Document:

Exhibit 10.3 RedPath Guarantee and Collateral Agreement

GUARANTEE AND COLLATERAL AGREEMENT
dated as of October 31, 2014
among
PDI, INC.,
GROUP DCA, LLC,
EMTERPACE BIOPHARMA, LLC,
INTERPACE DIAGNOSTICS, LLC,
JS GENETICS, INC., REDPATH ACQUISITION SUB, INC.
as Grantors,
and
REDPATH EQUITYHOLDER REPRESENTATIVE, LLC,
as Lender

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GUARANTEE AND COLLATERAL AGREEMENT
GUARANTEE AND COLLATERAL AGREEMENT, dated as of October 31, 2014 (as may be amended, restated, supplemented, or otherwise modified from time to time, this “Agreement”), made by each signatoiy hereto (together with any other Person that becomes a party hereto as provided herein, “Grantors”), in favor of RedPath Equityholder Representative, LLC, a Delaware limited liability company (together with its successors and assigns, “Lender”).
Lender has agreed to extend credit to PDI, Inc. and Interpace Diagnostics, LLC (collectively, the “Borrowers”) pursuant to the Loan Documents (as hereinafter defined).  The Borrowers are affiliated with each other Grantor.  The Borrowers and the other Grantors are engaged in interrelated businesses, and each Grantor will derive substantial direct and indirect benefit from the extension of credit under the Loan Documents.  It is a condition precedent to Lender’s obligation to extend credit under the Loan Documents that Borrowers and Grantors shall have executed and delivered this Agreement to Agent for the benefit of the Lender.
In consideration of the premises and to induce Lender to enter into the Loan Documents and to induce Lender to extend credit thereunder, each Grantor hereby agrees with Lender, as follows:
		
	1.
	Definitions.

1.1.    Unless otherwise defined herein, the following terms are used herein as defined in the Code: Accounts, Certificated Security, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel Paper, Equipment, Farm Products, Goods, Health-Care-Insurance Receivables, Instruments, Inventory, Money, Letter-of-Credit Rights, Software and Supporting Obligations.
1.2.    When used herein the following terms shall have the following meanings:
Affiliate of any Person means (a) any other Person which, directly or indirectly, controls or is controlled by or is under common control with such Person, (b) any employee, manager, officer or director of such Person and (c) with respect to Lender, any entity administered or managed by such Lender or an Affiliate or investment advisor thereof which is engaged in making, purchasing, holding or otherwise investing in commercial loans.  For purposes of the definition of the term “Affiliate”, a Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly or indirectly, power to vote ten percent (10%) or more of the securities (on a fully diluted basis) having ordinaiy voting power for the election of directors or managers or power to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.  Unless expressly stated otherwise herein, Lender shall not be deemed an Affiliate of Borrowers or of any Subsidiaiy.
Agreement has the meaning set forth in the preamble hereto.  
Borrower Obligations means all Obligations of Borrowers.  
Closing Date shall mean the date of this Agreement.

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Code means the Uniform Commercial Code as in effect in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Code as in effect in a jurisdiction other than the State of New York, “Code” means the Uniform Commercial Code, as applicable if the context requires, as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.
Collateral has the meaning set forth in Section 3 hereof.  Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof.
Collateral Access Agreement means an agreement in form and substance reasonably satisfactoiy to Lender pursuant to which a mortgage or lessor of real property on which Collateral (or any books and records) is stored or otherwise located, to a warehouseman, processor or other bailee of Inventory or other property owned by any Loan Party, acknowledges the Liens of Lender and waives (or, if approved by Lender, subordinates) any Liens held by such Person on such property and, in the case of any such agreement with a mortgagee or lessor, permits Lender reasonable access to any Collateral stored or otherwise located thereon.
Collateral Documents means this Agreement, the IP Security Agreement, each deposit account control agreement and each other agreement or instrument pursuant to or in connection with any Loan Party or any other Person grants a Lien in any Collateral to Lender.
Copyrights shall mean all of Borrowers’ (or if referring to another Person, such other Person’s) now existing or hereafter acquired right, title, and interest in and to: (i) copyrights, rights and interests in copyrights, works protectable by copyright, all applications, registrations and recordings relating to the foregoing as may at any time be filed hi the United States Copyright Office or in any similar office or agency of the United States, any State thereof or any political subdivision thereof, or in any other country, and all research and development relating to the foregoing; and (ii) all renewals of any of the foregoing.
Copyright Licenses means all written agreements naming any Grantor as licensor or licensee, including those listed on Schedule 5, granting any right under any Copyright, including the grant of rights to manufacture, distribute, exploit and sell materials derived from any Copyright (other than agreements relating to widely-available software subject to “shrink-wrap” or “click-through” software licenses).
Default means any event that, if it continues uncured, will, with the lapse of time or the giving of notice or both constitute an Event of Default.
Deposit Account shall mean, individually and collectively, any bank or other depository accounts of a Loan Party.
Diagnostic Company means a privately held molecular diagnostics company that is subject to a confidential disclosure agreement with Borrowers.

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Diagnostic Company Note means that certain Promissory Note, dated as of March 18, 2014, by the Diagnostic Company, in favor of PDI, Inc., a Delaware corporation, in the principal amount of up to $810,000, which principal amount was subsequently reduced to a principal amount of $500,000 pursuant to the terms of the JS Genetics Stock Purchase Agreement.
Dollar and $ mean lawful money of the United States of America.
Excluded Property means, with respect to a Grantor: (i) any item of General Intangibles or other property that is now or hereafter held by such Grantor but only to the extent that such item of General Intangibles or property, including, for the avoidance of doubt, Intellectual Property (or any agreement evidencing such item of General Intangibles or property) contains a term or is subject to a rule of law, statute or regulation that restricts, prohibits, or requires a consent (that has not been obtained) of a Person (other than such Grantor) to, the creation, attachment or perfection of the security interest granted herein, and any such restriction, prohibition and/or requirement of consent is effective and enforceable under applicable law and is not rendered ineffective by applicable law (including, without limitation, pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Code); provided, however, that (x) Excluded Property shall not include any Proceeds of any item of General Intangibles or other property described in this definition, and (y) any item of General Intangibles or such other property described in this definition that at any time ceases to satisfy the criteria for Excluded Property (whether as a result of the applicable Grantor obtaining any necessary consent, any change in any rule of law, statute or regulation, or otherwise) shall no longer be Excluded Property; (ii) trademark applications filed in the United States Patent and Trademark Office on the basis of such Grantor’s “intent to use” such trademark, unless and until acceptable evidence of use of the Trademark has been filed with the United States Patent and Trademark Office pursuant to Section l(c) or Section l(d) of the Lanham Act (15 U.S.C. 1051, et seq.), to the extent that granting a Lien in such Trademark application prior to such filing would adversely affect the enforceability or validity of such Trademark application; and (iii) the Borrowers’ account no. 65-P204-01-2 at TD Wealth Private Client Group, a division of TD Bank, N.A. and all property now or hereafter held in such securities account and any proceeds thereof and (iv) any asset subject to a Permitted Lien (other than Liens in favor of Lender and the Senior Agent in connection with the Senior Credit Agreement) securing obligations permitted under Senior Credit Agreement to the extent that the grant of other Liens on such asset (A) would result in a breach or violation of, or constitute a default under, the agreement or instrument governing such Permitted Lien, (B) would result in the loss of use of such asset or (C) would permit the holder of such Permitted Lien to terminate the Grantor’s use of such asset.
Electronic Chattel Paper under Section 9-105 of the Code of such electronic chattel paper or control under Section 201 of the federal Electronic Signatures in Global and National Commerce Act or, as the case may be, §16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction Environmental Laws means all present or future foreign, federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case relating to any matter arising out of or relating to the effect of the environment on health and safety, or pollution or protection of the environment or workplace, including any of the foregoing relating to the presence, use, production, 

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generation, handling, transport, treatment, storage, disposal, distribution, discharge, release, control or cleanup of any Hazardous Substance.
Event of Default means any of the events described in Section 9 of the Note.
Exempt Accounts means any Deposit Accounts, securities accounts or other similar accounts (i) into which there are deposited no funds other than those intended solely to cover compensation to employees of the Loan Parties (and related contributions to be made on behalf of such employees to health and benefit plans) plus balances for outstanding checks for compensation and such contributions from prior periods; or (ii) constituting employee withholding accounts and contain only funds deducted from pay otherwise due to employees for services rendered to be applied toward the tax obligations of such Person or its employees.
Farm Products means
Governmental Authority means any nation or government, any state or other political subdivision thereof, and any agency, branch of government, department or Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation or other Person owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing, whether domestic or foreign.  Governmental Authority shall include any agency, branch or other governmental body charged with the responsibility and/or vested with the authority to administer and/or enforce any Health Care Laws.
Fixtures mean all of the following, whether now owned or hereafter acquired by a Grantor: plant fixtures; business fixtures; other fixtures and storage facilities, wherever located; and all additions and accessories thereto and replacements therefor.
General Intangibles means all “general intangibles” as such term is defined in Section 9-102(a)(42) of the Code and, in any event, including with respect to any Grantor, all contracts, agreements, instruments and indentures in any form, and portions thereof, to which such Grantor is a party or under which such Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the same from time to time may be amended, supplemented or otherwise modified, including, without limitation, (a) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (b) all rights of such Grantor to damages arising thereunder and (c) all rights of such Grantor to perform and to exercise all remedies thereunder.
Guarantor Obligations means, collectively, with respect to each Guarantor, all payment and performance obligations of such Guarantor hereunder or under any other Loan Document to which such Guarantor is party.
Guarantors mean the collective reference to each Grantor other than the Borrowers.
Guaranty means this Agreement.
Health Care Laws mean, to the extent applicable to a Loan Party, all foreign, federal and 

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state fraud and abuse laws relating to the regulation of pharmaceutical products, laboratory facilities and services, healthcare providers, healthcare professionals, healthcare facilities, clinical research facilities or healthcare payors, including but not limited to (i) the federal Anti-Kickback Statute (42 U.S.C. (§ 1320a-7b(b)), the Stark Law (42 U.S.C. §1395nn and §1395(q)), the civil False Claims Act (31 U.S.C. §3729 et seq.), TRICARE (10 U.S.C. Section 1071 et seq.), Section 1320a-7 and 1320a-7a of Title 42 of the United States Code and the regulations promulgated pursuant to such statues; (ii) the Health Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191), as amended by the Health Information, Technology for Economic and Clinical Health Act of 2009 (collectively, “HTPPA”), and the regulations promulgated thereunder, (iii) Medicare (Title XVIII of the Social Security Act) and the regulations promulgated thereunder; (iv) Medicaid (Title XIX of the Social Security Act) and the regulations promulgated thereunder; (v) the FD&C Act and all applicable requirements, regulations and guidances issued thereunder by the FDA (including FDA Law and Regulation); (vi) the Controlled Substances Act, as amended, and all applicable requirements, regulations and guidances issued thereunder by the DEA; (vii) CLIA, as amended, and all applicable requirements, regulations, and guidance issued thereunder by the applicable Governmental Authority; (viii) quality, safety and accreditation standards and requirements of all applicable foreign and domestic federal, provincial or state laws or regulatory bodies; (ix) all applicable licensure laws and regulations; (x) all applicable professional standards regulating healthcare providers, healthcare professionals, healthcare facilities, clinical research facilities or healthcare payors; and (xi) any and all other applicable health care laws (whether foreign or domestic), regulations, manual provisions, policies and administrative guidance, including those related to the corporate practice of medicine, fee-splitting, state anti-kickback or self-referral prohibitions, each of clauses (i) through (xi) as may be amended from time to time.
Identified Claims means the Commercial Tort Claims described on Schedule 7 as such schedule may be supplemented from time to time.
Intellectual Property shall mean all present and future: trade secrets, know-how and other proprietary information; Trademarks and Trademark Licenses, internet domain names, service marks, trade dress, trade names, business names, designs, logos, slogans (and all translations, adaptations, derivations and combinations of the foregoing) indicia and other source and/or business identifiers, and the goodwill of the business relating thereto and all registrations or applications for registrations which have heretofore been or may hereafter be issued thereon throughout the world; Copyrights (including Copyrights for computer programs, but excluding commercially available off-the-shelf software and any Intellectual Property rights relating thereto) and Copyright Licenses, and all tangible and intangible property embodying the Copyrights, unpatented inventions (whether or not patentable); Patents and Patent Licenses; industrial design applications and registered industrial designs; license agreements related to any of the foregoing and income therefrom, books, records, writings, computer tapes or disks, flow diagrams, specification sheets, computer software, source codes, object codes, executable code, data, databases and other physical manifestations, embodiments or incorporations of any of the foregoing; customer lists and customer information, the right to sue for all past, present and future infringements of any of the foregoing; all other intellectual property; and all common law and other rights throughout the world in and to all of the foregoing.

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Intercompany Note means any promissory note evidencing loans made by any Grantor to any other Grantor or its Affiliate.
Investment Property means the collective reference to (a) all “investment property” as such term is defined in Section 9-102(a)(49) of the Code (other than the equity interest of any Subsidiaiy excluded from the definition of Pledged Equity), (b) all “financial assets” as such term is defined in Section 8-102(a)(9) of the Code, and (c) whether or not constituting “investment property” as so defined, all Pledged Notes and all Pledged Equity.
IP Security Agreements means the Intellectual Property Security Agreements dated on or about the Closing Date by each Loan Party signatory thereto in favor of Lender.
Intercreditor Agreement means the Subordination and Intercreditor Agreement among Lender, Borrowers and SWK Funding, LLC as agent for the lenders under the Senior Credit Agreement together with any amendments or modifications thereto.
Issuers mean the collective reference to each issuer of any Investment Property.
JS Genetics Stock Purchase Agreement means that certain Stock Purchase Agreement, dated as of August 20, 2014, by and between the Diagnostic Company and PDI, Inc.
Legal Costs means, with respect to any Person, all reasonable, duly documented, out-of-pocket fees and charges of any counsel, accountants, auditors, appraisers, consultants and other professionals to such Person, and all court costs and similar legal expenses.
Loan Party means Borrowers and each of its Subsidiaries.
Lien means, with respect to any Person, any interest granted by such Person in any real or personal property, asset or other right owned or being purchased or acquired by such Person which secures payment or performance of any obligation and shall include any mortgage, lien, encumbrance, charge or other security interest of any kind, whether arising by contract, as a matter of law, by judicial process or otherwise.
Loan or Loans means the loan and other financial accommodations made by Lender to the Borrowers as evidenced by the Note.
Loan Documents means this Agreement, the Note, the Collateral Documents, the Intercreditor Agreement and all documents, instruments and agreements delivered in connection with the foregoing.
Material Adverse Effect means (a) a material adverse change in, or a material and adverse effect upon, the financial condition, operations, assets, business or properties of the Loan Parties taken as a whole, (b) a material impairment of the ability of any Loan Party to perform any of its payment Obligations under any Loan Document or (c) a material and adverse effect upon any material portion of the Collateral under the Collateral Documents or upon the legality, validity, binding effect or enforceability against any Loan Party of any material Loan Document.  For the avoidance of doubt, the investigation, inspection, examination, audit or view of the operations of 

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any Loan Party in the ordinary course of business by any Governmental Authority shall not in itself be deemed to be a Material Adverse Effect or be deemed to be an event that could or would reasonably be expected to result in or have a Material Adverse Effect.
Note means that certain Non-Negotiable Secured Subordinated Promissory Note issued by Borrowers in favor of Lender in the original principal amount of $11,000,000 dated October 31, 2014 together with all renewals, extensions, amendments, modifications or restatements thereof.
Obligations means all liabilities, indebtedness and obligations (monetary, including post-petition interest, allowed or not) or otherwise), of Borrowers, Guarantors or any Loan Party under the Note, this Agreement, the IP Security Agreements or any other Loan Documents or any other document or instrument executed in connection herewith or therewith, which are owed to any Lender or Affiliate of a Lender, in each case howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due.
Paid in Full, Pay in Full or Payment in Full means, with respect to any Obligations, the payment in full in cash of all such Obligations (other than contingent indemnification obligations, yield protection and expense reimbursement to the extent no claim giving rise thereto has been asserted in respect of contingent indemnification obligations, and to the extent no amounts therefor have been asserted, in the case of yield protection and expense reimbursement obligations).
Patents shall mean all of Borrowers’ or Grantors’ (or if referring to another Person, such other Person’s) now existing or hereafter acquired right, title and interest in and to: (i) all patents, patent applications, inventions, invention disclosures and improvements, and all applications, registrations and recordings relating to the foregoing as may at any time be filed in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any political subdivision thereof, or in any other country, and all research and development relating to the foregoing; and (ii) the reissues, divisions, continuations, renewals, extensions and continuations-in-part of any of the foregoing.
Patent Licenses means all agreements, whether written or oral, providing for the grant by or to any Grantor of any right to manufacture, use or sell any invention covered in whole or in part by a Patent, including any of the foregoing referred to in Schedule 5.
Permitted Liens has the meaning ascribed such term in the Senior Credit Agreement as in effect as of Closing Date.
Person means any natural person, corporation, partnership, trust, limited liability company, association, Governmental Authority or unit, or any other entity, whether acting in an individual, fiduciary or other capacity.
Pledged Equity means the equity interests listed on Schedule 1, as amended from time to time, together with any other equity interests, certificates, options or rights of any nature whatsoever in respect of the equity interests of any Person that may be issued or granted to, or held by, any Grantor while this Agreement is in effect.

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Pledged Notes means all promissory notes listed on Schedule 1, all Intercompany Notes at any time issued to any Grantor and all other promissory notes issued to or held by any Grantor (other than the Diagnostic Company Note and promissory notes issued in connection with extensions of trade credit by any Grantor in the ordinary course of business).
Proceeds means all “proceeds” as such term is defined in Section 9-102(a)(64) of the Code and, in any event, shall include all dividends or other income from the Investment Property, collections thereon or distributions or payments with respect thereto.
Receivable means any right to payment for goods sold or leased or for services rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has been earned by performance (including any Accounts).
Secured Obligations means, collectively, all Borrower Obligations and Guarantor Obligations.
Securities Act means the Securities Act of 1933, as amended.
Senior Agent means SWK Funding, LLC as Agent for the lenders under the Senior Credit Agreement.
Senior Credit Agreement means that certain Credit Agreement among Borrowers, Senior Agent, and the lenders party thereto dated as of the Closing Date together with all amendments, renewals, extensions and modifications thereto to the extent permitted under the Intercreditor Agreement.
Subsidiary means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which such Person owns, directly or indirectly, such number of outstanding shares or other equity interests as to have more than fifty percent (50%) of the ordinary voting power for the election of directors or other managers of such corporation, partnership, limited liability company or other entity.  Unless the context otherwise requires, each reference to Subsidiaries herein shall be a reference to direct and indirect Subsidiaries of Borrowers.
Trademarks shall mean all of Grantors’ (or if referring to another Person, such other Person’s) now existing or hereafter acquired right, title, and interest in and to: (i) all of Borrowers’ (or if referring to another Person, such other Person’s) trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos, other business identifiers, all applications, registrations and recordings relating to the foregoing as may at any time be filed in the United States Patent and Trademark Office or in any similar office or agency of the United States, or in any other country, and all research and development relating to the foregoing; (ii) all renewals thereof; and (iii) all designs and general intangibles of a like nature.
Trademark Licenses means, collectively, each agreement, whether written or oral, providing for the grant by or to any Grantor of any right to use any Trademark, including any of the foregoing referred to in Schedule 5.

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	2.
	Guarantee.

2.1.    Guarantee.
(a)    Each of the Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees to Lender and its respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by Borrowers when due (whether at the stated maturity, by acceleration or otherwise) of the Borrower Obligations.
(b)    The guarantee contained in this Section 2 shall remain in full force and effect until all of the Secured Obligations shall have been Paid in Full.
(c)    No payment made by Borrowers, any of the Guarantors, any other guarantor or any other Person or received or collected by Lender from Borrowers, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Secured Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Secured Obligations or any payment received or collected from such Guarantor in respect of the Secured Obligations), remain liable for the Secured Obligations up to the maximum liability of such Guarantor hereunder until the Secured Obligations are Paid in Full.
2.2.    Right of Contribution.  Each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2 shall in no respect limit the obligations and liabilities of any Guarantor to Lender, and each Guarantor shall remain liable to Lender for the full amount guaranteed by such Guarantor hereunder.
2.3.    No Subrogation.  Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor by Lender, no Guarantor shall be entitled to be subrogated to any of the rights of Lender against Borrowers or any other Guarantor or any collateral security or guarantee or right of offset held by Lender for the payment of the Secured Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from Borrowers or any other Guarantor in respect of payments made by such Guarantor hereunder, until all of the Secured Obligations are Paid in Full.  If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Secured Obligations shall not have been Paid in Full, such amount shall be held by such Guarantor in trust for Lender, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be promptly turned over to Lender in the exact form received by such Guarantor (duly indorsed (but without any representation or warranty) by such Guarantor to Lender, if required), to be applied against the Secured Obligations, whether matured or unmatured.

