Document:

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                                                                   EXHIBIT 10.86

                           CORAM EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT (the "Agreement") is made as of the
1st day of August, 2000, between CORAM, INC. (the "Company"), and MICHAEL
SARACCO (the "Employee").

                  WHEREAS, the Company and the Employee desire to set forth the
terms and conditions of Employee's employment with the Company.

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

1.       EMPLOYMENT OF THE EMPLOYEE.

         1.1 Duties and Status

Employment Duties. The Company hereby engages the Employee as Senior Vice
President, Specialty Products of the Company. The Employee accepts such
employment on the terms and conditions set forth in this Agreement. During
Employee's employment with the Company, the Employee shall exercise such
authority and perform such duties as are normally associated with the position
of Senior Vice President, Specialty Products, as described in the job
description for such position from time to time, and such other reasonable
duties related to the operation of the Company as may be assigned to Employee
from time to time by Employee's supervisor, the Chief Executive Officer or by
the Board of Directors of the Company (the "Board").

                  (a) Time. The Employee agrees to devote substantially all of
         Employee's business time, attention, skill and best efforts to the
         performance of Employee's duties as an employee of the Company.

2.       COMPENSATION AND BENEFITS.

         2.1 Cash Compensation. As cash compensation for Employee's services
under this Agreement, the Employee shall be compensated as follows:

                  2.1.1 Base Salary. The Company shall pay the Employee an
         annual salary (the "Base Salary") in periodic equal installments in
         accordance with the normal payroll practices of the Company. Employee's
         initial Base Salary shall be Two Hundred Twenty-Five Thousand Dollars
         ($225,000) and shall be subject to periodic review.

                  2.1.2 Bonus/Incentive Plan Compensation. Employee shall be
         eligible for annual bonus compensation in an amount determined pursuant
         to the Company's Bonus or Incentive Plan as modified and in effect from
         time to time if and when Employee is eligible according to the terms
         and conditions of the particular plan.

<PAGE>
                  2.1.3 Discretionary Bonus. In addition to all other
         compensation due or payable hereunder, the Employee may be paid
         additional cash bonuses. Such cash bonuses, if any, shall be determined
         in the sole discretion of the Chief Executive Officer or by the Board.

         2.2 Additional Benefits. In addition to all compensation due or payable
hereunder, the Company will provide the Employee with additional benefits as
follows:

                  2.2.1 Expenses. The Company will reimburse the Employee for
         such reasonable out-of-pocket expenses as the Employee may incur in the
         rendition of the services contemplated hereby upon presentation of
         written documentation in accordance with the Company's then applicable
         Expense and Travel Policies.

                  2.2.2 Participation in Employee Benefit Plans. The Employee is
         entitled to participate in any health, medical, dental, disability,
         medical reimbursement and group life insurance plan and each other
         qualified or nonqualified employee benefit plan covering employees of
         the Company, if and when Employee is eligible according to the terms
         and conditions of the particular plan.

3.       SEVERANCE PROVISIONS.

         3.1 Employee's Termination or Company Termination for Cause. If the
Employee's employment under this Agreement is terminated at the Employee's
volition and upon thirty (30) days notice or the Company terminates employment
for cause (as defined below in part 3.1(d) of this Agreement), on the date of
termination the Employee shall be entitled to receive, and the Company shall pay
to the Employee:

                  (a) Base Salary and any other earned, but unpaid, compensation
         for the period ending on such termination;

                  (b) Reimbursements pursuant to Subsection 2.2.1 hereof for
         expenses incurred prior to the date of termination; and

                  (c) Benefits pursuant to Subsection 2.2.2 hereof, if any,
         payable to or on behalf of the Employee upon Employee's termination of
         employment under any employee benefit plans, under the terms and
         conditions for benefit payments set forth in such plans.

                  (d) For purposes of this Agreement, "for cause" shall mean
         conduct by the Employee amounting to: (i) fraud or dishonesty in the
         course of employment with the Company; (ii) willful misconduct or
         knowing violation of law in the course of employment with the Company;
         (iii) a conviction or plea of guilty or nolo contendere to a felony, or
         other crime involving dishonesty or relating in any way to Employee's
         job duties; or (iv) failure or refusal to satisfactorily perform
         Employee's job duties or functions; provided, however, that nothing in
         this Section 3 or any other part of the Agreement shall alter in any
         way the At-Will employment relationship between the parties as
         described in Section 12, Status, below.

<PAGE>
         3.2 Company's Termination Without Cause.

                  3.2.1 Separation Benefits. If the Employee's employment under
         this Agreement is terminated by the Company without cause and upon the
         execution by Employee of the Company's Standard Separation and Waiver
         Agreement as described below, the Employee shall be entitled to
         receive, and the Company shall pay or provide to the Employee:

                           (a) the amounts and benefits set forth in Sections
         3.1(a), (b) and (c);

                           (b) an additional amount in the form of Base Salary
         (at the rate in effect at the time of termination) and health benefits
         (subject to the terms and conditions in effect at the time of
         termination) for a period of time equal to one month for each completed
         year of service as of Employee's termination date; with a minimum of
         six (6) months and a maximum of twelve (12) months in accordance with
         the Company's current Separation Pay and Benefit Plan ("Severance").
         Such health benefits will be provided under COBRA coverage and Employee
         will be required to continue paying his or her portion of the premium
         (at the rate in effect at the time of the termination) for the
         Severance period.

