Case 8:10-bk-16743-TA

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RON BENDER (SBN 143364) TODD M. ARNOLD (SBN 221868) JOHN-PATRICK M. FRITZ (SBN 245240) LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. 10250 Constellation Boulevard, Suite 1700 Los Angeles, California 90067 Telephone: (310) 229-1234; Facsimile: (310) 229-1244 Email: rb@LNBYB.com; tma@LNBYB.com; jpf@LNBYB.com Attorneys for Chapter 11 Debtors and Debtors in Possession

UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA (SANTA ANA DIVISION) In re: WESTCLIFF MEDICAL LABORATORIES, INC., Debtor. __________________________________ BIOLABS, INC., Lead Case No. 8:10-bk-16743-TA Jointly Administered with Case No. 8:10-bk16746-TA Chapter 11 Cases STIPULATION REGARDING PLAN VOTING RIGHTS FOR SPECIALTY LABORATORIES, INC. Disclosure Statement Hearing: Date: October 26, 2011 Time: 10:00 a.m. Plan Confirmation Hearing: Affects WESTCLIFF MEDICAL LABORATORIES, INC. only Affects BIOLABS, INC. only Date: [To Be Scheduled] Time: [To Be Scheduled] Place: Courtroom 5B 411 West Fourth Street Santa Ana, CA 92701-4593

16 17 18 19 20 21 22 23 24 25 26 27 28 Debtor. __________________________________ Affects Both Debtors

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Westcliff Medical Laboratories, Inc. and BioLabs, Inc., the Debtors and Debtors in Possession in the above-referenced Chapter 11 bankruptcy cases (collectively, the Debtors), and creditor Specialty Laboratories, Inc. (Specialty) hereby enter into this Stipulation with reference to the following:

5 6 7 8 9 10 11 12 C. 13 14 15 16 17 18 19 will or will not be permitted to vote any disputed Specialty Unsecured Claim to accept or to reject 20 21 22 23 24 25 26 27 rejection vote by Specialty causes the Plan not to be confirmable, the Debtor agrees not to 28 the Plan. THEREFORE, BASED UPON THE FOREGOING, THE DEBTORS AND SPECIALTY HEREBY AGREE AS FOLLOWS: 1. Except as otherwise set forth in paragraphs 2 and 3 below, Specialty shall have the of approximately $5,646,729.19 (the Specialty Unsecured Claim). The Debtors are in the process of analyzing the Specialty Unsecured Claim to determine whether there is any basis to dispute the validity or the amount of the Specialty Unsecured Claim. D. In the event that the Debtors elect to file an objection to the Specialty Unsecured Specialty has asserted a general unsecured claim against the Debtors in the amount A. The Debtors commenced their bankruptcy cases by filing voluntary petitions for

relief under Chapter 11 of Title 11, United States Code, 11 U.S.C. 101, et seq. (the Bankruptcy Code) on May 19, 2010. B. The Debtors have filed a liquidating plan of reorganization (the Plan). A hearing

is scheduled to be held on October 26, 2011 at 10:00 a.m. for the Court to consider approval of the Debtors disclosure statement filed in respect of the Plan.

Claim, the Debtors and Specialty wish to avoid an unnecessary dispute over whether Specialty

right to vote the full amount of the Specialty Unsecured Claim to accept or to reject the Plan. 2. Unless Specialty votes the Specialty Unsecured Claim to reject the Plan and that

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challenge the validity or amount of the Specialty Unsecured Claim for purposes of computing class acceptance of the Plan. 3. If there is a pending objection to the Specialty Unsecured Claim and Specialty

votes the Specialty Unsecured Claim to reject the Plan and that rejection vote by Specialty causes 5 6 7 8 9 10 11 12 objection filed by the Debtors. 13 14 15 Approved: 16 17 18 19 20 21 22 23 24 25 26 27 28 By: /s/ Ron Bender RON BENDER TODD M. ARNOLD JOHN-PATRICK M. FRITZ LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. Attorneys for Chapter 11 Debtors and Debtors in Possession Dated: October 19, 2011 LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. Dated: October 19, 2011 SHARON Z. WEISS HOLME ROBERTS & OWEN LLP Brett D. Fallon Carl N. Kunz, III MORRIS JAMES LLP By: /s/ Sharon Z. Weiss SHARON Z. WEISS Attorneys for Specialty Laboratories, Inc. 5. All other rights of the parties are expressly reserved herein. Approved: the Plan not to be confirmable, the Debtors and Specialty both reserve all rights under (i) Bankruptcy Rule 3018(a) to have the Specialty Unsecured Claim temporarily allowed for Plan voting purposes, and/or (ii) Section 502(c) of the Bankruptcy Code to have the Specialty Unsecured Claim estimated for Plan voting purposes. 4. The Debtors reserve all rights to file any objection to the Specialty Unsecured

