Document:

Forebearance Agreement

 FORBEARANCE AGREEMENT 
 THIS FORBEARANCE AGREEMENT (this “Agreement”), dated as of October 3, 2007, is entered into by and among the Lenders
signatory hereto, HBK INVESTMENTS L.P., a Delaware limited partnership, as the arranger and administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”),
PAINCARE HOLDINGS, INC., a Florida corporation (“Parent”), and each of Parent’s Subsidiaries identified on the signature pages hereof (such Subsidiaries, together with Parent, are referred to hereinafter each
individually as a “Loan Party”, and individually and collectively, jointly and severally, as the “Loan Parties”). Terms used herein without definition shall have the meanings ascribed to them in the Loan Agreement
defined below. 
 RECITALS 
 A. The Lenders, Agent and Loan Parties have previously entered into that certain Loan and Security Agreement dated May 10, 2005 (as amended, modified and supplemented from time to time, the “Loan Agreement”), pursuant
to which the Lenders have made certain loans and financial accommodations available to the Loan Parties. 
 B. The Agent and Loan Parties
have previously entered into that certain Amended and Restated Forbearance Agreement, dated May 24, 2007 (the “Prior Forbearance Agreement”). The forbearance period set forth in the Prior Forbearance Agreement has been
terminated prior to the date hereof. 
 C. Certain Events of Default have occurred and are continuing or (in the case of amortization
payments that will be due during the Forbearance Period are expected to occur under the Loan Agreement) as set forth in Schedule A hereto (such Events of Default set forth on Schedule A, collectively, the “Known
Defaults”). 
 D. The Loan Parties have requested that the Agent and Lenders forbear from exercising their rights and remedies under
the Loan Agreement and the other Loan Documents. 
 E. Agent and the Lenders are willing, for a limited period of time and on the terms and
conditions set forth herein, to forbear from exercising their rights and remedies under the Loan Agreement and the other Loan Documents with respect to the Known Defaults. 
 F. The Loan Parties are entering into this Agreement with the understanding and agreement that, except as expressly provided herein, none of the
Agent’s or Lenders’ rights or remedies as set forth in the Loan Agreement or any other Loan Document are being waived or modified by the terms of this Agreement. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Incorporation of Recitals. Each of the above recitals is expressly incorporated herein and is represented by each Loan Party to be true and correct. 
 2. Acknowledgment of Events of Default. The Loan Parties acknowledge and agree that the Known Defaults have occurred and are continuing (except
with respect to Known Defaults consisting of the failure of Borrowers to make amortization payments, which are anticipated to occur hereafter during the Forbearance Period). 
  

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 3. Reaffirmation of Obligations. Each Loan Party hereby acknowledges that the Loan Documents and
the Obligations constitute the valid and binding obligations of such Loan Party enforceable against such Loan Party in accordance with their respective terms, and each Loan Party hereby reaffirms its obligations under the Loan Documents.
Agent’s and the Lenders’ entry into this Agreement or any of the documents referenced herein, their negotiations with any party with respect to any Loan Document, their conduct of any analysis or investigation of any Collateral for the
Obligations or any Loan Document, their acceptance of any payment from any Loan Party or any other party of any payments made prior to the date hereof, or any other action or failure to act on the part of Agent or any Lender shall not constitute
(a) a modification of any Loan Document or (b) a waiver of any Default or Event of Default under the Loan Agreement, including, without limitation, the Known Defaults, or a waiver of any term or provision of any Loan Document. 

4. Agreement to Forbear. For the Forbearance Period (as defined below), the Agent and Lenders shall not take any action or commence any
proceedings with respect to the enforcement of any of their rights or remedies under the Loan Documents based solely on the continuance of the Known Defaults. The parties agree that neither the foregoing agreement by Agent and Lenders nor the
acceptance by Agent or Lenders of any of the payments provided for in the Loan Documents, nor any payment prior to the date hereof shall, however, (a) excuse any party from any of its obligations under the Loan Documents, or (b) toll the
running of any time periods applicable to any such rights and remedies, including, without limitation, any grace periods with respect to Defaults under the Loan Documents or otherwise. Each Loan Party agrees that it will not assert laches, waiver or
any other defense to the enforcement of any of the Loan Documents based upon the foregoing agreement Agent and Lenders to forbear or the acceptance by Agent or Lenders of any of the payments provided for in the Loan Documents or any payment prior to
the date hereof. As used herein, “Forbearance Period” shall mean the period commencing upon the effectiveness of this Agreement and continuing until the earlier to occur of: (w) any Default or Event of Default under any other
Loan Document (other than any Known Default), (x) the failure of any Loan Party to comply with any of the provisions of this Agreement (including without limitation the covenants set forth in Section 6 hereof) in accordance with the terms
hereof, (y) a determination by Agent in its discretion that the nature or extent of any Known Event of Default is materially different from the nature or extent as disclosed to the Agent prior to the date hereof, or (z) April 3, 2008.

