Document:

Amendment No. 7 to Loan Security Agreement

 Exhibit 10.3 
  
 $6,000,000.00 
  
 AMENDMENT NO. 7 AND CONSENT 
  
 TO  
  
 LOAN AND SECURITY AGREEMENT 
  
 originally dated as of April 21, 1999 
  
 by and among 
  
 ALLION HEALTHCARE, INC.

 f/k/a THE CARE GROUP, INC. 
 MAIL ORDER MEDS OF TEXAS, INC. 
 f/k/a MAIL ORDER MEDS, INC. 
 MOMS PHARMACY, INC. (NEW YORK) 
 f/k/a MAIL ORDER MEDS OF NEW YORK, INC.

 MOMS PHARMACY, INC. (CALIFORNIA) 
 MOMS PHARMACY, LLC 
 MEDICINE MADE EASY 
 NORTH AMERICAN HOME HEALTH SUPPLY, INC. 
 SPECIALTY PHARMACIES, INC.

  
 (“Borrower”) 
  
 and 
  
 GE HFS HOLDINGS, INC. 
 f/k/a HELLER HEALTHCARE FINANCE, INC. 
  
 (“Lender”) 
  
 Amended as of May 13, 2005 
  

 1 

 AMENDMENT NO. 7 AND CONSENT TO LOAN AND SECURITY AGREEMENT 
  
 THIS AMENDMENT NO. 7 AND CONSENT TO LOAN AND SECURITY AGREEMENT (this
“Amendment”) is made as of this 13th day of May, 2005, by and among ALLION HEALTHCARE, INC.
f/k/a THE CARE GROUP, INC., a Delaware corporation (“Allion”), MAIL ORDER MEDS OF TEXAS, INC., a Texas corporation (“Meds Texas”), MOMS PHARMACY, INC. f/k/a MAIL ORDER MEDS OF NEW YORK, INC., a New
York corporation, (“Moms New York”), MOMS PHARMACY, INC., a California corporation, (“Moms California”), MOMS PHARMACY, LLC, a Florida limited liability company (“Moms Florida”),
MEDICINE MADE EASY, a California corporation (“Medicine Made Easy”), NORTH AMERICAN HOME HEALTH SUPPLY, INC., a California corporation (“North American”), SPECIALTY PHARMACIES, INC., a
Washington corporation (“Specialty” and, collectively with Allion, Meds Texas, Moms New York, Moms California, Moms Florida, Medicine Made Easy and North American, the “Borrower”), and GE HFS HOLDINGS, INC
f/k/a HELLER HEALTHCARE FINANCE, a Delaware corporation (“Lender”). 
  
 RECITALS 
  
 WHEREAS, pursuant to that certain Loan and Security Agreement dated April 21, 1999 by and between Borrower and Lender (as previously amended, as amended hereby and as further amended, modified and restated from time to time, the
“Loan Agreement”), Lender agreed to make available to Borrower a revolving credit loan (the “Loan”); 
  
 WHEREAS, Borrower has informed Lender that Allion has entered into Note Purchase Agreement (the “Note Purchase Agreement”) with
Crestview Capital Master, LLC (“Crestview”) pursuant to which Crestview has agreed to purchase from Allion a promissory note of Allion (the “Crestview Note”) in an aggregate principal amount of $2,000,000 (the
“Proposed Transaction”); 
  
 WHEREAS, Section 7.1 of the Loan Agreement prohibits Borrower from creating, incurring, assuming or suffering to exist any liability for Borrowed Money except as set forth therein; and 
  
 WHEREAS, Borrower has requested that Lender provide its written
consent to the Proposed Transaction, permit the issuance by Allion of the Crestview Note in an aggregate principal amount of $2,000,000, and make certain other modifications to the Loan Agreement; and 
  
 NOW, THEREFORE, in consideration of the foregoing, the terms and
conditions set forth in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower hereby agree as follows: 
  
 Section 1. Definitions. Unless otherwise defined in this
Amendment, all capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Loan Agreement. 
  
 Section 2. Amendments to Loan Agreement. As of the Effective Date, the Loan 
  

 2 

 Agreement shall be modified as follows: 
  
 (a) Article I of the Loan Agreement is hereby amended by inserting the following: 
  
 “Section 1.14(a). Crestview Note.
‘Crestview Note’ means that certain Promissory Note due May 13, 2006 issued by Allion on May 13, 2005 in an aggregate principal amount of up to $2,000,000.” 
  