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2.4.    Amendments, etc. with Respect to the Secured Obligations.  Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Secured Obligations made by Lender may be rescinded by Lender and any of the Secured Obligations continued, and the Secured Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by Lender, and the Loan Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as Lender may deem advisable from time to time (provided that any such amendment, modification, supplement or termination complies with the relevant provisions of the Loan Documents, this Agreement and/or such Loan Document), and any collateral security, guarantee or right of offset at any time held by Lender for the payment of the Secured Obligations may be sold, exchanged, waived, surrendered or released to the extent permitted by this Agreement and the Loan Documents.  Lender shall have no obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Secured Obligations or for the guarantee contained in this Section 2 or any property subject thereto.
2.5.    Guarantee Absolute and Unconditional; Waivers.
(a)    Each Guarantor agrees that this Guaranty is a guaranty of payment and performance when due and not of collectability.  The liability of Guarantor under this Guaranty shall be absolute, irrevocable and unconditional irrespective of:
		
	(i)
	any lack of validity, regularity or enforceability of any Loan Document; (ii) any lack of validity, regularity or enforceability of this Agreement;

		
	(ii)
	any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document;

		
	(iii)
	any exchange, release or non-perfection of any security interest in any Collateral, or any release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Secured Obligations;

		
	(iv)
	any failure on the part of Lender or any other Person to exercise, or any delay in exercising, any right under any Loan Document; and

		
	(v)
	any other circumstance which might otherwise constitute a defense available to, or a discharge of, Borrowers, any Guarantor or any other guarantor with respect to the Secured Obligations (including, without limitation, all defenses based on suretyship or impairment of collateral, and all defenses that Borrowers may assert to the 

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repayment of the Secured Obligations, including, without limitation, failure of consideration, breach of warranty, payment, statute of frauds, bankruptcy, lack of legal capacity, lender liability, accord and satisfaction, and usury), this Agreement and the obligations of Guarantor under this Agreement, other than payment in full of the Guarantor Obligations.
(b)    Each Guarantor hereby agrees that if Borrowers or any other guarantor of all or a portion of the Secured Obligations is the subject of a bankruptcy or insolvency case under applicable law, it will not assert the pendency of such case or any order entered therein as a defense to the timely payment of the Secured Obligations.  Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Secured Obligations and notice of or proof of reliance by Lender upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Secured Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2, and all dealings between Borrowers and any of the Guarantors, on the one hand, and Lender, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2. Each Guarantor waives (i) diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon Borrowers or any of the Guarantors with respect to the Secured Obligations; (ii) notice of the existence or creation or renewal or non-payment of all or any of the Secured Obligations; (iii) all diligence in collection or protection of or realization upon any Secured Obligations or any security for or guaranty of any Secured Obligations; (iv) any right to require Lender, as a condition of payment or performance by Guarantor, to (A) proceed against Borrowers, any other guarantor of the Guarantor Obligations or any other Person, (B) proceed against or exhaust any security held from Borrowers, any such other guarantor or any other Person, (C) proceed against or have resort to any balance of any deposit account or credit on the books of Lender in favor of Borrowers or any other Person or (D) pursue any other remedy in the power of Lender whatsoever; (v) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of Borrowers or any other Guarantor including any defense based on or arising out of the lack of validity or the unenforceability of the Guarantor Obligations or any agreement or instrument relating thereto or by reason of the cessation of the liability of Borrowers or any other Guarantor from any cause other than payment in full of the Guarantor Obligations; (vi) any defense based upon Lender’s errors or omissions in the administration of the Guarantor Obligations, except errors and omissions resulting from Lender’s negligence, bad faith, or willful misconduct and (vii)(A) any legal or equitable discharge of Guarantor’s obligations hereunder and (B) any rights to set-offs, recoupments and counterclaims.
(c)    When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, Lender may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against Borrowers, any other Guarantor or any other Person or against any collateral security or guarantee for the Secured Obligations or any right of offset with respect thereto, and any failure by Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from Borrowers, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee 

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or to exercise any such right of offset, or any release of Borrowers, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of Lender against any Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.  Each Guarantor agrees that it is not a surety for purposes of any state statutes providing defenses for sureties, and each Guarantor waives any right that it may have under such statutes to assert the applicability thereof to the provisions of this Agreement to require that Lender commence action against Borrowers or any other Person or against any of the Collateral.
(d)    Lender may, from time to time, at its sole discretion and without notice to any Guarantor (or any of them), take any or all of the following actions: (i) retain or obtain a security interest in any property to secure any of the Secured Obligations or any obligation hereunder, (ii) retain or obtain the primary or secondary obligation of any obligor or obligors with respect to any of the Secured Obligations, (iii) extend or renew any of the Secured Obligations for one or more periods (whether or not longer than the original period), alter or exchange any of the Secured Obligations, or release or compromise any obligation of any Guarantor or any obligation of any nature of any other obligor with respect to any of the Secured Obligations, (iv) release any guaranty or right of offset or its security interest in, or surrender, release or permit any substitution or exchange for, all or any part of any property securing any of the Secured Obligations or any obligation hereunder, or extend or renew for one or more periods (whether or not longer than the original period) or release, compromise, alter or exchange any obligations of any nature of any obligor with respect to any such property, and (v) resort to any Guarantor for payment of any of the Secured Obligations when due, whether or not Lender shall have resorted to any property securing any of the Secured Obligations or any obligation hereunder or shall have proceeded against any other Guarantor or any other obligor primarily or secondarily obligated with respect to any of the Secured Obligations.
2.6.    Payments.  Each Guarantor hereby guarantees that payments hereunder will be paid to Lender without set-off or counterclaim in Dollars at the office of Lender.
		
	3.
	Grant of Security Interest.

(a)    Each Grantor hereby assigns and transfers to Lender, and hereby grants to Lender and (to the extent provided herein) its Affiliates, a security interest in all of the following:
		
	(i)
	all of each Grantor’s right, title and interest in and to all of such Grantor’s assets, including any and all personal property, Accounts, Chattel Paper (including Electronic Chattel Paper), Deposit Accounts, Documents, Equipment, Farm Products, Fixtures, General Intangibles, Goods, Health-Care-Insurance Receivables, Instruments, Intellectual Property, Inventory, Investment Property, Letter-of-Credit Rights, Software, Money, Supporting Obligations and Identified Claims, in each case whether now owned or at any time hereafter acquired or arising,

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	(ii)
	all books and records pertaining to any of the foregoing, (iii) all Proceeds and products of any of the foregoing, and

		
	(iii)
	all collateral security and guarantees given by any Person with respect to any of the foregoing,

(all of the foregoing, collectively, the “Collateral”), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Secured Obligations; provided, that the Collateral shall not include the Excluded Property.
(b)    Each Grantor shall promptly notify Lender of any Commercial Tort Claims related to the Loans in which such Grantor has an interest arising after the Closing Date and shall provide all necessary information concerning each such Commercial Tort Claim and make all necessary filings with respect thereto to perfect Lender’s first-priority security interest (subject to Permitted Liens) therein.
(c)    Each Grantor has full right and power to grant to Lender, for the benefit of Lender, a perfected, first-priority security interest (subject to Permitted Liens) and Lien on the Collateral pursuant to this Agreement, subject to no transfer or other restrictions or Liens of any kind in favor of any other Person (subject to any Permitted Liens).  Except with respect to any financing statement (i) securing debt to be paid off as of the Closing Date, (ii) securing Permitted Liens, or (iii) filed on behalf of Lender, no financing statement relating to any of the Collateral is on file in any public office.  No Grantor is party to any agreement, document or instruction that conflicts with this Section 3.
(d)    Each Grantor hereby authorizes Lender to prepare and file financing statements provided for by the Code and to take such other action as may be required, in Lender’s sole discretion, to perfect and to continue the perfection of Lender’s security interest in the Collateral.
(e)    Irrespective of any provision in this Agreement, the prior consent of Lender shall not be required in connection with the licensing or sublicensing of Intellectual property pursuant to collaborations, licenses or other strategic transactions with third parties (“Permitted Licenses”) executed in the normal course of Borrowers’ business.
		
	4.
	Representations and Warranties.

To induce Lender to enter into the Loan Documents and to induce Lender to extend credit to Borrowers thereunder, each Grantor jointly and severally hereby represents and warrants to Lender that:
4.1.    Title; Other Liens.  Except for Permitted Liens and Liens granted in favor of the Senior Agent in connection with the Senior Credit Agreement, the Grantors own each item of the Collateral that they purport to own free and clear of any and all Liens or claims of others.  As of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), no financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public office, except filings evidencing Permitted Liens and filings for which 

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termination statements have been delivered to Lender or filings evidencing the Liens granted in favor of the Senior Agent in connection with the Senior Credit Agreement.
4.2.    Perfected Second Priority Liens.  Each Grantor has full right and power to grant to Lender the security interests contemplated herein, and the security interests granted pursuant to this Agreement are prior to all other Liens on the Collateral in existence on the date hereof except for Permitted Liens and Liens granted in favor of the Senior Agent in connection with the Senior Credit Agreement.
4.3.    Grantor Information.  Schedule 3 sets forth, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), (a) each Grantor’s jurisdiction of organization, (b) the location of each Grantor’s chief executive office, (c) each Grantor’s exact legal name as it appears on its organizational documents, (d) each Grantor’s federal business or tax identification number, and (e) each Grantor’s organizational identification number.
4.4.    Collateral Locations.  Schedule 4 sets forth, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), (a) each place of business of each Grantor (including its chief executive office), (b) all locations where all Inventory and the Equipment owned by each Grantor is kept, which may be located at other locations within the United States, and (c) whether each such Collateral location and place of business (including each Grantor’s chief executive office) is owned or leased (and if leased, specifies the complete name and notice address of each lessor as set forth in the relevant lease).  No Collateral is located outside the United States or in the possession of any lessor, bailee, warehouseman or consignee, except as indicated on Schedule 4.
4.5.    Certain Property.  Except as set forth on Schedule 9, none of the Collateral constitutes, or is the Proceeds of, (a) Farm Products, (b) Health-Care-Insurance Receivables or (c) vessels, aircraft or any other property subject to any certificate of title or other registration statute of the United States, any state or other jurisdiction, except for personal vehicles owned by the Grantors and used by employees of the Grantors in the ordinary course of business.
4.6.    Investment Property.
(a)    The shares of Pledged Equity pledged by each Grantor hereunder constitute all the issued and outstanding equity interests of each Issuer owned by such Grantor.
(b)    All of the Pledged Equity issued by a Subsidiaiy of the Grantor has been duly and validly issued and is fully paid and nonassessable.
(c)    Each of the Intercompany Notes (if any) constitutes the legal, valid and binding obligation of the obligor with respect thereto, enforceable in accordance with its terms (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing).

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(d)    Schedule 1 lists all Investment Property owned by each Grantor as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor) (other than the Diagnostic Company Note).  Each Grantor is the record and beneficial owner of the Investment Property pledged by it hereunder that it purports to own, free of any and all Liens or options in favor of, or claims of, any other Person, except the security interest created by this Agreement and Liens in favor of the Senior Agent under the Senior Credit Agreement and, in the case of Investment Property which does not constitute Pledged Equity issued by a Subsidiary of the Grantor or Intercompany Notes, for Permitted Liens.
4.7.    Receivables.
(a)    Subject to the Intercreditor Agreement, no amount payable to such Grantor under or in connection with any Receivable is evidenced by any Instrument or Chattel Paper which has not been delivered to Lender.
(b)    The amounts represented by such Grantor to Lender from time to time as owing to such Grantor in respect of the Receivables (to the extent such representations are required by any of the Loan Documents) will at all such times be accurate in all material respects, subject to the inability to collect Receivables in the ordinary course of business.
4.8.    Intellectual Property.
(a)    Schedule 5 lists all Intellectual Property owned by each Grantor in its own name (or a former name) on the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor).
(b)    On the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), all Intellectual Property owned by any Grantor is valid, subsisting, unexpired and enforceable, has not been abandoned and, to such Grantor’s knowledge, does not infringe on the intellectual property rights of any other Person.
(c)    Except as set forth in Schedule 5, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), none of the Intellectual Property owned by a Grantor is the subject of any licensing or franchise agreement pursuant to which such Grantor is the licensor or franchisor.
(d)    Except as set forth in Schedule 5, no holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity of, or any Grantor’s rights in, any Intellectual Property owned by any Grantor.
(e)    Except as set forth in Schedule 5, no action or proceeding is pending, or, to the knowledge of such Grantor, threatened, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor) (i) seeking to limit, cancel or question the validity of any Intellectual Property or any Grantor’s ownership interest therein, or (ii) which, if adversely determined, would materially and adversely affect the value of any Intellectual Property.

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(f)    Each Grantor owns and possesses or has a license or other right to use all Intellectual Property as is necessary for the conduct of the businesses of such Grantor, without any infringement, to such Grantor’s knowledge, upon rights of others.
4.9.    Deposit Accounts and Other Accounts.  All Deposit Accounts and all other bank accounts, securities accounts and other accounts maintained by each Grantor as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), are described on Schedule 6 hereto, which description includes for each such account the name of the Grantor maintaining such account, the name, address, telephone and fax numbers of the financial institution at which such account is maintained, the account number and the account officer, if any, of such account.
4.10.    Excluded Property.  Except as set forth in Schedule 8. each Grantor represents, warrants and covenants that it does not, as of the Closing Date (or the date such Grantor joins this Agreement as it relates to such Grantor), own any Excluded Property, which when aggregated, are material to the business of such Grantor.
		
	5.
	Covenants.

Each Grantor covenants and agrees with Lender that, from and after the date of this Agreement until the Secured Obligations shall have been Paid in Full:
5.1.    Delivery of Instruments, Certificated Securities and Chattel Paper.  If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument (other than the Diagnostic Company Note) (other than, for greater certainty, a license agreement), Certificated Security or Chattel Paper, such histrument, Certificated Security or Chattel Paper shall, subject to the Intercreditor Agreement, be promptly delivered to Lender, duly indorsed in a manner reasonably satisfactoiy to Lender, to be held as Collateral pursuant to this Agreement and in the case of Electronic Chattel Paper, the applicable Grantor shall cause Lender to have control thereof within the meaning set forth in Section 9-105 of the Code.  In the event that an Event of Default shall have occurred and be continuing, upon the request of Lender, any Instrument, Certificated Security or Chattel Paper not theretofore delivered to Lender and at such time being held by any Grantor shall, subject to the Intercreditor Agreement, be immediately delivered to Lender, duly indorsed in a manner satisfactory to Lender, to be held as Collateral pursuant to this Agreement and in the case of Electronic Chattel Paper, the applicable Grantor shall cause Lender to have control thereof within the meaning set forth in Section 9-105 of the Code.
5.2.    Maintenance of Perfected Security Interest; Further Documentation.
(a)    Except as expressly permitted by this Agreement, such Grantor shall maintain the security interest created by this Agreement as a perfected security interest having at least the priority described in Section 4.2 and shall defend such security interest against the claims and demands of all Persons whomsoever, provided that, unless otherwise required by Lender in writing at any time following the occurrence and continuance of an Event of Default, such security interest need not be perfected in property of the Grantor in which a security interest may not be perfected by filing a financing statement under the Code, having a value less than $100,000 individually or 

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$350,000 in the aggregate.
(b)    Such Grantor will furnish to Lender from time to time statements and schedules further identifying and describing the assets and property of such Grantor and such other reports in connection therewith as Lender may reasonably request, all in reasonable detail.
(c)    At any time and from time to time, upon the reasonable written request of Lender, and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver, and have recorded, such further instruments and documents and take such further actions as Lender may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted, including (i) filing any financing or continuation statements under the Code (or other similar laws) in effect in any jurisdiction with respect to the security interests created hereby, (ii) in the case of Investment Property, Deposit Accounts, Electronic Chattel Paper and Letter of Credit Rights and any other relevant Collateral, taking any actions necessary to enable Lender to obtain “control” (within the meaning of Code) with respect thereto, in each case pursuant to documents in form and substance reasonably satisfactoiy to Lender, provided that so long as no Event of Default has occurred and is continuing, no Grantor shall be required to cause the Lender to have control over such Investment Property, Electronic Chattel Paper, Letter of Credit Rights or other relevant Collateral (other than any Deposit Account) having a value less than $100,000 individually or $350,000 in the aggregate and (iii) during the continuance of an Event of Default, if requested by Lender, subject to the Intercreditor Agreement, delivering, to the extent permitted by law, any original motor vehicle certificates of title received by such Grantor from the applicable secretary of state or other Governmental Authority after information reflecting Lender’s security interest has been recorded therein.
(d)    Such Grantor authorizes Lender to, at any time and from time to time, file financing statements, continuation statements, and amendments thereto that describe the Collateral (including describing the Collateral as “all assets” of each Grantor, or words of similar effect), and which contain any other information required pursuant to the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, and each Grantor agrees to furnish any such information to Lender promptly upon request.  Any such financing statement, continuation statement, or amendment may be signed (to the extent signature of a Grantor is required under applicable law) by Lender on behalf of any Grantor and may be filed at any time in any jurisdiction.
(e)    Such Grantor shall, subject to the Intercreditor Agreement, at any time and from time to time, take such steps as Lender may reasonably request for Lender (i) to obtain an acknowledgement, in form and substance reasonably satisfactoiy to Lender, of any bailee having possession of any of the Collateral (provided that such Grantor shall not be required to obtain any such acknowledgement as it relates to Collateral having a value less than $100,000 individually or $350,000 in the aggregate (unless otherwise required by Lender in writing at any time following the occurrence and continuance of an Event of Default), stating that the bailee holds such Collateral for Lender, (ii) to obtain “control” of any Letter- of-Credit Rights, or Electronic Chattel Paper (within the meaning of the code) with any agreements establishing control to be in form and substance reasonably satisfactory to Lender (provided that such Grantor shall not be required to ensure Lender 

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has “control” over any such Collateral described in this clause (ii) having a value less than $100,000 individually or $350,000 in the aggregate unless otherwise required by Lender in writing at any time following the occurrence and continuance of an Event of Default) and (iii) otherwise to insure the continued perfection and priority of Lender’s security interest in any of the Collateral and of the preservation of its rights therein to the extent required in this Agreement and the Loan Documents.
(f)    Without limiting the generality of the foregoing, if such Grantor at any time holds or acquires an interest in any Electronic Chattel Paper or any “transferable record”, as that term is defined in Section 201 of the federal Electronic Signatures in Global and National Commerce Act, or in §16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, such Grantor shall, subject to the Intercreditor Agreement, promptly notify Lender thereof and, at the request of Lender, shall take such action as Lender may reasonably request to vest in Lender “control” under Section 9-105 of the Code of such electronic chattel paper or control under Section 201 of the federal Electronic Signatures in Global and National Commerce Act or, as the case may be, § 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record.  Lender agrees with the Grantors that Lender will arrange, pursuant to procedures reasonably satisfactoiy to Lender and so long as such procedures will not result in Lender’s loss of control, for the Grantors to make alterations to such electronic chattel paper or transferable record permitted under Section 9-105 of the Code or, as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act or §16 of the Uniform Electronic Transactions Act for a party in control to make without loss of control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by any Grantor with respect to such electronic chattel paper or transferable record.
5.3.    Changes in Locations, Name, etc.  Grantor shall not, except upon 30 days’prior written notice to Lender and delivery to Lender of (a) all additional financing statements and other documents reasonably requested by Lender as to the validity, perfection and priority of the security interests provided for herein and (b) if applicable, a written supplement to Schedule 4 showing any additional location at which Inventoiy or Equipment having a value gi’eater than $100,000 at any single location:
		
	(i)
	permit any of the Inventoiy or Equipment to be kept at a location other than those listed on Schedule 4; provided, that up to $100,000 in fair market value of any such Inventory and Equipment may be kept at other locations;

		
	(ii)
	change the location of its chief executive office from that specified on Schedule 3 or in any subsequent notice delivered pursuant to this Section 5.3; or

		
	(iii)
	change its name, identity or corporate structure (including without limitation, the merger into or with any other Person).

Such Grantor shall not change its jurisdiction of organization without the prior written consent of Lender, which consent will not be unreasonably withheld or delayed.

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5.4.    Notices.  Such Grantor will advise Lender promptly, in reasonable detail, of:
(a)    any Lien (other than Permitted Liens) or Liens granted in favor of the Senior Agent in connection with the Senior Credit Agreement on any of the Collateral; and
(b)    the occurrence of any other event which could reasonably be expected to have a material and adverse effect on the aggregate value of the Collateral or on the Liens created hereby.
5.5.    Investment Property.
(a)    If such Grantor shall become entitled to receive or shall receive any certificate, option or rights in respect of the equity interests of any Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any of the Pledged Equity, or otherwise in respect thereof, such Grantor shall accept the same as the agent of Lender, hold the same in trust for Lender and, subject to the Intercreditor Agreement, deliver the same forthwith to Lender in the exact form received, duly indorsed (but without any representation or warranty) by such Grantor to Lender, if required, together with an undated instrument of transfer covering such certificate duly executed in blank by such Grantor, to be held by Lender, subject to the terms hereof, as additional Collateral for the Secured Obligations.  Upon the occurrence and during the continuance of an Event of Default, (i) any sums paid upon or in respect of the Investment Property upon the liquidation or dissolution of any Issuer shall be paid over to Lender to be held, at Lender’s option, either by it hereunder as additional Collateral for the Secured Obligations or applied to the Secured Obligations as provided in Section 6.5, and (ii) in case any distribution of capital shall be made on or in respect of the Investment Propeity or any propeity shall be distributed upon or with respect to the Investment Propeity pursuant to the recapitalization or reclassification of the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed shall, unless otherwise subject to a perfected Lien in favor of Lender and subject to the Intercreditor Agreement, be delivered to Lender to be held, at Lender’s option, either by it hereunder as additional Collateral for the Secured Obligations or applied to the Secured Obligations as provided in Section 6.5.  Upon the occurrence and during the continuance of an Event of Default, if any sums of money or property so paid or distributed in respect of the Investment Property shall be received by such Grantor, such Grantor shall, until such money or property is paid or delivered to Lender, hold such money or propeity in trust for Lender, segregated from other funds of such Grantor, as additional Collateral for the Secured Obligations.
(b)    Without the prior written consent of Lender, such Grantor will not, so long as an Event of Default has occurred and is continuing, (i) vote to enable, or take any other action to permit, any Issuer to issue any equity interests of any nature or to issue any other securities or interests convertible into or granting the right to purchase or exchange for any equity interests of any nature of any Issuer, (ii) sell, assign, transfer, exchange, or otherwise dispose of, or grant any option with respect to, the Investment Propeity or Proceeds thereof (except pursuant to a transaction expressly permitted by the Senior Credit Agreement as in effect as of the Closing) other than, with respect to Investment Propeity not constituting Pledged Equity or Pledged Notes, and such action which is not prohibited by the Senior Credit Agreement, (iii) create, incur or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Investment Property or Proceeds thereof, or any interest therein, except for Permitted Liens and Liens granted in favor 

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of the Senior Agent in connection with the Senior Credit Agreement, or (iv) enter into any agreement or undertaking restricting the right or ability of such Grantor or Lender to sell, assign or transfer any of the Investment Propeity or Proceeds thereof, except, with respect to such Investment Property, shareholders’ agreements entered into by such Grantor with respect to Persons in which such Grantor maintains an ownership interest of 50% or less.
(c)    In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be bound by the terms of this Agreement relating to the Investment Property issued by it and will comply with such terms insofar as such terms are applicable to it, (ii) it will notify Lender promptly in writing of the occurrence of any of the events described in Section 5.5(a) with respect to the Investment Propeity issued by it and (iii) the terms of Sections 6.3(c) shall apply to such Grantor with respect to all actions that may be required of it pursuant to Section 6.3(c) regarding the Investment Propeity issued by it.
5.6.    Receivables.
(a)    Other than in the ordinary course of business, without the prior written consent of Lender, such Grantor will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could materially adversely affect the value thereof, to the extent that any action in clauses (i) - (iv) above could reasonably be expected to have a Material Adverse Effect
(b)    Such Grantor will deliver to Lender a copy of each material demand, notice or document received by it that questions or calls into doubt the validity or enforceability of more than 10% of the aggregate amount of the then outstanding Receivables for all Grantors.
5.7.    Intellectual Property.
(a)    Such Grantor (either itself or through licensees) will (i) continue to use each Trademark on each and every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force free from any claim of abandonment for non-use, (ii) maintain as in the past the quality of products and services offered under such Trademark, (iii) use such Trademark with the appropriate notice of registration and all other notices and legends required by applicable law, (iv) not adopt or use any mark which is confusingly similar or a colorable imitation of such Trademark unless Lender shall obtain a perfected security interest in such mark pursuant to this Agreement and the IP Security Agreement, and (v) not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby such Trademark may become invalidated or impaired in any way, to the extent that any action in clauses (i) - (v) could reasonably be expected to have a Material Adverse Effect.
(b)    Such Grantor (either itself or through licensees) will not do any act, or omit to do any act, whereby any Patent may become forfeited, abandoned or dedicated to the public, to the extent such act or omission could reasonably be expected to have a Material Adverse Effect.

