Document:

exv10w4

Exhibit 10.4

EXECUTION
VERSION

     This INTERCREDITOR AGREEMENT, dated as of March 25, 2010 (this “Agreement”), is between
Jefferies Finance LLC, as agent for the First Priority Secured Parties (as defined below) (in such
capacity, the “First Priority Agent”), and AmerisourceBergen Drug Corporation, a Delaware
corporation (“ABDC”).

PRELIMINARY STATEMENT

     Reference is made to (a) the credit agreement, dated as of March 25, 2010 (as amended,
supplemented or otherwise modified from time to time in accordance with the terms thereof, the
“First Priority Debt Agreement”), among BioScrip, Inc., a Delaware corporation (the “Company”), the
lenders from time to time party thereto (the “First Priority Creditors”), the subsidiary guarantors
of the Company from time to time party thereto, Jefferies Finance LLC, as lead arranger, as book
manager, as administrative agent for the First Priority Creditors and as collateral agent for the
First Priority Secured Parties, ING Capital LLC, as syndication agent, Compass Bank, as a
co-documentation agent, General Electric Capital Corporation, a co-documentation agent, Healthcare
Finance Group, LLC, as collateral manager and issuing bank for the First Priority Creditors, and
HFG Healthco-4, LLC, as swingline lender for the First Priority Creditors, (b) the security
agreement, dated as of March 25, 2010 (as amended, supplemented or otherwise modified from time to
time in accordance with the terms thereof, the “First Priority Security Agreement”), among the
Company, the subsidiaries of the Company from time to time party thereto, and the First Priority
Agent, (c) the other Loan Documents as defined, and referred to, in the First Priority Debt
Agreement, and (d) the prime vendor agreement, dated as of July 1, 2009 (as amended, supplemented
or otherwise modified from time to time in accordance with the terms hereof, the “Prime Vendor
Agreement”), between by ABDC and the Company and certain subsidiaries of the Company.

RECITALS

     A. Pursuant to the Prime Vendor Agreement, the Grantors (as hereinafter defined) granted ABDC
a lien in all of their existing and future inventory and accounts and proceeds thereof (including
insurance proceeds).

     B. The First Priority Creditors have agreed to make loans and other extensions of credit to
the Company pursuant to the First Priority Debt Agreement (in an aggregate committed principal
amount, as of the Closing Date, of $150,000,000, subject to the terms and conditions contained
therein and in the other Loan Documents) on the condition, among others, that the First Priority
Claims (such term and each other capitalized term used but not defined in the preliminary statement
or these recitals having the meaning given it in Article I) shall be secured by first
priority Liens on, and security interests in, substantially all of the assets of the Company
(including the Collateral), and that the priority of the Liens securing the First Priority Claims
be senior and prior to the Liens securing the Second Priority Claims.

     C. ABDC has agreed to the subordination of Liens securing the Company’s obligations under the
Second Priority Financing Documents to the Liens securing the First Priority Claims, upon the terms
and subject to the conditions set forth in this Agreement.

     D. The First Priority Debt Agreement requires, among other things, that the First Priority
Collateral Agent and ABDC set forth in this Agreement, among other things, their respective rights,
obligations and remedies with respect to the Collateral.

 

 

     Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Certain Defined Terms. Capitalized terms used in this Agreement and not otherwise
defined herein shall, except to the extent the context otherwise requires, have the meanings set
forth in the First Priority Debt Agreement (as in effect on the date hereof) or the First Priority
Security Agreement (as in effect on the date hereof), as applicable.

          SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms shall have the
meanings specified below:

     “Agreement” shall have the meaning assigned to such term in the preamble hereto.

     “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy,” as now
and hereinafter in effect, or any successor statute.

     “Bankruptcy Law” shall mean the Bankruptcy Code and any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law.

     “Collateral” shall mean, collectively, all Second Priority Collateral that is (or purports to
be or, pursuant to the terms hereof or any of the First Priority Debt Documents, is required to be)
part of the First Priority Collateral.

     “Company” shall have the meaning assigned to such term in the preliminary statement to this
Agreement.

     “Debt Documents” shall mean the First Priority Debt Documents and the Second Priority
Financing Documents.

     “DIP Financing” shall have the meaning assigned to such term in Section 5.01(a).

     “DIP Financing Liens” shall have the meaning assigned to such term in Section 5.01(a).

     “Discharge of First Priority Claims” shall mean, subject to Sections 6.01 and
6.02, (a) payment in full in cash of the principal of and interest (including interest
accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether
allowed or allowable in such Insolvency or Liquidation Proceeding) and premium, if any, on all
Indebtedness outstanding under the First Priority Debt Documents to the extent constituting First
Priority Claims, (b) payment in full in cash of all other First Priority Claims that are due and
payable or otherwise accrued and owing at or prior to the time such principal and interest are
paid, (c) cancellation of or the entry into collateralization arrangements satisfactory to the
First Priority Agent and the Issuing Bank with respect to all Letters of Credit issued and
outstanding under the First Priority Debt Agreement, and (d) the termination or expiration of all
commitments to lend and all obligations to issue or extend Letters of Credit under the First
Priority Debt Agreement; provided, further, that, with respect to each First Priority Creditor’s
First Priority
Claims, the acceptance by such First Priority (in its absolute discretion) of non-cash
consideration in exchange for its First Priority Claims (or applicable specified portion thereof),
coupled with a written acknowledgment of discharge in form and substance satisfactory to such First
Priority

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Creditor, shall also constitute, subject to Section 6.02, a Discharge of First
Priority Claims only with respect to such exchanged First Priority Claims relating to such First
Priority Creditor.

     “Discharge of Second Priority Claims” shall mean, subject to Section 6.02, payment in
full in cash of all Indebtedness outstanding under the Second Priority Financing Documents to the
extent constituting Second Priority Claims and the termination of all Second Priority Financing
Documents.

     “Disposition” shall mean any sale, lease, exchange, transfer or other disposition. “Dispose”
shall have a correlative meaning.

     “First Priority Agent” shall have the meaning assigned to such term in the preamble to this
Agreement.

     “First Priority Claims” shall mean (i) the due and punctual payment of (A) the principal of
and interest (including interest accruing during the pendency of any Insolvency or Liquidation
Proceeding, regardless of whether allowed or allowable in such proceeding) on the loans and other
advances outstanding under the First Priority Debt Agreement, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, (B) each payment required to be made by the
Company under the First Priority Debt Agreement in respect of any Letter of Credit, including
payments in respect of reimbursement of disbursements, interest thereon and obligations to provide
cash collateral, and (C) all other monetary obligations of the Company to any of the First Priority
Secured Parties under the First Priority Debt Agreement and each of the other First Priority Debt
Documents, including fees (including any early termination or prepayment fees), costs, expenses
(including fees and expenses of counsel) and indemnities, whether primary, secondary, direct,
contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any
Insolvency or Liquidation Proceeding, regardless of whether allowed or allowable in such
proceeding), (ii) the due and punctual performance of all other obligations of the Company under or
pursuant to the First Priority Debt Agreement and each of the other First Priority Debt Documents,
and (iii) the due and punctual payment and performance of all the obligations of each other Grantor
under or pursuant to the First Priority Debt Agreement and each of the other First Priority Debt
Documents.

     “First Priority Collateral” shall mean, collectively, all “Collateral”, as defined in each of
the First Priority Debt Agreement and/or in any other First Priority Debt Document, including all
property of any Grantor now or at any time hereafter subject to Liens securing any First Priority
Claims.

     “First Priority Creditors” shall have the meaning assigned to such term in the preliminary
statement of this Agreement.

     “First Priority Debt Agreement” shall have the meaning assigned to such term in the
preliminary statement of this Agreement.

     “First Priority Debt Documents” shall mean the “Loan Documents” as defined in the First
Priority Debt Agreement.

     “First Priority Liens” shall mean all Liens on the First Priority Collateral securing the
First Priority Claims, whether created under the First Priority Security Documents or acquired by
possession, statute (including any judgment lien), operation of law, subrogation or otherwise.

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     “First Priority Secured Parties” shall mean, at any time, (a) the First Priority Creditors,
(b) the First Priority Agent, (d) the Issuing Bank, (e) each other Person to whom any of the First
Priority Claims is owed (including any Affiliate of a First Priority Creditor to whom any First
Priority Claims of the type described in clause (b) of the definition thereof is owed) and (f) the
successors and assigns of each of the foregoing.

     “First Priority Security Agreement” shall have the meaning assigned to such term in the
preliminary statement of this Agreement.

     “First Priority Security Documents” shall mean the First Priority Debt Agreement, the First
Priority Security Agreement and any other agreement, document or instrument pursuant to which a
Lien is granted by any Grantor to secure any First Priority Claims or under which rights or
remedies with respect to any such Lien are governed.

     “Grantors” shall mean the Company and each of its Subsidiaries that shall have created or
purported to create any First Priority Lien or Second Priority Lien on all or any part of its
assets to secure any First Priority Claims or any Second Priority Claims, and each other Person
that shall have created or purported to create any First Priority Lien or Second Priority Lien on
all or any part of its assets to secure any First Priority Claims or any Second Priority Claims.

     “Guarantors” shall mean, collectively, each Grantor that has guaranteed, or that may from time
to time hereafter guarantee, the First Priority Claims or the Second Priority Claims, whether by
executing and delivering the First Priority Debt Agreement, the First Priority Security Agreement,
the Second Priority Financing Agreement and a supplement thereto or otherwise.

     “Indebtedness” shall mean and includes all obligations that constitute “Indebtedness” as
defined in the First Priority Debt Agreement.

     “Insolvency or Liquidation Proceeding” shall mean (a) any voluntary or involuntary proceeding
under the Bankruptcy Code or any other Bankruptcy Law with respect to any Grantor, (b) any
voluntary or involuntary appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for any Grantor or for a substantial part of the property or assets of any
Grantor, (c) any voluntary or involuntary winding-up or liquidation of any Grantor, or (d) a
general assignment for the benefit of creditors by any Grantor.

     “Issuing Bank” shall mean the “Issuing Lender” as defined in the First Priority Debt
Agreement.

     “Letter of Credit” shall mean a “Letter of Credit” as defined in the First Priority Debt
Agreement.

     “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest
of a vendor or a lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third Person with respect to such securities.

     “Liquidation Sale” shall mean a so-called bulk sale, liquidation sale or “going out of
business sale” conducted either by any Secured Party or a Grantor in respect to all or a
substantial portion of such Grantor’s Collateral following the occurrence and during the
continuance of a

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Default or an Event of Default under, and as defined in, either the First Priority
Debt Documents or Second Priority Financing Documents.

     “New First Priority Agent” shall have the meaning assigned to such term in Section
6.01.

     “New First Priority Claims” shall have the meaning assigned to such term in Section
6.01.

     “New First Priority Debt Documents” shall have the meaning assigned to such term in
Section 6.01.

     “Pledged or Controlled Collateral” shall have the meaning assigned to such term in Section
6.04.

     “Refinance” shall mean, in respect of any Indebtedness, to refinance, extend, renew,
restructure (including by the amendment and restatement of any instrument or agreement evidencing
such Indebtedness) or replace or to issue other Indebtedness in exchange or replacement for, such
Indebtedness, in whole or in part. “Refinanced” and “Refinancing” shall have correlative meanings.

     “Refinancing Notice” shall have the meaning assigned to such term in Section 6.01.

     “Release” shall have the meaning assigned to such term in Section 3.04.

     “Second Priority Financing Documents” shall mean the Prime Vendor Agreement and any other
agreement, instrument, certificate or other document pursuant to which any Grantor grants (or
purports to grant) a security interest in or a Lien on any property of any Grantor now or at any
time hereafter.

     “Second Priority Claims” shall mean all Indebtedness of the Grantors under the Second Priority
Financing Documents.

     “Second Priority Collateral” shall mean, collectively, all “Collateral”, as defined in the
Prime Vendor Agreement, including all property of any Grantor now or at any time hereafter subject
to Liens securing any Second Priority Claims; provided, that as of the date hereof, the “Second
Priority Collateral” shall, exclusively, be comprised of all assets of Grantors described in
Recital A of this Agreement, wherever located, now owned or hereafter acquired or arising.

     “Second Priority Creditors” shall mean AmerisourceBergen Drug Corporation, a Delaware
corporation, and its successors and assigns.

     “Second Priority Liens” shall mean all Liens on the Second Priority Collateral securing the
Second Priority Claims created under the Second Priority Financing Documents or acquired by
assignment, and shall not include any judgment Liens acquired through the exercise by ABDC of any
rights or remedies as an unsecured creditor (except to the extent, and only to the extent, that
such judgment Liens relate to, or are applicable to, the Second Priority Collateral).

     “Second Priority Permitted Actions” shall have the meaning assigned to such term in
Section 3.01(a).

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     “Second Priority Secured Parties” shall mean, at any time, (a) the Second Priority Creditors,
(b) each other Subsidiary or Affiliate of any Second Priority Creditor to whom any of the Second
Priority Claims (including indemnification obligations) is owed and (c) the successor and assigns
of each of the foregoing.

     “Secured Parties” shall mean, as the context may require, the First Priority Secured Parties
and/or the Second Priority Secured Parties.

     “Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code (or any similar or
equivalent legislation) as in effect from time to time in any applicable jurisdiction.

          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular
and plural forms of the terms defined. Whenever the context may require, any pronoun shall include
the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context
requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, restated, supplemented or otherwise modified, (b) any reference herein
(i) to any Person shall be construed to include such Person’s successors and assigns and (ii) to
the Company or any other Grantor shall be construed to include the Company or such Grantor as
debtor and debtor-in-possession and any receiver or trustee for the Company or any other Grantor,
as the case may be, in any Insolvency or Liquidation Proceeding or Liquidation Sale, (c) the word
“remedies” shall be construed to refer to all remedies (whether at law, equity or otherwise,
including under contract (including netting, set-off or similar remedies), statute or regulation or
otherwise, (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(e) all references herein to Articles or Sections shall be construed to refer to Articles or
Sections of this Agreement and (f) the words “asset” and “property” shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

ARTICLE II

Lien Priorities

          SECTION 2.01. Relative Priorities. Notwithstanding the date, manner or order of grant, attachment
or perfection of any Second Priority Lien and any First Priority Lien, and notwithstanding any
provision of the UCC or any other applicable law or the provisions of any First Priority Debt
Agreement, First Priority Security Agreement or Second Priority Financing Agreement or any other
circumstance whatsoever, the parties hereby agree that so long as the Discharge of First Priority
Claims has not occurred, (i) any First Priority Lien (to the extent perfected) on any Collateral
now or hereafter held by or for the benefit of any First Priority Secured Party shall be senior in
right, priority, operation, effect and all other respects to any and all Second Priority Liens on
any Collateral, and
(ii) any Second Priority Lien on any Collateral now or hereafter held by or for the benefit of any
Second Priority Secured Party shall be junior and subordinate in right, priority, operation, effect
and all other respects to any and all First Priority Liens (to the extent perfected) on any
Collateral, and the First Priority Liens (to the extent perfected) on any Collateral shall be and
remain senior in right, priority, operation, effect and all other respects to any Second Priority
Liens on any Collateral for all purposes, whether or

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not any First Priority Liens on any Collateral
are subordinated in any respect to any other Lien held by any Person (other than the Second
Priority Secured Parties) securing any other obligation of the Company, any other Grantor or any
other Person; provided, however, for the avoidance of doubt, nothing herein contained shall be
deemed a subordination in right of payment of the Second Priority Claims to the First Priority
Claims.

          SECTION 2.02. Prohibition on Contesting Liens. ABDC, for itself and on behalf of the other Second
Priority Secured Parties, hereby agrees that it will not, and hereby waives any right to, contest
or support any other Person in contesting, in any proceeding (including any Insolvency or
Liquidation Proceeding), the priority, validity or enforceability of any First Priority Lien. First
Priority Agent, for itself and on behalf of the other First Priority Secured Parties, hereby agrees
that it will not, and hereby waives any right to, contest, or support any other Person in
contesting, in any proceeding (including any Insolvency or Liquidation Proceeding) the priority
(subject to the terms hereof governing relative priorities) validity or enforceability of any
Second Priority Lien.

