Document:

EXHIBIT 4.1

THIS SUBORDINATED CONVERTIBLE NOTE HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE OR OTHER SECURITIES
LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR ASSIGNED (i) EXCEPT PURSUANT
TO REGISTRATION THEREOF UNDER SUCH LAWS, OR (ii) UNLESS, IN THE WRITTEN OPINION
OF COUNSEL ADDRESSED TO BIOANALYTICAL SYSTEMS, INC., FROM COUNSEL REASONABLY
SATISFACTORY TO BIOANALYTICAL SYSTEMS, INC., THE PROPOSED TRANSFER MAY BE
EFFECTED IN COMPLIANCE WITH APPLICABLE SECURITIES LAWS WITHOUT SUCH
REGISTRATION.

THIS NOTE IS SUBORDINATED TO CERTAIN SENIOR INDEBTEDNESS OF
BIOANALYTICAL SYSTEMS, INC. THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF
COVENANTS AND AGREES THAT AMOUNTS OWING WITH RESPECT TO THIS NOTE SHALL BE
SUBORDINATED IN ACCORDANCE WITH THE PROVISIONS OF SENIOR DEBT (AS DEFINED
HEREIN), AND THE HOLDER ACCEPTS AND AGREES TO BE BOUND BY SUCH PROVISIONS.

6% SUBORDINATED
CONVERTIBLE NOTE

	
  $_____________________

  	
  Dated:
  ____________________, 2002

  

        For
value received, Bioanalytical Systems, Inc., an Indiana corporation with its
principal offices at 2701 Kent Avenue, Purdue Research Park, West Lafayette,
Indiana 47906-1382 (“Maker”),
hereby promises to pay to the order of [Name
of holder] or [his/her/its]
assigns (the “Holder”),
at [address] or at such other
place as the Holder may direct in writing to the Maker, in lawful money of the
United States of America, the principal amount of
___________________________________ Dollars ($____________) and interest, as
provided herein, all without relief from valuation or appraisement laws. This
Note is being delivered in connection with the Agreement and Plan of Merger by
and among the Maker, PI  Acquisition
Corp., and PharmaKinetics Laboratories, Inc. dated as of June 20, 2002 (the “Merger Agreement”).

        1.    Payment
of Principal.  Subject to acceleration or earlier payment as
provided for elsewhere in this 6% Subordinated Convertible Note (this “Note”), the Maker
shall pay to the Holder on January 1, 2008 (the “Maturity Date”), the entire unpaid
principal balance of this Note plus all accrued and unpaid interest through and
including that date.

        2.    Interest.  
For a period of one year from the date hereof, no interest shall accrue on the
principal amount of this Note. Beginning as of ________, 2003 (the “Anniversary Date”),
interest on the unpaid principal balance hereof existing from time to time
shall accrue at the rate of 6% per annum. Interest shall be calculated on the
basis of actual daily balances of outstanding principal for the exact number of
days the principal remains outstanding and shall be computed on the basis of a
365-day year. Subject to acceleration or earlier payment as provided for
elsewhere in this Note, interest shall be payable by wire transfer to an
account designated by the Holder, in arrears biannually on the 15th
day of July and the 15th day of January of each year following the
Anniversary Date, until the Maturity Date, on which date all accrued and unpaid
interest shall be due and payable.

        3.    
Prepayment.  Upon twenty five (25) days prior written notice
delivered to the Holder (a “Prepayment Notice”), the Maker may prepay all or any
portion of the unpaid principal balance hereof and accrued interest, without
premium or penalty; provided, however, all sums received in prepayment shall
first be applied in payment of accrued but unpaid interest and the excess, if
any, shall then be applied to the unpaid principal balance hereof. In the event
that the Maker elects to so prepay this Note, the Holder may elect, rather than
accept such prepayment, to convert the relevant portion of this Note in
accordance with Section 6 hereof; provided, however, that the Maker must
receive the Holder’s Election Notice (as defined below) at least five (5) days
prior to the date specified in the Maker’s Prepayment Notice for the Maker’s
prepayment of this Note.

