Document:

EXHIBIT 10.1 

  

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated Employment Agreement
(“Agreement”) is made as of November 25, 2013, between BioScrip, Inc. (the “Company”), and
Richard M. Smith (the “Executive”).

 

WHEREAS, the Company and the Executive previously
entered into an Employment Agreement dated as of December 23, 2010 (the “Prior Employment Agreement”); and

 

WHEREAS, the Company desires to retain and
employ the Executive and the Executive desires to be retained and employed by the Company on the terms contained in this Agreement,
which shall supersede the Prior Employment Agreement as of the effective date above.

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:

 

1.    
      Position and Duties.

 

(a)          The
Executive shall serve as the Company’s President and Chief Executive Officer of the Company reporting to the Company’s
Board of Directors (the “Board”).

 

(b)          The
Executive shall perform those services customary to this office and such other lawful duties that the Board may be reasonably assign
to him. The Executive shall devote all of his business time and best efforts to the performance of his duties under this Agreement
and shall be subject to, and shall comply with the Company policies, practices and procedures and all codes of ethics or business
conduct applicable to his position, as in effect from time to time. Notwithstanding the foregoing, the Executive shall be entitled
to (i) serve as a member of the board of directors of a reasonable number of other companies, subject to the advance approval of
the Board, which approval shall not be unreasonably withheld, (ii) serve on civic, charitable, educational, religious, public interest
or public service boards, subject to the advance approval of the Board, which approval shall not be unreasonably withheld, and
(iii) manage the Executive’s personal and family investments, in each case, to the extent such activities do not materially
interfere, as determined by the Board in good faith, with the performance of the Executive’s duties and responsibilities
hereunder.

 

2.     
     Term. This Agreement and the Executive’s employment pursuant to this Agreement
shall be for a term of three (3) years commencing as of December 1, 2013 (the “Effective Date”) and ending on the
third anniversary of the Effective Date (the “Expiration Date”), unless terminated earlier by the Company or the
Executive pursuant to Section 4 of this Agreement (the “Term”). In the event either party wishes to renew or
extend this Agreement upon the Expiration Date, such party shall notify the other in writing at least 60 days prior to the
Expiration Date.

 

    	 

    	 

    

 

3.      
    Compensation and Related Matters.

 

(a)          Base
Salary. During the Term, the Executive’s annual base salary shall be $650,000 (the “Base Salary”). The Base
Salary shall be payable in accordance with the Company’s normal payroll procedures in effect from time to time and may be
increased, but not decreased, at the discretion of the Board or the Compensation Committee of the Board.

 

(b)          Annual
Bonus. During the Term, the Executive shall be entitled to receive a bonus (the “Annual Bonus”) for each calendar
year, payable in cash in accordance with, and subject to the terms and conditions of, the Company’s then applicable short-term
bonus or other cash incentive program (each, a “Bonus Program”). The Executive’s aggregate target bonus award
for each calendar year will be 100% of his then Base Salary (the “Target Annual Bonus”). The Executive’s actual
Annual Bonus may range from a minimum amount of 0% to a maximum of 100% of his Target Annual Bonus, which will be determined by
the Compensation Committee of the Board and will be contingent upon the attainment of performance goals reasonably established
in good faith by the Committee based upon the recommendations of the Executive no later than 90 days after the commencement of
each calendar year. Any Annual Bonus compensation payable to the Executive shall be payable by March 15 of the calendar year following
the calendar year to which such Annual Bonus relates, subject to the condition that the Executive remain employed by the Company
through the date the Annual Bonus is paid, except as set forth in Section 6 herein.

 

(c)          Business
Expenses. During the Term, the Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses
incurred by him in performing services hereunder, in accordance with the policies and procedures then in effect and established
by the Company for its senior executive officers.

 

(d)          Other
Benefits. During the Term and subject to any contribution therefor required of employees of the Company, the Executive shall
be entitled to participate in all equity, pension, savings and retirement plans, welfare and insurance plans, practices, policies,
programs and perquisites of employment applicable generally to other senior executives of the Company, except to the extent any
employee benefit plan provides for benefits otherwise provided to the Executive hereunder (e.g., annual bonuses and severance).
Such participation shall be subject to (i) requirements of applicable law, (ii) the terms of the applicable plan documents, (iii)
generally applicable Company policies, and (iv) the discretion of the Board or any administrative or other committee provided for
under or contemplated by such plan. The Executive shall have no recourse against the Company under this Agreement in the event
that the Company should alter, modify, add to or eliminate any or all of its employee benefit plans.

 

(e)          Vacation;
Holidays. During the Term, the Executive shall be entitled to take up to 25 days of paid time off per calendar year, to be
taken in accordance with the policies applicable to senior executives of the Company generally. The Executive shall also be entitled
to paid holidays in accordance with the policies applicable to senior executives of the Company generally.

 

(f)          Attorneys’
Fees. The Company shall reimburse Executive up to $20,000 for the attorneys’ fees and costs incurred by him in connection
with the drafting, review and negotiation of this Agreement within fifteen (15) days following Executive’s submission to
the Company of invoices evidencing such fees and costs.

 

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4.      
    Termination. The Executive’s employment may be terminated prior to the expiration of the
Term hereof and this Agreement may be terminated under the following circumstances:

 

(a)          Death.
The Executive’s employment shall terminate upon his death.

 

(b)          Disability.
The Company may terminate the Executive’s employment if the Executive becomes subject to a Disability. For purposes of this
Agreement, “Disability” means the Executive is unable to perform the essential functions of his position as President
and Chief Executive Officer, with or without a reasonable accommodation, for a period of 90 consecutive calendar days or 180 non-consecutive
calendar days within any rolling 12 month period.

 

(c)          Termination
by Company for Cause. The Company may terminate the Executive’s employment for Cause. For purposes of this Agreement,
“Cause” means (i) the Executive’s conviction of a felony or a crime of moral turpitude; (ii) the Executive’s
commission of unauthorized acts intended to result in the Executive’s personal enrichment at the material expense of the
Company; or (iii) the Executive’s material violation of the Executive’s duties or responsibilities to the Company which
constitute willful misconduct or dereliction of duty, provided as to any termination pursuant to subsection (iii), a majority of
the members of the Board shall first approve such “Cause” termination before the Company effectuates such termination
of employment.

 

(d)          Termination
by the Company without Cause. The Company may terminate the Executive’s employment at any time without Cause upon 30
days prior written notice.

 

(e)          Termination
by the Executive. The Executive may terminate his employment at any time for any reason other than a Good Reason, upon 30 days
prior written notice.

 

(f)          Termination
by the Executive for Good Reason. The Executive may terminate his employment for Good Reason. For purposes of this Agreement,
“Good Reason” means the existence of any one or more of the following conditions without the Executive’s consent,
provided Executive submit written notice to the Compensation Committee of the Board within 45 days such condition(s) first arose
specifying the condition(s): (i) a material change in or reduction of the Executive’s authority, duties and responsibilities,
or the assignment to the Executive of duties materially inconsistent with the Executive’s position with the Company; (ii)
the requirement that the Executive report to any person, executive or board of directors other than the Board; or (iii) a material
reduction in the Executive’s then current Base Salary or Target Bonus Award opportunity. The Executive’s continued
employment subsequent to an event that may constitute Good Reason shall not be deemed to be a waiver of his rights under this provision.
Upon receipt of written notice from the Executive regarding a condition constituting Good Reason, the Company shall then have 30
days to correct the condition (the “Cure Period”). If such condition is not corrected by the last day of the Cure Period,
the Executive’s resignation for Good Reason shall become effective on the 31st day following the written notice.

