Document:

EX-10.16

 

Exhibit 10.16

AMENDED AND RESTATED PLEDGE AGREEMENT

          AMENDED AND RESTATED PLEDGE AGREEMENT effective as of November 1, 2007 (this “Pledge
Agreement”) among BioScrip, Inc., a Delaware corporation (f/k/a MIM Corporation) (together with its
corporate successors and assigns, “BioScrip”), Chronimed Inc., a Minnesota corporation (together
with its corporate successors and assigns, “Chronimed”), each of the Borrowers under the LSA (as
defined below) (the “Borrowers” and together with BioScrip and Chronimed, each a “Grantor” and
collectively, the “Grantors”), and HFG HEALTHCO-4 LLC, a Delaware limited liability company (the
“Lender”).

          The Borrowers and the Lender have entered into that certain Amended and Restated Loan and
Security Agreement, dated as of September 26, 2007 (as amended, restated, modified or supplemented
from time to time, the “LSA”; capitalized terms used herein and not defined herein shall have the
meanings attributed thereto in the LSA).

          Each of BioScrip and Chronimed is benefiting from the transactions described in the LSA and is
a beneficiary thereof and has entered into an Amended and Restated Guaranty (the “Guaranty”),
pursuant to which it is jointly and severally guarantying the obligations of the Borrowers under
the LSA.

          Each Grantor and the Lender would like to amend and restate the Pledge Agreement, dated as of
December 29, 2006, among the Grantors (other than Chronimed) and the Lender (the “Original Pledge
Agreement”) to, among other things, add Chronimed as a Grantor and restate the obligations being
secured.

          It is a condition precedent to the effectiveness of the LSA and the making of any financial
accommodations under the LSA that the Grantors execute and deliver a pledge agreement in the form
hereof to secure the following (collectively, the “Obligations”): (a) the payment in full of the
Lender Debt under the LSA and (b) all obligations of each Grantor at any time and from time to time
under this Pledge Agreement, including without limitation any and all reasonable costs and expenses
(including reasonable counsel fees and expenses) paid or incurred in enforcing any rights under
this Pledge Agreement.

          NOW, THEREFORE, the Grantors and the Lender hereby agree to amend and restate the Original
Pledge Agreement as follows:

          1. Pledge. As security for the payment and performance in full of the Obligations,
each Grantor hereby transfers, grants, bargains, sells, conveys, hypothecates, pledges, sets over,
endorses over, and delivers unto the Lender, and grants to the Lender, for its own benefit, a
security interest in (a) the shares of capital stock, limited liability company interests and
membership interests listed in Schedule I annexed hereto next to such Grantor’s name (the
“Initial Pledged Equity”), any additional shares of common stock, limited liability

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company interests and membership interests of the issuers listed in Schedule I annexed
hereto obtained in the future by such Grantor and any capital stock, limited liability company
interests and membership interests in any entity acquired in the future by such Grantor
(collectively, the Initial Pledged Equity together with all such additional shares pledged in the
future, the “Pledged Equity”) and (b) subject to Section 5 below, all proceeds of the Pledged
Equity, including, without limitation, all cash, securities or other property at any time and from
time to time receivable or otherwise distributed in respect of or in exchange for any of or all
such Pledged Equity (the items referred to in clauses (a) and (b) being collectively called the
“Collateral”). Upon delivery to the Lender, any securities now or hereafter included in the
Collateral including, without limitation, the Pledged Equity (the “Pledged Securities”) shall be
accompanied by undated stock powers duly executed in blank or other instruments of transfer
reasonably satisfactory to the Lender. Each delivery of Pledged Securities shall be accompanied by
a schedule showing a description of the securities theretofore and then being pledged hereunder,
which schedule shall be annexed to Schedule I hereto and made a part hereof. Each schedule
so delivered shall supersede any prior schedules so delivered.

          2. Delivery of Collateral.

          (a) Each Grantor agrees to deliver or cause to be delivered to the Lender all original
certificates, instruments and other documents evidencing or representing the Initial Pledged Equity
concurrently with the execution and delivery of this Pledge Agreement and the original
certificates, instruments or other documents evidencing or representing all other Pledged Equity
within ten days after such Grantor’s receipt thereof, in each case accompanied by duly executed
undated instruments of transfer or assignment in blank, all in form and substance reasonably
satisfactory to the Lender.

          (b) If any Pledged Security (whether now owned or hereafter acquired) are “uncertificated
securities” within the meaning of the Uniform Commercial Code or are otherwise not evidenced by any
certificate or instrument, the applicable Grantor shall promptly take and cause to be taken all
actions required under Articles 8 and 9 of the Uniform Commercial Code and any other applicable
law, to enable the Lender to acquire “control” (within the meaning of such term under Section 8-106
(or its successor provision) of the Uniform Commercial Code) of such uncertificated securities and
as may be otherwise necessary or deemed appropriate by the Lender to perfect the security interest
of the Lender therein, including, without limitation, the filing of UCC-1 financing statements in
the appropriate jurisdictions.