 5. Termination of Agreement to Forbear. Each Loan Party acknowledges and agrees that upon the termination of the Agent’s and
Lenders’ agreement to forbear upon the expiration of the Forbearance Period as provided in Section 4 hereof, Agent, on behalf of the Lenders, shall be entitled to exercise any or all of its remedies under the Loan Documents,
including, without limitation, the appointment of a receiver, the acceleration of the Obligations and the enforcement under the Code of any liens in favor of Agent, as a result of the Known Defaults, and at any time Agent and Lenders shall be
entitled to exercise any or all of their remedies under the Loan Documents as a result of any Default or Event of Default under the Loan Documents (other than a Known Default). 
 6. Covenants. Each Loan Party covenants and agrees that it shall comply with each of the following covenants (the failure to comply with any of
the following covenants shall constitute an immediate Event of Default and shall result in an immediate termination of the Forbearance Period): 
 (a) Weekly Cash Flow Forecast. On or before the close of business on the first Monday after the date hereof and every fourth Monday thereafter, Borrowers shall deliver to Agent a rolling 13-week cash flow forecast (in form and
substance satisfactory to Agent) covering each Loan Party’s and each of their respective Subsidiaries’ operations during the period commencing on the Monday of the week during which such forecast is required to be delivered and ending on
the Friday of the week that is thirteen weeks after the commencement of such period (a “Cash Flow Forecast”), together with a certificate from the chief financial officer of Parent representing and warranting that such 13-week cash
flow forecast represents management’s good faith estimates of future financial performance during such period, based on historical performance (the “Officer Certificate”). Each Cash Flow Forecast shall also set forth the
variances of such Cash Flow Forecast from the previous Cash Flow Forecast; 
  

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 (b) On or before the close of business on each Tuesday after the date hereof, Borrowers shall provide to
Agent a calculation of the variances between the Borrowers’ actual financial performance for all periods included in the Cash Flow Forecast most recently provided by Borrowers to Agent as compared against the projected financial performance set
forth in such Cash Flow Forecast; 
 (c) Net Accounts. Maintain net Accounts (measured on a month-end basis and calculated in the same
manner as the calculation of the Loan Parties’ net receivables set forth in Parent’s 2007 10-Q report most recently filed with the SEC prior to the date hereof) of at least $5,000,000 as of the last day of each month from and after the
date hereof, commencing with the month ending September 30, 2007; 
 (d) Equipment. Maintain Equipment with a net book value of
at least $3,500,000, measured on a month-end basis as of the last day of each month from and after the date hereof, commencing with the month ending September 30, 2007; 
 (e) Collateral Reports. Provide to Agent each of the following collateral reports on or before the dates set forth below and in case in form and
substance satisfactory to Agent: 
 (i) Monthly (not later than the 30th day after the end of each month), a detailed aging of the net
Accounts described above in Section 6(c) as of the end of the immediately preceding month and calculated in the same manner as the calculation of the Loan Parties’ net receivables set forth in Parent’s 2007 10-Q report most
recently filed with the SEC prior to the date hereof; 
 (ii) Monthly (not later than the 30th day after the end of each month), a detailed
calculation of the net book value of the Loan Parties’ Equipment as of the end of the immediately preceding month; and 
 (iii) Monthly
(not later than the 30th day after the end of each month), bank statements for each of the Loan Parties’ Deposit Accounts which shows the balance in each such Deposit Account and the aggregate amount of outstanding checks, account fees,
chargebacks, or other debits with respect to such Deposit Accounts; 
 (f) EBITDA. Maintain EBITDA for Parent and its Subsidiaries,
measured on a month- end basis, which is not less than the amount set forth in the following table for the applicable period set forth opposite thereto: 
  

			
	 Applicable Amount
	  	 Applicable Period

	 Negative $400,000
	  	For the month ending October 31, 2007
	 Negative $400,000
	  	For the month ending November 30, 2005
	 Negative $400,000
	  	For the month ending December 31, 2007
	 Negative $400,000
	  	For the month ending January 31, 2008
	 $0
	  	For the month ending February 28, 2008
	 $0
	  	For the month ending March 31, 2008