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(c)    Such Grantor (either itself or through licensees) (i) will employ each Copyright and (ii) will not (and will not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any material portion of the Copyrights may become invalidated or otherwise impaired and which could reasonably be expected to have a Material Adverse Effect.  Such Grantor will not (either itself or through licensees) do any act whereby any material portion of the Copyrights may fall into the public domain and which could reasonably be expected to have a Material Adverse Effect.
(d)    Such Grantor (either itself or through licensees) will not do any act that knowingly uses any Intellectual Property to infringe the intellectual property rights of any other Person.
(e)    Such Grantor will notify Lender promptly if it knows, or has reason to know, that any application or registration relating to any Intellectual Property may become forfeited, abandoned or dedicated to the public, or of any adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office, or any court or tribunal in any country) regarding, such Grantor’s ownership of, or the validity of, any Intellectual Property or such Grantor’s right to register the same or to own and maintain the same, except to the extent that such forfeiture, abandonment or dedication, or adverse determination or development would not reasonably be expected to have a Material Adverse Effect.
(f)    Whenever such Grantor, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any Intellectual Property with the United States Patent and Trademark Office, the United States Copyright Office, or any similar office or agency in any other country or any political subdivision thereof, such Grantor shall promptly report such filing to Lender.  Upon the request of Lender, such Grantor shall execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers as Lender may reasonably request to evidence Lender’s security interest in any Copyright, Patent or Trademark and the goodwill and general intangibles of such Grantor relating thereto or represented thereby.
(g)    Such Grantor will take all reasonable and necessaiy steps to maintain and pursue each application referred to in Section 5,17(f), (and to obtain the relevant registration), except to the extent the failure to maintain and pursue such application would not reasonably be expected to have a Material Adverse Effect, and to maintain each registration of all Intellectual Property owned by it, except to the extent that the failure to maintain registration of all Intellectual Property owned by it would not reasonably be expected to have a Material Adverse Effect.
(h)    In the event that any Intellectual Property is infringed upon or misappropriated or diluted by a third party, such Grantor shall (i) take such actions as such Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual Propeity and (ii) if such Intellectual Property is of material economic value, promptly notify Lender after it learns thereof and, to the extent, in its reasonable judgment, such Grantor determines it appropriate under the circumstances, sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution.

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5.8.    Deposit Accounts and Other Accounts.  Such Grantor hereby authorizes the financial institutions at which such Grantor maintains a Deposit Account, other bank account, securities account or other account to provide Lender with such information with respect to such account as Lender may from time to time reasonably request, and each Grantor hereby consents to such information being provided to Lender.  Such Grantor will cause each financial institution at which such Grantor maintains a Deposit Account or other account to enter into a control agreement or other similar agreement with Lender and such Grantor, in form and substance reasonably satisfactory to Lender, in order to give Lender “control” (within the meaning set forth in Section 9-104 of the Code) of such account, except for Exempt Accounts.
5.9.    Other Matters.  Such Grantor shall cause to be delivered to Lender, at Lender’s request, a Collateral Access Agreement with respect to (a) each bailee with which such Grantor keeps Inventory or other assets as of the Closing Date having a value in excess of $50,000 and (b) each landlord which leases real property (and the accompanying facilities) to such Grantor as of the Closing Date at which it maintains its chief executive office or a substantial amount of its books or records.  If such Grantor shall (x) cause to be delivered Inventory or other propeity having a value in excess of $50,000 to any bailee after the Closing Date, such Grantor shall on or prior to such delivery cause such bailee to sign a Collateral Access Agreement or (y) enter into any lease for real property after the Closing Date at which it maintains its chief executive office or a substantial amount of its books and records, such Grantor shall on or prior to the first day of the term of such lease cause the landlord to sign a Collateral Access Agreement.
5.10.    Commercial Tort Claims.  If such Grantor shall at any time acquire any Commercial Tort Claim, such Grantor shall promptly notify Lender thereof in writing, therein providing a reasonable description and summary thereof, and upon delivery thereof to Lender, such Grantor shall be deemed to thereby grant to Lender (and such Grantor hereby grants to Agent) a security interest in such Commercial Tort Claim and all proceeds thereof, and such Grantor shall execute such documentation as Lender shall require in order to document and effectuate such grant of a security interest.
5.11.    Further Assurances; Subsidiary Joinder.  The Borrowers shall take, and cause each other Loan Party to take, such actions as are necessary or as Lender may reasonably request from time to time to ensure that the Secured Obligations are secured by a perfected Lien in favor Lender (subject only to Permitted Liens and Liens granted to the Senior Agent in connection with the Senior Credit Agreement) on substantially all of the assets of the Borrowers and each Subsidiary of the Borrowers (as well as equity interests of each Subsidiary any Borrower) and guaranteed by all of the Subsidiaries of Borrowers (including, promptly upon the acquisition or creation thereof, any Subsidiary of Borrowers acquired or created after the Closing Date), in each case including (a) the execution and delivery of guaranties, security agreements, pledge agreements, mortgages, deeds of trust, financing statements and other documents, and the filing or recording of any of the foregoing and (b) the delivery of certificated securities (if any) and other Collateral with respect to which perfection is obtained by possession but excluding (a) the requirement for the Loan Parties to execute and deliver leasehold mortgages, and (b) any other Excluded Collateral as defined in this Agreement.
		
	6.
	Remedial Provisions.

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6.1.    Certain Matters Relating to Receivables.
(a)    At any time and from time to time after the occurrence and during the continuance of an Event of Default, Lender shall have the right to make test verifications of the Receivables in any manner and through any medium that it reasonably considers advisable, and each Grantor shall furnish all such assistance and information Lender may reasonably require in connection with such test verifications. At any time and from time to time after the occurrence and during the continuance of an Event of Default, upon Lender’s reasonable request and at the expense of the relevant Grantor, such Grantor shall cause independent public accountants or others reasonably satisfactory to Lender to furnish to Lender reports showing reconciliations, agings and test verifications of, and trial balances for, the Receivables.
(b)    If required by Lender at any time after the occurrence and during the continuance of an Event of Default, any payments of Receivables, when collected or received by or on behalf of any Grantor, subject to the Intercreditor Agreement (i) shall be forthwith (and, in any event, within 2 Business Days) deposited by such Grantor in the exact form received, duly indorsed (but without any representation or warranty) by such Grantor to Lender if required, in a collateral account maintained under the sole dominion and control of Lender, for application to the Secured Obligations in accordance with Section 6.5, and (ii) until so turned over, shall be held by such Grantor in trust for Lender, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in reasonable detail the nature and source of the payments included in the deposit.
(c)    At any time and from time to time after the occurrence and during the continuance of an Event of Default, subject to the Intercreditor Agreement, at Lender’s request, each Grantor shall deliver to Lender all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Receivables, including all original orders, invoices and shipping receipts.
6.2.    Communications with Obligors; Grantors Remain Liable.
(a)    Lender in its own name or in the name of others may at any time after the occurrence and during the continuance of an Event of Default communicate with obligors under the Receivables to verify with them to Lender’s reasonable satisfaction the existence, amount and terms of any Receivables.
(b)    Upon the request of Lender at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables that the Receivables have been assigned to Lender and that payments in respect thereof shall be made directly to Lender.
(c)    Anything herein to the contrary notwithstanding, each Grantor shall remain liable in respect of each of the Receivables to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto.  No Lender shall have any obligation or liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by Lender 

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of any payment relating thereto, nor shall Lender be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.
(d)    For the purpose of enabling Lender to exercise rights and remedies under this Agreement, each Grantor hereby grants to Lender, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to such Grantor) to use, license or sublicense any Intellectual Property that constitutes part of the Collateral now owned or hereafter acquired by such Grantor, to the extent such Intellectual Property may be so licensed or sublicensed, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof.
6.3.    Investment Property.
(a)    Unless an Event of Default shall have occurred and be continuing and Lender shall have given notice to the relevant Grantor of Lender’s intent to exercise its corresponding rights pursuant to Section 6.3(b). each Grantor shall be permitted to receive all cash dividends and distributions, payments and Proceeds paid in respect of the Pledged Equity, the Pledged Notes and all other Investment Property that constitutes Collateral, to the extent permitted in the Senior Credit Agreement, and to exercise all voting and other rights and any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Pledged Equity, Pledged Notes and Investment Property (including the right to exchange at its discretion any and all of the Investment Property upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate or other structure of any Issuer, or upon the exercise by such Grantor of any right, privilege or option pertaining to such Pledged Equity, Pledged Notes or Investment Property, and in connection therewith, the right to deposit and deliver any and all of such Pledged Equity, Pledged Notes and Investment Property with any committee, depositaiy, transfer agent, registrar or other designated agency upon such terms and conditions as such Grantor may determine); provided, that no vote shall be cast or other right exercised or action taken which would be inconsistent with or result in any violation of any provision of the Senior Credit Agreement or this Agreement.
(b)    If an Event of Default shall occur and be continuing, upon notice to the relevant Grantor, subject to the Intercreditor Agreement, Lender shall have the right to (i) receive any and all cash dividends and distributions, payments or other Proceeds paid in respect of the Investment Property and make application thereof to the Secured Obligations in accordance with Section 6.5. (ii) register any or all of the Investment Property in the name of Lender or its nominee, (iii) exercise, or permit its nominee to exercise, all voting and other rights pertaining to such Investment Property, and (iv) exercise, or permit its nominee to exercise, any and all rights of conversion, exchange and subscription and any other rights, privileges or options pertaining to such Investment Property as if it were the absolute owner thereof (including the right to exchange at its 

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discretion any and all of the Investment Property upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate or other structure of any Issuer, or upon the exercise by any Grantor or Lender of any right, privilege or option pertaining to such Investment Property, and in connection therewith, the right to deposit and deliver any and all of the Investment Property with any committee, depositaiy, transfer agent, registrar or other designated agency upon such terms and conditions as Lender may determine), all without liability except to account for property actually received by it, but Lender shall have no duty to any Grantor to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so doing.
(c)    Each Grantor hereby authorizes and instructs each Issuer of any Investment Property pledged by such Grantor hereunder to (i) comply with any instruction received by it from Lender in writing that (x) states that an Event of Default has occurred and is continuing and (y) is otherwise in accordance with the terms of this Agreement and the Loan Documents, without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly permitted hereby, pay any dividends, distributions or other payments with respect to the Investment Property directly to Lender.
6.4.    Proceeds to be Turned Over To Lender.  In addition to the rights of Lender specified in Section 6.1 with respect to payments of Receivables, if an Event of Default shall occur and be continuing, all such Proceeds of Collateral received by or on behalf of any Grantor consisting of cash, checks and other cash equivalent items shall be held by such Grantor in trust for Lender, segregated from other funds of such Grantor, and shall, at the written request of Lender and subject to the Intercreditor Agreement, forthwith upon receipt by such Grantor, be turned over to Lender in the exact form received by such Grantor (duly indorsed (but without any representation or warranty) by such Grantor to Lender, if required).  All Proceeds received by Lender hereunder shall be applied to the Secured Obligations as provided in Section 6.5.
6.5.    Application of Proceeds.  If an Event of Default shall have occurred and be continuing, Lender shall apply all or any part of Proceeds held in any collateral account established pursuant hereto or otherwise received by Lender to the payment of the Secured Obligations.
6.6.    Code and Other Remedies.  If an Event of Default shall occur and be continuing, Lender, may exercise, in addition to all other rights and remedies granted to them in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Secured Obligations, all rights and remedies of a secured party under the Code, or any other applicable foreign or domestic law. Without limiting the generality of the foregoing, if an Event of Default shall occur or be continuing, Lender, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law referred to below) to or upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker’s board or office of Lender or elsewhere upon such terms and conditions as it may deem 

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advisable and at such prices as it may deem best, for cash or on credit or for future delivery with assumption of any credit risk.  Lender may disclaim any warranties that might arise in connection with any such lease, assignment, grant of option or other disposition of Collateral and have no obligation to provide any warranties at such time.  Lender shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby waived and released.  Such sales may be adjourned and continued from time to time with or without notice.  Lender shall have the right to conduct such sales on any Grantor’s premises or elsewhere and shall have the right to use any Grantor’s premises without charge for such time or times as Lender deems necessary or advisable.  Each Grantor further agrees after an Event of Default has occurred and is continuing, at Lender’s request, to assemble the Collateral and make it available to Lender at places which Lender shall reasonably select, whether at such Grantor’s premises or elsewhere.  Lender shall apply the net proceeds of any action taken by it pursuant to this Section 6.6, after deducting all reasonable costs and expenses of eveiy kind incurred in connection therewith or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of Lender hereunder, including reasonable attorneys’ fees and disbursements, to the payment of the Secured Obligations.  To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against Lender arising out of the exercise by them of any rights hereunder, except to the extent such claims, damages or demands arise from the gross negligence, willful misconduct or bad faith of the Lender.  If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper so long as (a) it is given at least 15 days before such sale or other disposition, and (b) contains such information as may be prescribed by applicable law.
6.7.    Pledged Equity.  Each Grantor recognizes that Lender may be unable to effect a public sale of any or all the Pledged Equity, by reason of certain prohibitions contained in the Securities Act and other applicable securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  Each Grantor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.  Lender shall be under no obligation to delay a sale of any of the Pledged Equity for the period of time necessary to permit the Issuer thereof to register such securities or other interests for public sale under the Securities Act, or other applicable state securities laws, even if such Issuer would agree to do so.
6.8.    Deficiency.  Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient for the Secured Obligations to be Paid in Full and the fees and disbursements of any attorneys employed by Lender to collect such deficiency.
6.9.    Permitted Licenses.  Lender covenants and agrees that in connection with any foreclosure or other excercies of Lender’s rights with respect to Permitted Licenses, Lender shall not terminate, limit or otherwise adversely affect the rights of licensees or sublicensees under such 

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Permitted Licenses, so long as such licensee or sublicensee is not then otherwise in default, under the applicable Permitted License in a way that would permit the applicable licensor to teriminate such Permitted License.
		
	7.
	Agent.

7.1.    Lender’s Appointment as Attorney-in-Fact. etc.
(a)    Each Grantor hereby irrevocably constitutes and appoints Lender and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact and proxy with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of strictly carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives Lender the power and right, on behalf of and at the expense of such Grantor, without notice to or assent by such Grantor, to do any or all of the following to the extent otherwise expressly permitted by the terms of this Agreement and the Loan Documents (including the satisfaction of any requirement to give notice to such Grantor prior to doing any of the following):
		
	(i)
	in the name of such Grantor or its own name, or otherwise, take possession of and indorse (but without any representation or warranty) and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Receivable or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise reasonably deemed appropriate by Lender for the purpose of collecting any and all such moneys due under any Receivable or with respect to any other Collateral whenever payable;

		
	(ii)
	in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as Lender may reasonably request to evidence Lender’s security interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or represented thereby;

		
	(iii)
	discharge Liens levied or placed on or threatened against the Collateral, and effect any repairs or insurance called for by the terms of this Agreement and pay all or any part of the premiums therefor and the costs thereof;

		
	(iv)
	execute, in connection with any sale provided for in Section 6,6 or 6/7, any indorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and

		
	(v)
	(A) direct any party liable for any payment under any of the Collateral 

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to make payment of any and all moneys due or to become due thereunder directly to Lender or as Lender shall direct; (B) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (C) sign and indorse (but without any representation or warranty) any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (D) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (E) defend any suit, action or proceeding brought against such Grantor with respect to any Collateral; (F) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as Lender may deem appropriate; (G) assign any Copyright, Patent or Trademark, throughout the world for such term or terms, on such conditions, and in such manner, as Lender shall in its sole discretion determine; (H) vote any right or interest with respect to any Investment Property; (I) order good standing certificates and conduct lien searches in respect of such jurisdictions or offices as Lender may deem appropriate; and (J) generally sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though Lender were the absolute owner thereof for all purposes, and do, at Lender’s option and such Grantor’s expense, at any time, or from time to time, all acts and things which Lender deems necessary to protect, preserve or realize upon the Collateral and Lender’s security interests therein and to effect the intent of this Agreement, all as fully and effectively as such Grantor might do.
(b)    THE POWER-OF-ATTORNEY AND PROXY GRANTED HEREBY IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW.  SUCH PROXY SHALL BE EFFECTIVE AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY INVESTMENT PROPERTY ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF THE INVESTMENT PROPERTY OR ANY OFFICER OR LENDER THEREOF).  Each Grantor acknowledges and agrees that in any event such power-of-attorney and proxy is intended to and shall, to the fullest extent permitted by applicable law, be valid and irrevocable until (x) the Secured Obligations have been Paid in Full and (y) Lender has no further obligations under the Loan Documents.  Such power-of-attorney and proxy shall be valid and irrevocable as provided herein notwithstanding any limitations to the contrary set forth in the charter, bylaws or other organizational documents of the relevant entities.

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(c)    Upon exercise of the proxy set forth herein, all prior proxies given by any Grantor with respect to any of the Investment Property (other than to Lender or otherwise pursuant to the Loan Documents) are hereby revoked, and until the Secured Obligations are Paid in Full no subsequent proxies (other than to Lender or otherwise under the Loan Documents) will be given with respect to any of the Investment Property.  To the extent permitted by this Agreement, Lender, as proxy, will be empowered and may exercise the irrevocable proxy to vote the Investment Property at any and all times, including but not limited to, at any meeting of shareholders, partners or members, as the case may be, however called, and at any adjournment thereof, or in any action by written consent, and may waive any notice otherwise required in connection therewith.  To the fullest extent permitted by applicable law, Lender shall have no agency, fiduciary or other implied duties to any Grantor or any other party when acting in its capacity as such attorney-in-fact or proxy.  Each Grantor hereby waives and releases any claims that it may otherwise have against Lender with respect to any breach or alleged breach of any such agency, fiduciary or other duty, other than claims resulting from the gross negligence, bad faith or willful misconduct of Lender.  Notwithstanding the foregoing grant of a power of attorney and proxy, Lender shall have no duty to exercise any such right or to preserve the same and shall not be liable for any failure to do so or for any delay in doing so.
(d)    Anything in Section 7.1 (a) to the contrary notwithstanding, Lender agrees that it will not exercise any rights under the power of attorney provided for in this Section 7.1 (a) unless an Event of Default shall have occurred and be continuing.
(e)    If any Grantor fails to perform or comply with any of its agreements contained herein, Lender, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement at such Grantor’s sole cost and expense.
(f)    Each Grantor hereby ratifies all that such attorneys shall be authorized hereunder to lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.
7.2.    Duty of Agent.  Lender’s sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession shall be to deal with it in the same manner as Lender deals with similar property for its own account.  Lender nor any of its respective officers, directors, employees or agents shall not be (i) liable for any failure to demand, collect or realize upon any of the Collateral or for any delay in doing so (except to the extent Lender or such officers, directors, employees or agents acted with gross negligence, bad faith or in willful misconduct as determined by a court of competent jurisdiction) or (ii) under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof.  The powers conferred on Lender hereunder are solely to protect Lender’s interests in the Collateral and shall not impose any duty upon Lender to exercise any such powers. Lender shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither Lender nor any of its officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except to the extent Lender (or such officer, director, employee or agent) acted with 

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gross negligence, bad faith or in willful misconduct as determined by a court of competent jurisdiction.
7.3.    Photocopy of this Agreement.  A photographic or other reproduction of this Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any jurisdiction.
7.4.    Omitted.
		
	8.
	Miscellaneous.

8.1.    Amendments in Writing.  None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified unless the same shall be in writing and signed by the Borrowers, each Grantor and Lender..
8.2.    Notices.  All notices, requests and demands to or upon Lender or any Grantor hereunder shall be in writing (including via electronic mail) and shall be sent to the applicable party at its address on Schedule 1 or at such other address as such party may, by written notice received by the other parties, have designated as its address for such purpose.  Notices sent by electronic mail transmission shall be deemed to have been given when sent if sent during regular business hours on a Business Day, otherwise, such deemed delivery will be effective as of the next Business Day; notices sent by mail shall be deemed to have been given five (5) Business Days after the date when sent by registered or certified mail, first class postage prepaid; and notices sent by hand delivery or overnight courier service shall be deemed to have been given when received.  Borrowers and Lender each hereby acknowledge that, from time to time, Lender and Borrowers may deliver information and notices using electronic mail.
8.3.    Indemnification by Grantors.  Each Grantor hereby agrees, on a joint and several basis, to indemnify, exonerate and hold Lender and each of the officers, directors, employees, Affiliates and agents of Lender (each a “Lender Party” and collectively, the “Lender Parties”) free and harmless from and against any and all actions, causes of action, suits, losses, liabilities, damages and expenses, including Legal Costs, but expressly excluding any consequential, special or lost profits damages (collectively, the “Indemnified Liabilities”), incurred by Lender Parties or any of them as a result of, or arising out of, or relating to any act or omission by Borrowers or Grantors or any of their officer, directors, agents, including without limitation (a) any tender offer, merger, purchase of equity interests, purchase of assets or other similar transaction financed or proposed to be financed in whole or in part, directly or indirectly, with the proceeds of any of the Loans, (b) the use, handling, release, emission, discharge, transportation, storage, treatment or disposal of any hazardous substance at any property owned or leased by any Borrower, Grantor or any Subsidiary, (c) any violation of any Environmental Laws with respect to conditions at any property owned or leased by any Borrower, Grantor or any Subsidiary or the operations conducted thereon, (d) the investigation, cleanup or remediation of offsite locations at which any Borrower, Grantor or any Subsidiary or their respective predecessors are alleged to have directly or indirectly disposed of hazardous substances, or (e) the execution, delivery, performance or enforcement of this Agreement or any other Loan Document by any Lender Party, except to the extent any such hidemnified Liabilities result from the applicable Lender Party’s own gross negligence, bad faith or willful 

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misconduct as determined by a court of competent jurisdiction.  If and to the extent that the foregoing undertaking may be unenforceable for any reason, each Grantor hereby agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.  The agreements in this Section 8.3 shall survive repayment of the Secured Obligations, any foreclosure under, or any modification, release or discharge of, any or all of the Collateral Documents and termination of this Agreement.
8.4.    Enforcement Expenses.
(a)    Each Grantor agrees, on a joint and several basis, to pay or reimburse on demand Lender for all duly documented, reasonable out-of-pocket costs and expenses (including Legal Costs) incurred in collecting against any Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Agreement and the other Loan Documents.
(b)    Each Grantor agrees to pay, and to save Lender harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement.
(c)    The agreements in this Section 8.4 shall survive repayment of the Secured Obligations, any foreclosure under, or any modification, release or discharge of, any or all of the Collateral Documents and termination of this Agreement.
8.5.    Captions.  Captions used in this Agreement are for convenience only and shall not affect the construction of this Agreement.
8.6.    Nature of Remedies.  All Secured Obligations of each Grantor and rights of Lender expressed herein or in any other Loan Document shall be in addition to and not in limitation of those provided by applicable law.  No failure to exercise and no delay in exercising, on the part of Lender, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
8.7.    Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. Receipt by facsimile machine or in “.pdf’ format through electronic mail of any executed signature page to this Agreement or any other Loan Document shall constitute effective delivery of such signature page. This Agreement and the other Loan Documents to the extent signed and delivered by means of a facsimile machine or other electronic transmission (including “.pdf), shall be treated in all manner and respects and for all purposes as an original agreement or amendment and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  No party hereto or to any such other Loan Document shall raise the use of a facsimile machine or other electronic transmission to deliver a signature or the fact that any signature or agreement or amendment was transmitted or communicated through the use of a facsimile 

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machine or other electronic transmission as a defense to the formation or enforceability of a contract and each such party forever waives any such defense.
8.8.    Severability.  The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument or agreement required hereunder.
8.9.    Entire Agreement.  This Agreement, together with the other Loan Documents, embodies the entire agreement and understanding among the parties hereto and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof and any prior arrangements made with respect to the payment by any Grantor of (or any indemnification for) any fees, costs or expenses payable to or incurred (or to be incurred) by or on behalf of Lender.
8.10.    Successors; Assigns.  This Agreement shall be binding upon Grantors, Lender and their respective successors and assigns, and shall inure to the benefit of Grantors, Lender and the successors and assigns of Lender.  No other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents.  No Grantor may assign or transfer any of its rights or Obligations under this Agreement without the prior written consent of Lender.
8.11.    Governing Law.  THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHM SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.
8.12.    Forum Selection; Consent to Jurisdiction.  ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF DELAWARE OR IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE.  EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE.  EACH PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, U.S. FIRST CLASS POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK.  EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
8.13.    Waiver of Jury Trial. EACH GRANTOR AND LENDER, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS 