 

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(g)          Expiration.
Executive’s employment shall terminate on the Expiration Date unless renewed or extended pursuant to Section 2.

 

(h)          Termination
Date. The “Termination Date” means: (i) if the Executive’s employment is terminated by his death under Section
4(a), the date of his death; (ii) if the Executive’s employment is terminated on account of his Disability under Section
4(b), the date on which the Company provides the Executive a written termination notice; (iii) if the Company terminates the Executive’s
employment for Cause under Section 4(c), the date on which the Company provides the Executive a written termination notice; (iv)
if the Company terminates the Executive’s employment without Cause under Section 4(d), 30 days after the date on which the
Company provides the Executive a written termination notice; (v) if the Executive resigns his employment without Good Reason under
Section 4(e), 30 days after the date on which the Executive provides the Company a written termination notice, (vii) if the Executive
resigns his employment with Good Reason under Section 4(f), the 31st day following the day the Executive provides the Company with
written notice of the conditions constituting same, if the Company has not cured such conditions by the 30th day; and (viii) the
Expiration Date if the Executive’s employment terminates under Section 4(g).

 

5.     
     Compensation upon Termination.

 

(a)          Termination
by the Company for Cause or by the Executive without Good Reason. If the Executive’s employment with the Company is terminated
pursuant to Sections 4(c) or (e), the Company shall pay or provide to the Executive the following amounts through the Termination
Date: any earned but unpaid Base Salary, unpaid expense reimbursements, and any vested benefits the Executive may have under any
employee benefit plan of the Company (the “Accrued Obligations”) on or before the time required by law but in no event
more than 30 days after the Executive’s Termination Date.

 

(b)          Death.
If, prior to the expiration of the Term, the Executive’s employment terminates because of his death as provided in Section
4(a), then the Executive’s authorized representative or estate shall be entitled to the following subject to Section 6:

 

(i)          Accrued
Obligations. The Company shall pay the Accrued Obligations earned through the Termination Date (payable at the time provided
for in Section 5(a)).

 

(ii)         Unpaid
Annual Bonus. The Company shall pay the Annual Bonus awarded for the calendar year preceding the Termination Date that remains
unpaid as of the Termination Date (payable at the time provided for in Section 3(b)).

 

(iii)        Pro-Rata
Bonus. The Company shall pay a pro-rata portion of the Executive’s Annual Bonus for the calendar year in which the Executive’s
termination occurs based on the actual achievement of performance criteria for that year (determined by multiplying the amount
of the Annual Bonus which would be due for the full calendar year by a fraction, the numerator of which is the number of days during
the calendar year of termination that the Executive is employed by the Company and the denominator of which is 365) (the “Pro-Rata
Bonus”) payable in accordance with Section 6.

 

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(iv)        Vesting
Acceleration. The Company shall vest in full the Executive on the Termination Date for any and all outstanding equity-incentive
awards issued to the Executive and any options and stock appreciation rights (“SARs”) may be exercised by his authorized
representative or estate for a period equal to the earlier of one year from and after the Termination Date and the original expiration
date of each option and SAR as set forth in their respective grant agreements unless a longer period of time is set forth in the
grant agreement evidencing the options or SARs.

 

(v)         Continuation
of Benefits. Subject to the Executive’s eligible dependents’ timely election of continuation coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall continue to
contribute to the premium cost of the Executive’s participation and that of his eligible dependents’ in the Company’s
group health plan (to the extent permitted under applicable law and the terms of such plan) which covers the Executive (and the
Executive’s eligible dependents) for a period of eighteen (18) months, provided the Executive pay the remainder of
the premium cost of such participation by payroll deduction (if any) and, provided further that the Executive is eligible and remains
eligible for COBRA coverage. If the reimbursement of any COBRA premiums would violate the nondiscrimination rules or cause the
reimbursement of claims to be taxable under the Patient Protection and Affordable Care Act of 2010, together with the Health Care
and Education Reconciliation Act of 2010 (collectively, the “Act”) or Section 105(h) of the Code, the Company
paid premiums shall be treated as taxable payments and be subject to imputed income tax treatment to the extent, necessary to eliminate
any discriminatory treatment or taxation under the Act or Section 105(h) of the Code. If the Executive’s participation or
that of his eligible dependents’ participation would give rise to penalties or taxes against the Company under the Act, as
determined by the Company in its sole discretion, the Company shall instead make cash payments to the Executive over the same period
in monthly installments in an amount equal to the Company’s portion of the monthly cost of providing such benefits under
its group health plan for such period.

 

(c)          Termination
by the Company for Disability, or without Cause, or by the Executive with Good Reason or for Non-Renewal by the Company. If,
prior to the expiration of the Term, the Executive’s employment is terminated as a result of Disability pursuant to Section
4(b), by the Company without Cause pursuant to Section 4(d), the Executive terminates his employment for Good Reason pursuant to
Section 4(f), or the expiration of the Term pursuant to Section 4(g) because the Company fails to renew the Agreement pursuant
to Section 2, then the Executive shall be entitled to the following subject to Section 6:

 

(i)          The
Company shall pay and provide the Executive with the benefits set forth in 5(b) (i) (Accrued Obligations), 5(b)(ii) (Unpaid Bonus),
5(b)(iii) (Pro-Rata Bonus), 5(b)(iv) (Vesting Acceleration), and the continuation of benefits for 18 months as set forth in Section
5(b)(v) (Continuation of Benefits) provided that if Executive obtains other employment that offers group health benefits, such
continued coverage by the Company under subsection (b)(v) (Continuation of Benefits) shall cease as of such coverage date; and

 

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(ii)         The
Company shall pay the Executive severance in an amount equal to two times the Base Salary at the rate in effect on the Termination
Date (but without giving effect to any reduction if one or all of the bases for the Executive’s resignation for Good Reason
is a reduction in Base Salary) less, in the case of termination by the Company for Disability, the gross proceeds paid to the Executive
on account of Social Security or other similar benefits and Company-provided short-term and long-term disability plans, if any,
which shall be payable in twenty-four (24) equal monthly installments commencing as set forth in Section 6.

 

6.   
       Mutual Release; Payment. The payments and benefits provided for in Section 5
shall be conditioned on (a) the Executive’s continued compliance with the obligations of the Executive under Sections 9
and 10 and (b) the Executive or, in the event of his death, his estate, executing and delivering to the Company a full mutual
release of all claims that the Executive, his heirs and assigns may have against the Company, its affiliates and subsidiaries
and each of their respective directors, officers, employees and agents, and of all claims that the Company shall have against
the Executive, his heirs and assigns, in a form reasonably acceptable to the Company and the Executive (the
“Release”). The Release must become enforceable and irrevocable on or before the sixtieth (60th) day
following the Termination Date. If the Executive (or his estate) fails to execute without revocation the Release, he shall be
entitled to the Accrued Obligations only and no other benefits. The installments of severance provided under Section 5(c)(ii)
shall commence in the calendar month following the month in which the Release becomes enforceable and irrevocable. If,
however, the sixty (60) day period in which the Release must become enforceable and irrevocable begins in one year and
ends in the following year, the Company shall commence payment of the severance installments in the second year in the later
of January and the first calendar month following the month in which the Release becomes effective and irrevocable. The first
installment shall include, however, all amounts that would otherwise have been paid to the Executive between the Termination
Date and the Executive’s receipt of the first installment, assuming the first installment would otherwise have been
paid in the month following the month in which the Termination Date occurs. The Pro-Rata Bonus payable in Section 5 shall be
paid when annual bonuses are paid to other senior executives of the Company generally, but in no event later than March 15 of
the year following the year in which the Termination Date occurs.

