Document:

[Confidential Treatment Requested.
Confidential portions of this document have been redacted

      and have been separately filed with
the Securities and Exchange Commission]

       

    

    REVOLVING
CREDIT AND SECURITY AGREEMENT

    

    between

    

    NeoGenomics,
Inc., a Florida Corporation, as Borrower

     

    and

     

    NeoGenomics,
Inc., a Nevada corporation, as Guarantor

     

    and

    

    CAPITALSOURCE
FINANCE LLC

    

    Dated
as of

    February
1, 2008

    

    
      

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      EXECUTION
COPY

    

     

    REVOLVING
CREDIT AND SECURITY AGREEMENT

    

    TABLE
OF CONTENTS

    

    
      
        
          
            
              	 
      	 
      	 
      	
                      Page

                    
	 
      	 
      	 
      	 
      
	
                      I.

                    	
                      DEFINITIONS

                    	
                      4

                    
	 
      	 
      	 
      	 
      
	 
      	
                      1.1

                    	
                      General
      Terms

                    	
                      4

                    
	 
      	
                      1.2

                    	
                      Definitions

                    	
                      5

                    
	 
      	 
      	 
      	 
      
	
                      II.

                    	
                      ADVANCES,
      PAYMENT AND INTEREST

                    	
                      19

                    
	 
      	 
      	 
      	 
      
	 
      	
                      2.1

                    	
                      The
      Revolving Facility

                    	
                      19

                    
	 
      	
                      2.2

                    	
                      The
      Revolving Loans; Maturity

                    	
                      20

                    
	 
      	
                      2.3

                    	
                      Revolving
      Facility Disbursements; Requirement to Deliver Borrowing
      Certificate

                    	
                      20

                    
	 
      	
                      2.4

                    	
                      Promise
      to Pay; Manner of Payment

                    	
                      20

                    
	 
      	
                      2.5

                    	
                      Repayment
      of Excess Advances

                    	
                      21

                    
	 
      	
                      2.6

                    	
                      Payments
      by Lender

                    	
                      21

                    
	 
      	
                      2.7

                    	
                      Evidence
      of Loans

                    	
                      21

                    
	 
      	 
      	 
      	 
      
	
                      III.

                    	
                      INTEREST
      AND FEES

                    	
                      22

                    
	 
      	 
      	 
      	 
      
	 
      	
                      3.1

                    	
                      Interest
      on the Revolving Facility

                    	
                      22

                    
	 
      	
                      3.2

                    	
                      Commitment
      Fee

                    	
                      22

                    
	 
      	
                      3.3

                    	
                      Unused
      Line Fee

                    	
                      22

                    
	 
      	
                      3.4

                    	
                      Collateral
      Management Fee

                    	
                      22

                    
	 
      	
                      3.5

                    	
                      Computation
      of Fees; Lawful Limits

                    	
                      23

                    
	 
      	
                      3.6

                    	
                      Default
      Rate of Interest

                    	
                      23

                    
	 
      	 
      	 
      	 
      
	
                      IV.

                    	
                      GRANT
      OF SECURITY INTERESTS

                    	
                      23

                    
	 
      	 
      	 
      	 
      
	 
      	
                      4.1

                    	
                      Security
      Interest; Collateral

                    	
                      23

                    
	 
      	
                      4.2

                    	
                      Power
      of Attorney

                    	
                      23

                    
	 
      	
                      4.3

                    	
                      Further
      Assurances

                    	
                      24

                    
	 
      	 
      	 
      	 
      
	
                      V.

                    	
                      ADMINISTRATION
      AND MAINTENANCE OF COLLATERAL

                    	
                      25

                    
	 
      	 
      	 
      	 
      
	 
      	
                      5.1

                    	
                      Revolving
      Facility Collections; Repayment; Borrowing Availability and
      Lockbox

                    	
                      25

                    
	 
      	
                      5.2

                    	
                      Accounts

                    	
                      25

                    
	 
      	
                      5.3

                    	
                      Healthcare

                    	
                      26

                    
	 
      	
                      5.4

                    	
                      Medicare
      and Medicaid Account Debtors and Third-Party Payor
    Information

                    	
                      27

                    
	 
      	
                      5.5

                    	
                      Collateral
      Administration

                    	
                      27

                    
	 
      	 
      	 
      	 
      
	
                      VI.

                    	
                      CONDITIONS
      PRECEDENT

                    	
                      28

                    
	 
      	 
      	 
      	 
      
	 
      	
                      6.1

                    	
                      Conditions
      to Initial Advance and Closing

                    	
                      28

                    
	 
      	
                      6.2

                    	
                      Conditions
      to Each Advance

                    	
                      30

                    
	 
      	 
      	 
      	 
      
	
                      VII.

                    	
                      REPRESENTATIONS
      AND WARRANTIES

                    	
                      30

                    
	 
      	 
      	 
      	 
      
	 
      	
                      7.1

                    	
                      Organization
      and Authority

                    	
                      31

                    
	 
      	
                      7.2

                    	
                      Loan
      Documents

                    	
                      31

                    
	 
      	
                      7.3

                    	
                      Subsidiaries,
      Capitalization and Ownership Interests

                    	
                      31

                    
	 
      	
                      7.4

                    	
                      Properties

                    	
                      31

                    
	 
      	
                      7.5

                    	
                      Other
      Agreements

                    	
                      32

                    
	 
      	
                      7.6

                    	
                      Litigation

                    	
                      32

                    
	 
      	
                      7.7

                    	
                      Environmental
      Matters

                    	
                      32

                    
	 
      	
                      7.8

                    	
                      Potential
      Tax Liability; Tax Returns; Governmental Reports

                    	
                      33

                    
	 
      	
                      7.9

                    	
                      Financial
      Statements and Reports

                    	
                      34

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        
          
            	 
      	
                    7.10

                  	
                    Compliance
      with Law

                  	
                    34

                  
	 
      	
                    7.11

                  	
                    Intellectual
      Property

                  	
                    35

                  
	 
      	
                    7.12

                  	
                    Licenses
      and Permits; Labor

                  	
                    35

                  
	 
      	
                    7.13

                  	
                    No
      Default

                  	
                    35

                  
	 
      	
                    7.14

                  	
                    Disclosure

                  	
                    35

                  
	 
      	
                    7.15

                  	
                    Existing
      Indebtedness; Investments, Guarantees and Certain
Contracts

                  	
                    35

                  
	 
      	
                    7.16

                  	
                    Other
      Agreements

                  	
                    36

                  
	 
      	
                    7.17

                  	
                    Insurance

                  	
                    36

                  
	 
      	
                    7.18

                  	
                    Names;
      Location of Offices, Records and Collateral

                  	
                    36

                  
	 
      	
                    7.19

                  	
                    Lien
      Perfection and Priority

                  	
                    37

                  
	 
      	
                    7.20

                  	
                    Investment
      Company Act

                  	
                    37

                  
	 
      	
                    7.21

                  	
                    Regulations
      T, U and X

                  	
                    37

                  
	 
      	
                    7.22

                  	
                    Survival

                  	
                    37

                  
	 
      	 
      	 
      	 
      
	
                    VIII.

                  	
                    AFFIRMATIVE
      COVENANTS

                  	
                    37

                  
	 
      	 
      	 
      	 
      
	 
      	
                    8.1

                  	
                    Financial
      Statements, Borrowing Certificate, Financial Reports and Other
      Information

                  	
                    38

                  
	 
      	
                    8.2

                  	
                    [Reserved]

                  	
                    40

                  
	 
      	
                    8.3

                  	
                    Conduct
      of Business and Maintenance of Existence and Assets

                  	
                    40

                  
	 
      	
                    8.4

                  	
                    Compliance
      with Legal and Other Obligations

                  	
                    40

                  
	 
      	
                    8.5

                  	
                    Insurance

                  	
                    41

                  
	 
      	
                    8.6

                  	
                    Books
      and Records

                  	
                    41

                  
	 
      	
                    8.7

                  	
                    Inspections;
      Periodic Audits and Reappraisals

                  	
                    41

                  
	 
      	
                    8.8

                  	
                    Further
      Assurances; Post-Closing

                  	
                    42

                  
	 
      	
                    8.9

                  	
                    Use
      of Proceeds

                  	
                    42

                  
	 
      	
                    8.10

                  	
                    [Reserved]

                  	
                    42

                  
	 
      	
                    8.11

                  	
                    [Reserved]

                  	
                    42

                  
	 
      	
                    8.12

                  	
                    Taxes
      and Other Charges

                  	
                    42

                  
	 
      	
                    8.13

                  	
                    Payroll
      Taxes

                  	
                    43

                  
	 
      	
                    8.14

                  	
                    New
      Subsidiaries

                  	
                    43

                  
	 
      	
                    8.15

                  	
                    [Reserved]

                  	
                    43

                  
	 
      	 
      	 
      	 
      
	
                    IX.

                  	
                    NEGATIVE
      COVENANTS

                  	
                    43

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.1

                  	
                    Financial
      Covenants

                  	
                    43

                  
	 
      	
                    9.2

                  	
                    Permitted
      Indebtedness

                  	
                    44

                  
	 
      	
                    9.3

                  	
                    Permitted
      Liens

                  	
                    44

                  
	 
      	
                    9.4

                  	
                    Investments;
      New Facilities or Collateral; Subsidiaries

                  	
                    44

                  
	 
      	
                    9.5

                  	
                    Dividends;
      Redemptions

                  	
                    44

                  
	 
      	
                    9.6

                  	
                    Transactions
      with Affiliates

                  	
                    45

                  
	 
      	
                    9.7

                  	
                    Charter
      Documents; Fiscal Year; Dissolution; Use of Proceeds

                  	
                    45

                  
	 
      	
                    9.8

                  	
                    Truth
      of Statements

                  	
                    45

                  
	 
      	
                    9.9

                  	
                    IRS
      Form 8821

                  	
                    46

                  
	 
      	
                    9.10

                  	
                    Transfer
      of Assets

                  	
                    46

                  
	 
      	
                    9.11

                  	
                    OFAC

                  	
                    46

                  
	 
      	
                    9.12

                  	
                    Payroll
      Accounts

                  	
                    46

                  
	 
      	
                    9.13

                  	
                    US
      Lab Litigation

                  	
                    46

                  
	 
      	 
      	 
      	 
      
	
                    X.

                  	
                    EVENTS
      OF DEFAULT

                  	
                    47

                  
	 
      	 
      	 
      	 
      
	
                    XI.

                  	
                    RIGHTS
      AND REMEDIES AFTER DEFAULT

                  	
                    49

                  
	 
      	 
      	 
      	 
      
	 
      	
                    11.1

                  	
                    Rights
      and Remedies

                  	
                    49

                  
	 
      	
                    11.2

                  	
                    Application
      of Proceeds

                  	
                    50

                  
	 
      	
                    11.3

                  	
                    Rights
      of Lender to Appoint Receiver

                  	
                    50

                  

          

        

      

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
 

    
      
        
          
            	 
      	
                    11.4

                  	
                    Rights
      and Remedies not Exclusive

                  	
                    50

                  
	 
      	
                    11.5

                  	
                    Standards
      for Exercising Remedies

                  	
                    51

                  
	 
      	 
      	 
      	 
      
	
                    XII.

                  	
                    WAIVERS
      AND JUDICIAL PROCEEDINGS

                  	
                    51

                  
	 
      	 
      	 
      	 
      
	 
      	
                    12.1

                  	
                    Waivers

                  	
                    51

                  
	 
      	
                    12.2

                  	
                    Delay;
      No Waiver of Defaults

                  	
                    52

                  
	 
      	
                    12.3

                  	
                    Jury
      Waiver

                  	
                    52

                  
	 
      	
                    12.4

                  	
                    Cooperation
      in Discovery and Litigation

                  	
                    52

                  
	 
      	 
      	 
      	 
      
	
                    XIII.

                  	
                    EFFECTIVE
      DATE AND TERMINATION

                  	
                    53

                  
	 
      	 
      	 
      	 
      
	 
      	
                    13.1

                  	
                    Termination
      and Effective Date Thereof

                  	
                    53

                  
	 
      	
                    13.2

                  	
                    Survival

                  	
                    53

                  
	 
      	 
      	 
      	 
      
	
                    XIV.

                  	
                    GUARANTY

                  	
                    53

                  
	 
      	 
      	 
      	 
      
	 
      	
                    14.1

                  	
                    Guaranty

                  	
                    53

                  
	 
      	
                    14.2

                  	
                    Guaranty
      Absolute

                  	
                    54

                  
	 
      	
                    14.3

                  	
                    Subrogation

                  	
                    55

                  
	 
      	 
      	 
      	 
      
	
                    XV.

                  	
                    MISCELLANEOUS

                  	
                    55

                  
	 
      	 
      	 
      	 
      
	 
      	
                    15.1

                  	
                    Governing
      Law; Jurisdiction; Service of Process; Venue

                  	
                    55

                  
	 
      	
                    15.2

                  	
                    Successors
      and Assigns; Participations; New Lenders

                  	
                    56

                  
	 
      	
                    15.3

                  	
                    Application
      of Payments

                  	
                    56

                  
	 
      	
                    15.4

                  	
                    Indemnity

                  	
                    56

                  
	 
      	
                    15.5

                  	
                    Notice

                  	
                    57

                  
	 
      	
                    15.6

                  	
                    Severability;
      Captions; Counterparts; Facsimile Signatures

                  	
                    57

                  
	 
      	
                    15.7

                  	
                    Expenses

                  	
                    57

                  
	 
      	
                    15.8

                  	
                    Entire
      Agreement

                  	
                    58

                  
	 
      	
                    15.9

                  	
                    Lender
      Approvals

                  	
                    58

                  
	 
      	
                    15.10

                  	
                    Confidentiality
      and Publicity

                  	
                    58

                  
	 
      	
                    15.11

                  	
                    Release
      of Lender

                  	
                    59

                  
	 
      	
                    15.12

                  	
                    Agent

                  	
                    59

                  
	 
      	
                    15.13

                  	
                    Reserved

                  	
                    59

                  
	 
      	
                    15.14  

                  	
                    Agreement
      Controls

                  	
                    60

                  

          

        

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    REVOLVING
CREDIT AND SECURITY AGREEMENT

    

    THIS REVOLVING CREDIT AND SECURITY
AGREEMENT (the “Agreement”) dated as of
February 1, 2008 is entered into between NeoGenomics, Inc., a Florida
corporation (“Borrower”), NeoGenomics, Inc., a Nevada
corporation (“Guarantor”, together with
Borrower, individually a “Credit Party” and
collectively, the “Credit
Parties”) and CAPITALSOURCE FINANCE LLC, a
Delaware limited liability company (the “Lender”).

     

    WHEREAS,
the Credit Parties have requested that Lender make available to Borrower a
revolving credit facility (the “Revolving Facility”) in a
maximum principal amount at any time outstanding of up to Three Million Dollars ($3,000,000)
(the “Facility Cap”),
the proceeds of which shall be used by Borrower as a provider of healthcare
services and for the generation of receivables and for any other lawful
purpose permitted under this Agreement and for payments to Lender hereunder;
and

     

    WHEREAS,
Lender is willing to make the Revolving Facility available to Borrower upon the
terms and subject to the conditions set forth herein.

     

    NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and adequacy of which hereby are acknowledged, and
intending to be legally bound, Credit Parties and Lender hereby agree as
follows:

     

    
      	
              I.

            	
              DEFINITIONS

            

    

     

    1.1         General
Terms

     

    In
addition to the definitions above and elsewhere in this Agreement, the terms
listed in Annex
I hereto shall have the meanings given such terms in Annex I, which are
incorporated herein and made a part hereof.  All capitalized terms
used which are not specifically defined herein shall have meanings provided in
Article 9 of the UCC to the extent the same are used or defined
therein.  Unless otherwise specified herein or in Annex I, any
agreement, contract or instrument referred to herein or in Annex I shall mean
such agreement, contract or instrument as modified, amended, restated or
supplemented from time to time.  Unless otherwise specified, as used
in the Loan Documents or in any certificate, report, instrument or other
document made or delivered pursuant to any of the Loan Documents, all accounting
terms not defined in Annex I or elsewhere
in this Agreement shall have the meanings given to such terms in and shall be
interpreted in accordance with GAAP.  References herein to “Eastern Time” shall
mean eastern standard time or eastern daylight savings time as in effect on any
date of determination in the eastern United States of America.  The
terms “herein”,
“hereof” and
similar terms refer to this Agreement as a whole.  In the computation
of periods of time from a specified date to a later specified date in any Loan
Document, the terms “from” means “from and
including” and the words “to” and “until” each mean “to
but excluding” and the word “through” means “to
and including.”  In any other case, the term “including” when used
in any Loan Document means “including without limitation.”  The term
“documents” means all
writings, however evidenced and whether in physical or electronic form,
including all documents, instruments, agreements, notices, demands,
certificates, forms, financial statements, opinions and reports.  The
term “incur”
means incur, create, make, issue, assume or otherwise become directly or
indirectly liable in respect of or responsible for, in each case whether
directly or indirectly, and the terms "incurrence" and "incurred" and similar
derivatives shall have correlative meanings.  Unless otherwise
expressly indicated, the meaning of any term defined (including by reference) in
any Loan Document shall be equally applicable to both the singular and plural
forms of such term.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    In the
event that any Accounting Change (as defined below) shall occur and such change
results in a change in the method of calculation of financial covenants,
standards or terms in this Agreement, then Borrower and Lender agree to
enter into good faith negotiations in order to amend such provisions of this
Agreement so as to equitably reflect such Accounting Change with the
desired result that the criteria for evaluating Borrower’s financial
condition shall be the same after such Accounting Change as if such
Accounting Change had not been made.  Until such time as such an
amendment shall have been executed and delivered by Borrower and Lender, all
financial covenants, standards and terms in this Agreement shall continue to be
calculated or construed as if such Accounting Change had not
occurred.

     

    1.2         Definitions

     

    “Acceptance Notice”
shall have the meaning given such term in Section
8.11.

     

    “Accounting Change”
refers to changes in accounting principles required by the promulgation of any
rule, regulation, pronouncement or opinion by the Financial Accounting Standards
Board of the American Institute of Certified Public Accountants or, if
applicable, the U.S. Securities and Exchange Commission.

     

    “Accounts” shall mean
“accounts” as defined in Section 9-102 of the UCC (including Health Care
Insurance Receivables).

     

    “Account Debtor” shall
mean “account debtor” as defined in Section 9-102 of the UCC.

     

    “Accumulated
Distribution” shall have the meaning given to it in the definition of
“Permitted
Distribution”.

     

    “Accumulated Distribution
Fiscal Quarter” shall have the meaning given to it in the definition of
“Permitted
Distribution”.

     

    “Advance” shall mean a
borrowing under the Revolving Facility.  Any amounts paid by Lender on
behalf of Borrower or Guarantor under any Loan Document shall be an Advance for
purposes of the Agreement.

     

    “Affiliate” shall
mean, as to any Person (a) any other Person that, directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under common
control with, such Person, (b) any other Person who is a director or officer (i)
of such Person, (ii) of any Subsidiary of such Person, or (iii) of any Person
described in clause (a) above with respect to such Person, (c) any other Person
which, directly or indirectly through one or more intermediaries, is the
beneficial or record owner (as defined in Rule 13d-3 of the Securities Exchange
Act of 1934, as amended, as the same is in effect on the date hereof) of five
percent (5%) or more of any class of the outstanding voting stock, securities or
other equity or ownership interests of such Person and (d) in the case such
Person is an individual, any other Person who is an immediate family member,
spouse or lineal descendant of individuals of such Person or any Affiliate of
such Person.  For purposes of this definition, the term “control” (and
the correlative terms, “controlled by” and “under common control with”) shall
mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies, whether through ownership of securities
or other interests, by contract or otherwise.  “Affiliate” shall
include any Subsidiary.  Notwithstanding anything herein to the
contrary, in no event shall Lender be considered as “Affiliate” of Borrower or
Guarantor.

     

    “Applicable Rate”
shall mean the interest rate applicable from time to time to Loans under the
Agreement.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    “Availability” shall
mean the value, in U.S. Dollars of eighty-five percent (85%) of the Borrowing
Base minus, if applicable amounts reserved pursuant to this
Agreement.

     

    “Borrowing Base” shall
mean, as of any date of determination, the net collectible Dollar value of
Eligible Accounts, as determined with reference to the most recent Borrowing
Certificate and otherwise in accordance with the Agreement; provided, however, that if as
of such date the most recent Borrowing Certificate is of a date more than four
Business Days before or after such date, the Borrowing Base shall be determined
by Lender in its Permitted Discretion. For purposes hereof, the net collectible
Dollar value of Eligible Accounts is the amount due to Borrower as a result of a
contractual right of payment from third-party payors less deductible obligations
and contractual allowances as determined and approved by Lender in its Permitted
Discretion.

     

    “Borrowing
Certificate” shall mean a Borrowing Certificate substantially in the form
of Exhibit A
attached hereto.

     

    “Borrowing Date” shall
the mean the date requested for an Advance by Borrower pursuant to Section
2.3.

     

     “Business Day” shall
mean any day other than a Saturday, Sunday or other day on which the Federal
Reserve or Lender is closed.

     

    “Capital Expenditures”
shall mean, for any Test Period, the sum (without duplication) of all
expenditures (whether paid in cash or accrued as liabilities) during the Test
Period that are or should be treated as capital expenditures under
GAAP.

     

    “Capital Lease” shall
mean, as to any Person, a lease of any interest in any kind of property or asset
by that Person as lessee that is, should be or should have been recorded as a
“capital lease” in accordance with GAAP.

     

    “Capital Stock” shall
mean any and all shares, interests, participations or other equivalents (however
designated) of capital stock of a corporation, any and all equivalent ownership
interests in a Person (other than a corporation) and any and all warrants,
rights or options to purchase any of the foregoing.

     

    “Capitalized Lease
Obligations” shall mean all obligations of any Person under Capital
Leases, in each case, taken at the amount thereof accounted for as a liability
in accordance with GAAP.

     

     “Change of Control”
shall mean, with respect to Borrower or Guarantor, the occurrence of any of the
following:  (i) a merger, consolidation, reorganization,
recapitalization or share or interest exchange, sale or transfer or any other
transaction or series of transactions in which its stockholders, managers,
partners or interest holders immediately prior to such transaction or series of
transactions receive, in exchange for the stock or interests owned by them,
cash, property or securities of the resulting or surviving entity or any
Affiliate thereof, and, as a result thereof, Persons who, individually or in the
aggregate, were holders of fifty percent (50%) or more of its voting stock,
securities or equity, partnership or ownership interests immediately prior to
such transaction or series of transactions hold less than fifty percent (50%) of
the voting stock, securities or other equity, partnership or ownership interests
of the resulting or surviving entity or such Affiliate thereof, calculated on a
fully diluted basis, (ii) a direct or indirect sale, transfer or other
conveyance or disposition, in any single transaction or series of transactions,
of all or substantially all of its assets, (iii) the initial public offering of
its securities, (iv) any “change in/of control” or “sale” or “disposition” or
similar event as defined in any document governing indebtedness of such Person
which gives the holder of such indebtedness the right to accelerate or otherwise
require payment of such indebtedness prior to the maturity date thereof, or (v)
the replacement of a majority of the board of directors of Borrower over a
one-year period from the directors who constituted the board of directors of
such Borrower at the beginning of such period and such replacement shall not
have been approved by a vote of at least a majority of the board of directors of
such Borrower then still in office who either are members of such board of
directors at the beginning of such period or whose election as a member of such
board of directors was previously so approved.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    “Chattel Paper”
shall mean “chattel paper” as defined in Section 9-102 of the UCC, whether
tangible or electronic.

     

    “Closing” shall mean
the satisfaction, or written waiver by Lender, of all of the conditions
precedent set forth in the Agreement required to be satisfied prior to the
consummation of the transactions contemplated hereby.

     

    “Closing Date” shall
mean the date upon which the Closing occurs.

     

    “Collateral” shall
mean all of the property described below in, to, or under which a Borrower now
has or hereafter acquires any right, title or interest, whether present, future,
or contingent, including any such property acquired by assignment:

     

    (a)           All
of Borrower’s now-owned and hereafter acquired or arising Accounts, accounts
receivable and rights to payment of every kind and description related to
Accounts, and all of Borrower’s contract rights, chattel paper, documents and
instruments with respect to such Accounts and accounts receivable, and all of
Borrower’s rights, remedies, security and liens, in, to and in respect of the
Accounts, including, without limitation, rights of stoppage in transit,
replevin, repossession and reclamation and other rights and remedies of an
unpaid vendor, lienor or secured party, guaranties or other contracts of
suretyship with respect to the Accounts, deposits, Letters of Credit, Supporting
Obligations or other security for the obligation of any Account Debtor, and
credit and other insurance relating to such Accounts and accounts
receivable;

     

    (b)           All
of Borrower’s right, title and interest in, to and in respect of all goods
relating to, or which by sale have resulted in, Accounts, including, without
limitation, all goods described in invoices or other documents or instruments
with respect to, or otherwise representing or evidencing, any Account, and all
returned, reclaimed or repossessed goods;

     

    (c)           All
of Borrower’s now owned or hereafter acquired (i) Lockbox Accounts (and the
funds contained therein) and (ii) any deposit accounts (and the funds contained
therein), other than the Lockbox Accounts, into which Accounts are deposited, to
the extent Accounts are contained therein;

     

    (d)           All
of Borrower’s now owned and hereafter acquired or arising general intangibles
and other property of every kind and description with respect to, evidencing or
relating to its Accounts and other rights to payment, including, but not limited
to, all existing books and records, as the same relate to the
Accounts;

     

    (e)           The
proceeds of all of the foregoing (including, without limitation, insurance
proceeds) related to losses with respect to Collateral such as business
interruption insurance or other insurance proceeds related specifically to
losses from the Collateral.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    “Collateral Management
Fee” shall mean a monthly fee to be paid by Borrower to Lender in an
amount equal to 0.025% per month calculated on the basis of the daily average
amount of the balances under the Revolving Facility outstanding during the
preceding month.

     

    “Commercial Tort
Claims” shall mean “Commercial Tort Claims” as defined in Section 9-102
of the UCC.

     

    “Compliance
Certificate” shall mean a compliance certificate substantially in the
form of Exhibit
B attached hereto.

     

    “Concentration
Account” shall mean a depository account maintained by Lender or an
affiliate of Lender at such bank as Lender may communicate to Borrower from time
to time.

     

    “Credit Party” shall
have the meaning set forth in the first paragraph of this
Agreement.

     

    “Debtor Relief Law”
shall mean, collectively, the Bankruptcy Code of the United States of America
and all other applicable federal and state liquidation, conservatorship,
bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization
or similar debtor relief laws from time to time in effect affecting the rights
of creditors generally, as amended and in effect from time to time.

     

    “Default” shall mean
any event, fact, circumstance or condition that, with the giving of applicable
notice or passage of time or both, would constitute or be or result in an Event
of Default.

     

    “Default Rate” shall
mean at any time the Applicable Rate in effect at such time plus three percent
(3%) per annum.

     

    “Denial Disclosure”
shall have the meaning given to it in Section 7.18.

     

    “Deposit Accounts”
shall mean “deposit accounts” as defined in Section 9-102 of the
UCC.

     

    “Distribution” shall
mean any direct or indirect dividend, distribution or other payment of any kind
or character (whether in cash, securities or other property) in respect of any
equity interests.

     

    “Dollars” and the sign
“$” each mean
the lawful money of the United States of America.

     

    “Documents” shall mean
“documents” as defined in Section 9-102 of the UCC.

     

     “Eligible Accounts”
shall mean each Account arising in the ordinary course of Borrower’s business
from the sale or lease of goods or rendering of Services which Lender, in its
Permitted Discretion, deems an Eligible Account unless:

     

    (a)           such
Account is not subject to a valid perfected first priority security interest in
favor of Lender, subject to no other Lien;

     

    (b)           such
Account is not evidenced by an invoice, statement or other documentary evidence
satisfactory to Lender;

     

    (c)           such
Account or any portion thereof (in which case only such portion shall not be an
Eligible Account) is payable by a beneficiary, recipient or subscriber
individually and not directly by a Medicaid/Medicare Account Debtor or
commercial medical insurance carrier, or client acceptable to Lender in its
Permitted Discretion;

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (d)           such
Account arises out of Services rendered or a sale or lease made to, or out of
any other transaction between Borrower or any of its Subsidiaries and, one or
more Affiliates of Borrower;

     

    (e)           such
Account remains unpaid for longer than (i) one hundred fifty (150) calendar days after the
applicable Services were rendered with respect to Accounts payable by a
Medicaid/Medicare Account Debtor or commercial medical insurance carrier
acceptable to Lender and (ii) one hundred twenty (120) calendar days after the
applicable Services were rendered with respect to all other Account
Debtors;

     

    (f)           with
respect to all Accounts owed by any particular Account Debtor (other than
Accounts from Medicaid/Medicare Account Debtors) or its Affiliates, if more than
twenty five percent (25%) of the aggregate balance of all such Accounts owing
from such Account Debtor and its Affiliates are ineligible due to the
requirements of clause (e) of this Section or such higher threshold which may be
agreed in writing by Lender for any specific Account Debtor;

     

    (g)           with
respect to all Accounts owed by any particular Account Debtor or its Affiliates,
twenty-five percent (25%) or more of all such Accounts are deemed not to be
Eligible Accounts for any reason hereunder (which percentage may, in Lender’s
Permitted Discretion, be increased or decreased);

     

    (h)           with
respect to all Accounts owed by any particular Account Debtor or its Affiliates
(other than Medicaid/Medicare Account Debtors) if such Accounts exceed twenty
percent (20%) of the net collectible Dollar value of all Eligible Accounts at
any one time (including Accounts from Medicaid/Medicare Account Debtors), then
the amount by which such Accounts for that particular Account Debtor or its
Affiliates exceed twenty percent (20%) of the net collectible Dollar value of
all Eligible Accounts shall not be included as Eligible Accounts;

     

    (i)           any
covenant, agreement, representation or warranty contained in any Loan Document
with respect to such Account has been breached and remains uncured;

     

    (j)           the
Account Debtor for such Account has commenced a voluntary case under any Debtor
Relief Law or has made an assignment for the benefit of creditors, or a decree
or order for relief has been entered by a court having jurisdiction in respect
of such Account Debtor in an involuntary case under any Debtor Relief Law, or
any other petition or application for relief under any Debtor Relief Law has
been filed against such Account Debtor, or such Account Debtor has failed,
suspended business, ceased to be solvent, called a meeting of its creditors, or
has consented to or suffered a receiver, trustee, liquidator or custodian to be
appointed for it or for all or a significant portion of its assets or
affairs;

     

    (k)           such
Account arises from the sale or lease of property or Services rendered to one or
more Account Debtors outside the United States (including any territory or
possession of the United States that has adopted Article 9 of the UCC) or that
have their principal place of business or chief executive offices outside the
United States (including any territory or possession of the United States that
has adopted Article 9 of the UCC);

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (l)         
  such Account represents the sale or lease of goods or rendering of
Services to an Account Debtor on a bill-and-hold, guaranteed sale,
sale-and-return, sale on approval, consignment or any other repurchase or return
basis or is evidenced by Chattel Paper or an Instrument of any kind or has been
reduced to judgment;

     

    (m)           the
applicable Account Debtor for such Account is any Governmental Authority
(excluding Medicaid/Medicare Account Debtors), unless rights to payment of such
Account have been assigned to Lender pursuant to the Assignment of Claims Act of
1940, as amended (31 U.S.C. Section 3727, et seq. and 41 U.S.C.
Section 15, et seq.), or otherwise only if all applicable statutes or
regulations respecting the assignment of Government Accounts have been complied
with as determined by Lender in its Permitted Discretion;

     

    (n)           such
Account is subject to any offset, credit (including any resource or other income
credit or offset) deduction, defense, discount, chargeback, freight claim,
allowance, adjustment, dispute or counterclaim (each an “Adjustment”), or is
contingent in any respect or for any reason; provided, that, the discounted
amount of such Account after giving effect to such Adjustment will be considered
an Eligible Account;

     

    (o)           there
is any agreement with an Account Debtor for any deduction from such Account;
provided, that, the discounted
amount of such Account after giving effect to such discounts and allowances
shall be considered an Eligible Account;

     

    (p)           any
return, rejection or repossession of goods or Services related to it has
occurred;

     

    (q)           such
Account is not payable to Borrower;

     

    (r)           a
Borrower has agreed to accept or has accepted any non-cash payment for such
Account;

     

    (s)           with
respect to any Account arising from the sale of goods, the goods have not been
shipped to the Account Debtor or its designee;

     

    (t)           with
respect to any Account arising from the performance of Services, the Services
have not been actually performed or the Services were undertaken in violation of
any law; or

     

    (u)           such
Account fails to meet such other specifications and requirements which may from
time to time be established by Lender or is not otherwise satisfactory to
Lender, as determined in Lender’s Permitted Discretion.

     

    “EMTALA” shall mean
the Emergency Medical Treatment and Active Labor Act, as amended, and the
regulations thereunder.

     

    “Environmental Laws”
shall mean any and all laws, rules, orders, regulations, statutes, ordinances,
guidelines, codes, decrees, or other legally enforceable requirements
(including, without limitation, common law) of any international authority,
foreign government, the United States, or any state, local, municipal or other
governmental authority, regulating, relating to or imposing liability or
standards of conduct concerning protection of the environment, or protection of
human health or employee health and safety (as affected by the environment or by
any substance the exposure to which is reasonably suspected of causing harm to
human health), as has been, is now, or may at any time hereafter be, in effect
to which the Borrower is subject.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     “Equipment” shall mean
“equipment” as defined in Section 9-102 of the UCC.

     

     “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended, and the regulations
thereunder.

     

    “Event of Default”
shall mean the occurrence of any event set forth in Article X.

     

    “Excess Cash Flow”
shall mean, for any fiscal year (or for such other period as may be specifically
provided for herein), as calculated for Borrowers and their Subsidiaries on a
consolidated basis, without duplication, an amount equal to the sum of (a) Net
Income (as defined in Annex I) for such period, plus (b) an amount equal to the
amount of depreciation expenses, amortization expense (including the
amortization of goodwill), accrued non-cash interest expense and all other
non-cash charges deducted in arriving at such Net Income, plus (c) an amount
equal to the aggregate Net Cash Proceeds of the sale, lease, transfer or other
disposition of assets by Borrowers during such period to the
extent  not required to be applied to mandatory prepayments or
payments on the Loans,  plus (d) an amount equal to the net loss on
the sale, lease, transfer or other disposition of assets by Borrowers during
such period to the extent deducted in arriving at such Net Income, plus (e) an
amount equal to any tax refunds or credits received by Borrowers during such
period, plus (f) other extraordinary or non-recurring charges that would not
have otherwise been incurred in the ordinary course of business, less (g) an
amount equal to the unfinanced permitted Capital Expenditures of Borrowers for
such period, less (h) an amount equal to the sum of all regularly scheduled
payments (to the extent such payments have not already been deducted in arriving
at Net Income) and optional and mandatory prepayments of principal on
Indebtedness for money borrowed actually made during such period to the extent
permitted hereunder, less (i) an amount equal to the net gain on the sale,
lease, transfer or other disposition of assets by Borrowers during such period
to the extent included in arriving at such Net Income, less (j) other
extraordinary or non-recurring gains that would not have otherwise been incurred
in the ordinary course of business.

     

    “Facility Cap” shall
have the meaning given the term in the Recitals of this Agreement.

     

    “Federal Reserve”
shall mean the Federal Reserve Bank of the United States.

     

    “Fixtures” shall mean
“fixtures” as defined in Section 9-102 of the UCC.

     

    “GAAP” shall mean
generally accepted accounting principles in the United States as in effect on
the Closing Date.

     

    “General Intangibles”
shall mean “general intangibles” as defined in Section 9-102 of the
UCC.

     

    “Goods” shall mean
“goods” as defined in Section 9-102 of the UCC.

     

     “Government Account”
shall mean all Accounts arising out of or with respect to any Government
Contract.

     

    “Government Contract”
shall mean all contracts with any Governmental Authority.

     

     “Governmental
Authority” shall mean any federal, state, municipal, national, local or
other governmental department, court, commission, board, bureau, agency or
instrumentality or political subdivision thereof, or any entity or officer
exercising executive, legislative or judicial, regulatory or administrative
functions of or pertaining to any government or any court, in each case, whether
of the United States or a state, territory or possession thereof, a foreign
sovereign entity or country or jurisdiction or the District of
Columbia.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    “Guaranteed
Obligations” shall have the meaning given such term in Section 14.1
hereof.

     

    “Guarantor” shall have
the meaning set forth in the first paragraph of this Agreement.

     

    “Guaranty” shall mean,
collectively and each individually, all guaranties executed by
Guarantor.

     

    “Hazardous Substances”
shall mean, without limitation, any flammable explosives, radon, radioactive
materials, asbestos, urea formaldehyde foam insulation, polychlorinated
biphenyls, petroleum and petroleum products, methane, hazardous materials,
hazardous wastes, hazardous or toxic substances or related materials as defined
in or subject to any applicable Environmental Law.

     

    “Healthcare Laws”
shall mean all applicable statutes, laws, ordinances, rules and regulations of
any Governmental Authority with respect to regulatory matters primarily relating
to patient healthcare, healthcare providers and healthcare services (including
without limitation Section 1128B(b) of the Social Security Act, as amended,
42 U.S.C. Section 1320a-7(b) (Criminal Penalties Involving Medicare or
State Health Care Programs), commonly referred to as the “Federal Anti-Kickback
Statute,” and the Social Security Act, as amended, Section 1877, 42 U.S.C.
Section 1395nn (Prohibition Against Certain Referrals), commonly referred to as
“Stark Statute”), and 31 U.S.C. Section 3279 et seq. (the False
Claims Act) to which Borrower is subject.

     

    “HIPAA” shall mean the
Health Insurance Portability and Accountability Act of 1996 (Pub. L. No.
104-191) and the regulations promulgated thereunder.

     

    “HUD Application”
shall have the meaning given such term in Section
8.11.

     

    “Indebtedness” of any
Person shall mean, without duplication, (a) all obligations for borrowed
money, (b) all obligations evidenced by bonds, debentures, notes, or other
similar instruments and all reimbursement or other obligations in respect of
letters of credit or bankers acceptances, (c) all Capitalized Lease
Obligations, (d) all obligations or liabilities of others secured by a Lien
on any asset of such Person or its Subsidiaries, irrespective of whether such
obligation or liability is assumed, (e) all obligations to pay the deferred
purchase price of assets (other than trade payables incurred in the ordinary
course of business and not outstanding more than one hundred twenty (120)
calendar days after the date such payable was created) or such longer period as
shall be agreed in writing by Lender and Borrower, (f) all net obligations
owing to counterparties under Hedging Agreements, (g) all obligations with
respect to redeemable Capital Stock or repurchase obligations under any Capital
Stock issued by such Person, (h) the present value of future rental payments
under all synthetic leases (excluding specifically any operating leases or real
estate leases) and (i) any obligation guaranteeing or intended to guarantee
(whether directly or indirectly guaranteed, endorsed, co-made, discounted, or
sold with recourse) any obligation of any other Person that constitutes
Indebtedness under any of clauses (a) through (h) above.

    

    “Indemnified Person”
shall have the meaning given such term in Section
15.4.

    

    “Initial Advance”
shall mean the initial Advance.

    

    “Instrument” shall
mean “instrument” as defined in Section 9-102 of the UCC.

    

    “Insured Event” shall
have the meaning given such term in Section
15.4.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    “Insurer” shall mean a
Person that insures another Person against any costs incurred in the receipt by
such other Person of Services, or that has an agreement with Borrower to
compensate it for providing Services to such Person.

    

    “Intellectual
Property” shall mean all patents, patent applications, trademarks,
trademark applications, service marks, registered copyrights, copyright
applications, copyrights, trade names, trade secrets and software and all rights
in the foregoing.

    

    “Inventory” shall mean
“inventory” as defined in Section 9-102 of the UCC.

     

    “Investment Property”
shall mean “investment property” as defined in Section 9-102 of the
UCC.

     

     “Landlord Waiver and
Consent” shall mean a waiver/consent from the owner/lessor/mortgagee of
any premises either owned or occupied by Borrower at which any of the Collateral
is now or hereafter located for the purpose of providing Lender access to such
Collateral, in each case as such may be modified, amended or supplemented from
time to time.

     

    “Letter of Credit
Rights” shall mean “letter of credit rights” as defined in Section 9-102
of the UCC, whether or not the letter of credit is evidenced by a
writing.

     

    “Liability Event”
shall mean any event, fact, condition or circumstance (i) in or for which
Borrower becomes liable or otherwise responsible for any amount over $50,000
owed or owing to any Medicaid,  Medicare or CHAMPUS/TRICARE program by
a provider under common ownership with such Borrower or any provider owned by
such Borrower pursuant to any applicable law, ordinance, rule, decree, order or
regulation of any Governmental Authority after the failure of any such provider
to pay any such amount when owed or owing, (ii) in which Medicaid, Medicare or
CHAMPUS/TRICARE payments to Borrower are lawfully set-off against payments to
such Borrower to satisfy any liability of or for any amounts over $50,000 owed
or owing to any Medicaid, Medicare or CHAMPUS/TRICARE program by a provider
under common ownership with such Borrower or any provider owned by such Borrower
pursuant to any applicable law, ordinance, rule, decree, order or regulation of
any Governmental Authority, or (iii) any of the foregoing under clauses
(i) or (ii) in each case pursuant to statutory or regulatory provisions
that are similar to any applicable law, ordinance, rule, decree, order or
regulation of any Governmental Authority referenced in clauses (i) and (ii)
above or successor provisions thereto.

     

    “LIBOR” shall mean a
rate of interest equal to the rate per annum (rounded upwards to the nearest
1/100th of 1%) at which Dollar deposits for a period of one month are offered in
the London interbank eurodollar market as displayed in the Bloomberg Financial
Markets system (or as otherwise determined by Lender in its sole discretion) as
of 11:00 A.M. (London time) on the applicable date of
determination.

     

    “Lien” shall mean any
mortgage, pledge, security interest, encumbrance, restriction, lien or charge of
any kind (including any agreement to give any of the foregoing, any conditional
sale or other title retention agreement or any lease in the nature thereof), or
any other arrangement pursuant to which title to the property is retained by or
vested in some other Person for security purposes.

     

    “Liquidity Factors”
shall mean percentages which Lender, in its credit judgment, may apply to
Eligible Accounts by payor class based upon Borrower’s actual recent collection
history for each such payor class (i.e. Medicare, Medicaid, commercial
insurance, etc.) in a manner consistent with Lender’s underwriting practices and
procedures, including, without limitation, Lender’s review and analysis of,
among other things, Borrower’s historical returns, rebates, discounts, credits
and allowances, to adjust the Availability.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    “Loan” or “Loans” shall mean,
individually and collectively, all Advances.

     

    “Loan Documents” shall
mean, collectively and each individually, this Agreement and all other
agreements, documents, instruments and certificates heretofore or hereafter
executed or delivered to, or on behalf of, Lender in connection with this
Agreement or the Loans, as the same may be amended, modified or supplemented
from time to time.

     

    Lockbox Accounts”
shall mean, collectively and each individually, the Deposit Accounts maintained
by Borrower at the Lockbox Banks into which all collections or payments on
Borrower’s Accounts and other Collateral are paid and which Accounts and other
Collateral are subject to Lender’s security interest granted by a
Borrower.

     

    “Lockbox Agreement”
shall mean an agreement among Lender, Borrower who has granted a security
interest in a Deposit Account and any of the Lockbox Banks governing the Lockbox
Accounts, in form and substance satisfactory to Lender.

     

    “Lockbox Banks”
shall  mean, collectively and each individually, the federally insured
banks acceptable to Lender where Borrower who have granted security interests in
a Lockbox Account shall maintain the Lockbox Accounts.

     

    “Management or Service
Fee” shall mean any management, service or related or similar fee paid by
Borrower to any Person with respect to any facility owned, operated or leased by
Borrower.

     

    “Material Adverse
Change” shall mean any event, condition or circumstance or set of events,
conditions or circumstances or any change(s) which (i) has, had or would
reasonably be likely to have any material adverse effect upon or change in the
validity or enforceability of any Loan Document, (ii) has been or would
reasonably be expected to be adverse to the value of any material portion of the
Collateral, or to the priority of Lender’s security interest in any portion of
the Collateral, (iii) has been or would reasonably be expected to be materially
adverse to the business, operations, prospects, properties, assets, liabilities
or financial condition of any Credit Party, either individually or taken as a
whole, or (iv) has materially impaired or would reasonably be likely to
materially impair the ability of any Borrower to pay any portion of the
Obligations or otherwise perform the Obligations or to consummate the
transactions under the Loan Documents executed by such Person.

     

    “Materials of Environmental
Concern” shall mean  any gasoline or petroleum (including crude
oil or any fraction thereof) or petroleum products, polychlorinated biphenyls,
urea-formaldehyde insulation, asbestos, pollutants, contaminants, radioactivity,
and any other substances or forces of any kind, whether or not any such
substance or force is defined as hazardous or toxic under any Environmental Law,
that is regulated pursuant to or would reasonably be expected to give rise to
liability under any Environmental Law.

     

    “Medicaid/Medicare Account
Debtor” shall mean any Account Debtor which is (i) the United States of
America acting under the Medicaid or Medicare program established pursuant to
the Social Security Act or any other federal healthcare program, including,
without limitation, TRICARE (f/k/a CHAMPUS), (ii) any state or the District of
Columbia acting pursuant to a health plan adopted pursuant to Title XIX of the
Social Security Act or any other state health care program, or (iii) any agent,
carrier, administrator or intermediary for any of the foregoing.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    “Minimum Termination
Fee” shall mean (for the time period indicated) the amount equal to (i)
7.5% of the Facility Cap, if the Revolver Termination is at any time before the
first anniversary of the Closing Date; (ii) 1% of the Facility Cap, if the
Revolver Termination is after the first anniversary of the Closing Date but
before the second anniversary of the
Closing Date; and (iii) 0.5% of the Facility Cap, if the Revolver Termination is
on or after the second anniversary of the
Closing Date but before the third anniversary of the Closing
Date.  There shall be no Minimum Termination Fee if the Revolver
Termination occurs within five (5) days of the end of the Term.

    

    “Net Cash Proceeds”
shall mean, with respect to any sale, lease, transfer or other disposition of
assets by any Person, the amount of cash received (directly or indirectly) from
time to time (whether as initial consideration or through the payment or
disposition of deferred consideration) by or on behalf of such Person in
connection therewith after deducting therefrom (A) the amount of any Permitted
Indebtedness secured by any Permitted Lien on such property which is required to
be, and is, repaid in connection with such disposition, (B) reasonable expenses
related thereto incurred by such Person in connection therewith, (C) transfer
taxes paid to any taxing authorities by such Person in connection therewith, (D)
net income taxes to be paid in connection with such disposition and (E) with
respect to any lease, the cost of any tenant improvements paid by Borrower in
connection therewith.

    

    “Note” or “Notes” shall mean any
promissory note or notes issued pursuant to Section
2.7.

     

    “Obligations” shall
mean all present and future obligations, Indebtedness and liabilities of
Borrower or Guarantor to Lender at any time and from time to time of every kind,
nature and description, direct or indirect, secured or unsecured, joint and
several, absolute or contingent, due or to become due, matured or unmatured, now
existing or hereafter arising, contractual or tortious, liquidated or
unliquidated, (whether or not evidenced by a Note), including, without
limitation, all principal, interest, applicable fees, charges and expenses and
all amounts paid or advanced by Lender on behalf of or for the benefit of
Borrower or Guarantor for any reason at any time, including in each case
obligations of performance as well as obligations of payment and interest that
accrue after the commencement of any proceeding under any Debtor Relief Law by
or against any such Person.

     

    “OFAC” shall mean the
U.S. Department of Treasury’s Office of Foreign Asset Control.

     

    “Organizational and Good
Standing Documents” shall mean, for any Person (i) a copy of the
certificate of incorporation or formation (or other like organizational
document) certified as of a date satisfactory to Lender before the Closing Date
by the applicable Governmental Authority of the jurisdiction of incorporation or
organization of such Person, (ii) a copy of the bylaws or similar organizational
documents of certified as of a date satisfactory to Lender before the Closing
Date by the corporate secretary or assistant secretary of such Person,
(iii) an original certificate of good standing as of a date acceptable to
Lender issued by the applicable Governmental Authority of the jurisdiction of
incorporation or organization of such Person and of every other jurisdiction in
which such Person has an office or conducts business or is otherwise required to
be in good standing, and (iv) copies of the resolutions of the board of
directors or managers (or other applicable governing body) and, if required,
stockholders, members or other equity owners authorizing the execution, delivery
and performance of the Loan Documents to which such Person is a party, certified
by an authorized officer of such Person as of the Closing Date.

     

    “Paid in Full” and
“Payment in
Full” mean, with respect to the Obligations, all amounts owing with
respect thereto (including any interest accruing thereon after the commencement
of any proceeding under any Debtor Relief Law by or against Borrower, whether or
not allowed as a claim against such Borrower in such proceeding, but excluding
as yet unasserted contingent obligations), have been fully, finally and
completely paid in cash.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    “Parent Indebtedness”
shall mean Indebtedness incurred by Borrower from Guarantor, provided, that, such
Indebtedness shall be (i) up to $2,000,000 outstanding in the aggregate at any
time, (ii) on an unsecured basis, (iii) subordinated in remedies to all of the
Obligations and to all of Lender’s rights in form and substance satisfactory to
Lender and (iv) be subordinate in right of payment to the Obligations and shall
only be repaid pursuant to a Permitted Distribution until the Obligations are
Paid in Full; provided, that, at the request
of Lender, the terms of the provisions of (iii) and (iv) shall be contained in a
written subordination agreement between Lender and Parent acknowledged and
agreed by Borrower, in form and substance satisfactory to Lender.

     

    “Patriot Act” shall
mean the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, P.L. 107-56, as
amended.

    

    “Payment Intangible”
shall mean “payment intangible” as defined in Section 9-102 of the
UCC.

     

    “Payment Office” shall
mean initially the address set forth beneath Lender’s name on the signature page
of the Agreement, and thereafter, such other office of Lender, if any, which it
may designate by notice to Borrower to be the Payment Office.

     

    “Permit” shall mean
collectively all licenses, leases, powers, permits, franchises, certificates,
authorizations, approvals, certificates of need, provider numbers and other
rights.

     

    “Permitted
Acquisition” shall mean any acquisition by Borrower, whether through a
purchase of stock, membership interests or otherwise or the purchase of assets
or through a merger, consolidation or amalgamation, of another Person, or the
assets constituting an entire or any portion of any business or operating
business unit or division of another Person or securities of such other Person
that satisfies the requirements set forth in Sections 8.14 and
9.4
hereof.