                  3.2.2 Payment Method. Severance payments shall be made
         according to the regular and customary payroll and benefits practices
         of the Company and subject to the terms and condition of the Company's
         standard Separation and Waiver Agreement. Such payments shall not be
         made unless and until Employee executes and delivers a Separation and
         Waiver Agreement, including a general release of the Company (in a form
         reasonably satisfactory to and prepared by the Company) from all claims
         by the Employee relating to employment or the termination of
         employment, except for the obligations of the Company under this
         Agreement.

4.       RESTRICTIVE COVENANTS.

         4.1 Nondisclosure and Confidentiality.

                  4.1.1 Employee acknowledges that, the information,
         observations, and data obtained by Employee during employment with the
         Company pertaining to the business or affairs of the Company are the
         property of the Company, all of which is hereby agreed to constitute
         confidential information of the Company ("Confidential Information").
         To ensure the continued secrecy and confidentiality of such
         Confidential Information, Employee hereby covenants and agrees that
         during the Employee's employment with the Company and for a period of
         five (5) years after Employee's termination, Employee shall keep secret
         and shall not divulge any of the names of, or any other information
         relative to, the clients, business and affairs of Company, and any and
         all business associations or activities of Company and its clients or
         any other information, observation, or data that Employee acquires
         during Employee's employment with the Company. Employee also further
         covenants and agrees that Employee will not keep, or use for Employee's
         personal advantage, either directly or indirectly, any written
         Confidential Information (regardless of the manner or form in which
         such documentation exists) relative to the business or affairs of the
         Company or its clients and, furthermore, will not furnish or make
         available any such information to any third party.

<PAGE>
                  4.1.2 Employee acknowledges that the Company's trade secrets
         include, but are not limited to, accounting, financing and pricing
         information, pricing and business analysis tools, processes, formulae,
         data, know-how, software programs, improvements, marketing materials,
         inventions (whether patentable or not), techniques, marketing plans,
         strategies, forecasts, computer programs and other copyrightable
         material, the compensation and terms of employment of other employees,
         customers and customer lists, and other information relating to the
         Company's business which is secret and of value ("Trade Secrets"). The
         parties agree that such Trade Secrets are the property of the Company,
         shall remain under the full control of the Company and shall be
         provided to Employee on a need to know basis. In consideration for
         entering into this Agreement, Employee hereby covenants and agrees that
         during the Employee's employment with the Company and after Employee's
         termination, Employee shall not divulge to any third party at any time
         any information regarding such Trade Secrets or the substance thereof
         without the prior written consent of the Company and, furthermore, with
         respect to such Trade Secrets, Employee shall comply with all of the
         provisions of Section 4 hereof.

         4.2 Agreement Not to Solicit Employees. During the Employee's
employment with the Company and for a period of one (1) year following the
termination of such employment, provided the Company is not in breach or default
hereof, the Employee shall not on the Employee's own behalf or on behalf of
others, either directly or indirectly, solicit, divert or hire, or attempt to
solicit, divert or hire, employees of the Company, whether the employment of any
such person is pursuant to a written agreement, for a determined period, or
at-will.

         4.3 Agreement Not to Solicit Company Clients. During the Employee's
employment with the Company and for a period of one (1) year following the
termination of such employment, provided the Company is not in breach or default
hereof, the Employee shall not on the Employee's own behalf or on behalf of
others, either directly or indirectly, contact, solicit, divert, take away or
attempt to contact, solicit, divert, or take away any Company Client. For
purposes of this Agreement, "Company Client" shall mean any person, corporation,
partnership, entity or legal organization to whom the Company sold its services
or products or solicited to sell its products or services during the twelve (12)
months prior to the termination of Employee's employment.

         4.4 Agreement Not to Compete. Employee acknowledges that Employee is an
executive or a manager for the Company and as such, has access to information
which represents Trade Secrets and Confidential Information of the Company.
Employee further acknowledges that, should Employee perform work or services for
a Competing Business, as defined below, (in any capacity including, but not
limited to, as an employee, officer, agent, consultant or independent
contractor), Employee necessarily would rely on or inevitably disclose such
Trade Secrets and Confidential Information. As a result, Employee agrees that,
during the Employee's employment and for a period of one (1) year following the
termination of such Employment, provided the Company is not in breach or default
hereof, the Employee shall not (except with the prior written consent of the
Company), within the Restricted Territory as defined below, either directly or
indirectly, on Employee's own behalf or in the service or on behalf of others,
as an

<PAGE>
employee, officer, agent, consultant, or independent contractor, or in any other
capacity which involves duties and responsibilities similar to those the
Employee has undertaken for the Company, engage in any Competing Business.