 

7.     
     Section 409A Compliance.

 

(a)          All
in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred
by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively
practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year
in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year
shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year. Such
right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

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(b)          To
the extent that any of the payments or benefits provided for in Section 5 are deemed to constitute non-qualified deferred compensation
benefits subject to Section 409A of the United States Internal Revenue Code (the “Code”), the following interpretations
apply to Section 5:

 

(i)          Any
termination of the Executive’s employment triggering payment of benefits under Section 5 must constitute a “separation
from service” under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. § 1.409A-l(h) before distribution of such benefits
can commence. To the extent that the termination of the Executive’s employment does not constitute a separation of service
under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A- 1(h) (as the result of further services that are reasonably
anticipated to be provided by the Executive to the Company or any of its parents, subsidiaries or affiliates at the time the Executive’s
employment terminates), any benefits payable under Section 5(b) or (c) that constitute deferred compensation under Section 409A
of the Code shall be delayed until after the date of a subsequent event constituting a separation of service under Section 409A(a)(2)(A)(i)
of the Code and Treas. Reg. §1.409A-1(h). For purposes of clarification, this Section 7(b)(i) shall not cause any forfeiture
of benefits on the Executive’s part, but shall only act as a delay until such time as a “separation from service”
occurs.

 

(ii)         Because
the Executive is a “specified employee” (as that term is used in Section 409A of the Code and regulations and other
guidance issued thereunder) on the date his separation from service becomes effective, any benefits payable under Section 5(b)
or (c) that constitute non-qualified deferred compensation under Section 409A of the Code shall be delayed until the earlier of
(A) the business day following the six-month anniversary of the date his separation from service becomes effective, and (B) the
date of the Executive’s death, but only to the extent necessary to avoid such penalties under Section 409A of the Code. On
the earlier of (A) the business day following the six-month anniversary of the date his separation from service becomes effective,
and (B) the Executive’s death, the Company shall pay the Executive in a lump sum the aggregate value of the non-qualified
deferred compensation that the Company otherwise would have paid the Executive prior to that date under Section 5 of this Agreement.

 

(iii)        It
is intended that each installment of the payments and benefits provided under Section 5 of this Agreement shall be treated as a
separate “payment” for purposes of Section 409A of the Code. In particular, the installment severance payments set
forth in Section 6(b)(ii) of this Agreement shall be divided into two portions. That number of installments commencing on the first
payment date set forth in Section 6 of this Agreement that are in the aggregate less than two times the applicable compensation
limit under Section 401(a)(17) of the Code for the year in which the Termination Date occurs (provided the termination of the Executive’s
employment is also a separation from service) shall be payable in accordance with Treas. Reg. § 1.409A-l(b)(9)(iii) as an
involuntary separation plan. The remainder of the installments shall be paid in accordance with Sections 7(b)(i) and (ii) above.

 

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8.    
      Certain Reductions in Payments.

 

(a)          Anything
in this Agreement to the contrary notwithstanding, in the event that the Accounting Firm (as defined below) determines that receipt
of all Payments (as defined below) would subject the Executive to the tax under Section 4999 of the Code, the Accounting Firm shall
determine whether to reduce any of the Agreement Payments (as defined below) to the Executive so that the Parachute Value (as defined
below) of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount (as defined below). Agreement
Payments shall be so reduced (the “Reduced Payments”) only if the Accounting Firm determines that the Executive would
have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced. If the
Accounting Firm determines that the Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement
Payments were so reduced, the Executive shall receive all Agreement Payments to which the Executive is entitled hereunder.

 

(b)          If
the Accounting Firm determines that the aggregate Agreement Payments to the Executive should be reduced so that the Parachute Value
of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount, the Company shall promptly give the
Executive notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm
under this Section 8 shall be binding upon the Company and the Executive and shall be made as soon as reasonably practicable and
in no event later than 15 days following the date that there has been an Agreement Payment that would subject the Executive to
the tax under Section 4999 of the Code (the “Excise Tax”).

 

(c)          For
purposes of reducing the Agreement Payments to the Executive so that the Parachute Value of all Payments to the Executive, in the
aggregate, equals the applicable Safe Harbor Amount, only Agreement Payments (and no other Payments) shall be reduced. The reduction
contemplated by this Section 8, if applicable, shall be made by reducing payments and benefits (to the extent such amounts are
considered Payments) under the following sections in the following order: (i) any Payments under Section 5(b)(v) (Continuation
of Benefits), (ii) any Payments under Section 5(b)(iii) (Pro-Rata Bonus), (iii) any Payments under Section 5(b)(ii) (Unpaid Bonus),
(iv) any Payments under Section 5(b)(iv) (Acceleration of Vesting), and (iv) any other cash Agreement Payments that would be made
upon a termination of the Executive’s employment, beginning with payments that would be made last in time.

 

(d)          As
a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that, under circumstances where the initial determination resulted in Reduced Payments, the Internal
Revenue Service may later determine such reduction was not large enough to avoid the Excise Tax on the Payments (making the Net
After-Tax Receipt of aggregate Payments less than if no reduction had occurred). Under such circumstances, in the event that the
Internal Revenue Service or a court, as applicable, finally and in a decision that has become unappealable or a decision which
is nonfinal but which the Company elects not to appeal, determines that the Payments are subject to the Excise Tax, the amount
of the Reduced Payments shall be paid or distributed by the Company to or for the benefit of the Executive within 30 days of such
final determination; provided that (i) the Executive shall not initiate any proceeding or other contests regarding these matters,
other than at the direction of the Company, and shall provide notice to the Company of any proceeding or other contest regarding
these matters initiated by the Internal Revenue Service and (ii) the Company shall be entitled to direct and control all such proceedings
and other contests, if it commits to do so, it shall pay all fees (including without limitation legal and other professional fees)
associated therewith.

 

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(e)          In
connection with making determinations under this Section 8, the Accounting Firm shall take into account the value of any reasonable
compensation for services to be rendered by the Executive before or after the change in control, including the non-competition
provisions applicable to the Executive under Section 9(d) and any other non-competition provisions that may apply to the Executive,
and the Company shall cooperate in the valuation of any such services, including any non-competition provisions.

 

(f)          All
fees and expenses of the Accounting Firm in implementing the provisions of this Section 8 shall be borne by the Company.

 

(g)          In
the event of any controversy with the Internal Revenue Service (or other taxing authority) with regard to the Agreement Payments,
the Executive shall permit the Company to control issues related to the Agreement Payments or any excise tax thereon, provided
that such issues do not potentially materially adversely affect the Executive. If the Company commits to control such issues, it
shall pay all fees (including without limitation legal and other professional fees) associated therewith. In the event of any conference
with any taxing authority as to the Agreement Payments, any excise tax thereon, or associated income taxes, the Executive shall
permit the representative of the Company to accompany the Executive, and the Executive and any representative of the Executive
shall cooperate with the Company and its representative.

 

(h)          Definitions.
The following terms shall have the following meanings for purposes of this Section 8.

 

(i)          “Accounting
Firm” shall mean a nationally recognized certified public accounting firm or other professional organization that is a certified
public accounting firm recognized as an expert in determinations and calculations for purposes of Section 280G of the Code that
is selected by the Executive and reasonably acceptable to the Company for purposes of making the applicable determinations hereunder.