     

    “Permitted
Discretion” shall mean a
determination or judgment made by Lender in good faith in the exercise of
reasonable (from the perspective of a secured lender) business
judgment.

     

    “Permitted
Distributions” shall mean Distributions to Guarantor for the purpose of
making principal payments on the Parent Indebtedness and/or as periodic cash
distributions to Guarantor as a shareholder of Borrower, provided, that (i) such
Permitted Distributions are made no more than once per fiscal quarter thereafter
and (ii) all of the following conditions are satisfied with respect to each such
Distribution: (a) no Default or Event of Default has occurred and is continuing
or would arise as a result of such Distribution, (b) after giving effect to such
Distribution, Borrower is in compliance on a pro forma basis with the financial
covenants set forth in Annex 1 (recomputed for the most recent three month
period for which monthly financial statements have been delivered in accordance
with the terms hereof after giving effect thereto); provided, however, that in
situations where there is an Accumulated Distribution (as defined below) being
made with respect to any Accumulated Distribution Fiscal Quarters, only that
portion of the Distribution that is not related to the Accumulated Distributions
shall be included in Fixed Charges for the purpose of calculating the pro forma
Fixed Charge Coverage Ratio in Annex I for the most recent three-month period),
(c) the aggregate amount of such Distributions shall not exceed fifty percent
(50%) of undistributed Excess Cash Flow for the three month period immediately
preceding such distribution, as determined pursuant to the Distribution Notice,
(d) Lender shall have received written notice (the “Distribution Notice”) from
Borrower, of Borrower’s intention to make such Distribution at least five (5)
Business Days prior to the date of such proposed Distribution, which such notice
shall include a detailed calculation satisfactory to Lender in its Permitted
Discretion evidencing Excess Cash Flow for such three month period (except that
for any amounts included in such Distribution that are a result of Accumulated
Distributions, in which case, the Excess Cash Flow so measured shall be
applicable to the appropriate Accumulated Distribution Fiscal Quarters to which
they relate), as applicable, (e) Lender shall have consented in writing to such
Distribution Notice prior to the making of such proposed Distribution, such
consent not to be unreasonably withheld, and (g) until such time as the Parent
Indebtedness is paid in full in cash, any such Distribution payable to Guarantor
shall be utilized by Guarantor solely to repay the Parent Indebtedness; provided, that, if Borrower
chooses not to make a Permitted Distribution (the “Accumulated
Distribution”) in any fiscal quarter (the “Accumulated Distribution
Fiscal Quarter”) Borrower may make such Accumulated Distribution in any
of the subsequent three consecutive fiscal quarters following the Accumulated
Distribution Fiscal Quarter; provided, that, Borrower
provides Lender with Evidence of Compliance with the criteria set forth in the
definition of Permitted Distribution for the Accumulated Distribution as of the
end of the Accumulated Distribution Fiscal Quarter, except, that, the
Distribution Notice shall not have been made in the Accumulated Distribution
Fiscal Quarter but rather shall be made (5) Business Days prior to the date the
Accumulated Distribution is to be distributed.

     

    
      
         

      

      
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    “Permitted
Indebtedness” shall mean any of the following: (i) Indebtedness under the
Loan Documents, (ii) any Indebtedness set forth on Schedule 9.2,
(iii) Capitalized Lease Obligations incurred after the Closing Date and
Indebtedness incurred to purchase Goods and secured by purchase money Liens
constituting Permitted Liens: (A) in aggregate amount outstanding at any time
not to exceed $2,000,000,
provided, that,  (1) the debt service
for such Indebtedness shall not exceed $600,000 for any twelve (12) month period
and (2) upon the incurrence of such Indebtedness and after giving effect thereto
no Default or Event of Default shall exist and be continuing and (B) in an
aggregate amount in excess of $2,000,000, provided, that, (1) ten (10)
Business Days prior to the incurrence of such Indebtedness Borrower shall have
provided pro forma financial statements along with any other supporting
documentation required by Lender evidencing that Borrower would have been in
compliance with the financial covenants set forth on Annex 1 hereto for the
immediately preceding Test Period (as defined on Annex 1 hereto), if such
Indebtedness had been incurred on the first day of such Test Period, (2) prior
to the incurrence of such Indebtedness Borrower shall have received Lender’s
written confirmation of its agreement with such pro forma financial statements;
and (3) upon the incurrence of such Indebtedness and after giving effect thereto
no Default or Event of Default shall exist and be continuing, (iv) the
accounts payable set forth on Schedule 1.2 and accounts payable to trade
creditors and current operating expenses (other than for borrowed money) which
are not aged more than one hundred twenty calendar days from the date such
payable was created or such longer period as shall be agreed in writing by
Lender, except, in each case incurred in the ordinary course of business and
paid within such time period, unless the same are being contested in good faith
and by appropriate and lawful proceedings and such reserves, if any, with
respect thereto as are required by GAAP shall have been reserved, (v) borrowings
incurred in the ordinary course of business and not exceeding $1,000,000
individually or in the aggregate outstanding at any one time; provided, however, that such
Indebtedness (A) shall not be secured by Collateral, any cash, money, Investment
Property or Deposit Accounts; (B) the debt service for such Indebtedness shall
not exceed $200,000 for any twelve (12) month period; (C)  ten (10)
Calendar Days prior to the incurrence of such Indebtedness Borrower shall have
provided pro forma financial statements along with any other supporting
documentation required by Lender evidencing that Borrower would have been in
compliance with the financial covenants set forth on Annex 1 hereto for the
immediately preceding Test Period (as defined on Annex 1 hereto), if such
Indebtedness had been incurred on the first day of such Test Period, (D) prior
to the incurrence of such Indebtedness Borrower shall have received Lender’s
written confirmation of its agreement with such pro forma financial statements
(which confirmation or denial shall be promptly provided by Lender to Borrower
within ten (10) calendar days of Lender’s receipt of such financial statements);
(E) upon the incurrence of such Indebtedness and after giving effect thereto no
Default or Event of Default shall exist and be continuing, (F) such Indebtedness
shall be subordinated in right of repayment and remedies to all of the
Obligations and to all of Lender’s rights pursuant to a written agreement among
Lender, Borrower and the lender with respect to such Indebtedness, in form and
substance satisfactory to Lender and (vi) Parent Indebtedness.

     

    
      
         

      

      
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    “Permitted Liens”
shall mean with respect to the Borrower any of the following: (i) Liens under
the Loan Documents or otherwise arising in favor of Lender, (ii) Liens imposed
by law for taxes (other than payroll taxes), assessments or charges of any
Governmental Authority for claims not yet due or which are being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves or other appropriate provisions are being maintained by such Person in
accordance with GAAP to the satisfaction of Lender in its Permitted Discretion,
(iii) (A) statutory Liens of landlords (provided, that, with respect to
Required Locations any such landlord has executed a Landlord Waiver and Consent
in form and substance satisfactory to Lender) and of carriers, warehousemen,
mechanics, materialmen, and (B) other Liens imposed by law or that arise by
operation of law in the ordinary course of business from the date of creation
thereof, in each case only for amounts not yet due or which are being contested
in good faith by appropriate proceedings and with respect to which adequate
reserves or other appropriate provisions are being maintained by such Person in
accordance with GAAP to the satisfaction of Lender in its Permitted Discretion,
(iv) Liens (A) incurred or deposits made in the ordinary course of business
(including, without limitation, surety bonds and appeal bonds) in connection
with workers’ compensation, unemployment insurance and other types of social
security benefits or to secure the performance of tenders, bids, leases,
contracts (other than for the repayment of Indebtedness), statutory obligations
and other similar obligations, or (B) arising as a result of progress
payments under government contracts, (v) purchase money Liens (A) securing
the type of Permitted Indebtedness set forth under clause (iii) of the
definition of “Permitted Indebtedness”, or (B) in connection with the
purchase by such Person of equipment in the normal course of business, provided, that, such payables
shall not exceed any limits on Indebtedness provided for herein and shall
otherwise be Permitted Indebtedness hereunder; (iv) liens securing the
Indebtedness set forth in clause (v) of Permitted Indebtedness on assets other
than: (A) the Collateral, (B) cash or other money of Borrower, (C) Deposit
Accounts of Borrower and (D) Investment Property of Borrower; and (vii) Liens
disclosed on Schedule
7.4B and Schedule
9.3.

     

     “Person” shall mean an
individual, a partnership, a corporation, a limited liability company, a
business trust, a joint stock company, a trust, an unincorporated association, a
joint venture, a Governmental Authority or any other entity of whatever
nature.

     

    “Pledge Agreement”
shall mean that certain negative Pledge Agreement by and between Guarantor and
Lender executed in connection herewith, as such may be modified, amended,
restated or supplemented from time to time.

     

     “Receipt” shall have
the meaning given such term in Section
15.5.

     

    “Required Locations”
shall mean collectively: (a) the leased premises located at 12701 Commonwealth
Drive, Suite 9, Fort Myers, Florida 33913, and (b) any location leased by
Borrowers at which books and records relating to Accounts are kept of which
duplicates are not kept at the location identified in (a) above.

     

    “Released Parties”
shall have the meaning given such term in Section
15.11.

     

    “Releasing Parties”
shall have the meaning given such term in Section
15.11.

     

    “Revolver Termination”
shall mean the termination of the Revolving Facility for any reason
whatsoever.

     

    “Revolving Loan
Obligations” shall mean all of the Obligations related to the Revolving
Facility.

     

    
      
         

      

      
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    “Services” shall mean
medical and health care services provided to a Person, including, but not
limited to, medical and health care services (including diagnostic testing and
other testing services) which are covered by a policy of insurance issued by an
Insurer, physician services, nurse and therapist services, dental services,
hospital services, skilled nursing facility services, comprehensive outpatient
rehabilitation services, home health care services, residential and out-patient
behavioral healthcare services.

     

    “Software” shall mean
“software” as defined in Section 9-102 of the UCC.

     

    “Solvency Certificate”
shall mean a Solvency Certificate substantially in the form of Exhibit C attached
hereto.

     

    “Subsidiary” shall
mean, (i) as to Borrower, any Person in which more than fifty percent (50%) of
all equity, membership, partnership or other ownership interests is owned
directly or indirectly by such Borrower or one or more of its Subsidiaries, and
(ii) as to any other Person, any Person in which more than fifty percent (50%)
of all equity, membership, partnership or other ownership interests is owned
directly or indirectly by such Person or by one or more of such Person’s
Subsidiaries.

     

    “Supporting
Obligations” shall mean “supporting obligations” as defined in Section
9-102 of the UCC.

     

    “Term” shall mean the
period commencing on the Closing Date and ending on the third anniversary of the
Closing Date.

     

    “Termination Date”
shall mean the date of termination of this Agreement set forth in any notice of
termination delivered by Borrower in accordance with Section
13.1(a).

     

    “Transaction” shall
have the meaning given such term in Section
8.11.

     

    “Transferee” shall
have the meaning given such term in Section
15.2.

     

    “UCC” shall mean the
Uniform Commercial Code as in effect in the State of Maryland from time to
time.

     

    “Unused Line Fee”
shall mean a fee to be paid by Borrower to Lender on a monthly basis in an
amount equal to  0.025% (per month) of the difference derived by
subtracting (i) the daily average amount of the balances under the Revolving
Facility outstanding during the preceding month, from (ii) the Facility
Cap.

     

    “US Labs Award” shall
mean any award in connection with the litigation between Borrower and Accupath
Diagnostic Laboratories, Inc. described on Schedule
7.6.

     

    
      	
              II.

            	
              ADVANCES,
      PAYMENT AND INTEREST

            

    

     

    2.1         The
Revolving Facility

     

    (a)           Subject
to the provisions of this Agreement, Lender shall make Advances to Borrower
under the Revolving Facility from time to time during the Term, unless this Agreement is
terminated earlier, provided that,
notwithstanding any other provision of this Agreement to the contrary, the
aggregate amount of all Advances at any one time outstanding under the Revolving
Facility shall not exceed the lesser of (a) the Facility Cap, and (b) the
Availability.  The Revolving Facility is a revolving credit facility,
which may be drawn, repaid and redrawn, from time to time as permitted under
this Agreement.  Any determination as to whether there is Availability
for Advances shall be made by Lender in its Permitted Discretion and is final
and binding upon Borrower.  Unless otherwise permitted by Lender, each
Advance shall be in an amount of at least $1,000.  Subject to the
provisions of this Agreement, Borrower may request Advances under the Revolving
Facility up to and including the value, in Dollars, of the
Availability.  Advances under the Revolving Facility shall
automatically be made for the payment of interest on the Loans and other
Obligations on the date when due to the extent available and as provided for
herein.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    (b)           Lender
in its Permitted Discretion may further adjust the Availability and the advance
rate by applying Liquidity Factors.  The Liquidity Factors and the
advance rate for Availability may be adjusted by Lender throughout the Term as
warranted by Lender’s underwriting practices and procedures in its credit
judgment.  Also, Lender shall have the right to establish from time to
time, in its Permitted Discretion, reserves against the Borrowing Base, which
reserves shall have the effect of reducing the amounts otherwise eligible to be
advanced to Borrower under the Revolving Facility pursuant to this
Agreement.  Borrower hereby acknowledges and agrees that as of the
Closing Date, Lender shall establish a $250,000 reserve against the Borrowing
Base, of Annex
I, which reserve shall be eliminated upon the satisfaction by Borrower of
the conditions set forth in Section 3 of Annex I for the
elimination of the testing of the Minimum Liquidity Covenant set forth in
Section 3 of Annex
I.

     

    2.2         The
Revolving Loans; Maturity

     

    All of
the Revolving Loan Obligations shall be due and payable in full in cash, if not
earlier in accordance with this Agreement, on the last day of the
Term.

     

    2.3         Revolving
Facility Disbursements; Requirement to Deliver Borrowing
Certificate

     

    So long
as no Default or Event of Default shall have occurred and be continuing,
Borrower may give Lender irrevocable written notice requesting an Advance under
the Revolving Facility by delivering to Lender not later than 12:00 p.m.
(Eastern Time) at least one but not more than four Business Days before the
proposed Borrowing Date of such requested Advance, a completed Borrowing
Certificate and relevant supporting documentation satisfactory to
Lender.  Each time a request for an Advance is made, and, in any event
and regardless of whether an Advance is being requested, on Tuesday of each week
during the Term
(and more frequently if Lender shall so request) until the Obligations are
Paid in Full and fully performed and this Agreement is terminated,
Borrower shall deliver to Lender a Borrowing Certificate accompanied by a
separate detailed aging and categorizing of Borrower’s accounts receivable and
such other supporting documentation as Lender shall reasonably request from time
to time.  On each Borrowing Date, Borrower irrevocably authorizes
Lender to disburse the proceeds of the requested Advance to the appropriate
Borrower’s account(s) as set forth on Schedule 2.3, in all
cases for credit to the appropriate Borrower (or to such other account as to
which the appropriate Borrower shall instruct Lender in writing) via Federal
funds wire transfer no later than 4:00 p.m. (Eastern Time).

     

    2.4         Promise
to Pay; Manner of Payment

     

    The
Borrower absolutely and unconditionally promises to pay principal, interest and
all other Obligations payable hereunder, or under any other Loan Document,
without any defense, right of rescission and without any deduction whatsoever,
including any deduction for any setoff, counterclaim or recoupment, and
notwithstanding any damage to, defects in or destruction of the Collateral or
any other event, including obsolescence of any property or
improvements.  All payments made by the Borrower (other than payments
automatically paid through Advances under the Revolving Facility as provided
herein), shall be made only by wire transfer on the date when due in Dollars, in
immediately available funds to such account as may be indicated in writing by
Lender to the Borrower from time to time.  Any such payments received
after 4:00 p.m. (Eastern Time) on the date when due shall be deemed received on
the following Business Day.  Whenever any payment hereunder shall be
stated to be due or shall become due and payable on a day other than a Business
Day, the due date thereof shall be extended to, and such payment shall be made
on, the next succeeding Business Day, and such extension of time in such case
shall be included in the computation of payment of any interest (at the interest
rate then in effect during such extension) and fees, as the case may
be.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    2.5         Repayment
of Excess Advances

     

    Any
balance of Advances under the Revolving Facility outstanding at any time in
excess of either the Facility Cap or the Availability shall be immediately due
and payable by Borrower without the necessity of any demand, at the Payment
Office.

     

    2.6         Payments
by Lender

     

    If the Borrower fails to make any
payment required under any Loan Document as and when due and within any
applicable grace period, Lender may make such payment, which payment shall be an
Advance as of the date such payment is due notwithstanding the Availability, and
the Borrower irrevocably authorizes disbursement of any such funds to Lender by
way of direct payment of the relevant amount.   No payment or
prepayment of any amount by Lender or any other Person shall entitle any Person
to be subrogated to the rights of Lender under any Loan Document unless and
until all of the Obligations have been fully performed Paid in Full and this
Agreement has been terminated.  Any sums expended by Lender in its
Permitted Discretion as a result of Borrower’s or Guarantor’s failure to pay,
perform or comply with any Loan Document or any of the Obligations may be
charged to Borrower’s account as an Advance under the Revolving
Facility.

     

    2.7         Evidence
of Loans

     

    (a)           Lender
shall maintain, in accordance with its usual practice, electronic or written
records evidencing the Indebtedness and Obligations to Lender resulting from
each Loan made by Lender from time to time, including without limitation, the
amounts of principal and interest payable and paid to Lender from time to time
under this Agreement.

     

    (b)           The
entries made in the electronic or written records maintained pursuant to
subsection (a) of this Section 2.7 (the
“Register”) shall be
prima facie evidence of the existence and amounts of the Obligations and
Indebtedness therein recorded; provided, however, that the
failure of Lender to maintain such records or any error therein shall not in any
manner affect obligations of the Borrower to repay the Loans or Obligations in
accordance with their terms.

     

    (c)           Lender
will account to Borrower monthly with a statement of Advances under the
Revolving Facility, and any charges and payments made pursuant to this
Agreement, and in the absence of manifest error, such accounting rendered by
Lender shall be deemed final, binding and conclusive unless Lender is notified
by Borrower in writing to the contrary within fifteen calendar days of Receipt
of such accounting, which notice shall be deemed an objection only to items
specifically objected to therein.

     

    (d)           Borrower
agrees that:

     

    (i)           upon
written notice by Lender to Borrower that a Note or other evidence of
Indebtedness is requested by Lender to evidence the Loans and other Obligations
owing or payable to, or to be made by, Lender, Borrower shall promptly (and in
any event within three (3) Business Days of any such request) execute and
deliver to Lender an appropriate Note or Notes in form and substance reasonably
acceptable to Lender and Borrower;

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    (ii)           all
references to Notes in the Loan Documents shall mean Notes, if any, to the
extent issued (and not returned to the Borrower for cancellation) hereunder, as
the same may be amended, modified, divided, supplemented or restated from time
to time; and

     

    (iii)           upon
Lender’s written request, and in any event within three (3) Business Days of any
such request, Borrower shall execute and deliver to Lender new Notes and divide
the Notes in exchange for then existing Notes in such smaller amounts or
denominations as Lender shall specify in its sole and absolute discretion; provided, that, the aggregate
principal amount of such new Notes shall not exceed the aggregate principal
amount of the Notes outstanding at the time such request is made; and provided, further, that such
Notes that are to be replaced shall then be deemed no longer outstanding
hereunder and replaced by such new Notes and returned to Borrower within a
reasonable period of time after Lender’s receipt of the replacement
Notes.

     

    
      	
              III.

            	
              INTEREST
      AND FEES

            

    

     

    3.1         Interest
on the Revolving Facility

     

    Commencing January 1, 2008, and
continuing until the later of the expiration of the Term and the Payment in Full
and full performance of all of the Obligations and termination of this
Agreement, interest on outstanding Advances under the Revolving Facility shall
be payable monthly in arrears on the first day of each calendar month at an
annual rate of LIBOR plus 3.25% in accordance with the procedures provided for
in Section 2.4
and Section
5.1; provided, however, that,
notwithstanding any provision of any Loan Document, for the purpose of
calculating interest at any time hereunder, the LIBOR shall be not less than
3.14%, in each case calculated on the basis of a 360-day year and for the actual
number of calendar days elapsed in each interest calculation
period.  

     

    3.2         Commitment
Fee

     

    On or before the Closing Date, Borrower
shall pay to Lender $30,000 as a nonrefundable commitment fee which shall be
fully earned on the date paid.  Lender hereby acknowledges receipt of
$15,000 of such commitment fee on November 19, 2007.

     

    3.3         Unused
Line Fee

     

    Borrower shall pay Lender the Unused
Line Fee monthly in arrears on the first day of each calendar month (starting
with the calendar month immediately following the calendar month in which the
Closing Date occurs).

     

    3.4         Collateral
Management Fee

     

    Borrower shall pay Lender as additional
interest the Collateral Management Fee.  The Collateral Management Fee
shall be payable monthly in arrears on the first day of each calendar month
(starting with the calendar month immediately following the calendar month in
which the Closing Date occurs).

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    3.5         Computation
of Fees; Lawful Limits

     

    All fees hereunder shall be computed on
the basis of a year of three hundred and sixty days and for the actual number of
days elapsed in each calculation period, as applicable.  In no
contingency or event whatsoever, whether by reason of acceleration or otherwise,
shall the interest and other charges paid or agreed to be paid to Lender for the
use, forbearance or detention of money hereunder exceed the maximum rate
permissible under applicable law which a court of competent jurisdiction shall,
in a final determination, deem applicable hereto.  If, due to any
circumstance whatsoever, fulfillment of any provision hereof, at the time
performance of such provision shall be due, shall exceed any such limit, then,
the obligation to be so fulfilled shall be reduced to such lawful limit, and, if
Lender shall have received interest or any other charges of any kind which might
be deemed to be interest under applicable law in excess of the maximum lawful
rate, then such excess shall be applied first to any unpaid fees and charges
hereunder, then to unpaid principal balance owed by Credit Parties hereunder,
and if the then remaining excess interest is greater than the previously unpaid
principal balance, Lender shall promptly refund such excess amount to Borrower
and the provisions hereof shall be deemed amended to provide for such
permissible rate.  The terms and provisions of this Section 3.6 shall
control to the extent any other provision of any Loan Document is inconsistent
herewith.  All fees hereunder shall be non-refundable and deemed fully
earned when due and payable.

     

    3.6         Default
Rate of Interest

     

    Upon the occurrence and during the
continuation of an Event of Default, Lender may increase the Applicable Rate of
interest in effect at such time with respect to the Obligations, without notice,
to the Default Rate which Default Rate shall continue post-judgment and
subsequent to the date that the provisions of any applicable Debtor Relief Law
are exercised by or against a Borrower unless the statutory post-judgment rate
of interest is higher in which case such statutory rate shall
apply.

     

    
      	
              IV.

            	
              GRANT
      OF SECURITY INTERESTS

            

    

     

    4.1         Security
Interest; Collateral

     

    (a)           To
secure the payment and performance in full of the Obligations, Borrower (or if
referring to another Person, such Person) hereby grants to Lender a continuing
security interest in and Lien upon, and pledges and assigns to Lender, all of
its right, title and interest in and to the Collateral, wherever located,
whether now owned or hereafter acquired or arising;

     

    (b)           Borrower
hereby ratifies its authorization for Lender to have filed in any UCC
jurisdiction any initial financing statements or amendments thereto indicating
that those assets described in the definition of “Collateral” hereunder are
pledged to the Lender.

     

    (c)           If
Borrower shall at any time hold or acquire a Commercial Tort Claim that arises
out of Borrower’s Accounts or account receivable or would otherwise become part
of the collateral under the definition of Collateral, Borrower shall immediately
notify Lender in a writing signed by Borrower of the particulars thereof and
grant to Lender in such a writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance satisfactory to Lender.

     

    4.2         Power
of Attorney

     

    (a)           Borrower
hereby irrevocably constitutes and appoints Lender and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorneys-in-fact with full irrevocable power and authority in the place and
stead of such Borrower or in Lender’s own name, for the purpose of carrying out
the terms of this Agreement and the grant of the security interests hereunder
and under the other Loan Documents, and without limiting the generality of the
foregoing, hereby gives said attorneys the power and right, on behalf of such
Borrower (without requiring Lender to act as such, and without notice to or
assent by such Borrower) to do the following: (i) upon the occurrence and during
the continuance of an Event of Default, to receive, open and dispose of all mail
addressed to any such Person and to endorse the name of any such Person upon any
and all checks, drafts, money orders, and other instruments for the payment of
money that are payable to such Person and constitute collections on its or their
Accounts; (ii) execute in the name of such Person any financing statements,
schedules, assignments, instruments, documents, and statements that it is or
they or are obligated to give Lender under any of the Loan Documents; and (iii)
do such other and further acts and deeds in the name of such Person that Lender
may deem necessary or desirable to enforce any Account or other Collateral or to
perfect Lender’s security interest or Lien in any Collateral.  In
addition, if any such Person breaches its obligation hereunder to direct
payments of Accounts or the proceeds of any other Collateral to the appropriate
Lockbox Account, Lender, as the irrevocably made, constituted and appointed true
and lawful attorney for such Person pursuant to this paragraph, may, by the
signature or other act of any of Lender’s officers or authorized signatories
(without requiring any of them to do so), direct any federal, state or private
payor or fiscal intermediary to pay proceeds of Accounts or any other Collateral
to the appropriate Lockbox Account.

     

    
      
         

      

      
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    (b)           To
the extent permitted by law, each Credit Party hereby ratifies all that said
attorneys shall lawfully do or cause to be done by virtue
hereof.  This power of attorney is a power coupled with an interest
and is irrevocable.

     

    (c)           The
powers conferred on Lender pursuant to this Section 4.2 are
solely to protect its interests in the Collateral and shall not impose any duty
upon it to exercise any such powers.  Lender shall be accountable only
for the amounts that it actually receives as a result of the exercise of such
powers, and neither it nor any of its officers, directors, employees or agents
shall be responsible to Credit Party for any act or failure to act, except for
Lender’s own gross negligence or willful misconduct.

     

    4.3         Further
Assurances

     

    Borrower
agrees, upon request of Lender, to take any and all other actions as Lender may
determine to be necessary or appropriate for the attachment, perfection
maintaining of the first priority security interest of, and for the ability of
Lender to enforce, Lender’s security interest in any and all of the Collateral,
including, without limitation, (i) executing, obtaining, delivering, filing,
registering and recording any and all financing statements, continuation
statements, stock powers, instruments and other documents, or causing the
execution, filing, registration, recording or delivery of any and all of the
foregoing, that are necessary or required under law or otherwise or reasonably
requested by Lender to be executed, filed, registered, obtained, delivered or
recorded to create, maintain, perfect, preserve, validate or otherwise protect
the pledge of the Collateral to Lender and Lender’s perfected first priority
Lien on the Collateral (and Borrower irrevocably grants Lender the right, at
Lender's option, to file any or all of the foregoing), (ii) immediately upon
learning thereof, report to Lender any reclamation, return or repossession of
goods in excess of $25,000.00 that are part of the Collateral (individually or
in the aggregate), (iii) defend the Collateral and Lender’s perfected first
priority Lien thereon against all claims and demands of all Persons at any time
claiming the same or any interest therein adverse to Lender, and pay all
reasonable costs and expenses (including, without limitation, allocable costs of
staff counsel, and diligence fees and reasonable attorneys’ fees and expenses,
provided, that, the payment of
staff counsel and reasonable attorneys’ fees shall be subject to the provisions
of Section 15.7(b)) in connection with such defense, which may at Lender’s
discretion be added to the Obligations, (iv) comply with any provision of any
statute, regulation or treaty of any Governmental Authority as to any Collateral
if compliance with such provision is a condition to attachment, perfection or
priority of, or ability of Lender to enforce, Lender’s security interest in such
Collateral and (v) obtain governmental and other third party waivers, consents
and approvals in form and substance satisfactory to Lender, including any
consent of any licensor, lessor or other Person obligated on Collateral and any
party or parties whose consent is required for the security interest of Lender
to attach under Section 4.1.

     

    
      
         

      

      
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              V.

            	
              ADMINISTRATION
      AND MAINTENANCE OF COLLATERAL

            

    

     

    5.1         Revolving
Facility Collections; Repayment; Borrowing Availability and Lockbox

     

    Borrower shall maintain one or more
Lockbox Accounts with the Lockbox Banks, and shall execute with each of the
Lockbox Banks a Lockbox Agreement, and such other agreements related thereto as
Lender may require.  Borrower shall ensure that all collections of
their respective Accounts and all other cash payments received by Borrower are
paid and delivered directly from Account Debtors and other Persons into the
appropriate Lockbox Account.  The Lockbox Agreements shall provide
that the Lockbox Banks immediately will transfer all funds paid into the Lockbox
Accounts into the Concentration Account.  Notwithstanding and without
limiting any other provision of any Loan Document, Lender shall apply, on a
daily basis, all funds transferred into the Concentration Account pursuant to
the Lockbox Agreement and this Section 5.1 in
such order and manner as determined by Lender.  To the extent that any
Accounts are collected by Borrower or any other cash payments received by
Borrower are not sent directly to the appropriate Lockbox Account but are
received by Borrower or any of their Affiliates, such collections and proceeds
shall be held in trust for the benefit of Lender and immediately remitted (and
in any event within three (3) Business Days from receipt thereof), in the form
received, to the appropriate Lockbox Account for immediate transfer to the
Concentration Account.  Borrower acknowledges and agrees that
compliance with the terms of this Section 5.1 is an
essential term of this Agreement.  All funds transferred to the
Concentration Account for application to the Obligations under the Revolving
Facility shall be applied to reduce the Obligations under the Revolving
Facility, but, for purposes of calculating interest hereunder, shall be subject
to a three Business Day clearance period.  If as the result of
collections of Accounts and any other cash payments received by Borrower
pursuant to this Section 5.1 a credit
balance exists with respect to the Concentration Account, such credit balance
shall not accrue interest in favor of a Borrower.  If at any time
there is a credit balance in excess of $100,000, in the Concentration Account,
Lender agrees to automatically wire transfer (without Borrower’s written
request) all of such credit balance to the Borrower’s operating account
specified on Schedule 2.3 within one Business Day of such credit balance
reaching $100,000, provided, however, Lender shall
not be required to make such “no-notice” transfer more frequently than once per
week. Notwithstanding the foregoing, upon the written request of Borrower,
Lender shall wire transfer any credit balance in the Concentration Account to
Borrower’s operating account specified in Schedule 2.3., provided, that if Lender
receives the written request of Borrower no later than 12:00 p.m. (Eastern
Time), then Lender shall make such transfer the following Business Day and if
Lender receives the written request of Borrower after 12:00 p.m. (Eastern time),
then Lender shall make such transfer within two (2) Business Days from the date
of receipt of such written notice.   If applicable, at any time
prior to the execution of all or any of the Lockbox Agreements and operation of
all or any of the Lockbox Accounts, Borrower and their Affiliates shall direct
all collections or proceeds it receives on Accounts or from other Collateral to
the Concentration Account.

     

    5.2         Accounts

     

    In
determining which Accounts are Eligible Accounts, Lender may rely on all
statements and representations made by Borrower with respect to any
Account.  Unless otherwise indicated in writing to Lender, each
Account of Borrower (i) is genuine and in all respects what it purports to be
and is not evidenced by a judgment, (ii) arises out of a completed, bona fide
sale and delivery of goods or rendering of Services by a Borrower in the
ordinary course of business and in accordance with the terms and conditions of
all purchase orders, contracts, certifications, participations, certificates of
need and other documents relating thereto or forming a part of the contract
between a Borrower and the Account Debtor, (iii) is for a liquidated amount
(less any contractual allowances) maturing as stated in a claim or invoice
covering such sale of goods or rendering of Services, a copy of which has been
furnished or is available to Lender, (iv) together with Lender’s security
interest therein, is not and will not be in the future (by willful act or
omission by Borrower), subject to any offset, lien, deduction, defense, dispute,
counterclaim or other adverse condition, is absolutely owing to Borrower and is
not contingent in any respect or for any reason (except Accounts owed or owing
by Medicaid/Medicare Account Debtors that may be subject to offset or deduction
under applicable law), and (v) has been billed and forwarded to the Account
Debtor for payment in accordance with applicable laws and is in compliance and
conformance with any requisite procedures, requirements and regulations
governing payment by such Account Debtor with respect to such Account, and, if
due from a Medicaid/Medicare Account Debtor, is properly payable directly to a
Borrower.  

     

    
      
         

      

      
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    5.3         Healthcare

     

    (a)           Borrower
has obtained from (i) the Medicare program, approval to receive the provider
numbers which will permit Borrower to bill the Medicare program with respect to
covered services rendered to patients insured under the Medicare program, (ii)
the applicable Medicaid programs, approval to receive the provider
numbers/in-patient service contracts which will permit Borrower to bill the
Medicaid program with respect to covered services rendered to patients insured
under the Medicaid programs, and (iii) the CHAMPUS/TRICARE program, approval to
receive the provider numbers which will permit Borrower to bill the
CHAMPUS/TRICARE program with respect to covered services rendered to patients
insured under the CHAMPUS/TRICARE program.  Borrower is in compliance
with the conditions of participation in the Medicare, Medicaid and
CHAMPUS/TRICARE programs.

     

    (b)           There
is no pending nor to the knowledge of Borrower, threatened, proceeding or
investigation of Borrower relative to EMTALA nor are there any investigations or
proceedings pending, or to the knowledge of Borrower, threatened by any
Governmental Authority with respect to the Medicare, Medicaid or CHAMPUS/TRICARE
programs with respect to the operations of Borrower, except as set forth on
Schedule 5.3A
hereto.  Without limiting or being limited by any other provision of
any Loan Document, Borrower has timely filed or caused to be filed all cost and
other reports of every kind required by law, agreement or
otherwise.  Subject to the last sentence of Section 7.18, there
are no claims, actions or appeals pending (and Borrower has not filed any claims
or reports which could reasonably result in any such claims, actions or appeals)
before any commission, board or agency or other Governmental Authority,
including, without limitation, any intermediary or carrier, the Provider
Reimbursement Review Board or the Administrator of the Centers of Medicare and
Medicaid Services, with respect to any state or federal Medicare or Medicaid or
CHAMPUS/TRICARE cost reports or claims filed by Borrower, or any disallowance by
any commission, board or agency or other Governmental Authority in connection
with any audit of such cost reports or claims.  No validation review
or program integrity review related to Borrower or the consummation of the
transactions contemplated herein or to the Collateral have been conducted by any
commission, board or agency or other Governmental Authority in connection with
the Medicare or Medicaid programs, and to the knowledge of Borrower, no such
reviews are scheduled, pending or threatened against or affecting any of the
providers, any of the Collateral or the consummation of the transactions
contemplated hereby.  Neither Credit Parties nor any of their
respective officers, directors, or managing employees, employees or agents are,
or while this Agreement shall remain in effect shall be, excluded from
participation in, or sanctioned or convicted of a crime under or with respect to
the Medicare, Medicaid or CHAMPUS/TRICARE programs, nor to the best of Credit
Parties’ knowledge, is any such exclusion threatened.  Borrower has
not received any notice from any of the Medicare, Medicaid or CHAMPUS/TRICARE
programs, or any other third party payor programs, of any pending or threatened
investigations, reviews or surveys of Borrower, its directors, officers or
managing employees, and Borrower has no actual knowledge that any such
investigation, reviews or surveys are pending or threatened.

     

    (c)           As
of the Closing Date, Borrower has third party contracts with each of the
third-party payors listed on Schedule 5.3B (unless
noted otherwise), which constitutes (as indicated) each of the payors
representing at least five percent (5%) of Borrower’s historic third-party payor
cash receipts for the twelve month period ended December 31, 2007.

     

    
      
         

      

      
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    5.4         Medicare
and Medicaid Account Debtors and Third-Party Payor Information

     

    Borrower
(a) shall maintain applicable Medicare and Medicaid provider numbers, (b) shall
maintain applicable CHAMPUS/TRICARE provider numbers, if applicable, and (d) to
the extent Borrower shall enter into any other arrangements with
non-governmental third-party payors, Borrower shall use commercially reasonable
efforts to enter into agreements with such third-party payors in form and
substance satisfactory to Lender.

     

    5.5         Collateral
Administration

     

    (a)           All
Collateral (except proceeds of Accounts which shall be deposited with the
Lockbox Banks) and records supporting the Collateral will at all times be kept
by Borrower at the locations set forth on Schedule 7.18B
hereto and shall not, without thirty calendar days prior written notice to
Lender, be moved therefrom, and in any case shall not be moved outside the
continental United States.

     

    (b)           Borrower
shall keep accurate and complete records of its Accounts and all payments and
collections thereon and shall submit such records to Lender on such periodic
bases as Lender may request.  In addition, if Accounts of Borrower in
an aggregate face amount in excess of $25,000.00 become ineligible because they
fall within one of the specified categories of ineligibility set forth in the
definition of Eligible Accounts, Borrower shall notify Lender of such occurrence
within two Business Days following the discovery of such occurrence or upon any
submission to Lender of a Borrowing Certificate and the Borrowing Base shall
thereupon be adjusted to reflect such occurrence.

     

    (c)           Whether
or not an Event of Default has occurred, any of Lender’s officers, employees,
representatives or agents shall have the right, at any time during normal
business hours upon reasonable notice, in the name of Lender, any designee of
Lender or Borrower, to verify the validity, amount or any other matter relating
to any Collateral.  Notwithstanding the foregoing, so long as no
Default or Event of Default has occurred and is continuing, Lender agrees to
give Borrower at least seven (7) business days’ written notice of such visit to
Borrower’s offices.  Borrower shall cooperate fully with Lender in an
effort to facilitate and promptly conclude such verification
process.

     

    (d)           Borrower
shall endeavor in the first instance to make collection of its Accounts for
Lender.  Lender shall have the right at all times after the occurrence
and during the continuance of an Event of Default to notify (i) Account
Debtors owing Accounts to Borrower other than Medicaid/Medicare Account Debtors
that their Accounts have been assigned to Lender and to collect such Accounts
directly in its own name and to charge collection costs and expenses, including
reasonable attorney’s fees, to Borrower, and (ii) Medicaid/Medicare Account
Debtors that Borrower has waived any and all defenses and counterclaims they may
have or could interpose in any such action or procedure brought by Lender to
obtain a court order recognizing the collateral assignment or security interest
and Lien of Lender in and to any Account or other Collateral and that Lender is
seeking or may seek to obtain a court order recognizing the collateral
assignment or security interest and Lien of Lender in and to all Accounts and
other Collateral payable by Medicaid/Medicare Account Debtors.

     

    (e)           As
and when determined by Lender in its Permitted Discretion, Lender will perform
the searches described in clauses (i), (ii) and (iii) below against Borrower and
Guarantor (the results of which are to be consistent with Borrower’s
representations and warranties under this Agreement), all at Borrower’s expense:
(i) UCC searches with the Secretary of State of the jurisdiction of organization
of Borrower and Guarantor and, if deemed necessary by Lender, the Secretary of
State and local filing offices of each jurisdiction where Borrower or Guarantor
maintain their respective executive offices, a place of business or assets;
(ii) Lien searches with the United States Patent and Trademark Office and
the United States Copyright Office; and (iii) judgment, federal, state and local
tax lien searches, in each jurisdiction searched under clause (i)
above.

     

    
      
         

      

      
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    (f)           Borrower
(i) shall provide prompt written notice to its current bank to transfer all
items, collections and remittances to the Concentration Account, (ii) shall
direct each Account Debtor to make payments to the appropriate Lockbox Account,
and Borrower hereby authorizes Lender, upon any failure to send such notices and
directions within ten calendar days after the Closing Date (or ten calendar days
after the Person becomes an Account Debtor), to send any and all similar notices
and directions to such Account Debtors, and (iii) shall do anything further that
may be lawfully required by Lender to create and perfect Lender’s Lien on any
Collateral and effectuate the intentions of the Loan Documents.  At
Lender’s request, Borrower shall immediately deliver to Lender all Collateral
for which Lender must receive possession to obtain a perfected security
interest.

     

    
      	
              VI.

            	
              CONDITIONS
      PRECEDENT

            

    

     

    6.1         Conditions
to Initial Advance and Closing

     

    The obligations of Lender to consummate
the transactions contemplated herein and to make the Initial Advance are subject
to the satisfaction, in the sole judgment of Lender, of the
following:

     

    (a)           Lender
shall have received information and responses to its due diligence requests, and
completed examinations related to the Collateral, the financial statements and
the books, records, business, obligations, financial condition and operational
state of each Credit Party and any other information reasonably requested by
Lender, and all such information and responses as well as the results of such
examinations and each Credit Party shall demonstrate to Lender’s satisfaction
that  (i) its operations comply, in all respects deemed material
by Lender, in its sole judgment, with all applicable federal, state, foreign and
local laws, statutes and regulations, (ii) its operations are not the
subject of any governmental investigation, evaluation or any remedial action
which could result in any expenditure or liability deemed material by Lender, in
its sole judgment, and (iii) it has no liability (whether contingent or
otherwise) that is deemed material by Lender, in its sole judgment;

     

    (b)           (i)
Borrower shall have delivered to Lender (A) the Loan Documents to which Borrower
is a party, each duly executed by an authorized officer of such Borrower and the
other parties thereto, (B) a Borrowing Certificate for the Initial Advance under
the Revolving Facility executed by an authorized officer of Borrower and (C) (1)
audited annual consolidated and consolidating financial statements of Borrower
for Borrower’s most recently ended fiscal year, including notes thereto,
consisting of a balance sheet at the end of such completed fiscal year and the
related statements of income, retained earnings, cash flows and owner's equity
for such completed fiscal year, which financial statements shall be prepared and
certified without qualification by an independent certified public accounting
firm reasonably satisfactory to Lender/in accordance with GAAP consistently
applied with prior periods (except for changes in accounting methodology
specified in such financial statements); and (2) unaudited consolidated and
consolidating financial statements of Borrower consisting of a balance sheet
and statements of income, retained earnings, cash flows and owner's equity
for the period from the beginning of the current fiscal year through the end of
the most recently ended calendar month, which financial statements shall be
prepared in accordance with GAAP consistently applied with prior periods (except
for changes in accounting methodology which have been enacted since such prior
periods), (ii) Borrower shall have established and maintained the Lockbox
Accounts and have entered into Lockbox Agreements, all as contemplated in Section 5.1; and
(iii) Guarantor shall have delivered to Lender the Loan Documents to which such
Guarantor is a party, each duly executed and delivered by such Guarantor or an
authorized officer of such Guarantor, as applicable, and the other parties
thereto;

     

    
      
         

      

      
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    (c)           all
in form and substance satisfactory to Lender in its Permitted Discretion, Lender
shall have received (i) a report of Uniform Commercial Code financing statement,
tax and judgment lien searches performed with respect to Borrower and Guarantor
in each jurisdiction determined by Lender in its sole discretion, and such
report shall show no Liens on the Collateral (other than Permitted Liens), (ii)
each document (including, without limitation, any Uniform Commercial Code
financing statement) required by any Loan Document or under law or requested by
Lender to be filed, registered or recorded to create in favor of Lender, a
perfected first priority security interest upon the Collateral, and
(iii) evidence of each such filing, registration or recordation and of the
payment by Borrower of any necessary fee, tax or expense relating
thereto;

     

    (d)           Lender
shall have received (i) the Organizational and Good Standing Documents of each
Credit Party, all in form and substance acceptable to Lender, (ii) a certificate
of the corporate secretary or assistant secretary of each Credit Party dated the
Closing Date, as to the incumbency and signature of the Persons executing the
Loan Documents, in form and substance acceptable to Lender, and (iii) the
written legal opinion of counsel for Credit Parties, in form and substance
satisfactory to Lender;

     

    (e)       
    Lender shall have received (i) a Solvency Certificate
executed by the chief financial officer (or, in the absence of a chief financial
officer, the chief executive officer) of Borrower and Guarantor, in form and
substance satisfactory to Lender and (ii) an officer’s certificate in the form
attached hereto as Exhibit D, executed
by the chief executive officer or President of Borrower;

     

    (f)      
     Lender shall have completed examinations, the
results of which shall be satisfactory in form and substance to Lender, of the
Collateral, the financial statements and the books, records, business,
obligations, financial condition and operational state of Borrower and
Guarantor, and each such Person shall have demonstrated to Lender’s satisfaction
that (i) its operations comply, in all respects deemed material by Lender,
in its sole judgment, with all applicable federal, state, foreign and local
laws, statutes and regulations, (ii) its operations are not the subject of
any governmental investigation, evaluation or any remedial action which could
result in any expenditure or liability deemed material by Lender, in its sole
judgment, and (iii) it has no liability (whether contingent or otherwise)
that is deemed material by Lender, in its sole judgment;

     

    (g)           Lender
shall have received all fees, charges and expenses payable to Lender on or prior
to the Closing Date pursuant to the Loan Documents;

     

    (h)           all
in form and substance satisfactory to Lender in its Permitted Discretion, Lender
shall have received such consents, approvals and agreements, including, without
limitation, any applicable Landlord Waivers and Consents with respect to any and
all leases set forth on Schedule 7.4A, from
such third parties as Lender shall determine are necessary or desirable with
respect to (i) the Loan Documents and the transactions contemplated thereby, and
(ii) claims against Borrower or Guarantor or the Collateral;

     

    (i)          
 Borrower shall be in compliance with Section 8.5, and
Lender shall have received copies of all insurance policies or binders, original
certificates of all insurance policies of Borrower confirming that they are in
effect and that the premiums due and owing with respect thereto have been paid
in full and endorsements of such policies issued by the applicable Insurers and
naming Lender as loss payee or additional insured on those policies specified in
Section
8.5;

     

    (j)           all
corporate and other proceedings, documents, instruments and other legal matters
in connection with the transactions contemplated by the Loan Documents
(including, but not limited to, those relating to corporate and capital
structures of Borrower) shall be satisfactory to Lender;

     

    
      
         

      

      
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    (k)           Lender
shall have received, in form and substance satisfactory to Lender, release and
termination of any and all Liens, security interest and Uniform Commercial Code
financing statements in, on, against or with respect to any of the Collateral
(other than Permitted Liens);

     

    (l)     
      Borrower shall have executed and delivered
to Lender an IRS Form 8821;

     

    (m)           Lender
shall be satisfied that there are no material defaults in any of Borrower’s
obligations under any contract required for the operation of its
business;

     

    (n)           Lender
shall have received the Pledge Agreement, in form and substance satisfactory to
Lender, as duly authorized, executed and delivered by the parties thereto;
and

     

    (o)           Lender
shall have received such other documents, certificates, information or legal
opinions as Lender may reasonably request, all in form and substance reasonably
satisfactory to Lender.

     

    6.2         Conditions
to Each Advance

     

    The obligations of Lender to make any
Advance, including, without limitation, the Initial Advance, (or otherwise
extend credit hereunder) are subject to the satisfaction, in the sole judgment
of Lender, of the following additional conditions precedent:

     

    (a)           Borrower
shall have delivered to Lender a Borrowing Certificate for the Advance executed
by an authorized officer of Borrower, which shall constitute a representation
and warranty by Borrower as of the Borrowing Date of such Advance that the
conditions contained in this Section 6.2 have been
satisfied; provided however, that any
determination as to whether to fund Advances or extensions of credit shall be
made by Lender in its Permitted Discretion;

     

    (b)           each
of the representation and warranties made by Credit Parties in or pursuant to
this Agreement, or under the other Loan Documents or which are contained in any
certificate, document or financial or other statement furnished in connection
herewith, shall be true and correct, before and after giving effect to such
Advance;

     

    (c)           no
Default or Event of Default shall have occurred or be continuing or would exist
after giving effect to the Advance on such date;

     

    (d)           immediately
after giving effect to the requested Advance, the aggregate outstanding
principal amount of Advances shall not exceed the lesser of the Availability and
the Facility Cap;

     

    (e)           at
the time of making such requested Advance, no Material Adverse Change has
occurred or is continuing; and

     

    (f)           Lender
shall have received all fees, charges and expenses payable to Lender on or prior
to such date pursuant to the Loan Documents.

     

    
      	
              VII.

            	
              REPRESENTATIONS
      AND WARRANTIES

            

    

     

    Credit
Parties, jointly and severally, represent and warrant as of the date hereof, the
Closing Date, each Borrowing Date:

     

    
      
         

      

      
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    7.1         Organization
and Authority

     

    Each Credit Party is a corporation duly organized, validly
existing and in good standing under the laws of its state of
formation.  Each Credit Party (i) has all requisite corporate or
entity power and authority to own its properties and assets and to carry on its
business as now being conducted and as contemplated in the Loan Documents,
(ii) is duly qualified to conduct business in every jurisdiction in which
failure so to qualify would reasonably be likely to result in a Material Adverse
Change, and (iii) has all requisite power and authority (A) to execute,
deliver and perform the Loan Documents to which it is a party, (B) to borrow
hereunder, (C) to consummate the transactions contemplated under the Loan
Documents, and (D) to grant the Liens with regard to the Collateral pursuant to
the Loan Documents to which it is a party.

     

    7.2         Loan
Documents

     

    The execution, delivery and performance
by each Credit Party of the Loan Documents to which it is a party, and the
consummation of the transactions contemplated thereby, (i) have been duly
authorized by all requisite action of each such Person and have been duly
executed and delivered by or on behalf of each such Person; (ii) do not violate
any provisions of (A) applicable law, statute, rule, regulation, ordinance
or tariff, (B) any order of any Governmental Authority binding on any such
Person or any of their respective properties, or (C) the certificate of
incorporation or bylaws (or any other equivalent governing agreement or
document) of any such Person, or any agreement between any such Person and its
respective stockholders, members, partners or equity owners or among any such
stockholders, members, partners or equity owners; (iii) are not in conflict
with, and do not result in a breach or default of or constitute an event of
default, or an event, fact, condition or circumstance which, with notice or
passage of time, or both, would constitute or result in a conflict, breach,
default or event of default under, any indenture, agreement or other instrument
to which any such Person is a party, or by which the properties or assets of
such Person are bound; (iv) except as set forth therein, will not result in
the creation or imposition of any Lien of any nature upon any of the properties
or assets of any such Person, and (v) except as set forth on Schedule 7.2, do not
require the consent, approval or authorization of, or filing, registration or
qualification with, any Governmental Authority or any other
Person.  When executed and delivered, each of the Loan Documents to
which any Credit Party is a party will constitute the legal, valid and binding
obligation of Credit Party, enforceable against such Credit Party in accordance
with its terms.

     

    7.3         Subsidiaries,
Capitalization and Ownership Interests

     

    Except as listed on Schedule 7.3, no
Credit Party has any Subsidiaries.  Schedule 7.3
states the authorized and issued capitalization of each Credit Party, the number
and class of equity securities and/or ownership, voting or partnership interests
issued and outstanding of each Credit Party and the record and beneficial owners
thereof (including options, warrants and other rights to
acquire any of the foregoing).  The ownership or partnership interests
of each Credit Party that is a limited partnership or a limited liability
company are not certificated, the documents relating to such interests do not
expressly state that the interests are governed by Article 8 of the Uniform
Commercial Code, and the interests are not held in a securities
account.  Schedule 7.3
sets forth a complete and accurate list of the directors, members, managers
and/or partners of each Credit Party.  Except as listed on Schedule 7.3, no
Credit Party owns an interest in, participates in or engages in any joint
venture, partnership or similar arrangements with any Person.