 (g) American Stock Exchange. Maintain at all times in good standing its membership in the
American Stock Exchange such that the trading of the common Stock of any Loan Party on the American Stock Exchange is not suspended or halted and that such common Stock is not delisted from the American Stock Exchange; and 
  

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 (h) Cash Balance. Maintain an aggregate balance in all of the Loan Parties’ Deposit Accounts,
net of all outstanding checks, account fees, chargebacks, or other debits which at all times is greater than $0. 
 7. Release; Covenant
Not to Sue. 
 (a) Each Loan Party hereby absolutely and unconditionally waives, releases, remises and forever discharges Agent and
Lenders, and any and all of their respective participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers,
agents and employees of any of the foregoing (each a “Released Party”), from any and all claims, suits, investigations, proceedings, demands, obligations, liabilities, damages, losses, costs, expenses, or causes of action of any
kind, nature or description, whether based in law, equity, contract, tort, implied or express warranty, strict liability, criminal or civil statute, common law, or under any state or federal law or otherwise, of any kind or character, known or
unknown, past, present or future, liquidated or unliquidated, suspected or unsuspected, which such Loan Party has had, now has, hereafter may have, or has made claim to have against any such person for or by reason of any act, omission, matter,
cause or thing whatsoever arising from the beginning of the world to and including the date of this Agreement or thereafter, whether such claims, demands and causes of action are matured or unmatured or known or unknown. It is the intention of each
Loan Party in providing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified, and in furtherance of this intention it waives and relinquishes all rights and benefits under
Section 1542 of the Civil Code of the State of California (or any comparable provision of any other applicable law), which provides: 
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her might have materially affected his or her
settlement with the debtor.” 
 Each Loan Party acknowledges that it may hereafter discover facts different from or in addition to those now known or
believed to be true with respect to such claims, demands, or causes of action and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. Each Loan Party understands,
acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in
breach of the provisions of such release. 
 (b) Each Loan Party, on behalf of itself and its successors, assigns, and other legal
representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Released Party above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Released Party on the
basis of any claim released, remised and discharged by such Loan Party pursuant to the above release. Each Loan Party further agrees that it shall not dispute the validity or enforceability of the Loan Agreement or any of the other Loan Documents or
any of its obligations thereunder, or the validity, priority, enforceability or the extent of Agent’s Lien on any item of Collateral under the Loan Agreement or the other Loan Documents. If any Loan Party or any of its successors, assigns or
other legal representations violates the foregoing covenant, each Loan Party, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Released Party may sustain as a result of such
violation, all attorneys’ fees and costs incurred by such Released Party as a result of such violation. 
 8. Effectiveness of this
Agreement. This Agreement shall become effective as of the date when, and only when, the following conditions have been satisfied as determined in Agent’s sole and absolute discretion (the date of such effectiveness being herein called the
“Forbearance Effective Date”): 
 (a) Agreement. This Agreement, fully executed in a sufficient number of counterparts
for distribution to all parties. 
  

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 (b) Junior Capital. Agent shall have received (i) evidence satisfactory to Agent that Parent
shall have received cash proceeds of not less than $2,000,000 from a cash equity contribution to Parent in the form of common stock with no mandatory dividends or redemptions (including dividends or redemptions at the request or option of the
stockholder) and otherwise on terms and conditions acceptable to Agent, and shall otherwise be issued on terms and conditions acceptable to Agent and (ii) copies of each of the agreements and other documents which are executed or delivered in
connection with the transactions described in clause (i) of this Section 8(b) which shall be in form and substance satisfactory to Agent. 
 (c) Representations and Warranties. Except for representations and warranties which would otherwise fail to be true and correct as a result of the continuance of the Known Defaults, the representations and
warranties set forth herein and in the Loan Agreement must be true and correct in all material respects (except where any such representation and warranty is already subject to a materiality standard, in which case such representation and warranty
is true and correct in all respects) on and as of the date hereof as though made on and as of the date hereof (other than any such representations and warranties that, by their terms, are specifically made as of a date other than the date
hereof). 
 (d) Other Required Documentation. All other documents and legal matters in connection with the transactions contemplated
by this Agreement shall have been delivered or executed or recorded, as required by Agent. 
 9. Representations and Warranties. Each
Loan Party represents and warrants as follows: 
 (a) Authority. Each Loan Party has the requisite corporate power and authority to
execute and deliver this Agreement, and to perform its obligations hereunder and under the Loan Documents to which it is a party. The execution, delivery and performance by each Loan Party of this Agreement have been duly approved by all necessary
corporate action and no other corporate proceedings are necessary to consummate such transactions. 
 (b) Enforceability. This
Agreement has been duly executed and delivered by each Loan Party. This Agreement and each Loan Document is the legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms, and is in full
force and effect. 
 (c) Representations and Warranties. Except for representations and warranties which would otherwise fail to be
true and correct as a result of the continuance of the Known Defaults, the representations and warranties contained in each Loan Document (other than any such representations or warranties that, by their terms, are specifically made as of a date
other than the date hereof) are true and correct in all material respects (except where any such representation and warranty is already subject to a materiality standard, in which case such representation and warranty is true and correct in all
respects) on and as of the date hereof as though made on and as of the date hereof. 
 (d) Due Execution. The execution, delivery and
performance of this Agreement are within the power of each Loan Party, have been duly authorized by all necessary corporate action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual
restrictions binding on such Loan Party. 
 (e) No Default. Other than the Known Defaults, no event has occurred and is continuing
that constitutes a Default or an Event of Default. 
  