 

(ii)         “Agreement
Payment” shall mean a Payment paid or payable pursuant to this Agreement including, for the avoidance of doubt, any acceleration
of vesting of equity awards.

 

(iii)        “Net
After-Tax Receipt” shall mean the Present Value of a Payment net of all taxes imposed on the Executive with respect thereto
under Code Sections 1 and 4999 and under applicable state, local, and foreign laws, determined by applying the applicable highest
marginal rate .

 

(iv)        “Parachute
Value” of a Payment shall mean the present value as of the date of the change in control for purposes of Code Section 280G
of the portion of such Payment that constitutes a “parachute payment” under Code Section 280G(b)(2), as determined
by the Accounting Firm for purposes of determining whether and to what extent the excise tax under Code Section 4999 will apply
to such Payment.

 

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(v)         A
“Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Code Section
280G(b)(2)) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise.

 

(vi)        “Present
Value” of a Payment shall mean the economic present value of a Payment as of the date of the change in control for purposes
of Code Section 280G, as determined by the Accounting Firm using the discount rate required by Code Section 280G(d)(4).

 

(vii)       “Safe
Harbor Amount” means (x) 3.0 times the Executive’s “base amount,” within the meaning of Code Section 280G(b)(3),
minus (y) $1.00.

 

9.   
       Confidentiality and Restrictive Covenants.

 

(a)          The
Executive acknowledges that:

 

(i)          the
Company (which, for purposes of this Section 9 shall include the Company and each of its subsidiaries and affiliates) is engaged
in the business that is defined in the Company’s Annual Reports on Form 10-K for the year ended December 31, 2012 and as
subsequently filed with the U.S. Securities and Exchange Commission each year thereafter (such business, as described in the 10-K
and as modified each year in its subsequently filed 10-K and any and all other businesses that after the date hereof, and from
time to time during the Term, become material with respect to the Company’s then-overall business, the “Business”);

 

(ii)         the
Company is dependent on the efforts of a certain limited number of persons who have developed, or will be responsible for developing
the Company’s Business;

 

(iii)        the
Company’s Business is national in scope;

 

(iv)        the
Business in which the Company is engaged is intensely competitive and that Executive’s employment by the Company will require
that he have access to and knowledge of nonpublic confidential information of the Company and the Company’s Business, including,
but not limited to, certain/all of the Company’s products, plans for creation, acquisition or disposition of products or
publications, strategic and expansion plans, marketing plans, financial status and plans, budgets, forecasts, profit or loss figures,
distributors and distribution strategies, pricing strategies, improvements, designs or styles, source code, software architecture,
hardware and software configurations, method of distribution, sales figures, contracts, agreements, then existing or then prospective
suppliers and sources of supply and customer lists, undertakings with or with respect to the Company’s customers or prospective
customers, any customer information including without limitation with respect to payors, referral sources, and patient information,
product development plans, rules and regulations, personnel information and trade secrets of the Company, all of which are of vital
importance to the success of the Company’s business (collectively, “Confidential Information”);

 

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(v)         the
direct or indirect disclosure of any Confidential Information would place the Company at a serious competitive disadvantage and
would do serious damage, financial and otherwise, to the Company’s business;

 

(vi)        by
his training, experience and expertise, the Executive’s services to the Company will be special and unique;

 

(vii)       the
covenants and agreements of the Executive contained in this Section 9 are essential to the business and goodwill of the Company;
and

 

(viii)      if
the Executive leaves the Company’s employ to work for a competitive business, in any capacity, it would cause the Company
irreparable harm.

 

(b)          Covenant
Against Disclosure. All Confidential Information relating to the Business is, shall be and shall remain the sole property and
confidential business information of the Company, free of any rights of the Executive. The Executive shall not make any use of
the Confidential Information except in the performance of his duties hereunder and shall not disclose any Confidential Information
to third parties, without the prior written consent of the Company.

 

(c)          Return
of Company Documents. On the Termination Date or on any prior date upon the Company’s written demand, the Executive will
return all memoranda, notes, lists, records, property and other tangible product and documents concerning the Business, including
all Confidential Information, in his possession, directly or indirectly, that is in written or other tangible form (together with
all duplicates thereof) and that he will not retain or furnish any such Confidential Information to any third party, either by
sample, facsimile, film, audio or video cassette, electronic data, verbal communication or any other means of communication.

 

(d)          No
Competition. During the Term and through the second anniversary of the Termination Date for any reason, the Executive shall
not, directly or indirectly, own, manage, operate, control or participate in the ownership, management or control of, or be connected
as an officer, employee, partner, director, consultant or otherwise with, or have any financial interest in, or aid or assist anyone
else in the conduct of, any entity or business which competes with the Business or any material component of the Business, in either
case, within the United States. Notwithstanding the foregoing, the Executive’s ownership of (i) securities of a public company
engaged in competition with the Company’s Business not in excess of two percent (2%) of any class of such securities.

 

(e)          Further
Covenant. During the Term and through the second anniversary of the Termination Date, the Executive shall not, directly or
indirectly, take any of the following actions, and, to the extent the Executive owns, manages, operates, controls, is employed
by or participates in the ownership, management, operation or control of, or is connected in any manner with, any business, the
Executive will use his best efforts to ensure that such business does not take any of the following actions:

 

    	-11-

    	 

    

 

(i)          persuade
or attempt to persuade any customer of the Company to cease doing business with the Company, or to reduce the amount of business
any customer does with the Company;

 

(ii)         in
a manner that competes with the Company’s business, solicit for himself or any entity the business of a customer of the Company
or the business of a former customer of the Company within twelve (12) months prior to the termination of the Executive’s
employment; or

 

(iii)        persuade
or attempt to persuade any employee or independent contractor of the Company to leave the service of the Company, or hire or engage,
directly or indirectly, any individual who was an employee or independent contractor of the Company within one (1) year prior to
the Executive’s Termination Date.

 

(f)          Enforcement.
The Executive acknowledges and agrees that any breach by him of any of the provisions of this Section 9 (the “Restrictive
Covenants”) would result in irreparable injury and damage for which money damages would not provide an adequate remedy.
Therefore, if the Executive breaches or threatens to commit a breach of any of the provisions of Section 9, the Company shall have
the ability to seek the following rights and remedies, each of which rights and remedies shall be independent of the other and
severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies
available to the Company under law or in equity (including, without limitation, the recovery of damages): (i) the right and
remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages) by
any court having equity jurisdiction, including, without limitation, the right to an entry against the Executive of restraining
orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether
or not then continuing, of such covenants; and (ii) the right and remedy to require the Executive to account for and pay over
to the Company all compensation, profits, monies, accruals, increments or other benefits (collectively, “Benefits”)
derived or received by him as the result of any transactions constituting a breach of the Restrictive Covenants, and the Executive
shall account for and pay over such Benefits to the Company and, if applicable, its affected subsidiaries and/or affiliates. The
Executive agrees that in any action seeking specific performance or other equitable relief, he will not assert or contend that
any of the provisions of this Section 9 are unreasonable or otherwise unenforceable. Other than a material breach of this Agreement,
the existence of any claim or cause of action by the Executive, whether predicated on this Agreement or otherwise, shall not constitute
a defense to the enforcement of the Restrictive Covenants.