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UNDER THIS AGREEMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
8.14.    Set-off. Each Grantor agrees that Lender have all rights of set-off and bankers’ lien provided by applicable law, and in addition thereto, each Grantor agrees that at any time any event of Default has occurred and is continuing, Lender may apply to the payment of any Secured Obligations, whether or not then due, any and all balances, credits, deposits, accounts or moneys of such Grantor then or thereafter with Lender.
8.15.    Acknowledgements. Each Grantor hereby acknowledges that:
(a)    it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party;
(b)    it has received a fully executed copy of this Agreement;
(c)    Lender does not have a fiduciary relationship with or duty to any Grantor arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Grantors, on the one hand, and Lender, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and
(d)    no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among Lender or among the Grantors and Lender.
8.16.    Additional Grantors. Each Loan Party that is required to become a party to this Agreement pursuant to Section 5.11 of this Agreement shall become a Grantor for all purposes of this Agreement upon execution and delivery by such Loan Party of a joinder agreement in the form of Annex I hereto.
8.17.    Releases.
(a)    At such time as the Secured Obligations have been Paid in Full, the Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of Lender and each Grantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Grantors.  At the request and sole expense of any Grantor following any such termination, Lender shall deliver to the Grantors any Collateral held by Lender hereunder, and execute and deliver to the Grantors such documents as the Grantors shall reasonably request to evidence such termination.
(b)    If any of the Collateral shall be sold or otherwise disposed of by any Grantor in a transaction permitted by the Senior Credit Agreement, then Lender, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other documents 

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#32619088 v1

reasonably necessary or desirable for the release of the Liens created hereby on such Collateral.  At the request and sole expense of Borrowers, a Subsidiary Guarantor shall be released from its obligations hereunder in the event that all the equity interests of such Subsidiaiy Guarantor shall be sold, transferred or otherwise disposed of in a transaction permitted by the Senior Credit Agreement; provided that Borrowers shall have delivered to Lender, with reasonable notice prior to the date of the proposed release, a written request for release identifying the relevant Subsidiary Guarantor and the terms of the sale or other disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a certification by each Borrower stating that such transaction is in compliance with the Senior Credit Agreement.
8.18.    Obligations and Liens Absolute and Unconditional.  Each Grantor understands and agrees that the obligations of each Grantor under this Agreement shall be construed as continuing, absolute and unconditional without regard to (a) the validity or enforceability of any Loan Document, any of the Secured Obligations or any other collateral security therefor or guaranty or right of offset with respect thereto at any time or from time to time held by Lender, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by any Grantor or any other Person against Lender, or (c) any other circumstance whatsoever (with or without notice to or knowledge of any Grantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of any Grantor for the Secured Obligations, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Grantor, or Lender may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against any other Grantor or any other Person or against any collateral security or guaranty for the Secured Obligations or any right of offset with respect thereto, and any failure by Lender to make any such demand, to pursue such other rights or remedies or to collect any payments from any other Grantor or any other Person or to realize upon any such collateral security or guaranty or to exercise any such right of offset, or any release of any other Grantor or any other Person or any such collateral security, guaranty or right of offset, shall not relieve any Grantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of Lender against any Grantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.
8.19.    Reinstatement.  This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor or any Issuer for liquidation or reorganization, should any Grantor or any Issuer become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor’s or any Issuer’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference”, “fraudulent conveyance”, or otherwise, all as though such payment or performance had not been made, hi the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

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8.20.    Conflicting Terms.  In the event of any conflict between the terms of this Agreement and the terms of the hitercreditor Agreement, the terms of the hitercreditor Agreement shall control.
[Signature page follows]

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#32619088 v1

Each of the undersigned has caused this Guarantee and Collateral Agreement to be duly executed and delivered as of the date first above written.
GRANTORS:

PDI, INC., 
a Delaware corporation 
 
 
By:        /s/ Nancy S. Lurker         
Name:    Nancy S. Lurker 
Title:    Chief Executive Officer

GROUP DCA, LLC, 
a Delaware limited liability company 
 
 
By:        /s/ Nancy S. Lurker         
Name:    Nancy S. Lurker 
Title:    Chief Executive Officer

INTERPACE BIOPHARMA, LLC, 
a New Jersey limited liability company 
 
 
By:        /s/ Nancy S. Lurker         
Name:    Nancy S. Lurker 
Title:    Chief Executive Officer

INTERPACE DIAGNOSTICS, LLC, 
a Delaware limited liability company 

 
By:        /s/ Nancy S. Lurker         
Name:    Nancy S. Lurker 
Title:    Chief Executive Officer

[Signature Page to Guarantee and Collateral Agreement]
#32619088 v1

JS GENETICS, INC., 
a Delaware corporation 
 
 
By:        /s/ Nancy S. Lurker         
Name:    Nancy S. Lurker 
Title:    Chief Executive Officer

REDPATH ACQUISITION SUB, INC., 
a Delaware corporation 
 
 
By:        /s/ Nancy S. Lurker         
Name:    Nancy S. Lurker 
Title:    Chief Executive Officer

LENDER: 
 
REDPATH EQUITYHOLDER REPRSENTATIVE, 
LLC, a Delaware limited liability company 
 
 
By: Commerce Health Ventures, L.P., its Member 
 
 
By:        /s/ Brian G. Murphy         
Name:    Brian G. Murphy 
Title:    General Partner

[Signature Page to Guarantee and Collateral Agreement]
#32619088 v1

SCHEDULE 1
INVESTMENT PROPERTY
A.    PLEDGED EQUITY

	
				
	Company Name
	Owner Name
	Number and type of ownership interests pledged
	Percentage of company pledged by listed owner

	Inserve Support Solutions
	PDI, Inc.
	Any and all ownership interests held by PDI, Inc. in this entity
	100%

	PDI Investment Company, Inc.
	PDI, Inc.
	3000 shares of Common Stock
	100%

	TVG, Inc., a Delaware corporation incorporated 9/19/1986, having Delaware Entity No. 2102057 (“TVG, Inc.”)
	PDI, Inc.
	Any and all ownership interests held by PDI, Inc. in this entity
	100%

	Group DCA, LLC
	PDI, Inc.
	8,693,250 shares of interest in company
	100%

	Interpace BioPharma, LLC
	PDI, Inc.
	Membership Interests
	100%

	Interpace Diagnostics, LLC
	PDI, Inc.
	Membership Interest
	100%

	JS Genetics, Inc.
	Interpace Diagnostics, LLC
	500 shares of Common Stock
	100%

	RedPath Acquisition Sub, Inc.1
	Interpace Diagnostics, LLC
	100 shares of Common Stock
	100%

	Interpace Diagnostics Corporation2
	Interpace Diagnostics, LLC
	100 shares of Common Stock
	100%

PDI, Inc. has the option to acquire 100% of the shares of Diagnostic Company pursuant to the terms and conditions of the Collaboration Agreement.
1    Immediately prior to closing of the RedPath Acquisition.
2    Immediately after closing of the RedPath Acquisition.
B.    PLEDGED NOTES
None.
C.    OTHER INVESTMENT PROPERTY
Borrower’s securities account no. 7992-9731 at Wells Fargo.
PDI’s initial fee of $1,500,000 paid to Diagnostic Company under terms of the Collaboration Agreement and recorded as an investment.

#32619088 v1

D.    NOTICE ADDRESS
PDI, Inc., 
300 Inteipace Parkway, 
Morris Corporate Center 1, Building A, 
Parsippany, NJ 07054

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#32619088 v1

SCHEDULE 2
Reserved.

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#32619088 v1

SCHEDULE 3
GRANTOR INFORMATION

	
					
	Grantor
(exact legal name)
	Jurisdiction of Organization
	Federal Employer Identification Number
	Chief Executive Office
	Organizational Identification Number

	PDI, Inc.
	Delaware
	22-2919486
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	2821446

	Group DCA, LLC
	Delaware
	Wholly-owned single member entity of PDI, Inc.
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	3155055

	Interpace BioPharma, LLC
	New Jersey
	Wholly-owned single member entity of PDI, Inc.
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	600375428

	Interpace Diagnostics, LLC
	Delaware
	46-4149195
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	5448700

	JS Genetics, Inc.
	Delaware
	80-0524822
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	3772747

	RedPath Acquisition Sub, Inc.3
	Delaware
	N/A
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	5620117

	Interpace Diagnostics Corporation4
	Delaware
	20-1422009
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	4354810

3    Immediately prior to closing of the RedPath Acquisition.
4    Immediately after closing of the RedPath Acquisition.

	
		
	 
	 

[SCHEDULE 3 TO GUARANTEE AND COLLATERAL AGREEMENT]
#32619088 v1

SCHEDULE 4
A.    COLLATERAL LOCATIONS 
	
			
	Grantor
	Collateral Location or Place of Business (including chief executive office)
	Owner/Lessor 
(if leased)5

	PDI Inc.
	300 Merpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054

	Brookwood MC Investors, LLC and Brookwood MC II, LLC, as tenants in common
Notice Address: 
Brookwood MC Investors, LLC 
Brookwood MC II, LLC 
72 Cherry Hill Drive 
Beverly, MA 01915 
Attention: Director, Asset Management

	 
	425/475 Woodfield Corporate Center, Schaumburg, Illinois
	Woodfield Realty Holding Company, LLC
Notice Address: 
Woodfield Holdings FT, LLC 
c/o Lincoln Property Company 
Commercial, Inc. 
475 North Martingale Road 
Suite 770 
Schaumburg, Illinois 60173 
Attn: General Manager 
With a copy to: 
Woodfield Holdings PT, LLC 
c/o GE Asset Management Incorproated 
3001 Summer Street 
Stamford, Connecticut 06907-7900

	 
	One Route 17 South, Suite 300, Saddle River, Bergen County, New Jersey
	VRS Saddle River LLC
Notice Address: 
VRS Saddle River LLC 
c/o Kwartler Associates, Inc. 
2 North Street 
Waldwick, NJ 07463 
With a copy to: TA Associates Realty 28 State Street Boston, MA 02109 Attn: Mr. Christopher J. Good

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#32619088 v1

	
			
	 
	Montgomery Corporate Center
200 Dryden Road, Upper Dublin, Pennsylvania, Building II, Phase I
	Fort Washington Phase II Associates, L.P.

Notice Address:
c/o Steven J. Pozycki
Morris Corporate Center IV
Building C
379 Interpace Parkaway
Parsippany, New Jersey 07504

With a copy to:
Martin F. Dowd, Esq.
McCarter & English, LLP
Four Gateway Center
100 Mulberry Street
Newark, New Jersey 07102

	Group DCA, LLC
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	Leased by PDI, Inc., see information above.

	Interpace BioPharma, LLC
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	Leased by PDI, Inc., see information above.

	Interpace Diagnostics, LLC
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	Leased by PDI, Inc., see information above.

	JS Genetics, Inc. (subsidiary of Interpace Diagnostics, LLC)
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054

2 Church Street, New Haven, CT
	Leased by PDI, Inc., see information above.

WE 2 Church Street South LLC

Notice Address:
WE 2 Church Street South LLC
c/o Winstanley Enterprises LLC
150 Baker Avenue Extension,
Suite 303
Concord, MA 01742

	RedPath Acquisition Sub, Inc.6
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054
	Leased by PDI, Inc., see information above.

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#32619088 v1

	
			
	Interpace Diagnostics Corporation7
	300 Interpace Parkway, Morris Corporate Center 1, Bldg A, Parsippany, NJ 07054

3rd and 4th floors in a building located at 2515 Liberty Avenue, City of Pittsburgh, County of Allegheny, Commonwealth of Pennsylvania

Apartment 1205, 2349 Railroad Street, Pittsburgh, Pennsylvania 15222

Apartment 2414, 2359 Railroad Street, Pittsburgh, Pennsylvania 15222
	Leased by PDI, Inc., see information above.

Spring Way Center, LLC

Notice Address: 
Spring Way Center, LLC 
c/o Benyon & Company, Agent 1900 Allegheny Building
Pittsburgh, PA 15219-1613

The Cork Factory

Notice Address: 
The Cork Factory
2349 Railroad Street 
Pittsburgh, PA 15222

5    All locations listed are leased.
6    Immediately prior to closing of the RedPath Acquisition.
7    Immediately after closing of the RedPath Acquisition.

All companies have sales representatives that work from home in various states that have certain company equipment, such as computers, in each case with a value below $2,000.
B.    COLLATERAL IN POSSESSION OF LESSOR. BAILEE, CONSIGNEE OR WAREHOUSEMAN

	
			
	Grantor
	Collateral
	Lessor/Bailee/Consignee/Warehouseman

	All Grantors
	Certain IT equipment at data center
	SUNGARD AVAILABILITY SERVICES Carlstadt CRL-410 Data Center
410 Commerce Drive, Carlstadt, NJ, 07072

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#32619088 v1

SCHEDULE 5
INTELLECTUAL PROPERTY
Licenses
Second Amended and Restated Exclusive License Agreement, effective as of March 18, 2014, by and between Yale University, as licensor, and JS Genetics, Inc., as licensee, with respect to an invention entitled “DCDC2 Mutations Cause Dyslexia (OCR 1742);”
Amended and Restated Exclusive License Agreement, effective as of March 18, 2014, by and between Yale University, as licensor, and JS Genetics, Inc., as licensee, with regard to an invention entitled “DNA Diagnostic Screening for Turner Syndrome and Sex Chromosome Disorders (OCR 1601);”
License Agreement, dated as of August 13, 2014, by and between Asuragen, Inc. and Interpace Diagnostics, LLC granting certain rights under CPRIT Agreement;
License Agreement, dated as of August 13, 2014, by and between Asuragen, Inc. and Interpace Diagnostics, LLC granting rights described therein;
Non-Exclusive License Agreement by and between Asuragen, Inc. and The Brigham Women’s Hospital, Inc., with effective date of June 14, 2010 and amendment, transferred to Interpace Diagnostics, LLC taking the place of Asuragen, expected to be effective as of November 30, 2014;
License Agreement by and between Asuragen, Inc. and Ohio State Innovation Foundation, with effective date of November 10, 2011, with regard to Ohio State Technology 05083 entitled “MicroRNA Diagnostic Biomarkers and Therapeutic Targets for Pancreatic Cancer” transferred to Interpace Diagnostics, LLC taking the place of Asuragen, effective as of August 13, 2014;
Non-exclusive license agreement between The Johns Hopkins University and PDI, Inc., effective October 14, 2014.
Copyrights
None

	
			
	 
	 
	 

	8 This agreement will be transferred to Interpace Diagnostics, LLC once Asuragen completes its obligations under a TSA between Interpace Diagnostics, LLC and Asuragen. It is scheduled to be completed on November 30, 2014, but could be extended.

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#32619088 v1

Patents
U.S. Cases:

	
					
	Owner
	App. No. Patent No.
	Filing Date Issue Date
	Title
	Country

	Interpace Diagnostics
	60/826,173
NA
	09/19/2006 NA
	MicroRNAs Differentially Expressed in Pancreatic Disease and Uses Thereof
	US

	Interpace Diagnostics
	11/857,948
NA
	9/19/2007 NA
	MicroRNAs Differentially Expressed in Pancreatic Disease and Uses Thereof
	US

	Interpace Diagnostics
	61/414,778
NA
	11/17/2010 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	US

	Interpace Diagnostics
	13/299,226
NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	US

	Interpace Diagnostics
	61/534,332
NA
	09/13/2011 NA
	Methods and Compositions Involving miR-135B for Distinguishing Pancreatic Cancer from Benign Pancreatic Disease
	US

	Interpace Diagnostics
	61/536,486
NA
	09/19/2011 NA
	Methods and Compositions Involving miR-135B for Distinguishing Pancreatic Cancer from Benign Pancreatic Disease
	US

	Interpace Diagnostics
	13/615,066
NA
	9/13/2012 NA
	Methods and Compositions Involving miR~135B for Distinguishing Pancreatic Cancer from Benign Pancreatic Disease
	US

	Interpace Diagnostics
	61/552,451
NA
	10/27/2011 NA
	miRNAs as Diagnostic Biomarkers to Distinguish Benign from Malignant Thyroid Tumors
	US

	Interpace Diagnostics
	61/552,762
NA
	10/27/2011 NA
	miRNAs as Diagnostic Biomarkers to Distinguish Benign from Malignant Thyroid Tumors
	US

	Interpace Diagnostics
	13/662,450
NA
	10/27/2012 NA
	miRNAs as Diagnostic Biomarkers to Distinguish Benign from Malignant Thyroid Tumors
	US

	Interpace Diagnostics
	61/709,411
NA
	10/04/2012 NA
	Diagnostic mirnas for Differential Diagnosis of Incidental Pancreatic Cystic Lesions
	US

	Interpace Diagnostics
	61/716,396
NA
	10/19/2012 NA
	Diagnostic mirnas for Differential Diagnosis of Incidental Pancreatic Cystic Lesions
	US

	Interpace Diagnostics
	13/801,737
NA
	3/13/2013 NA
	Diagnostic mirnas for Differential Diagnosis of Incidental Pancreatic Cystic Lesions
	US

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#32619088 v1

	
					
	Owner
	App. No. Patent No.
	Filing Date Issue Date
	Title
	Country

	PDI, Inc.
	13/436,259
	3/30/2012
	Consolidated Presentation Of Pharmaceutical Information From Multiple Sources
	US

	JS Genetics Inc.
	13/266434
	4/28/2010
	Molecdular Diagnosis of Fragile X Syndrome Associated with FMR1 Gene
	US

	JS Genetics Inc.
	13/266429
	4/26/2010
	Method of Prenatal Molecular Diagnosis of Down Syndrome and Other Trisomic Disorders
	US

Foreign Cases:

	
					
	Owner
	App. No. Patent No.
	Filing Date Issue Date
	Title
	Country

	Interpace Diagnostics
	PCT/US07/78936 NA
	09/19/2007 NA
	MicroRNAs Differentially Expressed in Pancreatic Disease and Uses Thereof
	PCT

	Interpace Diagnostics
	2007299828 NA
	9/19/2007 NA
	MicroRNAs Differentially Expressed in Pancreatic Disease and Uses Thereof
	AU

	Interpace Diagnostics
	2,664,383 NA
	9/19/2007 NA
	MicroRNAs Differentially Expressed in Pancreatic Disease and Uses Thereof
	CA

	Interpace Diagnostics
	12159733 NA
	9/19/2007 NA
	MicroRNAs Differentially Expressed in Pancreatic Disease and Uses Thereof
	EU

	Interpace Diagnostics
	2009-529373 5520605
	9/19/2007 4/11/2014
	MicroRNAs Differentially Expressed in Pancreatic Disease and Uses Thereof
	JP

	Interpace Diagnostics
	PCT/US11/61237 NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	PCT

	Interpace Diagnostics
	2011329772 NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	AU

	Interpace Diagnostics
	1120130122650 NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	BR

	Interpace Diagnostics
	2817882 NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	CA

	Interpace Diagnostics
	14150739.2 NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	EU

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#32619088 v1

	
					
	Owner
	App. No. Patent No.
	Filing Date Issue Date
	Title
	Country

	Interpace Diagnostics
	226356 NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	IL

	Interpace Diagnostics
	2013540026 NA
	11/17/2011 NA
	MiRNAs as Biomarkers for Distinguishing Benign from Malignant Thyroid Neoplasms
	JP

	Interpace Diagnostics
	PCT/US2012/062330 NA
	10/27/2012 NA
	miRNAs as Diagnostic Biomarkers to Distinguish Benign from Malignant Thyroid Tumors
	PCT

	Interpace Diagnostics
	12787991.4 NA
	10/27/2012 NA
	miRNAs as Diagnostic Biomarkers to Distinguish Benign from Malignant Thyroid Tumors
	EU

	Interpace Diagnostics
	PCT/US2013/030990 NA
	3/13/2013 NA
	Diagnostic mirnas for Differential Diagnosis of Incidental Pancreatic Cystic Lesions
	PCT

	PDI, Inc.
	PCT/US2013/034670
	3/29/2013
	Consolidated Presentation Of Pharmaceutical Information From Multiple Sources
	PCT

	
					
	Co-owned Patent Applications

	Owner
	App. No. Patent No.
	Filing Date Issue Date
	Title
	Country

	Interpace Diagnostics & Brig ham Women’s Hospital
	13/801,737
NA
	3/13/2013
NA
	Diagnostic Mirnas For Differential Diagnosis Of Incidental Pancreatic Cystic Lesions
	US

	Interpace Diagnostics & Brigham Women’s Hospital
	PCT/US2013/030990
NA
	3/13/2013
NA
	Diagnostic Mirnas For Differential Diagnosis Of Incidental Pancreatic Cystic Lesions
	PCT

Trademarks

	
				
	Owner
	Mark
	Country
	App. Mo. Reg. No.

	Interpace Diagnostics
	MIRINFORM
	US
	77/447,187 3,546,361

	Interpace Diagnostics
	MIRINFORM
	US
	85/067,844 4,071,426

- 7-
#32619088 v1

	
				
	Owner
	Mark
	Country
	App. Mo. Reg. No.

	Interpace Diagnostics
	MIRINFORM
	US
	85/067,850 4,071,427

	Interpace Diagnostics
	MIRINFORM
	MP (CN)
	A0035669 1162299

	Interpace Diagnostics
	MIRINFORM
	MP (CN)
	A0035671 11621785

	Group DCA, LLC
	DIAGRAM
	US
	85/145,671 3,970,284

	Group DCA, LLC
	CUECARD
	US
	78/826,562 3,486,366

	Group DCA, LLC
	PDONE
	US
	85/567,143 4,593,300

	Group DCA, LLC
	PDONE
	US
	85/567,130 4,593,299

	Interpace Diagnostics, LLC
	BaraGen
	US
	86/390,390 n/a

	Interpace Diagnostics, LLC
	THYMIRA
	US
	86/370,332 n/a

	Interpace Diagnostics, LLC
	THYRAMIR
	US
	86/370,328 n/a

	Interpace Diagnostics, LLC
	PancraGEN
	US
	86/370,325 n/a

	Interpace Diagnostics, LLC
	ThyGenX
	US
	86/365,003 n/a

	Interpace Diagnostics, LLC
	PANCRAMIR
	US
	86/357,914 n/a

	Interpace Diagnostics LLC
	
	US
	86/290,079 n/a

	Interpace Diagnostics LLC
	POWER IN PERFORMANCE
	US
	86/325,980 n/a

	PDI, Inc.
	INTERPACE DIAGNOSTICS
	US
	86/130,866 n/a

	PDI, Inc.
	
	US
	76/630,045 3,617,915

- 8-
#32619088 v1

	
				
	Owner
	Mark
	Country
	App. Mo. Reg. No.

	PDI, Inc.
	