 (b) Section 1.47(b) of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Section 1.47(b). Subordinated Obligations.
‘Subordinated Obligations’ means, collectively, (i) those certain Subordinated Secured Promissory Notes due May 1, 2005 issued by Allion on May 1, 2003 to Darin A. Peterson and Allan H. Peterson, in an aggregate principal amount of
$1,250,000, (ii) that certain Indemnity Agreement between Borrower and John Pappajohn dated as of November 1, 2000, (iii) those certain Promissory Notes due January 1, 2006 issued by Moms Pharmacy, Inc., a California corporation, on January 4, 2005
to Michael Stone and Jonathan Spanier, in an aggregate principal amount of $675,000, (iv) those certain Promissory Notes due January 1, 2007 issued by Moms Pharmacy, Inc., a California corporation, on January 4, 2005 to Michael Stone and Jonathan
Spanier, in an aggregate principal amount of $700,000, (v) those certain Promissory Notes due February 28, 2006 issued by Moms Pharmacy, Inc., a California corporation, on February 28, 2005 to Pat Iantorno, Eric Iantorno, Jordan Iantorno a/c/f Max
Iantorno, Michael Winters and George Moncada, in an aggregate principal amount of $1,900,000, (vi) that certain Promissory Note due March 31, 2006 issued by Moms Pharmacy, Inc., a California corporation, on February 28, 2005 to Michael Tubb, in a
principal amount of $600,000, (vii) obligations to make cash payment under those certain Warrants, issued by Allion on February 28, 2005 to Pat Iantorno, Eric Iantorno, Jordan Iantorno a/c/f Max Iantorno, Michael Winters and George Moncada and
(viii) the Crestview Note.” 
  
 (c) Section 1.47(c) of the
Loan Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Section 1.47(c). Subordination Agreement. ‘Subordination Agreements’ means, collectively, (i) that certain
Subordination Agreement, dated as of January 31, 2003, by and among Borrower, Lender and John Pappajohn, (ii) that certain Subordination Agreement, dated as of May 1, 2003, by and among Borrower, Lender, Darin A. Peterson and Allan H. Peterson,
(iii) that certain Subordination Agreement, dated as of January 4, 2005, by and among Borrower, Lender, Michael Stone and Jonathan Spanier, (iv) that certain Subordination Agreement, dated as of February 28, 2005, by and among Borrower, Lender, Pat
Iantorno, Eric Iantorno, Jordan Iantorno a/c/f Max Iantorno, Michael Winters, George Moncada and Michael Tubb and (v) that certain Subordination Agreement, dated as of May 13, 2005, by and among Borrower, Lender and Crestview Capital Master,
LLC.” 
  

 3 

 (d) Section 7.1 of the Loan Agreement is hereby amended by deleting the period at the end of clause (ix)
thereof and inserting the following: 
  
 “; and (x)
unsecured indebtedness of Allion in respect of the Crestview Note in an aggregate principal amount not to exceed $2,000,000, so long as the proceeds of such indebtedness are used solely (A) to repay all obligations of Specialty owing to Cardinal
Health, Inc. and its affiliates and (B) after the payment of the items set forth in the foregoing clause (A), for working capital purposes of the Borrower.” 
  