                  4.4.1 As used in this Agreement, "Restricted Territory" means
         Ontario, Canada, and any state within the United States in which the
         company was engaged in business as of Employee's termination date. As
         used in this Agreement, "Competing Business" means any business
         organization (of whatever form) engaged in any business or enterprise
         that, in whole or in part, is the same as, or substantially the same
         as, the business of the Company or the Company's research and
         development efforts.

                  4.4.2 The covenants set forth in this Agreement shall be
         considered and construed as separate and independent covenants. If, at
         the time of enforcement of this Section 4, a court shall hold that the
         duration, scope or area restrictions stated herein are unreasonable
         under circumstances then existing, the parties agree that the maximum
         duration, scope or area reasonable under such circumstances shall be
         substituted for the stated duration, scope or area and that the court
         shall be allowed to revise the restrictions contained herein to cover
         the maximum period, scope and area permitted by law.

         4.5 Materials and Inventions. All work performed, and all materials,
products, deliverables, improvements, discoveries, inventions and other subject
matter conceived, developed or prepared by Employee alone or with others, during
the period of Employee's employment with the Company (collectively the
"Materials"), are the property of the Company and all title and interest therein
shall vest in the Company and all Materials shall be deemed to be works made for
hire and made in the course of Employee's employment with the Company. To the
extent that title to any Materials may not, by operation of law, vest in the
Company or such Materials may not be considered works for hire, Employee hereby
irrevocably assigns all right, title and interest therein to the Company.
Employee agrees to give the Company and any person designated by the Company, at
Company's expense, any assistance required to perfect and enforce the rights
defined in this Section 4.5. If Company is unable for any reason whatsoever to
secure Employee's signature to any lawful and necessary documents required to
apply for or execute any patent, copyright or other applications with respect to
such Materials (including renewals, extensions, or continuations thereof),
Employee hereby irrevocably designates and appoints the Company and its duly
authorized officers and agents, and each of them, as Employee's agents and
attorneys-in-fact to act for and on Employee's behalf and instead of Employee,
to execute and file any such application and to do all other lawfully permitted
acts to further the prosecution and issuance of patents, copyrights or other
rights thereof with the same legal force and effect as if executed by Employee.

                  4.5.1 As a matter of record, attached as Exhibit A to this
         Agreement is a complete list of all existing Materials relevant to the
         subject matter of Employee's employment by the Company to which
         Employee claims ownership as of the date of this Agreement, that
         Employee desires to specifically exclude from this Agreement, and that
         Employee agrees comprise a complete list of such Materials. If nothing
         is listed in this Agreement or Exhibit A, Employee represents that he
         or she has no such Materials.
<PAGE>
                  4.5.2 Notwithstanding the foregoing, this Agreement does not
         require assignment of any Materials which Employee cannot be obligated
         to assign under any applicable law of the state in which Employee is
         employed by the Company, including any statutes or regulations set
         forth or described in Exhibit B hereto. However, Employee will disclose
         any Materials as required by Section 4.5 hereof regardless of whether
         Employee believes the Materials to be protected by such statute or
         regulation in order to permit the Company to engage in a review process
         to determine such issues as may arise. Such disclosure shall be
         received in confidence by the Company.

         4.6 Obligations to Former Employers. Employee represents that the
execution of this Agreement, Employee's employment with the Company and
Employee's performance of his or her proposed duties to the Company in the
development of its business, will not violate any obligations Employee may have
to any former employer.

         4.7 Remedies. The Employee agrees that the covenants contained in
Section 4 of this Agreement are of the essence of this Agreement; that each of
such covenants is reasonable and necessary to protect and preserve the
interests, properties and business of the Company; and that irreparable loss and
damage will be suffered by the Company should the Employee breach any of such
covenants. Therefore, the Employee agrees and consents that, in addition to all
the remedies provided at law or in equity, the Company shall be entitled to a
temporary restraining order and temporary and permanent injunctions to prevent a
breach or contemplated breach of any of the covenants. Except as expressly
provided herein, the existence of any claim, demand, action or cause of action
of the Employee against the Company shall not constitute a defense to the
enforcement by the Company of any of the covenants or agreements herein.
Jurisdiction and venue over any action by the Company to obtain a temporary
restraining order or temporary or permanent injunction to prevent or remedy the
breach by Employee of any of the covenants herein shall be in the United States
District Court for the District of Colorado or in Denver District Court without
regard to conflict of laws.

5.       NOTICES.

         Any notices, requests, demands and other communications provided for by
this Agreement shall be sufficient if in writing and shall be deemed given when
hand delivered or sent by registered or certified mail to the Employee at the
last address on file with the Company or, in the case of the Company, with its
Legal Department at the Denver, Colorado corporate office.

6.       BINDING AGREEMENT.

         This Agreement shall be effective as of the date hereof and shall be
binding upon and inure to the benefit of the Employee, Employee's heirs,
personal and legal representatives, guardians and permitted assigns. The rights
and obligations of the Company under this Agreement shall inure to the benefit
of and shall be binding upon any successor of the Company.

7.       ENTIRE AGREEMENT.

         This Agreement constitutes the entire understanding of the Employee and
the Company with respect to the employment of the Employee and supersedes any
and all prior arrangements,

<PAGE>
understandings or agreements, whether written or oral, including Employee's
prior Employment Agreement(s), or Confidentiality, Proprietary Information and
Inventions Agreement(s) between the parties or between Employee and an
affiliate, subsidiary, parent or predecessor of the Company. This Agreement may
not be changed, modified or discharged orally, but only by an instrument in
writing signed by the parties.

