Document:

Exhibit 10.3

Exhibit 10.3

SECURITY AGREEMENT

THIS SECURITY AGREEMENT is entered into as of October 21, 2009, by and between STREAMLINE HEALTH
SOLUTIONS, INC., a Delaware corporation (the “Guarantor”) and FIFTH THIRD BANK, an Ohio banking
corporation, the Lender under the Revolving Note (the “Secured Party”).

Section 1. Definitions:

1.1 Specific Definitions. The following definitions will apply:

“Accounts” means all accounts, accounts receivable, health-care-insurance receivables, credit
card receivables, contract rights, tax refunds from federal, state and local governments, and all
obligations in any form including but not limited to those arising out of the sale or lease of
goods or the rendition of services by Guarantor; all guaranties, letters of credit and other
security and supporting obligations for any of the above; all merchandise returned to or reclaimed
by Guarantor; and all books and records (including computer programs, tapes and data processing
software) evidencing an interest in or relating to the above; all winnings in a lottery or other
game of chance operated by a governmental unit or person licensed to operate such game by a
governmental unit and all rights to payment therefrom.

“Guarantor” means STREAMLINE HEALTH, INC., an Ohio corporation

“Equipment” means all machinery, machine tools, equipment, fixtures, office equipment,
furniture, furnishings, motors, motor vehicles, tools, dies, parts, jigs, goods (including, without
limitation, each of the items of equipment set forth on any schedule which is either now or in the
future attached to Secured Party’s copy of this Agreement), and all attachments, accessories,
accessions, replacements, substitutions, additions and improvements thereto, and all supplies used
or useful in connection therewith.

“Event of Default” means any “Event of Default” as defined in the Guaranty.

“Guaranty” means the Amended and Restated Continuing Guaranty Agreement dated as of the date
hereof between Guarantor and Secured Party.

“General Intangibles” means all general intangibles, choses in action, causes of action,
obligations or indebtedness owed to Guarantor from any source whatsoever, payment intangibles,
software, and all other intangible personal property of every kind and nature (other than Accounts)
including without limitation patents, trademarks, trade names, service marks, copyrights and
applications for any of the above, and goodwill, trade secrets, licenses, franchises, rights under
agreements, tax refund claims, and all books and records including all computer programs, disks,
tapes, printouts, customer lists, credit files and other business and financial records, and the
equipment containing any such information.

“Inventory” means any and all inventory, goods, supplies, wares, merchandises and other
tangible personal property, including raw materials, work in process, supplies and components, and
finished goods, whether held for sale or lease, or furnished or to be furnished under any contract
for service, or used or consumed in business and also including products of
and accessions to inventory, packing and shipping materials, and all documents of title,
whether negotiable or non-negotiable, representing any of the foregoing.

 

 

 

“Investment Property” means any investment property, security, whether certificated or
uncertificated, security entitlement, securities account, commodity contract or commodity account.

“Obligations” means all “Obligations” under and as defined in the Guaranty.

“Revolving Note” means the Amended and Restated Revolving Note dated as of October 21, 2009
executive by Borrower and payable to the Secured Party for itself and as agent for any affiliate of
Fifth Third Bancorp.

“Uniform Commercial Code” and “UCC” means the Uniform Commercial Code as in effect in the
State of Ohio and, to the extent the laws of any other state govern perfection, the effect of
perfection and nonperfection, the Uniform Commercial Code as in effect in such state.

1.2 Other Definitions. Capitalized terms not defined herein have the meanings set
forth in the Guaranty or, to the extent not defined therein, in the Revolving Note or, to the
extent not defined therein, in the UCC.

Section 2. Security.

2.1 Security Interest of Secured Party. To induce Secured Party to make the Revolving
Loans pursuant to the Revolving Note, and as security for all Obligations, Guarantor hereby assigns
to Secured Party as collateral and grants to Secured Party a continuing pledge and security
interest in the following property of Guarantor (the “Collateral”), whether now owned or existing
or hereafter acquired or arising and regardless of where it is located:

(a) all Accounts;

(b) all Inventory;

(c) all Equipment, Goods and Fixtures;

(d) all General Intangibles;

(e) all Investment Property, Money and Deposit Accounts;

(f) all equity interests in Borrower, all documents, instruments, chattel paper, electronic
chattel paper, securities, money, cash, letters of credit, letter of credit rights, promissory
notes, warrants, dividends, distributions, Commercial Tort Claims, contracts, agreements, contract
rights or other property, owned by Guarantor or in which Guarantor has an interest, which now or
hereafter are at any time in the possession or control of Guarantor, Secured Party or in transit by
mail or carrier to or in the possession of any third party acting on behalf of Secured Party,
without regard to whether Secured Party received the same in pledge, for safekeeping, as agent for
collection or transmission or otherwise or whether Secured Party
had conditionally released the same, and the proceeds thereof, all rights to payment from all
claims against Secured Party, and any deposit accounts of Guarantor and all amounts on deposit
therein or credited thereto, including certificates of deposit, all demand, time, savings, passbook
or other accounts;

 

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(g) all books and records relating to the Collateral;

(h) all Supporting Obligations relating to the Collateral; and

(i) all proceeds and products of Collateral and all additions and accessions to, replacements
of, insurance or condemnation proceeds of, and documents covering Collateral, all tort or other
claims against third parties arising out of damage or destruction of Collateral, all property
received wholly or partly in trade or exchange for Collateral, all fixtures, all leases of
Collateral and all rents, revenues, issues, profits and proceeds arising from the sale, lease,
license, encumbrance, collection, or any other temporary or permanent disposition, of the
Collateral or any interest therein.