          3. Representations, Warranties and Covenants. Each Grantor hereby represents,
warrants and covenants to and with the Lender that:

          (a) except for the security interest granted to the Lender, such Grantor (i) is and, subject
to the provisions of the LSA, will at all times (except to the extent the obligations of such
Grantor under this Pledge Agreement are terminated solely as provided in Section 14(b) hereto)
continue to be the direct owner, beneficially and of record, of the Pledged Securities that it is

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pledging hereunder, (ii) holds the Collateral that it is pledging hereunder free and clear of
all Liens, charges, encumbrances and security interests of every kind and nature, and the Pledged
Equity is subject to no options to purchase or any similar or other rights of any person and such
Grantor has not granted “control” (within the meaning of such term under Section 8-106 (or its
successor provision) of the Uniform Commercial Code) over any portion of the Collateral to any
other person, (iii) will make no assignment, pledge, hypothecation or, subject to the provisions
of the LSA, transfer of, or create any security interest in, the Collateral that it is pledging
hereunder including, without limitation, by virtue of becoming bound by any agreement which
restricts in any manner the rights of any present or future holder of any Pledged Equity with
respect thereto, and (iv) subject to Section 5 below, will cause any and all Pledged Securities and
other certificates, instruments or documents evidencing or representing any of the Collateral,
whether for value paid by such Grantor or otherwise, to be forthwith deposited with the Lender and
pledged or assigned hereunder;

          (b) such Grantor (i) has the right and legal authority to pledge the Collateral it is pledging
hereunder in the manner hereby done or contemplated, (ii) will not amend, modify or supplement any
Pledged Security without the prior written consent of the Lender, not to be unreasonably withheld,
and (iii) will defend its title or interest thereto or therein against any and all attachments,
Liens, claims, encumbrances, security interests or other impediments of any nature, however
arising, of all persons whomsoever;

          (c) no consent or approval of any governmental body or regulatory authority or any securities
exchange is necessary for the pledge effected hereby to be valid;

          (d) by virtue of the execution and delivery by such Grantor of this Pledge Agreement, when the
certificates, instruments or other documents representing or evidencing the Collateral are
delivered to the Lender in accordance with this Pledge Agreement and Uniform Commercial Code
financing statements in the form attached hereto as Exhibit A are filed in the appropriate
jurisdictions, the Lender will obtain a valid and perfected first Lien upon and security interest
in such Collateral as security for the repayment of the Obligations, prior to all other Liens and
encumbrances thereon and security interests therein;

          (e) the pledge effected hereby is effective to vest in the Lender the rights in the Collateral
as set forth herein;

          (f) all of the Pledged Equity has been duly authorized and validly issued and as at the date
hereof, the Initial Pledged Equity constitutes all of the issued and outstanding shares of capital
stock, limited liability company interests or membership interests, as applicable, of the issuers
listed on Schedule I annexed hereto; and

          (g) except for the Pledged Equity consisting of capital stock in a corporation, the Pledged
Equity is not and will not in the future be certificated.

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          All representations, warranties and covenants of each Grantor contained in this Pledge Agreement
shall survive the execution, delivery and performance of this Pledge Agreement until the
termination of this Pledge Agreement pursuant to Section 14 hereof.

          4. Registration in Nominee Name; Denominations. Upon the occurrence and during the
continuance of an Event of Default, the Lender shall have the right (in its sole and absolute
discretion with subsequent notice to the Grantors) to transfer to or to register the Pledged
Securities in its own name or the name of its nominee. In addition, the Lender shall at all times
have the right to exchange the certificates representing Pledged Securities for certificates of
smaller or larger denominations for any purpose consistent with this Pledge Agreement.

          5. Voting Rights; Dividends; etc. (a) Unless and until an Event of Default under the
LSA shall have occurred and be continuing:

               (i) The Grantors shall be entitled to exercise any and all voting and/or consensual rights and
powers accruing to an owner of Pledged Securities or any part thereof for any purpose not
inconsistent with the terms of this Pledge Agreement and the LSA provided that such action would
not adversely affect the rights inuring to the Lender under this Pledge Agreement or the LSA or
adversely affect the rights and remedies of the Lender under this Pledge Agreement or the LSA or
the ability of the Lender to exercise the same.

               (ii) The Lender shall execute and deliver to the Grantors, or cause to be executed and
delivered to the Grantors, all such proxies, powers of attorney, and other instruments as the
Grantors may reasonably request for the purpose of enabling the Grantors to exercise the voting
and/or consensual rights and powers which they are entitled to exercise pursuant to subparagraph
(i) above.

               (iii) The Grantors shall be entitled to receive and retain any and all cash dividends and
distributions paid on the Pledged Securities only to the extent that such cash dividends and
distributions are permitted by, and otherwise paid in accordance with the terms and conditions of,
the LSA and applicable laws. Any and all

                    a. noncash dividends and distributions,

                    b. stock or dividends and other distributions paid or payable in cash or otherwise in
connection with a partial or total liquidation or dissolution, and

                    c. instruments, securities, other distributions in property, return of capital, capital
surplus or paid-in surplus or other distributions made on or in respect of Pledged Securities
(other than dividends permitted by this Section 5(a)(iii)), whether paid or payable in cash or
otherwise, whether resulting from a subdivision, combination or reclassification of the outstanding
capital stock, limited liability company interests or membership interests of the

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issuer of any Pledged Securities or received in exchange for Pledged Securities or any part
thereof, or in redemption thereof, as a result of any merger, consolidation, acquisition or other
exchange of assets to which such issuer may be a party or otherwise, shall be and become part of
the Collateral, and, if received by the Grantors, shall not be commingled by the Grantors with any
of its other funds or property but shall be held separate and apart therefrom, shall be held in
trust for the benefit of the Lender and shall be forthwith delivered to the Lender in the same form
as so received (with any necessary endorsement).