Claim that the Debtors deem appropriate, and Specialty reserves all rights to respond to any such

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NOTE: When using this form to indicate service of a proposed order, DO NOT list any person or entity in Category I. Proposed orders do not generate an NEF because only orders that have been entered are placed on the CM/ECF docket.

PROOF OF SERVICE OF DOCUMENT

I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is: 10250 Constellation Boulevard, Suite 1700, Los Angeles, CA 90067 A true and correct copy of the foregoing document described as STIPULATION REGARDING PLAN VOTING RIGHTS FOR SPECIALTY LABORATORIES, INC. will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner indicated below: I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF) Pursuant to controlling General Order(s) and Local Bankruptcy Rule(s) (LBR), the foregoing document will be served by the court via NEF and hyperlink to the document. On October 24, 2011, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following person(s) are on the Electronic Mail Notice List to receive NEF transmission at the email address(es) indicated below: Raymond G Alvarado ralvarado@adorno.com Todd M Arnold tma@lnbrb.com Phillip Ashman mgolod@mcqueenashman.com, pashman@mcqueenashman.com;bkumamoto@mcqueenashman.com Richard L Barnett rick@barnettrubin.com, rlbsec@barnettrubin.com Ron Bender rb@lnbrb.com Ronald K Brown rkbgwhw@aol.com Jennifer Witherell Crastz jcrastz@hemar-rousso.com Carol J Fogleman mfrost@bwslaw.com Anthony A Friedman aaf@lnbrb.com John-patrick M Fritz jpf@lnbrb.com Jeffrey K Garfinkle bkgroup@buchalter.com, jgarfinkle@buchalter.com;lgoodwin@buchalter.com Fredric Glass fglass@fairharborcapital.com Nancy S Goldenberg nancy.goldenberg@usdoj.gov D Edward Hays ehays@marshackhays.com Michael J Heyman michael.heyman@klgates.com Mark D Houle mark.houle@pillsburylaw.com Jacqueline L James jlj@lnbyb.com Jeff D Kahane jkahane@duanemorris.com Andy Kong Kong.Andy@ArentFox.com Rodger M Landau rlandau@lgbfirm.com, kmoss@lgbfirm.com Matthew A Lesnick matt@lesnicklaw.com Michael B Lubic michael.lubic@klgates.com Frank F McGinn ffm@bostonbusinesslaw.com Elissa Miller emiller@sulmeyerlaw.com, asokolowski@sulmeyerlaw.com Aram Ordubegian ordubegian.aram@arentfox.com Ernie Zachary Park ernie.park@bewleylaw.com Richard Park Richard.Park@usdoj.gov Justin E Rawlins jrawlins@winston.com, docketla@winston.com Benjamin Seigel bseigel@buchalter.com, IFS_filing@buchalter.com David B Shemano dshemano@pwkllp.com Philip E Strok pstrok@wgllp.com United States Trustee (SA) ustpregion16.sa.ecf@usdoj.gov

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Howard J Weg hweg@pwkllp.com Sharon Z Weiss sharon.weiss@hro.com Joseph M Welch jwelch@buchalter.com Johnny White , seb@blakeleyllp.com;bblakeley@blakeleyllp.com;rclifford@blakeleyllp.com Service information continued on attached page

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This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. August 2010

II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(indicate method for each person or entity served): On October 24, 2011, I served the following person(s) and/or entity(ies) at the last known address(es) in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed.
Served by Overnight Mail Hon. Theodor Albert United States Bankruptcy Court 411 West Fourth Street Santa Ana, CA 92701

Service information continued on attached page III. SERVED BY PERSONAL DELIVERY, FACSIMILE TRANSMISSION OR EMAIL (indicate method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on October 24, 2011, I served the following person(s) and/or entity(ies) by personal delivery, or (for those who consented in writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on the judge will be completed no later than 24 hours after the document is filed. Service information continued on attached page I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. October 24, 2011 Date Lourdes Cruz Type Name /s/ Lourdes Cruz Signature

F 9013-3.1.PROOF.SERVICE