        4.    
Default and Remedies.

	
   

  	
          (a)    
  An “Event of Default”
  under this Note shall mean the occurrence of any of the following events: (i)
  the Maker defaults in the payment of principal of or interest on this Note
  when due and the Maker does not cure that default within five (5) days after
  the due date; (ii) the Maker defaults in the performance of any obligation
  under this Note (other than the payment described in the immediately
  preceding clause) and the Maker does not cure that default within thirty 30
  days after receipt by the Maker of written notice from the Holder specifying
  the nature of such default; (iii) the Maker commences proceedings in any
  court under the United States Bankruptcy Code, or any other debtors’ relief
  or insolvency act, whether state or federal (the “Bankruptcy Laws”),
  or any other person commences proceedings under the Bankruptcy Laws against
  the Maker and those proceedings are not stayed or dismissed within one
  hundred twenty (120) days (each a “Bankruptcy Default”); or (iv) any Change
  of Control (as defined below) of the Maker. For purposes of this Section
  4(a), the term “Change
  of Control” shall mean any merger, reorganization or other
  transaction in which control of a person or substantially all of its assets
  is transferred, the sale of substantially all of the capital stock of a
  person, or any other sale of all or substantially all of the assets of a
  person.

  

 

	
   

  	
          (b)    
  If any Event of Default occurs and is continuing, then the Holder shall have
  the right and option to declare, by notice in writing sent by registered or
  certified mail to the Maker, the full unpaid principal balance hereof,
  together with all accrued and unpaid interest thereon, immediately due and
  payable without further demand, notice, or presentment for payment; provided,
  however, that, notwithstanding anything in this Note to the contrary, in the
  event of a Bankruptcy Default the entire principal balance of and all accrued
  interest on this Note shall forthwith be due and payable without demand,
  presentment for payment, protest, notice of protest, notice of intent to
  accelerate, notice of acceleration and all other notices and further actions
  of any kind, all of which are hereby expressly waived by the Maker.

  

 

	
   

  	
          (c)    
  If this Note is collected or attempted to be collected by the initiation or
  prosecution of any suit or through any bankruptcy court, or by any judicial
  proceeding, or is placed in the hands of attorneys for collection, then the
  Maker shall pay, in addition to all other amounts owing hereunder, all court
  costs and reasonable attorney’s fees incurred by the Holder.

  

 

 

 

—  2  —

        5.    
Subordination.

	
   

  	
          (a)    
  Subordination to Senior Debt.  Notwithstanding anything to
  the contrary contained in this Note, the Maker covenants and agrees, and the
  Holder by acceptance of this Note likewise covenants and agrees, that the
  Maker’s indebtedness under this Note shall be junior and subordinate to the
  Senior Debt (as hereafter defined) to the extent and in the manner set forth
  in this Section 5, except to the extent otherwise agreed to in writing
  by the Holder and any Senior Lender (as hereinafter defined) with respect to
  the Senior Debt held by or payable to that Senior Lender. Each subsection of
  this Section 5 shall be given independent effect so that if a
  particular payment or action is prohibited by any one of these subsections,
  it shall be prohibited although it otherwise would not be prohibited by
  another subsection.

  

 

	
   

  	
          (b)    
  Payment Default on Senior Debt.  If at any time a default
  occurs in the payment when due (whether at maturity or upon acceleration or
  mandatory prepayment, or on any principal installment payment date or
  interest payment date, or otherwise) (“Payment Default”) of any Senior Debt, then
  at all times thereafter until (i) the Payment Default has been cured, (ii)
  the Payment Default or the benefits of this sentence have been waived in
  writing by or on behalf of the Senior Lenders holding that Senior Debt, or
  (iii) payment in full of all affected Senior Debt, the Maker shall not,
  directly or indirectly, make any Distribution of Assets (as hereinafter
  defined) or Payment (as hereinafter defined) with respect to this Note.