          (b) Upon the occurrence and during the continuance of an Event of Default, all rights of the
Grantors to receive any dividends, stock, instruments, securities and other distributions which the
Grantors are authorized to receive pursuant to paragraph (a)(iii) of this Section 5 shall cease,
and all such rights shall thereupon become vested in the Lender, which shall have the sole and
exclusive right and authority to receive and retain such dividends. All dividends and
distributions which are received by the Grantors contrary to the provisions of this Section 5(b)
shall be received in trust for the benefit of the Lender, shall be segregated from other property
or funds of the Grantors and shall be forthwith delivered to the Lender as Collateral in the same
form as so received (with any necessary endorsement). Any and all money and other property paid
over to or received by the Lender pursuant to the provisions of this Section 5 (b) shall be
retained by the Lender in an account to be established by the Lender upon receipt of such money or
other property and shall be applied in accordance with the provisions of Section 8 hereof.

          (c) Upon the occurrence and during the continuance of an Event of Default, all rights of the
Grantors to exercise the voting and consensual rights and pursuant to the irrevocable proxy granted
herein, powers which it is entitled to exercise pursuant to Section 5(a)(i) shall cease, and all
such rights shall thereupon become vested in the Lender, which shall have the sole and exclusive
right and authority to exercise such voting and consensual rights and powers.

          (d) In order to permit the Lender to exercise the voting and other consensual rights which it
may be entitled to exercise pursuant to Section 5(c) and to receive all dividends and other
distributions which it may be entitled to receive under Section 5(a)(iii) or Section 5(b), each
Grantor shall promptly execute and deliver (or cause to be executed and delivered) to the Lender
all such proxies, dividend payment orders and other instruments as the Lender may from time to time
reasonably request.

     Without limiting the effect of the foregoing, each Grantor does hereby constitute and appoint
the Lender as its proxy, and the Lender shall have the right, upon the occurrence and during the
continuance of an Event of Default, to exercise all rights, benefits, privileges and powers
accruing to such Grantor, as owner of the Pledged Securities, including, without limitation, giving
or withholding consent, calling and attending shareholders’ meetings to be held from time to time
with full power to vote and act for and in the name, place, and stead of such Grantor and in the
same manner, to the same extent, and with the same effect that such Grantor would if personally
present at such meetings, giving to the Lender full power of substitution and

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revocation, which proxy shall be effective, automatically and without the necessity of any
action (including any transfer of any Pledged Equity on the record books of the issuer thereof) by
any person (including the issuer of the Pledged Equity or any officer or agent thereof).

THIS PROXY IS IRREVOCABLE

     Any proxy or proxies heretofore given by any Grantor to any person or persons with respect to
the Pledged Equity owned by such Grantor are hereby revoked. This proxy shall continue in full
force and effect until such time as all Obligations are paid and satisfied in full in accordance
with the terms of the LSA.

          6. Issuance of Additional Stock. Each Grantor agrees that it will cause each of its
subsidiaries not to issue any stock, limited liability company interests, membership interests or
other securities, whether in addition to, by stock dividend or other distribution upon, or in
substitution for, the Pledged Securities or otherwise.

          7. Remedies upon Event of Default If an Event of Default shall have occurred and be
continuing, the Lender may sell or otherwise dispose of all or any part of the Collateral, at
public or private sale or at any broker’s board or on any securities exchange, for cash, upon
credit or for future delivery as the Lender shall deem appropriate. Each such purchaser at any
such sale shall hold the property sold absolutely, free from any claim or right on the part of any
Grantor, and such Grantor hereby waives (to the extent permitted by law) all rights of redemption,
stay and appraisal which such Grantor now has or may at any time in the future have under any rule
of law or statute now existing or hereafter enacted.

     The Lender shall give the Grantors 10 days’ written notice (which the Grantors agree is
reasonable notice within the meaning of Section 9-611 of the Uniform Commercial Code as in effect
in New York) of the Lender’s intention to make any sale of Collateral. Such notice, in the case of
a public sale, shall state the time and place for such sale and, in the case of a sale at a
broker’s board or on a securities exchange, shall state the board or exchange at which such sale is
to be made and the day on which the Collateral, or portion thereof, will first be offered for sale
at such board or exchange. Any such public sale shall be held at such time or times within
ordinary business hours and at such place or places as the Lender may fix and state in the notice
(if any) of such sale. At any such sale, the Collateral, or portion thereof, to be sold may be
sold in one lot as an entirety or in separate parcels, as the Lender may (in its sole and absolute
discretion) determine. The Lender shall not be obligated to make any sale of any Collateral if it
shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall
have been given. The Lender may, without notice or publication, adjourn any public or private sale
or cause the same to be adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place to which the same
was so adjourned. In case any sale of all or any part of the Collateral is made on credit or for
future delivery, the Collateral so sold may be retained by the Lender until the sale price is paid
by the purchaser or purchasers thereof, but the Lender shall not incur any liability in case

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any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and,
in case of any such failure, such Collateral may be sold again upon like notice. At any public
sale made pursuant to this Section 7, the Lender may bid for or purchase, free (to the extent
permitted by law) from any right of redemption, stay or appraisal on the part of any Grantor (all
said rights being also hereby waived and released to the extent permitted by law), with respect to
the Collateral or any part thereof offered for sale and the Lender may make payment on account
thereof by using any claim then due and payable to the Lender from any Grantor as a credit against
the purchase price, and the Lender may, upon compliance with the terms of sale, hold, retain and
dispose of such property without further accountability to such Grantor therefor. For purposes
hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a
sale thereof; the Lender shall be free to carry out such sale and purchase pursuant to such
agreement, and such Grantor shall not be entitled to the return of the Collateral or any portion
thereof subject thereto, notwithstanding the fact that after the Lender shall have entered into
such an agreement all defaults under the LSA shall have been remedied and the Obligations paid in
full. The Grantors shall remain liable for any deficiency. As an alternative to exercising the
power of sale herein conferred upon it, the Lender may proceed by a suit or suits at law or in
equity to foreclose this Pledge Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to
a proceeding by a court-appointed receiver.