     

    7.4         Properties

     

    Each Credit Party (i) is the sole owner
and has good, valid and marketable title to, or a valid leasehold interest in,
all of its properties and assets, including the Collateral, whether personal or
real, subject to no transfer restrictions or Liens of any kind except for
Permitted Liens, and (ii) is in compliance in all material respects with each
lease to which it is a party or otherwise bound.  Schedule 7.4A
lists all real properties (and their locations) owned or leased by or to, and
all other material assets or property that are leased or licensed by, any Credit
Party and all warehouses, fulfillment houses or other locations at which any of
any Credit Party’s Inventory is located.  Each Credit Party enjoys
peaceful and undisturbed possession under all such leases and such leases are
all the leases necessary for the operation of such properties and assets, are
valid and subsisting and are in full force and effect.  Schedule 7.4B lists
all Deposit Accounts and investment accounts (and their locations) owned by any
Credit Party, and all such Deposit Accounts and investment accounts are subject
to no Liens of any kind except as expressly set forth on Schedule 7.4B, all of
which Liens constitute Permitted Liens.

     

    
      
         

      

      
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    7.5         Other
Agreements

     

    No Credit Party is (i) a party to any
judgment, order or decree or any agreement, document or instrument, or subject
to any restriction, which would affect its ability to execute and deliver, or
perform under, any Loan Document or to pay the Obligations, (ii) in default in
the performance, observance or fulfillment of any obligation, covenant or
condition contained in any agreement, document or instrument to which it is a
party or to which any of its properties or assets are subject, which default, if
not remedied within any applicable grace or cure period would reasonably be
likely to result in a Material Adverse Change, nor is there any event, fact,
condition or circumstance which, with notice or passage of time or both, would
constitute or result in a conflict, breach, default or event of default under,
any of the foregoing which, if not remedied within any applicable grace or cure
period would reasonably be likely to result in a Material Adverse Change; (iii)
a party or subject to any agreement, document or instrument with respect to, or
obligation to pay any, Management or Service Fee with respect to, the ownership,
operation, leasing or performance of any of its business or any facility, nor is
there any manager with respect to any such facility; or (iv) a party to any
contract with any Affiliate other than as set forth on Schedule
7.5.

     

    7.6         Litigation

     

    There is
no action, suit, proceeding or investigation pending or, to the knowledge of any
Credit Party, threatened against any Credit Party (i) that challenges the
validity of any of the Loan Documents, or to enjoin the right of any Credit
Party to enter into any Loan Document or to consummate the transactions
contemplated thereby, (ii) that would reasonably be likely to be or have, either
individually or in the aggregate, any Material Adverse Change, or
(iii) that would reasonably be likely to result in any Change of
Control.  Except as set forth on Schedule 7.6, no Credit Party is a
party or subject to any order, writ, injunction, judgment or decree of any
Governmental Authority.  Except as set forth on Schedule 7.6, there
is no action, suit, proceeding or investigation initiated by any Credit Party
currently pending.

     

    7.7         Environmental
Matters

     

    Other than exceptions to any of the
following that could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Change:

     

    (a)           Each
Credit Party
and its Subsidiaries:  (i) are, and within the period of all
applicable statutes of limitation have been, in compliance with all applicable
Environmental Laws; (ii) hold all environmental Permits (each of which is in
full force and effect) required for any of their current or intended operations
or for any property owned, leased, or otherwise operated by any of them; (iii)
are, and within the period of all applicable statutes of limitation have been,
in compliance with all of their environmental Permits; and (iv) reasonably
believe that:  each of their environmental Permits will be timely
renewed and complied with, without material expense; any additional
environmental Permits that may be required of any of them will be timely
obtained and complied with, without material expense; and compliance with any
Environmental Law that is or is expected to become applicable to any of them
will be timely attained and maintained, without material expense.

     

    
      
         

      

      
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    (b)           To
the knowledge of each Credit Party and
its Subsidiaries, no Materials of Environmental Concern (i) are present at, on,
under, in, or about any real property now owned, leased or operated by such
Credit Party
or any of its Subsidiaries, or (ii) were present at any formerly owned, leased
or operated property during the period of such ownership, lease or operation by
such Credit
Party or its Subsidiaries or (iii) are present at any other location
(including, without limitation, any location to which Materials of Environmental
Concern have been sent for re-use or recycling or for treatment, storage, or
disposal) which, in the case of any of clauses (i), (ii) or (iii), would
reasonably be expected to (A) give rise to liability of such Credit Party or any
of its Subsidiaries under any applicable Environmental Law or otherwise result
in costs to such Credit Party or any
of its Subsidiaries, (B) interfere with the continued operations of such Credit Party or any
of its Subsidiaries, or (C) impair the fair saleable value of any real property
owned or leased by such Credit Party or any
of its Subsidiaries.

     

    (c)           There
is no judicial, administrative, or arbitral proceeding (including any notice of
violation or alleged violation) under or relating to any Environmental Law to
which any Credit
Party or any of such Credit Party’s
Subsidiaries is, or to the knowledge of such Credit Party or any
of its Subsidiaries will be, named as a party that is pending or, to the
knowledge of such Credit Party or any
of its Subsidiaries, threatened.

     

    (d)           No
Credit Party,
nor any of Credit
Parties’ Subsidiaries, has received any written request for information,
or been notified that it is a potentially responsible party under or relating to
the federal Comprehensive Environmental Response, Compensation, and Liability
Act or any similar Environmental Law, or with respect to any Materials of
Environmental Concern.

     

    (e)           No
Credit Party,
nor any of Credit
Parties’ Subsidiaries, has entered into or agreed to any consent decree,
order, or settlement or other agreement, or is subject to any judgment, decree,
or order or other agreement, in any judicial, administrative, arbitral, or other
forum for dispute resolution, relating to compliance with or liability under any
Environmental Law.

     

    (f)           No
Credit Party,
nor any of Credit
Parties’ Subsidiaries, has assumed or retained, by contract or operation
of law, any liabilities of any kind, fixed or contingent, known or unknown,
under any Environmental Law or with respect to any Material of Environmental
Concern.

     

    7.8         Potential
Tax Liability; Tax Returns; Governmental Reports

     

    (a)           Except
as disclosed in Schedule 7.8, no
Credit Party (i) has received any oral or written communication from any taxing
authority with respect to any investigation or assessment relating to such
Credit Party directly, or relating to any consolidated tax return which was
filed on behalf of such Credit Party, (ii) is aware of any year which remains
open pending tax examination or audit by any taxing authority, and (iii) is
aware of any information that could give rise to any  tax liability or
assessment.

     

    (b)           Each
Credit Party (i) has filed all federal, state, foreign (if applicable) and local
tax returns and other reports which are required by law to be filed by such
Credit Party, and (ii) has paid all taxes, assessments, fees and other
governmental charges, including, without limitation, payroll and other
employment related taxes, in each case that are due and payable, except only for
items that such Credit Party is currently contesting in good faith with adequate
reserves under GAAP, which contested items are described on Schedule
7.8.

     

    
      
         

      

      
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    7.9         Financial
Statements and Reports

     

    All financial statements and financial
information relating to Credit Parties that have been or may hereafter be
delivered to Lender by Credit Parties are accurate and complete (as of the date
they were prepared) and all financial statements have been prepared in
accordance with GAAP consistently applied with prior periods except for any
normal quarter and year-end adjustments which may be applied in future periods
and for any changes in accounting methodology that may have been applied since
any prior period.  Credit Parties have no material obligations or
liabilities of any kind not disclosed in such financial information or
statements, and since the date of the most recent financial statements submitted
to Lender, there has not occurred any Material Adverse Change or Liability Event
or, to Credit Parties’ knowledge, any other event or condition that could
reasonably be expected to have a Material Adverse Change or Liability
Event.

     

    7.10       Compliance
with Law

     

    (a)           Each
Credit Party has been and is currently in compliance, and is presently taking
and will continue to take all actions necessary to assure that it shall, on or
before each applicable compliance date and continuously thereafter, comply with
HIPAA.  Borrower has not received any notice from any Governmental
Authority that such Governmental Authority has imposed or intends to impose any
enforcement actions, fines or penalties for any failure or alleged failure to
comply with HIPAA or its implementing regulations. Each Credit Party (i) is in
compliance with all laws, statutes, rules, regulations, ordinances and tariffs
of any Governmental Authority applicable to such Credit Party and such Credit
Party’s business, assets or operations, including, without limitation, ERISA and
Healthcare Laws, and (ii) is not in violation of any order of any Governmental
Authority or other board or tribunal, except where noncompliance or violation
could not reasonably be expected to result in a Material Adverse
Change.  There is no event, fact, condition or circumstance which,
with notice or passage of time, or both, would constitute or result in any
noncompliance with, or any violation of, any of the foregoing, in each case
except where noncompliance or violation could not reasonably be expected to
result in a Material Adverse Change.  No Credit Party has received any
notice that such Credit Party is not in compliance in any respect with any of
the requirements of any of the foregoing.  No Credit Party has (a)
engaged in any Prohibited Transactions as defined in Section 406 of ERISA
and Section 4975 of the Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder, (b) failed to meet any applicable
minimum funding requirements under Section 302 of ERISA in respect of its
plans and no funding requirements have been postponed or delayed, (c) any
knowledge of any event or occurrence which would cause the Pension Benefit
Guaranty Corporation to institute proceedings under Title IV of ERISA to
terminate any of the employee benefit plans, (d) any fiduciary responsibility
under ERISA for investments with respect to any plan existing for the benefit of
Persons other than its employees or former employees, or (e) withdrawn,
completely or partially, from any multi-employer pension plans so as to incur
liability under the MultiEmployer Pension Plan Amendments of
1980.  With respect to each Credit Party, there exists no event
described in Section 4043 of ERISA, excluding Subsections 4043(b)(2)
and 4043(b)(3) thereof, for which the required thirty (30) day notice period has
not been waived.  Each Credit Party has maintained in all material
respects all records required to be maintained by the Joint Commission on
Accreditation of Healthcare Organizations, the Food and Drug Administration,
Drug Enforcement Agency and State Boards of Pharmacy and the federal and state
Medicare and Medicaid programs as required by the Healthcare Laws and, to the
best knowledge of each Credit Party, there are no presently existing
circumstances which likely would result in material violations of the Healthcare
Laws.

     

    (b)           No
Credit Party (i)  is a Person whose property or interest in property is
blocked or subject to blocking pursuant to Section  1 of Executive Order
13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)), (ii) engages in any dealings or transactions prohibited by Section 2 of
such executive order, or is otherwise associated with any such Person in any
manner violative of such Section 2, or (iii) is a Person on the list of
Specially Designated Nationals and Blocked Persons or subject to the limitations
or prohibitions under any other OFAC regulation or executive order.

     

    
      
         

      

      
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    (c)           Each
Credit Party is in compliance, in all material respects, with the Patriot
Act.

     

    7.11       Intellectual
Property

     

    Schedule 7.11 lists,
as of the Closing Date, all (a) registered Intellectual Property (including
applications for registration) owned by Borrower and (b) licenses of rights in
Intellectual Property (other than non-customized mass market licenses of rights
in Intellectual Property) pursuant to which Borrower licenses rights in
Intellectual Property either from or to another Person, whether on an exclusive
or non-exclusive basis.

     

    7.12       Licenses
and Permits; Labor

     

    Each Credit Party is in
compliance with and has all Permits and Intellectual Property necessary or
required by applicable law or Governmental Authority for the operation of its
businesses as currently conducted.  All of the foregoing is in full
force and effect and not in known conflict with the rights of
others.  No Credit Party is (i) in breach of or default under the
provisions of any of the foregoing, nor is there any event, fact, condition or
circumstance which, with notice or passage of time or both, would constitute or
result in a conflict, breach, default or event of default under, any of the
foregoing which, if not remedied within any applicable grace or cure period
could reasonably be expected to result in a Material Adverse Change, (ii) a
party to or subject to any agreement, instrument or restriction that is so
unusual or burdensome that it might have a Material Adverse Change, and/or (iii)
and has not been, involved in any labor dispute, strike, walkout or union
organization which could reasonably be expected to result in a Material Adverse
Change.  Borrower has obtained, and currently has, all Permits
necessary in the generation of each Account.

     

    7.13       No
Default

     

    There does not exist any Default or
Event of Default.

     

    7.14       Disclosure

     

    No Loan
Document nor any other agreement, document, certificate, or statement furnished
to Lender by or on behalf of any Credit Party in connection with the
transactions contemplated by the Loan Documents, nor any representation or
warranty made any by Credit Party in any Loan Document, contains any untrue
statement of material fact or omits to state any fact necessary to make the
statements therein not materially misleading as of the date such statements were
delivered.  There is no fact known to any Credit Party which has not
been disclosed to Lender in writing which could reasonably be expected to result
in a Material Adverse Change.

     

    7.15       Existing
Indebtedness; Investments, Guarantees and Certain Contracts

     

    Except as contemplated by the Loan
Documents or as otherwise set forth on Schedule 7.15A,
no Credit Party (i) has any outstanding Indebtedness other than Permitted
Indebtedness, (ii) is not subject or party to any mortgage, note, indenture,
indemnity or guarantee of, with respect to or evidencing any Indebtedness of any
other Person, or (iii) owns or holds any equity or long-term debt investments
in, and has any outstanding advances to or any outstanding guarantees for the
obligations of, or any outstanding borrowings from, any Person.  Each
Credit Party has performed all material obligations required to be performed by
such Credit Party pursuant to or in connection with any items listed on Schedule 7.15A
and there has occurred no breach, default or event of default under any document
evidencing any such items or any fact, circumstance, condition or event which,
with the giving of notice or passage of time or both, would constitute or result
in a breach, default or event of default thereunder.  Schedule 7.15B sets
forth all Indebtedness with a maturity date during the Term, and identifies such
maturity date. No Credit Party has any existing accrued and unpaid Indebtedness
owing to any Governmental Authority or any other governmental
payor.

     

    
      
         

      

      
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    7.16       Other
Agreements

     

    Except as set forth on Schedule 7.16, (i)
there are no existing or proposed agreements,  arrangements,
understandings or transactions between any Credit Party and any of such Credit
Party’s officers, members, managers, directors, stockholders, partners, other
interest holders, employees or Affiliates or any members of their respective
immediate families, (ii) none of the foregoing Persons are directly or
indirectly, indebted to or have any direct or indirect ownership, partnership or
voting interest in, to such  Credit Party’s knowledge, any Affiliate
of such Credit Party or any Person that competes with such Credit Party (except
that any such Persons may own stock in, but not exceeding two percent (2%) of
the outstanding capital stock of, any publicly traded company that may compete
with such Credit Party (iii) no director or officer of any Credit Party has
received any compensation of any kind in consideration or otherwise of such
Credit Party entering into this Agreement, and (iv) neither Lender nor any of
its Affiliates has paid or offered to pay any compensation to any director or
officer of any Credit Party in consideration of such Credit Party’s entering
into the Loan Documents.

     

    7.17       Insurance

     

    Credit Parties have in full force and
effect such insurance policies as are customary in its industry and as may be
required pursuant to Section 8.5
hereof.  All such insurance policies are listed and described on Schedule
7.17.

     

    7.18       Names;
Location of Offices, Records and Collateral

     

    During
the preceding five years, Borrower has not conducted business under, filed any
tax return under, or used any name (whether corporate, partnership or assumed)
other than as shown on Schedule
7.18A.  Borrower is the sole owner of all of its names listed
on Schedule
7.18A, and any and all business done and invoices issued in such names
are Borrower’s sales, business and invoices.  Each trade name of
Borrower represents a division or trading style of Borrower.  Borrower
maintains its places of business and chief executive offices only at the
locations set forth on Schedule 7.18B, and
all Accounts of Borrower arise, originate and are located, and all of the
Collateral and all books and records in connection therewith or in any way
relating thereto or evidence the Collateral are located and shall be only, in
and at such locations.  All of the Collateral is located only in the
continental United States.  There are no facts, events or occurrences
which in any way impair the validity or enforceability thereof or tend to reduce
the amount payable thereunder from the face amount of the claim or invoice and
statements delivered to Lender with respect thereto.  To the best of
Credit Parties’ knowledge, (A) the Account Debtor thereunder had the capacity to
contract at the time any contract or other document giving rise thereto was
executed, (B) such Account Debtor is solvent, and, (C) subject to the final
sentence of this Section 7.18, there
are no proceedings or actions which are threatened or pending against any
Account Debtor thereunder which might result in any Material Adverse Change in
such Account Debtor’s financial condition or the collectability
thereof.  Borrower has obtained and currently has all Permits
necessary in the generation of each Account of Borrower and Borrower has
disclosed to Lender on each Borrowing Certificate (a “Denial
Disclosure”) the amount of all Accounts of Borrower for which Medicare is
the Account Debtor and for which payment has been denied and subsequently
appealed pursuant to the procedure described in the definition of Eligible
Accounts hereof, and Borrower is pursuing all available appeals in respect of
such Accounts, provided, that, Borrower shall
not be required to make a Denial Disclosure for up to $50,000 in the aggregate
that remain uncorrected at any time for claims denied due to coding and clerical
errors for the period covered by such Borrowing Certificate.

     

    
      
         

      

      
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    7.19       Lien
Perfection and Priority

     

    Upon the execution and delivery of this
Agreement, and upon the proper filing of the necessary financing statements
without any further action, Lender will have a good, valid and perfected first
priority Lien and security interest in the Collateral, subject to no transfer or
other restrictions or Liens of any kind in favor of any other Person except for
Permitted Liens.  No financing statement relating to any of the
Collateral is on file in any public office except those (i) on behalf of Lender,
and (ii) in connection with Permitted Liens.

     

    7.20       Investment
Company Act

     

    No Credit Party is required to register
as an “investment company” within the meaning of the Investment Company Act of
1940, as amended.

     

    7.21       Regulations
T, U and X

     

    No Credit
Party is engaged in the business of extending credit for the purpose of
purchasing or carrying any “margin stock” or “margin security” (within the
meaning of Regulations T, U or X issued by the Board of Governors of the Federal
Reserve System), and no proceeds of the Loans will be used to purchase or carry
any margin stock or margin security or to extend credit to others for the
purpose of purchasing or carrying any margin stock or margin
security.

     

    7.22       Survival

     

    Each Credit Party makes the
representations and warranties contained herein with the knowledge and intention
that Lender is relying and will rely thereon.  All such
representations and warranties will survive the execution and delivery of this
Agreement and the making of the Advances under the Revolving
Facility.

     

    
      	
              VIII.

            	
              AFFIRMATIVE
      COVENANTS

            

    

     

    Each Credit Party, jointly and
severally, covenants and agrees that, until all of the Obligations have been
fully performed and Paid in Full, and this Agreement has
terminated:

     

    
      
         

      

      
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              8.1

            	
              Financial
      Statements, Borrowing Certificate, Financial Reports and Other
      Information

            

    

     

    (a)           Financial
Reports.  Credit Parties shall furnish to Lender (i) as soon as
available and in any event when submitted to the Securities and Exchange
Commission but no later than one hundred and five (105) calendar days after the
end of each fiscal year of Credit Parties, audited annual consolidated and
consolidating financial statements of Credit Parties, including the notes
thereto, consisting of a consolidated and consolidating balance sheet at the end
of such completed fiscal year and the related consolidated and consolidating
statements of income, retained earnings, cash flows and owners’ equity for such
completed fiscal year, which financial statements shall be prepared by an
independent certified public accounting firm satisfactory to Lender and
accompanied by related management letters, if available; provided that beginning
with the financial statements for the fiscal year ending December 31, 2008, no
going concern opinion shall be issued in connection with such financial
statements, (ii) as soon as available and in any event within thirty calendar
days after the end of each calendar month (fifty calendar days after the end of
any month which coincides with the end of a fiscal quarter and sixty days after
the end of any month which coincides with the end of a fiscal year), unaudited
financial statements of Credit Parties consisting of a balance sheet and
statements of income and cash flows as of  the end of the immediately
preceding calendar month. Monthly financial statements provided to the Lender
which have been internally prepared by Borrower for any month which corresponds
with the end of a fiscal quarter or fiscal year will be subject to further
adjustments by the Credit Parties’ outside auditors before being
finalized.  All such financial statements shall be prepared in
accordance with GAAP consistently applied with prior periods except for any
normal quarter and year-end adjustments which may be applied in future periods
and for any changes in accounting methodology that may have been applied since
any prior period.  With each such financial statement, Credit Parties
shall also deliver a certificate of its chief financial officer or principal
accounting officer in substantially the form of Exhibit B hereto (a
“Compliance
Certificate”) stating that (A) such person has reviewed the relevant
terms of the Loan Documents and the condition of Credit Parties, (B) no Default
or Event of Default has occurred or is continuing, or, if any of the foregoing
has occurred or is continuing, specifying the nature and status and period of
existence thereof and the steps taken or proposed to be taken with respect
thereto, and (C) Credit Parties are in compliance with all financial covenants
attached as Annex I hereto.  Such certificate shall be accompanied by
the calculations necessary to show compliance with the financial covenants in a
form satisfactory to Lender and (iii) simultaneously with the delivery of
monthly financial statements for any given month, an accounts payable aging
schedule showing a reconciliation to the amounts reported in the monthly
financial statements.

     

    (b)           Other
Materials.  Credit Parties shall furnish to Lender as soon as
available, and in any event within ten calendar days after the preparation or
issuance thereof or at such other time as set forth below:  (i) copies
of such financial statements (other than those required to be delivered pursuant
to Section 8.1(a))
prepared by, for or on behalf of Credit Parties and any other notes, reports and
other materials related thereto, including, without limitation, any pro forma
financial statements, (ii) any reports, returns, information, notices and other
materials that any Credit Party shall send to its stockholders, members,
partners or other equity owners at any time unless such materials are publicly
available at www.sec.gov, (iii) all Medicare and Medicaid cost reports and other
documents and materials filed by Borrower and any other reports, materials or
other information regarding or otherwise relating to Medicaid or Medicare
prepared by, for or on behalf of Borrower other than internal working analyses,
(iv) simultaneously with the provision of any monthly financial statements
provided pursuant to Section 8(a) above to the extent such information has not
been already reflected in a Borrowing Certificate submitted to Lender: (A) a
report of the status of all payments, denials and appeals of all Medicare and
Medicaid Accounts (unless such denials were due to clerical errors in an amount
which does not require a Denial Disclosure, and (B) a sales and collection
report and accounts receivable aging schedule, including a report of sales,
credits issued and collections received, all such reports showing a
reconciliation to the amounts reported in the monthly financial statements, (v)
promptly upon receipt thereof, copies of any reports submitted to a Borrower by
its independent accountants in connection with any interim audit of the books of
such Person or any of its Affiliates and copies of each management control
letter provided by such independent accountants, (vi) within thirty (30)
calendar days after the execution thereof, a copy of any contracts with the
federal government or with a Governmental Authority in the State of New York,
Vermont or Washington and (vii) such
additional information, documents, statements, reports and other materials as
Lender may reasonably request from a credit or security perspective or otherwise
from time to time.

     

    
      
         

      

      
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    (c)           Notices.  Credit
Parties shall promptly, and in any event within four calendar days after
Borrower or any authorized officer of Borrower obtains knowledge thereof, notify
Lender in writing of (i) any pending or threatened litigation, suit,
investigation, arbitration, dispute resolution proceeding or administrative
proceeding brought or initiated by Borrower or otherwise affecting or involving
or relating to Borrower or any of its property or assets to the extent (A) the
amount in controversy exceeds $50,000.00, or (B) to the extent any of the
foregoing seeks injunctive relief, (ii) any Default or Event of Default, which
notice shall specify the nature and status thereof, the period of existence
thereof and what action is proposed to be taken with respect thereto,
(iii) any other development, event, fact, circumstance or condition that
would reasonably be expected to result in a Material Adverse Change, in each
case describing the nature and status thereof and the action proposed to be
taken with respect thereto, (iv) any notice received by a Borrower from any
payor of a claim, suit or other action such payor has, claims or has filed
against such Borrower, (v) any matter(s) affecting the value, enforceability or
collectability of any of the Collateral, including, without limitation, claims
or disputes in the amount of $50,000.00 or more, singly or in the aggregate, in
existence at any one time, (vi) any notice given by Borrower to any other lender
of such Borrower and shall furnish to Lender a copy of such notice, (vii)
receipt of any notice or request from any Governmental Authority or governmental
payor regarding any liability or claim of liability in excess of $50,000.00
singly or in the aggregate, (viii) receipt of any notice by Borrower regarding
termination of any manager of any facility owned, operated or leased by such
Borrower, (ix) if any Account becomes evidenced or secured by an Instrument or
Chattel Paper and (x) any pending, threatened or actual investigation or survey
of Borrower, its directors, officers or managing employees by any of the
Medicare, Medicaid or CHAMPUS/TRICARE programs, or any other third party payor
programs, (xi) Borrower becoming a party to a Corporate Integrity Agreement with
the Office of Inspector General of the Department of Health and Human Services,
(xii) Borrower becoming subject to reporting obligations pursuant to any
settlement agreement entered into with any Governmental Authority, (xiii)
Borrower becoming the subject of any government payor program investigation
conducted by any federal or state enforcement agency, (xiv) Borrower becoming a
defendant in any qui tam/False Claims Act litigation, (xv) Borrower being served
with or received any search warrant, subpoena, civil investigative demand or
contact letter by or from any federal or state enforcement agency relating to an
investigation or (xvi) Borrower becoming subject to any written complaint filed
with or submitted to any Governmental Authority having jurisdiction over such
Borrower or filed with or submitted to such Borrower pursuant to such Borrower’s
policies relating to the filing or submissions of such types of complaints, from
employees, independent contractors, vendors, physicians, or any other person
that would indicate that such Borrower has violated any law, regulation or
law.

     

    (d)           Consents.  Credit
Parties shall use their best efforts to obtain and deliver from time to time all
required consents, approvals and agreements from such third parties as Lender
shall determine are necessary or desirable in its Permitted Discretion, each of
which must be satisfactory to Lender in its Permitted Discretion and acceptable
to such third party, with respect to (i) the Loan Documents and the transactions
contemplated thereby, (ii) claims against a Borrower or the Collateral, and/or
(iii) any agreements, consents, documents or instruments to which Borrower is a
party or by which any properties or assets of Borrower or any of the Collateral
is or are bound or subject, including, without limitation, Landlord Waivers and
Consents with respect to leases.

     

    (e)           Operating
Budget.  Credit Parties shall furnish to Lender on or prior to
the Closing Date and for each fiscal year of Credit Parties prior to the
commencement of such fiscal year, a draft of consolidated and consolidating
month by month projected operating budgets, annual projections, profit and loss
statements, balance sheets and cash flow reports of and for Credit Parties for
such upcoming fiscal year (including an income statement for each month and a
balance sheet as at the end of the last month in each fiscal quarter), in each
case prepared in accordance with GAAP consistently applied with prior periods,
provided, that, (A) such Budget as submitted to the Board of Directors of
Borrower for approval shall be provided to Lender by Borrower not less than
sixty (60) days after commencement of such fiscal year and (B) a final version
of the budget as approved by the Board of Directors of Borrower for each fiscal
year shall be provided to Lender by Borrower not less than ten (10) calendar
days after the approval of such budget or any revision thereof by the Board of
Directors.

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    (f)           Ancillary Materials to be
Furnished Upon Request.  Upon written request by Lender, Credit
Parties shall use its best efforts to furnish to Lender within ten (10) calendar
days after the request therefore the following kinds of information: (1) any
other reports, materials or other information regarding or otherwise relating to
Medicaid or Medicare prepared by, for, or on behalf of, Borrower or any of its
Subsidiaries, including, without limitation, (A) copies of licenses and permits
required by any applicable federal, state, foreign or local law, statute,
ordinance or regulation or Governmental Authority for the operation of its
business (B) Medicare and Medicaid provider numbers and agreements, (C) state
surveys pertaining to any healthcare facility operated or owned or leased by
Borrower or any of its Affiliates or Subsidiaries, (D) participating agreements
relating to medical plans (ii) copies of material licenses and permits required
by applicable federal, state, foreign or local law, statute, ordinance or
regulation or Governmental Authority for the Operation of Borrower’s
business.

     

    8.2     
   [Reserved]

     

    8.3      
  Conduct of Business and Maintenance of Existence and
Assets

     

    Borrower
shall (i) conduct its business in accordance with good business practices
customary to the industry, (ii) engage principally in the same or similar lines
of business substantially as heretofore conducted, (iii) collect its Accounts in
the ordinary course of business, (iv) maintain all of its material properties,
assets and equipment used or useful in its business in good repair, working
order and condition (normal wear and tear excepted and except as may be disposed
of in the ordinary course of business and in accordance with the terms of the
Loan Documents and otherwise as determined by such Borrower using commercially
reasonable business judgment), (v) from time to time to make all necessary or
desirable repairs, renewals and replacements thereof, as determined
by such Borrower using commercially reasonable business judgment, (vi) maintain
and keep in full force and effect its existence and all material Permits and
qualifications to do business and good standing in each jurisdiction in which
the ownership or lease of property or the nature of its business makes such
Permits or qualification necessary and in which failure to maintain such Permits
or qualification could reasonably be expected to result in a Material Adverse
Change; and (vii) remain in good standing and maintain operations in all
jurisdictions in which currently located.

     

    8.4        
Compliance with Legal and Other Obligations

     

    Each
Credit Party shall (i) comply with all laws, statutes, rules, regulations,
ordinances and tariffs of all Governmental Authorities applicable to it or its
business, assets or operations, including applicable requirements which where
promulgated pursuant to HIPAA (ii) pay all taxes, assessments, fees,
governmental charges, claims for labor, supplies, rent and all other obligations
or liabilities of any kind, except liabilities being contested in good faith and
against which adequate reserves have been established, (iii) perform in
accordance with its terms each contract, agreement or other
arrangement  to which it is a party or by which it or any of the
Collateral is bound, except where the failure to comply, pay or perform could
not reasonably be expected to result in a Material Adverse Change, (iv) maintain
and comply with all Permits necessary to conduct its business and comply with
any new or additional requirements that may be imposed on it or its business,
and (v) properly file all Medicaid, Medicare and CHAMPUS/TRICARE cost
reports.  Without limiting the foregoing, Borrower is, and while this
Agreement shall remain in effect shall remain, qualified for participation in
the Medicare, Medicaid and CHAMPUS/TRICARE programs; Borrower has, and while
this Agreement shall remain in effect shall maintain, a current and valid
provider contract with such programs; Borrower is, and while this Agreement
shall remain in effect shall remain, in compliance with the conditions of
participation in such programs; and Borrower has, and while this Agreement shall
remain in effect shall maintain, all approvals or qualification necessary for
capital reimbursement for any facility operated by Borrower.  While
this Agreement shall remain in effect, all billing practices of Borrower with
respect to any facility operated by Borrower and all third party payors,
including the Medicare, Medicaid and CHAMPUS/TRICARE programs and private
insurance companies, shall remain in compliance with all applicable laws,
regulations and policies of such third party payors and the Medicare, Medicaid
and CHAMPUS/TRICARE programs. 

     

    
      
         

      

      
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    8.5     
   Insurance

     

    Borrower
shall keep (i) all of its insurable properties and assets adequately insured in
all material respects against losses, damages and hazards as are customarily
insured against by businesses engaging in similar activities or owning similar
assets or properties and at least the minimum amount required by applicable law,
including, without limitation, medical malpractice and professional liability
insurance, as applicable; (ii) maintain general public liability insurance at
all times against liability on account of damage to persons and property having
such limits, deductibles, exclusions and co-insurance and other provisions as
are customary for a business engaged in activities similar to those of Credit
Parties; and (iii) maintain insurance under all applicable workers’ compensation
laws; all of the foregoing insurance policies to (A) be satisfactory in
form and substance to Lender, (B) expressly provide that they cannot be amended
to reduce coverage or canceled without thirty (30) calendar days prior
written notice to Lender and that they inure to the benefit of Lender
notwithstanding any action or omission or negligence of or by such Credit Party
or any insured thereunder.  With respect to property insurance
covering business interruption, accounts receivable and the books and records in
connection therewith, Lender shall be named as loss payee and additional insured
and with respect to general liability insurance Lender shall be named as
additional insured.

     

    8.6      
  Books and Records

     

    Each Credit Party shall (i) keep
complete and accurate books of record and account in accordance with
commercially reasonable business practices in which true and correct entries are
made of all of its and their dealings and transactions in all material respects;
and (ii) set up and maintain on its books such reserves as may be required by
GAAP with respect to doubtful accounts and all taxes, assessments, charges,
levies and claims and with respect to its business, and include such reserves in
its quarterly as well as year end financial statements.

     

    8.7       
 Inspections; Periodic Audits and Reappraisals

     

    Each
Credit Party shall permit the representatives of Lender, at the expense of
Credit Parties, from time to time during normal business hours, but no more
frequently than three times per year so long as no Default or Event of Default
occurs and is continuing upon reasonable notice, to (i) visit and inspect any of
its offices or properties or any other place where Collateral is located to
inspect the Collateral and/or to examine or audit all of its books of account,
records, reports and other papers, (ii) make copies and extracts therefrom, and
(iii) discuss its business, operations, prospects, properties, assets,
liabilities, condition and/or Accounts with its officers and independent public
accountants (and by this provision such officers and accountants are authorized
to discuss the foregoing) upon seven (7) Business Days prior written notice;
provided, however, that (A) Borrower shall not be obligated to reimburse Lender
for more than three (3) visits, inspections, examinations and audits under the
foregoing clause (i) conducted during any fiscal year while no Default or Event
of Default exists at a cost of $850 per auditor per day plus all out-of-pocket
expenses of Lender (it being agreed and understood that the Borrower shall be
Obligated to reimburse Lender for all such visits, inspections, examinations and
audits conducted while any Default or Event of Default exists); and (B) no
notice shall be required to do any of the foregoing if any Event of Default has
occurred and is continuing.

     

    
      
         

      

      
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    8.8  
      Further Assurances;
Post-Closing

     

    At Credit Parties’ cost and expense,
each Credit Party shall (i) within five Business Days after Lender’s
request, take such further actions, obtain such consents and approvals and duly
execute and deliver such further agreements, assignments, instructions or
documents as Lender may deem necessary in its Permitted Discretion with respect
to furtherance of the purposes, terms and conditions of the Loan Documents and
the consummation of the transactions contemplated thereby, whether before, at or
after the performance or consummation of the transactions contemplated hereby or
the occurrence of a Default or Event of Default, (ii) without limiting and
notwithstanding any other provision of any Loan Document, execute and deliver,
or cause to be executed and delivered, such agreements and documents, and take
or cause to be taken such actions, and otherwise perform, observe and comply
with such obligations, as are set forth on Schedule 8.8, and (iii) upon the
exercise by Lender or any of its Affiliates of any power, right, privilege or
remedy pursuant to any Loan Document or under applicable law or at equity which
requires any consent, approval, registration, qualification or authorization of
any Governmental Authority, execute and deliver, or cause the execution and
delivery of, all applications, certificates, instruments and other documents
requested by Lender in its Permitted Discretion that may be so required for such
consent, approval, registration, qualification or
authorization.  Without limiting the foregoing, upon the exercise by
Lender or any of its Affiliates of any right or remedy under any Loan Document
which requires any consent, approval or registration with, consent,
qualification or authorization by, any Person, Credit Parties shall execute and
deliver, or cause the execution and delivery of, all applications, certificates,
instruments and other documents that Lender or its Affiliate may be required to
obtain for such consent, approval, registration, qualification or
authorization.

     

    8.9   
     Use of Proceeds

     

    Borrower
shall use the proceeds from the Revolving Facility only for the purposes set
forth in the first “WHEREAS” clause of this Agreement.

     

    8.10  
    [Reserved]

     

    8.11   
   [Reserved]

     

    8.12    
  Taxes and Other Charges

     

    (a)  All
payments and reimbursements to Lender made under any Loan Document shall be free
and clear of and without deduction for all taxes, levies, imposts, deductions,
assessments, charges or withholdings, and all liabilities with respect thereto
of any nature whatsoever, excluding taxes to the extent imposed on Lender’s net
income.  If any Credit Party shall be required by law to deduct any
such amounts from or in respect of any sum payable under any Loan Document to
Lender, then the sum payable to Lender shall be increased as may be necessary so
that, after making all required deductions, Lender receives an amount equal to
the sum it would have received had no such deductions been
made.  Notwithstanding any other provision of any Loan Document, if at
any time after the Closing (i) any change in any existing law, regulation,
treaty or directive or in the interpretation or application thereof, (ii) any
new law, regulation, treaty or directive enacted or any interpretation or
application thereof, or (iii) compliance by Lender with any new request or
new directive (whether or not having the force of law) from any Governmental
Authority after the date of Closing:  (A) subjects Lender to any tax,
levy, impost, deduction, assessment, charge or withholding of any kind
whatsoever directly arising from any Loan Document or from payments directly
received by the Lender from any Credit Party pursuant to the Loan Documents
(except for net income taxes, franchise taxes imposed in lieu of net income
taxes, and any other taxes on the general affairs of the Lender which may be
imposed generally by federal, state or local taxing authorities with respect to
interest or commitment fees or other fees payable hereunder or changes in the
rate of tax on the overall net income of Lender), or (B) imposes on Lender any
other condition or increased cost directly in connection with the transactions
contemplated thereby or participations therein (specifically excluding any
general costs imposed on Lender by any government entity that are not directly
related to the obligations hereunder); and the result of any of the foregoing is
to directly increase the cost to Lender of making or continuing any Loan
hereunder or to reduce any amount receivable hereunder, then, in any such case,
Credit Parties shall promptly, and in any event within ten (10) Business days of
Credit Party’s receipt of notice from Lender, pay to Lender any additional
amounts necessary to compensate Lender, on an after-tax basis, for such
additional cost or reduced amount as determined by Lender.  If Lender
becomes entitled to claim any additional amounts pursuant to this Section 8.12 it shall
promptly notify Credit Parties of the event by reason of which Lender has become
so entitled and contain a calculation of such additional amounts that are
proposed to be due and payable and shall answer any questions and provide any
explanation reasonably requested by Borrower in good faith to understand the
nature and purported reason for such additional amounts.

     

    
      
         

      

      
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      (b)  Credit
Parties shall promptly, and in any event within five Business Days after any
Credit Party or any authorized officer of any Credit Party obtains knowledge
thereof, notify Lender in writing of any oral or written communication from any
taxing authority or otherwise with respect to any (i) tax investigations,
relating to such Credit Party directly, or relating to any consolidated tax
return which was filed on behalf of such Credit Party, (ii) notices of tax
assessment or possible tax assessment, (iii) years that are designated open
pending tax examination or audit, and (iv) information that could give rise to
any tax liability or assessment.

       

      
        	
              	
                8.13

              	
                Payroll
      Taxes

              

      

       

      Without
limiting or being limited by any other provision of any Loan Document, each
Credit Party at all times shall retain and use a Person acceptable to Lender to
process, manage and pay its payroll taxes and shall cause to be delivered to
Lender within ten calendar days after the end of each calendar month a report of
its payroll taxes for the immediately preceding calendar month and evidence of
payment thereof.  Notwithstanding the foregoing, being copied on
Borrower’s payroll reports within the period specified in the preceding sentence
shall satisfy this requirement; provided that such payroll report sets forth the
status of payroll taxes.

       

      
        	
                 
      

              	
                8.14

              	
                New
      Subsidiaries

              

      

       

      If at any time after the Closing Date
Borrower shall form or acquire any new Subsidiary, Borrower shall promptly, and
in any event not later than fifteen calendar days after the creation or
acquisition of such Subsidiary or such longer period as Lender may determine in
writing, execute, and cause such new Subsidiary to execute, and deliver to
Lender such joinder agreements and amendments to this Agreement and the other
Loan Documents, including executing and delivering allonges to any Notes to the
extent issued hereunder in form and substance satisfactory to Lender and
providing such other documentation as Lender may reasonably request, including,
without limitation, UCC searches, as applicable, and filings, legal opinions and
corporate authorization documentation, and to take such other actions in each
case as Lender deems necessary or advisable to (a) join and make such new
Subsidiary a co-Borrower hereunder and thereunder, subject to all the rights and
benefits and obligations and burdens of a Borrower hereunder, (b) grant to
Lender a perfected first priority security interest in the Collateral of such
new Subsidiary subject to no Liens other than the Permitted Liens.

       

      
        	
                 
      

              	
                8.15

              	
                [Reserved]

              

      

       

      
        	
                IX.

              	
                NEGATIVE
      COVENANTS

              

      

       

      Each Credit Party, jointly and
severally, covenants and agrees that, until the indefeasible payment in full in
cash, and the full performance of all, of the Obligations and termination of
this Agreement:

       

      
        	
                 
      

              	
                9.1

              	
                Financial
      Covenants

              

      

       

      Borrower
shall not violate the financial covenants set forth on Annex I to this
Agreement, which is incorporated herein and made a part hereof.

       

      
        
           

        

        
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                9.2

              	
                Permitted
      Indebtedness

              

      

       

      Borrower
shall not create, incur, assume or suffer to exist any Indebtedness, other than
Permitted Indebtedness.  Borrower shall not make prepayments on any
existing or future Indebtedness to any Person other than to Lender or to the
extent specifically permitted by this Agreement or any subsequent agreement
between Borrower and Lender.

       

      
        	
                 
      

              	
                9.3

              	
                Permitted
      Liens

              

      

       

      Borrower shall not create, incur,
assume or suffer to exist any Lien upon, in or against, or pledge of, any of the
Collateral or any of its other properties or assets of Borrower including but
not limited to Deposit Accounts, cash or other money and Investment Property,
whether now owned or hereafter acquired, except Permitted Liens.

       

      
        	
                 
      

              	
                9.4

              	
                Investments;
      New Facilities or Collateral;
Subsidiaries

              

      

       

      Except as set forth on Schedule 9.4,
Borrower shall not, directly or indirectly, enter into any agreement to,
(i) purchase, own, hold, invest in or otherwise acquire obligations or
stock or securities of, or any other interest in, or all or substantially all of
the assets of, any Person or any joint venture, or (ii) make or permit to
exist any loans, advances or guarantees to or for the benefit of any Person or
assume, guarantee, endorse, contingently agree to purchase or otherwise become
liable for or upon or incur any obligation of any Person (other than those
created by the Loan Documents and Permitted Indebtedness and other than
(A) trade credit extended in the ordinary course of business, (B) advances
for business travel and similar temporary advances made in the ordinary course
of business to officers, directors and employees, (C) investments in Cash
Equivalents and (D) the endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of
business).  Borrower shall not, directly or indirectly, purchase, own,
operate, hold, invest in or otherwise acquire any facility, property or assets
or any Collateral that is not located at the locations set forth on Schedule 7.18B unless
Borrower shall provide to Lender at least ten (10) Business Days prior written
notice.  Borrower shall not have any Subsidiaries other than those
Subsidiaries, if any, existing at Closing and set forth on Schedule 7.3., unless
Borrower and new Subsidiary fully complies with Section 8.14
hereof.

       

      Notwithstanding the foregoing, Borrower
shall be permitted to make Permitted Acquisitions with Lender’s prior written
consent; provided, however, that the
consent of Lender shall not be required if the cash consideration paid in
respect of the Permitted Acquisition does not exceed $500,000 and Borrower fully
complies with Section
8.14 hereof.

       

      
        	
                 
      

              	
                9.5

              	
                Dividends;
      Redemptions

              

      

       

      Borrower shall not (i) declare, pay or
make any Distribution, (ii) apply any of its funds, property or assets to the
acquisition, redemption or other retirement of any Capital Stock, (iii)
otherwise make any payments or Distributions to any stockholder, member, partner
or other equity owner in such Person’s capacity as such, or (iv) make any
payment of any Management or Service Fee; provided however, that absent
the occurrence and continuation of a Default or Event of Default, and if a
Default or Event of Default would not arise therefrom, Borrower may: (x) make
Permitted Distributions, (y) declare, pay or make Distributions payable in its
stock, or split-ups or reclassifications of its stock; and (z) redeem its
capital stock from terminated employees pursuant to, but only to the extent
required under, the terms of the related employment agreements.

       

      
        
           

        

        
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                9.6

              	
                Transactions
      with Affiliates

              

      

       

      Except as
set forth on Schedule 9.6, Borrower shall not enter into or consummate any
transaction of any kind with any of its Affiliates or Guarantor or any of their
respective Affiliates other than: (i) salary, bonus, severance, employee stock
option and other compensation, consulting and employment arrangements with
directors or officers in the ordinary course of business, provided, that, no payment of
any cash bonus or severance shall be permitted if a Default or Event of Default
has occurred and remains in effect or would be caused by or result from such
payment, and no payment of any severance shall be made, individually or in the
aggregate, in excess of $250,000 in any twelve (12) month period, (ii)
Distributions permitted pursuant to Section 9.5, and
(iii) the making of payments permitted under and pursuant to a written agreement
entered into by and between Borrower and one or more of its Affiliates that both
(A) reflects and constitutes a transaction on overall terms at least as
favorable to Borrower as would be the case in an arm’s-length transaction
between unrelated parties of equal bargaining power; provided, that, notwithstanding
the foregoing Borrower shall not (Y) enter into or consummate any transaction or
agreement pursuant to which it becomes a party to any mortgage, note, indenture
or guarantee evidencing any Indebtedness of any of its Affiliates or otherwise
to become responsible or liable, as a guarantor, surety or otherwise, pursuant
to agreement for any Indebtedness of any such Affiliate, or (Z) make any
payments to any of its Affiliates in excess of $50,000 in the aggregate during
any consecutive twelve calendar month period without the prior written consent
of Lender (other than payments permitted pursuant to clause (i) or (ii)
above).

       

      
        	
                 
      

              	
                9.7

              	
                Charter
      Documents; Fiscal Year; Dissolution; Use of
  Proceeds

              

      

       

      No Credit Party shall (i) amend,
modify, restate or change its certificate of incorporation or formation or
bylaws or similar charter documents without the prior written consent of the
Lender, which consent shall not be unreasonably withheld, (ii) change its
fiscal year unless such Credit Party demonstrates to Lender’s satisfaction
compliance with the covenants contained herein for both the fiscal year in
effect prior to any change and the new fiscal year period by delivery to Lender
of appropriate interim and annual pro forma, historical and current compliance
certificates for such periods and such other information as Lender may
reasonably request, (iii) amend, alter or suspend or terminate or make
provisional in any material way, any material Permit without the prior written
consent of Lender, which consent shall not be unreasonably
withheld.  Notwithstanding the foregoing, the Lender acknowledges that
the following will not be deemed to be a violation of this covenant: (A) any
suspension of any license or Permit in any state caused by the departure of any
scientific or medical personnel, and (B) any amendment of a license or permit in
the ordinary course of business to enable Borrower to pursue additional
opportunities; provided that neither (A) nor (B) shall result in the impairment
of Borrower’s ability to collect any Account or account receivable,
(iv) wind up, liquidate or dissolve (voluntarily or involuntarily) or
commence or suffer any proceedings seeking or that would result in any of the
foregoing, (v) use any proceeds of any Advance for “purchasing” or “carrying”
“margin stock” as defined in Regulations U, T or X of the Board of Governors of
the Federal Reserve System, or (vi) without providing at least thirty calendar
days prior written notice to Lender, change its name or organizational
identification number, if it has one.

       

      
        	
                 
      

              	
                9.8

              	
                Truth
      of Statements

              

      

       

      No Credit
Party shall (a) furnish to Lender any certificate or other document created or
produced by Borrower that contains any untrue statement of a material fact or
that omits to state a material fact necessary to make it not misleading in light
of the circumstances under which it was furnished as of the date it was provided
to Lender; and (b) furnish any document created or produced by a third party
that Borrower knows (A) contains any untrue statement of a material fact or (B)
omits to state a material fact necessary to make it not misleading in light of
the circumstances under which it was furnished.

       

      
        
           

        

        
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                9.9

              	
                IRS
      Form 8821

              

      

       

      No Credit
Party shall alter, amend, restate, or otherwise modify, or withdraw, terminate
or re-file the IRS Form 8821 required to be delivered pursuant to the Conditions
Precedent in Section
6.1 hereof.

       

      
        	
                 
      

              	
                9.10

              	
                Transfer
      of Assets

              

      

       

      Notwithstanding any other provision of
this Agreement or any other Loan Document, Borrower shall not, nor shall it
permit any of its Subsidiaries to, sell, lease, transfer, assign or otherwise
dispose of any interest in any properties or assets (other than obsolete fixed
assets or excess fixed assets no longer needed in the conduct of the business in
the ordinary course of business and sales of Inventory in the ordinary course of
business), or agree to do any of the foregoing at any future time, except
that:

       

      (a)           Borrower
may lease or sublease (as lessor or sub-lessor) real or personal
property  pursuant to a true lease not constituting Indebtedness and
not entered into as part of a sale and leaseback transaction, in each case in
the ordinary course of business and which could not reasonably be expected to
result in a Material Adverse Effect.

       

      (b)           Borrower
may arrange for warehousing, fulfillment or storage of Inventory at locations
not owned or leased by Borrower, in each case in the ordinary course of
business;

       

      (c)           Borrower
may license or sublicense Intellectual Property to third parties in the ordinary
course of business; provided, that, such licenses
or sublicenses shall not interfere with the business or other operations of
Borrower; and

       

      (d)           Borrower
may consummate such other sales or dispositions of property or assets in excess
of $50,000 (including any sale or transfer or disposition of all or any part of
its assets and thereupon and within one year thereafter rent or lease the assets
so sold or transferred) only to the extent prior written notice has been given
to Lender and to the extent Lender has given its prior written consent thereto,
subject in each case to such conditions as may be set forth in such
consent.

       

      
        	
              	
                9.11

              	
                OFAC

              

      

       

      No Credit
Party nor any Subsidiary of any Credit Party (i) will be or become a Person
whose Property or interests in Property are blocked or subject to blocking
pursuant to Section  1 of Executive Order 13224 of September 23, 2001
Blocking property and Prohibiting Transactions With Persons Who Commit, Threaten
to Commit or Support Terrorism (66 Fed. Reg. 49079(2001), (ii) will engage in
any dealings or transactions prohibited by Section 2 of such executive order, or
otherwise be associated with any such Person in any manner violative of Section
2 of such executive order, or (iii) otherwise will become a Person on the list
of Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other OFAC regulation or executive
order.

       

      
        	
                 
      

              	
                9.12

              	
                Payroll
      Accounts

              

      

       

      Borrower shall not maintain a greater
balance in any payroll account than is necessary to support Borrower’s current
payroll and payroll for one additional payroll cycle (bi-monthly or weekly as
applicable).