8.       ARBITRATION.

         (a) Except for actions brought by the Company pursuant to Subsection
4.7 herein, to the extent permitted by applicable law, any dispute or
controversy arising under or in connection with this Agreement shall be resolved
exclusively by arbitration using one arbitrator in Denver, Colorado, under the
auspices of and in accordance with the Employment Arbitration rules of the
American Arbitration Association then in effect. The agreement set forth herein
to arbitrate shall be specifically enforceable under prevailing arbitration law.

         (b) Notice of the demand for arbitration shall be filed in writing with
the other party to this Agreement and with the American Arbitration Association.
The demand for arbitration shall be made within a reasonable time after the
claim, dispute or other matter in question has arisen, and in no event shall it
be made after the date when institution of legal or equitable proceedings based
on such claim, dispute or other matter in question would be barred by the
applicable statute of limitations.

         (c) The award rendered by the arbitrator shall be final and judgment
may be entered upon it in accordance with applicable law in any court having
jurisdiction thereof. The findings of fact and conclusions of law of the
arbitrator shall be reduced to writing.

9.       GOVERNING LAW.

         This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Colorado.

10.      SEVERABILITY.

         The invalidity or unenforceability of any provisions hereof, including
the terms of any of the Exhibits attached hereto, shall in no way affect the
validity or enforceability of any other provision.

11.      TAX WITHHOLDING.

         All payments made by the Company to the Employee under this Agreement
shall be subject to applicable federal, state and local tax withholding.

12.      STATUS.

         BY EMPLOYEE'S SIGNATURE BELOW, EMPLOYEE ACKNOWLEDGES THAT EMPLOYMENT
WITH THE COMPANY IS AT-WILL, MEANING EMPLOYEE OR THE COMPANY MAY TERMINATE THAT
EMPLOYMENT RELATIONSHIP AT ANY TIME WITHOUT NOTICE, CAUSE, OR ANY SPECIFIC
DISCIPLINARY

<PAGE>
PROCEDURES. NOTHING IN THIS AGREEMENT OR ANY OTHER POLICY, PRACTICE, PROCEDURE,
OR BENEFIT OF THE COMPANY CONSTITUTES AN EXPRESS OR IMPLIED CONTRACT, GUARANTEE,
PROMISE, OR COVENANT OF EMPLOYMENT FOR A SPECIFIED TERM OR FOR TERMINATION ONLY
FOR CAUSE.

              IN WITNESS WHEREOF, the parties knowingly and voluntarily have
executed, sealed and delivered this Agreement as of the date first above
written.

                                       COMPANY:

                                       By:  /s/ VITO PONZIO, JR.
                                          --------------------------------------
                                          Name:  Vito Ponzio, Jr.
                                               ---------------------------------
                                          Title: Senior Vice President
                                                --------------------------------

WITNESS:                               EMPLOYEE:

/s/ STEFANIA ESKRIDGE                  By: /s/ MICHAEL SARACCO
-------------------------------------     --------------------------------------
                                                Michael Saracco

<PAGE>
                                    EXHIBIT A

         The following is a complete list of all existing Inventions or
Improvements pursuant to Section 4 of the Agreement:

------------------------------------------------------------------------------

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------------------------------------------------------------------------------

------------------------------------------------------------------------------

------------------------------------------------------------------------------

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         If nothing is listed in this space, I represent I have no Inventions or
Improvements.

<PAGE>
                                    EXHIBIT B

Section 2870 of the California Labor Code

                  Section 2870. APPLICATION OF PROVISION PROVIDING THAT EMPLOYEE
SHALL ASSIGN OR OFFER TO ASSIGN RIGHTS IN INVENTION TO EMPLOYER.

                  (a) Any provision in an employment agreement which provides
that an employee shall assign, or offer to assign, any of his or her rights in
an invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer's
equipment, supplies, facilities, or trade secret information except for those
inventions that either:

                           (1) Relate at the time of conception or reduction to
practice of the invention to the employer's business, or actual or demonstrably
anticipated research or development of the employer; or

                           (2) Result from any work performed by the employee
for his employer.

                  (b) To the extent a provision in an employment agreement
purports to require an employee to assign an invention otherwise excluded from
being required to be assigned under subdivision (a), the provision is against
the public policy of this state and is unenforceable.<PAGE>
                                                                   EXHIBIT 10.87

                                             Agreement No.______________________

                              B. BRAUN MEDICAL INC.
                                    AGREEMENT
                                       FOR
                             VISTA(R) BASIC IV PUMPS

THIS AGREEMENT ("Agreement") is by and between CORAM HEALTHCARE CORPORATION., as
debtor ("Customer") and B. Braun Medical Inc. ("B.Braun").