          8. Application of Proceeds of Sale. The proceeds of any sale of Collateral, as well
as any Collateral consisting of cash, shall be applied by the Lender promptly as follows:

     FIRST, to the payment of all reasonable costs and expenses reasonably incurred by the
Lender in connection with such sale or otherwise in connection with this Pledge Agreement or
any of the Obligations, including, but not limited to, all court costs and the reasonable
fees and expenses of the Lender and its legal counsel, the repayment of all advances made by
the Lender on behalf of the Grantors and as specified to the Grantors and any other
reasonable costs or expenses incurred in connection with the exercise of any right or remedy
hereunder;

     SECOND, to the Lender to the payment in full of all Obligations (other than those
referred to above) owed to the Lender to be applied to the Lender’s outstanding obligations
under the LSA in the manner set forth therein; and

     LAST, to the Grantors, their successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

          9. The Lender Appointed Attorney-in-Fact. Each Grantor hereby appoints the Lender its
attorney-in-fact for the purpose of carrying out the provisions of this Pledge Agreement and taking
any action and executing any instrument which the Lender may deem necessary or advisable to
accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest.
Without limiting the generality of the foregoing, the Lender shall have

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the right, upon the occurrence and during the continuance of an Event of Default, with full
power of substitution either in the Lender’s name or in the name of any Grantor, to ask for,
demand, sue for, collect, receive receipt and give acquittance for any and all moneys due or to
become due and under and by virtue of any Collateral, to endorse checks, drafts, orders and other
instruments for the payment of money payable to such Grantor representing any interest or dividend,
or other distribution payable in respect of the Collateral or any part thereof or on account
thereof and to give full discharge for the same, to settle, compromise, prosecute or defend any
action, claim or proceeding with respect thereto, and to sell, assign, endorse, pledge, transfer
and make any agreement respecting, or otherwise deal with, the same; provided,
however, that nothing herein contained shall be construed as requiring or obligating the
Lender to make any commitment or to make any inquiry as to the nature or sufficiency of any payment
received by the Lender, or to present or file any claim or notice, or to take any action with
respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof
or any property covered thereby, and no action taken by the Lender, or omitted to be taken with
respect to the Collateral or any part thereof shall give rise to any defense, counterclaim or
offset in favor of such Grantor or to any claim or action against the Lender in the absence of the
gross negligence or willful misconduct of the Lender.

          10. No Waiver. No failure on the part of the Lender to exercise, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or remedy by the Lender preclude any other or
further exercise thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided by law. The Lender
shall not be deemed to have waived any rights hereunder or under any other agreement or instrument
unless such waiver shall be in writing and signed by the Lender.

          11. Registration, etc. Each Grantor agrees that, upon the occurrence and during the
continuance of an Event of Default, if for any reason the Lender desires to sell any of the Pledged
Securities at a public sale, it will, at any time and from time to time, upon the written request
of the Lender, take or to cause the issuer of such Pledged Securities to take such action and to
prepare, distribute and/or file such documents, as are required or advisable in the opinion of
counsel for the Lender to permit the public sale of such Pledged Securities. The Grantors further
agrees to indemnify, defend and hold harmless the Lender, any member of the Lender Group and any
underwriter and their respective officers, directors, affiliates and controlling persons (within
the meaning of Section 20 of the Securities Exchange Act of 1934) from and against all loss,
liability, expenses, costs, fees and disbursements of counsel (including, without limitation, a
reasonable estimate of the cost to the Lender of legal counsel), and claims (including the costs of
investigation) which they may incur insofar as such loss, liability, expense or claim arises out of
or is based upon any untrue statement of a material fact contained in any prospectus (or any
amendment or supplement thereto) or in any notification or offering circular, or arises out of or
is based upon any omission to state a material fact required to be stated therein or necessary to
make the statements in any thereof not misleading, except insofar as the same arises out of any
untrue statement or omission based upon information furnished in writing to the

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Grantors or the issuer of such Pledged Securities by the Lender, any member of the Lender
Group or the underwriter expressly for use therein. The Lender (with respect to such information
furnished by it) shall indemnify, defend and hold harmless each Grantor or the issuer of such
Pledged Securities and their respective officers, directors, affiliates and controlling persons
(within the meaning of Section 20 of the Securities Exchange Act of 1934) upon the same terms as
are applicable to such Grantor pursuant hereto. The Grantors further agrees to use its best
efforts to qualify, file or register, or cause the issuer of such Pledged Securities to qualify,
file or register, any of the Pledged Securities under the Blue Sky or other securities laws of such
states as may be requested by the Lender and keep effective, or cause to be kept effective, all
such qualifications, filings or registrations. The Grantors will bear all costs and expenses of
carrying out its obligations under this Section 11. Each Grantor acknowledges that there is no
adequate remedy at law for failure by it to comply with the provisions of this Section 11 and that
such failure would not be adequately compensable in damages, and therefore agrees that its
agreements contained in this Section 11 may be specifically enforced. The Lender agrees to utilize
only the services of underwriters and brokers unaffiliated with any member of the Lender Group, and
no remuneration shall be paid to any member of the Lender Group, in effecting the public sale of
the Pledged Securities.