       

      
        	
              	
                9.13

              	
                US
      Lab Litigation

              

      

       

      Borrower shall not pay more than
$100,000 in the aggregate with respect to any award or settlement in connection
with the litigation with US Labs described in Schedule
7.6.  Notwithstanding the foregoing, Borrower may pay amounts
in excess of the $100,000 set forth in the preceding sentence (the “Excess
Award”); provided, that, Borrower shall,
simultaneously with the payment of such Excess Award, have received proceeds at
least in the amount of such Excess Award from: (a) a capital contribution, (b)
Parent Indebtedness or (c) Indebtedness permitted under clause (v) of the
definition of Permitted Indebtedness.

       

      
        
           

        

        
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                X.

              	
                EVENTS
      OF DEFAULT

              

      

       

      The
occurrence of any one or more of the following shall constitute an “Event of
Default:”

       

      (a)           any
Credit Party shall fail to pay any amount on the Obligations when due (whether
on any payment date, at maturity, by reason of acceleration, by notice of
intention to prepay, by required prepayment or otherwise);

       

      (b)           any
representation, statement or warranty made or deemed made by any Credit Party in
any Loan Document or in any other certificate, document or report delivered in
conjunction with any Loan Document, shall not be true and correct in all
material respects or shall have been false or misleading in any material respect
on the date when made or deemed to have been made;

       

      (c)           any
Credit Party or other party thereto other than Lender shall be in violation,
breach or default of, or shall fail to perform, observe or comply with any
covenant, obligation or agreement set forth in, any Loan Document and such
violation, breach, default or failure shall not be cured within the applicable
period set forth in the applicable Loan Document; provided that, with respect to
the affirmative covenants set forth in Article VIII (other
than Sections 8.1(c),
8.3, 8.8, 8.9,
for which there shall be no cure period and Section 8.5 for which there
shall be a five (5) Business Day cure period), there shall be a thirty calendar
day cure period commencing from the earlier of (i) Receipt by such Person
of written notice of such breach, default, violation or failure, and
(ii) the time at which such Person or any authorized officer thereof knew
or became aware, or should have known or been aware, of such failure, violation,
breach or default, but no Advances will be made during the cure
period;

       

      (d)           (i)
any of the Loan Documents ceases to be in full force and effect, or (ii) any
Lien created thereunder ceases to constitute a valid perfected first priority
Lien on the Collateral in accordance with the terms thereof, or Lender ceases to
have a valid perfected first priority security interest in any of the Collateral
pledged to Lender pursuant to the Loan Documents; provided, that, with respect to
non-material breaches or violations that constitute Events of Default under
clause (ii) of this Section 10(d), there
shall be a five (5) Business Day cure period commencing from the earlier of
(A) Receipt by the applicable Person of written notice of such breach or
violation or of any event, fact or circumstance constituting or resulting in any
of the foregoing, and (B) the time at which such Person or any authorized
officer thereof knew or became aware, or should have known or been aware, of
such breach or violation and resulting Event of Default or of any event, fact or
circumstance constituting or resulting in any of the foregoing;

       

      (e)           one
or more tax judgments, decrees, arbitrations or other binding award is rendered
against any Credit Party in an amount in excess of $25,000 individually or
$75,000 in the aggregate in any consecutive 12-month period, which is/are not
satisfied, stayed, vacated or discharged of record within thirty calendar days
of being rendered but no Advances will be made before the judgment is stayed,
vacated or discharged unless otherwise agreed to in writing by Lender except for
the US Lab Award;

       

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

       

      (f)           (i) any
default occurs, which is not cured or waived, (x) in the payment when due
of any amount with respect to any Indebtedness (other than the Obligations) of
any Credit Party having an aggregate principal balance of at least $50,000,
(y) in the performance, observance or fulfillment of any provision
contained in any agreement, contract, document or instrument to which any Credit
Party is a party or to which any of their properties or assets are subject or
bound under or pursuant to which any Indebtedness having an aggregate principal
balance of at least $50,000 was issued, created, assumed, guaranteed or secured
and such default continues for more than any applicable grace period or permits
the holder of any Indebtedness to accelerate the maturity thereof, or (ii) any
Indebtedness of any Credit Party is declared to be due and payable or is
required to be prepaid (other than by a regularly scheduled payment) prior to
the stated maturity thereof, or any obligation of such Person for the payment of
Indebtedness (other than the Obligations) is not paid when due or within any
applicable grace period, or any such obligation becomes or is declared to be due
and payable before the expressed maturity thereof, or there occurs an event
which, with the giving of notice or lapse of time, or both, would cause any such
obligation to become, or allow any such obligation to be declared to be, due and
payable;

       

      (g)           any
Credit Party shall (i) be unable to pay its debts generally as they become due,
(ii) make a general assignment for the benefit of its creditors, (iii)
commence, or consent to, a proceeding for the appointment of a receiver,
trustee, liquidator or conservator of itself or of the whole or any substantial
part of its property, or (iv) file a petition seeking reorganization or
liquidation or similar relief under any Debtor Relief Law;

       

      (h)           a
court of competent jurisdiction shall (A) enter an order, judgment or decree
appointing a custodian, receiver, trustee, liquidator or conservator of any
Credit Party or the whole or any substantial part of any such Person’s
properties, which shall continue unstayed and in effect for a period of sixty
calendar days, (B) shall approve a petition filed against any Credit Party
seeking reorganization, liquidation or similar relief under the any Debtor
Relief Law, which is not dismissed within sixty calendar days or, (C) under
the provisions of any Debtor Relief Law, assume custody or control of any Credit
Party or of the whole or any substantial part of any such Person’s properties,
which is not irrevocably relinquished within sixty calendar days, or
(ii) there is commenced against any Credit Party any proceeding or petition
seeking reorganization, liquidation or similar relief under any Debtor Relief
Law and either (A) any such proceeding or petition is not unconditionally
dismissed within sixty calendar days after the date of commencement, or (B) any
Credit Party takes any action to indicate its approval of or consent to any such
proceeding or petition, but no Advances will be made before any such order,
judgment or decree described above is stayed, vacated or discharged, any such
petition described above is dismissed, or any such custody or control described
above is relinquished;

       

      (i)     
      (i) any Change of Control occurs or any
binding agreement (that does not require Lender’s consent as a condition to
closing) to cause or that may result in any such Change of Control is entered
into, (ii) any Material Adverse Change occurs or is reasonably expected to
occur, (iii) any Liability Event occurs or is reasonably expected to occur, or
(iv) any Credit Party ceases any material portion of its business operations as
currently conducted;

       

      (j)           Lender
receives any indication or evidence that (i) any Credit Party may have directly
or indirectly been engaged in any type of activity, which, in Lender’s Permitted
Discretion, might result in forfeiture of any property with a value in excess of
$25,000 to any Governmental Authority which shall have continued unremedied for
a period of ten calendar days after written notice from Lender (but no Advances
will be made before any such activity ceases) or (ii) any Credit Party or any of
their respective directors or senior officers is criminally indicted or
convicted under any law that could lead to a forfeiture of any
Collateral;

       

      (k)           uninsured
damage to, or loss, theft or destruction of, any portion of the Collateral
occurs that exceeds $10,000 in the aggregate;

       

      (l)       
    the issuance of any process for levy, attachment or
garnishment or execution upon or prior to any judgment against any Credit Party
or any of their property or assets in excess of $50,000.

       

      
        
           

        

        
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      Upon the occurrence of an Event of
Default, notwithstanding any other provision of any Loan Document, Lender may,
without notice or demand, do any of the following: (i) terminate its obligations
to make Advances hereunder and (ii) all or any of the Loans and/or Notes, all
interest thereon and all other Obligations shall automatically, without any
further action by Lender, be due and payable immediately (except in the case of
an Event of Default under Section 10(d), (g), or (h), in which event
all of the foregoing shall automatically and without further act by Lender be
due and payable), and (ii) prohibit any action permitted to be taken under
Article IX hereof, in each case without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by Credit
Parties.

       

      
        	
                XI.

              	
                RIGHTS
      AND REMEDIES AFTER DEFAULT

              

      

       

      
        	
                 
      

              	
                11.1

              	
                Rights
      and Remedies

              

      

       

      (a)           In
addition to the acceleration provisions set forth in Article X above, upon
the occurrence and continuation of an Event of Default, Lender shall have the
right to exercise any and all rights, options and remedies provided for in any
Loan Document, under the UCC or at law or in equity, including, without
limitation, the right to (i) at Credit Parties’ expense, require that all or any
part of the Collateral be assembled and made available to Lender at any place
designated by Lender, (ii) reduce or otherwise change the Facility Cap, and/or
(iii) relinquish or abandon any Collateral or any Lien
thereon.  Notwithstanding any provision of any Loan Document, Lender,
in its sole discretion, shall have the right, at any time that Credit Parties
fail to do so, and from time to time, without prior notice, to: (i) obtain
insurance covering any of the Collateral to the extent required hereunder; (ii)
pay for the performance of any of Obligations; (iii) discharge taxes or Liens on
any of the Collateral that are in violation of any Loan document unless Credit
Parties are in good faith with due diligence by appropriate proceedings
contesting those items; and (iv) pay for the maintenance and preservation of the
Collateral.  Such expenses and advances shall be added to the
Obligations until reimbursed to Lender and shall be secured by the Collateral,
and such payments by Lender shall not be construed as a waiver by Lender of any
Event of Default or any other rights or remedies of Lender.  Credit
Parties hereby waive any and all rights that they may have to a judicial hearing
in advance of the enforcement of any of Lender’s rights and remedies hereunder,
including, without limitation, its right following the occurrence of an Event of
Default  to take immediate possession of the Collateral and to
exercise its rights and remedies with respect thereto.

       

      (b)           Credit
Parties agrees that notice received by it at least fifteen calendar days before
the time of any intended public sale, or the time after which any private sale
or other disposition of Collateral is to be made, shall be deemed to be
reasonable notice of such sale or other disposition.  If permitted by
applicable law, any perishable Collateral which threatens to speedily decline in
value or which is sold on a recognized market may be sold immediately by Lender
without prior notice to Credit Parties.  At any sale or disposition of
Collateral, Lender may (to the extent permitted by applicable law) purchase all
or any part thereof free from any right of redemption by any Credit Party which
right is hereby waived and released.  Credit Parties covenant and
agree not to, and not to permit or cause any of their Subsidiaries to, interfere
with or impose any obstacle to Lender’s exercise of its rights and remedies with
respect to the Collateral.  Lender, in dealing with or disposing of
the Collateral or any part thereof, shall not be required to give priority or
preference to any item of Collateral or otherwise to marshal assets or to take
possession or sell any Collateral with judicial process.

       

      
        
           

        

        
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                11.2

              	
                Application
      of Proceeds

              

      

       

      In addition to any other rights,
options and remedies Lender has under the Loan Documents, the UCC, at law or in
equity, all dividends, interest, rents, issues, profits, fees, revenues, income
and other proceeds collected or received from collecting, holding, managing,
renting, selling, or otherwise disposing of all or any part of the Collateral or
any proceeds thereof upon exercise of its remedies hereunder shall be applied in
the following order of priority:  (i) first, to the payment
of all costs and expenses of such collection, storage, lease, holding,
operation, management, sale, disposition or delivery and of conducting Credit
Parties’ business and of maintenance, repairs, replacements, alterations,
additions and improvements of or to the Collateral, and to the payment of all
sums which Lender may be required or may elect to pay, if any, for taxes,
assessments, insurance and other charges upon the Collateral or any part
thereof, and all other payments that Lender may be required or authorized to
make under any provision of this Agreement (including, without limitation, in
each such case, in-house documentation and diligence fees and legal expenses,
search, audit, recording, professional and filing fees and expenses and
reasonable attorneys' fees and all expenses, liabilities and advances made or
incurred in connection therewith); (ii) second, to the
payment of all other Obligations in such order or preference as Lender may
determine; and (iii) third, to the payment
of any surplus then remaining to Credit Parties, unless otherwise provided by
law or directed by a court of competent jurisdiction; provided, that, Credit Parties
shall be liable for any deficiency if such proceeds are insufficient to satisfy
the Obligations or any of the other items referred to in this
section.

       

      
        	
                 
      

              	
                11.3

              	
                Rights
      of Lender to Appoint Receiver

              

      

       

      Without limiting and in addition to any
other rights, options and remedies Lender has under the Loan Documents, the UCC,
at law or in equity, upon the occurrence and continuation of an Event of
Default, Lender shall have the right to apply for and have a receiver appointed
by a court of competent jurisdiction in any action taken by Lender to enforce
its rights and remedies in order to manage, protect, preserve, sell or dispose
the Collateral and continue the operation of the business of Credit Parties and
to collect all revenues and profits thereof and apply the same to the payment of
all expenses and other charges of such receivership including the compensation
of the receiver and to the payments as aforesaid until a sale or other
disposition of such Collateral shall be finally made and
consummated.  To the extent not prohibited by applicable law, each
Credit Party hereby irrevocably consents to and waives any right to object to or
otherwise contest the appointment of a receiver as provided
above.  Each Credit Party (i) grants such waiver and consent knowingly
after having discussed the implications thereof with counsel, (ii) acknowledges
that (A) the uncontested right to have a receiver appointed for the foregoing
purposes is considered essential by Lender in connection with the enforcement of
its rights and remedies hereunder and under the other Loan Documents and (B) the
availability of such appointment as a remedy under the foregoing circumstances
was a material factor in inducing Lender to make the Loans to such Credit Party
and (iii) to the extent not prohibited by applicable law, agrees to enter into
any and all stipulations in any legal actions, or agreements or other
instruments required or reasonably appropriate in connection with the foregoing,
and to cooperate fully with Lender in connection with the assumption and
exercise of control by any receiver over all or any portion of the
Collateral.

       

      
        	
                 
      

              	
                11.4

              	
                Rights
      and Remedies not Exclusive

              

      

       

      Lender shall have the right in its sole
discretion to determine which rights, Liens and remedies Lender may at any time
pursue, relinquish, subordinate or modify, and such determination will not in
any way modify or affect any of Lender’s rights, Liens or remedies under any
Loan Document, applicable law or equity.  The enumeration of any
rights and remedies in any Loan Document is not intended to be exhaustive, and
all rights and remedies of Lender described in any Loan Document are cumulative
and are not alternative to or exclusive of any other rights or remedies which
Lender otherwise may have.  The partial or complete exercise of any
right or remedy shall not preclude any other further exercise of such or any
other right or remedy.

       

      
        
           

        

        
          50

          
            

          

        

        
           

        

      

      
      

      
        	
                 
      

              	
                11.5

              	
                Standards
      for Exercising Remedies

              

      

       

      To the
extent that applicable law imposes duties on Lender to exercise remedies in a
commercially reasonably manner, Credit Parties hereby acknowledge and agree that
it is not commercially unreasonable for Lender (a) to fail to incur expenses
reasonably deemed significant by Lender to prepare Collateral for disposition or
otherwise to complete raw material or work in process into finished goods or
other finished products for disposition, (b) to fail to obtain third-party
consents for access to Collateral to be disposed of, or to obtain or, if not
required by other law, to fail to obtain governmental or third party consents
for the collection or disposition of Collateral to be collected or disposed of,
(c) to fail to exercise collection remedies against account debtors or other
persons obligated on Collateral or to remove Liens against Collateral, (d) to
exercise collection remedies against account debtors and other persons obligated
on Collateral directly or through the use of collection agencies and other
collection specialists, (e) to advertise dispositions of Collateral through
publications or media of general circulation, whether or not the Collateral is
of a specialized nature, (f) to contact other persons, whether or not in the
same business as Credit Parties, for expressions of interest in acquiring all or
any portion of the Collateral, (g) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the Collateral is of
a specialized nature, (h) to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral
or that have the reasonable capability of doing so, or that match buyers and
sellers of assets, (i) to dispose of assets in wholesale rather than retail
markets, (j) to disclaim disposition warranties, (k) to purchase insurance or
credit enhancements to insure Lender against risks of loss, collection or
disposition of Collateral or to provide to Lender a guaranteed return from the
collection or disposition of Collateral or (l) to the extent deemed appropriate
by Lender, to obtain the services of brokers, investment bankers, consultants or
other professionals to assist Lender in the collection or disposition of any of
the Collateral.  Credit Parties further acknowledge that the purpose
of this Section
11.5 is to provide non-exhaustive indications of what acts or omissions
by Lender would not be commercially unreasonable in Lender’s exercise of
remedies against the Collateral and that other acts or omissions by Lender shall
not be deemed commercially unreasonable solely on account of not being indicated
in this Section
11.5.  Without limitation upon the foregoing, nothing contained
in this Section
11.5 shall be construed to grant any rights to Credit Parties or to
impose any duties upon Lender that would not have been granted or imposed by
this Agreement or by applicable law in the absence of this Section
11.5.

       

      
        	
                XII.

              	
                WAIVERS
      AND JUDICIAL PROCEEDINGS

              

      

       

      
        	
                 
      

              	
                12.1

              	
                Waivers

              

      

       

      Except as
expressly provided for herein, Credit Parties hereby waive setoff, counterclaim,
demand, presentment, protest, all defenses with respect to any and all
instruments and all notices and demands of any description, and the pleading of
any statute of limitations as a defense to any demand under any Loan
Document.  Credit Parties hereby waive any and all defenses and
counterclaims they may have or could interpose in any action or procedure
brought by Lender to obtain an order of court recognizing the assignment of, or
Lien of Lender in and to, any Collateral, whether or not payable by a
Medicaid/Medicare Account Debtor.   With respect to any action
hereunder, Lender conclusively may rely upon, and shall incur no
liability to Credit Parties in acting upon, any request or other communication
that Lender reasonably believes to have been given or made by a person
authorized on Credit Parties’ behalf, whether or not such person is listed on
the incumbency certificate delivered pursuant to Section 6.1
hereof.  In each such case, Credit Parties hereby waive the right to
dispute Lender's action based upon such request or other communication, absent
manifest error.  Without limiting the generality of the foregoing,
Borrower expressly waives all rights, benefits and defenses, if any, applicable
or available to Borrower under either California Code of Civil Procedure
Sections 580a or 726, which provide, among other things, that the amount of any
deficiency judgment which may be recovered following either a judicial or
nonjudicial foreclosure sale is limited to the difference between the amount of
any indebtedness owed and the greater of the fair value of the security or the
amount for which the security was actually sold.  Without limiting the
generality of the foregoing, Borrower further expressly waives all rights,
benefits and defenses, if any, applicable or available to Borrower under either
California Code of Civil Procedure Sections 580b, providing, generally, that no
deficiency may be recovered on a real property purchase money obligation, or
580d, providing, generally, that no deficiency may be recovered on a note
secured by a deed of trust on real property if the real property is sold under a
power of sale contained in the deed of trust.

       

      
        
           

        

        
          51

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                12.2

              	
                Delay;
      No Waiver of Defaults

              

      

       

      No course of action or dealing,
renewal, release or extension of any provision of any Loan Document, or single
or partial exercise of any such provision, or delay, failure or omission on
Lender’s part in enforcing any such provision shall affect the liability of any
Credit Party or operate as a waiver of such provision or affect the liability of
any Credit Party or preclude any other or further exercise of such
provision.  No waiver by any party to any Loan Document of any one or
more defaults by any other party in the performance of any of the provisions of
any Loan Document shall operate or be construed as a waiver of any future
default, whether of a like or different nature, and each such waiver shall be
limited solely to the express terms and provisions of such
waiver.  Notwithstanding any other provision of any Loan Document, by
completing the Closing under this Agreement and/or by making Advances, Lender
does not waive any breach of any representation or warranty under any Loan
Document, and all of Lender’s claims and rights resulting from any such breach
or misrepresentation are specifically reserved.

       

      
        	
                 
      

              	
                12.3

              	
                Jury
      Waiver

              

      

       

      EACH PARTY TO THIS AGREEMENT HEREBY
KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION ARISING UNDER THE LOAN DOCUMENTS OR IN ANY WAY CONNECTED WITH OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES WITH RESPECT TO THE LOAN DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED THEREBY, WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  EACH
PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENTS OF THE PARTIES TO THE WAIVER OF THEIR RESPECTIVE RIGHTS
TO TRIAL BY JURY.

       

      
        	
                 
      

              	
                12.4

              	
                Cooperation
      in Discovery and Litigation

              

      

       

      In any litigation, arbitration or other
dispute resolution proceeding relating to any Loan Document, Borrower waives any
and all defenses, objections and counterclaims it may have or could interpose
with respect to (i) any of its directors, officers, employees or agents being
deemed to be employees or managing agents of Borrower for purposes of all
applicable law or court rules regarding the production of witnesses by notice
for testimony (whether in a deposition, at trial or otherwise), (ii) Lender’s
counsel examining any such individuals as if under cross-examination and using
any discovery deposition of any of them as if it were an evidence deposition,
and (iii) using commercially reasonable efforts to produce in any such dispute
resolution proceeding,  all Persons, documents (whether in tangible,
electronic or other form) and other things under its control that properly
relate to any matters in dispute.  Notwithstanding the foregoing,
Credit Parties (A) do not waive any rights of any directors, officers, employees
or agents that such Persons may have individually, (B) do not agree that any
alternative dispute resolution procedures other than a court trial will be
automatically applicable to the situation at hand in the event of a dispute and
will only agree to such alternative dispute resolution procedures at such time
after the facts and circumstances are known, and (C) with respect to item (iii)
do not agree to engage in any electronic discovery procedures unless agreed to
at such time in the future and at the expense of someone other than the
Borrower.

       

      
        
           

        

        
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                XIII.

              	
                EFFECTIVE
      DATE AND TERMINATION

              

      

       

      
        	
                 
      

              	
                13.1

              	
                Termination
      and Effective Date Thereof

              

      

       

      (a)           Subject to Lender’s right to
cease making Advances pursuant to Section 2.1 or upon or after any Event of
Default, this Agreement shall continue in full force and effect until the
Obligations are Paid in Full, unless terminated sooner as provided in this
Section 13.1(a).  Borrower may terminate this Agreement at any
time upon not less than thirty calendar days’ prior written notice to Lender and
upon full performance and indefeasible Payment in Full of all Obligations after
Receipt by Lender of such written notice.  All of the Obligations
shall be immediately due and payable upon any termination by Borrower pursuant
to this Section 13.1(a) on the Termination Date which shall be the first
Business Day after the thirty (30) day notice period has elapsed, on which the
Obligations have fully performed and indefeasibly Paid in Full.  Upon such full performance
and Payment in full of the Obligations Lender shall not unreasonably delay the
filing of a release of its liens.  Notwithstanding any other
provision of any Loan Document, no termination of this Agreement shall affect
Lender’s rights or any of the Obligations existing as of the effective date of
such termination, and the provisions of the Loan Documents shall continue to be
fully operative until the Obligations have been fully performed and Paid in Full.  The Liens
granted to Lender under the Loan Documents and the financing statements filed
pursuant thereto and the rights and powers of Lender shall continue in full
force and effect notwithstanding the fact that Borrower’s borrowings hereunder
may from time to time be in a zero or credit position until all of the
Obligations have been fully performed and indefeasibly Paid in Full.

       

      (b)           Upon the occurrence of a
Revolver Termination, Credit Parties shall immediately pay Lender (in addition
to the then outstanding principal, accrued interest and other Obligations
relating to the Revolving Facility pursuant to the terms of this Agreement and
any other Loan Document), as yield maintenance for the loss of bargain and not
as a penalty, an amount equal to the applicable Minimum Termination
Fee.

       

      
        	
                 
      

              	
                13.2

              	
                Survival

              

      

       

      All obligations, covenants, agreements,
representations, warranties, waivers and indemnities made by Credit Parties in
any Loan Document shall survive the execution and delivery of the Loan
Documents, the Closing, the making of the Advances and any termination of this
Agreement until all Obligations are fully performed and indefeasibly paid in
full in cash.  The obligations and provisions of Sections 3.6, 12.1, 12.3,
12.4, 13.1, 13.2, 15.4, 15.7 and 15.10 shall survive termination of the
Loan Documents and any payment, in full or in part, of the
Obligations.

       

      
        	
                XIV.

              	
                GUARANTY

              

      

       

      
        	
              	
                14.1

              	
                Guaranty

              

      

       

      Guarantor hereby unconditionally and
irrevocably guarantees the punctual payment when due, whether at stated
maturity, by acceleration or otherwise, of all Obligations of each Credit Party,
including, without limitation, Credit Parties, now or hereafter existing under
any Loan Document, whether for principal, interest (including, without
limitation, all interest that accrues after the commencement of any proceeding
of Borrower or any other Credit Party under any Debtor Relief Laws), fees,
commissions, expense reimbursements, indemnifications or otherwise (such
obligations, to the extent not paid by Borrower, the “Guaranteed Obligations”), and
agrees to pay any and all costs, fees and expenses (including reasonable counsel
fees and expenses) incurred by Lender in enforcing any rights under the guaranty
set forth in this Article XIV.  Without
limiting the generality of the foregoing, Guarantor’s liability shall extend to
all amounts that constitute part of the Guaranteed Obligations and would be owed
by Borrower or any other Credit Party to Lender under any Loan Document, but for
the fact that they are unenforceable or not allowable due to the existence of
any proceeding under any Debtor Relief Laws involving Borrower or any other
Credit Party.

       

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

      
      

      
        	
              	
                14.2

              	
                Guaranty
      Absolute

              

      

       

      Guarantor guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Loan Documents, regardless of any law regulation or order now or hereafter in
effect in any jurisdiction affecting any such terms or the rights of Lender with
respect thereto.  The obligations of Guarantor under this Article XIV are
independent of the Guaranteed Obligations, and a separate action or actions may
be brought and prosecuted against any other guarantor to enforce such
obligations, irrespective of whether any action is brought against any Credit
Party or whether any Credit Party is joined in any such action or
actions.  The liability of Guarantor under this Article XIV
shall be irrevocable, absolute and unconditional irrespective of, and, in
consideration of the direct and indirect benefits from the financing
arrangements contemplated herein enjoyed by such Guarantor. Guarantor hereby
irrevocably waives any defenses it may now or hereafter have in any way relating
to, any or all of the following: (a) any lack of validity or enforceability of
any Loan Document or any agreement or instrument relating thereto; (b) any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Guaranteed Obligations, or any other amendment or waiver of or any
consent to departure from any Loan Document, including, without limitation, any
increase in the Guaranteed Obligations resulting from the extension of
additional credit to any Credit Party or otherwise; (c) any taking, exchange,
release or non-perfection of any Collateral, or any taking, release or amendment
or waiver of or consent to departure from any other guaranty, for all or any of
the Guaranteed Obligations; (d) any change, restructuring or termination of the
corporate, limited liability company or partnership structure or existence of
any Credit Party; (e) promptness, diligence, notice of acceptance and any other
notice with respect to any of the Guaranteed Obligations and this Article XIV and
any requirement that Lender exhaust any right or take any action against any
other Credit Party or any other Person or any Collateral; or (f) any other
circumstance (including, without limitation, any statute of limitations) or any
existence of or reliance on any representation by Lender that might otherwise
constitute a defense available to, or a discharge of, any Credit Party or any
other guarantor or surety, other than the defense of payment.

       

      This Article XIV is a
continuing guaranty and shall (a) remain in full force and effect until the
indefeasible cash payment in full of the Guaranteed Obligations and all other
amounts payable under this Article XIV and
irrevocable termination of the Loan Agreement in accordance with its terms, (b)
be binding upon Guarantor, its successors and assigns and (c) inure to the
benefit of, and be enforceable by, Lender and its successors, assigns, pledgees,
transferees.  This Article XIV
shall continue to be effective or be reinstated, as the case may be, if at any
time any payment of any of the Guaranteed Obligations is rescinded or must
otherwise be returned to Lender or any other Person upon the insolvency,
bankruptcy or reorganization of Borrower or any other Credit Party or otherwise,
all as though such payment had not been made.  Guarantor hereby waives
any right to revoke this Article XIV, and
acknowledges that this Article XIV is
continuing in nature and applies to all Guaranteed Obligations, whether existing
now or in the future.

       

      
        
           

        

        
          54

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                14.3

              	
                Subrogation

              

      

       

      Guarantor will not exercise any rights
that it may now or hereafter acquire against any other Credit Party or any other
guarantor or that arise from the existence, payment, performance or enforcement
of its respective obligations under this Article XIV,
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in any
claim or remedy of Lender against any other Credit Party or any other guarantor
or any Collateral, whether or not such claim, remedy or right arises in equity
or under contract, statute or common law including, without limitation, the
right to take or receive from any other Credit Party or any other guarantor,
directly or indirectly, in cash or other property or by set-off or in any other
manner, payment or security solely on account of such claim, remedy or right,
unless and until all of the Guaranteed Obligations and all other amounts payable
under this Article XIV
shall have been indefeasibly paid in full in cash and all commitments to lend
hereunder shall have terminated.  Guarantor agrees that any payment of
any Indebtedness of Borrower now or hereafter held by such Guarantor is hereby
subordinated in right of payment to the irrevocable and indefeasible payment in
full in cash of the Guaranteed Obligations unless otherwise agreed to in writing
by Lender or provided for in this agreement. If any amount shall be
paid to a Guarantor in violation of the immediately preceding sentences, such
amount shall be held in trust for the benefit of Lender and shall forthwith be
paid to Lender to be credited and applied to the Guaranteed Obligations and all
other amounts payable under this Article XIV,
whether matured or unmatured, in accordance with the terms of this Agreement, or
to be held as Collateral for any Guaranteed Obligations or other amounts payable
under this Article XIV
thereafter arising.  If (i) a Guarantor shall make payment to Lender
of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed
Obligations and all other amounts payable under this Article XIV
shall be indefeasibly paid in full in cash and (iii) Lender’s commitment to lend
hereunder shall have been terminated, Lender will, at such Guarantor’s request
and expense, execute and deliver to such Guarantor appropriate documents,
without recourse and without representation or warranty, necessary to evidence
the transfer by subrogation to such Guarantor of an interest in the Guaranteed
Obligations resulting from such payment by such Guarantor

       

      
        	
                XV.

              	
                MISCELLANEOUS

              

      

       

      
        	
                 
      

              	
                15.1

              	
                Governing
      Law; Jurisdiction; Service of Process;
Venue

              

      

       

      The Loan Documents shall be governed by
and construed in accordance with the internal laws of the State of Maryland
without giving effect to its choice of law provisions.  Any judicial
proceeding against Credit Parties with respect to the Obligations, any Loan
Document or any related agreement may be brought in any federal or state court
of competent jurisdiction located in the State of Maryland.  By
execution and delivery of each Loan Document to which it is a party, each Credit
Party (i) accepts the non-exclusive jurisdiction of the aforesaid courts and
irrevocably agrees to be bound by any judgment rendered thereby, (ii) waives
personal service of process, (iii) agrees that service of process upon it may be
made by certified or registered mail, return receipt requested, pursuant to
Section 15.5
hereof, (iv) waives any objection to personal jurisdiction and venue of any
action instituted hereunder and agrees not to assert any defense based on lack
of jurisdiction, venue or convenience, and (v) agrees that this loan was made in
Maryland, that Lender has accepted in Maryland Loan Documents executed by such
Credit Party and has disbursed Advances under the Loan Documents in
Maryland.  Nothing shall affect the right of Lender to serve process
in any manner permitted by law or shall limit the right of Lender to bring
proceedings against such Credit Party in the courts of any other jurisdiction
having jurisdiction, including any jurisdiction in which Collateral is located
for purposes of exercising rights and remedies with respect to such
Collateral.  Any judicial proceedings against Lender involving,
directly or indirectly, the Obligations, any Loan Document or any related
agreement shall be brought only in a federal or state court located in the State
of Maryland.  All parties acknowledge that they participated in the
negotiation and drafting of this Agreement, that the parties were represented by
counsel of their choice in connection with the negotiation and drafting of this
Agreement, that the parties to this Agreement are sophisticated parties entering
into a commercial transaction, and that, accordingly, no party shall move or
petition a court construing this Agreement to construe it more stringently
against one party than against any other.

       

      
        
           

        

        
          55

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                15.2

              	
                Successors
      and Assigns; Participations; New
Lenders

              

      

       

      The Loan Documents shall inure to the
benefit of Lender, Transferees and all future holders of the Loan, any Note, the
Obligations and/or any of the Collateral, and each of their respective
successors and assigns.  Each Loan Document shall be binding upon the
Persons’ other than Lender that are parties thereto and their respective
successors and assigns, and no such Person may assign, delegate or transfer any
Loan Document or any of its rights or obligations thereunder without the prior
written consent of Lender.  No rights are intended to be created under
any Loan Document for the benefit of any third party donee, creditor or
incidental beneficiary of any Credit Party.  Nothing contained in any
Loan Document shall be construed as a delegation to Lender of any other Person’s
duty of performance.  CREDIT PARTIES ACKNOWLEDGE AND AGREE THAT LENDER
AT ANY TIME AND FROM TIME TO TIME MAY (I) DIVIDE AND RESTATE ANY NOTE, AND/OR
(II) SELL, ASSIGN OR GRANT PARTICIPATING INTERESTS IN OR TRANSFER ALL OR ANY
PART OF ITS RIGHTS OR OBLIGATIONS UNDER ANY LOAN DOCUMENT, LOANS, ANY NOTE, THE
OBLIGATIONS AND/OR THE COLLATERAL TO OTHER PERSONS (EACH SUCH TRANSFEREE,
ASSIGNEE OR PURCHASER, A “TRANSFEREE”).  Each
Transferee shall have all of the rights and benefits with respect to the Loans,
Obligations, any Notes, Collateral and/or Loan Documents held by it as fully as
if the original holder thereof, and either Lender or any Transferee may be
designated as the sole agent to manage the transactions and obligations
contemplated therein.  Notwithstanding any other provision of any Loan
Document, Lender may disclose to any Transferee all information, reports,
financial statements, certificates and documents obtained under any provision of
any Loan Document.  In the event of any transfer of any portion of
Lender’s right and interest in the Obligations of this Agreement, Lender agrees
to so notify the Borrower of such transfer and include such transferee’s name
and contact information, except if such transfer is to an Affiliate of Lender or
any of Lender’s financing sources.

       

      
        	
                 
      

              	
                15.3

              	
                Application
      of Payments

              

      

       

      To the
extent that any payment made or received with respect to the Obligations is
subsequently invalidated, determined to be fraudulent or preferential, set aside
or required to be repaid to a trustee, debtor in possession, receiver, custodian
or any other Person under any Debtor Relief Law, common law or equitable cause
or any other law, then the Obligations intended to be satisfied by such payment
shall be revived and shall continue as if such payment had not been received by
Lender.  Any payments with respect to the Obligations received shall
be credited and applied in such manner and order as Lender shall decide in its
sole discretion.

       

      
        	
                 
      

              	
                15.4

              	
                Indemnity

              

      

       

      Each Credit Party jointly and
severally shall indemnify Lender, its Affiliates and its and their respective
managers, members, officers, employees, Affiliates, agents, representatives,
successors, assigns, accountants and attorneys (collectively, the “Indemnified
Persons”) from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses and disbursements of any kind or
nature whatsoever (including, without limitation, reasonable fees and
disbursements of counsel, allocable costs of in-house counsel, and in-house
diligence fees and expenses, subject to the provisions
governing payment of in-house counsel and outside counsel fees set forth in
Section 15.7(b))
which may be imposed on, incurred by or asserted against any Indemnified Person
with respect to or arising out of, or in any litigation, proceeding or
investigation instituted or conducted by any Person with respect to any aspect
of, or any transaction contemplated by or referred to in, or any matter related
to, any Loan Document or any agreement, document or transaction contemplated
thereby, whether or not such Indemnified Person is a party thereto, except to
the extent that any of the foregoing results directly from the gross negligence
or willful misconduct of such Indemnified Person as determined by a final
non-appealable judgment entered by a court of competent jurisdiction, in which case, any
previously made reimbursements made pursuant to this indemnification clause for
claims which were due to such gross negligence or willful misconduct shall be
immediately recoverable from such Indemnified Person.  If any
Indemnified Person uses in-house counsel for any purpose for which any Credit
Party is responsible to pay or indemnify, each Credit Party expressly agrees
that its indemnification obligations include reasonable charges for the costs
allocable for such work of such in-house counsel, subject to the provisions
governing payment of in-house counsel and outside counsel fees set forth in
Section 15.7(b).  Lender agrees to
give Credit Parties reasonable notice of any event of which Lender becomes aware
for which indemnification may be required under this Section 15.4, and Lender
may elect (but is not obligated) to direct the defense thereof, provided that
the selection of counsel shall be subject to Credit Parties’ consent, which
consent shall not be unreasonably withheld or delayed.  Any
Indemnified Person may, in its reasonable discretion, take such actions as it
deems necessary and appropriate to investigate or defend any event or take
other remedial or corrective actions with respect thereto as may be necessary
for the protection of such Indemnified Person or the Collateral.  Notwithstanding the
foregoing, if any insurer agrees to undertake the defense of an event (an
“Insured
Event”), Lender
agrees not to exercise its right to select counsel to defend the event if that
would cause any Credit Party’s insurer to deny coverage; provided, however, that
Lender reserves the right to retain counsel to represent any Indemnified Person
with respect to an Insured Event at its sole cost and expense.  To the
extent that Lender obtains recovery from a third party other than an Indemnified
Person of any of the amounts that any Credit Party has paid to Lender pursuant
to the indemnity set forth in this Section 15.4, then Lender shall promptly pay
to such Credit Party the amount of such recovery.

       

      
        
           

        

        
          56

          
            

          

        

        
           

        

      

       

      
        	
              	
                15.5

              	
                Notice  

              

      

       

      Any
notice or request under any Loan Document shall be given to any party to this
Agreement at such party’s address set forth beneath its signature on the
signature page to this Agreement, or at such other address as such party may
hereafter specify in a notice given in the manner required under this Section
15.5.  Any notice or request hereunder shall be given only by,
and shall be deemed to have been received upon (each, a “Receipt”):  (i) registered
or certified mail, return receipt requested, on the date on which received as
indicated in such return receipt, (ii) delivery by a nationally recognized
overnight courier, one Business Day after deposit with such courier, or (iii)
facsimile transmission upon sender’s receipt of confirmation of proper
transmission, as applicable.

       

      
        	
                 
      

              	
                15.6

              	
                Severability;
      Captions; Counterparts; Facsimile
Signatures

              

      

       

      If any provision of any Loan Document
is adjudicated to be invalid under applicable laws or regulations, such
provision shall be inapplicable to the extent of such invalidity without
affecting the validity or enforceability of the remainder of the Loan Documents
which shall be given effect so far as possible.  The captions in the
Loan Documents are intended for convenience and reference only and shall not
affect the meaning or interpretation of the Loan Documents.  The Loan
Documents may be executed in one or more counterparts (which taken together, as
applicable, shall constitute one and the same instrument) and by facsimile
transmission, which facsimile signatures shall be considered original executed
counterparts.  Each party to this Agreement agrees that it will be
bound by its own facsimile signature and that it accepts the facsimile signature
of each other party.

       

      
        	
                 
      

              	
                15.7

              	
                Expenses

              

      

       

      (a)           Credit
Parties shall pay, whether or not the Closing occurs, all costs and expenses
incurred by Lender and/or its Affiliates, including, without limitation,
documentation and diligence fees and expenses, all search, audit, appraisal,
recording, professional and filing fees and expenses and all other out-of-pocket
charges and expenses (including, without limitation, UCC and judgment and tax
lien searches and UCC filings and fees for post-Closing UCC and judgment and tax
lien searches and wire transfer fees and audit expenses), and reasonable
attorneys’ fees and expenses, (i) in any effort to enforce, protect or collect
payment of any Obligation or to enforce any Loan Document or any related
agreement, document or instrument, (ii) in connection with entering into,
negotiating, preparing, reviewing and executing the Loan Documents and/or any
related agreements, documents or instruments, (iii) arising in any way out of
administration of the Obligations, (iv) in connection with instituting,
maintaining, preserving, enforcing and/or foreclosing on Lender’s Liens in any
of the Collateral or securities pledged under the Loan Documents, whether
through judicial proceedings or otherwise, (v) in defending or prosecuting any
actions, claims or proceedings arising out of or relating to Lender’s
transactions with Credit Parties, (vi) in seeking, obtaining or receiving any
advice with respect to its rights and obligations under any Loan Document and
any related agreement, document or instrument, and/or (vii) in connection with
any modification, restatement, supplement, amendment, waiver or extension of any
Loan Document and/or any related agreement, document or
instrument.  All of the foregoing shall be charged to Credit Parties’
account and shall be part of the Obligations, and each such amount so charged
shall be deemed an Advance under the Revolving Facility and added to the
Obligations, regardless of whether a Revolver Termination has
occurred.  Lender acknowledges that it has agreed to a cap of $15,000
solely with respect to fees and expenses associated with the business due
diligence of originating and closing this Agreement which has been paid as a
deposit to Lender.  Lender agrees that, upon written request of
Borrower, it will provide a summary description of any legal matters which were
charged to the account of the Borrower.

       

      
        
           

        

        
          57

          
            

          

        

        
           

        

      

       

      (b)           If
Lender or any of its Affiliates uses in-house counsel for any purpose under any
Loan Document for which Credit Parties are responsible to pay or indemnify,
Credit Parties expressly agree that their Obligations include reasonable charges
for such work commensurate with the allocable costs of such in-house
counsel.  Notwithstanding anything to the contrary contained in this
Agreement, so long as no Default or Event of Default has occurred and is
continuing, Borrower shall not be required to pay or indemnify Lender for the
allocable cost of the work of staff counsel if Lender has engaged outside
counsel for the same work.

       

      
        	
                 
      

              	
                15.8

              	
                Entire
      Agreement

              

      

       

      This
Agreement and the other Loan Documents to which Credit Parties are a party
constitute the entire agreement between Credit Parties and Lender with respect
to the subject matter hereof and thereof, and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof or
thereof.  Any promises, representations, warranties or guarantees not
herein contained and hereinafter made shall have no force and effect unless in
writing signed by Credit Parties and Lender.  No provision of this
Agreement may be changed, modified, amended, restated, waived, supplemented,
discharged, canceled or terminated orally or by any course of dealing or in any
other manner other than by an agreement in writing signed by Lender and Credit
Parties.  Each party hereto acknowledges that it has been advised by
counsel in connection with the negotiation and execution of this Agreement and
is not relying upon oral representations or statements inconsistent with the
terms and provisions hereof.

       

      
        	
                 
      

              	
                15.9

              	
                Lender
      Approvals

              

      

       

      Unless expressly provided herein to the
contrary, any approval, consent, waiver or satisfaction of Lender with respect
to any matter that is subject of any Loan Document may be granted or withheld by
Lender in its sole and absolute discretion.

       

      
        	
              	
                15.10

              	
                Confidentiality
      and Publicity

              

      

       

      (a)           Lender
understands and acknowledges that this Agreement is a material obligation of the
Credit Parties, and as such, must be filed with the Securities and Exchange
Commission (“SEC”) and
through such action will become publicly available.  Credit Parties
agree to submit to Lender and Lender reserves the right to review and approve
all materials that Credit Parties or any of their Affiliates prepares that
contain Lender’s name or describe or refer to any Loan Document, any of the
terms thereof or any of the transactions contemplated
thereby.  Notwithstanding the foregoing, Lender acknowledges and
agrees that that a description of the principle terms of this Agreement will be
required to be stated in the Guarantor’s quarterly and annual reports filed with
the SEC, and Guarantor and its counsel shall have the final authority in any
wording so disclosed; provided, however, that Guarantor will attempt to clear
such language with the Lender prior to any filing.  Lender further
acknowledges and agrees that once such language in any SEC filings has been
finalized, it can continue to appear in subsequent SEC filings without any
further review by Lender.  Credit Parties shall not, and shall not
permit any of their Affiliates to, use Lender’s name (or the name of any of
Lender’s Affiliates) in connection with any of its business operations,
including without limitation, advertising, marketing or press releases or such
other similar purposes, without Lender’s prior written
consent.  Lender similarly agrees that it shall not, and shall not
permit any of its Affiliates to, use Credit Parties names or logos (or the names
of any Credit Parties’ Affiliates) in any advertising, marketing or press
releases or such similar purposes, without Credit Parties prior written
consent.  Nothing contained in any Loan Document is intended to permit
or authorize Credit Parties or any of their Affiliates to contract on behalf of
Lender.

       

      
        
           

        

        
          58

          
            

          

        

        
           

        

      

      (b)           Credit
Parties hereby agree that Lender or any Affiliate of Lender may disclose any and
all information concerning the Loan Documents, as well as any information
regarding Credit Party and its operations, received by Lender in connection with
the Loan Documents to its lenders or funding or financing sources.

       

      
        	
              	
                15.11

              	
                Release
      of Lender

              

      

       

      Notwithstanding any other provision of
any Loan Document, each Credit Party voluntarily, knowingly, unconditionally and
irrevocably, with specific and express intent, for and on behalf of
itself,  its managers, members, directors, officers, employees,
stockholders, Affiliates, agents, representatives, accountants, attorneys,
successors and assigns and their respective Affiliates (collectively, the “Releasing Parties”), hereby
fully and completely releases and forever discharges the Indemnified Parties and
any other Person or Insurer which may be responsible or liable for the acts or
omissions of any of the Indemnified Parties, or who may be liable for the injury
or damage resulting therefrom (collectively, with the Indemnified Parties, the
“Released Parties”), of
and from any and all actions, causes of action, damages, claims, obligations,
liabilities, costs, expenses and demands of any kind whatsoever, at law or in
equity, matured or unmatured, vested or contingent, that any of the Releasing
Parties has against any of the Released Parties as of the date of the
Closing.  Each Credit Party acknowledges that the foregoing release is
a material inducement to Lender’s decision to extend to such Credit Party the
financial accommodations hereunder and has been relied upon by Lender in
agreeing to make the Loans.

       

      
        	
              	
                15.12

              	
                Agent

              

      

       

      Lender
and its successors and assigns hereby (i) designate and appoint CapitalSource
Finance LLC, a Delaware limited liability company, and its successors and
assigns ("CapitalSource"), to act as
agent for Lender and its successors and assigns under this Agreement and all
other Loan Documents, (ii) irrevocably authorize CapitalSource to take all
actions on its behalf under the provision of this Loan Agreement and all other
Loan Documents, and (iii) to exercise all such powers and rights, and to perform
all such duties and obligations hereunder and thereunder.  CapitalSource,
on behalf of Lender, shall hold all Collateral, payments of principal and
interest, fees, charges and collections received pursuant to this Agreement and
all other Loan Documents.  Each Credit Party acknowledges that Lender and
its successors and assigns transfer and assign to CapitalSource the right to act
as Lender's agent to enforce all rights and perform all obligations of Lender
contained herein and in all of the other Loan Documents.  Credit Parties
shall within ten Business Days after Lender's reasonable request, take such
further actions, obtain such consents and approvals and duly execute and deliver
such further agreements, amendments, assignments, instructions or documents as
Lender may request to evidence the appointment and designation of CapitalSource
as agent for Lender and other financial institutions from time to time party
hereto and to the other Loan Documents.

       

      
        
          	
                	
                  15.13

                	
                  Reserved  

                

        

      

       

      
        
           

        

        
          59

          
            

          

        

        
           

        

      

          

        	
              	
                15.14

              	
                Agreement
      Controls

              

      

       

      In the event of any inconsistency
between this Agreement and any other Loan Documents, the terms of this Agreement
shall control.

       

      [SIGNATURES
APPEAR ON THE FOLLOWING PAGE]

       

      
        
           

        

        
          60

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, each of the parties
has duly executed this Revolving Credit and Security Agreement as of the date
first written above.

      

      
        
          
            
              
                
                  
                    	
                            BORROWER:

                          
	 
      
	
                            NEOGENOMICS, INC., a
      Florida corporation

                          
	 
      	 
      
	
                            By:

                          	
                            /s/Steven C. Jones

                          
	
                            Name:

                          	
                            Steven C. Jones

                          
	
                            Its:

                          	
                            Chief Financial Officer

                          
	 
      	 
      
	
                            GUARANTOR:

                          
	 
      
	
                            NEOGENOMICS, INC., a
      Nevada corporation

                          
	 
      	 
      
	
                            By:

                          	
                            /s/Steven C. Jones

                          
	
                            Name:

                          	
                            Steven C. Jones

                          
	
                            Its:

                          	
                            Chief Financial Officer

                          
	 
      	 
      
	
                            NeoGenomics, Inc.

                          
	
                            12701 Commonwealth Drive, Suite
      9

                          
	
                            Fort Myers, Florida
33913

                          
	
                            Attention:

                          	
                            Steven C. Jones

                          
	
                            Telephone:  

                          	
                            (239) 768-0600

                          
	
                            Facsimile:

                          	
                            (239) 768-1672

                          
	
                            E-Mail:

                          	 
        
	 
      	 
      
	
                            CAPITALSOURCE
      FINANCE LLC

                          
	 
      	 
      
	
                            By:

                          	
                            /s/David Martin

                          
	
                            Name:

                          	
                            David Martin

                          
	
                            Its:

                          	
                            General Counsel Commercial
      Lending

                          
	
                            CapitalSource
      Finance LLC

                          
	
                            4445
      Willard Avenue, 12th
      Floor

                          
	
                            Chevy
      Chase, MD  20815

                          
	
                            Attention:  Healthcare
      Finance Group, Portfolio Manager

                          
	
                            Telephone:  (301)
      841-2700

                          
	
                            Facsimile:  (301)
      841-2340

                          
	
                            E-Mail:

                          	
                             
      

                          

                  

                

              

            

          

        

      

       

      
        
           

        

        
          61

          
            

          

        

        
           

        

      

       

      EXHIBITS

       

      
        
          
            	
                    Exhibit
      A

                  	
                    Form
      of Borrowing Certificate

                  
	 
      	 
      
	
                    Exhibit
      B

                  	
                    Form
      of Compliance Certificate

                  
	 
      	 
      
	
                    Exhibit
      C

                  	
                    Form
      of Solvency Certificate

                  
	 
      	 
      
	
                    Exhibit
      D

                  	
                    Form
      of Officer’s
Certificate

                  

          

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      SCHEDULES

       

      
        
          
            
              	
                      Schedule
      2.3

                    	
                      Borrower’s
      Accounts

                    
	 
      	 
      
	
                      Schedule
      5.3A

                    	
                      Proceedings
      or Investigations

                    
	 
      	 
      
	
                      Schedule
      5.3B

                    	
                      Third-Party
      Contracts

                    
	 
      	 
      
	
                      Schedule
      7.11

                    	
                      Intellectual
      Property

                    
	 
      	 
      
	
                      Schedule
      7.15A

                    	
                      Existing
      Indebtedness, Investments, Guarantees and Certain
  Contracts

                    
	 
      	 
      
	
                      Schedule
      7.15B

                    	
                      Indebtedness
      with a Maturity Date During the Term

                    
	 
      	 
      
	
                      Schedule
      7.16

                    	
                      Other
      Agreements

                    
	 
      	 
      
	
                      Schedule
      7.17

                    	
                      Insurance

                    
	 
      	 
      
	
                      Schedule
      7.18A  

                    	
                      Borrower’s
      Names

                    
	 
      	 
      
	
                      Schedule
      7.18B

                    	
                      Places
      of Business and Chief Executive Offices

                    
	 
      	 
      
	
                      Schedule
      7.18B

                    	
                      Borrower’s
      Locations

                    
	 
      	 
      
	
                      Schedule
      7.2

                    	
                      Consents,
      Approvals or Authorizations

                    
	 
      	 
      
	
                      Schedule
      7.3

                    	
                      Capitalization;
      List of Subsidiaries

                    
	 
      	 
      
	
                      Schedule
      7.4A

                    	
                      Leases

                    
	 
      	 
      
	
                      Schedule
      7.4B

                    	
                      Deposit
      Accounts and Investment Accounts

                    
	 
      	 
      
	
                      Schedule
      7.5

                    	
                      Affiliate
      Contracts/Agreements

                    
	 
      	 
      
	
                      Schedule
      7.6

                    	
                      Litigation

                    
	 
      	 
      
	
                      Schedule
      7.8

                    	
                      Tax
      Matters

                    
	 
      	 
      
	
                      Schedule
      8.8

                    	
                      Post-Closing
      Matters

                    
	 
      	 
      
	
                      Schedule
      9.2

                    	
                      Indebtedness

                    
	 
      	 
      
	
                      Schedule
      9.3

                    	
                      Liens

                    

            

          

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      ANNEX
I

       

      FINANCIAL
COVENANTS

       

      
        	
                1.