 

10.    
    Intellectual Property.

 

(a)          Works
for Hire. All creations, inventions, ideas, designs, software, copyrightable materials, trademarks, and other technology and
rights (and any related improvements or modifications), whether or not subject to patent or copyright protection (collectively,
“Creations”), relating to any activities of the Company which were, are, or will be conceived by the Executive
or developed by the Executive in the course of his employment or other services with the Company, whether conceived alone or with
others and whether or not conceived or developed during regular business hours, and if based on Confidential Information, after
the termination of the Executive’s employment, shall be the sole property of the Company and, to the maximum extent permitted
by applicable law, shall be deemed “works made for hire” as that term is used in the United States Copyright Act. The
Executive agrees to assign and hereby does assign to the Company all Creations conceived or developed from the start of this employment
with the Company through to the Termination Date, and after the Termination Date if the Creation incorporates or is based on any
Confidential Information.

 

    	-12-

    	 

    

 

(b)          Assignment.
To the extent, if any, that the Executive retains any right, title or interest with respect to any Creations delivered to the Company
or related to his employment with the Company, the Executive hereby grants to the Company an irrevocable, paid-up, transferable,
sub-licensable, worldwide right and license: (i) to modify all or any portion of such Creations, including, without limitation,
the making of additions to or deletions from such Creations, regardless of the medium (now or hereafter known) into which such
Creations may be modified and regardless of the effect of such modifications on the integrity of such Creations; and (ii) to identify
the Executive, or not to identify his, as one or more authors of or contributors to such Creations or any portion thereof, whether
or not such Creations or any portion thereof have been modified. The Executive further waives any “moral” rights, or
other rights with respect to attribution of authorship or integrity of such Creations that he may have under any applicable law,
whether under copyright, trademark, unfair competition, defamation, right of privacy, contract, tort or other legal theory.

 

(c)          Disclosure.
The Executive will promptly inform the Company of any Creations he conceives or develops during the Term. The Executive shall (whether
during his employment or after the termination of his employment) execute such written instruments and do other such acts as may
be necessary in the opinion of the Company or its counsel to secure the Company’s rights in the Creations, including obtaining
a patent, registering a copyright, or otherwise (and the Executive hereby irrevocably appoints the Company and any of its officers
as his attorney in fact to undertake such acts in his name). The Executive’s obligation to execute written instruments and
otherwise assist the Company in securing its rights in the Creations will continue after the termination of his employment for
any reason, the Company shall reimburse the Executive for any out-of-pocket expenses (but not attorneys’ fees) he incurs
in connection with his compliance with this Section 10(c).

 

11.         Indemnification.
During the Term and thereafter, the Company shall indemnify the Executive to the extent provided in the Indemnification Agreement
between the Company and the Executive dated March 8, 2013 (the “Indemnification Agreement”).

 

12.         Integration.
This Agreement, together with the Indemnification Agreement, constitutes the entire agreement between the parties with respect
to the subject matter hereof and supersedes all prior agreements between the parties concerning such subject matter, including,
without limitation, the Prior Employment Agreement.

 

13.         Successors.
This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators,
heirs, distributees, devisees and legatees. In the event of the Executive’s death after his termination of employment but
prior to the completion by the Company of all payments due him under this Agreement, the Company shall continue such payments to
the Executive’s beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails
to make such designation). The Company shall require any successor to the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had
taken place.

 

    	-13-

    	 

    

 

14.         Enforceability.
If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement)
shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement,
or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable,
shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.

 

15.         Survival.
The provisions of this Agreement shall survive the termination of this Agreement and/or the termination of the Executive’s
employment to the extent necessary to effectuate the terms contained herein.

 

16.         Waiver.
No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any
party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this
Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

17.         Notices.
Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return
receipt requested, to the Executive at the last address the Executive has filed in writing with the Company or, in the case of
the Company, at its main offices, attention of the Board.

 

18.         Amendment.
This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative
of the Company.

 

19.         Governing
Law. This is a New York contract and shall be construed under and be governed in all respects by the laws of New York for contracts
to be performed in that State and without giving effect to the conflict of laws principles of New York or any other State. In the
event of any alleged breach or threatened breach of this Agreement, the Executive hereby consents and submits to the jurisdiction
of the federal and state courts in and of the State of New York.

 

20.         Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be
an original; but such counterparts shall together constitute one and the same document.

 

    	-14-

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement effective on the date and year first above written.

 

	 	BioScrip, Inc.
	 	 
	 	By:	 /s/ Kimberlee C. Seah
	 	Name: Kimberlee C. Seah
	 	Title: Senior Vice President, Secretary and General
    Counsel
	 	 	 
	 	/s/ Richard M. Smith
	 	Richard M. Smith

 

 

    	-15-EXHIBIT 10.2

 

		

 

 

November 27, 2013

 

 

 

Ms. Kimberlee C. Seah 

Senior Vice President and General Counsel | BioScrip,
Inc.

100 Clearbrook Road

Elmsford, New York 10523

 

 

Dear Kimberlee:

 

This letter confirms and sets forth the
terms and conditions of the engagement between Alvarez & Marsal Private Equity Performance Improvement Group, LLC (“A&M”)
and BioScrip, Inc., and its assigns and successors (“Company”), including the scope of the services to be performed
and the basis of compensation for those services. Upon execution of this letter by each of the parties below, this letter will
constitute an agreement between Company and A&M (this “Agreement”).

 

		1.	Description of Services.

 

		(a)	Chief Operating Officer. In connection with this engagement, A&M shall make Richard
Jenkins available to Company to serve as Interim Corporate Chief Operating Officer (“COO”) and provide the associated
operational restructuring services described herein.

 

		(b)	Duties.

 

		(i)	The COO shall perform those duties of a chief operating officer including, but not limited to,
providing leadership to all operations as necessary to ensure proper support of the operations and execution of the Company strategy.
This interim assignment is made for the purpose of assessing restructuring alternatives and to improve goal achievement and to
reduce costs of operations.

 

		(ii)	In addition to, and without limiting the generality of the foregoing, the COO will be expected
to perform the following additional duties:

 

		(1)	At the request and direction of Company’s Chief Executive Officer (“CEO”),
oversee efforts to integrate Company’s operations and service lines relating to Company’s recent infusion acquisitions
and, in connection therewith, develop operational initiatives which seek to maximize the financial performance of Company while
continuing to adhere to the Company’s mission of delivering high quality clinical care and operations for the benefit of
the Company’s patients, referral sources, payors and other constituents; and

 

    	 

    	 

    

 

BioScrip, Inc.

November 27, 2013

Page 2

 

		(2)	Working together with the Company’s CEO and Chief Financial Officer (“CFO”)
in furtherance of the goals set forth in subsection (1) above, assist in the performance, review and restructuring of Company’s
field operations;

 

		(3)	Assist with identification of, and oversee implementation of, opportunities to improve margins,
reduce costs and improve operational performance within the Company;

 

		(4)	Provide regular updates to and consult with the CEO and such other officers as directed by the
CEO;

 

		(5)	Provide written reports, presentations (including to the Board) and other deliverables consistent
with the role of the COO as reasonably requested by the CEO;

 

		(6)	Attend and participate in weekly meetings with the CEO and senior management to review staffing
and status of work, or such other meetings as requested by CEO; and

 

		(7)	Perform such other services as requested or directed by the CEO, or other Company personnel as
authorized by CEO, and agreed to by A&M that are not duplicative of work others are performing for the Company.

 

		(8)	Provide a written status report of the operations review to the CEO approximately four (4) weeks,
including identification of areas targeted as priorities for further review and/or restructuring and the staffing and estimated
work to accomplish the identified review and/or restructuring.

 

		(iii)	All services provided by COO shall be performed in a professional manner consistent with industry standards.