          12. Security Interest Absolute. All rights of the Lender hereunder, the grant of a
security interest in the Collateral and all obligations of each Grantor hereunder, shall be
absolute and unconditional irrespective of (i) any lack of validity or enforceability of the LSA,
the Guaranty, any agreement with respect to any of the Obligations or any other agreement or
instrument relating to any of the foregoing, (ii) any change in time, manner or place of payment
of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or
any consent to any departure from the LSA, the Guaranty, or any other agreement or instrument,
(iii) any exchange, release or nonperfection of any other collateral, or any release or amendment
or waiver of or consent to or departure from any guarantee, for all or any of the Obligations or
(iv) any other circumstance which might otherwise constitute a defense available to, or a discharge
of, such Grantor in respect of the Obligations or in respect of this Pledge Agreement.

          13. Lender’s Fees and Expenses. The Grantors shall be obligated to, upon demand, pay
to the Lender the amount of any and all reasonable expenses, including the reasonable fees and
expenses of its respective counsel and of any experts or agents which the Lender may incur in
connection with (i) the administration of this Pledge Agreement, (ii) the custody or preservation
of, or the sale of, collection from, or other realization upon, any of the Collateral, (iii) the
exercise or enforcement of any of the rights of the Lender hereunder or (iv) the failure by either
Grantor to perform or observe any of the provisions hereof. In addition, the Grantors agree to
indemnify and hold the Lender harmless from and against any and all liability incurred by the
Lender hereunder or in connection herewith, unless such liability shall be due to the gross
negligence or willful misconduct of the Lender, as the case may be. Any such amounts payable as
provided hereunder or thereunder shall be additional Obligations secured hereby.

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          14. Termination. (a) This Pledge Agreement shall terminate when (i) all of the
Obligations have been fully paid in immediately available funds and (ii) the Lender has no further
commitment to make any advances under the LSA, at which time the Lender shall reassign and deliver
to the Grantors, or to such person or persons as the Grantors shall designate, against receipt,
such of the Collateral (if any) as shall not have been sold or otherwise still be held by it
hereunder, together with appropriate instruments of reassignment and release, including delivery of
Uniform Commercial Code termination statements and similar documents reasonably requested by the
Grantors; provided, however, that all indemnities of the Grantors contained in this
Pledge Agreement shall survive, and remain operative and in full force and effect regardless of,
the termination of this Pledge Agreement. Any such reassignment shall be without recourse to or
warranty by the Lender and at the expense of the Grantors.

               (b) In the event that (i) (1) a Removal of a Grantor occurs in accordance with the terms of
the LSA or (2) the Guaranty of a Grantor is terminated (in accordance with the terms of such
Guaranty and the other Documents) and (ii) such Grantor shall no longer have any liability with
respect to the Obligations (either directly or as a guarantor thereof), then this Pledge Agreement
shall terminate with respect to such Grantor in accordance with the terms of Section 14(a) hereto.

          15. Notices. All communications and notices hereunder shall be in writing and given
as provided in the LSA.

          16. Further Assurances. Each Grantor agrees to do such further acts and things, and
to execute and deliver such additional conveyances, assignments, agreements and instruments, as the
Lender may at any time reasonably request in connection with the administration and enforcement of
this Pledge Agreement or with respect to the Collateral or any part thereof or in order better to
assure and confirm unto the Lender their rights and remedies hereunder.

          17. Binding Agreement; Assignments. This Pledge Agreement, and the terms, covenants
and conditions hereof, shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns, except that the Grantors shall not be permitted to assign
this Pledge Agreement or any interest herein or in the Collateral, or any part thereof, or
otherwise pledge, encumber or grant any option with respect to the Collateral, or any part thereof,
or any cash or property held by the Lender as Collateral under this Pledge Agreement.

          18. GOVERNING LAW. THIS PLEDGE AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAWS PRINCIPLES THEREOF.

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          19. Severability. In case any one or more of the provisions contained in this Pledge
Agreement should be 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.

          20. Counterparts. This Pledge Agreement may be executed in two or more counterparts,
each of which shall constitute an original, but all of which, when taken together, shall constitute
but one instrument. This Pledge Agreement shall be effective when a counterpart which bears the
signature of the Grantors shall have been delivered to the Lender.

          21. Section Headings. Section headings used herein are for convenience only and are
not to affect the construction of, or be taken into consideration in interpreting, this Pledge
Agreement.

[Remainder of Page Intentionally Left Blank]

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          IN WITNESS WHEREOF, the parties hereto have duly executed this Pledge Agreement as of the day
and year first above written.

	 	 	 	 	 
	GRANTORS: 	BIOSCRIP PBM SERVICES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP PHARMACY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP INFUSION SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP PHARMACY (NY), INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 
	 	BIOSCRIP PHARMACY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NATURAL LIVING, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BIOSCRIP INFUSION SERVICES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CHRONIMED INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 LENDER: 	HFG HEALTHCO-4, LLC

 	 
	 	By:  	HFG Healthco-4, Inc., a member
 	 
	 	 	 	 
	 	 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

SCHEDULE I

to Pledge Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Number of	 	Outstanding
	Grantor	 	Equity Issuer	 	Class of Equity	 	Certificate No(s).	 	Par Value	 	Shares/Interests	 	Shares/Interests
	BioScrip, Inc.

