Exhibit 10.2
SECOND FORBEARANCE AGREEMENT
     This SECOND FORBEARANCE AGREEMENT, dated as of August 31, 2009 (this
“Agreement”), is entered into by and among American HomePatient, Inc., a
Delaware corporation, American HomePatient, Inc., a Tennessee corporation,
Designated Companies, Inc., American HomePatient of New York, Inc., The National
Medical Rentals, Inc., American HomePatient of Texas, L.P., AHP, L.P., AHP Home
Medical Equipment Partnership of Texas, Colorado Home Medical Equipment
Alliance, LLC, Northeast Pennsylvania Alliance, LLC, Northwest Washington
Alliance, LLC, AHP Home Care Alliance of Tennessee, AHP Alliance of Columbia,
AHP Knoxville Partnership, AHP Home Care Alliance of Gainesville, AHP Home Care
Alliance of Virginia (collectively, the “Makers”), NexBank, SSB (as successor in
interest to Heritage Bank, SSB, the “Agent”) and those certain entities
appearing on Schedule I attached hereto (collectively, the “Forbearing
Holders”).
WITNESSETH:
     WHEREAS, the Makers have executed and delivered in favor of the Agent, on
behalf of the holders thereof, a Secured Promissory Note, dated as of July 1,
2003, in the principal amount of $250,000,000 (such note, as may be amended,
restated, supplemented, or otherwise modified from time to time, the “Note”);
     WHEREAS, as of the date hereof, the Makers acknowledge that the Event of
Default under the Note defined herein as the “Designated Event of Default” has
occurred and is continuing;
     WHEREAS, pursuant to the terms of that certain First Forbearance Agreement
(as defined below) the Forbearing Holders (as defined in the First Forbearance
Agreement) agreed to forbear from exercising remedies during the Forbearance
Period (as defined in the First Forbearance Agreement);
     WHEREAS, the terms of the First Forbearance Agreement provide that the
First Forbearance Agreement shall expire on September 1, 2009; and
     WHEREAS, the Makers have requested, subject to the terms and conditions set
forth herein, that the Agent and the Forbearing Holders by execution of this
Agreement agree to forbear, during the Forbearance Period set forth in this
Agreement, from exercising the rights and remedies available to them as a direct
result of the occurrence of the Designated Event of Default, and the Agent and
the Forbearing Holders have agreed to such forbearance, solely during the
Forbearance Period set forth in this Agreement and subject to the terms and
conditions set forth herein;
     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, the parties hereto hereby agree as follows:

 

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     SECTION 1. Defined Terms.
     (a) As used in this Agreement, the following terms shall have the meanings
set forth below:
     (i) “Company” shall mean American HomePatient, Inc., a Delaware
corporation.
     (ii) “First Forbearance Agreement” shall mean that certain Forbearance
Agreement dated as of July 2, 2009.
     (iii) “Forbearance Period” shall mean the period (i) commencing on and
including the Agreement Effective Date and (ii) continuing through and including
the date that is the earlier to occur of (x) October 1, 2009 and (y) the date of
occurrence of a Termination Event.
     (iv) “Designated Event of Default” shall mean the Event of Default that
arose on August 1, 2009 from the failure of the Makers to pay the outstanding
principal balance of the Note on the Maturity Date (it being understood and
agreed that any accrued and unpaid interest, including, without limitation,
unpaid interest accrued after the Maturity Date, must be paid monthly in arrears
on the first calendar day of each month and the failure to pay such interest is
not a Designated Event of Default).
     (v) “Termination Event” shall mean the occurrence of an Event of Default
under the Note, other than the Designated Event of Default.
     (b) Unless otherwise defined above or elsewhere in this Agreement,
capitalized terms used herein shall have the meanings assigned to such terms in
the Note.
     SECTION 2. Forbearance; Termination; Reservation of Rights.
     (a) Upon the terms and conditions set forth in this Agreement, and so long
as no Termination Event shall have occurred, the Agent and the Forbearing
Holders hereby agree to forbear, solely for the duration of the Forbearance
Period, from exercising the rights and remedies available to them as a direct
result of the occurrence of the Designated Event of Default.
     (b) Upon the expiration of the Forbearance Period, the agreement of the
Agent and the Forbearing Holders hereunder to forbear from exercising their
respective rights and remedies during the Forbearance Period shall immediately
terminate without the requirement of any demand, presentment, protest, or notice
of any kind, all of which the Makers hereby unconditionally and irrevocably
waive and all of which rights and remedies are fully reserved by the Agent and
the Forbearing Holders. Each of the Makers agrees that any or all of the Agent
or the Forbearing Holders may at any time thereafter proceed to exercise any and
all of their respective rights and remedies under the Note, any other document
related thereto and/or applicable law, including, without limitation, their
respective rights and remedies with respect to the Designated Event of Default,
none