 (e) Section 7.19 of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 

 
 “Section 7.19. Restricted Payments.
Borrower will not make any payment or prepayment of principal of, premium, if any, or interest, fees or other charges on or with respect to, or any redemption, purchase, retirement, defeasance, sinking fund or similar payment and any claim for
rescission with respect to, any of the Subordinated Obligations, except (a) scheduled payments of principal and interest with respect thereto and payments of principal with respect to the Subordinated Obligations issued to Darin A. Peterson and
Allan H. Peterson upon the occurrence of an Early Maturity Date thereunder (and as defined therein); (b) payments of principal in an aggregate amount of $675,000 (less any reduction in such amount pursuant to the Stock Purchase Agreement executed by
Michael Stone and Jonathan Spanier) and interest with respect thereto on January 1, 2006 with respect to the Subordinated Obligations issued to Michael Stone and Jonathan Spanier that mature on such date; (c) payments of principal in an aggregate
amount of $700,000 (less any reduction in such amount pursuant to the Stock Purchase Agreement executed by Michael Stone and Jonathan Spanier) and interest with respect thereto on January 1, 2007 with respect to the Subordinated Obligations issued
to Michael Stone and Jonathan Spanier that mature on such date; (d) scheduled payments of principal in an aggregate amount of $1,900,000 (less any reduction in such amount pursuant to the Stock Purchase Agreement executed by Pat Iantorno, Eric
Iantorno, Jordan Iantorno a/c/f Max Iantorno, Michael Winters and George Moncada) and interest with respect thereto on February 28, 2006 and payment of the entire unpaid principal balance and accrued interest thereon upon the consummation of an
underwritten public offering of shares of capital stock of Allion resulting in aggregate proceeds to Allion in excess of $25,000,000 prior to that date, with respect to the Subordinated Obligations issued to Pat Iantorno, Eric Iantorno, Jordan
Iantorno a/c/f Max Iantorno, Michael Winters and George Moncada; (e) payments of principal in an aggregate amount of $2,200,000 and interest with respect thereto on June 1, 2006 (if Allion has not consummated an initial public offering prior to that
date) with respect to the Subordinated Obligations issued to Pat Iantorno, Eric Iantorno, Jordan Iantorno a/c/f Max Iantorno, Michael Winters and George Moncada under Section (l)(2) of the Warrants issued on February 28, 2005 
  

 4 

 by Allion to such persons; (f) payments in an aggregate amount of $1,581,471 (if Allion has consummated
an initial public offering) with respect to the Subordinated Obligations issued to Pat Iantorno, Eric Iantorno, Jordan Iantorno a/c/f Max Iantorno, Michael Winters and George Moncada under Section (l)(1) of the Warrants issued on February 28, 2005
by Allion to Pat Iantorno, Eric Iantorno, Jordan Iantorno a/c/f Max Iantorno, Michael Winters and George Moncada; (g) two payments of principal each in the amount of $300,000 and interest with respect thereto on February 28, 2006 and March 31, 2006
with respect to the Subordinated Obligations issued to Michael Tubb; and (h) scheduled quarterly payments of interest with respect to the Crestview Note commencing on June 30, 2005 and payment of the entire unpaid principal balance and accrued
interest thereon on May 13, 2006, or earlier after the closing of the Offering (as defined in the Crestview Note); provided that, in each such case (i.e., clauses (a) through (h) above), both before and after giving effect to any such
payment and any Loans funded in connection therewith, (i) no default or Event of Default has occurred and is continuing or would result after giving effect thereto and (ii) such payment shall be made at such times as will permit the delivery of
financial statements necessary to determine current compliance with the financial covenants set forth herein prior to each such payment; provided, further, that in the case of clauses (b), (c), (d), (e), (f), (g) and (h) above, both
before and after giving effect to any such payment and any Loans funded in connection therewith, the aggregate unrestricted cash of Borrower and availability in the Borrowing Base shall equal or exceed $1,000,000.” 
  
 Section 3. Consent. In reliance on the information previously
provided by Borrower to Lender regarding the Proposed Transaction, including but not limited to the fully executed Note Purchase Agreement (together with any and all exhibits and schedules thereto and all agreements and instruments executed in
connection therewith), Lender hereby consents to the Proposed Transaction on the terms and conditions set forth in the Note Purchase Agreement as in effect on the date hereof. 
  
 Section 4. Confirmation of Representations and Warranties. Each Borrower hereby (a) confirms that all of the
representations and warranties set forth in Article IV of the Loan Agreement are true and correct with respect to such entity (except to the extent such representation or warranty relates to a particular date, in which case, such confirmation
relates to such date), and (b) specifically represents and warrants to Lender that it has good and marketable title to all of its Collateral, free and clear of any lien or security interest in favor of any other person or entity. 
  
 Section 5. Fees; Expenses. Notwithstanding anything in this
Amendment to the contrary, Borrower shall be responsible for payment of legal fees for the services of Lender’s in-house counsel in connection with the preparation of this Amendment. Lender shall be entitled to deduct, and Borrower by its
signature below hereby authorizes Lender to deduct, the full amount of the fees set forth in this Section 6 from the proceeds of the next subsequent Revolving Credit Loan made by Lender under the Loan Agreement (as amended hereby). 
  