              	
                Minimum
      Fixed Charge Coverage Ratio (Adjusted EBITDA/Fixed
  Charges)

              

      

       

      For the Test Period ending April 30,
2008, the Fixed Charge Coverage Ratio shall not be less than 0.0 to 1.0; for the
Test Period ending May 31, 2008, the Fixed Charge Coverage Ratio shall not be
less than 0.25 to 1.0; for the Test Period ending June 30, 2008, the Fixed
Charge Coverage Ratio shall not be less than 0.75 to 1.0; and for the Test
Period ending July 31, 2008, and each Test Period ending on the last day of each
calendar month thereafter the Fixed Charge Coverage Ratio shall not be less than
1.25 to 1.0.

       

      
        	
                2.

              	
                Minimum
      Cash Velocity

              

      

       

      For each
calendar month, the collections of Accounts of Borrower collectively shall not
be less than an amount equal to the product of (x) 0.80 multiplied by (y) the
average revenues of Borrower for the immediately preceding three months;
provided that, upon any violation of or failure to comply with this covenant,
Lender shall have the right, in its sole discretion, to consider for all
purposes under the Agreement as though Borrower actually collected Accounts
equal to such minimum required amount.

       

      
        	
                3.

              	
                Minimum
      Liquidity

              

      

       

      As of
Closing and at all times thereafter Minimum Liquidity shall not be less than
$750,000; provided, however, (i) such
Minimum Liquidity amount will be reduced to $500,000 after Borrower has
demonstrated that Borrower has achieved a Fixed Charge Coverage Ratio of 1.0 to
1.0 for any Test Period and (ii) Lender agrees that it shall eliminate testing
of this covenant in the event that Borrower is in compliance with this Agreement
(including all financial covenants set forth herein) for six consecutive
calendar months; provided, further, that, such
consecutive six-month calendar period shall not begin before April 1,
2008.

       

      For
purposes of the covenants set forth in this Annex I, the terms listed below
shall have the following meanings:

      

      “Adjusted EBITDA”
shall mean, for any period, the sum, without duplication, of the following for
Borrower collectively on a consolidated basis:  Net Income, plus, (a) Interest
Expense, (b) taxes on income, whether paid, payable or accrued, (c) depreciation
expense, (d) amortization expense, (e) all other non-cash, recurring charges and
expenses, excluding accruals for cash expenses made in the ordinary course of
business, (f) loss from any sale of assets, other than sales in the ordinary
course of business, (g) non-cash stock option and warrant based compensation
expense  and (h) other extraordinary or non-recurring charges that
would not have otherwise been incurred in ordinary course of business as
determined in accordance to GAAP, including but not limited to, severance
payments up to the amounts permitted in Section 9.6, minus (a) gains from
any sale of assets, other than sales in the ordinary course of business and (b)
other extraordinary or non-recurring gains, in each case determined in
accordance with GAAP.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      “Cash Equivalents”
shall mean, as of any date of determination, (a) securities issued, or directly
and fully guaranteed or insured, by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States is pledged in support thereof) having maturities of not more than six
months from the date of acquisition, (b) U.S. dollar denominated time deposits,
certificates of deposit and bankers’ acceptances of (i) any domestic commercial
bank of recognized standing having capital and surplus in excess of
$500,000,000, or (ii) any bank (or the parent company of such bank) whose
short-term commercial paper rating from Standard & Poor’s Ratings Services
(“S&P”) is at least
A-2 or the equivalent thereof or from Moody’s Investors Service, Inc. (“Moody’s”) is at least P-2 or
the equivalent thereof in each case with maturities of not more than six months
from the date of acquisition (any bank meeting the qualifications specified in
clauses (b)(i) or (ii), an “Approved Bank”),
(c) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clause (a), above, entered into
with any Approved Bank, (d) commercial paper issued by any Approved Bank or by
the parent company of any Approved Bank and commercial paper issued by, or
guaranteed by, any industrial or financial company with a short-term commercial
paper rating of at least A-2 or the equivalent thereof by S&P or at least
P-2 or the equivalent thereof by Moody’s, or guaranteed by any industrial
company with a long term unsecured debt rating of at least A or A2, or the
equivalent of each thereof, from S&P or Moody’s, as the case may be, and in
each case maturing within six months after the date of acquisition and (e)
investments in money market funds substantially all of whose assets are
comprised of securities of the type described in clauses (a) through (d)
above.

       

      “Fixed Charge Coverage
Ratio” shall mean, as of any date of determination, for Borrower
collectively on a consolidated basis, the ratio of (a) Adjusted EBITDA for
the Test Period ended of as of such date, to (b) Fixed Charges for the Test
Period ended as of such date.

       

      “Fixed Charges” shall
mean, for any period, the sum of the following for Borrower collectively on a
consolidated basis for such period: (a) Total Debt Service, (b) un-financed
Capital Expenditures paid in cash, (c) income taxes paid in cash or accrued, and
(d) dividends and Distributions paid or accrued or declared (except for
Accumulated Distributions from previous Accumulated Distribution Fiscal
Quarters).

       

      “Interest Expense”
shall mean, for any period, for Borrower collectively on a consolidated basis
for such period: (a) total interest expense (including without limitation
attributable to Capital Leases in accordance with GAAP), (b) financing fees with
respect to all outstanding Indebtedness excluding amortization of capitalized
financing fees associated with the initial closing of this Agreement to interest
expense in accordance with GAAP, and commissions, discounts and other fees owed
with respect to letters of credit and bankers’ acceptance financing and net
costs under Interest Rate Agreements.   Notwithstanding the
foregoing Interest Expense shall not include any amortization of non-cash
warrant compensation that may be a result of warrants attached to any debt
instrument.

       

      “Interest Rate
Agreement” shall mean any interest rate swap, cap or collar agreement or
other similar agreement or arrangement designed to hedge the position with
respect to interest rates.

       

      “Minimum Liquidity”
shall mean, as of any date of determination, the sum of the following for
Borrower collectively on a consolidated basis as of such date: (a) unrestricted
cash on hand, plus (b) unrestricted
Cash Equivalents, plus (c) unused
Availability.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      “Net Income” shall
mean, for any period, the net income (or loss) of Borrower collectively on a
consolidated basis determined in accordance with GAAP; provided, however, that there
shall be excluded (i) the income (or loss) of any Person in which any other
Person (other than Borrower) has a joint interest, except to the extent of the
amount of dividends or other distributions actually paid to a Borrower by such
Person, (ii) the income (or loss) of any Person accrued prior to the date it
becomes a Borrower or is merged into or consolidated with a Borrower or that
Person’s assets are acquired by a Borrower, (iii) the income of any Subsidiary
of Borrower to the extent that the declaration or payment of dividends or
similar distributions of that income by that Subsidiary is not at the time
permitted by operation of the terms of the charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to
that Subsidiary, (iv) compensation expense resulting from the issuance of
capital stock, warrants, stock options or stock appreciation rights issued to
former or current employees or consultants, including officers, of a Borrower,
or the exercise of such options or rights, in each case to the extent the
obligation (if any) associated therewith is not expected to be settled by the
payment of cash by a Borrower or any affiliate thereof, and
(v) compensation expense resulting from the repurchase of capital stock,
options and rights described in clause (iv) of this definition of Net
Income.

       

      “Test Period” shall
mean the three most recent calendar months then ended (taken as one accounting
period), or such other period as specified in the Agreement or any Annex
thereto, provided, that, for the Test
Period ending April 30, 2008, Test Period shall mean the two most recent
calendar months then ended (taken as one accounting period).

       

      “Total
Debt Service” shall mean, for any period, the sum of the following for
Borrower collectively on a consolidated basis: (i) payments of principal on
Indebtedness for such period, plus
(ii) Interest Expense for such period.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
      

      EXHIBIT
A

      TO

      REVOLVING
CREDIT AND SECURITY AGREEMENT

      

      BORROWING
CERTIFICATE

      dated as
of                                    ,
                 

      

      NEOGENOMICS, INC., a Florida
corporation, (the “Borrower”), by the undersigned
duly authorized officer, hereby certifies to Lender in accordance with the
Revolving Credit and Security Agreement dated as of ___________________, 200__,
between Borrower, NeoGenomics, Inc., a Nevada corporation, and CapitalSource
Finance LLC (“Lender”)
(as amended, supplemented or modified from time to time, the "Loan Agreement;" all
capitalized terms not defined herein have the meanings given them in the Loan
Agreement) and other Loan Documents that:

      

      
        	
                 
      

              	
                A.

              	
                Borrowing Base and
      Compliance

              

      

      

      Pursuant
to the Loan Documents, Lender has been granted a lien on all Accounts of
Borrower.  The amounts, calculations and representations set forth
below and on Schedule
1 are true and correct in all respects and were determined in accordance
with the Loan Agreement and GAAP.  All of the Accounts referred to
(other than those entered as ineligible on Schedule 1) are
Eligible Accounts.  Attached are reports with detailed aging and
categorizing of Borrower’s accounts receivable and payables and supporting
documentation with respect to the amounts, calculation and representations set
forth on Schedule
1, all as reasonably requested by Lender pursuant to the Loan
Agreement.

      

      
        	
                 
      

              	
                B.

              	
                Borrowing
      Notice (to be
      completed and effective only if Borrower is requesting an
      Advance)

              

      

      

      (1)           In
accordance with Sections 2.3 and
6.2(a) of the Loan Agreement, Borrower hereby irrevocably requests from
Lender an Advance under the Revolving Facility pursuant to the Loan Agreement in
the aggregate principal amount of $_________ (“Requested Advance”) to be
made on _________________, _________ (the “Borrowing Date”), which day
is a Business Day.

      

      (2)           Immediately
after giving effect to the Requested Advance, the aggregate outstanding
principal amount of Advances will not exceed the lesser of (i) the Availability
and (ii) the Facility Cap.

      

      (3)           Borrower
certifies to Lender as of the applicable Borrowing Date (I) to the solvency of
Borrower after giving effect to the Requested Advance and the transactions
contemplated by the Loan Agreement and the other Loan Documents, and (II) as to
Borrower’s financial resources and ability to meet its respective obligations
and liabilities as they become due, to the effect that as of the applicable
Borrowing Date and after giving effect to the Requested Advance and the
transactions contemplated by the Loan Agreement and the other Loan
Documents:

      

      
        	
                 
      

              	
                (a)

              	
                the
      assets of Borrower, at a fair valuation, exceed the total liabilities
      (including contingent, subordinated, unmatured and unliquidated
      liabilities) of such Person; and

              

      

      

      
        (b)
        no
unreasonably small capital base with which to engage in its anticipated business
exists with respect to Borrower.

      

        

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

      

       

      (4)           Attached
hereto are all consents, approvals and agreements from third parties necessary
or desirable with respect to the requested Advance.

      

      
        	
                 
      

              	
                C.

              	
                General
      Certifications

              

      

      

      Borrower further certifies to Lender
that:  (a) the certifications, representations, calculations and
statements herein will be true and correct as of the date hereof and on the
Borrowing Date (if applicable); (b) all conditions and provisions of Section 6.2 and, if
applicable, Section
6.1 of the Loan Agreement are as of the date hereof, and will be as of
the Borrowing Date (if applicable), fully satisfied, including, without
limitation, receipt by Lender of all fees, charges and expenses payable to
Lender on or prior to such Borrowing Date pursuant to the Loan Documents; [(c) Borrower has paid all payroll
taxes through the payroll period ended _________; (d) Borrower is in substantial
compliance with all material regulatory provisions; (e) no Medicare or Medicaid
recoupments and/or recoupments of any third-party payor in excess of the limits
specified in the Loan Agreement are being sought, requested or claimed, or, to
Borrower’s knowledge, threatened against Borrower or Borrower’s affiliates
except the following amounts: Medicare _______; Medicaid _______; Third-Party
Payor _______.

      

      IN
WITNESS WHEREOF, the undersigned has caused this certificate to be executed as
of the day first written above.

       

      
        
          
            
              	
                      NEOGENOMICS,
      INC.

                    
	 
      	 
      	 
      	 
      
	
                      Prepared
      by:

                    	 
      	 
      	
                      Approved
      by:

                    
	 	 	 	 
	
                        

                    	
                        

                    	 
      	
                        

                    
	 
      	 
      	 
      	 
      
	
                      Name:

                    	
                        

                    	 
      	
                      Name:

                    	
                        

                    
	
                      Title:

                    	
                        

                    	 
      	
                      Title:

                    	
                        

                    

            

          

        

      

      
      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      EXHIBIT
B

      TO

      REVOLVING
CREDIT AND SECURITY AGREEMENT

      

      FORM
OF COMPLIANCE CERTIFICATE

      

      Date:
[___________________]

      

      This
certificate (the “Compliance
Certificate”) is given by NEOGENOMICS, INC., a Florida
corporation (the
“Borrower”) pursuant to
Section 8.1(a) of that certain Revolving Credit, Term Loan and Security
Agreement, dated as of ____________ ___, 2008 (the “Loan Agreement”) by and among
Borrower, NeoGenomics, Inc., a Nevada corporation, and CAPITALSOURCE FINANCE LLC, a
Delaware limited liability company (“Lender”). Capitalized terms
used herein without definition shall have the meanings set forth in the Loan
Agreement.

      

      The
officer executing this Compliance Certificate is the chief financial officer of
Borrower and as such is duly authorized to execute and deliver this Compliance
Certificate on behalf of Borrower.  By so executing this Compliance
Certificate, Borrower hereby certifies to the Lender that:

      

                 (a)           the
financial statements delivered with this Compliance Certificate in accordance
with Section 8.1(a) of the Loan Agreement fairly present the consolidated
results of operations and financial condition of the Borrower and its respective
subsidiaries on a consolidated basis for the period(s) ending on and as of the
dates of such financial statements;

      

                 (b)           the
Borrower has reviewed the relevant terms of the Loan Documents and the condition
of the Borrower;

      

                 (c)           no
Default or Event of Default has occurred or is continuing, except as set forth
in Schedule 2
hereto, which includes a description of the nature, status and period of
existence of such Default or Event of Default, if any, and what action the
Borrower has taken, is undertaking and proposes to take with respect thereto;
and

      
           (d)           the
Borrower is in compliance with all financial covenants set forth in the Loan
Agreement and then applicable, as demonstrated, with respect to Annex I of the Loan
Agreement by the calculations of such covenants in Schedule 1 hereto,
except as set forth in Schedule
2.

      

      [Signature
page follows.]

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the Borrower has caused this Compliance Certificate to be
executed by its duly authorized officer on behalf of the Borrower this ____ day
of _________ 200__.

      

      
        
          
            
              
                	
                        NEOGENOMICS,
      INC.

                      
	 
      	 
      
	
                        By:

                      	
                          

                      
	
                        Name:

                      	
                          

                      
	
                        Title:

                      	 
      

              

            

          

        

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      SCHEDULE
1 TO COMPLIANCE CERTIFICATE

      

      Date:  _______________
__, 20__

      

      For
calendar month and Test Period ended ____________

       

      
        
          
            
              
                
                  	
                          I.

                        	
                          MINIMUM
      FIXED CHARGE COVERAGE

                        
	 
      	 
      
	 
      	
                          ADJUSTED
      EBITDA

                        
	 
      	 
      
	 
      	
                          A.

                        	
                          Net
      Income

                        
	 
      	 
      	 
      
	 
      	 
      	
                          1.

                        	
                          Net
      income (or loss)

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          2.

                        	
                          Income
      (or loss) of any Person in which any other Person (other than any
      Borrower) has a joint interest, except to the extent of the amount of
      dividends or other distributions actually paid to a Borrower by such
      Person

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          3.

                        	
                          Income
      (or loss) of any Person accrued prior to the date it becomes a Borrower or
      is merged into or consolidated with a Borrower or that Person’s assets are
      acquired by any Borrower

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          4.

                        	
                          Income
      of any Subsidiary of Borrower to the extent that the declaration or
      payment of dividends or similar distributions of that income by that
      Subsidiary is not at the time permitted by operation of the terms of the
      charter or any agreement, instrument, judgment, decree, order, statute,
      rule or governmental regulation applicable to that
    Subsidiary

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          5.

                        	
                          Compensation
      expense resulting from the issuance of capital stock, warrant, stock
      options or stock appreciation rights issued to former or current
      employees, including officers, consultants and Board Members of a
      Borrower, or the exercise of such options or rights, in each case to the
      extent the obligation (if any) associated therewith is not expected to be
      settled by the payment of cash by a Borrower or any affiliate
      thereof

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          6.

                        	
                          Compensation
      expense resulting from the repurchase of capital stock, options and rights
      described in clause (iv) of the definition of Net
    Income

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          7.

                        	
                          Net
      Income:  (A.1) minus (A.2
      through A.6)

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                          B.

                        	
                          Interest
      Expense

                        	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          1.

                        	
                          Total
      interest expense (including attributable to Capital Leases in accordance
      with GAAP) and fees with respect to all outstanding
      Indebtedness

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          2.

                        	
                          Commissions,
      discounts and other fees owed with respect to letters of credit and
      bankers' acceptance financing and net costs under Interest Rate
      Agreements

                        	 
      	
                          $___________

                        
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          3.

                        	
                          Non-cash
      amortization of warrant expense (that has been categorized as interest
      expense) that may arise as a result of warrants being attached to
      outstanding Indebtedness

                        	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                          4.

                        	
                          Non-cash
      amortization of capitalized financing fees arising out of the initial
      closing of the Agreement which have been previously paid and have been
      categorized as interest expense in accordance to GAAP.

                        	 
      	 
      

                

              

            

          

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          
            
              
                
                  
                    
                      
                        	 
      	 
      	
                                5.

                              	
                                Interest
      Expense:  (B.1) minus (B.2
      through B.4)

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                C.

                              	
                                Taxes
      on income, whether paid, payable or accrued

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                D.

                              	
                                Depreciation
      expense

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                E.

                              	
                                Amortization
      expense

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                F.

                              	
                                All
      other non-cash, recurring charges and expenses, excluding accruals for
      cash expenses made in the ordinary course of business

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                G.

                              	
                                Loss
      from any sale of assets, other than sales in the ordinary course of
      business

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                H.

                              	
                                Non-cash
      stock option and warrant-based compensation expense

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                I.

                              	
                                Other
      extraordinary or non-recurring charges that would not have otherwise been
      incurred in the ordinary course of business as determined in accordance
      with GAAP, including, but not limited to, severance payments up to the
      amounts permitted in Section 9.6 of the Loan Agreement

                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                J.

                              	
                                Gains
      from any sale of assets, other than sales in the ordinary course of
      business

                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                K.

                              	
                                Other
      extraordinary or non-recurring gains

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                L.

                              	
                                ADJUSTED EBITDA: (A.7)
      plus
      ((B.5) and (C through I)) minus (J and
      K)

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	
                                II.

                              	
                                FIXED
      CHARGE COVERAGE RATIO

                              
	 
      	 
      
	 
      	
                                A.

                              	
                                ADJUSTED EBITDA (See ADJUSTED EBITDA
      calculation, (I.K)

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                B.

                              	
                                Fixed
      Charges

                              
	 
      	 
      	 
      
	 
      	 
      	
                                1.

                              	
                                Total
      Debt Service

                              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                                a.

                              	
                                Payments
      of principal on Indebtedness

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                                b.

                              	
                                Interest
      Expense (I.B.3)

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                                c.

                              	
                                Total Debt Service:
      (B.1.a) plus
      (B.1.b)

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                2.

                              	
                                Unfinanced
      Capital Expenditures paid in cash

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                3.

                              	
                                Income
      taxes paid in cash or accrued

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                4.

                              	
                                Dividends
      and distributions paid or accrued or declared (except for Accumulated
      Distributions)

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                5.

                              	
                                Fixed Charges: Sum of
      (B.1.c) through (B.4)

                              	 
      	
                                $___________

                              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                C.

                              	
                                FIXED CHARGE COVERAGE
      RATIO: (A)
      divided
      by
      (B.5)

                              	 
      	
                                ____________

                              

                      

                    

                  

                

              

            

          

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          
            
              	 
      	
                      D.

                    	
                      MINIMUM
      RATIO REQUIRED:

                    	 
      	
                      ____________

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      E.

                    	
                      COMPLIANCE:

                    	 
      	
                      __Yes/__No

                    
	 
      	 
      	 
      	 
      	 
      
	
                      III.

                    	
                      CASH
      VELOCITY

                    	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                      A.

                    	
                      Collections
      of Borrower’s Accounts

                    	 
      	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      B.

                    	
                      Average
      Revenue of Borrower over the preceding three
    _________________

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      C.

                    	
                      MINIMUM
      REQUIRED (80% OF III.B.):

                    	 
      	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      D.

                    	
                      COMPLIANCE:

                    	 
      	
                      __Yes/__No

                    
	 
      	 
      	 
      	 
      	 
      
	
                      IV.

                    	 
      	
                      MINIMUM
      LIQUIDITY

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      A.

                    	
                      Unrestricted
      cash on hand

                    	 
      	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      B.

                    	
                      Unrestricted
      Cash Equivalents

                    	 
      	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      C.

                    	
                      Unused
      Availability

                    	 
      	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      D.

                    	
                      LIQUIDITY: Sum of (A)
      through (C)

                    	 
      	
                      $___________

                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      E.

                    	
                      MINIMUM
      LIQUIDITY REQUIRED

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      F.

                    	
                      COMPLIANCE:

                    	 
      	
                      __Yes/__No

                    
	 
      	 
      	
                      (As
      evidenced by bank statements attached as detail)

                    	 
      	 
      

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      SCHEDULE
2 TO COMPLIANCE CERTIFICATE

      

      Date:  ________________
__, 20__

      

      CONDITIONS OR EVENTS WHICH
CONSTITUTE

      A DEFAULT OR AN EVENT OF
DEFAULT

      

      If any
condition or event exists that constitutes a Default or an Event of Default,
specify nature and period of existence and what action the Borrower has taken,
is taking or proposes to take with respect thereto; if no such condition or
event exists, state “None.” 

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
C

      TO

      REVOLVING CREDIT AND
SECURITY AGREEMENT

      

      OFFICER'S
CERTIFICATE

       

      The
undersigned, ROBERT P.
GASPARINI, certifies that he is the president of NEOGENOMICS, INC., a Florida
Corporation, ("Borrower"),
makes this certificate in connection with and pursuant to Section 6.1 of
the Loan Agreement dated as of the date hereof (the "Loan
Agreement") between Borrower, NeoGenomics, Inc., a Nevada corporation,
and CAPITALSOURCE FINANCE
LLC, a Delaware limited liability company ("Lender"),
and certifies to Lender as follows:

       

      All
conditions and provisions of Article VI of the Loan Agreement are fully
satisfied, including receipt by Lender of all fees, charges and expenses payable
to Lender on or prior to the date hereof pursuant to the Loan
Documents.  In furtherance of and without limiting the foregoing, as
of the date hereof, (A) the Loan Documents, other documents required pursuant
thereto and security interests and Liens created thereby are in full force and
effect, (B) each representation and warranty of the Borrower in the Loan
Documents is true and correct in all material respects as if made on and as of
the date hereof (except where such representation or warranty is otherwise
expressly made as of a particular date, in which case it is, was or will be true
and correct on and as of such other date), before and after giving effect to the
making of the Initial Advance and/or the consummation of the transactions to be
consummated on the date hereof, (C) the Borrower is in compliance with all,
and not in violation, breach or default of any, covenants, agreements and/or
other provisions of any of the Loan Documents, (D) no Default or Event of
Default under any Loan Document has occurred and is continuing or exists on the
date hereof or would exist after giving effect to the Initial Advance and/or the consummation
of the transactions to be consummated on the date hereof, (E) the Borrower
is in compliance with the provisions of Annex I of the
Loan Agreement, (F) no Material Adverse Change or Material Adverse Effect has
occurred and there are no liabilities or obligations with respect to the
Borrower of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether or not due) which, individually or in the aggregate, could
constitute a Material Adverse Effect, (G) no material adverse deviation from the
financial projections of the Borrower previously furnished to Lender has
occurred, and (H) no event(s), fact(s), condition(s) or circumstance(s) has
occurred which, individually or in the aggregate, make it improbable that the
Borrower will be able to observe or perform in all material respects any of the
Obligations under the Loan Documents.

       

      Capitalized
terms used, but not defined herein, shall have the meanings given such terms in
the Loan Agreement.

       

      IN
WITNESS WHEREOF, the undersigned has caused this Officer's Certificate to be
executed as of February 1, 2008.

       

      
        
          	
                  NEOGENOMICS,
      INC.

                
	 
      	 
      
	
                  By:   

                	
                  /s/ Robert P. Gasparini

                
	 
      	
                  Robert
      P. Gasparini

                
	 
      	
                  President
      and Chief Scientific Officer

                

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
D

      TO

      REVOLVING
CREDIT AND SECURITY AGREEMENT

      SOLVENCY
CERTIFICATE

      

      NEOGENOMICS,
INC.

      

      The
undersigned, Steven C.
Jones, hereby certifies that he is the Chief Financial Officer of NEOGENOMICS, INC., a Florida
corporation (the “Borrower”), and that he makes this certificate on behalf of
the Borrower pursuant to Section 6.1 of that certain Revolving Credit and
Security Agreement dated as of February 1, 2008 (the “Agreement”), by and
between the Borrower, NeoGenomics, Inc., a Nevada corporation (together with its
subsidiaries, the “Company”), and CapitalSource Finance LLC, a Delaware
limited liability company, and further certifies to the solvency of the Borrower
after giving effect to the transactions and the Indebtedness (as defined in the
Agreement) contemplated by the Agreement and the other Loan Documents (as
defined in the Agreement) and as to the Borrower’s financial resources and
ability to meet its obligations and liabilities as they become due, to the
effect that as of the Closing Date (as defined in the Agreement) and the
Borrowing Date for the Initial Advance and after giving effect to the
transactions and the Indebtedness contemplated by the Agreement and the other
Loan Documents:

      

      
        	
                 
      

              	
                (1)

              	
                the
      assets of the Borrower, at a fair valuation, exceed the total liabilities
      (including contingent, subordinated, unmatured and unliquidated
      liabilities) of the Borrower; and

              

      

      

      
        	
                 
      

              	
                (2)

              	
                no
      unreasonably small capital base with which to engage in the Borrower’s
      anticipated business exists with respect to the
  Borrower.

              

      

      

      IN
WITNESS WHEREOF, the undersigned has executed this Solvency Certificate as of
February 1, 2008.

      

      
        
          
            
              	 	
                      NEOGENOMICS,
      INC.

                    
	 	 
      
	 	
                      /S/ Steven C. Jones

                    
	 	
                      Name:  Steven
      C. Jones

                    
	 	
                      Title:  Chief
      Financial Officer

                    

            

          

        

      

      

      I, Jerome Dvonch, as
Secretary of the Company, do hereby certify that Steven C. Jones is
the duly elected, qualified and acting Chief Financial Officer of the Borrower,
and that the signature of Steven C. Jones set
forth above is his true and correct signature.

       

      IN
WITNESS WHEREOF, the undersigned has caused this Incumbency Certificate to be
duly executed this 1st day of February, 2008.

       

      
        
          	
                  /s/ Jerome Dvonch

                
	
                  Name:  Jerome
      Dvonch

                
	
                  Title:  Secretary

                

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      SCHEDULES

       

      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Schedule
      1.2

                                	 
      	
                                  Accounts
      Payable Over 120 Days That Are Permitted Indebtedness:

                                
	 	 	 
	 
      	 
      	
                                  Aspen
      Capital Advisors not to exceed $65,000

                                
	 
      	 
      	
                                  Kirkpatrick
      & Lockhart Preston Gates Ellis, LLP not to exceed
    $500,000

                                
	 
      	 
      	
                                  Path
      Labs of Fort Myers not to exceed $80,000

                                
	 
      	 
      	
                                  HCSS,
      LLC dba Bridge Labs not to exceed $40,000

                                
	 
      	 
      	 
      
	
                                  Schedule
      2.3

                                	 
      	
                                  Borrower’s
      Operating Account for Disbursements

                                
	 	 	 	 
	 
      	 
      	
                                  Bank
      Name:

                                	
                                  
                                    [***]

                                  

                                
	 
      	 
      	
                                  
                                    ABA
      #:

                                  

                                	
                                  
                                    [***]

                                  

                                
	 
      	 
      	
                                  
                                    City/State:

                                  

                                	
                                  
                                    [***]

                                  

                                
	 
      	 
      	
                                  
                                    Account
      #:

                                  

                                	
                                  
                                    [***]

                                  

                                
	 
      	 
      	
                                  
                                    Account
      Name:

                                  

                                	
                                  
                                    [***]

                                  

                                
	 
      	 
      	 
      
	
                                  Schedule
      5.3B

                                	 
      	
                                  Third-Party
      Contracts With Payor’s Representing at Least 5% of Cash
      Receipts

                                
	 
      	 
      	 
      
	 
      	 
      	
                                  Medicare

                                
	 
      	 
      	
                                  United
      Healthcare

                                
	 
      	 
      	 
      
	
                                  Schedule
      7.3

                                	 
      	
                                  Subsidiaries
      of NeoGenomics, Inc., a Nevada Corporation (Holding
    Company)

                                
	 	 	 
	 
      	 
      	
                                  NeoGenomics,
      Inc., dba NeoGenomics Laboratories, a Florida
  Corporation

                                
	 
      	 
      	 
      
	 
      	 
      	
                                  Subsidiaries
      of NeoGenomics, Inc., a Florida Corporation (Operating
      Company)

                                
	 	 	 
	 
      	 
      	
                                  None

                                
	 
      	 
      	 
      
	 
      	 
      	
                                  Capitalization
      of NeoGenomics, Inc, a Nevada Corporation as of
12/31/07

                                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Common
      Shares Authorized:

                                	
                                  100,000,000

                                
	 
      	 
      	
                                  Common
      Sock Outstanding:

                                	
                                  31,391,410

                                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Preferred
      Stock Authorized:

                                	
                                  10,000,000

                                
	 
      	 
      	
                                  Preferred
      Stock Outstanding:

                                	
                                  None

                                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Warrants
      Outstanding:

                                	
                                  3,085,083

                                
	 
      	 
      	
                                  Options
      Outstanding :

                                	
                                  5,805,363

                                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Capitalization
      of NeoGenomics, Inc, a Florida Corporation

                                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Common
      Shares Authorized:

                                	
                                  100

                                
	 
      	 
      	
                                  Common
      Sock Outstanding:

                                	
                                  100

                                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Board
      of Directors of NeoGenomics, Inc, a Nevada Corporation

                                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Michael
      T. Dent, M.D.

                                	
                                  George
      G. O’Leary

                                
	 
      	 
      	
                                  Robert
      P. Gasparini

                                	
                                  Peter
      M. Peterson

                                
	 
      	 
      	
                                  Marvin
      E. Jaffe, M.D.

                                	
                                  William
      J. Robison

                                
	 
      	 
      	
                                  Steven
      C. Jones

                                	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Board
      of Directors of NeoGenomics, Inc, a Florida Corporation

                                
	 	 	 
	 
      	 
      	
                                  Michael
      T. Dent, M.D.

                                	 
      
	 
      	 
      	
                                  Robert
      P. Gasparini

                                	 
      

                        

                      

                    

                  

                

              

            

          

        

        
           

          [***]
Information redacted pursuant to a confidential treatment request. An unredacted
version of this Agreement has been filed separately with the Securities and
Exchange Commission.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            
              
                
                  	
                          Schedule
      7.4A

                        	 
      	
                          Locations
      of Leased Properties

                        
	 
      	 
      	 
      
	 
      	 
      	
                          12701
      Commonwealth Drive, Suites 1-9

                        
	 
      	 
      	
                          Fort
      Myers, FL 33913

                        
	 
      	 
      	 
      
	 
      	 
      	
                          618
      Grassmere Park Drive, Suite 20

                        
	 
      	 
      	
                          Nashville,
      TN  37211

                        
	 
      	 
      	 
      
	 
      	 
      	
                          6
      Morgan Street, Suite 150

                        
	 
      	 
      	
                          Irvine,
      CA 92618

                        
	 
      	 
      	 
      
	
                          Schedule
      7.4B

                        	 
      	
                          Deposit
      Accounts of NeoGenomics, Inc., a Nevada Company (Holding
      Company)

                        

                

              

            

          

          

          
            
              
                	 
      	 
      	
                        Bank

                      	 
      	
                        Account #

                      	 
      	
                        Description

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      

              

            

          

          

          
            
              
                	 
      	 
      	
                        There
      are no liens on any of these accounts

                      
	 
      	 
      	 
      
	 
      	 
      	
                        Deposit
      Accounts of NeoGenomics, Inc., a FL Company (Operating
      Subsidiary)

                      

              

            

          

          

          
            
              
                	 
      	 
      	
                        Bank

                      	 
      	
                        Account #

                      	 
      	
                        Description

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      
	 
      	 
      	
                        [***]

                      	 
      	
                        [***]

                      	 
      	
                        [***]

                      

              

            

          

          

          
            
              
                	 
      	 
      	
                        There
      are no liens on any of these
accounts

                      

              

            

          

          

          
            
              
                	
                        Schedule
      7.5

                      	 
      	
                        Affiliate
      Contracts

                         

                        On
      March 11, 2005, NeoGenomics entered into an agreement with HCSS, LLC and
      eTelenext, Inc. to enable NeoGenomics to use eTelenext, Inc’s laboratory
      information system (LIS).  HCSS, LLC is a holding company
      created to build a small laboratory network for the 50 small commercial
      genetics laboratories in the United States.  HCSS, LLC is owned
      66.7% by Dr. Michael T. Dent, our Chairman.  By becoming the
      first customer of HCSS in the small laboratory network, the Company saved
      approximately $152,000 in up front licensing fees.  Under the
      terms of the agreement, the Company paid $22,500 over three months to
      customize this software and pays an annual membership fee of $6,000 per
      year and monthly transaction fees of between $2.50 - $10.00 per completed
      test, depending on the volume of tests performed.  As of
      December, 2007, the Company was incurring approximately $8,000 -
      $10,000/month in fees.  The eTelenext system is an elaborate LIS
      that is in use at many larger labs.  By utilizing the eTelenext
      system, the Company has vastly increased the productivity of its
      technologists.

                      

              

            

          

        

         

        
          [***]
Information redacted pursuant to a confidential treatment request. An unredacted
version of this Agreement has been filed separately with the Securities and
Exchange Commission..

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            
              	 
      	 
      	
                      The Company has consulting
      arrangements with two members of its Board of Directors, Mr. Steven Jones
      and Mr. George O’Leary, to provide various consulting
      services.  Although there are no written agreements, per se,
      each of these arrangements has been approved by the Company’s Board of
      Directors.  Mr. Jones receives approximately $150/hour and is
      paid through Aspen Capital Advisors.  Mr. O’leary receives
      approximately $1,000/day and is paid through SKS
      Consulting.  The maximum amounts payable by the Company under
      the consulting agreements referenced in this paragraph will not exceed
      $500,000 per fiscal
year.

                    

            

          

        

        

        
          
            
              
                	
                        Schedule
      7.6

                      	 
      	
                        Litigation

                         

                        US Labs

                         

                        On October 26, 2006, Accupath
      Diagnostics Laboratories, Inc. d/b/a US Labs, a California corporation
      (“US Labs”) filed a complaint in the Superior Court of the State of
      California for the County of Los Angeles (the “Court”) against the Company
      and Robert Gasparini, as an individual, and certain other employees and
      non-employees of NeoGenomics with respect to claims arising from
      discussions with current and former employees of US Labs.  US
      Labs alleges, among other things, that NeoGenomics engaged in “unfair
      competition” by having access to certain salary information of four
      recently hired sales personnel prior to the time we hired such
      individuals.  We believe that US Labs’ claims against
      NeoGenomics lack any merit and that there are well-established laws that
      affirm the rights of employees to seek employment with any company they
      desire and employers to offer such employment to anyone they
      desire.  US Labs seeks unspecified monetary
      relief.  As part of the complaint, US Labs also sought
      preliminary injunctive relief against NeoGenomics and requested that the
      Court bar NeoGenomics from, among other things:  a) inducing any
      further US Labs’ employees to resign employment with US Labs, b)
      soliciting, interviewing or employing US Labs’ employees for employment,
      c) directly or indirectly soliciting US Labs’ customers with whom four new
      employees of NeoGenomics did business while employed at US Labs; and d)
      soliciting, initiating and/or maintaining economic relationships with US
      Labs’ customers that are under contract with US Labs.

                         

                        On November 15, 2006, the Court
      heard arguments on US Labs request for a preliminary injunction and denied
      the majority of US Labs’ requests for such injunction on the grounds that
      US Labs was not likely to prevail at trial.  The Court did,
      however, issue a much narrower preliminary injunction which prevents
      NeoGenomics from “soliciting” the US Labs’ customers of such new sales
      personnel until such time as a full trial could be held.  This
      preliminary injunction is limited only to the “solicitation” of the US
      Labs’ customers of the sales personnel in question and does not in any way
      prohibit NeoGenomics from doing business with any such customers to the
      extent they have sought or seek a business relationship with NeoGenomics
      on their own initiative.  Furthermore, NeoGenomics is not in any
      way prohibited from recruiting any additional personnel from US Labs
      through any lawful
means.

                      

              

            

          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            
              
                	 
      	 
      	
                        US Labs has commenced contempt
      proceedings against NeoGenomics with respect to certain contacts the new
      salespeople have had with some of their former customers.  In
      April 2007, the court determined that two contacts the salespeople had
      made in the early days of the injunction were impermissible (out of
      approximately 9 contacts that were challenged), and levied a fine of
      $2,000.  An attorneys’ fees motion related to that proceeding
      was heard in July 2007 and NeoGenomics was ordered to reimburse US Labs
      for $34,000 of attorney’s fees with respect to the proceedings involving
      the two customer contacts in question.  US Labs has commenced
      additional contempt proceedings, and arguments were begun for
      approximately six more contacts in early November.  These
      arguments were concluded in early December, and the court determined that
      three contacts were impermissible and NeoGenomics was ordered to pay a
      fine of $3,000.  In two of such cases, NeoGenomics believes that
      the customers approached NeoGenomics first, and plans to appeal such
      rulings.  While US Labs has not yet filed a motion for the
      recovery of attorney’s fees, we expect them to do so.  One of
      the issues presented in this case is that the Court has never ordered US
      Labs to disclose the identities of the customers that NeoGenomics should
      be enjoined from soliciting.  Instead US Labs has used the
      strategy of challenging every single customer contact, whether or not it
      was appropriate under the injunction.

                         

                        The contempt applications do not
      relate to any underlying allegations against NeoGenomics, and do not
      affect the ultimate outcome of the case.  We believe that none
      of US Labs’ claims will be affirmed at trial; however, even if they were,
      NeoGenomics does not believe such claims would result in a material impact
      to our business.  NeoGenomics further believes that this lawsuit
      is nothing more than a blatant attempt by a large corporation to impede
      the progress of a smaller and more nimble competitor, and we intend to
      vigorously defend ourselves.  In early January 2008, we received
      word from our D&O Insurance Carrier, Navigators, that they would begin
      reimbursing 50% of the reasonable attorneys fees incurred since the time
      we tendered our claim in early July 2007.  We expect such
      reimbursements to begin shortly.   NeoGenomics has also
      tendered a claim to FCCI Commercial Insurance Company under its General
      Liability Insurance Policy seeking reimbursement of attorney’s
      fees.  On December 28, 2007, the Company was served with a
      complaint by FCCI, the Company’s general liability insurer, seeking a
      declaratory judgment that FCCI has no duty to defend Bob Gasparini and the
      Company.  No damages were sought in the suit by
      FCCI.  NeoGenomics believes that the FCCI suit is an improper
      attempt to persuade NeoGenomics relinquish coverage.  However,
      based on conversations with Counsel, NeoGenomics believes that it has a
      good chance of getting coverage under this policy, and is in the process
      of preparing a motion for summary judgment.

                         

                        Discovery commenced on the main
      action in December 2006 and is ongoing.  Trial is set for April
      15, 2008.  While the Company did receive unsolicited and
      inaccurate salary information for three individuals that were ultimately
      hired, no evidence of misappropriation of trade secrets has been
      discovered by either side.  Under California law, salary
      information is not subject to trade secret protection.  As such,
      the Company filed a motion for Summary Judgment in early November seeking
      to end the case before it is tried.  Arguments for the Motion
      for Summary Judgment are scheduled for March 2008.  In the event
      the Motion for Summary Judgment fails for any reason and this case does go
      to trial, NeoGenomics expects ultimately to
  prevail.

                      

              

            

          

        

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          
            
              
                	 
      	 
      	
                        Dr. Peter Kohn

                         

                        In
      October 2004, Dr. Peter Kohn resigned as Lab Director of NeoGenomics. His
      employment contract with the Company ended September 30, 2004 and was not
      renewed. There was communication between Mr. Thomas White, former CEO and
      Dr. Kohn in October regarding health coverage and unused vacation time. In
      November 2004, the company received correspondence from Terry and Frazier,
      LLP, Dr. Kohn’s attorney relating to health care coverage, unused vacation
      time and business expenses related to November 2004. Mr. White responded
      that the Company would use the unpaid vacation time to cover Dr. Kohn’s
      health insurance until the issue is resolved and that the business
      expenses fell outside the contract terms and therefore would not be
      reimbursed. Dr. Kohn’s contract stipulated that this agreement superseded
      all prior agreements and therefore prior claims related to prior
      agreements were resolved with the signing of the most recent agreement.
      The Company believes that it has a strong documented case relating to its
      position regarding Dr. Kohn’s claims which would hold up in any court
      proceeding.  However, in the event that the Company is found to
      be liable for some or all of Dr. Kohn’s claims, the amounts in question
      would not be material to the ongoing operations of the
      Company.  The Company booked accrued severance expense of
      $12,352 to cover Dr. Kohn’s unused vacation pay up to the date of his
      termination and paid approximately $400/month to cover his health
      insurance against this accrual until June of 2007 when the Company was
      notified that Dr. Kohn had gotten insurance elsewhere.

                         

                        On January 12, 2005, the Company
      received a complaint filed in the Circuit Court for Seminole County,
      Florida by its former Laboratory Director, Dr. Peter Kohn.  The
      complaint alleged that the Company owed Dr. Kohn approximately $22,000 in
      back vacation pay and other unspecified damages.  The Company
      believes that it owes Dr. Kohn no more than approximately $12,352, of
      which it has already paid substantially all of this by virtue of the
      Company continuing to pay Dr. Kohn’s health insurance
      premiums.

                         

                        On
      March 5, 2007, the Company received an amended complaint filed in the
      Circuit Court for Seminole County, Florida by Dr. Kohn.  The
      complaint alleges the following (a) that Dr. Kohn is owed $12,600 for 22
      unused vacation days and 4 unused sick days resulting from his first
      contract from Oct 2002 to Sept 2003; (b) that Dr. Kohn is owed $14,054 for
      25 unused vacation days and four unused sick days (at a rate of
      $484.64/day), (c) that Dr. Kohn is owed $10,664 for thirty days of notice
      time from Oct 7, 2004 to Nov 5, 2004 and $917 for rent reimbursement and
      $442 for meal and auto expense, and (d) that Dr. Kohn is entitled to
      recoup legal fees.

                         

                        The
      Company believes that all of Dr. Kohn’s claims related to the first
      contract (see (a) above) are unenforceable since the second contract
      clearly stated that it superseded all prior claims.  With
      respect to Dr. Kohn’s claims in paragraph (b) above, the Company has
      acknowledged that it owed Dr. Kohn $12,352 as of the date of termination
      for 25 days of unused vacation time and has been using this money to pay
      his insurance premiums.  The Company further believes that Dr.
      Kohn’s claims from (c) above are without merit, since the contract had
      already lapsed on Sept 30, 2004 and the Company received an email message
      from Dr. Kohn saying that he had resigned.  Thus, either of the
      above reasons would have obviated the need for 30 days
      notice.   Similarly, the Company does not believe that Dr.
      Kohn is entitled to attorneys fees.

                         

                        In
      March 2007, the Company filed a motion to dismiss most of the third
      amended complaint, except for the count dealing with the unused vacation
      pay from the second contract (count b above), which the Company has
      acknowledged that it owed to Dr. Kohn.  On May 1, 2007, the
      judged dismissed two of the four counts that the Company had requested be
      dismissed.  On June 13, 2007, the Company filed its answer to
      Dr. Kohn’s remaining claims and the both sides are currently engaged in
      discovery.  No trial has been set for the remaining
      matters.  Should Dr. Kohn continue to pursue this action, the
      Company intends to vigorously pursue its defense of this matter, and even
      if the Company were found liable for Dr. Kohn’s claims, the Company does
      not believe the amounts in question would be material to the ongoing
      operations of the
Company.

                      

              

            

          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            
              
                	
                        Schedule
      7.11

                      	 
      	
                        Intellectual
      Property

                         

                        The
      Company has received a registered trademark for the name “NeoGenomics” for
      use in the business in which it currently operates and related
      businesses.

                      
	 	 	 
	
                        Schedule
      7.15A

                      	 
      	
                        Existing
      Indebtedness, Investments, Guarantees and Certain Contracts

                         

                        Existing
      Indebtedness of Guarantor

                         

                        None

                         

                        Existing
      Indebtedness and Contracts for Indebtedness by
  Borrower

                      

              

            

          

        

      

         

        
          
            
              
                
                  
                    
                      
                        
                          	 
      	 	
                                  Lessor (Capitalized
      Leases)

                                	 	
                                  Asset Description

                                	 	
                                  Amount of

                                  lease

                                	 	
                                  Start

                                  Date

                                	 	
                                  Term

                                	 	
                                  Term

                                  Date

                                	 	
                                  Payment

                                	 
	 
      	 	 
      	 	 
      	 	 	 	 
      	 	 	 	 
      	 	 	 
	
                                  1

                                	 	
                                  US
      Express Lease

                                	 	
                                  Computer
      Equipment

                                	 	$	11,204	 	
                                  Mar-07

                                	 	 	36	 	
                                  Mar-10

                                	 	$	413	 
	
                                  2

                                	 	
                                  Balboa
      Capital

                                	 	
                                  Furniture
      & fixtures

                                	 	 	19,820	 	
                                  Apr-07

                                	 	 	60	 	
                                  Mar-12

                                	 	 	441	 
	
                                  3

                                	 	
                                  VAR
      222707 - PC Connections

                                	 	
                                  Computer
      Equipment

                                	 	 	6,245	 	
                                  Feb-07

                                	 	 	36	 	
                                  Jan-10

                                	 	 	372	 
	
                                  4

                                	 	
                                  VAR
      res 13107 - PC Connections

                                	 	
                                  Computer
      Equipment

                                	 	 	3,554	 	
                                  Feb-07

                                	 	 	36	 	
                                  Jan-10

                                	 	 	299	 
	
                                  5

                                	 	
                                  California
      Beckman

                                	 	
                                  Cytomics
      PC 500

                                	 	 	136,118	 	
                                  Mar-07

                                	 	 	60	 	
                                  Feb-12

                                	 	 	2,792	 
	
                                  6

                                	 	
                                  Baytree

                                	 	
                                  BMC
      Software/customer svc

                                	 	 	15,783	 	
                                  Mar-07

                                	 	 	36	 	
                                  Mar-10

                                	 	 	552	 
	
                                  7

                                	 	
                                  Royal
      bank of america

                                	 	
                                  Abbott
      molecular Thermobrite

                                	 	 	80,936	 	
                                  Feb-07

                                	 	 	48	 	
                                  Jan-11

                                	 	 	2,289	 
	
                                  8

                                	 	
                                  Beckman
      Coulter Lease

                                	 	
                                  Flow
      Cytometer

                                	 	 	125,064	 	
                                  Apr-06

                                	 	 	60	 	
                                  Mar-11

                                	 	 	2,691	 
	
                                  9

                                	 	
                                  Marlin
      Lease

                                	 	
                                  Ikonisys
      comupter support equip

                                	 	 	48,230	 	
                                  Sep-06

                                	 	 	60	 	
                                  Aug-11

                                	 	 	1,201	 
	
                                  10

                                	 	
                                  B of
      A Lease

                                	 	
                                  Computer
      hardware & servers

                                	 	 	98,405	 	
                                  Sep-06

                                	 	 	60	 	
                                  Aug-11

                                	 	 	2,366	 
	
                                  11

                                	 	
                                  AEL
      Lease

                                	 	
                                  IkoniScope

                                	 	 	100,170	 	
                                  Sep-06

                                	 	 	60	 	
                                  Aug-11

                                	 	 	2,316	 
	
                                  12

                                	 	
                                  GE
      Capital Corp

                                	 	
                                  IkoniScope

                                	 	 	100,170	 	
                                  Sep-06

                                	 	 	60	 	
                                  Aug-11

                                	 	 	2,105	 
	
                                  13

                                	 	
                                  Beckman
      Coulter

                                	 	
                                  Coulter
      Hematology Analyzer

                                	 	 	18,375	 	
                                  Nov-06

                                	 	 	60	 	
                                  Oct-11

                                	 	 	761	 
	
                                  14

                                	 	
                                  Bank
      of America

                                	 	
                                  Computer
      hardware & servers

                                	 	 	8,954	 	
                                  Nov-06

                                	 	 	60	 	
                                  Oct-11

                                	 	 	228	 
	
                                  15

                                	 	
                                  Royal
      Bank (BMT) 24K Lease

                                	 	
                                  Computer
      hardware & servers

                                	 	 	23,494	 	
                                  Dec-06

                                	 	 	48	 	
                                  Nov-10

                                	 	 	718	 
	
                                  16

                                	 	
                                  Royal
      Bank (BMT) 18K Lease

                                	 	
                                  Computer
      hardware & servers

                                	 	 	17,661	 	
                                  Dec-06

                                	 	 	48	 	
                                  Nov-10

                                	 	 	549	 
	
                                  17

                                	 	
                                  Toshiba
      Lease

                                	 	
                                  Phone
      system

                                	 	 	42,784	 	
                                  Jan-07

                                	 	 	60	 	
                                  Dec-11

                                	 	 	998	 
	
                                  18

                                	 	
                                  Key
      Equipment

                                	 	
                                  Genetic
      imaging system

                                	 	 	124,820	 	
                                  Aug-07

                                	 	 	60	 	
                                  Jul-12

                                	 	 	3,090	 
	
                                  19

                                	 	
                                  Great
      America

                                	 	
                                  Genetic
      imaging system

                                	 	 	55,920	 	
                                  Aug-07

                                	 	 	60	 	
                                  Jul-12

                                	 	 	1,392	 
	
                                  20

                                	 	
                                  Bank
      of America

                                	 	
                                  Seacoast
      billing software

                                	 	 	74,788	 	
                                  Sep-07

                                	 	 	36	 	
                                  Aug-10

                                	 	 	3,125	 
	
                                  21

                                	 	
                                  Think
      Leasing/H&IT Capital

                                	 	
                                  Ikoniscope,
      Great Plains s/w, etc.