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of which rights or remedies or Designated Event of Default is or shall be deemed
to be waived in any respect.
     SECTION 3. Conditions to Effectiveness. This Agreement shall become
effective as of the first date (the “Agreement Effective Date”) upon which the
Agent shall have received duly executed counterparts hereof that, when taken
together, bear the authorized signatures of the Makers, the Agent and the
Forbearing Holders. The Agent shall notify the Makers and the Forbearing Holders
of the date of the Agreement Effective Date. and such notice shall be conclusive
and binding.
     SECTION 4. Representations and Warranties. The Makers hereby represent and
warrant to the Agent and each of the Forbearing Holders that:
     (a) This Agreement has been duly executed and delivered by each of the
Makers and constitutes a legal, valid and binding obligation of each of the
Makers, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.
     (b) As of the Agreement Effective Date, no Event of Default (excepting the
Designated Event of Default) under the Note has occurred and is continuing.
     (c) The Makers that are signatories to this Agreement comprise all of the
original Makers (as defined in the Note) that were parties to the Note that are
in existence as of the date hereof. Any original Maker (as defined in the Note)
that is not a signatory to this Agreement is no longer in existence as of the
date hereof and has been merged into a Maker that is a signatory to this
Agreement, and all of such original Maker’s assets and liabilities have been
assumed by the Maker that is a signatory to this Agreement.
     SECTION 5. No Implied Waiver. Except as expressly set forth herein, this
Agreement shall not by implication or otherwise limit, impair, constitute a
waiver of, or otherwise affect the rights and remedies of the Agent and the
Forbearing Holders under the Note or any other document related thereto, and
shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Note or any
other document related thereto, all of which are ratified and affirmed in all
respects and shall continue in full force and effect. Nothing herein shall be
deemed to entitle any Maker to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations,
covenants or agreements contained in the Note or any other document related
thereto in similar or different circumstances.
     SECTION 6. APPLICABLE LAW. THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCEABLE IN ACCORDANCE WITH THE LAWS OF THE STATE OF TENNESSEE.
     SECTION 7. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall constitute an original but
all of which, when taken together, shall constitute a single instrument.
Delivery of an executed counterpart of a

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signature page to this Agreement by telecopy or other electronic transmission
shall be effective as delivery of a manually executed counterpart hereof.
     SECTION 8. Entire Agreement. This Agreement sets forth the entire
understanding and agreement of the parties hereto in relation to the subject
matter hereof and supersedes any prior negotiations and agreements among the
parties relative to such subject matter.
     SECTION 9. Section Headings. Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute part
of this Agreement for any other purpose.
     SECTION 10. Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of each of the Makers, the Forbearing Holders, the
Agent and their respective successors and assigns; provided, that no Maker shall
be entitled to delegate any of its duties hereunder and shall not assign any of
its rights or remedies set forth in this Agreement without the prior written
consent of the Agent in its sale discretion.
     SECTION 11. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law; but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.
     SECTION 12. Tolling of Statutes of Limitations. The parties hereto agree
that the running of all statutes of limitation or doctrine of laches applicable
to all claims or causes of action that any Forbearing Holder or the Agent may be
entitled to take or bring in order to enforce its rights and remedies against
any Maker shall be, to the fullest extent permitted by law, tolled and suspended
during the Forbearance Period.
[Remainder of this page intentionally left blank.]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the date first above
written.

            Makers:

AMERICAN HOMEPATIENT, INC.,
a Delaware corporation
      By:   /s/ S. Clanton         Name:           Title:           AMERICAN
HOMEPATIENT, INC.,
a Tennessee corporation
      By:   /s/ S. Clanton         Name:           Title:           DESIGNATED
COMPANIES, INC.
      By:   /s/ S. Clanton         Name:           Title:           AMERICAN
HOMEPATJENT OF NEW YORK,
INC.
      By:   /s/ S. Clanton         Name:           Title:        

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              THE NATIONAL MEDICAL RENTALS, INC.
      By:   /s/ S. Clanton         Name:           Title:         AMERICAN
HOMEPATIENT OF TEXAS, L.P.,
a Texas limited partnership

            By:   AMERICAN HOMEPATIENT, INC.,
its general partner
        /s/ S. Clanton         Name:         Title:         AHP, L.P.,
a Tennessee limited partnership
            By:  AMERICAN HOMEPATIENT, INC.,
its general partner
        /s/ S. Clanton         Name:         Title:         AHP HOME MEDICAL
EQUIPMENT
PARTNERSHIP OF TEXAS,
a Texas general partnership