          SECTION 2.03. Common Collateral. The parties hereto acknowledge and agree that it is their
intention that the Second Priority Collateral be included within the First Priority Collateral and
that, without limiting the foregoing, no portion of the Second Priority Collateral shall not be a
part of the First Priority Collateral. In furtherance of the foregoing, the parties hereto agree
to cooperate in good faith in order to determine, upon any reasonable request by the First Priority
Agent or ABDC, the specific assets included in the First Priority Collateral and the Second
Priority Collateral, the steps taken to perfect the First Priority Liens and the Second Priority
Liens thereon and the identity of the respective parties obligated under the First Priority Debt
Documents and the Second Priority Financing Documents in respect of the First Priority Claims and
the Second Priority Claims, respectively and, to the extent that any portion of the Second Priority
Collateral is not included within the First Priority Collateral at any time, without limiting any
other right or remedy available to the First Priority Agent or the other First Priority Secured
Parties, ABDC, for itself and on behalf of the other Second Priority Secured Parties, agrees that
any amounts received by or distributed to any Second Priority Secured Party pursuant to or as a
result of any Lien in such Second Priority Collateral shall be subject to Section 4.02. In
addition, in furtherance of the foregoing, without the prior written consent of the First Security
Priority Agent, no Second Priority Financing Document may be amended, supplemented or otherwise
modified, or entered into, to the extent such amendment, supplement or modification, or the terms
of such new Second Priority Financing Document, would (i) contravene the provisions of this
Agreement or (ii) increase, expand or otherwise add to the Second Priority Collateral.

ARTICLE III

Enforcement of Rights; Matters Relating to Collateral

          SECTION
3.01. Exercise of Rights and Remedies.  (a) So long as the Discharge of First Priority Claims has not occurred, whether or not any
Insolvency or Liquidation Proceeding or Liquidation Sale has been commenced, the First Priority
Agent and the other First Priority Secured Parties shall have the exclusive right to enforce rights
and exercise remedies with respect to the Collateral (including making determinations regarding the
release, Disposition or restrictions with respect to the Collateral), or to commence or seek to
commence any action or proceeding with respect to such rights or remedies (including any
foreclosure action or proceeding or any Insolvency or Liquidation Proceeding or Liquidation Sale),
in each case,

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without any consultation with or the consent of any Second Priority Secured Party
except as required pursuant to applicable law; provided that, notwithstanding the foregoing, (i) in
any Insolvency or Liquidation Proceeding, the Second Priority Secured Parties may file a proof of
claim or statement of interest with respect to the Second Priority Claims; (ii) the Second Priority
Secured Parties may take any action to preserve or protect the validity and enforceability of the
Second Priority Liens, provided that no such action is, or could reasonably be expected to be, (A)
materially adverse to the First Priority Liens or the rights of the First Priority Secured Parties
as secured creditors or any other First Priority Secured Party to exercise remedies as secured
creditors in respect thereof or (B) otherwise inconsistent with the terms of this Agreement,
including the automatic release of Second Priority Liens provided in Section 3.04; (iii)
the Second Priority Secured Parties may file any responsive or defensive pleadings in opposition to
any motion, claim, adversary proceeding or other pleading made by any Person objecting to or
otherwise seeking the disallowance of the claims of the Second Priority Secured Parties, including
any claims secured by the Collateral or otherwise make any agreements or file any motions
pertaining to the Second Priority Claims, in each case, to the extent not inconsistent with the
terms of this Agreement; (iv) the Second Priority Secured Parties may exercise rights and remedies
as unsecured creditors, as provided in Section 3.03(a); and (v) subject to Section
3.02(a), the Second Priority Agent and the other Second Priority Secured Parties may enforce
any of their rights and exercise any of their remedies with respect to the Collateral after the
termination of the Standstill Period (the actions described in this proviso being referred to
herein as the “Second Priority Permitted Actions”). Except for the Second Priority Permitted
Actions, unless and until the Discharge of First Priority Claims has occurred, the sole right of
the Second Priority Secured Parties with respect to the Collateral shall be to receive the proceeds
of the Collateral, if any, remaining after the Discharge of First Priority Claims has occurred and
in accordance with the Second Priority Financing Documents and applicable law.

          (b) In exercising rights and remedies with respect to the Collateral, subject to
applicable law (including all provisions of the UCC applicable thereto), the First Priority Agent
and the other First Priority Secured Parties may enforce the provisions of the First Priority Debt
Documents and exercise remedies thereunder, all in such order, without notice (except as required
by applicable law (including all provisions of the UCC applicable thereto)) to any Second Priority
Secured Creditor and in such manner as they may determine in their sole discretion (provided that,
without limiting the foregoing, the First Priority Agent shall use its commercially reasonable
efforts to provide ABDC with subsequent notice thereof). Such exercise and enforcement shall
include the rights of an agent appointed by them to Dispose of Collateral upon foreclosure, to
incur expenses in connection with any such Disposition and to exercise all the rights and remedies
of a secured creditor under and in accordance with the Uniform Commercial Code, the Bankruptcy Code
or any other Bankruptcy Law.

          (c) In exercising rights and remedies with respect to the Collateral, the Second
Priority Secured Parties may enforce the provisions of the Second Priority Financing Documents and
exercise remedies thereunder, all in such order and in such manner as they may determine in their
sole discretion, in each case, to the extent that such enforcement or exercise is
not otherwise prohibited by clauses (a) through (c) of this Section 3.01. Such
exercise and enforcement shall, in each case, to the extent that such enforcement or exercise is
not otherwise prohibited by clauses (a) through (c) of this Section 3.01, include the
rights of an agent appointed by them to Dispose of Collateral upon foreclosure, to incur expenses
in connection with any such Disposition and to exercise all the rights and remedies of a secured
creditor under the Uniform Commercial Code, the Bankruptcy Code or any other Bankruptcy Law. ABDC
agrees to provide at least 5 Business Days’ prior written notice to the First Priority Agent of its
intention to

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foreclose upon or Dispose of any Collateral; provided, however, that the failure to
give any such notice shall not in any way limit its ability to foreclose upon or Dispose of any
Collateral to the extent that such foreclosure is not otherwise prohibited by clauses (a) through
(d) of this Section 3.01.

          SECTION 3.02. No Interference. ABDC, for itself and on behalf of the other Second Priority Secured
Parties, agrees that, whether or not any Insolvency or Liquidation Proceeding or Liquidation Sale
has been commenced, the Second Priority Secured Parties:

          (a) except for Second Priority Permitted Actions, will not, so long as the Discharge of First
Priority Claims has not occurred, (A) enforce or exercise, or seek to enforce or exercise, any
rights or remedies with respect to any Collateral (including the enforcement of any right under any
account control agreement, landlord waiver or bailee’s letter or any similar agreement or
arrangement to which any Second Priority Secured Party is a party) or (B) commence or join with any
Person (other than the First Priority Agent) in commencing, or petition for or vote in favor of any
resolution for, any action or proceeding with respect to such rights or remedies (including any
foreclosure action); provided, however, that none of the Second Priority Secured Parties may
enforce or exercise any or all such rights and remedies, or commence, join with any Person in
commencing, or petition for or vote in favor of any resolution for, any such action or proceeding,
after a period of 90 days has elapsed (which period shall be tolled during any period in which the
First Priority Agent shall not be entitled to enforce or exercise any rights or remedies with
respect to any Collateral as a result of (x) any injunction issued by a court of competent
jurisdiction or (y) the automatic stay or any other stay in any Insolvency or Liquidation
Proceeding) since the date on which ABDC has delivered to the First Priority Agent written notice
of an uncured default under the Prime Vending Agreement (the “Standstill Period”); provided
further, however, that (1) notwithstanding the expiration of the Standstill Period or anything
herein to the contrary, in no event shall ABDC or any other Second Priority Secured Party enforce
or exercise any rights or remedies with respect to any Collateral, or commence, join with any
Person at any time in commencing, or petition for or vote in favor of any resolution for, any such
action or proceeding, if the First Priority Agent or any other First Priority Secured Party shall
have commenced, and shall be diligently pursuing (or shall have sought or requested relief from or
modification of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding to
enable the commencement and pursuit thereof), the enforcement or exercise of any rights or remedies
with respect to any Collateral or any such action or proceeding (prompt written notice thereof to
be given to the Second Priority Agent by the First Priority Agent) and (2) after the expiration of
the Standstill Period, so long as neither the First Priority Agent nor the First Priority Secured
Parties have commenced any action to enforce their Lien on any material portion of the Collateral,
in the event that and for so long as the Second Priority Secured Parties (or ABDC on their behalf)
have commenced any actions to enforce their Lien with respect to any Collateral to the extent
permitted hereunder and are diligently pursuing such actions, neither the First Priority Secured
Parties nor the First Priority Agent shall take any
action of a similar nature with respect to such Collateral; provided that all other provisions
of this Agreement (including the turnover provisions of Article IV) are complied with;

          (b) will not contest, protest or object to any foreclosure action or proceeding brought by the
First Priority Agent or any other First Priority Secured Party, or any other enforcement or
exercise by any First Priority Secured Party of any rights or remedies relating to the Collateral
under the First Priority Debt Documents or an Insolvency or Liquidation Proceeding or in connection
with a Liquidation Sale or otherwise, so long as Second Priority Liens attach to the proceeds
thereof subject to the relative priorities set forth in Section 2.01(a),

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and will not contest, protest or object to the forbearance by the First Priority Agent or any other First
Priority Secured Party from commencing or pursuing any foreclosure action or proceeding or any
other enforcement or exercise of any rights or remedies with respect to the Collateral.

In furtherance of the foregoing, ABDC, for itself and on behalf of the other Second Priority
Secured Parties, agrees that, whether or not any Insolvency or Liquidation Proceeding or
Liquidation Sale has been commenced, the Second Priority Secured Parties will not, except for
Second Priority Permitted Actions, (w) take or receive any Collateral, or any proceeds thereof or
payment with respect thereto, in connection with the exercise of any right or enforcement of any
remedy with respect to any Collateral or in connection with any insurance policy award under a
policy of insurance relating to any Collateral or any condemnation award (or deed in lieu of
condemnation) relating to any Collateral, (x) take any action that would, or could reasonably be
expected to, hinder, in any manner, any exercise of remedies under the First Priority Debt
Documents, including any Disposition of any Collateral, whether by foreclosure or otherwise and (y)
object to the manner in which the First Priority Agent or any other First Priority Secured Party
may seek to enforce or collect the First Priority Claims or the First Priority Liens, regardless of
whether any action or failure to act by or on behalf of the First Priority Agent or any other First
Priority Secured Party is, or could be, adverse to the interests of the Second Priority Secured
Parties, and will not assert, and hereby waive, to the fullest extent permitted by law, any right
to demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal,
valuation or other similar right that may be available under applicable law with respect to the
Collateral or any similar rights a junior secured creditor may have under applicable law, and (z)
will not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge
or question the validity or enforceability of any First Priority Claim or any First Priority
Security Document, including this Agreement, or the validity or enforceability of the priorities,
rights or obligations established by this Agreement.

          SECTION 3.03. Rights as Unsecured Creditors. The Second Priority Secured Parties may, in
accordance with the terms of the Second Priority Financing Documents and applicable law, enforce
rights and exercise remedies against any Grantor as unsecured creditors; provided that no such
action is otherwise inconsistent with the terms of this Agreement. Without limiting the generality
of the foregoing sentence, the Second Priority Secured Parties shall be entitled to prosecute
litigation against any Grantor or any other Person liable in respect of the Second Priority Claims
but shall be prohibited from taking any action to enforce any judgment relating to, or applicable
to, any of the Second Priority Collateral until the Discharge of the First Priority Claims.
Nothing in this Agreement shall prohibit the receipt by any Second Priority Secured Party of the
required payments of any amounts due under the Second Priority Financing Documents so long as such
receipt is not the direct or indirect result of the enforcement of Second Priority Liens or
exercise in contravention of this Agreement by any Second Priority Secured Party of rights or
remedies as a secured creditor against
Collateral or enforcement in contravention of this Agreement of any Second Priority Lien against
Collateral (including any judgment lien resulting from the exercise of remedies available to an
unsecured creditor to the extent relating to, or applicable to, any of the Second Priority
Collateral).

          SECTION 3.04. Automatic Release of Second Priority Liens. If, in connection with (i) any
Disposition of any Collateral permitted under the terms of the First Priority Debt Documents or
(ii) the enforcement or exercise of any rights or remedies with respect to the Collateral,
including any Disposition of Collateral, the First Priority Agent, for itself and on behalf of the
other First Priority Secured Parties, (x) releases any of the First Priority Liens, or (y) releases
any Guarantor from its obligations under its guarantee of the First Priority

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Claims (in each case,
a “Release”), other than any such Release granted following (and not as a condition to) the
Discharge of First Priority Claims, then the Second Priority Liens on such Collateral (to the
extent, and only to the extent, subject to the release pursuant to preceding clause (x)), and the
obligations of such Guarantor under its guarantee of the Second Priority Claims (to the extent, and
only to the extent, to the release of the applicable Guarantor pursuant to preceding clause (y)),
shall be automatically, unconditionally and simultaneously released (subject to the receipt by the
First Priority Agent of any applicable cash proceeds of any such Disposition or sums realized in
enforcement or exercise of any rights or remedies with respect to the Second Priority Collateral
and the application thereof in accordance with the terms of this Agreement), and ABDC shall, for
itself and on behalf of the other Second Priority Secured Parties, promptly execute and deliver to
the First Priority Agent, the relevant Grantor or such Guarantor such termination statements,
releases and other documents as the First Priority Agent or the relevant Grantor or Guarantor may
reasonably request and provide to effectively confirm such Release. For the avoidance of doubt, all
proceeds of any Disposition of Collateral or other enforcement or exercise of any rights or
remedies with respect to the Collateral received by any Secured Party shall be subject the to
application of proceeds requirements of Section 4.01 and, until application in accordance
therewith, each Secured Party agrees, subject to applicable law, to hold the same in express trust
for such Secured Party (or Secured Parties) as are entitled thereto in accordance with the terms
hereof. Until the Discharge of First Priority Claims occurs, any ABDC, for itself and on behalf of
any other Second Priority Secured Party, hereby appoints the First Priority Agent, and any officer
or agent of the First Priority Agent, with full power of substitution, as the attorney-in-fact of
each Second Priority Secured Party for the purpose of carrying out the provisions of this
Section 3.04 and taking any action and executing any instrument that the First Priority
Agent may deem necessary or advisable to accomplish the purposes of this Section 3.04
(including any endorsements or other instruments of transfer or release), which appointment is
irrevocable and coupled with an interest.

          SECTION 3.05. Insurance and Condemnation Awards. So long as the Discharge of First Priority Claims
has not occurred, the First Priority Agent and the other First Priority Secured Parties shall have
the exclusive right, subject to the rights of the Grantors under the First Priority Debt Documents,
to settle and adjust claims in respect of Collateral under policies of insurance covering
Collateral and to approve any award granted in any condemnation or similar proceeding, or any deed
in lieu of condemnation, in respect of the Collateral, provided that all the other provisions of
this Agreement are complied with in regard thereto. All proceeds of any such policy and any such
award, or any payments with respect to a deed in lieu of condemnation, shall (a) first, prior to
the Discharge of First Priority Claims and subject to the rights of the Grantors under the First
Priority Debt Documents, be paid to the First
Priority Agent for the benefit of First Priority Secured Parties pursuant to the terms of the First
Priority Debt Documents, (b) second, after the Discharge of First Priority Claims and subject to
the rights of the Grantors under the Second Priority Financing Documents, be paid to the Second
Priority Secured Parties pursuant to the terms of the Second Priority Financing Documents, and (c)
third, be paid to the owner of the subject property or as a court of competent jurisdiction may
otherwise direct. Until the Discharge of First Priority Claims has occurred, if any Second
Priority Secured Party shall, at any time, receive any proceeds of any such insurance policy or any
such award or payment, it shall transfer and pay over such proceeds to the First Priority Agent in
accordance with Section 4.02.

          SECTION 3.06. Notification of Release of Collateral. Each of the First Priority Agent and ABDC
shall give the other prompt written notice of the Disposition by it of, and Release by it of the
Lien on, any Collateral. Such notice shall describe in reasonable detail the subject Collateral,
the parties involved in such Disposition or Release, the place, time manner

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and method thereof, and
the consideration, if any, received therefor; provided, however, that the failure to give any such
notice shall not in and of itself in any way impair the effectiveness of any such Disposition or
Release.

ARTICLE IV

Payments

          SECTION 4.01. Application of Proceeds. Any Collateral or proceeds thereof received by any Secured
Party in connection with any Disposition of, or collection on, such Collateral upon the enforcement
or exercise of any right or remedy shall be applied as follows:

     first, to the payment in full of the First Priority Claims and the costs and
reasonable out-of-pocket expenses of the First Priority Agent in connection with such
enforcement or exercise, and

     second, after all such costs and expenses have been paid in full and the Discharge of
First Priority Claims has occurred, to the payment of the Second Priority Claims.

After all such costs and expenses have been paid in full, the Discharge of First Priority Claims
has occurred and the Discharge of Second Priority Claims has occurred, any surplus Collateral or
proceeds then remaining shall be returned to the applicable Grantor or to whosoever may be lawfully
entitled to receive the same or as a court of competent jurisdiction may direct.