                                	 	 	292,993	 	
                                  Jan-08

                                	 	 	60	 	
                                  Jan-13

                                	 	 	6,534	 
	 
      	 	 
      	 	 
      	 	$	1,405,489	 	 
      	 	 	 	 	 
      	 	$	35,234	 

                        

                      

                    

                  

                

              

            

          

        

      

      

      
        
          
            
              
                	 
      	
                        Investments
      Held by Guarantor

                         

                        $200,000
      Convertible Note Receivable from Power3 Medical Products,
Inc.

                         

                        Investments
      Held by Subsidiary

                         

                        None

                      
	 	 
	
                        Schedule
      7.15B

                      	
                        Indebtedness with a Maturity
      Date During the Term – See Schedule 7.15A

                      
	 	 
	
                        Schedule
      7.16

                      	
                        Other Agreements - See
      Schedule
7.5

                      

              

            

          

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
 

      
        
          	
                  Schedule
      7.17

                	
                  Insurance

                

        

      

       

      
        Commercial
Insurance Schedule

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	  	 
      	
                                                                Broker
      / Agent

                                                              	 
      	
                                                                Carrier
      (Ins. Co)

                                                              	 
      	
                                                                Type

                                                              	 
      	
                                                                Policy
      Number

                                                              	 
      	
                                                                Limit

                                                              	 
      	
                                                                Effective

                                                                Date

                                                              	 
      	
                                                                Expiration

                                                                Date

                                                              	 
      	
                                                                Note:

                                                              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                1

                                                              	 
      	
                                                                Gulfshore
      Insurance

                                                              	 
      	
                                                                Admiral
      Insurance Co.

                                                              	 
      	
                                                                Professional
      Liability

                                                              	 
      	
                                                                E000000559302

                                                              	 
      	
                                                                $1
      mil / $3 mil

                                                              	 
      	
                                                                10/9/2007

                                                              	 
      	
                                                                10/9/2008

                                                              	 
      	
                                                                All
      Locations

                                                              
	
                                                                2

                                                              	 
      	
                                                                Gulfshore
      Insurance

                                                              	 
      	
                                                                Travelers
      Indemnity Co. of CT

                                                              	 
      	
                                                                Workers'
      Comp

                                                              	 
      	
                                                                IACRUB-4649C88-4-07

                                                              	 
      	
                                                                EL-$500,000

                                                              	 
      	
                                                                5/4/2007

                                                              	 
      	
                                                                5/4/2008

                                                              	 
      	
                                                                All
      Locations

                                                              
	
                                                                3

                                                              	 
      	
                                                                N/A

                                                              	 
      	
                                                                Brickstreet
      Mutual Ins. Co

                                                              	 
      	
                                                                WV
      Workers Comp

                                                              	 
      	
                                                                WC10203816-01

                                                              	 
      	
                                                                EL-$500,000

                                                              	 
      	
                                                                2/19/2007

                                                              	 
      	
                                                                2/19/2008

                                                              	 
      	
                                                                WV
      Stae Ins. Co.

                                                              
	
                                                                4

                                                              	 
      	
                                                                Lott
      & Gaylor

                                                              	 
      	
                                                                FCCI
      - FL

                                                              	 
      	
                                                                Commercial
      Property

                                                              	 
      	
                                                                CP0003390-1

                                                              	 
      	
                                                                $1.7
      mil

                                                              	 
      	
                                                                4/15/2007

                                                              	 
      	
                                                                4/15/2008

                                                              	 
      	
                                                                FL
      only

                                                              
	
                                                                5

                                                              	 
      	
                                                                Lott
      & Gaylor

                                                              	 
      	
                                                                FCCI
      - FL

                                                              	 
      	
                                                                General
      Liability

                                                              	 
      	
                                                                GL00052821-1

                                                              	 
      	
                                                                $1
      mil / $2 mil

                                                              	 
      	
                                                                4/15/2007

                                                              	 
      	
                                                                4/15/2008

                                                              	 
      	
                                                                FL
      only

                                                              
	
                                                                6

                                                              	 
      	
                                                                Lott
      & Gaylor

                                                              	 
      	
                                                                FCCI
      - FL

                                                              	 
      	
                                                                Crime

                                                              	 
      	
                                                                CR0000676-1

                                                              	 
      	
                                                                $50,000

                                                              	 
      	
                                                                4/15/2007

                                                              	 
      	
                                                                4/15/2008

                                                              	 
      	
                                                                FL
      Admin only

                                                              
	
                                                                7

                                                              	 
      	
                                                                Lott
      & Gaylor

                                                              	 
      	
                                                                FCCI
      - TN

                                                              	 
      	
                                                                commercial
      Property

                                                              	 
      	
                                                                CPP0006352-2

                                                              	 
      	
                                                                $225,841

                                                              	 
      	
                                                                5/31/2007

                                                              	 
      	
                                                                5/31/2008

                                                              	 
      	
                                                                TN
      Only

                                                              
	
                                                                8

                                                              	 
      	
                                                                Lott
      & Gaylor

                                                              	 
      	
                                                                FCCI
      - TN

                                                              	 
      	
                                                                commercial
      liability

                                                              	 
      	
                                                                CPP0006352-2

                                                              	 
      	
                                                                $1
      mil / $2 mil

                                                              	 
      	
                                                                5/31/2007

                                                              	 
      	
                                                                5/31/2008

                                                              	 
      	
                                                                TN
      Only

                                                              
	
                                                                9

                                                              	 
      	
                                                                Gulfshore
      Insurance

                                                              	 
      	
                                                                Mount
      Vernon Ins.

                                                              	 
      	
                                                                commercial
      Property

                                                              	 
      	
                                                                CF2166377

                                                              	 
      	
                                                                $593,000

                                                              	 
      	
                                                                9/21/2007

                                                              	 
      	
                                                                9/21/2008

                                                              	 
      	
                                                                CA
      Only

                                                              
	
                                                                10

                                                              	 
      	
                                                                Gulfshore
      Insurance

                                                              	 
      	
                                                                Admiral
      Insurance Co.

                                                              	 
      	
                                                                commercial
      liability

                                                              	 
      	
                                                                CA00001186101

                                                              	 
      	
                                                                $1
      mil / $2 mil

                                                              	 
      	
                                                                9/21/2007

                                                              	 
      	
                                                                9/21/2008

                                                              	 
      	
                                                                CA
      Only

                                                              
	
                                                                11

                                                              	 
      	
                                                                Lott
      & Gaylor

                                                              	 
      	
                                                                FCCI
      - Ins. Co.

                                                              	 
      	
                                                                Umbrella

                                                              	 
      	
                                                                UMB0005093-1

                                                              	 
      	
                                                                $1
      mil in excess of primary

                                                              	 
      	
                                                                4/15/2007

                                                              	 
      	
                                                                4/15/2008

                                                              	 
      	
                                                                FL/TN

                                                              
	
                                                                12

                                                              	 
      	
                                                                Gulfshore
      Insurance

                                                              	 
      	
                                                                Mt.
      Hawley Ins. Co.

                                                              	 
      	
                                                                Umbrella

                                                              	 
      	
                                                                MXL0365587

                                                              	 
      	
                                                                $3
      mil excess of underlying

                                                              	 
      	
                                                                8/10/2007

                                                              	 
      	
                                                                4/15/2008

                                                              	 
      	
                                                                All
      States

                                                              
	
                                                                13

                                                              	 
      	
                                                                Gulfshore
      Insurance

                                                              	 
      	
                                                                Travelers
      Indemnity Co.

                                                              	 
      	
                                                                Auto

                                                              	 
      	
                                                                BA4547L23A

                                                              	 
      	
                                                                $1,000,000

                                                              	 
      	
                                                                6/28/2007

                                                              	 
      	
                                                                6/28/2008

                                                              	 
      	
                                                                All
      States/Any Auto

                                                              
	
                                                                14

                                                              	 
      	
                                                                Lott
      & Gaylor

                                                              	 
      	
                                                                American
      Home Assurance Co.

                                                              	 
      	
                                                                Executive
      D&O

                                                              	 
      	
                                                                108-55-03

                                                              	 
      	
                                                                $2
      mil single limit

                                                              	 
      	
                                                                6/15/2007

                                                              	 
      	
                                                                6/15/2008

                                                              	 
      	
                                                                All
      States

                                                              

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              	
                      Schedule
      7.18A

                    	
                      Borrower’s
      Names

                       

                      NeoGenomics, Inc.

                      NeoGenomics
      Laboratories

                       

                    
	
                      Schedule
      7.18B

                    	
                      Chief
      Executive Offices and Other Places of Business

                       

                      Chief Executive Offices

                      12701
      Commonwealth Drive, Suites 1-9

                      Fort
      Myers, FL 33913

                       

                      Other Places of Business

                      618
      Grassmere Park Drive, Suite 20

                      Nashville,
      TN  37211

                      6
      Morgan Street, Suite 150

                      Irvine,
      CA 92618

                    

            

          

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                
                  	
                          Schedule
      8.8

                        	
                          Post-Closing
      Matters

                        
	 	 
	
                          Schedule
      9.2

                        	
                          Permitted
      Indebtedness

                           

                          All Capital Leases listed in
      Schedule 7.15A

                        
	 	 
	
                          Schedule
      9.3

                        	
                          Permitted
      Liens

                           

                          Purchase Money on all Equipment
      financed through the Capital Leases listed on Schedule
    7.15A

                        
	 	 
	
                          Schedule
      9.4

                        	
                          New
      Facilities

                           

                          As
      of the closing, the Company intends to open up satellite offices at the
      following locations in the same general vicinity:

                           

                          [***]

                          [***]

                          [***]

                        

                

              

            

          

        

      

       

      
        [***]
Information redacted pursuant to a confidential treatment request. An unredacted
version of this Agreement has been filed separately with the Securities and
Exchange Commission.[Confidential
Treatment Requested. Confidential portions of this document have been
redacted

       and
have been separately filed with the Securities and Exchange
Commission]

      SECOND AMENDMENT TO
REVOLVING CREDIT AND SECURITY AGREEMENT

       

      THIS
SECOND AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT (this “Agreement”) is entered into on
this 14th day of
April 2009 (the “Effective
Date”), by and among NEOGENOMICS LABORATORIES,
INC., a Florida corporation formerly known as NeoGenomics, Inc. (“Borrower”), NEOGENOMICS, INC., a Nevada
corporation (“Guarantor”, together with
Borrower, each individually a “Credit Party” and
collectively, the “Credit
Parties”), and CAPITALSOURCE FINANCE LLC, a
Delaware limited liability company, as agent for the lender under the Credit
Agreement referred to below (“Agent”).

       

      RECITALS

       

      A.          Credit
Parties and CapitalSource Finance LLC (together with its successors and assigns,
CSF”) have entered into
that certain Revolving Credit and Security Agreement, dated as of February 1,
2008 as amended by that certain First Amendment to Revolving Credit and Security
Agreement dated November 3, 2008 (as may be amended, restated, supplemented, or
otherwise modified from time to time, the “Credit
Agreement”).

       

      B.           Pursuant
to Section 15.2
of the Credit Agreement, CSF assigned the Revolving Facility to CapitalSource
Bank (“Lender”).

       

      C.           Pursuant
to Section
15.12 of the Credit Agreement, Lender has designated Agent as its agent
for taking certain actions under the Loan Agreement.

       

      D.           Credit
Parties have requested that Agent agree to make certain amendments to the Credit
Agreement.  Agent has agreed to this request on the conditions set
forth in this Agreement.

       

      E.           Pursuant
to the terms and conditions of this Agreement, Credit Parties and Agent have
agreed to amend certain provisions of the Credit Agreement.

       

      NOW,
THEREFORE, in consideration of the premises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as
follows:

       

      AGREEMENT

       

      ARTICLE
I -
DEFINITIONS

       

      1.01       Definitions.  The
following definition is added to Section 1.2 of the Credit Agreement in the
appropriate alphabetical order:

       

      “Second Amendment
Date” shall mean April 14, 2009”.

       

      1.02       General
Terms.  Capitalized terms used in this Agreement are defined in
the Credit Agreement, as amended hereby, unless otherwise stated.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      ARTICLE
II– WAIVER AND
CONSENT

       

      2.01        Waiver.

       

      (a)           The
following Events of Default have occurred and are continuing under the Credit
Agreement:

       

      (i)           the
failure of Borrower to comply with the Fixed Charge Coverage Ratio covenant set
forth in Section 1 of Annex I to the Loan Agreement for the Test Period ending
December 31, 2008;

       

      (ii)          the
failure of Borrower to notify Lender of Borrower’s name change to Neogenomics
Laboratories, Inc. and to obtain Lender’s prior consent to the related amendment
to Borrower’s Articles of Incorporation;

       

      (iii)         the
failure of the Credit Parties to obtain Lender’s prior written consent to the
amendment of the Guarantor’s By-Laws to allow for a Board of Directors of up to
eight members;

       

      (iv)         the
failure of the Credit Parties to notify Lender the filing by Borrower of a
complaint against Thomas Schofield, a former employee of the Borrower ((i),
(ii), (iii) and (iv) collectively hereinafter referred to as the “Specified Events of
Default”).

       

      (b)           Subject
to the conditions contained herein, Agent hereby waives the Specified Events of
Default.  Except as expressly set forth herein with respect to the
Specified Events of Default, this letter agreement shall not be deemed to be a
waiver of any Default or Events of Default.  The waiver set forth
herein shall not preclude the future exercise of any other right, power, or
privilege available to Agent or Lender whether under the Credit Agreement, the
Loan Documents or otherwise.

       

      2.02       Consent
to Alter By-Laws of the Borrower.  Notwithstanding
the terms of Section
9.7 of the Credit Agreement to the contrary, Agent consents to the
amendment and restatement of the Bylaws of Borrower in the form and substance of
the proposed by-laws attached hereto as Exhibit A.

       

      2.03       Consent
to Alter By-Laws of the Guarantor.  Notwithstanding
the terms of Section
9.7 of the Credit Agreement to the contrary, Agent consents to the
amendment and restatement of the Bylaws of Guarantor in the form and substance
of the proposed by-laws attached hereto as Exhibit B.

       

      ARTICLE
III -
AMENDMENTS

       

      3.01       Amendments
to Annex I of the Credit Agreement.  Effective as of the
Effective Date, Annex
I of the Credit Agreement is hereby amended by:

       

      (a)           Deleting
Section 3 of Annex
I in its entirety and replacing it with the following:

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                3)

              	
                Minimum
      Liquidity

              

      

       

      For the
period from the Second Amendment Date through and including December 31, 2009,
the Minimum Liquidity shall not be less than $500,000.

       

      (b)          deleting
the definition of Fixed Charge Coverage Ratio in Annex I in its
entirety and replacing it with the following:

       

      “Fixed Charge Coverage
Ratio” shall mean for Borrower collectively on a consolidated basis (a)
as of any date of determination occurring during the period from the Closing
Date through and including the Second Amendment Date the ratio of (i) Adjusted
EBITDA for the Test Period ended as of such date to (ii) Fixed charges for the
Test Period ended on such date; provided, that, solely for
purposes of calculating the Fixed Charge Coverage Ratio for the Test Periods
ending January 31, 2009 and February 28, 2009, the amount of Adjusted EBITDA for
such Test Periods shall be increased by an amount equal to the sum of (A)
$90,000 with respect to recruiting expenses, plus (B) $309,400
with respect to write-offs of bad debt, plus (C) $56,000 with
respect to bonus accrual, (b) as of any date of determination occurring during
the period after the Second Amendment Date to and including December 31, 2009
the ratio of (i) the sum of Adjusted EBITDA for the Test Period ended as of
such date plus
an amount equal to the sum of unrestricted cash on hand, unrestricted Cash
Equivalents and unused Availability as of the last day of the Test Period ended
as of such date, to (ii) Fixed Charges for the Test Period ended as of such
date; and (c) as of any date of determination occurring after December 31, 2009,
the ratio of (i) Adjusted EBITDA for the Test Period ended as of such date
to (ii) Fixed Charges for the Test Period ended as of such date.

       

      (c)          deleting
the definition of Fixed Charges in Annex I in its
entirety and replacing it with the following:

       

      “Fixed
Charges” shall mean, for any period, the sum of the following for Borrower
collectively on a consolidated basis for such period:  (a) Total Debt
Service, (b) un-financed Capital Expenditures paid in cash, (c) income taxes
paid in cash or accrued, and (d) dividends and Distributions paid or accrued or
declared (except for Accumulated Distributions from previous Accumulated
Distribution Fiscal Quarters); reduced by the amount of any equity contributions
received by the Borrower in cash during such period; provided that the amount of
such reduction shall not exceed the amount of unfinanced Capital Expenditures
paid for by Borrower in cash during such period.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      3.02       Amendment
to Definition of Permitted Indebtedness.  Effective as of
the Effective Date, subsection (iii) of the definition of “Permitted
Indebtedness” set forth in Section 1.2 of the Credit Agreement is hereby amended
and restated in its entirety to read as follows:

       

      “(iii)
Capitalized Lease Obligations incurred after the Closing Date and Indebtedness
incurred to purchase Goods and secured by purchase money Liens constituting
Permitted Liens: (A) in aggregate amount outstanding at any time not to exceed
$4,000,000, provided, that,  (1) the debt service
for such Indebtedness shall not exceed $1,500,000 for any twelve (12) month
period and (2) upon the incurrence of such Indebtedness and after giving effect
thereto no Default or Event of Default shall exist and be continuing and (B) in
an aggregate amount in excess of $4,000,000, provided, that, (1) ten (10)
Business Days prior to the incurrence of such Indebtedness Borrower shall have
provided pro forma financial statements along with any other supporting
documentation required by Lender evidencing that Borrower would have been in
compliance with the financial covenants set forth on Annex 1 hereto for the
immediately preceding Test Period (as defined on Annex 1 hereto), if such
Indebtedness had been incurred on the first day of such Test Period, (2) prior
to the incurrence of such Indebtedness Borrower shall have received Lender’s
written confirmation of its agreement with such pro forma financial statements;
and (3) upon the incurrence of such Indebtedness and after giving effect thereto
no Default or Event of Default shall exist and be continuing,”

       

      3.03       Representation
and Warranties Updates.  Effective as of
the Effective Date, Article VII of the Credit Agreement is hereby amended
by:

       

      (a)          Subsection
(iv) of Section 7.5 is hereby deleted and replaced its entirety with the
following:

       

      “(iv) a
party to any contract with any Affiliate other than as set forth on Schedule 7.5, except
for employment agreements, option agreements, confidentiality agreements,
non-solicitation/non-competition agreements and other compensation, severance or
consulting arrangements with directors or officers in the ordinary course of
business that are on terms at least as favorable to such Credit Party as would
be the case in an arm’s length transaction between unrelated parties of equal
bargaining power and under which payments due from Credit Parties are not more
than $500,000 per annum per arrangement.

       

      (b)          Subsection
(i) of Section 7.16 is hereby deleted and replaced its entirety with the
following:

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      “(i)
there are no existing or proposed agreements,  arrangements,
understandings or transactions between any Credit Party and any of such Credit
Party’s officers, members, managers, directors, stockholders, partners, other
interest holders, employees or Affiliates or any members of their respective
immediate families, other than employment agreements, option agreements,
confidentiality agreements, non-solicitation/non-competition agreements and
other compensation, severance or consulting arrangements with directors or
officers in the ordinary course of business that are on terms at least as
favorable to such Credit Party as would be the case in an arm’s length
transaction between unrelated parties of equal bargaining power and under which
payments due from Credit Parties are not more than $500,000 per annum per
arrangement.”

       

      3.04       Schedules.

       

      The
schedules to the Credit Agreement are deleted and replaced in their entirety
with the amended and restated schedules attached to this Agreement as Exhibit
C.

       

      ARTICLE
IV- CONDITIONS
PRECEDENT

       

      4.01       Conditions
to Effectiveness.  The effectiveness
of this Agreement against Lender is subject to the satisfaction of the following
conditions precedent in a manner satisfactory to Agent in its sole discretion,
unless specifically waived in writing by Agent:

       

      (a)           Agent
shall have received this Agreement duly executed by each party thereto;
and

       

      (b)           Agent
shall have received the Amendment Fee (as hereinafter defined).

       

      ARTICLE
V-
RATIFICATIONS, REPRESENTATIONS AND WARRANTIES

       

      5.01       Ratifications.  The terms and
provisions set forth in this Agreement shall modify and supersede all
inconsistent terms and provisions set forth in the Credit Agreement and the Loan
Documents, and, except as expressly modified and superseded by this Agreement,
the terms and provisions of the Credit Agreement and the Loan Documents are
ratified and confirmed and shall continue in full force and
effect.  The Credit Parties hereby ratify and confirm that the Liens
granted under the Credit Agreement secure all obligations and indebtedness now,
hereafter or from time to time made by, owing to or arising in favor of Lender
pursuant to the Loan Documents (as now, hereafter, or from time to time
amended).  Credit Parties and Agent agree that the Credit Agreement
and the Loan Documents, as amended hereby, shall continue to be legal, valid,
binding and enforceable in accordance with their respective terms.

       

      5.02       Representations
and Warranties.  The Credit
Parties hereby represent and warrant to Agent that:

       

      (a)           The
representations and warranties made by Borrower (other than those made as of a
specific date) contained in the Credit Agreement, as amended hereby, and each
Loan Document are true and correct in all material respects (except that, for
those representations and warranties already qualified by concepts of
materiality, those representations and warranties shall be true and correct in
all respects) on and as of the date hereof and as of the date of execution
hereof as though made on and as of each such date;

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b)           No
Default or Event of Default under the Credit Agreement, as amended hereby, has
occurred and is continuing, except for the Specified Events of
Default;

       

      (c)           Other
than as contemplated hereby, Borrower has not amended its certificate of
incorporation or bylaws (or any other equivalent governing agreement or
document), as applicable, since the date of the Credit Agreement.

       

      ARTICLE
VI- AMENDMENT
FEE

       

      6.01       Amendment
Fee.  Borrower agrees to pay to Lender $25,000 as an amendment
fee (the “Amendment
Fee”), which fee shall be due and payable on the date
hereof.  Borrower hereby authorizes Agent to charge such fee as an
Advance on the date hereof and shall be fully earned by Lender when so
charged.

       

      ARTICLE
VII-
MISCELLANEOUS PROVISIONS

       

      7.01       Survival
of Representations and Warranties.  All
representations and warranties made in the Credit Agreement, or any Loan
Document, including, without limitation, any document furnished in connection
with this Agreement, shall survive the execution and delivery of this Agreement
and the Loan Documents, and no investigation by Agent or Lender or any closing
shall affect the representations and warranties or the right of Agent or Lender
to rely upon them.

       

      7.02       Reference
to Credit Agreement.  Each of the
Credit Agreement and the Loan Documents, and any and all Loan Documents,
documents or instruments now or hereafter executed and delivered pursuant to the
terms hereof or pursuant to the terms of the Credit Agreement, as amended
hereby, are hereby amended so that any reference in the Credit Agreement and
such Loan Documents to the Credit Agreement shall mean a reference to the Credit
Agreement, as amended hereby.

       

      7.03       Expenses
of Agent or Lender.  As provided in
the Credit Agreement, the Credit Parties agree to pay on demand all costs and
expenses incurred by each of Agent and Lender in connection with the
preparation, negotiation, and execution of this Agreement and the Loan Documents
executed pursuant hereto and any and all amendments, modifications, and
supplements thereto, including, without limitation, the reasonable costs and
fees of Agent and Lender’s legal counsel, and all costs and expenses incurred by
Agent and Lender in connection with the enforcement or preservation of any
rights under the Credit Agreement, as amended hereby, or any Loan Documents,
including, without, limitation, the reasonable costs and fees of Agent and
Lender’s legal counsel.

       

      7.04       Severability.  Any provision of
this Agreement held by a court of competent jurisdiction to be invalid or
unenforceable shall not impair or invalidate the remainder of this Agreement and
the effect thereof shall be confined to the provision so held to be invalid or
unenforceable.

       

      7.05       Successors
and Assigns.  This Agreement is
binding upon and shall inure to the benefit of Agent, Lender and Credit Parties
and their respective successors and assigns, except that Credit Parties may not
assign or transfer any of their rights or obligations hereunder without the
prior written consent of Agent.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      7.06       Counterparts.  This Agreement
may be executed in one or more counterparts, each of which when so executed
shall be deemed to be an original, but all of which when taken together shall
constitute one and the same instrument.  Any signature delivered by a
party by facsimile or other electronic transmission shall be deemed to be an
original signature hereto.

       

      7.07       Effect of
Waiver.  No consent or
waiver, express or implied, by Agent or Lender to or for any breach of or
deviation from any covenant or condition by Borrower shall be deemed a consent
to or waiver of any other breach of the same or any other covenant, condition or
duty.

       

      7.08       Headings.  The headings,
captions, and arrangements used in this Agreement are for convenience only and
shall not affect the interpretation of this Agreement.

       

      7.09       Applicable
Law.  THIS AGREEMENT
AND ALL LOAN DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN
MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE CHOICE OR LAW SET FORTH IN THE CREDIT
AGREEMENT.

       

      7.10       Final
Agreement.  THE CREDIT
AGREEMENT AND THE LOAN DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE
EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE
THIS AGREEMENT IS EXECUTED.  THE CREDIT AGREEMENT AND THE LOAN
DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  NO
MODIFICATION, RESCISSION, WAIVER, RELEASE OR AGREEMENT OF ANY PROVISION OF THIS
AGREEMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY THE CREDIT
PARTIES AND AGENT.

       

      7.11       Release.  EACH CREDIT PARTY
HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET,
CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE
ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE
“OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE
FROM AGENT OR LENDER.  EACH CREDIT PARTY HEREBY VOLUNTARILY AND
KNOWINGLY RELEASES AND FOREVER DISCHARGES AGENT, LENDER, AND ANY OF ITS OR THEIR
RESPECTIVE PREDECESSORS, AGENTS, ATTORNEYS, EMPLOYEES, AFFILIATES, SUCCESSORS
AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION,
DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR
CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE
THE DATE THIS AGREEMENT IS EXECUTED, WHICH BORROWER MAY NOW OR HEREAFTER HAVE
AGAINST AGENT, LENDER, OR ANY OF ITS RESPECTIVE PREDECESSORS, ATTORNEYS, AGENTS,
EMPLOYEES, AFFILIATES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF
WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING, WITHOUT
LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE
OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT OR LOAN DOCUMENTS, AND
NEGOTIATION FOR AND EXECUTION OF THIS AGREEMENT.

       

      [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, this Agreement has been executed and is effective as of the
date first written above.

       

      
        	 
      	
                BORROWER:

              	 
      
	 
      	 
      	 
      
	 
      	
                NEOGENOMICS
      LABORATORIES, INC.,

              	 
      
	 
      	
                a
      Florida corporation

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/Steven C. Jones

              	 
      
	 
      	
                Name: 

              	
                Steven C. Jones

              	 
      
	 
      	
                Title:

              	
                Chief Financial Officer

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                GUARANTOR:

              	 
      
	 
      	 
      	 
      
	 
      	
                NEOGENOMICS,
      INC., a Nevada corporation

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/Steven C. Jones

              	 
      
	 
      	
                Name:

              	
                Steven C. Jones

              	 
      
	 
      	
                Title:

              	
                Chief Financial Officer

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                CAPITALSOURCE
      FINANCE LLC, as Agent

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/Arturo J. Velez

              	 
      
	 
      	
                Name:

              	
                Arturo J. Velez

              	 
      
	 
      	
                Title:

              	
                Authorized Signatory

              	 
      

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
        EXHIBIT
A

      

      
        Bylaws
of Borrower

      

      [see
attached]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      AMENDED
AND RESTATED

      

      BYLAWS

      

      OF

      

      NEOGENOMICS
LABORATORIES, INC.

      (a
Florida Corporation)

      

      ARTICLE
I.  MEETINGS OF SHAREHOLDERS

       

      Section 1.  Annual
Meeting.  The annual meeting of the Shareholders of NeoGenomics
Laboratories, Inc. (the “Corporation”) shall
be held at the time and place designated by the Board of Directors of the
Corporation.  The annual meeting shall be held within four months
after the close of the Corporation's fiscal year.  The annual meeting
of Shareholders for any year shall be held no later than thirteen months after
the last preceding annual meeting of Shareholders.  Business
transacted at the annual meeting shall include the election of Directors of the
Corporation.

       

      Section 2.  Special
Meetings.  Special meetings of the Shareholders shall be held
when directed by the President or the Board of Directors, or when requested in
writing by the holders of not less than ten percent of all the shares entitled
to vote at the meeting.  A meeting requested by Shareholders shall be
called for a date not less than ten nor more than sixty days after the request
is made, unless the Shareholders requesting the meeting designate a later
date.  The call for the meeting shall be issued by the Secretary,
unless the President, the Board of Directors, or the Shareholders requesting the
meeting shall designate another person to do so.

       

      Section 3.  Place.  Meetings
of Shareholders may be held within or without the State of Florida.

       

      Section 4.  Notice.  Written
notice stating the place, day and hour of the meeting and, in the case of a
special meeting, the purpose or purposes for which the meeting is called shall
be delivered not less than ten nor more than sixty days before the meeting,
either personally or by first class mail, by or at the direction of the
President, the Secretary, or the Officer or persons calling the meeting to each
Shareholder of record entitled to vote at such meeting.  If mailed,
such notice shall be deemed to be delivered when deposited in the United States
mail addressed to the Shareholder at his address as it appears on the stock
transfer books of the Corporation, with postage thereon prepaid.

       

      Section 5.  Notice of Adjourned
Meetings.  When a meeting is adjourned to another time or
place, it shall not be necessary to give any notice of the adjourned meeting if
the time and place to which the meeting is adjourned are announced at the
meeting at which the adjournment is taken, and at the adjourned meeting any
business may be transacted that might have been transacted on the original date
of the meeting.  if, however, after the adjournment the Board of
Directors fixes a new record date for the adjourned meeting, a notice of the
adjourned meeting shall be given as provided in this section to each Shareholder
of record on the new record date entitled to vote at such meeting.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Section 6.  Fixing Record
Date.  For the purpose of determining Shareholders entitled to
notice of or to vote at any meeting of Shareholders or any adjournment thereof,
or entitled to receive payment of any dividend, or in order to make a
determination of Shareholders for any other purpose, the Board of Directors
shall fix in advance a date as the record date for any determination of
Shareholders, such date in any case to be not more than sixty days and, in case
of a meeting of Shareholders, not less than ten days, prior to the date on which
the particular action requiring such determination of Shareholders is to be
taken.  When a determination of Shareholders entitled to vote at any
meeting of Shareholders has been made as provided in this section, such
determination shall apply to any adjournment thereof, unless the Board of
Directors fixes a new record date for the adjourned meeting.

       

      Section
7.  Voting
Record.  The Officers or agent having charge of the stock
transfer books for shares of the Corporation shall make, at least ten days
before each meeting of Shareholders, a complete list of the Shareholders
entitled to vote at such meeting or any adjournment thereof, with the address of
and the number and class and series, if any, of shares held by
each.  The list, for a period of ten days prior to such meeting, shall
be kept on file at the registered office of the Corporation, at the principal
place of business of the Corporation or at the office of the transfer agent or
registrar of the Corporation and any Shareholder shall be entitled to inspect
the list at any time during the usual business hours.  The list shall
also be produced and kept open at the time and place of the meeting and shall be
subject to the inspection of any Shareholder at any time during the
meeting.

       

      If the requirements of this section
have not been substantially complied with, the meeting on demand of any
Shareholder in person or by proxy, shall be adjourned until the requirements are
complied with.  If no such demand is made, failure to comply with the
requirements of this section shall not affect the validity of any action taken
at such meeting.

       

      Section
8.  Shareholder
Quorum and Voting.  A majority of the shares entitled to vote,
represented in person or by proxy, shall constitute a quorum at a meeting of
Shareholders.  When a specified item of business is required to be
voted on by a class or series of stock, a majority of the shares of such class
or series shall constitute a quorum for the transaction of such item of business
by that class or series.

       

      If a quorum is present, the affirmative
vote of the majority of the shares represented at the meeting and entitled to
vote on the subject matter shall be the act of the Shareholders unless otherwise
provided by law.

       

      After a quorum has been established at
a Shareholders' meeting, the subsequent withdrawal of Shareholders, so as to
reduce the number of Shareholders entitled to vote at the meeting below the
number required for a quorum, shall not affect the validity of any action taken
at the meeting or any adjournment thereof.

       

      Section
9.  Voting
of Shares.  Each outstanding share, regardless of class, shall
be entitled to one vote on each matter submitted to a vote at a meeting of
Shareholders.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Treasury shares, shares of stock of the
Corporation owned by another corporation the majority of the voting stock of
which is owned or controlled by the Corporation, and shares of stock of the
Corporation held by it in a fiduciary capacity shall not be voted, directly or
indirectly, at any meeting, and shall not be counted in determining the total
number of outstanding shares at any given time.

       

      A Shareholder may vote either in person
or by proxy executed in writing by the Shareholder or his duly authorized
attorney-in-fact.

       

      At each election for Directors every
Shareholder entitled to vote at such election shall have the right to vote, in
person or by proxy, the number of shares owned by him for as many persons as
there are Directors to be elected at that time and for whose election he has a
right to vote.

       

      Shares standing in the name of another
corporation, domestic or foreign, may be voted by the Officer, agent, or proxy
designated by the Bylaws of the corporate Shareholder; or, in the absence of any
applicable Bylaw, by such person as the Board of Directors of the corporate
Shareholder may designate.  Proof of such designation may be made by
presentation of a certified copy of the Bylaws or other instrument of the
corporate Shareholder.  In the absence of any such designation, or in
case of conflicting designation by the corporate Shareholder, the Chairman of
the Board, Executive Chairman, the President, any Vice President, the Secretary
and the Treasurer of the corporate Shareholder shall be presumed to possess, in
that order, authority to vote such shares.

       

      Shares held by an administrator,
executor, guardian or conservator may be voted by him, either in person or by
proxy, without a transfer of such shares into his name.  Shares
standing in the name of a trustee may be voted by him, either in person or by
proxy, but no trustee shall be entitled to vote shares held by him without a
transfer of such shares into his name.

       

      Shares standing in the name of a
receiver may be voted by such receiver, and shares held by or under the control
of a receiver may be voted by such receiver without the transfer thereof into
his name if authority so to do be contained in an appropriate order of the court
by which such receiver was appointed.

       

      A Shareholder whose shares are pledged
shall be entitled to vote such shares until the shares have been transferred
into the name of the pledgee, and thereafter the pledgee or his nominee shall be
entitled to vote the shares so transferred.

       

      On and after the date on which a
written notice of redemption of redeemable shares has been mailed to the holders
thereof and a sum sufficient to redeem such shares has been deposited with a
bank or trust company with irrevocable instruction and authority to pay the
redemption price to the holders thereof upon surrender of certificates therefor,
such shares shall not be entitled to vote on any matter and shall not be deemed
to be outstanding shares.

       

      Section
10.  Proxies.  Every
Shareholder entitled to vote at a meeting of Shareholders or to express consent
or dissent without a meeting or any Shareholder's duly authorized
attorney-in-fact may authorize another person or persons to act for him by
proxy.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Every proxy must be signed by the
Shareholder or his attorney-in-fact.  No proxy shall be valid after
the expiration of eleven months from the date thereof unless otherwise provided
in the proxy.  Every proxy shall be revocable at the pleasure of the
Shareholder executing it, except as otherwise provided by law.

       

      The authority of the holder of a proxy
to act shall not be revoked by the incompetence or death of the Shareholder who
executed the proxy unless, before the authority is exercised, written notice of
an adjudication of such incompetence or of such death is received by the
corporate officer responsible for maintaining the list of
Shareholders.

       

      If a proxy for the same shares confers
authority upon two or more persons and does pot otherwise provide, a majority of
them present at the meeting, or if only one is present then that one, may
exercise all the powers conferred by the proxy; but if the proxy holders present
at the meeting are equally divided as to the right and manner of voting in any
particular case, the voting of such shares shall be prorated.

       

      If a proxy expressly provides, any
proxy holder may appoint in writing a substitute to act in his
place.

       

      Section
11.  Voting
Trusts.  Any number of Shareholders of the Corporation may
create a voting trust for the purpose of conferring upon a trustee or trustees
the right to vote or otherwise represent their shares, as provided by
law.  Where the counterpart of a voting trust agreement and the copy
of the record of the holders of voting trust certificates has been deposited
with the Corporation as provided by law, such documents shall be subject to the
same right of examination by a Shareholder of the Corporation, in person or by
agent or attorney, as are the books and records of the Corporation, and such
counterpart and such copy of such record shall be subject to examination by any
holder of record of voting trust certificates either in person or by agent or
attorney, at any reasonable time for any proper
purpose.

       

      Section
12.  Shareholders'
Agreements.  Two or more Shareholders of the Corporation may
enter into an agreement or agreements providing for the exercise of voting
rights in the manner provided in the agreement(s) or relating to any phase of
the affairs of the Corporation as provided by law.  Nothing therein
shall impair the right of the Corporation to treat the Shareholders of record as
entitled to vote the shares standing in their names.

       

      Section
13.  Action
Without a Meeting.  Any action required to be taken at any
annual or special meeting of Shareholders of the Corporation or any action which
may be taken at any annual or special meeting of Shareholders, may be taken
without a meeting, without prior notice, and without a vote if a consent in
writing, setting forth the action so taken, shall be signed by the holders of
outstanding stock having not less than the minimum number of votes that would be
necessary to authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted.  If any class of
shares is entitled to vote thereon as a class, such written consent shall be
required of the holders of a majority of the shares of each class entitled to
vote as a class thereon and of the total shares entitled to vote
thereon.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Within ten (10) days after first
obtaining such authorization by written consent, notice must be given to those
Shareholders who have not consented in writing.  The notice shall
fairly summarize the material features of the authorized action and, if the
action be a merger, consolidation, or sale or exchange of assets for which
dissenters rights are provided, the notice shall contain a clear statement of
the right of Shareholders dissenting therefrom to be paid the fair value of
their shares upon compliance with the Florida Statutes provision concerning
dissenters rights of Shareholders.

       

      ARTICLE
II.  DIRECTORS

       

      Section
1.  Function.  All
corporate powers shall be exercised by or under the authority of, and the
business and affairs of the Corporation shall be managed under the direction of,
the Board of Directors.

       

      Section
2.  Qualification.  Directors
need not be residents of this state or Shareholders of the
Corporation.

       

      Section
3.  Compensation.  The
Board of Directors shall have authority to fix the compensation of
Directors.

       

      Section
4.  Duties
of Directors.  A Director shall perform his duties as a
Director, including his duties as a member of any committee of the Board upon
which he may serve, in good faith, in a manner he reasonably believes to be in
the best interests of the Corporation, and with such care as an ordinarily
prudent person in a like position would use under similar
circumstances.

       

      In performing his duties, a Director
shall be entitled to rely on information, opinions, reports or statements,
including financial.  statements and other financial data, in each
case prepared or presented by:

       

      (a)  one
or more Officers or employees of the Corporation whom the Director reasonably
believes to be reliable and competent in the matters presented,

       

      (b)  counsel,
public accountants or other persons as to matters which the Director reasonably
believes to be within such person's professional or expert competence,
or

      
      

      (c)  a
committee of the Board upon which he does not serve, duly designated in
accordance with a provision of the Articles of Incorporation or the Bylaws, as
to matters within its designated authority, which committee the Director
reasonably believes to merit confidence.

      
      

      A Director shall not be considered to
be acting in good faith if he has actual knowledge concerning the matter in
question that would cause such reliance described above to be
unwarranted.

       

      A person who performs his duties in
compliance with this section shall have no liability by reason of being or
having been a Director of the Corporation.

       

      Section
5.  Presumption
of Assent.  A Director of the Corporation who is present at a
meeting of its Board of Directors at which action on any corporate matter is
taken shall be presumed to have assented to the action taken unless he votes
against such action or abstains from voting in respect thereto because of an
asserted conflict of interest.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Section
6.  Director
Conflicts of Interest.  No contract or other transaction
between the Corporation and one or more of its Directors or any other
corporation, firm, association or entity in which one or more of the Directors
are Directors or Officers or are financially interested, shall be either void or
voidable because of such relationship or interest or because such Director or
Directors are present at the meeting of the Board of Directors or a committee
thereof which authorizes, approves or ratifies such contract or transaction or
because his or their votes are counted for such purpose,
if:

       

      (a)  the
fact of such relationship or interest is disclosed or known to the Board of
Directors or committee which authorizes, approves or ratifies the contract or
transaction by a vote or consent sufficient for the purpose without counting the
votes or consents of such interested Directors; or

       

      (b)  the
fact of such relationship or interest is disclosed or known to the Shareholders
entitled to vote and they authorize, approve or ratify such contract or
transaction by vote or written consent; or

       

      (c)  the
contract or transaction is fair and reasonable as to the Corporation at the time
it is authorized by the Board, a committee or the Shareholders.

       

      Common or interested directors may be
counted in determining the presence of a quorum at a meeting of the Board of
Directors or a committee thereof which authorizes, approves or ratifies such
contract or transaction.

      

      Section
7.  Executive
and Other Committees.  The Board of Directors, by resolution
adopted by a majority of the full Board of Directors, may designate from among
its members an executive committee and one or more other committees each of
which, to the extent provided in such resolution shall have and may exercise all
the authority of the Board of Directors, except that no committee shall have the
authority to:

       

      (a)  approve
or recommend to Shareholders actions or proposals required by law to be approved
by Shareholders;

       

      (b)  designate
candidates for the office of Director, for purposes of proxy solicitation or
otherwise;

       

      (c)  fill
vacancies on the Board of Directors or any committee thereof;

       

      (d)  amend
the Bylaws;

       

      (e)  authorize
or approve the reacquisition of shares unless pursuant to a general formula or
method specified by the Board of Directors; or

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      (f)  authorize
or approve the issuance or sale of, or any contract to issue or sell, shares or
designate the terms of a series of a class of shares, except that the Board of
Directors" having acted regarding general authorization for the issuance or sale
of shares, or any contract therefor, and, in the case of a series, the
designation thereof, may, pursuant to a general formula or method specified by
the Board of Directors, by resolution or by adoption of a stock option or other
plan, authorize a committee to fix the terms of any contract for the sale of the
shares and to fix the terms upon which such shares may be issued or sold,
including, without limitation, the price, the rate or manner of payment of
dividends, provisions for redemption, sinking fund, conversion, voting or
preferential rights, and provisions for other features of a class of shares, or
a series of a class of shares, with full power in such committee to adopt any
final resolution setting forth all the terms thereof and to authorize the
statement of the terms of a series for filing with the Department of
State.

       

      The Board of Directors, by resolution
adopted in accordance with this section, may designate one or more Directors as
alternate members of any such committee, who may act in the place and stead of
any absent member or members at any meeting of such committee.

       

      Section
8.  Place
of Meetings.  Regular and special meetings by the Board of
Directors may be held within or without the State of
Florida.

       

      Section
9.  Time,
Notice and Call of Meetings.  Regular meetings of the Board of
Directors shall be held without notice immediately following the annual meeting
of Shareholders.  Written notice of the time and place of special
meetings of the Board of Directors shall be given to each Director by either
personal delivery, telegram, facsimile or email at least two (2) days before the
meeting or by notice mailed to the Director at least five days before the
meeting.

       

      Notice of a meeting of the Board of
Directors need not be given to any Director who signs a waiver of notice either
before or after the meeting.  Attendance of a Director at a meeting
shall constitute a waiver of notice of such meeting and waiver of any and all
objections to the place of the meeting, the time of the meeting, or the manner
in which it has been called or convened, except when a Director states, at the
beginning of the meeting, any objection to the transaction of business because
the meeting is not lawfully called or convened.

       

      Neither the business to be transacted
at, nor the purpose of, any regular or special meeting of the Board of Directors
need be specified in the notice or waiver of notice of such
meeting.

       

      A majority of the Directors present,
whether or not a quorum exists, may adjourn any meeting of the Board of
Directors to another time and place.  Notice of any such adjourned
meeting shall be given to the Directors who were not present at the time of the
adjournment and, unless the time and place of the adjourned meeting are
announced at the time of the adjournment, to the other Directors.

       

      Meetings of the Board of Directors may
be called by the Chairman of the Board, by the Executive Chairman, the President
of the Corporation, or by any two Directors.

       

      Members of the Board of Directors may
participate in a meeting of such Board by means of a conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other at the same time.  Participation by
such means shall constitute presence in person at a meeting.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Section
10.  Action
Without a Meeting.  Any action required to be taken at a
meeting of the Directors of the Corporation, or any action which may be taken at
a meeting of the Directors or a committee thereof, may be taken without a
meeting if a consent in writing, setting forth the action so to be taken, signed
by all of the Directors, or all the members of the committee, as the case may
be, is filed in the minutes of the proceedings of the Board or of the
committee.  Such consent shall have the same effect as a unanimous
vote.

       

      Section
11.  Directors
Emeritus.  The Board of Directors, by resolution adopted by a
majority of the full Board of Directors, may, from time to time, designate and
appoint one or more persons who have contributed in a significant way to the
success of the Corporation and who have previously served as directors of the
Corporation or whose terms are expiring and who have not been nominated for
reelection to the Board of Directors as “Directors
Emeritus”.  Directors Emeritus may be recognized as such in any public
announcements, advertisements, brochures and other descriptive material
concerning the Corporation and shall be privileged to attend meetings of the
Board of Directors and to participate in the consideration and discussion of
matters coming before the Board of Directors, but they shall have no official
status as directors, their presence at any meeting shall be disregarded for the
purpose of determining the presence of a quorum, and they shall have no vote on
matters determined by the Board of Directors.  The Board of Directors
shall have authority to fix the compensation of Directors Emeritus, including
reimbursement for expenses incurred in attending meetings of the Board of
Directors.

       

      Section
12.  Size
of Board of Directors.  The number of directors shall be
determined from time to time by resolution of the Board of Directors, provided
the Board of Directors shall consist of at least one member.  No
reduction of the authorized number of directors shall have the effect of
removing any director before that director’s term of office
expires.

       

      ARTICLE
III.  OFFICERS

       

      Section
1.  Officers.  The
Officers of the Corporation shall consist of an Executive Chairman, a President,
a Secretary and a Treasurer, each of whom shall be elected by the Board of
Directors.  Such other Officers and Assistant Officers and agents
as-may be deemed necessary may be elected or appointed by the Board of Directors
from time to time.  Any two or more offices may be held by the same
person.

       

      Section
2.  Authority
and Duties.  All Officers of the Corporation shall respectively
have such authority and perform such duties in the management of the business of
the Corporation as may be designated from time to time by the Board of Directors
and, to the extent not so provided, as generally pertain to their respective
offices, subject to the control of the Board of
Directors.

       

      Section
3.  Removal
of Officers.  Any Officer or agent elected or appointed by the
Board of Directors may be removed by the Board of Directors, with or without
cause, whenever in its judgment the best interests of the Corporation will be
served thereby.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Any Officer or agent elected by the
Shareholders may be removed only by vote of the Shareholders, unless the
Shareholders shall have authorized the Directors to remove such officer or
agent.

       

      Any vacancy, however occurring, in any
office may be filled by the Board of Directors, unless the Bylaws shall have
expressly reserved such power to the Shareholders.

       

      Removal of any Officer shall be without
prejudice to the contract rights, if any, of the person so removed; however,
election or appointment of an Officer or agent shall not of itself create
contract rights.

       

      Section
4.  Compensation.  The
compensation of the Executive Chairman, the President, the Secretary, the
Treasurer and such other Officers elected or appointed by the Board of Directors
shall be fixed by the Board of Directors and may be changed from time to time by
a majority vote of the Board.  The fact that an Officer is also a
Director shall not preclude such person from receiving compensation as either a
Director or Officer, nor shall it affect the validity of any resolution by the
Board of Directors fixing such compensation.  The Executive Chairman
shall have authority to fix the salaries of all employees of the Corporation
other than Officers elected or appointed by the Board of
Directors.

       

      ARTICLE
IV.  STOCK CERTIFICATES

       

      Section
1.  Issuance.  Every
holder of shares in the Corporation shall be entitled to have a certificate,
representing all shares to which he is entitled.  No certificate shall
be issued for any share until such share is fully
paid.

       

      Section
2.  Form.  Certificates
representing shares in the Corporation shall be signed by the President or any
Vice President and the Secretary or any Assistant Secretary and may be sealed
with the seal of the Corporation or a facsimile thereof.  The
signatures of the President or Vice President and the Secretary or Assistant
Secretary may be facsimiles if the certificate is manually signed on behalf of a
transfer agent or a registrar, other than the Corporation itself or an employee
of the Corporation.  In case any Officer who signed or whose facsimile
signature has been placed upon such certificate shall have ceased to be such
Officer before such certificate is issued, it may be issued by the Corporation
with the same effect as if he were such Officer at the date of its
issuance.

       

      Every certificate representing shares
which are restricted as to the sale, disposition or other transfer of such
shares shall state that such shares are restricted as to transfer and shall set
forth or fairly summarize upon the certificate, or shall state that the
Corporation will furnish to any Shareholder upon request and without charge a
full statement of, such restrictions.