 Section 6. Enforceability. This Amendment constitutes the
legal, valid and binding obligation of each Borrower and Lender, and is enforceable against each Borrower and Lender in accordance with its terms. 
  

 5 

 Section 7. Conditions to Effectiveness. This Amendment shall become effective on the date
that all of the following conditions are satisfied in Lender’s sole discretion (such date, the “Effective Date”): 
  
 (a) Lender shall have received two (2) originals of this Amendment duly executed by an authorized officer of each entity comprising Borrower; 

 
 (b) Lender shall have received fully executed copies of the Crestview
Note, and all other agreements and instruments executed in connection therewith; 
  
 (c) the issuance of the Crestview Note shall have been consummated in accordance with the terms of the Note Purchase Agreement (and all other agreements and instruments executed in connection therewith) as in effect
on the date hereof; 
  
 (d) Lender shall have received a
Subordination Agreement, duly executed by an authorized officer of each entity comprising Borrower and Crestview Capital Master, LLC; 
  
 (e) there shall have occurred and be continuing no Event of Default and no event which, with the giving of notice or the lapse of time or both, could
constitute such an Event of Default and, after giving effect to this Amendment, there shall have occurred no Event of Default and no Event which, with the giving of notice or lapse of time or both, could constitute an Event of Default; and

  
 (f) the representations and warranties set forth in Section 4
of this Amendment and in Article IV of the Loan Agreement shall be true and correct as of the date hereof and after giving effect to this Amendment (unless any such representation or warranty by its terms is intended to refer specifically to any
earlier date, in which case such representation or warranty shall have been true and correct as of such date). 
  
 Section 8. Reference to the Effect on the Loan Agreement. 
  
 (a) Upon the effectiveness of this Amendment, each reference in the Loan Agreement to “this Agreement,”
“hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Loan Agreement as amended by this Amendment. 
  
 (b) Except as specifically amended above, the Loan Agreement, and all other Loan Documents, shall remain in full force and
effect, and are hereby ratified and confirmed. 
  
 (c) The
execution, delivery and effectiveness of this Amendment shall not, except as expressly provided in this Amendment, operate as a waiver of any right, power or remedy of Lender, nor constitute a waiver of any provision of the Loan Agreement, or any
other documents, instruments and agreements executed or delivered in connection with the Loan Agreement. 
  

 6 

 Section 9. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Maryland without regard to any otherwise applicable conflicts of law principles. 
  
 Section 10. Headings. Section headings in this Amendment are included for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose. 
  
 Section
11. Counterparts. This Amendment may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument. 
  
 [SIGNATURES ON NEXT PAGE] 
  

 7 

 IN WITNESS WHEREOF, the parties have caused this Amendment No. 7 and Consent to Loan and Security
Agreement to be executed as of the date first written above. 
  

			
	LENDER:
	
	GE HFS HOLDINGS, INC.,
	a Delaware corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	BORROWERS:
	
	ALLION HEALTHCARE, INC.,
	a Delaware corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	MAIL ORDER MEDS OF TEXAS, INC.,
	a Texas corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	MOMS PHARMACY, INC.,
	a New York corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 8 

			
	MOMS PHARMACY, INC.,
	a California corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	MOMS PHARMACY, LLC,
	a Florida limited liability company
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	MEDICINE MADE EASY,
	a California corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	NORTH AMERICAN HOME HEALTH SUPPLY, INC.,
	a California corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	SPECIALTY PHARMACIES, INC.,
	a Washington corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 9Registration Rigts Agreement

 Exhibit 10.4 
  
 REGISTRATION RIGHTS AGREEMENT 
  

This Registration Rights Agreement, dated May 13, 2005, is between Allion Healthcare, Inc., a Delaware corporation (“Allion”) and Crestview
Capital Master, LLC (the “Warrant Holder”). 
  
 The
Warrant Holder has been issued a warrant (the “Warrant”) to purchase shares of Common Stock, $.01 par value per share, of Allion (“Common Stock”), and Allion has agreed to grant to the Warrant Holder the registration rights
provided for herein. 
  