	 	BioScrip Infusion
Services, Inc.
(f/k/a Intravenous
Therapy Services,
Inc.)
	 	Common Shares
	 	 	2	 	 	$	0.00	 	 	 	1,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip, Inc.

	 	BioScrip Pharmacy
Services, Inc.
	 	Common Shares
	 	 	2	 	 	$	0.00	 	 	 	204	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip, Inc.

	 	MIM IPA, Inc.
	 	Common Shares
	 	 	2	 	 	$	0.01	 	 	 	1,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip, Inc.

	 	MIM Investment

Corporation
	 	Common Shares
	 	 	2	 	 	$	0.01	 	 	 	1,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip, Inc.	 	BioScrip PBM

Services, LLC	 	limited liability

company interests	 	uncertificated interest	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip, Inc.

	 	BioScrip Pharmacy
(NY), Inc. (f/k/a
Vitality Home
Infusion Services,
Inc.)
	 	Common Shares
	 	 	8	 	 	$	0.00	 	 	 	100	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip, Inc.

	 	Chronimed Inc.
	 	Common Shares
	 	 	1	 	 	$	0.01	 	 	 	100	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip, Inc.
(f/k/a MIM
Corporation)

	 	MIM Health Plans of
Puerto Rico, Inc.
	 	Common Shares
	 	 	1	 	 	$	100.00	 	 	 	100	 	 	 	50	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip PBM 

Services, LLC

(f/k/a Scrip 

Solutions, LLC)

	 	Natural Living, Inc.
	 	Common Shares
	 	 	2	 	 	$	0.00	 	 	 	100	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip PBM 

Services, LLC	 	BioScrip Infusion

Services, LLC	 	limited liability

company interests	 	uncertificated interest	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BioScrip Infusion 

Services, LLC	 	New York ADIMA, LLC	 	limited liability

company interests	 	uncertificated interest	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Number of	 	Outstanding
	Grantor	 	Equity Issuer	 	Class of Equity	 	Certificate No(s).	 	Par Value	 	Shares/Interests	 	Shares/Interests
	BioScrip Infusion 

Services, LLC	 	BioScrip Infusion

Management, LLC	 	limited liability

company interests	 	uncertificated interest	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chronimed Inc.

	 	Los Feliz Inc.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chronimed Inc.

	 	BioScrip Pharmacy,
Inc. (f/k/a
Chronimed Holdings
Inc.)
	 	Common Shares
	 	 	01	 	 	$	 .01	 	 	 	1,000	 	 	 	100	%

 

 

EXHIBIT A

UCC Financing StatementsEX-10.17

 

Exhibit 10.17

          AMENDED AND RESTATED GUARANTY effective as of October 1, 2007 (this “Guaranty”), by BIOSCRIP,
INC., a Delaware corporation (f/k/a MIM Corporation) (together with its corporate successors and
assigns, “BioScrip”), CHRONIMED INC., a Minnesota corporation (together with its corporate
successors and assigns, “Chronimed” and together with BioScrip, each a “Guarantor” and
collectively, the “Guarantors”), in favor of HFG HEALTHCO-4 LLC, a Delaware limited liability
company (the “Lender”).

          The Lender has entered into that certain Amended and Restated Loan and Security Agreement,
dated as of September 26, 2007 (as amended, restated, modified or supplemented from time to time,
the “LSA”; capitalized terms used herein and not defined herein shall have the meanings attributed
thereto in the LSA) with certain Subsidiaries of the Guarantors party thereto as Borrowers (each,
together with each one’s corporate successors and assigns, a “Borrower” and, collectively, the
"Borrowers”).

          Each Guarantor will derive substantial benefit from the transactions contemplated by the LSA.

          Each Guarantor would like to amend and restate the Guaranty, dated as of January ___, 2002, as
amended by the First Amendment, dated as of July 5, 2006 by BioScrip (the “Original Guaranty”) to,
among other things, add Chronimed as a Guarantor and restate the obligations being guaranteed.

          Accordingly, in consideration of the premises, and in order to induce the Lender under the LSA
to make loans to the Borrowers and other financial accommodations thereunder, the Guarantors hereby
agree to amend and restate the Original Guaranty as follows:

     Section 1. Guaranty. (a) Each Guarantor, jointly and severally, hereby irrevocably
and unconditionally guarantees the punctual payment and performance when due of (i) the Lender Debt
under the LSA, and (ii) all other obligations of the Borrowers under any other Document
(collectively, the “Guaranteed Obligations”), and hereby further agrees to pay any and all costs
and expenses (including reasonable counsel fees and expenses) paid or incurred by the Lender, in
enforcing any rights under this Guaranty.

          (b) Any and all payments by or on behalf of any Guarantor hereunder shall be made free and
clear of and without deduction or withholding for any and all present or future taxes or otherwise
unless required by law.