2.2 Representations in Schedule I. Guarantor represents and warrants that the
representations and warranties in Schedule I attached hereto are true and correct in all material
respects. Except as otherwise permitted hereunder, Guarantor will not change its name, change its
jurisdiction of organization, transfer executive offices or maintain records with respect to
Accounts at any location other than the present locations specified in that schedule.

2.3 Provisions Concerning Accounts and Other Collateral.

(a) Guarantor represents and warrants that each Account reflected in Guarantor’s books and
records or hereafter created is, or at the time it arises will be, owned by Guarantor free and
clear of all Liens in favor of any third party other than Permitted Liens, will be a bona fide
existing obligation created by the final sale and delivery goods or the completed performance of
services by Guarantor in the ordinary course of its business, will be for a liquidated amount
maturing as stated in the supporting data covering such transaction, and will not be subject to any
known deduction, offset, counterclaim, return privilege or other condition. Any discounts, credits
and allowances relating to Accounts between Guarantor and its customers will be in accordance with
the usual customary practices of Guarantor, as such practices exist as of the date hereof.

(b) Secured Party may at any time notify Debtors that Accounts have been assigned to Secured
Party or of Secured Party’s security interest therein, and after default by Guarantor hereunder
collect the same directly and all collection costs and expenses shall be due from Guarantor and
shall constitute Obligations.

(c) If Guarantor becomes aware that a Debtor disputes liability or makes any claim with
respect to an Account in excess of $10,000 or that a receivership petition or petition under any
chapter of the federal bankruptcy act is filed by or against a Debtor, or that a Debtor dissolves,
makes an assignment for the benefit of creditors, becomes insolvent, fails or goes out of business,
or that any other event occurs which materially and adversely affects the value of any Account owed
by a debtor, Guarantor will within two business days notify Secured Party of
each such event. If an Event of Default has occurred and is continuing, Guarantor will not
grant any discounts, credit or allowances to any Debtor and will not accept returns of merchandise
without Secured Party’s consent. If an Event of Default has occurred and is continuing, Secured
Party may settle disputes and claims directly with Debtors and apply the net amounts collected from
such disputed Accounts to the Obligations, after expenses of collection.

 

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(d) Guarantor appoints Secured Party as its attorney-in-fact to endorse Guarantor’s name on
any checks, notes, acceptances, money orders, drafts or other forms of payment or security that may
come into Secured Party’s possession; to sign Guarantor’s name on any invoice or bill of lading
relating to any Accounts or Inventory, on drafts against Debtors, on schedules and assignments of
Accounts or Inventory, on notices of assignment and other public records, on verifications of
Accounts and on notices to Debtors; to notify post office authorities to change the address for
delivery of Guarantor’s mail to an address designated by Secured Party, to receive and open all
mail addressed to Guarantor and to retain all mail relating to Collateral and forward all other
mail to Guarantor; to send requests for verification of Accounts to customers or Debtors, executing
on its behalf any third party agreements or assignments to grant Secured Party control over the
Collateral, including but not limited to third party agreements between Guarantor, Secured Party,
and depository institutions, securities intermediaries, and issuers of letters of credit or other
support obligations, which third party agreements direct the third party to accept direction from
Secured Party regarding the maintenance and disposition of the Collateral and the products and
proceeds thereof; provided that Secured Party will not exercise any right or power granted under
the foregoing power-of-attorney unless an Event of Default has occurred and is continuing.
Guarantor ratifies and approves all acts of Secured Party as attorney-in-fact. Secured Party as
attorney-in-fact will not be liable for any acts or omissions, or for any error of judgment or
mistake of fact or law except for bad faith. This power, being coupled with an interest, is
irrevocable until all Obligations have been fully satisfied.

(e) If any Accounts will arise out of a contract with the United States of America or any
department, agency, subdivision or instrumentality thereof, Guarantor will promptly notify Secured
Party and upon the request of Secured Party, Guarantor will perfect Secured Party’s Lien in such
Accounts under the provisions of the Federal laws on assignment of claims.

(f) Guarantor will promptly notify Secured Party of any Commercial Tort Claim (including a
brief description thereof) and take such action as Secured Party may reasonably request (including
amending any UCC financing statement) to perfect Secured Party’s Lien in such Collateral.

2.4 Provisions Concerning General Intangibles. Guarantor represents and warrants that
Guarantor owns all of the General Intangibles in which Guarantor grants Secured Party a Lien, free
and clear of any Liens other than Permitted Liens. Guarantor will preserve all material patents,
trademarks, copyrights and the like which are necessary or useful for the conduct of its business.

 

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2.5 Provisions Concerning Inventory. (a) Guarantor represents and warrants that
Schedule I sets forth all places where Guarantor maintains Inventory or has maintained Inventory at
any time during the past twelve months, including, without limitations, facilities
leased and operated by Guarantor and locations neither owned nor leased by Guarantor.
Schedule I indicates whether the premises are those of a warehouseman or other party. No Inventory
will be removed from the current locations or stored at locations other than the current locations
disclosed to Secured Party on Schedule I, except (i) for the purpose of sale in the ordinary course
of Guarantor’s business or (ii) upon 30 days’ prior written notice to Secured Party, to such other
locations as to which all action required to perfect and protect Secured Party’s lien in such
Inventory has been taken. Inventory may be moved from one current location to another.

(b) Guarantor will keep all Inventory in good order and condition and will maintain full,
accurate and complete books and records with respect to Inventory at all times.

(c) Except during the continuance of an Event of Default and following notice from Secured
Party, Guarantor may sell Inventory in the ordinary course of its business (which does not include
a transfer in full or partial satisfaction of Indebtedness).

