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RON BENDER (SBN 143364) TODD M. ARNOLD (SBN 221868) 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 Attorneys for Reorganized Debtors UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA SANTA ANA DIVISION ) ) WESTCLIFF MEDICAL ) LABORATORIES, INC., ) Reorganized Debtor. ) ____________________________________ ) ) In re: ) ) BIOLABS, INC., ) Reorganized Debtor. ) ____________________________________ ) ) ) Affects All Debtors ) Affects Westcliff Medical Laboratories, ) ) Inc. only ) ) Affects Biolabs, Inc. only ) In re: Lead Case No. 8:10-bk-16743-TA (Jointly Administered with Case No. 8:10-bk-16746-TA) Chapter 11 STIPULATION RESOLVING CLAIMS OF VERIZON

Pending Claim Objection Hearing: DATE: July 25, 2012 TIME: 10:00 a.m. PLACE: Courtroom 5B 411 West Fourth Street Santa Ana, CA 92701

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Westcliff Medical Laboratories, Inc. (Westcliff) and Biolabs, Inc. (Biolabs and, together with Westcliff, the Debtors) and Verizon, Verizon California, Verizon Communications and Verizon Online (collectively Verizon), by and through their respective undersigned counsel, hereby enter into this stipulation (the Stipulation) based on the following recitals of fact: RECITALS A. On May 19, 2010, each of the Debtors commenced a voluntary case under

Chapter 11 of 11 U.S.C. 101 et seq. of the United States Code in the United States Bankruptcy Court for the Central District of the State of California (the Bankruptcy Court). B. In its Schedules of Assets and Liabilities, Westcliff scheduled Verizon with the

following claims (the Scheduled Claims): 1. 2. Verizon general unsecured claim in the amount of $0. Verizon general unsecured claim in the amount of $199.26. Verizon California general unsecured claim in the amount of

13 3. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 C. $21,391.21. 4. $284.99. 5. Verizon Online general unsecured claim in the amount of $0. Verizon Communications general unsecured claim in the amount of

Verizon filed Claim No. 172 (Claim 172) asserting a general unsecured claim in

the amount of $31,403.84. D. Verizon filed Amended Claim No. 172 (Amended Claim 172) asserting a

general unsecured claim in the amount of $53,800.54. E. On or about March 10, 2012, the Debtors filed their Seventh Omnibus Motion for

Order Disallowing Claims (Books and Records / Verizon Claims) (the Motion). By way of the Motion, the Debtors sought an order of the Court, (1) disallowing the Scheduled Claims and Claim 172 in their entirety, (2) allowing Amended Claim 172 as a general unsecured claim in the amount of $31,403.84, and (3) disallowing the balance of Amended Claim 172. The Motion was set for hearing on May 30, 2012, at 10:00 a.m., and continued to July 25, 2012, at 10:00 a.m.

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F.

The Parties have analyzed and discussed the foregoing claims and reached an

agreement regarding the same. STIPULATION NOW THEREFORE, the parties, by and through their undersigned counsel, do hereby agree as follows: 1. Amended Claim 172 shall be deemed to be allowed as a general unsecured claim

in the amount of $31,403.84 (the Allowed Claim). 2. Any other claims of Verizon against the Debtors, including, but not limited to, the

Scheduled Claims, Claim 172, and the balance of Amended Claim 172, shall be deemed to be waived. 3. Notwithstanding any of the foregoing, this Stipulation shall not effect or waive

any claims of the Debtors and any defenses of Verizon in the adversary proceeding entitled, Westcliff Medical Laboratories, Inc. and Biolabs, Inc. v. Verizon California, Inc., Adv. Proc. No. 8:12-ap-01266-TA. 4. The Allowed Claim shall be treated in accordance with the Debtors confirmed

Chapter 11 plan. 5. The Court has and shall retain exclusive jurisdiction over this Stipulation and the

issues raised herein. 6. 7. The terms of this Stipulation are binding and not mere recitals. This Stipulation contains the entire agreement between the Parties and may not be

amended except by written agreement between the Parties. /// /// ///

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8.

This Stipulation may be executed in counterparts, and all such executed

counterparts when taken together shall constitute an original of one and the same document. Counterparts may be transmitted by facsimile, electronic mail or other electronic means. SO STIPULATED. Dated: July 10, 2012 LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. By: . /s/ Todd M. Arnold RON BENDER TODD M. ARNOLD Attorneys for Reorganized Debtors Dated: July 10, 2012 DANNING, GILL, DIAMOND & KOLLITZ, LLP By: /s/ Steven Schwartz STEVEN SCHWARTZ Attorneys for Verizon