     Section 2. Guaranty Absolute. Each Guarantor, jointly and severally, guarantees that
the Guaranteed Obligations will be paid or performed in accordance with the terms of the LSA
regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of the Borrowers or the Lender with respect thereto. The
obligations of each Guarantor hereunder are independent of the obligations of the Borrowers under
the LSA and a separate action or actions may be brought or prosecuted against such Guarantor to
enforce this Guaranty, irrespective of whether action is brought against the

 

 

Borrowers or whether the Borrowers are joined in any such action or actions. The liability of
each Guarantor under this Guaranty shall be absolute and unconditional, and shall not be affected
or released in any way, irrespective of:

          (a) any lack of validity or enforceability of the LSA or any Document;

          (b) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from
any Document including, without limitation, any increase in the Guaranteed Obligations;

          (c) any taking and holding of collateral or additional guarantees for all or any of the
Guaranteed Obligations, or any amendment, alteration, exchange, substitution, transfer,
enforcement, waiver, subordination, termination or release of any collateral or such guarantees, or
non-perfection or delay in perfection of any collateral, or any consent to departure from any such
guaranty, for all or any of the Guaranteed Obligations;

          (d) any manner of application of collateral, or proceeds thereof, to all or any of the
Guaranteed Obligations, or any commercially reasonable manner of sale or other disposition of any
collateral for all or any of the Guaranteed Obligations or any other assets of any Borrower or any
other Person;

          (e) any consent by the Lender, any Borrower or any other Person to the change, restructure or
termination of the corporate structure or existence of the Lender, any Borrower or any of their
affiliates and any corresponding restructure of the Guaranteed Obligations, or any other
restructure or refinancing of the Guaranteed Obligations or any portion thereof; or

          (f) any other circumstance which might otherwise constitute a defense available to, or a
discharge of a Borrower.

               (a) Without limiting the generality of the foregoing, each Guarantor hereby consents to, and
hereby agrees, that the rights of the Lender hereunder, and the liability of each Guarantor
hereunder, shall not be affected by any and all releases of any collateral, whether for purposes of
commercially reasonable sales or other dispositions of assets or for any other purpose.

     Section 3. Waiver. Each Guarantor hereby absolutely, unconditionally and irrevocably
waives, to the fullest extent permitted by law, (i) promptness, diligence, notice of acceptance and
any other notice with respect to this Guaranty, (ii) presentment, demand of payment, protest,
notice of dishonor or nonpayment and any other notice with respect to the Guaranteed Obligations,
(iii) any requirement that the Lender or any other Person protect, secure, perfect or insure any
security interest or Lien or any property subject thereto or exhaust any right or take any action
against the Borrowers or any other Person or any collateral, and (iv) any duty on the part of the
Lender or any other Person to disclose to any Guarantor any matter, fact or

2

 

thing relating to the business, operation or condition of the Borrowers and their assets now
known or hereafter known by such Person.

     Section 4. Waiver of Subrogation and Contribution. Until the later to occur of the
Maturity Date and payment in full of all Guaranteed Obligations, each Guarantor hereby irrevocably
waives any claim or other rights which it may now or hereafter acquire against any Borrower that
arises from the existence, payment, performance or enforcement of such Guarantor’s obligations
under this Guaranty, including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in any claim or remedy
against a Borrower or any collateral which the Lender now has or hereafter acquires, whether or not
such claim, remedy or right arises in equity, or under contract, statute or common law, including,
without limitation, the right to take or receive from a Borrower or, directly or indirectly, in
cash or other property or by set-off or in any other manner, payment or security on account of such
claim, remedy or other right. If any amount shall be paid to any Guarantor in violation of the
preceding sentence at any time prior to the later to occur of the Maturity Date and payment in full
of all Guaranteed Obligations, such amount shall be deemed to have been paid to such Guarantor for
the benefit of, and held in trust for the benefit of, the Lender, and shall forthwith be paid to
the Lender to be credited and applied to the Guaranteed Obligations and all other amounts payable
under this Guaranty, whether matured or unmatured, in accordance with the terms of the Documents,
or to be held as collateral for any Guaranteed Obligations or other amounts payable under this
Guaranty thereafter arising. Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by the Documents and that the waiver set
forth in this subsection is knowingly made in contemplation of such benefits.

     Section 5. Representations and Warranties. Each Guarantor hereby represents and
warrants as follows:

          (a) Such Guarantor has the corporate power to execute and deliver this Guaranty and to incur
and perform its obligations hereunder;

          (b) Such Guarantor has duly taken all necessary corporate action to authorize the execution,
delivery and performance of this Guaranty and to incur and perform its obligations hereunder;

          (c) No consent, approval, authorization or other action by, and no notice to or of, or
declaration or filing with, any governmental or other public body, or any other Person, is required
for the due authorization, execution, delivery and performance by such Guarantor of this Guaranty
or the consummation of the transactions contemplated hereby;

          (d) The execution, delivery and performance by such Guarantor of this Guaranty does not and
will not violate or otherwise conflict with any term or provision of any material agreement,
instrument, judgment, decree, order or any statute, rule or governmental regulation

3

 

applicable to such Guarantor or result in the creation of any Lien upon any of its properties
or assets pursuant thereto; and

          (e) This Guaranty has been duly authorized, executed and delivered by such Guarantor and
constitutes the legal, valid and binding obligation of such Guarantor, and is enforceable against
such Guarantor in accordance with its terms, except as enforcement thereof may be subject to the
effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law
affecting creditors’ rights generally, and general principles of equity (regardless of whether such
enforcement is sought in a proceeding in equity or at law).