B. Braun Medical Inc. ("B.Braun") hereby agrees to sell to Customer, and
Customer hereby agrees to purchase from B.Braun, the products described below
(collectively, the "Equipment") on the terms and conditions in this Agreement:

<TABLE>
<CAPTION>
  QUANTITY   CATALOG/ REORDER #       DESCRIPTION        PRICE PER UNIT   EXTENDED PRICE
  --------   ------------------       -----------        --------------   --------------
                                                                                           ----------------------------------------
<S>          <C>                  <C>                    <C>              <C>              <C>                        <C>
                                                                                           TOTAL EXTENDED PRICE        $751,000.00
     500          637-102         VISTA BASIC IV PUMPS      $1,502.00       $751,000.00      LESS TRADE-IN            ($125,000.00)
                                                                                           NET EXTENDED PRICE         ($626,000.00)
B.Braun will also credit Customer for returning the following products to                  EXTENDED LIMITED WARRANTY    $48,000.00
B.Braun as a trade in:                                                                                                -------------

     500         TRADE INS          BAXTER 3030 PUMPS       ($250.00)      ($125,000.00)   TOTAL PURCHASE PRICE        $674,000.00
                                                                                           ----------------------------------------
</TABLE>

TRADE-INS. Customer shall ship all trade-in products to B.Braun, free and clear
of all liens and encumbrances, within seventy-five (75) days after its receipt
of the Equipment. If the trade-in products are not sent to B.Braun as required
herein, Customer will not receive a trade-in credit for the amount of the
shortfall, and B.Braun will invoice Customer for the shortfall amount. Customer
shall pay such invoice within then (10) days of the invoice date. Customer
represents and warrants that it has good and marketable title to the trade-in
products and has the right to transfer such products to B.Braun.

PURCHASE PRICE. Customer shall pay to B.Braun a TOTAL PURCHASE PRICE OF
$674,000.00 (THE "PURCHASE PRICE"). The Purchase Price is exclusive of any
freight or shipping costs and any sales, use, or other taxes, which shall be
added to the invoice amount. If Customer is tax exempt, it shall provide B.Braun
with a copy of its tax exemption certificate to avoid being charged sales tax.

PAYMENT. $337,000.00 of the Purchase Price is due by wire transfer of funds from
Customer to B.Braun upon execution of this Agreement, and the remaining balance
of the Purchase Price is due by wire transfer of funds from Customer to B.Braun
on May 1, 2003, (or upon the delivery date of all 500 units of Equipment, if
sooner). Notwithstanding the foregoing, in the event that not all 500 units of
Equipment are delivered by May 1, 2003, Customer shall deduct from the second
wire transfer such amount equal to the shortfall amount multiplied by $674.00,
and pay the balance amount owing when B.Braun delivers Customer the amount of
the shortfall).

DELIVERY. B.Braun shall deliver the Equipment to Customer by April 12, 2003. All
Equipment will be shipped to the following address: c/o Medical Specialties
Distributors, 704 Oak Creek Drive, Lombard, Illinois 60148. Shipment of the
Equipment will be made F.O.B. origin. All shipping dates quoted whether verbal
or written are approximate only.

WARRANTIES. The standard product warranty and the Extended Limited Warranty,
described in the Extended Warranty Program Agreement (collectively, the "Product
Warranty") made by B.Braun is attached hereto and made a part of this Agreement.
The Purchase Price includes the cost of the Extended Limited Warranty, which
will cover the Equipment, in a accordance with its terms, for a period of one
year after expiration of the two year standard product warranty. Notwithstanding
the terms of the Product Warranty, the rights of "Customer" thereunder shall
extend to any entity that is the successor to Customer pursuant to Curaflex
Health Services, Inc. or any other affiliated company of Customer.

USE, ALTERATIONS. Customer agrees to use and operate the Equipment in a careful
and lawful manner, and shall use the Equipment only for the purposes and in
accordance with the instructions indicated on the labeling of or included with
the Equipment. Customer represents that it has examined the Equipment and that
it is acceptable and clinically suitable for Customer's purposes. Customer shall
not remove or alter any trademarks, tradenames, labels or serial numbers that
are on the Equipment.
<PAGE>
COMPLIANCE WITH LAWS, REPORTING AND DEVICE TRACING. Customer shall comply with
all applicable laws, rules and regulations applicable to the purchase,
operation, maintenance and use of the Equipment. Customer acknowledges that it
is familiar with the Safe Medical Devices Act of 1990 (the "Devices Act") and
the reporting obligations imposed on device users thereunder. In this regard,
Customer agrees to notify B.Braun within ten (10) days of the occurrence of any
event identified in the Devices Act imposing a reporting obligation on Customer
and/or B.Braun (except for events representing an imminent hazard that requires
notification to the United States Food and Drug Administration (the "FDA")
within seventy-two hours, in which case, such notice will be delivered to the
other party immediately). Customer shall maintain adequate tracking for the
Equipment to enable B.Braun to meet the FDA requirements applicable to the
tracking of medical devices.

