Document:

Exhibit 10.3

 

Execution Version

 

BIOSCRIP, INC.

1600 Broadway, Suite 700

Denver, CO 80202

 

 

March 14, 2019

 

 

 

To the Holder listed on Exhibit A (the “Holder”)

 

Re:       Amended
and Restated Warrant Agreement

 

Ladies and Gentlemen,

 

Reference is made to (i) that certain Warrant
Agreement (the “Warrant Agreement”), dated June 29, 2017, by and among BioScrip, Inc., a Delaware corporation
(the “Company”) and the purchasers signatory thereto (collectively with their successors and assigns, the “Original
Purchasers”); (ii) that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of
the date hereof, by and among the Company, HC Group Holdings I, LLC (“Omega Parent”), HC Group Holdings II,
Inc., Beta Sub, Inc., Beta Sub, LLC and HC Group Holdings III, Inc.; and (iii) that certain Amended and Restated Warrant Agreement,
dated as of the date hereof, by and among the Company and the Holder and other Holders party thereto (the “Warrant Amendment”),
attached hereto as Exhibit B. This letter agreement (this “Letter Agreement”) confirms certain agreements and
understandings between the Holder and the Company related to the Warrant Amendment (as defined below).

 

In consideration of the Holder’s
execution and delivery of the Warrant Amendment, and conditioned upon the occurrence of the First Merger Effective Time (as defined
in the Merger Agreement), the Company hereby agrees to issue to the Holder [ ] shares of Common Stock of the Company in the aggregate
(the “Amendment Shares”), promptly following the occurrence of the First Merger Effective Time (as defined in
the Merger Agreement). Furthermore, promptly following, and conditioned upon, the occurrence of the First Merger Effective Time,
the Company and the Holder acknowledge and agree that the Registration Rights Agreement (the “Existing RRA”),
entered into as of June 29, 2017, by and among the Company and the Original Purchasers, shall be amended and restated (the “RRA
Amendment”), in the form of Exhibit C, with such RRA Amendment to be conditioned upon, and automatically effective as
of, the occurrence of the Second Merger Effective Time, without any further action on the party of any party hereto. The Company
and the Holder agree (the “RRA Interpretation”) that, solely for purposes of the definition of “Registrable
Securities” under the Existing RRA, during the period prior to the First Merger Effective Time, the Holder shall be deemed
to beneficially own the Warrants underlying the Warrant Agreement, notwithstanding any agreement between the Holder and the Company
not to exercise such Warrants. The execution and delivery of this Letter Agreement by the Holder shall be deemed a consent by the
Holder, in its capacities as Holder under the Existing RRA, under Section 9 (Preservation of Rights) of the Existing RRA with respect
to the registration rights to be granted to Omega Parent in connection with the Merger Agreement.

 

Following the execution and delivery of
this Letter Agreement and until the Second Merger Effective Time, the Holder agrees not to, and to cause its controlled affiliates
not to, (i) directly or indirectly sell, transfer, assign, pledge, tender, convert, exchange or encumber or otherwise dispose of,
any Warrant or (ii) exercise its exchange right under any Warrant.

 

     

     

    

 

The Company agrees that, to the extent
an event occurs on or after the date hereof and prior to the Second Merger Effective Date which would cause an adjustment to the
number of, or Exercise Price of, any Warrants under the Warrant Amendment were the Warrant Amendment then in effect (any such event,
an “Adjustment Event”), then the Company shall apply, as of the Second Merger Effective Date, such adjustment to the
number of, and Exercise Price of, Warrants that would otherwise be outstanding under the Warrant Amendment immediately after the
Second Merger Effective Date (taking, solely for purposes of such adjustment, the number of shares of Common Stock outstanding
under any adjustment calculation to be the number of shares of Common Stock outstanding on the date of such Adjustment Event, and
giving cumulative effect to any prior adjustments due to other Adjustment Events).