 The parties agree as follows: 

 
 1. Request for Registration. At any time after the IPO Date (as
defined in the Warrant), the Warrant Holder shall have the right, by written notice signed by the Warrant Holder and given to Allion (the “Demand Notice”), to request that Allion register all of the Warrant Holders’ Registrable Shares
(a “Demand Registration”) under and in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”); provided that the Warrant Holder may not give a Demand Notice prior to December 31, 2005.
Allion shall as soon as practicable, but in no event more than 60 days after the date on which Allion receives the Demand Notice, file with the Securities and Exchange Commission (the “SEC”) a registration statement on a form deemed
appropriate by Allion’s counsel covering all the Warrant Holder’s Registrable Shares, and Allion shall use its reasonable best efforts to cause the registration statement to become effective within 90 days of such filing. In the event that
a Demand Registration involves an underwritten offering and the managing underwriter or underwriters participating in such offering advise the Warrant Holder in writing that the total number of Registrable Shares to be included in such offering
exceeds the amount that can be sold in (or during the time of) such offering without delaying or jeopardizing the success of such offering (including the price per share of the Registrable Shares to be sold), then the number of Registrable Shares
(which have registration rights with respect to such offering) shall be reduced on a pro rata basis (based upon the number of shares requested or proposed to be registered by the Warrant Holder, Allion and each other holder of equity securities of
Allion eligible to register its shares in the offering) to a number deemed satisfactory by such managing underwriter or underwriters. In the event that the Warrant Holder is unable to register all of its Registrable Shares in an underwritten
offering effected in response to a Demand Registration, the Warrant Holder shall have the right to make an additional demand for registration of the remaining Registrable Shares on Form S-3 pursuant to Rule 415 under the Securities Act and shall be
entitled to issue an additional Demand Notice for such Demand Registration in accordance with this Section 1. For purposes of this Agreement, “Registrable Shares” means the shares of Common Stock of Allion issued or issuable upon exercise
of the Warrant. Registrable Shares shall cease to be such when (a) a registration statement covering such Registrable Shares has become or been declared effective and they have been disposed of pursuant to that registration statement, (b) eligible
to be sold, transferred or distributed pursuant to or in compliance with Rule 144 (or any similar provision then in force) or any other exemption from registration under the Securities Act without limitation as to volume, or (c) they have been
otherwise transferred and Allion has delivered new certificates not subject to any stop transfer order or other restriction on transfer and not bearing a legend restricting transfer in the absence of an effective registration statement. 

 Allion shall not be obligated to effect a registration pursuant to this Section 1: 
  
 (a) after Allion has already effected one registration pursuant to this
Section 1 that either did not involve an underwritten offering or involved an underwritten offering in which the Warrant Holder was not subjected to any reduction in the number of Registrable Shares it was entitled to include in such registration,
that registration has been declared or ordered effective and no stop order suspending the effectiveness of that registration statement has been issued within 30 days of that effectiveness (provided that Allion shall be deemed to have effected
a registration pursuant to this Section 1 if it files a registration statement pursuant to this Section 1 and such registration statement is subsequently withdrawn because the Warrant Holder requests for any reason whatsoever that such registration
statement be withdrawn); or 
  
 (b) if, at the time it receives a
Demand Request, Allion would be required to prepare any financial statements other than those it customarily prepares or Allion determines in good faith in its reasonable judgment that the registration and offering would interfere with any material
financing, acquisition, corporate reorganization or other material corporate transaction or development involving Allion that is pending or contemplated at the time and promptly gives the Warrant Holder written notice of that determination (in which
case Allion shall have the right to defer such filing for a period of not more than 60 days after receipt of the Demand Request). 
  
 2. “Market Stand-off” Agreement. The Warrant Holder agrees, if requested by Allion and an underwriter of Common Stock of Allion and if
imposed generally on officers and directors of Allion and acquirers of Common Stock of Allion or rights to Common Stock in acquisitions by Allion and its subsidiaries, not to sell or otherwise transfer or dispose of any Common Stock held by the
Warrant Holder during the 180-day period following the effective date of any registration statement of Allion prepared and filed under the Securities Act. If requested by the underwriters, the Warrant Holder shall execute a separate agreement to the
foregoing effect. Allion may impose stop-transfer instructions with respect to the Common Stock subject to the foregoing restriction until the end of said 180-day period. 
  