REIMBURSEMENT REPORTING. If any pricing hereunder constitutes a discount or
other reduction in price under Section 1128(b)(3)(A) of the Social Security Act,
42 U.S.C. 1320a-7b(b)(3)(A), Customer shall disclose the discount or reduction
in price to the full extent required under any state or federal program which
provides cost or charge based reimbursement to Customer for Equipment covered
hereunder. This Act requires, among other things, that Customer fully and
accurately report on any claim or request for payment it submits to Medicare and
Medicaid the actual purchase price paid by Customer for the Equipment, net of
any discounts, rebates or allowances provided to Customer hereunder.

MISCELLANEOUS:

B.Braun shall be excused from any delay in, or impossibility of, performance due
to any cause beyond its or its supplier's or sub-contractor's control, including
but not limited to, acts of God, war, acts of government, regulatory agencies or
judicial bodies, acts of Customer or third parties, raw materials shortages,
energy or fuel shortages, fire, flood, strike or labor trouble, sabotage, or
delay in obtaining labor, materials, equipment or transportation. In the event
of any such delay, B.Braun may allocate the Equipment among all of its
customers, without penalty or liability.

In no event shall B.Braun be liable to Customer for any indirect, incidental,
special, consequential or punitive damages (including damages for lost profits)
arising out of or in connection with the sale, delivery, use, performance or
service of the Equipment, or otherwise, whether based in contract, warranty,
tort (including negligence) or any other legal or equitable theory. B.Braun's
total liability for any claim related to this Agreement or the Equipment shall
not exceed the Purchase Price of the Equipment out of which such claim arose.

B.Braun agrees to indemnify and hold Customer and its successors and assigns
harmless from and against any and all liability, damages and claims (including
expenses of litigation, investigator's fees and attorneys' fee, settlements and
damages) asserted by persons other than Customer arising from or related to
defects in materials and/or workmanship of the Equipment, except to any extent
due to the acts or omissions of Customer or its employees, agents or
representatives or any other party. Customer shall immediately submit all such
claims to B.Braun and B.Braun shall control the defense thereof. If Customer
desires to join any defense of such claim, it shall be entitled to do so at its
sole cost and expense. Customer agrees to cooperate with B.Braun and its
counsel.

This Agreement is made under Pennsylvania law, excluding its laws of conflict of
law. Any claims or causes of action relating to this Agreement or the Equipment
shall be tried by a court and not a jury. CUSTOMER HEREBY UNCONDITIONALLY WAIVES
ITS RIGHTS TO A JURY TRIAL IN ANY SUCH ACTION OR CLAIMS. If any clause herein is
determined invalid or unenforceable by a court of competent jurisdiction, the
remainder of this Agreement shall remain valid and enforceable to the fullest
extent permitted by law.

Customer hereby represents and warrants that (i) the transactions contemplated
by this Agreement are within the ordinary course of Customer's business,(ii) it
has the right and power to enter into this Agreement and to perform all of its
obligations hereunder; (iii) this Agreement, when executed and delivered to
B.Braun will be a legal, valid and binding obligation of Customer enforceable
against it in accordance with its terms, and (iv) neither the execution of this
Agreement nor Customer's performance of its obligations hereunder conflicts with
or contravenes any other contract, agreement or instrument to which Customer or
its assets or property is bound.

This Agreement, and any attachments checked in the box below, constitutes the
entire agreement between the parties with respect to the subject matter hereof.
Any terms or conditions on any purchase order or other document that is
inconsistent or additional shall be without force and effect. All prior
negotiations, representations, discussions, or agreements concerning the subject
matter hereof, whether express or implied, oral or written, are cancelled and of
no force and effect. The obligations, rights and liabilities of the parties
under the provisions of this Agreement shall survive this Agreement in
accordance with their terms.

This Agreement may be executed in one or more counterparts, all of which shall
constitute one original agreement for all purposes. Any and all counterpart
signatures may be executed by facsimile or electronic means and any signature so
executed shall be deemed an original signature of the executing party.
<PAGE>
Intending to be legally bound hereby, the parties have caused their duly
authorized representatives to execute and deliver this Agreement as of the date
set forth below.

CORAM HEALTHCARE CORPORATION            Date Signed by Customer: April 11, 2003
                                                                ---------------

By: /s/ SCOTT R. DANITZ
   ----------------------------------
                (Signature)

Name: Scott R. Danitz
      -------------------------------
             (Type or print name)

Title: Senior Vice President, CFO &
       Treasurer
      -------------------------------

B. BRAUN MEDICAL INC.

By: /s/ ROBERT G. TICE                  Date Signed by B. Braun:  April 11, 2003
   ----------------------------------                            ---------------
                 (Signature)

Name:  Robert G. Tice
       ------------------------------
               (Type or print name)

Title: Executive V.P., Chief
       Sales & Marketing Officer
      -------------------------------

--------------------------------------------------------------------------------
FOR INTERNAL USE ONLY:                  ADDITIONAL FORMS ATTACHED
Shipping Date: __________________       [X]  Product Warranty
Other: __________________________       [X]  Extended Warranty Program Agreement
--------------------------------------------------------------------------------

<PAGE>
                              B. BRAUN MEDICAL INC.
                         Vista(TM) Basic Infusion Device
                                PRODUCT WARRANTY