 

The Company represents that, as of the
First Merger Effective Time, upon issuance in accordance with, and payment pursuant to, the terms hereof, the Amendment Shares
will be duly authorized, validly issued, fully paid and non-assessable. Upon issuance in accordance with, and payment pursuant
to, the terms hereof, the Holder (or its affiliates, as applicable) will have good title to the Amendment Shares, free and clear
of all liens, claims, encumbrances, charges, mortgages, options, pledges, security interests, hypothecations, easements, rights-of-way
or encroachments of any nature whatsoever, whether voluntarily incurred or arising by operation of law (“Liens”),
other than (a) transfer restrictions under federal and state securities laws and (b) Liens imposed solely due to the actions of
the Holder. Upon issuance in accordance with, and payment pursuant to, the terms hereof, (i) the Amendment Shares will be issued
in accordance with law (including applicable state Blue Sky laws) and the governing documents of the Company and will not be issued
in violation of any preemptive or similar rights created by law or the governing documents of the Company or any other agreement
to which the Company is bound and (ii) the Amendment Shares will not be required to be registered under the Securities Act.

 

The Company represents that, as of the
First Merger Effective Time, the Warrants under the Warrant Amendment are duly authorized and validly issued and, when issued,
the shares of Common Stock issuable pursuant to the Warrants under the Warrant Amendment (the “Underlying Shares”)
will be duly authorized, validly issued, fully paid and non-assessable. Upon issuance in accordance with, and payment pursuant
to, the Warrant Amendment, the Underlying Shares will be issued in accordance with law (including applicable state Blue Sky laws)
and the governing documents of the Company and will not be issued in violation of any preemptive or similar rights created by law
or the governing documents of the Company or any other agreement to which the Company is bound and the Underlying Shares will not
be required to be registered under the Securities Act.

 

The execution and delivery of this Agreement
by the Holder shall constitute the express acknowledgment by and agreement of the Holder that the Holder shall not have any rights
or entitlements under the Warrant Agreement, the Warrant Amendment or any Warrant (as defined in the Warrant Agreement) issued
thereunder with respect to any antidilution or other adjustments to the Warrants issued thereunder and held by the Holder, including,
without limitation, pursuant to Section 4 of the Warrant Agreement arising as a result of or related to the share issuances and
other transactions contemplated by the Merger Agreement.

 

This Letter Agreement and the Warrant Amendment,
embody the entire agreement and understanding among the Company and the Holder, and supersede all prior agreements and understandings,
relating to the subject matter hereof. The Company and the Holder acknowledge and agree that this Letter Agreement (other than
the RRA Interpretation) and the Warrant Amendment shall automatically terminate and be null and void ab initio with no effect
whatsoever on the parties hereto in the event that the Merger Agreement is terminated in accordance with its terms; provided, however,
that such termination shall not relieve any party from liability for any willful and material breach of this Agreement prior to
termination thereof. This Letter Agreement may be amended from time to time only upon the written consent by each party hereto.
This Letter Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. This Letter Agreement may be executed in counterparts (including by PDF or electronic signature), each one of which shall
be deemed an original and all of which together shall constitute one and the same document. This Letter Agreement, and any disputes
arising hereunder or related hereto, shall be governed by, and construed in accordance with, the laws of the State of Delaware
without regard to its conflict of laws that may lead to the application of the law as of any other jurisdiction.

 

[Remainder of page intentionally left
blank.]

 

     

     

    

 

 

 

	 	Respectfully, 
	 	 	 
	 	BioScrip, Inc.
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

Acknowledged and Agreed:

  

[HOLDER]

  

 

	By: 	 	 
	Name:	 
	Title:	 

 

 

     

     

    

 

 

Exhibit A

 

Holder

 

[Address]

 

     

     

    

 

 

Exhibit B

 

[Amended and Restated Warrant Agreement]

 

 

See attached.

 

     

     

    

 

 

Exhibit C

 

[Amended and Restated Registration Rights
Agreement]

 

 

See attached.Exhibit 10.4

 

Execution Version

 

AMENDMENT NO. 1 TO REGISTRATION RIGHTS
AGREEMENT

 

This AMENDMENT NO.
1 to THE REGISTRATION RIGHTS AGREEMENT (this “Amendment”), effective as of March 14, 2019, is by and between
BioScrip, Inc. (the “Company”), and the stockholders of the Company signatory hereto (each a “Stockholder”
and collectively, the “Stockholders”). Capitalized but otherwise undefined terms herein have the meanings given to
them in the Registration Rights Agreement (as defined below).