    By:  AHP, L.P.,
a general partner
      By:   AMERICAN HOMEPATIENT,         INC., its General Partner             
          /s/ S. Clanton         Name:           Title:        

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              COLORADO HOME MEDICAL EQUIPMENT
ALLIANCE, LLC,
a Colorado limited liability company
      By:  AMERICAN HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:           NORTHEAST
PENNSYLVANIA ALLIANCE,
LLC, a Pennsylvania limited liability company
      By:  AMERICAN HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:           NORTHWEST
WASHINGTON ALLIANCE,
LLC, a Washington limited liability company
      By:  AMERICAN HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:           AHP HOME CARE
ALLIANCE OF TENNESSEE,
a Tennessee general partnership
      By:  AMERICAN HOMEPATIENT, INC.,
its general partner
        /s/ S. Clanton         Name:           Title:        

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              By:  AMERICAN HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:           AHP ALLIANCE OF
COLUMBIA,
a South Carolina general partnership
      By:  AMERICAN HOMEPATIENT, INC.,
its general partner
        /s/ S. Clanton         Name:           Title:           By:  AMERICAN
HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:           AHP KNOXVILLE
PARTNERSHIP,
a Tennessee general partnership
      By:  AMERICAN HOMEPATIENT, INC.,
its general partner
        /s/ S. Clanton         Name:           Title:           By:  AMERICAN
HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:        

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              AHP HOME CARE ALLIANCE OF
GAINESVILLE, a Florida general partnership
      By:  AMERICAN HOMEPATIENT, INC.,
its general partner
        /s/ S. Clanton         Name:           Title:           By:  AMERICAN
HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:           AHP HOME CARE
ALLIANCE OF VIRGINIA,
a Virginia general partnership
      By:  AMERICAN HOMEPATIENT, INC.,
its general partner
        /s/ S. Clanton         Name:           Title:           By:  AMERICAN
HOMEPATIENT
VENTURES, INC., its sole member
        /s/ S. Clanton         Name:           Title:        

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            NEXBANK, SSB,
as Agent
      By:   /s/ Jeff Scott         Name:   Jeff Scott        Title:   Vice
President, NexBank, SSB     

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              ABERDEEN LOAN FUNDING, LIMITED,

      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              BRENTWOOD CLO, LIMITED

      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager

      By:  STRAND ADVISORS, INC.,
its General Partner

      By:   /s/ Jason Post         Name:   Jason Post      Title: Operations
Director   

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            EMERALD ORCHARD LIMITED
      By:   /s/ Arlene Arellano         Name:   Arlene Arellano        Title:  
     

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            GENERAL ELECTRIC CAPITAL
CORPORATION
      By:   /s/ Benjamin McCarndo         Name:   Benjamin McCarndo       
Title:        

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              GLENEAGLES CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager

      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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            GRAND CENTRAL ASSET TRUST HLD
SERIES
      By:   /s/ Adam Jacobs         Name:   Adam Jacobs        Title:  
Attorney-in-Fact     

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              GRAYSON CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              GREENBRIAR CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              HIGHLAND LOAN FUNDING V, LIMITED         By:  HIGHLAND CAPITAL
MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              JASON CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              LIBERTY CLO, LIMITED

      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              LOAN FUNDING IV, LLC
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              LOAN FUNDING VII, LLC
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              LONGHORN CREDIT FUNDING, LLC

      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post       Name:   Jason Post    Title:   Operations
Director   

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              PAM CAPITAL FUNDING, LP
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              PAMCO CAYMAN LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              RED RIVER CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              ROCKWALL CDO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              SOUTHFORD CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              STRATFORD CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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              WESTCHESTER CLO, LIMITED
      By:  HIGHLAND CAPITAL MANAGEMENT,
L.P., as Collateral Manager
      By:  STRAND ADVISORS, INC.,
its General Partner
      By:   /s/ Jason Post         Name:   Jason Post        Title:   Operations
Director     

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SCHEDULE I
Forbearing Holders
Aberdeen Loan Funding, Limited
Brentwood CLO, Limited
Eastland CLO, Limited
Emerald Orchard Limited
General Electric Capital Corporation
Gleneagles CLO, Limited
Grand Central Asset Trust HLD Series
Grayson CLO, Limited
Greenbriar CLO, Limited
Highland Loan Funding V, Limited
Jasper CLO, Limited
Liberty CLO, Limited
Loan Funding IV, LLC
Loan Funding VII, LLC
Longhorn Credit Funding, LLC
Pam Capital Funding, LP
Pamco Cayman Limited
Red River CLO, Limited
Rockwall CDO, Limited
Rockwall CDO II, Limited
Southfork CLO, Limited
Stratford CLO, Limited
Westchester CLO, Limited