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 (f) No Duress. This Agreement has been entered into without force or duress, of the free will of
each Loan Party. Each Loan Party’s decision to enter into this Agreement is a fully informed decision and such Loan Party is aware of all legal and other ramifications of such decision. 
 (g) Counsel. Each Loan Party has read and understands this Agreement, has consulted with and been represented by independent legal counsel or its
own choosing in negotiations for and the preparation of this Agreement, has read this Agreement in full and final form, and has been advised by its counsel of its rights and obligations hereunder and thereunder. 
 10. Acknowledgements. 
 (a)
Acknowledgment of Forbearance Fee. Each Loan Party hereby acknowledges, confirms and agrees that as of the close of business on September     , 2007, in addition to all other amounts due to the Lender Group pursuant
to the Loan Documents, each Loan Party was jointly and severally indebted to Agent and the Lenders for forbearance fees of $2,497,500 pursuant to Section 7 of the Prior Forbearance Agreement. Agent and the Lenders hereby acknowledge and
agree additional forbearance fees pursuant to such Section 7 shall cease to accrue as of September 30, 2007. 
 (b)
Acknowledgment of Obligations. Each Loan Party hereby acknowledges, confirms and agrees that as of the close of business on September     , 2007, each Loan Party was jointly and severally indebted to Agent and the
Lenders for loans and other financial accommodations under the Loan Documents in the aggregate principal amount of $8,507,186.04, plus accrued and unpaid fees, costs and expenses due and owing under the Loan Documents (which additional fees include
without limitation, the forbearance fees described above in Section 10(a) hereof). All such Obligations owing by each Borrower, in each case together with interest accrued and accruing thereon, and all fees, costs, expenses and other
charges now or hereafter payable by each such Borrower to Agent and each Lender, are unconditionally owing by each Borrower to each Lender, without offset, defense, withholding, counterclaim or deduction of any kind, nature or description whatsoever
and shall be payable in accordance with the terms of the Loan Agreement and the other Loan Documents. 
 (c) Acknowledgement of Security
Interests. Each Loan Party hereby acknowledges, confirms and agrees that Agent, for the benefit of Agent and the Lenders, has and shall continue to have valid, enforceable and perfected first-priority liens upon and security interests in the
Collateral granted to Agent, for the benefit of Agent and the Lenders, pursuant to the Loan Documents or otherwise granted to or held by Agent, for the benefit Agent and the Lenders. 
 (d) Acknowledgment of No Lender Obligations. Each Loan Party hereby acknowledges, confirms and agrees that as a result of the Known Defaults, the
Lender Group has no obligation to make any loans or advances or other financial accommodations to any Loan Party. 
 (e) Binding Effect of
Documents. Each Loan Party hereby acknowledges, confirms and agrees that: (i) each of the Loan Documents to which it is a party has been duly executed and delivered to Agent and the Lenders thereto by such Loan Party, and each is in full
force and effect as of the date hereof, (ii) the agreements and obligations of each Loan Party contained in such documents and in this Agreement constitute the legal, valid and binding obligations of such Loan Party, enforceable against such
Loan Party in accordance with their respective terms, and the Loan Parties have no valid defense to the enforcement of the Obligations, and (iii) Agent and each Lender are and shall be entitled to the rights, remedies and benefits provided for
in the Loan Documents and under applicable law or at equity. Except for the forbearance during the Forbearance Period expressly set forth herein, the Loan Agreement and other Loan Documents shall remain unchanged and in full force and effect. The
execution, delivery, and performance of this Agreement shall not operate as a waiver of or, except as expressly set forth herein with respect to the forbearance during the Forbearance Period described herein, as an amendment of, any right, power, or
remedy of the Lender 

  

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Group as in effect prior to the date hereof. The forbearance set forth herein are limited to the specifics hereof, shall not apply with respect to any facts
or occurrences other than those on which the same are based, and except as expressly set forth herein, shall neither excuse any future non-compliance with the Loan Agreement, nor shall operate as a waiver of any Default or Event of Default
(including any Known Default). To the extent any terms or provisions of this Agreement conflict with those of the Loan Agreement or other Loan Documents, the terms and provisions of this Agreement shall control. This Agreement is a Loan Document.