  

 

	
   

  	
          (c)    
  Dissolution, Liquidation or Reorganization of Maker.  In the
  event of any insolvency, bankruptcy or receivership case or proceeding or any
  dissolution, winding up, liquidation, reorganization or other similar
  proceeding relating to the Maker, its property or its operations (whether
  voluntary or involuntary and whether in bankruptcy, insolvency or
  receivership proceedings or otherwise), upon an assignment for the benefit of
  creditors, or any other marshalling of the assets of the Maker, then payment
  in full of all Senior Debt then or thereafter to become due shall occur
  before the Holder shall be entitled to receive or retain any Distribution of
  Assets or Payment with respect to this Note. In any such proceedings, any
  Distribution of Assets or Payment to which the Holder would be entitled if
  this Note were not subordinated to the Senior Debt shall be paid by the Maker
  or the agent or other person making such payment or distribution, or by the
  Holder if received by the Holder, directly to each Senior Lender, pro rata,
  to the extent necessary to make payment in full of all Senior Debt, after
  giving effect to any concurrent payment or distribution to or for the benefit
  of the Senior Lenders.

  

 

	
   

  	
          (d)    
  Subrogation.  No Distribution of Assets or Payment to which
  the Holder would have been entitled except for the provisions of this Section
  5 and which is received by or paid over to the Senior Lenders or their
  Representative (as hereinafter defined) shall, as between the Maker and its
  creditors other than the Senior Lenders and the Holder, be deemed to be a
  payment by the Maker to the Senior Lenders or on account of the Senior Debt,
  and the Holder shall be subrogated (without any duty on the part of the Senior
  Lenders to warrant, create, effectuate, preserve or protect such subrogation)
  to the then or thereafter existing rights of the Senior Lenders to receive
  Distributions of Assets or payments made on the Senior Debt until this Note
  shall be paid in full.

  

 

 

 

—  3  —

	
   

  	
          (e)    
  Payments Held in Trust.  If the Holder receives any
  Distribution of Assets or Payment which the Holder is not entitled to retain
  under the provisions of this Section 5, any such Distribution of
  Assets or Payment so received shall be held in trust for the Senior Lenders,
  shall not be commingled with any other assets of the Holder, and shall be
  paid to the Senior Lenders, pro rata, to the extent necessary to make payment
  in full, after giving effect to any concurrent payment or distribution to or
  for the benefit of the Senior Lenders.

  

 

	
   

  	
          (f)    
  Changes in Senior Debt.  Any Senior Lender may at any time
  and from time to time with notice to the Holder: (i) with the approval of the
  Maker, extend, renew, modify, waive or amend the terms of the Senior Debt;
  (ii) as permitted by contract between the Maker and such Senior Lender or by
  applicable laws, sell, exchange, release or otherwise deal with any property
  pledged, mortgaged or otherwise securing the Senior Debt; (iii) release any
  guarantor or any other person liable in any manner for the Senior Debt or,
  with the approval of the Maker, amend or waive the terms of the Senior Debt;
  (iv) exercise or refrain from exercising any rights against the Maker or any
  other persons; (v) apply in any order any sums by whomever paid or however
  realized to the Senior Debt; and (vi) take any other action which otherwise
  might be deemed to impair the Holder’s rights. Any and all of such actions
  may be taken by the Senior Lenders without incurring responsibility to the
  Holder and without impairing or releasing the Holder’s obligations to the
  Senior Lenders.

  

 

	
   

  	
          (g)    
  Third-Party Beneficiary, Etc..  The foregoing provisions
  regarding subordination are solely for the purpose of defining the relative
  rights of the Senior Lenders on the one hand and the Holder on the other
  hand. Such provisions are for the benefit of the Senior Lenders (and their
  successors and assigns) and shall be enforceable by them directly against the
  Holder except to the extent otherwise agreed to in writing by the Holder and
  any other Senior Lender.

  

 

	
   

  	
          (h)    
  Further Assurances. The Holder covenants and agrees that at any time,
  and from time to time hereafter, it will execute such additional instruments
  and take such actions as may be reasonably requested by any Senior Lender to
  confirm or perfect or otherwise to carry out the intent and purposes of this Section
  5, including, but not limited to, a subordination and standstill
  agreement or other similar document.