(d) If any Inventory is stored with a bailee, warehouseman or similar party at any time,
Guarantor so storing such Inventory will inform Secured Party of that fact and will take all steps
requested by Secured Party so that Secured Party retains a first priority perfected Lien in those
assets.

(e) Guarantor has not purchased any of the Collateral in a bulk transfer or in a transaction
which was outside the ordinary course of the seller’s business, except pursuant to the Acquisition
or as set forth on an exhibit attached hereto.

2.6 Provisions Concerning Equipment. (a) Guarantor represents and warrants that
Schedule I sets forth all places where any of Guarantor’s Equipment is located or has been located
at any time during the past twelve months. No Equipment will be moved to any location not
disclosed to Secured Party on Schedule I but Equipment may be moved from one such location to
another.

(b) Guarantor will maintain its assets in good repair and working order, ordinary wear and
tear excepted, and will make all appropriate repairs and replacements thereof necessary to allow
Guarantor to continue its business as currently conducted. Guarantor will immediately notify
Secured Party of any loss to the Collateral which is reasonably likely to result in a loss in
excess of $50,000.

(c) Guarantor will immediately deliver to Secured Party all certificates of title or
applications for title or the like for any vehicles, or other Equipment covered by certificates of
title. Guarantor will fully cooperate with Secured Party as necessary to perfect Secured Party’s
Lien in such assets.

(d) Guarantor will not permit any item of Equipment to become a fixture to real estate or
accession to other property and the Equipment is now and will at all times remain and be personal
property, except with the prior written consent of Secured Party. If any of the Collateral is or
may become a fixture, Guarantor will obtain from all persons with an interest in the relevant real
estate such waivers or subordinations as Secured Party reasonably requires.

 

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2.7 Liens. Guarantor has good and valid title to the Collateral, and upon the filing
of a Uniform Commercial Code financing statement with the Secretary of State of Ohio, the Liens
granted to Secured Party in this Agreement will be fully perfected first priority Liens in the
Collateral (to the extent a Lien in such Collateral can be perfected by filing a financing
statement) with priority over the rights of every person subject only to Permitted Liens.

2.8 Further Assurances.

(a) Guarantor will execute and deliver to Secured Party at Secured Party’s request all
financing statements (if necessary), continuation statements (if necessary) and other documents
that Secured Party may reasonably request, in form satisfactory to Secured Party, to perfect and
maintain perfected Secured Party’s security interest in the Collateral and to fully consummate all
transactions contemplated under this Agreement.

(b) If any Collateral, including proceeds, consists of a letter of credit, advice of credit,
instrument, money, negotiable documents, chattel paper or similar property (collectively,
“Negotiable Collateral”) or Investment Property evidenced by a certificate or certificates,
Guarantor will, promptly upon receipt thereof, endorse and assign such Negotiable Collateral or
such Investment Property over to Secured Party and deliver actual physical possession of the
Negotiable Collateral or Investment Property to Secured Party.

(c) Secured Party may inspect and verify Guarantor’s books and records at any time or times
hereafter, during usual business hours and after reasonable notice, in order to verify the amount
or condition of the Collateral, or any other matter relating to the Collateral or Guarantor’s
financial condition. Guarantor will promptly deliver to Secured Party copies of all books and
records requested by Secured Party.

(d) Guarantor will take any other and further action reasonably necessary or desirable as
requested by Secured Party to grant Secured Party control over the Collateral, as “control” is
defined in the applicable version of the Uniform Commercial Code, including without limitation (i)
executing and/or authenticating any assignments or third party agreements; (ii) delivering, or
causing the delivery of, any of the Collateral to the possession of Secured Party; (iii) obtaining
written acknowledgments of the lien of Secured Party and agreements of subordination to such lien
from third parties in possession of the Collateral in a form acceptable to Secured Party (including
from any bank at which Guarantor maintains any deposit account). Guarantor consents to and hereby
authorizes any third party in an authenticated record or agreement between Guarantor, Secured
Party, and the third party, including but not limited to depository institutions, securities
intermediaries, and issuers of letters of credit or other support obligations, to accept direction
from Secured Party regarding the maintenance and disposition of the Collateral and the products and
proceeds thereof, and to enter into agreements with Secured Party regarding same, without further
consent of the Guarantor.

2.9 Other Amounts Deemed Obligations. If Guarantor fails to pay any tax, assessment,
government charge or levy or to maintain insurance within the time permitted by this Agreement or
the Guaranty, or to discharge any Lien prohibited hereby, or to comply with any other obligation,
Secured Party may, but will not be required to, pay, satisfy, discharge or bond
the same of the account of Guarantor, and to the extent permitted by law and all monies so
paid out will be secured by the Collateral.

 

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2.10 Guarantor Remains Liable. Guarantor will remain liable under any contracts and
agreements included in the Collateral to perform all of its duties and obligations thereunder to
the same extent as if this Agreement had not been executed, and Secured Party will not have any
obligation or liability under such contracts and agreements by reason of this Agreement or
otherwise.

2.11 Insurance. Guarantor will insure the Collateral against loss or damage of the
kinds and in the amounts customarily insured against by companies with established reputations
engaged in the same or similar business as Guarantor. All such policies will (a) be issued by
financially sound and reputable insurers, (b) name Secured Party as an additional insured and,
where applicable, as loss payee under a lender loss payable endorsement satisfactory to Secured
Party, and (c) will provide for notice to Secured Party before such policy is altered or canceled
all of which will be evidenced by a Certificate of Insurance delivered to Secured Party by
Guarantor on the date of execution of this Agreement.

Section 3. Remedies.