          SECTION 4.02. Payment Over. So long as the Discharge of First Priority Claims has not occurred,
any Collateral or any proceeds thereof (together with assets or proceeds subject to Liens referred
to in the final sentence of Section 2.03) received by any Second Priority Secured Party in
connection with any Disposition of, or collection on, such Collateral upon the enforcement or the
exercise of any right or remedy with respect to the Collateral, or in connection with any insurance
policy claim or any condemnation award (or deed in lieu of condemnation), shall be segregated and
held in trust and
forthwith transferred or paid over to the First Priority Agent for the benefit of the First
Priority Secured Parties in the same form as received, together with any necessary endorsements, or
as a court of competent jurisdiction may otherwise direct. Until the Discharge of First Priority
Claims occurs, ABDC, for itself and on behalf of each other Second Priority Secured Party, hereby
appoints the First Priority Agent, and any officer or agent of the First Priority Agent, with full
power of substitution, the attorney-in-fact of each Second Priority Secured Party for the purpose
of carrying out the provisions of this Section 4.02 and taking any action and executing any
instrument that the First Priority Agent may deem necessary or advisable to accomplish the purposes
of this Section 4.02, which appointment is irrevocable and coupled with an interest.
Nothing herein contained shall be deemed to prohibit any Second Priority Secured Party from
receiving and retaining the purchase price paid to such Second Priority Secured Party in the
ordinary course of business for Goods sold to any Grantor in the ordinary course of business.

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ARTICLE V

Insolvency or Liquidation Proceedings

          SECTION 5.01. Bankruptcy Finance and Section 363 Matters.  (a) In furtherance of this Agreement,
until the Discharge of First Priority Claims has occurred, the ABDC, on behalf of itself and each
of the Second Priority Secured Parties, agrees that, in the event of any Insolvency or Liquidation
Proceeding, the Second Priority Secured Parties: (i) will not oppose or object to the use of any
Collateral constituting cash collateral under Section 363 of the Bankruptcy Code, or any comparable
provision of any other Bankruptcy Law, unless the First Priority Secured Parties, or a
representative authorized by the First Priority Secured Parties, shall oppose or object to such use
of cash collateral; (ii) (A) will not oppose or object to any post-petition financing provided to
any Grantor, whether provided by the First Priority Secured Parties or any other Person, under
Section 364 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law (a “DIP
Financing”), or the Liens securing any DIP Financing (“DIP Financing Liens”), unless the First
Priority Secured Parties, or a representative authorized by the First Priority Secured Parties,
shall then oppose or object to such DIP Financing or such DIP Financing Liens, (B) to the extent
that (x) such DIP Financing Liens are senior to, or rank pari passu with, the First Priority Liens
on the Collateral, and/or (y) the First Priority Claims are included as obligations under such DIP
Financing or are repaid with proceeds of the DIP Financing, the Second Priority Secured Parties
will subordinate the Second Priority Liens on the Collateral to the First Priority Liens on the
Collateral, if applicable, and the DIP Financing Liens (including if the First Priority Claims are
(x) included as obligations under such DIP Financing and/or (y) are repaid with proceeds of the DIP
Financing) on the terms of this Agreement; and (C) will not propose or support any DIP Financing to
any Grantor; (iii) not propose, vote in favor of, or otherwise support any plan of reorganization
that is inconsistent with the priorities or other provisions of this Agreement; (iv) except to the
extent permitted by paragraph (b) of this Section 5.01, in connection with the use of cash
collateral as described in clause (i) above or a DIP Financing, will not request adequate
protection with respect to any Collateral or any other relief in connection with such use of cash
collateral, DIP Financing or DIP Financing Liens; and (v) will not oppose or object to any
Disposition of any Collateral free and clear of the Second Priority Liens or other claims under
Section 363 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, if the
First Priority Secured Parties, or a representative authorized by the First Priority Secured
Parties, shall consent to such Disposition.

          (b) The Second Secured Parties agree that they shall not, and shall not support any
other Person in contesting, (i) any request by the First Priority Agent or any other First Priority
Secured Party for adequate protection in respect of any First Priority Claims or (ii) any
objection, based on a claim of a lack of adequate protection with respect of any First Priority
Claims, by the First Priority Agent or any other First Priority Secured Party to any motion,
relief, action or proceeding.

          SECTION 5.02. Additional Bankruptcy Matters. The Second Priority Secured Parties agree that, so
long as the Discharge of First Priority Claims has not occurred, no Second Priority Secured Party
shall, without the prior written consent of the First Priority Agent, seek or request relief from
or modification of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding
in respect of any part of the Collateral, any proceeds thereof or any Second Priority Lien on the
Collateral. If, in any Insolvency or Liquidation Proceeding, debt obligations of the reorganized
debtor secured by Liens upon any property of the reorganized debtor are distributed, pursuant to a
plan of reorganization or similar dispositive

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restructuring plan, on account of the First Priority
Claims and the Second Priority Claims, then, to the extent the debt obligations distributed on
account of the First Priority Claims and on account of the Second Priority Claims are secured by
Liens upon the same assets or property, the provisions of this Agreement will survive the
distribution of such debt obligations pursuant to such plan and will apply with like effect to the
Liens securing such debt obligations. In addition, ABDC, for itself and on behalf of the other
Second Priority Secured Parties, (x) agrees that no Second Priority Secured Party shall oppose or
seek to challenge any claim by the First Priority Agent or any other First Priority Secured Party
for allowance in any Insolvency or Liquidation Proceeding of First Priority Claims consisting of
post-petition interest, fees or expenses to the extent of the value of the First Priority Liens (it
being understood and agreed that such value shall be determined without regard to the existence of
the Second Priority Liens on the Collateral), (y) waives any claim any Second Priority Secured
Party may hereafter have against any First Priority Secured Party arising out of (a) the election
by any First Priority Secured Party of the application of Section 1111(b)(2) of the Bankruptcy
Code, or any comparable provision of any other Bankruptcy Law, or (b) any use of cash collateral or
financing arrangement, or any grant of a security interest in the Collateral, in any Insolvency or
Liquidation Proceeding and (z) agrees that, without the written consent of First Priority Agent, it
will not seek to vote with the First Priority Agent (or any other First Priority Secured Party) as
a single class in connection with any plan of reorganization in any Insolvency or Liquidation
Proceeding. In addition, other than with respect to the Second Priority Permitted Actions, nothing
contained herein shall prohibit or in any way limit the First Priority Agent or any other First
Priority Secured Party from opposing, challenging or objecting to, in any Insolvency or Liquidation
Proceeding or otherwise, any action taken, or any claim made, by any Second Priority Secured Party
with respect to the Collateral, including any request by any Second Priority Secured Party for
adequate protection or any exercise by any Second Priority Secured Party of any of its rights and
remedies under the Second Priority Financing Documents with respect to the Collateral or otherwise
with respect to the Collateral.

ARTICLE VI

Other Agreements

          SECTION
6.01. Effect of Refinancing of Indebtedness under First Priority Debt Documents. If, substantially contemporaneously with the Discharge of First Priority Claims, the Grantors
Refinance Indebtedness outstanding under the First Priority Debt Documents and provided that the
Company or the First Priority Agent gives to ABDC or any of the other Second Priority Secured
Parties written notice (the “Refinancing Notice”) electing the application of the provisions of
this Section 6.01 to such Refinancing Indebtedness, then (i) such Discharge of First
Priority Claims shall automatically be deemed not to have occurred for all purposes of this
Agreement, (ii) such Refinancing Indebtedness and all other obligations under the documents
evidencing such Indebtedness (provided that the aggregate principal committed amount thereof shall
not exceed $150,000,000) (the “New First Priority Claims”) shall automatically be treated as First
Priority Claims for all purposes of this Agreement, including for purposes of the Lien priorities
and rights in respect of Collateral set forth herein, (iii) the Debt Agreement and the other
documents evidencing such Refinancing Indebtedness (the “New First Priority Debt Documents”) shall
automatically be treated as the First Priority Debt Agreement and the First Priority Debt Documents
and, in the case of New First Priority Debt Documents that are security documents pursuant to which
any Grantor has granted a Lien to secure any New First Priority Claim, as the First Priority
Security Documents for all purposes of this Agreement, (iv) the collateral agent under the New
First Priority Debt Documents (the “New First Priority Agent”) shall be deemed to be the First
Priority Agent for all purposes of this Agreement and (v)

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the lenders and other creditors under the
New First Priority Debt Documents shall be deemed to be the First Priority Creditors for all
purposes of this Agreement. Upon receipt of a Refinancing Notice, which notice shall include the
identity of the New First Priority Agent, the Second Priority Secured Parties shall promptly enter
into such documents and agreements (including amendments or supplements to this Agreement) as the
Company or such New First Priority Agent may reasonably request in order to provide to the New
First Priority Agent the rights and powers contemplated hereby, in each case consistent in all
material respects with the terms of this Agreement. The Company shall cause the agreement,
document or instrument pursuant to which the New First Priority Agent is appointed to provide that
the New First Priority Agent agrees to be bound by the terms of this Agreement.

          SECTION 6.02. Reinstatement. If, in any Insolvency or Liquidation Proceeding or otherwise, all or
part of any payment with respect to the First Priority Claims previously made shall be rescinded
for any reason whatsoever, then the First Priority Claims shall be reinstated to the extent of the
amount so rescinded and, if theretofore terminated, this Agreement shall be reinstated in full
force and effect and such prior termination shall not diminish, release, discharge, impair or
otherwise affect the Lien priorities and the relative rights and obligations of the First Priority
Secured Parties and the Second Priority Secured Parties provided for herein.

          SECTION 6.03. Authorization of First Priority Collateral Agent and ABDC. By accepting the benefits
of this Agreement and the other First Priority Security Documents, each First Priority Secured
Party hereby authorizes the First Priority Agent to enter into this Agreement and to act on its
behalf as collateral agent hereunder and in connection herewith. By accepting the benefits of this
Agreement and the other Second Priority Financing Documents, each Second Priority Secured Party
authorizes ABDC to enter into this agreement and to act on its behalf as agent hereunder and in
connection therewith.

          SECTION 6.04. Bailment for Perfection of Certain Security Interests.
The First Priority Agent agrees that if it shall at any time hold a First Priority Lien on any
Collateral that can be perfected or the priority of which can be enhanced by the possession or
control of such Collateral or of any account in which such Collateral is held, and if such
Collateral or any such account is in fact in the possession or under the control of the First
Priority Agent, or of agents or bailees of the First Priority Agent (such Collateral being referred
to herein as the “Pledged or Controlled Collateral”), the First Priority Agent shall, solely for
the purpose of perfecting the Second Priority Liens granted under the Second Priority Financing
Documents and subject to the terms and conditions of this Section 6.04, also (i) hold
and/or maintain control of such Pledged or Controlled Collateral as gratuitous bailee for and
representative (as defined in Section 1-201(35) of the Uniform Commercial Code as in effect in the
State of New York) of, or as agent for, the Second Priority Secured Parties, (ii) with respect to
any securities accounts included in the Collateral, have “control” (within the meaning of Section
8-106(d)(3) of the UCC) of such securities accounts on behalf of the Second Priority Secured
Parties and (iii) with respect to any deposit accounts included in the Collateral, act as agent for
the Second Priority Secured Parties and any assignee. So long as the Discharge of First Priority
Claims has not occurred, the First Priority Agent shall be entitled to deal with the Pledged or
Controlled Collateral in accordance with the terms of this Agreement and the other First Priority
Debt Documents as if the Second Priority Liens did not exist. The obligations and responsibilities
of the First Priority Agent to the Second Priority Secured Parties under this Section 6.04
shall be limited solely to holding or controlling the Pledged or Controlled Collateral as
gratuitous bailee and representative (as defined in Section 1-201(35) of the Uniform Commercial
Code as in effect in the State of New York) in accordance with this Section 6.04. Without
limiting the foregoing, the First

15

 

Priority Agent shall have no obligation or responsibility to
ensure that any Pledged or Controlled Collateral is genuine or owned by any of the Grantors. The
First Priority Agent acting pursuant to this Section 6.04 shall not, by reason of this
Agreement, any other Security Document or any other document, have a fiduciary relationship in
respect of any other First Priority Secured Party or any Second Priority Secured Party. Upon the
Discharge of First Priority Claims, the First Priority Agent shall transfer the possession and
control of the Pledged or Controlled Collateral, together with any necessary endorsements but
without recourse or warranty, (i) if the Second Priority Claims are outstanding at such time, to
the Second Priority Secured Parties, if no Second Priority Claims are outstanding at such time, to
the applicable Grantor, in each case so as to allow such Person to obtain possession and control of
such Pledged or Controlled Collateral. In connection with any transfer under clause (i) of the
immediately preceding sentence, the First Priority Agent agrees, at the expense of the Grantors, to
take all actions in its power as shall be reasonably requested by the Second Priority Secured
Parties to obtain a first priority security interest in the Pledged or Controlled Collateral.

          SECTION 6.05. Further Assurances. Each of the First Priority Agent, for itself and on behalf of
the other First Priority Secured Parties and the Second Priority Secured Parties, and each Grantor
party hereto, for itself and on behalf of its subsidiaries, agrees that it will execute, or will
cause to be executed, any and all further documents, agreements and instruments, and take all such
further actions, as may be required under any applicable law, or which the First Priority Agent or
the Second Priority Secured Parties may reasonably request, to effectuate the terms of this
Agreement, including the relative Lien priorities provided for herein.

ARTICLE VII

Representations and Warranties

          SECTION 7.01. Representations and Warranties of Each Party. Each party hereto represents and
warrants to the other parties hereto as follows:

          (a) such party is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization and has all requisite power and authority to
execute and deliver this Agreement and perform its obligations hereunder.

          (b) this Agreement has been duly executed and delivered by such party and
constitutes a legal, valid and binding obligation of such party, enforceable in accordance
with its terms.

          (c) the execution, delivery and performance by such party of this Agreement (i)
do not require any consent or approval of, registration or filing with or any other action by
any governmental authority (except as contemplated hereby) and (ii) will not violate any
provision of law, statute, rule or regulation, or of the certificate or articles of
incorporation or other constitutive documents or by-laws of such party or any order of any
governmental authority or any provision of any indenture, agreement or other instrument
applicable to or binding upon such party.

          SECTION 7.02. Representations and Warranties of Each of the First Priority Agent and ABDC. Each of
the First Priority Agent and ABDC represents and warrants to the other parties hereto that it has
been duly authorized in writing by the First Priority Secured Parties or Second Priority Secured
Parties, as the case may be, to enter into this Agreement.

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ARTICLE VIII

No Reliance; No Liability; Obligations Absolute

          SECTION 8.01. No Reliance; Information. The First Priority Secured Parties and the Second Priority
Secured Parties shall have no duty to disclose to any Second Priority Secured Party or to any First
Priority Secured Party, respectively, any information relating to the Company or any of the
Grantors, or any other circumstance bearing upon the risk of nonpayment of any of the First
Priority Claims or the Second Priority Claims, as the case may be, that is known or becomes known
to any of them or any of their Affiliates. In the event any First Priority Secured Party or any
Second Priority Secured Party, in its sole discretion, undertakes at any time or from time to time
to provide any such information to, respectively, any Second Priority Secured Party or any First
Priority Secured Party, it shall be under no obligation (i) to make, and shall not make or be
deemed to have made, any express or implied representation or warranty, including with respect to
the accuracy, completeness, truthfulness or validity of the information so provided, (ii) to
provide any additional information or to provide any such information on any subsequent occasion or
(iii) to undertake any investigation.

          SECTION 8.02. No Warranties or Liability.  (a) The First Priority Agent, for itself and on behalf
of the other First Priority Secured Parties, acknowledges and agrees that, except for the
representations and warranties set forth in Article VII, no Second Priority Secured Party
has made any express or implied representation or warranty, including with respect to the
execution, validity, legality, completeness, collectability or enforceability of any of the Second
Priority Financing Documents, the ownership of any Collateral or the perfection or priority of any
Liens thereon. ABDC, for itself and on behalf of the other Second Priority Secured Parties,
acknowledges and agrees that, except for the representations and warranties set forth in
Article VII, neither the First Priority Agent nor any other First Priority Secured Party
has made any express or implied representation or warranty, including with respect to the
execution, validity, legality, completeness, collectability or enforceability of any of the First
Priority Debt Documents, the ownership of any Collateral or the perfection or priority of any Liens
thereon.

          (b) The Second Priority Secured Parties shall have no express or implied duty to the
First Priority Agent or any other First Priority Secured Party, and the First Priority Agent and
the other First Priority Secured Parties shall have no express or implied duty to the Second
Priority Secured Parties to act or refrain from acting in a manner which allows, or results in, the
occurrence or continuance of a default or an event of default under any First Priority Debt
Document and any Second Priority Financing Document (other than, in each case, this Agreement),
regardless of any knowledge thereof which they may have or be charged with.