  

 

	
   

  	
          (i)    
  Definitions.  As used in this Section 5 (or as
  elsewhere used in this Note) the following terms shall have the meanings
  indicated:

  

 

 

 

—  4  —

	
   

  	
  “Distribution of Assets” means any distribution of
  assets of the Maker or any of its subsidiaries of any kind or character,
  whether a payment, purchase or other acquisition or retirement for cash,
  property, or securities, with respect to the Maker’s obligations under this
  Note.

  

 

	
   

  	
  “Payment” means payment of any obligation now or
  hereafter existing under this Note (as it may hereafter be amended,
  supplemented, or otherwise modified from time to time), whether created
  directly or acquired by assignment or otherwise, and interest and premiums,
  if any, thereon and all other amounts payable in respect thereof or in
  connection therewith.

  

 

	
   

  	
  “Representative” means, with respect to any Senior
  Debt, the trustee, agent, or other representative for one or more of the
  Senior Lenders, if any, designated in the indenture, agreement or document
  creating, evidencing or governing such Senior Debt or pursuant to which it
  was issued, or otherwise designated by the holders of such Senior Debt.

  

 

	
   

  	
  “Senior Debt” means the principal of and premium, if
  any, and interest  on
  indebtedness incurred by the Maker at any time and from time to time for
  money borrowed from banks, trust companies, savings and loan associations and
  other similar financial institutions evidenced by notes, bonds, debentures,
  financing agreements, letters of credit, or similar obligations, or issued
  under the provisions of an indenture or similar instrument between the Maker
  and a bank or trust company or substantially similar financial institution;
  excluding, however, all indebtedness (principal and interest) owed by the
  Maker to the Holder.

  

 

	
   

  	
  “Senior Lender” or “Senior Lenders” means one or more of
  the holders of Senior Debt. 

  

 

        6.    Conversion.

	
   

  	
          (a)    
  The Holder may, at the Holder’s option, at any time after the Anniversary
  Date, and from time to time thereafter, prior to payment in full of this
  Note, convert the outstanding unpaid balance of this Note and any interest
  accrued pursuant to paragraph 2 above but unpaid (the “Conversion Amount”),
  in whole or in part (but only into full shares), into fully paid and
  non-assessable shares of the common stock, without par value of the Maker
  (the “Common Shares”),
  at a rate equal to the amount of $16.00 per Common Share (the “Conversion Rate”).
  In order to exercise this conversion right, the Holder must send written
  notice of the conversion to the Maker at least 10 days prior to the specified
  conversion date (a “Conversion
  Notice”). On the conversion date (or as soon thereafter as is
  reasonably practicable), the Maker shall issue to the Holder a share
  certificate for the Common Shares acquired upon conversion. The Holder’s
  right to elect to convert the Conversion Amount of this Note into Common
  Shares shall not be affected by any Prepayment Notice given by the Maker
  pursuant to Section 3 above, so long as the Maker has received the Holder’s
  Conversion Notice at least five (5) days prior to the date specified in the
  Maker’s Prepayment Notice for the Maker’s prepayment of this Note.

  

 

 

 

—  5  —

	
   

  	
          (b)    
  The Conversion Rate shall not be subject to adjustment for issuance of Common
  Shares or of rights, options, warrants, or other securities convertible into
  Common Shares, whether at a price per share that is more or less than or
  equal to the Conversion Rate or for any other event, except as specified in
  this Subsection 6(b). The Conversion Rate shall be subject to
  adjustment if the Maker at any time subdivides (by any stock split, stock
  dividend, recapitalization or otherwise) one or more classes of its
  outstanding Common Shares into a greater number of shares, in which case the Conversion
  Rate in effect immediately prior to the subdivision will be proportionately
  reduced, and if the Maker at any time combines (by reverse stock split or
  otherwise) one or more classes of its outstanding Common Shares into a
  smaller number of shares, in which case the Conversion Rate in effect
  immediately prior to that combination will be proportionately increased.

  

 

	
   

  	
          (c)    
  Notwithstanding any other provisions of this Section 6 to the
  contrary, the conversion rights of the Holder shall be subject to compliance
  with all applicable federal and state securities laws, and the Holder agrees
  to execute all required agreements and documents required by the Maker to
  establish compliance with such laws.