B. Braun Medical Inc. ("B.Braun") warrants to and only to the original purchaser
or lessee ("Customer") of the Vista(TM) Basic Infusion Device ("Equipment") that
reasonable care has been used in the manufacture of each unit of Equipment and
that, when properly used and maintained by Customer, it shall be free from
defects in material and workmanship in accordance with its specifications for a
period of two (2) years from the date of shipment of such Equipment by B.Braun
("Warranty Period"). Any unit of Equipment that is found by B.Braun not to meet
these standards within this Warranty Period will, at B.Braun's sole option, be
repaired or replaced without charge. Any defective unit of Equipment or
component thereof should be returned promptly to B.Braun, properly packaged and
with postage prepaid by Customer. Customer shall provide labor for the removal
of defective Equipment and installation of its replacement, and shall bear all
risk of loss or damage while in transit. In the event no breach of warranty is
discovered by B.Braun upon receipt of any returned item, the item will be
returned to Customer at Customer's expense.

This Warranty is valid only if the Equipment is operated and maintained as
described in B.Braun's operator's manuals, supplements or other operating
instructions. This Warranty shall not apply to any Equipment or component
thereof if (1) any repairs, alterations, or other work has been performed on the
Equipment or any component thereof by anyone other than B.Braun or a technician
or repair facility authorized in writing by B.Braun; (2) the Equipment is
altered in any manner that, in B.Braun's sole judgement, affects its stability
or reliability; (3) the alleged condition or defect is a result of the misuse,
improper cleaning or improper handling, negligence, accident or improper
maintenance of any party; (4) the Equipment is not used in accordance with its
instructions for use furnished by B.Braun or is not used for its intended
purpose.

Any defect or condition that has been caused by the misuse, unauthorized
modification, or abnormal conditions of operation, or that is otherwise excluded
from this Warranty, will be repaired by B.Braun at its then current repair
charges. In this case, upon the request of Customer, B.Braun will submit an
estimate of the repair cost to Customer prior to making any repairs.

This Warranty does not extend to damages to, or resulting in whole or in part
from the use of, components, accessories, parts or supplies not supplied by
B.Braun for use with the Equipment. Products or components not manufactured by
B.Braun are not warranted by B.Braun, and Customer must rely on the warranties,
if any, provided directly be the manufacturer of such product or component.

EXCEPT AS EXPRESSLY PROVIDED HEREIN, B.BRAUN MAKES NO WARRANTY OF ANY KIND,
EXPRESS OR IMPLIED BY OPERATION OF LAW OR OTHERWISE WITH RESPECT TO THE
EQUIPMENT INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The sole and exclusive
remedy of Customer for breach by B.Braun of any warranty shall be limited, at
B.Braun's sole election, to the repair or replacement of the unit of Equipment
or any component thereof. In no event shall B.Braun be liable to Customer for
any indirect, incidental, special, consequential or punitive damages (including
damages for lost profits) arising out of or in connection with the delivery, use
or service of any Equipment or the performance, use or inability to use the
Equipment or otherwise, whether based in contract, warranty, tort (including
negligence) or any other legal or equitable theory.

B.Braun neither assumes, nor authorizes any person to assume for it, any
additional liability or responsibility in connection with the Equipment and no
agent, employee or representative of B.Braun has the right to modify or expand
the warranties set forth herein and no such modification or expansion should by
relied upon by Customer.

          B. BRAUN MEDICAL INC. 824 TWELFTH AVENUE, BETHLEHEM, PA 18018
                        CUSTOMER SUPPORT 1 (800) 627-7867                2/3/03
<PAGE>

                              B. BRAUN MEDICAL INC.

                       EXTENDED WARRANTY PROGRAM AGREEMENT

The undersigned Coram Healthcare Corporation, as debtor ("Customer") is
purchasing 500 Vista Basic IV Pumps (the "Equipment") from B. Braun Medical Inc.
("B.Braun") under its purchase agreement dated April 11, 2003 (the "Contract").

In connection with the Contract, Customer has elected to purchase from B.Braun
the following additional product warranty:

TYPE AND PERIOD OF WARRANTY PURCHASED BY CUSTOMER:

Extended Limited Warranty for a period of one (1) year at a purchase price of
$96.00 per unit of Equipment per year, for an aggregate purchase price of
$48,000.00 per year (said period to commence upon termination of the Warranty
Period under B.Braun's Product Warranty for the Vista(TM) Basic Infusion
Device).

PAYMENT:

The applicable purchase price set forth above shall be referred to as the
"Annual Warranty Price." The Annual Warranty Price shall be paid by Customer to
B.Braun as provided in the Contract. This Extended Warranty Program Agreement is
subject to the terms and conditions in the Contract, and the Contract is hereby
incorporated herein, by reference thereto.