3.1 Remedies. If any Event of Default occurs and is continuing, in addition to the
remedies provided in the Guaranty:

(a) Secured Party may resort to the rights and remedies of a secured party under the UCC
including the right to enter any premises of Guarantor, with or without legal process and take
possession of the Collateral and remove it and any records pertaining thereto and/or remain on such
premises and use it for the purpose of collecting, preparing and disposing of the Collateral;

(b) Secured Party may ship, reclaim, recover, store, finish, maintain and repair the
Collateral, and may sell the Collateral at public or private sale, and Guarantor will be credited
with the net proceeds of such sale only when they are actually received by Secured Party and any
requirement of reasonable notice of any disposition of the Collateral will be satisfied if such
notice is sent to Guarantor 10 days prior to such disposition;

(c) Guarantor will upon request of Secured Party assemble the Collateral and any records
pertaining thereto and make them available at a place designated by Secured Party; and

(d) Secured Party may use, in connection with any assembly or disposition of the Collateral,
any trademark, trade name, tradestyle, copyright, patent right, trade secret or technical process
used or utilized by Guarantor.

3.2 No Remedy Exclusive. No remedy set forth herein is exclusive of any other
available remedy or remedies, but each is cumulative and in addition to every other remedy given
under this Agreement or the Guaranty or now or hereafter existing at law or in equity or by
statute.

 

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Section 4. Miscellaneous Provisions.

4.1 Miscellaneous. No delay or omission to exercise any right will impair any such
right or be a waiver thereof, and a waiver on one occasion will be limited to that particular
occasion. This Agreement may be amended only in writing signed by the party against whom
enforcement of the amendment is sought. This Agreement may be executed in counterparts. If any
part of this Agreement is held invalid, the remainder of this Agreement will not be affected
thereby.

4.2 Binding Effect. This Agreement will be binding upon and inure to the benefit of
the respective legal representatives, successors and assigns of the parties hereto; however,
Guarantor may not assign any of its rights or delegate any of its obligations hereunder. Secured
Party (and any subsequent assignee) may transfer and assign this Agreement or may assign partial
interests or participation in the Revolving Loans to other persons.

4.3 Financing Statement. Guarantor hereby authorizes Secured Party to file UCC
Financing Statements on behalf of Secured Party and Guarantor with respect to the Collateral.

4.4 Representations and Warranties. All representations and warranties made by the
Guarantor are made both before and after giving effect to the Acquisition.

4.5 Notices. Any notice, request, instruction or other document required to be given
hereunder or under any other Loan Document shall be in writing and shall be given to the addresses
and in the manner set forth in the Guaranty.

4.6 Governing Law; Jurisdiction. This Agreement will be governed by the domestic laws
of the State of Ohio. Guarantor agrees that the state and federal courts in Hamilton County, Ohio
have exclusive jurisdiction over all matters arising out of this Agreement, and that service of
process in any such proceeding will be effective if mailed to Guarantor at its address set forth in
the Guaranty. EACH PARTY HERETO HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS ARISING
OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

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IN WITNESS WHEREOF, Guarantor and Secured Party have executed this Security Agreement by their
duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	STREAMLINE HEALTH SOLUTIONS, INC.

 	 
	 	By:  	/s/ Donald E. Vick, Jr.
 	 
	 	 	Name:  	Donald E. Vick, Jr. 	 
	 	 	Title:  	Interim CFO 	 
	 
	 	FIFTH THIRD BANK

 	 
	 	By:  	/s/ Daniel G. Feldmann
 	 
	 	 	Name:  	Daniel Feldmann 	 
	 	 	Title:  	AVP 	 

 

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SCHEDULE I

SPECIFIC REPRESENTATIONS

	 	1.	 	The exact legal name of Guarantor is: Streamline Health Solutions,
Inc.

	 
	 	2.	 	Guarantor has not changed its name since it was formed, except: It was
formerly known as LanVision Systems, Inc.

	 
	 	3.	 	Guarantor does not use in its business any trade names other than the
following: Streamline Health or formerly LanVision

	 
	 	4.	 	Guarantor’s form of organization (i.e., corporation, partnership,
limited liability company): corporation

	 
	 	5.	 	Guarantor’s State of location as a registered organization (i.e.,
corporation, limited partnership or limited liability company): Delaware

	 
	 	6.	 	Guarantor’s EIN: 31-1455414

	 
	 	7.	 	Guarantor’s organization ID#: Delaware Franchise ID: 2585139

	 
	 	8.	 	Address for books and records: 10200 Alliance Road, Suite 200,
Cincinnati, OH 45242

	 
	 	9.	 	Addresses of other Collateral locations, including Counties, for the
past five (5) years: 10200 Alliance Road, Suite 200, Cincinnati, OH 45242 and
5481 Creek Road, Cincinnati, OH 45242- both Hamilton County

	 
	 	10.	 	Name and address of landlord or owner if location is not owned by the
Guarantor: Alliance Street LLC, C/O West Shell Commercial, 425 Walnut Street,
Suite 1200, Cincinnati, OH 45202

	 
	 	11.	 	Guarantor is qualified to transact business in the following states: DE
and OH

	 
	 	12.	 	Guarantor has its chief executive office and principal place of
business at: 10200 Alliance Road, Suite 200, Cincinnati, OH 45242

	 
	 	13.	 	Guarantor maintains all of its records with respect to its Accounts at
the address specified in clause 12.

	 
	 	14.	 	Guarantor also has places of business at: none

	 
	 	15.	 	The following entities (a) have been merged into Guarantor or (b) have
sold substantially all of their assets to Guarantor outside the ordinary course
of their business since Guarantor was formed: Streamline Health, Inc. is a
wholly owned subsidiary of Streamline Health Solutions, Inc.