	US
	76/630,047 3,344,703

	PDI, Inc.
	PDI
	US
	76/630,046 3,617,916

	PDI, Inc.
	PD ONE REP
	US
	86/227,209 n/a

	PDI, Inc.
	THE MEDICAL BUZZ
	US
	85/930,489 4465320

	PDI, Inc.
	THE MEDICAL BAG
	US
	85/929,050 n/a

	PDI, Inc.
	WHAT KILLED ‘EM
	US
	85/930,510 4,465,321

	PDI, Inc.
	DESPICABLE DOCTORS
	US
	85/930,412 4465315

	PDI, Inc.
	COMIC SEIZURE
	US
	85/930,420 4465316

	PDI, Inc.
	HCP ECOSYSTEM
	US
	85/971374 n/a

	PDI, Inc.
	INTERPACE DIAGNOSTICS
	US
	86/130866

Mask Works
None

- 9-
#32619088 v1

Redpath Assets 
Redparth Patents

	
							
	Pat.No/App.
No.
	Country
	Status
	Title
	Filing Date
	Issue Date
	Assignee

	2584989
	CA
	Abandoned
	MOLECULAR ANALYSIS OF CELLULAR FLUID AND LIQUID CYTOLOGY SPECIMENS FOR CLINICAL DIAGNOSIS, CHARACTERIZATION, AND INTEGRATION WITH MICROSCOPIC PATHOLOGY EVALUATION
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	2585025
	CA
	Abandoned
	DYNAMIC GENOMIC DELETION EXPANSION AND FORMULATION OF MOLECULAR MARKER PANELS FOR INTEGRATED MOLECULAR PATHOLOGY DIAGNOSIS AND CHARACTERIZATION OF TISSUE, CELLULAR FLUID, AND PURE FLUID SPECIMENS
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	2584723
	CA
	Abandoned
	ENHANCED AMPLIFIABILITY OF MINUTE FIXATIVE-TREATED TISSUE SAMPLES, MINUTE STAINED CYTOLOGY SAMPLES, AND OTHER MINUTE SOURCES OF DNA
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	5818189.2
	EP
	Abandoned
	MOLECULAR ANALYSIS OF CELLULAR FLUID AND LIQUID CYTOLOGY SPECIMENS FOR CLINICAL DIAGNOSIS, CHARACTERIZATION, AND INTEGRATION WITH MICROSCOPIC PATHOLOGY EVALUATION
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	5818314.6
	EP
	Abandoned
	DYNAMIC GENOMIC DELETION EXPANSION AND FORMULATION OF MOLECULAR MARKER PANELS FOR INTEGRATED MOLECULAR PATHOLOGY DIAGNOSIS AND CHARACTERIZATION OF TISSUE, CELLULAR FLUID, AND PURE FLUID SPECIMENS
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

- 10-
#32619088 v1

	
							
	5817148.9
	EP
	Abandoned
	ENHANCED AMPLIFIABILITY OF MINUTE FIXATIVE-TREATED TISSUE.  SAMPLES, MINUTE STAINED CYTOLOGY SAMPLES, AND OTHER MINUTE SOURCES OF DNA
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	60/620926
	US
	Expired
	TOPOGRAPHIC GENOTYPING FOR DEFINING THE DIAGNOSIS, MALIGNANT POTENTIAL, AND BIOLOGICAL BEHAVIOR OF PANCREATIC CYSTS AND RELATED CONDITIONS
	10/22/2004
	 
	RedPath Integrated Pathology, Inc.

	11/255978
	US
	Abandoned
	TOPOGRAPHIC GENOTYPING FOR DETERMINING THE DIAGNOSIS, MALIGNANT POTENTIAL, AND BIOLOGIC BEHAVIOR OF PANCREATIC CYSTS AND RELATED CONDITIONS
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	60/631240
	US
	Expired
	TOPOGRAPHIC GENOTYPING FOR DETERMINING THE DIAGNOSIS, MALIGNANT POTENTIAL, AND BIOLOGIC BEHAVIOR OF PANCREATIC CYSTS AND RELATED CONDITIONS
	11/29/2004
	 
	RedPath Integrated Pathology, Inc.

	11/256150
	US
	Abandoned
	MOLECULAR ANALYSIS OF CELLULAR FLUID AND LIQUID CYTOLOGY SPECIMENS FOR CLINICAL DIAGNOSIS, CHARACTERIZATION, AND INTEGRATION WITH MICROSCOPIC PATHOLOGY EVALUATION
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	60/644568
	US
	Expired
	TOPOGRAPHIC GENOTYPING FOR DETERMINING THE DIAGNOSIS, MALIGNANT POTENTIAL, AND BIOLOGIC BEHAVIOR OF PANCREATIC CYSTS AND RELATED CONDITIONS
	01/19/2005
	 
	RedPath Integrated Pathology, Inc.

- 11-
#32619088 v1

	
							
	11/256152
	US
	Abandoned
	DYNAMIC GENOMIC DELETION EXPANSION AND FORMULATION OF MOLECULAR MARKER PANELS FOR INTEGRATED MOLECULAR PATHOLOGY DIAGNOSIS AND CHARACTERIZATION OF TISSUE, CELLULAR FLUID, AND PURE FLUID SPECIMENS
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	60/679968
	US
	Expired
	MOLECULAR ANALYSIS OF CELLULAR FLUIDS SPECIMENS FOR CLINICAL DIAGNOSIS, CHARACTERIZATION, AND INTEGRATION WITH MICROSCOPIC PATHOLOGY EVALUATION
	05/12/2005
	 
	RedPath Integrated Pathology, Inc.

	11/255980
	US
	Abandoned
	ENHANCED AMPLIFIABILITY OF MINUTE FIXATIVE-TREATED TISSUE SAMPLES, MINUTE STAINED CYTOLOGY SAMPLES, AND OTHER MINUTE SOURCES OF DNA
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	60/679969
	US
	Expired
	DYNAMIC GENOMIC DELETION EXPANSION: A PREDICTOR OF CANCER BIOLOGICAL AGGRESSIVENESS
	05/12/2005
	 
	RedPath Integrated Pathology, Inc.

	14/305,727
	US
	Pending
	TOPOGRAPHIC GENOTYPING FOR DETERMINING THE DIAGNOSIS, MALIGNANT POTENTIAL, AND BIOLOGIC BEHAVIOR OF PANCREATIC CYSTS AND RELATED CONDITIONS
	6/16/2014
	 
	RedPath Integrated Pathology, Inc.

	US2005/038315
	PCT
	Expired
	MOLECULAR ANALYSIS OF CELLULAR FLUID AND LIQUID CYTOLOGY SPECIMENS FOR CLINICAL DIAGNOSIS, CHARACTERIZATION, AND INTEGRATION WITH MICROSCOPIC PATHOLOGY EVALUATION
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

- 12-
#32619088 v1

	
							
	US2005/038313
	PCT
	Expired
	DYNAMIC GENOMIC DELETION EXPANSION AND FORMULATION OF MOLECULAR MARKER PANELS FOR INTEGRATED MOLECULAR PATHOLOGY DIAGNOSIS AND CHARACTERIZATION OF TISSUE, CELLULAR FLUID, AND PURE FLUID SPECIMENS
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	US2005/038311
	PCT
	Expired
	ENHANCED AMPLIFIABILITY OF MINUTE FIXATIVE-TREATED TISSUE SAMPLES, MINUTE STAINED CYTOLOGY SAMPLES, AND OTHER MINUTE SOURCES OF DNA
	10/24/2005
	 
	RedPath
Integrated Pathology, Inc.

	US2005/038312
	PCT
	Expired
	TOPOGRAPHIC GENOTYPING FOR DETERMINING THE DIAGNOSIS, MALIGNANT POTENTIAL, AND BIOLOGIC BEHAVIOR OF PANCREATIC CYSTS AND RELATED CONDITIONS
	10/24/2005
	 
	RedPath Integrated Pathology, Inc.

	2198774
	CA
	Abandoned
	TOPOGRAPHIC GENOTYPING
	09/22/1995
	 
	RedPath Integrated Pathology, Inc.

	95935153.7
	EP
	Abandoned
	TOPOGRAPHIC GENOTYPING
	09/22/1995
	 
	RedPath Integrated Pathology, Inc.

	8-511138
	JP
	Abandoned
	TOPOGRAPHIC GENOTYPING
	09/22/1995
	 
	RedPath Integrated Pathology, Inc.

	6,340,563 (08/667493)
	US
	Granted
	TOPOGRAPHIC GENOTYPING
	06/24/1996
	01/22/2002
	RedPath Integrated Pathology, Inc.

	7,014,999 (10/008278)
	US
	Granted
	TOPOGRAPHIC GENOTYPING
	11/05/2001
	03/21/2006
	RedPath Integrated Pathology, Inc.

	11/289624
	US
	Abandoned
	TOPOGRAPHIC GENOTYPING
	11/30/2005
	 
	RedPath Integrated Pathology, Inc.

	08/311553
	US
	Abandoned
	TOPOGRAPHIC GENOTYPING
	09/23/1994
	 
	RedPath Integrated Pathology, Inc.

	US95/12372
	PCT
	Expired
	TOPOGRAPHIC GENOTYPING
	09/22/1995
	 
	RedPath Integrated Pathology, Inc.

- 13-
#32619088 v1

	
							
	61/240919
	US
	Abandoned
	GENERATION OF A COMPREHENSIVE PATHOLOGY REPORT BASED ON MOLECULAR AND GENETIC ANALYSIS
	09/09/2009
	 
	RedPath Integrated Pathology, Inc.

	61/294355
	US
	Abandoned
	METHODS OF COMPARATIVE MUTATIONAL PROFILING
	01/12/2010
	 
	RedPath Integrated Pathology, Inc.

	61/429908
	US
	Expired
	METHODS OF COMPARATIVE MUTATIONAL PROFILING
	01/05/2011
	 
	RedPath Integrated Pathology, Inc.

	61/292561
	US
	Abandoned
	METHODS OF IDENTIFYING BLOOD AND BLOOD-DERIVED DNA CONTENT IN CYST
	01/06/2010
	 
	RedPath Integrated Pathology, Inc.

	61/429900
	US
	Expired
	METHODS OF IDENTIFYING BLOOD AND BLOOD-DERIVED DNA CONTENT IN CYST
	01/05/2011
	 
	RedPath Integrated Pathology, Inc.

	61/297136
	US
	Abandoned
	METHOD OF GENERATING A PATHOLOGY REPORT FOR COMPARATIVE MUTATIONAL PROFILING
	01/21/2010
	 
	RedPath Integrated Pathology, Inc.

	61/425109
	US
	Expired
	MOLECULAR DISCRIMINATION BETWEEN SPORADIC VERSUS TOXIN-ASSOCIATED CANCER FORMATION
	12/20/2010
	 
	RedPath Integrated Pathology, Inc.

	13/331966
	US
	Abandoned
	METHODS OF DIFFERENTIATING BETWEEN NON-GENOTOXIN AND GENOTOXIN-ASSOCIATED TUMORS
	12/20/2011
	 
	RedPath Integrated Pathology, Inc.

	61/443014
	US
	Expired
	METHODS OF DIFFERENTIATING BETWEEN NON-GENOTOXIN VERSUS GENOTOXIN-ASSOCIATED TUMORS
	02/15/2011
	 
	RedPath Integrated Pathology, Inc.

	61/549684
	US
	Expired
	METHODS OF GENOTYPING DNA FROM RESIDUAL SUPERNATANT FLUID FORM BIOLOGICAL SPECIMENS
	10/20/2011
	 
	RedPath Integrated Pathology, Inc.

	61/565879
	US
	Expired
	METHODS OF IDENTIFYING DYSPLASIA IN A SUBJECT
	12/01/2011
	 
	RedPath Integrated Pathology, Inc.

	13/692727
	US
	Pending
	METHODS FOR TREATING BARRETT’S METAPLASIA AND ESOPHAGEAL ADENOCARCINOMA
	12/03/2012
	 
	RedPath Integrated Pathology, Inc.

- 14-
#32619088 v1

	
							
	13/954247
	US
	Pending
	METHODS FOR TREATING BARRETT’S METAPLASIA AND ESOPHAGEAL ADENOCARCINOMA
	07/30/2013
	 
	RedPath Integrated Pathology, Inc.

	US 14/46702
	PCT
	Pending
	METHODS FOR TREATING BARRETT’S METAPLASIA AND ESOPHAGEAL ADENOCARCINOMA
	07/15/2014
	 
	RedPath Integrated Pathology, Inc.

	61/612061
	US
	Expired
	METHODS OF GENOTYPING DNA FROM RESIDUAL RADIOCONTRAST AGENT
	03/16/2012
	 
	RedPath Integrated Pathology, Inc.

	61/640527
	US
	Expired
	METHODS FOR DIAGNOSING LOW AND HIGH GRADE DYSPLASIA IN BARRETT’S ESOPHAGUS
	04/30/2012
	 
	RedPath Integrated Pathology, Inc.

	61/661256
	US
	Expired
	METHODS FOR DIAGNOSING LOW AND HIGH GRADE DYSPLASIA IN BARRETT’S ESOPHAGUS
	06/18/2012
	 
	RedPath Integrated Pathology, Inc.

	61/731725
	US
	Expired
	METHODS FOR MEASURING CARCINOEMBRYONIC ANTIGEN
	11/30/2012
	 
	RedPath Integrated Pathology, Inc.

	14/092,036
	US
	Pending
	METHODS FOR MEASURING CARCINOEMBRYONIC ANTIGEN
	11/27/2013
	 
	RedPath Integrated Pathology, Inc.

	61/824623
	US
	Expired
	METHODS FOR MEASURING CARCINOEMBRYONIC ANTIGEN
	05/17/2013
	 
	RedPath Integrated Pathology, Inc.

	61/840963
	US
	Expired
	METHODS FOR MEASURING CARCINOEMBRYONIC ANTIGEN
	06/28/2013
	 
	RedPath Integrated Pathology, Inc.

Red Path Copyrights: 
None.

- 15-
#32619088 v1

Red Path Trademarks:

	
								
	 
	 
	Reg./App.
	Filing
	Reg.
	 
	 
	 

	Country
	Mark
	No.
	Date
	Date
	Goods
	Registrant
	Status

	US
	PATHFINDERTG
	3208314
(78/848127)
	3/28/06
	2/13/07
	IC042 - Medical laboratory services, namely, testing and analysis of tissue or fluids for diagnostic and forensic purposes
	RedPath Integrated Pathology, Inc.
	Registered

- 16-
#32619088 v1

SCHEDULE 6  
 
DEPOSIT ACCOUNTS AND OTHER ACCOUNTS
[OMITTED]

- 17-
#32619088 v1

SCHEDULE 7  
 
COMMERCIAL TORT CLAIMS
None.

- 18-
#32619088 v1

SCHEDULE 8  
 
EXCLUDED PROPERTY
License agreements representing Intellectual Property licensed to any Grantor and such other Material Contracts as listed on Schedule 5.21 of the Credit Agreement which constitute assets of any Grantor and fall within the definition of Excluded Property by virtue of restrictions on transfer or assignment contained therein, provided, however, for the avoidance of doubt, that the reference above does not include the Proceeds (as defined in Section 9-102(a)(64) (A), (B), (D), and (E) of the Code) of such license agreements and other Material Contracts listed on Schedule 5.21 of the Credit Agreement.

- 19-
#32619088 v1

SCHEDULE 9  
 
HEALTH CARE INSURANCE RECEIVABLES
Prior to the Closing Date, RedPath Integrated Pathology, Inc. has Health Care Insurance Receivables. After the Closing Date, Interpace Diagnostics, LLC will have Health Care Insurance Receivables.

- 20-
#32619088 v1

ANNEX I  
 
FORM OF JOINDER TO GUARANTEE AND COLLATERAL AGREEMENT
This JOINDER AGREEMENT (this “Agreement”) dated as of [_______] is executed by the undersigned for the benefit of SWK Funding LLC, as Agent (the “Agent”) in connection with that certain Guarantee and Collateral Agreement dated as of October 31, 2014 among the Grantors party thereto and Agent (as amended, supplemented or modified from time to time, the “Guarantee and Collateral Agreement”). Capitalized terms not otherwise defined herein are being used herein as defined in the Guarantee and Collateral Agreement.
Each Person signatory hereto is required to execute this Agreement pursuant to Section 8.16 of the Guarantee and Collateral Agreement.
NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each signatory hereby agrees as follows:
1.    Each such Person assumes all the obligations of a Grantor and a Guarantor under the Guarantee and Collateral Agreement and agrees that such Person is a Grantor and a Guarantor and bound as a Grantor and a Guarantor under the terms of the Guarantee and Collateral Agreement, as if it had been an original signatory to the Guarantee and Collateral Agreement. In furtherance of the foregoing, such Person hereby (i) grants to Agent a security interest in all of its right, title and interest in and to the Collateral owned thereby to secure the Secured Obligations and (ii) guarantees the prompt and complete payment and performance by Borrower when due (whether at the stated maturity, by acceleration or otherwise) of Borrower Obligations.
2.    Schedules 1. 2, 3, 4, 5_, 6, 7, and 8, of the Guarantee and Collateral Agreement are hereby amended and restated in the forms of Schedules 1. 2, 3_, 4, 5_, 6, 7, and £, respectively, hereof. Each such Person and all existing Grantors hereby make to Agent the representations and warranties set forth in the Guarantee and Collateral Agreement applicable to such Person and the applicable Collateral and confirms that such representations and warranties are true and correct after giving effect to such amendment to such Schedules.
3.    In furtherance of its obligations under Section 5.2 of the Guarantee and Collateral Agreement, each such Person authorizes Agent to file appropriately complete Code financing statements naming such person or entity as debtor and Agent as secured party, and describing the Collateral, and agrees to execute and deliver such other documentation as Agent (or its successors or assigns) may require to evidence, protect and perfect the Liens created by the Guarantee and Collateral Agreement, as modified hereby.
4.    Each such Person's address and fax number for notices under the Guarantee and Collateral Agreement shall be that of the Borrower as set forth in the Guarantee and Collateral Agreement.

[ANNEX TO GUARANTEE AND COLLATERAL AGREEMENT]
#32619088 v1

5.    This Agreement shall be deemed to be part of, and a modification to, the Guarantee and Collateral Agreement and shall be governed by all the terms and provisions of the Guarantee and Collateral Agreement, with respect to the modifications intended to be made to such agreement, which terms are incorporated herein by reference, are ratified and confirmed and shall continue in full force and effect as valid and binding agreements of each such person or entity enforceable against such person or entity. Each such person or entity hereby waives notice of Agent's acceptance of this Agreement. Each such person or entity will deliver an executed original of this Agreement to Agent.
[add signature block for each new Grantor and an acknowledgement by each existing Grantor]

[ANNEX TO GUARANTEE AND COLLATERAL AGREEMENT]
#32619088 v1Exhibit 10.31 Subordination and Intercreditor Agreement

Execution Version
SUBORDINATION AND INTERCREDITOR AGREEMENT
THIS SUBORDINATION AND INTERCREDITOR AGREEMENT (this “Agreement”) is entered into as of October 31, 2014, by and among PDI, Inc., a Delaware Corporation (the “Borrower”), REDPATH EQUITYHOLDER REPRESENTATIVE, LLC, a Delaware limited liability company (the “Junior Lender”),  and  SWK Funding LLC, a Delaware limited liability company, as the agent, sole lead arranger and sole bookrunner under the Senior Credit Agreement defined below (together with its permitted successors and assigns in such capacity, including in such capacity under any Permitted Refinancing Debt (as hereinafter defined), the “Senior Agent”).
RECITALS
A.    The Borrower, the other Loan Parties (as defined below) party thereto, the Lenders (as defined in the Senior Credit Agreement) and the Senior Agent have entered into a Credit Agreement of even date herewith (as the same may be amended, amended and restated, supplemented, or otherwise modified from time to time, the “Senior Credit Agreement”, with capitalized terms used herein and not otherwise defined having the meanings provided in the Senior Credit Agreement), pursuant to which, among other things, the Senior Lenders (as hereinafter defined) have agreed, subject to the terms and conditions set forth in the Senior Credit Agreement, to make loans and financial accommodations to the Loan Parties.  All of the Loan Parties’ Obligations (as defined in the Senior Credit Agreement) are secured by liens on and security interests in all of the now existing and hereafter acquired real and personal property of the Loan Parties (the “Collateral”) pursuant to the Senior Debt Documents.
B.    The Borrower and the other Loan Parties party thereto have executed a certain Non-Negotiable Subordinated Secured Promissory Note in favor of the Junior Lender (as the same may be amended, amended and restated supplemented or otherwise modified from time to time as permitted hereunder, the “Subordinated Note”).All of the Loan Parties’ obligations under the Subordinated Note are secured by liens on and security interests in the Collateral pursuant to the Subordinated Debt Documents (as hereinafter defined), which liens, as of the date hereof, are second in priority only to liens in favor of the Senior Agent on the terms set forth herein.
C.    As an inducement to and as one of the conditions precedent to the agreement of the Senior Agent and the Senior Lenders to consummate the transactions contemplated by the Senior Credit Agreement, the Senior Agent and the Senior Lenders have required the execution and delivery of this Agreement by the Junior Lender and the Loan Parties in order to set forth the relative rights and priorities of the Senior Lenders and the Senior Agent under the Senior Debt Documents (as hereinafter defined) and the Junior Lender under the  Subordinated Debt Documents (as hereinafter defined).
NOW, THEREFORE, in order to induce the Senior Agent and the Senior Lenders to consummate the transactions contemplated by the Senior Credit Agreement and in order to induce the Junior Lender to consummate the transactions contemplated by the Subordinated Debt 

Documents, and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto hereby agree as follows:
1.Definitions.  The following terms shall have the following meanings in this Agreement:
“Bankruptcy Code” means Title 11 of the United States Code, as amended from time to time and any successor statute and all rules and regulations promulgated thereunder.
“Borrower” has the meanings set forth in the Preamble. “Collateral” has the meaning set forth in the Recitals.
“Comparable Subordinated Debt Document” means, in relation to any Senior Debt Document, that Subordinated Debt Document (i) that creates a security interest in the same Collateral, granted by the same Loan Party or other obligor, as applicable, or (ii) that relates to comparable obligations owing by the Loan Parties or other obligor to the Junior Lender.
“Distribution” means, with respect to any indebtedness, ownership interest, or other obligations, (a) any payment, transfer or disposition of, or distribution by any Person of cash, securities or other property, by set-off or otherwise, on account of such indebtedness, ownership interest, or other obligations, (b) any redemption, purchase or other acquisition of such indebtedness, ownership interest, or other obligations by any Person, including without limitation, upon the exercise of any rights with respect of such indebtedness, ownership interest or obligation or (c) the granting of any Lien or security interest to or for the benefit of the holders of such indebtedness, ownership interest, or other obligations, in or upon any property of any Person.
“Documents” means the Senior Debt Documents and the Subordinated Debt Documents, collectively.
“Enforcement Action” means (a) except as permitted under this Agreement, to take from or for the account of the Borrower, any other Loan Party or any guarantor of the Subordinated Debt and Senior Debt, by set-off or in any other manner, the whole or any part of any moneys or other property which may now or hereafter be owing by the Borrower, such other Loan Party or any such guarantor with respect to the Subordinated Debt or Senior Debt, (b) to sue for payment of, or to initiate, continue or participate with others in any suit, action or proceeding against the Borrower, any other Loan Party, any of the Collateral or any such guarantor to (i) enforce payment of or to collect the whole or any part of the Subordinated Debt or Senior Debt or (ii) commence or continue judicial enforcement of any of the rights and remedies under the Subordinated Debt Documents, Senior Debt Documents or applicable law with respect to the Subordinated Debt or Senior Debt, (c) to exercise any put option or to cause the Borrower, any other Loan Party, or any such guarantor to honor any redemption or mandatory prepayment obligation under any Subordinated Debt Document or Senior Debt Document, (d) to notify account debtors or directly collect accounts receivable or other payment rights of the Borrower, any other Loan Party, or any such guarantor, (e) to deliver or cause to be delivered any notice, claim or demand relating to the Collateral to any Person in the possession or control of any Collateral or acting as bailee, custodian or agent for any holder of a Lien or security interest in respect of any Collateral, (f) to take or cause to be taken any 