 

		(c)	COO will continue to (i) be employed by A&M while rendering services to Company, and (ii) may
work with other personnel at A&M in connection with unrelated matters that will not interfere with the services rendered by
COO pursuant to this Agreement. With respect to Company, COO shall operate under the direction of CEO and A&M shall have no
liability to Company for any acts or omissions of COO related to the performance or non-performance of services at the direction
of CEO and consistent with the requirements of this Agreement.

 

		2.	Information Provided by Company and Forward Looking Statements.

 

    	2

    	 

    

 

BioScrip, Inc.

November 27, 2013

Page 3

 

		(a)	Company shall use all reasonable efforts to (i) provide COO with access to management and other
representatives of Company; and (ii) furnish all data, material and other information concerning the business, assets, liabilities,
operations, cash flows, properties, financial condition and prospects of Company that COO reasonably requests in connection with
the services to be provided to Company. COO shall rely, without further independent verification, on the accuracy and completeness
of all publicly available information and information that is furnished by or on behalf of Company and otherwise reviewed by COO
in connection with the services performed for Company. Company acknowledges and agrees that COO is not responsible for the accuracy
or completeness of such information and shall not be responsible for any inaccuracies or omissions therein.

 

		(b)	Company understands that the services to be rendered by COO may include the preparation of projections
and other forward-looking statements, and numerous factors can affect the actual results of Company’s operations, which may
materially and adversely differ from those projections. In addition, COO will be relying on information provided by Company in
the preparation of those projections and other forward-looking statements.

 

		3.	Limitation of Duties. Neither A&M, nor COO make any representations or guarantees that,
inter alia, any particular operations restructuring proposal, or strategic alternative can be formulated for Company,
will be more successful than all other possible alternatives, is the best course of action for Company, or will be accepted by
any of Company’s creditors, shareholders and other constituents. Further, neither A&M, nor COO, assume any responsibility
for Company’s decision to pursue, or not pursue any business strategy, or to effect, or not to effect any operational changes
or any transaction. COO shall be responsible for implementation only of such strategies or changes approved by CEO and, where appropriate,
the Board.

 

		4.	Compensation.

 

		(a)	A&M will receive the compensation set forth on Schedule 4(a) for the services of COO,
which shall be capped at 220 hours per month.

 

		(b)	Upon execution of this Agreement, the Company will provide A&M with a retainer in the amount
of $140,000 (the “Retainer”). To the extent any invoices are unpaid in whole or in part, such amounts will be
deemed to have been paid out of the Retainer. Upon termination of this Agreement, the Retainer, or any remaining portion thereof,
will be credited against final invoice(s) and/or returned to the Company once all obligations have been paid in full.

 

		(c)	COO will be expected to devote the time needed, up to full working time efforts, to fulfill this
engagement.

 

		(d)	A&M will be reimbursed for its reasonable out-of-pocket expenses incurred in connection with
this Agreement, such as travel, lodging, duplicating, messenger and telephone charges. Expenses in excess of $10,000 per month
incurred by COO shall require written approval by Company prior to invoicing. All fees and expenses will be billed and payable
on a monthly basis or, at A&M’s discretion, more frequently. A&M will present invoices (together with substantiating
expense documentation that is requested from time to time (e.g., receipts)) monthly or more frequently as necessary from the project
start date with the amount billed in advance to reflect the estimated fees and expenses for the upcoming period. Invoices shall
include support as mutually agreed to by the parties. Invoices are due within twenty-one (21) days after Company’s receipt
of A&M’s invoice. Differences between estimate and actual amounts will be reconciled and adjusted on the subsequent period’s
bill. Should any invoice remain unpaid for more than sixty (60) days after the date thereof, interest shall be paid at the lesser
of one and one-half percent (1.5%) per month or the maximum amount permissible under law per month.

 

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BioScrip, Inc.

November 27, 2013

Page 4

 

		5.	Term/Termination.

 

		(a)	The term of this Agreement (the “Term”) will apply from the commencement of
the services referred to in Section 1 and may be terminated with immediate effect by either party without cause by written notice
to the other party. The parties anticipate that the Term of this Agreement shall be approximately six (6) months.

 

		(b)	A&M normally does not withdraw from an engagement unless Company misrepresents or fails to
disclose material facts, fails to pay fees or expenses, or makes it unethical or unreasonably difficult for A&M to continue
performance of the engagement, or other just cause exists.

 

		(c)	Upon termination of this Agreement, any fees and expenses due to A&M shall be remitted promptly
(including fees and expenses that accrued prior to but are invoiced subsequent to such termination).

 

		(d)	The provisions of this Agreement that give the parties rights or obligations beyond its termination
shall survive and continue to bind the parties.

 

		6.	No Audit. Company acknowledges and agrees that A&M and COO are not being requested to
perform an audit, review or compilation, or any other type of financial statement reporting engagement that is subject to the rules
of the AICPA, SEC or other state or national professional or regulatory body.

 

		7.	Work Product. A&M hereby agrees that all materials, writings
and other property, whether or not copyrightable, created or adapted by COO, whether alone or in conjunction with any other person,
firm or corporation, specifically created for and/or provided to Company under this Agreement (“Deliverables”),
shall be “work made for hire” for Company within the meaning of the United States Copyright Act of 1976 and for all
other purposes and as such, the sole and exclusive property of Company, except with respect to those Deliverables prepared under
A&M’s name which in their nature are not meant to transfer ownership (i.e., an advisory analysis, assessment or opinion
on A&M letterhead).  Notwithstanding
the foregoing, A&M shall retain all right, title and interest in and to its methodologies, processes, techniques, ideas, concepts,
and know-how embodied in the Deliverables or that A&M or COO may develop or supply in connection with this Agreement (“A&M
Knowledge”). A&M hereby grants to Company a non-revocable (subject to Company’s payment obligations hereunder),
non-exclusive, nontransferable, royalty-free license to use the A&M Knowledge to enjoy the intended benefits of the Deliverables
and services.

 

    	4

    	 

    

 

BioScrip, Inc.

November 27, 2013

Page 5

 

		8.	Independent Contractor. In performing services under this Agreement,
A&M and COO will be acting as independent contractors and not as employees of Company. Neither A&M nor COO will have any
authority or ability to bind, contract on behalf of or otherwise obligate Company in any manner without prior approval from or
delegation by CEO or the Board (including the Company’s/Board’s standard delegations of authority for purchasing and
other matters). Company shall only be responsible for payment of the compensation and expenses set forth in Section 4 above
and shall not be responsible for any payroll or other similar taxes or any withholdings. Company and A&M acknowledge and agree
that Company shall not provide COO with any fringe benefits including, but not limited to, participation in medical or retirement
plans sponsored by Company. A&M shall be solely responsible for all federal, state and local payroll taxes and withholding
payable with respect to compensation provided by Company pursuant to this Agreement.

 

		9.	Use of Advice. Company acknowledges that all advice (written or oral) provided by A&M
and COO to Company in connection with this Agreement is intended solely for the benefit and use of Company in considering matters
related to this engagement. Company agrees that no such advice shall be used for any other purpose or reproduced, disseminated,
quoted or referred to at any time in any manner or for any purpose other than accomplishing the tasks referred to herein without
A&M’s prior approval (which shall not be unreasonably withheld), except as required by law.

 

		10.	Conflicts. A&M is not currently aware of any relationship that would create a conflict
of interest with Company or those parties-in-interest of which Company has made A&M aware. Because A&M and its affiliates
and subsidiaries comprise a consulting firm (the “Firm”) that serves clients on an international basis in numerous
cases, both in and out of court, it is possible that the Firm may have rendered or will render services to, or have business associations
with, other entities or people which had or have or may have relationships with Company, including creditors of Company. Except
as otherwise agreed to by the parties, the Firm will not be prevented or restricted by virtue of providing the services under this
Agreement from providing services to any entity whose interest may be in competition or conflict with the Company’s interest,
provided the Firm makes appropriate arrangements to ensure that the confidentiality of information is maintained.