          (c) ABDC, for itself and on behalf of the other Second Priority Secured Parties,
agrees that no First Priority Secured Party shall have any liability to the Second Priority Secured
Parties and hereby waive any claim against any First Priority Secured Party, arising out of any and
all actions which the First Priority Agent or the other First Priority Secured Parties may take or
permit or omit to take with respect to (i) the First Priority Debt Documents (other than this
Agreement), (ii) the collection of the First Priority Claims or (iii) the maintenance of, the
preservation of, the foreclosure upon or the Disposition of any Collateral.

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ARTICLE IX

Miscellaneous

          SECTION 9.01. Notices. Notices and other communications provided for herein shall be in writing in
the English language (or accompanied by a certified translation) and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by fax, as follows:

if to the First Priority Agent:

Jefferies Finance LLC

520 Madison Avenue

New York, New York 10022

Attention: General Counsel — Investment Banking

Facsimile No.: (212) 284-3444

with a copy to:

Proskauer Rose LLP

1585 Broadway

New York, New York 10036

Attention: Joshua W. Thompson

Facsimile No.: (212) 969-2900

if to ABDC or any of the Second Priority Secured Parties;

AmerisourceBergen Drug Corporation

1300 Morris Drive

Chesterbrook, PA 19087-5594

Attention: Group Vice President, Alternate Care

Facsimile No.: (610) 727-3601

with a copy to:

AmerisourceBergen Corporation

1300 Morris Drive

Chesterbrook, Pennsylvania 19087-5594

Attention: General Counsel

Facsimile No.: (610) 727-3612

          All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered
by hand or overnight courier service or sent by fax or on the date five Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in this Section 9.01 or in accordance with
the latest unrevoked direction from such party given in accordance with this Section 9.01.
As agreed to between the Company and any Collateral Agent from time to time, notices and other
communications may also be delivered by e-mail to the e-mail address of a representative of the
applicable Person provided from time to time by such Person. In addition, ABDC agrees to use

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diligent efforts to provide any notices of default or acceleration or similar notices which they
give to any Grantor under any Second Priority Financing Documents.

          SECTION 9.02. Conflicts. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF
THIS AGREEMENT AND THE PROVISIONS OF THE OTHER DEBT DOCUMENTS, THE PROVISIONS OF THIS AGREEMENT
SHALL CONTROL.

          SECTION 9.03. Effectiveness; Survival; Termination. This Agreement shall become effective when
executed and delivered by the parties hereto. All covenants, agreements, representations and
warranties made by any party in this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement. The terms of
this Agreement shall survive, and shall continue in full force and effect, in any Insolvency or
Liquidation Proceeding. ABDC, for itself and on behalf of the other Second Priority Secured
Parties, hereby waive any and all rights the Second Priority Secured Parties may now or hereafter
have under applicable law to revoke this Agreement or any of the provisions of this Agreement.
This Agreement shall terminate and be of no further force and effect, (i) subject to compliance
with its obligations to take certain actions
upon Discharge of the Second Priority Claims pursuant to Article V and Section
3.01(d), with respect to the Second Priority Secured Parties and the Second Priority Claims,
upon the later of (1) the date upon which the obligations under the Second Priority Financing
Documents terminate if there are no other Second Priority Claims outstanding on such date and (2)
if there are other Second Priority Claims outstanding on such date, the date upon which such Second
Priority Claims terminate, subject to the rights of the Second Priority Claims and ABDC under
Section 6.01 and (ii) subject to Section 6.01 and compliance with its obligations
to take certain actions upon Discharge of the First Priority Claims pursuant to Article V, with
respect to the First Priority Agent, the First Priority Secured Parties and the First Priority
Claims, the date of Discharge of First Priority Claims, subject to the rights of the First Priority
Secured Parties under Section 6.01. In addition, for the avoidance of doubt, the Lien
priorities provided for herein and the respective rights, interests, agreements and obligations
hereunder of the First Priority Agent and the other First Priority Secured Parties and the Second
Priority Secured Parties shall remain in full force and effect irrespective of: (a) any change in
the time, place or manner of payment of, or in any other term of, all or any portion of the First
Priority Claims, it being specifically acknowledged that a portion of the First Priority Claims
consists or may consist of Indebtedness that is revolving in nature, and the amount thereof that
may be outstanding at any time or from time to time may be increased or reduced and subsequently
reborrowed (provided that the aggregate principal committed amount thereof shall not exceed
$150,000,000); (b) any change in the time, place or manner of payment of, or any other term of, all
or any portion of the First Priority Claims; (c) any amendment, waiver or other modification,
whether by course of conduct or otherwise, of any Debt Document (provided that the aggregate
principal committed amount thereof shall not exceed $150,000,000); (d) the securing of any First
Priority Claims or Second Priority Claims with any additional collateral or guarantees, or any
exchange, release, voiding, avoidance or non-perfection of any security interest in any Collateral
or any other collateral or any release of any guarantee securing any First Priority Claims or
Second Priority Claims; (e) the commencement of any Insolvency or Liquidation Proceeding or
Liquidation Sale in respect of the Company or any other Grantor; or (f) any other circumstances
that otherwise might constitute a defense available to, or a discharge of, the Company or any other
Grantor in respect of the First Priority Claims or this Agreement, or any of the Second Priority
Secured Parties in respect of this Agreement.

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          SECTION 9.04. Severability. In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision in any other
jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provisions.

          SECTION 9.05. Amendments; Waivers. (a) No failure or delay on the part of any party hereto in
exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of
any other right or power. The rights and remedies of the parties hereto are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or
consent to any departure by any party therefrom shall in any event be effective unless the same
shall be permitted by paragraph (b) of this Section 9.05, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into by the First
Priority Agent and ABDC.

          SECTION 9.06. Postponement of Subrogation. The Second Priority Secured Parties agrees that no
payment or distribution to any First Priority Secured Party pursuant to the provisions of this
Agreement shall entitle any Second Priority Secured Party to exercise any rights of subrogation in
respect thereof until the Discharge of First Priority Claims shall have occurred. Following the
Discharge of First Priority Claims, each First Priority Secured Party agrees to execute such
documents, agreements, and instruments as any Second Priority Secured Party may reasonably request
to evidence the transfer by subrogation to any such Person of an interest in the First Priority
Claims resulting from payments or distributions to such First Priority Secured Party by such
Person, so long as all costs and expenses (including all reasonable legal fees and disbursements)
incurred in connection therewith by such First Priority Secured Party are paid by such Person upon
request for payment thereof.

          SECTION 9.07. Applicable Law; Jurisdiction; Consent to Service of Process. (a) THIS AGREEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION.

          (b) Each party hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the non-exclusive jurisdiction of any Supreme Court for New York County, New York
or in The United States District Court for the Southern District of New York, and any appellate
court from any thereof, in any action or proceeding arising out of or relating to this Agreement,
or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined only in such New York court or, to the extent permitted by law, in such
Federal court. Each party hereto agrees that a final judgment in any such action

20

 

or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.

          (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
in any New York court or in any such Federal court. Each party hereto hereby irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 9.01. Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner permitted by law.

          SECTION 9.08. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 9.08.

          SECTION 9.09. Parties in Interest. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, as well as
the other First Priority Secured Parties and Second Priority Secured Parties, all of whom are
intended to be bound by, and to be third party beneficiaries of, this Agreement. No other Person
shall have or be entitled to assert rights or benefits hereunder.

          SECTION 9.10. Specific Performance. Each of the First Priority Agent and ABDC may demand specific
performance of this Agreement and, on behalf of itself and the respective other Secured Parties,
hereby irrevocably waives any defense based on the adequacy of a remedy at law and any other
defense that might be asserted to bar the remedy of specific performance in any action which may be
brought by the respective Secured Parties.

          SECTION 9.11. Headings. Article and Section headings used herein and the Table of Contents hereto
are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective as
provided in Section 9.03. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed counterpart of this
Agreement.

21

 

          SECTION 9.13. Provisions Solely to Define Relative Rights. The provisions of this Agreement are
and are intended solely for the purpose of defining the relative rights of the First Priority
Secured Parties, on the one hand, and the Second Priority Secured Parties, on the other hand. None
of the Company, any other Grantor, any Guarantor or any other creditor thereof shall have any
rights or obligations, except as expressly provided in this Agreement hereunder and none of the
Company, any other Grantor or any Guarantor may rely on the terms hereof. Nothing in this
Agreement is intended to or shall impair the obligations of the
Company or any other Grantor or any Guarantor, which are absolute and unconditional, to pay the
First Priority Claims and the Second Priority Claims as and when the same shall become due and
payable in accordance with their terms.

[Remainder of this page intentionally left blank]

22

 

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

	 	 	 	 	 
	 	JEFFERIES FINANCE LLC, as First Priority 

Agent

 	 
	 	By:  	/s/  E.J.
Hess	 
	 	 	Name:  	E.J.
Hess 	 
	 	 	Title:  	Managing Director 	 
	 
	 	AMERISOURCEBERGEN CORPORATION, for itself and on
behalf of the Second Priority Secured Parties

 	 
	 	By:  	/s/  Mitchell
Blumenfeld	 
	 	 	Name:  	Mitchell
Blumenfeld 	 
	 	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 

ACKNOWLEDGMENT

The Company and each of the Company’s undersigned Subsidiaries each hereby acknowledge that they
have received a copy of the foregoing Agreement and consent thereto, agree to recognize all rights
granted thereby to the First Priority Agent and the Second Priority Secured Parties and to ABDC and
the Second Priority Secured Parties, and will not do any act or perform any obligation which is not
in accordance with the agreements set forth therein. The Company and each of the Company’s
undersigned Subsidiaries each further acknowledge and agree that they are not an intended
beneficiary or third party beneficiary under the foregoing Agreement.

	 	 	 	 	 
	

ACKNOWLEDGED AS OF THE DATE FIRST WRITTEN ABOVE:

BIOSCRIP, INC.

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	BIOSCRIP INFUSION SERVICES, INC.

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	CHRONIMED, LLC

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	LOS FELIZ DRUGS INC.

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreement

 

 

	 	 	 	 	 
	BIOSCRIP PHARMACY, INC.

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	BRADHURST SPECIALTY PHARMACY, INC.

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	BIOSCRIP PHARMACY (NY), INC.

 	 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	BIOSCRIP PBM SERVICES, LLC

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	NATURAL LIVING INC.

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

	 	 	 	 	 
	BIOSCRIP INFUSION SERVICES, LLC

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreement

 

 

	 	 	 	 	 
	BIOSCRIP NURSING SERVICES, LLC

 	 
	By:  	/s/ Barry
A. Posner	 
	 	Name:  	Barry
A. Posner 	 
	 	Title:  	Executive Vice President and General Counsel 	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreement

 

 

	 	 	 	 	 
	BIOSCRIP INFUSION MANAGEMENT, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	BIOSCRIP PHARMACY SERVICES, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	CHS HOLDINGS,
INC.
(FORMERLY CAMELOT ACQUISITION CORP.)
 

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	CRITICAL HOMECARE SOLUTIONS, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	APPLIED HEALTH CARE, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	CEDAR CREEK HOME HEALTH CARE AGENCY, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreement

 

 

	 	 	 	 	 
	DEACONESS ENTERPRISES, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	DEACONESS HOMECARE, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	EAST GOSHEN PHARMACY, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	ELK VALLEY HEALTH SERVICES, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	ELK VALLEY HOME HEALTH CARE AGENCY, INC. 	 
	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	ELK VALLEY PROFESSIONAL AFFILIATES, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	GERICARE, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreement

 

 

	 	 	 	 	 
	INFUSION PARTNERS, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	INFUSION PARTNERS OF BRUNSWICK, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	INFUSION PARTNERS OF MELBOURNE, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	INFUSION SOLUTIONS, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	KNOXVILLE HOME THERAPIES, LLC

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	NATIONAL HEALTH INFUSION, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreement

 

 

	 	 	 	 	 
	NEW ENGLAND HOME THERAPIES, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	OPTION HEALTH, LTD.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	PROFESSIONAL HOMECARE SERVICES, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	REGIONAL AMBULATORY DIAGNOSTICS, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	SCOTT-WILSON, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	SOUTH MISSISSIPPI HOME HEALTH, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreement

 

 

	 	 	 	 	 
	SOUTH MISSISSIPPI HOME HEALTH, INC. — REGION I

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	SOUTH MISSISSIPPI HOME HEALTH, INC. — REGION II

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	SOUTH MISSISSIPPI HOME HEALTH, INC. — REGION III

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	SPECIALTY PHARMA, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

	 	 	 	 	 
	WILCOX MEDICAL, INC.

 	 
	By:  	/s/ Barry A. Posner	 
	 	Name:  	Barry A. Posner	 
	 	Title:  	Executive Vice President and General Counsel	 
	 

Signature
Page to Acknowledgement to Intercreditor Agreementexv10w5

Exhibit 10.5

EXECUTION VERSION

$225,000,000

BIOSCRIP, INC.

101/4% of Senior Notes due 2015

REGISTRATION RIGHTS AGREEMENT

March 25, 2010

JEFFERIES & COMPANY, INC.

520 Madison Avenue

New York, New York 10022

Ladies and Gentlemen:

     BioScrip, Inc., a Delaware corporation (the “Company”) is issuing and selling to
Jefferies & Company, Inc. (the “Initial Purchaser”), upon the terms set forth in the
Purchase Agreement dated March 17, 2010, by and among the Company, the Initial Purchaser and the
subsidiary guarantors named therein (the “Purchase Agreement”), $225,000,000 aggregate
principal amount of 101/4% Senior Notes due 2015 issued by the Company (each, a “Note” and
collectively, the “Notes”). As an inducement to the Initial Purchaser to enter into the
Purchase Agreement, the Company and the subsidiary guarantors listed in the signature pages hereto
agree with the Initial Purchaser, for the benefit of the Holders (as defined below) of the Notes
(including, without limitation, the Initial Purchaser), as follows:

	1.	 	Definitions

     Capitalized terms that are used herein without definition and are defined in the Purchase
Agreement shall have the respective meanings ascribed to them in the Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

     Advice: See Section 6(w).

     Agreement: This Registration Rights Agreement, dated as of the Closing Date, between the
Company and the Initial Purchaser.

     Applicable Period: See Section 2(e).

     Business Day: A day that is not a Saturday, a Sunday or a day on which banking institutions
in the City of New York are authorized or required by law or executive order to be closed.

     Closing Date: March 25, 2010.

     Company: See the introductory paragraph to this Agreement.

     Day: Unless otherwise expressly provided, a calendar day.

     Effectiveness Date: The 180th day after the Closing Date, or if such date is not a Business
Day, the next succeeding Business Day; provided, that if a Shelf Notice is delivered pursuant to
Section 2(j) hereof, the applicable Effectiveness Date for the Initial Shelf Registration shall be
the 90th day following the date of the delivery of the Shelf Notice.

 

 

     Effectiveness Period: See Section 3(a).

     Event Date: See Section 4(b).

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations
of the SEC promulgated thereunder.

     Exchange Notes: Senior Notes due 2015 of the Company, identical in all material respects to
the Notes, including the guarantees endorsed thereon, except for references to series and
restrictive legends.

     Exchange Offer: See Section 2(a).

     Exchange Registration Statement: See Section 2(a).

     Filing Date: The 90th day after the Closing Date, or if such date is not a
Business Day, the next succeeding Business Day; provided, that if a Shelf Notice is delivered
pursuant to Section 2(j) hereof, the applicable Effectiveness Date for the Initial Shelf
Registration shall be the 30th day following the date of the delivery of the Shelf Notice.

     FINRA: Financial Industry Regulatory Authority:

     Holder: Any beneficial holder of Registrable Notes.

     Indemnified Party: See Section 8(c).

     Indemnifying Party: See Section 8(c).

     Indenture: The Indenture, dated as of the Closing Date, among the Company, the Subsidiary
Guarantors and U.S. Bank National Association, as trustee, pursuant to which the Notes are being
issued, as amended or supplemented from time to time in accordance with the terms hereof.

     Initial Purchaser: See the introductory paragraph to this Agreement.

     Initial Shelf Registration: See Section 3(a).

     Inspectors: See Section 6(o).

     Liquidated Damages: See Section 4(a).

     Losses: See Section 8(a).

     Notes: See the introductory paragraph to this Agreement.

     Participating Broker-Dealer: See Section 2(e).

     Person: An individual, trustee, corporation, partnership, limited liability company, joint
stock company, trust, unincorporated association, union, business association, firm, government or
agency or political subdivision thereof, or other legal entity.

     Private Exchange: See Section 2(f).

     Private Exchange Notes: See Section 2(f).

