of the 0en; an any jointobljgatiQl of the

Debtor an al muitile Clai aga the Ders on accof such join obliga sha be
tred an.aUowed on as II single Clai agans the coliate es of

the Deto¡ aid

(c) ea Clim fi in th ciec 11 Ca of eier oftheDetn sha be dcficd-agaiiit
tho CO1.Wlî Delo an sha be deoda ciin againt an an Qbli of the
conslidate Delom. E~ as set fodh herein, su sutive colida wi no (oter

th for purse relate to Oisbu to be made un th Pla) (a) afec the legal enlity .
and cote stctres of eidier of th Debtor' or ReQigii: Co subjet to the iibt of
th~ Debt or Reorg cOra todlèct any tron contelate by

the Plai (b) reder

18 lIfDAT.. li.l~490_t
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vald an enforceale aginst eith Detor any CI '0 Equity Inte un the Pl for

whch it is otl not liable, ii lh liablit of th DelD for ary suOai or F.q
Intere Will not be affec by suh sutive colidaton oth ti to exngsh dupli
liil on acot of suh a Claim and (c) aff inter Ûl any ron-debtor ßftlillt~ excet as

o~twis may be reuir in COncco with any tnOD contemla by the Pla.
53. Govermental ApproV"dls NoI Retuir Th Conftion Oro Sballcotitute

al approvals aI consts rere if my, by th laws, Iules, or reultions of any st or any
oter governmenta auority wi re to the imlembtion (lr coiion of

the Pl

and any docme intrmets. or agrnts, and any amendments ornicaûon 1h~to.

andány other ac referr toinorcontemplated by the Plan, the Disc(Olur Stateent, the Pla
Sulement, and any docmets, msti or agrei and ai amendieits or

irdilcations there.
54. Exemtion frm C.c Taxes. Purst to Secon 1146( c) ofthe BankrptCy

Code, any trsfer frm the Debtors to Rrrged Cora or any othr Person pursuat to the

I~lan shall not be sijec to liy rerdg or slap ta convcyarfcc or simar ta mortge
rerdin or oth si ta or govcncita asessment. TI COnftion Orerhery

di the appprte state or le¡ govcocn offce to foreo th coltecon of any such ta
or goveental ast an to ao for fi 3n rcidg anylimc with

. paym óf Ii ta or govemti assesen
55. Ui Oaims.No Di1;lion shn be mae to the holder

of a dised Cla

or dite Equity In unti such aai or Eqit In is Allowe Fr and after th

Effecve Dale the Tni shn have th auth to comi withw or oth
relve objeçoll to Claim suecto Bakttcy Cour 3pvaI. The

to amout oflhe

Disbution attibutable to a diste Oaim or disputO Equity Intert (or sii leSr amunt as

19

lllOIlTA 124490_1

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th Batcy Co may dcl) shll be held in ree /Tm Pla Fun Ca by
Reorgi7oo Corn peg rerlulIon by the Bantc Cour or agrt of the Trustee or
holder of su Claim or Equi lnt~ il is in dite. Any Disbutin sh be ma as

soo as renably pracale aft the da that the Batc Cour en a Final Order
anowing &ucl Cl The hoder of a dis Clai or dited Eqty Inter sh not be

entitled to reve or rever any amoun in e"~ of the amount recd to pay such Cl or
Equity Ines The Trust may at an time æqes th Bakifry Co to es an

cotiugent or unquidate claim purs to Secon 502(c) of the Baptcy Cooe or oiler

appicalela.
56. Dislim¡ing Agent. Al Distrbuti uner the Pla sha be made by Rooize
. COI'dl an aU moneta distruti sl be at the dion of the Disburing Agent. If the

Disbi.ing Agent is an indepent th pa designte by the Tru toseo i~ ~h

caacity, ~h -DibuiÎn Aget shall reve, without fu Batc Cort appva
renae compeiition for seivce rend purua to th Pla an rebui:ent of
renable out-of-pocket exnses inur in connection with suc secc by Rergize
. Coram. No Disburing Agent shall be reui 1D give any bond.or su or other sety for

the per:omaice of ils duties unless othei.. ordre by lhe Bait. Cour

57. Eait Int:ls. As set toctin Arcle 4 of the Plan. al CHC EquityÌi
shll be dee caled and exngushe as of th Efective nate. lt acrdCc With

. ..
20

Artclo

. 4. Qfthe Plan iu as se for in the Stiticm i1 disuibulìns to th membe ofdas.6 (CUC
Eqty Inst) provided for Ùl Artcle 4 of

th Pla sll be ma to the Cu hold as of
the Re Date. in'

the Effece Date of eab CRe Eqty In tht wa in cx as of

accrdce with Arcle 1.55 of

the Plan, the ReoÌù Dae for the Pi ofih Pla is June 26,

PHDATA 12349o_1

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Case 1:04-cv-01565-SLR

Document 140-3

Filed 05/04/2007

Page 36 of 40

2003, the da on wbicltheorr approvig the Tru's DisclosU Stateen wa ente
upn the docket.
58. The PIa Fii A~. As of the Efecve Date ih Notolders shan be.

deeed to have ag m th 6etemnt te se for in Arle 7.1 of1he Pla an the Plan

Fimg Agrt
59. R-NetSetleent. N. øfthe Efecve Dae, R-Net shl be deed to have
agr to the sctlâl i; fort in Arcle 7.2 of the Pla and fue R-Net Settlemt Ageeent.