	 
	 	16.	 	Guarantor owns the following numbers of motor vehicles:

	 
	 	 	 	autos:    0    trucks:    0    tractors:    0    trailers    0   .

 

 

 

	 	17.	 	Guarantor is not the owner or licensee of any registered patents,
trademarks or copyrights or patent, trademark or copyright applications except:
none

	 
	 	18.	 	Guarantor does not (a) have any subsidiaries, or own, or have any
interest in, stock in any other corporations, or own an interest in any
partnerships or joint ventures or (b) own, or have any interest in, any
promissory notes, instruments or chattel paper (whether tangible or electronic)
except: Streamline Health, Inc. is a wholly owned subsidiary of Streamline
Health Solutions, Inc.

	 
	 	19.	 	Guarantor does not own any deposit accounts, securities accounts or
commodities accounts other than as set forth below (including the bank or
financial institution maintaining such account, the account number and the type
of account): None

	 
	 	20.	 	Guarantor is not the owner of any life insurance policies except: None

	 
	 	21.	 	Guarantor is not a plaintiff or defendant in any litigation except as
follows: None

	 
	 	22.	 	List of all existing Commercial Tort Claims (by case title with court
and brief description of claim): None

	 
	 	23.	 	Guarantor only maintains Inventory at the following locations (each of
which, as specified below, is owned or leased or neither owned nor leased by
Guarantor): None

	 
	 	24.	 	Guarantor only maintains Equipment at the following locations (each of
which, as specified below, is owned or leased by Guarantor): None

	 
	 	25.	 	Guarantor only owns or leases the following real property (specifying whether
such real property is owned or leased): Noneexv10w1

Exhibit 10.1

EXECUTION COPY

Dated as of October 13, 2009

TLC Vision (USA) Corporation

16305 Swingley Ridge Road, Suite 300

Chesterfield, MO 63017

Attention: Michael Gries

	Re:  	 	Amendment to Limited Waiver

Ladies and Gentlemen:

     We refer to the Limited Waiver, dated as of September 30, 2009, among TLC Vision (USA)
Corporation (the “Borrower”), TLC Vision Corporation (“Parent”), as Guarantor, the
Additional Guarantors, and the Required Lenders party thereto (the “Limited Waiver”).
Capitalized terms used but not defined in this Amendment to Limited Waiver (this “Amendment to
Limited Waiver”) have the same meanings herein as in the Limited Waiver.

     The Loan Parties have requested that the Required Lenders grant an extension with respect to
the Waiver Period (as defined in the Limited Waiver). Accordingly, the Loan Parties hereby agree
with the undersigned Required Lenders as follows:

     SECTION 1. Amendment to Limited Waiver. Section 1(d) of the Limited Waiver is hereby
amended as set forth below:

     (a) by amending and restating clause (v) thereof in its entirety as follows:

     “(v) “Waiver Period” means the period commencing on the Limited Waiver
Effective Date and ending on the earliest to occur of (A) November 15, 2009, (B) the
occurrence of any Default or Event of Default (other than a Specified Default or a Payment
Default), (C) October 21, 2009, unless on or before such date the Administrative Agent and
counsel to the Required Lenders has received a copy of an engagement letter, substantially
in the form agreed between the steering committee for the Lenders and the Parent, duly
executed by the Parent and a restructuring monitor satisfactory to the steering committee
for the Lenders and the Parent, (D) the restructuring monitor party to the engagement letter
referred to in clause (C) hereof ceases to be retained by the Parent as restructuring
monitor to assist the Parent and its Subsidiaries with the implementation of the
Restructuring, and (E) the date on which the steering committee for the Lenders reasonably
determines that the Loan Parties are not making satisfactory progress with respect to the
implementation and pursuit of the Restructuring”, and

     (b) by inserting the following new clauses (vi) and (vii) at the end thereof:

     “(vi) “Required Consenting Lenders” means, as of any date of determination,
the Lender Parties and Hedge Banks holding more than sixty-six and two-thirds percent (662/3%)
of the aggregate amount of the Obligations under the Loan Documents and

 

 

constituting more than fifty percent (50%) in number of all the Lender Parties and Hedge
Banks; and

     (vii) “Restructuring” means the restructuring of certain obligations and
other liabilities of the Parent and certain of its Subsidiaries and other related
transactions contemplated in connection therewith, proposed terms of which have been
discussed between the Loan Parties and the Lenders, subject to (A) the completion of certain
proposed transactions prior to the implementation of such restructuring and other
transactions, (B) the negotiation, execution and delivery of definitive documentation on
terms satisfactory to the Required Consenting Lenders and (C) completion of all conditions
precedent satisfactory to the Required Consenting Lenders.”

     SECTION 2. Acknowledgments and Agreements of the Loan Parties. Each of the Loan
Parties hereby irrevocably and unconditionally agrees, acknowledges and affirms to the Agents, the
Issuing Bank and the Lenders that except for the amendments to the Limited Waiver set forth in
Section 1 hereof, this Amendment to Limited Waiver shall not, by implication or otherwise,
limit, impair, constitute a waiver of or otherwise affect any rights or remedies of the Agents,
the Issuing Bank or the Lenders under any of the Loan Documents, nor alter, modify, amend or in
any way affect any of the rights, remedies, obligations or any covenants of the Loan Parties
contained in any of the other Loan Documents, all of which are ratified and confirmed in all
respects and shall continue in full force and effect.