 

 

     Prospectus: The prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses information previously omitted from a prospectus filed as
part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Notes covered by such Registration Statement, and
all other amendments and supplements to the Prospectus, including post-effective amendments, and
all material incorporated by reference or deemed to be incorporated by reference in such
Prospectus.

     Purchase Agreement: See the introductory paragraph to this Agreement.

     Records: See Section 6(o).

     Registrable Notes: Notes and Private Exchange Notes, in each case, that may not be sold
without restriction under federal or state securities laws.

     Registration Statement: Any registration statement of the Company and the Subsidiary
Guarantors filed with the SEC under the Securities Act (including, but not limited to, the Exchange
Registration Statement, the Shelf Registration and any subsequent Shelf Registration) that covers
any of the Registrable Notes pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement, including post-effective
amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.

     Rule 144: Rule 144 promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule (other than Rule 144A) or regulation hereafter adopted by the SEC
providing for offers and sales of securities made in compliance therewith resulting in offers and
sales by subsequent holders that are not affiliates of an issuer or such securities being free of
the registration and prospectus delivery requirements of the Securities Act.

     Rule 144A: Rule 144A promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule (other than Rule 144) or regulation hereafter adopted by the SEC.

     Rule 415: Rule 415 promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC.

     Rule 430A: Rule 430A promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC.

     SEC: The Securities and Exchange Commission.

     Securities: The Notes, the Exchange Notes and the Private Exchange Notes.

     Securities Act: The Securities Act of 1933, as amended, and the rules and regulations of the
SEC promulgated thereunder.

     Shelf Notice: See Section 2(j).

     Shelf Registration: See Section 3(b).

     Subsequent Shelf Registration: See Section 3(b).

     Subsidiary Guarantor: Each subsidiary of the Company that guarantees the obligations of the
Company under the Notes and Indenture.

 

 

     TIA: The Trust Indenture Act of 1939, as amended.

     Trustee: The trustee under the Indenture and, if existent, the trustee under any indenture
governing the Exchange Notes and Private Exchange Notes (if any).

     Underwritten Registration or Underwritten Offering: A registration in which securities of the
Company are sold to an underwriter for reoffering to the public.

	2.	 	Exchange Offer

	 	(a)	 	Unless the Exchange Offer would not be permitted by applicable laws or a
policy of the SEC, the Company shall (and shall cause each Subsidiary Guarantor to) (i)
prepare and file with the SEC promptly after the date hereof, but in no event later
than the Filing Date, a registration statement (the “Exchange Registration
Statement”) on an appropriate form under the Securities Act with respect to an
offer (the “Exchange Offer”) to the Holders of Notes to issue and deliver to
such Holders, in exchange for the Notes, a like principal amount of Exchange Notes,
(ii) use all commercially reasonable efforts to cause the Exchange Registration
Statement to be declared effective on or prior to the Effectiveness Date, (iii) use its
best efforts to keep the Exchange Registration Statement effective until the
consummation of the Exchange Offer in accordance with its terms, and (iv) commence the
Exchange Offer and use all commercially reasonable efforts to issue on or prior to 30
Business Days after the date on which the Exchange Registration Statement is declared
effective, Exchange Notes in exchange for all Notes tendered prior thereto in the
Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than
that the Exchange Offer does not violate applicable law or any applicable
interpretation of the staff of the SEC.
	 
	 	(b)	 	The Exchange Notes shall be issued under, and entitled to the benefits of the
Indenture or a trust indenture that is identical to the Indenture (other than such
changes as are necessary to comply with any requirements of the SEC to effect or
maintain the qualifications thereof under the TIA).
	 
	 	(c)	 	Interest on the Exchange Notes and Private Exchange Notes will accrue from the
last interest payment due date on which interest was paid on the Notes surrendered in
exchange therefor or, if no interest has been paid on the Notes, from the date of
original issue of the Notes. Each Exchange Note and Private Exchange Note shall bear
interest at the rate set forth thereon; provided, that interest with respect to the
period prior to the issuance thereof shall accrue at the rate or rates borne by the
Notes from time to time during such period.
	 
	 	(d)	 	The Company may require each Holder as a condition to participation in the
Exchange Offer to represent (i) that any Exchange Notes received by it will be acquired
in the ordinary course of its business, (ii) that at the time of the commencement and
consummation of the Exchange Offer such Holder has not entered into any arrangement or
understanding with any Person to participate in the distribution (within the meaning of
the Securities Act) of the Exchange Notes in violation of the provisions of the
Securities Act, (iii) that if such Holder is an “affiliate” of the either of the
Company within the meaning of Rule 405 of the Securities Act, it will comply with the
registration and prospectus delivery requirements of the Securities Act to the extent
applicable to it, (iv) if such Holder is not a broker-dealer, that it is not engaged
in, and does not intend to engage in, the distribution of the Notes and (v) if such
Holder is a Participating Broker-Dealer, that it will deliver a Prospectus in
connection with any resale of the Exchange Notes.

 

 

	 	(e)	 	The Company shall (and shall cause each Subsidiary Guarantor to) include
within the Prospectus contained in the Exchange Registration Statement a section
entitled “Plan of Distribution” reasonably acceptable to the Initial Purchaser which
shall contain a summary statement of the positions taken or policies made by the staff
of the SEC with respect to the potential “underwriter” status of any broker-dealer that
is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange
Notes received by such broker-dealer in the Exchange Offer for its own account in
exchange for Notes that were acquired by it as a result of market-making or other
trading activity (a “Participating Broker-Dealer”), whether such positions or
policies have been publicly disseminated by the staff of the SEC or such positions or
policies, in the judgment of the Initial Purchaser, represent the prevailing views of
the staff of the SEC. Such “Plan of Distribution” section shall also allow, to the
extent permitted by applicable policies and regulations of the SEC, the use of the
Prospectus by all Persons subject to the prospectus delivery requirements of the
Securities Act, including, to the extent so permitted, all Participating
Broker-Dealers, and include a statement describing the manner in which Participating
Broker-Dealers may resell the Exchange Notes. The Company shall use its best efforts
to keep the Exchange Registration Statement effective and to amend and supplement the
Prospectus contained therein, in order to permit such Prospectus to be lawfully
delivered by all Persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such Persons must comply with such
requirements in order to resell the Exchange Notes (the “Applicable Period”).
	 
	 	(f)	 	If, upon consummation of the Exchange Offer, the Initial Purchaser holds any
Notes acquired by it and having the status of an unsold allotment in the initial
distribution, the Company (upon the written request from the Initial Purchaser) shall,
simultaneously with the delivery of the Exchange Notes in the Exchange Offer, issue and
deliver to the Initial Purchaser, in exchange (the “Private Exchange”) for the
Notes held by the Initial Purchaser, a like principal amount of Senior Notes that are
identical to the Exchange Notes except for the existence of restrictions on transfer
thereof under the Securities Act and securities laws of the several states of the
United States (the “Private Exchange Notes”) (and which are issued pursuant to
the same indenture as the Exchange Notes). The Private Exchange Notes shall bear the
same CUSIP number as the Exchange Notes.
	 
	 	(g)	 	In connection with the Exchange Offer, the Company shall (and shall cause each
Subsidiary Guarantor to):

	 	(i)	 	mail to each Holder a copy of the Prospectus forming part of the
Exchange Registration Statement, together with an appropriate letter of
transmittal that is an exhibit to the Exchange Offer Registration Statement,
and any related documents;
	 
	 	(ii)	 	keep the Exchange Offer open for not less than 30 days after the date
notice thereof is mailed to the Holders (or longer if required by applicable
law)
	 
	 	(iii)	 	utilize the services of a depository for the Exchange Offer with an
address in the Borough of Manhattan, the City of New York, which may be the
Trustee or an affiliate thereof;
	 
	 	(iv)	 	permit Holders to withdraw tendered Registrable Notes at any time
prior to the close of business, New York time, on the last Business Day on
which the Exchange Offer shall remain open; and
	 
	 	(v)	 	otherwise comply in all material respects with all applicable laws.

 

 

	 	(h)	 	As soon as practicable after the close of the Exchange Offer or the Private
Exchange, as the case may be, the Company shall (and shall cause each Subsidiary
Guarantor to):

	 	(i)	 	accept for exchange all Registrable Notes validly tendered pursuant to
the Exchange Offer or the Private Exchange, as the case may be, and not validly
withdrawn;
	 
	 	(ii)	 	deliver to the Trustee for cancellation all Registrable Notes so
accepted for exchange; and
	 
	 	(iii)	 	cause the Trustee to authenticate and deliver promptly to each
Holder tendering such Registrable Notes, Exchange Notes or Private Exchange
Notes, as the case may be, equal in principal amount to the Notes of such
Holder so accepted for exchange.

	 	(i)	 	The Exchange Notes and the Private Exchange Notes may be issued under (i) the
Indenture or (ii) an indenture identical to the Indenture (other than such changes as
are necessary to comply with any requirements of the SEC to effect or maintain the
qualification thereof under the TIA), which in either event will provide that the
Exchange Notes will not be subject to the transfer restrictions set forth in the
Indenture, that the Private Exchange Notes will be subject to the transfer restrictions
set forth in the Indenture, and that the Exchange Notes, the Private Exchange Notes and
the Notes, if any, will be deemed one class of security (subject to the provisions of
the Indenture) and entitled to participate in any Subsidiary Guarantee (as such terms
are defined in the Indenture) on an equal and ratable basis.
	 
	 	(j)	 	If: (i)the Company and the Subsidiary Guarantors are not required to file an
Exchange Offer Registration Statement, (ii) the Company and the Guarantors are not
permitted to consummate the Exchange Offer because the Exchange Offer is not permitted
by applicable law or SEC policy, or (iii) within 20 Business Days following the
Consummation of the Exchange Offer, any Holder of Registrable Notes notifies the
Company that (a) it is prohibited by applicable law or SEC policy from participating in
the Exchange Offer; (b) it may not resell the Exchange Notes acquired by it in the
Exchange Offer to the public without delivering a prospectus (other than by reason of
such Holder’s status as an Affiliate of the Company) and the Prospectus contained in
the Exchange Offer Registration Statement is not appropriate or available for such
resales or (c) it is a broker-dealer and owns Notes acquired directly from the Company
or an Affiliate of the Company, then the Company and the Subsidiary Guarantors shall
promptly (and in any event within five Business Days) deliver to the Holders (or in the
case of an occurrence of any event described in clause (iii) of this Section 2(j), to
any such Holder) and the Trustee notice thereof (the “Shelf Notice”) and shall
file an Initial Shelf Registration pursuant to Section 3.

	3.	 	Shelf Registration

     If a Shelf Notice is delivered pursuant to Section 2(j), then this Section 3 shall apply to
all Registrable Notes. Otherwise, upon consummation of the Exchange Offer in accordance with
Section 2, the provisions of Section 3 shall apply solely with respect to (i) Notes held by any
Holder thereof not permitted to participate in the Exchange Offer, (ii) Notes held by any
broker-dealer that acquired such Notes directly from the Company or any of its affiliates and (iii)
Exchange Notes that are not freely tradeable as contemplated by Section 2(j)(iii) hereof, provided
in each case that the relevant Holder has duly notified the Company within 20 Business Days of the
consummation of the Exchange Offer as required by Section 2(j)(iii).

 

 

	 	(a)	 	Initial Shelf Registration. The Company shall (and shall cause each
Subsidiary Guarantor to), as promptly as practicable, file with the SEC a Registration
Statement for an offering to be made on a continuous basis pursuant to Rule 415
covering all of the Registrable Notes (the “Initial Shelf Registration”) on or
prior to 30 days after such filing obligation arises. The Company shall (and shall
cause each Subsidiary Guarantor to) use all commercially reasonable efforts to cause
such Initial Shelf Registration to be declared effective under the Securities Act on or
prior to the Effectiveness Date. The Initial Shelf Registration shall be on Form S-1 or
another appropriate form permitting registration of such Registrable Notes for resale
by Holders in the manner or manners reasonably designated by them (including, without
limitation, one or more underwritten offerings). The Company and Subsidiary Guarantors
shall not permit any securities other than the Registrable Notes to be included in any
Shelf Registration. The Company shall (and shall cause each Subsidiary Guarantor to)
use its commercially reasonable efforts to keep the Initial Shelf Registration
continuously effective under the Securities Act until the date which is two years from
the Closing Date (subject to extension pursuant to the last paragraph of Section 6(w))
(the “Effectiveness Period”), or such shorter period ending when (i) all
Registrable Notes covered by the Initial Shelf Registration have been sold in the
manner set forth and as contemplated in the Initial Shelf Registration (ii) a
Subsequent Shelf Registration covering all of the Registrable Notes covered by and not
sold under the Initial Shelf Registration or an earlier Subsequent Shelf Registration
has been declared effective under the Securities Act or (iii) there cease to be any
outstanding Registrable Notes.
	 
	 	(b)	 	Subsequent Shelf Registrations. If the Initial Shelf Registration or
any Subsequent Shelf Registration (as defined below) ceases to be effective for any
reason at any time during the Effectiveness Period (other than because of the sale of
all of the securities registered thereunder), the Company shall (and shall cause each
Subsidiary Guarantor to) use its best efforts to obtain the prompt withdrawal of any
order suspending the effectiveness thereof, and in any event shall within 30 days of
such cessation of effectiveness amend such Shelf Registration in a manner to obtain the
withdrawal of the order suspending the effectiveness thereof, or file (and cause each
Subsidiary Guarantor to file) an additional “shelf” Registration Statement pursuant to
Rule 415 covering all of the Registrable Notes (a “Subsequent Shelf
Registration”). If a Subsequent Shelf Registration is filed, the Company shall
(and shall cause each Subsidiary Guarantor to) use its commercially reasonable efforts
to cause the Subsequent Shelf Registration to be declared effective as soon as
practicable after such filing and to keep such Subsequent Shelf Registration
continuously effective for a period equal to the number of days in the Effectiveness
Period less the aggregate number of days during which the Initial Shelf Registration or
any Subsequent Shelf Registration was previously continuously effective. As used
herein the term “Shelf Registration” means the Initial Shelf Registration and any
Subsequent Shelf Registrations
	 
	 	(c)	 	Supplements and Amendments. The Company shall promptly supplement and
amend any Shelf Registration if required by the rules, regulations or instructions
applicable to the registration form used for such Shelf Registration, if required by
the Securities Act, or if reasonably requested in writing by the Holders of a majority
in aggregate principal amount of the Registrable Notes covered by such Shelf
Registration or by any underwriter of such Registrable Notes.
	 
	 	(d)	 	Provision of Information. No Holder of Registrable Notes shall be
entitled to include any of its Registrable Notes in any Shelf Registration pursuant to
this Agreement unless such Holder furnishes to the Company and the Trustee in writing,
within 20 days after receipt of a written request therefor, such information as the
Company and the Trustee after conferring

 

 

	 	 	 	with counsel with regard to information relating to Holders that would be required
by the SEC to be included in such Shelf Registration or Prospectus included therein,
may reasonably request for inclusion in any Shelf Registration or Prospectus
included therein, and no such Holder shall be entitled to Liquidated Damages
pursuant to Section 4 hereof unless and until such Holder shall have provided such
information.