       

      Each certificate representing shares
shall state upon the face thereof: the name of the Corporation; that the
Corporation is organized under the laws of this state; the name of the person or
persons to whom issued; the number and class of shares, and the designation of
the series, if any, which such certificate represents; and the par value of each
share represented by such certificate, or a statement that the shares are
without par value.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Section
3.  Transfer
of Stock.  The Corporation shall register a stock certificate
presented to it for transfer if the certificate is properly endorsed by the
holder of record or by his duly authorized attorney.

       

      Section
4.  Lost,
Stolen, or Destroyed Certificates.  The Corporation shall issue
a new stock certificate in the place of any certificate previously issued if the
holder of record of the certificate (a) makes proof in affidavit form that it
has been lost, destroyed or wrongfully taken; (b) requests the issue of a new
certificate before the Corporation has notice that the certificate has been
acquired by a purchaser for value in good faith and without notice of any
adverse claim; and (c) satisfies any other reasonable requirements imposed by
the Corporation, including bond in such form as the Corporation may direct, to
indemnify the Corporation, the transfer agent, and registrar against any claim
that may be made on account of the alleged loss, destruction or theft of a
certificate.

       

      ARTICLE
V.  BOOKS AND RECORDS

       

      Section
1.  Books
and Records.  The Corporation shall keep correct and complete
books and records of account and shall keep minutes of the proceedings of its
Shareholders, Board of Directors and committees of
Directors.

       

      The Corporation shall keep
at its registered office or principal place of business, or at the office of its
transfer agent or registrar, a record of its Shareholders, giving the names and
addresses of all Shareholders, and the number, class and series, if any, of the
shares held by each.

       

      Any books, records and
minutes may be in written form or in any other form capable of being converted
into written form within a reasonable time.

       

      Section
2.  Shareholders'
Inspection Rights.  Any person who shall have been a holder of
record of ten percent (10%) of the outstanding shares or of voting trust
certificates of capital stock therefor at least six months immediately preceding
his demand or shall be the holder of record of, or the holder of record of
voting trust certificates for, at least five percent of the outstanding shares
of any class or series of the Corporation, upon written demand stating the
purpose thereof, shall have the right to examine, in person or by agent or
attorney, at any reasonable time or times, for any proper purpose its relevant
books and records of accounts, minutes and records of Shareholders and to make
extracts therefrom.

       

      Section
3.  Financial
Information.  Not later than four (4) months after the close of
each fiscal year, the Corporation shall prepare a balance sheet showing in
reasonable detail the financial condition of the Corporation as of the close of
its fiscal year, and a profit and loss statement showing the results of the
operations of the Corporation during its fiscal year.  This
requirement may be modified by a resolution of the Shareholders not later than
four (4) months after the close of each fiscal year.

       

      Upon written request of any Shareholder
or holder of voting trust certificates for shares of the Corporation, the
Corporation shall mail to such Shareholder or holder of voting trust
certificates a copy of the most recent such balance sheet and profit and loss
statement.

       

      The balance sheets and profit and loss
statements shall be filed in the registered office of the Corporation in this
state, shall be kept for at least five years, and shall be subject to inspection
during business hours by any Shareholder or holder of voting trust certificates,
in person or by agent.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      ARTICLE
VI.  DIVIDENDS

       

      The Board of Directors of the
Corporation may, from time to time, declare and the Corporation may pay
dividends on its shares in cash, property or its own shares, except when the
Corporation is insolvent or when the payment thereof would render the
Corporation insolvent or when the declaration or payment thereof would be
contrary to any restrictions contained in the Articles of Incorporation, subject
to the following provisions:

       

      (a)  Dividends
in cash or property may be declared and paid, except as otherwise provided in
this section, only out of the unreserved and unrestricted earned surplus of the
Corporation or out of capital surplus, howsoever arising, but each dividend paid
out of capital surplus shall be identified as a distribution of capital surplus,
and the amount per share paid from such surplus shall be disclosed to the
Shareholders receiving the same concurrently with the distribution.

       

      (b)  Dividends
may be declared and paid in the Corporation's own treasury shares.

       

      (c)  Dividends
may be declared and paid in the Corporation's own authorized but unissued shares
out of any unreserved and unrestricted surplus of the Corporation upon the
following conditions:

       

      (1)  If
a dividend is payable in shares having a par value, such shares shall be issued
at not less than the par value thereof and there shall be transferred to stated
capital at the time such dividend is paid an amount of surplus equal to the
aggregate par value of the shares to be issued as a dividend.

       

      (2)  If
a dividend is payable in shares without par value, such shares shall be issued
at such stated value as shall be fixed by the Board of Directors by resolution
adopted at the time such dividend is declared, and there shall be transferred to
stated capital at the time such dividend is paid an amount of surplus equal to
the aggregate stated value so fixed in respect of such shares; and the amount
per share so transferred to stated capital shall be disclosed to the
Shareholders receiving such dividend concurrently with the payment
thereof.

       

      (3)  No
dividend payable in shares of any class shall be paid to the holders of shares
of any other class unless the Articles of Incorporation so provide or such
payment is authorized by the affirmative vote or the written consent of the
holders of at least a majority of the outstanding shares of the class in which
the payment is to be made.

       

      (d)  A
split-up or division of the issued shares of any class into a greater number of
shares of the same class without increasing the stated capital of the
Corporation shall not be construed to be a share dividend within the meaning of
this section.

       

      ARTICLE
VII.  CORPORATE SEAL

       

      The Board of Directors shall provide a
corporate seal which shall be circular in form and shall have inscribed thereon
the following:

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      NEOGENOMICS
LABORATORIES, INC.

      

      ARTICLE
VIII.  INDEMNIFICATION

       

      Section
1.  Certain
Definitions.  For the purposes of this Section, certain terms
and phrases used herein shall have the meanings set forth
below:

       

      (a)  The
term "enterprise" shall include, but not be limited to, any employee benefit
plan.

       

      (b)  An
"executive" shall mean any person, including a volunteer, who is or was a
director or officer of the Corporation or who is or was serving at the request
of the Corporation as a director or officer of another corporation, partnership,
joint venture, trust or other enterprise.

       

      (c)  The
term "expenses" shall include, but not be limited to, all costs and expenses
(including attorneys' fees and paralegal expenses) paid or incurred by an
executive, in, for or related to a proceeding or in connection with
investigating, preparing to defend, defending, being a witness in or
participating in a proceeding, including such costs and expenses incurred on
appeal.  Such attorneys' fees shall include, but not be limited to (a)
attorneys' fees incurred by an executive in any and all judicial or
administrative proceedings, including appellate proceedings, arising out of or
related to a proceeding; (b) attorneys' fees incurred in order to interpret,
analyze or evaluate that person's rights and remedies in a proceeding or under
any contracts or obligations which are the subject of such proceeding; and (c)
attorneys' fees to negotiate with counsel with any claimants, regardless of
whether formal legal action is taken against him.

       

      (d)  The
term "liability" shall include, but not be limited to, the obligation to pay a
judgment, settlement, penalty or fine (including an excise tax assessed with
respect to any employee benefit plan), and expenses actually and reasonably
incurred with respect to a proceeding.

       

      (e)  The
term "proceeding" shall include, but not be limited to, any threatened, pending
or completed action, suit or other type of proceeding, whether civil, criminal,
administrative or investigative and whether formal or informal, including, but
not limited to, an action by or in the right of any corporation of any type or
kind, domestic or foreign, or of any partnership, joint venture, trust, employee
benefit plan or other enterprise, whether predicated on foreign, federal, state
or local law, to which an executive is a party by reason of the fact that he is
or was or has agreed to become a director or officer of the Corporation or is
now or was serving at the request of the Corporation as a director or officer of
another corporation, partnership, joint venture, trust or other
enterprise.

       

      (f)  The
phrase "serving at the request of the Corporation" shall include, but not be
limited to, any service as a director or officer of the Corporation that imposes
duties on such person, including duties related to an employee benefit plan and
its participants or beneficiaries.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      (g)  The
phrase "not opposed to the best interests of the Corporation" describes the
actions of a person who acts in good faith and in a manner which he reasonably
believes to be in the best interests of the Corporation or the participants and
beneficiaries of an employee benefit plan.

       

      Section
2.  Primary
Indemnification.  The Corporation shall indemnify to the
fullest extent permitted by law, and shall advance expenses therefor, to any
executive who was or is a party to a proceeding against any liability incurred
in such proceeding, including any appeal thereof, unless a court of competent
jurisdiction establishes by judgment or other final adjudication that his
actions, or omissions to act, were material to the cause of action so
adjudicated and constitute: (a) a violation of the criminal law, unless the
executive had reasonable cause to believe his conduct was lawful or had no
reasonable cause to believe his conduct was unlawful; (b) a transaction from
which the executive derived an improper personal benefit; (c) in a case of
director, a circumstance under which the liability provisions of Section
607.0834; Florida Statutes, or any successor provision, are applicable; or (d)
willful misconduct or conscious disregard for the best interests of the
Corporation in a proceeding by or in the right of the Corporation to procure a
judgment in its favor or in a proceeding by or in the right of a
shareholder.  Notwithstanding the failure to satisfy conditions (a)
through (d) of this Section, the Corporation shall nevertheless indemnify an
executive pursuant to Sections 4 or 5 hereof unless a determination is
reasonably and promptly made pursuant to Section 3 hereof that the executive did
not meet the applicable standard of conduct set forth in Sections 4 or 5 of this
Article.

       

      Section
3.  Determination
of Right of Indemnification in Certain Cases.  Any
indemnification under Sections 4 or 5 of this Article (unless ordered by a
court) shall be made by the Corporation unless a determination is reasonably and
promptly made that the executive did not meet the applicable standard of conduct
set forth in Sections 4 or 5 of this Article.  Such determination
shall be made by: (a) the Board of Directors by a majority vote of a quorum
consisting of directors who were not parties to such proceeding; (b) if such a
quorum is not obtainable or, even if obtainable, by majority vote of a committee
duly designated by the Board of Directors (in which directors who are parties
may participate) consisting solely of two or more directors not at the time
parties to the proceeding; (c) by independent counsel (i) selected by the Board
of Directors prescribed in subparagraph (a) or the committee prescribed in
subparagraph (b), or (ii) if a quorum of the directors cannot be obtained under
subparagraph (a), and the committee cannot be designated under subparagraph (b),
selected by majority vote of the full Board of Directors (in which directors who
are parties may participate); or (d) by the shareholders by a majority vote of a
quorum consisting of shareholders who are not parties to such proceeding, or if
no such quorum is attainable, by a majority vote of the shareholders who were
not parties to such proceeding.  If the determination of the
permissibility of indemnification is made by independent legal counsel as set
forth in subparagraph (c) above, the other persons specified in this Section 3
shall evaluate the reasonableness of expenses.

       

      Section
4.  Proceeding
Other Than By Or In The Right of The Corporation.  The
Corporation shall indemnify any executive who was or is a party to any
proceeding (other than an action by, or in the right of, the Corporation)
against liability in connection with such proceeding, including any appeal
thereof, if he acted in good faith and in a manner he reasonably believed to be
in, or not opposed to, the best interests of the Corporation and, with respect
to any criminal proceeding, had no reasonable cause to believe his conduct was
unlawful.  The termination of any proceeding by judgment, order,
settlement or conviction or upon a plea of nolo contendere or its equivalent
shall not, of itself, create a presumption that the person did not act in good
faith and in a manner which he reasonably believed to be in, or not opposed to,
the best interests of the Corporation or, with respect to any criminal
proceeding, had reasonable cause to believe that his conduct was
unlawful.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Section
5.  Proceeding
By Or In The Right Of The Corporation. The Corporation shall indemnify
any executive who was or is' a party to any proceeding by or in the right of the
Corporation to procure a judgment in its favor against expenses and amounts paid
in settlement not exceeding, in the judgment of the Board of Directors, the
estimated expense of litigating the proceeding to conclusion, actually and
reasonably incurred in connection with the defense or settlement of such
proceeding, including any appeal thereof, if such person acted in good faith and
in manner which he reasonably believed to be in, or not opposed to, the best
interests of the Corporation, except that no indemnification shall be made under
this Section 5 in respect to any claim, issue or matter as to which such person
shall have been adjudged to be liable unless, and only to the extent that, the
court in which such proceeding was brought, or any other court of competent
jurisdiction, shall determine upon application that, despite the adjudication of
liability but in view of all circumstances of the case, such person is fairly
and reasonably entitled to indemnity for such expenses which such court shall
deem proper.

       

      Section
6.  Indemnification
Against Expenses of Successful Party.  Notwithstanding the
other provisions of this Section, to the extent that an executive is successful
on the merits or otherwise, including the dismissal of an action without
prejudice or the settlement of an action without admission of liability, in
defense of any proceeding or in defense of any claim, issue or matter therein,
the Corporation shall indemnify such executive against all expenses incurred in
connection with such defense.

       

      Section
7.  Advancement
of Expenses.  Notwithstanding anything in the Corporation's
Articles of Incorporation, these bylaws or any agreement to the contrary, if so
requested by an executive, the Corporation shall advance (within two (2)
business days of such request) any and all expenses relating to a proceeding (an
"expense
advance"), upon the receipt of a written undertaking by or on behalf of
such person to repay such expense advance if a judgment or other final
adjudication adverse to such person (as to which all rights of appeal have been
exhausted or lapsed) establishes that he, with respect to such proceeding, is
not eligible for indemnification under the provisions of this
Section.  Expenses incurred by other employees or agents of the
Corporation may be paid in advance upon such terms and conditions as the Board
of Directors deems appropriate.

       

      Section
8.  Right
of Executive to Indemnification Upon Application; Procedures Upon
Application.  Any indemnification or advancement of expenses
under this Section shall be made promptly upon the written request of the
executive, unless, with respect to a request under Section 4 or 5, a
determination is reasonably and promptly made under Section 3 of this Article
that such executive did not meet the applicable standard of conduct set forth in
Section 4 or 5 of this Article.  The right to indemnification or
advances as granted by this Section shall be enforceable by the executive in any
court of competent jurisdiction, if the claim is improperly denied, in whole or
in part, or if no disposition of such claim is made promptly.  The
executive's expenses incurred in connection with successfully establishing his
right to indemnification or advancement of expenses, in whole or in part, under
this Section shall also be indemnified by the
Corporation.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Section
9.  Court
Ordered Indemnification.  Notwithstanding the failure of the
Corporation to provide indemnification due to a failure to satisfy the
conditions of Section 2 of this Article, and despite any contrary determination
by the Corporation in the specific case under Sections 4 or 5 of this Article,
an executive of the Corporation who is or was a party to a proceeding may apply
for indemnification or advancement of expenses, or both, to the court conducting
the proceeding, to the circuit court, or to another court of competent
jurisdiction, and such court may order indemnification and advancement of
expenses, including expenses incurred in seeking court ordered indemnification
or advancement of expenses, if the court determines
that:

       

      (a)  The
executive is entitled to indemnification or advancement of expenses, or both,
under this Section; or

       

      (b)  The
executive is fairly and reasonably ;entitled to indemnification or advancement
of expenses, or both, in view of all the relevant circumstances, regardless of
whether such person met any applicable standards of conduct set forth in this
Section.

       

      Section
10.  Partial
Indemnity, etc.  If an executive is entitled under any
provisions of these Bylaws to indemnification by the Corporation for some or a
portion of the expenses, judgments, fines, penalties, excise taxes and amounts
paid or to be paid in settlement of a proceeding, but not, however, for all of
the total amount therefor, the Corporation shall nevertheless indemnify such
person for the portion thereof to which he is entitled.  In connection
with any determination by the Board of Directors or arbitration that an
executive is not entitled to be indemnified hereunder, the burden shall be on
the Corporation to establish that he is not so
entitled.

       

      Section
11.  Other
Rights and Remedies.  Indemnification and advancement of
expenses provided by this Section: (a) shall not be deemed exclusive of any
other rights to which an executive seeking indemnification may be entitled under
any statute, Bylaw, agreement, vote of Shareholders or disinterested directors
or otherwise, both as to action in his official capacity and as to action in any
other capacity while holding such office; (b) shall continue as to a person who
has ceased to be an executive; and (c) shall inure to the benefit of the heirs,
executors and administrators of such a person.  It is the intent of
these Bylaws to provide the maximum indemnification possible under applicable
law.  To the extent applicable law or the Articles of Incorporation of
the Corporation, as in effect on the date hereof or at any time in the future,
permit greater indemnification than is provided for in these Bylaws, the
executive shall enjoy by these Bylaws the greater benefits so afforded by such
law or provision of the Articles of Incorporation, and these Bylaws and the
exceptions to indemnification set forth herein, to the extent applicable, shall
be deemed amended without any further action by the Corporation to grant such
greater benefits.  All rights to indemnification under this Section
shall be deemed to be provided by a contract between the Corporation and the
executive who serves in such capacity at any time while these Bylaws and other
relevant provisions of the Florida Business Corporation Act and other applicable
law, if any, are in effect.  Any repeal or modification thereof shall
not affect any rights or obligations then existing.

       

      Section
12.  Insurance.  By
resolution passed by the Board of Directors, the Corporation may purchase and
maintain insurance on behalf of any person who is or was an executive against
any liability asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the Corporation would have the
power to indemnify him against such liability under this
Section.

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Section
13.  Certain
Reductions in Indemnity.  The Corporation's indemnification of
any executive shall be reduced by any amounts which such person may collect as
indemnification: (a) under any policy of insurance purchased and maintained on
his behalf by the Corporation, or (b) from any other corporation, partnership,
joint venture, trust or other enterprise for whom the executive has served at
the request of the Corporation.

       

      Section
14.  Notification
to Shareholders.  If any expenses or other amounts are paid by
way of indemnification other than by court order or action by the Shareholders
or by an insurance carrier pursuant to insurance maintained by the Corporation,
the Corporation shall, not later than the time of delivery to the shareholders
of written notice of the next annual meeting of shareholders, unless such
meeting is held within three (3) months from the date of such payment, and, in
any event, within fifteen (15) months from the date of such payment, deliver
either personally or by mail to each shareholder of record at the time entitled
to vote for the election of directors a statement specifying the persons paid,
the amounts paid, and the nature and status at the time of such payment of the
litigation or threatened litigation.

       

      Section
15.  Constituent
Corporations.  For the purposes of this Section, references to
the "Corporation" shall include, in addition to any resulting corporation, any
constituent corporation (including any constituent of a constituent) absorbed in
a consolidation or merger, so that any executive of such a constituent
corporation shall stand in the same position under the provisions of this
Section with respect to the resulting or surviving corporation as he would if
its separate existence had contained.

       

      Section
16.  Savings
Clause.  If this Section or any portion hereof shall be
invalidated on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify each executive as to liability with
respect to any proceeding, whether internal or external, including a grand jury
proceeding or an action or suit brought by or in the right of the Corporation,
to the full extent permitted by any applicable portion of this Section that
shall not have been invalidated, or by any applicable provision of Florida
law.

       

      Section
17.  Effective
Date.  The provisions of this Section shall be applicable to
all proceedings commenced after the adoption hereof, whether arising from acts
or omissions occurring before or after its adoption.

       

      ARTICLE
IX.  AMENDMENT

       

      These Bylaws may be repealed or
amended, and new Bylaws may be adopted, by either the Board of Directors or the
Shareholders, but the Board of Directors may not amend or repeal any Bylaw
adopted by Shareholders if the Shareholders specifically provide that such Bylaw
is not subject to amendment or repeal by the Directors.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         
EXHIBIT
B

      

      
        Bylaws
of Guarantor

      

      [see
attached]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      AMENDED
AND RESTATED BYLAWS OF

      

      NEOGENOMICS,
INC.,

      

      a Nevada
Corporation,

      

      As
Amended and Restated March __, 2009

      

      ARTICLE
I

      

      STOCKHOLDERS'
MEETINGS

      

      Section
1.1  Place of Meetings.

      

      All
meetings of the stockholders of NeoGenomics, Inc. (the “Corporation”) shall
be held at the Corporation's corporate headquarters, or at any other place,
within or without the State of Nevada, or by means of any electronic or other
medium of communication, as the Board of Directors of the Corporation (the
“Board”) may
designate for that purpose from time to time.

      

      Section
1.2  Annual Meetings.

      

      An annual
meeting of the stockholders shall be held each year on the date and at the time
set by the Board, at which time the stockholders shall elect, by the greatest
number of affirmative votes cast, the directors to be elected at the meeting and
transact such other business as properly may be brought before the
meeting.

      

      Section
1.3  Special Meetings.

      

      Special
meetings of the stockholders, for any purpose or purposes whatsoever, may be
called at any time by the Chairman of the Board, the Chief Executive Officer or
the Board.

      

      Section
1.4  Notice of Meetings.

      

      (a)  Notice
of each meeting of stockholders, whether annual or special, shall be given at
least ten (10) and not more than sixty (60) days prior to the date thereof by
the Secretary or any Assistant Secretary causing to be delivered to each
stockholder of record entitled to vote at such meeting a written notice stating
the time and place of the meeting and the purpose or purposes for which the
meeting is called. Such notice shall be signed by the Chief Executive Officer,
the Secretary or any Assistant Secretary and shall be (a) mailed postage prepaid
to a stockholder at the stockholder's address as it appears on the stock books
of the Corporation, or (b) delivered to a stockholder by any other method of
delivery permitted at such time by Nevada and federal law and by any exchange on
which the Corporation's shares shall be listed at such time.  If any
stockholder has failed to supply an address or  otherwise specify an
alternative method of delivery that is permitted by (b) above, notice shall be
deemed to have been given if mailed to the address of the Corporation's
corporate headquarters or published at least once in a newspaper having general
circulation in the county in which the Corporation's corporate headquarters is
located.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      (b)  It
shall not be necessary to give any notice of the adjournment of any meeting, or
the business to be transacted at an adjourned meeting, other than by
announcement at the meeting at which such adjournment is taken; provided,
however, that when a meeting is adjourned for 30 days or more, notice of the
adjourned meeting shall be given as in the case of the original
meeting.  The Corporation may transact any business which may have
been transacted at the original meeting.

      

      Section
1.5  Consent by Stockholders.

      

      Any
action, except the removal of directors, that the stockholders could take at a
meeting may be taken without a meeting if one or more written consents, setting
forth the action taken, shall be signed and dated, before or after such action,
by the holders of outstanding stock of each voting group entitled to vote
thereon having not less than the minimum number of votes with respect to each
voting group that would be necessary to authorize or take such action at a
meeting at which all voting groups and shares entitled to vote thereon were
present and voted.  The consent shall be delivered to the Corporation for
inclusion in the minutes or filing with the corporate records.
 

      

      Section
1.6  Quorum.

      

      (a)  The
presence in person or by proxy of the persons entitled to vote a majority of the
Corporation's voting shares at any meeting constitutes a quorum for the
transaction of business. Shares shall not be counted in determining the number
of shares represented or required for a quorum or in any vote at a meeting if
the voting of them at the meeting has been enjoined or for any reason they
cannot be lawfully voted at the meeting.

      

      (b)  The
stockholders present at a duly called or held meeting at which a quorum is
present may continue to do business until adjournment, notwithstanding the
withdrawal of stockholders leaving less than a quorum.

      

      (c)  In
the absence of a quorum, a majority of the shares present in person or by proxy
and entitled to vote may adjourn any meeting from time to time until a quorum
shall be present in person or by proxy.

      
        
           

        

        
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      Section
1.7  Voting Rights.

      

      (a)  Except
as otherwise provided in the Corporation’s Articles of Incorporation (as the
same has been or may be amended from time to time, the "Articles"), at each
meeting of the stockholders, each stockholder of record of the Corporation shall
be entitled to one vote for each share of stock standing in the stockholder's
name on the books of the Corporation. Except as otherwise provided by law, the
Articles or these Bylaws, if a quorum is present:  (i) directors shall
be elected by a plurality of the votes of the shares of capital stock of the
Corporation present in person or represented by proxy at the meeting and
entitled to vote on the election of directors; and (ii) action on any matter,
other than the election of directors, shall be approved if the majority of votes
cast in person or by proxy are in favor of such action.

      

      (b)  The
Board may fix a date as the record date for the purpose of determining
stockholders entitled to notice of or to vote at any meeting of stockholders.
 Such record date shall not precede the date on which the Board adopted the
resolution fixing the record date and shall not be more than sixty (60) days or
less than ten (10) days prior to the date of such meeting.

      

      Section
1.8  Proxies.

      

      Every
stockholder entitled to vote may do so either in person or by written,
electronic, telephonic or other proxy executed in accordance with the provisions
of Section 78.355 of the Nevada Revised Statutes.

      

      Section
1.9  Manner of Conducting Meetings.

      

      To the
extent not in conflict with Nevada law, the Articles or these Bylaws, meetings
of stockholders shall be conducted pursuant to such rules as may be adopted by
the chairman of such meeting.

      

      Section
1.10.  Nature of Business at Meetings of Stockholders.

      

      (a) No
business may be transacted at any special meeting of stockholders, other than
business that is (a) specified in the notice of meeting (or any supplement
thereto) given by or at the direction of the Board (or any duly authorized
committee thereof), or the Chief Executive Officer or Chairman of the Board or
(b) otherwise properly brought before the meeting by or at the direction of the
Board (or any duly authorized committee thereof), the Chairman of the Board, or
the Chief Executive Officer.

      

      (b) No
business may be transacted at any annual meeting of stockholders, other than
business that is (a) specified in the notice of meeting (or any supplement
thereto) given by or at the direction of the Board (or any duly authorized
committee thereof), (b) otherwise properly brought before the meeting by or at
the direction of the Board (or any duly authorized committee thereof), the
Chairman of the Board, or the Chief Executive Officer, or (c) otherwise properly
brought before the annual meeting by any stockholder of the Corporation (i) who
is a stockholder of record on the date of the giving of the notice provided for
in this Section 1.10 and on the record date for the determination of
stockholders entitled to vote at such annual meeting and (ii) who complies with
the notice procedures set forth in this Section 1.10.

      

      (c)  In
addition to any other applicable requirements, for business to be properly
brought by a stockholder before an annual meeting, such stockholder must have
given timely notice thereof in proper written form to the Secretary of the
Corporation.

      
        
           

        

        
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      (d)  To
be timely, a stockholder's notice to the Secretary must be delivered to or
mailed and received at the Corporation's corporate headquarters not less than
ninety (90) days nor more than one hundred twenty (120) days prior to the
anniversary date of the immediately preceding annual meeting of stockholders;
provided, however, that in the event that the annual meeting is called for a
date that is not within thirty (30) days before or after such anniversary date,
notice by the stockholder in order to be timely must be so received not later
than the close of business on the tenth (10th) day
following the day on which notice of the date of the annual meeting was mailed
or public disclosure of the date of the annual meeting was made, whichever first
occurs.

      

      (e)  To
be in proper written form, a stockholder's notice to the Secretary must set
forth as to each matter such stockholder proposes to bring before the annual
meeting of stockholders (a) a brief description of the business desired to be
brought before the meeting and the reasons for conducting such business at the
meeting, (b) the name and record address of such stockholder, (c) the class or
series and number of shares of capital stock of the Corporation which are owned
beneficially or of record by such stockholder, (d) a description of all
arrangements or understandings between such stockholder and any other person or
persons (including their names) in connection with the proposal of such business
by such stockholder and any material interest of such stockholder in such
business and (e) a representation that such stockholder intends to appear in
person or by proxy at the meeting to bring such business before the
meeting. 

      

      (f)  No
business shall be conducted at the annual meeting, or at any special meeting, of
stockholders except business brought before the meeting in accordance with the
procedures set forth in this Section 1.10. If the chairman of any meeting
determines that business was not properly brought before the meeting in
accordance with the foregoing procedures, the chairman shall declare to the
meeting that the business was not properly brought before the meeting and such
business shall not be transacted.

      

      ARTICLE
II

      DIRECTORS—MANAGEMENT

      

      Section
2.1  Powers.

      

      Subject
to the limitations of Nevada law, the Articles and these Bylaws as to action to
be authorized or approved by the stockholders, all corporate powers shall be
exercised by or under authority of, and the business and affairs of this
Corporation shall be controlled by, the Board.

      

      Section
2.2  Number and Qualification; Change in Number

      

      (a)  Subject
to Section 2.2(b), the authorized number of directors of this Corporation shall
be not less than two nor more than eight (8) , with the exact number to be
established from time to time by resolution of the Board. All directors of this
Corporation shall be at least twenty-one (21) years of age.

      
        
           

        

        
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      (b)  The
Board or the stockholders may increase the number of directors at any time and
from time to time; provided, however, that neither the Board nor the
stockholders may ever increase the number of directors by more than one during
any twelve (12) month period, except upon the affirmative vote of two-thirds
(2/3) of the directors, or the affirmative vote of the holders of two-thirds
(2/3) of all outstanding shares voting together and not by class. This provision
may not be amended except by a like vote.

      

      Section
2.3  Election.

      

      Each
director's term of office shall begin immediately after election and shall
continue until the next annual stockholders meeting and his successor is duly
elected and qualified.  Directors elected by the Board or stockholders
to fill a vacancy on the Board shall hold office for the balance of the term to
which such director is elected.

      

      Section
2.4.  Vacancies.

      

      (a)  Any
vacancies in the Board may be filled by a majority vote of the remaining
directors, though less than a quorum, or by a sole remaining director. Each
director so elected shall hold office for the balance of the term to which such
director is elected. The power to fill vacancies may not be delegated to any
committee appointed in accordance with these Bylaws.

      

      (b)  The
stockholders may at any time elect a director to fill any vacancy not filled by
the directors and may elect the additional director(s) at the meeting at which
an amendment of the Bylaws is voted authorizing an increase in the number of
directors.

      

      (c)  A
vacancy or vacancies shall be deemed to exist in case of the death, permanent
and total disability, resignation, retirement or removal of any director, if the
directors or stockholders increase the authorized number of directors but fail
to elect the additional director or directors at a meeting at which such
increase is authorized or at an adjournment thereof, or if the stockholders fail
at any time to elect the full number of authorized directors.

      

      (d)  If
the Board accepts the resignation of a director tendered to take effect at a
future time, the Board or the stockholders shall have power to immediately elect
a successor who shall take office when the resignation shall become
effective.

      

      (e)  No
reduction of the number of directors shall have the effect of removing any
director prior to the expiration of such director's term of office.

      

      Section
2.5  Removal of Directors.

      

      Any one
or more director(s) may be removed from office, with or without cause, by the
affirmative vote of two-thirds of all the outstanding shares voting together and
not by class.

      
        
           

        

        
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      Section
2.6  Resignations.

      

      Any
director of the Corporation may resign at any time either by oral tender of
resignation at any meeting of the Board or by giving written notice thereof to
the Chairman of the Board, Secretary or the Chief Executive Officer. Such
resignation shall take effect at the time it specifies, and the acceptance of
such resignation shall not be necessary to make it effective.

      

      Section
2.7  Place of Meetings.

      

      (a)  Regular
and special meetings of the Board shall be held at the corporate headquarters of
the Corporation or at such other place within or without the State of Nevada as
may be designated for that purpose by the Board.

      

      (b)  Meetings
of the Board may be held in person or by means of any electronic or other medium
of communication approved by the Board from time to time.

      

      Section
2.8  Chairman of the Board.  Except as otherwise provided in
these bylaws, the Chairman of the Board shall preside at all meetings of the
Board of Directors.  The Chairman of the Board may, but need not be an
employee of the Corporation.

      

      Section
2.9  Regular Meetings.

      

      (a)  Regular
meetings of the Board shall be held at such time and place within or without the
State of Nevada as may be agreed upon from time to time by a majority of the
Board.

      

      (b)  Notwithstanding
the provisions of Section 2.11, no notice need be provided of regular meetings,
except that a written notice shall be given to each director of the resolution
establishing a regular meeting date or dates, which notice shall set forth the
date, time and place of the meeting(s). Except as otherwise provided in these
Bylaws or the notice of the meeting, any and all business may be transacted at
any regular meeting of the Board.

      

      Section
2.10  Special Meetings.

      

      Special
meetings of the Board shall be held whenever called by the Chairman of the
Board, the Chief Executive Officer or two-thirds (2/3) of the directors. Except
as otherwise provided in these Bylaws or the notice of the meeting, any and all
business may be transacted at any special meeting of the Board.

      
        
           

        

        
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      Section
2.11  Notice; Waiver of Notice.

      

      Notice of
each regular Board meeting not previously approved by the Board and each special
Board meeting shall be (a) mailed by U.S. mail to each director not later than
two (2) days before the day on which the meeting is to be held, (b) sent to each
director by overnight delivery service, telex, facsimile transmission, telegram,
cablegram, radiogram, e-mail, any other electronic transmission permitted by
Nevada law or delivered personally not later than 5:00 p.m. (EST time) on the
day before the date of the meeting, or (c) provided to each director by
telephone not later than 5:00 p.m. (EST time) on the day before the date of the
meeting. Any director who attends a regular or special Board meeting and (x)
waives notice by a writing filed with the Secretary, (y) is present thereat and
asks that his/her oral consent to the notice be entered into the minutes or (z)
takes part in the deliberations thereat without expressly objecting to the
notice thereof in writing or by asking that his/her objection be entered into
the minutes shall be deemed to have waived notice of the meeting and neither
that director nor any other person shall be entitled to challenge the validity
of such meeting.

      

      Section
2.12  Notice of Adjournment.

      

      Notice of
the time and place of holding an adjourned meeting need not be given to absent
directors if the time and place is fixed at the meeting adjourned.

      

      Section
2.13  Quorum.

      

      A
majority of the number of directors as fixed by the Articles or these Bylaws, or
by the Board pursuant to the Articles or these Bylaws, shall be necessary to
constitute a quorum for the transaction of business, and the action of a
majority of the directors present at any meeting at which there is a quorum,
when duly assembled, is valid as a corporate act; provided, however, that a
minority of the directors, in the absence of a quorum, may adjourn from time to
time or fill vacant directorships in accordance with Section 2.4 but may not
transact any other business. The directors present at a duly called or held
meeting at which a quorum is present may continue to do business until
adjournment, notwithstanding the withdrawal of directors, leaving less than a
quorum.

      

      Section
2.14  Action by Unanimous Written Consent.

      

      Any
action required or permitted to be taken at any meeting of the Board may be
taken without a meeting if all members of the Board consent in writing thereto.
Such written consent shall be filed with the minutes of the proceedings of the
Board and shall have the same force and effect as a unanimous vote of such
directors.

      

      Section
2.15  Compensation.

      

      The Board
may pay to directors a fixed sum for attendance at each meeting of the Board or
of a standing or special committee, a stated retainer for services as a
director, a stated fee for serving as a chair of a standing or special committee
and such other compensation, including benefits, as the Board or any standing
committee thereof shall determine from time to time. Additionally, the directors
may be paid their expenses of attendance at each meeting of the Board or of a
standing or special committee.

      
        
           

        

        
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      Section
2.16  Transactions Involving Interests of Directors.

      

      In the
absence of fraud, no contract or other transaction of the Corporation shall be
affected or invalidated by the fact that any of the directors of the Corporation
is interested in any way in, or connected with any other party to, such contract
or transaction or is a party to such contract or transaction; provided, however,
that such contract or transaction satisfies Section 78.140 of the Nevada Revised
Statutes. Each and every person who is or may become a director of the
Corporation hereby is relieved, to the extent permitted by law, from any
liability that might otherwise exist from contracting in good faith with the
Corporation for the benefit of such person or any person in which such person
may be interested in any way or with which such person may be connected in any
way. Any director of the Corporation may vote and act upon any matter, contract
or transaction between the Corporation and any other person without regard to
the fact that such director also is a stockholder, director or officer of, or
has any interest in, such other person; provided, however, that such director
shall disclose any such relationship and/or interest to the Board prior to a
vote and/or action.

      

      ARTICLE
III

      OFFICERS

      

      Section
3.1  Executive Officers.

      

      The
Corporation shall have a President, Secretary and a Treasurer.  The
officers of the Corporation may also include, without limitation, one or more of
each of the following: Chief Executive Officer, Chief Financial Officer,
Executive Chairman, Vice Chairman, Chief Corporate Officer, Chief Operating
Officer, Chief Medical Officer, Senior Executive Vice President, Executive Vice
President, Senior Vice President, Vice President, Group and/or Division
President. Any person may hold two or more offices. Each officer of the
Corporation shall be elected by the Board, may be classified by the Board as an
executive officer or a non-executive officer (or as a non-officer) at any time,
and shall serve at the pleasure of the Board.

      

      Section
3.2  Intentionally Omitted

      

      Section
3.3  Removal and Resignation; No Right to Continued
Employment

      

      (a)  Any
executive officer may be removed at any time by the Board, either with or
without cause.

      

      (b)  Any
officer may resign at any time by giving written notice to the Board, the Chief
Executive Officer or the Secretary of the Corporation. Any such resignation
shall take effect as of the date of the receipt of such notice, or at any later
time specified therein; provided, however, that such officer may be removed at
any time notwithstanding such resignation. Unless otherwise specified therein,
the acceptance of such resignation shall not be necessary to make it
effective.

      
        
           

        

        
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      (c)  The
fact that an employee has been elected by the Board to serve as an executive
officer or appointed to serve as an officer shall not entitle such employee to
remain an officer or employee of the Corporation.

      

      Section
3.4  Vacancies.

      

      A vacancy
in any office due to death, permanent and total disability, retirement,
resignation, removal, disqualification or any other cause may be filled in any
manner prescribed in these Bylaws for regular elections or appointments to such
office or may not be filled.

      

      Section
3.5  Executive Chairman and Vice Chairman.

      

      The
Executive Chairman shall preside, in the absence of the Chief Executive Officer,
at all meetings of the stockholders and shall exercise and perform such other
powers and duties as from time to time may be assigned by the Board. In the
absence of the Executive Chairman and the Chief Executive Officer, a Vice
Chairman shall preside at all meetings of the stockholders and exercise and
perform such other powers and duties as from time to time may be assigned by the
Board. A Vice Chairman need not be a member of the Board.

      

      Section
3.6  Chief Executive Officer.

      

      Subject
to the oversight of the Board, the Chief Executive Officer shall have general
supervision, direction and control of the business and affairs of the
Corporation. The Chief Executive Officer shall preside at all meetings of the
stockholders and, in the absence of the Chairman of the Board, at all meetings
of the Board. If not a member of the Board, the Chief Executive Officer shall be
an ex officio member of the Executive Committee of the Board and shall have the
general powers and duties of management usually vested in the office of chief
executive officer of a corporation and such other powers and duties as may be
assigned by the Board.

      

      Section
3.7    President.

      

      In the
absence or disability of the Chief Executive Officer, the
President  shall perform all of the duties of the Chief Executive
Officer and when so  acting shall have all the powers and be subject
to all the restrictions upon the Chief Executive Officer, including the power to
sign all instruments and to take all actions which the Chief Executive Officer
is authorized to perform by the  Board of Directors or these Bylaws.
The President shall have the general powers  and duties usually vested
in the office of president of a corporation and such  other powers and
duties as may be prescribed by the Board.

      
        
           

        

        
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      Section
3.8  Chief Financial Officer

      

      The Chief
Financial Officer shall exercise direction and control of the financial affairs
of the Corporation, including the preparation of the Corporation's financial
statements. The Chief Financial Officer shall have the general powers and duties
usually vested in the office of the chief financial officer of a corporation and
such other powers and duties as may be assigned by the Board.

      

      Section
3.9  Chief Operating Officer.

      

      Subject
to the oversight of the Chief Executive Officer, the Chief Operating Officer
shall exercise direction and control over the day-to-day operations of the
Corporation. In the case of the death or total and permanent disability of the
Chief Executive Officer and the President(s), the Chief Operating Officer or
Chief Corporate Officer, in order of rank or seniority, shall perform all of the
duties of such officer, and when so acting shall have all the powers of and be
subject to all the restrictions upon such officer, including the power to sign
all instruments and to take all actions that such officer is authorized to
perform by the Board or these Bylaws. The Chief Operating Officer shall have the
general powers and duties of management usually vested in the office of the
chief operating officer of a corporation and such other powers and duties as
from time to time may be assigned to the Chief Operating Officer by the
Executive Chairman, the Chief Executive Officer or Board.

      

      Section
3.10  Chief Corporate Officer.

      

      Subject
to the oversight of the Chief Executive Officer, the Chief Corporate Officer
shall exercise direction and control over the day-to-day corporate functions of
the Corporation. In the case of the death or total and permanent disability of
the Chief Executive Officer and the President, the Chief Operating Officer or
Chief Corporate Officer, in order of rank or seniority, shall perform all of the
duties of such officer, and when so acting shall have all the powers of and be
subject to all the restrictions upon such officer, including the power to sign
all instruments and to take all actions that such officer is authorized to
perform by the Board or these Bylaws. The Chief Corporate Officer shall have the
general powers and duties of management usually vested in the office of chief
corporate officer of a corporation and such other powers and duties as from time
to time may be assigned to the Chief Corporate Officer by the Executive
Chairman, the Chief Executive Officer or the Board.

      
        
           

        

        
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      Section
3.11 Chief Medical Officer

      

      The Chief
Medical Officer shall exercise direction and control of the medical affairs of
the Corporation, including the preparation of any medical related regulatory
documents and advising on any medical related matters for the
Corporation.  The Chief Medical Officer shall have the general powers
and duties usually vested in the office of the chief medical officer of a
corporation and such other powers and duties as may be assigned by the Executive
Chairman, the Chief Executive Officer or the Board.

      

      Section
3.12  Senior Executive Vice President, Executive Vice President,
Senior Vice President and Vice President.

      

      In the
case of the death or total and permanent disability of the Chief Executive
Officer and the President, the Chief Operating Officer and the Chief Corporate
Officer, a corporate Senior Executive Vice President, an Executive Vice
President, a Group President, in the order of rank and seniority, shall perform
all of the duties of such officer, and when so acting shall have all the powers
of and be subject to all the restrictions upon such officer, including the power
to sign all instruments and to take all actions that such officer is authorized
to perform by the Board or these Bylaws. Each such officer shall have the
general powers and duties usually vested in such office. Each operating region,
division, group or corporate staff function officer shall have the general
powers and duties usually vested in such office. Each such officer shall have
such other powers and perform such other duties as from time to time may be
assigned to them respectively by the Executive Chairman, the Chief Executive
Officer or the Board.

      

      Section
3.13  Secretary and Assistant Secretaries.

      

      (a)  The
Secretary shall  record and keep, or cause to be kept, all votes and
the minutes of all proceedings in a book or books to be kept for that purpose at
the corporate headquarters of the Corporation, or at such other place as the
Board may from time to time determine; and perform like duties for the Executive
and other committees of the Board, when required. In addition, the Secretary
shall keep or cause to be kept, at the registered office of the Corporation in
the State of Nevada, those documents required to be kept thereat by Section 5.2
of the Bylaws and Section 78.105 of the Nevada Revised Statutes.

      

      (b)  The
Secretary shall give, or cause to be given, notice of meetings of the
stockholders and special meetings of the Board, and shall perform such other
duties as may be assigned by the Executive Chairman, the Chief Executive Officer
or Board, under whose supervision the Secretary shall be. The Secretary shall
keep in safe custody the seal of the Corporation and affix the same to any
instrument requiring it. When required, the seal shall be attested by the
Secretary's; the Treasurer's or an Assistant Secretary's signature. The
Secretary or an Assistant Secretary hereby is authorized to issue certificates,
to which the corporate seal may be affixed, attesting to the incumbency of
officers of this Corporation or to actions duly taken by the Board, the
Executive Committee, any other committee of the Board or the
stockholders.

      
        
           

        

        
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      (c)  The
Assistant Secretary or Secretaries, in the order of their seniority, shall
perform the duties and exercise the powers of the Secretary and perform such
duties as the Executive Chairman, the Chief Executive Officer or Board of
Directors shall prescribe in the case of death or total and permanent disability
of the Secretary.

      

      Section
3.14  Treasurer and Assistant Treasurers.

      

      (a)  The
Treasurer shall deposit all moneys and other valuables in the name, and to the
credit, of the Corporation, with such depositories as may be determined by the
Treasurer. The Treasurer shall disburse the funds of the Corporation as may be
ordered by the Board or permitted by the Chief Executive Officer or Chief
Financial Officer, shall render to the Chief Executive Officer, Chief Financial
Officer and directors, whenever they request it, an account of all transactions
and shall have such other powers and perform such other duties as may be
prescribed by the Board or these Bylaws or by the Executive Chairman or the
Chief Executive Officer.

      

      (b)  The
Assistant Treasurer or Treasurers, in the order of their seniority, shall
perform the duties and exercise the powers of the Treasurer and perform such
duties as the Executive Chairman, the Chief Executive Officer or Board of
Directors shall prescribe in the case of death or total and permanent disability
of the Treasurer.

      

      Section
3.15  Additional Powers, Seniority and Substitution of
Officers.

      

      In
addition to the foregoing powers and duties specifically prescribed for the
respective officers, the Board may by resolution from time to time (a) impose or
confer upon any of the officers such additional duties and powers as the Board
may see fit, (b) determine the order of seniority among the officers, and/or (c)
except as otherwise provided above, provide that in the case of death or total
and permanent disability of any officer or officers, any other officer or
officers shall temporarily or indefinitely assume the duties, powers and
authority of the officer or officers who died or became totally and permanently
disabled. Any such resolution may be final, subject only to further action by
the Board, granting to any of the Chief Executive Officer, President, Executive
Chairman or Vice Chairman (or Chairmen) such discretion as the Board deems
appropriate to impose or confer additional duties and powers, to determine the
order of seniority among officers and/or to provide for substitution of officers
as above described.

      

      Section
3.16  Compensation.

      

      The
officers of the Corporation shall receive such compensation as shall be fixed
from time to time by the Board or a committee thereof. Unless otherwise
determined by the Board, no officer shall be prohibited from receiving any
compensation by reason of the fact that such officer also is a director of the
Corporation.

      
        
           

        

        
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      Section
3.17  Transaction Involving Interest of an Officer.

      

      In the
absence of fraud, no contract or other transaction of the Corporation shall be
affected or invalidated by the fact that any of the officers of the Corporation
is interested in any way in, or connected with any other party to, such contract
or transaction, or are themselves parties to such contract or transaction;
provided, however, that such contract or transaction complies with Section
78.140 of the Nevada Revised Statutes. Each and every person who is or may
become an officer of the Corporation hereby is relieved, to the extent permitted
by law, when acting in good faith, from any liability that might otherwise exist
from contracting with the Corporation for the benefit of such person or any
person in which such person may be interested in any way or with which such
person may be connected in any way.

      

      ARTICLE
IV

      EXECUTIVE
AND OTHER COMMITTEES

      

      Section
4.1  Standing Committees.

      

      (a)  The
Board may appoint an Executive Committee, an Audit Committee and a Compensation
Committee, consisting of such number of members as the Board may designate,
consistent with the Articles, these Bylaws and the laws of the State of
Nevada.

      

      (b)  The
Executive Committee shall have and may exercise, when the Board is not in
session, all of the powers of the Board in the management of the business and
affairs of the Corporation, but the Executive Committee shall not have the power
to fill vacancies on the Board, to change the membership of or to fill vacancies
in the Executive Committee or any other Committee of the Board, to adopt, amend
or repeal these Bylaws or to declare dividends or other
distributions.

      

      (c)  The
Audit Committee shall select and engage, on behalf of the Corporation and
subject to the consent of the stockholders, and fix the compensation of, a firm
of certified public accountants. It shall be the duty of the firm of certified
public accountants, which firm shall report to the Audit Committee, to audit the
books and accounts of the Corporation and its consolidated subsidiaries. The
Audit Committee shall confer with the auditors to determine, and from time to
time shall report to the Board upon, the scope of the auditing of the books and
accounts of the Corporation and its consolidated subsidiaries.  If
required by Nevada or federal laws, rules or regulations, or by the rules or
regulations of any exchange on which the Corporation's shares shall be listed,
the Board shall approve a charter for the Audit Committee and the Audit
Committee shall comply with such charter in the performance of its
duties.

      
        
           

        

        
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      (d)  The
Compensation Committee shall establish a general compensation policy for the
Corporation's directors and elected officers and shall have responsibility for
approving the compensation of the Corporation's directors, elected officers and
any other senior officers determined by the Compensation Committee. The
Compensation Committee shall have all of the powers of administration granted to
the Compensation Committee under the Corporation's non-qualified employee
benefit plans, including any stock incentive plans, long-term incentive plans,
bonus plans, retirement plans, deferred compensation plans, stock purchase plans
and medical, dental and insurance plans. In connection therewith, the
Compensation Committee shall determine, subject to the provisions of such plans,
the directors, officers and employees of the Corporation eligible to participate
in any of the plans, the extent of such participation and the terms and
conditions under which benefits may be vested, received or
exercised.  The Compensation Committee may delegate any or all of its
powers of administration under any or all of the Corporation's non-qualified
employee benefit plans to any committee or entity appointed by the Compensation
Committee. If required by any Nevada or federal laws, rules or regulations, or
by the rules or regulations of any exchange on which the Corporation's shares
shall be listed, the Board shall approve a charter for the Compensation
Committee and the Compensation Committee shall comply with such charter in the
performance of its duties.

      

      Section
4.2  Other Committees.

      

      Subject
to the limitations of the Articles, these Bylaws and the laws of the State of
Nevada, or duties not delegable by the Board, any or all of the responsibilities
and powers of the Board may be exercised, and the business and affairs of this
Corporation may be exercised or controlled by or under the authority of such
other committee or committees as may be appointed by the Board, including,
without limitation, a Nominating Committee, an Ethics, Quality and Compliance
Committee and a Corporate Governance Committee. The responsibilities and/or
powers to be exercised by any such committee shall be designated by the
Board.

      

      Section
4.3  Procedures.

      

      Meetings
and actions of committees shall be governed by, and held in accordance with, the
following provisions of Article II of these Bylaws: Section 2.9 (Regular
Meetings), Section 2.10 (Special Meetings), Section 2.11 (Notice; Waiver of
Notice), Section 2.12 (Notice of Adjournment), Section 2.13 (Quorum) and Section
2.14 (Action by Unanimous Written Consent), with such changes in the context of
these Bylaws as are necessary to substitute the committee and its members for
the Board and its members; provided, however, that the time of regular meetings
of committees may be determined either by resolution of the Board or by
resolution of the committee, that special meetings of committees may also be
called by resolution of the Board.  The Board may adopt rules for the
governance of any committee not inconsistent with the provisions of these
Bylaws.

      

      ARTICLE
V

      CORPORATE
RECORDS AND REPORTS—INSPECTION

      

      Section
5.1  Records.

      

      The
Corporation shall maintain adequate and correct accounts, books and records of
its business and properties. All of such books, records and accounts shall be
kept at its corporate headquarters and/or at other locations within or without
the State of Nevada as may be designated by the Board.