     SECTION 3. Representations and Warranties. Each of the Loan Parties hereby represents
and warrants to the Agents, the Issuing Bank and the Lenders that:

     (a) Due Execution and Authorization; Legal, Valid and Binding
Obligation. This Amendment to Limited Waiver has been duly executed and
delivered
by each Loan Party. The execution and delivery by each Loan Party of this Amendment
to Limited Waiver is within such Loan Party’s powers and has been duly authorized by
all necessary action on its part. This Amendment to Limited Waiver constitutes the legal,
valid and binding obligations of each Loan Party, enforceable against such Loan Party
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) No Conflicts. The execution, delivery and performance by each
Loan Party of this Amendment to Limited Waiver, are within such Loan Party’s
corporate, limited liability company, limited liability partnership or limited
partnership (as applicable) powers, have been duly authorized by all necessary corporate, limited
liability company, limited liability partnership or limited partnership (as applicable)
action, and do not (i) contravene such Loan Party’s charter, bylaws, limited liability
company agreement, partnership agreement or other constituent documents, (ii) violate
any law, rule, regulation, order, writ, judgment, injunction, decree, determination or
award, (iii) conflict with or result in the breach of, or constitute a default or
require any
payment to be made under, any contract, loan agreement, indenture, mortgage, deed of
trust, lease or other instrument binding on or affecting any Loan Party, any of its
Subsidiaries or any of their properties or (iv) except for the Liens created under the
Loan

2

 

Documents, result in or require the creation or imposition of any Lien upon or with respect to any
of the properties of any Loan Party or any of its Subsidiaries.

     (c) Representations. After giving effect to this Amendment to Limited
Waiver each of the representations and warranties made by any Loan Party contained in
the Loan Documents is true and correct in all material respects as of the date hereof,
except to the extent such representations and warranties expressly relate to an earlier date.

     (d) Ratification of Obligations.

     (i) There are no understandings or agreements relating to the Obligations other than
the Loan Documents.

     (ii) Neither the Lenders, any Agent, nor the Issuing Bank are in default under any of
the Loan Documents or otherwise have breached any obligations to the Loan Parties.

     (iii) There are no offsets, counterclaims or defenses to the Obligations or to the
rights, remedies or powers of the Administrative Agent, the Collateral Agent, the Issuing
Bank, or any Lender in respect of any of the Obligations or any of the Loan Documents, and
the Loan Parties agree not to interpose (and each does hereby waive and release) any such
defense, set-off or counterclaim in any action brought by the Administrative Agent, the
Collateral Agent, the Issuing Bank or any of the Lenders with respect thereto.

     (e) No Defaults. No Default or Event of Default exists on the date
hereof, other than the Specified Defaults or Payment Defaults.

     (f) Material Information.

     (i) None of the factual information and data (taken as a whole) at any time furnished
by any Loan Party, any of its Subsidiaries or any of their respective counsel, financial
advisers or authorized representatives to any Agent, any Lender, or any of their
respective counsel or financial advisors in connection with the Loan Documents and the
proposed Restructuring of the obligations thereunder, contains any untrue statement of a
material fact or omits to state any material fact necessary to make such information and
data (taken as a whole) not materially misleading, in each case, at the time such
information was provided in light of the circumstances under which such information or
data was furnished.

     (ii) The projections and other pro forma financial information provided to any Agent,
any Lender or any of their respective counsel or financial advisers were prepared in good
faith based upon assumptions believed by the Loan Parties to be reasonable at the time
made, it being recognized by the Agents and the Lenders that such projections as to future
events are not to be viewed as facts and that actual results during the period or periods
covered by any such projections may differ from the projected results and such differences
may be material.

3

 

     SECTION 4. Conditions to Effectiveness This Amendment to Limited Waiver shall become
effective if, and only if, on or before October 21, 2009, each of the following conditions
precedent shall have been satisfied:

     (a) Execution and Delivery of Documents. The Administrative Agent
and counsel to the Required Lenders shall have received (i) duly executed counterparts
of this Amendment to Limited Waiver which, when taken together, bear the authorized
signatures of each of the Borrower, the Parent and the Required Lenders, required for
this Amendment to Limited Waiver to become effective and (ii) duly executed counterparts of
the Consent, in the form of Annex A hereto, which when taken together, bear the
authorized signatures of each of the Loan Parties.

     (b) Proof of Corporate Action. The Administrative Agent and counsel
to the Required Lenders shall have received from each of the Loan Parties copies,
certified by a duly authorized officer of such Person to be true and complete on and as
of the date hereof, of the records of all corporate action taken by such Person to
authorize (A) such Person’s execution and delivery of this Amendment to Limited Waiver, and (B)
such Person’s performance of all of its agreements and obligations under this
Amendment to Limited Waiver. Such certified copies shall be in form and substance
reasonably satisfactory to the Required Lenders.

     (c) Incumbency Certificate. The Administrative Agent and counsel to
the Required Lenders shall have received incumbency certificates, dated as of the date
hereof, signed respectively by a duly authorized officer of each of the Loan Parties,
and giving the name and bearing a specimen signature of each individual who shall be
authorized (i) to sign, in the name and on behalf of such Person this Amendment to
Limited Waiver, and (ii) to give notices and to take other action on behalf of such
Person under this Amendment to Limited Waiver and the Loan Documents. Such certified
copies or certificate shall be in form and substance reasonably satisfactory to the
Required Lenders.

     (d) Closing Certificate. The Administrative Agent and counsel to the
Required Lenders shall have received a certificate, dated as of the date hereof, signed
by the Chief Financial Officer of the Borrower, to the effect that (i) each of the
representations and warranties of the Loan Parties contained in Section 3
hereof are true and correct as of the date hereof, and (ii) all conditions to the effectiveness of this
Amendment to Limited Waiver set forth in this Section 4 have been satisfied in
all respects.