 (f) No Disregard of Loan Documents. Each Loan Party acknowledges that the parties hereto have not entered into a mutual disregard
of the terms and provisions of the Loan Agreement or the other Loan Documents, or engaged in any course of dealing in variance with the terms and provisions of the Loan Agreement or the Loan Documents, within the meaning of any applicable law of the
State of New York, or otherwise. 
 (g) No LIBOR Option. Each Loan Party acknowledges that Borrowers may not elect to exercise the
LIBOR Option for any Term Loans. 
 (h) Default Rate of Interest. Each Loan Party acknowledges, confirms, and agrees that the Lenders
have a right to charge, the default rate of interest under Section 2.6(c) of the Loan Agreement. 
 11. Further Assurances.
Each Loan Party acknowledges and agrees, upon the request of Agent, at its expense, promptly to execute and deliver to Agent, or cause to be executed and delivered to Agent, any such document to correct any inadvertent omissions, as agreed to
between the Loan Parties and Agent, in the Loan Agreement and other Loan Documents. 
 12. Compromise Negotiations. Other than the
provisions of this Forbearance Agreement explicitly set forth herein, any discussions between the parties hereto in reference to the drafting hereof (the “Negotiations”) shall not be utilized or admissible in any subsequent
litigation between the parties hereto. All such Negotiations shall be considered “compromise negotiations” pursuant to N.Y. C.P.L.R. 4547, Fed. R. Evid. 408 and any comparable provision of any other state or federal law which may now or in
the future be deemed applicable to the Negotiations, and none of such Negotiations shall be considered “otherwise discoverable” or be permitted to be discoverable or admissible for any other purpose or to prove “bias, prejudice,
interest of a witness or a party, negativing a contention of undue delay, or an effort to obstruct a criminal investigation or prosecution” as provided by N.Y. C.P.L.R. 4547, Fed. R. Evid. 408 and any comparable provision of any other state or
federal law which may now or in the future be deemed applicable to the Negotiations. 
 13. Choice of Law. The validity of this
Agreement, its construction, interpretation and enforcement, the rights of the parties hereunder, shall be determined under, governed by, and construed in accordance with the internal laws of the State of New York governing contracts only to be
performed in that State. 
 14. Counterparts. This Agreement may be executed in any number of counterparts and by different parties
and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to
this Agreement by telefacsimile or other similar method of electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement. 
 15. Reference to and Effect on the Loan Documents. 
 (a) Upon and after the effectiveness of this
Agreement, each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement, and each reference in the other Loan Documents to “the Loan
Agreement”, “thereof” or words of like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as supplemented hereby. 
  

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 (b) The Loan Agreement and all other Loan Documents, are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of each Loan Party to Agent and Lenders. 
 (c) The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the Agent or Lenders under
any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 
 16. Ratification. Each Loan Party
hereby restates, ratifies and reaffirms each and every term and condition set forth in the Loan Agreement and the Loan Documents effective as of the date hereof. 
 17. Integration. This Agreement, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement
of the parties hereto with respect to the subject matter hereof. 
 18. Severability. In case any provision in this Agreement shall be
invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Agreement and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 19. Submission of Agreement. The submission of this Agreement to the parties or their agents or attorneys for review or signature does not
constitute a commitment by Agent or the Lenders to forbear from exercising any of their rights and remedies under the Loan Documents, and this Agreement shall have no binding force or effect until all of the conditions to the effectiveness of this
Agreement have been satisfied as set forth herein. 
 20. Modification. This Agreement may not be amended, waived or modified in any
manner without the written consent of the party against whom the amendment, waiver or modification is sought to be enforced. 
  

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 IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first above written.