 

    	5

    	 

    

 

BioScrip, Inc.

November 27, 2013

Page 6

 

		11.	Confidentiality/Non-Solicitation.

 

		(a)	A&M and COO shall not, either during the Term of this Agreement or anytime thereafter, disclose
to any person, firm or entity, any private, confidential or non-public information regarding Company, including trade secrets or
other proprietary information concerning the business or affairs of Company, except (i) as requested by Company or its legal counsel;
or (ii) as required by legal proceedings or (iii) as reasonably required in the performance of the engagement and, in the reasonable
judgment of COO, consistent with the Company’s best interests. All obligations as to non-disclosure shall cease as to any
part of such information to the extent that such information is or becomes public, other than as a result of a breach of this provision.

 

		(b)	A&M and Company acknowledge that this engagement and Agreement may be subject to the Health
Insurance Portability and Accountability Act of 1996 and its implementing regulations, as amended from time to time, including
45 C.F.R. Parts 160, 162 and 164 (“HIPAA”) and the Health Information Technology for Economic and Clinical Health
Act of 2009 and its implementing regulations, as amended from time to time (“HITECH”). In performing their respective
obligations under this Agreement, A&M and Company shall each comply and require that their respective agents, employees and
contractors comply, with applicable law including HIPAA and HITECH. Protected Health Information, as
defined under HIPAA, shall be treated in accordance with the Business Associate Agreement attached to this Agreement at Exhibit
A.

 

		(c)	A&M and COO shall not, without the prior written approval by CEO, issue a press release, public
announcement or publicly disseminate any communication (each a “Public Announcement”) concerning this Agreement
or any of the services and/or work product related thereto. If Company determines to do a Public Announcement, Company will use
reasonable efforts to consult with A&M and discuss the content of any Public Announcement. In no event shall A&M discuss
this Agreement or any of the services and/or work product related thereto with Company’s lenders without the prior written
consent of CEO. Notwithstanding the foregoing, A&M may disclose the Company as a client (and, following any Public Announcement
by the Company, A&M may confirm the information contained therein) in required relationship or conflict disclosures in matters
that A&M or its affiliates are or seek to be retained, without the need to seek the Company’s or CEO’s consent;
provided, however, A&M shall not discuss the nature of this engagement or any information obtained by way of this engagement
during such processes to the extent not publically available.

 

		(d)	The Company, on behalf of itself and their respective subsidiaries and affiliates and any person
which may acquire all or substantially all of its business or assets, agree that, until two (2) years subsequent to the termination
of this Agreement, it will not solicit, recruit, hire or otherwise engage any employee of A&M or any of its affiliates who
worked on this engagement for A&M during the period of this engagement (“Solicited Person”). Should the
Company or any of its subsidiaries or affiliates or any person who acquires all or substantially all of its business or assets
extend an offer of employment to or otherwise engage any Solicited Person and should such offer be accepted, A&M shall be entitled
to a fee from the party extending such offer equal to the Solicited Person’s hourly client billing rate at the time of the
offer multiplied by 4,000 hours for a Managing Director, 3,000 hours for a Senior Director and 2,000 hours for any other A&M
or affiliate employee. The parties acknowledge and agree that this fee fairly represents the loss that A&M will suffer if the
other party breaches this provision. The fee shall be payable at the time of the Solicited Person’s acceptance of employment
or engagement.

 

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BioScrip, Inc.

November 27, 2013

Page 7

 

		12.	Indemnification/Limitations on Liability. Company shall indemnify COO to the same extent
as the most favorable indemnification it extends to its officers or directors, whether under Company’s bylaws, its certificate
of incorporation, by contract or otherwise, and no reduction or termination in any of the benefits provided under any such indemnities
shall affect the benefits provided to COO. COO shall be covered as officers under Company’s existing director and officer
liability insurance policy. As a condition of A&M accepting this engagement, a Certificate of Insurance evidencing such coverage
shall be furnished to A&M prior to the effective date of this Agreement. Company shall give thirty (30) days’ prior written
notice to A&M of cancellation, non-renewal or material change in coverage, scope or amount of such director and officer liability
policy. Company shall also maintain continuing coverage for COO for a period of not less than six (6) years following the date
of the termination of the Indemnified Professionals’ services hereunder. The provisions of this section are in the nature
of contractual obligations and no change in applicable law or Company’s charter, bylaws or other organizational documents
or policies shall affect the Indemnified Professionals’ rights hereunder. The attached indemnity and limitation on liability
provisions are incorporated herein and the termination of this Agreement or the engagement shall not affect those provisions, which
shall remain in full force and effect.

 

		13.	Miscellaneous. This Agreement (together with the attached indemnity provisions) including,
without limitation, the construction and interpretation of thereof and all claims, controversies and disputes arising under or
relating thereto, shall be governed and construed in accordance with the laws of the State of New York, without regard to principles
of conflict of law that would defer to the laws of another jurisdiction. Company and A&M agree to waive trial by jury in any
action, proceeding or counterclaim brought by or on behalf of the parties hereto with respect to any matter relating to or arising
out of the engagement or the performance or non-performance of A&M hereunder. Company and A&M agree, to the extent permitted
by applicable law, that any Federal Court sitting within the Southern District of New York shall have exclusive jurisdiction over
any litigation arising out of this Agreement; to submit to the personal jurisdiction of the Courts of the United States District
Court for the Southern District of New York; and to waive any and all personal rights under the law of any jurisdiction to object
on any basis (including, without limitation, inconvenience of forum) to jurisdiction or venue within the State of New York for
any litigation arising in connection with this Agreement.

 

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BioScrip, Inc.

November 27, 2013

Page 8

 

This Agreement
shall be binding upon A&M and Company, their respective heirs, successors and assignees, and any heir, successor or assignee
of a substantial portion of A&M’s or Company’s respective businesses and/or assets. This Agreement incorporates
the entire understanding of the parties with respect to the subject matter hereof and may not be amended or modified except in
writing executed by Company and A&M. Notwithstanding anything herein to the contrary, A&M may reference or list Company’s
name and/or logo and/or a general description of the services in A&M’s marketing materials including, without limitation,
on A&M’s website.

 

If the foregoing is acceptable
to you, kindly sign the enclosed copy to acknowledge your agreement with its terms.

 

	 	Very truly yours,	 
	 	 	 
	 	Alvarez & Marsal Private Equity Performance 

Improvement Group, LLC	 
	 	 	 	 
	 	By:	/s/ Richard C. Jenkins	 
	 	 	Richard C. Jenkins	 
	 	 	Managing Director	 

 

	 	Accepted and agreed:	 
	 	 	 
	 	BioScrip, Inc.	 
	 	 	 	 
	 	By:  	/s/ Kimberlee C. Seah	 
	 	 	Kimberlee
C. Seah 

	 
	 	 	Senior
Vice President and General Counsel 

	 

 

 

    	8

    	 

    

 

Schedule 4(a)

 

Compensation

 

A&M will receive $700 per hour for services
rendered by COO.

 

    	 

    	 

    

  

INDEMNIFICATION AND LIMITATION ON
LIABILITY AGREEMENT

 

This indemnification and limitation on
liability agreement is made part of an agreement, dated November 26, 2013 (which together with any renewals, modifications or extensions
thereof, is herein referred to as the "Agreement"), by and between Alvarez & Marsal Private Equity Performance Improvement
Group, LLC ("A&M”) and BioScrip, Inc. (the “Company”), for services to be rendered to Company by A&M.