      
        
           

        

        
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      Section
5.2  Articles, Bylaws and Stock Ledger.

      

      The
Corporation shall maintain and keep the following documents at its registered
office in the State of Nevada: (a) a certified copy of the Articles and all
amendments thereto; (b) a certified copy of these Bylaws and all amendments
thereto; and (c) the Stock Ledger (unless such Stock Ledger is kept by a third
party transfer agent).

      

      Section
5.3  Inspection.

      

          Stockholders
of the Corporation may inspect books and records of the Corporation in
accordance with Sections 78.105 and 78.257 of the Nevada Revised
Statutes.

      

      Section
5.4  Checks, Drafts, Etc.

      

      All
checks, drafts, or other orders for payment of money, notes or other evidences
of indebtedness, issued in the name of, or payable to, the Corporation, shall be
signed or endorsed only by such person or persons, and only in such manner, as
shall be authorized from time to time by the Board, the Chief Executive Officer,
the President, the Chief Financial Officer or the Treasurer.

      

      ARTICLE
VI

      OTHER
AUTHORIZATIONS

      

      Section
6.1  Execution of Contracts.

      

      Except as
otherwise provided in these Bylaws, the Board may authorize any officer or agent
of the corporation to enter into and execute any contract, document, agreement
or instrument in the name of and on behalf of the Corporation. Such authority
may be general or confined to specific instances. Unless so authorized by the
Board, no officer, agent or employee shall have any power or authority, except
in the ordinary course of business, to bind the Corporation by any contract or
engagement, to pledge its credit or to render it liable for any purpose or in
any amount.

      

      Section
6.2  Dividends or Other Distributions

      

      From time
to time, the Board may declare, and the Corporation may pay, dividends or other
distributions on its outstanding shares in the manner and on the terms and
conditions provided by the laws of the State of Nevada and the Articles, subject
to any contractual restrictions to which the Corporation is then
subject.

      
        
           

        

        
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      ARTICLE
VII

      SHARES
AND TRANSFER OF SHARES

      

      Section
7.1  Shares.

      

      (a)  The
shares of the capital stock of the Corporation may be represented by
certificates or uncertificated. Each registered holder of shares of capital
stock, upon written request to the Secretary of the Corporation, shall be
provided with a stock certificate representing the number of shares owned by
such holder.

      

      (b)  Certificates
for shares shall be in such form as the Board may designate and shall be
numbered and registered as they are issued. Each shall state the name of the
record holder of the shares represented thereby; its number and date of
issuance; the number of shares for which it is issued; the par value; a
statement of the rights, privileges, preferences and restrictions, if any; a
statement as to rights of redemption or conversion, if any; and a statement of
liens or restrictions upon transfer or voting, if any, or, alternatively, a
statement that certificates specifying such matters may be obtained from the
Secretary of the Corporation.

      

      (c)  Every
certificate for shares must be signed by the Chief Executive Officer or the
President and the Secretary or an Assistant Secretary, or must be authenticated
by facsimiles of the signatures of the Chief Executive Officer or the President
and the Secretary or an Assistant Secretary. Before it becomes effective, every
certificate for shares authenticated by a facsimile or a signature must be
countersigned by a transfer agent or transfer clerk, and must be registered by
an incorporated bank or trust company, either domestic or foreign, as registrar
of transfers.

      

      (d)  Even
though an officer who signed, or whose facsimile signature has been written,
printed, or stamped on a certificate for shares ceases, by death, resignation,
retirement or otherwise, to be an officer of the Corporation before the
certificate is delivered by the Corporation, the certificate shall be as valid
as though signed by a duly elected, qualified and authorized officer if it is
countersigned by the signature or facsimile signature of a transfer clerk or
transfer agent and registered by an incorporated bank or trust company, as
registrar of transfers.

      

      (e)  Even
though a person whose facsimile signature as, or on behalf of, the transfer
agent or transfer clerk has been written, printed or stamped on a certificate
for shares ceases, by death, resignation, or otherwise, to be a person
authorized to so sign such certificate before the certificate is delivered by
the Corporation, the certificate shall be deemed countersigned by the facsimile
signature of a transfer agent or transfer clerk for purposes of meeting the
requirements of this section.

      

      Section
7.2  Transfer on the Books.

      

      Upon
surrender to the Secretary or transfer agent of the Corporation of a certificate
for shares duly endorsed or accompanied by proper evidence of succession,
assignment or authority to transfer, it shall be the duty of the Corporation or
its transfer agent to issue a new certificate, if requested by the transferee,
to the person entitled thereto, cancel the old certificate and record the
transaction upon its books.

      
        
           

        

        
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      Section
7.3  Lost or Destroyed Certificates.

      

      The Board
may direct, or may authorize the Secretary to direct, a new certificate or
certificates to be issued in place of any certificate or certificates
theretofore issued by the Corporation alleged to have been lost or destroyed,
upon the Secretary's receipt of an affidavit of that fact by the person
requesting the replacement certificate for shares so lost or destroyed. When
authorizing such issue of a new certificate or certificates, the Board or
Secretary may, in its or the Secretary's discretion, and as a condition
precedent to the issuance thereof, require the owner of such lost or destroyed
certificate or certificates, or such owner's legal representative, to advertise
the same in such manner as it shall require and/or give the Corporation a bond
in such sum as it may direct as indemnity against any claim that may be made
against the Corporation with respect to the certificate alleged to have been
lost or destroyed.

      

      Section
7.4  Transfer Agents and Registrars.

      

      The
Board, the Chief Executive Officer, the Chief Financial Officer or the Secretary
may appoint one or more transfer agents or transfer clerks, and one or more
registrars, who may be the same person, and may be the Secretary of the
Corporation, an incorporated bank or trust company or any other person or
entity, either domestic or foreign.

      

      Section
7.5  Fixing Record Date for Dividends, Etc.

      

      The Board
may fix a time, not exceeding fifty (50) days preceding the date fixed for the
payment of any dividend or distribution, or for the allotment of rights, or when
any change or conversion or exchange of shares shall go into effect, as a record
date for the determination of the stockholders entitled to receive any such
dividend or distribution, or any such allotment of rights, or to exercise the
rights in respect to any such change, conversion, or exchange of shares, and, in
such case, only stockholders of record on the date so fixed shall be entitled to
receive such dividend, distribution, or allotment of rights, or to exercise such
rights, as the case may be, notwithstanding any transfer of any shares on the
books of the Corporation after any record date fixed as aforesaid.

      

      Section
7.6  Record Ownership.

      

      The
Corporation shall be entitled to recognize the exclusive right of a person
registered as such on the books of the Corporation as the owner of shares of the
Corporation's stock to receive dividends or other distributions and to vote as
such owner, and shall not be bound to recognize any equitable or other claim to
or interest in such shares on the part of any other person, whether or not the
Corporation shall have express or other notice thereof, except as otherwise
provided by law.

      
        
           

        

        
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      ARTICLE
VIII

      AMENDMENTS
TO BYLAWS

      

      Section
8.1  By Stockholders.

      

      New or
restated bylaws may be adopted, or these Bylaws may be repealed, amended and/or
restated, at any meeting of the stockholders, by the affirmative vote of the
holders of a majority of all outstanding shares voting together and not by
class, except amendment of Section 2.5 shall require the approval of two-thirds
(2/3) of all outstanding shares voting together (unless the Certificate of
Designation of any preferred stock of the Corporation requires the affirmative
vote of such holders of preferred stock).

      

      Section
8.2  By Directors.

      

      Subject
to the right of the stockholders to adopt, amend and/or restate or repeal these
Bylaws, as provided in Section 8.1, the Board may adopt, amend, or repeal any of
these Bylaws, except amendment of Section 2.5 shall require the approval of
two-thirds (2/3) of all outstanding shares voting together (unless the
Certificate of Designation of any preferred stock of the Corporation requires
the affirmative vote of such holders of preferred stock) by the affirmative vote
of two-thirds of the directors.  This power may not be delegated to
any committee appointed in accordance with these Bylaws.

      

      Section
8.3  Record of Amendments.

      

      Whenever
an amendment or a new Bylaw is adopted, it shall be copied in the book of
minutes with the original Bylaws, in the appropriate place. If any Bylaw is
repealed, the fact of repeal, with the date of the meeting at which the repeal
was enacted, or written assent was filed, shall be stated in said
book.

      

      ARTICLE
IX

      INDEMNIFICATION
OF DIRECTORS AND OFFICERS

      

      Section
9.1  Indemnification in Actions, Suits or Proceedings other than those
by or in the Right of the Corporation.

      

      Any
person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (except an action by or in the right
of the Corporation) (a "Proceeding"), by
reason of the fact that such person is or was a director, officer, employee or
agent of the Corporation, or is or was serving at the request of the Corporation
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, shall be indemnified and held harmless
by the Corporation to the fullest extent permitted by Nevada law against
expenses, including attorneys' fees, judgments, fines and amounts paid in
settlement actually and reasonably incurred by such person in connection with
such Proceeding (collectively, "Costs"). The
termination of any Proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith and in a manner which such
person reasonably believed to be in or not opposed to the best interests of the
Corporation, and that, with respect to any criminal action or proceeding, such
person had reasonable cause to believe that such person's conduct was
unlawful.

      
        
           

        

        
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      Section
9.2   Indemnification in Actions, Suits or Proceedings by or in
the Right of the Corporation.

      

      The
Corporation shall indemnify any person who was or is a party or is threatened to
be made a party to any threatened, pending or completed Proceeding by or in the
right of the Corporation to procure a judgment in its favor by reason of the
fact that such person is or was a director, officer, employee or agent of the
Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee, or agent of another corporation, partnership, joint
venture, trust or other enterprise against Costs incurred by such person in
connection with the defense or settlement of such action or
suit.  Indemnification may not be made for any claim, issue or matter
as to which such person has been adjudged by a court of competent jurisdiction,
after exhaustion of all appeals therefrom, to be liable to the Corporation or
for amounts paid in settlement to the Corporation, unless and only to the extent
that the court in which the action or suit was brought or other court of
competent jurisdiction determines upon application that in view of all the
circumstances of the case, the person is fairly and reasonably entitled to
indemnity for such expenses as the court deems proper.

      

      Section
9.3  Indemnification by a Court.

      

      If a
claim under Sections 9.1 or 9.2 is not paid in full by the Corporation within 30
days after a written claim has been received by the Corporation, the claimant
may at any time thereafter bring suit against the Corporation to recover the
unpaid amount of the claim and, if successful in whole or in part, the claimant
shall be entitled to be paid also the expense of prosecuting such claim. It
shall be a defense to any such action (other than an action brought to enforce a
claim for Costs incurred in defending any Proceeding in advance of its final
disposition where the required undertaking, if any is required, has been
tendered to the Corporation) that the claimant has failed to meet a standard of
conduct which makes it permissible under Nevada law for the Corporation to
indemnify the claimant for the amount claimed. Neither the failure of the
Corporation (including the Board, independent legal counsel, or the
stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is permissible in the circumstances
because such claimant has met such standard of conduct, nor an actual
determination by the Corporation (including the Board, independent legal
counsel, or the stockholders) that the claimant has not met such standard of
conduct, shall be a defense to the action or create a presumption that the
claimant has failed to meet such standard of conduct.

      
        
           

        

        
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      Section
9.4  Expenses Payable in Advance.

      

      The
Corporation shall pay the Costs incurred by any person entitled to
indemnification in defending a Proceeding as such Costs are incurred and in
advance of the final disposition of a Proceeding; provided, however, that the
Corporation shall pay the Costs of such person only upon receipt of an
undertaking by or on behalf of such person to repay the amount if it is
ultimately determined by a court of competent jurisdiction that such person is
not entitled to be indemnified by the Corporation.

      

      Section
9.5  Nonexclusivity of Indemnification and Advancement of
Expenses.

      

      The right
to indemnification and advancement of Costs authorized in this Article IX or
ordered by a court: (a) does not exclude any other rights to which a person
seeking indemnification or advancement of expenses may be entitled under the
Articles of the Corporation or any agreement, vote of stockholders or
disinterested directors or otherwise, for either an action in such person's
official capacity or an action in another capacity while holding such person's
office, except that indemnification, unless ordered by a court pursuant to
Nevada law or the advancement of expenses made pursuant to Section 9.4, may not
be made to or on behalf of any director or officer if a final adjudication
establishes that such person's acts or omissions involved intentional
misconduct, fraud or a knowing violation of the law and was material to the
cause of action; and (b) continues for a person who has ceased to be a director,
officer, employee, or agent and inures to the benefit of the heirs, executors
and administrators of such a person.

      

      Section
9.6  Insurance.

      

      The
Corporation may purchase and maintain insurance or make other financial
arrangements on behalf of any person who is or was a director, officer, employee
or agent of the Corporation, or is or was serving at the request of the
Corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise in accordance with Section
78.752 of the Nevada Revised Statutes.

      

      Section
9.7  Certain Definitions.

      

      (a)  For
purposes of this Article IX, references to "the Corporation" shall include, in
addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which,
if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, employees or agents so that any person who is
or was a director, officer, employee or agent of such constituent corporation or
is or was serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, shall stand in the same
position under the provisions of this Article IX with respect to the resulting
or surviving corporation as such person would have with respect to such
constituent corporation if its separate existence had
continued.

      
        
           

        

        
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      (b)  For
purposes of this Article IX, references to "fines" shall include any excise
taxes assessed on a person with respect to an employee benefit
plan.

      

      (c)  For
purposes of this Article IX, references to "serving at the request of the
Corporation" shall include any service as a director, officer, employee or agent
of the Corporation which imposes duties on, or involves services by, such
director, officer, employee or agent with respect to an employee benefit plan,
its participants or beneficiaries;

      

      (d)  For
purposes of this Article IX, a person who acted in good faith and in a manner
such person reasonably believed to be in the interest of the participants and
beneficiaries of an employee benefit plan shall be deemed to have acted in a
manner "not opposed to the best interests of the Corporation" as referred to in
this Article IX.

      

      (e)  For
purposes of this Article IX, the term "Board" shall mean the Board of the
Corporation or, to the extent permitted by the laws of Nevada, as the same exist
or may hereafter be amended, its Executive Committee. On vote of the Board, the
Corporation may assent to the adoption of Article IX by any subsidiary, whether
or not wholly owned.

      

      Section
9.8  Indemnification of Witnesses.

      

      To the
extent that any director, officer, employee, or agent of the Corporation is by
reason of such position, or a position held with another entity at the request
of the Corporation, a witness in any action, suit or proceeding, such person
shall be indemnified against all Costs actually and reasonably incurred by such
person or on such person's behalf in connection therewith.

      

      Section
9.9  Indemnification Agreements.

      

      The
Corporation may enter into agreements with any director, officer, employee, or
agent of the Corporation providing for indemnification to the full extent
permitted by Nevada law.

      

      Section
9.10  Actions Prior to Adoption of Article IX.

      

      The
rights provided by this Article IX shall be available whether or not the claim
asserted against the director, officer, employee, or agent is based on matters
which antedate the adoption of this Article IX.

      

      Section
9.11  Severability.

      

      If any
provision Article IX shall for any reason be determined to be invalid, the
remaining provisions hereof shall not be affected thereby but shall remain in
full force and effect.

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      ARTICLE
X

      CORPORATE
SEAL

      

      The
corporate seal shall be circular in form and shall have inscribed thereon the
name of the Corporation, the date of its incorporation and the word
"Nevada".

      

      ARTICLE
XI

      INTERPRETATION

      

      Reference
in these Bylaws to any provision of Nevada law or the Nevada Revised Statutes
shall be deemed to include all amendments thereto and the effect of the
construction and determination of validity thereof by the Nevada Supreme
Court.

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

      
        EXHIBIT
C

      

      
        Schedules

      

      [see
attached]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
C

       

      AMENDED AND RESTATED
SCHEDULES

       

      
        
          	
                  Schedule
      1.2

                	
                  Accounts
      Payable Over 120 Days That Are Permitted Indebtedness:

                    

                   Aspen
      Capital Advisors not to exceed $65,000

                  K&L Gates, LLP not to
      exceed $500,000

                  Path Labs of Fort Myers not to
      exceed $80,000

                  HCSS, LLC dba Bridge Labs not
      to exceed $40,000

                
	 
      	 
      
	
                  Schedule
      2.3

                	
                  Borrower’s
      Operating Account for
Disbursements

                

        

      

       

      
        
          
            
              
                
                  	 	
                          Bank
      Name:

                        	
                          
                            
                              [***]

                            

                          

                        
	 	
                          
                            
                              ABA
      #:

                            

                          

                        	
                          
                            
                              [***]

                            

                          

                        
	 	
                          
                            
                              City/State:

                            

                          

                        	
                          
                            
                              [***]

                            

                          

                        
	 	
                          
                            
                              Account
      #:

                            

                          

                        	
                          
                            
                              [***]

                            

                          

                        
	 	
                          
                            
                              Account
      Name:

                            

                          

                        	
                          
                            
                              [***]

                            

                          

                        

                

              

            

          

        

      

       

      
        
          	
                  Schedule
      5.3B

                	
                  Third-Party
      Contracts With Payor’s Representing at Least 5% of Cash
      Receipts

                    

                   
      Medicare

                  United
    Healthcare

                
	 
      	 
      
	
                  Schedule
      7.3

                	
                  Subsidiaries
      of NeoGenomics, Inc., a Nevada Corporation (Holding Company)

                    

                   
      NeoGenomics Laboratories, Inc., a Florida Corporation

                    
      

                  Subsidiaries
      of NeoGenomics Laboratories, Inc., a Florida Corporation (Operating
      Company)

                    

                   
      None

                
	 
      	 
      
	 
      	
                  Capitalization
      of NeoGenomics, Inc, a Nevada
Corporation

                

        

      

       

      
        
          
            
              
                
                  	 
      	
                          Common
      Shares Authorized:

                        	
                          100,000,000

                        	 
	 
      	
                          Common
      Stock Outstanding (as of 3/31/09):

                        	
                          33,056,021

                        	 
	 
      	 
      	 
      	 
	 
      	
                          Preferred
      Stock Authorized:

                        	
                            10,000,000

                        	 
	 
      	
                          Preferred
      Stock Outstanding (as of 3/31/09):

                        	
                          None

                        	 
	 
      	 
      	 
      	 
	 
      	
                          Warrants
      Outstanding (as of 3/31/09):

                        	
                          6,542,755

                        	 
	 
      	
                          Options
      Outstanding (as of 12/31/08):

                        	
                          3,724,422

                        	 

                

              

            

          

        

      

       

      
        
          	 
      	
                  This
      Schedule 7.3 dealing with the Capitalization of the Guarantor shall be
      deemed to be automatically updated by any disclosures which appear in the
      Guarantor’s public filings with the Securities and Exchange
      Commission.

                    

                  Capitalization
      of NeoGenomics Laboratories, Inc, a Florida Corporation

                    

                   
      Common Shares
      Authorized:               100

                  Common Sock
      Outstanding:             
         100

                

        

        
           

          [***]
Information redacted pursuant to a confidential treatment request. An unredacted
version of this Agreement has been filed separately with the Securities and
Exchange Commission.

        

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      
        
          
            
              	 
      	
                      Board
      of Directors of NeoGenomics, Inc, a Nevada Corporation

                        

                      Michael T. Dent,
      M.D.                     
              George G.
      O’Leary

                      Robert P.
      Gasparini                                   Peter
      M. Peterson

                      Marvin E. Jaffe,
      M.D.                               William
      J. Robison

                      Steven C.
      Jones                                         Douglas
      M. VanOort

                        

                      Board
      of Directors of NeoGenomics Laboratories, Inc, a Florida
      Corporation

                        

                       
      Douglas M. VanOort

                      Michael T. Dent,
      M.D.

                      Robert P.
    Gasparini

                    
	 	 
	
                      Schedule
      7.4A

                    	
                      Locations
      of Leased Properties

                       
      

                       
      12701 Commonwealth Drive, Suites 1-9

                      Fort Myers, FL
      33913

                        

                      618 Grassmere Park Drive, Suite
      20

                      Nashville,
      TN  37211

                        

                      6 Morgan Street, Suite
      150

                      Irvine, CA 92618

                        

                      9548 Topanga Canyon
      Blvd.

                      Chatsworth,
      CA  91311

                    
	 	 
	
                      Schedule
      7.4B

                    	
                      Deposit
      Accounts of NeoGenomics, Inc., a Nevada Company (Holding
      Company)

                    

            

          

        

      

       

      
        
          
            
              	 	
                      Bank

                    	 
      	
                      Account #

                    	 
      	
                      Description

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	
                       

                    	
                      
                        [***]

                      

                    	
                       

                    	
                      
                        [***]

                      

                    

            

          

        

      

      

        	
                 
      

              	
                
                  Deposit
      Accounts of NeoGenomics Laboratories, Inc., a FL Company (Operating
      Subsidiary)

                

              

      

       

      
        
          
            
              	 	
                      Bank

                    	 
      	
                      Account #

                    	 
      	
                      Description

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    	 
      	
                      
                        [***]

                      

                    
	 	
                      
                        [***]

                      

                    	
                       

                    	
                      
                        [***]

                      

                    	
                       

                    	
                      
                        [***]

                      

                    

            

          

        

      

      
         

        [***]
Information redacted pursuant to a confidential treatment request. An unredacted
version of this Agreement has been filed separately with the Securities and
Exchange Commission.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      
        
          	
                  Schedule
      7.5

                	
                  Affiliate
      Contracts

                   

                  HCSS,
      LLC

                   

                  On
      March 11, 2005, NeoGenomics entered into an agreement with HCSS, LLC and
      eTelenext, Inc. to enable NeoGenomics to use eTelenext, Inc’s laboratory
      information system (LIS).  HCSS, LLC is a holding company
      created to build a small laboratory network for the 50 small commercial
      genetics laboratories in the United States.  HCSS, LLC is owned
      66.7% by Dr. Michael T. Dent, our Chairman.  By becoming the
      first customer of HCSS in the small laboratory network, the Company saved
      approximately $152,000 in up front licensing fees.  Under the
      terms of the agreement, the Company paid $22,500 over three months to
      customize this software and pays an annual membership fee of $6,000 per
      year and monthly transaction fees of between $2.50 - $10.00 per completed
      test, depending on the volume of tests performed.  As of
      December, 2007, the Company was incurring approximately $8,000 -
      $10,000/month in fees.  The eTelenext system is an elaborate LIS
      that is in use at many larger labs.  By utilizing the eTelenext
      system, the Company has vastly increased the productivity of its
      technologists.

                   

                  Certain Consulting Agreements
      with Board Members

                   

                  The
      Company has consulting arrangements with two members of its Board of
      Directors, Mr. Steven Jones and Mr. George O’Leary, to provide various
      consulting services.  Although there are no written agreements,
      per se, each of these arrangements has been approved by the Company’s
      Board of Directors.  Mr. Jones receives approximately $150/hour
      and is paid through Aspen Capital Advisors.  Mr. O’leary
      receives approximately $1,000/day and is paid through SKS
      Consulting.  The maximum amounts payable by the Company under
      the consulting agreements referenced in this paragraph will not exceed
      $500,000 per fiscal year.

                    

                  Certain Leasing Arrangements with
      Gulf Pointe Capital, LLC

                   

                  On September 30, 2008, the Borrower entered into a
      Master Lease Agreement (the “Master Lease”) with Gulfpointe Capital, LLC
      which allows the Borrower to obtain operating lease capital from time to
      time.  Three members of the Guarantor’s Board of Directors
      Steven Jones, Peter Petersen and Marvin Jaffe, are affiliated with
      Gulfpointe Capital, LLC.  On September 30, 2008, the Borrower
      also entered into the first lease schedule under the Master Lease
      Agreement which provided for a sale leaseback on approximately $130,000 of
      used laboratory equipment (“Lease Schedule #1”).  This
      sale/leaseback transaction was entered into after it was determined that
      Leasing Technologies International Inc., the Borrower’s primary source of
      operating lease funds, was unable to consummate this transaction under
      their lease line with the Borrower.  Messrs Jones, Peterson and
      Jaffe recused themselves from all aspects of both sides of this
      transaction.  The lease has a 30 month term and a lease rate
      factor of 0.039683/month, which equates to monthly payments of $5,154.88
      during the term.  Gulfpointe Capital LLC (“Gulfpointe”) also
      received warrants to purchase 32,475 shares of the Guarantor’s
      common stock with an exercise price of $1.08/share and a five year
      term.  At the end of the term, the Borrower’s options are as
      follows:

                   

                  a.)  
       Purchase not less than all of the equipment for its then fair market
      value not to exceed 15% of the original equipment cost.

                  b.)  
       Extend the lease term for a minimum of six months.

                  c.)  
       Return not less than all the equipment at the conclusion of the
      lease term.

                

        

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      
        
          
            	 
      	
                    On
      February 9, 2009, the Borrower entered into a second schedule under the
      Master Lease for the sale leaseback and purchase of approximately $118,000
      of used laboratory equipment (“Lease Schedule #2”). This sale/leaseback
      transaction was entered into after it was determined that Leasing
      Technologies International Inc., the Borrower’s primary source of
      operating lease funds, was unable to consummate this transaction under
      their lease line with the Borrower.  Messrs. Jones, Peterson and
      Jaffe recused themselves from all aspects of both sides of this
      transaction.  The lease has a 30 month term at the same lease
      rate factor per month as Lease Schedule #1, which equates to monthly
      payments of $4,690.41 during the term.  As part of Lease
      Schedule #2, on February 9, 2009, the Guarantor and Gulfpointe terminated
      their original warrant agreement, dated September 30, 2008, and replaced
      it with a new warrant to purchase 83,333 shares of the Guarantor’s common
      stock.  Such new warrant has a five year term and an exercise
      price of $0.75/share.  The Borrower’s options at the end of the
      term of Lease Schedule #2 are the same as for Lease Schedule
      #1.

                      

                    Certain Stock and Warrant Agreements with Douglas
      M. VanOort

                      

                    On
      March 16, 2009, the Guarantor entered into a subscription agreement with
      the Douglas M. VanOort Living Trust for the purchase of 625,000 shares of
      common stock at a purchase price of $0.80/share, which resulted in gross
      proceeds to the Guarantor of $500,000.  Also on March 16, 2009,
      the Guarantor entered into a warrant agreement with Douglas M. VanOort
      granting him the rights to purchase 625,000 shares of common stock at a
      purchase price of $1.05/share.  Such warrant has a five year
      term and is subject to certain vesting requirements specified in the
      warrant.

                  
	 
      	 
      
	
                    Schedule
      7.6

                  	
                    Litigation

                      

                    US Labs

                      

                    On October 26, 2006, US Labs
      filed a complaint in the Superior Court of the State of California for the
      County of Los Angeles (entitled Accupath Diagnostics Laboratories, Inc. v.
      NeoGenomics, Inc., et al., Case No. BC 360985) (the “Lawsuit”) against the
      Company and Robert Gasparini, as an individual, and certain other
      employees and non-employees of NeoGenomics (the “Defendants”) with respect
      to claims arising from discussions with current and former employees of US
      Labs.  On March 18, 2008, we reached a preliminary agreement to
      settle US Labs’ claims, and in accordance with SFAS No. 5, Accounting For
      Contingencies, as of December 31, 2007 we accrued a $375,000 loss
      contingency, which consisted of $250,000 to provide for the Company’s
      expected share of this settlement, and $125,000 to provide for the
      Company’s share of the estimated legal fees.

                      

                    On April 23, 2008, the Company
      and US Labs entered into the Settlement Agreement; whereby, both parties
      agreed to settle and resolve all claims asserted in and arising out of the
      aforementioned lawsuit. Pursuant to the Settlement Agreement, the
      Defendants are required to pay $500,000 to US Labs, of which $250,000 was
      paid on May 1, 2008 with funds from the Company’s insurance carrier and
      the remaining $250,000 will be paid by the Company on the last day of each
      month in equal installments of $31,250 commencing on May 31,
      2008.  Under the terms of the Settlement Agreement, there are
      certain provisions agreed to in the event of default.  As of
      March 31, 2009, there were no remaining payments due under the Settlement
      Agreement.

                  

          

        

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      
        
          	 
      	
                  FCCI Commercial Insurance
      Company

                    

                  A
      civil lawsuit is currently pending between the Company and its liability
      insurer, FCCI Commercial Insurance Company ("FCCI") in the 20th Judicial
      Circuit Court in and for Lee County, Florida (Case No.
      07-CA-017150).  FCCI filed the suit on December 12, 2007 in
      response to the Company's demands for insurance benefits with respect to
      an underlying action involving US Labs (a settlement agreement has since
      been reached in the underlying action, and thus that case has now
      concluded).  Specifically, the Company maintains that the
      underlying plaintiff's allegations triggered the subject insurance
      policy's personal and advertising injury coverage.  In the
      lawsuit, FCCI seeks a court judgment that it owes no obligation to the
      Company regarding the underlying action (FCCI does not seek monetary
      damages).  The Company has counterclaimed against FCCI for
      breach of the subject insurance policy, and seeks recovery of defense
      costs incurred in the underlying matter, amounts paid in settlement
      thereof, and fees and expenses incurred in litigating with
      FCCI.  The court recently denied a motion by FCCI for judgment
      on the pleadings, and the parties are proceeding with
      discovery.  We intend to aggressively pursue all remedies in
      this matter and believe that the courts will ultimately find that FCCI had
      a duty to provide coverage in the US Labs litigation.

                    

                  Dr. Peter Kohn

                    

                  In
      October 2004, Dr. Peter Kohn resigned as Lab Director of NeoGenomics. His
      employment contract with the Company ended September 30, 2004 and was not
      renewed. There was communication between Mr. Thomas White, former CEO and
      Dr. Kohn in October regarding health coverage and unused vacation time. In
      November 2004, the company received correspondence from Terry and Frazier,
      LLP, Dr. Kohn’s attorney relating to health care coverage, unused vacation
      time and business expenses related to November 2004. Mr. White responded
      that the Company would use the unpaid vacation time to cover Dr. Kohn’s
      health insurance until the issue is resolved and that the business
      expenses fell outside the contract terms and therefore would not be
      reimbursed. Dr. Kohn’s contract stipulated that this agreement superseded
      all prior agreements and therefore prior claims related to prior
      agreements were resolved with the signing of the most recent agreement.
      The Company believes that it has a strong documented case relating to its
      position regarding Dr. Kohn’s claims which would hold up in any court
      proceeding.  However, in the event that the Company is found to
      be liable for some or all of Dr. Kohn’s claims, the amounts in question
      would not be material to the ongoing operations of the
      Company.  The Company booked accrued severance expense of
      $12,352 to cover Dr. Kohn’s unused vacation pay up to the date of his
      termination and paid approximately $400/month to cover his health
      insurance against this accrual until June of 2007 when the Company was
      notified that Dr. Kohn had gotten insurance elsewhere.

                    

                  On January 12, 2005, the Company
      received a complaint filed in the Circuit Court for Seminole County,
      Florida by its former Laboratory Director, Dr. Peter Kohn.  The
      complaint alleged that the Company owed Dr. Kohn approximately $22,000 in
      back vacation pay and other unspecified damages.  The Company
      believes that it owes Dr. Kohn no more than approximately $12,352, of
      which it has already paid substantially all of this by virtue of the
      Company continuing to pay Dr. Kohn’s health insurance
      premiums.

                    

                  On
      March 5, 2007, the Company received an amended complaint filed in the
      Circuit Court for Seminole County, Florida by Dr. Kohn.  The
      complaint alleges the following (a) that Dr. Kohn is owed $12,600 for 22
      unused vacation days and 4 unused sick days resulting from his first
      contract from Oct 2002 to Sept 2003; (b) that Dr. Kohn is owed $14,054 for
      25 unused vacation days and four unused sick days (at a rate of
      $484.64/day), (c) that Dr. Kohn is owed $10,664 for thirty days of notice
      time from Oct 7, 2004 to Nov 5, 2004 and $917 for rent reimbursement and
      $442 for meal and auto expense, and (d) that Dr. Kohn is entitled to
      recoup legal fees.

                

        

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      
        
          	 
      	
                  The
      Company believes that all of Dr. Kohn’s claims related to the first
      contract (see (a) above) are unenforceable since the second contract
      clearly stated that it superseded all prior claims.  With
      respect to Dr. Kohn’s claims in paragraph (b) above, the Company has
      acknowledged that it owed Dr. Kohn $12,352 as of the date of termination
      for 25 days of unused vacation time and has been using this money to pay
      his insurance premiums.  The Company further believes that Dr.
      Kohn’s claims from (c) above are without merit, since the contract had
      already lapsed on Sept 30, 2004 and the Company received an email message
      from Dr. Kohn saying that he had resigned.  Thus, either of the
      above reasons would have obviated the need for 30 days
      notice.   Similarly, the Company does not believe that Dr.
      Kohn is entitled to attorneys fees.

                    

                  In
      March 2007, the Company filed a motion to dismiss most of the third
      amended complaint, except for the count dealing with the unused vacation
      pay from the second contract (count b above), which the Company has
      acknowledged that it owed to Dr. Kohn.  On May 1, 2007, the
      judged dismissed two of the four counts that the Company had requested be
      dismissed.  On June 13, 2007, the Company filed its answer to
      Dr. Kohn’s remaining claims and the both sides are currently engaged in
      discovery.  There has been no meaningful activity on this case
      since the summer of 2007, and no trial has been set for the remaining
      matters.  Should Dr. Kohn continue to pursue this action, the
      Company intends to vigorously pursue its defense of this matter, and even
      if the Company were found liable for Dr. Kohn’s claims, the Company does
      not believe the amounts in question would be material to the ongoing
      operations of the Company.

                    

                  Thomas Schofield

                    

                  On January 16, 2009, the Borrower
      initiated litigation against Thomas Schofield, who had served as the
      Borrower’s Director of Operations from June 2005 until his resignation in
      late December 2008.  The suit, which was filed in the Circuit
      Court for the Twentieth Judicial District in and for Lee County Florida
      (the “Court”), sought the enforcement of Mr. Schofield’s Confidentiality,
      Non-Solicitation and Non-Competition Agreement.  An emergency
      trial was held on January 28, 2009 in Fort Myers, FL.  At such
      trial the judge affirmed in part and denied in part the Borrower’s request
      for a preliminary injunction against Mr. Schofield and his new employer,
      Laboratory Corporation of America (Lab Corp.).  On April 2,
      2009, the Court issued a written ruling with the specific
      injunction.  The injunction enjoins Mr. Schofield from working
      in any management capacity other than as Director of  Logistics
      for Lab Corp within 1,000 miles of the Borrower’s main headquarter
      facility in Fort Myers.  The order also enjoins Mr. Schofield
      from soliciting any of the Borrowers customers either individually or in
      concert with Lab Corp.

                    

                  Other Litigation in the Normal Course of
      Business

                    

                  The Credit Parties are also
      subject to legal proceedings, claims and litigation arising in the
      ordinary course of business where (a) the amount in controversy does not
      exceed $50,000 and (b) no injuctive relief is being sought by the
      parties.  We do not expect the ultimate costs to resolve these
      matters to have a material adverse effect on our consolidated financial
      position, results of operations or cash flows.

                
	 
      	 
      
	
                  Schedule
      7.11

                	
                  Intellectual
      Property

                    

                  The
      Company has received a registered trademark for the name “NeoGenomics” for
      use in the business in which it currently operates and related
      businesses.

                

        

      

      

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

      

       

      
        	
                Schedule
      7.15A

              	
                Existing
      Indebtedness, Investments, Guarantees and Certain
  Contracts

              
	 
      	 
      
	 
      	
                Existing
      Indebtedness of Guarantor

              
	 
      	 
      
	 
      	
                None

              
	 
      	 
      
	 
      	
                Existing
      Indebtedness and Contracts for Indebtedness by
  Borrower

              

      

      

      
        
          
            	 
      	
                    Lessor (Capitalized Leases)

                  	 	
                    Asset Description

                  	 	
                    Amount of

                    lease

                  	 	
                    Start

                    Date

                  	 	
                    Term

                  	 	
                    Term

                    Date

                  	 	
                    Payment

                  	 
	 
      	 
      	 	 
      	 	 	 	 
      	 	 	 	 
      	 	 	 
	
                    1

                  	
                    US
      Express Lease

                  	 	
                    Computer
      Equipment

                  	 	$	11,204	 	
                    Mar-07

                  	 	
                    36

                  	 	
                    Mar-10

                  	 	$	413	 
	
                    2

                  	
                    Balboa
      Capital

                  	 	
                    Furniture
      & fixtures

                  	 	 	19,820	 	
                    Apr-07

                  	 	
                    60

                  	 	
                    Mar-12

                  	 	 	441	 
	
                    3

                  	
                    VAR
      222707 - PC Connections

                  	 	
                    Computer
      Equipment

                  	 	 	6,245	 	
                    Feb-07

                  	 	
                    36

                  	 	
                    Jan-10

                  	 	 	372	 
	
                    4

                  	
                    VAR
      res 13107 - PC Connections

                  	 	
                    Computer
      Equipment

                  	 	 	3,554	 	
                    Feb-07

                  	 	
                    36

                  	 	
                    Jan-10

                  	 	 	299	 
	
                    5

                  	
                    California
      Beckman

                  	 	
                    Cytomics
      PC 500

                  	 	 	136,118	 	
                    Mar-07

                  	 	
                    60

                  	 	
                    Feb-12

                  	 	 	2,792	 
	
                    6

                  	
                    Baytree

                  	 	
                    BMC
      Software/customer svc

                  	 	 	15,783	 	
                    Mar-07

                  	 	
                    36

                  	 	
                    Mar-10

                  	 	 	552	 
	
                    7

                  	
                    Royal
      bank of america

                  	 	
                    Abbott
      molecular Thermobrite

                  	 	 	80,936	 	
                    Feb-07

                  	 	
                    48

                  	 	
                    Jan-11

                  	 	 	2,289	 
	
                    8

                  	
                    Beckman
      Coulter Lease

                  	 	
                    Flow
      Cytometer

                  	 	 	125,064	 	
                    Apr-06

                  	 	
                    60

                  	 	
                    Mar-11

                  	 	 	2,691	 
	
                    9

                  	
                    Marlin
      Lease

                  	 	
                    Ikonisys
      comupter support equip

                  	 	 	48,230	 	
                    Sep-06

                  	 	
                    60

                  	 	
                    Aug-11

                  	 	 	1,201	 
	
                    10

                  	
                    B of
      A Lease

                  	 	
                    Computer
      hardware & servers

                  	 	 	98,405	 	
                    Sep-06

                  	 	
                    60

                  	 	
                    Aug-11

                  	 	 	2,366	 
	
                    11

                  	
                    AEL
      Lease

                  	 	
                    IkoniScope

                  	 	 	100,170	 	
                    Sep-06

                  	 	
                    60

                  	 	
                    Aug-11

                  	 	 	2,316	 
	
                    12

                  	
                    GE
      Capital Corp

                  	 	
                    IkoniScope

                  	 	 	100,170	 	
                    Sep-06

                  	 	
                    60

                  	 	
                    Aug-11

                  	 	 	2,105	 
	
                    13

                  	
                    Beckman
      Coulter

                  	 	
                    Coulter
      Hematology Analyzer

                  	 	 	18,375	 	
                    Nov-06

                  	 	
                    60

                  	 	
                    Oct-11

                  	 	 	761	 
	
                    14

                  	
                    Bank
      of America

                  	 	
                    Computer
      hardware & servers

                  	 	 	8,954	 	
                    Nov-06

                  	 	
                    60

                  	 	
                    Oct-11

                  	 	 	228	 
	
                    15

                  	
                    Royal
      Bank (BMT) 24K Lease

                  	 	
                    Computer
      hardware & servers

                  	 	 	23,494	 	
                    Dec-06

                  	 	
                    48

                  	 	
                    Nov-10

                  	 	 	718	 
	
                    16

                  	
                    Royal
      Bank (BMT) 18K Lease

                  	 	
                    Computer
      hardware & servers

                  	 	 	17,661	 	
                    Dec-06

                  	 	
                    48

                  	 	
                    Nov-10

                  	 	 	549	 
	
                    17

                  	
                    Toshiba
      Lease

                  	 	
                    Phone
      system

                  	 	 	42,784	 	
                    Jan-07

                  	 	
                    60

                  	 	
                    Dec-11

                  	 	 	998	 
	
                    18

                  	
                    Key
      Equipment

                  	 	
                    Genetic
      imaging system

                  	 	 	124,820	 	
                    Aug-07

                  	 	
                    60

                  	 	
                    Jul-12

                  	 	 	3,090	 
	
                    19

                  	
                    Great
      America

                  	 	
                    Genetic
      imaging system

                  	 	 	55,920	 	
                    Aug-07

                  	 	
                    60

                  	 	
                    Jul-12

                  	 	 	1,392	 
	
                    20

                  	
                    Bank
      of America

                  	 	
                    Seacoast
      billing software

                  	 	 	74,788	 	
                    Sep-07

                  	 	
                    36

                  	 	
                    Aug-10

                  	 	 	3,125	 
	
                    21

                  	
                    Think
      Leasing/H&IT Capital

                  	 	
                    Ikoniscope,
      Great Plains s/w, etc.

                  	 	 	292,993	 	
                    Jan-08

                  	 	
                    60

                  	 	
                    Jan-13

                  	 	 	6,534	 
	 
      	 
      	 	 
      	 	$	1,405,489	 	 
      	 	 	 	 
      	 	$	35,234	 

          

        

      

      

      
        	 
      	
                Investments
      Held by Guarantor

              
	 
      	 
      
	 
      	
                $200,000
      Convertible Note Receivable from Power3 Medical Products,
    Inc.

              
	 
      	 
      
	 
      	
                Investments
      Held by Subsidiary

              
	 
      	 
      
	 
      	
                None

              

      

      

      
        
          
            	
                    Schedule
      7.15B

                  	
                    Indebtedness with a Maturity
      Date During the Term – See Schedule 7.15A

                  
	 	 
	
                    Schedule
      7.16

                  	
                    Other Agreements - See
      Schedule 7.5

                  
	 	 
	
                    Schedule
      7.17

                  	
                    Insurance

                  

          

        

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            	
                                                                    Commercial Insurance Schedule

                                                                  
	 
      	
                                                                    Broker / Agent

                                                                  	 	
                                                                    Carrier (Ins. Co)

                                                                  	 	
                                                                    Type

                                                                  	 	
                                                                    Policy Number

                                                                  	 	
                                                                    Limit

                                                                  	 	
                                                                    Effective

                                                                    Date

                                                                  	 	
                                                                    Expiration

                                                                    Date

                                                                  	 	
                                                                    Note:

                                                                  
	
                                                                    1

                                                                  	
                                                                    Gulfshore
      Insurance

                                                                  	 	
                                                                    Admiral
      Insurance Co.

                                                                  	 	
                                                                    Professional
      Liability

                                                                  	 	
                                                                    E000000559302

                                                                  	 	
                                                                    $1
      mil / $3 mil

                                                                  	 	
                                                                    10/9/2007

                                                                  	 	
                                                                    10/9/2008

                                                                  	 	
                                                                    All
      Locations

                                                                  
	
                                                                    2

                                                                  	
                                                                    Gulfshore
      Insurance

                                                                  	 	
                                                                    Travelers
      Indemnity Co. of CT

                                                                  	 	
                                                                    Workers'
      Comp

                                                                  	 	
                                                                    IACRUB-4649C88-4-07

                                                                  	 	
                                                                    EL-$500,000

                                                                  	 	
                                                                    5/4/2007

                                                                  	 	
                                                                    5/4/2008

                                                                  	 	
                                                                    All
      Locations

                                                                  
	
                                                                    3

                                                                  	
                                                                    N/A

                                                                  	 	
                                                                    Brickstreet
      Mutual Ins. Co

                                                                  	 	
                                                                    WV
      Workers Comp

                                                                  	 	
                                                                    WC10203816-01

                                                                  	 	
                                                                    EL-$500,000

                                                                  	 	
                                                                    2/19/2007

                                                                  	 	
                                                                    2/19/2008

                                                                  	 	
                                                                    WV
      Stae Ins. Co.

                                                                  
	
                                                                    4

                                                                  	
                                                                    Lott
      & Gaylor

                                                                  	 	
                                                                    FCCI
      - FL

                                                                  	 	
                                                                    Commercial
      Property

                                                                  	 	
                                                                    CP0003390-1

                                                                  	 	
                                                                    $1.7
      mil

                                                                  	 	
                                                                    4/15/2007

                                                                  	 	
                                                                    4/15/2008

                                                                  	 	
                                                                    FL
      only

                                                                  
	
                                                                    5

                                                                  	
                                                                    Lott
      & Gaylor

                                                                  	 	
                                                                    FCCI
      - FL

                                                                  	 	
                                                                    General
      Liability

                                                                  	 	
                                                                    GL00052821-1

                                                                  	 	
                                                                    $1
      mil / $2 mil

                                                                  	 	
                                                                    4/15/2007

                                                                  	 	
                                                                    4/15/2008

                                                                  	 	
                                                                    FL
      only

                                                                  
	
                                                                    6

                                                                  	
                                                                    Lott
      & Gaylor

                                                                  	 	
                                                                    FCCI
      - FL

                                                                  	 	
                                                                    Crime

                                                                  	 	
                                                                    CR0000676-1

                                                                  	 	
                                                                    $50,000

                                                                  	 	
                                                                    4/15/2007

                                                                  	 	
                                                                    4/15/2008

                                                                  	 	
                                                                    FL
      Admin only

                                                                  
	
                                                                    7

                                                                  	
                                                                    Lott
      & Gaylor

                                                                  	 	
                                                                    FCCI
      - TN

                                                                  	 	
                                                                    commercial
      Property

                                                                  	 	
                                                                    CPP0006352-2

                                                                  	 	
                                                                    $225,841

                                                                  	 	
                                                                    5/31/2007

                                                                  	 	
                                                                    5/31/2008

                                                                  	 	
                                                                    TN
      Only

                                                                  
	
                                                                    8

                                                                  	
                                                                    Lott
      & Gaylor

                                                                  	 	
                                                                    FCCI
      - TN

                                                                  	 	
                                                                    commercial
      liability

                                                                  	 	
                                                                    CPP0006352-2

                                                                  	 	
                                                                    $1
      mil / $2 mil

                                                                  	 	
                                                                    5/31/2007

                                                                  	 	
                                                                    5/31/2008

                                                                  	 	
                                                                    TN
      Only

                                                                  
	
                                                                    9

                                                                  	
                                                                    Gulfshore
      Insurance

                                                                  	 	
                                                                    Mount
      Vernon Ins.

                                                                  	 	
                                                                    commercial
      Property

                                                                  	 	
                                                                    CF2166377

                                                                  	 	
                                                                    $593,000

                                                                  	 	
                                                                    9/21/2007

                                                                  	 	
                                                                    9/21/2008

                                                                  	 	
                                                                    CA
      Only

                                                                  
	
                                                                    10

                                                                  	
                                                                    Gulfshore
      Insurance

                                                                  	 	
                                                                    Admiral
      Insurance Co.

                                                                  	 	
                                                                    commercial
      liability

                                                                  	 	
                                                                    CA00001186101

                                                                  	 	
                                                                    $1
      mil / $2 mil

                                                                  	 	
                                                                    9/21/2007

                                                                  	 	
                                                                    9/21/2008

                                                                  	 	
                                                                    CA
      Only

                                                                  
	
                                                                    11

                                                                  	
                                                                    Lott
      & Gaylor

                                                                  	 	
                                                                    FCCI
      - Ins. Co.

                                                                  	 	
                                                                    Umbrella

                                                                  	 	
                                                                    UMB0005093-1

                                                                  	 	
                                                                    $1
      mil in excess of primary

                                                                  	 	
                                                                    4/15/2007

                                                                  	 	
                                                                    4/15/2008

                                                                  	 	
                                                                    FL/TN

                                                                  
	
                                                                    12

                                                                  	
                                                                    Gulfshore
      Insurance

                                                                  	 	
                                                                    Mt.
      Hawley Ins. Co.

                                                                  	 	
                                                                    Umbrella

                                                                  	 	
                                                                    MXL0365587

                                                                  	 	
                                                                    $3
      mil excess of underlying

                                                                  	 	
                                                                    8/10/2007

                                                                  	 	
                                                                    4/15/2008

                                                                  	 	
                                                                    All
      States

                                                                  
	
                                                                    13

                                                                  	
                                                                    Gulfshore
      Insurance

                                                                  	 	
                                                                    Travelers
      Indemnity Co.

                                                                  	 	
                                                                    Auto

                                                                  	 	
                                                                    BA4547L23A

                                                                  	 	
                                                                    $1,000,000

                                                                  	 	
                                                                    6/28/2007

                                                                  	 	
                                                                    6/28/2008

                                                                  	 	
                                                                    All
      States/Any Auto

                                                                  
	
                                                                    14

                                                                  	
                                                                    Lott
      & Gaylor

                                                                  	 	
                                                                    American
      Home Assurance Co.

                                                                  	 	
                                                                    Executive
      D&O

                                                                  	 	
                                                                    108-55-03

                                                                  	 	
                                                                    $2
      mil single limit

                                                                  	 	
                                                                    6/15/2007

                                                                  	 	
                                                                    6/15/2008

                                                                  	 	
                                                                    All
      States

                                                                  

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      
        
          	
                  Schedule
      7.18A

                	
                  Borrower’s
      Names

                    

                   NeoGenomics
      Laboratories, Inc.

                  NeoGenomics
      Laboratories

                
	 
      	 
      
	
                  Schedule
      7.18B

                	
                  Chief
      Executive Offices and Other Places of Business

                   

                   Chief Executive
      Offices

                  12701 Commonwealth Drive,
      Suites 1-9

                  Fort Myers, FL
      33913

                    

                   Other Places of Business

                  618 Grassmere Park Drive, Suite
      20

                  Nashville,
      TN  37211

                    

                  6 Morgan Street, Suite
      150

                  Irvine, CA 92618

                    

                  9548 Topanga Canyon
      Blvd.

                  Chatsworth,
      CA  91311

                
	 
      	 
      
	
                  Schedule
      8.8

                	
                  Post-Closing
      Matters

                
	 
      	 
      
	
                  Schedule
      9.2

                	
                  Permitted
      Indebtedness

                   
      

                   All
      Capital Leases listed in Schedule 7.15A

                
	 
      	 
      
	
                  Schedule
      9.3

                	
                  Permitted
      Liens

                   
      

                   Purchase
      Money on all Equipment financed through the Capital Leases listed on
      Schedule 7.15A

                

        

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      
        	
                Schedule
      9.4

              	
                New
      Facilities

                  

                
                  As
      of the closing, the Company intends to open up satellite offices at the
      following locations or comparable locations in the same general
      vicinity:

                   

                  [***]

                  [***]

                  [***]

                

              

      

       

      [***]
Information redacted pursuant to a confidential treatment request. An unredacted
version of this Agreement has been filed separately with the Securities and
Exchange Commission.

      
        
           

        

        
          9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}]]