-2-

action to retain, or direct or cause a Loan Party to retain, a restructuring officer, crisis manager or similar Person in respect of a Loan Party, or (g) take any action (or permit or direct an action be taken) under the provisions of any state or federal law, including, without limitation, the Uniform Commercial Code, or under any contract or agreement, to enforce, foreclose upon, take possession or control of or sell, dispose or otherwise realize upon any property or assets of the Borrower, any other Loan Party, the Collateral or any such guarantor.
“indefeasible payment in full” “indefeasibly paid in full” or any variant thereof, whether or not capitalized, when used as a condition to Junior Lender’s ability to accept or enforce performance from the Borrower, any other Loan Party or any guarantor, shall not be interpreted to require that the Junior Lender, as applicable, refrain from receiving or enforcing performance after the Senior Lenders have received payments in cash (or another form which the Senior Agent has indicated in writing is acceptable) in the full amount of the Senior Debt (including any increase in the Senior Debt arising from a Permitted Senior Debt Increase), but shall be regarded as only a reiteration that, should such payments to the Senior Lenders thereafter be avoided, this Agreement shall be reinstated with retroactive effect as provided in Sections 2.2(f) and 17  hereof.
“ Junior Lender” has the meaning set forth in the Preamble.
“Lien” means any lien, security interest, pledge, bailment, mortgage, hypothecation, deed of trust, conditional sales and title retention agreement (including any lease in the nature thereof), charge, encumbrance or other similar arrangement or interest in real or personal property, now owned or hereafter acquired, whether such interest is based on common law, statute or contract.
“Loan Parties” means, collectively, the Borrower, each other Affiliate of Borrower that is party to the Senior Debt Documents or the Subordinated Debt Documents, or is otherwise liable for any of the Senior Debt or the Subordinated Debt or any of whose property is pledged as security for the Senior Debt or the Subordinated Debt, and their respective successors and assigns.
“Permitted DIP Financing” has the meaning set forth in Section 2.2(g).
“Permitted Refinancing” means any refinancing of the Senior Debt under the Senior Loan Documents, provided, that (i) the financing documentation entered into by the Loan Parties in connection with such Permitted Refinancing constitute Permitted Refinancing Senior Debt Documents and (ii) the maximum amount of the Senior Debt under then in effect at the time of such refinancing is not increased as a result thereof.
“Permitted Refinancing Senior Debt Documents” means any financing documentation which replaces the Senior Loan Documents (or any Permitted Refinancing Senior Debt Documents) and pursuant to which the Senior Debt under the Senior Loan Documents is refinanced, as such financing documentation may be amended, supplemented or otherwise modified from time to time in compliance with this Agreement.
“Permitted Senior Debt Increase” means one or more increases of the Senior Debt via additional term loan advance(s) in connection with the Senior Debt Documents, subject in each case to the following conditions: (i) such increases shall not exceed $10,000,000 in the aggregate 

-3-

without the prior written approval of Junior Lender, (ii) each such increase in, and additional term loan advance of, the Senior Debt is approved by all existing Senior Lenders, (iii) no Senior Default or Subordinated Debt Default has occurred and is continuing as of the date of such increase and (iv) as of the date of such increase, Senior Agent shall not have delivered a Senior Default Notice to Junior Lender in connection with any blockage of Permitted Subordinated Debt Payments pursuant to Section 2.3(a) hereof.
“Permitted Non-Blockable Subordinated Debt Payments” means reimbursement, indemnity and reasonable expenses (including without limitation, reasonable attorneys’ fees, costs and expenses) paid in accordance with the Subordinated Debt Documents in an amount not to exceed $100,000 in any three hundred sixty (360) consecutive day period.
“Permitted Subordinated Debt Payments” means, so long as no Senior Default has occurred and is continuing or would result therefrom, (a) regularly scheduled payments of principal and interest, if any, in accordance with the Subordinated Note and (b) reimbursement of reasonable out-of-pocket costs and expenses in accordance with the terms of the Subordinated Debt Documents, in each case as and when due on a non-accelerated basis.
“Person” means any natural person, corporation, general or limited partnership, limited liability company, firm, trust, association, government, governmental agency or other entity, whether acting in an individual, fiduciary or other capacity.
“Proceeding” means any voluntary or involuntary insolvency, bankruptcy, receivership, custodianship, liquidation, dissolution, reorganization, assignment for the benefit of creditors, appointment of a custodian, receiver, trustee or other officer with similar powers or any other proceeding for the liquidation, dissolution or other winding up of a Person.
“Reorganization Securities” means any debt or equity securities of a Loan Party that are distributed to the Junior Lender, in respect of Subordinated Debt owing to it pursuant to a confirmed plan of reorganization or adjustment that are subordinated to the Senior Debt to at least the same extent as the Subordinated Debt is subordinated to the Senior Debt hereunder pursuant to written documentation reasonably acceptable to Senior Agent.
“Secured Creditors” means the Senior Lenders and the Junior Lender, collectively.
“Senior Agent” has the meaning set forth in the Preamble.
“Senior Credit Agreement” has the meaning set forth in the Recitals.
“Senior Debt” means all Obligations (as defined in the Senior Credit Agreement), liabilities and indebtedness of every nature of the Loan Parties from time to time owed to the Senior Lenders and/or the Senior Agent under the Senior Debt Documents, including, without limitation, the principal amount of all debts, claims and indebtedness, accrued and unpaid interest (including, without limitation, post-petition interest and interest accrued at the Default Rate (as defined in the Senior Credit Agreement)) and all fees, costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and from time to time hereafter owing, due or 

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payable, whether before or after the filing of a Proceeding under the Bankruptcy Code together with (a) any amendments, modifications, renewals or extensions thereof to the extent not prohibited by the terms of this Agreement and (b) any interest accruing thereon, and fees and expenses incurred, after the commencement of a Proceeding, without regard to whether or not such interest, fees and expenses are an allowed claim; provided, however, that in no event shall the principal amount of the Senior Debt exceed the sum of (i) $20,000,000, plus (ii) the amount funded by Senior Lenders (if any) in connection with a Permitted Senior Debt Increase, plus (iii) the aggregate amount outstanding of any protective advances made at any time by the Senior Lenders in accordance with the terms of the Senior Credit Agreement, plus (iv) in connection with any Permitted DIP Financing, up to an additional 10% of the then outstanding principal balance of the Senior Debt as of the date of the filing of any Proceeding, less the aggregate amount of all principal payments made on the term loan obligations under the Senior Credit Agreement, provided, that Senior Debt shall not include: (x) any increase in the principal amount of the Senior Debt after giving effect to the initial term loan made at the closing on the Senior Debt Documents which does not constitute a Permitted Senior Debt Increase and (y) default interest (but not any other interest), exit fees or prepayment fees or other loan fees each arising from a Senior Default, that are disallowed in any Proceeding with respect to the Borrower or any Loan Party.  For all purposes hereunder, the Senior Debt shall also include all indebtedness, obligations and liabilities of any Loan Party to repay any amounts previously paid by any such Loan Party pursuant to the Senior Debt Documents, which amounts have been returned to the Loan Party, to the Loan Party’s bankruptcy estate, to a trust or similar structure established under a plan of reorganization or liquidation of the Loan Party or to a trustee or similar Person by any Senior Lender pursuant to Sections 542, 544, 545, 547, 548, 549, 550, 553 and 724(a) of the Bankruptcy Code or otherwise under other applicable legislation.
“Senior Debt Documents” means the Senior Credit Agreement, the Senior Loan Documents and, after the consummation of any Permitted Refinancing, the Permitted Refinancing Senior Debt Documents.
“Senior Default” means a “Default” or “Event of Default” as defined in the Senior Credit Agreement, or any condition or event that, after notice or lapse of time or both, would constitute such an Default or Event of Default (if that condition or event were not cured or removed within any applicable grace or cure period set forth therein).
“Senior Default Notice” means a written notice from the Senior Agent to the Junior Lender pursuant to which the Junior Lender is notified of the occurrence of a Senior Default, which notice incorporates a reasonably detailed description of such Senior Default.
“Senior Lenders” means the Lenders under the Senior Loan Documents and any other holder of Senior Debt.
“Senior Loan Documents” means the Senior Credit Agreement, the Loan Documents (as defined therein) and all other agreements, documents and instruments executed from time to time in connection therewith, as the same may be amended, supplemented or otherwise modified from time to time.
“Standstill Period” has the meaning set forth in Section 2.4(a).

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“Subordinated Debt” means all obligations, liabilities and indebtedness of every nature of the Loan Parties from time to time owed to the Junior Lender under the Subordinated Debt Documents, including, without limitation, the principal amount of all debts, claims and indebtedness, accrued and unpaid interest and all fees, costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and from time to time hereafter owing, due or payable, whether before or after the filing of a Proceeding under the Bankruptcy Code together with (a) any amendments, modifications, renewals or extensions thereof to the extent not prohibited by the terms of this Agreement and (b) any interest accruing thereon, and fees and expenses incurred, after the commencement of a Proceeding, without regard to whether or not such interest, fees and expenses are an allowed claim.
“Subordinated Debt Default” means any “Event of Default” under Section 9 of the Subordinated Note, or any condition or event that, after notice or lapse of time or both, would constitute such an event of default (if that condition or event were not cured or removed within any applicable grace or cure period set forth therein).
“Subordinated Debt Default Notice” means a written notice from the Junior Lender or the Borrower to the Senior Agent pursuant to which the Senior Agent is notified of the occurrence of a Subordinated Debt Default, which notice incorporates a reasonably detailed description of such Subordinated Debt Default.
“Subordinated Debt Documents” means the Subordinated Note, that certain IP Security Agreement executed by Loan Parties in favor of Junior Lender, that certain Guarantee and Collateral Agreement executed by Loan Parties in favor of Junior Lender and all other agreements, documents and instruments executed from time to time in connection therewith, as the same may be amended, supplemented or otherwise modified from time to time as permitted hereunder.
“Subordinated Note” has the meaning set forth in the Recitals.
“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code, as in effect from time to time in any applicable jurisdiction.
2.    Subordination
2.1.    Subordination of Subordinated Debt to Senior Debt.  Each Loan Party covenants and agrees, and the Junior Lender likewise covenants and agrees, notwithstanding anything to the contrary contained in any of the Subordinated Debt Documents or as a matter of law, that in or outside of a Proceeding the payment of any and all of the Subordinated Debt shall be and is hereby expressly made subordinate and subject in right and time of payment, to the extent and in the manner hereinafter set forth, to the prior indefeasible payment in full in cash (or another form which the Senior Agent has indicated in writing is acceptable) of all Senior Debt.  Each holder of Senior Debt, whether now outstanding or hereafter created, incurred, assumed or guaranteed, shall be deemed to have acquired Senior Debt in reliance upon the provisions contained in this Agreement.
2.2.    Liquidation, Dissolution, Bankruptcy.  In the event of any Proceeding 

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involving the Borrower or any other Loan Party or any of their respective property or assets:
(a)    All Senior Debt shall first be indefeasibly paid in full in cash (or another form which the Senior Agent has indicated in writing is acceptable) before any Distribution, whether in cash, securities or other property (other than Reorganization Securities), shall be made to the Junior Lender or any Junior Lender on account of any Subordinated Debt.
(b)    Any Distribution, whether in cash, securities or other property (other than Reorganization Securities) which would otherwise, but for the terms hereof, be payable or deliverable in respect of any Subordinated Debt shall be paid or delivered directly to the Senior Agent (to be held and/or applied by the Senior Agent in accordance with the terms of the Senior Debt Documents) until all Senior Debt is indefeasibly paid in full in cash (or another form which the Senior Agent has indicated in writing is acceptable).    The Junior Lender, irrevocably authorizes, empowers and directs any debtor, debtor in possession, receiver, trustee, liquidator, custodian, conservator, or other Person having authority, to pay or otherwise deliver (or cause the same) all such Distributions to the Senior Agent (other than any Distribution constituting a Permitted Subordinated Debt Payment that was received by the Junior Lender at a time when such payment was permitted by the terms of this Agreement which was    prior to the commencement of the applicable Proceeding) until all Senior Debt is indefeasibly paid in full in cash (or another form acceptable to the Senior Agent in writing), and thereafter, to pay or otherwise deliver them to the Junior Lender.   The Junior Lender also irrevocably authorizes and empowers the Senior Agent, in the name of Junior Lender, to demand, sue for, collect and receive any and all such Distributions.
(c)    The Junior Lender agrees not to initiate, prosecute, or participate in (or directly or indirectly cause or support any other Person to do the same) any claim, action, or other proceeding challenging the enforceability, validity, perfection, or priority of the Senior Debt, or any Liens and security interests securing the Senior Debt.   The Senior Agent agrees not to initiate, prosecute, or participate in (or directly or indirectly cause or support any other Person to do the same) any claim, action, or other proceeding challenging the enforceability, validity, perfection, or priority of the Subordinated Debt, or any Liens and security interests securing the Subordinated Debt, to the extent such Liens and security interests are expressly permitted hereunder.
(d)    Following the indefeasible payment in full in cash (or another form which the Senior Agent has indicated in writing is acceptable) of the Senior Debt, any Distribution which may be payable to or deliverable in respect of the Subordinated Debt shall be paid to the Junior Lender for application in satisfaction of the Subordinated Debt until such time as all the Subordinated Debt shall have been paid in full in cash.
(e)    The Junior Lender hereby irrevocably authorizes, empowers and appoints the Senior Agent its agent and attorney-in-fact to (i) prepare, execute, verify, deliver, and file commercially reasonable proofs of claim in respect of the Subordinated Debt upon the failure of the Junior Lender promptly to do so prior to 15 Business Days before the expiration of the time to file any such proof of claim and (ii) vote such claim in any such Proceeding upon the failure of the Junior Lender to do so prior to 10 Business Days before the expiration of the time to vote any such claim; provided, the Senior Agent shall have no obligation or duty to prepare, execute, verify, deliver, file, and/or vote any such proof of claim (and its action or inaction shall not give rise to any 

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claims or liability against the Senior Agent or any Senior Lender under this Agreement or otherwise).  In the event that the Senior Agent votes any claim in accordance with the authority granted hereby, the Junior Lender shall not be entitled to change or withdraw such vote.
(f)    The Senior Debt shall continue to be treated as Senior Debt and the provisions of this Agreement shall continue to govern the relative rights and priorities of the  Senior Agent, the  Senior Lenders and the Junior Lender,  in or outside of a Proceeding, even if all or part of the Senior Debt, or any payments or proceeds thereof or of the Collateral, or the Liens or security interests securing the Senior Debt are subordinated, set aside, avoided, invalidated or disallowed in connection with any such Proceeding or otherwise, and this Agreement shall be reinstated if at any time any payment of any of the Senior Debt or proceeds of Collateral thereof is rescinded, avoided, subordinated, invalidated or must otherwise be returned or set aside (including, without limitation, by settlement of any claim for such avoidance or recission or similar recovery) by any holder of Senior Debt or any representative of such holder.
(g)    So long as any Senior Debt has not been indefeasibly paid in full in cash (or another form which the Senior Agent has indicated in writing is acceptable), without the express prior written consent of the Senior Agent, Junior Lender shall not (and shall not support any other Person in order to) (i) with respect to any rights under any Subordinated Debt Document, seek in respect of any part of the Collateral or proceeds thereof or any Lien which may exist thereon, any relief from or modification of the automatic stay as provided in Section 362 of the Bankruptcy Code or, seek or accept any form of adequate protection under either or both Sections 362 and 363  of the Bankruptcy Code with respect thereto; (ii) oppose or object to Senior Agent and/or any Senior Lender obtaining a Lien or grant of administrative claim in connection with a grant of adequate protection, use of cash collateral or post-petition financing under Sections 362, 363 or 364 of the Bankruptcy Code; (iii) oppose or object to the use of cash collateral by any Loan Party that is supported by the Senior Agent; (iv) oppose or object to any post-petition financing (including without limitation any debtor-in-possession financing) provided by Senior Agent and/or any of the Senior Lenders or provided by a third party pursuant to Section 364 of the Bankruptcy Code (including without limitation on a priming basis) on terms acceptable to Senior Agent provided that the aggregate amount of such DIP Financing provided by the Senior Lenders and any cash collateral use shall not exceed 110% of the then outstanding principal balance of the Senior Debt as of the date of filing of the Proceeding (“Permitted DIP Financing”), (v) oppose or object to  or withhold  consent from the  disposition  of assets by  any Loan Party under Section 363 of the Bankruptcy Code that is supported by the Senior Agent so long as (x) the Liens of the Junior Lender attach to the proceeds of such disposition in the order and priority set forth herein, (y) the proceeds of such disposition shall be applied to the Senior Debt in accordance with Section 2.7 and (z) the application of such proceeds to the principal portion of the Senior Debt shall result in a permanent reduction of the Senior Debt, in the amount of such proceeds so applied; (vi) make an election pursuant to Section 1111(b) of the Bankruptcy Code; (vii) oppose or object to the determination of the extent of any Liens held by any of the Senior Agent and/or the Senior Lenders; (viii) oppose or object to the payment of interest and expenses of the Senior Agent and/or the Senior Lenders as provided under Sections 363 or 506(b) and (c) of the Bankruptcy Code; (ix) assert or enforce, at any time when any Senior Debt exists, any claim under Section 506(c) of the Bankruptcy Code senior to or on a parity with the Senior Debt for costs or expenses of preserving or disposing of any Collateral; 

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(x) serve as a formal plan proponent of any plan of reorganization or liquidation or similar dispositive restructuring plan that (A) does not expressly provide for the indefeasible payment in full in cash of the Senior Debt concurrently with the confirmation of such plan or (B) impairs in any way the rights and remedies of the Senior Agent or any Senior Lender under the Senior Debt Documents or under this Agreement, provided that nothing herein shall prohibit Junior Lender from voting for a plan that does not meet the conditions of (A) and (B) herein so long as such plan is otherwise consistent with the priorities and preferences (and Junior Lender’s obligations) as set forth in this Agreement; or (x) object to, contest or oppose in any manner the exercise by the Senior Agent or any Senior Lender of the right (or amount) to “credit bid” the Senior Debt pursuant to Section 363(k) of the Bankruptcy Code or other applicable law in any Proceeding (it being understood that nothing in this Agreement shall be deemed to prohibit the Junior Lender or any Junior Lender from “credit bidding” the Subordinated Debt pursuant to Section 363(k) of the Bankruptcy Code or other applicable law in any Proceeding, so long as the aggregate amount of any bid by the Junior Lender or the Junior Lender includes a cash payment sufficient for the indefeasible payment in full of the Senior Debt).  Notwithstanding the foregoing, in connection with any Proceeding, the Junior Lender may seek or request adequate protection replacement Liens in respect of the Collateral but only if the Senior Lenders are granted adequate protection Liens, and then such adequate protection Liens granted in favor of the Junior Lender may be granted only in the same Collateral as the Senior Lenders’ adequate protection Lien is granted, and such Lien granted to the Junior Lender shall be subordinated to the Liens securing the Senior Debt (and any cash collateral usage or DIP Financing (as defined below)) on the same basis as the Liens securing the Subordinated Debt are subordinated to the Liens securing the Senior Debt hereunder.  If and to the extent any such additional or replacement Liens are insufficient to provide adequate protection of the interests of the Junior Lender, any claim of the Junior Lender under Section 507(b) of the Bankruptcy Code shall be subordinate in right of payment to any claim of the Senior Agent and Senior Lenders consistent with this Agreement.  In addition, the Junior Lender may seek adequate protection with respect to its rights in the Collateral in the form of cash payments solely with respect to interest on the Subordinated Debt, but only if the Senior Lenders are granted adequate protection in the form of cash payments with respect to interest on the Senior Debt.  If the Junior Lender receives post-petition interest and/or adequate protection payments in any Proceeding and the Senior Lenders do not receive indefeasible payment in full in cash (or another form which the Senior Agent has indicated in writing is acceptable) of all Senior Debt upon the effectiveness of any plan of reorganization or liquidation for, or conclusion of, the Proceeding, then the Junior Lender shall segregate and pay over to the Senior Lenders the amount of adequate protection payments and/or post-petition interest received up to the amount of the shortfall in payment in full of the Senior Debt.  Notwithstanding the foregoing, the Senior Lenders shall not be deemed to have consented to, and expressly retain their right to object to, the grant of adequate protection in the form of cash payments to the Junior Lender.
2.3.    Subordinated Debt Payment Restrictions.
(a)    Notwithstanding the terms of the Subordinated Debt Documents, each Loan Party hereby agrees that it may not make, and the Junior Lender hereby agrees that it will not demand or accept and it will not permit any Junior Lender to demand or accept, any Distribution on account of any Subordinated Debt until the Senior Debt is indefeasibly paid in full 

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in cash (or another form which the Senior Agent has indicated in writing is acceptable), in each case other than Permitted Subordinated Debt Payments. Notwithstanding the forgoing, each Loan Party and the Junior Lender further agree that, subject to the limitations set forth in Section 2.3(d) below, no Permitted Subordinated Debt Payment may be made by any Loan Party or accepted by the Junior Lender or any Junior Lender if, at the time of such payment, the Junior Lender shall have received a Senior Default Notice from the Senior Agent stating that one or more Senior Defaults identified in the applicable Senior Default Notice exist or would be created by the making of such payment, unless and until (A) Junior Lender has received written notice from Senior Agent that each such Senior Default has been cured or waived, (B) the payment of the Senior Debt in full in cash (or another form which the Senior Agent has indicated in writing is acceptable), or (C) 180 days shall have elapsed since the date such Senior Default Notice was received by the Junior Lender; provided, however, that notwithstanding anything to the contrary set forth herein (including the receipt by the Junior Lender of a Senior Default Notice), the Junior Lender may take and Borrower may make Permitted Non-Blockable Subordinated Debt Payments at any time.
(b)    The Loan Parties shall resume making Permitted Subordinated Debt Payments in respect of the Subordinated Debt (including payments that were blocked pursuant to Section 2.3(a) above) only upon the earlier to occur of (A) the cure or waiver of all such Senior Defaults identified in the applicable Senior Default Notice, and receipt by Junior Lender of written notice from Senior Agent of such cure or waiver, (B)    the payment of the Senior Debt in full in cash (or another form which the Senior Agent has indicated in writing is acceptable) and the irrevocable termination in writing of all commitments to lend or otherwise extend credit under the Senior Debt Documents, or (C)    the expiration of such 180 day period described in Section 2.3(a) above).
(c)    No Senior Default shall be deemed to have been cured or waived for purposes of this Section 2.3 unless and until each of the Borrower and the Junior Lender shall have received a written confirmation thereof from the Senior Agent.   The Senior Agent shall promptly deliver a written notice to the Junior Lender after waiver or cure of any Senior Default.
(d)    Notwithstanding any provision of this Section 2.3 to the contrary:
(i)    solely for purposes of Section 2.3(a) the Senior Agent may deliver a Senior Default Notice not more than two (2) times during the term of the Senior Credit Agreement, and at least ninety (90) days must pass between any such Senior Default Notices delivered pursuant to Section 2.3(a) (i.e.  Senior Agent shall not have the right to block any three (3) consecutive quarterly payments under the Subordinated Note pursuant to its rights under Section 2.3(aV);
(ii)    the failure of any Loan Party to make any Distribution with respect to the Subordinated Debt by reason of the operation of this Section 2.3 shall not be construed as preventing the occurrence of a Subordinated Debt Default under the applicable Subordinated Debt Documents; and
(iii)    the provisions of this Section 2.3 shall not apply at any time at which Section 2.2 would be applicable.