 

A.Company agrees to indemnify and hold
harmless each of A&M, its affiliates and their respective shareholders, members, managers, employees, agents, representatives
and subcontractors (each, an "Indemnified Party" and collectively, the "Indemnified Parties") against any and
all losses, claims, damages, liabilities, penalties, obligations and expenses, including the costs for counsel or others (including
employees of A&M, based on their then current hourly billing rates) in investigating, preparing or defending any action or
claim, whether or not in connection with litigation in which any Indemnified Party is a party, or enforcing the Agreement (including
these indemnity provisions), as and when incurred, caused by, relating to, based upon or arising out of (directly or indirectly)
the Indemnified Parties' acceptance of or the performance or nonperformance of their obligations under the Agreement; provided,
however, such indemnity shall not apply to any such loss, claim, damage, liability or expense to the extent it is found in a final
judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such
Indemnified Party's gross negligence or willful misconduct. Company also agrees that (i) no Indemnified Party shall have any liability
(whether direct or indirect, in contract or tort or otherwise) to Company for or in connection with the engagement of A&M,
except to the extent that any such liability for losses, claims, damages, liabilities or expenses are found in a final judgment
by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified
Party's gross negligence or willful misconduct and (ii) in no event will any Indemnified Party have any liability to Company for
special, consequential, incidental or exemplary damages or loss (nor any lost profits, savings or business opportunity). Company
further agrees that it will not, without the prior consent of an Indemnified Party, settle or compromise or consent to the entry
of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which such Indemnified Party seeks
indemnification hereunder (whether or not such Indemnified Party is an actual party to such claim, action, suit or proceeding)
unless such settlement, compromise or consent includes an unconditional release of such Indemnified Party from all liabilities
arising out of such claim, action, suit or proceeding.

 

B.These indemnification provisions
shall be in addition to any liability which Company may otherwise have to the Indemnified Parties. In the event that, at any time
whether before or after termination of the engagement or the Agreement, as a result of or in connection with the Agreement or A&M’s
and its personnel’s role under the Agreement, A&M or any Indemnified Party is required to produce any of its personnel
(including former employees) for examination, deposition or other written, recorded or oral presentation, or A&M or any of
its personnel (including former employees) or any other Indemnified Party is required to produce or otherwise review, compile,
submit, duplicate, search for, organize or report on any material within such Indemnified Party’s possession or control pursuant
to a subpoena or other legal (including administrative) process, Company will reimburse the Indemnified Party for its out of pocket
expenses, including the reasonable fees and expenses of its counsel, and will compensate the Indemnified Party for the time expended
by its personnel based on such personnel’s then current hourly rate.

 

    	 

    	 

    

 

C.If any action, proceeding or investigation
is commenced to which any Indemnified Party proposes to demand indemnification hereunder, such Indemnified Party will notify Company
with reasonable promptness; provided, however, that any failure by such Indemnified Party to notify Company will not relieve Company
from its obligations hereunder, except to the extent that such failure shall have actually prejudiced the defense of such action.
Company shall promptly pay expenses reasonably incurred by any Indemnified Party in defending, participating in, or settling any
action, proceeding or investigation in which such Indemnified Party is a party or is threatened to be made a party or otherwise
is participating in by reason of the engagement under the Agreement, upon submission of invoices therefor, whether in advance of
the final disposition of such action, proceeding or investigation or otherwise. Each Indemnified Party hereby undertakes, and Company
hereby accepts its undertaking, to repay any and all such amounts so advanced if it shall ultimately be determined that such Indemnified
Party is not entitled to be indemnified therefor. If any such action, proceeding or investigation in which an Indemnified Party
is a party is also against Company, Company may, in lieu of advancing the expenses of separate counsel for such Indemnified Party,
provide such Indemnified Party with legal representation by the same counsel who represents Company, provided such counsel is reasonably
satisfactory to such Indemnified Party, at no cost to such Indemnified Party; provided, however, that if such counsel or counsel
to the Indemnified Party shall determine that due to the existence of actual or potential conflicts of interest between such Indemnified
Party and Company such counsel is unable to represent both the Indemnified Party and Company, then the Indemnified Party shall
be entitled to use separate counsel of its own choice, and Company shall promptly advance its reasonable expenses of such separate
counsel upon submission of invoices therefor. Nothing herein shall prevent an Indemnified Party from using separate counsel of
its own choice at its own expense. Company will be liable for any settlement of any claim against an Indemnified Party made with
Company's written consent, which consent shall not be unreasonably withheld.

 

D.In order to provide for just and
equitable contribution if a claim for indemnification pursuant to these indemnification provisions is made but it is found in a
final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced
in such case, even though the express provisions hereof provide for indemnification, then the relative fault of Company, on the
one hand, and the Indemnified Parties, on the other hand, in connection with the statements, acts or omissions which resulted in
the losses, claims, damages, liabilities and costs giving rise to the indemnification claim and other relevant equitable considerations
shall be considered; and further provided that in no event will the Indemnified Parties' aggregate contribution for all losses,
claims, damages, liabilities and expenses with respect to which contribution is available hereunder exceed the amount of fees actually
received by the Indemnified Parties pursuant to the Agreement. No person found liable for a fraudulent misrepresentation shall
be entitled to contribution hereunder from any person who is not also found liable for such fraudulent misrepresentation.

 

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E.In the event Company and A&M
seek judicial approval for the assumption of the Agreement or authorization to enter into a new engagement agreement pursuant to
either of which A&M would continue to be engaged by Company, Company shall promptly pay expenses reasonably incurred by the
Indemnified Parties, including attorneys' fees and expenses, in connection with any motion, action or claim made either in support
of or in opposition to any such retention or authorization, whether in advance of or following any judicial disposition of such
motion, action or claim, promptly upon submission of invoices therefor and regardless of whether such retention or authorization
is approved by any court. Company will also promptly pay the Indemnified Parties for any expenses reasonably incurred by them,
including attorneys' fees and expenses, in seeking payment of all amounts owed it under the Agreement (or any new engagement agreement)
whether through submission of a fee application or in any other manner, without offset, recoupment or counterclaim, whether as
a secured claim, an administrative expense claim, an unsecured claim, a prepetition claim or a post-petition claim.

 

F.Neither termination of the Agreement
nor termination of A&M's engagement nor the filing of a petition under Chapter 7 or 11 of the United States Bankruptcy Code
(nor the conversion of an existing case to one under a different chapter) shall affect these indemnification provisions, which
shall hereafter remain operative and in full force and effect.

 

G.The rights provided herein shall
not be deemed exclusive of any other rights to which the Indemnified Parties may be entitled under the certificate of incorporation
or bylaws of Company, any other agreements, any vote of stockholders or disinterested directors of Company, any applicable law
or otherwise.

 

	 	 	 	 	 	 
	BioScrip, Inc.	 	ALVAREZ & MARSAL PRIVATE EQUITY PERFORMANCE IMPROVEMENT GROUP, LLC	 
	 	 	 	 	 	 
	 	 	 	By:  	/s/ Richard C. Jenkins	 
	 	 	 	 	Richard C. Jenkins	 
	By:  	/s/
Kimberlee C. Seah 

	 	 	Managing Director	 
	 	Kimberlee C. Seah 

	 	 	 	 
	 	Senior Vice President
and General Counsel 

	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

 

 

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