  

			
	 PAINCARE HOLDINGS, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	CFO
	
	 PAINCARE, INC.,

	 a Nevada corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	CFO & SECRETARY
	
	 PAINCARE MANAGEMENT SERVICES, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 CAPERIAN, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 PAINCARE SURGERY CENTERS, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 ADVANCED ORTHOPAEDICS OF SOUTH FLORIDA II, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 PAIN AND REHABILITATION NETWORK, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 MEDICAL REHABILITATION SPECIALISTS II, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY V, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY VI, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 PAINCARE ACQUISITION COMPANY VIII, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY IX, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY X, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XI, INC.,

	 a Florida corporation

		
	 By:
	 	 /s/ MARK SZPORKA

	 Name:
	 	MARK SZPORKA
	 Title:
	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 PAINCARE ACQUISITION COMPANY XIII, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 BENJAMIN ZOLPER, M.D., INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XV, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XVII, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 PAINCARE ACQUISITION COMPANY XIX, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE SURGERY CENTERS I, INC.

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XVIII, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 ROTHBART PAIN MANAGEMENT CLINIC, INC.,

	a Canadian corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE SURGERY CENTERS II, INC.

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 PAINCARE SURGERY CENTERS III, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XX, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXI, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXII, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXIII, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 PAINCARE ACQUISITION COMPANY XXIV, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXV, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXVI, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXVII, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXVIII, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 PAINCARE ACQUISITION COMPANY XXIX, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 PAINCARE ACQUISITION COMPANY XXX, INC.,

	a Florida corporation
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY
	
	 INTEGRATED PAIN SOLUTIONS, LLC,

	a Florida limited liability company
		
	By:	 	 /s/ MARK SZPORKA

	Name:	 	MARK SZPORKA
	Title:	 	SECRETARY

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 AGENT:

	
	 HBK INVESTMENTS L.P.,

	 as Agent,

		
	 By:
	 	HBK Services LLC, its Subadvisor
		
	 By:
	 	 

  

		 	Its authorized signatory
	
	 LENDERS:

	
	 HBK MASTER FUND L.P.,

	 as a Lender

		
	By:	 	HBK Services LLC, its Investment Advisor
		
	By:	 	 

  

		 	Its authorized signatory

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

			
	 DEL MAR MASTER FUND LTD.,

	as Lender
		
	By:	 	 /s/ Marc V. Simons

	Name:	 	Marc V. Simons
	Title:	 	Director

 [SIGNATURE PAGE TO FORBEARANCE
AGREEMENT] 

 SCHEDULE A 
 The following Events of Default have occurred and are continuing: 
 Pursuant to that certain waiver letter dated as of
November 8, 2006 by and among the Borrowers, Agent and the Lenders (the “Waiver Letter”), Borrowers agreed to cause the financial covenants in Section 7.18 of the Loan Agreement to be amended in a manner satisfactory to
Agent and Lenders in their sole and absolute discretion on or before December 1, 2006, and agreed that the failure to do so would constitute an immediate Event of Default. In violation of the provisions of the Waiver Letter, the Borrowers have
failed to cause the financial covenants in Section 7.18 of the Loan Agreement to be so amended. 
 Section 2.4(c) Mandatory Prepayments.

 Borrowers received proceeds of the disposition of their rights under the below described acquisition agreement but did not use these
proceeds to prepay the Term Loan as required by Section 2.4(c) of the Loan Agreement. 
 Section 6.15 New Subsidiaries 
 In violation of Section 6.15(a), Borrowers formed one or more new Subsidiaries after the Closing Date and prior to the date hereof and did not
provide Agent with prior notice thereof, nor did Borrowers provide Agent with a joinder to the Loan Documents that is executed by each such new Subsidiary. In addition, in violation of Section 6.15(b), Borrowers have not provided the stock
certificates and other documents that are required with respect to any Stock that constituted Designated Stock on the Closing Date but which as of the date hereof no longer is included in the Excluded Assets (if any). 
 Section 7.4 Disposal of Assets 
 In violation of the
provisions of Section 7.4 of the Loan Agreement, Borrowers disposed their rights under the acquisition agreement related to its 60% ownership interest in PhysIOM, LLC. The failure to comply with this covenant constitutes an immediate Event of
Default pursuant to Section 8.2(b). 
 Section 7.12 Investments 
 In violation of Section 7.12, prior to the date hereof Borrower consummated one or more Acquisitions that did not constitute Permitted Acquisitions. 
 The following Event of Default is expected to occur during the Forbearance Period which will also constitute a Known Default for the purposes of the Agreement: 
 Section 2.2 Amortization payments by Borrowers 
 Borrowers failed and
are expected to fail to make the amortization payments that were or will be due on January 1, 2007, April 1, 2007, July 1, 2007, October 1, 2007 and January 1, 2008 and pursuant to Section 2.2 of the Loan
Agreement. The failure to make such payments when due constitutes immediate Events of Default pursuant to Section 8.1 of the Loan Agreement. 