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2.4.    Subordinated Debt Permanent Standstill.
(a)    Until the Senior Debt is indefeasibly paid in full in cash (or another form which the Senior Agent has indicated in writing is acceptable), the Junior Lender, on behalf of itself and the Subordinated Creditors, shall not, without the prior written consent  of the   Senior  Agent,  take  any  Enforcement  Action  with  respect  to  the Subordinated Debt until the passage of 180 days from the date of receipt by the Senior Agent of a Subordinated Debt Default Notice (the “Standstill Period”), provided that solely with respect to any Enforcement Action that relates to the Collateral, the Junior Lender shall not commence such Enforcement Action until 45 days after the Senior Agent’s receipt of written notice of Subordinated Creditor’s intention to take any such Enforcement Action after expiration of the Standstill Period (which written notice may be issued during the Standstill Period), if any Subordinated Debt Default described therein shall  not have been cured or waived within  such period;  provided,  further that notwithstanding anything herein to the contrary, in no event shall Subordinated Creditor take any Enforcement Action with respect to the Collateral if, notwithstanding the expiration of the Standstill Period, the Senior Agent or the Senior Lenders shall have commenced and are diligently pursuing Enforcement Action with respect to all or substantially all of the Collateral (prompt notice of such exercise to be given to the Subordinated Creditor by Senior Agent).
(b)    Notwithstanding the foregoing, inside or outside of a Proceeding, the Junior Lender may (i) declare a default or event of default under the Subordinated Debt Documents and declare or join in the declaration of the Subordinated Debt to be due and payable or otherwise accelerate the maturity of the principal of the Subordinated Debt, accrued interest thereon, prepayment premium or other amounts due thereunder; (ii) file a claim or statement of interest with respect to the Subordinated Debt; (iii) take any action (not adverse to the priority, status, extent or enforceability of the Liens on the Collateral securing the Senior Debt, or the rights of any Senior Agent or the Senior Lenders to exercise remedies in respect thereof) in order to create, perfect, preserve or protect its Lien on the Collateral; (iv) file any necessary responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made by any person objecting to or otherwise seeking the disallowance of the claims of the Junior Lender, including any claims secured by the Collateral, if any, in each case, in accordance with the terms of this Agreement; (v) subject to the rights of the Senior Agent under Section 2.2, vote on any plan of reorganization, file any proof of claim, make other filings and make any arguments and motions that are, in each case, in accordance with applicable law and the terms of this Agreement (including, without limitation, Section 2.2); (vi) unless objected to by Senior Agent and subject to Section 2.2, exercise any of its rights or remedies with respect to the Collateral during a Proceeding; and (vii) subject to Section 2.2, file any pleadings, objections, motions or agreements which assert rights or interests available to unsecured creditors of the Loan Parties arising under any Proceeding, the Bankruptcy Code or applicable non-bankruptcy law, so long as such actions are not adverse to and would not conflict with this Agreement; provided that in the event that any Junior Lender becomes a judgment Lien creditor in respect of Collateral as a result of its enforcement of its rights as an unsecured creditor with respect to the Subordinated Debt, such judgment Lien shall be subject to the terms of this Agreement for all purposes (including without limitation in relation to the Senior Debt) as the other Liens securing the Subordinated Debt are subject to this Agreement.

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(c)    If Junior Lender shall receive any Distribution on account of the Subordinated Debt in connection with any Enforcement Action exercised in accordance with this Section 2.4 or otherwise, Junior Lender shall segregate and hold such payment in trust for the benefit of the Senior Agent and the Senior Lenders and promptly pay it over to Senior Agent for application (in accordance with the Senior Debt Documents) to the payment of the Senior Debt then remaining unpaid, until all of the Senior Debt is indefeasibly paid in full in cash (or another form acceptable to the Senior Agent in writing).
2.5.    Incorrect Payments.  Both in and outside of a Proceeding, and until the Senior Debt has been indefeasibly paid in full in cash (or another form which the Senior Agent has indicated in writing is acceptable), if any Collateral or proceeds thereof or Distribution on account of the Subordinated Debt not permitted to be made by the Borrower or any Loan Party or accepted by the Junior Lender or any Junior Lender under this Agreement is received by the Junior Lender or any Junior Lender, such Collateral or proceeds thereof and/or Distribution shall be segregated and deemed to be held in trust by the Junior Lender for the benefit of the Senior Agent and the Senior Lenders, and shall be promptly paid over to the Senior Agent for application (in accordance with the Senior Debt Documents) to the payment of the Senior Debt then remaining unpaid, until all of the Senior Debt is indefeasibly paid in full in cash (or another form which to the Senior Agent has indicated in writing is acceptable) and all commitments to lend or otherwise extend credit under the Senior Debt Documents have irrevocably terminated in writing.
2.6.    Subordination of Liens and Security Interests.  Notwithstanding the date, manner or order of grant, attachment or perfection of any Liens and security interests of Junior Lender in the Collateral, until the Senior Debt has been indefeasibly paid in full in cash, any Liens and security interests of the Junior Lender in the Collateral which may exist from time to time (whether the same exist in breach of this Agreement or otherwise) shall be and hereby are subordinated for all purposes and in all respects to the Liens and security interests of the Senior Agent and the Senior Lenders in the Collateral, regardless of the time, manner, perfection or order of perfection of any such Liens and security interests.  The Junior Lender, on behalf of itself and the Junior Creditors, agrees that it will not, and will not cause or support any other Person to, at any time contest, seek to avoid or subordinate the validity, perfection, priority, extent or enforceability of the Senior Debt, the Senior Debt Documents, this Agreement or any Liens and security interests of the Senior Agent and the Senior Lenders in the Collateral securing the Senior Debt.  The Junior Lender agrees that it will not acquire any Lien on or security interest in any property or asset unless the Senior Agent, for the benefit of the Senior Lenders, has a senior, valid, perfected and enforceable Lien on and security interest in such property or asset pursuant to the Senior Loan Documents.  Subject to compliance with the terms of this Agreement, the Senior Agent, on behalf of itself and the Senior Lenders, agrees that it will not, and will not cause or support any other Person to, at any time contest, or seek to avoid the validity, perfection, priority, extent or enforceability of the Subordinated Debt, the Subordinated Debt Documents, this Agreement or any Liens and security interests of the Junior Lender in the Collateral securing the Subordinated Debt permitted hereunder.  The Senior Agent agrees that it will not acquire any Lien on or security interest in any property or asset unless the Junior Lender is permitted to obtain valid, perfected and enforceable Lien on and security interest in such property or asset pursuant to the Subordinated Debt Documents, and is also expressly permitted, pursuant to this Agreement, to obtain a Lien on 

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and security interest in such property or asset, subordinate only to the Liens of the Senior Agent pursuant to the Senior Debt Documents.
2.7.    Application of Proceeds from Sale or other Disposition of the Collateral.  Subject to Section 2.2(g) and Section 2.11, in the event of any sale, transfer or other disposition (including without limitation a casualty loss, taking through eminent domain or otherwise) of the Collateral, the proceeds resulting therefrom (including without limitation insurance proceeds) shall be applied in accordance with the terms of the Senior Debt Documents or as otherwise consented to by the Senior Agent and Required Lenders (as defined in the Senior Credit Agreement) until such time as the Senior Debt is indefeasibly paid in full in cash; provided (A) the Liens of the Junior Lender attach to the proceeds of such disposition, and (B) any such proceeds received after any Enforcement Action by Senior Agent are applied first, in permanent reduction of the Senior Debt, and, following the indefeasible payment in full of the Senior Debt, to the Subordinated Debt.
2.8.    Sale, Transfer or other Disposition of Subordinated Debt
(a)    The Junior Lender shall not sell, assign, pledge, dispose of or otherwise transfer all or any portion of the Subordinated Debt or any Subordinated Debt Document unless, prior to the consummation of any such action, the transferee thereof shall execute and deliver to the Senior Agent a joinder agreement substantially similar to the agreement attached hereto as Exhibit A, providing for the continued subordination of the Subordinated Debt to the Senior Debt as provided herein and for the continued effectiveness of all of the rights of the Senior Agent and the Senior Lenders arising under this Agreement.
(b)    Notwithstanding the failure of any transferee to execute or deliver an agreement substantially identical to this Agreement, the subordination effected hereby shall survive any sale, assignment, pledge, disposition or other transfer of all or any portion of the Subordinated Debt, and the terms of this Agreement shall be binding upon the successors and assigns of Junior Lender, as provided in Section 11 hereof.
2.9.    Legends.  Until the termination of this Agreement in accordance with Section 17 hereof, the Junior Lender will cause to be clearly, conspicuously and prominently inserted on the face of each agreement, document and/or instrument representing or evidencing any of the Subordinated Debt, the following legend:
“This instrument/agreement and the rights and obligations evidenced hereby are subordinate in the manner and to the extent set forth in that certain Subordination and Intercreditor Agreement (the “Subordination Agreement”) dated as of October 31, 2014, by and among PDI, Inc., a Delaware Corporation (the “Borrower”), RedPath Equityholder Representative, LLC, a Delaware limited liability company (together with its permitted successors and assigns in such capacity, the “Junior Lender”), and SWK Funding LLC, a Delaware limited liability company, as the agent, sole lead arranger and sole bookrunner under the Senior Credit Agreement defined below (together with its permitted successors and assigns in such capacity, including in such capacity under any Permitted Refinancing Debt (as hereinafter defined), the “Senior Agent), to the indebtedness (including interest) 

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owed pursuant to that certain Credit Agreement dated as of October 31, 2014, among the Borrower, the lenders party thereto from time to time, and the Senior Agent, as such Credit Agreement has been and hereafter may be amended, supplemented, or otherwise modified from time to time and to indebtedness refinancing the indebtedness under that agreement as contemplated by the Subordination Agreement; and each holder of this instrument, by its acceptance hereof, irrevocably agrees to be bound by the provisions of the Subordination Agreement.”
2.10.    Perfection; Delivery of Collateral; Deposit Accounts.
(a)    In the event that the Senior Agent (or any Senior Lender) takes possession of or has “control” (as such term is used in the Uniform Commercial Code as in effect in each applicable jurisdiction) over any Collateral for purposes of perfecting its Liens therein (including, without limitation, stock certificates, depository accounts and any deposit account control agreements), the Senior Agent (or such Senior Lender) shall hold such Collateral as representative and bailee for the Senior Lenders and the Junior Lender, solely for the purpose of perfecting the Liens thereon under the Uniform Commercial Code.  Notwithstanding anything to the contrary contained herein, the Senior Agent (or such Senior Lender) shall not have any duty or liability to protect or preserve any rights pertaining to any of the Collateral for the Junior Lender and shall not have by reason of this Agreement a fiduciary relationship to the Junior Lender or any Junior Lender, and Junior Lender hereby waives and releases the Senior Agent (or such Senior Lender) from any and all claims and liabilities arising pursuant to its role as such representative of the Junior Lender.  Promptly following the indefeasible payment in full in cash of the Senior Debt, the Senior Agent (or such Senior Lender) shall, upon the written request of the Junior Lender, (i) deliver the remainder of such Collateral, if any, in its possession to the designee of the Junior Lender (except as may otherwise be required by applicable law or court order or in connection with a Permitted Refinance) (ii) as it relates to any deposit account control agreements and/or lockbox agreements in favor of Senior Agent in relation to the Collateral, continue to serve as the secured party under such agreements for a reasonable period of time in accordance with this Section 2.10(a) until Junior Lender and the applicable loan parties enter into replacement agreements in relation to such deposit accounts and/or lockbox accounts.
(b)    In the event that the Junior Lender or any Junior Lender takes possession of or has “control” (as such term is used in the Uniform Commercial Code as in effect in each applicable jurisdiction) over any Collateral for purposes of perfecting its Liens therein (including, without limitation, stock certificates or depository accounts maintained by it), the Junior Lender shall (or shall cause such Junior Lender to) hold such Collateral as representative and bailee for the Senior Agent and the Senior Lenders, solely for the purpose of perfecting the Liens thereon under the UCC.  Notwithstanding anything to the contrary contained herein, the Junior Lender shall not have any duty or liability to protect or preserve any rights pertaining to any of the Collateral for the Senior Agent or any Senior Lender and shall not have by reason of this Agreement a fiduciary relationship to the Senior Agent or any Senior Lender, and the Senior Agent (or such Senior Lender) hereby waives and releases the Junior Lender from any and all claims and liabilities arising pursuant to its role as such representative of the Senior Agent or any Senior Lender.     Upon receipt,  the 

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Junior Lender shall  promptly  deliver all  such Collateral, if any, in its possession to the Senior Agent.
(c)    It is understood and agreed that this Section 2.10 is intended solely to assure continuous perfection of the Liens granted under the applicable Senior Debt Documents and Subordinated Debt Documents, and nothing in this Section 2.10 shall be deemed or construed as altering the priorities or obligations set forth elsewhere in this Agreement.   The duties of each party under this Section 2.10 shall be mechanical and administrative in nature, and no party shall have, or be deemed to have, by reason of this Section 2.10 a fiduciary relationship in respect of the other party.
2.11.    Release of Collateral.  Without limiting any of the rights (including without limitation any of the foreclosure rights) of the Senior Lenders or Senior Agent under the Senior Debt Documents, or any documents delivered to secure the Obligations of the Loan Parties to Senior Lenders or Senior Agent in connection therewith or under the provisions of any applicable law, and without placing any obligation on the part of Senior Agent to follow any of the following provisions in order to retain its priority status hereunder, in the event that the Senior Lenders or Senior Agent release or discharge their security interests (or consent to the release or discharge of their security interests) in, or Liens upon, any Collateral which is subject to a Lien in favor of Junior Lender in connection with the sale or other disposition or transfer of such Collateral in accordance with the terms of the Senior Credit Agreement (as in effect as of the date of this Agreement), such Collateral shall thereupon be deemed to have been released from all such Liens in favor of the Junior Lender, if any.  Junior Lender agrees that within ten (10) days following Senior Agent’s and/or Borrower’s written request therefor, it will execute, deliver and file any and all such termination statements, Lien releases and other agreements and instruments as Senior Agent or Borrower reasonably deems necessary or appropriate in order to give effect to the preceding sentence.  Junior Lender hereby irrevocably appoints Senior Agent the true and lawful attorney of Junior Lender for the purpose of effecting any such executions, deliveries and filings.  In addition, in the event Senior Agent or Senior Lenders release or discharge their security interests (or consent to the release or discharge of their security interest) in, or Lien upon, any Collateral which is subject to a Lien in favor of Junior Lender in connection with the sale or other disposition or transfer of the Collateral which is permitted under the terms of the Subordinated Debt Documents, such Collateral shall thereupon also be deemed to have been released from all such Liens in favor of the Junior Lender, if any, in accordance with terms set forth above.
2.12.    Requirement of Notice.  Junior Lender agrees to notify Senior Agent promptly upon obtaining knowledge of the happening of any of the following: (i) the occurrence of any Subordinated Debt Default or other default under any Subordinated Debt Document and (ii) the waiver by Junior Lender of any such Subordinated Debt Default or other default under any of the Subordinated Debt Documents.  Senior Agent agrees to notify Junior Lender promptly upon obtaining knowledge of the happening of any of the following:   (i) the occurrence of any Senior Default; and (ii) the waiver by Senior Agent of any Senior Default.
2.13.    Right to Purchase Senior Debt.
(a)    If the Senior Debt has been accelerated by the Senior Lenders, or any 

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Enforcement Action has been commenced by the Senior Lenders and is continuing under the Senior Debt Documents (each of the foregoing, a “Purchase Option Event”), upon ten (10) Business Days prior written notice by Junior Lender to Senior Agent, which notice shall be, and shall provide that it is, irrevocable (the “Purchase Notice”), the Junior Lender shall have the right to purchase (the “Loan Purchase”), in whole but not in part, the Senior Debt as provided herein.  On the date that is specified in the Purchase Notice, which shall not be less than ten (10) Business Days nor more than fifteen (15) calendar days after receipt by the Senior Agent of the Purchase Notice (the “Purchase Date”), the Junior Lender shall purchase from the Senior Lenders all of the Senior Debt for a purchase price in cash in immediately available funds equal to the Loan Purchase Price.  For purposes of this Agreement, “Loan Purchase Price” shall equal the outstanding amount of the Senior Debt as of such date of determination.
(b)    The Loan Purchase shall be consummated pursuant to documentation mutually acceptable to the parties and shall contain such provisions as are customary in such documents.   Concurrently with payment to an account or accounts designated by the Senior Agent for the benefit of the Senior Lenders, by wire transfer of immediately available funds, of the Loan Purchase Price, the Senior Lenders shall, at the sole cost and expense of the Junior Lender, (i) deliver or cause to be delivered to Junior Lender, all Senior Debt Documents, as amended and supplemented, then held by or on behalf of Senior Lenders and (ii) execute in favor of Junior Lender or its designee, assignment documentation, in form and substance reasonably acceptable to Junior Lender and the Senior Lenders, to assign the Senior Debt, the Collateral and the rights of the Senior Lenders under the Senior Debt Documents (but without recourse and without representations or warranties of any kind by Senior Agent or any Senior Lender, except for customary representations as to authority, title, no conflict, the outstanding balance of the Senior Debt and as to Senior Lenders not having released, assigned or encumbered any rights in the Collateral or the Senior Debt Documents).
(c)    Senior Agent shall notify Junior Lender in writing (each such notice, a “Senior Agent Notice”) following the occurrence of each Purchase Option Event.
(d)    Nothing in this Section shall affect or otherwise restrict any of the rights or remedies of the Senior Agent or any of the Senior Lenders including, without limitation, any rights to commence, continue or prosecute any Enforcement Action related to, or accelerate, the Senior Debt, provided that the Senior Agent and the Senior Lenders, to the extent they may do so without prejudice to the rights of the holders of the Senior Debt, shall suspend the prosecution of any Enforcement Action during the period following their receipt of a Purchase Notice through the Purchase Date.
3.    Modifications.
3.1.    Modifications to Senior Debt Documents.  The Senior Lenders may at any time and from time to time without the consent of or notice to the Junior Lender, without incurring liability to the Junior Lender and without impairing or releasing the obligations of the Junior Lender under this Agreement, change the manner or place of payment or extend the time of payment of or renew or alter any of the terms of the Senior Debt, or amend in any manner any agreement, note, guaranty or other instrument evidencing or securing or otherwise relating to the Senior Debt; provided that Senior Lenders shall not (i) increase the interest rate margins, Synthetic Royalty 

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Payment requirements, exit fees or prepayment fees, or any other recurring, monthly, quarterly or annual fees with respect to the Senior Debt that would result in an increase in the fees and interest payable by Borrower under the Senior Debt Documents of more than five hundred (500) basis points in the aggregate (other than as a result of the imposition of interest at the Default Rate in accordance with the terms of the Senior Debt Documents as in effect as of the date of this Agreement), or (ii) shorten the final maturity or any other scheduled payment for principal, interest or any other amount in respect of the Senior Debt by more than 180 days, (iii) change any redemption or prepayment provisions of the Senior Debt, except to extend their effective dates, (iv) increase the principal amount of the Senior Debt other than pursuant to a Permitted Senior Debt Increase or as otherwise set forth in the definition of Senior Debt, (v) subordinate the Liens of the Senior Agent on the Collateral securing the Senior Debt other than in connection with the revolving loan facility described in Section 3.3 hereof, (vi) add any new financial covenant(s) or event(s) of default, or modify any existing financial covenant in a manner that would be more restrictive to Borrower than what is in place as of the date hereof by more than 10%, (vii) take any additional Liens or security interests in any assets of the Borrower, any Loan Party or any guarantor of the Senior Debt to the extent that the Subordinated Debt Documents do not provide for assets to automatically become subject to the security grant in favor of Junior Lender and/or Junior Lender otherwise gets a subordinated lien in such assets in accordance with the priorities set forth in this Agreement, (viii) otherwise prohibit the payment of the Subordinated Debt other than pursuant to the terms of this Agreement.  The Borrower shall give the Junior Lender prompt written notice of all amendments, waivers or modifications to, or any new, Senior Debt Documents.  Notwithstanding anything set forth in this Agreement or the Subordinated Debt Documents to the contrary, there shall be no restrictions on any voluntary prepayment of the Senior Debt by Borrower that is made in accordance with the Senior Credit Agreement.
3.2.    Modifications to Subordinated Debt Documents.  Until the Senior Debt has been indefeasibly paid in full in cash (or another form acceptable to the Senior Agent in writing), and notwithstanding anything to the contrary contained in any Subordinated Debt Documents, Junior Lender shall not, without the prior written consent of the Senior Agent, agree to any amendment, modification or supplement to the Subordinated Debt Documents the effect of which is to (a) increase the maximum principal amount of the Subordinated Debt; (b) increase the interest rate with respect to the Subordinated Debt payable upon an Subordinated Debt Default by more than three hundred (300) basis points; (c) shorten the dates upon which payments of principal on the Subordinated Debt are due; (d) make more restrictive, or add, any event of default or any covenant with respect to the Subordinated Debt; (e) change any redemption or prepayment provisions of the Subordinated Debt, except to extend their effective dates; (f) alter the subordination provisions with respect to the Subordinated Debt in any manner that would be adverse to the Senior Lenders, including, without limitation, subordinating the Subordinated Debt to any other indebtedness; (g) take any additional Liens or security interests in any assets of the Borrower, any Loan Party or any guarantor of the Subordinated Debt; or (h) change or amend any other term of the Subordinated Debt Documents if such change or amendment would result in a Senior Default, materially increase the obligations of the Borrower (taken as a whole), any Loan Party or any guarantor of the Subordinated Debt or confer additional material rights on Junior Lender or any other holder of the Subordinated Debt in a manner materially adverse to the Borrower, any Loan Party, any such guarantor or the Senior Lenders.    Notwithstanding the foregoing, if the Senior Debt Documents are amended or otherwise 