  

 

	
   

  	
          (d)    
  The Maker shall at all times reserve and keep available and free of
  preemptive rights out of its authorized but unissued Common Shares, solely
  for the purpose of issuance upon conversion of the Note, that number of
  Common Shares as shall from time to time be sufficient to effect the
  conversion of the Note, and if at any time the number of authorized but
  unissued Common Shares shall not be sufficient to effect the conversion of
  the Note, the Maker shall take the corporate action necessary to increase the
  number of its authorized Common Shares to a number sufficient for this
  purpose.

  

 

        7.    
Notice of Certain Events. The Maker agrees to execute and deliver to the
Holder a certificate signed by the chief executive officer or chief financial
officer of the Maker, specifying the occurrence of any of the following events
and including a description thereof, promptly, but in any event not later than
four (4) days, after any executive officer of the Maker becomes aware of the
occurrence of any of the following events: 

	
   

  	
          (a)    
  Events of Default. Any condition or event which constitutes or which,
  with notice or lapse of time, would constitute an Event of Default has
  occurred, or any holder of any of the Notes (as defined in the Merger
  Agreement) has given any notice or taken any other action with respect to a
  claimed default or Event of Default hereunder; or

  

 

	
   

  	
          (b)    
  Other Defaults. The Maker or any subsidiary of the Maker has received
  notice of any default or failure to perform any covenant or provision under
  any agreement relating to any Senior Debt; 

  

 

 

 

—  6  —

provided,
however, that nothing in this paragraph 7 shall require the Maker to notify the
Holder of any event or occurrence if, by the giving notice to the Holder, the
Maker would also be required to make any public filing or public announcement
that it would not otherwise be required to make.

        8.    
Notices.  All notices, requests, demands, or other
communications that are required or may be given pursuant to the terms of this
Note shall be in writing and delivery shall be deemed sufficient and to have
been duly given on the date of service if delivered personally or by facsimile
transmission if receipt is confirmed to the party to whom notice is to be given
or on the third day after mailing if mailed by registered or certified mail,
and properly addressed as follows: 

	
   

  	
  If to the Maker, to:

  	
  2701 Kent Avenue

  West Lafayette, Indiana 47906-1382

  Attention: Peter T. Kissinger, Ph.D.

          President and Chief Executive
  Officer

  Fax: (765) 497-1102

  
	
   

  	
  

  Copies to:

  	
  

  Ice Miller

  One American Square

  Box 82001

  Indianapolis, Indiana

  Attention: Stephen J. Hackman, Esq.

  Fax: (317) 592-4666

  
	
   

  	
  If to the Holder, to:

  	
  _____________________

  _____________________

  _____________________

  _____________________

  Attention: __________

  Fax: ________________

  
	
   

  	
  Copies to:

  	
  _____________________

  _____________________

  _____________________

  _____________________

  Attention: __________

  Fax: ________________

  

or to
such other address as may be specified in writing by any of the above.

        9.    
Remedies.  The remedies provided by this Note shall be
cumulative, and shall be in addition to and not exclusive of other remedies
available at law, or in equity. The exercise or waiver by the Holder of any
right or remedy available under this Note shall not be deemed to be a waiver of
any other right or remedy available under this Note, at law, or in equity.

 

 

—  7  —

        10.    
Miscellaneous. 

	
   

  	
          (a)    
  Whenever used herein, the singular includes the plural and the plural
  includes the singular. The term “Maker” means the corporation named in the
  opening paragraph hereof and its successors and assigns.

  

 

	
   

  	
          (b)    
  All disputes, claims or controversies arising out of or relating to this
  Agreement or the negotiation, validity or performance of this Agreement or
  the Transactions shall be governed by and construed in accordance with the
  laws of the State of Indiana without regard to its rules of conflict of laws.
  Each of the parties hereby irrevocably and unconditionally consents to submit
  to the non-exclusive jurisdiction of the courts of the State of Indiana and
  of the United States located in the State of Indiana (the “Agreed Courts”) for
  any litigation arising out of or relating to this Agreement, or the
  negotiation, validity or performance of this Agreement, or the Transactions
  (and agrees not to commence any litigation relating thereto except in such
  courts), waives any objection to the laying of venue of any such litigation
  in the Agreed Courts and agrees not to plead or claim in any Agreed Court
  that such litigation brought therein has been brought in any inconvenient
  forum. Each of the parties hereto agrees, that service of process may be made
  on such party by prepaid certified mail with a proof of mailing receipt
  validated by the United States Postal Service constituting evidence of valid
  service. Service made pursuant to the preceding sentence shall have the same
  legal force and effect as if served upon such party personally within the
  State of Indiana.