	4.	 	Liquidated Damages

	 	(a)	 	The Company and each Subsidiary Guarantor acknowledges and agrees that the
Holders of Registrable Notes will suffer damages if the Company or any Subsidiary
Guarantor fails to fulfill its material obligations under Section 2 or Section 3 hereof
and that it would not be feasible to ascertain the extent of such damages with
precision. Accordingly, the Company and the Subsidiary Guarantors agree to pay
additional cash interest on the Notes (“Liquidated Damages”) under the
circumstances and to the extent set forth below (each of which shall be given
independent effect):

	 	(i)	 	if neither the Exchange Registration Statement nor the Initial Shelf
Registration has been filed on or prior to the applicable Filing Date,
Liquidated Damages shall accrue on the Notes over and above any stated interest
at a rate of 0.25% per annum of the principal amount of such Notes for the
first 90 days immediately following the applicable Filing Date, such Liquidated
Damages rate increasing by an additional 0.25% per annum at the beginning of
each subsequent 90-day period;
	 
	 	(ii)	 	if neither the Exchange Registration Statement nor the Initial Shelf
Registration is declared effective on or prior to the applicable Effectiveness
Date, Liquidated Damages shall accrue on the Notes over and above any stated
interest at a rate of 0.25% per annum of the principal amount of such Notes for
the first 90 days immediately following the applicable Effectiveness Date, such
Liquidated Damages rate increasing by an additional 0.25% per annum at the
beginning of each subsequent 90-day period;
	 
	 	(iii)	 	if (A) the Company (and any Subsidiary Guarantor) has not exchanged
Exchange Notes for all Notes validly tendered in accordance with the terms of
the Exchange Offer on or prior to the 30 Business Days after the Effectiveness
Date, (B) the Exchange Registration Statement ceases to be effective at any
time prior to the time that the Exchange Offer is consummated, (C) if
applicable, a Shelf Registration has been declared effective and such Shelf
Registration ceases to be effective at any time prior to the second anniversary
of its effective date (other than such time as all Notes have been disposed of
thereunder) and is not declared effective again within 30 days, or (D) if the
board of directors of the Company determines in good faith that (i) the
disclosure of an event, occurrence or other item at that time would reasonably
be expected to have a material adverse effect on the business, operations, or
prospects of the Company and its subsidiaries or (ii) the disclosure otherwise
relates to a material business transaction or development relating to the
Company that has not yet been publicly disclosed and the board of directors
also determines, in good, faith, that any disclosure thereof would jeopardize
the success of the transaction or that disclosure of the transaction is
prohibited by the terms thereof, and the Company issues a written notice
pursuant to Section 6(e)(v) or (vi) that a Shelf Registration Statement or
Exchange Registration Statement is unusable and the aggregate number of days in
any 365-day period for which all such notices issued or required to be issued,
have been, or were required to be, in effect exceeds

 

 

	 	 	 	120 days in the aggregate or 30 days consecutively, in the case of a Shelf
Registration statement, or 15 days in the aggregate in the case of an
Exchange Registration Statement, then Liquidated Damages shall accrue on the
Notes, over and above any stated interest, at a rate of 0.25% per annum of
the principal amount of such Notes commencing on (w) the 31st Business Day
after the Effectiveness Date, in the case of (A) above, or (x) the date the
Exchange Registration Statement ceases to be effective without being
declared effective again within 30 days, in the case of clause (B) above, or
(y) the day such Shelf Registration ceases to be effective in the case of
(C) above, or (z) the day the Exchange Registration Statement or Shelf
Registration ceases to be usable in case of clause (D) above, such
Liquidated Damages rate increasing by an additional 0.25% per annum at the
beginning of each such subsequent 90-day period;

	 	 	 	provided, however, that the maximum Liquidated Damages rate on the Notes may not
exceed at any one time in the aggregate 1.00% per annum; and provided further, that
(1) upon the filing of the Exchange Registration Statement or Initial Shelf
Registration (in the case of (i) above), (2) upon the effectiveness of the Exchange
Registration Statement or Initial Shelf Registration (in the case of (ii) above), or
(3) upon the exchange of Exchange Notes for all Notes tendered (in the case of
(iii)(A) above), or upon the effectiveness of the Exchange Registration Statement
that had ceased to remain effective (in the case of clause (iii)(B) above), or upon
the effectiveness of a Shelf Registration which had ceased to remain effective (in
the case of (iii)(C) above), Liquidated Damages on the Notes as a result of such
clause (or the relevant subclause thereof) or upon the usability of such
Registration Statement or Exchange Registration Statement (in the case of clause
(iii)(D) above), as the case may be, shall cease to accrue.
	 
	 	(b)	 	The Company shall notify the Trustee within 3 Business Days after each and
every date on which an event occurs in respect of which Liquidated Damages is required
to be paid (an “Event Date”). Any amounts of Liquidated Damages due pursuant
to clause (a)(i), (a)(ii) or (a)(iii) of this Section 4 will be payable in cash, on the
dates and in the manner provided in the Indenture and whether or not any cash interest
would then be payable on such date, commencing with the first such semi-annual date
occurring after any such Liquidated Damages commences to accrue. The amount of
Liquidated Damages will be determined by multiplying the applicable Liquidated Damages
rate by the principal amount of the Notes, multiplied by a fraction, the numerator of
which is the number of days such Liquidated Damages rate was applicable during such
period (determined on the basis of a 360-day year comprised of twelve 30-day months
and, in the case of a partial month, the actual number of days elapsed), and the
denominator of which is 360.

	5.	 	[Reserved].

	6.	 	Registration Procedures

     In connection with the filing of any Registration Statement pursuant to Sections 2 or 3
hereof, the Company shall (and shall cause each Subsidiary Guarantor to) effect such registrations
to permit the sale of such securities covered thereby in accordance with the intended method or
methods of disposition thereof, and pursuant thereto and in connection with any Registration
Statement filed by the Company hereunder, the Company shall (and shall cause each Subsidiary
Guarantor to):

	 	(a)	 	Prepare and file with the SEC on or prior to the Filing Date, the Exchange
Registration Statement or if required by Section 2(j), a Shelf Registration as
prescribed by Section 3, and

 

 

	 	 	 	use all commercially reasonable efforts to cause each such Registration Statement to
become effective and remain effective as provided herein; provided that, if (1) a
Shelf Registration is filed pursuant to Section 3 or (2) a Prospectus contained in
an Exchange Registration Statement filed pursuant to Section 2 is required to be
delivered under the Securities Act by any Participating Broker-Dealer who seeks to
sell Exchange Notes during the Applicable Period relating thereto, before filing any
Registration Statement or Prospectus or any amendments or supplements thereto the
Company shall (and shall cause each Subsidiary Guarantor to), if requested, furnish
to and afford the Holders of the Registrable Notes to be registered pursuant to such
Shelf Registration Statement, each Participating Broker-Dealer, the managing
underwriters, if any, and each of their respective counsel, a reasonable opportunity
to review copies of all such documents (including copies of any documents to be
incorporated by reference therein and all exhibits thereto) proposed to be filed (in
each case at least 5 Business Days prior to such filing). The Company and each
Subsidiary Guarantor shall not file any such Registration Statement or Prospectus or
any amendments or supplements thereto in respect of which the Holders must provide
information for the inclusion therein without the Holders being afforded an
opportunity to review such documentation if the holders of a majority in aggregate
principal amount of the Registrable Notes covered by such Registration Statement, or
any such Participating Broker-Dealer, as the case may be, the managing underwriters,
if any, or any of their respective counsel shall reasonably object in writing on a
timely basis. A Holder shall be deemed to have reasonably objected to such filing if
such Registration Statement, amendment, Prospectus or supplement, as applicable, as
proposed to be filed, contains an untrue statement of a material fact or omits to
state any material fact necessary to make the statements therein not misleading or
fails to comply with the applicable requirements of the Securities Act.
	 
	 	(b)	 	Provide an indenture trustee for the Registrable Notes, the Exchange Notes or
the Private Exchange Notes, as the case may be, and cause the Indenture (or other
indenture relating to the Registrable Notes) to be qualified under the TIA not later
than the effective date of the first Registration Statement; and in connection
therewith, to effect such changes to such indenture as may be required for such
indenture to be so qualified in accordance with the terms of the TIA; and execute, and
use its commercially reasonable efforts to cause such trustee to execute, all documents
as may be required to effect such changes, and all other forms and documents required
to be filed with the SEC to enable such indenture to be so qualified in a timely
manner.
	 
	 	(c)	 	Prepare and file with the SEC such pre-effective amendments and post-effective
amendments to each Shelf Registration or Exchange Registration Statement, as the case
may be, as may be necessary to keep such Registration Statement continuously effective
for the Effectiveness Period or the Applicable Period, as the case may be; cause the
related Prospectus to be supplemented by any Prospectus supplement required by
applicable law, and as so supplemented to be filed pursuant to Rule 424 (or any similar
provisions then in force) promulgated under the Securities Act; and comply with the
provisions of the Securities Act and the Exchange Act applicable to them with respect
to the disposition of all securities covered by such Registration Statement as so
amended or in such Prospectus as so supplemented and with respect to the subsequent
resale of any securities being sold by a Participating Broker-Dealer covered by any
such Prospectus. The Company and each Subsidiary Guarantor shall not, during the
Applicable Period, voluntarily take any action that would result in selling Holders of
the Registrable Notes covered by a Registration Statement or Participating
Broker-Dealers seeking to sell Exchange Notes not being able to sell such Registrable
Notes or such Exchange Notes during that period, unless such action is required by
applicable law, rule or regulation or permitted by this Agreement.

 

 

	 	(d)	 	Furnish to such selling Holders and Participating Broker-Dealers who so
request in writing (i) upon the Company’s receipt, a copy of the order of the SEC
declaring such Registration Statement and any post effective amendment thereto
effective, (ii) such reasonable number of copies of such Registration Statement and of
each amendment and supplement thereto (in each case including any documents
incorporated therein by reference and all exhibits), (iii) such reasonable number of
copies of the Prospectus included in such Registration Statement (including each
preliminary Prospectus) and each amendment and supplement thereto, and such reasonable
number of copies of the final Prospectus as filed by the Company and each Subsidiary
Guarantor pursuant to Rule 424(b) under the Securities Act, in conformity with the
requirements of the Securities Act and each amendment and supplement thereto, and (iv)
such other documents (including any amendments required to be filed pursuant to clause
(c) of this Section), as any such Person may reasonably request in writing. The Company
and the Subsidiary Guarantors hereby consent to the use of the Prospectus by each of
the selling Holders of Registrable Notes or each such Participating Broker-Dealer, as
the case may be, and the underwriters or agents, if any, and dealers, if any, in
connection with the offering and sale of the Registrable Notes covered by, or the sale
by Participating Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and
any amendment or supplement thereto.
	 
	 	(e)	 	If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a
Prospectus contained in an Exchange Registration Statement filed pursuant to Section 2
is required to be delivered under the Securities Act by any Participating Broker-Dealer
who seeks to sell Exchange Notes during the Applicable Period relating thereto, the
Company shall notify in writing the selling Holders of Registrable Notes, or each such
Participating Broker-Dealer, as the case may be, the managing underwriters, if any, and
each of their respective counsel promptly (but in any event within 2 Business Days) (i)
when a Prospectus or any Prospectus supplement or post-effective amendment has been
filed, and, with respect to a Registration Statement or any post-effective amendment,
when the same has become effective (including in such notice a written statement that
any Holder may, upon request, obtain, without charge, one conformed copy of such
Registration Statement or post-effective amendment including financial statements and
schedules, documents incorporated or deemed to be incorporated by reference and
exhibits), (ii) of the issuance by the SEC of any stop order suspending the
effectiveness of a Registration Statement or of any order preventing or suspending the
use of any Prospectus or the initiation of any proceedings for that purpose, (iii) if
at any time when a Prospectus is required by the Securities Act to be delivered in
connection with sales of the Registrable Notes the representations and warranties of
the Company and any Subsidiary Guarantor contained in any agreement (including any
underwriting agreement) contemplated by Section 6(n) hereof cease to be true and
correct, (iv) of the receipt by the Company or any Subsidiary Guarantor of any
notification with respect to the suspension of the qualification or exemption from
qualification of a Registration Statement or any of the Registrable Notes or the
Exchange Notes to be sold by any Participating Broker-Dealer for offer or sale in any
jurisdiction, or the initiation or threatening of any proceeding for such purpose, (v)
of the happening of any event, the existence of any condition of any information
becoming known that makes any statement made in such Registration Statement or related
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires the making of any changes in,
or amendments or supplements to, such Registration Statement, Prospectus or documents
so that, in the case of the Registration Statement and the Prospectus, it will not
contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, (vi) of any reasonable
determination by the Company or any Subsidiary Guarantor that a post-effective

 

 

	 	 	 	amendment to a Registration Statement would be appropriate and (vii) of any request
by the SEC for amendments to the Registration Statement or supplements to the
Prospectus or for additional information relating thereto.
	 
	 	(f)	 	Use its commercially reasonable efforts to prevent the issuance of any order
suspending the effectiveness of a Registration Statement or of any order preventing or
suspending the use of a Prospectus or suspending the qualification (or exemption from
qualification) of any of the Registrable Notes or the Exchange Notes to be sold by any
Participating Broker-Dealer, for sale in any jurisdiction, and, if any such order is
issued, to use its commercially reasonable efforts to obtain the withdrawal of any such
order at the earliest possible date.
	 
	 	(g)	 	If (A) a Shelf Registration is filed pursuant to Section 3, (B) a Prospectus
contained in an Exchange Registration Statement filed pursuant to Section 2 is required
to be delivered under the Securities Act by any Participating Broker-Dealer who seeks
to sell Exchange Notes during the Applicable Period or (C) reasonably requested in
writing by the managing underwriters, if any, or the Holders of a majority in aggregate
principal amount of the Registrable Notes being sold in connection with an underwritten
offering, (i) promptly incorporate in a Prospectus supplement or post-effective
amendment such information or revisions to information therein relating to such
underwriters or selling Holders as the managing underwriters, if any, or such Holders
or any of their respective counsel reasonably request in writing to be included or made
therein and (ii) make all required filings of such Prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received
notification of the matters to be incorporated in such Prospectus supplements or
post-effective amendment.
	 
	 	(h)	 	Prior to any public offering of Registrable Notes or any delivery of a
Prospectus contained in the Exchange Registration Statement by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use its
commercially reasonable efforts to register or qualify, and to cooperate with the
selling Holders of Registrable Notes or each such Participating Broker-Dealer, as the
case may be, the underwriters, if any, and their respective counsel in connection with
the registration or qualification (or exemption from such registration or
qualification) of such Registrable Notes or Exchange Notes, as the case may be, for
offer and sale under the securities or Blue Sky laws of such jurisdictions within the
United States as any selling Holder, Participating Broker-Dealer or any managing
underwriter or underwriters, if any, reasonably request in writing; provided that where
Exchange Notes held by Participating Broker-Dealers or Registrable Notes are offered
other than through an underwritten offering, the Company and each Subsidiary Guarantor
agree to cause its counsel to perform Blue Sky investigations and file any
registrations and qualifications required to be filed pursuant to this Section 6(h),
keep each such registration or qualification (or exemption therefrom) effective during
the period such Registration Statement is required to be kept effective and do any and
all other acts or things reasonably necessary or advisable to enable the disposition in
such jurisdictions of the Exchange Notes held by Participating Broker-Dealers or the
Registrable Notes covered by the applicable Registration Statement; provided that
neither the Company nor any Subsidiary Guarantor shall be required to (A) qualify
generally to do business in any jurisdiction where it is not then so qualified, (B)
take any action that would subject it to general service of process in any such
jurisdiction where it is not then so subject or (C) subject itself to taxation in any
such jurisdiction where it is not then so subject.
	 
	 	(i)	 	If (A) a Shelf Registration is filed pursuant to Section 3 or (B) a Prospectus
contained in an Exchange Registration Statement filed pursuant to Section 2 is
requested to be delivered

 

 

	 	 	 	under the Securities Act by any Participating Broker-Dealer who seeks to sell
Exchange Notes during the Applicable Period, cooperate with the selling Holders of
Registrable Notes and the managing underwriter or underwriters, if any, to
facilitate the timely preparation and delivery of certificates representing
Registrable Notes to be sold, which certificates shall not bear any restrictive
legends and shall be in a form eligible for deposit with The Depository Trust
Company, and enable such Registrable Notes to be in such denominations and
registered in such names as the managing underwriter or underwriters, if any, or
Holders may reasonably request.
	 
	 	(j)	 	Use its commercially reasonable efforts to cause the Registrable Notes covered
by any Registration Statement to be registered with or approved by such governmental
agencies or authorities as may be necessary to enable the seller or sellers thereof or
the underwriter, if any, to consummate the disposition of such Registrable Notes,
except as may be required solely as a consequence of the nature of such selling
Holder’s business, in which case the Company shall (and shall cause each Subsidiary
Guarantor to) cooperate in all reasonable respects with the filing of such Registration
Statement and the granting of such approvals; provided that neither the Company
nor any existing Subsidiary Guarantor shall be required to (A) qualify generally to do
business in any jurisdiction where it is not then so qualified, (B) take any action
that would subject it to general service of process in any jurisdiction where it is not
then so subject or (C) subject itself to taxation in any such jurisdiction where it is
not then so subject.
	 
	 	(k)	 	If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a
Prospectus contained in an Exchange Registration Statement filed pursuant to Section 2
is required to be delivered under the Securities Act by any Participating Broker-Dealer
who seeks to sell Exchange Notes during the Applicable Period, upon the occurrence of
any event contemplated by paragraph 6(e)(v) or 6(e)(vi) hereof, as promptly as
practicable, prepare and file with the SEC, at the expense of the Company and the
Subsidiary Guarantors, a supplement or post-effective amendment to the Registration
Statement or a supplement to the related Prospectus or any document incorporated or
deemed to be incorporated therein by reference, or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Notes being sold
thereunder or to the purchasers of the Exchange Notes to whom such Prospectus will be
delivered by a Participating Broker-Dealer, such Prospectus will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and, if SEC review is required, use its
best efforts to cause such post-effective amendment to be declared effective as soon as
possible.
	 
	 	(l)	 	Prior to the initial issuance of the Exchange Notes, (i) provide the Trustee
with one or more certificates for the Registrable Notes in a form eligible for deposit
with The Depository Trust Company and (ii) provide a CUSIP number for the Exchange
Notes.
	 