WARRANTY DESCRIPTION:

The Extended Limited Warranty Program provides for repair by factory trained
technicians at the manufacturing facility, subject to the terms of this
agreement. The Extended Limited Warranty shall commence immediately after
expiration of B.Braun's standard factory warranty covering such type of
equipment (which is two year from date of shipment). During the Extended Limited
Warranty period, B.Braun shall repair or replace, at B.Braun's option and at no
cost to Customer, any unit of Equipment determined by B.Braun to have defects in
material or workmanship. To initiate the repair or replacement of a defective
unit of Equipment, Customer must notify B.Braun at (800) 627-PUMP and fully
complete and deliver to B.Braun a Returned Material Authorization Form ("RMA").
All defective items must be properly packaged and shipped freight prepaid to
B.Braun at the address indicated on the RMA. Any loss or damage during shipment
of any defective Equipment to B.Braun shall be at the sole risk of Customer.
Only Equipment appearing on an RMA shall be acceptable for repair or
replacement. If B.Braun determines that any defect or condition in any unit of
Equipment has been caused by the misuse, unauthorized modification, or abnormal
conditions of operation, B.Braun shall repair the item at a cost to Customer
equal to its then current repair charges. In such case, B.Braun shall provide
Customer with an estimate of the repair cost prior to making any repairs.

WARRANTY EXCLUSIONS

The Extended Limited Warranty shall not apply:

         o   to any cosmetic upgrades, including cosmetic bezels, case tops,
             case bottoms and key pads;

                                       1
<PAGE>

         o   if any condition or defect is a result of the misuse, improper
             cleaning or improper handling, negligence, abuse, accident or
             improper maintenance of any party other than B.Braun;

         o   if the Equipment and/or the repair kit is not used in accordance
             with its instructions for use furnished by B.Braun or is not used
             for its intended purpose;

         o   if any repairs, alterations, or other work has been performed on
             the Equipment or any component thereof by anyone other than B.Braun
             or a technician or repair facility authorized in writing by
             B.Braun; or

         o   the Equipment is altered in any manner that, in B.Braun's sole
             judgement, affects its stability or reliability;

Batteries are not included in the Extended Limited Warranty. The Extended
Limited Warranty is valid only if the Equipment is operated and maintained as
described in B.Braun's operator's manuals, supplements or other operating
instructions. This Extended Limited Warranty does not extend to damages to, or
resulting in whole or in part from the use of, components, accessories, parts or
supplies not supplied by B.Braun for use with the Equipment. Products or
components not manufactured by B.Braun are not warranted by B.Braun, and
Customer must rely on the warranties, if any, provided directly be the
manufacturer of such product or component.

Any defect or condition that has been caused by the misuse, unauthorized
modification, or abnormal conditions of operation, or that is otherwise excluded
from this Warranty, will be repaired by B.Braun at its then current repair
charges. In this case, upon the request of Customer, B.Braun will submit an
estimate of the repair cost to Customer prior to making any repairs.

EXCLUSIVE REMEDY

EXCEPT AS EXPRESSLY PROVIDED HEREIN, B.BRAUN MAKES NO WARRANTY OF ANY KIND,
EXPRESSED OR IMPLIED BY OPERATION OF LAW OR OTHERWISE WITH RESPECT TO THE
EQUIPMENT INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE SOLE AND EXCLUSIVE
REMEDY OF CUSTOMER FOR BREACH BY B.BRAUN OF ANY WARRANTY PURCHASED BY CUSTOMER
HEREIN SHALL BE LIMITED, AT B.BRAUN'S SOLE ELECTION, TO THE REPAIR OR
REPLACEMENT OF THE UNIT OF EQUIPMENT OR ANY COMPONENT THEREOF OR THE SERVICES
PROVIDED. IN NO EVENT SHALL B.BRAUN BE LIABLE TO CUSTOMER FOR ANY INDIRECT,
INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING DAMAGES FOR
LOST PROFITS) ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE OR SERVICE
OF ANY EQUIPMENT OR THE PERFORMANCE, USE OR INABILITY TO USE THE EQUIPMENT OR
OTHERWISE, WHETHER BASED IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE) OR
ANY OTHER LEGAL OR EQUITABLE THEORY.

B.Braun neither assumes, nor authorizes any person to assume for it, any
additional liability or responsibility in connection with the Equipment and no
agent, employee or representative of B.Braun has the right to modify or expand
the warranties set forth herein and no such modification or expansion should by
relied upon by Customer.

                                       2
<PAGE>
TERM

The Extended Limited Warranty shall remain in effect for the period identified
on the front page of this agreement, unless terminated earlier by B. Braun due
to Customer's failure to pay any amounts due hereunder. In the event of
termination by B. Braun, B. Braun shall be entitled to the Annual Warranty Price
for the remainder of the warranty period as if such termination did not occur.

This Extended Warranty Program Agreement shall not become effective unless
signed below by B. Braun.

Agreed to:

CORAM HEALTHCARE CORPORATION,               B. BRAUN MEDICAL INC.
as debtor

By:  /s/ SCOTT R. DANITZ                    By: /s/ ROBERT G. TICE
   ---------------------------------           --------------------------------
       (Customer Signature)                         (Authorized Signature)

Print Name: Scott R. Danitz                 Print Name: Robert G. Tice
           -------------------------                   ------------------------

Title Senior Vice President, CFO &          Title Executive V.P., Chief Sales &
      Treasurer                                   Marketing Officer
     -------------------------------             ------------------------------

Date April 11, 2003                         Date April 11, 2003
    --------------------------------            -------------------------------

                                       3

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