  

 

	
   

  	
          (c)    
  The Holder, by acceptance of this Note, hereby represents and warrants that
  this Note has been acquired by the Holder for investment only and not for
  resale or distribution hereof. The Holder, by acceptance of this Note,
  further understands, covenants and agrees that the Maker is under no
  obligation and has made no commitment to provide for registration of this
  Note under the Securities Act of 1933, as amended, or state securities laws,
  or to take such steps as are necessary to permit the sale of this Note without
  registration under those laws, except as provided in the Registration Rights
  Agreement by and between Maker, Holder and the other parties thereto dated as
  of the date hereof.

  

 

	
   

  	
          (d)    
  The captions of the sections of this Note are solely for convenient reference
  and shall not be deemed to affect the meaning or interpretation of any
  provision of this Note.

  

 

 

 

—  8  —

        IN
WITNESS WHEREOF, the Maker has executed, acknowledged, and delivered this Note
as of the day and year first above written.

BIOANALYTICAL
SYSTEMS, INC.

 

By:
________________________________

 

Printed:
____________________________

 

Title:
______________________________

 

Accepted and agreed to this _____ day of ____________________, 2002:

 

 

 

By:
____________________________

       [Name]

 

 

—  9  —Exhibit 10.12

VOTING
AGREEMENT

 

THIS
VOTING AGREEMENT (this “Agreement”)
is made and entered into as of the 20th day of June, 2002, by and among the
holders of approximately eighty-six percent (86%) of the Class A Convertible
Preferred Stock (the “Class
A Preferred”) of PharmaKinetics Laboratories, Inc., a Maryland
corporation (the “Company”)
as set forth on the signature pages hereto (the “Investors”).

WITNESSETH

        WHEREAS,
in reliance upon the execution and delivery of this Agreement, Bioanalytical Systems,
Inc., an Indiana corporation (“Parent”) and PI Acquisition Corporation, a Maryland
corporation and a wholly owned subsidiary of Parent (“MergerCo”) have
entered into that certain Agreement and Plan of Merger by and among Parent,
MergerCo and the Company of even date herewith and attached hereto as Exhibit
A (the “Merger
Agreement”) whereby MergerCo will be merged with and into the
Company as more fully described in the Merger Agreement (the “Merger”);

        WHEREAS,  Parent and MergerCo are executing the
Merger Agreement in reliance upon the execution and delivery of this Agreement
by the Investors; and

        WHEREAS,
as a condition to their willingness to enter into the Merger Agreement, Parent
and MergerCo have requested that the Investors agree, and in order to induce
Parent and MergerCo to enter into the Merger Agreement, the Investors have
agreed, to vote the shares of Class A Preferred held by each such Investor as
set forth herein.

        NOW,
THEREFORE, in consideration of the
foregoing, and the mutual representations, warranties, covenants and agreements
set forth herein, the parties agree as follows:

1.    Voting
of Shares. At any time prior to the Expiration Date (as defined below), at
every meeting of the stockholders of the Company called with respect to any of
the following, and at every adjournment thereof, and on every action or
approval by written consent of the stockholders of the Company with respect to
any of the following, each of the Investors shall, notwithstanding the recommendation
of the Board of Directors of the Company, vote the shares of Class A Preferred
held by such Investor (i) in favor of approval of the Merger Agreement and the
Merger and any matter that could reasonably be expected to facilitate the
Merger, (ii) against any proposal for any recapitalization, merger, sale
of assets or other business combination (other than the Merger) between the
Company and any person or entity other than Parent, including but not limited
to a Superior Acquisition Proposal (as defined in the Merger Agreement), and
(iii) against any other action or agreement that would result in a breach of
any covenant, representation or warranty or any other obligation or agreement
of the Company under the Merger Agreement or which may reasonably be expected
to result in any of the conditions to the Company’s obligations under the
Merger Agreement not being fulfilled. This Agreement is intended to bind the
Investors as stockholders of the Company only with respect to the specific
matters set forth herein. Nothing herein shall prevent any Investor from taking
any action, or omitting to take any action, as a member of the Board of
Directors of the Company required so as to comply with such Investor’s
fiduciary duties as a director of the Company, as determined by such Investor
in good faith after consultation with and advice from outside counsel to the
Company.