	 	(m)	 	If a Shelf Registration is filed pursuant to Section 3, enter into such
agreements (including an underwriting agreement in form, scope and substance as is
customary in underwritten offerings of debt securities similar to the Notes, as may be
appropriate in the circumstances) and take all such other actions in connection
therewith (including those reasonably requested in writing by the managing
underwriters, if any, or the Holders of a majority in aggregate principal amount of the
Registrable Notes being sold) in order to expedite or facilitate the registration or
the disposition of such Registrable Notes, and in such connection, whether or not an
underwriting agreement is entered into and whether or not the registration is an

 

 

	 	 	 	Underwritten Registration, (i) make such representations and warranties to the
Holders and the underwriters, if any, with respect to the business of the Company
and its subsidiaries as then conducted, and the Registration Statement, Prospectus
and documents, if any, incorporated or deemed to be incorporated by reference
therein, in each case, in form, substance and scope as are customarily made by
issuers to underwriters in underwritten offerings of debt securities similar to the
Notes, as may be appropriate in the circumstances, and confirm the same if and when
reasonably required; (ii) obtain an opinion of counsel to the Company and the
Subsidiary Guarantors and updates thereof (which counsel and opinions (in form,
scope and substance) shall be reasonably satisfactory to the managing underwriters,
if any, and the Holders of a majority in aggregate principal amount of the
Registrable Notes being sold), addressed to each selling Holder and each of the
underwriters, if any, covering the matters customarily covered in opinions of
counsel to the Company and the Subsidiary Guarantors requested in underwritten
offerings of debt securities similar to the Notes, as may be appropriate in the
circumstances; (iii) obtain “cold comfort” letters and updates thereof (which
letters and updates (in form, scope and substance) shall be reasonably satisfactory
to the managing underwriters) from the independent certified public accountants of
the Company and the Subsidiary Guarantors (and, if necessary, any other independent
certified public accountants of any subsidiary of the Company or of any business
acquired by the Company for which financial statements and financial data are, or
are required to be, included in the Registration Statement), addressed to each of
the underwriters, such letters to be in customary form and covering matters of the
type customarily covered in “cold comfort” letters in connection with underwritten
offerings of debt securities similar to the Notes, as may be appropriate in the
circumstances, and such other matters as reasonably requested in writing by the
underwriters; and (iv) deliver such documents and certificates as may be reasonably
requested in writing by the Holders of a majority in aggregate principal amount of
the Registrable Notes being sold and the managing underwriters, if any, to evidence
the continued validity of the representations and warranties of the Company and its
subsidiaries made pursuant to clause (i) above and to evidence compliance with any
conditions contained in the underwriting agreement or other similar agreement
entered into by the Company or any Subsidiary Guarantor.
	 
	 	(n)	 	If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a
Prospectus contained in an Exchange Registration Statement filed pursuant to Section 2
is required to be delivered under the Securities Act by any Participating Broker-Dealer
who seeks to sell Exchange Notes during the Applicable Period, make available for
inspection by any selling Holder of such Registrable Notes being sold, or each such
Participating Broker-Dealer, as the case may be, any underwriter participating in any
such disposition of Registrable Notes, if any, and any attorney, accountant or other
agent retained by any such selling Holder or each such Participating Broker-Dealer, as
the case may be, or underwriter (collectively, the “Inspectors”), at the
offices where normally kept, during reasonable business hours, all financial and other
records and pertinent corporate documents of the Company and its subsidiaries
(collectively, the “Records”) as shall be reasonably necessary to enable them
to exercise any applicable due diligence responsibilities, and cause the officers,
directors and employees of the Company and its subsidiaries to supply all information
reasonably requested in writing by any such Inspector in connection with such
Registration Statement. Each Inspector shall agree in writing that it will keep the
Records confidential and not disclose any of the Records unless (i) the disclosure of
such Records is necessary to avoid or correct a misstatement or omission in such
Registration Statement, (ii) the release of such Records is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction, (iii) the information
in such Records is public or has been made generally available to the public other than
as a result of a disclosure or failure to safeguard by such Inspector or (iv)
disclosure of such information is, in the reasonable written opinion of

 

 

	 	 	 	counsel for any Inspector, necessary or advisable in connection with any action,
claim, suit or proceeding, directly or indirectly, involving or potentially
involving such Inspector and arising out of, based upon, related to, or involving
this Agreement, or any transaction contemplated hereby or arising hereunder. Each
selling Holder of such Registrable Notes and each such Participating Broker-Dealer
will be required to agree that information obtained by it as a result of such
inspections shall be deemed confidential and shall not be used by it as the basis
for any market transactions in the securities of the Company unless and until such
is made generally available to the public. Each Inspector, each selling Holder of
such Registrable Notes and each such Participating Broker-Dealer will be required to
further agree that it will, upon learning that disclosure of such Records is sought
in a court of competent jurisdiction, give notice to the Company and, to the extent
practicable, use its best efforts to allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of the Records deemed confidential at its
expense.
	 
	 	(o)	 	Comply with all applicable rules and regulations of the SEC and make generally
available to the security holders of the Company with regard to any Applicable
Registration Statement earning statements satisfying the provisions of section 11(a) of
the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the
Securities Act) no later than 45 days after the end of any 12-month period (or 90 days
after the end of any 12-month period if such period is a fiscal year) (i) commencing at
the end of any fiscal quarter in which Registrable Notes are sold to underwriters in a
firm commitment or best efforts underwritten offering and (ii) if not sold to
underwriters in such an offering, commencing on the first day of the first fiscal
quarter of the Company after the effective date of a Registration Statement, which
statements shall cover said 12-month periods.
	 
	 	(p)	 	Upon consummation of an Exchange Offer or Private Exchange, obtain an opinion
of counsel to the Company and the Subsidiary Guarantors (in form, scope and substance
reasonably satisfactory to the Initial Purchaser), addressed to the Trustee for the
benefit of all Holders participating in the Exchange Offer or Private Exchange, as the
case may be, to the effect that (i) the Company and the Subsidiary Guarantors have duly
authorized, executed and delivered the Exchange Notes or the Private Exchange Notes, as
the case may be, and the Indenture and (ii) the Exchange Notes or the Private Exchange
Notes, as the case may be, and the Indenture constitute legal, valid and binding
obligations of the Company and the Subsidiary Guarantors, enforceable against the
Company and the Subsidiary Guarantors in accordance with their respective terms, except
as such enforcement may be subject to customary United States and foreign exceptions.
	 
	 	(q)	 	If the Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Registrable Notes by the Holders to the Company and the Subsidiary
Guarantors (or to such other Person as directed by the Company and the Subsidiary
Guarantors) in exchange for the Exchange Notes or the Private Exchange Notes, as the
case may be, the Company and the Subsidiary Guarantors shall mark, or caused to be
marked, on such Registrable Notes that the Exchange Notes or the Private Exchange
Notes, as the case may be, are being issued as substitute evidence of the indebtedness
originally evidenced by the Registrable Notes; provided that in no event shall such
Registrable Notes be marked as paid or otherwise satisfied.
	 
	 	(r)	 	Cooperate with each seller of Registrable Notes covered by any Registration
Statement and each underwriter, if any, participating in the disposition of such
Registrable Notes and their respective counsel in connection with any filings required
to be made with FINRA.

 

 

	 	(s)	 	Use its commercially reasonable efforts to cause all Securities covered by a
Registration Statement to be listed on each securities exchange, if any, on which
similar debt securities issued by the Company are then listed.
	 
	 	(t)	 	Use its commercially reasonable efforts to take all other steps reasonably
necessary to effect the registration of the Registrable Notes covered by a Registration
Statement contemplated hereby.
	 
	 	(u)	 	The Company may require each seller of Registrable Notes or Participating
Broker-Dealer as to which any registration is being effected to furnish to the Company
such information regarding such seller or Participating Broker-Dealer and the
distribution of such Registrable Notes as the Company may, from time to time,
reasonably request in writing. The Company may exclude from such registration the
Registrable Notes of any seller who fails to furnish such information within a
reasonable time (which time in no event shall exceed 30 days, subject to Section 3(d))
hereof) after receiving such request. Each seller of Registrable Notes or
Participating Broker-Dealer as to which any registration is being effected agrees to
furnish promptly to the Company all information required to be disclosed in order to
make the information previously furnished by such seller not materially misleading.
	 
	 	(v)	 	Each Holder of Registrable Notes and each Participating Broker-Dealer agrees
by acquisition of such Registrable Notes or Exchange Notes to be sold by such
Participating Broker-Dealer, as the case may be, that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 6(e)(ii),
6(e)(iv), 6(e)(v), or 6(e)(vi), such Holder will forthwith discontinue disposition of
such Registrable Notes covered by a Registration Statement and such Participating
Broker-Dealer will forthwith discontinue disposition of such Exchange Notes pursuant to
any Prospectus and, in each case, forthwith discontinue dissemination of such
Prospectus until such Holder’s or Participating Broker-Dealer’s receipt of the copies
of the supplemented or amended Prospectus contemplated by Section 6(k), or until it is
advised in writing (the “Advice”) by the Company and the Subsidiary Guarantors
that the use of the applicable Prospectus may be resumed, and has received copies of
any amendments or supplements thereto and, if so directed by the Company and the
Subsidiary Guarantors, such Holder or Participating Broker-Dealer, as the case may be,
will deliver to the Company all copies, other than permanent file copies, then in such
Holder’s or Participating Broker-Dealer’s possession, of the Prospectus covering such
Registrable Notes current at the time of the receipt of such notice. In the event the
Company and the Subsidiary Guarantors shall give any such notice, the Applicable Period
shall be extended by the number of days during such periods from and including the date
of the giving of such notice to and including the date when each Participating
Broker-Dealer shall have received (x) the copies of the supplemented or amended
Prospectus contemplated by Section 6(k) or (y) the Advice.

	7.	 	Registration Expenses

	 	(a)	 	All fees and expenses incident to the performance of or compliance with this
Agreement by the Company and the Subsidiary Guarantors shall be borne by the Company
and the Subsidiary Guarantors, whether or not the Exchange Offer or a Shelf
Registration is filed or becomes effective, including, without limitation, (i) all
registration and filing fees, including, without limitation, (A) fees with respect to
filings required to be made with FINRA in connection with any underwritten offering and
(B) fees and expenses of compliance with state securities or Blue Sky laws as provided
in Section 6(h) hereof (including, without limitation, reasonable fees and
disbursements of counsel in connection with Blue Sky

 

 

	 	 	 	qualifications of the Registrable Notes or Exchange Notes and determination of the
eligibility of the Registrable Notes or Exchange Notes for investment under the laws
of such jurisdictions (x) where the Holders are located, in the case of the Exchange
Notes, or (y) as provided in Section 6(h), in the case of Registrable Notes or
Exchange Notes to be sold by a Participating Broker-Dealer during the Applicable
Period)), (ii) printing expenses, including, without limitation, expenses of
printing Prospectuses if the printing of Prospectuses is requested by the managing
underwriter or underwriters, if any, or by the Holders of a majority in aggregate
principal amount of the Registrable Notes included in any Registration Statement or
by any Participating Broker-Dealer during the Applicable Period, as the case may be,
(iii) messenger, telephone and delivery expenses incurred in connection with the
performance of their obligations hereunder, (iv) fees and disbursements of counsel
for the Company, the Subsidiary Guarantors and, subject to 7(b), the Holders, (v)
fees and disbursements of all independent certified public accountants referred to
in Section 6 (including, without limitation, the expenses of any special audit and
“cold comfort” letters required by or incident to such performance), (vi) rating
agency fees and the fees and expenses incurred in connection with the listing of the
Securities to be registered on any securities exchange, (vii) Securities Act
liability insurance, if the Company and the Subsidiary Guarantors desire such
insurance, (viii) fees and expenses of all other Persons retained by the Company and
the Subsidiary Guarantors, (ix) fees and expenses of any “qualified independent
underwriter” or other independent appraiser participating in an offering pursuant to
Section 3 of Schedule E to the By-laws of FINRA, but only where the need for such a
“qualified independent underwriter” arises due to a relationship with the Company
and the Subsidiary Guarantors, (x) internal expenses of the Company and the
Subsidiary Guarantors (including, without limitation, all salaries and expenses of
officers and employees of the Company or the Subsidiary Guarantors performing legal
or accounting duties), (xi) the expense of any annual audit, (xii) the fees and
expenses of the Trustee and the Exchange Agent and (xiii) the expenses relating to
printing, word processing and distributing all Registration Statements, underwriting
agreements, securities sales agreements, indentures and any other documents
necessary in order to comply with this Agreement.
	 
	 	(b)	 	The Company and the Subsidiary Guarantors shall reimburse the Holders for the
reasonable fees and disbursements of not more than one counsel chosen by the Holders of
a majority in aggregate principal amount of the Registrable Notes to be included in any
Registration Statement. The Company and the Subsidiary Guarantors shall pay all
documentary, stamp, transfer or other transactional taxes attributable to the issuance
or delivery of the Exchange Notes or Private Exchange Notes in exchange for the Notes;
provided that the Company shall not be required to pay taxes payable in respect of any
transfer involved in the issuance or delivery of any Exchange Note or Private Exchange
Note in a name other than that of the Holder of the Note in respect of which such
Exchange Note or Private Exchange Note is being issued. The Company and the Subsidiary
Guarantors shall reimburse the Holders for fees and expenses (including reasonable fees
and expenses of counsel to the Holders) relating to any enforcement of any rights of
the Holders under this Agreement.

	8.	 	Indemnification

	 	(a)	 	Indemnification by the Company and the Subsidiary Guarantors. The
Company and the Subsidiary Guarantors jointly and severally agree to indemnify and hold
harmless each Holder of Registrable Notes, Exchange Notes or Private Exchange Notes and
each Participating Broker-Dealer selling Exchange Notes during the Applicable Period,
each Person, if any, who controls each such Holder (within the meaning of Section 15 of
the Securities Act or Section 20(a) of the Exchange Act) and the officers, directors
and partners of each such Holder, Participating Broker-Dealer and controlling person,
to the fullest

 

 

	 	 	 	extent lawful, from and against any and all losses, claims, damages, liabilities,
costs (including, without limitation, reasonable costs of preparation and reasonable
attorneys’ fees as provided in this Section 8) and expenses (including, without
limitation, reasonable costs and expenses incurred in connection with investigating,
preparing, pursuing or defending against any of the foregoing) (collectively,
“Losses”), as incurred, directly or indirectly caused by, related to, based
upon, arising out of or in connection with any untrue or alleged untrue statement of
a material fact contained in any Registration Statement, Prospectus or form of
prospectus, or in any amendment or supplement thereto, or in any preliminary
prospectus, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading, except insofar as
such Losses are solely based upon information relating to such Holder or
Participating Broker-Dealer and furnished in writing to the Company and the
Subsidiary Guarantors (or reviewed and approved in writing) by such Holder or
Participating Broker-Dealer or their counsel expressly for use therein; provided,
however, that the Company and the Subsidiary Guarantors will not be liable to any
Indemnified Party (as defined below) under this Section 8 to the extent Losses were
solely caused by an untrue statement or omission or alleged untrue statement or
omission that was contained or made in any preliminary prospectus and corrected in
the Prospectus or any amendment or supplement thereto if (i) the Prospectus does not
contain any other untrue statement or omission or alleged untrue statement or
omission of a material fact that was the subject matter of the related proceeding,
(ii) any such Losses resulted from an action, claim or suit by any Person who
purchased Registrable Notes or Exchange Notes which are the subject thereof from
such Indemnified Party and (iii) it is established in the related proceeding that
such Indemnified Party failed to deliver or provide a copy of the Prospectus (as
amended or supplemented) to such Person with or prior to the confirmation of the
sale of such Registrable Notes or Exchange Notes sold to such Person if required by
applicable law, unless such failure to deliver or provide a copy of the Prospectus
(as amended or supplemented) was a result of noncompliance by the Company with
Section 6 of this Agreement. The Company and the Subsidiary Guarantors also agree
to indemnify underwriters, selling brokers, dealer managers and similar securities
industry professionals participating in the distribution, their officers, directors,
agents and employees and each Person who controls such Persons (within the meaning
of Section 5 of the Securities Act or Section 20(a) of the Exchange Act), if any.
	 