 

WHEREAS, the
Company and the Stockholders are party to that certain Registration Rights Agreement, dated June 29, 2017 (the “Registration
Rights Agreement”), governing the Company’s obligations to register Registrable Securities of the Stockholders; and

 

WHEREAS, in
connection with entering into that certain (i) Amended and Restated Warrant Agreement, dated as of the date hereof, by and between
the Company and the Stockholders (the “Warrant Amendment”), (ii) those certain letter agreements, dated as of the date
hereof, by and between the Company and each of the Stockholders (the “Letter Agreements”), pursuant to which the Company
will issue an aggregate of 1,855,747 shares of Common Stock of the Company upon the closing of the transactions contemplated by
the Merger Agreement (as defined below), and (iii) that certain Agreement and Plan of Merger, dated as of the date hereof, by and
among the Company, HC Group Holdings II, Inc. and the other parties thereto, the Company and the Stockholders desire to amend the
Registration Rights Agreement pursuant to Section 11(c) thereof and upon such terms as set forth herein.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1. Amendment to
Registration Rights Agreement.

 

(a) Section
1(a) of the Registration Rights Agreement is hereby amended and restated in its entirety as follows:

 

“Short-Form
Registrations. At any time after June 29, 2018 twelve (12) months following the date hereof,
with respect to the Purchased Shares and the Common Stock that has been or will be issued upon exercise of the Warrants,
or at any time after the twelve month anniversary of the First Merger Effective Time (as defined in the Merger Agreement), with
respect to the Amendment Shares, each Holder may request registration under the Securities Act of all or any portion of
its Registrable Securities on Form S-3 or any successor form (each, a “Short-Form Registration”), which may, if so
requested, be a “shelf” registration under Rule 415 under the Securities Act. A registration shall not count as one
of the permitted Short-Form Registrations unless and until a registration statement relating thereto has become effective under
the Securities Act. Each request for a Short-Form Registration shall specify the number of Registrable Securities requested to
be registered.

 

(b) Section
1(b) of the Registration Rights Agreement is hereby amended and restated in its entirety as follows:

 

“Long-Form
Registrations. At any time that a Holder is then eligible to request registration under the Securities Act of all or any
portion of its Registrable Securities but where Short-Form Registration pursuant to Section 1(a) of this Agreement is not
available to be used by the Company in respect of such proposed registration, but in no event earlier than twelve (12)
months following the date hereof June 29, 2018, with respect to the Purchased Shares and the Common Stock that has
been or will be issued upon exercise of the Warrants, or the twelve month anniversary of the First Merger Effective Time (as defined
in the Merger Agreement), with respect to the Amendment Shares, each Holder shall be entitled to request a registration
on Form S-1 or any similar form (each, a “Long-Form Registration”). A registration shall not count as
one of the permitted Long-Form Registrations unless and until a registration statement relating thereto has become effective under
the Securities Act and each requesting Holder is able to register and sell at least thirty percent (30%) of its Registrable Securities
thereunder.

 

(c) The
definition of Registrable Securities in Section 10 of the Registration Rights Agreement is hereby amended and restated in its entirety
to read as follows:

 

 

     

     

    

 

““Registrable
Securities” means the Purchased Shares, the Amendment Shares and the Common Stock that has been or
will be issued upon exercise of the Warrants, together with any securities issued or issuable upon any stock split, dividend or
other distribution, recapitalization or similar event with respect to the foregoing. For purposes of this Agreement, a Person
shall be deemed to be a holder of Registrable Securities whenever such Person has the right to acquire such Registrable Securities
(upon conversion or exercise, in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations
upon the exercise of such right), whether or not such acquisition has actually been effected. As to any particular Registrable
Securities, such securities shall cease to be Registrable Securities when (A) a Registration Statement covering such securities
has been declared effective by the Securities and Exchange Commission and such securities have been disposed of pursuant to such
effective Registration Statement, (B) such securities are sold under circumstances in which all of the applicable conditions of
Rule 144 (or any similar provisions then in force) under the Securities Act are met, (C) the aggregate amount of such securities
held by each Holder, together with all Affiliates of each such Holder and persons forming a “group” with each such
Holder (within the meaning of Regulation 13D under the Securities Exchange Act of 1934, as amended from time to time, and the
rules and regulations promulgated thereunder (“Regulation 13D”)), consists of beneficial ownership (within the meaning
of Regulation 13D) of less than 5.0% of the Common Stock of the Company and such securities are eligible for sale by each such
Holder without registration pursuant to Rule 144 (or any similar provisions then in force) under the Securities Act without limitation
thereunder on volume or manner of sale, (D) such securities are otherwise transferred and such securities may be resold without
limitation or subsequent registration under the Securities Act, (E) such securities shall have ceased to be outstanding, or (F)
the stock certificates or evidences of book-entry registration relating to such securities have had all restrictive legends removed.”