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modified to provide for additional covenants or events of default, or to make more restrictive or onerous any existing covenants or events of default applicable to the Loan Parties, then the comparable provisions of the Comparable Subordinated Debt Documents may be similarly amended or modified to provide for such additional covenants or events of default or such more restrictive covenants or events of default, as the case may be, so long as, in each case, any cushion or step-back between the Senior Debt Documents and the Subordinated Debt Documents is maintained in connection therewith.
3.3.    Approved AR Loan Facility.  The terms and provisions of Section 10.21 of the Senior Credit Agreement in effect as of the date of this Agreement are hereby incorporated into this Agreement by reference.   In the event that Senior Agent approves a revolving loan facility in accordance with the terms and provisions of such Section 10.21 of the Senior Credit Agreement, Junior Lender shall (a) be deemed to have approved such revolving loan facility so long as (i) such revolving loan facility is approved by all existing Senior Lenders, (ii) no Senior Default or Subordinated Debt Default has occurred and is continuing and (iii) Senior Agent shall not have delivered a Senior Default Notice to Junior Lender in connection with any blockage of Permitted Subordinated Debt Payments pursuant to Section 2.3(a) hereof, and (b) work together with Senior Agent and the Borrower in good faith, and at the Borrower’s sole cost and expense, to negotiate and enter into such amendments to this Agreement and such Subordinated Debt Documents as may be necessary, to permit such indebtedness, to release and/or subordinate such liens as may be necessary to effectuate such revolving loan facility, and to enter into such third party documents as may be reasonably requested by Borrower and/or such revolving loan lender.
4.    Intercreditor Provisions.
4.1.    Management of Collateral.  Subject to the other terms and conditions of this Agreement including, without limitation, the rights of the Junior Lender under Section 2.4, until the Senior Debt has been indefeasibly paid in full in cash (or another form acceptable to the Senior Agent in writing) , and both inside and outside of a Proceeding, the Senior Agent, and the Senior Lenders or any representative thereof in the manner provided in the Senior Debt Documents, shall have the exclusive right to manage, perform and enforce the terms of the Senior Debt Documents and the other Documents with respect to any Collateral, to exercise and enforce all privileges and rights thereunder and with respect thereto, according to their sole and absolute discretion and the exercise of their business judgment, including, without limitation, the exclusive right to take or retake control or possession of any Collateral and to hold, prepare for sale, process, sell, lease, foreclose upon, dispose of, collect, or liquidate any Collateral and to incur expenses in connection with any of the foregoing, including, without limitation, in connection with such sale or disposition and to exercise any and all of the rights and remedies of a secured lender under the Uniform Commercial Code of any applicable jurisdiction.    In furtherance and not in limitation of the foregoing, Junior Lender waives any and all rights to direct the method of any action by any holder of Senior Debt (or any representative thereof) in connection with, and any right to object to, a strict foreclosure with respect to any Collateral, waives any and all rights of redemption and hereby consents to each holder of Senior Debt (or any representative thereof) dealing in all respects with the Collateral as if there were no Liens on the Collateral securing the Subordinated Debt; provided, however, that nothing herein shall constitute a waiver the Junior Lender’s right to object to or assert 

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that a private or public sale conducted by the Senior Agent was commercially unreasonable.   In conducting any public or private sale under the Uniform Commercial Code, the Senior Agent shall give the Junior Lender such notice of such sale as may be required by the applicable Uniform Commercial Code; provided, however, that ten (10) days’ notice shall be deemed to be commercially reasonable notice.
4.2.    Permitted Actions.  Subject in all respects to the terms of this Agreement, nothing contained herein shall be construed to limit or impair in any way the right of:   (a) any Secured Creditor to bid for or purchase Collateral at any private or judicial foreclosure upon such Collateral initiated by any Secured Creditor; (b) any Secured Creditor to join (but not control) any foreclosure or other judicial Lien enforcement proceeding with respect to the Collateral initiated by any other Secured Creditor for the sole purpose of protecting such Secured Creditor’s Lien on the Collateral, so long as it does not delay, hinder or interfere with the exercise by the such other Secured Creditor of its rights under this Agreement, the Documents or any applicable law; and (c) the Junior Lender to receive any remaining proceeds of Collateral after the Senior Debt has been indefeasibly paid in full in cash (or another form acceptable to the Senior Agent in writing) and all commitments to lend or otherwise extend credit under the Senior Debt Documents have irrevocably terminated in writing.
4.3.    Marshaling and Similar Rights.  The Junior Lender hereby waives any rights it may have under applicable law to assert the doctrine of marshaling or to otherwise require the Senior Lenders to marshal any property of the Borrower, any other Loan Party or any guarantor of the Senior Debt for the benefit of a Junior Lender.  Until the indefeasible payment in full in cash (or another form which the Senior Agent has indicated in writing is acceptable) of the Senior Debt, the Junior Lender further agrees not to demand, request, plead or otherwise claim the benefit of, any appraisement, valuation or other similar right that may otherwise be available under applicable law.
5.    Representations and Warranties
5.1.    Representations and Warranties of Junior Lender.  The Junior Lender hereby represents and warrants to the Senior Agent that (a) it is a limited liability company duly formed and validly existing under the laws of the State of Delaware (b) it has the power and authority to enter into, execute, deliver and carry out the terms of this Agreement, all of which have been duly  authorized by  all  proper and necessary action;  (c) the execution of this Agreement by the Junior Lender will not violate or conflict with the organizational documents of the Junior Lender, any material agreement binding upon the Junior Lender or any law, regulation or order or require any consent or approval which has not been obtained; (d) this Agreement is the legal, valid and binding obligation of the Junior Lender, enforceable against the Junior Lender in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by equitable principles; and (e) the Junior Lender is the sole owner, beneficially and of record, of the Subordinated Debt.
5.2.    Representations and Warranties of the Senior Agent.  The Senior Agent hereby represents and warrants to the Junior Lender that as of the date hereof:  (a) it is a limited 

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liability company duly formed and validly existing under the laws of the State of Delaware; (b) it has the power and authority to enter into, execute, deliver and carry out the terms of this Agreement, all of which have been duly authorized by all proper and necessary action; (c) the execution of this Agreement by it will not violate or conflict with its organizational documents, any material agreement binding upon it or any law, regulation or order or require any consent or approval which has not been obtained; (d) this Agreement is the legal, valid and binding obligation of it, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,  moratorium  or similar laws  affecting the  enforcement of creditors’  rights generally or by equitable principles; and (e) the Senior Agent and the Senior Creditors are the sole owners, beneficially and of record, of the Senior Debt.
6.    Subrogation.  Subject to the indefeasible payment in full in cash of all Senior Debt, the Junior Lender shall be subrogated to the rights of the Senior Lenders to receive Distributions with respect to the Senior Debt until the Subordinated Debt is paid in full and shall not assert or be entitled to enforce any such subrogation rights.  The Junior Lender agrees that in the event that all or any part of a payment made with respect to the Senior Debt is recovered from the holders of the Senior Debt in a Proceeding or otherwise, any Distribution received by the Junior Lender with respect to the Subordinated Debt at any time after the date of the payment that is so recovered, whether pursuant to the right of subrogation provided for in this Agreement or otherwise, shall be deemed to have been received by the Junior Lender in trust as property of the holders of the Senior Debt and the Junior Lender shall forthwith segregate and deliver the same to the Senior Agent for application to the Senior Debt until the Senior Debt is indefeasibly paid in full in cash (or another form which the Senior Agent has indicated in writing is acceptable).     Notwithstanding  any  other provision  of this  Agreement to the  contrary,  a Distribution made pursuant to this Agreement to the Senior Agent which otherwise would have been made to Junior Lender is not, as between the Borrower, any other Loan Party and Junior Lender, a payment by the Borrower or such other Loan Party to or on account of the Senior Debt.
7.    Entire  Agreement; Modification.  This Agreement evidences the entire agreement of the parties regarding the ordering of interests set forth herein, and all prior oral discussions and writings are merged into this Agreement.  Any modification or waiver of any provision of this Agreement, or any consent to any departure by any party from the terms hereof, shall not be effective in any event unless the same is in writing and signed by the Senior Agent, the Junior Lender and the Loan Parties, and then such modification, waiver or consent shall be effective only in the specific instance and for the specific purpose given.  Any notice to or demand on any party hereto in any event not specifically required hereunder shall not entitle the party receiving such notice or demand to any other or further notice or demand in the same, similar or other circumstances unless specifically required hereunder.
8.    Sharing of Information.  The Borrower and each other Loan Party irrevocably consents to the sharing among the Senior Agent, the Senior Lenders and the Junior Lender of any information they may now or hereafter have regarding the Borrower and the other Loan Parties, subject to the agreement of each of the Senior Lenders and the Junior Lender pursuant to the Senior Debt Documents and the Subordinated Debt Documents, as applicable, to maintain such information as confidential.  This provision does not evidence or suggest any duty on the part of the Senior 

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Lenders or the Junior Lender to share such information.
9.    Further Assurances.  Each party to this Agreement will promptly execute and deliver such further instruments and agreements and do such further acts and things as may be reasonably requested in writing by any other party hereto that may be necessary or desirable in order to effect fully the purposes of this Agreement.
10.    Notices.  Unless otherwise specifically provided herein, any notice delivered under this Agreement shall be in writing addressed to the respective party as set forth below and may be personally served, telecopied or sent by overnight courier service or certified or registered United States mail and shall be deemed to have been given (a) if delivered in person, when delivered; (b) if delivered by telecopy, on the date of transmission if transmitted on a business day before 12:00 p.m. (Dallas time) or, if not, on the next succeeding business day; (c) if delivered by overnight courier, one business day after delivery to such courier properly addressed; or (d) if by United States mail, four Business Days after deposit in the United States mail, postage prepaid and properly addressed.
Notices shall be addressed as follows: 
If to Junior Lender:
Radnor Financial Center 
555 E. Lancaster Avenue, Suite 520 
Radnor, Pennsylvania 19087 
Attn: Brian Murphy 
Email:
with copies to (which shall not constitute notice):
Buchanan Ingersoll & Rooney, PC  
301 Grant Street, 20th Floor  
Pittsburgh, Pennsylvania 15219 
Attn: Craig S. Heryford, Esq. 
Email: craig.heryford@bipc.com
If to any Loan Party:
PDI, Inc. 
Morris Corporate Center 1 & Building A 
300 Interpace Parkway 
Parsippany, NJ 07054 
Attn: Graham Miao 
Email: gmiao@pdi-inc.com
with copies to (which shall not constitute notice):
Pepper Hamilton LLP  

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3000 Two Logan Square  
Eighteenth and Arch Streets  
Philadelphia, PA 19103-2799  
Attn:  Steven J. Abrams  
Email: abramss@pepperlaw.com
If to Senior Agent:
SWK Funding LLC 
15770 North Dallas Parkway, Suite 1290 
Dallas, Texas 75248 
Attn: Winston Black 
Email: notifications@swkhold.com
with copies to (which shall not constitute notice):
Holland & Knight LLP 
200 Crescent Court, Suite 1600 
Dallas, Texas 75201 
Attn: RyanMagee 
Email: ryan.magee@hklaw.com
or in any case, to such other address as the party addressed shall have previously designated by written notice to the serving party, given in accordance with this Section 10.
11.    Successors and Assigns.  This Agreement shall inure to the benefit of, and shall be binding upon, the respective successors and assigns of the Senior Agent, the Senior Lenders, the Junior Lender, the Borrower, and the Loan Parties.  To the extent permitted under the Senior Debt Documents, Senior Agent and any Senior Lender may, from time to time, without notice to any Junior Lender, assign or transfer any or all of the Senior Debt or any interest therein to any Person and, notwithstanding any such assignment or transfer, or any subsequent assignment or transfer, the Senior Debt shall, subject to the terms hereof, be and remain Senior Debt for purposes of this Agreement, and every permitted assignee or transferee of any of the Senior Debt or of any interest therein shall, to the extent of the interest of such permitted assignee or transferee in the Senior Debt, be entitled to rely upon and be the third party beneficiary of the subordination provided under this Agreement and shall be entitled to enforce the terms and provisions hereof to the same extent as if such assignee or transferee were initially a party hereto. To the extent permitted under this Agreement, Junior Lender may, from time to time, with Senior Agent’s prior written consent (such consent not to be unreasonably withheld), assign or transfer any or all of the Subordinated Debt or any interest therein and, notwithstanding any such assignment or transfer, or any subsequent assignment or transfer, the Subordinated Debt shall, subject to the terms hereof, be and remain Subordinated Debt for purposes of this Agreement, and every permitted assignee or transferee of any of the Subordinated Debt or of any interest therein shall, to the extent of the interest of such permitted assignee or transferee in the Subordinated Debt,  be  entitled to rely upon and be the third party beneficiary  of the subordination provided under this Agreement and shall be entitled to enforce the terms and provisions hereof to the same extent as if such assignee or transferee were initially a 

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party hereto.
12.    Relative Rights.  This Agreement shall define the relative rights of Senior Agent and the Senior Lenders on the one hand and the Junior Lender on the other hand.  Nothing in this Agreement shall (a) impair, as among the Borrower, the Loan Parties, the Senior Agent and the Senior Lenders and as between the Borrower and the Junior Lender, the obligation of the Borrower or any other Loan Party with respect to the payment of the Senior Debt and the Subordinated Debt in accordance with their respective terms or (b) affect the relative rights of the Senior Agent and Senior Lenders or the Junior Lender with respect to any other creditors of the Borrower or the other Loan Parties.
13.    Conflict.  In the event of any conflict between any term, covenant or condition of this Agreement and any term, covenant or condition of any of the Subordinated Debt Documents, the provisions of this Agreement shall control and govern.
14.    Headings.  The paragraph headings used in this Agreement are for convenience only and shall not affect the interpretation of any of the provisions hereof.
15.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.
16.    Severability.  In the event that any provision of this Agreement is deemed to be invalid, illegal or unenforceable by reason of the operation of any law or by reason of the interpretation placed thereon by any court or governmental authority, the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby, and the affected provision shall be modified to the minimum extent permitted by law so as most fully to achieve the intention of this Agreement.
17.    Continuation of Subordination; Termination of Agreement.  This Agreement is a continuing agreement of subordination pursuant to its terms and in accordance with Section 510(a) of the Bankruptcy Code and shall remain in full force and effect until (i)the indefeasible payment in full in cash of the Senior Debt and (ii) the documents and instruments evidencing the  Subordinated Debt have been terminated or performed,  in each case in accordance with their respective terms after which this Agreement shall terminate without further action on the part of the parties hereto.  The liability and obligations of Junior Lender hereunder shall be reinstated and revived, and the Senior Lenders’ and Senior Agent’s rights shall continue, with respect to any amount at any time paid on account of the Senior Debt which shall thereafter be required to be restored or returned by the Senior Lenders or Senior Agent in any Proceeding (including, without limitation, any repayment made pursuant to any provision of Chapter 5 of the Bankruptcy Code, or with respect to any fraudulent transfer or conveyance law), all as though such amount had not been paid.  Junior Lender hereby acknowledges that the provisions of this Agreement are intended to be enforceable at all times, whether before or after the commencement of a Proceeding, and hereby waives any right it may have under applicable law to revoke this Agreement or any provisions hereof.  To the extent, 

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after the date hereof, any Subsidiary of the Borrower is required by the terms of any Senior Loan Document or Subordinated Debt Documents to become a guarantor thereunder (a “New Subsidiary”), the Borrower shall cause each such New Subsidiary to become a party hereto pursuant to an Instrument of Adherence in substantially the form of Exhibit B attached hereto and shall cause such New Subsidiary to comply with the requirements of such Instrument of Adherence.   From and after the date on which such New Subsidiary becomes a party hereto, such New Subsidiary shall be a “Loan Party” hereunder.
18.    Applicable Law. This Agreement shall be governed by and shall be construed and enforced in accordance with the internal laws of the State of Delaware, without regard to conflicts of law principle, but giving effect to federal laws applicable to national banks.
19.    CONSENT TO JURISDICTION.  EACH OF SENIOR AGENT, JUNIOR LENDER, THE BORROWER AND THE OTHER LOAN PARTIES HEREBY CONSENT TO THE JURISDICTION OF THE STATE COURTS OF THE STATE OF DELAWARE AND OF THE FEDERAL COURTS LOCATED IN DELAWARE AND IRREVOCABLY AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT MAYBE LITIGATED IN SUCH COURTS.  EACH OF JUNIOR LENDER, THE BORROWER AND THE OTHER LOAN PARTIES EXPRESSLY SUBMIT AND CONSENT TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE OF FORUM NON CONVENIENS.  EACH OF JUNIOR LENDER, SENIOR AGENT, THE BORROWER AND THE OTHER LOAN PARTIES HEREBY WAIVE PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREE THAT ALL SUCH SERVICE OF PROCESS MAYBE MADE UPON IT BY CERTIFIED OR REGISTERED  MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO EACH JUNIOR LENDER, SENIOR AGENT, AND THE BORROWER AT THEIR RESPECTIVE ADDRESSES SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.
20.    WAIVER OF JURY TRIAL.  EACH OF JUNIOR LENDER, THE BORROWER, THE OTHER LOAN PARTIES AND SENIOR AGENT HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.    EACH OF JUNIOR LENDER, THE BORROWER, THE OTHER LOAN PARTIES AND SENIOR AGENT ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN  ENTERING  INTO  THIS  AGREEMENT  AND   THE   SENIOR  DEBT DOCUMENTS AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR  RELATED   FUTURE DEALINGS.  EACH OF JUNIOR LENDER, THE BORROWER, THE OTHER LOAN PARTIES AND SENIOR AGENT WARRANTS AND REPRESENTS THAT EACH HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.
21.    NO ORAL AGREEMENTS.  THIS AGREEMENT AND THE OTHER LOAN  

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DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.
[The Remainder of this Page Intentionally Left Blank]

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(Signature Page to Subordination and Intercreditor Agreement)
IN WITNESS WHEREOF, the Junior Lender, the Borrower, each Loan Party and the Senior Agent have caused this Agreement to be executed as of the date first above written.
SENIOR AGENT:                SWK FUNDING-LLC, as Agent

By    /s/ Winston Black            
Name:    Winston Black
Title:    Managing Director

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JUNIOR LENDER                REDPATH EQUITYHOLDER
REPRESENTATIVE, LLC, as Agent

By:    Commerce Health Ventures L.P, its member

By:    /s/ Brian G. Murphy            
Name:    Brian G. Murphy
Title:    General Partner

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[Signature Page to Subordination and Intercreditor Agreement]

LOAN PARTIES:                PDI, INC.,
a Delaware corporation,
on behalf of itself and its subsidiaries and affiliates,

By:    /s/ Nancy S. Lurker            
Name:    Nancy S. Lurker
Title:    Chief Executive Officer

INTERPACE DIAGNOSTICS, LLC,
a Delaware limited liability company
on behalf of itself and its subsidiaries and affiliates,

By:    /s/ Nancy S. Lurker            
Name:    Nancy S. Lurker
Title:    Chief Executive Officer

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EXHIBIT A 
to 
Subordination and Intercreditor Agreement
JOINDER AGREEMENT
Reference is made to the Subordination and Intercreditor Agreement, dated as of October 31, 2014 (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time, the “Intercreditor Agreement”) among PDI, Inc., a Delaware Corporation (the “Borrower”), RedPath Equityholder Representative, LLC, a Delaware limited liability company (together with its permitted successors and assigns in such capacity, the “Junior Lender”), and SWK Funding LLC, a Delaware limited liability company, as the agent, sole lead arranger and sole bookrunner under the Senior Credit Agreement defined below (together with its permitted successors and assigns in such capacity, including in such capacity under any Permitted Refinancing Debt (as hereinafter defined), the “Senior Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned such terms in the Intercreditor Agreement.
Capitalized terms herein used but not otherwise defined herein shall have the meaning set forth in the Intercreditor Agreement.  This Joinder is being executed and delivered pursuant to Section 2.8 of the Intercreditor Agreement as a condition precedent to the debt for which the undersigned is acting as representative being entitled to the rights and obligations of being additional secured debt under the Intercreditor Agreement.
1.    Joinder.  The undersigned, [                ], a [            ], (the “New Representative”) as [administrative agent] [collateral agent] under that certain [described applicable credit agreement or other document governing the subordinated debt] hereby:
(a)    represents that the New Representative has been authorized to become a party to the Intercreditor Agreement on behalf of the Subordinated Creditors under the Subordinated Loan Documents as Junior Lender under the Intercreditor Agreement for all purposes thereof on the terms set forth therein, and to be bound by the terms of the Intercreditor Agreement as fully as if the undersigned had executed and delivered the Intercreditor Agreement as of the date thereof; and
(b)    agrees that its address for receiving notices pursuant to the Intercreditor Agreement shall be as follows:
[Address];
2.    Payment and Lien Subordination Confirmation.
The undersigned New Representative, on behalf of itself and each holder of Subordinated Debt for which the undersigned is acting as Junior Lender hereby agrees, for the benefit of all Subordinated Creditors, that the New Representative is bound by the provisions of the 
Intercreditor Agreement, including the provisions relating to the subordination of the 

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Subordinated Debt and the Senior Debt and the subordination of the Subordinated Creditor’s Liens in the Collateral to the Liens of the Senior Lenders.
3.    Governing Law and Miscellaneous Provisions.  The provisions of Section 18 of the Intercreditor Agreement will apply with like effect to this Joinder Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Lien Sharing and Priority Confirmation Joinder to be executed by their respective officers or representatives as of [                , 20__].
[insert name of New Representative]
By:                        
 
Name:
 
Title:

The Senior Agent hereby acknowledges receipt of this Joinder:

                        
as Senior Agent

By:                        
Name:
Title:

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EXHIBIT B 
to 
Subordination and Intercreditor Agreement
INSTRUMENT OF ADHERENCE
Dated as of ____________________
[[Address to current Senior Agent and Junior Lender]
Ladies and Gentlemen:
Reference is made to the Subordination and Intercreditor Agreement, dated as of October 31, 2014 (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time, the “Intercreditor Agreement”) among PDI, Inc., a Delaware Corporation (the “Borrower”), RedPath Equityholder Representative, LLC, a Delaware limited liability company (together with its permitted successors and assigns in such capacity, the “Junior Lender”), and SWK Funding LLC, a Delaware limited liability company, as the agent, sole lead arranger and sole bookrunner under the Senior Credit Agreement defined below (together with its permitted successors and assigns in such capacity, including in such capacity under any Permitted Refinancing Debt (as hereinafter defined), the “Senior Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned such terms in the Intercreditor Agreement.
The undersigned [NAME OF GUARANTOR SUBSIDIARY], a [GUARANTOR SUBSIDIARY ENTITY] (the “Adhering Party”) has on or prior to the date hereof executed and delivered to (a) the Senior Agent a Joinder Agreement in accordance with that certain Guarantee and Collateral Agreement (the “Senior Guarantee”) between Senior Agent, the Borrower and the Loan Parties thereto from time to time and has become a Guarantor (as such term is defined in the Senior Credit Agreement) thereunder and (b) the Junior Lender a Joinder Agreement in accordance with that certain Guarantee and Collateral Agreement (the “Subordinate Guarantee”) between Junior Lender, the Borrower and the Loan Parties thereto from time to time and has become a Guarantor (as such term is defined in the Senior Credit Agreement) thereunder and, in connection therewith, hereby agrees to become party to the Intercreditor Agreement and to comply with and be bound by all of the terms, conditions and covenants thereof all with the same effect as if it had executed the Intercreditor Agreement on the Effective Date.  On or prior to the date of the execution of this Instrument of Adherence, the undersigned has become a party to one or more Senior Loan Documents or Subordinated Debt Documents (as applicable) and agrees to be bound thereby as if it had been a party to such documents on the Effective Date.  The Adhering Party hereby acknowledges and agrees that it shall be a “Loan Party” under the Intercreditor Agreement.
The undersigned represents and warrants to the Senior Lenders, the Senior Agent, and the Junior Lender that:
(a)    it has all appropriate powers under its respective governing documents to become a party to the Intercreditor Agreement and to perform all of its respective obligations thereunder; and

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(b)    it is capable of complying with and is in compliance with all of the provisions of the Intercreditor Agreement.
This Instrument of Adherence shall take effect as a sealed instrument and shall be governed by and construed in accordance with the laws of the State of Texas without regard to principals of conflict of laws but with regard to federal laws applicable to national banks.
Very truly yours,

[INSERT NAME OF GUARANTOR SUBSIDIARY]

By:                        
Title:

Accepted and Agreed:

SWK Funding LLC,
as Senior Agent

By:                        
Title:

#32619376 v1

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