	 	(b)	 	Indemnification by Holder. In connection with any Registration
Statement, Prospectus or form of prospectus, any amendment or supplement thereto, or
any preliminary prospectus in which a Holder is participating, such Holder shall
furnish to the Company and the Subsidiary Guarantors in writing such information as the
Company and the Subsidiary Guarantors reasonably request for use in connection with any
Registration Statement, Prospectus or form of prospectus, any amendment or supplement
thereto, or any preliminary prospectus and shall indemnify and hold harmless the
Company, the Subsidiary Guarantors, their respective directors and each Person, if any,
who controls the Company and the Subsidiary Guarantors (within the meaning of Section
15 of the Securities Act and Section 20(a) of the Exchange Act), and the directors,
officers and partners of such controlling persons, to the fullest extent lawful, from
and against all Losses arising out of or based upon any untrue or alleged untrue
statement of a material fact contained in any Registration Statement, Prospectus or
form of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading to the extent, but only
to the extent, that such losses are finally judicially determined by a court of
competent jurisdiction in a final, unappealable order to have resulted solely from an
untrue

 

 

	 	 	 	statement or alleged untrue statement of a material fact or omission or alleged
omission of a material fact contained in or omitted from any information so
furnished in writing by such Holder to the Company and the Subsidiary Guarantors
expressly for use therein. Notwithstanding the foregoing, in no event shall the
liability of any selling Holder be greater in amount than such Holder’s Maximum
Contribution Amount (as defined below).
	 
	 	(c)	 	Conduct of Indemnification Proceedings. If any proceeding shall be
brought or asserted against any Person entitled to indemnity hereunder (an
“Indemnified Party”), such Indemnified Party shall promptly notify the party or
parties from which such indemnity is sought (the “Indemnifying Party” or
“Indemnifying Parties”, as applicable) in writing; provided, provided, that the
failure to so notify the Indemnifying Parties shall not (i) relieve such Indemnifying
Party from any obligation or liability unless and only to the extent it is materially
prejudiced as a result thereof and (ii) will not, in any event, relieve the
Indemnifying Party from any obligations to any Indemnified Party other than the
indemnification obligation provided in paragraphs (a) and (b) above.

     The Indemnifying Party shall have the right, exercisable by giving written notice to an
Indemnified Party, within 20 Business Days after receipt of written notice from such Indemnified
Party of such proceeding, to assume, at its expense, the defense of any such proceeding, provided,
that an Indemnified Party shall have the right to employ separate counsel in any such proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party or parties unless: (1) the Indemnifying Party has agreed to
pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the
defense of such proceeding or shall have failed to employ counsel reasonably satisfactory to such
Indemnified Party; or (3) the named parties to any such proceeding (including any impleaded
parties) include both such Indemnified Party and the Indemnifying Party or any of its affiliates or
controlling persons, and such Indemnified Party shall have been advised by counsel that there may
be one or more defenses available to such Indemnified Party that are in addition to, or in conflict
with, those defenses available to the Indemnifying Party or such affiliate or controlling person
(in which case, if such Indemnified Party notifies the Indemnifying Parties in writing that it
elects to employ separate counsel at the expense of the Indemnifying Parties, the Indemnifying
Parties shall not have the right to assume the defense and the reasonable fees and expenses of such
counsel shall be at the expense of the Indemnifying Party; it being understood, however, that, the
Indemnifying Party shall not, in connection with any one such proceeding or separate but
substantially similar or related proceedings in the same jurisdiction, arising out of the same
general allegations or circumstances, be liable for the fees and expenses of more than one separate
firm of attorneys (together with appropriate local counsel) at any time for such Indemnified
Party).

     No Indemnifying Party shall be liable for any settlement of any such proceeding effected
without its written consent, but if settled with its written consent, or if there be a final
judgment for the plaintiff in any such proceeding, each Indemnifying Party jointly and severally
agrees, subject to the exceptions and limitations set forth above, to indemnify and hold harmless
each Indemnified Party from and against any and all Losses by reason of such settlement or
judgment. The Indemnifying Party shall not consent to the entry of any judgment or enter into any
settlement unless such judgment or settlement (i) includes as an unconditional term thereof the
giving by the claimant or plaintiff to each Indemnified Party of a release, in form and substance
reasonably satisfactory to the Indemnified Party, from all liability in respect of such proceeding
for which such Indemnified Party would be entitled to indemnification hereunder (whether or not any
Indemnified Party is a party thereto) and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any Indemnified Party.

	 	(d)	 	Contribution. If the indemnification provided for in this Section 8
is unavailable to an Indemnified Party or is insufficient to hold such Indemnified
Party harmless for any Losses in respect of which this Section 8 would otherwise apply
by its terms (other than by reason of exceptions provided in this Section 8), then each
applicable Indemnifying Party, in lieu of

 

 

	 	 	 	indemnifying such Indemnified Party, shall have a joint and several obligation to
contribute to the amount paid or payable by such Indemnified Party as a result of
such Losses, in such proportion as is appropriate to reflect the relative fault of
the Indemnifying Party, on the one hand, and such Indemnified Party, on the other
hand, in connection with the actions, statements or omissions that resulted in such
Losses as well as any other relevant equitable considerations. The relative fault of
such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand,
shall be determined by reference to, among other things, whether any untrue or
alleged untrue statement of a material fact or omission or alleged omission to state
a material fact relates to information supplied by such Indemnifying Party or
Indemnified Party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent any such statement or omission.
The amount paid or payable by an Indemnified Party as a result of any Losses shall
be deemed to include any legal or other fees or expenses incurred by such party in
connection with any proceeding, to the extent such party would have been indemnified
for such fees or expenses if the indemnification provided for in Section 8(a) or
8(b) was available to such party.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 8(d) were determined by pro rata allocation or by other method of allocation that does
not take account of the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this Section 8(d), a selling Holder shall not be
required to contribute, in the aggregate, any amount in excess of such Holder’s Maximum
Contribution Amount. A selling Holder’s “Maximum Contribution Amount” shall equal the
excess of (i) the aggregate proceeds received by such Holder pursuant to the sale of such
Registrable Notes or Exchange Notes over (ii) the aggregate amount of damages that such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this
Section 8(d) are several in proportion to the respective principal amount of the Registrable
Securities held by each Holder hereunder and not joint. The Company’s and Subsidiary Guarantors’
obligations to contribute pursuant to this Section 8(d) are joint and several.

     The indemnity and contribution agreements contained in this Section 8 are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties.

	9.	 	Rules 144 and 144A

     The Company covenants that it shall comply with Section 4.03 of the Indenture to permit sales
pursuant to Rule 144 and 144A and to take such further action as any Holder may reasonably request
in writing, all to the extent required from time to time to enable such Holder to sell Registrable
Notes without registration under the Securities Act pursuant to the exemptions provided by Rule 144
and Rule 144A.

	10.	 	Underwritten Registrations of Registrable Notes

     If any of the Registrable Notes covered by any Shelf Registration is to be sold in an
underwritten offering, the investment banker or investment bankers and manager or managers that
will manage the offering will be selected by the Holders of a majority in aggregate principal
amount of such Registrable Notes included in such offering; provided, however, that such investment
banker or investment bankers and manager or managers must be reasonably acceptable to the Company.

     No Holder of Registrable Notes may participate in any underwritten registration hereunder
unless such Holder (a) agrees to sell such Holder’s Registrable Notes on the basis
provided in any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements and (b) completes

 

 

and executes all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents required under the terms of such underwriting arrangements.

	11.	 	Miscellaneous

	 	(a)	 	Remedies. In the event of a breach by either the Company or any of the
Subsidiary Guarantors of any of their respective obligations under this Agreement, each
Holder, in addition to being entitled to exercise all rights provided herein, in the
Indenture or, in the case of the Initial Purchaser, in the Purchase Agreement, or
granted by law, including recovery of damages, will be entitled to specific performance
of its rights under this Agreement. The Company and the Subsidiary Guarantors agree
that monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by either the Company or any of the Subsidiary Guarantors of any of
the provisions of this Agreement and hereby further agree that, in the event of any
action for specific performance in respect of such breach, the Company shall (and shall
cause each Subsidiary Guarantor to) waive the defense that a remedy at law would be
adequate.
	 
	 	(b)	 	No Inconsistent Agreements. The Company and each of the Subsidiary
Guarantors have not entered, as of the date hereof, and the Company and each of the
Subsidiary Guarantors shall not enter, after the date of this Agreement, into any
agreement with respect to any of its securities that is inconsistent with the rights
granted to the Holders of Securities in this Agreement or otherwise conflicts with the
provisions hereof. The Company and each of the Subsidiary Guarantors have not entered
and will not enter into any agreement with respect to any of its securities that will
grant to any Person piggy-back rights with respect to a Registration Statement.
	 
	 	(c)	 	Adjustments Affecting Registrable Notes. The Company shall not,
directly or indirectly, take any action with respect to the Registrable Notes as a
class that would adversely affect the ability of the Holders to include such
Registrable Notes in a registration undertaken pursuant to this Agreement.
	 
	 	(d)	 	Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, otherwise than with the prior written consent of
the Holders of not less than a majority in aggregate principal amount of the then
outstanding Registrable Notes in circumstances that would adversely affect any Holders
of Registrable Notes; provided, however, that Section 8 and this Section 11(d) may not
be amended, modified or supplemented without the prior written consent of each Holder.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof
with respect to a matter that relates exclusively to the rights of Holders of
Registrable Notes whose securities are being tendered pursuant to the Exchange Offer or
sold pursuant to a Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders of Registrable Notes
may be given by Holders of at least a majority in aggregate principal amount of the
Registrable Notes being tendered or being sold by such Holders pursuant to such
Registration Statement.
	 
	 	(e)	 	Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered first-class
mail, next-day air courier or telecopier:

 

 

	 	(i)	 	if to a Holder of Securities or to any Participating Broker-Dealer, at
the most current address of such Holder or Participating Broker-Dealer, as the
case may be, set forth on the records of the registrar of the Notes, with a
copy in like manner to the Initial Purchaser as follows:

Jefferies & Company, Inc.

520 Madison Avenue

New York, New York 10022

Facsimile No.: (212) 284-2280

Attention: General Counsel

	 	 	 	with a copy to:

Proskauer Rose LLP

1585 Broadway

New York, New York 10036

Facsimile No.: (212) 969-2900

Attention: Ian Blumenstein, Esq.

	 	(ii)	 	if to the Initial Purchaser, at the address specified in Section
11(e)(i);
	 
	 	(iii)	 	if to the Company or any Subsidiary Guarantor, as follows:

BioScrip, Inc.

100 Clearbrook Road

Elmsford, New York 10523

Attention: Barry Posner, Esq.

	 	 	 	with a copy to:

King & Spalding LLP

1185 Avenue of the Americas

New York, NY 10036

Attention: E. William Bates, II., Esq.

     All such notices and communications shall be deemed to have been duly given: when delivered
by hand, if personally delivered; five business days after being deposited in the United States
mail, postage prepaid, if mailed; one business day after being timely delivered to a next-day air
courier guaranteeing overnight delivery; and when receipt is acknowledged by the addressee, if
telecopied.

     Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee under the Indenture at the address specified in such
Indenture.

	 	(f)	 	Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties hereto,
including, without limitation and without the need for an express assignment,
subsequent Holders of Securities.
	 
	 	(g)	 	Counterparts. This Agreement may be executed in any number of
counterparts and by the 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 the same agreement.

 

 

	 	(h)	 	Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.
	 
	 	(i)	 	Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAW. THE COMPANY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW
YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY
FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND
IRREVOCABLY ACCEPTS FOR ITS AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. THE COMPANY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. THE COMPANY IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO
SO UNDER APPLICABLE LAW, TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS
IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY AT ITS SAID ADDRESS, SUCH SERVICE TO
BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF
ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY IN ANY OTHER JURISDICTION.
	 
	 	(j)	 	Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their best efforts to find
and employ an alternative means to achieve the same or substantially the same result as
that contemplated by such term, provision, covenant or restriction. It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without including
any of such that may be hereafter declared invalid, illegal, void or unenforceable.
	 
	 	(k)	 	Securities Held by the Company or Its Affiliates. Whenever the
consent or approval of Holders of a specified percentage of Securities is required
hereunder, Securities held by the Company or its affiliates (as such term is defined in
Rule 405 under the Securities Act) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.
	 
	 	(l)	 	Third Party Beneficiaries. Holders and Participating Broker-Dealers
are intended third party beneficiaries of this Agreement and this Agreement may be
enforced by such Persons.

 

 

	 	(m)	 	Entire Agreement. This Agreement, together with the Purchase
Agreement and the Indenture, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein and therein and any and all prior oral or written
agreements, representations, or warranties, contracts, understanding, correspondence,
conversations and memoranda between the Initial Purchaser on the one hand and the
Company and the Subsidiary Guarantors on the other, or between or among any agents,
representatives, parents, subsidiaries, affiliates, predecessors in interest or
successors in interest with respect to the subject matter hereof and thereof are merged
herein and replaced hereby.

 

 

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

	 	 	 	 	 
	 	BIOSCRIP, INC.

 	 
	 	By:  	/s/
Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General
Counsel	 
	 
	 	SUBSIDIARY GUARANTORS

BIOSCRIP, INC.

BIOSCRIP INFUSION SERVICES, INC.

 	 
	 	By:  	/s/
Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General
Counsel	 
	 
	 	CHRONIMED, LLC.

 	 
	 	By:  	/s/
Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General
Counsel	 
	 
	 	BIOSCRIP PHARMACY (NY), INC.

 	 
	 	By:  	/s/
Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General
Counsel	 
	 
	 	BIOSCRIP PBM SERVICES, LLC

 	 
	 	By:  	/s/
Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General
Counsel	 
	 

Registration Rights Agreement

30

 

	 	 	 	 	 
	 	BIOSCRIP PHARMACY SERVICES, INC.

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary

and General Counsel 
	 
	 	BIOSCRIP PHARMACY, INC.

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary

and General Counsel 
	 
	 	BRADHURST SPECIALTY PHARMACY, INC.

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary

and General Counsel 
	 
	 	NATURAL LIVING, INC. (d/b/a BioScrip Pharmacy)

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary

and General Counsel 
	 
	 	BIOSCRIP INFUSION SERVICES, LLC

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary

and General Counsel 
	 
	 	BIOSCRIP NURSING SERVICES, LLC (d/b/a American

Disease Management Associates)

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary

and General Counsel 
	 

Registration Rights Agreement

31

 

	 	 	 	 	 
	 	BIOSCRIP INFUSION MANAGEMENT, LLC

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	LOS FELIZ DRUGS INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	CHS HOLDINGS, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	CRITICAL HOMECARE SOLUTIONS, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	SPECIALTY PHARMA, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	NEW ENGLAND HOME THERAPIES, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	DEACONESS ENTERPRISES, LLC

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 

Registration Rights Agreement

32

 

	 	 	 	 	 
	 	INFUSION SOLUTIONS, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	PROFESSIONAL HOME CARE SERVICES, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	WILCOX MEDICAL, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	DEACONESS HOMECARE, LLC

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	SOUTH MISSISSIPPI HOME HEALTH, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	REGIONAL AMBULATORY DIAGNOSTICS, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	ELK VALLEY PROFESSIONAL AFFILIATES, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 

Registration Rights Agreement

33

 

	 	 	 	 	 
	 	INFUSION PARTNERS, LLC

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	KNOXVILLE HOME THERAPIES, LLC

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	SOUTH MISSISSIPPI HOME HEALTH, INC. – REGION I

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	SOUTH MISSISSIPPI HOME HEALTH, INC. – REGION II

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	SOUTH MISSISSIPPI HOME HEALTH, INC. – REGION III

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	APPLIED HEALTH CARE, LLC

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 
	 	EAST GOSHEN PHARMACY, INC.

 	 
	 	By:  	/s/ Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary 
and
General Counsel 	 
	 

Registration Rights Agreement

34

 

	 	 	 	 	 
	 	NATIONAL HEALTH INFUSION, INC.

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	INFUSION PARTNERS OF BRUNSWICK, LLC

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	OPTION HEALTH, LTD.

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	SCOTT-WILSON, INC.

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	INFUSION PARTNERS OF MELBOURNE, LLC

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	ELK VALLEY HOME HEALTH CARE AGENCY, INC.

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 
	 	GERICARE, INC.

 	 
	 	By:  	/s/ Barry A. Posner	 
	 	 	Name:  	Barry A. Posner	 
	 	 	Title:  	Executive Vice President, Secretary and General Counsel	 
	 

Registration Rights Agreement

35

 

	 	 	 	 	 
	 	CEDAR CREEK HOME HEALTH CARE AGENCY, INC.

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary
and General Counsel 
	 
	 	ELK VALLEY HEALTH SERVICES, INC.

 	 
	 	By:  	/s/
Barry A. Posner 	 
	 	 	Name:  	Barry A. Posner 
	 	 	Title:  	Executive Vice President, Secretary
and General Counsel 	 
	 

	 	 	 	 	 
	ACCEPTED AND AGREED TO:

JEFFERIES & COMPANY, INC.

as Initial Purchaser
 	 
	By:  	/s/
Michael Leder 	 
	 	Name: 	Michael Leder 	 
	 	Title:  	Managing Director 	 
	 

Registration Rights Agreement

36

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