 3. Expenses of Registration. Allion shall pay all registration and filing fees, printing expenses, fees and
disbursements of counsel and independent public accountants for Allion, fees of the National Association of Securities Dealers, Inc., fees of transfer agents and registrars, and expenses of listing the Registrable Securities on any exchange or
securities market. All (a) underwriting discounts, selling commissions and brokerage fees, (b) stock transfer taxes incurred in respect of the Registrable Shares being sold, (c) fees and expenses of the Warrant Holder and their respective counsel
and (d) other fees and expenses required to be paid by the Warrant Holder under applicable law shall be borne and paid ratably by the Warrant Holder whose Registrable Securities are included in any such registration. 
  

 - 2 - 

 4. Registration Procedures. In the case of each registration effected by Allion pursuant to this
Agreement, Allion shall: 
  
 (a) keep such registration
statement effective until the Warrant Holder has completed the distribution described in the registration statement, or the Warrant has expired unexercised, or two years have elapsed from the issue date of the Warrant, whichever occurs first;

  
 (b) furnish the Warrant Holder copies of any registration
statement and each preliminary or final prospectus, or supplement or amendment required to be prepared pursuant to this agreement, as the Warrant Holder may from time to time reasonably request; 
  
 (c) prepare and promptly file with the SEC and promptly notify the Warrant
Holder of the filing of any amendments or supplements to such registration statement or prospectus as may be necessary to correct any statements or omissions if, at any time when a prospectus relating to the Registrable Shares is required to be
delivered under the Securities Act, any event with respect to Allion shall have occurred as a result of which any such prospectus or any other prospectus as then in effect would include an untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; and 
  
 (d) use its best efforts to qualify as soon as reasonably practicable the Registrable Shares included in the registration statement for sale under the
securities or blue-sky laws of such states and jurisdictions within the United States as shall be reasonably requested by the Warrant Holder; provided that Allion shall not be required in connection therewith or as a condition thereto to
qualify to do business, to become subject to taxation or to file a consent to service of process generally in any of the aforesaid states or jurisdictions. 
  
 5. Delay of Registration. The Warrant Holder shall have no right to take any action to restrain, enjoin or otherwise delay any registration as a
result of any controversy that may arise with respect to the interpretation or implementation of this agreement. 
  
 6. Indemnification. 
  
 (a) Subject to the limitations set forth below in this Section 6(a), Allion shall indemnify the Warrant Holder offering Registrable Shares for sale
pursuant to each registration that has been effected pursuant to this Agreement against all claims, losses, damages and liabilities (or actions in respect thereof) (collectively, “Losses”) arising out of or based on any untrue statement of
a material fact or alleged untrue statement of a material fact contained in any registration statement under which such Registrable Shares were registered under the Securities Act, or based on any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse such Warrant Holder for any legal or other expenses reasonably incurred in connection with investigating or defending any such
claim, loss, damage, liability or action; provided, however, that Allion shall pay for only one counsel for the Warrant Holder and Allion shall not be liable to the Warrant Holder in any such case (i) to the extent that any such Losses
arise out of or are based on or result from any untrue statement or alleged untrue statement or 
  

 - 3 - 

 omission or alleged omission made in such registration statement based upon written information furnished to Allion by
such Warrant Holder or (ii) in the case of a sale directly by the Warrant Holder of Registrable Shares (including a sale of such Registrable Shares through any underwriter retained by such Warrant Holder engaging in a distribution on behalf of such
Warrant Holder), such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus, and the Warrant Holder failed to deliver a copy of the final
or amended prospectus at or prior to the confirmation of the sale of the Registrable Shares to the person or entity asserting any such Losses or (iii) to the extent that any such Losses arise out of or are based on or result from any other act or
omission on the part of the Warrant Holder that is inconsistent with the Warrant Holder’s obligations hereunder or a violation of law. 
  
 (b) Subject to the limitations set forth below in this Section 6(b), the Warrant Holder shall, if Registrable Shares held by it are included in the
securities as to which such registration is being effected, indemnify Allion, each of its directors and officers who sign such registration statement, each affiliate and control person of Allion, each underwriter, if any, of Allion’s securities
covered by such registration statement, and each other security holder whose securities are included in such registration, and each affiliate thereof against all Losses arising out of or based on any untrue statement or alleged untrue statement of a
material fact contained in any such registration statement under which such Registrable Shares were registered under the Securities Act, or based on any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse Allion, such directors, officers, employees, affiliates, or security holders or underwriters for any legal or any other expenses reasonably incurred in connection with
investigating or defending any such Losses; provided, however that the Warrant Holder will be liable hereunder in any such case if and only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with information pertaining to the Warrant Holder, furnished in writing to Allion by the Warrant Holder specifically for use in the
registration statement or the prospectus included therein. The liability of the Warrant Holder shall in any event be limited to the net proceeds to such Warrant Holder from the sale of the Registrable Shares. 
  