 Section 2.6 Interest Payments. 
 Borrowers have failed and are expected to fail to make the interest payments that were or will be due on or before March     , 2008. The failure to make such payments when due constitutes immediate Events of
Default pursuant to Section 8.1 of the Loan Agreement. 
 Section 6.4. 
 Borrowers have failed to deliver Compliance Certificates pursuant to the requirements set forth in Section 6.5 of the Loan Agreement. The failure to
comply with these financial covenants constitutes immediate Events of Default pursuant to Section 8.2(b). 
 Section 7.18 Financial Covenants

 Borrowers have failed and are expected to fail to comply with the Minimum EBITDA and Minimum Free Cash Flow financial covenants set forth
in Section 7.18 of the Loan Agreement for the periods ending December 31, 2006, March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007. The failure to comply with these financial
covenants constitutes immediate Events of Default pursuant to Section 8.2(b). 
 Borrowers have failed and are expected to fail comply
with the Leverage Ratio financial covenant set forth in Section 7.18 of the Loan Agreement for the periods ending December 31, 2006, March 31, 2007, June 30, 2007, September 30, 2007, and December 31,
2007. The failure to comply with these financial covenants constitutes immediate Events of Default pursuant to Section 8.2(b). 
 Borrower have failed and are expected to fail to comply with the Market Capitalization financial covenant set forth in Section 7.18 of the Loan Agreement for the periods ending December 31, 2006, March 31,
2007, June 30, 2007, September 30, 2007, and December 31, 2007. The failure to comply with these financial covenants constitutes immediate Events of Default pursuant to Section 8.2(b).PROMISSORY NOTE

$10,000.00                                                     September 5, 2007

            FOR VALUE RECEIVED, the undersigned, Magna-Lab Inc., a New York
corporation ("Borrower"), HEREBY PROMISES TO PAY to the order of Magna
Acquisition LLC or its registered assigns ( "Lender"), in lawful money of the
United States of America, in the manner and at the times provided hereinafter,
the principal sum of TenThousand Dollars (US$10,000), together with Interest (as
hereinafter defined) and Default Interest (as hereinafter defined) and all other
amounts due and payable pursuant to and in accordance with terms of this Note.

      Interest shall accrue on the unpaid principal amount of this Note from the
date hereof until such principal amount is paid in full. "Interest" shall mean
twelve percent (12%) per annum. Interest shall be computed on the actual number
of days elapsed, predicated on a year consisting of three hundred and sixty
(360) days.

      Default Interest, if any, shall be payable on demand. "Default Interest"
shall mean interest computed at fifteen percent (15%) per annum, on (i) the
entire principal balance of this Note from time to time unpaid from and after
such amounts becomes due and payable (whether upon maturity, by acceleration or
otherwise), and (ii) any and all other unpaid amounts due pursuant to the terms
and provisions of this Note (including, but not limited to, accrued and unpaid
Interest) from and after the respective date(s) on which those amounts become
due and payable, whether upon maturity, by acceleration or otherwise; in each
case from and after the expiration of any applicable grace period. Default
Interest shall be computed on the actual number of days elapsed, predicated on a
year consisting of three hundred and sixty (360) days. Notwithstanding anything
to the contrary contained herein, for any period in which Default Interest is
accruing on the entire unpaid principal balance hereunder, Interest shall not
accrue. Default Interest shall compound on an annual basis.

      Unless otherwise accelerated pursuant to the terms hereof, this Note shall
mature and all outstanding and unpaid principal and Interest shall be due and
payable on the date that is 120 days from and after the date hereof.

      This Note may be prepaid, in whole or in part, at any time by Borrower
without premium or penalty. Any prepayment of this Note shall be accompanied by
payment of any Interest accrued and unpaid through the date of such prepayment,
and all Default Interest, if any, accrued and unpaid through the date of such
prepayment.

      Notwithstanding anything to the contrary contained herein, upon the
occurrence of any one or more of: (i) a default in the payment of any amounts
due hereunder and a failure to cure such default within five (5) business days,
or (ii) a default hereunder, and the expiration of any grace period applicable
to any default as set forth herein, then at the sole option and discretion of
Lender, and without further demand or notice of any kind, the following shall
become immediately due and payable:

      1.    the aggregate principal amount of this Note outstanding and
            remaining unpaid hereunder;

      2.    unpaid Interest;

      3.    Default Interest; and

      4.    all other indebtedness evidence by this Note.