          (f) Without the prior written consent of the Lender, no Guarantor shall own any assets or
engage in any business or activity other than (i) (1) with respect to BioScrip, the ownership of
all of the outstanding Equity Interests of its Subsidiaries and (2) with respect with Chronimed,
the ownership of all of the outstanding Equity Interests of its Subsidiaries, (ii) the maintenance
of its organizational existence, (iii) the execution and delivery of the agreements to which it is
a party in connection with the Documents and the performance of its obligations thereunder and (iv)
activities incidental to the businesses or activities described in clauses (i) through (iii) of
this clause (f).

     Section 6. Amendments, Etc. No amendment or waiver of any provision of this Guaranty
nor consent to any departure by the Guarantors therefrom shall in any event be effective unless the
same shall be in writing and signed by the Lender (and in an amendment, by the Guarantors), and
then such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given.

     Section 7. Assignability. No Guarantor may assign this Guaranty without the prior
written consent of the Lender.

     Section 8. No Waiver; Remedies. No failure on the part of the Lender hereunder, to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law or any other Document.

     Section 9. Continuing Guaranty. This Guaranty is a continuing one and shall (i)
remain in full force and effect until the later to occur of the Maturity Date and payment in full
of all Guaranteed Obligations, (ii) be binding upon the Guarantors, their successors and assigns,
and (iii) inure to the benefit of, and be enforceable by, the Lender and its successors,
transferees and assigns. All obligations to which this Guaranty applies or may apply under the
terms hereof shall be conclusively presumed to have been created in reliance hereon.

     Section 10. Financial Condition of the Borrowers. Each Guarantor represents to the
Lender that it is now and will be completely familiar with the prospects, business, operations and
condition (financial and otherwise) of the Borrowers, and each Guarantor hereby waives and

4

 

relinquishes any duty on the part of the Lender or any other Person to disclose any matter,
fact or thing relating to the prospects, business, assets, liabilities, operations or condition
(financial or otherwise) of the Borrowers now known or hereafter known by the Lender or any other
Person.

     Section 11. Admissibility of Guaranty. The Guarantors agree that any copy of this
Guaranty signed by the Guarantors and transmitted by telecopier for delivery to the Lender shall be
admissible in evidence as the original itself in any judicial or administrative proceeding, whether
or not the original is in existence.

     Section 12. Notices. All notices and other communications hereunder shall, unless
otherwise stated herein, be in writing (which may include facsimile communication) and shall be
faxed or delivered to the Guarantors at each Guarantor’s address set forth under its name on the
signature page hereof and any other Person at its address set forth in the LSA or at such other
address as shall be designated by such party in a Written Notice to the other party. Notices and
communications by facsimile shall be effective when sent (and shall be followed by hard copy sent
by regular mail) and notices and communications sent by other means shall be effective when
received.

     Section 13. Counterparts. This Guaranty may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original and all of which shall together constitute one and the same
agreement.

     Section 14. GOVERNING LAW. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO ANY CONFLICTS OF LAWS PRINCIPLES THEREOF.

     Section 15. WAIVER OF JURY TRIAL, JURISDICTION AND VENUE. EACH OF THE PARTIES HERETO
HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN THE EVENT OF ANY LITIGATION WITH RESPECT TO ANY
MATTER RELATED TO THIS AGREEMENT, AND HEREBY IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE STATE
AND FEDERAL COURTS LOCATED IN NEW YORK COUNTY, NEW YORK CITY, NEW YORK IN CONNECTION WITH ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. IN ANY SUCH LITIGATION, EACH OF
THE PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS AND AGREES
THAT SERVICE THEREOF MAY BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO THE PARTIES HERETO AT
THEIR ADDRESSES SPECIFIED IN SECTION 12.

5

 

     Section 16. Captions; Separability. (a) The captions of the Sections and subsections
of this Guaranty have been inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Guaranty.

          (b) If any term of this Guaranty shall be held to be invalid, illegal or unenforceable, the
validity of all other terms hereof shall in no way be affected thereby.

     Section 17. Joint and Several Liability. Each Guarantor agrees that each reference
to “Guarantor” in this Guaranty shall be deemed to refer to each such Guarantor, jointly and
severally with the other Guarantor. Each Guarantor (i) shall be jointly and severally liable for
the obligations, duties and covenants of each other such Guarantor under this Guaranty and the acts
and omissions of each other such Guarantor, and (ii) jointly and severally makes each
representation and warranty for itself and each other such Guarantor under this Guaranty.
Notwithstanding the foregoing, if, in any action to enforce the Guaranteed Obligations against any
Guarantor or any proceeding to allow or adjudicate a claim hereunder, a court of competent
jurisdiction determined that enforcement of the joint and several obligations of all of the
Guarantors against such Guarantor for the full amount of the Guaranteed Obligations is not lawful
under, or would be subject to avoidance under Section 548 of the United States Bankruptcy Code or
any applicable provision of state law, the liability of such Guarantor hereunder shall be limited
to the maximum amount lawful and not subject to avoidance under such law.

[ Remainder of Page Intentionally Left Blank]

6

 

IN WITNESS WHEREOF, the Guarantors have caused this Guaranty to be duly executed as of the date
first above set forth.

	 	 	 	 	 
	 	BIOSCRIP, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	Address:  	100 Clearbrook Road

Elmsford, NY 10523

Facsimile Number: (914) 460-1670 	 
	 
	 	CHRONIMED INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	Address:  	100 Clearbrook Road

Elmsford, NY 10523

Facsimile Number: (914) 460-1670

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