60. Adminsttive Ha Date. Puruat to Arcle 3.1(b) of

the Plan, the holde of an

Admtmvc Clai th arises before Ute Effecve Date olh dian an Admitrve Claim
of a"profeional employed un Secon321 and 328 of

the Banptcy Co, Of an

A.lmtive c.~ ined by the Debtoti in lh onnaiy COUIe of th Deors' business.

mu 61e an aplicati!J se alo~ of suh Admitinve c.1a on or befor the
thiret (Wh) day aft the Erective Dat. Purs

10 Arèle 3.1(e) oflhc Pia, the holde of

an Adriústtive Cl of å profesiona çiloyed wi Setion 327 an 328 of the

Ban Coe tht llse" befutlie Effective Date mus fi an applicatiori for paym of
suh ~dlItive Cl uni: Section 330 ofth~ .niuptc Co on Or befOre the thirteth

(JOlh) day alee the Effece Dale. As provided tOr ñi Aiele 3.l(d) of

the PLan AJlowoo

Aditmtive Chûn lhl mi beore the Bffve Da shan be pa fi Pla Funin Cah.

Any AlIowed.Ad.ivo Cltbt aP a~th~ffGCe &.d sliallbepad by .
ReIgdni7.e Cora ~lllot with the'

. .

Pl Funng ~.
of

61. Di:;lUe and Iniunctn. Puant 10 Arcles 10.1 and 101

the PIa the

consdertin to be distt:ibutcd to Itold of

Alowed Claim or Alowed Eqty Inter under
aU Ciai an Equity Inte of iiy

th Pla s1i coinlcly satify, die aoo relea.

nature whatsoever again'\t or in the Dcn¡ or any as prope or úiter in pry of the

21

PIID.ATA 1234.9(U

SL 001677

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Case 1:04-cv-01565-SLR

Document 140-3

Filed 05/04/2007

Page 37 of 40

Debtors to th fulles extent pCiUc by Setion 114 L of

the Bankrtcy C.o. ,Th Oebtois

. sh be discared fim any

an al Cl, inludg aaims tlt ar befurc th Confrmtion
th ki sped in

Date, and

all de of

Secions 502( (h) and (i) of th Banpti Code
det is filed or de fied uner Sooii 501 of

wheter or nOt a prof of CI ba upon suh

the ßalacy ('..e, a Qai ba upon suc det is allowed under Scction 502 of th

Ban Code, or the holder of a cla bas upon such det. has acted the Plan or an
DibttiO!llinder the Pla. . 'Ino dischae &h ac as a pèeO injuon aga amng
othèr thgs die tang of any of

and/or asse or prope of the Detois' esta. (i) the commenceent or continuation of any

. . .. .

the fonowi actions against the DeinlS, Rergan Conlin,

actin or other proing of any kind to enorce a aii agat or Equity rnlerelS in eith of
the Del.rs; (u) the enforcent; attment, èollectionor 1'vci by

an manher onneaDS of

any judgeni: awar, de or order agaist the Oetors; fil) Ute crtior, peecOl1 or
cnfair of any cnmb1'ce of any kind aga the Debl., Rean Cora or any of
Ihci or it prer llid/or (iv) th ason of any righ or seff sùbrogaon or recupment of

any kid ¡i any

obligatin

.62. Reea. Exculptions. an Injuo9ns. The reea, exulpation. and iiiimcton
provisions conlà ~ the PLan wlûch Înlprate the mocalioo to the Send Ammded

i'Ja woo in ,acce with th Opinion an set rort úi Uic Pl Modcaon, are aproved

,and i.iipmvision £hll bocffcctive and biniu up an pe ar enties.
63. Temli ofInunns an AUtomatic;'Stay. Excet as otiwse proviedúi

. th Pla or th ('..úon Orde, al i,iuons Qr stys iig im or ente dug th
Bim Ca under SectiOll i 05 or 362 of the BantC Co or otherwse. an iii
exstce on the Cofirrn ()a slil re úi rull for am efec uii tlBffve Dale.