 

(d) The following defined
term shall be added to Section 10 of the Registration Rights Agreement:

 

““Amendment
Shares” means the shares of Common Stock that the Company issued to the Stockholders pursuant to those certain letter
agreements, dated as of March 14, 2019, by and between the Company and each of the Stockholders, in connection with the Amended
and Restated Warrant Agreement, dated as of March 14, 2019, by and between the Company and the Stockholders.”

 

2. Condition to Effectiveness; Termination.
The Company and the Stockholders agree and acknowledge that, notwithstanding anything to the contrary herein, the effectiveness
of this Amendment is conditioned upon, and shall not be binding or effective until, the occurrence of the First Merger Effective
Time (as such term is defined in the Merger Agreement) in accordance with the terms and conditions of the Merger Agreement. In
the event that the Merger Agreement is terminated in accordance with its terms, this Amendment shall automatically terminate and
be null and void ab initio and of no effect whatsoever, and the Registration Rights Agreement shall remain in full force
and effect and shall continue to be binding on and enforceable against the Company and the Purchasers.

 

3. Confirmation. Except as expressly
modified by the terms and provisions of this Amendment, all of the terms and provisions of the Registration Rights Agreement are
unchanged and continue in full force and effect and all rights, remedies, liabilities and obligations evidenced by the Registration
Rights Agreement are hereby acknowledged by the Company and the Stockholders to be valid and in full force and effect.

 

4. Counterparts. This Amendment
may be executed in any number of counterparts, by facsimile if necessary, each of which shall be an original, but all of which
together shall constitute one instrument.

 

5. Governing Law. This Amendment
shall be governed by and construed in accordance with the internal laws of New York applicable to parties residing in New York,
without regard applicable principles of conflicts of law. Each party irrevocably consents to the exclusive jurisdiction of any
court located within New York County, New York, in connection with any matter based upon or arising out of this Amendment or the
matters contemplated hereby and it agrees that process may be served upon it in any manner authorized by the laws of the State
of New York for such persons and waives and covenants not to assert or plead any objection which it might otherwise have to such
jurisdiction and such process.

 

[SIGNATURE PAGES FOLLOW]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed and delivered as of the date first above written.

 

 

	 	 
	 	BIOSCRIP, INC.
	 	 
	 	/s/ Daniel Greenleaf
	 	Name: Daniel Greenleaf
	 	Title: President
	 	 
	 	
         STOCKHOLDERS:

         

        AMARI INVESTMENT PTE. LTD.

         

        
        By: ASSF OPERATING MANAGER IV, L.P.,

        its manager

	 	 
	 	/s/ Christopher Kerezsi
	 	Name: Christopher Kerezsi
	 	Title: Authorized Signatory
	 	 
	 	J.P. Morgan Securities LL
	 	 
	 	/s/ Brian M. Ercolani, Asc
	 	Name: Brian M. Ercolani, Asc
	 	Title: Attorney-In Fact
	 	 
	 	Goldman Sachs & Co. LLC
	 	 
	 	/s/ Daniel Oneglia
	 	Name: Daniel Oneglia
	 	Title: Managing Director
	 	 
	 	
        Western Asset Middle Market Debt Fund Inc.

        Western Asset Middle Market Income Fund Inc

        By: Western Asset Management Company,

        as its Investment Manager and Agent

         

	 	/s/ Adam Wright 
	 	Name: Adam Wright
	 	Title: Manager, U.S. Legal Affairs

 

 

 

    [Signature Page to Amendment No. 1 to Registration Rights Agreement]

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