     (e) Fees, Costs and Expenses. The Borrower shall have paid all
invoiced unpaid fees and out-of-pocket expenses and disbursements of (i) Bingham
McCutchen LLP (“Bingham”), counsel to certain of the Lenders, pursuant to the
fee agreement dated as of February 10, 2009, (ii) Gordian Group LLC, the financial advisor
engaged by Bingham for the benefit of the Lenders represented by it, pursuant to the
engagement letter, dated as of February 20, 2009, (iii) Stikeman Elliott LLP, Canadian
counsel engaged by Bingham for the benefit of the Lenders represented by it, pursuant to

4

 

the fee agreement dated as of February 10, 2009, and (iv) the Agents, pursuant to Section
9.04 of the Credit Agreement.

     SECTION 5. Release. In consideration of the foregoing, each of the Loan Parties and
its successors and assigns (collectively, the “Releasors”), as applicable, release and forever
discharge the Agents, the Issuing Bank, and each Lender that executes this Amendment to Limited
Waiver and their respective affiliates, officers, directors, employees, agents, attorneys,
predecessors, successors and assigns, both present and former (collectively, together with the
Agents, the Issuing Bank and each Lender, the “Bank Affiliates”), of and from any and all manner
of action and actions, causes of action, suits, debts, controversies, damages, judgments,
executions, claims and demands whatsoever, asserted or unasserted, in law or in equity, relating
to or arising out of any Loan Document, against any of the Bank Affiliates which any Releasor ever
had or now has on the date hereof, upon or by reason of any manner, cause, causes or thing
whatsoever, whether presently existing, suspected, known, unknown, contemplated or anticipated.

     SECTION 6. GOVERNING LAW. THIS AMENDMENT TO LIMITED WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 7. Miscellaneous. This Amendment to Limited Waiver constitutes the entire
agreement of the parties with respect to the subject matter hereof and supersedes any prior
understandings or agreements which may have existed with respect thereto. Except as expressly
provided herein, this Amendment to Limited Waiver shall not, by implication or otherwise, limit,
impair, constitute a waiver of or otherwise affect any rights or remedies of the Agents or the
Lender Parties under the Credit Agreement or the other Loan Documents, nor alter, modify, amend or
in any way affect any of the obligations or covenants contained in the Credit Agreement or any of
the other Loan Documents, all of which are ratified and confirmed in all respects and shall
continue in full force and effect. To the extent there is any inconsistency between the terms and
provisions of any Loan Document and the terms and provisions of this Amendment to Limited Waiver,
the terms and provisions of this Amendment to Limited Waiver shall govern. The headings used in
this Amendment to Limited Waiver are for convenience of reference only and shall not in any way be
deemed to limit, define or describe the scope and intent of this Amendment to Limited Waiver or any
provision hereof. This Amendment to Limited Waiver shall be binding upon and inure to the benefit
of each of the Lenders, the Agents and the Issuing Bank and each of the Loan Parties, and to each
of their respective successors and assigns. This Amendment to Limited Waiver may not be modified or
amended except by a written instrument executed by the party to be charged. Execution and delivery
of this Amendment to Limited Waiver by facsimile transmission or other electronic means shall
constitute execution and delivery of this Amendment to Limited Waiver for all purposes, with the
same force and effect as execution and delivery of an original manually signed copy hereof. This
Amendment to Limited Waiver may be executed in any number of counterparts by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and same agreement.

[Remainder of this page intentionally left blank]

5

 

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

	 	 	 	 	 
	 	Very truly yours,

TLC VISION (USA) CORPORATION, as

Borrower

 	 
	 	By:  	/s/ William McManus
 	 
	 	 	Name:  	William McManus 	 
	 	 	Title:  	Interim CFO 	 
	 
	 	TLC VISION CORPORATION, as Parent and

Guarantor

 	 
	 	By:  	/s/ William McManus
 	 
	 	 	Name:  	William McManus 	 
	 	 	Title:  	Interim CFO 	 
	 

 

Annex A

CONSENT

Dated as of October 13, 2009

     We, the undersigned, as Guarantors under the Guaranty and Grantors under the Security
Agreements and the Intellectual Property Security Agreement (each as defined in the Credit
Agreement) in favor of the Agents and, for their benefit and the benefit of the Lenders party to
the Credit Agreement referred to in the foregoing Amendment to Limited Waiver (“Amendment to
Limited Waiver”), hereby consent to such Amendment to Limited Waiver and hereby confirm and
agree that notwithstanding the effectiveness of such Amendment to Limited Waiver, each of the
Guaranty, the Security Agreements and the Intellectual Property Security Agreement is, and shall
continue to be, in full force and effect and is hereby ratified and confirmed in all respects.

	 	 	 	 	 
	 	GUARANTORS

TLC VISION CORPORATION

 	 
	 	By:  	/s/ William McManus
 	 
	 	 	Name:  	William McManus 	 
	 	 	Title:  	Interim CFO 	 

 

 

	 	 	 	 	 

AMERICAN EYE INSTRUMENTS, INC.

LASER EYE SURGERY, INC.

LASER VISION CENTERS, INC.

LVCI CALIFORNIA, LLC

     By: Laser Vision Centers, Inc., its Member

SIGHTPATH MEDICAL INC.

OR PARTNERS, INC.

O.R. PROVIDERS, INC.

SOUTHEAST MEDICAL, INC.

SOUTHERN OPHTHALMICS, INC.

TLC CAPITAL CORPORATION

TLC FLORIDA EYE LASER CENTER, LLC

     By: TLC THE LASER CENTER (INSTITUTE) INC., ITS
MEMBER

TLC LASER EYE CENTERS (ATAC), LLC

TLC LASER EYE CENTERS (REFRACTIVE I) INC.