2.    Agreement
to Retain Shares. Each of the Investors agrees not to transfer (except as
may be specifically required by court order), sell, exchange, pledge (except in
connection with a bona fide loan transaction, provided that any pledgee agrees
not to transfer, sell, exchange, pledge or otherwise dispose of or encumber the
shares of Class A Preferred held by such Investor prior to the Expiration Date)
or to otherwise dispose of or encumber such Investor’s shares of Class A
Preferred, or to make any offer or agreement relating thereto, at any time
prior to the Expiration Date. Notwithstanding the foregoing, any Investor may
transfer the shares of Class A Preferred held by such Investor to a member of
the Investor’s immediate family or to a trust or other entity created by the
Investor for tax or estate planning purposes, provided that any such transferee
agrees to assume the obligations of the Investor hereunder with respect to any
shares of Class A Preferred so transferred. As used herein, the term “Expiration Date”
shall mean the earlier to occur of (i) the Effective Time (as defined in
the Merger Agreement), and (ii) the date of termination of the Merger
Agreement in accordance with its terms.

3.    Third
Party Beneficiaries. The Investors acknowledge that each of Parent and
MergerCo is, and is intended by the Investors to be, a third party beneficiary
of this Agreement.

4.    Termination.
This Agreement shall terminate as of the Expiration Date.

5.    Additional
Documents. The Investors hereby covenant and agree to execute and deliver
any additional documents necessary, in the reasonable opinion of Parent or the
Company, to carry out the purpose and intent of this Agreement, including but
not limited to any proxy for the voting of the Class A Preferred.

6.    Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original and all of which together shall constitute one
instrument.

[signature pages follow]

 

 

—  2  —

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first stated above.

LESLIE B.
DANIELS

(103,885 Shares)

 

 

 

                /s/  Leslie
B. Daniels                      

Leslie B. Daniels

 

 

 

MICHAEL
F. PRICE

(191,659 Shares)

 

 

 

By:            /s/  Leslie
B. Daniels    
              

        Leslie B. Daniels, as
attorney-in-fact

            for
Michael F. Price

 

 

 

RICHARD
J. SCHMEELK

(103,885 Shares)

 

 

 

By:            /s/  Leslie
B. Daniels    
              

        Leslie B. Daniels, as
attorney-in-fact

            for
Richard J. Schmeelk

 

 

 

PETER M.
GOTTSEGEN

(103,885 Shares)

 

 

 

By:            /s/  Leslie
B. Daniels    
              

        Leslie B. Daniels, as
attorney-in-fact

            for
Peter M. Gottsegen

 

 

—  3  —

THOMAS F.
KEARNS, JR.

(11,110 Shares)

 

 

 

By:            /s/  Leslie
B. Daniels    
              

        Leslie B. Daniels, as
attorney-in-fact

            for
Thomas F. Kearns, Jr.

 

 

 

RICHARD
L. SCOTT REVOCABLE TRUST

(83,330 Shares)

 

 

 

By:            /s/  Leslie
B. Daniels    
              

        Leslie B. Daniels, as
attorney-in-fact

            for the
Richard L. Scott Revocable Trust

 

 

 

JOSEPH
RICCARDO

(94,441 Shares)

 

 

 

By:            /s/  Leslie
B. Daniels    
              

        Leslie B. Daniels, as
attorney-in-fact

            for
Joseph Riccardo

 

 

 

PETER G.
RESTLER

(24,999 Shares)

 

By:            /s/  Leslie
B. Daniels    
              

        Leslie B. Daniels, as attorney-in-fact

            for
Peter G. Restler

 

 

—  4  —

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]