<PAGE>

The following shall constitute events of default hereunder: (i) the assignment
for the benefit of creditors by Borrower; (ii) the application for the
appointment of a receiver for Borrower or for the property of Borrower; (iii)
the filing of a petition in bankruptcy by or against Borrower; (iv) the issuance
of an attachment or the entry of a judgment against Borrower; (v) a default by
Borrower with respect to any other indebtedness due to Lender; (vi) the making
or sending of a notice of an intended bulk sale by Borrower; (vii) the merger,
consolidation, termination of existence, dissolution or insolvency of Borrower;
(viii) the good faith determination by Lender that it deems itself insecure or
that a material adverse change in the financial condition of Borrower has
occurred since the date hereof and that Lender's prospect of payment hereunder
has been impaired; or (ix) any breach or default under any indebtedness of
Borrower to any banking or financial institution, and the expiration of any
grace period applicable to such breach or default.

      If Borrower fails to pay any amounts when due hereunder, whether at
maturity, by acceleration or otherwise, or if there occurs any event which
entitles Lender to accelerate the indebtedness due under this Note and any grace
period applicable to any such failure to pay or event as set forth herein
expires, then Lender shall have all of the rights and remedies provided to it
hereunder, and at law or in equity. The remedies of Lender, as provided herein,
shall be cumulative and concurrent, and may be pursued singularly, successively,
or otherwise, at the sole discretion of Lender, and may be exercised as often as
occasion therefor shall arise. Lender may resort for payment hereunder to any of
security for, or any guaranty of, this Note whether or not Lender shall have
resorted for payment hereunder to any other security for or guaranty of this
Note. No act or omission of Lender, including specifically any failure to
exercise any right, remedy or recourse, shall be deemed to be a waiver or
release of the same, such waiver or release to be effected only through a
written document executed by Lender and then only to the extent specifically
recited therein. A waiver or release with reference to any one event shall not
be construed as continuing, as a bar to, or as a waiver or release of, any
subsequent right, remedy, or recourse as to a subsequent event. If this Note is
placed in the hands of an attorney for collection or is collected on advice of
counsel or through any legal proceeding, Borrower promises to pay, to the extent
permitted by law, court costs and reasonable attorneys' fees incurred by Lender.
Borrower hereby waives presentment, demand, notice of dishonor or nonpayment,
protest and notice of protest in connection therewith.

      If any provision of this Note is unenforceable, invalid or contrary to
law, or its inclusion herein would affect the validity, legality or enforcement
of this Note, such provision shall be limited to the extent necessary to render
the same valid or shall be excised from this Note, as the circumstances require,
and this Note shall be construed as if said provision had been incorporated
herein as so limited or as if said provision had not been included herein, as
the case may be.

      Time is of the essence of this Note.

      Upon maturity or following the occurrence of any event which entitles
Lender to accelerate the indebtedness evidenced hereby, all payments received on
account of the indebtedness evidenced hereby shall be applied, in whatever
order, combination and amounts as Lender, in its sole and absolute discretion,
decides, to all costs, expenses and other indebtedness, if any, owing to Lender
by reason of this Note; Default Interest, Interest; and principal.

      This Note, and the terms and provisions hereof, shall be binding upon
Borrower and its successors, administrators, and assigns, and shall inure to the
benefit of any holder hereof.

      All amounts due hereunder shall be paid without deduction, set-off or
counterclaim, Borrower expressly waiving any such rights to deduction, set-off
or counterclaim.

                                       2
<PAGE>

      Notwithstanding any provisions to the contrary contained in this Note or
in any of the other documents or instruments referred to in this Note, if at any
time or times the interest and any sums considered for such purposes to be
interest, payable under or by reason of this Note or any such other documents or
instruments, should exceed the maximum which, by the laws of the State having
jurisdiction, may be charged with respect to the loan evidenced hereby, given
the nature and all of the pertinent circumstances of such loan, than all such
sums in excess of such maximum shall be deemed not to be interest, but rather to
be payments on account of principal, and without further agreement of the
parties shall be so applied without regard to any other provision of this Note,
provided that Lender may elect instead that no sums shall be payable in excess
of such maximum, whereupon this Note, and such other documents and instruments
hall be deemed amended accordingly without further action by any party.

      This Note shall inure to the benefit of Lender and its successors and
assigns and shall be governed by, and construed in accordance with, the laws of
the State of Delaware.

                                          MAGNA-LAB INC., a New York corporation

                                          By /s/Lawrence A Minkoff
                                             -----------------------------------
                                             Name: Lawrence A. Minkoff
                                             Title: Chairman and President

                                       3

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