TLC MANAGEMENT SERVICES INC.

TLC MIDWEST EYE LASER CENTER, INC.

TLC THE LASER CENTER (ANNAPOLIS) INC.

TLC THE LASER CENTER (BALTIMORE MANAGEMENT) LLC

TLC THE LASER CENTER (BALTIMORE) INC.

TLC THE LASER CENTER (BOCA RATON) LIMITED
PARTNERSHIP

     By: (NORTHEAST) INC., ITS GENERAL PARTNER

TLC THE LASER CENTER (CAROLINA) INC.

TLC THE LASER CENTER (CONNECTICUT) L.L.C.

     By: TLC THE LASER CENTER (NORTHEAST) INC., ITS
SOLE MEMBER

TLC THE LASER CENTER (INSTITUTE) INC.

TLC THE LASER CENTER (NORTHEAST) INC.

TLC VC, LLC

TLC VISION SOURCE, INC.

TLC WHITTEN LASER EYE ASSOCIATES, LLC

     By: TLC THE LASER CENTER (NORTHEAST) INC., ITS
MEMBER

TRUVISION, INC.

TRUVISION CONTACTS, INC.

TRUVISION PROVIDER ONLINE SERVICES, INC.

VALLEY LASER EYE CENTER, LLC

By: LASER VISION CENTERS, INC., ITS SOLE MEMBER

	 	 	 	 	 
	 	 	 
	By:  	/s/ William McManus
 	 	 
	 	Name:  	William McManus 	 	 
	 	Title:  	Interim CFO 	 	 

 

 

	 	 	 	 	 

TLC THE LASER CENTER (MONCTON) INC.

RHEO CLINIC INC.

VISION CORPORATION

	 	 	 	 	 
	 	 	 
	By:  	/s/ William McManus
 	 	 
	 	Name:  	William McManus 	 	 
	 	Title:  	Interim CFO 	 	 

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Brentwood CLO Ltd.

 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Loan Funding IV LLC

 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Emerald Orchard Limited

 	 	 
	By:  	/s/ Irfan Ahmed
 	 	 
	 	Name:  	IRFAN AHMED 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Greenbriar CLO, Ltd.

 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

HCSMF Scotia Swap

 	 	 
	By:  	/s/ Scott Kerr
 	 	 
	 	Name:  	SCOTT KERR 	 	 
	 	Title:  	AUTHORIZED SIGNATORY 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Loan Star State Trust

 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Longhorn Credit Funding, LLC

 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Red River CLO Ltd.

 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Rockwall CDO II Ltd.

 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Southfork CLO, Ltd.
 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

 [Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

Loan Funding VII LLC
 	 	 
	By:  	/s/ Michael Pusateri
 	 	 
	 	Name:  	Michael Pusateri 	 	 
	 	Title:  	Chief Operating Officer 	 	 
	 

 [Signature Page to Amendment to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:

GALE FORCE 3 CLO. LTD.

By: GSO/Blackstone Debt Funds Management LLC

       as Collateral Manager

 	 	 
	By:  	/s/ Daniel H. Smith
 	 	 
	 	Name:  	Daniel H. Smith 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

 [Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

	 	 	 	 	 
	GALE FORCE 1 CLO. LTD.

By: GSO/Blackstone Debt Funds Management LLC

       as Collateral Manager
 	 	 
	 	 	 
	By:  	/s/ Daniel H. Smith 	 	 
	 	Name:  	Daniel H. Smith  	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

	 	 	 	 	 
	FM LEVERAGED CAPITAL FUND II

By: GSO/Blackstone Debt Funds Management LLC

       as Subadviser to FriedbergMilstein LLC
 	 	 
	 	 	 
	By:  	/s/     Daniel H. Smith 	 	 
	 	Name:  	Daniel H. Smith 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

	 	 	 	 	 
	MONUMENT PARK CDO LTD.

By: Blackstone Debt Advisors L.P. 

       as Collateral Manager
 	 	 
	 	 	 
	By:  	/s/ Daniel H. Smith
 	 	 
	 	Name:  	Daniel H. Smith  	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

	 	 	 	 	 
	CIFC Funding 2007-48, LTD.

 	 	 
	By:  	/s/ Michio Brunner
 	 	 
	 	Name:  	Michio Brunner 	 	 
	 	Title:  	Authorized Signatory 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

CIFC Funding 2007 — IV, Ltd.

	 	 	 	 	 
	By:  	/s/ Steve Vaccaro
 	 	 
	 	Name:  	Steve Vaccaro 	 	 
	 	Title:  	Co-Chief Investment Officer 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

Sargas CLO I LTD.

By: Sargas Asset Management, LLC,

       its Portfolio Manager

	 	 	 	 	 
	By:  	/s/ Mark S. Maglaya
 	 	 
	 	Name:  	Mark S. Maglaya 	 	 
	 	Title:  	Assistant Secretary 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

Pangaea CLO 2007-1 LTD.

By: Pangaea Asset Management, LLC, its

       Collateral Manager

	 	 	 	 	 
	By:  	/s/ Mark S. Maglaya
 	 	 
	 	Name:  	Mark S. Maglaya 	 	 
	 	Title:  	Assistant Secretary 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

 

 

Agreed to and Accepted By:

ACA CLO 2007-1, LTD

By: Its investment advisor

       Apidos Capital Management, LLC

	 	 	 	 	 
	By:  	/s/ Vincent Ingato
 	 	 
	 	Name:  	Vincent Ingato 	 	 
	 	Title:  	Portfolio Manager 	 	 
	 

[Signature Page to Amendment to Limited Waiver]

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