 (c) Each party entitled to indemnification under this Section 6 (the
“Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and
any claim or any litigation resulting therefrom. In case any action is brought against an Indemnified Party, and it notifies the Indemnifying Parties of the commencement thereof, the Indemnifying Party will be entitled to participate in and, to the
extent it so determines, assume the defense thereof; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval
shall not unreasonably be withheld or delayed), and the Indemnified Party may participate in such defense at such party’s expense. After notice from the Indemnifying Party of its election to so assume the defense thereof, the Indemnifying Party
will not be liable to such Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof, unless, in the opinion of counsel to the Indemnified Party, there exists a conflict
of interest between the 
  

 - 4 - 

 Indemnified Party and the Indemnifying Party, in which case, the Indemnifying Party shall pay the reasonable fees of no
more than counsel for all such Indemnified Parties. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request and as shall be reasonably required in connection
with the defense of such claim and litigation resulting therefrom. 
  
 7. Conditions to Registration. As a condition to Allion’s obligation under this Agreement to cause a registration statement to be filed or Registrable Shares to be included in a registration statement, the Warrant Holder shall
provide such information and execute such documents as may be required by the SEC in connection with such registration. Without limiting the foregoing, the Warrant Holder may not participate in any registration under this agreement which is
underwritten unless the Warrant Holder (a) agrees to sell its securities on the basis provided in any such underwriting 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. 
  
 8. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered by courier, or if mailed, when mailed by
United States first-class, certified or registered mail, postage prepaid, to the other party at the following addresses or by telecopy, receipt confirmed (or at such other address as shall be given in writing by any party to the other): 

 
 If to Allion, to: 
  
 Allion Healthcare, Inc. 
 1660 Walt Whitman Road 
 Melville, New York 11747 
 Fax: (631) 547-6532 
 Attention: Michael P. Moran 
  
 With a copy to: 
  
 Nixon Peabody LLP 
 990 Stewart Avenue, 3rd Floor 
 Garden City, New York 11530 
 Fax: (516) 832-7555 
 Attention: Allan H. Cohen 
  
 If to Warrant Holder, to:

  
 95 Revere Drive 
 Suite A 
 Northbrook, IL 60062 
 Fax: 847-599-5807 
 Attention: Stewart Flink 
  

 - 5 - 

 9. Successors and Assigns. This Agreement, and all rights and powers granted hereby, will bind and
inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law provisions thereof. 
  
 11. Consent to Jurisdiction. The parties hereby agree that any action,
proceeding or claim against it arising out of, or relating in any way to, this Agreement may be brought and enforced in the courts of the State of New York or of the United States of America located in the County of New York, State of New York, and
irrevocably submits to such jurisdiction for such purpose. The parties hereby irrevocably waive any objection to such exclusive jurisdiction or inconvenient forum. 
  
 12. Headings. The headings preceding the text of the sections and subsections hereof are inserted solely for
convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction, or effect. 
  
 13. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but which together shall
constitute one and the same instrument. Facsimile copies of original signatures shall be effective as original signatures. 
  
 14. Entire Agreement. This Agreement sets forth all of the promises, covenants, agreements, conditions and undertakings between the parties hereto
with respect to the subject matter hereof and supersede all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written. This Agreement may not be amended except by an instrument in writing
signed by the party sought to be charged with effect of such amendment. 
  
 [end of text; signature page follows] 
  

 - 6 - 

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

  

					
	 	 	 ALLION HEALTHCARE, INC.

			
	 	 	 By:
	 	  

	 	 	 Name:
	 	 Michael P. Moran

	 	 	 Title:
	 	 President & Chief Executive Officer

		
	 	 	 CRESTVIEW CAPITAL MASTER, LLC

			
	 	 	 By:
	 	  

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 - 7 -

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