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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, California 90067 A true and correct copy of the foregoing document entitled (specify): STIPULATION RESOLVING CLAIMS OF VERIZON 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 stated below: 1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Pursuant to controlling General Orders and LBR, the foregoing document will be served by the court via NEF and hyperlink to the document. On (date) July 11, 2012, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following persons are on the Electronic Mail Notice List to receive NEF transmission at the email addresses stated below: Raymond G Alvarado ralvarado@alvaradosmith.com Todd M Arnold tma@lnbyb.com Phillip Ashman mgolod@mcqueenashman.com, pashman@mcqueenashman.com;bkumamoto@mcqueenashman.com Richard L Barnett rick@barnettrubin.com, kelly@barnettrubin.com Ron Bender rb@lnbyb.com Eric S Bershatski eric.bershatski@gmail.com Brett Bissett brett.bissett@klgates.com Jennifer K Brooks jennifer.k.brooks@pillsburylaw.com Ronald K Brown rkbgwhw@aol.com Howard Camhi hcamhi@ecjlaw.com Donald H Cram dhc@severson.com Jennifer Witherell Crastz jcrastz@hemar-rousso.com Ryan S Fife ryan.fife@dbr.com, mary.avila@dbr.com;docket_la@dbr.com Carol J Fogleman mfrost@bwslaw.com Anthony A Friedman aaf@lnbyb.com John-patrick M Fritz jpf@lnbrb.com Jeffrey K Garfinkle bkgroup@buchalter.com, jgarfinkle@buchalter.com;docket@buchalter.com;svanderburgh@buchalter.com Barry S Glaser bglaser@swjlaw.com Fredric Glass fglass@fairharborcapital.com Nancy S Goldenberg nancy.goldenberg@usdoj.gov Chad V Haes chaes@marshackhays.com James C Harman james.harman@coco.ocgov.com D Edward Hays ehays@marshackhays.com, ecfmarshackhays@gmail.com Michael J Heyman michael.heyman@klgates.com Jacqueline L James jlj@lnbyb.com Jeanne M Jorgensen jjorgensen@pj-law.com, esorensen@pj-law.com Jeff D Kahane jkahane@duanemorris.com Andy Kong Kong.Andy@ArentFox.com Alan J Kornfeld akornfeld@pszjlaw.com, akornfeld@pszjlaw.com Rodger M Landau rlandau@lgbfirm.com, gguidetti@lgbfirm.com;rmartin-patterson@lgbfirm.com Leib M Lerner leib.lerner@alston.com Matthew A Lesnick matt@lesnickprince.com Michael B Lubic michael.lubic@klgates.com Mark J Markus bklawr@bklaw.com, markjmarkus@gmail.com Frank F McGinn ffm@bostonbusinesslaw.com Jennifer Meeker jmeeker@nossaman.com Elissa Miller emiller@sulmeyerlaw.com, asokolowski@sulmeyerlaw.com Kerry A Moynihan kerry.moynihan@bryancave.com, raul.morales@bryancave.com;trish.penn@bryancave.com
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2012

F 9013-3.1.PROOF.SERVICE

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Aram Ordubegian ordubegian.aram@arentfox.com Ernie Zachary Park ernie.park@bewleylaw.com Richard Park Richard.Park@usdoj.gov John E Polich john.polich@ventura.org Justin E Rawlins jrawlins@winston.com, docketla@winston.com Christopher O Rivas crivas@reedsmith.com Martha E Romero Romero@mromerolawfirm.com Lorraine M Sarles lorraine.sarles@alston.com Steven J Schwartz sschwartz@dgdk.com, DanningGill@gmail.com Benjamin Seigel bseigel@buchalter.com, IFS_filing@buchalter.com David B Shemano dshemano@peitzmanweg.com Lindsey L Smith lls@lnbyb.com Philip E Strok pstrok@wgllp.com Cathy Ta cathy.ta@bbklaw.com, Arthur.Johnston@bbklaw.com;lisa.spencer@bbklaw.com United States Trustee (SA) ustpregion16.sa.ecf@usdoj.gov Howard J Weg hweg@peitzmanweg.com Sharon Z Weiss sharon.weiss@bryancave.com, raul.morales@hro.com Sharon Z Weiss sharon.weiss@hro.com, raul.morales@hro.com Joseph M Welch jwelch@buchalter.com, jmealey-hatch@buchalter.com;docket@buchalter.com Johnny White , ecf@blakeleyllp.com;dmannion@blakeleyllp.com Beth Ann R Young bry@lnbyb.com Service information continued on attached page

2. SERVED BY UNITED STATES MAIL: On (date) July 11, 2012, I served the following persons and/or entities at the last known addresses 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 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. The Hon. Theodor C. Albert United States Bankruptcy Court 411 West Fourth Street Santa Ana, CA 92701 Service information continued on attached page 3. SERVED BY PERSONAL DELIVERY, OVERNIGHT MAIL, FACSIMILE TRANSMISSION OR EMAIL (state method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on (date) July 11, 2012, I served the following persons and/or entities by personal delivery, overnight mail service, 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, or overnight mail to, 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 that the foregoing is true and correct. July 11, 2012 Date Lourdes Cruz Printed Name /s/ Lourdes Cruz Signature

This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2012

F 9013-3.1.PROOF.SERVICE