22

rllDA TA 123449o_1

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Page 38 of 40

64. Teion ofExst Scrics Ex for ¡:cs of evienng angt to
Distnlx1ins un the Pla on th Rffocvc Da all agnts àn oth docts

evide Oams or rits of any bold of a Oa agn.'i or Eqty Ii in any of th
Ders, includig all stoc~ indenures an note, Shl be caled an deeed null an void
an of no for and

effect as ag th Detoii an Reorgiz Cora

65. NOflC?irof Effecve Date. If each condtion to 1l Eff Dat
spi.cd in

Arc(e 13, Ston 2 of the Pla li not be sasfed Of duy waived within ninet

(90) days afer the Colion Date, then (unCb'S the peod of

waiver or sition of such

conditons haS been exded with the const offue Truste and theNoteholder) the

Confaton Oroer wil be vate bY the Batcy C.(urt

66, Notce of Entr of Confiimri Or.Oii or bcfuieche tenth (I if) Busi
Day fullowi th dale of emil ofll Cofion Orde, lh T~ shall seie notíeof
ci of this Conflion Order puruant to Baptc Ries 2002(t)7); 2002(k) and 302c)

on all critors and mlit hokler, the United State Truee, and other pares in inter by

..

Causing notice of mll of ~ ConflÍonOrd (the ~otice ofConfon), to be

deliver to such paes by fu-cla nii~ postge pred T1 Tiu alo shl cau.e the
Notice of Confinlion to be publied 1I prmpt as pracale af th entr of lhis

Qmrmon 0r on in The

New York Tiit! (lat Edtion). Th noce debe
is

. heænis aqeaua ui the pácula ci~ai no oth or tùer notice

neC.

67. Nötice ofEffiv Date. Wilf five (5) BuSÍ Da fQllwi th occe
of the fiftecvc Date, Ife Truee sha file notice ofth oc of

the Effecve Date 3Jd

~l Seie a coy of Së on th ailIes which Jive .too a norooofap an rees
fu seice of pleadings in the Ba Ca.

23

('HIlArA 1234490_1

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68. BiO~ Eff Pucit to Setions i 123(a) and 1

I 42(a) of

the Banptc

Co and the prvisions oftfs Confon Or, th Plan, the Pla Dots and the Pla
SuppIc sl aply

an be enorcle notwthtang any otherwiS applicale

nonbatc law.
69. Confct Betee Confon Oroer an 'Plaii- To the ~xtei of any
,innsiscy beee lh provisions of

the Pl and this Cormtion Or,ih ta an
this

colioIl ooWn in tls cOiion.Ord sh gove. The prvisions of

Conttion Ord ar ûite with ea oth and are nonsverable and nutull dep
unless exprly state by further oier of th Bantcy Court. Th fai\~ to referce or
discusS aU or pa of any parla prviion of th Pla her stil have no effect öt thc

validi, bñg effec an enorcbil of su proviion, an suprovion sha have Iñe

sa V"dlidity, bia clcctan cillty as evay ot prÎon ofthe-P1ai
70. Modcalionver If any prvion of1h Coinon O.çer is her
mofied vacated or rcetcd by subsen or oftbisBantc Cour or any other cour

su rever~ modcation or vacation sh not al the vaidity or enorcbilty of th
Obligati incu or unet un or in cocconwith the

Plan prior to the.Q

RCörgll~ (',oi2'i: ~eit iirwr Jtti of any sum ordr unes such orer ~cay
. prvi othense.

7 i. Ell Da TI Order sh be deeed entere 11ofNoyembe 1, 200 an
'the Effve Date of

th Pla shll be Decbe 1,200. Plan En Cah un the Pla shal.
business on th bUSÛ1CS day immey prg the Btfccvc

be colc as orlhe CID of

Date:

HONORA MAYF. WAITI, .
UN STAlE BAUPCY

~~~ \tll~l~
JUE
PIIDATA 123449o_1

24

SL 001680

B452

~

Case 1:04-cv-01565-SLR

""DEe 09 200' l,j:t,,jl-lt VHN" U~UWI:'J

-

Document 140-3 Filed 05/04/2007 ~ibq4~b~~ I U i~i¿~¿l¿~öv

Page 40 of 40 i- . la¿/ iaq

Dynamic Healthcare Solutions

CONF\DENT\~L

-December 16,2004

Mr. Steve Feinberg Cerberus
Re: Fincial Obligations

. Dear Steve, ~ii
The purose of ths letter and the atted invoice outdig is

fuy and fialy conclude all

matters between Cerben and Dyamc Heathcar Solutions and myself..

During the period 1999-2000-2001, I provided pr~fessîönaI assistce on a varety of

investent opportties for which I believe I eaed an'incentive 1hat ha never been

" paid. Whle I lack the final reportg of the outcomes, it is my belief that some number
thse were successful and resuted in economic gains or reversal oflosses. Those deals include FCRN, Curative, Hangar, MSC, Rite Aide, MaxiCare, NCSS, pacifcae,
of

. Sunta, Kidred (estated gai of $50 Milion or more). Sun Health (estited gai $1

Millon or more), PHP (estiated gan of $2 Milion" or more), Beverly NursIng Homes
(estiated gai of $14 Millon/vear or more). Health Plan Servces, Winterland

(estimated gai of $24 Milion caused by reducing Cerbers' loan exposure from $44

Milion to $20 Milion).
) Your prompt attention to ths invoice wil be sicerely appreciated.

~ JCU cl GU BDanel D. Crowley

Respectflly,

. Chaian, President and CEO "

REDACTED

B453

CROWLEYKVN 016839 "